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HomeMy WebLinkAboutFIN 2022-05-23 COMPLETE AGENDA PACKETCity of Tukwila Finance and Governance Committee De'Sean Quinn, Chair O Kate Kruller O Cynthia Delostrinos Johnson AGENDA MONDAY, MAY 23, 2022 — 5:30 PM 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 THIS MEETING WILL BE CONDUCTED BOTH ON-SITE AT TUKWILA CITY HALL AND ALSO VIRTUALLY, BASED ON THE GOVERNOR'S PROCLAMATION 20-28. ON-SITE PRESENCE WILL BE IN THE DUWAMISH CONFERENCE ROOM (2ND FLOOR, 6300 SOUTHCENTER BOULEVARD) THE PHONE NUMBER FOR THE PUBLIC TO LISTEN TO THIS MEETING IS: 1-253-292-9750, Access Code 49933731# 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. An ordinance regarding Foster Golf Links admissions a. Forward to 6/13 C.O.W. Pg.1 tax. and 6/27 Special Meeting. David Rosen, Fiscal Analyst b. 2021 Year End Financial Report. b. Forward to 5/23 C.O.W. Pg.7 Vicky Carlsen, Finance Director Meeting. c. An update on the American Rescue Plan Act (ARPA). c. Discussion only. Pg.49 Vicky Carlsen, Finance Director; and Julie Hatley, ARPA Funds Analyst 2. MISCELLANEOUS Next Scheduled Meeting: lune 13, 2022 SThe 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: Tracy Gallaway, Parks & Recreation Director BY: David Rosen, Parks & Recreation Fiscal Analyst CC: Mayor Ekberg DATE: May 23, 2022 SUBJECT: Codifying Foregoing Admissions Tax Collection From Foster Golf Course ISSUE At the October 1, 2018 Regular Meeting of the City Council it was decided Admissions Tax revenues would remain in the Foster Golf Links budget as opposed to being remitted to the General Fund, a decision that would require a change to the TMC. Said change was to occur in alignment with adoption of the 2019-2020 biennium budget that December, but it did not. BACKGROUND Admissions Tax is a 5% tax levied on admissions charges to entertainment venues and any other activity where an admission charge is made to enter a facility, the tax is collected by the venue and then remitted to the city on a monthly basis. RCW 35.21.280 authorizes cities to establish Admissions Tax and TMC Chapter 3.20 establishes the City's authority to levy the tax. TMC Chapter 3.20 was created through approval of Ordinance 1733 in 1995. During the October 1St, 2018 City Council Regular Meeting where the decision to forego collection of Admissions Tax from the Foster Golf Links (411) Fund was made, the revenues were identified as being used for: 1. Payment of a new easement lease expense being paid to Seattle City Light 2. Reinstating the Golf Cart Replacement Fund DISCUSSION This ordinance has no financial impact on the General Fund and is intended only to align the TMC with current practice. RECOMMENDATION The committee is being asked to approve the ordinance and consider this item at the June 13th Committee of the Whole meeting and subsequent June 27th Special Meeting scheduled due to holiday cancellation of the June 20th Regular Meeting. ATTACHMENTS 10-1-18 City Council Regular Meeting Minutes Draft Ordinance 1 2 Tukwila City Council Regular Meeting Minutes October 1, 2018 Page 5 of 10 • Long range concerns include aging infrastructure and replacing sewer lift stations • Public Works Shops debt service is estimated at $240k per year Surface Water Fund • Rate increases of 5% in 2019 and 3% in 2020, alternate years • Remains at 12.5 employees • CIP includes Riverton Creek Flap Gate Removal, Chinook Wind, Tukwila 205 Levee, and the East Marginal Way S Stormwater Outfalls. • Long range concerns include NPDES (National Pollutant Discharge Elimination System) requirements, aging infrastructure, and levee • Public Works Shops debt service is estimated at $560k per year Based on a question by Councilmember Quinn regarding investments in infrastructure, Ms. Labanara explained that the City's insurance carrier, WCIA (Washington Cities Insurance Authority) is often surprised at the minimal claims they receive for Tukwila. That can be attributed to the investment in infrastructure that has been occurring regularly for the last 6-7 years. Based on a question by Councilmember Kruller regarding increasing utility rates, Ms. Labanara emphasized that the Sewer Fund is similar to a business in that its only revenue is from the rate payer receiving the sewer services. As new requirements occur, the City must go to the rate payers to recoup costs. Based on a question from Councilmember Quinn regarding the approach to community members as it relates to utility increases, Ms. Labanara relayed that the Council has given direction to have low and steady increases that occur over time to avoid drastic escalations. At this time, there is a slight increase in water rates, no increase in sewer rates, and surface water rates will increase at 5% and 3%. Based on a question from Councilmember Kruller regarding how well Tukwila has done based on the projections from 6 years ago, Ms. Labanara explained the City is doing very well. The Water Fund is the most unpredictable as it is consumption based. The Sewer Fund had some significant increases in the past, which is the basis for no increases occurring at this time. The surface water rates remain one of the lowest in the region. • Foster Golf Course (FGL) — Reviewed at the September 25, 2018 Community Development and Neighborhoods Committee meeting Robert Eaton, Parks and Recreation Manager, provided an overview of the Golf Course budget. HISTORY Staff began a deep dive project to make adjustments in the procedures, management practices, maintenance operations, and revenue programs. This process started with the first step of making budget reductions. All golf staff from maintenance to management have met regularly and worked diligently to achieve 8% budget reductions ($159,000) for the 2018 budget and for the 2019-20 biennium budget. The ongoing implementation of GASB 68, which requires all government agencies to report possible liabilities for future pension requirements, has changed the available fund balance significantly from previous years. Over $500,000 is allocated due to this reporting requirement even though the City will not incur these costs. Additionally, staff have been making changes to improve operational efficiencies in course maintenance operations, pro shop operations, and revisions to the fleet replacement plan to better align with golf course equipment needs, as well as implementing new revenue generating programs. DISCUSSION Intentional efforts are helping set FGL on a more sustainable long-term trajectory. The administration recommends that Admissions Tax revenues remain within the FGL budget. As seen on Attachment G, the $60,000 Admission Tax expense has been zeroed out so that those funds collected 3 Tukwila City Council Regular Meeting Minutes October 1, 2018 Page 6 of 10 by FGL stay within the FGL budget to make it balance. If approved, the Tukwila Municipal Code will need to be amended to reflect this. This reduction will cover the annual SCL (Seattle City Light) easement lease expense of $30,000 while the remaining $30,000 will be allocated to reinstate the golf cart replacement plan and Comprehensive Improvement Plan funding again. This change helps create a sustainable financial plan, especially when the GASB 68 proposed liabilities are not included. Reclaimed Water In the 2017-2018 council budget discussions it was suggested that reclaimed water be investigated as an alternate source for irrigating the golf course. Staff began a pilot test area on the course where reclaimed water is being used. This began in May of 2018 and to date has used 6,343 gallons of reclaimed water at a cost of $4,275. Staff will continue with the pilot area testing and monitoring of the soils for two more years to allow more adequate time for determining the long-term impacts of using reclaimed water. Based on a question by Councilmember Kruller regarding use of reclaimed water, Mr. Eaton explained that during the 2017-2018 budget process, staff was asked to look into use of reclaimed water. Over the past year, they have been using reclaimed water on a test plot on the 18th tee and are also conducting soil sampling and testing at a second location on the course to compare soils. They are consistently monitoring the sites and want to continue the testing phase over the next 2 years to ensure there is no damage to the greens. Councilmember Robertson said he has done some research on the cost of reclaimed water and distributed a 2008 contract between Tukwila and King County regarding distribution of reclaimed water. He also talked with Kristina Westbrook from King County staff. The current way of charging based on this 10 -year old contract could amount to $240,000. The infrastructure to use the reclaimed water is provided by the County. In talking with Ms. Westbrook, King County would be happy to amend the current contract which could reduce the costs from $240,000 to $40,000-$70,000. Additionally, and of great significance is that the Governor has established a special task force to save the orca whales in the region, which rely on 80% of their diet coming from king salmon. A goal is to increase the number of chinook salmon and double the amount of hatchery fish in the Green/Duwamish River to help that cause. One of the problematic issues for the river involves volume, and while Tukwila has pumped water from the river in the past for use at the golf course, that could compromise the efforts to protect the orca whales. Councilmember Robertson would like to see Public Works staff bring the King County reclaimed water contract to a Transportation and Infrastructure Committee in February or March to start moving forward to reduce the costs for reclaimed water. The Councilmembers discussed the topic of reclaimed water with the following comments: • Appreciation for Councilmember Robertson providing this information to the Council; • There has been a great deal of new data shared that will need to be worked into a timeline that may require further discussion; • Concern was expressed regarding the need to provide the time necessary for testing to continue on the greens to ensure reclaimed water is the best option; • There may be an opportunity through the Priority Based Budgeting process to determine if the City is best at managing the reclaimed water project or if another outside vendor would be a better option. Council President Seal referenced that it is the recommendation of Administration that the Admission Tax revenues remain in the Foster Golf Links budget, which requires a Code change. She inquired as to whether the Code change would occur as part of implementation of the budget. David Cline, City Administrator, said the Code change would occur in alignment with adoption of the budget in December. 8:12 p.m. Councilmember McLeod exited the Council Chambers. 8:14 p.m. Councilmember McLeod returned to the Council Chambers. 4 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; AMENDING ORDINANCE NOS. 2080 §2 AND 1733 §2, AS CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 3.20.020, "ADMISSIONS TAX LEVIED", TO UPDATE THE ADMISSIONS TAX COLLECTION PROCESS FOR FOSTER GOLF COURSE REVENUES; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the Foster Golf Course is a City -owned enterprise; and WHEREAS, the City Council adopted the 2019-2020 Biennial Budget with the intent of keeping admissions tax revenues within the Foster Golf Links budget barring further legislative action; and WHEREAS, the reduction in admissions tax expense against the Foster Golf Links Fund provided for greater financial stability and for payment of easement lease expenses newly established in the 2019-2020 biennium; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 3.20.020.6 Amended. Ordinance Nos. 2080 §2 and 1733 §2, as codified at Tukwila Municipal Code Section 3.20.020, "Admissions Tax Levied," subparagraph B, are hereby amended to read as follows: 3.20.020 Admissions Tax Levied B. Admission tax waived: The transfer of admissions tax from the Foster Golf Links Fund to the General Fund shall be waived: The City of Tukwila will forego collection of 2005. Beginning in the 2019-2020 budget biennium, the City of Tukwila's General Fund will forego collection of admissions tax from Foster Golf Course until legislative action is taken to reinstate said collection and, further, admissions tax revenues collected by the CC: Legislative Development\Foster Golf Course admissions tax process 5-17-22 DR:bjs Review and analysis by Barbara Saxton Page 1 of 2 5 Foster Golf Course shall be allocated to the Foster Golf Link Fund until legislative action is taken to reallocate such revenues to the General Fund. Section 2. Ratification. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. Section 3. 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. Section 4. 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 5. 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 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 , 2022. 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 CC: Legislative Development\Foster Golf Course admissions tax process 5-17-22 DR:bjs Review and analysis by Barbara Saxton Page 2 of 2 6 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: City Council CC: Mayor Ekberg FROM: Vicky Carlsen, Finance Director BY: Aaron Williams, Fiscal Manager DATE: May 23, 2022 SUBJECT: 2021 Year -End Financial Summary ISSUE The year-end financial report summarizes for the City Council the Citywide financial results and highlights significant items or trends through 2021. DISCUSSION 2020 was an unprecedented year due to the COVID-19 health emergency which negatively impacted local, state, and national economies. The pandemic resulted in stay-at-home orders with businesses closing to in-person activity for several weeks. Unemployment soared and many small businesses closed. While 2021 saw improvement over 2020, the effects of COVID-19 on City revenues and service levels continued to be impacted, although not to the extent that they were in 2020. Businesses were open but mask and proof of vaccination mandates were in effect for several months. While some revenue sources are returning to near pre -pandemic levels, others are not rebounding as quickly. The City's main revenue sources: sales, gambling, utility, and admission taxes all increased over 2020 levels, However, sales tax, the City's largest revenue source, was below 2019 levels. Business license revenue has returned to expected levels. 2020 saw a one-time spike due to timing of license expiration dates when the licensing function was transferred to the State. Culture and Rec fees are higher than 2020 but much lower than pre -pandemic levels. ARPA funds were utilized to bring back programs including day camps and before & after school activities. Expenditures in the general fund were below budget primarily due to vacancies throughout the organization. Expenditures were also below budget due to lower than expected fleet costs and costs associated with the finance ERP system shifting to 2022 rather than 2021. Highlights for 2021 are as follows: • General Fund revenues totaled $67.2 million and expenditures totaled $62.9 million. Unreserved fund balance in the General Fund ended the year at $17.2 million, exceeding reserve policy requirements by $5.6 million. It should be noted that of the $5.6 million, $1.45 million was allocated in 2022 through the mid -biennium budget amendment for one-time projects. $1.3 million was allocated to the arterial street fund for the EIS alternative access study and $150 thousand was allocated to the economic development plan 7 INFORMATIONAL MEMO Page 2 • All General Fund departments finished the year under budget, primarily due to inability to fill vacant positions • Enterprise funds exceed reserve balance requirements • As part of the Public Safety Plan: o Fire Station 52 opened in January • Completed construction of 53rd Ave S, from S 137th St to S 144th St. Project included new street improvements, drainage, curbs, gutters, driveway adjustments, new sidewalks, and undergrounding of utilities • Substantial completion of the Boeing Access Road over Airport Way bridge seismic retrofit. Project utilized federal Bridge Replacement Advisory Committee (BRAC) funding at 86.5% for design and 100% for construction • Began a 3 -year investment in the Southcenter Business District for extensive sewer rehabilitation • Refunded outstanding 2011 and 2014 LTGO bonds resulting in savings of over $97 thousand in future debt service costs • Reserve policy met or exceeded in general fund, contingency fund, enterprise funds, and employee healthcare fund, sustaining healthy financial position ATTACHMENTS Year -End 2021 Financial Report • Highlights of 2021 • General Fund financial reports • Other Fund financial reports 8 CITY OF TUKWILA 2021 YEAR-END FINANCIAL REPORT Highlights 10 General Fund and Contingency (Reserve) Fund Revenue and Expenditures, Ending Fund Balance General fund revenue was $67.2 million while general fund expenditures were $62.9 million. While revenue was $963 thousand above budget, expenditures were below budget by $2.6 million. Gambling and excise tax was the greatest single contributor to the increase in revenues, exceeding expectations by over $1 million, continuing the pattern of volatility and unpredictability. The under budget in expenditures is primarily due to unfilled, budgeted positions; mostly in the police department. The general fund ended the year with a fund balance of 17.2 million, which exceeds the reserve policy by approximately $5.6 million. During the mid -biennium budget process, $1.45 million of the $5.6 million was allocated in 2022 to one-time projects. $1.3 million was allocated to the arterial street fund for the EIS alternative access study and $150 thousand was allocated to the economic development plan. Any use of excess reserve funds should be utilized for one-time expenditures and not for ongoing expenditures. $80,000 $70,000 $60,000 $50,000 co$40,000 0 t $30,000 $20,000 $10,000 $- $66,197 General Fund 2021 Revenues & Expenditures Budget vs Actual $67,160 $65,490 $62,904 Revenues Expenditures ■ 2021 Budget ■ 2021 Actua I 11 General Revenues — Taxes Sales and Use Tax Combined sales and use taxes brought in $20.0 million in 2021 which is $836 thousand greater than the annual budget. Sales tax is almost back to 2019 levels but is still lagging behind inflationary increases. $22,000 $20,000 -10 r $18,000 H $16,000 $14,000 $12,000 $20,579 20,444 Sales Tax 20,511 $17,036 $20,061 $19,225 2019 2020 2021 —*—Actual —0—Budget Property Tax For 2021, property tax revenue totaled $17.1 million; an increase of $873 thousand when compared to the prior year. When compared to the annual budget, property taxes were $224 thousand above budget. Thousands 12 $18,000 $17,500 $17,000 $16,500 $16,000 $15,500 $15,000 $14,500 $14,000 Property Tax $17,124 $15,546 2019 2020 Actual —0—Budget 2021 Utility Tax For 2021, utility taxes were $82 thousand above budget with total revenue of $3.7 million. When compared to the prior year, utility taxes decreased by almost $660 thousand. The decrease is attributed to $742 thousand solid waste tax that was collected in 2020 that was dedicated to street projects. This revenue is now being recorded in the Arterial Street fund. Thousands $6,000 $5,500 $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 Utility Tax $5,015 $4,438 $4,352 $3,754 $3,692 $3,610 2019 2020 2021 .0—Actual Budget Interfund Utility Tax was $2.3 million; $45 thousand under budget but an increase of $169 thousand compared to the prior year. $2,600 $2,500 ,,, $2,400 c c vi $2,300 0 t ~ $2,200 $2,100 $2,000 $2,359 $2,373 Interfund Utility Tax $2,412 $2,154 $2,367 $2,322 2019 2020 2021 .—Actual tBudget 13 Gambling Tax Gambling and excise taxes totaled $4.4 million for the year, which is more than $1.0 million above the annual budget. $5,000 $4,500 $4,000 $3,500 ro$3,000 H $2,500 $2,000 $1,500 $1,000 Admissions Tax $4,426 Gambling and Excise Tax $4,426 2019 $2,683 2020 --Actual —S—Budget 2021 Admissions tax totaled $540 thousand for the year, which is $60 thousand below the annual budget. Revenues were up $331 thousand compared to the prior year, which represents a 160% increase. Admissions taxes were significantly impacted by COVID-19 and are still well -below pre -pandemic levels. 0 s H 14 $1,200 $1,000 $800 $600 $400 $200 $- $957 Admissions Tax $870 2019 2020 --Actual --Budget 2021 General Revenues — Licenses and Permits Business Licenses Business license revenue totaled $3.2 million for the year, finishing $115 thousand below the annual budget. Due to the transition to the State handling City licenses, revenue timing in 2019-2021 was impacted as renewals were adjusted to the State license renewal cycles. Thousands $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 Business License Revenue $4,356 $4,222 $3,037 $3,172 $3,320 2019 2020 2021 Actual —0—Budget $3,205 Building Permits Revenue from Building Permits and Fees was $1.7 million which is $658 thousand below the annual budget. Number of building permits in 2021 was higher than 2020; 1,498 compared to 1,429, but the total value was significantly lower; $82,103,963 in 2021 compared to $135,909,213 in 2020. Thousands $2,500 $2,300 $2,100 $1,900 $1,700 $1,500 $1,300 $1,100 $900 $700 Building Permits Revenue $2,231 $2,127 • $2,116 $1,961 2019 2020 2021 tActual tBudget $2,375 $1,717 15 Ongoing Expenditures Departmental Total Department expenditures for 2021 were $57.3 million, which is an increase of approximately $1.7 million compared to the prior year. $20.0 $18.0 $16.0 $14.0 • $12.0 c 0 $10.0 $8.0 $6.0 $4.0 $2.0 $- $10.0 $9.0 $8.0 $7.0 • $6.0 • $5.0 $4.0 16 $7.6 $18.9 $6.4 $6.6 $17.7 Departmental Expenditures $17.9 $12.6 $12.9 Police Fire $5.1 1 ■ 2019 ■ 2020 2021 Departmental Expenditures $4.3 $4.2 Public Works/Streets Parks/Recreation $3.6 $3.9 $3.3 L DCD ■ 2019 ■ 2020 kd 2021 $2.4 $2.3 $2.2 $13.5 $8.8 $8.8 $9.0 Mayor Support By Category Salaries and benefits were below budget by $1.9 million but an increase of $962 thousand compared to the prior year. All other General Fund expenditures totaled $20.0 million which was $696 thousand below the annual budget but an increase of $1.5 million compared the prior year. Much of the salary and benefit savings was due to vacant (not frozen) positions; many of which were in the police department. $50.0 $45.0 $40.0 $35.0 Ln $30.0 c 0 $25.0 $20.0 $42.7 General Fund Expenditures- By Category $41.9 $42.9 $22.6 $18.5 $20.0 Salaries and Benefits Supplies and Services ■ 2019 ■ 2020 2021 17 Fund Balance General Fund The General Fund ended 2021 with $17.2 million unreserved fund balance and exceeds reserve policy by approximately $5.6 million. The fund balance policy states that fund balance in the general shall equal or exceed 18% of the previous year general fund revenue, exclusive of significant non-operating, non-recurring revenue. The Contingency Fund ended the year with a fund balance of $6.75 million, which meets the fund balance policy requirement. The fund balance policy states that fund balance in the general shall equal or exceed 10% of the previous year general fund revenue, exclusive of significant non-operating, non-recurring revenue. $20.0 $18.o $16.0 $14.0 ,,, $12.0 0 18 $10.0 $8.0 $6.0 $4.0 $2.0 $- General Fund, Contingency Fund Balances General Fund ■ 2019 2020 2021 Contingiency Fund FUND General Contingnecy Ending Fund Balance $ 17,229,816 6,754,065 Other Funds Capital Projects Funds The City completed construction of 53rd Avenue South, from South 137th Street to South 144th Street, which included new street improvements, drainage, curbs, gutters, and driveway adjustments. It also included new sidewalks to this residential corridor, as well as undergrounding utility wires. The City issued bonds in a prior year to cover the General Fund portion of the project, the bulk of the financing. Water, Sewer, and Surface Water fees collected by the City paid for the corresponding utility improvements. A state Transportation Improvement Board grant was also instrumental in the funding of this project. The City also substantially completed construction of the Boeing Access Road over Airport Way Bridge Seismic Retrofit Project with funding from the federal Bridge Replacement Advisory Committee (BRAC). BRAC funded 86.5% of design and 100% of construction. The City made substantial progress of Phase One of the consolidated Public Works Shops project, constructing a new Fleet & Facilities building that meets current and future needs. The City issued bonds in a prior year to cover the General Fund portion of the project, or 50 percent of the financing. Water, Sewer, and Surface Water fees collected by the City paid for the other 50 percent. All facilities included in the Public Safety Plan have been completed and are in use. Both the Justice Center and Fire Station 51 opened in September of 2020 and Fire Station 52 opened in early 2021. The Fire Department also purchased an aid car and battalion chief vehicle, bunker gear, helmets, and some mobile data computers; all paid for by Public Safety Plan funds. Enterprise Funds The City repaired damaged concrete at Sewer Lift Station No. 12, and the entire wet well was recoated. In addition, the control panel at Sewer Lift Station No. 4 was in poor condition and was located deep below grade. The control panel was replaced and moved into an enclosure above grade. Electrical and accessibility upgrades to the two sewer lift stations created a safer environment for the maintenance crew. Both projects were funded entirely by the Sewer fund. The City restored fish access to Riverton Creek and reestablished previously inaccessible rearing habitat at the confluence with the Duwamish River. Construction included the removal of two culverts with flap gates and associated fill, wall demolition, the installation of a new trail bridge, a new soldier pile wall, structural tie -backs along the adjacent road, channel realignment, boulder, gravel and wood placement, native plant restoration and art work. A grant from the Recreation and Conservation office was instrumental in completing this project, along with grant funding from King County and utility revenue from the City's Surface Water fund. The City's reserve policy states that, at the close of each fiscal year, unrestricted balances in Enterprise funds shall equal or exceed 20% of the prior year's revenue exclusive of the effects of GASB Statement 68 as well as significant non-operating, non-recurring revenues. At the close of the 2021 fiscal year, the unrestricted fund balances of the Enterprise funds comply with the City's reserve policy. Healthcare fund The Active Employees Insurance fund has an IBNR (incurred but not reported) reserve of 2.5 times the actuarily determined IBNR exceeding the reserve policy requirement of 1.5 times the actuarily determined IBNR. 19 20 CITY OF TUKWILA 2021 YEAR-END FINANCIAL REPORT General Fund Financial Reports 22 GENERAL FUND REVENUE CITY OF TUKWILA Year to Date as of December 31, 2021 R o w SUMMARY BY REVENUE TYPE BUDGET ACTUAL 2021 ANNUAL 2021 ALLOCATED 2019 2020 2021 % CHANGE GT- 2021 BDGT ALLOCATED BDGT % REVD 2019/ 2020 2020/ 2021 1 PROPERTY TAX $ 16,900,000 $ 16,900,000 $ 15,545,878 $ 16,251,567 $ 17,124,167 $ 224,167 101% 5% 5% 2 SALES TAX -RETAIL 18,650,000 18,650,000 19,949,591 16,435,510 19,345,233 695,233 104% (18)% 18% 3 SALES TAX -CRIMINAL JUSTICE 575,000 575,000 629,031 600,524 715,729 140,729 124% (5)% 19% 4 ADMISSIONS TAX 600,000 600,000 956,833 208,353 539,690 (60,310) 90% (78)% 159% 5 UTILITY TAX 3,610,000 3,610,000 3,753,595 4,352,386 3,692,456 82,456 102% 16% (15)% 6 INTERFUND UTILITY TAX 2,367,200 2,367,200 2,358,608 2,153,573 2,322,420 (44,780) 98% (9)% 8% 7 GAMBLING & EXCISE TAX 3,336,000 3,336,000 3,998,515 2,682,681 4,367,189 1,031,189 131% (33)% 63% 8 TOTAL GENERAL REVENUE 46,038,200 46,038,200 47,192,051 42,684,593 48,106,884 2,068,684 104% (10)% 13% 9 BUSINESS LICENSES 3,320,000 3,320,000 3,036,775 4,356,217 3,204,915 (115,085) 97% 43% (26)% 10 RENTAL HOUSING 51,000 51,000 39,523 50,483 55,495 4,495 109% 28% 10% 11 BUILDING PERMITS 2,375,100 2,375,100 2,115,648 1,960,999 1,717,081 (658,019) 72% (7)% (12)% 12 TOTAL LICENSES AND PERMITS 5,746,100 5,746,100 5,191,945 6,367,699 4,977,491 (768,609) 87% 23% (22)% 13 SALES TAX MITIGATION 1,323,000 1,323,000 655,127 - 1,323,895 895 100% (100)% 0% 14 FRANCHISE FEE 2,625,000 2,625,000 2,674,030 2,670,454 2,644,448 19,448 101% (0)% (1)% 15 GRANT REVENUE 504,247 504,247 770,078 978,160 841,231 336,984 167% 27% (14)% 16 ARPA REVENUE 904,500 904,500 - - 817,324 (87,176) 90% 0% 0% 17 STATE ENTITLEMENTS 456,500 456,500 539,001 505,925 573,014 116,514 126% (6)% 13% 18 INTERGOVERNMENTAL 567,229 567,229 561,318 559,209 536,719 (30,510) 95% (0)% (4)% 19 TOTAL INTERGOVERNMENTAL REVENUE 6,380,476 6,380,476 5,199,554 4,713,747 6,736,631 356,155 106% (9)% 43% 20 GENERAL GOVERNMENT 26,400 26,400 58,494 28,580 31,948 5,548 121% (51)% 12% 21 SECURITY 767,600 767,600 665,306 1,029,927 1,005,479 237,879 131% 55% (2)% 22 TRANSPORTATION 44,000 44,000 (7,884) 3,441 1,320 (42,680) 3% (144)% (62)% 23 PLAN CHECK AND REVIEW FEES 1,140,300 1,140,300 1,511,497 760,500 732,564 (407,736) 64% (50)% (4)% 24 CULTURE AND REC FEES 397,500 397,500 525,919 41,731 112,934 (284,566) 28% (92)% 171% 25 TOTAL CHARGES FOR SERVICES 2,375,800 2,375,800 2,753,332 1,864,178 1,884,245 (491,555) 79% (32)% 1% 26 FINES & PENALTIES 274,175 274,175 244,709 177,019 290,634 16,459 106% (28)% 64% 27 MISC 865,959 865,959 1,309,046 908,503 647,756 (218,203) 75% (31)% (29)% 28 INDIRECT COST ALLOCATION 2,661,382 2,661,382 2,545,644 2,637,289 2,661,382 - 100% 4% 1% 29 TOTAL OTHER INCOME 3,801,516 3,801,516 4,099,399 3,722,811 3,599,772 (201,744) 95% (9)% (3)% 30 TOTAL OPERATING REVENUE 64,342,092 64,342,092 64,436,282 59,353,028 65,305,024 962,932 101% (8)% 10% 31 TRANSFERS IN 1,858,817 1,855,001 - 1,100,000 1,855,001 - 100% 0% 69% 32 TOTAL REVENUE $ 66,200,909 $ 66,197,092 $ 64,436,282 $ 60,453,028 $ 67,160,024 $ 962,932 101% (0) 0 Percent of year 100% 23 GENERAL FUND CITY OF TUKWILA GENERAL FUND EXPENDITURES Year -to -Date as of December 31, 2021 EXPENDITURES BY DEPARTMENT BUDGET BUDGET ACTUAL ACTUAL COMPARISON OF RESULTS COMPARISON OF RESULTS 2021 ANNUAL 2021 ALLOCATED 2019 2020 2021 Allocated Budget vs Actuals OVER/(UNDER) Allocated Budget vs Actuals OVER/(UNDER) % CHANGE % EXPENDED 2019/ 2020 2020/ 2021 01 City Council $ 363,618 $ 363,618 ' $ 381,903 $ 351,396 $ 338,693 ' $ (24,926) 93% -8% -4% 03 Mayor's Office 2,178,126 2,178,126 2,355,805 2,280,110 2,152,513 (25,613) 99% -3% -6% 04 Administrative Services 5,158,639 5,158,639 4,726,846 4,751,297 5,005,893 (152,746) 97% 1% 5% 05 Finance 2,991,615 2,991,615 2,392,462 2,402,140 2,434,453 (557,162) 81% 0% 1% 07 Recreation 4,573,403 4,573,403 5,061,090 4,273,655 4,225,108 (348,295) 92% -16% -1% 08 Community Development 4,375,887 4,375,887 3,557,282 3,278,151 3,910,667 (465,220) 89% -8% 19% 09 Municipal Court 1,348,456 1,348,456 1,297,382 1,292,626 1,209,940 (138,516) 90% 0% -6% 10 Police 18,512,591 18,512,591 18,907,947 17,682,031 17,927,963 (584,628) 97% -6% 1% 11 Fire 13,736,860 13,736,860 12,562,278 12,850,658 13,471,379 (265,481) 98% 2% 5% 13 Public Works 6,817,377 6,817,377 7,571,784 6,379,120 6,583,077 (234,300) 97% -16% 3% Subtotal 60,056,572 60,056,572 58,814,778 55,541,184 57,259,686 (2,796,886) 95% -6% `fel 20 Dept 20 5,433,545 5,433,545 6,434,427 4,862,449 5,644,523 210,979 104% -24% 16% Total Expenditures $ 65,490,117 $ 65,490,117 $ 65,249,205 $ 60,403,633 $ 62,904,209 $ (2,585,907) 96% -7% 4% Percent of year completed GENERAL FUND CITY OF TUKWILA GENERAL FUND EXPENDITURES 100% Year -to -Date as of December 31, 2021 Percent of year completed 24 100% SALARIES AND BENEFITS BUDGET ACTUAL COMPARISON OF RESULTS COMPARISON OF RESULTS 2021 ANNUAL 2021 ALLOCATED 2019 2020 2021 Allocated Budget vs Actuals OVER/(UNDER) 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 6,901,878 (2,241) 100% 13% 6% 26 Unemployment - - 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 $ 42,890,015 $ (1,890,094) 96% -2% 2% Percent of year completed 24 100% 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 $ 6,434,427 $ 4,862,449 $ 5,644,523 $ 210,979 104% -24% 16% 31 Supplies 1,092,211 1,092,211 1,506,788 893,023 972,766 (119,445) 89% -41% 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 66,450 111,793 140,071 128,721 62,271 194% 25% -8% 41 Professional Services 5,995,071 5,995,071 6,262,192 5,593,708 5,822,337 (172,734) 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 27,378 (57,318) 32% -83% -19% 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 1,771,840 (421,297) 81% -34% 0% 46 Insurance 1,030,329 1,030,329 889,957 987,671 1,120,068 89,739 109% 11% 13% 47 Public Utilities 1,991,445 1,991,445 1,983,981 1,817,328 2,250,189 258,744 113% -8% 24% 48 Repairs and Maintenance 651,669 651,669 708,384 910,635 715,551 63,882 110% 29% -21% 49 Miscellaneous 1,123,230 1,123,230 1,224,377 949,675 963,565 (159,665) 86% -22% 1% 6* Capital Expenditures 518,665 518,665 109,051 5,495 136,506 (382,160) 26% -95% 2384% Total Operating Expenses 20,710,008 20,710,008 22,551,356 18,475,436 20,014,195 (695,813) 97% -18% 8% Total Expenses $ 65,490,117 $ 65,490,117 $ 65,249,205 $ 60,403,633 $ 62,904,209 I $ (2,585,907) 96% -7% 4% Percent of year completed 24 100% CITY OF TUKWILA 2021 YEAR-END FINANCIAL REPORT Other Funds Financial Reports 26 City of Tukwila Contingency Fund 105 - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Miscellaneous Revenue Investment earnings $ 20,000 $ 66,960 $ Transfers in 46,960 334.8% Total Miscellaneous Revenue 20,000 66,960 46,960 334.8% 238,936 238,936 Total Revenues 20,000 305,896 285,896 1529.5% EXPENDITURES: Transfers Out Total Expenditures Change in fund balances Beginning Fund Balance 20,000 305,896 6,448,169 6,448,169 285,896 1529.5% Ending Fund Balance $ 6,468,169 $ 6,754,065 $ 285,896 104.4% 27 City of Tukwila Drug Seizure Fund 109 - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Miscellaneous Revenue Investment earnings $ 500 $ - $ (500) Seizure Revenue 60,000 300,000 240,000 Other - 71,381 71,381 Total Miscellaneous Revenue 0.0% 500.0% 60,500 371,381 310,881 613.9% Total Revenues 60,500 371,381 310,881 613.9% EXPENDITURES: 31 Office & Operating Supplies 35 Small Tools & Minor Equipment 41 Professional Services 43 Travel 49 Miscellaneous 6" Capital Outlay 40,000 22,669 (17,331) 1,907 1,907 100,000 (100,000) 6,595 6,595 19,589 19,589 60,000 58,881 Transfers Out 26,000 56.7% 0.0% (1,119) 98.1% 26,000 - 100.0% Total Expenditures 226,000 135,641 (90,359) 60.0% Change in fund balances Beginning Fund Balance (165,500) 235,740 331,534 331,534 401,240 -142.4% Ending Fund Balance $ 166,034 $ 567,273 $ 401,240 341.7% 28 City of Tukwila Hotel/Motel Tax Fund 101 Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: General Revenue Hotel/Motel Taxes $ 400,000 $ 540,329 $ 140,329 135.1% Total General Revenue 400,000 540,329 140,329 135.1% Miscellaneous Revenue Investment earnings 6,000 1,942 (4,059) 32.4% Other - 10,680 10,680 Total Miscellaneous Revenue 6,000 12,622 6,622 210.4% Total Revenues 406,000 552,950 146,950 136.2% EXPENDITURES: 11 Salaries 59,674 60,695 1,021 101.7% 2* Personnel Benefits 19,126 19,182 56 100.3% 31 Office and operating supplies 5,000 5,714 714 114.3% 41 Professional Services 675,000 290,512 (384,488) 43.0% 42 Communication - 331 331 43 Travel 10,000 2,366 (7,634) 23.7% 44 Advertising 250,000 114,424 (135,576) 45.8% 49 Miscellaneous 58,000 4,767 (53,233) 8.2% Indirect Cost Allocation 24,981 24,981 - 100.0% Total Expenditures 1,101,781 522,973 (578,808) 47.5% Change in fund balances Beginning Fund Balance (695,781) 29,977 1,712,389 1,712,389 725,758 -4.3% Ending Fund Balance $ 1,016,608 $ 1,742,366 $ 725,758 171.4% 29 City of Tukwila Debt Service Funds 2XX - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Miscellaneous Revenue Investment earnings $ 2,000 $ 154 $ (1,846) 7.7% Total Miscellaneous Revenue 2,000 154 (1,846) 7.7% Transfers In Contributions SCORE Proceeds from refunded debt 3,681,376 376,895 3,870,501 3,646,679 3,870,500 (34,697) 99.1% (376,895) 0.0% (1) 100.0% Total Revenues 7,930,772 7,517,333 (413,439) 94.8% EXPENDITURES: 71 Debt Service Principal 83 Debt Service Interest 84 Debt Issue Costs 5,838,936 2,435,889 40,500 5,661,560 2,236,367 40,500 (177,376) (199,522) 97.0% 91.8% 100.0% Total Expenditures 8,315,326 7,938,428 (376,898) 95.5% Change in fund balances Beginning Fund Balance (384,554) (421,095) 421,095 421,095 (36,541) 109.5% Ending Fund Balance $ 36,541 $ - $ (36,541) 0.0% 30 City of Tukwila Debt Service UTGO - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: General Revenue Property Taxes Total General Revenue Miscellaneous Revenue $ 3,605,000 $ 3,906,139 $ 301,139 108.4% 3,605,000 3,906,139 301,139 108.4% Investment earnings 171 171 Total Miscellaneous Revenue - 171 171 Total Revenues 3,605,000 3,906,309 301,309 108.4% EXPENDITURES: 71 Debt Service Principal 83 Debt Service Interest/Misc Fees 960,000 960,000 100.0% 2,642,975 2,642,975 100.0% Total Expenditures 3,602,975 3,602,975 - 100.0% Change in fund balances Beginning Fund Balance 2,025 303,334 9,959 9,959 301,309 14979.5% Ending Fund Balance $ 11,984 $ 313,293 $ 301,309 2614.3% 31 City of Tukwila Debt Service LID, Guaranty Funds - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Miscellaneous Revenue LID Assesment Interest $ 159,000 $ 168,710 $ 9,710 106.1% LID Assesment Principal 445,000 375,889 (69,111) 84.5% Total Miscellaneous Revenue 604,000 544,599 (59,401) 90.2% Total Revenues 604,000 544,599 (59,401) 90.2% EXPENDITURES: 71 Debt Service Principal 83 Debt Service Interest/Misc Fees 445,000 370,000 203,588 177,713 (75,000) 83.1% (25,876) 87.3% Total Expenditures 648,588 547,713 (100,876) 84.4% Change in fund balances Beginning Fund Balance (44,588) (3,114) 1,343,385 1,343,385 41,474 7.0% Ending Fund Balance $ 1,298,797 $ 1,340,271 $ 41,474 103.2% 32 City of Tukwila Street Fund 103 - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Intergovernmental Revenue State Entitlements - MVFT Cities $ 200,000 $ 294,508 $ 94,508 147.3% Total Intergovernmental Revenue 200,000 294,508 94,508 147.3% Miscellaneous Revenue Charges for services 369,000 (369,000) 0.0% Investment earnings 20,000 667 (19,333) 3.3% Total Miscellaneous Revenue 389,000 667 (388,333) 0.2% Transfers In 100,000 100,000 100.0% Total Revenues 689,000 395,174 (293,826) 57.4% EXPENDITURES: 11 Salaries 12 Extra Labor 2* Benefits 31 Office and Operating Supplies 35 Small Tools and Minor Equipment 41 Professional Services 44 Advertising 48 Repairs and Maintenance 6* Capital outlay 100,000 369,000 13,466 13,466 418 418 5,488 5,488 100,046 100,046 (100,000) 49,550 49,550 1,347 1,347 21,964 21,964 (369,000) 0.0% 0.0% Total Expenditures 469,000 192,280 (276,720) 41.0% Change in fund balances Beginning Fund Balance 220,000 202,895 504,912 504,912 (17,105) 92.2% Ending Fund Balance $ 724,912 $ 707,806 $ (17,105) 97.6% EXPENDITURES BY PROJECT: Traffic Calming Safe Routes -S 152nd St 53rd Ave S 42nd Ave S Phase III Wetland monitoring Total Expenditures by Project 100,000 369,000 151,994 51,994 2,499 (366,501) 34,983 34,983 87 87 2,717 2,717 152.0% 0.7% 469,000 192,280 (276,720) 41.0% 33 City of Tukwila Arterial Street Fund 104 - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: General Revenue Parking Tax $ 450,000 $ 488,144 $ 38,144 108.5% Solid Waste Utility Tax 950,000 1,047,023 97,023 110.2% MVFT Cities 110,000 150,215 40,215 136.6% Real Estate Excise Taxes 500,000 1,516,767 1,016,767 303.4% Total General Revenue 2,010,000 3,202,148 1,192,148 159.3% Charges for Sevices Traffic Impact Fees 303,000 251,088 (51,912) 82.9% Total Charges for Services 303,000 251,088 (51,912) 82.9% Intergovemmental Revenue Federal Grants 982,000 1,261,113 279,113 128.4% State Grants 326,000 (326,000) 0.0% Total Intergovernmental Revenue 1,308,000 1,261,113 (46,887) 96.4% Miscellaneous Revenue Investment earnings 30,000 933 (29,067) 3.1% Contributions/Donations 30,000 104,100 74,100 347.0% Total Miscellaneous Revenue 60,000 105,033 45,033 175.1 % Transfers In 1,666,852 1,666,850 (2) 100.0% Total Revenues 5,347,852 6,486,232 1,138,380 121.3% EXPENDITURES: 11 Salaries 242,843 317,535 74,692 130.8% 2* Benefits 83,458 117,790 34,332 141.1% 31 Office and Operating Supplies 421 421 35 Small Tools and Minor Equipment 22,020 22,020 41 Professional Services 821,000 582,396 (238,604) 70.9% 44 Advertising 2,576 2,576 48 Repairs and Maintenance 1,610,000 1,161,071 (448,929) 72.1% Total Operating Expenses 2,757,301 2,203,810 (553,491) 79.9% Capital Expenses 6* Capital Outlay 1,008,000 1,534,425 526,425 152.2% 1,008,000 1,534,425 526,425 152.2% Transfers Out 485,000 485,000 100.0% Total Expenditures 4,250,301 4,223,235 (27,066) 99.4% Change in fund balances 1,097,551 2,262,997 1,165,446 206.2% Beginning Fund Balance 1,419,190 1,419,190 Ending Fund Balance $ 2,516,741 $ 3,682,187 $ 1,165,446 146.3% EXPENDITURES BY PROJECT: Overlay 1,200,000 1,280,300 80,300 106.7% BAR Bridge over Airport Way 882,000 1,114,766 232,766 126.4% 42nd Ave S Bridge Replacement 678,000 450,591 (227,409) 66.5% 42nd Ave Bridge Emergency Repair 192,984 192,984 West Valley Hwy (1-405 - Strander Blvd) (5,000) 327,983 332,983 -6559.7% Allentown Truck Reroute Project 27,200 27,200 Wetland Monitoring 50,000 21,413 (28,587) 42.8% Transportation Element of Comp Plan 400,000 (400,000) 0.0% Overhead 326,301 203,838 (122,463) 62.5% ADA Improvements 35,000 16,103 (18,897) 46.0% Green River trail improvements 74,000 (74,000) 0.0% Annual Bridge Inpsections 75,000 31,812 (43,188) 42.4% Annual Traffic Signals & Counts 50,000 32,652 (17,348) 65.3% Tukwila Pedestrian Bridge Repairs 38,593 38,593 Transfer Out - Park Imp fees to 301 485,000 485,000 100.0% Total Expenditures by Project 4,250,301 4,223,235 (27,066) 99.4% 34 City of Tukwila Land Acquisition, Rec and Park Development Fund 301 - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: General Revenue Excess Prop Tax Levy - Dwmsh Hill $ 304,000 $ 159,442 $ (144,558) 52.4% Real Estate Excise Taxes 949,149 949,149 Total General Revenue 304,000 1,108,591 804,591 364.7% Fees and Penalties Park Impact Fees Total Fees and Penalties Intergovernmental Revenue State Grants- Duwamish Hill Preserve Total Intergovernmental Revenue Miscellaneous Revenue Investment earnings Total Miscellaneous Revenue 101,000 43,780 (57,220) 43.3% 101,000 43,780 1,500,000 (57,220) 43.3% (1,500,000) 0.0% 1,500,000 5,000 2,128 (1,500,000) 0.0% (2,872) 42.6% 5,000 2,128 (2,872) 42.6% Transfers In 518,550 518,550 - 100.0% Total Revenues 2,428,550 1,673,050 (755,500) 68.9% EXPENDITURES: 11 Salaries 7,789 7,789 - 2* Benefits - 1,496 1,496 31 Office and Operating Supplies - 33,476 33,476 41 Professional Services 239,000 349,952 110,952 146.4% 49 Miscellaneous 2,101 2,101 Total Operating Expenses 239,000 394,989 155,989 165.3% Capital Expenses 6* Capital Outlay 2,266,000 - (2,266,000) 0.0% 2,266,000 (2,266,000) 0.0% Transfers Out 149,500 149,495 (5) 100.0% Total Expenditures 2,654,500 544,485 (2,110,015) 20.5% Change in fund balances (225,950) 1,128,565 1,354,515 -499.5% Beginning Fund Balance 1,767,280 1,767,280 Ending Fund Balance $ 1,541,330 $ 2,895,845 $ 1,354,515 187.9% EXPENDITURES BY PROJECT: Park Acquisitions 1,400,000 25,733 (1,374,267) 1.8% Open Space Improvements 500,000 (500,000) 0.0% Park Improvements 405,000 153,967 (251,033) 38.0% Parks Maintenance - 76,298 76,298 Arts Projects 50,000 98,351 48,351 196.7% Multipurpose trails 50,000 (50,000) 0.0% Tukwila Pond 100,000 40,489 (59,511) 40.5% Other 151 151 Total Expenditures by Project 2,505,000 394,989 (2,110,011) 15.8% 35 City of Tukwila Facility Replacement Fund 302 - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Miscellaneous Revenue Investment earnings $ 10,000 $ 2,629 $ (7,371) 26.3% Total Miscellaneous Revenue 10,000 2,629 (7,371) 26.3% Sale of Capital Assets 400,000 867,500 467,500 216.9% Total Revenues 410,000 870,129 460,129 212.2% EXPENDITURES: 41 Professional Services 47 Public Utility Services Total Operating Expenses Transfers Out 35,000 9,767 (25,233) 27.9% 11,562 11,562 35,000 21,329 790,000 786,184 (13,671) 60.9% (3,816) 99.5% Total Expenditures 825,000 807,512 (17,488) 97.9% Change in fund balances Beginning Fund Balance (415,000) 62,617 1,867,144 1,867,144 477,617 -15.1% Ending Fund Balance $ 1,452,144 $ 1,929,761 $ 477,617 132.9% 36 City of Tukwila General Governmnet Improvements Fund 303 - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Miscellaneous Revenue Investment earnings $ 500 $ 700 $ 200 140.0% Total Miscellaneous Revenue 500 700 200 140.0% Transfers In 300,000 300,000 - 100.0% Total Revenues 300,500 300,700 200 100.1% EXPENDITURES: 2* Benefits (31) (31) 41 Professional Services 90,000 (90,000) 0.0% 48 Repairs and Maintenance - 135,346 135,346 Total Operating Expenses 90,000 135,315 45,315 150.4% Capital Expenses 6" Capital Outlay Total Capital Expenses 150,000 (150,000) 0.0% 150,000 (150,000) 0.0% Total Expenditures 240,000 135,315 (104,685) 56.4% Change in fund balances Beginning Fund Balance Ending Fund Balance 60,500 165,385 512,648 512,648 104,885 273.4% $ 573,148 $ 678,033 $ 104,885 118.3% EXPENDITURES BY PROJECT: TCC -Retrofit HVAC Chiller 10,000 17,013 7,013 170.1% TCC -Exterior Paint/Stain Building 140,000 118,333 (21,667) 84.5% City Hall Campus Seismic Study 40,000 (40,000) 0.0% Other 50,000 (31) (50,031) -0.1% Total Expenditures by Project 240,000 135,315 (104,685) 56.4% 37 City of Tukwila Fire Impact Fees Fund 304- Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Charges for Sevices Fire Impact Fees $ 300,000 $ 25,383 $ (274,617) 8.5% Total Charges for Services 300,000 25,383 (274,617) 8.5% Miscellaneous Revenue Investment earnings Total Miscellaneous Revenue 500 (500) 0.0% 500 (500) 0.0% Total Revenues 300,500 25,383 (275,117) 8.4% EXPENDITURES: Transfers Out 300,000 25,383 (274,617) 8.5% Total Expenditures 300,000 25,383 (274,617) 8.5% Change in fund balances 500 (500) 0.0% Beginning Fund Balance Ending Fund Balance $ 500 $ - $ (500) 0.0% 38 City of Tukwila Public Safety Plan Fund 305- Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: General Revenue Mitigation Fees (Tukwila South) $ 300,000 $ 300,000 $ 100.0% Excise Tax 500,000 567,617 67,617 113.5% Total Intergovernmental Revenue 800,000 867,617 67,617 108.5% Miscellaneous Revenue Investment earnings Proceeds from sales of Capital Assets Total Miscellaneous Revenue Transfers In 40,000 1,378 5,565,000 261,845 (38,622) (5,303,155) 3.4% 4.7% 5,605,000 263,223 374,750 100,130 (5,341,777) 4.7% (274,620) 26.7% Total Revenues 6,779,750 1,230,970 (5,548,780) 18.2% EXPENDITURES: 35 Small Tools and Minor Equipment 41 Professional Services 45 Operating Rentals & Leases 47 Public Utility Services 48 Repairs & Maintenance 6* Capital Outlay Transfer Out 174,000 725,000 108,691 12,057 12,938 5,748 5,845 2,184,052 (65,309) 12,057 12,938 5,748 5,845 1,459,052 62.5% 301.2% 899,000 2,329,331 2,068,817 1,988,230 1,430,331 259.1% (80,587) 96.1% Total Expenditures 2,967,817 4,317,561 1,349,744 145.5% Change in fund balances Beginning Fund Balance 3,811,933 (3,086,590) 3,164,263 3,164,263 (6,898,523) -81.0% Ending Fund Balance $ 6,976,196 $ 77,672 $ (6,898,523) 1.1% EXPENDITURES BY PROJECT: Fire Station 52 Justice Center Fire Station 51 Fire Equipment & Apparatus Fire Station 54 Debt Service Transfer Transfer for Teen/Senior Intergen Center Total Expenditures by Project 525,000 200,000 574,000 1,068,817 600,000 1,267,324 863,824 123,279 376,266 18,051 1,068,817 600,000 742,324 663,824 123,279 (197,734) 18,051 241.4% 431.9% 65.6% 100.0% 100.0% 2,967,817 4,317,561 1,349,744 145.5% 39 City of Tukwila City Facilities Fund 306- Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Miscellaneous Revenue Bond proceeds Investment earnings Total Miscellaneous Revenue $ 2,850,000 $ 2,850,000 $ 5,384 5,384 100.0% 2,850,000 2,855,384 Transfers In 1,750,000 5,384 100.2% 1,750,000 100.0% Total Revenues 4,600,000 4,605,384 5,384 100.1% EXPENDITURES: 41 Professional Services 6* Capital Outlay Transfer Out 600,000 5,862,408 6,106,202 (600,000) 0.0% 243,794 104.2% 6,462,408 6,106,202 (356,206) 94.5% Total Expenditures 6,462,408 6,106,202 (356,206) 94.5% Change in fund balances Beginning Fund Balance (1,862,408) (1,500,818) 5,000,862 5,000,862 361,590 80.6% Ending Fund Balance $ 3,138,454 $ 3,500,044 $ 361,590 111.5% EXPENDITURES BY PROJECT: Public Works Shops Minkler Improvements Intergenerational Teen/Senior Center 5,862,408 5,744,843 (117,565) 98.0% - 40,491 40,491 600,000 320,867 (279,133) 53.5% Total Expenditures by Project 6,462,408 6,106,202 (356,206) 94.5% 40 City of Tukwila Water Fund 401 - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Charges for Services Water Sales $ 6,664,000 $ 6,771,116 $ 107,116 101.6% Security - 210 210 Total Charges for Services 6,664,000 6,771,326 107,326 101.6% Miscellaneous Revenue Investment earnings 38,000 23,820 (14,180) Connection Fees 20,000 67,865 47,865 Sale of Capital Assets - 9,174 9,174 Other - 405 405 Total Miscellaneous Revenue 62.7% 339.3% 58,000 101,264 43,264 174.6% Total Revenues 6,722,000 6,872,590 150,590 102.2% EXPENDITURES: 11 Salaries 671,284 531,880 (139,404) 79.2% 12 Extra Labor 4,000 1,987 (2,013) 49.7% 13 Overtime 10,000 15,551 5,551 155.5% 2* Benefits 338,031 307,429 (30,602) 90.9% 31 Office and Operating Supplies 144,700 106,208 (38,492) 73.4% 33 Water Purchased for Resale 3,352,000 2,688,048 (663,952) 80.2% 35 Small Tools and Minor Equipment 15,000 4,010 (10,990) 26.7% 41 Professional Services 934,250 218,592 (715,658) 23.4% 42 Communication 7,000 7,982 982 114.0% 43 Travel 1,500 625 (875) 41.7% 44 Advertising - 1,332 1,332 - 45 Operating Rentals and Leases 139,269 145,074 5,805 104.2% 46 Insurance 18,069 18,657 588 103.3% 47 Public Utility Services 32,000 26,499 (5,501) 82.8% 48 Repairs and Maintenance 19,000 129,034 110,034 679.1% 49 Miscellaneous 1,033,500 1,084,534 51,034 104.9% Total Operating Expenses 6,719,603 5,287,442 (1,432,161) 78.7% Capital Expenses 6* Capital Outlay 810,000 5,385 (804,615) 0.7% 7* Debt Service Principal 135,945 121,492 (14,453) 89.4% 8* Debt Service Interest 7,753 8,567 814 110.5% Transfer Out Indirect Cost Allocation 953,698 135,444 (818,254) 14.2% 404,832 402,541 (2,291) 99.4% 698,111 698,111 100.0% Total Expenditures 8,776,244 6,523,538 (2,252,706) 74.3% Change in fund balances Beginning Fund Balance (2,054,244) 349,052 6,441,207 6,441,207 2,403,296 -17.0% Ending Fund Balance $ 4,386,963 $ 6,790,260 $ 2,403,296 154.8% 41 City of Tukwila Sewer Fund 402 - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Charges for Services Sewer Sales Total Charges for Services $ 9,952,000 $ 9,422,525 $ (529,475) 94.7% 9,952,000 9,422,525 (529,475) 94.7% Miscellaneous Revenue Investment earnings 55,000 90 (54,910) 0.2% Connection Fees 25,000 163,200 138,200 652.8% Total Miscellaneous Revenue 80,000 163,290 83,290 204.1% Total Revenues 10,032,000 9,585,815 (446,185) 95.6% EXPENDITURES: 11 Salaries 673,038 707,814 34,776 105.2% 12 Extra Labor - 1,924 1,924 - 13 Overtime 7,000 5,305 (1,695) 75.8% 2* Benefits 309,020 304,691 (4,329) 98.6% 31 Office and Operating Supplies 22,600 14,031 (8,569) 62.1% 33 Metro Sewage Treatment 4,977,000 4,173,212 (803,788) 83.8% 35 Small Tools and Minor Equipment 5,000 958 (4,042) 19.2% 41 Professional Services 582,100 352,564 (229,536) 60.6% 42 Communication 6,000 7,607 1,607 126.8% 43 Travel 2,000 72 (1,928) 3.6% 44 Advertising - 2,690 2,690 - 45 Operating Rentals and Leases 89,752 92,020 2,268 102.5% 46 Insurance 9,035 9,329 294 103.3% 47 Public Utility Services 46,000 39,274 (6,726) 85.4% 48 Repairs and Maintenance 45,000 420,368 375,368 934.2% 49 Miscellaneous 1,285,700 1,184,097 (101,603) 92.1% Total Operating Expenses 8,059,245 7,315,956 (743,289) 90.8% Capital Expenses 6* Capital Outlay 2,625,000 1,040,818 (1,584,182) 39.7% 7* Debt Service Principal 330,886 330,886 0 100.0% 8* Debt Service Interest 20,786 23,072 2,286 111.0% Transfer Out Indirect Cost Allocation 2,976,672 1,394,776 (1,581,896) 46.9% 750,730 749,449 (1,281) 99.8% 588,149 588,149 100.0% Total Expenditures 12, 374, 796 10, 048, 330 (2,326,466) 81.2% Change in fund balances Beginning Fund Balance (2,342,796) (462,515) 13, 364, 976 13, 364, 976 1,880,281 19.7% Ending Fund Balance $ 11,022,180 $ 12,902,461 $ 1,880,281 117.1% 42 City of Tukwila Golf Course Fund 411 - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: General Revenue Excise Taxes $ 3,000 $ 2,895 $ (105) 96.5% Total General Revenue 3,000 2,895 (105) 96.5% Charges for Services Sale of Merchandise 167,942 184,398 16,456 109.8% Green Fees, Instruction 1,588,697 1,652,636 63,939 104.0% Total Charges for Services 1,756,639 1,837,034 80,395 104.6% Miscellaneous Revenue Investment earnings 1,000 943 (57) 94.3% Rents and Concessions 437,361 427,601 (9,760) 97.8% Other 20,000 435 (19,565) 2.2% Total Miscellaneous Revenue 458,361 428,979 (29,382) 93.6% Transfers In 300,000 300,000 - 100.0% Total Revenues 2,518,000 2,568,908 50,908 102.0% EXPENDITURES: 11 Salaries 696,731 735,090 38,359 105.5% 12 Extra Labor 85,000 42,421 (42,579) 49.9% 13 Overtime 1,010 9,540 8,530 944.6% 2* Benefits 348,107 340,420 (7,687) 97.8% 31 Office and Operating Supplies 84,000 134,702 50,702 160.4% 34 Items purcashed for resale 139,000 151,331 12,331 108.9% 35 Small Tools and Minor Equipment 92,000 86,597 (5,403) 94.1% 41 Professional Services 4,000 101,393 97,393 2534.8% 42 Communication 5,600 7,669 2,069 136.9% 43 Travel 500 - (500) 0.0% 44 Advertising 5,000 11,073 6,073 221.5% 45 Operating Rentals and Leases 37,500 33,962 (3,538) 90.6% 46 Insurance 18,069 20,428 2,359 113.1% 47 Public Utility Services 71,700 77,679 5,979 108.3% 48 Repairs and Maintenance 80,000 39,495 (40,505) 49.4% 49 Miscellaneous 78,500 76,674 (1,826) 97.7% Total Operating Expenses 1,746,717 1,868,473 121,756 107.0% Capital Expenses 6* Capital Outlay Transfer Out Indirect Cost Allocation 50,000 234,871 184,871 469.7% 50,000 234,871 184,871 469.7% 500 500 - 100.0% 206,798 206,798 100.0% Total Expenditures 2,004,015 2,310,642 306,627 115.3% Change in fund balances 513,985 258,265 (255,720) 50.2% Beginning Fund Balance 542,239 542,239 Ending Fund Balance $ 1,056,224 $ 800,505 $ (255,720) 75.8% 43 City of Tukwila Surface Water Fund 412 - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Charges for Services Surface Water Sales Total Charges for Services Intergovernmental Revenue Miscellaneous Revenue Investment earnings Total Miscellaneous Revenue $ 7,000,000 $ 7,021,365 $ 21,365 100.3% 7,000,000 7,021,365 1,833,000 1,540,242 50,000 8,137 21,365 100.3% (292,758) 84.0% (41,863) 16.3% 50,000 8,137 (41,863) 16.3% Total Revenues 8,883,000 8,569,744 (313,256) 78.5% EXPENDITURES: 11 Salaries 1,131,410 1,115,957 (15,453) 98.6% 12 Extra Labor 8,000 5,334 (2,666) 66.7% 13 Overtime 13,000 11,384 (1,616) 87.6% 2" Benefits 549,898 547,128 (2,770) 99.5% 31 Office and Operating Supplies 137,500 28,562 (108,938) 20.8% 35 Small Tools and Minor Equipment 6,500 3,315 (3,185) 51.0% 41 Professional Services 2,714,900 760,156 (1,954,744) 28.0% 42 Communication 7,000 6,408 (592) 91.5% 43 Travel 2,000 1,181 (819) 59.1% 44 Advertising - 1,265 1,265 45 Operating Rentals and Leases 288,324 293,404 5,080 101.8% 46 Insurance 27,104 27,996 892 103.3% 47 Public Utility Services 107,020 63,329 (43,691) 59.2% 48 Repairs and Maintenance 39,000 83,022 44,022 212.9% 49 Miscellaneous 798,000 809,017 11,017 101.4% Total Operating Expenses 5,829,656 3,757,458 (2,072,198) 64.5% Capital Expenses 6* Capital Outlay 1,815,000 2,683,638 868,638 147.9% 7* Debt Service Principal 289,792 278,217 (11,575) 96.0% 8* Debt Service Interest 8,046 8,107 61 100.8% Transfer Out Indirect Cost Allocation 2,112,838 2,969,962 857,124 140.6% 567,421 564,254 (3,168) 99.4% 622,199 622,199 - 100.0% Total Expenditures 9,132,114 7,913,872 (1,218,242) 86.7% Change in fund balances Beginning Fund Balance (249,114) 4,883,236 655,872 4,883,236 904,986 -263.3% Ending Fund Balance $ 4,634,122 $ 5,539,108 $ 904,986 119.5% 44 City of Tukwila Equipment Rental/Replacement Fund 501 As of December 31, 2021 Revenue and Expenditures 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Charges for Services ERR O&M Dept Charges $ 1,938,418 $ 1,633,350 $ (305,068) 84.3% Equipment Replacement Charges 401,400 401,401 1 100.0% Total Charges for Services 2,339,818 2,034,751 (305,067) 87.0% Miscellaneous Revenue Investment earnings 20,000 6,171 (13,829) 30.9% Insurance Proceeds 20,000 184,443 164,443 922.2% Total Miscellaneous Revenue 40,000 190,614 150,614 476.5% Sale of Capital Assets 5,000 102,400 97,400 2048.0% Transfers In 426,000 345,413 (80,587) 81.1% Total Revenues 2,810,818 2,673,177 (137,641) 95.1% EXPENDITURES: 11 Salaries 371,554 323,032 (48,522) 86.9% 12 Extra Labor 32,000 (32,000) 0.0% 13 Overtime 1,875 7,314 5,439 390.1% 2* Benefits 224,472 203,671 (20,801) 90.7% 31 Office and Operating Supplies 3,000 5,698 2,698 189.9% 34 Items Purchased for Resale 655,000 514,145 (140,855) 78.5% 35 Small Tools and Minor Equipment 7,500 6,484 (1,016) 86.5% 41 Professional Services 5,500 3,234 (2,266) 58.8% 42 Communication 5,500 4,691 (809) 85.3% 43 Travel 1,500 2,357 857 157.1% 45 Operating Rentals and Leases 73,164 59,289 (13,875) 81.0% 46 Insurance 99,000 96,446 (2,554) 97.4% 48 Repairs and Maintenance 120,000 52,926 (67,074) 44.1% 49 Miscellaneous 20,000 35,226 15,226 176.1% 64 Capital Outlay 1,609,400 762,958 (846,442) 47.4% Indirect Cost Allocation 330,403 330,403 100.0% Total Expenditures 3,559,868 2,407,873 (1,151,995) 67.6% Change in fund balances Beginning Fund Balance (749,050) 265,305 1,014,355 -35.4% 4,349,783 4,349,783 Ending Fund Balance $ 3,600,733 $ 4,615,087 $ 1,014,355 128.2% 45 City of Tukwila Insurance Fund 502 - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Charges for Services Employee Benefit Programs $ 1,000 $ 352 $ (648) 35.2% Total Charges for Services 1,000 352 (648) 35.2% Miscellaneous Revenue Investment earnings 30,000 5,877 Employer Trust Contributions 7,927,924 7,161,351 Employee Trust Contibutions 160,000 202,186 (24,123) (766,573) 42,186 19.6% 90.3% 126.4% Total Miscellaneous Revenue 8,117,924 7,369,413 (748,511) 90.8% Total Revenues 8,118,924 7,369,765 (749,159) 90.8% EXPENDITURES: 25 Medical, Dental, Life, Optical 41 Professional Services 49 Miscellaneous 7,836,633 100,000 21,000 Indirect Cost Allocation 178,821 6,587,724 82,500 10,470 (1,248,909) (17,500) (10,530) 84.1% 82.5% 49.9% 178,821 - 100.0% Total Expenditures 8,136,454 6,859,515 (1,276,939) 84.3% Change in fund balances Beginning Fund Balance (17,530) 510,250 87,542 87,542 527,780 -2910.7% Ending Fund Balance $ 70,012 $ 597,792 $ 527,780 853.8% 46 City of Tukwila LEOFF Insurance Fund 503 - Revenue and Expenditures As of December 31, 2021 2021 Variance Annual Actual Over/(Under) % of Annual Budget YTD Results Budget Budget REVENUE: Miscellaneous Revenue Investment earnings $ 1,000 $ 405 $ (595) 40.5% Employer Trust Contributions 315,000 270,249 (44,751) 85.8% Total Miscellaneous Revenue 316,000 270,654 (45,346) 85.7% Total Revenues 316,000 270,654 (45,346) 85.7% EXPENDITURES: 25 Medical, Dental, Life, Optical 469,500 41 Professional Services 5,000 49 Miscellaneous 500 Indirect Cost Allocation 11,920 331,071 (138,429) 70.5% (5,000) 0.0% (500) 0.0% 11,920 100.0% Total Expenditures 486,920 342,991 (143,929) 70.4% Change in fund balances Beginning Fund Balance (170,920) (72,336) 336,595 336,595 98,584 42.3% Ending Fund Balance $ 165,675 $ 264,258 $ 98,584 159.5% 47 48 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Governance Committee FROM: Vicky Carlsen, Finance Director Julie Hatley, ARPA Funds Analyst CC: Mayor Ekberg DATE: May 23, 2022 SUBJECT: 2021 American Rescue Plan Act (ARPA) Fund expenditures and benefits to the community ISSUE Staff is reporting 2021 ARPA-funded expenditures, and includes information detailing the benefits of the expenditures to the community, per 2021 allocations approved by City Council in November 2021. BACKGROUND On March 10, 2021, a $1.9 trillion relief package, known as the American Rescue Plan Act, was approved and provides funding in several areas including state and local aid, education, rental assistance, and transit. The City was allocated $5.68 million with the first half received in June of 2021. The second half will be received in June of 2022. Funds must be spent or contractually committed by December 31, 2024. The funds can be used in the following ways: - To respond to the public health emergency with respect to COVID-19 or its negative economic impacts, including assistance to households, small businesses, and non- profits, or to aid impacted industries such as tourism, travel, and hospitality. - Provide premium pay to eligible workers that are preforming essential work. - Provision of government services to the extent of the reduction in revenue due to the pandemic relative to revenues collected in the most recent full fiscal year. Funds used under this category may only be used to restore services or projects that were reduced or eliminated due to revenue lost due to COVID. In other words, there must be a - Make necessary investments in water, sewer, or broadband infrastructure. The funds cannot be used to directly or indirectly offset tax reductions or delay a tax/tax increase. Nor can funds be deposited into any pension fund. Final guidance on approved uses of the funds was released in January 2022, with updates to the ARPA Final Rule provided by the US Treasury in April 2022. The 2022 updates include expanded categories under which ARPA funds can be used to benefit communities. And allows governments to qualify individuals and small business owners for direct assistance by assuming 49 INFORMATIONAL MEMO Page 2 the resident or owner is impacted or disproportionately impacted by the covid-19 pandemic if they reside or have a business located in a Qualified Census Tract (QCT). Contracts and subrecipients for ARPA-funded expenditures are required to be compliant to US Treasury ARPA requirements. On March 14, 2022, staff introduced ARPA Funds Analyst to the Finance & Governance committee that included a presentation and question/answer session regarding the general documentation, processes, and tracking techniques required for accurate and federally compliant recordkeeping and reporting. ARPA Funds Analyst collects, monitors, and tracks each individual ARPA-funded expenditure by invoices, receipts and vouchers against GL reports, researches and collaborates across departments, and reconciles all individual expenditures and maintains an up-to-date record of expenditures per Council -approved allocation. Analyst successfully reported the City's first year of ARPA expenditures and community projects to the US Treasury as required by federal guideline. DISCUSSION Recap of 2021 Activity The table below outlines all 2021 ARPA-funded expenditures per Council -approved allocation that occurred during the allowable period of March 3, 2021 to December 31, 2021. Benefits of the expenditures to the community is included, plus further details as provided by the department. Each expenditure meets ARPA compliance requirements and directly or indirectly benefits the visitors, residents and business owners in our community as noted below. Planned and known expenditures for 2022 are also included, as provided by the department. 2021 Allocation Recipients Total 2021 Expended Total 2021 Allocation Benefits to Community Additional Details SeeClickFix $15,689 $15,000 See Click Fix provides a web and mobile application for residents and stakeholders to report issues to the City. It equitable as it serves as a work intake tool and outcomes can be measured e.g time to resolve by neighborhood. https://www.tukwilawa.gov/residents/engage/tukwila- works/ 50 INFORMATIONAL MEMO Page 3 2021 Allocation Recipients Total 2021 Expended Total 2021 Allocation Benefits to Community Additional Details Business Assistance $10,000 $15,000 Supported equitable access to resources, addresses the negative economic impact of Covid-19, stimulates our local economy, keeps businesses open, sustains and creates jobs, strengthens economic & social relationships, and increases tax revenue. Pre-ARPA 2020 and 2021 Business Assistance: • 27 childcare businesses were approved and each given $1,000 grant in 2020. • 50+ emails sent to all Tukwila businesses notifying them of resources and helpful marketing materials. • Initiated 110 telephone surveys, and 900+ emails with links for online survey to learn negative impacts of covid on businesses and identify barriers to stabilization. ARPA-Funded 2021 Business Assistance: • Contracted Southside Chamber of Commerce to provide education, translations, and assist small business owners to complete EIDL Grant Applications. • 7 businesses completed EIDL Grants with assistance (fashion boutique, bookkeeping service, shopping center, credit union, law office, daycare, and cleaning service). • 875 emails sent to small businesses for resources/grant education with translations provided in Vietnamese, and Spanish. • Social media impressions recorded for small business resources/grant education in 3 languages (English, Vietnamese, and Spanish). Instagram 246. Facebook 595. Linkedln 63. Twitter 145. YouTube Video 20. Rent/Utility Assistance $0 $0 Supported equitable access to resources, addresses the negative economic impacts of Covid-19 on impacted and disproportionately impacted residents, provides eviction prevention and promotes stabilization, prevents utility shut offs, and strengthens economic & social relationships in our community. ARPA funds will be used in 2022. In 2021 other funds were used to assist: Individual households = 231 Total rent assistance = $231,092 Total utility assistance = $46,255 Dark Trace Cyber Security $21,909 $25,000 Provides data protection and maintains citizen trust and confidence by protecting City finances and intellectual property. Applies artificial intelligence to detect and stop anomalous activity (e.g. ransomware) on our network. Build out chamber/conf rooms $13,283 $18,000 Provided residents equitable access to council chambers and conference rooms for online security, social distancing, and improve video/audio access for residents and remote employees. Installed HDMI/SDI conversion equipment and installed 360-Degree,1080p HD Smart Video Conference cameras, microphones, and speakers. 51 INFORMATIONAL MEMO Page 4 2021 Allocation Recipients Total 2021 Expended Total 2021 Allocation Benefits to Community Additional Details Leadership Initiatives (formerly Community Connectors) $0 $0 The purpose is to elevate, develop and support Tukwila community leaders. The program will incorporate a shared holistic approach that will consist of discussions of real-world lived experiences among Tukwila's diverse community members. The program will provide necessary tools to understand City services, policies and programs emphasizing professional and personal advocacy. Per Coordinator Neisha Fort -Brooks, programming to begin late Summer 2022. Web page planning is happening now. ARPA Funds Analyst $0 $0 Hired January 2022 to maximize APRA fund use, provide assistance and guidance on use of funds, provide ongoing status updates/reports, ensure accounting and appropriation of ARPA funds are in accordance with City mission, policies and ordinances, and adhere to Federal requirements for beneficiaries, expenditures, contracts, monitoring, and reporting. ARAP Funds Analyst will also assist the budgeting process by analyzing revenues to determine how covid has and continues to affect the City's revenue streams. Summer Camp $50,618 $50,000 Restores portion of cut Summer Camp programs, and frozen staff positions, that support youth continuing education over summer. Camp helps children improve their confidence, independence, healthy living with active play, environmental awareness, social skills, and leadership. 69 children participated in Camp Tukwilly in 2021. In 2022, ARPA funds will be used to restore Tenn Venture Camp and add Preschool summer programming to address decreased student readiness for school due to the pandemic. 52 INFORMATIONAL MEMO Page 5 2021 Allocation Recipients Total 2021 Expended Total 2021 Allocation Benefits to Community Additional Details Before & After School $41,275 $84,000 Restored portion of cut After School programs, and frozen staff positions, that support emotional, social, cognitive & academic development, reduce risky behaviors, promote physical health, and provide a safe and supportive environment for youth. 40 Students participated in After School programming September to December 2021. In 2022, ARPA funds will be used to increase capacity of the program to add back Before School programming and fully restore Preschool offerings. ARPA will also restore Winter Break for Students. Park Maintenance Staff $76,910 $80,000 Additional park staff hired using ARPA funding contributed to improve the overall maintenance and safety of parks, playgrounds, and trails for residents and visitors. Staff assisted with cleaning up garbage, vandalism and homeless encampments leading to improved safety and public health. Additional staffing allowed for reactivation of park shelter rentals for user groups. Permit Processing Staff $112,185 $125,000 Restored frozen staff positions for equitable and efficient permit processing for residents & businesses making infrastructure investments by reducing potential hazards of unsafe construction, ensures public health, welfare, & safety, and reduces the likelihood of injury to property owner, visitors, & future owners. ARPA funds in 2021 added back two Permit Processing employees with the benefit of: -Reducing backlog which decreased the time required to process a permit (Permit Techs are the front end and back end of each permit). -Easing the transition to electronic permitting that began in 2020. We were able to implement changes and identify any gaps in process much quicker. -Better planning for training/cross-training for job processes which included land use permits, fire permits, and public works permits. And allowed a smoother transition with one employee retiring. Fire - OT for Minimum Staffing $330,066 $225,000 Supported firefighter staffing levels for the protection of life and property including victim rescue, fire control, and property conservation. 53 INFORMATIONAL MEMO Page 6 2021 Allocation Recipients Total 2021 Expended Total 2021 Allocation Benefits to Community Additional Details Street Maintenance Staff $45,367 $167,500 Restored frozen staff positions for routine maintenance to keep overall costs down, maintain City infrastructure & road safety, preserve road strength & quality, ensure proper drainage, prevent washboarding & potholes, and maintain equitable community access. In early 2021, Street Department reports just trying to keep up with community complaints. Using ARPA funds in 2021 to restore two Street Maintenance positions enabled the restart of work put off due to pandemic -related short staffing. This includes: -Maintenance of vegetation along street surfaces in islands, sidewalks, and sides of the roadway (Spraying & pulling weeds, trimming plants, and adding mulch to plant beds). Department is still trying to catch up from work -time lost during pandemic. -Guardrail damage, that had to be coned off due to pandemic cuts, have been repaired: • 9 sections and post on 66th Ave bridge over 1-405 • 14 sections and post at West Marginal Place • 3 sections and post at Ryan Way/47th • West Valley Highway -Cleaning homeless camps, to remove debris and improve safety, was unable to be done without ARPA funding. This is now done monthly. • Tukwila international BLVD open field next to Shag • Tukwila international BLVD and 146th • New pedestrian bridge off of West Valley Highway • Strander Bridge. -Pressure washing bus stops on Tukwila International BLVD can now be done 2 x per month. Traffic Calming $100,000 $100,000 Funded equipment and engineering to reduce traffic speed, reduce vehicle collisions, improve safety for pedestrians and cyclists, reduce environmental impacts, increase neighborhood interaction and revitalization, and increase property values. Traffic Calming used ARPA funds in 2021 to: • Purchase radar driver feedback signs and Rapid Flashing Beacon Crosswalk systems to install where needed. • Speed cushions and signs were purchased, with installation at 53rd. • Construction of RRFB at 150th and 46th Ave S by Thorndyke elementary school. • Started Allentown, Cascade View, Tukwila elementary, impact charter school conversations with engineers in November/December 2021. Totals for 2021: $817,302 $904,500 2021 ARPA Allocations Total $904,500 2021 ARPA Expenditures Total $817,302 Under 2021 ARPA Allocation by: $87,198 Total 2021 ARPA Allocations Approved $904,500 Total 2022 ARPA Allocations Approved $2,860,000 2 -Year ARPA Total Allocations Approved $3,764,500 Total ARPA Award $5,685,000 54 INFORMATIONAL MEMO Page 7 Next Steps Expenditures will continue to be tracked and reconciled by ARPA Funds Analyst in preparation for the next required reporting period with the federal government. The next reporting period for the City will be April 30, 2023, and will include activity beginning April 1, 2022 through March 31, 2023. Analyst will perform budget projection tasks to maximize use of ARPA funds as we work to address the negative economic impacts of COVID-19 on our community. In addition to continued monitoring and tracking of ARPA-related expenditures, Analyst will also analyze various revenue sources that have been impacted by COVID-19 over the next few months. The analysis will help to fine-tune the revenue budget for the 2023-2024 biennium. Finally, if the Balancing Act tool is well received by the community, a simulation can be developed to gather input on priorities for use of remaining ARPA funds. RECOMMENDATION Discussion only. 55 56