HomeMy WebLinkAboutFIN 2023-02-13 Item 1B - Budget - Monthly General Fund Update - November 2022City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
FROM: Tony Cullerton, Deputy Finance Director
CC: Mayor Ekberg
DATE: February 13, 2023
SUBJECT: November 2022 General Fund Departmental Budget -to -Actuals Report
Summary
The purpose of the November 2022 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 November 2022 report is based on financial data available as of February 1, 2023, for the
period ending November 30, 2022. Additional details can be found within the included financial
report.
Expenditures
General Fund departmental expenditures totaled $55.8 million through November, which is
$832,265 less than the allocated budget of $56.6 million. Department 20, which is transfers to
other funds, totaled $8.5 million, which is $987,981 greater than the allocated budget. While Non -
Departmental is reporting current expenditures greater than the same period last year, the
department has only expended 78% of their annual budget at 92% of the year. Additional 4th
quarter transactions are pending that will bring the Non -Departmental expenditures more in line
with the annual budget. Examples of pending transactions include an ARPA transfer to Fund 103
— Residential Streets, for Traffic Calming, a transfer to Fund 305 — Public Safety Plan, for fire
equipment, and an outstanding debt service payment. the allocated budget is calculated to reflect
year-to-date spending patterns of the previous year. Transfers to capital project funds are
transferred to capital project funds as needed for cash flow purposes. Debt service transfers are
done quarterly.
In total, the General Fund reported expenditures of $64.3 million, which is equivalent to 84% of
the annual budget at the completion of 91.7% of the year. At the completion of November, all
General Fund departments are currently reporting expenditures below their YTD annual budget.
This report reflects an approved $480,000 budget increase for the Fire Department. Fire is within
budget through November but will exceed budget by the end of December due to overtime
expenditures that exceed the revised budget. Fire is projected to end the year at around $217,860
over budget, amounting to 101% of budget.
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INFORMATIONAL MEMO
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Departmental Variances
Year to Date Department Expenditures Compared to Allocated Budget Through November 2022:
EXPENDITURES BY DEPARTMENT
BUDGET
ACTUAL
2022
Annual
2022
Allocated
2020
2021
2022
Allocated Budget
vs Actual
OVER/(UNDER)
%
Expended
City Council
385,826
321,832
313,457
303,307
324,608
2,777
84.1%
Mayor's Office
2,565,927
2,145,791
1,934,073
1,821,487
1,893,307
(252,484)
73.8%
Administrative Services
5,869,141
4,989,508
4,097,026
4,385,492
4,159,294
(830,214)
70.9%
Finance Department
3,347,587
2,512,414
2,200,551
2,245,252
2,835,159
322,744
84.7%
Recreation Department / Parks Maintenance
5,083,108
4,252,399
3,735,479
3,821,491
4,381,896
129,496
86.2%
Community Development (DCD)
4,732,212
3,800,303
2,817,471
3,514,149
3,792,153
(8,150)
80.1%
Municipal Court
1,597,482
1,298,702
1,138,266
1,096,252
1,421,621
122,919
89.0%
Police Department
19,844,123
17,283,570
15,908,826
16,123,850
17,154,930
(128,640)
86.4%
Fire Department
14,772,033
13,519,401
11,572,798
12,572,008
13,494,371
(25,029)
91.4%
Public Works Dept/ Street Maintenance
7,434,770
6,499,221
5,696,985
5,961,468
6,333,537
(165,684)
85.2%
Subtotal
65,632,209
56,623,141
49,414,932
51,844,756
55,790,876
(832,265)
85.0%
Non Departmental
10,885,754
7,533,368
2,929,357
3,985,975
8,521,349
987,981
78.3%
Total Expenditures
76,517,963
64,156,509
52,344,289
55,830,731
64,312,225
155,716
84.0%
% of Year 91.7%
The graph below shows the Annual Budget, Actual Expenditures, and Allocated Budget amounts
for the General Fund departments.
City Council S
Mayor's Office r -
Administrative Services
Finance Department
Recreation Department / Park Maintenance
Community Development (DCD)
Municipal Court M
Police Department
Fire Department
Public Works Dept / Street Maintenance
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000
■ Annual Budget ■ Actual Expenditures ■ Allocated Budget Reported in Thousands
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INFORMATIONAL MEMO
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Per ordinance, the City adopts a biennial budget by fund. This is the required level of reporting
for external authoritative sources of oversight such as of the Washington State Auditor's office.
This level of reporting is also utilized for purposes of debt issuance and by other stake holders.
For managerial reporting and internal use, the city reports activity at the department level. This
provides more details and additional information used by decision makers within the city and those
charged with governess. In an effort to provide an enhanced level of reporting, additional
information is being provided for activity at the category level that reflect an increase of more than
5% AND $50,000.
The table below continues to display 2021/2022 change in spending by $ and % for informational
purposes. It is important to point out that 2020 & 2021 were pandemic years. 2022 was a year
that entities and organizations began to transition out of the pandemic. Historically, local
governmental entity revenues and expenditures are consistent, with variances hovering around
5%. The past three years have been an exception. Therefore, reporting on the last two months of
2022, will have less emphasis on the change in spending habits between 2021 and 2022, and
focus more on the % Expended YTD column.
While some individual line items are reported higher than the same period last year, every
catagery total is under the % Expended YTD column is less than the YTD budget allocation of
91% of the year.
The information below provides details of categories reporting percent spent greater than 91%
(% of the year completed) and $50,000 over the allocated budget.
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INFORMATIONAL MEMO
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General Fund
City of Tukwila
General Fund Expenditures
Year -to Date as of Nov 30, 2022
% of Year Completed
91.7%
Category: Overtime
Variance: 108.3% and $182,604
Explanation: Increase in Fire Overtime. Spending in 2022 Fire OT has increased by $305,183
over the same period in 2021. As stated earlier in this report, Fire received a $480,000 budget
increase in the form of a budget amendment. However, December spending is showing that Fire
will exceed their 2022 amended budget amount.
Category: Technology Supplies
Variance: 702.7% and $78,356
Explanation: Expenditures that are budgeted in Supplies are coded to Technology Supplies. The
line item, Supplies, reports the column labeled, % Expended YTD, as of November, is 48% at
91 % of the year. 2022 is the first year in the new ERP system and budgets, that were prepared
using the former ERP system's GL coding structure had to be reallocated to the new GL coding
structure. As it was difficult to determine what percentage of the supplies budget was actually
related to technology, the budget was left in the Supplies category, but transactions were coded
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BUDGET
ACTUAL
COMPARISON OF RESULTS
2022
Annual
2022
Allocated
2020
2021
2022
Allocated Budget
vs Actuals
OVER/(UNDER)
%
Expended
YTD
Change
$
2021/2022
%
2021/2022
511 Salaries
32,902,451
29,172,349
25,584,064
25,579,957
27,390,838
(5,511,613)
83.2%
1,810,881
7.1%
512 Extra Labor
584,220
208,122
131,789
184,610
384,188
(200,032)
65.8%
199,578
108.1%
513 Overtime
2,200,115
2,098,039
1,220,927
2,077,536
2,382,719
182,604
108.3%
305,183
14.7%
515 Holiday Pay
515,500
314,804
317,034
314,804
360,941
(154,559)
70.0%
46,137
14.7%
521 FICA
2,276,955
1,920,541
1,578,012
1,621,898
1,748,429
(528,526)
76.8%
126,531
7.8%
522 Pension-LEOFF
920,517
898,032
945,882
877,849
938,685
18,168
102.0%
60,836
6.9%
523 Pension-PERS/PSERS
1,494,905
1,284,357
1,499,745
1,401,608
1,342,989
(151,916)
89.8%
(58,618)
(4.2%)
524 Industrial lnsurance
876,892
823,977
793,541
822,969
688,994
(187,898)
78.6%
(133,975)
(16.3%)
525 Medical & Dental
7,551,216
6,798,189
5,650,288
6,215,622
6,704,327
(846,889)
88.8%
488,705
7.9%
526 Unemployment
0
0
63,114
45,019
37,205
37,205
-
(7,813)
(17.4%)
528 Uniform/Clothing
8,525
3,985
2,409
3,985
8,592
67
100.8%
4,606
115.6%
Total Salaries & Benefits
49,331,296
43,522,394
37,786,805
39,145,857
41,987,908
(7,343,388)
85.1%
2,842,051
7.3%
531 Supplies
950,636
589,873
465,708
543,398
456,422
(494,214)
48.0%
($86,976)
(16.0%)
532 Repairs & Maint Supplies
299,025
225,424
272,858
197,154
339,112
40,087
113.4%
$141,957
72.0%
534 Resale Supplies
10,000
0
235
0
859
(9,141)
8.6%
$859
Null
535 Small Tools
41,250
41,250
98,593
98,662
72,255
31,005
175.2%
($26,407)
(26.8%)
536 Technology Supplies
13,000
13,000
42,309
67,028
91,356
78,356
702.7%
24,328
36.3%
537 Fleet Supplies
3,000
3,000
12,009
3,125
6,531
3,531
217.7%
3,406
109.0%
Total Supplies
1,316,911
872,548
891,712
909,367
966,534
(350,377)
73.4%
57,167
6.3%
541 Professional Services
7,575,918
6,059,783
5,554,679
5,724,948
6,052,065
(1,523,853)
79.9%
327,117
5.7%
542 Communications
458,739
404,708
445,145
404,708
432,177
(26,562)
94.2%
27,469
6.8%
543 Professional Development
252,921
252,921
373,714
323,390
337,990
85,069
133.6%
14,600
4.5%
544 Advertising
40,250
10,764
14,161
11,432
21,567
(18,683)
53.6%
10,135
88.7%
545 Rentals
478,484
364,293
401,536
396,449
307,377
(171,107)
64.2%
(89,071)
(22.5%)
546 Technology Services
348,291
348,291
707,736
653,633
540,813
192,522
155.3%
(112,820)
(17.3%)
547 Utilities
2,034,285
2,034,285
1,714,505
2,138,812
2,196,368
162,083
108.0%
57,556
2.7%
548 Repairs & Maint Services
2,185,367
1,944,012
1,154,277
1,858,187
2,096,752
(88,615)
95.9%
238,566
12.8%
549 Miscellaneous
879,747
199,169
365,165
162,040
549,887
(329,860)
62.5%
387,846
239.4%
Total Services
14,254,002
11,618,226
10,730,920
11,673,599
12,534,996
(1,719,006)
87.9%
861,398
7.4%
561 Capital Outlay -Land
0
0
0
0
893
893
-
0
-
564 Machinery & Equipment
730,000
157,698
5,495
115,933
300,544
(429,456)
41.2%
184,612
159.2%
Total Capital Outlay
730,000
157,698
5,495
115,933
301,437
(428,563)
41.3%
185,505
160.0%
750 Transfers Out
10,885,754
7,985,643
2,929,357
3,985,975
8,521,349
(2,364,405)
78.3%
4,535,373
113.8%
Total Non Operating Expense
10,885,754
7,985,643
2,929,357
3,985,975
8,521,349
(2,364,405)
78.3%
4,535,373
113.8%
TOTAL EXPENDITURES
76,517,963
64,156,509
52,344,289
55,830,731
64,312,225
(12,205,739)
84.0%
8,481,494
15.2%
% of Year Completed
91.7%
Category: Overtime
Variance: 108.3% and $182,604
Explanation: Increase in Fire Overtime. Spending in 2022 Fire OT has increased by $305,183
over the same period in 2021. As stated earlier in this report, Fire received a $480,000 budget
increase in the form of a budget amendment. However, December spending is showing that Fire
will exceed their 2022 amended budget amount.
Category: Technology Supplies
Variance: 702.7% and $78,356
Explanation: Expenditures that are budgeted in Supplies are coded to Technology Supplies. The
line item, Supplies, reports the column labeled, % Expended YTD, as of November, is 48% at
91 % of the year. 2022 is the first year in the new ERP system and budgets, that were prepared
using the former ERP system's GL coding structure had to be reallocated to the new GL coding
structure. As it was difficult to determine what percentage of the supplies budget was actually
related to technology, the budget was left in the Supplies category, but transactions were coded
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INFORMATIONAL MEMO
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to the correct category. Technology Supplies reports a higher number in % Expended YTD simply
because of how the budget was reallocated in the new ERP system.
Category: Professional Development
Variance: 113.6% and $85,069
Explanation: Similar to the explanation above, changes in the GL coding structure resulted in
Miscellaneous retaining a portion of budget allocation that should be reported in Professional
Development. While Professional Development exceeded the % Expended YTD by 133%, the
2022 spending has increased over 2021 by only $14,600, demonstrating a similar and consistent
spending pattern between 2021 and 2022.
Category: Technology Services
Variance: 155.3% and $192,522
Explanation: The Total Services Category reports total combined expenditures of 87.9% at
91.7% of the year. As explained above, a change in the GL coding structure has allocated budgets
reflected between accounts. For example, Technology Services shows % Expended YTD of
155.3%. However, spending in 2022 is $112,820 less than 2021. As a result of a change in coding,
a portion of the Technology Services budget is reflected in Professional Services category. While
category budgets are adjusting to an enhanced coding structure, transaction activity is being
coded to accurately reflect spending in the proper accounts.
Category: Utilities
Variance: 108% and $162,083
Explanation: This is due to rate increases above what was budgeted in 2020 when the 2021-
2022 budget was drafted. With the addition of the Justice Center and new fire stations, additional
utilities were added, resulting in increased utility costs. As the table above displays, the rise
amounts to a 2.7% increase in 2022 over 2021.
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