HomeMy WebLinkAboutFIN 2023-04-24 Item 1B - Budget - February 2023 Monthly General Fund Update
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
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TO: Finance & Governance Committee
FROM: Tony Cullerton, Deputy Finance Director
CC: Mayor Ekberg
DATE: April 24, 2023
SUBJECT: February 2023 General Fund Departmental Budget-to-Actuals Report
Summary
The purpose of the February 2023 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
February 2023 report is based on financial data available as of March 31, 2023, for the period
ending February 28, 2023.
Expenditures
Allocated Budget
As of the end of February, all departments, with the exception of Fire, reported activity that is
within their allocated budget. The increase in Fire is due to a $3,5 million invoice to the Puget
Sound Regional Fire Authority (PSRFA). This is a quarterly payment that was anticipated and
budgeted to be paid in March. However, the invoice was received in mid-February and paid in
February.
General Fund departmental expenditures totaled $12.4 million through February, which is $1,96
million above the allocated budget of $10.5 million. This increase has been identified above with
the early payment to the PSRFA. Department 20, which is transfers to other funds, reported no
allocated budget or expenditure activity for the months of January and February. This is
consistent with prior year spending patterns.
Budget to Actual (% Expended)
When comparing YTD spending to the percent of year completed (16.7%), two departments
finished the month higher than 16.7%. Finance reported % Expended of 22.2%. This is attributed
to an $834,921 annual payment for the WCIA Liability Insurance premium. Fire ended the month
at 26.9%, due to the early quarterly payment to the PSRFA contract.
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INFORMATIONAL MEMO
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Departmental Variances
Year to Date Department Expenditures Compared to Allocated Budget Through February 2023:
2023 Compared to 2022
Most departments reported increases over the same period compared to the prior year. This is
expected due to increases in salaries due to contractual obligations and a general increase in the
cost of ongoing expenditures. However, several departments reported increases greater than 5%
and $50,000 over the same period last year.
In addition to the standard salary increase, Mayor’s Office reported an increase of $122,285,
(44.5%) over the same period last year. The cause of the increase is primarily a timing difference.
Specifically, a timing difference in the payment of invoices in 2022 compared to 2023. This is
evident with Attorney Services, Public Defender costs, and Prosecution Services.
Allocated Budget %
2023 2023 2021 2022 2023 vs Actual Expended $ Change % Change
DEPARTMENT Annual Allocated OVER/(UNDER)
City Council 384,889 56,982 52,748 54,853 55,773 (1,208) 14.5% 920 1.7%
Mayor's Office 2,502,666 454,930 237,228 275,003 397,288 (57,642) 15.9% 122,285 44.5%
Administrative Services 5,676,491 971,123 612,116 687,540 773,364 (197,759) 13.6% 85,824 12.5%
Finance Department 3,868,642 1,060,545 720,186 831,005 856,993 (203,552) 22.2% 25,987 3.1%
Rec Dept / Parks Maint 5,109,490 771,459 734,547 584,521 684,807 (86,651) 13.4% 100,287 17.2%
Community Dev 4,672,314 780,618 546,965 710,773 666,260 (114,358) 14.3% (44,513) -6.3%
Municipal Court 1,741,340 290,223 191,955 244,731 264,228 (25,995) 15.2% 19,497 8.0%
Police Department 22,746,448 4,144,623 2,958,632 3,058,958 3,531,574 (613,049) 15.5% 472,617 15.5%
Fire Department 14,790,120 295,670 2,313,101 2,346,086 3,972,978 3,677,308 26.9% 1,626,892 69.3%
PW Dept / Street Maint 7,574,988 1,628,247 1,863,177 1,061,423 1,209,983 (418,264) 16.0% 148,559 14.0%
Subtotal 69,067,388 10,454,419 10,230,655 9,854,893 12,413,248 1,958,829 18.0% 2,558,355 26.0%
Non Departmental 6,688,881 0 0 0 0 0 0.0% 0 0.0%
Total Expenditures 75,756,269 10,454,419 10,230,655 9,854,893 12,413,248 1,958,829 16.4% 2,558,355 26.0%
% of Year 16.7%
2020/2021 2022/2023
BUDGET ACTUAL
Desc 2022 2023 $ %
Salaries 109,904 119,382 9,478 8.6%
Attorney /Svs 33,000 66,000 33,000 100.0%
Pub Def 1,500 59,000 57,500 3833.3%
Prosecution Svs 12,500 25,000 12,500 100.0%
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Administrative Services reported an increase of $85,824 (12.5%). In addition to Salaries, the
increase over the prior year is spread among the Admin Svs. Divisions in the categories of
Memberships and Online Services–Subscriptions. Memberships show a timing difference in
paying invoices between years. The increase in Online Services-Subscriptions is shared among
the different divisions within the department.
Recreation / Parks Maintenance reported an increase of $100,287 (17.2%) over the same period
last year. The largest portions of the increase are due to increased salaries related to the
restoration of services and an increase in Security/Safety Svs. expenditures over the prior year.
Police reported an increase over the prior period of $472,617 (15.5%). While this amount is
significant, the causes of the increase are due to the usual reasons that we have previously seen
in PD, including Salaries, OT, Benefits, Insurance Liability, Pension expenditures, and payroll taxes
(FICA). However, there are a few new players in the game. Contracted Services increased due to
costs related to Admin Team retreat ($3,200) and the need for DNA testing as part of a homicide
investigation ($7,500). Dispatch experienced a rate increase for 2023. This was an approved
budgeted item. Jail Services also had a rate increase for 2023. Additionally, the City received a
credit pertaining to Jail Services in January 2022 of $87,567, resulting in Jan 2022 reporting a
lower than normal expenditure amount.
Desc 2022 2023 $ %
Salaries 350,722 381,340 30,618 8.7%
Memberships 37,201 60,553 23,352 62.8%
Online Services-Subscriptions 42,057 101,836 59,779 142.1%
Div Desc 2022 2023 $ %
Rec Salaries 210,500 228,275 17,774 8.4%
Rec Extra Labor 421 11,556 11,135 2646.5%
Rec Insurance-Liability 510 15,722 15,212 2982.6%
Parks Maint Salaries 126,697 138,749 12,052 9.5%
Parks Maint Security/Safety Svcs 1,400 17,003 15,603 1114.5%
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Fire has previously been addressed. The increase is the $3,694,430 quarterly invoice paid to the
PSRFA.
Public Works / Street Maintenance reported an increase of $148,559 (14%). 60% of the increase
is attributed to a $92,059 increase in Insurance–Property premiums. The other significant
increase is the collective rise in utility costs over the same period last year, attributed to the new
Facilities Maintenance building that opened in June of 2022.
This concludes the recap of notable variances within departments between 2022 and 2023. While
overall General Fund departmental costs increased by 26% over the same period last year, the
increase in expenditures were identified ahead of time and were budgeted for. As a reminder, all
General Fund departments ended the month of February within their Allocated Budget, with the
exception of Fire. The overage in Fire is solely due to an early payment to the PSRFA that was
scheduled to be paid in March.
The graph below shows the Annual Budget, Actual Expenditures, and Allocated Budget amounts
for the General Fund departments.
Description 2022 2023 $ %
Salaries 109,904 119,382 9,478 8.6%
OT 105,113 171,031 65,918 62.7%
FICA 119,820 143,734 23,914 20.0%
LEOFF 65,943 81,850 15,907 24.1%
Medical, Dental, Life, Optical 19,591 34,805 15,214 77.7%
Contracted Services 1,200 10,749 9,549 795.7%
Dispatch 196,468 230,808 34,339 17.5%
Jail Svs 72,287 167,290 95,003 131.4%
Insurance-Liability 278,737 324,931 46,194 16.6%
Software Maintenance Contract 71,386 89,480 18,094 25.3%
Division Desc
2022 2023 $ %
Pub Wks OT 109,904 119,382 9,478 8.6%
Pub Wks Insurance-Property 346,858 438,917 92,059 26.5%
Pub Wks Electric Utility 79 55,857 55,778 70802.3%
Pub Wks Natural Gas Utility 0 12,167 12,167 0.0%
Streets Electric Utility 7,199 24,523 17,324 240.6%
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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 the purposes of debt issuance and by other stakeholders.
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 transaction level that reflect an increase of more
than 5% over the prior year AND $50,000, that are part of a Category that is reporting total
activity above the % of Year calculation.
The end of February represents completion of 16.7% of the year. Total Services is the only
Category that reported total activity higher than 16.7%.
Within Total Services the event that tipped Professional Services was the Fire contract payment.
Professional Development – The two largest contribution factors to the increase in Professional
Development is Memberships, with a $25,193 (26.7%) jump over 2022, and Registrations, with a
$9,101 (845%) increase over the prior year. Utilities costs are higher due to the new Fleet
Facilities building. Staff moved into the new building in June of 2022. January – June of 2023, is
expected to show an increase in costs when compared to the same period in 2022.
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General Fund
City of Tukwila
General Fund Expenditures
Allocated Budget %
2023 2023 2021 2022 2023 vs Allocated Expended
Annual Allocated OVER/(UNDER) $
2022/2023
%
2022/2023
Salaries 25,787,016 4,297,835 4,627,283 4,878,147 3,842,367 (455,469) 14.9% (1,035,780) (21.2%)
Extra Labor 769,106 82,358 859 41,959 54,499 (27,859) 7.1% 12,540 29.9%
Overtime 755,184 102,371 285,145 432,520 291,849 189,478 38.6% (140,671) (32.5%)
Holiday Pay 250,000 3,635 2,560 2,885 1,935 (1,700) 0.8% (950) (32.9%)
FICA 2,110,086 351,681 285,570 310,328 315,667 (36,014) 15.0% 5,339 1.7%
Pension-LEOFF 635,410 93,568 139,099 146,850 85,931 (7,637) 13.5% (60,919) (41.5%)
Pension-PERS/PSERS 1,744,919 290,820 269,506 239,320 253,845 (36,975) 14.5% 14,525 6.1%
Industrial Insurance 586,183 97,697 171,478 99,101 63,390 (34,307) 10.8% (35,711) (36.0%)
Medical & Dental 5,748,432 958,072 1,035,803 1,224,582 894,256 (63,816) 15.6% (330,326) (27.0%)
Unemployment 0 0 0 168 0 0 - (168) -
Uniform/Clothing 33,290 11,382 667 0 242 (11,140) 0.7% 242 -
38,419,627 6,289,420 6,817,968 7,375,860 5,803,982 (485,438) 15.1% (1,571,879) (21.3%)
Supplies 678,334 109,862 74,869 5,172 42,017 (67,845) 6.2%$36,845 712.4%
Repairs & Maint Supplies 450,010 74,135 20,710 13,448 34,599 (39,536) 7.7% $21,151 157.3%
Resale Supplies 2,500 400 0 0 0 (400) - $0 Null
Small Tools 213,203 35,234 4,049 3,306 5,936 (29,298) 2.8% $2,630 79.6%
Technology Supplies 110,798 18,466 5,978 3,659 2,741 (15,725) 2.5% ($918) (25.1%)
Fleet Supplies 7,000 1,167 264 0 740 (427) 10.6% $740 -
1,461,845 239,263 105,870 25,584 86,033 (153,230) 5.9% $60,448 236.3%
Professional Services 21,798,537 2,537,937 1,504,819 1,579,849 5,890,653 3,352,717 27.0% $4,310,805 272.9%
Communications 440,528 71,333 64,901 37,111 29,816 (41,516) 6.8% ($7,294) (19.7%)
Professional Dev 570,359 127,680 135,082 99,662 144,328 16,648 25.3% $44,666 44.8%
Advertising 66,300 15,533 589 0 50 (15,483) 0.1% $50 -
Rentals 1,298,059 51,293 66,900 27,462 10,852 (40,440) 0.8% ($16,610) (60.5%)
Technology Services 1,031,264 399,614 115,634 240,306 257,068 (142,545) 24.9% $16,763 7.0%
Utilities 2,244,354 329,571 1,160,913 31,341 116,467 (213,104) 5.2% $85,126 271.6%
Repairs & Maint Svs. 1,286,418 214,570 309,275 323,102 14,593 (199,977) 1.1% ($308,509) (95.5%)
Miscellaneous 1,012,899 163,206 (51,296) 65,117 19,981 (143,225) 2.0% ($45,136) (69.3%)
29,748,719 3,910,736 3,306,816 2,403,950 6,483,811 2,573,075 21.8% 4,079,861 169.7%
Capital Outlay-Land 0 0 0 0 0 0 - 0 -
Other Improvements 0 0 0 0 0 0 - 0 -
Machinery & Equipment 420,000 15,000 0 49,499 0 (15,000) - (49,499) (100.0%)
Construction Projects 0 0 0 0 39,423
420,000 15,000 0 49,499 39,423 (15,000) 9.4% (10,076) (20.4%)
Transfers Out 5,706,078 0 0 0 0 (5,706,078) - 0 -
5,706,078 0 0 0 0 (5,706,078) - 0 -
75,756,269 10,454,419 10,230,655 9,854,893 12,413,248 (3,786,672) 16.4% 2,558,355 26.0%
Year-to Date as of Feb 28, 2023
BUDGET ACTUAL COMPARISON OF RESULTS
Change
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