HomeMy WebLinkAboutFIN 2023-05-08 Item 1C - Budget - March 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: May 8, 2023
SUBJECT: March 2023 General Fund Departmental Budget-to-Actuals Report
Summary
The purpose of the March 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 March
2023 report is based on financial data available as of April 28, 2023, for the period ending March
31, 2023.
Expenditures
Allocated Budget
As of the end of March, all departments, with the exception of Fire, reported activity that is within
their allocated budget. The overage in Fire is $119,294. $88,267 is attributed to an increase in
the WCIA insurance premium over last year. Additionally, invoices for the Fire Department that
total approximately $7,000 for supplies were purchased at the end of 2022 and have been
received and paid in 2023. The WCIA insurance premium increase and last-minute year-end 2022
supply purchases are the primary significant drivers of the overage in Fire’s Allocated Budget.
General Fund departmental expenditures totaled $17.2 million through March, which is $1.99
million below the allocated budget of $19.1 million. Department 20, which transfers to other
funds, reported $1.5 million in expenditures. This number reflects transactions for debt payments
and interfund activity.
Budget to Actual (% Expended)
When comparing YTD spending to the percent of year completed (25%), three departments
finished the month higher than 25%. Finance reported % expended of 26.8%. The expenditures
that tipped finance over the 25% mark are attributed to Professional Services. For the same
period last year, there were no audit costs incurred during January – March of 2022. The $14,551
reported in 2023 are for the 2022 Accountability audit that continued into 2023. Finance did
request that the State Auditor’s Office (SAO) complete the 2022 audit fieldwork in FY 2022, for
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budgetary purposes. However, at SAO’s request the City agreed to accommodate the auditor’s
schedule of completing the Financial/Federal audit and return at a later date to complete the
Accountability fieldwork. The other major increase pertained to an increase in the WCIA Liability
Insurance premium.
While Finance is reporting YTD expenditures of 26.8% at 25% of the year, these expenditures
were previously identified and budgeted, as is supported by Finance currently reporting total
expenditures under Allocated Budget.
Fire ended the quarter at 27%. The increase is primarily with Contracted Svs. The increase is the
Puget Sound Regional Fire Authority agreement. In prior years, these costs were reported in the
Salaries line-item. Additionally, as stated above, we have received late year-end 2022 invoices
paid in 2023.
PW Dept/Street Maint. reported quarterly expenditures 35% at 25% of the year. The YTD
overage is attributed to the WCIA Insurance invoice that was paid in January 2023. 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.
2022 2023 $ Change % Change
Professional Svs
Audit 0 14,551 14,551 N/A
Insurance 384,387 450,534 66,147 17.2%
Total 384,387 465,085 80,698 21.0%
Category 2022 2023 $ %
Insurance-Property Preimum 346,858 438,917 92,059 26.5%
Electric 52,031 86,992 34,961 67.2%
Natural Gas 11,290 16,656 5,366 47.5%
Water/Sewer 11,298 16,155 4,857 43.0%
Surface Water 39,861 50,280 10,419 26.1%
Total 461,338 609,000 147,662 32.0%
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Departmental Variances
Year to Date Department Expenditures Through March 2023:
2023 Compared to 2022
Most of the General Fund departments reported increases over the same period compared to
the prior year. This is expected as a result of increases in salaries due to contractual obligations
and the general rise in the cost of ongoing expenditures. However, several departments reported
increases greater than 5% and $50,000 over the same period last year. This section of the report
provides additional information on the increase over the prior year.
Administrative Services reported an increase of $131,062 (13.3%) over the same period last year.
The cause of the increase is within Salaries and Technology Services. Salaries increased by
$66,487 (12.5%). The increase is a result of a reclassification for an employee and a payout
pertaining to the retirement of a long-term employee. The rise in Technology Services is due to
an increase in Online Services – Subscriptions. Examples of the largest Online Services-
Subscriptions increases are itemized below.
Allocated Budget %
2023 2023 2021 2022 2023 vs Actual Expended $ Change % Change
DEPARTMENT Annual Allocated OVER/(UNDER)
City Council 384,889 89,222 78,406 83,193 96,072 6,850 25.0% 12,879 15.5%
Mayor's Office 2,502,666 659,286 437,650 482,450 498,594 (160,692) 19.9% 16,144 3.3%
Administrative Services 5,676,491 1,498,029 974,812 988,668 1,119,730 (378,299) 19.7% 131,062 13.3%
Finance Department 3,868,642 1,299,904 864,853 1,013,642 1,036,494 (263,410) 26.8% 22,852 2.3%
Rec Dept / Parks Maint 5,109,490 1,308,938 1,041,420 1,090,832 1,195,222 (113,716) 23.4% 104,390 9.6%
Community Dev 4,672,314 1,166,179 894,467 1,075,552 1,021,855 (144,324) 21.9% (53,697) -5.0%
Municipal Court 1,741,340 435,335 284,893 371,603 400,959 (34,376) 23.0% 29,357 7.9%
Police Department 22,746,448 5,872,927 4,453,390 4,386,444 5,192,823 (680,104) 22.8% 806,379 18.4%
Fire Department 14,790,120 3,870,070 3,416,507 3,590,156 3,989,364 119,294 27.0% 399,208 11.1%
PW Dept / Street Maint 7,574,988 2,992,345 2,270,184 2,504,742 2,647,568 (344,777) 35.0% 142,825 5.7%
Subtotal 69,067,388 19,192,235 14,716,582 15,587,281 17,198,681 (1,993,554) 24.9% 1,611,400 10.3%
Non Departmental 6,688,881 245,701 1,365,690 1,342,690 1,508,158 1,262,457 22.5% 165,468 0.0%
Total Expenditures 75,756,269 19,437,936 16,082,272 16,929,971 18,706,839 (731,097) 24.7% 1,776,868 10.5%
% of Year 25.0%
2020/20212022/2023
BUDGET ACTUAL
Desc 2022 2023 $
Salaries 530,252 596,738 66,487
Technology Svs 60,901 151,595 90,694
Total 57,350 143,707 157,181
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Recreation / Parks Maintenance reported an increase of $104,390 (9.6%) 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 $806,379 (18.4%). While this amount is
significant, the cause of the increase is consistent with what has been reported in previous
months. There has been a rise in Salaries, OT, and Professional Services.
Fire has previously been addressed. The increase over the prior year is $399,208. This is the
payment to the PSRFA. It is important to note that in the prior year these expenditures were
reflected in Fire Salaries.
Online Services-Subscriptions $
Email Filter 9,675
ESRI (GIS) Services 30,319
Online Resources Svs 20,258
Network Security Monitoring 39,993
Digital Signature Platform 19,577
Total 119,822
Div Desc 2022 2023 $ Diff Dscription
P&R Extra Labor 37,495 63,202 25,707 Increase in the restoration of servcies
P&R Supplies (7,434) 12,275 19,709
Recoding from P&R to Arts Commission of
wellness gift cards
P&R Professional Svs - Contracted Svs 2,019 21,314 19,295 TCC Youth Basketball Clinics ($16k)
Parks Maint Salaries 193,260 208,236 14,976 Salaries
Pks Maint Professional Svs 18,373 28,057 9,684 Security
Parks Maint Repair Maintenacne Supplies 4,574 18,399 13,825 Overall increase in supplies
Total 250,309 353,506 103,196
Description 2022 2023 $ %
Salaries 2,153,191 2,540,381 387,190 18.0%
OT 255,782 361,329 105,547 41.3%
Professional Svs
Contracted Svs 3,708 10,748 7,040 189.9%
Dispatch 196,468 230,807 34,339 17.5%
Jail Svs 159,854 336,338 176,484 110.4%
Insurance 278,737 324,930 46,193 16.6%
Total 3,047,740 3,804,533 756,793 24.8%
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Public Works / Street Maintenance reported an increase of $142,825 (5.7%). 64% 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 10.3% over the same period last year, the
increase in expenditure was identified ahead of time and were budgeted for. As a reminder, all
General Fund departments ended the month of March within their Allocated Budget, with the
exception of Fire.
The graph below shows the Annual Budget, Actual Expenditures, and Allocated Budget amounts
for the General Fund departments.
Category 2022 2023 $ %
Insurance-Property Preimum 346,858 438,917 92,059 26.5%
Electric 52,031 86,992 34,961 67.2%
Natural Gas 11,290 16,656 5,366 47.5%
Water/Sewer 11,298 16,155 4,857 43.0%
Surface Water 39,861 50,280 10,419 26.1%
Total 461,338 609,000 147,662 32.0%
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
City Council
Mayor's Office
Administrative Services
Finance Department
Rec Department / Park Maint
Community Dev (DCD)
Municipal Court
Police Department
Fire Department
Public Works Dept / Street Maint
ThousandsActual Expenditures Allocated Budget
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General Fund by Category
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 March represents completion of 25% of the year. Total Services is the only Category
that reported total activity higher than 25%. Within Total Services the event that tipped
Professional Services was the Fire contract payment. As previously stated, in the prior year, these
costs were reported in the Salaries line. Professional Development includes Memberships and
also reflects the return to business travel and training. The increase in Technology Services has
been previously addressed above in the Administrative Services details.
The majority of this report is dedicated to identifying, understanding, and explaining spikes in
expenditures compared to the same period last year. However, at the end of the first quarter it
was noted that there is a significant dip in the Repairs & Maintenance Svs category. The decline
is close to a quarter of a million dollars. Specifically, $238,553, representing a decrease of 47.9%
over the same period last year. This reduction is attributable to a decrease in Fleet Operations &
Maintenance Costs. This is a direct result of the policy change that led to transitioning a portion
of the City’s fleet to the new Fleet Leasing model, thus recognizing savings pertaining to the
decrease in fleet maintenance costs in the first quarter of 2023.
Professional Dev 2022 2023 $ Diff
Membership 102,913 130,642 27,729
Registration 11,528 24,121 12,593
Hotel/Lodging 1,737 6,152 4,415
Tuition/Coaching/Trainer 2,180 8,670 6,490
Total 118,358 169,585 51,227
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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 6,446,753 6,957,114 7,354,440 5,768,477 (678,276) 22.4% (1,585,963) (21.6%)
Extra Labor 769,106 127,128 4,119 66,623 85,173 (41,955) 11.1% 18,550 27.8%
Overtime 755,184 165,652 473,154 623,955 395,104 229,452 52.3% (228,851) (36.7%)
Holiday Pay 250,000 7,614 4,766 7,379 1,935 (5,679) 0.8% (5,444) (73.8%)
FICA 2,110,086 527,522 432,603 468,297 471,530 (55,992) 22.3% 3,233 0.7%
Pension-LEOFF 635,410 140,353 212,918 222,705 128,764 (11,589) 20.3% (93,941) (42.2%)
Pension-PERS/PSERS 1,744,919 436,230 408,726 361,482 381,460 (54,770) 21.9% 19,977 5.5%
Industrial Insurance 586,183 146,546 250,400 170,432 98,829 (47,717) 16.9% (71,604) (42.0%)
Medical & Dental 5,748,432 1,437,108 1,558,562 1,842,989 1,342,590 (94,518) 23.4% (500,399) (27.2%)
Unemployment 0 0 0 168 0 0 - (168) (100.0%)
Uniform/Clothing 33,290 13,572 910 110 470 (13,102) 1.4% 360 328.2%
Total Salaries & Benefits 38,419,627 9,448,478 10,303,272 11,118,580 8,674,331 (774,147) 22.6% (2,444,249) (22.0%)
Supplies 678,334 164,005 106,389 34,575 64,113 (99,892) 9.5%$29,538 85.4%
Repairs & Maint Supplies 450,010 111,105 32,491 41,810 48,408 (62,697) 10.8% $6,598 15.8%
Resale Supplies 2,500 600 0 0 0 (600) - $0 -
Small Tools 213,203 53,251 7,561 6,035 4,483 (48,768) 2.1% ($1,553) (25.7%)
Technology Supplies 110,798 27,699 10,950 8,853 2,764 (24,935) 2.5% ($6,089) (68.8%)
Fleet Supplies 7,000 1,750 544 939 1,004 (746) 14.3% $65 6.9%
Total Supplies 1,461,845 358,410 157,934 92,213 120,772 (237,638) 8.3% $28,559 31.0%
Professional Services 21,798,537 6,490,027 2,037,196 1,933,542 6,135,854 (354,173) 28.1% $4,202,313 217.3%
Communications 440,528 106,999 65,740 68,708 71,665 (35,334) 16.3% $2,957 4.3%
Professional Dev 570,359 167,931 187,557 119,222 174,811 6,880 30.6% $55,589 46.6%
Advertising 66,300 20,200 998 186 1,750 (18,450) 2.6% $1,565 843.4%
Rentals 1,298,059 322,390 97,261 36,349 261,690 (60,700) 20.2% $225,341 619.9%
Technology Services 1,031,264 506,698 132,100 271,934 337,237 (169,461) 32.7% $65,303 24.0%
Utilities 2,244,354 1,421,719 1,281,418 1,291,759 1,334,595 (87,124) 59.5% $42,836 3.3%
Repairs & Maint Svs. 1,286,418 320,974 478,329 498,533 259,980 (60,994) 20.2% ($238,553) (47.9%)
Miscellaneous 1,012,899 244,109 (25,223) 106,757 32,275 (211,834) 3.2% ($74,482) (69.8%)
Total Services 29,748,719 9,601,047 4,255,376 4,326,989 8,609,856 (991,191) 28.9% 4,282,867 99.0%
Capital Outlay-Land 0 0 0 0 0 0 - 0 -
Other Improvements 0 0 0 0 0 0 - 0 -
Machinery & Equipment 420,000 30,000 0 49,499 0 (30,000) - (49,499) (100.0%)
Construction Projects 0 0 0 0 39,423
Total Capital Outlay 420,000 30,000 0 49,499 39,423 (30,000) 9.4%(10,076)(20.4%)
Transfers Out 5,706,078 0 1,365,690 1,342,690 1,262,457 (4,443,621) 22.1%(80,233)(6.0%)
Total Non Operating Expense 5,706,078 0 1,365,690 1,342,690 1,262,457 (4,443,621) 22.1%(80,233)(6.0%)
Total Expenditures 75,756,269 19,437,935 16,082,272 16,929,971 18,706,839 (6,476,597) 24.7% 1,776,868 10.5%
Change
Year-to Date as of March 31, 2023
BUDGET ACTUAL COMPARISON OF RESULTS
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