HomeMy WebLinkAboutFIN 2023-07-24 Item 1B - Budget - Monthly General Fund Update: May 2023City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
FROM: Tony Cullerton, Deputy Finance Director
CC: Mayor Ekberg
DATE: July 24, 2023
SUBJECT: May 2023 General Fund Departmental Budget -to -Actuals Report
Summary
The purpose of the May 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 May
2023 report is based on financial data available as of July 7, 2023, for the period ending May 31,
2023.
Expenditures
General Fund departmental expenditures totaled $28.4 million through May, which is $856k
over the allocated budget of $27.6 Million. Department 20, which transfers to other funds,
reported $1.5 million in expenditures. This number reflects transactions for debt payments and
interfund activity. In total the General Fund activity YTD as of the end of May was $29.9 million
which exceeded the allocated budget by $731k. The overage is a timing issue pertaining to Fire.
Second quarter Contracted services for Fire was paid in April but allocated to be paid in the
month of June.
Allocated Budget
As of the end of May, all departments, with the exception of City Council and Fire reported
activity that is within their allocated budget. The overage in City Council is $153. This amount is
under the threshold of further review. Fire is over their allocated budget by $3,469,803. The
overage is a result of paying the Q2 contracted services in April that was scheduled to be paid in
June.
Budget to Actual (% Expended)
When comparing YTD spending to the percent of year completed (41.7%), two departments
finished the month higher than 41.7%. Fire has been explained above. PW Dept./Street
Maintenance ended the month at 47.34%. The department(s) are well under their allocated
budget. The reporting of 47.3% at 41.7% of the year suggests upfront costs that have been
1
23
INFORMATIONAL MEMO
Page 2
anticipated and occurred early in the year. Examples include insurance payments, increases in
utilities, and a land expenditure pertaining to Kennedy Cottage Structure Demo.
2023 Compared to 2022
A few departments reported increased greater than 5% when compared to the previous year.
City Council ended the month with a YTD increase over the same period last year of 8.5%. The
increase is due to the Council Retreat Facilitation. This event has been noted in prior monthly
reports. The amount is $11,533 and is not significant but did rise to the level of greater than 5%.
Mayor's Office increased $60,289 (7.6%) over the prior year. The main drivers of the increases
are Professional Development, Professional Services, and Salaries. The majority of the increases
have been previously reported. Under Professional Services, Governmental Affairs is new to our
reporting. These items pertain to state & federal lobbying services.
2022 2023 $ Change % Change
Professional Dev 62,357 81,415 19,058 30.6%
Tuition 0 6,000 6,000 N/A
Registration 80 2,270 2,190 2737.5%
Memberships 62,143 65,132 2,989 4.8%
Hotel Lodging 0 5,745 5,745 N/A
Professional Svs 336,467 360,100 23,633 7.0%
Government Affairs 4,000 20,250 16,250 406.3%
Special Matters (legal) 2,626 15,702 13,076 497.9%
Salaries
272,557 296,818 24,261 8.9%
Rec Dept/Park Maintenance reported an increase in expenditures of $156,395 (8.7%). The
increase represents activities resulting in the return to business coming out of the pandemic.
Recreation and Park Maintenance was significantly impacted by the pandemic with mandates
to close down TCC and halt group activities and programs. The accounts listed below represent
the most significant increases in the department and are consistent with the return to normal
operations. Additionally, Recreation and Park Maintenance is below their allocated budget.
Description 2022 2023 $ Change )/o Change
Salaries 299,931 345,985 46,054 15.4%
Med/Dental 83,735 94,851 11,116 13.3%
Supplies 22,802 45,818 23,016 100.9%
Utilities 170,090 181,422 11,332 6.7%
Total 576,558 668,076 91,518 15.9%
Police are operating below allocated budget as reported year-to-date. However, departmental
expenditures for 2023 have increased over 2022 by $1.4 million (18.7%). The increases were
2
24
INFORMATIONAL MEMO
Page 3
anticipated and budgeted. Salaries have increased due to contractual agreements. Overtime is
expected to continue due to unfilled positions. The increase in Professional Services has
previously been explained as increases in Dispatch, Contracted Services, and Jail Services.
Description 2022 2023 $ Change '/o Change
Salaries 3,777,952 4,209,081 431,129 11.4%
OT 435,666 617,378 181,712 41.7%
Professional Svs 929,024 1,523,711 594,687 64.0%
Total 5,142,641 6,350,169 1,207,528 23.5%
Fire increased 1,143,577 (18.3%) over the same period last year. The increase is due to
Contracted Services with the Puget Sound Regional Fire Authority agreement. In prior years,
these costs were reported in the Salaries line -item.
This concludes the recap of notable variances within departments between 2022 and 2023.
While overall General Fund departmental costs increased by 11.8% over the same period last
year, the majority of increases in expenditures were identified ahead of time and were
budgeted for.
3
25
INFORMATIONAL MEMO
Page 4
Departmental Variances
Year to Date Department Expenditures Through May 2023:
The graph below shows the Actual Expenditures, and Allocated Budget amounts for the General
Fund departments.
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
0 2,000 4,000 6,000 8,000 10,000
Thousands
■ Actual Expenditures ■ Allocated Budget
26
4
BUDGET
ACTUAL
2023
2023
2021
2022
2023
Allocated Budget
vs Actual
%
Expended
$ Change % Change
DEPARTMENT
Annual
Allocated
OVER/(UNDER)
2022/2023
City Council
384,889
155,537
129,336
143,514
155,690
153
40.5%
12,176
8.5%
Mayor's Office
2,502,666
1,058,702
788,184
789,991
850,280
(208,422)
34.0%
60,289
7.6%
Administrative Services
5,676,491
2,386,522
1,903,018
1,843,662
1,915,352
(471,170)
33.7%
71,690
3.9%
Finance Department
3,868,642
1,802,959
1,279,246
1,389,101
1,448,357
(354,602)
37.4%
59,257
4.3%
Rec Dept/ Parks Maint
5,109,490
2,092,856
1,622,375
1,796,023
1,952,418
(140,438)
38.2%
156,395
8.7%
Community Dev
4,672,314
1,946,796
1,589,921
1,754,964
1,801,234
(145,562)
38.6%
46,270
2.6%
Municipal Court
1,741,340
725,558
503,953
636,495
658,813
(66,745)
37.8%
22,317
3.5%
Police Department
22,746,448
9,477,879
7,274,659
7,310,190
8,676,035
(801,844)
38.1%
1,365,845
18.7%
Fire Department
14,790,120
3,911,020
5,698,287
6,237,246
7,380,823
3,469,803
49.9%
1,143,577
18.3%
PW Dept/Street Maint
7,574,988
4,010,710
3,062,702
3,528,067
3,585,728
(424,982)
47.3%
57,662
1.6%
Subtotal
69,067,388
27,568,539
23,851,682
25,429,254
28,424,732
856,193
41.2%
2,995,478
11.8%
Non Departmental
6,688,881
1,633,158
1,365,690
1,342,690
1,508,296
(124,862)
22.5%
165,606
12.3%
Total Expenditures
75,756,269
29,201,697
25,217,371
26,771,944
29,933,027
731,330
39.5%
3,161,084
11.8%
%of Year 41.7%
The graph below shows the Actual Expenditures, and Allocated Budget amounts for the General
Fund departments.
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
0 2,000 4,000 6,000 8,000 10,000
Thousands
■ Actual Expenditures ■ Allocated Budget
26
4
INFORMATIONAL MEMO
Page 5
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 May represents the completion of 41.7% of the year. Total Services is the only
Category that reported total activity higher than 41.7%. Within Total Services, Professional
Services jumps out due to exceeding the allocated budget, % of Expended is greater than 41.7%
and when compared to the same period last year, the current expenditures exceed last year by
more than 5% and 50k. The increase is explained by the Puget Sound Regional Fire Authority
agreement. Professional Development has increased over the prior year by both $50k and 5%.
However, the account is operating below both the allocated budget and the % Expended. This is
an example of a rise in costs that has been previously identified and properly budgeted for.
Rentals is reporting similar to Professional Services, in that the account is reporting an increase
over the previous year that is greater than 5% and 50k. However, similar to Professional
Development, Rentals is under their allocated budget and below the YTD % expended of 41.7%.
This is also an example of a rise in costs that has been previously identified and properly
budgeted for. Examples of Rentals expenditures are copier leases, fleet contributions, and
maintenance/power equipment rentals. Technology Services is in the same boat. There have
been an increase in expenditures over the prior year greater than 50k and 5%, but the activity is
within the expected budget. Utilities are currently at 68.1% for the year, however both the $
Change and % Change are well under the threshold of %5 and $50k.
While reviewing expenditure trends, we noted Salaries are significantly below the allocated
budget by $1.2 million. The City has been involved in ongoing labor discussions. Upon
completion of negotiations there is an expectation of a retroactive payment of salaries that will
bring the account in line with expectations.
5
27
INFORMATIONAL MEMO
Page 6
General Fund
City of Tukwila
General Fund Expenditures
Year -to Date as of May 1, 2023
%ofYear
28
41.7%
6
BUDGET
ACTUAL
COMPARISON OF RESULTS
2023
Annual
2023
Allocated
2021
2022
2023
Allocated Budget
vs Allocated
OVER/(UNDER)
%
Expended
Change
$
2022/2023
%
2022/2023
Salaries
25,787,016
10,744,590
11,576,012
12,466,247
9,571,301
(1,173,289)
37.1%
(2,894,946)
(23.2%)
Extra Labor
769,106
244,006
11,826
116,135
144,394
(99,612)
18.8%
28,259
24.3%
Overtime
755,184
281,870
878,487
1,083,985
669,609
387,739
88.7%
(414,376)
(38.2%)
Holiday Pay
250,000
9,211
8,938
8,646
3,759
(5,452)
1.5%
(4,887)
(56.5%)
FICA
2,110,086
879,203
725,217
797,301
784,603
(94,600)
37.2%
(12,698)
(1.6%)
Pension-LEOFF
635,410
233,921
360,683
461,647
215,714
(18,207)
33.9%
(245,933)
(53.3%)
Pension-PERS/PSERS
1,744,919
727,050
687,866
601,959
633,078
(93,972)
36.3%
31,119
5.2%
Industrial Insurance
586,183
244,243
395,663
297,354
166,456
(77,787)
28.4%
(130,898)
(44.0%)
Medical & Dental
5,748,432
2,395,180
2,594,499
3,068,453
2,236,181
(158,999)
38.9%
(832,273)
(27.1%)
Unemployment
0
0
20,710
15,108
0
0
-
(15,108)
(100.0%)
Uniform/Clothing
33,290
17,954
1,120
840
814
(17,140)
2.4%
(26)
(3.1%)
Total Salaries & Benefits
38,419,627
15,777,228
17,261,021
18,917,675
14,425,909
(1,351,319)
37.5%
(4,491,766)
(23.7%)
Supplies
678,334
272,963
187,500
108,737
140,824
(132,139)
20.8%
$32,088
29.5%
Repairs & Maint Supplies
450,010
186,288
77,258
148,348
142,242
(44,046)
31.6%
($6,106)
(4.1%)
Resale Supplies
2,500
1,000
0
93
0
(1,000)
-
($93)
-
Small Tools
213,203
89,235
13,059
15,233
20,198
(69,036)
9.5%
$4,965
32.6%
Technology Supplies
110,798
46,166
12,785
15,884
27,185
(18,980)
24.5%
$11,301
71.2%
Fleet Supplies
7,000
2,917
1,163
1,928
2,247
(670)
32.1%
$319
16.5%
Total Supplies
1,461,845
598,568
291,765
290,223
332,697
(265,871)
22.8%
$42,474
14.6%
Professional Services
21,798,537
7,467,694
3,133,735
2,824,845
10,649,230
3,181,536
48.9%
$7,824,385
277.0%
Communications
440,528
178,331
180,990
156,966
178,918
587
40.6%
$21,953
14.0%
Professional Dev
570,359
239,850
219,435
155,715
214,636
(25,214)
37.6%
$58,921
37.8%
Advertising
66,300
29,833
3,529
2,535
10,375
(19,458)
15.6%
$7,840
309.2%
Rentals
1,298,059
372,483
170,677
61,103
278,141
(94,342)
21.4%
$217,038
355.2%
Technology Services
1,031,264
567,544
229,770
313,549
403,872
(163,672)
39.2%
$90,323
28.8%
Utilities
2,244,354
1,592,334
1,446,553
1,510,549
1,528,726
(63,608)
68.1%
$18,177
1.2%
Repairs & Maint Svs.
1,286,418
536,795
808,816
923,389
489,103
(47,691)
38.0%
($434,286)
(47.0%)
Miscellaneous
1,012,899
408,582
29,206
223,206
119,402
(289,180)
11.8%
($103,804)
(46.5%)
Total Services
29,748,719
11,393,446
6,222,711
6,171,857
13,872,403
2,478,958
46.6%
7,700,546
124.8%
Capital Outlay -Land
0
0
0
0
0
0-
0
-
Other Improvements
0
0
0
0
0
0
-
0
-
Machinery & Equipment
420,000
45,000
76,184
49,499
0
(45,000)
-
(49,499)
(100.0%)
Construction Projects
0
0
0
0
39,423
Total Capital Outlay
420,000
45,000
76,184
49,499
39,423
(45,000)
9.4%
(10,075)
(20.4%)
Transfers Out
5,706,078
1,387,457
1,365,690
1,342,690
1,262,595
(4,443,483)
22.1%
(80,095)
(6.0%)
Total Non Operating Expense
5,706,078
1,387,457
1,365,690
1,342,690
1,262,595
(4,443,483)
22.1%
(80,095)
(6.0%)
Total Expenditures
75,756,269
29,201,699
25,217,371
26,771,944
29,933,027
(3,626,716)
39.5%
3,161,084
11.8%
%ofYear
28
41.7%
6