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HomeMy WebLinkAboutFIN 2023-08-14 Item 1B - Budget - Monthly General Fund Update: June 2023City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Tony Cullerton, Deputy Finance Director CC: Mayor Ekberg DATE: August 14, 2023 SUBJECT: June 2023 General Fund Departmental Budget -to -Actuals Report Summary The purpose of the June 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 June 2023 report is based on financial data available as of July 31, 2023, for the period ending June 30, 2023. Expenditures General Fund departmental expenditures totaled $32.6 million through June, which is $3.3 million below the allocated budget of $35.8 Million. Department 20, which transfers to other funds, reported $3 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 June was $35.6 million which is $3.5 million under the allocated budget. Allocated Budget vs Actual Spending As of the end of June, all departments are operating within their allocated budgets. % Expended When comparing Year -to -Date (YTD) spending to the percent of the year completed (50.0%), PW Department/Street Maintenance concluded the month at 53.9%. However, the department(s) remain well under their allocated budget and slightly above (1.6%) the same period last year. 2023 Compared to 2022: Several departments reported increases greater than 5% when compared to the previous year. As all departments are within their budget allocations and generally below 50% of % Expended, a detailed review is limited to those with the largest increases over the prior year. Mayor's Office is up $893,917 (8.8%) over last year, with previously reported increases in Government Affairs, Special Matters (legal), and Tuition/Coaching/Trainer. 1 11 INFORMATIONAL MEMO Page 2 Administrative Services aggregate increase is $294,467 (13%), primarily due to Computer/Laptop Purchase (90% of the cost increase) for the Private LTE project, to be reimbursed by the State. Rec/Parks Maintenance is up $185,181 (8.4%) over the same period last year, driven by return - to -services expenses in Salaries/Extra Labor/Instructors, Contracted Services (Juneteenth Speaker, Tukwila Wellness Hub Project), Safety/Security (Parks Security), and Water/Sewer Utility. Description Extra La bor-Office/Receptionst Salaries Contracted Services Instructors Security/Safety Svcs Water/Sewer Utility Total 2022 2023 10,646 40,117 1,058,666 1,087,264 17,864 66,110 30,390 46,776 26,358 46,309 29,122 49,237 1,173,045 1,335,813 $ Variance 29,470 28,598 48,246 16,387 19,952 20,116 162,768 0/0 Variance 277% 3% 270% 54% 76% 69% Police is up $1.1 million (11.5%) over the prior year, due to major cost increases previously reported. Description Salaries Dispatch Jail Services Software Maintenance Contract Total 2,022 2,023 4,529,178 5,034,331 591,311 693,082 399,635 503,629 87,885 137,502 5,608,009 6,368,544 $ Variance 505,153 101,771 103,994 49,617 760,535 0/0 Variance 11.2% 17.2% 26.0% 56.5% Departmental Variances: Overall General Fund departmental costs increased by 5.4% over the same period last year, with most increases identified ahead of time and supported as approved budget items. 2 12 INFORMATIONAL MEMO Page 3 Year to Date Department Expenditures Through May 2023: 3 13 BUDGET ACTUAL Allocated Budget % 2023 2023 2021 2022 2023 vs Actual Expended $ Change % Change DEPARTMENT Annual Allocated OVER/(UNDER) 2022/2023 City Council 384,889 187,778 165,384 171,690 184,650 (3,128) 48.0% 12,960 7.5% Mayor's Office 2,502,666 1,262,810 955,299 956,997 1,040,914 (221,896) 41.6% 83,917 8.8% Administrative Services 5,676,491 2,830,740 2,261,791 2,265,591 2,560,058 (270,682) 45.1% 294,467 13.0% Finance Department 3,868,642 2,086,169 1,434,962 1,808,435 1,690,705 (395,464) 43.7% (117,730) -6.5% Rec Dept / Parks Maint 5,109,490 2,558,139 1,959,789 2,191,569 2,376,750 (181,389) 46.5% 185,181 8.4% Community Dev 4,672,314 2,332,354 1,923,169 2,088,414 2,159,401 (172,953) 46.2% 70,987 3.4% Municipal Court 1,741,340 870,670 610,043 771,749 819,972 (50,698) 47.1% 48,223 6.2% Police Department 22,746,448 11,554,138 8,689,475 9,178,497 10,234,465 (1,319,673) 45.0% 1,055,969 11.5% Fire Department 14,790,120 7,649,420 6,782,979 7,437,654 7,419,800 (229,620) 50.2% (17,855) -0.2% PW Dept /Street Maint 7,574,988 4,519,893 3,646,266 4,017,649 4,082,908 (436,985) 53.9% 65,258 1.6% Subtotal 69,067,388 35,852,111 28,429,157 30,888,246 32,569,624 (3,282,487) 47.2% 1,681,377 5.4% Non Departmental 6,688,881 3,266,316 2,731,380 2,677,415 3,016,454 (249,862) 45.1% 339,039 12.7% Total Expenditures 75,756,269 39,118,426 31,160,537 33,565,661 35,586,077 (3,532,349) 47.0% 2,020,416 6.0% % of Year 50.0% 3 13 INFORMATIONAL MEMO Page 4 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 14 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Thousands ■ Actual Expenditures ■ Allocated Budget 4 INFORMATIONAL MEMO Page 5 General Fund by Category: The City adopts a biennial budget by fund for external authoritative oversight and utilizes department -level reporting for managerial use. Additional information is provided for activity at the transaction level, reflecting an increase of more than 5% over the prior year and $50,000, in Categories with total activity above the % of Year calculation. % Expended: At the end of June (50% of the year completed), Total Services finished the month at 50.3%, being the only Category reporting total activity higher than 50%. Utilities within Total Services exceeded 50% of Percent Expended, finishing half the year at 72.9%, but still remained below the allocated budget and up 0.1% over same period last year. Change From Prior Year: Technology Supplies reported an increase over the prior year of $245,015, to be reimbursed by the State for the Chromebooks in the Private LTE project. Professional Services reported significant $ and % Changes over the prior year due to a change in coding reflecting the RFA agreement. Professional Development increased by $68,890 (38.3%) over the same period last year, mainly due to the return to in-person training and conferences. Rentals are up $438,552 (463%), primarily due to fleet vehicles. Technology Services reported an increase of $111,112 (28.8%), mainly in Online Services -Subscriptions, including network security and Software Maintenance Contracts, which were previously identified, approved, and budgeted for. While reviewing expenditure trends, we noted Salaries are significantly below the allocated budget by $1.4 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 15 INFORMATIONAL MEMO Page 6 General Fund City of Tukwila General Fund Expenditures Year -to -Date as of June 30, 2023 % of Year 16 50.0% 6 BUDGET ACTUAL COMPARISON OF RESULTS 2023 Annual 2023 Allocated 2021 2022 2023 Actual Budget vs Allocated OVER/(UNDER) % Expended Change $ 2022/2023 % 2022/2023 Salaries 25,787,016 12,893,508 13,869,570 14,928,225 11,490,805 (1,402,702) 44.6% (3,437,420) (23.0%) Extra Labor 769,106 337,497 27,684 163,404 205,045 (132,452) 26.7% 41,641 25.5% Overtime 755,184 359,551 1,064,168 1,355,822 784,420 424,869 103.9% (571,402) (42.1%) Holiday Pay 250,000 98,096 72,268 79,193 71,993 (26,103) 28.8% (7,199) (9.1%) FICA 2,110,086 1,055,043 872,949 964,727 947,593 (107,451) 44.9% (17,135) (1.8%) Pension-LEOFF 635,410 354,705 435,536 541,531 259,137 (95,568) 40.8% (282,394) (52.1%) Pension-PERS/PSE RS 1,744,919 872,459 824,671 726,451 756,478 (115,981) 43.4% 30,027 4.1% Industrial Insurance 586,183 293,092 467,781 362,920 201,979 (91,113) 34.5% (160,941) (44.3%) Medical & Dental 5,748,432 2,874,216 3,451,962 3,669,706 2,681,339 (192,877) 46.6% (988,366) (26.9%) Unemployment 0 0 20,710 15,108 0 0 - (15,108) (100.0%) Uniform/Clothing 33,290 20,145 1,634 840 1,064 (19,081) 3.2% 224 26.7% Total Salaries & Benefits 38,419,627 19,158,312 21,108,934 22,807,927 17,399,854 (1,758,459) 45.3% (5,408,073) (23.7%) Supplies 678,334 334,384 235,269 136,391 176,959 (157,425) 26.1% $40,568 29.7% Repairs & Maint Supplies 450,010 223,744 107,245 177,375 192,267 (31,477) 42.7% $14,892 8.4% Resale Supplies 2,500 1,300 0 93 0 (1,300)- ($93) - Small Tools 213,203 107,802 14,871 27,306 30,683 (77,118) 14.4% $3,377 12.4% Technology Supplies 110,798 55,399 16,236 16,484 261,499 206,100 236.0% $245,015 1,486.4% Fleet Supplies 7,000 3,500 1,288 3,217 2,791 (709) 39.9% ($426) (13.2%) Total Supplies 1,461,845 726,128 374,908 360,866 664,199 (61,929) 45.4% $303,333 84.1% Professional Services 21,798,537 11,717,586 3,371,749 3,528,467 11,080,118 (637,468) 50.8% $7,551,650 214.0% Communications 440,528 213,998 214,258 205,045 194,471 (19,527) 44.1% ($10,574) (5.2%) Professional Dev 570,359 283,593 228,382 179,814 248,704 (34,890) 43.6% $68,890 38.3% Advertising 66,300 35,100 3,998 3,996 10,425 (24,674) 15.7% $6,429 160.9% Rentals 1,298,059 647,980 198,825 94,546 533,098 (114,881) 41.1% $438,552 463.8% Technology Services 1,031,264 675,468 242,801 385,886 496,997 (178,471) 48.2% $111,112 28.8% Utilities 2,244,354 1,684,522 1,592,330 1,638,520 1,636,512 (48,010) 72.9% ($2,009) (0.1%) Repairs & Ma int Svs. 1,286,418 643,205 979,598 1,123,856 616,106 (27,099) 47.9% ($507,750) (45.2%) Miscellaneous 1,012,899 497,620 37,190 281,372 136,888 (360,732) 13.5% ($144,484) (51.3%) Total Services 29,748,719 16,399,071 6,869,132 7,441,502 14,953,319 (1,445,753) 50.3% 7,511,816 100.9% Capital Outlay -Land 0 0 0 0 0 0 - 0 - Other Improvements 0 0 0 0 0 0- 0 - Machinery & Equipment 420,000 60,000 76,184 277,951 4,230 (55,770) 1.0% (273,721) (98.5%) Construction Projects 0 0 0 0 39,423 Total Capital Outlay 420,000 60,000 76,184 277,951 43,653 (55,770) 10.4% (234,297) (84.3%) Transfers Out 5,706,078 2,774,914 2,731,380 2,677,415 2,525,052 (3,181,026) 44.3% (152,363) (5.7%) Total Non Operating Expense 5,706,078 2,774,914 2,731,380 2,677,415 2,525,052 (3,181,026) 44.3% (152,363) (5.7%) Total Expenditures 75,756,269 39,118,426 31,160,537 33,565,661 35,586,077 (6,502,936) 47.0% 2,020,416 6.0% % of Year 16 50.0% 6