HomeMy WebLinkAboutFIN 2023-10-09 Item 1C - Report - July 2023 General Fund Expenditure UpdateCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
FROM: Tony Cullerton, Deputy Finance Director
CC: Mayor Ekberg
DATE: October 9, 2023
SUBJECT: July 2023 General Fund Departmental Budget-to-Actuals Report
Summary
The purpose of the July 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 July 2023 report
is based on financial data available as of October 2, 2023, for the period ending July 31, 2023.
Expenditures
General Fund departmental expenditures totaled $42.1 million through July, which is $1.8 million
below the allocated budget of $43.9 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 July was $45.1 million,
which is below the allocated budget by $2 million. However, due to ongoing labor negotiations,
the two million dollars under budget does not represent savings as retro pays will be paid out
later this year.
Allocated Budget
As of the end of July, all departments except Administrative Services are operating within their
allocated budgets. The overage in Administrative Services is directly related to the Private LTE
project that will be reimbursed by a State grant and will be included in year-end budget
amendments.
Budget to Actual (% Expended)
When comparing YTD spending to the percent of year completed (58.30%), Administrative
Services, Fire, and PW/Streets Maintenance finished the month above 58.3%. Administrative
Services is a result of the Private LTE project. Both Fire and PW Dept/Streets Maintenance are
under their allocated budget, suggesting that the increase over the % Expended expectation is
due to previously anticipated, approved, and budgeted expenditures. In the case of Fire, the
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INFORMATIONAL MEMO
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increase is Fire Admin/Insurance liability. The increase in PW Dept/Streets Maintenance is
attributed to the Kennedy Cottage demo and Facilities Maintenance Insurance — Property.
2023 Compared to 2022
Several departments reported increases greater than 5% and $50,000 when compared to the
previous year. However, most departments are within their budget allocations and generally
speaking, hovering around 58% of % Expended. Mayor's Office is up $112,137 (9.1%) over last
year. Increases are Government Affairs, Special Matters (legal), and Tuition. Administrative
Services has been previously explained as the computer/laptop purchases for the Chromebooks,
related to the Private LTE project. These expenditures will be reimbursed by a State grant.
Rec/Parks Maintenance is up $230,303 (8.8%) over the same period last year. The major areas
of increase include:
• Salaries/Extra Labor/Instructors - Return to work over the prior year
• Professional Services Safety/Security - Parks Security
Community Development reported an increase of $142,779 (5.9%). The primary project is with
the Planning division, the Middle Housing project - Professional Services - Makers Architecture.
Police is up $1.4 million (13.4%) over the prior year. Major cost increases have been previously
reported in the prior months:
• Salaries
• Dispatch
• Jail Services
• Software Maintenance contract
The increase in Fire is attributable to the move to the RFA. This has been well documented all
year.
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INFORMATIONAL MEMO
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Departmental Variances
Year to Date Department Expenditures Through July 2023:
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
216,268
195,849
202,311
217,668
1,399
56.6%
15,357
7.6%
Mayor's Office
2,502,666
1,463,719
1,131,492
1,235,167
1,347,304
(116,415)
53.8%
112,137
9.1%
Administrative Services
5,676,491
3,275,016
2,591,185
2,766,320
4,035,860
760,844
71.1%
1,269,541
45.9%
Finance Department
3,868,642
2,368,178
1,581,042
2,028,578
1,940,953
(427,225)
50.2%
(87,625)
-4.3%
Rec Dept / Parks Maint
5,109,490
3,048,475
2,292,301
2,620,798
2,851,101
(197,374)
55.8%
230,303
8.8%
Community Dev
4,672,314
2,727,413
2,227,288
2,428,165
2,570,945
(156,468)
55.0%
142,779
5.9%
Municipal Court
1,741,340
1,015,782
709,118
900,092
950,048
(65,734)
54.6%
49,956
5.6%
Police Department
22,746,448
13,279,789
9,972,205
10,763,926
12,201,554
(1,078,235)
53.6%
1,437,628
13.4%
Fire Department
14,790,120
11,448,820
7,891,942
8,536,635
11,444,200
(4,620)
77.4%
2,907,565
34.1%
PW Dept/Street Maint
7,574,988
5,029,075
4,105,281
4,475,160
4,558,381
(470,694)
60.2%
83,222
1.9%
Subtotal
69,067,388
43,872,534
32,697,701
35,957,150
42,118,012
(1,754,521)
61.0%
6,160,862
17.1%
Non Departmental
6,688,881
3,282,566
2,731,380
2,683,765
3,032,704
(249,862)
45.3%
348,939
13.0%
Total Expenditures
75,756,269
47,155,100
35,429,081
38,640,915
45,150,716
(2,004,384)
59.6%
6,509,801
16.8%
%of Year 58.3%
Overall General Fund departmental costs increased by 17% over the same period last year. The
majority of increases in expenditures were identified ahead of time and were budgeted for.
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 12,000 14,000
• Actual Expenditures • Allocated Budget Thousands
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INFORMATIONAL MEMO
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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.
% Expended
The end of July represents the completion of 58% of the year. Total Services finished the month
at 68%. Within Total Services, all accounts are under their allocated budget except Repairs &
Maintenance. Looking closer at Repairs & Maintenance we noted the account is trending $500k
below last year. That being said, the increase over the prior year is PD Fleet Repair &
Maintenance. The amount is only $23k over allocated budget. The increase in Machinery &
Equipment is attributed to Fleet leasing.
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INFORMATIONAL MEMO
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General Fund
City of Tukwila
General Fund Expenditures
Year -to -Date as of July 31, 2023
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
15,042,426
16,135,259
17,350,565
13,361,749
(1,680,677)
51.8%
(3,988,817)
(23.0%)
Extra Labor
769,106
468,827
65,831
238,047
311,848
(156,979)
40.5%
73,801
31.0%
Overtime
755,184
419,610
1,262,551
1,540,832
883,227
463,618
117.0%
(657,605)
(42.7%)
Holiday Pay
250,000
104,300
72,268
84,116
71,993
(32,306)
28.8%
(12,123)
(14.4%)
FICA
2,110,086
1,230,884
1,021,535
1,125,063
1,104,715
(126,169)
52.4%
(20,349)
(1.8%)
Pension-LEOFF
635,410
401,489
577,157
615,396
386,793
(14,696)
60.9%
(228,602)
(37.1%)
Pension-PERS/PSERS
1,744,919
1,017,869
937,993
848,140
867,820
(150,049)
49.7%
19,680
2.3%
Industrial Insurance
586,183
341,940
539,456
427,734
238,146
(103,794)
40.6%
(189,588)
(44.3%)
Medical & Dental
5,748,432
3,353,252
3,961,355
4,275,551
3,126,126
(227,126)
54.4%
(1,149,424)
(26.9%)
Unemployment
0
0
20,710
15,108
2,076
2,076
-
(13,033)
(86.3%)
Uniform/Clothing
33,290
22,336
1,634
1,511
1,064
(21,272)
3.2%
(448)
(29.6%)
Total Salaries & Benefits
38,419,627
22,402,933
24,595,750
26,522,064
20,355,557
(2,047,376)
53.0%
(6,166,507)
(23.3%)
Supplies
678,334
389,953
282,526
154,883
246,265
(143,687)
36.3%
$91,383
59.0%
Repairs & Maint Supplies
450,010
260,690
112,392
196,721
228,825
(31,864)
50.8%
$32,104
16.3%
Resale Supplies
2,500
1,500
0
93
0
(1,500)
-
($93)
-
Small Tools
213,203
125,119
31,409
35,566
33,164
(91,955)
15.6%
($2,402)
(6.8%)
Technology Supplies
110,798
64,632
21,558
17,871
261,961
197,329
236.4%
$244,090
1,365.8%
Fleet Supplies
7,000
4,083
1,628
3,217
4,074
(9)
58.2%
$858
26.7%
Total Supplies
1,461,845
845,977
449,513
408,351
774,289
(71,687)
53.0%
$365,939
89.6%
Professional Services
21,798,537
15,938,080
3,736,541
4,270,174
15,838,917
(99,162)
72.7%
$11,568,743
270.9%
Communications
440,528
249,664
247,324
250,995
249,179
(485)
56.6%
($1,816)
(0.7%)
Professional Dev
570,359
322,005
255,463
205,016
276,966
(45,039)
48.6%
$71,949
35.1%
Advertising
66,300
40,067
4,501
4,764
11,862
(28,204)
17.9%
$7,099
149.0%
Rentals
1,298,059
676,776
215,154
210,259
542,317
(134,459)
41.8%
$332,058
157.9%
Technology Services
1,031,264
699,865
266,263
429,235
689,788
(10,077)
66.9%
$260,553
60.7%
Utilities
2,244,354
1,780,888
1,685,493
1,739,694
1,730,555
(50,333)
77.1%
($9,139)
(0.5%)
Repairs & Maint Svs.
1,286,418
749,616
1,121,717
1,290,732
772,824
23,209
60.1%
($517,907)
(40.1%)
Miscellaneous
1,012,899
590,567
43,798
347,916
245,673
(344,893)
24.3%
($102,243)
(29.4%)
Total Services
29,748,719
21,047,526
7,576,254
8,748,785
20,358,082
(689,443)
68.4%
11,609,297
132.7%
Capital Outlay -Land
0
0
0
0
0
0
-
0
-
Other Improvements
0
0
0
0
0
0
-
0
-
Machinery & Equipment
420,000
67,500
76,184
277,951
1,082,062
1,014,562
257.6%
804,111
289.3%
Construction Projects
0
0
0
0
39,423
Total Capital Outlay
420,000
67,500
76,184
277,951
1,121,485
1,014,562
267.0%
843,534
303.5%
Transfers Out
5,706,078
2,791,164
2,732,130
2,683,765
2,541,302
(3,164,776)
44.5%
(142,463)
(5.3%)
Total Non Operating Expense
5,706,078
2,791,164
2,732,130
2,683,765
2,541,302
(3,164,776)
44.5%
(142,463)
(5.3%)
Total Expenditures
75,756,269
47,155,099
35,429,831
38,640,915
45,150,716
(4,958,721)
59.6%
6,509,801
16.8%
% of Year
58.3%
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