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HomeMy WebLinkAboutFIN 2023-12-11 Item 1A - Budget - October 2023 Monthly General Fund UpdateCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Tony Cullerton, Deputy Finance Director CC: Mayor Ekberg DATE: December 11, 2023 SUBJECT: October 2023 General Fund Departmental Budget-to-Actuals Report Summary The purpose of the October 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 October 2023 report is based on financial data available as of November 29, 2023, for the period ending October 31, 2023. Expenditures General Fund departmental expenditures totaled $53.7 million through October, which is $3.2 million below the allocated budget of $56.9 million. Department 20, which transfers to other funds, reported $4.5 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 October was $58.2 million, which is below the allocated budget by $3.6 million. However, due to ongoing labor negotiations, the $3.6 million dollars under budget does not represent savings. Allocated Budget As of the end of October, all departments except Administrative Services and Fire are operating within their allocated budgets. The overage in Administrative Services is attributed to the Private LTE project which will be reimbursed by a state grant. The increase in Fire is due to higher than anticipated contracted services including overtime and increased call volume with dispatch services. % Expended When comparing YTD spending to the percent of year completed (83.3%), only Administrative Services finished the month above 83.3%. Administrative Services is a result of the Private LTE project. 1 1 INFORMATIONAL MEMO Page 2 2023 Compared to 2022 A few departments reported increases greater than 5% and $50,000 when compared to the same period last year. However, in all cases, the increases are anticipated and explained. Administrative Services has been previously explained by the computer/laptop purchases for the Chromebooks, related to the Private LTE project. These expenditures will be reimbursed by a state grant. Community Development reported an increase over the prior year of $357,410 (10%). However, the department is currently under budget, both Allocated and % Expended. Police is significantly under their allocated budget and finished the month at 74.6% at 83.3% of the year. However, because they were $1.8 million (11.7%) over last year, we look further into the change. The increases in PD are salaries, OT, Supplies, and Tech Services. Salaries and OT are due to limited staffing. Examples of Supplies include equipment for firearm instructor school, revolver supplies, body cam repair kits. Tech Services is a contract between the City and Axon Enterprises. Departmental Variances Year to Date Department Expenditures Through October 2023: BUDGET ACTUAL 2023 2023 2021 2022 2023 Allocated Budget vs Actual % Expended $ Change % Change DEPARTMENT Annual Allocated OVER/(UNDER) 2022/2023 City Council 384,889 314,824 278,036 292,257 301,496 (13,327) 78.3% 9,239 3.2% Mayor's Office 2,502,666 2,100,000 1,640,318 1,716,385 1,788,814 (311,186) 71.5% 72,428 4.2% Administrative Services 5,676,491 4,613,933 3,895,061 3,803,429 5,169,471 555,538 91.1% 1,366,043 35.9% Finance Department 3,868,642 3,388,823 2,158,329 2,661,608 2,689,475 (699,348) 69.5% 27,867 1.0% Rec Dept / Parks Maint 5,109,490 4,347,889 3,478,186 4,038,691 4,205,097 (142,793) 82.3% 166,406 4.1% Community Dev 4,672,314 3,893,588 3,177,659 3,437,364 3,794,774 (98,814) 81.2% 357,410 10.4% Municipal Court 1,741,340 1,451,117 1,006,290 1,290,231 1,332,371 (118,745) 76.5% 42,140 3.3% Police Department 22,746,448 18,948,970 14,653,857 15,194,455 16,965,474 (1,983,496) 74.6% 1,771,019 11.7% Fire Department 14,790,120 11,285,245 11,314,043 12,016,731 11,505,258 220,013 77.8% (511,473) -4.3% PW Dept / Street Maint 7,574,988 6,556,623 5,462,206 5,817,383 5,917,064 (639,559) 78.1% 99,680 1.7% Subtotal 69,067,388 56,901,011 47,063,983 50,268,535 53,669,293 (3,231,718) 77.7% 3,400,758 6.8% Non Departmental 6,688,881 4,915,723 3,793,874 7,588,145 4,547,925 (367,799) 68.0% (3,040,220) -40.1% Total Expenditures 75,756,269 61,816,735 50,857,857 57,856,680 58,217,218 (3,599,517) 76.8% 360,538 0.6% %of Year 83.3% General Fund departmental costs increased by 6.8% over the same period last year. The increases in expenditures were identified ahead of time and budgeted for. 2 2 INFORMATIONAL MEMO Page 3 The Bar graph below displays Year to Date Department Expenditures Compared to Allocated Budget as of October 31, 2023. 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 5,000 10,000 ■ Actual Expenditures ■ Allocated Budget 15,000 20,000 Thousands 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. Allocated Budget Capital Outlay is the only category that is over 83% for the year. The overage is with Machinery & Equipment within TIS. Specifically, an invoice for the installation of a custom 4G turnkey private wireless network. 3 3 INFORMATIONAL MEMO Page 4 % Expended The end of October represents the completion of 83% of the year. Capital Outlay is the only expenditure category that exceeded 83%. The Machinery & Equipment overage is Carahsoft Technology Corp. for the installation of a custom 4G turnkey private wireless network. $ Change 2022/2023 The increase in Repairs & Maintenance Supplies is primarily shared between PD, PW, and Parks Maintenance. Costs are attributable to an increase in maintenance supplies across the board. The increase in Tech Supplies is the purchase of Chromebooks for the Private LTE grant/project. Professional Services increase is the Fire RFA agreement. In prior years, this expenditure was reported in Salaries & Benefits. Professional Development is below the allocated budget and below the % Expended. The higher amount compared to the prior year is a result of the return to in -person training and seminars. Rentals are up over the prior year, but below allocated budget as well as % Expended YTD. Technology Services increase is the PD software & maintenance agreement with the vendor Spillman. Machinery & Equipment increase in the infrastructure expenditures is associated with the 4G turnkey private wireless network Private LTE Infrastructure grant secured by TIS. 4 4 INFORMATIONAL MEMO Page 5 General Fund City of Tukwila General Fund Expenditures Year -to -Date as of Oct 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 21,489,180 23,283,171 24,884,032 19,153,934 (2,335,246) 74.3% (5,730,098) (23.0%) Extra Labor 769,106 695,019 160,032 363,712 556,135 (138,885) 72.3% 192,423 52.9% Overtime 755,184 626,405 1,860,224 2,118,316 1,207,578 581,173 159.9% (910,739) (43.0%) Holiday Pay 250,000 106,204 82,875 90,234 109,042 2,838 43.6% 18,808 20.8% FICA 2,110,086 1,758,405 1,476,901 1,597,671 1,570,449 (187,956) 74.4% (27,222) (1.7%) Pension-LEOFF 635,410 541,842 793,828 842,652 521,255 (20,586) 82.0% (321,397) (38.1%) Pension-PERS/PSERS 1,744,919 1,454,099 1,285,890 1,217,009 1,215,075 (239,025) 69.6% (1,935) (0.2%) Industrial Insurance 586,183 488,486 755,882 625,513 347,726 (140,760) 59.3% (277,787) (44.4%) Medical & Dental 5,748,432 4,790,360 5,696,110 6,096,436 4,462,707 (327,653) 77.6% (1,633,729) (26.8%) Unemployment 0 0 36,827 37,205 13,641 13,641 - (23,565) (63.3%) Uniform/Clothing 33,290 28,908 2,573 2,422 2,302 (26,606) 6.9% (120) (4.9%) Total Salaries & Benefits 38,419,627 31,978,909 35,434,313 37,875,203 29,159,843 (2,819,066) 75.9% (8,715,360) (23.0%) Supplies 678,334 557,623 471,923 344,252 359,360 (198,263) 53.0% $15,107 4.4% Repairs & Maint Supplies 450,010 374,343 181,415 270,417 331,633 (42,710) 73.7% $61,216 22.6% Resale Supplies 2,500 2,100 0 141 0 (2,100) - ($141) - Small Tools 213,203 178,170 42,400 59,740 87,647 (90,522) 41.1% $27,908 46.7% Technology Supplies 110,798 92,331 63,746 39,883 273,707 181,376 247.0% $233,824 586.3% Fleet Supplies 7,000 5,833 2,534 5,668 6,514 681 93.1% $847 14.9% Total Supplies 1,461,845 1,210,400 762,017 720,100 1,058,862 (151,538) 72.4% $338,761 47.0% Professional Services 21,798,537 17,369,350 5,393,783 5,365,387 17,117,516 (251,834) 78.5% $11,752,129 219.0% Communications 440,528 362,927 368,383 375,030 341,455 (21,472) 77.5% ($33,575) (9.0%) Professional Dev 570,359 470,787 303,367 299,887 350,684 (120,103) 61.5% $50,797 16.9% Advertising 66,300 54,517 8,986 19,023 38,157 (16,360) 57.6% $19,134 100.6% Rentals 1,298,059 1,002,566 372,433 291,305 910,839 (91,727) 70.2% $619,534 212.7% Technology Services 1,031,264 793,126 504,891 529,250 745,590 (47,536) 72.3% $216,340 40.9% Utilities 2,244,354 2,079,459 2,011,543 2,101,153 2,051,250 (28,210) 91.4% ($49,903) (2.4%) Repairs & Maint Sys. 1,286,418 1,070,597 1,679,061 1,881,758 1,143,765 73,168 88.9% ($737,993) (39.2%) Miscellaneous 1,012,899 847,976 124,147 521,293 406,373 (441,603) 40.1% ($114,919) (22.0%) Total Services 29,748,719 24,051,305 10,766,595 11,384,086 23,105,629 (945,675) 77.7% 11,721,543 103.0% Capital Outlay -Land 0 0 0 0 0 0 - 0 - Other Improvements 0 0 0 0 0 0 - 0 - Machinery & Equipment 420,000 397,500 101,058 289,145 1,082,062 684,562 257.6% 792,917 274.2% Construction Projects 0 0 0 0 0 Total Capital Outlay 420,000 397,500 101,058 289,145 1,082,062 684,562 257.6% 792,917 274.2% Transfers Out 5,706,078 4,178,621 3,793,874 7,588,145 3,810,823 (1,895,255) 66.8% (3,777,323) (49.8%) Total Non Operating Expense 5,706,078 4,178,621 3,793,874 7,588,145 3,810,823 (1,895,255) 66.8% (3,777,323) (49.8%) Total Expenditures 75,756,269 61,816,735 50,857,857 57,856,680 58,217,218 (5,126,974) 76.8% 360,538 0.6% % of Year 83.3% 5 5