HomeMy WebLinkAboutFIN 2024-02-26 COMPLETE AGENDA PACKETCity of Tukwila
Finance and Governance
Committee
O De'Sean Quinn, Chair
O Tosh Sharp
O Jovita McConnell
AGENDA
Distribution:
D. Quinn
T. Sharp
J. McConnell
Mayor McLeod
M. Wine
C. O'Flaherty
A. Youn
L. Humphrey
MONDAY, FEBRUARY 26, 2024 — 5:30 PM
ON -SITE PRESENCE:
TUKWILA CITY HALL
HAZELNUT CONFERENCE Room
6200 SOUTHCENTER BOULEVARD
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Item
Recommended Action
Page
1.
BUSINESS AGENDA
a. Public records request mitigation and staffing
request.
a.
Forward to 3/11 C.O.W.
and 3/18 Regular Mtg.
Pg.1
Christy O'F/aherty, Records Governance Mgr./City C/erk; and
Consent Agenda.
Andy Youn, Deputy City C/erk
b. Financial Policies review.
b.
Discussion only.
Pg.5
Laurel Humphrey, Legislative Analyst
c. Monthly General Fund Expenditure update
c.
Discussion only.
Pg.15
(December 2023 & January 2024)
Tony Cullerton, Deputy Finance Director
2.
MISCELLANEOUS
Next Scheduled Meeting: March 25, 2024
SThe City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk@TukwilaWA.gov) for assistance.
City of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
BY: Andy Youn, Deputy City Clerk
CC:
Mayor McLeod
Marty Wine, Interim City Administrator
Christy O'Flaherty, Records Governance Manager/ City Clerk
DATE: February 20, 2024
SUBJECT: Public records requests mitigation and
request to increase current 0.5 FTE to 1.0 FTE
ISSUE
Public agencies are required to comply with the Public Records Act or face substantial sanctions
for failures to respond to or provide records. The City Clerk's Office is requesting Council approval
for additional staffing to support the heavy workload associated with public records requests.
BACKGROUND
In 2006, the Public Disclosure Statutes were recodified as the Public Records Act (identified in
RCW 42.56), changing the landscape of government transparency by requiring public agencies
to make public records (physical or electronic) available upon request. The Public Records Act
requires that the City respond within 5 business days to all requests for public records either by
making the record available, providing a reasonable estimate of availability, requesting
clarification, or denying the request if there is a statutory exemption.
The City Clerk's Office coordinates complex, multi -departmental records requests as the
department responsible for administering the City's Records Management Program, and for
managing governmental transparency to the public. These requests are often in concurrence with
pending litigation against the City and require close coordination with the Attorney's Office to
mitigate legal and financial risk to the City. The City Clerk's Office also reports annually to the
State Legislature's Joint Legislative Audit and Review Committee (JLARC) on required
performance metrics related to public records retention, management, and disclosure.
The City Clerk is currently the Public Records Officer for the City and oversees Citywide
compliance with the Public Records Act. This includes:
• Interpreting and distributing the request to staff
• Corresponding with requestors
• Managing the Citywide search for, review of, and delivery of responsive records
• Managing the redaction of exempt and sensitive information
• Database tracking
• Records retention and destruction
• Providing guidance to departmental liaisons on handling departmental requests
• Coordinating with the City Attorney's Office on redactions, exemptions,
third -party notices, and Nissen Affidavits.
1
INFORMATIONAL MEMO
Page 2
DISCUSSION
Since staff began tracking public records data in
2010, the total number of requests (Figure 1)
received annually by the Clerk's Office has
steadily increased, with a record number of
requests received in 2019 (161 total). The total
number of requests received does not
sufficiently describe the scope of work involved
in responding, which may range from providing
a simple link to an existing document, to
providing thousands of email records with
attachments that first need to be reviewed by
Clerk's Office staff for responsiveness and to
ensure exempt information is not released.
Figure 2 shows an approximation of the number
of electronic records reviewed by staff and
provided to requestors over the past few years.
The number of files is considerable but does not
fully capture other components such as
metadata, multiple tabs in an excel document,
and files that contain hyperlinks. In other words,
this is an undercount of the true scope of work.
Staff Time on Public Records Requests Annually
(Clerk's Office)
1689
1463
Hours (annual)
1800
1600
1400
1200
1000
800
600
400
200
0
O
Figure 3
years and have "commercialized" the process
records on behalf of their business clients.
requestor of municipal records with an average
individuals (30%), and other requestors (7%).
0
N
0
O
N
0
0
00 0,
0 0 a -I
0
N N N
ON N N
O O 0
N N N
1628
0
N
180
160
140
120
100
80
60
40
90
93
Number of Requests Annually
(Clerk's Office)
161
.•74 7
65
O
0
N
0
N
N
0
N
CO
0
0
N
147
131
ii.1213
131 130
18
Lf1
0
N
0
N
N.
0
N
11
CO
0
N
0
N
0
N
O
N
N
0
N
N
N
0
N
M
N
0
N 1
Figure 1
Total Files Reviewed
2017
12,214
2018
131,508
2019
40,638
2020
11,688
2021
19,444
2022
61,058
2023
43,867
Figure 2
Requests can often take weeks or months to
fulfill due to the litigious nature and
complexity, and available staff capacity. As
shown in Figure 3, the growing scope of
requests over the years has resulted in a
steady increase in the total staff time spent on
Public Records Requests. Two major factors
have contributed to the sharp increase in time
spent on requests: 1) The growing reliance on
technology and software systems over the
years has resulted in more digital records that
become part of the public record and therefore
must be provided in response to requests; and
2) Requestors have grown savvier over the
of public records requests by seeking municipal
Business organizations are the most frequent
of 43% of requests, compared to law firms (20%),
While the goal is to complete requests within the legal 5-day timeframe upon receipt, as shown in
Figure 4, less than half of requests were closed within 5 business days. Requests took an average
of 18 days to fulfill in 2023. In 2023, the longest request took 182 days for City Clerk staff to
complete and would have taken longer had the requestor not cancelled the request due to the
resolution of their pending litigation against the City.
2017
2018
2019
2020
2021
2022
2023
Requests closed in 5 days
77%
68%
73%
50%
56%
57%
57%
Average days to close
11
18
16
23
19
20
18
2
Figure 4
INFORMATIONAL MEMO
Page 3
Responding to Public Records Requests can be labor intensive, but noncompliance can result in
hefty sanctions, fines, and legal fees imposed against the City as well as the loss of public trust.
Courts often fine public agencies for failure to recognize requests, interpreting requests too
narrowly, performing inadequate searches, and failure to provide records in a timely manner.
Some examples of the heavy cost of failure to comply with the Public Records Act include:
• A $575,000 settlement in 2014 by Snohomish County to resolve a lawsuit brought by a
non-profit group that submitted more than 275 requests. The County failed to respond
timely to 4 of the requests.
• A 2019 Pierce County settlement of $950,000 with former employee Nissen, after an 8-
year case to disclose then -County Prosecutor's text messages. This landmark case
found that work -related text messages from the private phone were required to be
disclosed, resulting in the implementation of "Nissen affidavits" as records.
• The Port of Quincy paid $350,000 in 2022 to a requestor as a result of missing one of
four emails requesting public records that had landed in the spam folder.
Continued media coverage on the Public Records Act, an influx of new technologies, the growing
demand for access to government records, and ever -evolving records requirements by the State
all translate to increased workload impacts when it comes to public records requests. There are
also immediate impacts based on current events and activities: Requests are often submitted in
conjunction with pending or potential litigation, in response to issues happening locally or
nationally, actions taken (or not taken) by the City, and many other scenarios.
Over the years, the urgent need for high-level staffing dedicated to public records request has
become very apparent. As a service that is both legally mandated and high -risk, the escalating
impact of public records requests on public agencies cannot be overstated, especially given the
fluctuating and unpredictable nature of this workload. While the Clerk's Office has sought to
absorb public records request workload on top of existing core functions, this approach is
becoming unsustainable and presents legal and financial risk for the City.
FINANCIAL IMPACT
Prior to budget cuts, the Clerk's Office used available departmental funds towards public records
request support. However, due to the minimal available hours and high level of responsibility
required in this support role, maintaining staffing has proven difficult. As part of the 2023-2024
Biennial Budget, the Council approved funding for a 0.5 FTE (full time equivalent) Public Records
Request Assistant. The City Clerk's Office is requesting this existing position be increased to 1.0
FTE to provide the necessary support to handle the workload associated with public records
requests at a high level, given the legal and financial risks, evolving mandates, complexity of
reporting requirements, and sensitive information handled in this position. The costs associated
with this position are estimated to be $94,000 (salary and benefits) and will be absorbed in the
current City Clerk's budget using available salary savings.
RECOMMENDATION
The Committee is being asked to approve an increase from 0.5 FTE to 1.0 FTE for the City
Clerk's Office for staffing of Public Records Requests, to be included in the year-end budget
amendment, and forward this item for consideration to the March 11 Committee of the Whole
and March 18 Regular Meeting Consent Agenda.
ATTACHMENTS
None.
3
4
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
T0: Finance & Governance Committee
FROM: Laurel Humphrey, Legislative Analyst
DATE: February 20, 2024
SUBJECT: Financial Policies Review
ISSUE
Overview of the existing City Council Financial Policies
BACKGROUND
In 2020, the City Council adopted a reformatted Financial Policies document via Resolution
2014. This project reorganized, updated and consolidated policies from a variety of existing
sources for ease of use.
RECOMMENDATION
Staff is seeking Committee discussion on the Financial Policies as a lead-in to this year's
budget process. If the Committee would like to recommend any changes, staff will return
with a draft resolution.
ATTACHMENTS
1. Attachment to Resolution 2014: Financial Policies
5
6
Washington
Resolution No, Zm 19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING FINANCIAL POLICIES,
AND REPEALING RESOLUTION NOS. 1919 AND 1950.
WHEREAS, the City Council is committed to the highest standard of financial
management; and
WHEREAS, financial policies adopted by the legislative body are a best practice to
provide written guidance for how local government officials and staff should approach
fiscal issues and core financial areas; and
WHEREAS, financial polices outline a clear vision of how the City of Tukwila will
manage its financial resources to provide the best value to the community; and
WHEREAS, periodically updating and revising financial policies are important steps
toward ensuring consistent and rational financial management; and
WHEREAS, financial policies have traditionally existed in many different documents
and the City Council desires to minimize confusion and eliminate redundancies or
conflicts by consolidating financial policy direction to the extent feasible;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. The Financial Policies attached hereto as ExhibitAare adopted.
Section 2. The Financial Policies shall be reviewed on at least a biennial basis and
updated as necessary.
Section 3. Repealer. Resolution Nos. 1919 and 1950 are hereby repealed.
CC: \Legislative Development\Financial Policies 10-29-20
LH:bjs Review and anayss by Barbara Saxton Page 1 of 2
7
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this 1-W% day of -DeCer,o0e-c , 2020.
ATTEST/AUTHENTICATED:
C?Ot,te:cti: (-96;2iahe-At-7
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
vla Searn.o.D.,7$,,,n1
Cf/C-Cal; eSaf7teK
Vtb0,,,...Cabloal,sor/a7.,r73,11,
Office of the City Attorney
Attachment: Exhibit A - Financial Policies
De'Sean Quinn, Council President
Filed with the City Clerk: 12-Z- 2-0
Passed by the City Council: 12- 7- - 7-40
Resolution Number: 201/1
8
CC: \Legislative Development \ Financial Policies 10-29-20
LH:bjs Review and ana6'sis by Barbara Saxton Page 2 of 2
Financial Policies
Section 1. Purpose
a. The City of Tukwila is accountable to the public and shall maintain the fiscal
integrity of its operating, debt service, and capital budgets while providing an
appropriate level of public services within the City's fiscal responsibility.
b. The City's Financial Policies are intended to provide guidelines for the financial
planning and internal financial management of the City.
Section 2. Budgeting
Cross references: TMC Chapter 3.30
a. The City of Tukwila shall prepare and adopt a biennial budget in accordance with
RCW Chapter 35A.34, and Tukwila Municipal Code (TMC) Chapter 3.30. Fiscal
years begin January 1 and end December 31.
b. The budget shall be prepared with a priority -based approach that enables
resources to be allocated to the programs and services that provide the greatest
value to the community.
c. The budget must be developed in accordance with the policies and priorities set
forth in long-term policy documents including the Equity Policy, Strategic Plan,
Comprehensive Plan , City Council and commun ity priorities, and federal and state
laws.
d. Within each budget cycle, the budget should be structurally balanced, which
means that ongoing expenditures shall be provided for by anticipated ongoing
revenue and one-time revenue should only be used for one-time expenditures
u n less explicitly authorized by the City Council.
e. The City shall maintain a six -year Capital Improvement Program and update it
with each budget cycle to ensure that all costs are addressed.
f. As part of each biennial budget process, the City shall prepare six -year
expenditure and revenue forecasts for the principal operating and capital funds.
Revenues will be estimated on a conservative basis.
The City Council may informally approve mid -year budget amendments by motion
prior to the submission of a comprehensive formal budget amendment at the end
of the fiscal year.
g.
Section 3. Revenues
Cross references: TMC Title 3
a. The City will maintain a diversified and stable revenue system to shelter it from
short-term fluctuations.
b. The City shall develop and maintain a comprehensive schedule of fees and
charges, which should be reviewed biennially.
Financial Policies 11-30-20 Page 1 of 5
9
Section 3. Revenues (continued)
c. The City shall develop and maintain a Revenue Guide that describes major
revenue sources available to the City of Tukwila.
d. Revenue sources should be reviewed in off -budget years to accountfor inflation,
to stay in line with market, or to ensure cost recovery at a prescribed level
depending on the revenue source.
Section 4. Expenditures
Cross references:
- Purchasing Policy (Resolution TBD)
- Procurement Card Policy (Resolution No. 1750)
- Expense Reimbursement Policy (Resolution No. 1874)
a. The City shall maintain expenditure categories according to state statute and
administrative regulation known as the State Auditor's Budgeting, Accounting,
and Reporting System (BARS).
b. Operating expenditures within funds must be supported by the operating
revenues generated by that fund.
c. Purchasing will be conducted with appropriate internal controls, observe fair and
ethical business practices, and use wise and prudent judgement in the
expenditure of public funds.
Section 5. Grants
Cross references: Grant Policy/Procedure in progress
a. The City shall, whenever practical and advantageous, pursue grant funding. All
potential grants shall be examined carefully for matching requirements, and to
determine whether programs must be continued with local resources after grant
funds are exhausted.
b. Staff shall obtain approval from the appropriate City Council Committee before
applying for grants requiring a local match, and staff shall obtain City Council
approval prior to accepting grant agreements in amounts above the Mayor's
signing authority.
Section 6. Capital Improvement Program (CIP)
a. Transportation improvements will be coordinated with related improvements such
as utility, landscaping, sidewalks, etc.
b. Whenever feasible, capital improvements shall be coordinated with related
improvements of adjacent jurisdictions.
c. Capital Improvement Program projects shall, whenever possible, take advantage
of grants, loans or other financing external to the City. If the proposed grants or
mitigation are either not funded or are reduced, the City Council will reevaluate
the respective project on the basis of its value and priority level placement in the
Capital Improvement Program.
Financial Policies 11-30-20
10
Page 2 of 5
Section 6. Capital Improvement Program (CIP) (continued)
d. Residential streets with safety issues, high trafficvolumes, high pedestrian activity
and poor roadway conditions will be considered the highest priority projects.
e. Residential street designs will follow basic designs for arterials, collectors, and
local access streets. Designs to accommodate individual properties shall be
avoided.
f. Design of connecting streets is strongly encouraged.
g. For City -scheduled projects located on residential streets, the City will require the
undergrounding of new electrical and communication facilities pursuantto TMC
Chapter 11.28.
h. Street and road improvement projects on slopes will include roadside plantings
wherever feasible to help mitigate the land used for roadway and sidewalk
improvements.
i. Donation of the property needed for rights -of -way and easements shall be
pursued.
Latecomer agreements, where appropriate, shall be considered an acceptable
means of funding capital projects, improvements and replacements, in whole or
in part.
k. Right-of-way agreements for cable and electrical services should be utilized to
discourage excessive wiring throughout the City.
I. Current arterial street improvements determined in the six -year CIP may be
funded through a Local Improvement District (LID) or financing external to the
City. The City may participate using operating revenues, grants or bonds based
on health and safety needs or public benefit. The City may participate in the
funding by financing the preliminary engineering design and professional service
costs associated with planning and creating the LID.
m. A majority of property owners on a street may petition the City to set up an LID to
pay for residential street improvement projects, sidewalks and undergrounding of
utilities. The City will evaluate the possibility of paying for the design, preliminary
engineering, construction engineering, and LID formulation. The residents will
pay for undergrounding utilities in the street, undergrounding from the street to
their residence, the actual construction costs, and any improvements on private
property such as rockeries, paved driveways, or roadside plantings.
n. Non -transportation capital projects and improvements should be funded by
operating revenues, grants or bonds as determined in the six -year Financial
Planning Model.
o. Pursuantto TMC Chapters 3.56 and 3.60, the first 1/4 cent Real Estate Transfer
Tax (REST) shall be dedicated to park and open space land acquisition, and the
second 1/4 cent shall be used for arterial streets, along with the parking tax,
u n less th e City Cou ncil enacts otherpriorities consistentwith state law distribution
of REST fu n ds.
Financial Policies 11-30-20 Page 3 of 5
11
Section 6. Capital Improvement Program (CIP) (continued)
p. Street and road improvement projects shall be evaluated for the inclusion of
features that support the City's "Walk and Roll Plan" in order to encourage
walking, bicycling, and use of public transit.
Policies will be reviewed annually and in concert with the adoption of growth
management policies to ensure continuity.
r. Transportation impact fees shall be collected so that "growth may pay for growth"
and growth -caused improvements may be constructed.
q•
Section 7. Enterprise Funds
a. Utility fund expenditures shall be fully supported by their own rates, fees, and
charges and notsubsidized by the General Fund.
b. Utility rates should be structured to ensure adequate infrastructure development
and replacement.
c. Each Enterprise Fund shall be reviewed bi-annually to ensure a rate structure
adequate to meet its operations, maintenance, and long-term capital
requirements.
d. Enterprise Fund rate increases shall be small, applied frequently, and staggered
to avoid an overly burdensome increase and undue impact in any given year.
e. Enterprise Fund rate increases of external agencies will be passed through to the
customer.
f. Infrastructure improvements such as water reuse should considerconservation of
resources such as water and electricity.
Section 8. Debt
Cross references: Debt Policy (Resolution No. 1840)
a. Appropriate management of debt is an important factor in measuring the City's
financial performance and condition.
Section 9. Reserves
a. Prudentfinancial managementdictates that some portion of fundsavailableto the
City be reserved for future use.
b. At the close of each fiscal year, the General Fund unassigned balance shall equal
or exceed 18% and the Contingency Fund reserve balance shall equal or exceed
10% of the previous year General Fund revenue, exclusive of significant non -
operating, non -recurring revenues such as real estate sales or transfers in from
other funds.
Financial Policies 11-30-20 Page 4 of 5
12
Section 9. Reserves (continued)
c. At the close of each fiscal year, the unrestricted balances of the Enterprise Funds
shall equal or exceed 20% of the previous year revenue, exclusive of the effects
of GASB Statement 68, as well as significant non -operating, non -recurring
revenues such as real estate sales, transfers in from otherfunds or debt proceeds.
d. Use or draw down of minimum balances shall occur only upon recommendation
of City Administration and approval by City Council through a resolution. Should
use or draw down occur, the City Administration shall establish a plan, no later
than the end of the fiscal year following the year of decline, to restore the fund
balance to the prescribed minimum level. The plan shall be presented to and
approved by the City Council.
e. A One-time Revenue Reserve shall be established and maintained in the
Contingency Fund. The One-time Revenue Reserve shall be credited annually
with 10% of the prior year one-time revenues to the extent General Fund surplus
for the year is sufficientto cover the reserve funding. Use of the reserve shall
occur only upon recommendation by City Administration and approval by City
Council resolution.
f. The City shall maintain a reserve in each of its self -insured health care funds in
an amount equal to 1.5 times, or 150%, of the actuarially determined IBNR
(incurred but not reported) balance. Use of the reserve shall occur only upon
recommendation by City Administration and approval by City Council resolution.
Section 10. Investments
(Cross references: TMC 3.28, Resolution 1828,
a. The City will strive to maximize the return on its investments with the primary
objective of preserving capital in accordance with city policy and prudent
investment practices.
Section 11. Minimum Reporting Requirements
a. The Finance Director shall provide a financial status update at least quarterly.
b. City Administration shall provide the City Council with financial reports that reflect
actual performance in various expenditures and revenues.
c. City Administration shall provide the City Council with a quarterly report of all
newly -executed contracts, including the amount, responsible department, scope
of work, and expiration date.
d. Once the annual audit is complete, City Administration shall provide a report to
the City Council showing compliance with the Financial Reserve Policy.
Financial Policies 11-30-20 Page 5 of 5
13
14
City of Tukwila
Thomas McLeod, Mayor
Finance Department - Vicky Carlsen, Director
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
CC: Mayor McLeod
FROM: Vicky Carlsen, Finance Director
BY: Tony Cullerton, Deputy Finance Director
DATE: February 26, 2024
SUBJECT: December 2023 General Fund Departmental Budget-to-Actuals Report
SUMMARY
The purpose of the December 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
December 2023 report is based on financial data available as of January 24, 2023, for the period
ending December 31, 2023.
While we do not anticipate material changes to the numbers, this report is preliminary and not
considered the year-end final report. The main difference is that this preliminary report covers
transactions through the end of the year but does not include some adjustments and activities
we do at the end of the year. We bring this report forward within the standard timeframe as each
of the monthly General Fund expenditure reports for the purposes of timeliness. However, there
are additional activities we do before we complete the year-end final report. At the end of the
year, we make certain adjustments and entries to complete the Annual Comprehensive Financial
Report (ACFR). The ACFR is audited by the Washington State Auditor's Office. Some of the
activities we do at the end of the year include making journal entries and accounting for
transactions that happened in 2023 but the money came in or went out in 2024. We also handle
grant reimbursements from the last quarter, which may be requested in January but not received
until February. To get a bit technical, the preliminary report is prepared on cash basis
transactions, while the year-end report uses accrual accounting, which involves accounting for
transactions when they're incurred, not necessarily when the cash changes hands.
Tukwila City Hal! • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov
15
INFORMATIONAL MEMO
February 12, 2024
Page 2
Expenditures
Preliminary results show that all departments will finish the year within budget. General Fund
departmental expenditures totaled $66.9 million through December, which is $4.2 million below
budget. Department 20, which transfers to other funds, reported $6.3 million in expenditures.
This number reflects transactions for debt payments and interfund activity. In total the General
Fund activity as of the end of December was $73.2 million, which is below budget by $4.7 million.
However, due to ongoing labor negotiations, the $4.7 million dollars under budget does not
represent savings.
Budget
As of the end of December, preliminary results show that all departments operated within their
allocated budgets.
2023 Compared to 2022
Two departments finished the year with total expenditures increasing by over $1,000,000, when
compared to last year. However, in both cases, the increases were anticipated, approved, and
previously budgeted for. Administrative Services increase is a result of the computer/laptop
purchases for the Chromebooks, related to the Private LTE project. These expenditures will be
reimbursed by a state grant. The increases in Police are due to salaries, OT, Supplies, and Tech
Services. Salaries and OT are a result of 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 December 2023:
DEPARTMENT
BUDGET
ACTUAL
2023
Annual
2023
Allocated
2021
2022
2023
Allocated Budget
vs Actual
OVER/(UNDER)
%
Expendec,
$ Change
% Change
2022/2023
City Council
384,889
384,889
338,693
356,579
376,640
(8,249)
97.9%
20,062
5.6%
Mayor's Office
2,405,667
2,405,667
2,152,513
2,176,819
2,345,673
(59,994)
97.5%
168,855
7.8%
Administrative Services
6,897,844
6,897,844
5,005,893
4,873,710
6,502,512
(395,332)
94.3%
1,628,802
33.4%
Finance Department
3,498,642
3,498,642
2,434,453
3,065,214
3,205,237
(293,405)
91.6%
140,023
4.6%
Rec Dept / Parks Maint
5,324,885
5,324,885
4,225,108
4,846,653
5,106,385
(218,501)
95.9%
259,731
5.4%
Community Dev
5,018,180
5,018,180
3,910,667
4,273,322
4,565,291
(452,890)
91.0%
291,968
6.8%
Municipal Court
1,741,340
1,741,340
1,209,940
1,565,412
1,631,201
(110,139)
93.7%
65,790
4.2%
Police Department
22,767,943
22,767,943
17,927,963
18,868,518
21,082,633
(1,685,310)
92.6%
2,214,115
11.7%
Fire Department
15,518,620
15,518,620
13,471,379
15,158,419
14,916,898
(601,722)
96.1%
(241,521)
-1.6%
PW Dept / Street Maint
7,574,986
7,574,986
6,583,077
7,000,206
7,151,911
(423,075)
94.4%
151,705
2.2%
Subtotal
71,132,998
71,132,998
57,259,686
62,184,851
66,884,381
(4,248,617)
94.0%
4,699,530
7.6%
Non Departmental
6,811,032
6,811,032
5,644,523
10,176,398
6,340,550
(470,482)
93.1%
(3,835,848)
-37.7%
Total Expenditures
77,944,030
77,944,030
62,904,209
72,361,249
73,224,931
(4,719,099)
93.9%
863,682
1.2%
% of Year 100.0%t
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
16
INFORMATIONAL MEMO
February 12, 2024
Page 3
General Fund departments limited costs increases to 7.6% over last year, at a time when CPI
was 9.5%. The increases in expenditures were identified ahead of time and budgeted for.
The Bar graph below displays Year to Date Department Expenditures Compared to Budget as
of December 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 15,000 20,000 25,000
Thousands
■ Actual Expenditures ■ Allocated Budget
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.
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
17
INFORMATIONAL MEMO
February 12, 2024
Page 4
Budget by Category
All categories successfully concluded the fiscal year without exceeding the budget. In summary,
the General Fund closed the year at 94% of its budget. The year -over -year spending change
resulted in an increase of $863,682, equivalent to 1.2%. It is important to emphasize that part of
the reduction in expenditures is linked to the ongoing labor negotiations extending into the 2024
year. Nonetheless, this should not undermine the departments' dedication to fiscal responsibility,
as they diligently scrutinized all expenses throughout the entire year.
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
18
INFORMATIONAL MEMO
February 12, 2024
Page 5
General Fund
City of Tukwila
General Fund Expenditures
Year -to -Date as of Dec 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
25,787,017
25,787,017
27,887,462
30,114,781
23,710,308
(2,076,709)
91.9%
(6,404,473)
(21.3%)
Extra Labor
769,106
769,106
206,427
404,565
636,214
(132,892)
82.7%
231,648
57.3%
Overtime
755,184
755,184
2,274,124
2,603,186
1,538,172
782,988
203.7%
(1,065,014)
(40.9%)
Holiday Pay
250,000
250,000
429,309
490,172
248,642
(1,358)
99.5%
(241,530)
(49.3%)
FICA
2,110,085
2,110,085
1,774,345
1,917,780
1,897,811
(212,274)
89.9%
(19,969)
(1.0%)
Pension-LEOFF
635,408
635,408
953,421
1,022,802
627,753
(7,655)
98.8%
(395,049)
(38.6%)
Pension-PERS/PSERS
1,744,920
1,744,920
1,518,973
1,469,268
1,502,071
(242,849)
86.1%
32,802
2.2%
Industrial Insurance
586,182
586,182
892,567
689,029
417,665
(168,517)
71.3%
(271,364)
(39.4%)
Medical & Dental
5,798,434
5,798,434
6,901,878
7,312,010
5,407,325
(391,109)
93.3%
(1,904,685)
(26.0%)
Unemployment
0
0
45,019
37,205
13,641
13,641
-
(23,565)
(63.3%)
Uniform/Clothing
33,290
33,290
6,732
9,085
4,926
(28,364)
14.8%
(4,159)
(45.8%)
Total Salaries & Benefits
38,469,625
38,469,625
42,890,258
46,069,884
36,004,526
(2,465,099)
93.6%
(10,065,358)
(21.8%)
Supplies
769,214
769,214
668,288
612,325
543,629
(225,585)
70.7%
($68,696)
(11.2%)
Repairs & Maint Supplies
450,010
450,010
254,967
383,135
461,096
11,086
102.5%
$77,961
20.3%
Resale Supplies
2,500
2,500
0
859
0
(2,500)
-
($859)
-
Small Tools
213,203
213,203
107,173
179,442
211,460
(1,743)
99.2%
$32,018
17.8%
Technology Supplies
343,214
343,214
70,391
96,274
323,566
(19,647)
94.3%
$227,292
236.1%
Fleet Supplies
7,000
7,000
3,787
6,687
7,738
738
110.5%
$1,051
15.7%
Total Supplies
1,785,141
1,785,141
1,104,606
1,278,721
1,547,489
(237,652)
86.7%
$268,768
21.0%
Professional Services
23,007,332
23,007,332
6,683,905
6,901,424
21,601,247
(1,406,085)
93.9%
$14,699,823
213.0%
Communications
440,528
440,528
448,927
515,789
473,134
32,605
107.4%
($42,655)
(8.3%)
Professional Dev
571,050
571,050
394,404
395,311
426,601
(144,449)
74.7%
$31,290
7.9%
Advertising
66,300
66,300
21,629
44,856
46,861
(19,439)
70.7%
$2,005
4.5%
Rentals
1,298,060
1,298,060
426,952
188,473
1,190,715
(107,345)
91.7%
$1,002,242
531.8%
Technology Services
1,031,264
1,031,264
888,918
786,143
1,229,500
198,235
119.2%
$443,357
56.4%
Utilities
2,244,354
2,244,354
2,251,250
2,366,955
2,309,165
64,811
102.9%
($57,790)
(2.4%)
Repairs & Maint Svs.
1,286,418
1,286,418
1,768,899
2,567,904
1,535,753
249,335
119.4%
($1,032,152)
(40.2%)
Miscellaneous
687,899
687,899
243,434
626,722
467,045
(220,854)
67.9%
($159,677)
(25.5%)
Total Services
30,633,204
30,633,204
13,128,317
14,393,577
29,280,019
(1,353,185)
95.6%
14,886,441
103.4%
Capital Outlay -Land
0
0
0
0
0
0
-
0
-
Other Improvements
0
0
12,331
0
0
0
-
0
-
Machinery&Equipment
1,227,831
1,227,831
124,174
289,145
1,097,520
(130,311)
89.4%
808,375
279.6%
Construction Projects
0
0
0
0
0
Total Capital Outlay
1,227,831
1,227,831
136,506
289,145
1,097,520
(130,311)
89.4%
709,676
183.0%
Transfers Out
5,828,229
5,828,229
5,644,523
10,231,223
5,295,378
(532,851)
90.9%
(4,935,846)
(48.2%)
Total Non Operating Expen
5,828,229
5,828,229
5,644,523
10,231,223
5,295,378
(532,851)
90.9%
(4,935,846)
(48.2%)
Total Expenditures
77,944,030
77,944,030
62,904,209
72,262,551
73,224,931
(4,719,099)
93.9%
863,682
1.2%
% of Year
100.0%
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
19
20
City of Tukwila
Thomas McLeod, Mayor
Finance Department - Vicky Carlsen, Director
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
CC: Mayor McLeod
FROM: Vicky Carlsen, Finance Director
BY: Tony Cullerton, Deputy Finance Director
DATE: February 26, 2024
SUBJECT: January 2024 General Fund Departmental Budget-to-Actuals Report
SUMMARY
The purpose of the January 2024 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 January
2024 report is based on financial data available as of February 1, 2024, for the period ending
January 31, 2024.
Expenditures
General Fund departmental expenditures totaled $4.7 million through January, which is $1.9
million below the allocated budget of $6.6 million. Department 20, which transfers to other funds,
reported minimal activity for the month. In total the General Fund activity as of the end of January
was $4.7 million, which is below the allocated budget by $1.9 million. However, due to ongoing
labor negotiations, the $1.9 million dollars under budget does not represent savings.
Allocated Budget
As of the end of January, all departments are under their allocated budgets.
% Expended
The end of January represents 8.3% of the year completed. Two departments finished the month
with a % Expended greater than 8.3%. Both Finance and Public Works/Street Maintenance
ended the month higher than 8.3%. The increase for both departments is attributed to the Risk
Management Program. The annual insurance payment to Washington Cities Insurance Authority
(WCIA) is due at the beginning of the year. This single payment expenditure was anticipated,
approved, and budgeted. The fact that the cost to the Program was previously anticipated is
demonstrated by both departments remaining within their allocated budget.
Tukwila City Hal! • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov
21
INFORMATIONAL MEMO
February 26, 2024
Page 2
2024 Compared to 2023
When comparing the current year's spending to the previous year's spending, two departments
finished the month with an increase greater than $50k and 5%. Finance is up over the same
period last year by $208,162 (31%). Fire is up over the same period last year by $96k (37%).
The escalation in expenditure in comparison to the prior year is attributed to increased costs
within the Risk Management Program. Specifically, the premiums associated with WCIA
insurance have surged by 35% compared to the previous year. Factors contributing to this
increase include inflationary pressures, amplified judgment awards, and instances of no-fault
judgments where plaintiffs are awarded judgments despite no culpability on the part of the entity.
Departmental Variances
Year to Date Department Expenditures Through January 2024:
DEPARTMENT
BUDGET
ACTUAL
2024
Annual
2024
Allocated
2021
2022
2023
Allocated Budget
vs Actual
OVER/(UNDER)
%
Expender.,
$ Change
% Change
2023/2024
City Council
393,067
32,755
27,414
28,480
14,693
(18,062)
3.7%
(13,787)
-48.4%
Mayor's Office
2,405,513
200,460
113,608
177,105
118,273
(82,187)
4.9%
(58,832)
-33.2%
Administrative Services
5,621,624
440,906
332,386
429,146
317,213
(123,693)
5.6%
(111,933)
-26.1%
Finance Department
4,625,307
987,154
644,461
666,599
874,761
(112,393)
18.9%
208,162
31.2%
Rec Dept / Parks Maint
5,808,439
471,099
252,039
347,769
224,834
(246,265)
3.9%
(122,936)
-35.3%
Community Dev
5,063,237
421,936
385,765
329,085
196,871
(225,065)
3.9%
(132,214)
-40.2%
Municipal Court
1,859,399
154,950
118,865
137,988
95,530
(59,420)
5.1%
(42,458)
-30.8%
Police Department
24,212,875
2,455,694
1,541,077
2,174,792
1,763,342
(692,352)
7.3%
(411,450)
-18.9%
Fire Department
15,605,441
362,921
1,235,466
263,215
359,439
(3,482)
2.3%
96,224
36.6%
PW Dept /Street Maint
8,002,142
1,037,849
713,391
872,388
748,172
(289,677)
9.3%
(124,216)
-14.2%
Subtotal
73,597,044
6,565,724
5,364,470
5,426,567
4,713,127
(1,852,597)
6.4%
(713,440)
-13.1%
Non Departmental
5,865,345
0
0
0
899
899
0.0%
899
P,r.
Total Expenditures
79,462,388
6,565,724
5,364,470
5,426,567
4,714,026
(1,851,698)
5.9%
(712,541)
•13.1%
% of Year 8.3%t
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
22
INFORMATIONAL MEMO
February 26, 2024
Page 3
The Bar graph below displays Year to Date Department Expenditures Compared to Budget as
of January 31, 2024.
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
■ Actual Expenditures ■ Allocated Budget
0 500 1,000 1,500 2,000 2,500 3,000
Thousands
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
23
INFORMATIONAL MEMO
February 26, 2024
Page 4
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. 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
All Category totals are within their allocated budget.
% Expended
Professional Services is reporting 9.8% at 8.3% of the year. The increase in due to the Insurance
Liability costs of the Risk Management Program.
Professional Development — Mayor's office had a significant increase in Membership costs.
Large examples include Clean Air Assessment, AWC, and the South Cities Association.
Technology Svs — PD Software Maintenance Contract with Motorola Spillman Solutions.
$ Change 2022/2023
The rise in Professional Services has been explained as the increase in cost of the Risk
Management Program.
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
24
INFORMATIONAL MEMO
February 26, 2024
Page 5
General Fund
City of Tukwila
General Fund Expenditures
Year -to -Date as of Jan 31, 2024
BUDGET
ACTUAL
COMPARISON OF RESULTS
2023
Annual
2023
Allocated
2021
2022
2023
Actual Budget
vs Allocated
OVERUNDER)
/(
%
Expended
Change
$2022/2023
%
2022/2023
Salaries
28,083,897
2,340,325
2,454,294
1,942,606
1,055,910
(1,284,415)
3.8%
(886,697)
(45.6%)
Extra Labor
794,977
66,248
21,795
29,116
15,355
(50,893)
1.9%
(13,761)
(47.3%)
Overtime
797,180
66,432
233,720
146,202
67,994
1,562
8.5%
(78,208)
(53.5%)
Holiday Pay
250,000
20,833
765
0
468
(20,365)
0.2%
468
N/A
FICA
2,299,308
191,609
155,507
158,801
85,889
(105,720)
3.7%
(72,913)
(45.9%)
Pension-LEOFF
690,494
51,375
73,834
43,799
23,648
(27,727)
3.4%
(20,150)
(46.0%)
Pension-PERS/PSERS
1,877,476
156,456
119,230
127,576
60,439
(96,017)
3.2%
(67,137)
(52.6%)
Industrial Insurance
616,066
51,338
39,511
32,502
16,700
(34,638)
2.7%
(15,802)
(48.6%)
Medical & Dental
5,818,916
484,909
608,100
449,808
487,091
2,182
8.4%
37,283
8.3%
Unemployment
0
0
0
0
0
0
-
0
N/A
Uniform/Clothing
33,504
2,792
0
0
250
(2,542)
0.7%
250
N/A
Total Salaries & Benefits
41,261,818
3,432,317
3,706,755
2,930,411
1,813,745
(1,618,572)
4.4%
(1,116,666)
(38.1%)
Supplies
640,401
53,367
(12,058)
11,254
8,147
(45,220)
1.3%
($3,107)
(27.6%)
Repairs & Maint Supplies
420,705
35,059
0
20,871
28,480
(6,579)
6.8%
$7,609
36.5%
Resale Supplies
2,580
215
0
0
0
(215)
-
$0
-
Small Tools
228,078
19,007
0
16,756
1,030
(17,977)
0.5%
($15,726)
(93.9%)
Technology Supplies
112,364
9,364
0
2,499
734
(8,630)
0.7%
($1,765)
(70.6%)
Fleet Supplies
7,260
605
0
150
386
(219)
5.3%
$237
158.1%
Total Supplies
1,411,387
117,617
(12,058)
51,529
38,777
(78,840)
2.7%
($12,752)
(24.7%)
Professional Services
23,292,740
2,506,320
1,202,877
1,940,255
2,292,247
(214,073)
9.8%
$351,992
18.1%
Communications
468,177
39,015
(200)
14,770
14,622
(24,393)
3.1%
($148)
(1.0%)
Professional Dev
532,851
43,394
70,637
114,606
124,018
80,624
23.3%
$9,412
8.2%
Advertising
66,716
5,560
0
0
0
(5,560)
-
$0
N/A
Rentals
319,003
26,584
5,930
5,912
4,312
(22,272)
1.4%
($1,599)
(27.1%)
Technology Services
1,081,907
83,596
159,407
171,753
296,951
213,355
27.4%
$125,198
72.9%
Utilities
2,387,484
96,741
14,300
41,892
7,716
(89,025)
0.3%
($34,175)
(81.6%)
Repairs & Maint Svs.
1,483,739
123,645
144,732
119,756
104,184
(19,461)
7.0%
($15,572)
(13.0%)
Miscellaneous
701,220
58,435
22,593
35,684
4,242
(54,193)
0.6%
($31,442)
(88.1%)
Total Services
30,333,839
2,983,290
1,620,274
2,444,627
2,848,292
(134,998)
9.4%
403,664
16.5%
Capital Outlay -Land
0
0
0
0
0
0
-
0
-
Other Improvements
0
0
0
0
0
0
-
0
-
Machinery & Equipment
590,000
32,500
49,499
0
13,212
(19,288)
2.2%
13,212
N/A
Construction Projects
0
0
0
0
0
Total Capital Outlay
590,000
32,500
49,499
0
13,212
(19,288)
2.2%
13,212
N/A
Transfers Out
5,865,345
0
0
0
0
0
-
0
N/A
Total Non Operating Expem
5,865,345
0
0
0
0
0
-
0
N/A
Total Expenditures
79,462,389
6,565,724
5,364,470
5,426,567
4,714,026
(1,851,698)
5.9%
(712,542)
(13.1%)
% of Year
8.3%
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
25
26