HomeMy WebLinkAboutFIN 2024-02-26 Item 1C - Budget - Monthly General Fund Expenditure Update: December 2023 and January 2024City 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
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