HomeMy WebLinkAboutFIN 2024-03-25 Item 1B - Report - Febriaru 2024 General Fund ExpenditureCity 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: March 25, 2024
SUBJECT: February 2024 General Fund Departmental Budget-to-Actuals Report
SUMMARY
The purpose of the February 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
February 2024 report is based on financial data available as of March 1, 2024, for the period
ending February 29, 2024.
Expenditures
General Fund departmental expenditures totaled $8.9 million through February, which is $2.2
million below the allocated budget of $11.2 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
February was $9 million, which is below the allocated budget by $2.2 million. However, due to
ongoing labor negotiations, the $2.2 million dollars under budget does not represent savings.
Allocated Budget
As of the end of February, all departments are under their allocated budgets.
Expended
The end of February represents 16.7% of the year completed. Finance is the only department
that finished the month with a % Expended greater than 16.7%. The 27% spending in Finance
is a combination of Professional Services, Technical Services, and Machinery & Equipment.
Professional Services saw a significant increase in the Risk Management program. This program
is responsible for 98% of the cost in Professional Services. The increase in Technical Services
is Software Maintenance contracts. Machinery & Equipment costs are Finance Enterprise
Milestone payments and the replacement cost for a new Folding Machine.
2024 Compared to 2023
Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov
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INFORMATIONAL MEMO
February 26, 2024
Page 2
When comparing the current year's spending to the previous year's spending, A few
departments reported large swings is spending. The Mayor's Office reported a decline of 34%
when compared to the same period last year. The decline is in both Attorney Services and Public
Defense expenditures. The 44% budgeted increase in Finance has been previously explained
under the % Expended section of the memo. The large decline reported in Fire is a timing issue.
Last year the City paid the Q1 invoice in February. Based on the allocated budget, we anticipate
a $3.8 million payment to the Regional Fire Authority (RFA) for contracted services in the month
of March.
Departmental Variances
Year to Date Department Expenditures Through January 2024:
BUDGET
ACTUAL
2024
2024
2022
2023
2024
Allocated Budget
vs Actual
%
Expendec
$ Change % Change
DEPARTMENT
Annual
Allocated
OVER/(UNDER)
2023/2024
City Council
393,067
65,511
54,853
55,773
50,409
(15,102)
12.8%
(5,364)
-9.6%
Mayor's Office
2,405,513
400,919
275,003
454,468
300,579
(100,340)
12.5%
(153,889)
-33.9%
Administrative Services
5,621,624
964,500
685,140
792,800
735,932
(228,567)
13.1%
(56,867)
-7.2%
Finance Department
4,625,307
1,279,668
831,005
871,125
1,260,794
(18,874)
27.3%
389,669
44.7%
Rec Dept / Parks Maint
5,808,439
942,198
584,521
707,264
601,602
(340,596)
10.4%
(105,662)
-14.9%
Community Dev
5,063,237
843,873
710,773
671,131
560,456
(283,417)
11.1%
(110,675)
-16.5%
Municipal Court
1,859,399
309,900
244,465
267,167
254,824
(55,075)
13.7%
(12,342)
-4.6%
Police Department
24,212,875
4,433,574
3,058,958
3,676,374
3,595,082
(838,493)
14.8%
(81,293)
-2.2%
Fire Department
15,605,441
384,921
2,346,086
3,984,579
378,904
(6,017)
2.4%
(3,605,675)
-90.5%
PW Dept / Street Maint
8,002,142
1,573,617
1,061,423
1,255,585
1,234,557
(339,060)
15.4%
(21,028)
-1.7%
Subtotal
73,597,044
11,198,680
9,852,227
12,736,267
8,973,140
(2,225,540)
12.2%
(3,763,127)
-29.5%
Non Departmental
5,865,345
0
0
0
18,953
18,953
0.3%
18,953
N/A
Total Expenditures
79,462,388
11,198,680
9,852,227
12,736,267
8,992,093
(2,206,587)
11.3%
(3,744,174)
-29.4%
% of Year 16.7%
General Fund by Category
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
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INFORMATIONAL MEMO
February 26, 2024
Page 3
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 by category 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 except Capital Outlay are within their allocated budget. There was no Capital
spending for the period of Jan — Feb in 2023. The expenditures incurred during this period in
2024 were for capital purchases that support a variety of programs, including Financial Reporting
& Analysis, A/P, A/R and Misc Billing. The large decline in Salaries is due to ongoing labor
negotiations and should not be interpreted as cost savings.
% Expended
The end of February represents 16.7% of the year. The only category that is reporting
expenditures greater than 16.7% YTD is Machinery & Equipment. These are the costs previously
explained as capital software milestone payments and the purchase to replace an outdated
folding machine.
$ Change 2023/2024
When comparing changes in spending between 2023 and 2024 there were no large increases
at the category level. However, there were a couple of significant decreases. Professional
Services decreased significantly from the same period last year. The decrease is due to the
timing of when the City makes its 1st quarter contract payment to the RFA. In 2023, the 1st quarter
payment was made in February. In 2024, the payment is budgeted for the month of March.
Communications reflects an increase of 143% over the same period last year. However, the
dollar amount is less than $50k. While the % is high, the total dollar amount is immaterial. This
purchase is for a Business Reply Mail permit for the Business Systems Management Support
program within the City Clerk's Office. Rentals are up 49%. Similar to Communications, while
the % of increase seems high, the dollar amount is low. The increase in Rentals is an expenditure
for training in the Public Safety program. Specifically, EVOC track fees. The increase in
Machinery & Equipment has been explained above in the % Expended section of this memo.
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
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INFORMATIONAL MEMO
February 26, 2024
Page 4
General Fund
City of Tukwila
General Fund Expenditures
Year -to -Date as of Feb 29, 2024
I 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
28,083,897
4,680,650
4,878,147
3,842,367
3,126,737
(1,553,913)
11.1%
(715,630)
(18.6%)
Extra Labor
794,977
132,496
41,959
54,499
59,792
(72,704)
7.5%
5,293
9.7%
Overtime
797,180
132,864
432,520
291,849
218,463
85,599
27.4%
(73,386)
(25.1%)
Holiday Pay
250,000
41,667
2,885
1,935
623
(41,044)
0.2%
(1,312)
N/A
FICA
2,299,308
383,218
310,328
315,667
257,275
(125,943)
11.2%
(58,392)
(18.5%)
Pension-LEOFF
690,494
102,749
146,850
85,931
73,249
(29,500)
10.6%
(12,682)
(14.8%)
Pension-PERS/PSERS
1,877,476
312,912
239,320
253,845
181,211
(131,701)
9.7%
(72,634)
(28.6%)
Industrial Insurance
616,066
102,677
99,101
63,390
55,067
(47,610)
8.9%
(8,323)
(13.1%)
Medical & Dental
5,818,916
969,819
1,224,582
894,256
981,781
11,962
16.9%
87,525
9.8%
Unemployment
0
0
168
0
0
0
-
0
N/A
Uniform/Clothing
33,504
5,584
0
242
635
(4,949)
1.9%
393
N/A
Total Salaries & Benefits
41,261,818
6,864,635
7,375,860
5,803,982
4,954,832
(1,909,803)
12.0%
(849,149)
(14.6%)
Supplies
640,401
106,734
5,172
45,824
52,194
(54,540)
8.2%
$6,370
13.9%
Repairs & Maint Supplies
420,705
70,118
13,448
34,599
57,454
(12,663)
13.7%
$22,855
66.1%
Resale Supplies
2,580
430
0
0
0
(430)
-
$0
-
Small Tools
228,078
38,013
3,306
22,521
9,215
(28,799)
4.0%
($13,306)
(59.1%)
Technology Supplies
112,364
18,727
3,659
2,741
12,426
(6,301)
11.1%
$9,685
353.4%
Fleet Supplies
7,260
1,210
0
740
619
(591)
8.5%
($121)
(16.4%)
Total Supplies
1,411,387
235,232
25,584
106,424
131,908
(103,324)
9.3%
$25,483
23.9%
Professional Services
23,292,740
3,029,313
1,578,383
5,974,870
2,774,924
(254,389)
11.9%
($3,199,947)
(53.6%)
Communications
468,177
78,029
37,111
29,816
72,576
(5,454)
15.5%
$42,759
143.4%
Professional Dev
532,851
86,663
99,662
150,198
164,710
78,047
30.9%
$14,512
9.7%
Advertising
66,716
11,120
0
50
0
(11,120)
-
($50)
N/A
Rentals
319,003
53,167
27,462
10,852
16,202
(36,965)
5.1%
$5,350
49.3%
Technology Services
1,081,907
217,880
240,306
275,610
286,318
68,438
26.5%
$10,708
3.9%
Utilities
2,387,484
193,481
31,341
118,684
114,872
(78,609)
4.8%
($3,812)
(3.2%)
Repairs & Maint Svs.
1,483,739
247,290
323,102
208,616
259,910
12,621
17.5%
$51,295
24.6%
Miscellaneous
701,220
116,870
63,917
57,165
39,449
(77,421)
5.6%
($17,716)
(31.0%)
Total Services
30,333,839
4,033,813
2,401,284
6,825,861
3,728,960
(304,853)
12.3%
(3,096,900)
(45.4%)
Capital Outlay -Land
0
0
0
0
0
0
-
0
-
Other Improvements
0
0
0
0
0
0
-
0
-
Machinery & Equipment
590,000
65,000
49,499
0
176,392
111,392
29.9%
176,392
N/A
Construction Projects
0
0
0
0
0
Total Capital Outlay
590,000
65,000
49,499
0
176,392
111,392
29.9%
176,392
N/A
Transfers Out
5,865,345
0
0
0
0
0
-
0
N/A
Total Non Operating Expeny
5,865,345
0
0
0
0
0
-
0
N/A
Total Expenditures
79,462,389
11,198,680
9,852,227
12,736,267
8,992,092
(2,206,588)
11.3%
(3,744,174)
(29.4%)
% of Year
Riverton Park United Methodist Church Response (RPUMC)
16.7%
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
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INFORMATIONAL MEMO
February 26, 2024
Page 5
Total costs to date are slightly over $217,072. These expenditures are a combination of
consulting services/contracts, employee time, and services.
Total Costs (Snapshot)
SNAPSHOT
Object 2023 $ 2024 $ Total ok
Consulting/Contracts 107,598 5,000 112,598 51%
Salaries/Benefits 55,494 39,007 94,501 43%
Services 0 14,222 14,222 6%
Total 163,092 58,229 221,321 100%
The City has entered into four contracts for service. The total contract amount is currently
$192,948. Of that total, $112,598 has been spent, leaving a remaining encumbered amount of
$80,350.
CONTRACTS
#1 Fencing
Initial Contract Amount 15,000
Change Orders 5,000
Total Contract Amount 20,000
Amount Invoiced 18,734
Amount Remaining 1,266
=2 I - 2 Strategies
Initial Contract Amount 39,000
Change Orders 61,000
Total Contract Amount 100,000
Amount Invoiced 77,898
Amount Remaining 22,102
#3 Brad Harwood Communications
Initial Contract Amount 60,000
Change Orders 0
Total Contract Amount 60,000
Amount Invoiced 15,966
Amount Remaining 44,034
#4 Cascadia Cleaning 8& Removal
Initial Contract Amount 12,948
Change Orders 0
Total Contract Amount 12,948
Amount Invoiced 0
Amount Remaining 12,948
Contracts Summary
Initial Contract Amount 126,948
Change Orders 66,000
Total Contract Amount 192,948
Amount Invoiced 112,598
Amount Remaining - Encumbered 80,350
TOTAL CONTRACT COSTS 112,598
Encumbrances 80,350
CONTRACT GRAND TOTAL 192,948
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
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INFORMATIONAL MEMO
February 26, 2024
Page 6
Several departments within the City are dedicating staff time to the RPUMC project. Below is a
breakdown at the department level.
Cost by Department
Department 2023 $ 2024 $ Total
Admin Svcs -Administration 123 140 263
City Council 587 352 939
Comm Dev Administration 6,140 4,770 10,910
Community Service &
Engagement 2,724 607 3,331
Economic Development 4,009 424 4,432
Emergency Mgmt. 7,317 731 8,047
Finance Department 100 0 100
Golf Course Operations 0 36 36
Mayor's Office Administration 4,240 4,080 8,319
Non -Dept General Government 107,598 19,294 126,892
Park Maintenance 0 611 611
PD Recruiting & Hiring 61 0 61
Police Dept Administration 8,740 7,033 15,773
Recreation Dept -Administration 21,454 19,731 41,184
Tourism -Basic Operations 0 424 424
Total 163,092 58,229 221,321
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
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INFORMATIONAL MEMO
February 26, 2024
Page 7
Projections
Looking ahead we anticipate the following additional costs.
6 Month Projections
Consulting/Contracts
Future Encumbrances 80,350
Durable Tenting
Initial setup + 28 days 42,000
Four months lease ($25k/Mo.) 100,000
Demobilization + 28 days 37,000
Misc expenditures (6 Mo.) 215,000
Estimated Total 394,000
Salaries/Benefits
Staff Time (6 Mo.) 108,624
Services
Miscellaneous 2,000
Total Projections 584,974
Current Incurred Expenditures 217,071
Expected Total Costs 802,045
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
39