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HomeMy WebLinkAboutFS 2012-06-19 Item 2A - Update - Financial Planning Model / Capital Improvement ProgramCity of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director DATE: May 30, 2012 SUBJECT: Financial Planning Model Attachment A and Attachment B Review ISSUE Review the layout and content of Attachment A and Attachment B of the Financial Planning Model, through 2012, for use in future financial planning. BACKGROUND Attachment A and Attachment B model the revenue and expenditures of most of the City's governmental funds. The funds included in the model are: Fund Fund Name 000 General Fund 103 Residential Streets 104 Arterial Streets 2 Debt Service 301 Land Acquisition Development 302 Facilities 303 General Government Improvements 304 Fire Improvements The governmental funds excluded from the model are: Fund I Fund Name 105 Contingency Fund 107 Fire Equipment Cumulative Reserve 109 Drug Seizure These funds are excluded from the model because they were established for very specific purposes, and as such, are not available for general government activities. Revenues on Attachment A exclude transfers between the funds included in the model, exclude grant revenue received for capital projects and exclude financing proceeds. Capital expenditures on Attachment B include only those costs paid for from City operations. The amounts exclude expenditures financed through grants and debt proceeds. DISCUSSION The model is used to identify trends, assess the general financial health of the City and to determine amounts available for projects and other special purposes. Line 25 of Attachment A shows the amount of funds available for projects or special purposes after net expenditure for 1 INFORMATIONAL MEMO Page 2 general government services and debt service. The model has been updated with actual amounts for the years 2009, 2010 and 2011 with accounts consistently categorized in each of the years. In the past, categorization of certain accounts has been inconsistent such as sales tax mitigation revenue (originally reported with intergovernmental revenue for 2009, now reported with sales tax revenue). Changes to Attachment A 1. Line 25, Available after Payment of Debt Service, has been added to show the amount available for project or Contingency reserve funding after general government services and debt service has been paid. 2. The line item, Estimated unfunded PERS, has been removed. All reserves deemed necessary, including this reserve, should be incorporated into the reserve policy and should be funded through the Contingency fund. Changes to Attachment B: 3. Transfers to enterprise funds, the Fire Equipment and Drug Seizure funds and additional advancements on the Metropolitan Park District loan have been added to the model to provide more precise and accurate results. Change to Attachment A B: 4. An adjustment column has been added to the right of the 2012 budget column to reflect changes in estimates and their effect on the model. Adjustments have been added to the draft to: a. bring revenues more in line with prior year actual results and anticipated results, b. adjust the debt service to the underlying debt service schedules, c. reduce capital expenditures for General Government Improvements to reflect estimated funding from the King County Flood District for the removal of the Green River temporary levies the Hesco fences and Super Sacks (75% of $1850 budgeted). d. Total expenditures on Attachment B have not been adjusted, since in the past, departments have underspent their budgets by 3 to 4% Next Steps: The model will be updated as more information becomes available through development of the biennial budget. A preliminary Attachment C, containing Capital Improvement projects contemplated for 2013 2018 has been developed and will be discussed with the Committee at a later date. FINANCIAL IMPACT None. For discussion only. RECOMMENDATION Information Only. ATTACHMENTS Draft Attachment A 2009, 2010, 2011 Actuals, 2012 Budget and 2012 Projections Draft Attachment B 2011 Actuals and 2012 Budget W TIN ProjectslCouncil Agenda Items12012\lnfoMemo_Financial Reporting Model, Attachment A B.docx 2 ATTACHMENT A CITY OF TUKWILA TOTAL REVENUES EXPENDITURES Model Years 2013 2018, in 000's 2009, 2010, 2011 Actuals and 2012 Budget Analysis 36 (Accumulated Totals 21,918 20,921 16,397 1 17,092 83 17,175 2013 2018 Financial Planning Model VI l 0513012012 2009 2010 2011 2012 2012 REVENUES (see A-1) Actual Actual Actual Budget ADJ Projected General Revenues 1 Sales Tax 16,656 16,390 17,331 16,248 16,248 2 Property Taxes 12,190 13,189 13,427- 13,868 13,868 3 Utility Taxes 4,359 4,064 4,052 4,840 4,840 4 RGRL 0 0 1,641 1,975 (300) 1,675 5 LID Assessment 0 6 Sale of property 947 0 7 1,300 (300) 1,000 7 Interfund Utility Taxes 1,813 1,498 1,372 1,524 (100) 1,424 8 Gambling Taxes 2,457 1,981 1,472 2,502 (600) 1,902 9 Contract Agreement SCL 1,967 2,071 2,110 2,050 100 2,150 10 Charges /Fees for Services 2,998 4,049 3,938 4,465 (300) 4,165 11 Transfers In Other Funds 1,631 1,696 1,889 1,571 300 1,871 12 Intergovernmental Revenue 2,377 1,166 1,429 894 400 1,294 13 Other Taxes /Miscellaneous 1,293 1,211 1,082 1,313 1,313 14 Subtotal 48,690 47,314 49,751 52,550 (800) 51,750 CAPITAL Dedicated Revenues 15 Real Estate Excise Taxes 257 379 256 201 201 16 Motor Vehicle Taxes 393 394 460 345 345 17 Investment Interest/Misc. 242 131 156 23 23 18 Property Taxes 12 0 (0), 65 65 19 Parking Taxes 156 144 153 111 111 20 Subtotal 1,060 1,047 1,025 745 0 745 21 TOTAL REVENUE AVAILABLE 49,750 48,362 50,776 53,295 (800) 52,495 EXPENDITURES 22 Operations Maintenance 46,472 45,104 44,780 46,615 0 46,615 (See Attachment B) 23 Admin /Engineering Overhead 497 552 516 403 403 24 Debt Service 2,611 2,307 2,569 2,909 504 3,413 25 Available after Payment of DS,' 170 399 2,911 3,368 (1,304) 2 26 Transfer to Contingency Fund 0 0 566 3,000 0 3,000 Subtotal Available 170 399 2,344 368 (1,304) (935) Cabital- Attachment C 27 Residential Streets 0 300 (0) 650 650 28 Arterial Streets 5,407 295 6,089 (3,715) (3,715) 29 Park Acq /Development (484) 272 99 459 459 30 Facilities 160 13 9 87 87 31 General Govt Improvmntsl' 562 517 830 2,242 (1,387) 855 32 Fire Improvements (0) (0) (158) (50) (50) 33 Subtotal Capital 5,646 1,396 6,869 (327) (1,387) (1,714) 34 Balance by Year (5,475) (997) (4,524) 696 83 779 35 Carryover 27,394 21,918 20,921 16,397 16,397 36 (Accumulated Totals 21,918 20,921 16,397 1 17,092 83 17,175 2013 2018 Financial Planning Model VI l 0513012012 ATTACHMENT B City of Tukwila General Fund Operations Maintenance Expenditures Model Years 2013 2018, in 000's 2011 Actuals and 2012 Budget Analysis 4 2013 2018 Financial Planning Model XI EXPENDITURES City Council Mayor, Boards Human Resources Finance City Attorney Parks /Recreation Prk Mnt Community Development Municipal Court Police Fire Information Technology Public Works /Streets Dept. 20 Miscellaneous Transfers to Water Fund Transfers to Golf Course Transfers to Fire Equipment. Transfers to Drug Seizure Loan to MPD TOTAL EXPENDITURES 2011 2012 2012 Actuals 2012 Budget ADJ Projected 244 270 2,218 2,544 488 573 1,447 1,603 648 543 3,496 3,465 2,560 2,859 9451 994 14,296' 14,198 9,814 10,308 1,047 1,154 5,718 6,290 589 553 98 106 775 225 130 130 75 75 191 725 44,780 46,615 05/30/2012