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HomeMy WebLinkAboutCOW 2012-11-26 Item 3.1 - Public Hearing - Ordinance Amending 2011-2012 Biennial Budget COUNCIL AGENDA SYNOPSIS ----------------------------------Initials--------------------------------- ITEMNO. Meehn,g Date Prepared by Ma is review Council review y 11/26/12 PMC 3 (1 ) V 12/03/12 PMC 4A (1 ) ITEM INFORMATION STAFF SPONSOR: PEGGY MCCARTHY ORIGINAL AGENDA DATE: 11/26/12 AGENDA ITEM TITLE An Ordinance amending the 2011-2012 biennial budget. CATEGORY ® Discussion ❑Motion ❑ Resolution ® Ordinance ❑ Bid Award ® Public Hearing ❑ ©tber Mtg Date 11126112 Mtg Date Mtg Date Mtg Date 12/03/12 Mtg Date Mtg Date 11126112 Mtg Date SPONSOR ❑ Council ❑Mayor ❑ HR ❑ DCD ® Finance ❑ Fire ❑ IT ❑ P&R ❑ Police ❑ PW/ SPONSOR'S The City Council is being asked to approve an ordinance amending the 2011-2012 biennial SUMMARY budget for unanticipated costs or projected departmental deficits for fiscal year 2012. This item is scheduled for Council consideration at the 11/26/12 Committee of the Whole and 12/03/12 Regular Council meeting. REVIEWED BY ❑ COW Mtg. ❑ CA&P Cmte ® F&S Cmte ❑Transportation Cmte ❑ Utilities Cmte ❑Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/06/12 COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONSOR/ADMIN. Finance Department COMMI"ITEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: MISCELLANEOUS FUNDING SOURCES,SEE DETAIL Comments: MTG. DATEI RECORD OF COUNCIL ACTION 11/26/12 MTG. DATE ATTACHMENTS 11/26/12 Informational Memorandum dated 11/20/12 (modified after FS meeting) Draft Ordinance 2012 Year-End Budget Summary 2012 Year-End Budget Amendment Worksheet Please bring our preliminary budget/CIP) 12/03/12 1 2 City of Tukwila QD Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Tukwila City Council FROM: Peggy McCarthy, Finance Director DATE: November 20, 2012 SUBJECT: 2012 Year-End Budget Amendment (Amended after FS meeting — changes shown underlined below) ISSUE Adjust the biennial budget to reflect new policies and circumstances, add appropriation to funds at risk of exceeding budget in order to remain in compliance with state law, and reallocate budget authority among General Fund departments to prevent over budget situations, consistent with past City practice. BACKGROUND The budget modifications refine the budget pursuant to Tukwila Municipal Code 3.30.020 and RCW 35A.33.120. The ordinance amending the budget must be passed before the end of the calendar year. The purpose and type of adjustments proposed for the 2012 budget modification are as follows: • Council Decisions /Approvals • Revenue Backed Expenditures • Other budgetary changes for: - Expenditures exceeding budget - Accounting changes - Costs carried over to 2013 On November 1 2012 an Informational Memorandum was prepared with an initial list of budget amendments. After the Finance & Safety Committee packet was prepared, additional budget amendments were identified and an Informational Memorandum was prepared identifying the additional changes. This document incorporates all budget amendments into one memo. DISCUSSION General Fund 000 Additional budget is added to fund the Strategic Plan, provide for additional costs associated with the new firefighter labor agreement and reflect the employee reinstatement stemming from the 2010 reduction in force. The Municipal Court increased staffing by .25 full time equivalents as part of a service initiative whereby probation services are provided to the City of SeaTac by the City's Jail Alternative Specialist. These additional costs are funded through the service fees charged to SeaTac. Certain other General Fund departments experienced higher actual costs than originally estimated due to utility rate increases and other reasons. These increases in budgeted costs are offset by a reduction in the Department 20 transfers-out account resulting in no change to the biennial budget. Additional indirect cost allocation revenue derived from a Public Works overhead charge (see Finance and Safety April 3, 2012 agenda packet for more information) and the revenue generated from the SeaTac probation services is offset by a 3 INFORMATIONAL MEMO Page 2 reduction in sale of capital asset revenue. Actual General Fund revenue for 2012 is not expected to exceed the existing budgeted revenue. To balance the transfers out with the transfers in on a City-wide basis, the original reduction in transfer out to Contingency Fund has changed from a reduction of $781,388 to a reduction of $3,000,000 and a $167,965 transfer out to Debt Service Fund 217 was added (see 9 on the 2012 Year-end Budget Amendment Worksheet). These two changes result in a net addition in ending fund balance of $2,050,647 (see 11 a on the 2012 Year-end Budget Amendment Worksheet). These additional budget amendments have no net effect on the biennial budget. The general obligation bond of $1.1 million dollars to fund the needed upgrades for continued operation of the Tukwila pool is included in this amendment Revenues have been increased to reflect the bond proceeds and expenditures have been increased to reflect the loan to the Tukwila Metropolitan Park District. Contingency Fund 105 Transfer in from the General Fund has been reduced by $3 million. Transfers to the Contingency fund to achieve compliance with the Reserve policy have been incorporated into the 2013-2014 preliminary budget. Fire Equipment Cumulative Reserve Fund 107 Budget is added to cover fire mitigation supply expenditures not contemplated in the original budget. Funding comes from the ending fund balance, some of which derives from Sound Transit contributions received in prior years for fire mitigation supplies and equipment. These budget changes have no net effect on the biennial budget. Drug Seizure Fund 109 Budget is added to cover the cost of equipping the new police Neighborhood Resource Center (NRC) for occupancy and use by the Police Department. Funding for these costs comes from the ending fund balance. These budget changes have no net effect on the biennial budget. Debt Service Funds Budget is added to certain debt service funds to cover registration costs, to reflect application of an accounting principle, and to appropriate budget for debt service for the 2011 bond refunding. The refunding was approved and completed in 2011; however the budget was not amended at that time to reflect the new debt service. The biennial budget is increased for the accounting change and for the debt service on the 2011 bond refunding. General Government Improvements Fund 303 Removal of flood mitigation measures — the Hesco and Super Sacks — began this year but is scheduled to continue in 2013. The construction budget is reduced to reflect the extended completion time for the project. Water Fund 401 Indirect cost allocation budget is increased to reflect an additional charge for Public Works overhead. Budget is also added for Revenue Bond 1995 debt service. This bond was W:1 1Usersl VickylBudget\BudgetAmendmentRevised 11-21-12 FINAL.doc 4 INFORMATIONAL MEMO Page 3 scheduled to be paid off in December 2011; the debt service budget was removed via the 2011 mid-biennium budget modification accordingly. However, the bond was not paid off due to bond provisions precluding this and the debt service budget must be reinstated. The additional expenditure budget is funded through ending fund balance; therefore there is no net effect on the biennial budget. Sewer Fund 402 Indirect cost allocation budget is increased to reflect an additional charge for Public Works overhead. The additional expenditure budget is funded through ending fund balance; therefore, there is no net effect on the biennial budget. Surface Water Fund 412 Indirect cost allocation budget is increased to reflect an additional charge for Public Works overhead. The additional expenditure budget is funded through ending fund balance; therefore, there is no net effect on the biennial budget. Equipment Rental Fund 501 Indirect cost allocation budget is increased to reflect an additional charge for Public Works overhead. The additional expenditure budget is funded through ending fund balance; therefore, there is no net effect on the biennial budget. Health Insurance Fund 502 Budget for medical costs is increased as a result of actual expenditures and due to an actuarial increase in the IBNR (incurred but not reported) reserve. The additional expenditure budget is funded through ending fund balance; therefore there is no net effect on the biennial budget. FINANCIAL IMPACT The biennial budget is reduced by $1,578,835. RECOMMENDATION The Council is being asked to consider this item at the November 26, 2012 Committee of the Whole and December 3, 2012 Regular Council Meeting. ATTACHMENTS Draft Ordinance 2012 Year-End Budget Summary 2012 Year-End Budget Amendment Worksheet W:1 1Users\Vicky\Budget\BudgetAmendment Revised 11-21-12 FINAL.doc 5 6 DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2319, WHICH ADOPTED THE CITY OF TUKWILA'S BIENNIAL BUDGET FOR THE 2011-2012 BIENNIUM, TO ADOPT AN AMENDED BIENNIAL BUDGET; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on December 6, 2010, the City Council of the City of Tukwila adopted Ordinance No. 2319, which adopted the 2011-2012 biennial budget of the City of Tukwila; and WHEREAS, on November 26, 2012, following required public notification, the City Council conducted a public hearing on the proposed 2012 year-end budget amendment; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance Amended. Tukwila Ordinance No. 2319 is hereby amended with the City Council's adoption of the document entitled "City of Tukwila 2012 Year-End Budget Amendment," attached hereto and incorporated by this reference as if fully set forth herein, in accordance with RCW 35A.34.200. Section 2. Estimated Revenues and Appropriations. The totals of the estimated revenues and appropriations for each separate fund and the aggregate totals are as follows: FUND EXPENDITURES REVENUES 000 General Fund $115,698,514 $115,698,514 105 Conting ncy Fund $2,755,708 $2,755,708 212 Limited Tax G.O. Bonds, 2009A $213,550 $213,550 217 Limited Tax G.O. Refunding Bonds, 2011 $167,965 $167,965 Section 3. Copies on File. A complete copy of the final budget for 2011-2012, as adopted, together with a copy of * this amending ordinance, shall be kept on file in the City Clerk's Office, and a copy shall be transmitted by the City Clerk to the Division of Municipal Corporations of the Office of the State Auditor and to the Association of Washington Cities. W:Word Processing\Ordinances\Amend 2011-2012 Biennial Budget for COW 11-26-12 VC:bjs Page 1 of 2 Section 4. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 5. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 6. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Jim Haggerton, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Shelley M. Kerslake, City Attorney Ordinance Number: Attachment: City of Tukwila 2012 Year-end Budget Amendment W:Word Processing\Ordinances\Amend 2011-2012 Biennial Budget for COW 11-26-12 VC:bjs Page 2 of 2 CITY OFTDKW|LA 2O12 YEAR-END BUDGET AMENDMENT SUMMARY 2O11-2O12 Adopted 2012 Year- Adjusted Budgotaa End 2011-2012 Modified Amendment Budget Fund OOU General $ 114.598.514 $ 1.100.000 115.698.514 101 Hotel/Motel Tax 3.798.633 3.796.633 103 City Street 1.755.171 1.755.171 104 Arterial Street 56.202.266 56.202.268 105 Contingency 5.755.708 (3.000.000) 2.755.708 107 Fire Equipment Cumulative Reserve 1.673.041 1.673.041 109 Drug Seizure Fund 614.000 014.000 209 Limited Tax G.0. Bonds,2003 4.489.882 4.489.882 210 Limited Tax G.0. Refunding Bonds,2OD3 1.002.825 1.002.825 211 Limited Tax GD. Refunding Bonds,2OOO 1.681.171 1.681.171 212 Limited Tax GD. Bonds, 2OOSA 60.350 153.200 213.550 313 Limited Tax G.O. Bonds,2009B 509.043 509.043 214 Limited Tax B O. Bonde,201 OA 789.750 789.750 215 Limited Tax G.O. Bonds,2010B 386.900 386.900 210 Limited Tax GO. Refunding Bonds Valley Com 403.900 403.900 217 Limited Tax G.O. Refunding Bonds,2011 167.965 167.965 301 Land Acquisition, Recreation&Park Development 9.792.015 9.782.015 302 Facility Replacement 3.891.877 3.891.877 303 General Government Improvements 3.658.109 3.658.108 304 Fire Improvements 430.300 430.300 401 Water 17.413.433 17.413.433 402 Sewer 15.802.626 15.802.626 405 Bond Reserve 822.000 822.000 411 Foster Golf Course 4.855.278 4.855.278 412 Surface Water 9.867.549 9.867.549 501 Equipment Rental 11.418.895 11.418.895 502 Insurance Fund 17.563.948 17.563.849 505 Insurance LEDFF1 Fund 3.754.880 3.754.006 611 Firemen's Pension 2,995,616 2,995,616 Total CITY OF TUKWILA 2012 YEAR-END BUDGET AMENDMENT WORKSHEET Biennial Budget WORKSHEET Increase(Decrease) PgLay Expenditure Revenues Revenues Expenditures ------------------------- ----------------------------------------------------------------------------------------- Council Decisions/Approvals Mayor's Department Strategic Plan Professional Services 000.03.513.100.41.02 $ 130,000 2 Fire Department Firefighter signing bonus and Salaries 000,11.522.200,11.00 $ 195,235 training budget resulting from Salaries 000.11.522300.11.00 11,954 new labor agreement. Salaries 000,11.522.400.1 1.00 7,949 Salaries 000,11.522.600.1 1,00 4,629 FICA 000,11,522.200.21.00 2,666 FICA 000.11.522300.21.00 163 FICA 000.11.522.400.21.00 109 FICA 000.11 Z22.600.21.00 63 222,768 Training budget 000.11.522.400.49.04 12,000 3 Parks Maintenance Department Reinstatement of 1.5 FTE in Salaries 000.15.576.800.11.00 91,613 2011 resulting from Teamsters FICA 000.15.576,800.21.00 6,909 reduction in force agreement PERS 000.15.576,800.23.00 6,706 Labors&Industries 000.15.576.800.24.00 2,600 Med,Dent,Life,Opt 000.15,576,800.25.00 8,964 Self Ins Med/Dent 000,15.576.800.25.97 828 117,620 Revenue Backed Expenditures 4 Municipal Court Additional.25 FTE for provision Salaries 000.09Z23.300.1 1.00 20,000 of probation services to the City Various Benefits 000.09.523,300.2x.xx 2,000 22,000 of SeaTac Other revenue 000.369.xxx.xx.xx 22,000 4a GO Bond for Pool Improvements General Obligation bond issued Transfers-out 000.20.597.638.00.00 1,100,000 for reconstruction of MPD Pool Other revenue 000.391.100.00.00 1,100,000 Other 5 City Attorney Actual in excess of budget- Special Matters 000.06,515,200.41.03 100,000 Tukwila Village and other matters 6 Police Department Actual in excess of budget Monitoring of Prisoners 000.10.523.200.41.00 24,000 Valley Com Dispatch 000.10.528,600.51.00 53,000 77,000 7 Park Maintenance Public Utility Services I 000.15.576.800.47.xx 20,000 Actual in excess of budget- SSWM charges water and surface water costs 8 Street Maintenance Actual in excess of budget Public Utility Services/ 000,16,542.300,47.xx 80,000 SSWM charges 9 Department 20 Reduce transfers to Transfers out 000.20,597.000.00.00 (3,000,000) Contingency fund Increase transfers to Debt Transfers out 000,20.597.000.00.00 167,965 Service Fun 217 10 Revenue Indirect cost allocation revenue Transfers-in 000.397.190,00.00 605,618 derived from Public Works overhead charge if Reduction in overbudgeted Proceeds from the sale 000.395,100.00.00 (627,618) revenue account to offset of Capital assets revenue increases 11a Ending fund balance 000.291.840.00.00 2,050,647 TOTAL GENERAL FUND $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 1,100,000 10 CITY OF TUKWILA 2012 YEAR-END BUDGET AMENDMENT WORKSHEET Biennial Budget WORKSHEET Increase(Decrease) Detail Expenditure Revenues Revenues Expenditures 0 Ei I 1!i Other 12 Fire mitigation supplies funded Fire Mitigation Supplies 107.00.526300_31.02 10,000 through Sound Transit revenues received in prior Est Ending Unreserved 107,00.291.840,00.00 (10,000) years;no budget provided for Fund Balance 2012 TOTAL FIRE EQUIPMENT RESERVE $ - $ Other 12a Reduce transfer in to Transfers in 105,397.000.00.00 (3,000,000) Contingency fund (3,000,000) Est Ending Unreserved 105.00.291,840.00.00 (3,000,000) Fund Balance (3,000,000) TOTAL CONTINGENCY FUND $ (3,000,00 Council Decisions/Approvals 13 Neighborhood Resource Center Machinery&Equipment 109.00,594.215.64.00 53,000 tenant improvements Est Ending Unreserved 109,00.291.840.00.00 (53,000) Fund Balance TOTAL DRUG SEIZURE FUND $ - $ Other-Accounting change, 14 Actual in excess of budget Debt Registration Cost 210.00.592.730.85.00 1,000 Ending fund balance 210.00,291.840.00.00 (1,000) 15 Actual in excess of budget Debt Registration Cost 211.00,592.190.85.00 1,000 Ending fund balance 211.00.291.840.00.00 (1,000) 16 Accounting change to reflect Principal Payment 212.00.591.950,71.00 153,200 153,200 principal payment by SCORE Capital Contribution 212,379,xxx.xx.xx 153,200 153,200 on behalf of City as capital contribution Council Decisions/Approvals 17 2011 bond refunding;budget Debt Principal 217.00,591.950.71.00 25,000 was not added at time of Debt Interest 217.00,591.950.83.00 141,965 Council approval Debt Registration Cost 217.00.592.950.85.00 1,000 167,965 167,965 Transfer In 217.397.197.00.00 167,965 167,965 TOTAL DEBT SERVICE FUNDS $ 321,165 $ 321,165 Other- 18 Temporary levee removal work Construction Projects 303.98.594.190.65.00 (700,000) extended to 2013,budget Ending fund balance 303,00,291.840.00.00 700,000 reduction/carryover TOTAL GENERAL GOVT IMPROVEMENTS $ - $ Other- 19 Additional indirect cost Misc General Govt 401.01.597.190.00.00 151,158 allocation charge for Public Works overhead Council Decisions/Approvals 20 Debt service budget added Interest 401.02.592.346.83.00 80,495 back for Revenue bond'95 Principal 401,02,582.***** 310,000 390,495 Ending working capital 401.02.293.800.00.00 (541,653) TOTAL WATER FUND $ - $ CITY OF TUKWILA 2012 YEAR-END BUDGET AMENDMENT WORKSHEET Biennial Budget WORKSHEET Increase(Decrease) 22to Expenditure Revenues Revenues Expenditures Other- 21 Additional indirect cost Misc General Govt 402.01,597.190.00.00 172,919 allocation charge for Public Ending working capital 402.02.293.800.00.00 Works overhead (172,919) TOTAL SEWER FUND $ - $ Other- 22 Additional indirect cost Misc General Govt 412.01.597.190.00.00 187,122 allocation charge for Public Ending working capital 412.02.293.800.00.00 (187,122) Works overhead TOTAL SURFACE WATER FUND $ - $ Other 23 Additional indirect cost Misc General Govt 501.01.597.190.00.00 94,419 allocation charge for Public Works overhead Ending working capital 501.002.293.800.00.00 (94,419) TOTAL EQUIPMENT RENTAL&REPLACEMENT FUND $ - $ Other 24 Actual in excess of budget due SELF-INSURED 502.00.517.370.25.00 300,000 to higher claims and IBNR MEDICAL CLAIMS Estimated ending 502.00.293.800.00.00 (300,000) working capital TOTAL HEALTH INSURANCE FUND $ - $ INCREASE IN BIENNIAL BUDGET $ (1,578,835) $ (1,578,835) 12