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HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 05/05/2020 Approved City Council Workshop Workshop Regular Meeting Minutes May 5, 2020 Date: May 5, 2020 Time: 5:00 p.m. Place: THIS IS A REMOTE MEETING I. CALL TO ORDER Attendee Name Title Status Arrived Toni Troutner Council President Present Bill Boyce Councilmember Present Brenda Fincher Councilmember Present Satwinder Kaur Councilmember Present Marli Larimer Councilmember Present Zandria Michaud Councilmember Present Les Thomas Councilmember Present Dana Ralph Mayor Present II. PRESENTATIONS 1 Budget Update - Recap of 2019 and 2020 Status Finance Director, Paula Painter presented a recap of the 2019 budget and status of the 2020 budget as follows: Painter expressed appreciation of the budget team that includes Michelle Ferguson, Kathleen McConnell and Shane Sorenson. The 2019 in review included information on: Sustainable Services - Performance Measures -Credit Worthiness - Standard & Poor’s and Moody’s bond ratings -Financial Management - The City has received clean audits -Financial Condition - Reviewed general fund reserves Cash and Investments Painter reviewed cash and investments by month, and by type (City-wide). Debt Painter reviewed the annual debt service by type and by fund. General Fund and Other Fund Revenue Variances and Comparisons Painter reviewed the revenues by variance that did not include transfers in from other funds. Revenue included property tax, sales tax, utility tax, B&O tax, licenses, intergovernmental, charges for services, fines and forfeitures and interest and miscellaneous. City Council Workshop Workshop Regular Meeting Minutes May 5, 2020 Kent, Washington Page 2 of 3 Sales tax by industry and permit and plans review were share from 2010- 2014 vs. 2015-2019. Spending by classification was presented regarding salaries & benefits, supplies and equipment services and allocations and transfers out. General Fund ending balance comparisons for years 2017-2020 were presented. Capital Painter detailed spending by classification and reviewed the top 10 projects that were funded 2017-2020. Takeaways from 2019 2019 was a strong year, departments did a great job of staying within budget and the 2021-2022 biennial budget will reflect economic impacts from the Coronavirus. 2020 General Fund Overview Painter advised that we do not have estimated actuals for 2020 due to unknown impacts of the Coronavirus. Reviewed revenue, expenditures, fund balances and amounts restricted for annexation. Painter provided the general fund ending balance for each of the past 10 years and the general fund year-to-monthly comparison through March 2018-2020. Painter provided a review of the estimated beginning and ending fund balances and budgeted revenues and expenditures for 2020 for all funds. Special revenue funds year-to-month comparison through March of each year 2018-2020 were provided. COVID-19 - Potential Budget Impacts Since the April 14th presentation to the Council on potential budget impacts, departments have proposed budget reductions, prioritized capital projects, are considering CARES Act funding of $3.9 million (calculated at $30 per capita) and the Coronavirus Aid, Relief and Securities Act. Any reductions will be finalized at the end of May. Capital projects will be prioritized by departments and then discussed by the leadership team later this week. City Council Workshop Workshop Regular Meeting Minutes May 5, 2020 Kent, Washington Page 3 of 3 Staff is evaluating how to utilize any CARES Act funding the City may receive. Painter responded to Councilmember Boyce’s questions regarding the accesso ShoWare Center and impact of the loss in sales tax revenue. Matheson advised that Tim Higgins is doing a good job of controlling expenses at the accesso ShoWare Center, he is working on alternate graduation concepts and coming up with creative ideas for parking lot-type events. Matheson is confident Higgins is controlling the expenditure side of the budget, but the revenue side is an unavoidable concern. Painter advised that we need to understand the impacts of COVID-19 before she can come up with estimates. Painter indicated that after May closes, she may be in a better position to provide the council with estimates. Council President Troutner conveyed what an important part the prior Council’s decision to grow fund balance is playing in the current COVID- related budget issues. Painter responded to plan to reduce some departments 5-20% and indicated each department will be evaluated individually. On May 19th, during the Council Workshop, Finance will share what we have learned regarding impacts of COVID-19. Painter will also bring information to the May 19th meeting on COVID-related expenses and funding opportunities. Meeting ended at 6:10 p.m. Kimberley A. Komoto City Clerk Financial Report and Budget Update Council Workshop May 5, 2020 City of Kent, WA Special Recognition to: Michelle Ferguson, Interim Financial Planning Manager Kathleen McConnell, Senior Financial Analyst Shane Sorenson, Senior Financial Analyst Agenda 2019 Year-End Financial Report March 2020 Monthly Financial Report 2020 Budget Update 2019 Year-End Financial Status Report PERFORMANCE MEASURES: SUSTAINABLE SERVICES -PERFORMANCE MEASURES The City of Kent is rated by both Standard and Poor’s (S&P) and Moody’s Investment Services. The City’s general obligation rating from S&P is an AA+ rating, which is S&P’s second highest rating. It puts the City at the top of the range as a “very low credit risk”. The Aa3 rating from Moody’s is judged to be of high quality and subject to very low credit risk. A bond rating is a direct reflection of a City’s creditworthiness, similar to an individual’s credit rating. The City’s high ratings reflect consistency with key credit factors, such as: •A healthy financial position, •A strong economy and tax base and •Mid-ranged debt and pension burdens •High ratings also translate to lower interest rates for future borrowings (bonds or otherwise). Credit Worthiness Indicators Results 2016 2017 2018 2019 Bond Rating -Standard & Poor's (S&P)AA+AA+AA+AA+ Bond Rating -Moody's A2 Aa3 Aa3 Aa3 SUSTAINABLE SERVICES -PERFORMANCE MEASURES Financial Management Indicators Results 2015 2016 2017 2018 Unqualified audit opinion on prior years' financial statements Yes Yes Yes Yes # of audit findings -financial, accountability and single audits combined 0 0 0 0 The City of Kent undergoes annual financial, accountability and single audits. Each audit is an opportunity to review an organization’s financial management practices, which provide the foundation for: •Effective stewardship of resources and •Ensuring the safety and security of financial assets. No other indicator provides a better measure of the efficacy of those practices. SUSTAINABLE SERVICES -PERFORMANCE MEASURES Financial Condition Indicators Results 2016 2017 2018 2019 General Fund Reserves as a % of Expenditures 18.75%20.80%20.00%30.21%Target: 18% General Fund Revenues as a % of Ongoing Expenditures 105.10%101.60%102.20%107.50% Target: > 100% Financial condition is an indicator of the City’s ability to provide sustainable core services through economic cycles and meet unforeseen needs. Additionally, the concept of structural balance is a key factor in developing a sustainable spending plan. By establishing a budget where operational costs are supported by recurring revenues, future liabilities for continuing costs are avoided. CASH AND INVESTMENTS: Cash and Investments by Month (City-wide) 100 125 150 175 200 225 250 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC $ in Millions 2016 2017 2018 2019 Cash and Investments by Type (City-wide) - 50 100 150 200 250 2016 2017 2018 2019 Total C&I LGIP Other Investments Cash $ in Millions DEBT: Total Annual Debt Service by Debt Type - 2 4 6 8 10 12 14 16 18 20 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 $ in Millions LTGO Revenue Internal PW Trust Fund Long-term Notes Other Total Annual Debt Service by Fund 0 2 4 6 8 10 12 14 16 18 20 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 $ in Millions Street Fund CRF CRF - Parks ShoWare Operating Water Fund Sewer Fund Drainage Fund Events Center Fund GENERAL FUND: General Fund Revenue Variance (does not include transfers in from other funds) Property Taxes 26% Sales & Use Tax 23% Utility Taxes 16%B&O Taxes 11% Other Taxes 1% Licenses & Permits 6% Intergovernme ntal 6% Chgs for Services 7% Fines & Forfeits 1% Interest & Misc 3% Other 24% - 20 40 60 80 100 120 2017 Actual 2018 Actual 2019 Actual $ in Millions Property Taxes Sales & Use Tax Utility Taxes B&O Taxes Other Revenues 7.5%10.6% 2018 2019 2019 Actual Budget Actual Amount % Property Tax 29,971,155 29,978,040 30,731,786 753,746 2.51% Sales Tax 24,699,301 21,770,980 27,121,400 5,350,420 24.58% Utility Tax 19,289,162 19,596,150 19,600,347 4,197 0.02% B&O Tax 9,422,048 11,500,000 12,999,564 1,499,564 13.04% Other Revenue 27,158,042 24,016,680 28,375,335 4,358,655 18.15% Total 110,539,706 106,861,850 118,828,431 11,966,581 11.20% Variance to Budget SALES TAX SHARE BY INDUSTRY 2010-2014 (INNER CIRCLE) VS. 2015-2019 (OUTER CIRCLE) Key Takeaway: •Construction boom 25% 12%19% 36%8% 24% 15% 19% 34%8% Other Construction Manufacturing and Wholesaling Retailing Food Services and Drinking Places 1% 2% 3% 2010-2014 2015-2019 Construction 9.7 16.2 Manufacturing and Wholesaling 14.7 21.1 Retailing 28.6 37.1 Food Services and Drinking Places 6.5 9.0 Other 20.3 26.6 Total in Millions $79.7 $110.0 UTILITY TAX SHARE BY TYPE 2010-2014 (INNER CIRCLE) VS. 2015-2019 (OUTER CIRCLE) Key Takeaways: •Rate increases for city utilities, garbage •Cable utility tax new in 2013 •Fewer landlines and data plans not taxable 27% 42% 8% 19% 4% 32% 32% 20% 10% 6% City Utilities Electric & Gas Garbage Telephone Cable 10% 12% 9% 2% 5% 2010-2014 2015-2019 City Utilities 27.6 46.5 Electric & Gas 43.6 46.7 Garbage 8.5 29.8 Telephone 19.8 14.7 Cable 3.5 9.2 Total in Millions $103.0 $146.9 PERMIT & PLANS REVIEW 2010-2014 (INNER CIRCLE) VS. 2015-2019 (OUTER CIRCLE) Key Takeaways: •Volume increase •100% cost recovery in plans review 38%14% 37%11% 33% 10% 37% 20% Plans Review Street,Curb & Other Permits Building/Structure Permits 5% 0.3% 4% Fire Plans Review 9% 2010-2014 2015-2019 Building/Structure Permits 7.7 13.5 Street, Curb & Other Permits 2.9 4.2 Plans Review 7.6 14.9 Fire Plans Review 2.3 8.0 Total in Millions $20.4 $40.5 General Fund Revenue Comparison (does not include transfers in from other funds) - 2 4 6 8 10 Licenses & Permits Intergovernmental Charges for Services Fines & Forfeits Interest & Misc $ in Millions 2017 Actual 2018 Actual 2019 Actual 2017-2018 2018-2019 % Change % Change Taxes 73,801,846 84,456,021 14.44%91,416,934 8.24% Licenses & Permits 6,962,130 7,557,658 8.55%7,483,643 -0.98% Intergovernmental 8,100,520 7,919,860 -2.23%6,645,962 -16.08% Charges for Services 7,328,567 6,602,681 -9.90%7,996,846 21.12% Fines & Forfeitures 1,549,964 1,360,976 -12.19%1,289,334 -5.26% Interest & Misc 2,241,585 2,642,511 17.89%3,995,713 51.21% Total 99,984,612 110,539,706 10.56%118,828,431 7.50% 2017 Actual 2018 Actual 2019 Actual General Fund Spending by Classification - 20 40 60 80 100 120 2017 Actual 2018 Actual 2019 Actual $ in Millions Salaries & Benefits Supplies & Equipment Services & Allocations Transfers Out -0.2%10.1% Salaries & Benefits 55% Supplies & Equipment 2% Services & Allocations 25% Transfers Out 22% 2018 2019 2019 Actual Budget Actual Salaries & Benefits 54,439,872 59,023,420 59,451,033 427,613 0.72% Supplies & Equipment 2,621,058 2,985,880 2,554,014 (431,866)-14.46% Services & Allocations 26,172,293 28,106,067 27,343,397 (762,670)-2.71% Transfers Out 26,101,195 20,826,770 19,815,547 (1,011,223)-4.86% Total 109,334,419 110,942,137 109,163,991 (1,778,146)1.40% Variance to Budget Amount % General Fund Spending by Classification Comparison - 10 20 30 40 50 Salaries Benefits Supplies & Equipment Services & Allocations Transfers Out $ in Millions 2017 Actual 2018 Actual 2019 Actual 2017 2018 2017-2018 2019 2018-2019 Actual Actual % Change Actual % Change Salaries 36,924,321 39,738,057 7.62%42,273,411 6.38% Benefits 13,648,044 14,701,815 7.72%17,177,623 16.84% Supplies & Equipment 2,383,585 2,621,058 9.96%2,554,014 -2.56% Services & Allocations 24,735,780 26,172,293 5.81%27,343,397 4.47% Transfers Out 21,619,664 26,101,195 20.73%19,815,547 -24.08% Total 99,311,395 109,334,419 10.09%109,163,991 -0.16% General Fund Ending Fund Balance - 5 10 15 20 25 30 35 2017 Actual 2018 Actual 2019 Actual 2020 Adj Budget $ in Millions General Fund Reserves Restricted for Annexation 2017 2018 2019 2020 Actual Actual Actual Budget General Fund Reserves 20,654,415 22,068,950 32,982,546 30,864,407 Based on same year actuals/budget 20.80%20.19%30.21%27.67% Restricted for Annexation 940,759 1,681,223 1,417,228 453,228 ALL OTHER FUNDS: All Other Fund Revenue Variance (does not include transfers in from other funds) Charges for Services 54% Interest & Misc 20%Taxes 17% Licenses & Permits 0.4% Intergov- ernmental 3% Fines & Forfeits 1% Other 5% - 20 40 60 80 100 120 140 160 180 2017 Actual 2018 Actual 2019 Actual $ in Millions Charges for Services Interest & Misc Taxes Licenses & Permits Intergovernmental Fines & Forfeitures 7.9%7.8% 2018 2019 2019 Actual Budget Actual Taxes 26,679,816 21,872,360 29,869,877 7,997,517 36.56% Licenses & Permits 651,665 596,510 604,307 7,797 1.31% Intergovernmental 4,948,785 5,518,280 5,816,720 298,440 5.41% Charges for Services 91,151,283 91,061,400 95,295,346 4,233,946 4.65% Fines & Forfeitures 1,342,889 2,765,660 2,589,365 (176,295)-6.37% Interest & Misc 38,469,633 31,757,100 41,973,304 10,216,204 32.17% Total 163,244,071 153,571,310 176,148,919 22,577,609 14.70% Budget Variance Amount % All Other Fund Revenue Comparison (does not include transfers in from other funds) - 20 40 60 80 100 Taxes Charges for Services Interest & Misc Licenses & Permits, Intergovernmental, Fines & Forfeitures $ in Millions 2017 Actual 2018 Actual 2019 Actual 2017 2018 2017-2018 2019 2018-2019 Actual Actual % Change Actual % Change Taxes 26,439,784 26,679,816 0.91%29,869,877 11.96% Licenses & Permits 633,161 651,665 2.92%604,307 -7.27% Intergovernmental 4,739,205 4,948,785 4.42%5,816,720 17.54% Charges for Services 88,516,973 91,151,283 2.98%95,295,346 4.55% Fines & Forfeitures 1,537,330 1,342,889 -12.65%2,589,365 92.82% Interest & Misc 29,524,788 38,469,633 30.30%41,973,304 9.11% Total 151,391,241 163,244,071 7.83%176,148,919 7.91% All Other Fund Spending by Classification - 30 60 90 120 150 180 210 2017 Actual 2018 Actual 2019 Actual $ in Millions Salaries & Benefits Supplies & Equipment Services & Allocations Transfers Out 6.1% 19.0% Salaries & Benefits 18% Supplies & Equipment 6% Services & Allocations 47% Transfers Out 36% 2018 2019 2019 Actual Budget Actual Salaries & Benefits 30,278,325 34,345,060 32,736,070 (1,608,990)-4.68% Supplies & Equipment 8,756,534 11,819,830 10,826,152 (993,678)-8.41% Services & Allocations 70,020,891 82,860,230 73,610,269 (9,249,961)-11.16% Transfers Out 65,326,165 65,336,472 67,848,718 2,512,246 3.85% Total 174,381,915 194,361,592 185,021,209 (9,340,383)-4.81% Variance to Budget Amount % All Other Fund Spending by Classification Comparison - 10 20 30 40 50 60 70 80 Salaries Benefits Supplies & Equipment Services & Allocations Transfers Out $ in Millions 2017 Actual 2018 Actual 2019 Actual 2017 2018 2017-2018 2019 2018-2019 Actual Actual % Change Actual % Change Salaries 19,256,465 21,738,522 12.89%23,036,977 5.97% Benefits 7,383,655 8,539,803 15.66%9,699,093 13.58% Supplies & Equipment 6,952,808 8,756,534 25.94%10,826,152 23.64% Services & Allocations 68,430,423 70,020,891 2.32%73,610,269 5.13% Transfers Out 44,573,499 65,326,165 46.56%67,848,718 3.86% Total 146,596,849 174,381,915 18.95%185,021,209 6.10% CAPITAL: Capital Spending by Classification (excludes transfers) 228th UP/BN Grade Separation 2,712,193 640 PRV's Phase 1 1,610,497 Concrete Replacement Program 880,902 Downey Farmstead 1,574,744 James Concrete-Central-Jason 1,651,376 LID 363-224th-228th (EVH-88th)11,272,598 Park Lifecycle Program 834,446 Residential Street Contracted 1,742,152 Upper Mill Creek Dam 729,496 YMCA/Morrill Meadows 891,028 Total of Top 10 23,899,432 Top 10 as % of Total Spend 64.5% Total 2018 Project Spend 37,068,211 Top 10 Project Spend 2018 Spend 132nd Avenue Pedestrian Imp 1,528,811 228th UP/BN Grade Separation 5,162,321 72nd Ave Imps (S.196th-200th)1,073,780 80th Ave Concrete 1,664,407 Hogan Park@RR Field Conversion 2,043,139 LID 363-224th-228th (EVH-88th)2,788,748 Residential Street Contracted 1,912,918 S 212th St & 72nd Ave Concrete 1,766,604 S. 212th Way Overlay 988,785 W. Meeker Storm Russ Rd-64th 1,921,783 Total of Top 10 20,851,296 Top 10 as % of Total Spend 57.5% Total 2017 Project Spend 36,278,306 Top 10 Project Spend 2017 Spend 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 2017 Actual 2018 Actual 2019 Actual 2020 Budget Street Projects Sewer/Drainage Projects Parks Projects Water Projects IT Projects All Other Projects 224th-228th (88th-94th)8,911,907 228th Street Grade Separations 12,748,592 640 P/S #1 - Blue Boy 2,937,234 EVH S 196th St to S 180th St.2,409,670 GRNRA South Pump Station 2,515,738 LID 363-224th-228th (EVH-88th)3,838,083 Reservoir Recoating/Scope 1,341,385 Residential Street Contracted 1,802,888 Upper Mill Creek Dam 3,828,618 YMCA/Morrill Meadows 9,298,988 Total of Top 10 49,633,103 Top 10 as % of Total Spend 71.6% Total 2019 Project Spend 69,324,351 Top 10 Project Spend 2019 Spend B&O Street Contracted 2,943,870 City Buildings 2,000,000 East Hill Pressure Zone 1,500,000 Kent Memorial Park Renovation 2,000,000 Meeker and Russell 1,520,800 Residential Street Contracted 2,793,800 Skyline Sewer Interceptor 2,187,000 Springwood Park Renovation 1,700,000 Water Unallocated Projects 2,075,000 YMCA/Morrill Meadows 10,232,660 Total of Top 10 28,953,130 Top 10 as % of Total Spend 61.6% Total 2020 Project Spend 47,037,230 Top 10 Project Spend 2020 Budget Takeaways •2019 was another strong year •Development/construction activity •Departments doing a great job of staying within budget •2021-2022 Biennial budget will reflect economic impacts from the Coronavirus •Reductions necessary to balance budget •Structural imbalance continues •SST mitigation cut by state impacting capital March 2020 Monthly Financial Report GENERAL FUND: General Fund Overview 0.83 0.64 4.13 7.65 9.46 11.91 18.92 20.65 21.67 32.57 0 5 10 15 20 25 30 35 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 General Fund Ending Fund Balance 10-year History (excluding Annexation)$ in millions 2020 Adj Budget 2020 YTD Revenues 108,450,070 19,377,891 Expenditures 111,532,210 23,300,979 Net Revenues Less Expenditures (3,082,140)(3,923,088) Beginning Fund Balance 34,399,775 Ending Fund Balance 31,317,635 Ending Fund Balance Detail: General Fund Reserves 30,864,407 27.7% Restricted for Annexation 453,228 General Fund Revenues Revenue Categories 2020 Adj Budget 2020 YTD Taxes: Property 30,457,820 1,707,775 Sales & Use 20,849,490 6,726,852 Utility 19,278,260 5,438,850 Business & Occupation 14,900,000 30,660 Other 897,440 5,278 Licenses and Permits 7,490,520 1,956,509 Intergovernmental Revenue 2,954,570 742,481 Charges for Services 6,275,920 1,654,252 Fines and Forfeitures 1,145,660 499,911 Miscellaneous Revenue 2,445,620 165,323 Transfers In 1,754,770 450,000 Total Revenues 108,450,070 19,377,891 General Fund Revenues ($ in Thousands) Prior Year Revenues Budgeted Revenues Actual Revenues January 6,139 6,067 6,877 February 5,923 5,403 5,736 March 7,624 8,035 6,765 April 20,431 18,004 0 May 9,230 7,785 0 June 6,226 6,387 0 July 8,682 7,794 0 August 6,437 5,773 0 September 7,074 7,054 0 October 21,274 18,484 0 November 8,154 7,335 0 December 12,620 10,328 0 Total 119,813 108,450 19,378 Prior Year Revenues Budgeted Revenues Actual RevenuesJanuary0120 February 262 237 247 March 866 890 1,461 April 12,268 12,635 0 May 2,730 2,110 0 June 128 131 0 July 87 110 0 August 80 106 0 September 842 652 0 October 11,573 11,685 0 November 1,688 1,657 0 December 208 233 0 Total 30,732 30,458 1,708 All Revenues Sources Property Tax $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 20 Bud 19 Act 20 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 20 Bud 19 Act 20 Act General Fund Revenues ($ in Thousands) Prior Year Revenues Budgeted Revenues Actual RevenuesJanuary2,060 1,574 2,158 February 2,485 1,940 2,425 March 2,058 1,564 2,143 April 1,788 1,484 0 May 2,244 1,758 0 June 1,765 1,487 0 July 2,331 1,702 0 August 2,540 1,898 0 September 2,310 1,736 0 October 2,532 1,787 0 November 2,589 1,916 0 December 2,418 2,005 0 Total 27,121 20,849 6,727 Prior Year Revenues Budgeted Revenues Actual RevenuesJanuary1,822 1,989 2,033 February 1,648 1,701 1,779 March 1,680 1,651 1,627 April 1,707 1,758 0 May 1,575 1,533 0 June 1,450 1,428 0 July 1,639 1,667 0 August 1,477 1,473 0 September 1,481 1,688 0 October 2,012 1,492 0 November 1,633 1,526 0 December 1,477 1,372 0 Total 19,600 19,278 5,439 Utility Tax Sales Tax $0 $5,000 $10,000 $15,000 $20,000 $25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 20 Bud 19 Act 20 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 20 Bud 19 Act 20 Act General Fund Revenues ($ in Thousands) Prior Year Revenues Budgeted Revenues Actual RevenuesJanuary252 February 2 8 1 March 48 249 33 April 2,479 2,338 0 May 543 969 0 June 81 184 0 July 2,637 2,972 0 August 665 615 0 September 70 139 0 October 2,919 3,297 0 November 490 536 0 December 4,026 4,486 0 Total 13,963 15,797 36 Prior Year Revenues Budgeted Revenues Actual RevenuesJanuary2,255 1,778 2,684 February 1,526 841 1,284 March 2,972 2,454 1,500 April 2,189 1,616 0 May 2,139 1,369 0 June 2,801 2,442 0 July 1,987 1,593 0 August 1,675 1,293 0 September 2,370 2,318 0 October 2,237 1,756 0 November 1,754 1,439 0 December 4,491 3,169 0 Total 28,396 22,067 5,468 Other Taxes Other Revenues (Intergovernmental, Licenses & Permits, Charges for Service, Fines & Forfeits, and Misc Revenues) $0 $2,000 $4,000 $6,000 $8,000 $10,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 20 Bud 19 Act 20 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 20 Bud 19 Act 20 Act General Fund Expenditures Department 2020 Adj Budget 2020 YTD City Council 491,610 103,031 Mayor's Office/City Clerk 2,029,300 443,252 Economic & Community Dev 7,982,400 1,666,094 Finance 2,906,800 578,489 Fire Contracted Services 3,676,240 676,985 Human Resources 1,985,880 422,363 Information Technology 202,550 124,699 Law 1,533,750 386,905 Municipal Court 3,714,520 887,494 Parks, Rec & Comm Svcs 19,840,080 4,158,200 Police 45,647,930 11,183,488 Public Works 590,750 337,080 Non-Departmental 20,930,400 2,332,896 Total Expenditures 111,532,210 23,300,979 General Fund General Fund Year-to -Year Monthly Comparison 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 Property Taxes Sales & Use Taxes Utility Taxes Other Revenues GF Revenues thru March 2018 2019 2020 2018 2019 2020 % of thru March thru March thru March Budget Revenues Taxes: Property 948,899 1,127,616 1,707,775 580,159 51.5%5.6% Sales & Use 5,615,332 6,603,329 6,726,852 123,523 1.9%32.3% Utility 5,349,794 5,149,955 5,438,850 288,895 5.6%28.2% Business & Occupation 25,207 43,982 30,660 (13,322) -30.3%0.2% Other 12,204 7,297 5,278 (2,019) -27.7%0.6% Licenses and Permits 1,766,569 1,968,448 1,956,509 (11,938) -0.6%26.1% Intergovernmental Revenue 1,940,906 1,760,368 742,481 (1,017,887) -57.8%25.1% Charges for Services 2,265,641 2,190,595 1,654,252 (536,342) -24.5%26.4% Fines and Forfeitures 271,651 309,443 499,911 190,468 61.6%43.6% Miscellaneous Revenue 498,803 524,119 165,323 (358,796) -68.5%6.8% Transfers In - - 450,000 450,000 25.6% Total Revenues 18,695,007 19,685,152 19,377,891 (307,261)-1.6%17.9% Variance 2020-19 General Fund Year-to -Year Monthly Comparison 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 Police Parks *General Govt. ECD Non-Dept & Other GF Expenditures thru March 2018 2019 2020 *General Govt. includes City Council, Mayor/Clerk, HR, IT, & Finance 2018 2019 2020 % of thru thru thru Budget Expenditures City Council 101,630 102,205 103,031 826 0.8%21.0% Mayor's Office/City Clerk 701,393 803,290 443,252 (360,038)-44.8%21.8% Economic & Community Dev 1,676,350 1,685,484 1,666,094 (19,389)-1.2%20.9% Finance 717,355 892,110 578,489 (313,621)-35.2%19.9% Fire Contracted Services 815,821 762,123 676,985 (85,138)-11.2%18.4% Human Resources 479,139 576,089 422,363 (153,726)-26.7%21.3% Information Technology 128,182 126,998 124,699 (2,298)-1.8%61.6% Law 441,608 438,352 386,905 (51,448)-11.7%25.2% Municipal Court 814,420 876,344 887,494 11,150 1.3%23.9% Parks, Recreation & Comm Svcs 3,824,234 4,110,804 4,158,200 47,396 1.2%21.0% Police 9,718,664 10,752,286 11,183,488 431,202 4.0%24.5% Public Works 273,924 302,984 337,080 34,097 11.3%57.1% Non-Departmental 105,774 553,489 2,332,896 1,779,407 321.5%11.1% Total Expenditures 19,798,494 21,982,558 23,300,979 1,318,421 6.0%20.9% 2020-19 Variance FUND BALANCES: Fund Balances 2020 2020 2020 2020 Estimated Beginning Fund Balance Budgeted Revenues Budgeted Expenditures Estimated Ending Fund Balance Operating revenues and expenditures only; capital and non-capital projects are excluded. General Fund 34,399,775 108,450,070 111,532,210 31,317,635 Street Fund 7,249,873 17,578,370 17,709,140 7,119,103 LEOFF 1 Retiree Benefits 1,921,274 1,201,170 1,546,320 1,576,124 Lodging Tax 185,825 303,510 299,780 189,555 Youth/Teen Programs 75,355 936,680 963,100 48,935 Capital Resources 18,658,224 20,552,960 26,998,070 12,213,114 Criminal Justice 7,867,703 7,679,270 7,959,070 7,587,903 ShoWare Operating 2,930,008 1,150,000 1,267,340 2,812,668 Other Operating 568,356 108,770 108,770 568,356 Councilmanic Debt Service 1,915,872 9,144,490 8,754,530 2,305,832 Special Assessments Debt Service 699,855 793,180 793,580 699,455 General Fund Special Revenue Funds Debt Service Funds Fund Balances 2020 2020 2020 2020 Estimated Beginning Fund Balance Estimated Revenues Estimated Expenditures Estimated Ending Fund Balance Operating revenues and expenditures only; capital and non-capital projects are excluded. Water Utility 11,375,662 30,168,320 28,093,440 13,450,542 Sewer Utility 908,833 32,386,150 32,275,470 1,019,513 Drainage Utility 16,107,790 24,188,630 22,734,530 17,561,890 Solid Waste Utility 531,908 637,410 631,300 538,018 Golf Complex (601,973)4,361,570 4,315,270 (555,673) Fleet Services 4,351,502 5,163,800 6,347,340 3,167,962 Central Services 55,834 456,010 396,590 115,254 Information Technology 3,728,511 10,031,360 11,872,590 1,887,281 Facilities 3,280,379 6,236,060 7,073,980 2,442,459 Unemployment 1,358,838 144,690 177,480 1,326,048 Workers Compensation 2,839,993 1,129,480 1,516,600 2,452,873 Employee Health & Wellness 5,729,769 15,842,530 15,456,300 6,115,999 Liability Insurance 1,923,261 2,190,430 2,091,380 2,022,311 Property Insurance 722,999 581,140 572,240 731,899 Enterprise Funds Internal Service Funds OTHER FUNDS OVERVIEW: Special Revenue Funds 2018 2019 2020 2020 Actual Prelim Budget YTD Street Fund Revenues 15,241,855 19,786,844 17,578,370 3,196,891 Expenditures 15,698,374 17,953,938 17,709,140 1,836,752 Net Revenues Less Expenditures (456,519)1,832,906 (130,770)1,360,138 LEOFF 1 Retiree Benefits Revenues 1,948,504 1,401,786 1,201,170 144,390 Expenditures 1,372,764 1,352,624 1,546,320 390,904 Net Revenues Less Expenditures 575,740 49,162 (345,150)(246,514) Lodging Tax Revenues 320,774 314,588 303,510 55,518 Expenditures 441,566 465,527 299,780 86,757 Net Revenues Less Expenditures (120,791)(150,940)3,730 (31,238) Youth/Teen Programs Revenues 928,958 941,240 936,680 263,395 Expenditures 942,000 957,730 963,100 1,773 Net Revenues Less Expenditures (13,042)(16,490)(26,420)261,623 Capital Resources Revenues 22,962,097 25,312,158 20,552,960 5,795,372 Expenditures 23,009,239 22,251,119 26,998,070 223,187 Net Revenues Less Expenditures (47,142)3,061,040 (6,445,110)5,572,186 Criminal Justice Revenues 5,141,297 6,738,402 7,679,270 2,500,238 Expenditures 5,090,504 6,118,496 7,959,070 1,393,453 Net Revenues Less Expenditures 50,792 619,907 (279,800)1,106,785 ShoWare Operating Revenues 1,502,759 1,456,311 1,150,000 23,196 Expenditures 1,373,763 1,089,763 1,267,340 (86,640) Net Revenues Less Expenditures 128,996 366,548 (117,340)109,836 Other Operating Revenues 133,288 113,321 108,770 Expenditures 72,045 132,366 108,770 61,520 Net Revenues Less Expenditures 61,243 (19,045)(61,520) Debt Service and Enterprise Funds 2018 2019 2020 2020 Actual Prelim Budget YTD Councilmanic Debt Service Revenues 10,535,010 10,266,923 9,144,490 Expenditures 10,070,185 9,802,097 8,754,530 31,424 Net Revenues Less Expenditures 464,826 464,826 389,960 (31,424) Special Assessment Debt Service Revenues 1,458,264 1,339,332 793,180 86,012 Expenditures 1,561,009 1,119,393 793,580 325,797 Net Revenues Less Expenditures (102,745)219,939 (400)(239,786) Water Utility Revenues 29,438,960 32,626,406 30,168,320 6,688,153 Expenditures 28,004,249 35,348,583 28,093,440 3,785,504 Net Revenues Less Expenditures 1,434,710 (2,722,177)2,074,880 2,902,650 Sewer Utility Revenues 33,063,798 32,386,150 8,578,450 Expenditures 31,664,339 32,275,470 7,195,285 Net Revenues Less Expenditures 1,399,458 110,680 1,383,165 Note: Sewer Utility was combined with Drainage Utility in 2018. Drainage Utility Revenues 57,343,023 29,373,133 24,188,630 5,658,952 Expenditures 56,890,091 28,566,673 22,734,530 3,263,039 Net Revenues Less Expenditures 452,932 806,461 1,454,100 2,395,913 Solid Waste Utility Revenues 799,794 874,164 637,410 168,427 Expenditures 812,476 809,006 631,300 285,879 Net Revenues Less Expenditures (12,682)65,158 6,110 (117,451) Golf Complex Revenues 9,229,538 2,698,609 4,361,570 164,779 Expenditures 6,467,553 2,811,737 4,315,270 558,694 Net Revenues Less Expenditures 2,761,985 (113,128)46,300 (393,916) Debt Service Funds Enterprise Funds Note: Golf revenues include proceeds from the sale of land of $6m in 2018. 2018 Exp include $3.3m transfer to Capital Projects Internal Service Funds All Other Funds Overview 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 2018 Actuals 2019 Actuals 2020 Budget Other Fund Expenditures Special Revenue Funds Enterprise Funds Internal Service Funds Special Revenue Funds –Year -to -Year Month Comparison Debt Service and Enterprise Funds –Year -to -Year Month Comparison Internal Service Funds –Year -to -Year Month Comparison All Other Funds –Year -to-Year Month Comparison 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Special Revenue Funds Enterprise Funds Internal Service Funds Other Fund Revenues thru March 2018 2019 2020 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Special Revenue Funds Enterprise Funds Internal Service Funds Other Fund Expenditures thru March 2018 2019 2020 COVID-19 Potential Budget Impacts COVID-19 –Potential Budget Impacts April 14 –Council Presentation on Potential Budget Impacts What have we been doing since? Department’s Proposed Budget Reductions Prioritization of Capital Projects CARES Act Funding -$3.9 Million “Coronavirus Aid, Relief, and Economic Security Act”