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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 07/02/2019 Unless otherwise noted, the Operations Committee meets at 4 p.m. on the first and third Tuesday of each month in Kent City Hall, Council Chambers East, 220 Fourth Avenue South, Kent, WA 98032. For additional information please contact Cathie Everett at 253-856-5705, or via email at CEverett@KentWA.gov. Any person requiring a disability accommodation should contact the City Clerk’s Office at 253-856-5725 in advance. For TDD relay service call Washington Telecommunications Relay Service at 7-1-1. Operations Committee Agenda Chair - Les Thomas Bill Boyce– Dennis Higgins Tuesday, July 2, 2019 4:00 p.m. Item Description Action Speaker Time 1. Call to Order Chair 01 MIN. 2. Roll Call Chair 01 MIN. 3. Changes to the Agenda Chair 01 MIN. 4. Approval of June 18, 2019 Minutes YES Chair 05 MIN. 5. Approval of Check Summary Report Dated 6/1/19-6/15/19 YES Chair 05 MIN. 6. May Financial Report NO Interim Finance Director Barbara Lopez 05 MIN. 7. Human Capital Management & Automation (HCMA) Project Budget NO Interim Finance Director Barbara Lopez, IT Director Mike Carrington and Interim HR Director Natalie Winecka 10 MIN. 8. Adjournment Chair 01 MIN. Page 1 of 2 Pending Approval Operations Committee CC Ops Regular Meeting Minutes June 18, 2019 Date: June 18, 2019 Time: 4:00 p.m. Place: Chambers Attending: Les Thomas, Committee Chair Bill Boyce, Councilmember Dennis Higgins, Councilmember Agenda: 1. Call to Order 4:00 p.m. 2. Roll Call Attendee Name Title Status Arrived Les Thomas Committee Chair Present Bill Boyce Councilmember Present Dennis Higgins Councilmember Present 3. Changes to the Agenda There were no changes to the agenda. 4. Approval of Minutes dated June 4, 2019 MOTION: Move to approve the Minutes dated June 4, 2019 RESULT: APPROVED [UNANIMOUS] MOVER: Dennis Higgins, Councilmember SECONDER: Bill Boyce, Councilmember AYES: Thomas, Boyce, Higgins 5. Approval of Check Summary Report Dated 5/16/19-5/31/19 MOTION: Move to approve the check summary report dated May 16 through May 31, 2019. RESULT: APPROVED [UNANIMOUS] MOVER: Bill Boyce, Councilmember SECONDER: Dennis Higgins, Councilmember AYES: Thomas, Boyce, Higgins 6. Axon Masters Services & Purchasing Agreement for Body-Worn Cameras Chief Rafael Padilla and Assistant Chief Eric Hemmen presented a request to recommend Council authorize the Mayor to sign a contract with Axon Enterprise, Inc. for body-worn cameras. Chief Padilla provided a brief review 4 Packet Pg. 2 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J u n 1 8 , 2 0 1 9 4 : 0 0 P M ( O P E N S E S S I O N ) Operations Committee CC Ops Regular Meeting Minutes June 18, 2019 Kent, Washington Page 2 of 2 of the project. The current five-year contract is the first action item, there will be further action coming after contract negotiations with an MOU that is pending with KPOA, additionally there will be a budget adjustment request that will come to Council with new numbers. Assistant Chief Hemmen reported that this process started in 2018 and included a pilot program with 11 officers. Axon Enterprise, Inc. was selected as the vendor. Axon is the only vendor that provides a systems-wide integrated package for law enforcement. The system integrates electronic tasers, cameras, records management and evidence storage in the cloud. During the pilot period tech support has been outstanding. The five-year contract includes the annual cost of storage of all footage in the cloud. The total cost of the contract is $1,633,680.62. The funds to pay for this program will come from the red- light camera program. Council President Boyce expressed his appreciation to Assistant Chief Hemmen for his work on this project. MOTION: Recommend Council authorize the Mayor to enter into a five-year contract with Axon Enterprise, Inc. for Body-Worn Cameras, subject to final terms and conditions acceptable to the City attorney and Police Chief. RESULT: RECOMMENDED TO COUNCIL [UNANIMOUS] Next: 6/18/2019 7:00 PM MOVER: Dennis Higgins, Councilmember SECONDER: Bill Boyce, Councilmember AYES: Thomas, Boyce, Higgins 7. Adjournment 4:21 p.m. Cathie Everett Committee Secretary 4 Packet Pg. 3 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J u n 1 8 , 2 0 1 9 4 : 0 0 P M ( O P E N S E S S I O N ) OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: July 2, 2019 TO: Operations Committee SUBJECT: Approval of Check Summary Report Dated 6/1/19-6/15/19 MOTION: Move to approve the check summary report dated June 1 through June 15, 2019. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services 5 Packet Pg. 4 OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: July 2, 2019 TO: Operations Committee SUBJECT: May Financial Report SUMMARY: The Finance Director will report out the May 2019 financial report. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services ATTACHMENTS: 1. May 2019 Monthly Report (PDF) 6 Packet Pg. 5 2019 Adj Budget 2019 YTD 2019 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) Revenues 107,690,250 49,346,270 110,994,660 3,304,410 3.1% Expenditures 108,670,877 37,274,401 108,302,110 368,767 0.3% Net Revenues Less Expenditures (980,627) 12,071,868 2,692,550 3,673,177 Beginning Fund Balance 23,341,440 23,341,440 Ending Fund Balance 22,360,813 26,033,990 Ending Fund Balance Detail: General Fund Reserves 22,037,023 25,406,320 20.3%23.5% Restricted for Annexation 323,790 627,670 Revenue Overview Expenditures Overview Required Ending Fund Balance Calculation Estimated Expenditures for 2019 (from above)108,302,110 18.0% 18% GF Ending Fund Balance 19,494,380 May 2019 Monthly Financial Report City of Kent, Washington General Fund Overview Summary Analysis through May shows an overall positive budget variance of $3.7 million. The budgeted use of fund balance is offset by the positive budget variance of $3.7 million, creating a net surplus of $2.7m. General Fund Reserves are estimated to end the year at $25.4 million, or 23.5% of estimated 2019 expenditures. Revenues are estimated to end the year approximately $3.3 million (3.1%) higher than budgeted. Through May, all departments are remaining fairly close to budget with an overall budget variance of $369 thousand or 0.3%. 2.06 0.83 0.64 4.13 7.65 9.46 11.91 18.92 20.65 21.67 25.41 0.00 5.00 10.00 15.00 20.00 25.00 30.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Est. 2019 General Fund Ending Fund Balance 10-year History (excluding Annexation)$ in millions Page 1 of 14 6.a Packet Pg. 6 At t a c h m e n t : M a y 2 0 1 9 M o n t h l y R e p o r t ( 1 8 4 5 : M a y F i n a n c i a l R e p o r t ) Revenue Categories 2019 Adj Budget 2019 YTD 2019 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) Taxes: Property 29,978,040 16,124,922 30,284,370 306,330 1.0% Sales & Use 21,770,980 10,635,425 23,217,050 1,446,070 6.6% Utility 19,596,150 8,431,611 19,180,540 (415,610) -2.1% Business & Occupation 11,500,000 2,838,913 11,937,700 437,700 3.8% Other 882,650 234,988 856,690 (25,960) -2.9% Licenses and Permits 7,082,370 3,379,961 7,526,260 443,890 6.3% Intergovernmental Revenue 6,713,830 2,592,197 7,126,320 412,490 6.1% Charges for Services 6,001,180 3,424,081 6,438,920 437,740 7.3% Fines and Forfeitures 1,113,790 534,892 1,211,990 98,200 8.8% Miscellaneous Revenue 2,135,530 1,111,650 2,264,820 129,290 6.1% Transfers In 915,730 37,631 950,000 34,270 3.7% Total Revenues 107,690,250 49,346,270 110,994,660 3,304,410 3.1% May 2019 Monthly Financial Report City of Kent, Washington General Fund Overview - Revenues Variance analysis for revenues is provided for particular line items or those in which the estimated actual amount differs from the budgeted amount by at least 10% or minimum of $500,000. Variance Notes Sales & Use Tax: $1.4m increase due to higher than anticipated sales tax revenues, including $466k in annexation sales tax revenue, due to a strong construction economy. 2019 Estimated General Fund Revenues Property Taxes 27% Sales Taxes 21% Utility Taxes 17% B&O Taxes 11% Other Taxes 1% Licenses and Permits 7% Intergovernmental 7% Charges for Services 6% Fines and Forfeits Misc & Transfers In 3% Other 16% Page 2 of 14 6.a Packet Pg. 7 At t a c h m e n t : M a y 2 0 1 9 M o n t h l y R e p o r t ( 1 8 4 5 : M a y F i n a n c i a l R e p o r t ) Prior Year Revenues Budgeted Revenues Actual Revenues January 5,721 6,214 6,540 February 5,542 5,546 5,521 March 7,432 8,268 7,624 April 18,343 17,451 20,431 May 8,891 7,922 9,230 June 6,778 6,751 0 July 8,084 7,508 0 August 5,496 5,734 0 September 6,935 7,276 0 October 19,388 18,068 0 November 8,117 7,122 0 December 10,353 9,831 0 Total 111,081 107,690 49,346 Prior Year Revenues Budgeted Revenues Actual Revenues January 0 10 32 February 213 225 230 March 736 953 866 April 12,768 12,204 12,268 May 1,860 2,172 2,730 June 121 158 0 July 269 111 0 August 104 110 0 September 327 591 0 October 11,934 11,603 0 November 1,432 1,589 0 December 207 251 0 Total 29,971 29,978 16,125 Prior Year Revenues Budgeted Revenues Actual Revenues January 1,761 1,626 2,060 February 2,045 2,037 2,485 March 1,810 1,611 2,058 April 1,604 1,564 1,788 May 2,074 1,834 2,244 June 2,019 1,618 0 July 2,000 1,752 0 August 2,152 1,966 0 September 2,066 1,808 0 October 2,056 1,811 0 November 2,261 1,983 0 December 2,851 2,162 0 Total 24,699 21,771 10,635 May 2019 Monthly Financial Report City of Kent, Washington General Fund Revenues ($ in Thousands) All Revenues Sources Property Tax Sales 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 19 Bud 18 Act 19 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 19 Bud 18 Act 19 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act Page 3 of 14 6.a Packet Pg. 8 At t a c h m e n t : M a y 2 0 1 9 M o n t h l y R e p o r t ( 1 8 4 5 : M a y F i n a n c i a l R e p o r t ) May 2019 Monthly Financial Report City of Kent, Washington General Fund Revenues ($ in Thousands) Prior Year Revenues Budgeted Revenues Actual Revenues January 1,860 2,082 1,887 February 1,771 1,748 1,583 March 1,719 1,669 1,680 April 1,737 1,840 1,707 May 1,602 1,542 1,575 June 1,447 1,419 0 July 1,647 1,739 0 August 1,482 1,482 0 September 1,560 1,681 0 October 1,427 1,479 0 November 1,537 1,494 0 December 1,499 1,422 0 Total 19,289 19,596 8,432 Prior Year Revenues Budgeted Revenues Actual Revenues January 1 6 2 February 3 14 2 March 33 261 48 April 322 1,785 2,479 May 1,688 844 543 June 223 175 0 July 2,011 2,286 0 August 340 446 0 September 145 129 0 October 2,100 2,530 0 November 252 417 0 December 3,378 3,491 0 Total 10,496 12,383 3,074 Prior Year Revenues Budgeted Revenues Actual Revenues January 2,099 1,892 2,560 February 1,510 933 1,221 March 3,135 2,770 2,972 April 1,912 1,687 2,189 May 1,667 1,547 2,139 June 2,968 2,853 0 July 2,157 1,734 0 August 1,419 1,423 0 September 2,836 2,722 0 October 1,870 1,971 0 November 2,634 1,483 0 December 2,417 2,948 0 Total 26,625 23,962 11,080 Utility Tax Other Taxes Other Revenues (Intergovernmental, Licenses & Permits, Charges for Service, Fines & Forfeits, and Misc Revenues) $0 $5,000 $10,000 $15,000 $20,000 $25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act $0 $2,000 $4,000 $6,000 $8,000 $10,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act Page 4 of 14 6.a Packet Pg. 9 At t a c h m e n t : M a y 2 0 1 9 M o n t h l y R e p o r t ( 1 8 4 5 : M a y F i n a n c i a l R e p o r t ) Department 2019 Adj Budget 2019 YTD 2019 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) City Council 439,300 164,889 415,200 24,100 5.5% Mayor's Office/City Clerk 3,200,600 1,199,884 3,150,100 50,500 1.6% Economic & Community Dev 7,359,870 2,884,605 7,288,500 71,370 1.0% Finance 3,343,250 1,389,487 3,317,800 25,450 0.8% Fire Contracted Services 3,905,690 1,565,143 3,842,800 62,890 1.6% Human Resources 2,204,290 912,311 2,117,200 87,090 4.0% Information Technology 528,260 209,786 515,700 12,560 2.4% Law 1,828,780 739,135 1,816,700 12,080 0.7% Municipal Court 3,516,080 1,450,826 3,523,000 (6,920) -0.2% Parks, Recreation & Comm Svcs 19,134,947 7,333,427 19,059,800 75,147 0.4% Police 42,727,020 17,726,946 42,773,900 (46,880) -0.1% Public Works 1,142,280 489,002 1,140,900 1,380 0.1% Non-Departmental 19,340,510 1,208,960 19,340,510 Total Expenditures 108,670,877 37,274,401 108,302,110 368,767 0.3% May 2019 Monthly Financial Report City of Kent, Washington General Fund Overview - Expenditures Variance analysis for expenditures is provided for particular departments or those in which the estimated actual amount differs from the budgeted amount by at least 10% or a minimum of $500,000. Variance Notes None. City Council Mayor's Office/City Clerk 3% ECD 7%Finance 3%Fire Contracted Services 4% Human Resources 2% I.T. Law 2% Municipal Court 3% Parks, Recreation & Comm Svcs 18% Police 39% Public Works 1% Non-Departmental 18% Other 5% 2019 Estimated General Fund Expenditures Page 5 of 14 6.a Packet Pg. 10 At t a c h m e n t : M a y 2 0 1 9 M o n t h l y R e p o r t ( 1 8 4 5 : M a y F i n a n c i a l R e p o r t ) 2017 2018 2019 2019 2019 Actual Actual Adj Budget YTD Est Actual Beginning Fund Balance 19,987,828 21,595,175 23,341,440 23,341,440 23,341,440 Revenues Taxes: Property 22,999,864 29,971,155 29,978,040 16,124,922 30,284,370 Sales & Use 21,109,277 24,699,301 21,770,980 10,635,425 23,217,050 Utility 19,648,349 19,289,162 19,596,150 8,431,611 19,180,540 Business & Occupation 9,141,800 9,422,048 11,500,000 2,838,913 11,937,700 Other 900,663 1,074,356 882,650 234,988 856,690 Licenses and Permits 6,962,130 7,557,658 7,082,370 3,379,961 7,526,260 Intergovernmental Revenue 8,102,414 7,919,860 6,713,830 2,592,197 7,126,320 Charges for Services 7,328,567 6,602,681 6,001,180 3,424,081 6,438,920 Fines and Forfeitures 1,549,964 1,360,976 1,113,790 534,892 1,211,990 Miscellaneous Revenue 2,241,585 2,233,777 2,135,530 1,111,650 2,264,820 Transfers In 934,128 950,000 915,730 37,631 950,000 Total Revenues 100,918,740 111,080,973 107,690,250 49,346,270 110,994,660 Expenditures City Council 349,577 344,160 439,300 164,889 415,200 Mayor's Office/City Clerk 2,745,792 2,759,974 3,200,600 1,199,884 3,150,100 Economic & Community Dev 5,841,098 6,675,576 7,359,870 2,884,605 7,288,500 Finance 2,522,554 3,061,472 3,343,250 1,389,487 3,317,800 Fire Contracted Services 3,668,180 3,619,385 3,905,690 1,565,143 3,842,800 Human Resources 1,835,276 2,075,553 2,204,290 912,311 2,117,200 Information Technology 521,151 506,265 528,260 209,786 515,700 Law 1,600,451 1,673,438 1,828,780 739,135 1,816,700 Municipal Court 3,128,652 3,442,107 3,516,080 1,450,826 3,523,000 Parks, Recreation & Comm Svcs 16,655,356 17,992,171 19,134,947 7,333,427 19,059,800 Police 37,167,622 39,315,958 42,727,020 17,726,946 42,773,900 Public Works 1,111,563 1,155,562 1,142,280 489,002 1,140,900 Non-Departmental 22,164,122 26,706,702 19,340,510 1,208,960 19,340,510 Total Expenditures 99,311,394 109,328,323 108,670,877 37,274,401 108,302,110 Net Revenues less Expenditures 1,607,347 1,752,650 (980,627) 12,071,868 2,692,550 Ending Fund Balance 21,595,175 23,347,825 22,360,813 35,413,308 26,033,990 Ending Fund Balance Detail: General Fund Reserves 20,654,415 21,666,605 22,037,023 25,406,320 based on same year actuals/budget 20.8% 19.8% 20.3% 23.5% Restricted for Annexation 940,760 1,681,220 323,790 627,670 May 2019 Monthly Financial Report City of Kent, Washington General Fund Page 6 of 14 6.a Packet Pg. 11 At t a c h m e n t : M a y 2 0 1 9 M o n t h l y R e p o r t ( 1 8 4 5 : M a y F i n a n c i a l R e p o r t ) 2017 2018 2019 % of thru May thru May thru May Budget Revenues Taxes: Property 11,999,861 15,576,486 16,124,922 548,435 3.5%53.8% Sales & Use 8,604,214 9,293,534 10,635,425 1,341,891 14.4%48.9% Utility 8,848,341 8,689,176 8,431,611 (257,565) -3.0%43.0% Business & Occupation 2,417,766 1,721,544 2,838,913 1,117,369 64.9%24.7% Other 257,856 325,441 234,988 (90,453) -27.8%26.6% Licenses and Permits 2,539,935 3,093,031 3,379,961 286,930 9.3%47.7% Intergovernmental Revenue 2,461,987 2,554,265 2,592,197 37,932 1.5%38.6% Charges for Services 2,906,350 3,295,071 3,424,081 129,009 3.9%57.1% Fines and Forfeitures 795,914 518,397 534,892 16,495 3.2%48.0% Miscellaneous Revenue 856,768 861,866 1,111,650 249,785 29.0%52.1% Transfers In - - 37,631 37,631 4.1% Total Revenues 41,688,993 45,928,811 49,346,270 3,417,458 7.4%45.8% Expenditures City Council 162,540 153,385 164,889 11,504 7.5%37.5% Mayor's Office/City Clerk 986,746 1,068,017 1,199,884 131,867 12.3%37.5% Economic & Community Dev 2,318,150 2,776,010 2,884,605 108,595 3.9%39.2% Finance 948,734 1,199,363 1,389,487 190,124 15.9%41.6% Fire Contracted Services 1,353,784 1,493,563 1,565,143 71,580 4.8%40.1% Human Resources 731,831 891,669 912,311 20,642 2.3%41.4% Information Technology 237,649 212,089 209,786 (2,303) -1.1%39.7% Law 638,793 725,850 739,135 13,286 1.8%40.4% Municipal Court 1,279,403 1,359,164 1,450,826 91,662 6.7%41.3% Parks, Recreation & Comm Svcs 6,326,259 6,829,460 7,333,427 503,967 7.4%38.3% Police 15,314,690 16,319,176 17,726,946 1,407,770 8.6%41.5% Public Works 512,840 477,667 489,002 11,336 2.4%42.8% Non-Departmental 1,887,638 1,390,702 1,208,960 (181,743) -13.1%6.3% Total Expenditures 32,699,056 34,896,115 37,274,401 2,378,287 6.8%34.3% *General Govt. includes City Council, Mayor/Clerk, HR, IT, & Finance Variance May 2019 Monthly Financial Report City of Kent, Washington General Fund Year-to-Year Month Comparison 2019-18 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 Property Taxes Sales & Use Taxes Utility Taxes Other Revenues GF Revenues thru May 2017 2018 2019 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 Police Parks *General Govt. ECD Non-Dept & Other GF Expenditures thru May 2017 2018 2019 Page 7 of 14 6.a Packet Pg. 12 At t a c h m e n t : M a y 2 0 1 9 M o n t h l y R e p o r t ( 1 8 4 5 : M a y F i n a n c i a l R e p o r t ) 2019 2019 2019 2019 Beginning Fund Balance Estimated Revenues Estimated Expenditures Ending Fund Balance Operating revenues and expenditures only; capital and non-capital projects are excluded. General Fund 23,341,440 110,994,660 108,302,110 26,033,990 Street Fund 5,416,967 18,520,720 19,630,190 4,307,497 LEOFF 1 Retiree Benefits 1,872,112 1,179,590 1,423,000 1,628,702 Lodging Tax 336,765 295,330 510,790 121,305 Youth/Teen Programs 91,846 957,730 957,730 91,846 Capital Resources 15,599,192 16,276,910 20,601,850 11,274,252 Criminal Justice 7,247,796 6,340,530 6,003,100 7,585,226 ShoWare Operating 2,563,460 1,150,000 1,423,790 2,289,670 Other Operating 587,401 112,670 112,670 587,401 Councilmanic Debt Service 1,451,046 10,266,810 9,803,310 1,914,546 Special Assessments Debt Service 479,916 1,305,380 1,119,460 665,836 Water Utility 20,822,197 29,665,060 36,221,310 14,265,947 Sewer Utility 6,829,754 31,820,310 31,667,540 6,982,524 Drainage Utility 17,562,223 23,424,620 29,677,130 11,309,713 Solid Waste Utility 466,749 894,130 874,520 486,359 Golf Complex (1,110,421) 2,819,210 2,963,220 (1,254,431) Fleet Services 5,869,149 6,707,070 7,593,290 4,982,929 Central Services 15,044 396,000 387,290 23,754 Information Technology 3,348,099 8,906,250 9,078,180 3,176,169 Facilities 2,316,961 5,754,880 5,838,050 2,233,791 Unemployment 1,401,222 121,700 313,610 1,209,312 Workers Compensation 3,478,730 1,094,000 1,456,980 3,115,750 Employee Health & Wellness 3,886,427 15,052,030 14,898,160 4,040,297 Liability Insurance 878,314 1,810,690 2,017,600 671,404 Property Insurance 607,537 1,365,920 1,332,100 641,357 Enterprise Funds Internal Service Funds Fund Balances May 2019 Monthly Financial Report City of Kent, Washington General Fund Special Revenue Funds Debt Service Funds Page 8 of 14 6.a Packet Pg. 13 At t a c h m e n t : M a y 2 0 1 9 M o n t h l y R e p o r t ( 1 8 4 5 : M a y F i n a n c i a l R e p o r t ) 2017 2018 2019 2019 2019 Actual Actual Budget YTD Est Actual Operating revenues and expenditures only; capital and non-capital projects are excluded. In instances where expenditures exceed revenues, fund balance is being utilized. Street Fund Revenues 14,407,771 15,241,855 17,345,420 6,052,029 18,520,720 Expenditures 12,511,397 15,698,374 19,630,192 6,496,638 19,630,190 Net Revenues Less Expenditures 1,896,373 (456,519)(2,284,772)(444,610)(1,109,470) LEOFF 1 Retiree Benefits Revenues 1,285,285 1,948,504 1,179,590 88,880 1,179,590 Expenditures 1,163,174 1,372,764 1,423,000 593,936 1,423,000 Net Revenues Less Expenditures 122,111 575,740 (243,410)(505,057)(243,410) Lodging Tax Revenues 316,975 320,774 294,830 97,713 295,330 Expenditures 328,804 441,566 510,790 165,078 510,790 Net Revenues Less Expenditures (11,830)(120,791)(215,960)(67,365)(215,460) Youth/Teen Programs Revenues 955,757 928,958 957,730 410,160 957,730 Expenditures 942,000 942,000 957,730 957,730 Net Revenues Less Expenditures 13,757 (13,042)410,160 Capital Resources Revenues 19,948,247 22,962,097 16,169,310 5,961,655 16,276,910 Expenditures 15,579,639 23,009,239 20,601,850 1,969,342 20,601,850 Net Revenues Less Expenditures 4,368,607 (47,142)(4,432,540)3,992,313 (4,324,940) Criminal Justice Revenues 6,032,589 5,141,297 6,300,130 2,104,902 6,340,530 Expenditures 4,533,302 5,090,504 6,003,100 2,941,690 6,003,100 Net Revenues Less Expenditures 1,499,287 50,792 297,030 (836,788)337,430 ShoWare Operating Revenues 1,355,226 1,502,759 1,150,000 123,819 1,150,000 Expenditures 1,067,836 1,373,763 1,423,790 477,827 1,423,790 Net Revenues Less Expenditures 287,390 128,996 (273,790)(354,008)(273,790) Other Operating Revenues 129,338 133,288 112,670 112,670 Expenditures 40,094 72,045 112,670 22,765 112,670 Net Revenues Less Expenditures 89,244 61,243 (22,765) Councilmanic Debt Service Revenues 10,781,229 10,535,010 10,266,810 816,986 10,266,810 Expenditures 10,316,403 10,070,185 9,803,310 836,310 9,803,310 Net Revenues Less Expenditures 464,826 464,826 463,500 (19,324)463,500 Special Assessment Debt Service Revenues 1,979,573 1,458,264 1,305,380 254,121 1,305,380 Expenditures 2,585,818 1,561,009 1,119,460 436,072 1,119,460 Net Revenues Less Expenditures (606,245)(102,745)185,920 (181,951)185,920 Debt Service Funds May 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Special Revenue Funds Page 9 of 14 6.a Packet Pg. 14 At t a c h m e n t : M a y 2 0 1 9 M o n t h l y R e p o r t ( 1 8 4 5 : M a y F i n a n c i a l R e p o r t ) 2017 2018 2019 2019 2019 Actual Actual Budget YTD Est Actual Operating revenues and expenditures only; capital and non-capital projects are excluded. In instances where expenditures exceed revenues, fund balance is being utilized. May 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Water Utility Revenues 28,209,235 29,438,960 29,589,060 12,364,380 29,665,060 Expenditures 26,577,932 28,004,249 36,221,310 8,610,838 36,221,310 Net Revenues Less Expenditures 1,631,303 1,434,710 (6,632,250)3,753,541 (6,556,250) Sewer Utility Revenues 31,820,310 13,570,846 31,820,310 Expenditures 31,667,540 11,959,760 31,667,540 Net Revenues Less Expenditures 152,770 1,611,085 152,770 Note: Sewer Utility was combined with Drainage Utility in 2017 & 2018. Drainage Utility Revenues 54,240,288 57,343,023 23,343,620 10,405,981 23,424,620 Expenditures 49,060,469 56,879,160 29,677,130 5,451,433 29,677,130 Net Revenues Less Expenditures 5,179,819 463,863 (6,333,510)4,954,548 (6,252,510) Solid Waste Utility Revenues 754,868 799,794 892,980 281,756 894,130 Expenditures 577,964 812,476 874,520 293,439 874,520 Net Revenues Less Expenditures 176,904 (12,682)18,460 (11,682)19,610 Golf Complex Revenues 3,027,079 9,229,538 2,819,210 811,500 2,819,210 Expenditures 3,081,308 6,467,553 2,963,220 1,117,608 2,963,220 Net Revenues Less Expenditures (54,229)2,761,985 (144,010)(306,109)(144,010) Fleet Services Revenues 5,480,210 5,686,534 6,707,070 3,965,677 6,707,070 Expenditures 4,164,630 7,286,339 7,593,290 3,204,493 7,593,290 Net Revenues Less Expenditures 1,315,580 (1,599,805)(886,220)761,184 (886,220) Central Services Revenues 350,602 375,410 447,090 165,531 396,000 Expenditures 290,147 357,253 387,290 150,606 387,290 Net Revenues Less Expenditures 60,455 18,157 59,800 14,925 8,710 Information Technology Revenues 8,173,478 8,416,261 9,116,700 4,198,704 8,906,250 Expenditures 8,175,302 8,676,906 9,078,180 3,373,932 9,078,180 Net Revenues Less Expenditures (1,824)(260,645)38,520 824,771 (171,930) Facilities Revenues 4,737,520 4,941,020 5,754,880 2,195,006 5,754,880 Expenditures 4,761,950 4,933,077 5,838,050 1,737,847 5,838,050 Net Revenues Less Expenditures (24,429)7,943 (83,170)457,159 (83,170) Unemployment Revenues 167,215 158,565 121,700 67,949 121,700 Expenditures 75,154 181,851 313,610 121,193 313,610 Net Revenues Less Expenditures 92,061 (23,286)(191,910)(53,244)(191,910) Enterprise Funds Internal Service Funds Note: Golf revenues include proceeds from the sale of land of $500k in 2017 and $6m in 2018. 2018 Exp include $3.3m transfer to Capital Projects Page 10 of 14 6.a Packet Pg. 15 At t a c h m e n t : M a y 2 0 1 9 M o n t h l y R e p o r t ( 1 8 4 5 : M a y F i n a n c i a l R e p o r t ) 2017 2018 2019 2019 2019 Actual Actual Budget YTD Est Actual Operating revenues and expenditures only; capital and non-capital projects are excluded. In instances where expenditures exceed revenues, fund balance is being utilized. May 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Workers Compensation Revenues 1,082,091 1,829,452 1,094,000 506,030 1,094,000 Expenditures 1,013,278 725,048 1,456,980 523,065 1,456,980 Net Revenues Less Expenditures 68,813 1,104,404 (362,980)(17,034)(362,980) Employee Health & Wellness Revenues 11,707,967 13,857,791 15,052,030 6,318,746 15,052,030 Expenditures 13,428,552 12,931,931 14,898,160 5,611,864 14,898,160 Net Revenues Less Expenditures (1,720,584)925,860 153,870 706,882 153,870 Liability Insurance Revenues 2,087,755 1,950,908 1,810,690 941,003 1,810,690 Expenditures 2,180,680 2,733,726 2,017,600 1,000,855 2,017,600 Net Revenues Less Expenditures (92,925)(782,818)(206,910)(59,852)(206,910) Property Insurance Revenues 556,770 587,906 1,365,920 983,599 1,365,920 Expenditures 436,283 632,404 1,332,100 409,540 1,332,100 Net Revenues Less Expenditures 120,487 (44,498)33,820 574,059 33,820 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 2017 Actuals 2018 Actuals 2019 Budget 2019 Est. Actuals Other Fund Revenues Special Revenue Funds Enterprise Funds Internal Service Funds 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 General Fund Special Revenue Funds Enterprise Funds Internal Service Funds 2019 Estimated Fund Balances Beginning Balance Estimated Ending Balance 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000 2017 Actuals 2018 Actuals 2019 Budget 2019 Est. Actuals Other Fund Expenditures Special Revenue Funds Enterprise Funds Internal Service Funds Page 11 of 14 6.a Packet Pg. 16 At t a c h m e n t : M a y 2 0 1 9 M o n t h l y R e p o r t ( 1 8 4 5 : M a y F i n a n c i a l R e p o r t ) 2017 2018 2019 thru May thru May thru May Operating revenues and expenditures only; capital and non-capital projects are excluded. Street Fund Revenues 4,475,245 4,712,199 6,052,029 1,339,830 28.4% Expenditures 4,187,415 5,947,887 6,496,638 548,751 9.2% Net Revenues Less Expenditures 287,830 (1,235,688)(444,610) LEOFF 1 Retiree Benefits Revenues 412,196 306,592 88,880 (217,712)-71.0% Expenditures 492,165 554,300 593,936 39,636 7.2% Net Revenues Less Expenditures (79,969)(247,709)(505,057) Lodging Tax Revenues 93,264 95,312 97,713 2,401 2.5% Expenditures 68,568 135,120 165,078 29,958 22.2% Net Revenues Less Expenditures 24,696 (39,808)(67,365) Youth/Teen Programs Revenues 440,909 431,515 410,160 (21,355)-4.9% Expenditures Net Revenues Less Expenditures 440,909 431,515 410,160 Capital Resources Revenues 5,805,485 6,729,118 5,961,655 (767,463)-11.4% Expenditures 743,100 1,756,608 1,969,342 212,734 Net Revenues Less Expenditures 5,062,385 4,972,510 3,992,313 Criminal Justice Revenues 1,989,437 1,988,358 2,104,902 116,544 5.9% Expenditures 1,607,072 1,764,077 2,941,690 1,177,614 66.8% Net Revenues Less Expenditures 382,365 224,282 (836,788) ShoWare Operating Revenues 108,389 244,714 123,819 (120,895)-49.4% Expenditures 176,084 336,760 477,827 141,067 41.9% Net Revenues Less Expenditures (67,695)(92,046)(354,008) Admissions Tax revenues received quarterly (April, July, September, January) Other Operating Revenues 5,000 (5,000)-100.0% Expenditures 2,642 20,542 22,765 2,223 10.8% Net Revenues Less Expenditures (2,642)(15,542)(22,765) Combines several small programs, including City Art Program and Neighborhood Matching Grants May 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Year-to-Year Month Comparison 2019-18 Special Revenue Funds Variance Page 12 of 14 6.a Packet Pg. 17 At t a c h m e n t : M a y 2 0 1 9 M o n t h l y R e p o r t ( 1 8 4 5 : M a y F i n a n c i a l R e p o r t ) 2017 2018 2019 thru May thru May thru May Operating revenues and expenditures only; capital and non-capital projects are excluded. May 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Year-to-Year Month Comparison 2019-18 Variance Councilmanic Debt Service Revenues 811,816 807,962 816,986 9,025 1.1% Expenditures 811,816 807,962 836,310 28,348 3.5% Net Revenues Less Expenditures (19,324) Debt service payments are generally due in June and December. Special Assessments Debt Service Revenues 345,650 248,953 254,121 5,169 2.1% Expenditures 542 736,788 436,072 (300,716)-40.8% Net Revenues Less Expenditures 345,108 (487,836)(181,951) Water Utility Revenues 10,453,213 10,960,300 12,364,380 1,404,080 12.8% Expenditures 8,125,789 8,805,437 8,610,838 (194,598)-2.2% Net Revenues Less Expenditures 2,327,424 2,154,863 3,753,541 Sewer Utility Revenues 13,570,846 13,570,846 Expenditures 11,959,760 11,959,760 Net Revenues Less Expenditures 1,611,085 Note: Sewer Utility was combined with Drainage Utility in 2017 & 2018. Drainage Utility Revenues 21,547,866 23,507,774 10,405,981 (13,101,793)-55.7% Expenditures 18,993,058 17,364,879 5,451,433 (11,913,447)-68.6% Net Revenues Less Expenditures 2,554,808 6,142,895 4,954,548 Note: Sewer Utility was combined with Drainage Utility in 2017 & 2018. Solid Waste Utility Revenues 250,446 268,805 281,756 12,952 4.8% Expenditures 179,892 342,791 293,439 (49,353)-14.4% Net Revenues Less Expenditures 70,555 (73,987)(11,682) Golf Complex Revenues 760,414 6,817,403 811,500 (6,005,903)-88.1% Expenditures 1,066,343 985,356 1,117,608 132,252 13.4% Net Revenues Less Expenditures (305,929)5,832,046 (306,109) 2018 Revenues include $6m in proceeds from the sale of land. Fleet Services Revenues 2,019,013 2,034,375 3,965,677 1,931,302 94.9% Expenditures 1,442,620 2,131,734 3,204,493 1,072,759 50.3% Net Revenues Less Expenditures 576,394 (97,360)761,184 Central Services Revenues 129,818 171,850 165,531 (6,318)-3.7% Expenditures 95,122 156,657 150,606 (6,051)-3.9% Net Revenues Less Expenditures 34,696 15,193 14,925 Debt Service Funds Enterprise Funds Internal Service Funds Page 13 of 14 6.a Packet Pg. 18 At t a c h m e n t : M a y 2 0 1 9 M o n t h l y R e p o r t ( 1 8 4 5 : M a y F i n a n c i a l R e p o r t ) 2017 2018 2019 thru May thru May thru May Operating revenues and expenditures only; capital and non-capital projects are excluded. May 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Year-to-Year Month Comparison 2019-18 Variance Information Technology Revenues 3,295,915 3,483,208 4,198,704 715,496 20.5% Expenditures 2,139,358 3,476,775 3,373,932 (102,843)-3.0% Net Revenues Less Expenditures 1,156,557 6,433 824,771 Facilities Revenues 1,906,940 2,036,672 2,195,006 158,334 7.8% Expenditures 1,638,868 1,667,952 1,737,847 69,895 4.2% Net Revenues Less Expenditures 268,072 368,720 457,159 Unemployment Revenues 81,285 58,498 67,949 9,451 16.2% Expenditures 31,990 94,701 121,193 26,491 28.0% Net Revenues Less Expenditures 49,295 (36,203)(53,244) Workers Compensation Revenues 432,839 420,709 506,030 85,322 20.3% Expenditures 444,133 460,115 523,065 62,950 13.7% Net Revenues Less Expenditures (11,293)(39,406)(17,034) Employee Health & Wellness Revenues 4,539,723 4,832,691 6,318,746 1,486,055 30.8% Expenditures 5,801,558 5,717,742 5,611,864 (105,878)-1.9% Net Revenues Less Expenditures (1,261,834)(885,051)706,882 Liability Insurance Revenues 535,923 724,092 941,003 216,911 30.0% Expenditures 2,114,463 1,272,458 1,000,855 (271,603)-21.3% Net Revenues Less Expenditures (1,578,540)(548,366)(59,852) Property Insurance Revenues 233,306 239,606 983,599 743,993 310.5% Expenditures 219,073 220,288 409,540 189,252 85.9% Net Revenues Less Expenditures 14,232 19,318 574,059 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 Special Revenue Funds Enterprise Funds Internal Service Funds Other Fund Revenues thru May 2017 2018 2019 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Special Revenue Funds Enterprise Funds Internal Service Funds Other Fund Expenditures thru May 2017 2018 2019 Page 14 of 14 6.a Packet Pg. 19 At t a c h m e n t : M a y 2 0 1 9 M o n t h l y R e p o r t ( 1 8 4 5 : M a y F i n a n c i a l R e p o r t ) OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: July 2, 2019 TO: Operations Committee SUBJECT: Human Capital Management & Automation (HCMA) Project Budget SUMMARY: Information Technology is leading a multi-track project to replace the software the City currently uses for employee benefits, scheduling, timekeeping and payroll. The work is expected to be completed by the end of 2020. Based on information available at this point, the overall budget is estimated to be $2,150,000. Major components of the budget include:  Software: $1,380,000, which includes both implementation professional services and first year subscription fees  Integration: $250,000 to build integrations between software systems  Staff Backfill: $320,00 to create 2 term-limited positions to backfill staff in Human Resources and Payroll  Contingency: $200,000 Funding is expected to come from the Capital Resources Fund. Approximately $1.2 million will be covered by the Q4 SST mitigation payment, with the remainder from fund balance in that fund. Our plan is to include the budget and FTEs on the Q2 supplemental budget adjustment for formal approval. Staff from Information Technology, Human Resources and Finance will be available to answer questions. $2,150,000 from the Capital Resources Fund; 1.0FTE HR staff backfill and 1.0FTE payroll staff backfill (both term-limited for approximately 18-24 months) SUPPORTS STRATEGIC PLAN GOAL: Innovative Community 7 Packet Pg. 20