HomeMy WebLinkAboutCity Council Committees - Operations Committee - 06/06/2017 (2)
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 4th Ave S, Kent, 98032.
For additional information please contact Jennifer Hays at 253-856-5700.
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 1-800-833-6388.
Operations Committee Agenda
Councilmembers: Bill Boyce – Les Thomas – Dana Ralph, Chair
June 6, 2017
4 p.m.
Item Description Action Speaker Time Page
1. Call to order Chair Ralph 1
2. Roll Call Chair Ralph 1
3. Changes to the Agenda Chair Ralph 1
4. Approval of Check Summary Reports
dated 4/16/2017 thru 4/30/2017 and
5/01/2017 thru 5/15/2017
YES Chair Ralph 2
5. Approval of Meeting Minutes Dated
May 2, 2017
YES Chair Ralph 2 1
6. Amendment to KCC 3.40.040 - Interfund
Loans - Recommend
YES Aaron BeMiller 10 5
7. April Financial Report – Information Only NO Aaron BeMiller 10 13
8. Director’s Report – Information Only NO Aaron BeMiller 5 29
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Operations Committee
Minutes
Approval Pending
Page 1 of 4
Date: May 2, 2017
Time: 4:02 p.m.
Place: Chambers East
Attending: Bill Boyce, Les Thomas and Dana Ralph, Chair
Agenda:
1. Call to Order.
2. Roll Call.
3. Changes to the Agenda.
There were no changes to the agenda.
4. Approval of Check Summary Reports dated 4/1/2017 thru 4/15/2017.
L. Thomas moved to approve the check summary report dated 4/01/2017
thru 4/15/2017. B. Boyce seconded the motion, which passed 3-0.
5. Approval of Minutes dated April 18, 2017.
B. Boyce moved to approve the Operations Committee minutes dated April 18,
2017. L. Thomas seconded the motion, which passed 3-0.
6. South 212th Way Overlay – Recommend.
Public Works Pavement Management Engineer Joe Araucto asked members to
approve another $300,000 to the already approved $1,000,000 for the
much needed street repair at the 212th Street and 72nd Avenue
intersection. The past winter’s inclement weather accelerated pavement
deterioration on the South 212th Way and South 208th Street corridor and
has had more than 100 pothole repairs.
Members commented that since the James Street repairs this corridor has
created more resident complaints and is much needed.
L. Thomas move to recommend Operations Committee authorize the addition
of $1.4 million out of 2017 B&O revenues for the 212th Street and 72nd
Avenue Intersection repair and the South 212th Way Overlay Project easterly
of SR 167 to be utilized this year. B. Boyce seconded the motion, which
passed 3-0.
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Operations Committee
Minutes
Approval Pending
Page 2 of 4
7. Replacement of End-of-Life Imaging and Records System -
Recommend.
Information Technology (IT) Director Mike Carrington and Systems Manager
Curt Ryser asked for approval to move forward the request to replace the
City’s outdated imaging equipment. The current imaging system manages over
2.1 million records with an associated 14.4 million pages and is utilized by all
city departments, therefore due to the age of the system all of the servers
supporting the system are no longer supported operating systems.
Funding for this request has been previously approved in the City’s 2013,
2014, 2015, and 2016 capital budget.
B. Boyce move to recommend Council authorize the Mayor to sign all
necessary documents to enter into agreements with Compulink Management
Center Inc., Cities Digital, Inc., and Microsoft thru SoftwareOne to replace the
existing Oracle IPM and Captivation system with Laserfiche, subject to final
terms and conditions acceptable to the Information Technology Director and
the City Attorney, for a total amount not to exceed $838,100 . L. Thomas
seconded the motion, which passed 3-0.
8. Hyper-Converged Infrastructure contract for technical hardware
upgrade - Recommend.
Mr. Carrington and Technical Services Manager James Endicott asked members
to approve the purchase of a system manufactured by Nutanix to replace the
City’s existing end-of-life virtualization infrastructure. Carahsoft Technology
Corporation, the parent company to Nutanix, will provide all necessary
hardware, software, training, and three years of maintenance and support. The
cost is fully funded and budgeted for in IT’s existing project budget.
L. Thomas move to recommend the city council authorize the mayor to sign a
contract with Carahsoft Technology Corporation to purchase a hyper-
convergence infrastructure system at a total cost not to exceed $436,284.80,
subject to final contract terms and conditions acceptable to the IT Director
and City Attorney. B. Boyce seconded the motion, which passed 3-0.
9. Consolidating Budget Adjustment Ordinance for Adjustments between
January 1, 2017 and March 31, 2017 - Recommend.
Finance Deputy Director Barbara Lopez asked to approve the technical gross
budget adjustment ordinance reflecting an overall budget increase of
$24,995,150. Of that number, Council has previously approved $19,996,700 in
grants and interlocal agreements and $2,219,840 in carryforward budgets.
Adjustments totaling $2,778,610 that have not yet been approved are:
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Operations Committee
Minutes
Approval Pending
Page 3 of 4
$1,490,000 - budget use of $745,000 of accumulated transportation
impact fees as partial funding for the 72nd Avenue project. ($745,000
records transfer of the funding to the project and an additional
$745,000 establishes the project budget to complete the work.)
$652,730 - establishes Parks capital project budgets for levy and
donation revenues received in 2016.
$320,000 - budget use of Facilities fund balance for several department
tenant improvement projects. ($160,000 records transfer of the funding
to the project and an additional $160,000 establishes the project budget
to complete the work.)
$199,110 to appropriately budget the copier lease and usage budget for
departments.
Furthermore, the general fund portion increased by $264,910 for the City’s
liability insurance which was adjusted to better reflect department usage based
on employee hours and five year experience rating for each department.
These expenditures are funded by grants, existing fund balance, or other new
revenues.
L. Thomas moved to recommend Council approve the consolidating budget
adjustment ordinance for adjustments made between January 1, 2017
and March 31, 2017, reflecting an overall budget increase of $24,995,150 .
B. Boyce seconded the motion, which passed 3-0.
10. Director’s Report – Information Only.
Finance Director Aaron BeMiller updated members on the proposed debt
management financial policy. Staff is creating a more robust and higher quality
policy from the one previously adopted in 2014, it will be brought to a council
workshop in July. Some significant changes include:
Debt Issuance: allows for the issuance of general obligation debt of up
to 7.5 percent of the City’s assessed property valuation; all city projects
proposed must have a full analysis; the City will comply with arbitrage
rules; and the capital project under consideration must be included in
the City’s Capital Improvement Plan.
Short-term Debt: defined as a period not to exceed three years; the City
will not issue short-term debt for current operations; may issue
interfund loans rather than issuing outside debt to meet short-term cash
flow needs; all interfund borrowing will bear interest; an ordinance to
adjust Kent City Code 3.40.040 will be brought back to the Operations
committee.
Long-term Debt: defined as great than three years; acceptable uses of
bond proceeds are one-time capital projects that can be capitalized and
depreciated, refunding is also acceptable.
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Operations Committee
Minutes
Approval Pending
Page 4 of 4
Professional Services: the finance department shall be responsible for
the solicitation and selection of professional services.
Refunding Debt: is typically done to take advantage of lower interest
rates.
Debt Issuance Process: the finance director, city attorney and bond
counsel shall coordinate their activities and review all debt issuance to
ensure all securities are issued in compliance with legal and regulatory
requirements.
Periodic Review: the policy shall be reviewed periodically by the finance
department and modifications shall be submitted to and approved by
the Council.
13. Adjournment.
The meeting was adjourned at 4:56 p.m. by D. Ralph.
J. Hays
Jennifer Hays
Operations Committee Secretary
4
Kent Council Operations Committee
FINANCE DEPARTMENT
Aaron BeMiller, Director
Phone: 253-856-5260
Fax: 253-856-6255
Address: 220 Fourth Avenue S.
Kent, WA. 98032-5895
DATE: June 6, 2017
TO: Operations Committee
FROM: Aaron BeMiller, Director
SUBJECT: Amendment to KCC 3.40.040 - Interfund Loans - Recommend
MOTION: Recommend Council adopt an ordinance that amends Kent City
Code 3.40.040 to update the City’s interfund loan policies and procedures,
and to delegate to the Finance Director and the Mayor approval of certain
short-term interfund loans without council action.
SUMMARY: At the May 2, 2017 Operations Committee meeting, the Committee
provided a head-nod approval of the City’s proposed update to the debt
management policy. The proposal includes changes to the process and
requirements for the City using interfund loans as a funding tool.
The action before you will update Kent City Code section 3.40.040 Interfund Loans
to reflect the changes in the proposed debt management policy. The significant
changes to the Code include: delegation of interfund loan approval to the finance
director for loans not longer than three (3) calendar months and the Mayor for
loans not longer than twelve (12) calendar months, the requirement of an analysis
of the loaning fund(s) to indicate that excess funds are available and the use of
those funds will not impact the loaning fund’s current operations or constitute a
permanent diversion of funds, and eliminates the loan duration restriction.
BUDGET IMPACT: This action has no budget impact.
BACKGROUND: n/a
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6
1 Amend KCC 3.40.040 -
Re: Interfund Loans
ORDINANCE NO.
AN ORDINANCE of the City Council of the
City of Kent, Washington, authorizing interfund
loans of municipal monies to comply with RCW
43.09.210 and providing for accounting procedures
when interfund loans are made.
RECITALS
A. Rather than issuing outside debt to meet short-term cash flow
needs or to fund certain capital improvements, the city may issue interfund
loans in accordance with RCW 43.09.210 and the city’s finance policies.
B. The city’s finance department is charged with ensuring
compliance with all debt management policy requirements and protecting
the city’s financial integrity.
C. This ordinance permits the finance director and the mayor to
authorize short-term interfund loans without council approval in
accordance with the city’s finance policies.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 1. - Amendment. Section 3.40.040 of the Kent City
Code, entitled “Interfund loans,” is amended as follows:
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2 Amend KCC 3.40.040 -
Re: Interfund Loans
Sec. 3.40.040. Interfund loans.
A. Authorization. The city council does hereby authorize the finance
director, or his designee, to make interfund loans of those municipal
monies which are otherwise legally available for investment purposes,
where such loans would be necessary to ensure compliance with the
provisions of RCW 43.09.210.
B. Procedures. The following procedures shall be used for the
establishment and accounting of all interfund loans made pursuant to this
section:
1. The city council by ordinance or resolution shall approve all
interfund loans and provide in the authorization a planned schedule of
repayment of the loan principal and shall set a reasonable rate of interest
(based upon the external rate available to the municipality) to be paid to
the lending fund. The finance director has the authority to approve short-
term interfund loans for a period not to exceed three (3) calendar months.
The Mayor has the authority to approve loans for a period not to exceed
twelve (12) calendar months. Interfund loans made for a period
exceeding one (1) year must be approved by the council through
ordinance or resolution.
2. Interfund borrowing will bear interest based upon at least the
prevailing Local Government Investment Pool rate. Interest shallwill be
charged in all cases unless:
a. The borrowing fund has no independent source of
revenue other than the lending fund;
8
3 Amend KCC 3.40.040 -
Re: Interfund Loans
b. The borrowing fund is normally funded by the lending
fund; or
c. The lending fund is the general fund, which, being
unrestricted, can loan interest free, except to a proprietary fund.
3. The borrowing fund must anticipate sufficient revenues to be
in a position over the period of the loan to make the specified principal and
interest payments as required in the authorizing ordinance. The issuance
of an interfund loan will be permissible only after the finance director has
conducted an analysis of the loaning fund which indicates that excess
funds are available and the use of the funds will not impact the loaning
fund’s current operations or constitute a permanent diversion of funds.
4. The term of loan should whenever practicable be restricted to
a period of one (1) year, but in no case shallwill the term of loan exceed
three (3) years, except for those funds which are legally permitted to
support one another through appropriations, transfers, advances, etc.
45. Only that portion of a given fund which, in the prudent
management of municipal finances as determined by the finance director,
is clearly inactive or in excess of current needs may be loaned to other
municipal funds or invested.
56. Appropriate accounting records shall be maintained to reflect
the balances of loans payable and receivable in every fund affected by
such transactions.
SECTION 2. – Severability. If any one or more section, subsection,
or sentence of this ordinance is held to be unconstitutional or invalid, such
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4 Amend KCC 3.40.040 -
Re: Interfund Loans
decision shall not affect the validity of the remaining portion of this
ordinance and the same shall remain in full force and effect.
SECTION 3. – 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; ordinance, section, or subsection numbering;
or references to other local, state, or federal laws, codes, rules, or
regulations.
SECTION 4. – Effective Date. This ordinance shall take effect and
be in force thirty (30) days from and after its passage, as provided by law.
SUZETTE COOKE, MAYOR
ATTEST:
KIMBERLEY A. KOMOTO, CITY CLERK
APPROVED AS TO FORM:
TOM BRUBAKER, CITY ATTORNEY
10
5 Amend KCC 3.40.040 -
Re: Interfund Loans
PASSED: day of , 2017.
APPROVED: day of , 2017.
PUBLISHED: day of , 2017.
I hereby certify that this is a true copy of Ordinance No.
passed by the City Council of the City of Kent, Washington, and approved
by the Mayor of the City of Kent as hereon indicated.
(SEAL)
KIMBERLEY A. KOMOTO, CITY CLERK
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12
FINANCE DEPARTMENT
Aaron BeMiller, Director
Phone: 253-856-5260
Fax: 253-856-6255
Address: 220 Fourth Avenue S.
Kent, WA. 98032-5895
DATE: June 6, 2017
TO: Operations Committee
FROM: Aaron BeMiller, Director
SUBJECT: April Financial Report – Information Only
MOTION: Information Only
SUMMARY: The Finance Director will report on the April 2017 financial report.
BUDGET IMPACT:
BACKGROUND:
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14
2017
Adj Budget
2017
YTD
2017
Est Actual
Variance
Favorable
(Unfavorable)
%Variance
Favorable
(Unfavorable)
Revenues 93,795,960 35,196,620 95,325,780 1,529,820 1.6%
Expenditures 96,229,260 24,399,226 96,022,110 207,150 0.2%
Net Revenues Less Expenditures (2,433,300) 10,797,394 (696,330) 1,736,970
Beginning Fund Balance 19,481,298 19,481,298
Ending Fund Balance 17,047,998 18,784,968
Ending Fund Balance Detail:
General Fund Reserves 14,056,428 16,369,278
14.6% 17.0%
Contingency for Unanticipated Costs 1,500,000 1,500,000
Strategic Opportunities Fund 425,000 425,000
Restricted for Annexation 1,066,570 490,690
Revenue Overview
Expenditures Overview
April 2017 Monthly Financial Report
City of Kent, Washington
General Fund Overview
Summary
Analysis through April shows an overall positive budget variance of $1.7 million. The 2017 budget reflects an
expected use of $2.3 million of fund balance, including $2 million for Parks capital projects. The budgeted use of
fund balance is offset by the positive budget variance of $1.7 million, reducing the estimated actual use of fund
balance to less than $700k. General Fund Reserves are estimated to end the year at $16.3 million, or 17.0%.
Revenues are estimated to end the year at nearly $1.7 million (1.6%) higher than budgeted. Miscellaneous
revenues are estimated to come in $330k higher than budgeted.
Through April, all departments are remaining fairly close to budget.
15
Revenue Categories 2017
Adj Budget
2017
YTD
2017
Est Actual
Variance
Favorable
(Unfavorable)
%Variance
Favorable
(Unfavorable)
Taxes:
Property 22,782,330 10,675,686 23,001,900 219,570 1.0%
Sales & Use 19,756,570 6,768,552 19,697,300 (59,270)-0.3%
Utility 18,947,950 7,282,264 19,374,400 426,450 2.3%
Business & Occupation 8,900,000 2,236,028 9,148,300 248,300 2.8%
Other 882,090 207,578 895,880 13,790 1.6%
Licenses and Permits 5,611,350 2,233,268 5,624,300 12,950 0.2%
Intergovernmental Revenue 7,699,970 2,132,055 7,862,100 162,130 2.1%
Charges for Services 5,117,170 2,345,724 5,348,300 231,130 4.5%
Fines and Forfeitures 1,565,970 690,076 1,513,400 (52,570)-3.4%
Miscellaneous Revenue 1,582,560 625,388 1,909,900 327,340 20.7%
Transfers In 950,000 - 950,000 -
Total Revenues 93,795,960 35,196,620 95,325,780 1,529,820 1.6%
Variance Notes
April 2017 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.
Miscellaneous Revenue: Estimate year-end collections at $300k in excess of budget, largely due to increased
interest income ($30k) and reimbursements for police off-duty overtime ($270k).
16
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 4,829 5,464 5,578
February 5,138 5,225 5,024
March 6,546 7,439 7,586
April 16,091 14,962 17,008
May 6,600 7,175 0
June 5,578 6,225 0
July 6,545 6,040 0
August 5,395 5,068 0
September 6,531 6,810 0
October 16,476 15,667 0
November 6,303 6,086 0
December 9,602 7,635 0
Total 95,633 93,796 35,197
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 0 9 0
February 199 168 197
March 719 717 711
April 9,550 8,760 9,768
May 1,305 2,136 0
June 83 132 0
July 55 46 0
August 88 91 0
September 441 490 0
October 8,525 8,683 0
November 1,414 1,368 0
December 155 184 0
Total 22,534 22,782 10,676
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 1,461 1,507 1,686
February 2,026 1,974 1,986
March 1,519 1,448 1,550
April 1,575 1,457 1,547
May 1,739 1,641 0
June 1,236 1,347 0
July 1,560 1,614 0
August 1,798 1,785 0
September 1,594 1,676 0
October 1,691 1,660 0
November 1,822 1,812 0
December 1,793 1,834 0
Total 19,814 19,757 6,769
April 2017 Monthly Financial Report
City of Kent, Washington
General Fund Revenues ($ 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
17 Bud 16 Act 17 Act
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
17 Bud 16 Act 17 Act
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
17 Bud 16 Act 17 Act
17
April 2017 Monthly Financial Report
City of Kent, Washington
General Fund Revenues ($ in Thousands)
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 2,115 2,083 1,842
February 1,708 1,632 1,829
March 1,584 1,570 1,739
April 1,597 1,823 1,873
May 1,491 1,457 0
June 1,368 1,341 0
July 1,563 1,731 0
August 1,442 1,403 0
September 1,584 1,636 0
October 1,432 1,524 0
November 1,499 1,421 0
December 1,107 1,327 0
Total 18,490 18,948 7,282
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 1 8 1
February 2 37 4
March 165 171 494
April 1,383 1,841 1,945
May 737 446 0
June 115 128 0
July 1,632 1,661 0
August 775 457 0
September 169 139 0
October 2,293 1,953 0
November 239 288 0
December 2,761 2,655 0
Total 10,273 9,782 2,444
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 1,252 1,453 2,049
February 1,203 1,012 1,008
March 2,559 2,698 3,092
April 1,986 1,512 1,876
May 1,328 1,445 0
June 2,775 3,028 0
July 1,734 1,500 0
August 1,290 1,322 0
September 2,743 2,759 0
October 2,534 1,989 0
November 1,329 1,067 0
December 3,787 2,742 0
Total 24,521 22,527 8,027
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
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
17 Bud 16 Act 17 Act
$0
$2,000
$4,000
$6,000
$8,000
$10,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
17 Bud 16 Act 17 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
17 Bud 16 Act 17 Act
18
Department 2017
Adj Budget
2017
YTD
2017
Est Actual
Variance
Favorable
(Unfavorable)
%Variance
Favorable
(Unfavorable)
City Council 352,110 128,271 350,500 1,610 0.5%
Mayor's Office/City Clerk 2,709,760 813,311 2,623,300 86,460 3.2%
Economic & Community Dev 6,394,650 1,862,136 6,204,300 190,350 3.0%
Finance 2,734,560 751,673 2,658,500 76,060 2.8%
Fire Contracted Services 3,603,110 982,360 3,541,400 61,710 1.7%
Human Resources 1,977,930 566,309 1,886,700 91,230 4.6%
Information Technology 517,310 194,345 550,000 (32,690)-6.3%
Law 1,737,080 506,446 1,673,500 63,580 3.7%
Municipal Court 3,181,510 1,022,127 3,173,200 8,310 0.3%
Parks, Recreation & Comm Svcs 17,229,170 4,977,149 16,898,900 330,270 1.9%
Police 36,976,600 11,967,125 37,176,900 (200,300)-0.5%
Public Works 1,294,960 394,544 1,254,700 40,260 3.1%
Non-Departmental 17,520,510 233,430 18,030,210 (509,700)-2.9%
Total Expenditures 96,229,260 24,399,226 96,022,110 207,150 0.2%
Variance Notes
April 2017 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.
Non-Departmental: Reflects additional transfers out to street projects of $500k, which equals the anticipated
B&O revenue collections in excess of the budgeted amount.
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2015 2016 2017 2017 2017
Actual Actual Adj Budget YTD Est Actual
Beginning Fund Balance 11,312,140 15,372,499 19,481,298 19,481,298 19,481,298
Revenues
Taxes:
Property 22,015,525 22,534,441 22,782,330 10,675,686 23,001,900
Sales & Use 18,583,057 19,814,047 19,756,570 6,768,552 19,697,300
Utility 18,151,853 18,490,458 18,947,950 7,282,264 19,374,400
Business & Occupation 7,656,220 9,311,445 8,900,000 2,236,028 9,148,300
Other 1,023,500 961,833 882,090 207,578 895,880
Licenses and Permits 5,827,474 6,269,525 5,611,350 2,233,268 5,624,300
Intergovernmental Revenue 7,783,935 8,072,343 7,699,970 2,132,055 7,862,100
Charges for Services 5,814,133 5,363,205 5,117,170 2,345,724 5,348,300
Fines and Forfeitures 1,660,366 1,551,720 1,565,970 690,076 1,513,400
Miscellaneous Revenue 1,756,485 2,302,027 1,582,560 625,388 1,909,900
Transfers In 996,921 962,261 950,000 950,000
Total Revenues 91,269,469 95,633,303 93,795,960 35,196,620 95,325,780
Expenditures
City Council 298,884 337,355 352,110 128,271 350,500
Mayor's Office/City Clerk 2,211,861 2,339,581 2,709,760 813,311 2,623,300
Economic & Community Dev 5,345,212 5,521,764 6,394,650 1,862,136 6,204,300
Finance 2,419,039 2,751,128 2,734,560 751,673 2,658,500
Fire Contracted Services 3,513,988 3,556,484 3,603,110 982,360 3,541,400
Human Resources 1,039,875 1,733,010 1,977,930 566,309 1,886,700
Information Technology 456,328 509,617 517,310 194,345 550,000
Law 1,198,769 1,458,153 1,737,080 506,446 1,673,500
Municipal Court 2,988,951 3,079,215 3,181,510 1,022,127 3,173,200
Parks, Recreation & Comm Svcs 15,595,739 16,027,802 17,229,170 4,977,149 16,898,900
Police 32,992,234 35,155,894 36,976,600 11,967,125 37,176,900
Public Works 4,896,300 1,273,864 1,294,960 394,544 1,254,700
Non-Departmental 14,251,930 17,780,636 17,520,510 233,430 18,030,210
Total Expenditures 87,209,110 91,524,504 96,229,260 24,399,226 96,022,110
Net Revenues less Expenditures 4,060,359 4,108,799 (2,433,300) 10,797,394 (696,330)
Ending Fund Balance 15,372,499 19,481,298 17,047,998 30,278,692 18,784,968
Ending Fund Balance Detail:
General Fund Reserves 11,749,159 16,489,728 14,056,428 16,369,278
based on same year actuals/budget 13.5% 18.0% 14.6%17.0%
Contingency for Unanticipated Costs 1,500,000 1,500,000 1,500,000 1,500,000
Strategic Opportunities Fund 425,000 425,000 425,000 425,000
Restricted for Annexation 1,698,340 1,066,570 1,066,570 490,690
April 2017 Monthly Financial Report
City of Kent, Washington
General Fund
20
2015 2016 2017 % of
thru April thru April thru April Budget
Revenues
Taxes:
Property 9,742,293 10,467,541 10,675,686 208,145 2.0% 46.9%
Sales & Use 6,074,745 6,580,132 6,768,552 188,419 2.9% 34.3%
Utility 7,389,338 7,004,076 7,282,264 278,188 4.0% 38.4%
Business & Occupation 1,662,716 1,335,170 2,236,028 900,858 67.5% 25.1%
Other 254,086 215,766 207,578 (8,188) -3.8% 23.5%
Licenses and Permits 1,431,657 2,063,585 2,233,268 169,683 8.2% 39.8%
Intergovernmental Revenue 1,967,346 2,160,752 2,132,055 (28,698) -1.3% 27.7%
Charges for Services 2,024,435 1,746,016 2,345,724 599,708 34.3% 45.8%
Fines and Forfeitures 543,857 512,731 690,076 177,345 34.6% 44.1%
Miscellaneous Revenue 489,969 518,088 625,388 107,301 20.7% 39.5%
Transfers In - - -
Total Revenues 31,580,441 32,603,858 35,196,620 2,592,762 8.0% 37.5%
Expenditures
City Council 102,380 104,260 128,271 24,010 23.0% 36.4%
Mayor's Office/City Clerk 719,974 834,913 813,311 (21,602) -2.6% 30.0%
Economic & Community Dev 1,757,407 1,749,538 1,862,136 112,598 6.4% 29.1%
Finance 682,784 810,818 751,673 (59,145) -7.3% 27.5%
Fire Contracted Services 1,027,453 950,831 982,360 31,528 3.3% 27.3%
Human Resources 363,987 522,002 566,309 44,308 8.5% 28.6%
Information Technology 121,422 172,070 194,345 22,275 12.9% 37.6%
Law 418,715 473,991 506,446 32,455 6.8% 29.2%
Municipal Court 965,665 1,000,437 1,022,127 21,690 2.2% 32.1%
Parks, Recreation & Comm Svcs 4,865,007 4,983,451 4,977,149 (6,302) -0.1% 28.9%
Police 10,524,078 11,219,910 11,967,125 747,215 6.7% 32.4%
Public Works *1,386,927 586,743 394,544 (192,199) -32.8% 30.5%
Non-Departmental 81,282 464,715 233,430 (231,285) -49.8% 1.3%
Total Expenditures 23,017,081 23,873,680 24,399,226 525,546 2.2% 25.4%
* Most Public Works costs were moved to the Street Operating Fund effective January 1, 2016. Only costs
allocated to the Panther Lake annexation remain in the General Fund.
2016-17
Variance
April 2017 Monthly Financial Report
City of Kent, Washington
Year-to-Year Month Comparison
General Fund
21
2015 2016 2017 2017 2017
Actual Actual Budget YTD Est Actual
Operating revenues and expenditures only, capital is excluded.
In instances where expenditures exceed revenues, fund balance is being utilized.
Street Fund
Revenues 11,793,043 15,609,051 12,272,430 3,584,238 12,595,520
Expenditures 9,072,561 14,719,693 12,373,160 2,570,546 12,371,030
Net Revenues Less Expenditures 2,720,483 889,358 (100,730)1,013,692 224,490
LEOFF 1 Retiree Benefits
Revenues 1,341,722 1,035,289 1,148,730 338,549 1,113,900
Expenditures 1,279,216 954,561 1,163,220 375,671 1,047,300
Net Revenues Less Expenditures 62,506 80,728 (14,490)(37,122)66,600
Lodging Tax
Revenues 279,878 294,859 281,000 70,953 302,700
Expenditures 257,164 219,989 278,060 52,679 218,800
Net Revenues Less Expenditures 22,714 74,870 2,940 18,275 83,900
Youth/Teen Programs
Revenues 894,592 911,855 928,600 364,656 927,200
Expenditures 920,380 942,000 942,000 942,000
Net Revenues Less Expenditures (25,788)(30,145)(13,400)364,656 (14,800)
Capital Resources
Revenues 20,561,359 21,126,646 12,738,960 3,927,923 13,869,150
Expenditures 11,538,631 15,566,060 15,498,530 358,250 15,170,000
Net Revenues Less Expenditures 9,022,728 5,560,586 (2,759,570)3,569,673 (1,300,850)
Criminal Justice
Revenues 4,753,967 4,873,770 4,126,810 1,613,449 4,758,000
Expenditures 2,965,408 3,156,208 4,553,970 1,248,504 3,120,000
Net Revenues Less Expenditures 1,788,558 1,717,562 (427,160)364,945 1,638,000
Community Development Block Grant
Revenues 808,466 839,392 1,056,260 142,611 1,056,260
Expenditures 808,466 839,392 1,056,260 230,293 1,056,260
Net Revenues Less Expenditures (87,682)
ShoWare Operating
Revenues 1,680,882 1,647,988 1,150,000 108,389 1,150,000
Expenditures 518,720 1,097,457 1,089,320 156,620 796,550
Net Revenues Less Expenditures 1,162,163 1,129,269 60,680 (48,231)353,450
Other Operating
Revenues 143,726 172,195 116,520 36,930 116,520
Expenditures 64,765 89,077 116,520 4,023 98,000
Net Revenues Less Expenditures 78,961 83,119 32,907 18,520
Special Revenue Funds
April 2017 Monthly Financial Report
Other Funds Overview (Revenues and Expenditures)
City of Kent, Washington
2015: Net revenues less expenditures include $2.27m street operating revenues returned from LID funded
projects. These funds have been allocated to projects in the 2016 budget.
2016: Includes street and transportation revenues and costs moved from the General Fund.
22
2015 2016 2017 2017 2017
Actual Actual Budget YTD Est Actual
Operating revenues and expenditures only, capital is excluded.
In instances where expenditures exceed revenues, fund balance is being utilized.
April 2017 Monthly Financial Report
Other Funds Overview (Revenues and Expenditures)
City of Kent, Washington
Water Utility
Revenues 20,140,494 21,140,582 21,586,500 7,064,575 21,925,000
Expenditures 17,620,354 18,076,074 24,298,380 4,051,825 24,068,490
Net Revenues Less Expenditures 2,520,140 3,064,508 (2,711,880)3,012,750 (2,143,490)
Sewer/Drainage Utility
Revenues 48,525,436 52,152,841 50,662,400 16,979,587 51,055,150
Expenditures 47,086,396 48,908,079 48,553,060 13,122,348 48,512,760
Net Revenues Less Expenditures 1,439,040 3,244,762 2,109,340 3,857,239 2,542,390
Solid Waste Utility
Revenues 608,685 600,000 200,232 600,000
Expenditures 365 471,179 578,510 136,734 464,010
Net Revenues Less Expenditures (365)137,506 21,490 63,498 135,990
Golf Complex
Revenues 2,661,490 2,475,682 2,871,410 490,480 2,305,000
Expenditures 2,867,873 3,188,762 2,808,280 779,391 2,810,000
Net Revenues Less Expenditures (206,383)(713,080)63,130 (288,911)(505,000)
Fleet Services
Revenues 4,538,925 4,769,001 4,715,900 1,138,412 4,752,000
Expenditures 3,195,504 3,974,431 5,685,510 847,121 4,058,000
Net Revenues Less Expenditures 1,343,420 794,570 (969,610)291,291 694,000
Central Services
Revenues 372,070 382,444 446,510 108,312 362,000
Expenditures 350,962 399,786 421,150 81,915 372,200
Net Revenues Less Expenditures 21,108 (17,342)25,360 26,396 (10,200)
Information Technology
Revenues 7,603,220 7,717,834 7,962,060 2,622,784 7,969,550
Expenditures 6,708,773 6,905,076 8,683,630 2,370,446 8,655,460
Net Revenues Less Expenditures 894,447 812,757 (721,570)252,337 (685,910)
Facilities
Revenues 5,429,412 5,556,854 4,728,530 1,562,151 4,768,750
Expenditures 5,527,155 4,881,741 5,002,870 1,306,714 4,977,300
Net Revenues Less Expenditures (97,744)675,113 (274,340)255,437 (208,550)
Unemployment
Revenues 397,641 420,226 121,700 69,466 130,000
Expenditures 98,860 126,718 168,810 20,279 145,000
Net Revenues Less Expenditures 298,781 293,508 (47,110)49,187 (15,000)
Enterprise Funds
Internal Service Funds
23
2015 2016 2017 2017 2017
Actual Actual Budget YTD Est Actual
Operating revenues and expenditures only, capital is excluded.
In instances where expenditures exceed revenues, fund balance is being utilized.
April 2017 Monthly Financial Report
Other Funds Overview (Revenues and Expenditures)
City of Kent, Washington
Workers Compensation
Revenues 1,095,382 1,251,586 1,023,800 343,075 1,023,800
Expenditures 681,822 1,436,775 1,397,280 345,943 1,121,680
Net Revenues Less Expenditures 413,560 (185,190)(373,480)(2,868)(97,880)
2015: Revenues reflect 2015-16 rate reduction, with GF savings going to the CR Fund to reduce the deficit.
Employee Health & Wellness
Revenues 10,487,102 10,688,926 10,432,600 3,645,397 10,680,000
Expenditures 11,298,096 12,130,696 11,936,000 4,429,376 11,705,930
Net Revenues Less Expenditures (810,993)(1,441,770)(1,503,400)(783,979)(1,025,930)
Liability Insurance
Revenues 1,135,932 1,498,137 1,249,000 431,191 1,252,000
Expenditures 1,187,054 2,145,627 1,863,100 1,892,934 2,150,000
Net Revenues Less Expenditures (51,122)(647,489)(614,100)(1,461,743)(898,000)
2017: YTD expenditures include claims paid for which reimbursement will be received.
Property Insurance
Revenues 582,938 628,105 554,820 186,644 558,000
Expenditures 471,003 445,135 500,810 241,693 532,100
Net Revenues Less Expenditures 111,935 182,969 54,010 (55,050)25,900
24
2015 2016 2017
thru April thru April thru April
Operating revenues and expenditures only, capital is excluded.
Street Fund
Revenues 2,656,382 4,199,761 3,584,238 (615,523)-14.7%
Expenditures 734,802 2,725,082 2,570,546 (154,536)-5.7%
Net Revenues Less Expenditures 1,921,580 1,474,679 1,013,692
2016 includes street and transportation revenues and costs moved from the General Fund.
LEOFF 1 Retiree Benefits
Revenues 154,350 16,589 338,549 321,960 1940.8%
Expenditures 431,480 288,524 375,671 87,147 30.2%
Net Revenues Less Expenditures (277,129)(271,936)(37,122)
2016 revenues reflect a timing difference because of revenues that were not booked until June.
Lodging Tax
Revenues 58,590 66,326 70,953 4,627 7.0%
Expenditures 13,195 54,104 52,679 (1,425)-2.6%
Net Revenues Less Expenditures 45,395 12,222 18,275
2016 expenditures reflect increased marketing activities.
Youth/Teen Programs
Revenues 342,358 337,069 364,656 27,587 8.2%
Expenditures - - -
Net Revenues Less Expenditures 342,358 337,069 364,656
Capital Resources
Revenues 3,789,259 4,555,415 3,927,923 (627,491)-13.8%
Expenditures 326,439 761,312 358,250 (403,062)-52.9%
Net Revenues Less Expenditures 3,462,820 3,794,103 3,569,673
Expenditures higher in 2015 and 2017 due to land purchases in Q1.
Criminal Justice
Revenues 1,243,553 1,595,811 1,613,449 17,638 1.1%
Expenditures 965,092 932,151 1,248,504 316,353 33.9%
Net Revenues Less Expenditures 278,461 663,660 364,945
2016 increase in revenues due to strong sales tax trends and an increase in seized assets.
Community Development Block Grants
Revenues 127,388 112,810 142,611 29,801 26.4%
Expenditures 208,974 209,871 230,293 20,422 9.7%
Net Revenues Less Expenditures (81,587)(97,061)(87,682)
Lag in grant reimbursement for expenses incurred.
ShoWare Operating
Revenues 81,282 125,148 108,389 (16,759)-13.4%
Expenditures 21,811 137,215 156,620 19,405 14.1%
Net Revenues Less Expenditures 59,471 (12,067)(48,231)
Admissions Tax revenues received quarterly (April, July, September, January)
2016-17
Variance
Year-to-Year Month Comparison
April 2017 Monthly Financial Report
City of Kent, Washington
Other Funds Overview (Revenues and Expenditures)
Special Revenue Funds
25
2015 2016 2017
thru April thru April thru April
Operating revenues and expenditures only, capital is excluded.
2016-17
Variance
Year-to-Year Month Comparison
April 2017 Monthly Financial Report
City of Kent, Washington
Other Funds Overview (Revenues and Expenditures)
Other Operating
Revenues 1,120 1,630 36,930 35,300 2165.6%
Expenditures 6,006 19,852 4,023 (15,829)-79.7%
Net Revenues Less Expenditures (4,886)(18,222)32,907
Combines several small programs, including City Art Program and Neighborhood Matching Grants
Water Utility
Revenues 5,118,753 5,379,334 7,064,575 1,685,241 31.3%
Expenditures 3,661,386 3,569,729 4,051,825 482,097 13.5%
Net Revenues Less Expenditures 1,457,367 1,809,605 3,012,750
Sewer/Drainage Utility
Revenues 15,471,771 15,835,683 16,979,587 1,143,904 7.2%
Expenditures 11,705,403 12,201,817 13,122,348 920,530 7.5%
Net Revenues Less Expenditures 3,766,368 3,633,866 3,857,239
Solid Waste Utility
Revenues 208,110 200,232 (7,878)-3.9%
Expenditures 128,526 136,734 8,208 6.0%
Net Revenues Less Expenditures 79,584 63,498
Solid Waste Utility established in 2016.
Golf Complex
Revenues 654,417 600,345 490,480 (109,865)-18.3%
Expenditures 790,881 866,256 779,391 (86,865)-10.0%
Net Revenues Less Expenditures (136,464)(265,911)(288,911)
2016 & 2017 revenues down due to inclement weather conditions in Q1.
Fleet Services
Revenues 766,955 1,007,230 1,138,412 131,182 13.0%
Expenditures 537,173 739,014 847,121 108,107 14.6%
Net Revenues Less Expenditures 229,781 268,216 291,291
Central Services
Revenues 117,693 134,110 108,312 (25,799)-19.2%
Expenditures 130,277 116,070 81,915 (34,155)-29.4%
Net Revenues Less Expenditures (12,584)18,040 26,396
Information Technology
Revenues 2,310,748 2,516,499 2,622,784 106,285 4.2%
Expenditures 2,194,139 2,262,097 2,370,446 108,350 4.8%
Net Revenues Less Expenditures 116,608 254,402 252,337
Facilities
Revenues 1,765,179 1,795,110 1,562,151 (232,959)-13.0%
Expenditures 1,343,999 1,414,727 1,306,714 (108,012)-7.6%
Net Revenues Less Expenditures 421,180 380,383 255,437
Internal Service Funds
Enterprise Funds
26
2015 2016 2017
thru April thru April thru April
Operating revenues and expenditures only, capital is excluded.
2016-17
Variance
Year-to-Year Month Comparison
April 2017 Monthly Financial Report
City of Kent, Washington
Other Funds Overview (Revenues and Expenditures)
Unemployment
Revenues 131,847 138,310 69,466 (68,845)-49.8%
Expenditures 32,992 49,731 20,279 (29,452)-59.2%
Net Revenues Less Expenditures 98,856 88,579 49,187
Workers Compensation
Revenues 361,015 392,574 343,075 (49,500)-12.6%
Expenditures 287,305 361,225 345,943 (15,282)-4.2%
Net Revenues Less Expenditures 73,711 31,350 (2,868)
Employee Health & Wellness
Revenues 3,462,439 3,508,466 3,645,397 136,931 3.9%
Expenditures 3,559,104 4,285,944 4,429,376 143,432 3.3%
Net Revenues Less Expenditures (96,664)(777,478)(783,979)
Liability Insurance
Revenues 377,988 380,558 431,191 50,633 13.3%
Expenditures 925,932 1,211,719 1,892,934 681,215 56.2%
Net Revenues Less Expenditures (547,944)(831,161)(1,461,743)
Property Insurance
Revenues 194,310 204,180 186,644 (17,537)-8.6%
Expenditures 248,147 243,733 217,064 (26,670)-10.9%
Net Revenues Less Expenditures (53,838)(39,553)(30,420)
27
2017 2017 2017 2017
Beginning
Fund Balance
Estimated
Revenues
Estimated
Expenditures
Ending Fund
Balance
Operating funds only, capital funds are excluded.
General Fund 19,481,298 94,779,040 94,374,910 19,885,428
Street Fund 3,625,413 12,595,520 12,371,030 3,849,903
LEOFF 1 Retiree Benefits 1,174,261 1,113,900 1,047,300 1,240,861
Lodging Tax 469,387 302,700 218,800 553,287
Youth/Teen Programs 91,130 927,200 942,000 76,330
Capital Resources 11,277,727 13,869,150 15,170,000 9,976,877
Criminal Justice 5,697,717 4,758,000 3,120,000 7,335,717
Community Development Block Grants 1,056,260 1,056,260
ShoWare Operating 2,147,074 1,150,000 796,550 2,500,524
Other Operating 436,914 116,520 98,000 455,434
Councilmanic Debt Service 521,394 10,781,200 10,316,410 986,184
Special Assessments Debt Service 1,188,906 1,561,380 2,585,830 164,456
Water Utility 10,966,106 21,925,000 24,068,490 8,822,616
Sewer/Drainage Utility 11,295,548 51,055,150 48,512,760 13,837,938
Solid Waste Utility 302,528 600,000 464,010 438,518
Golf Complex (3,768,128) 2,305,000 2,780,000 (4,243,128)
Fleet Services 5,134,423 4,752,000 4,058,000 5,828,423
Central Services (63,568) 362,000 372,200 (73,768)
Information Technology 3,640,615 7,969,550 8,655,460 2,954,705
Facilities 2,340,684 4,768,750 4,977,300 2,132,134
Unemployment 1,332,446 130,000 145,000 1,317,446
Workers Compensation 2,356,624 1,023,800 1,121,680 2,258,744
Employee Health & Wellness 4,681,152 10,680,000 11,705,930 3,655,222
Liability Insurance 1,805,167 1,252,000 2,150,000 907,167
Property Insurance 531,548 558,000 532,100 557,448
Internal Service Funds
General Fund
April 2017 Monthly Financial Report
City of Kent, Washington
Fund Balances
Special Revenue Funds
Enterprise Funds
Debt Service Funds
28
Kent Council Operations Committee
FINANCE DEPARTMENT
Aaron BeMiller, Director
Phone: 253-856-5260
Fax: 253-856-6255
Address: 220 Fourth Avenue S.
Kent, WA. 98032-5895
DATE: June 6, 2017
TO: Operations Committee
FROM: Aaron BeMiller, Director
SUBJECT: Director’s Report – Information Only
MOTION: No motion: Non-action item
SUMMARY: The Finance Director will report out financial or operational item(s).
BUDGET IMPACT: n/a
BACKGROUND: n/a
29
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