HomeMy WebLinkAboutCity Council Committees - Operations Committee - 09/19/2017 (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 Fourth Ave S, Kent, WA
98032.
For additional information please contact Jennifer Hays at 253-856-5700, or via email at
jhays@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 Washingto n
Telecommunications Relay Service at 1-800-833-6388.
Operations Committee Agenda
Councilmembers: Bill Boyce – Les Thomas – Dana Ralph, Chair
September 19, 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 Report
dated 8/16/17 thru 8/31/17
YES Chair Ralph
5. Approval of Minutes dated September 5,
2017
YES Chair Ralph 2 1
6. Ordinance approving the indirect change
of control of Astound Broadband, LLC
d/b/a Wave Franchise – Recommend
YES Christina Schuck 10 3
7. Internal Financing – Phase 1 LID 363
Project - Recommend
YES Aaron BeMiller 5 13
8. City of Kent Fund Balance Policy –
Information Only
NO Aaron BeMiller 5 19
9. July Financial Report – Information Only NO Aaron BeMiller 5 27
10. Director’s Report – Information Only NO Aaron BeMiller 5 43
8.
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Operations Committee
Minutes
Approval Pending
Page 1 of 2
Date: September 5, 2017
Time: 4:00 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 8/1/2017 thru 8/15/2017.
L. Thomas moved to approve the check summary report dated 8/1/2017 thru
8/15/2017. B. Boyce seconded the motion, which passed 3-0.
5. Approval of Meeting Minutes dated August 15, 2017.
B. Boyce moved to approve the Operations Committee meeting minutes dated
August 15, 2017. L. Thomas seconded the motion, which passed 3-0.
6. Non-Represented Salary Survey Results - Recommend.
Human Resources Director Marty Fisher and Labor Relations Manager Leialani
Jensen made a request to move forward the salary results for non-represented
positions; it has been over 10 years since the last survey was conducted. In
order for the City to stay fair and have competitive salaries to motivate the
loyalty, retention and contribution of employees, last year City Council
requested the Human Resources Department (HR) to conduct the survey with
comparable cities’ salaries.
Data was collected for 40 benchmark (specialty and technical classifications)
positions by task force members comprised of city department representatives
and from HR. The information was then analyzed and discussed by department
subject matter experts.
Committee members wanted to ensure process is even with bargaining groups
and non-represented personnel. Specific questions members have are:
When have salary surveys been done in the past for AFSCME?
How many positions are there in AFSCME, and of those how many were
surveyed?
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Operations Committee
Minutes
Approval Pending
Page 2 of 2
How many positions are there in non-represented, and of those how
many were surveyed?
How many positions are there in Teamsters, and of those how many
were surveyed?
Why are we implementing as of January 1, 2018?
Staff will meet with the committee Chair prior to the September 19 City
Council meeting to work through the questions. It was suggested that if
questions were not addressed by the next council meeting, councilmembers
would consider pulling the item from the consent calendar at that time.
L. Thomas moved to recommend the City Council authorize the Mayor to
implement results of the salary survey for non-represented employees. B.
Boyce seconded the motion, which passed 3-0.
7. Adjournment.
The meeting was adjourned at 4:48 p.m. by D. Ralph.
J. Hays
Jennifer Hays
Operations Committee Secretary
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Office of the City Attorney
Tom Brubaker, City Attorney
Phone: 253-856-5770
Fax: 253-856-6770
Address: 220 Fourth Avenue S.
Kent, WA. 98032-5895
DATE: September 19, 2017
TO: Operations Committee
FROM: Christina Schuck, Civil Attorney
SUBJECT: Ordinance approving the indirect change of control of Astound
Broadband, LLC d/b/a Wave Franchise – Recommend
MOTION: Recommend Council adopt an Ordinance approving the resulting
indirect change of control of the Astound Broadband, LLC d/b/a Wave
franchise with conditions and establishing an effective date, subject to
final approval by the city attorney.
SUMMARY: On April 7, 2015, the City adopted Ordinance No. 4144, effective April
15, 2015, granting a nonexclusive telecommunications franchise to Astound
Broadband, LLC d/b/a Wave (“Franchisee”) to operate a telecommunications
system within the City.
On May 18, 2017, Radiate Holdco, LLC (“Radiate”) entered into an agreement to
acquire all of the outstanding membership interests of Wave Holdco, LLC, which is
the parent company of Franchisee. This is considered an indirect change of control
because the transaction occurs on the parent company level and the franchise itself
will continue to be held by Astound.
Section 28 of the franchise requires that the City approve the indirect transfer of
control. Following this indirect change of control, the Franchisee will continue to
remain bound by the terms of the franchise and will continue to remain responsible
for the obligations within the franchise. The consent of the City to the indirect
change of control shall not constitute a waiver or release of any rights the City may
have under the franchise.
EXHIBIT: Ordinance
BUDGET IMPACT: None
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1 Ordinance – Change of Control-
Astound Broadband to Radiate Holdings
ORDINANCE NO.
AN ORDINANCE of the City Council of the
City of Kent, Washington, approving the indirect
change of control of Astound Broadband, LLC d/b/a
Wave with conditions and establishing an effective
date.
RECITALS
A. On April 7, 2015, the City of Kent (the “City”) adopted
Ordinance No. 4144 granting a nonexclusive telecommunications franchise
to Astound Broadband, LLC d/b/a Wave (the “Franchisee”) to operate a
telecommunications system (the “System”) within the city limits of the City
of Kent, with an effective date of April 15, 2015 (the “Franchise”); and
B. Franchisee is a wholly-owned, indirect subsidiary of Wave
Holdco, LLC, a Delaware limited liability company (“Wave Parent”); and
C. On May 18, 2017, Radiate HoldCo, LLC, a Delaware limited
liability company (“Radiate HoldCo”), Wave Parent, and WaveDivision
Holdings, LLC, a Delaware limited liability company controlled by Wave
Parent, entered into a definitive agreement pursuant to which Radiate
HoldCo will acquire Wave Parent from its current majority owners (the
“Transaction”); and
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2 Ordinance – Change of Control-
Astound Broadband to Radiate Holdings
D. Radiate HoldCo is a wholly-owned, indirect subsidiary of, and
is controlled by, Radiate Holdings, L.P. a Delaware limited partnership
(“Radiate Parent”); and
E. As a result of this Transaction, Radiate Parent will acquire
ownership of Wave Parent and control of the Franchisee; and
F. Section 28 of the Franchise requires that the Franchisee
receive the consent of the City for any indirect change of control including
such indirect change of control that will occur as a result of this
Transaction; and
G. The consent of the City to the indirect change of control that
will occur as a consequence of the closing of the Transaction shall not
constitute a waiver or release of any rights the City or Franchisee may
have under the Franchise; and
H. The City Council deems it to be in the public interest to grant
the requested consent; NOW THEREFORE,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 1. – Consent. The City hereby consents to the indirect
change of control that will occur as a consequence of the closing of the
Transaction and in accordance with the terms of applicable law, subject to
and contingent on the fulfillment of the conditions set forth in Section 2.
SECTION 2. - Section 1 of this Ordinance is contingent on the
fulfillment of the following condition: Radiate Parent shall acknowledge
that the indirect change of control will not affect, diminish, impair or
supersede the binding nature of the Franchise and any other ordinances,
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3 Ordinance – Change of Control-
Astound Broadband to Radiate Holdings
resolutions, and agreements, if any, applicable to the operation of the
System in the City. Further, Radiate Parent shall acknowledge that the
Franchisee shall remain responsible for any and all non-compliance issues,
if any, under the Franchise and any other ordinances, resolutions, and
agreements, if any, applicable to the operation of the System in the City
that may have arisen prior to or that may arise contemporaneous with or
after the closing of the Transaction.
SECTION 3. – Following the indirect change of control and the
City’s receipt of the written acknowledgement from Radiate Parent
required by Section 2, the Franchise shall remain in full effect through the
remainder of the Franchise term. The Transaction and the City’s consent
to the indirect change of control do not modify the terms of the Franchise.
Franchisee remains responsible for any obligations and liabilities under the
Franchise. The City’s consent to the indirect change of control shall not be
construed to constitute a waiver or release of any rights the City may have
now or in the future under federal, state or local law, the Franchise, or any
separate written agreements, if any, between the City and the Franchisee
that relate to the Franchise.
SECTION 4. – By consenting to this indirect change of control, the
City expressly reserves and does not waive or release any rights of the
City in and to the rights-of-way as provided by state law and the Kent
Municipal Code, nor does the City waive or release any claim or issue of
non-compliance it may have, known or unknown, now or in the future
related to the Franchise.
SECTION 5. – Written acknowledgement as provided in Section 2
has been filed by Radiate Parent with the City Clerk. If any of the
construction and completion bonds, security funds or insurance are
amended as a result of the indirect change of control, then Franchisee
shall file with the City Clerk such revised bonds, security funds or evidence
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4 Ordinance – Change of Control-
Astound Broadband to Radiate Holdings
of insurance within sixty (60) days of the date of the closing of the
Transaction.
SECTION 6. – To the best of the City’s knowledge and belief, there
are no existing facts or circumstances that with or without the giving of
notice or the passage of time, or both, would constitute a default of any
term or condition of the Franchise.
SECTION 7. – Severability. If any one or more section, subsection,
or sentence of this ordinance is held to be unconstitutional or invalid, such
decision shall not affect the validity of the remaining portion of this
ordinance and the same shall remain in full force and effect.
SECTION 8. – 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 9. – Effective Date. This ordinance shall take effect and
be in force five days after its publication as provided by law.
SUZETTE COOKE, MAYOR Date Approved
ATTEST:
KIMBERLY A. KOMOTO, CITY CLERK Date Adopted
Date Published
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5 Ordinance – Change of Control-
Astound Broadband to Radiate Holdings
APPROVED AS TO FORM:
TOM BRUBAKER, CITY ATTORNEY
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6 Ordinance – Change of Control-
Astound Broadband to Radiate Holdings
SUMMARY OF ORDINANCE NO. _______
City of Kent, Washington
___________________________________________________________
___________________
On the ___ day of _______, 2017, the City Council of the City of
Kent passed Ordinance No. __________.A summary of the content of said
Ordinance, consisting of the title, is provided as follows:
AN ORDINANCE OF THE CITY OF KENT,
WASHINGTON, APPROVING THE INDIRECT
CHANGE OF CONTROL OF ASTOUND
BROADBAND, LLC D/B/A/ WAVE WITH
CONDITIONS AND ESTABLISHING AN
EFFECTIVE DATE.
The full text of this Ordinance will be mailed upon request.
___________________________________
CITY CLERK
KIMBERLEY KOMOTO
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7 Ordinance – Change of Control-
Astound Broadband to Radiate Holdings
STATEMENT OF ACKNOWLEDGEMENT
WHEREAS, the City Council of the City of Kent, Washington, has
acknowledged the pending transaction (the “Transaction”) between Wave
Holdco, LLC, WaveDivision Holdings, LLC (“Wave”), the parent companies
of Astound Broadband d/b/a Wave (“Franchisee”), and Radiate Holdco,
LLC, a wholly-owned, indirect subsidiary of Radiate Holdings, L.P.
(“Radiate”) and has consented to the resulting indirect change of control
of the Franchisee, the holder of the telecommunications franchise (the
“Franchise”) issued by the City to the Franchisee as Ordinance No. 4144.
NOW, THEREFORE, Radiate, hereby acknowledges said Franchise
and all the terms and conditions thereof, and files this, its written
acknowledgement of the indirect change of control of the Franchisee.
Radiate hereby acknowledges that the indirect change of control will
not affect, diminish, impair or supersede the binding nature of the
Franchise and any other ordinances, resolutions, and agreements, if any,
applicable to the operation of the System in the City. Radiate hereby
agrees that, Franchisee will comply with the Franchise, and remain subject
to the Franchise, the Kent Municipal Code and all applicable federal and
state laws, lawful orders, contracts, agreements, commitments, and
regulatory actions. Radiate affirms that all bonds, security funds and
insurance required by the Franchise remain in full effect and in place.
Further, Radiate acknowledges that the Franchisee shall remain
responsible for any and all non-compliance issues, if any, under the
Franchise and any other ordinances, resolutions, and agreements, if any,
applicable to the operation of the System in the City that may have arisen
prior to or that may arise contemporaneous with or after the closing of the
Transaction.
This Statement of Acknowledgement is contingent upon the
consummation of the Transaction.
IN TESTIMONY WHEROF, Radiate, has caused this written
Statement of Acknowledgement to be executed in its name by its duly
authorized officer on this ________ day of _____________________,
2017.
RADIATE HOLDINGS, L.P.
By: ___________________________________
Name Printed: ___________________________
Title: __________________________________
__________________, 2017
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8 Ordinance – Change of Control-
Astound Broadband to Radiate Holdings
STATE OF _______________ )
)ss.
COUNTY OF ___________ )
I certify that I know or have satisfactory evidence that
is the person who appeared before me, and said person
acknowledged that he signed this instrument, on oath stated that he was
authorized to execute the instrument and acknowledged it as the
of _________________, to be the free and voluntary act of
such party for the uses and purposes mentioned in the instrument.
DATED: _______________________
Printed:
Notary Public in and for ___________,
My appointment expires:
Received by the City of Kent on ____________________, 2017
By: ____________________________
City Clerk, Kimberley Komoto
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FINANCE DEPARTMENT
Aaron BeMiller, Director
Phone: 253-856-5260
Fax: 253-856-6255
Address: 220 Fourth Avenue S.
Kent, WA. 98032-5895
DATE: September 19, 2017
TO: Operations Committee
FROM: Aaron BeMiller, Director
SUBJECT: Internal Financing – Phase 1 LID 363 Project - Recommend
MOTION: Recommend Council adopt an ordinance approving the internal
financing for Phase 1 of the LID 363 Project in an amount not to exceed
$3,200,000.
SUMMARY: The Public Works Committee has requested that an internal financing
for Phase 1 of Public Works LID 363 224th Street Project be brought before
Operations for consideration. The internal loan of $3,200,000 will be funded from
the following sources and amounts:
Sewerage Operating Fund: $3,200,000
The interfund loan will be paid back in annual installments of $350,306.58 over a
period not to exceed ten (10) years. The source of funds is future LID 363
collections. LID 363 collections are scheduled through 2027 with an average annual
payment to the City of $527,000. Annual debt payments will be made by the
finance department from those LID collections. The debt service schedule is set
forth in Exhibit A, which is attached and incorporated into the ordinance.
Unless modified by the City Council, the term of the internal financing shall not
exceed ten (10) years and the annual interest rate is to be the higher of 1.68
percent or the annualized interest rate earned on the investments in the LGIP (Local
Government Investment Pool). The interest rate will be reviewed at the end of each
fiscal year and the debt service recalculated if necessary. There is no penalty for
early payment of the debt. Any payment above the required annual amount of
$350,306.58 will be applied to principal and interest on outstanding principal will be
recalculated.
As provided in the City’s new Debt Management Policy, the City will issue long-term
debt for capital projects which cannot reasonably be financed on a pay-as-you-go
funding strategy from anticipated cash flows. The City may issue interfund loans
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rather than outside debt as a means of financing capital improvements. The
issuance of an interfund loan is permissible only after an analysis of the loaning
fund indicate that excess funds are available and the use of these funds will not
impact the loaning fund’s current operations or constitute a permanent diversion of
funds.
BUDGET IMPACT: $350,306.58 annual debt service paid from LID collections
BACKGROUND:
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1 2017 Internal Financing
Phase 1 – LID 363
ORDINANCE NO.
AN ORDINANCE of the City Council of the
City of Kent, Washington, approving an internal
financing for Phase 1 of the LID 363 South 224th
Street Project not to exceed $3,200,000. The
Council approves a ten (10) year repayment
schedule for the long-term internal financing.
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES
HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 1. - Internal Financing. The City Council approves the
internal funding for Phase 1 of the LID 363 South 224th Street Project to
come from the following sources and amounts:
Sewerage Operating Fund: $3,200,000
The interfund loan will be internally financed over a period not to exceed
ten (10) years and will include interest. The total cost for this phase of the
project is $22.8 million.
SECTION 2. - Repayment. The interfund loan will be paid back in
annual installments of $350,306.58 over a period of not to exceed ten (10)
years. The source of funds is future LID 363 collections. LID 363
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2 2017 Internal Financing
Phase 1 – LID 363
collections are scheduled through 2027 with an average annual payment to
the City of $527,000. Annual debt payments will be made by the finance
department from those LID collections as summarized and set forth in
Exhibit A, which is attached and incorporated into this ordinance.
SECTION 3. - Financing Terms. Unless modified by the City Council,
the term of the internal financing shall be not exceed ten (10) years and
the annual interest rate is to be the higher of 1.68% or the annualized
interest rate earned on the investments in the LGIP (Local Government
Investment Pool). The interest rate will be reviewed at the end of each
fiscal year and the debt service recalculated if necessary. There is no
penalty for early payment of the debt. Any payment above the required
annual amount of $350,306.58 will applied to principal and interest on
outstanding principal will be recalculated.
SECTION 4. – Severability. If any one or more section, subsection,
or sentence of this ordinance is held to be unconstitutional or invalid, such
decision shall not affect the validity of the remaining portion of this
ordinance and that remaining portion shall maintain its full force and
effect.
SECTION 5. – Corrections by City Clerk or Code Reviser. Upon
approval of the City Attorney, the City Clerk and the code reviser are
authorized to make necessary corrections to this ordinance, including the
correction of clerical errors; ordinance, section, or subsection numbering;
or references to other local, state or federal laws, codes, rules, or
regulations.
SECTION 6. – Effective Date. This ordinance shall take effect and
be in force five (5) days from and after its publication, as provided by law.
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3 2017 Internal Financing
Phase 1 – LID 363
SUZETTE COOKE, MAYOR Date Approved
ATTEST:
KIMBERLY A. KOMOTO, CITY CLERK Date Adopted
Date Published
APPROVED AS TO FORM:
TOM BRUBAKER, CITY ATTORNEY
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4 2017 Internal Financing
Phase 1 – LID 363
EXHIBIT A
General Obligation Note
Interfund Note from Sewer Fund to Streets Capital Projects Fund
LID 363 - Project R90094
Repayment Schedule 1
Original Principal Amount 3,200,000.00$
Interest Rate 1.68%
Loan Years 10
Note Dated 1/1/2018
Maturity 12/31/2027
Payments ($350,306.58)
Date
Beginning
Balance
Estimated/
Actual Interest
Estimated/
Actual
Principal Total Payment New Balance
12/31/2018 3,200,000.00$ 53,760.00 296,546.58 350,306.58 2,903,453.42
12/31/2019 2,903,453.42 48,778.02 301,528.56 350,306.58 2,601,924.86
12/31/2020 2,601,924.86 43,712.34 306,594.24 350,306.58 2,295,330.62
12/31/2021 2,295,330.62 38,561.55 311,745.03 350,306.58 1,983,585.59
12/31/2022 1,983,585.59 33,324.24 316,982.34 350,306.58 1,666,603.26
12/31/2023 1,666,603.26 27,998.93 322,307.65 350,306.58 1,344,295.61
12/31/2024 1,344,295.61 22,584.17 327,722.41 350,306.58 1,016,573.20
12/31/2025 1,016,573.20 17,078.43 333,228.15 350,306.58 683,345.05
12/31/2026 683,345.05 11,480.20 338,826.38 350,306.58 344,518.67
12/31/2027 344,518.67 5,787.91 344,518.67 350,306.58 -
303,065.79 3,200,000.00 3,503,065.79
Notes:
Interest calculated for 92 days for 2017
Interest rate - 5 Year Treasury as of 9/8/17
1 Assessment payments from LID 363 will be 100% applied to the repayment of this loan.
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FINANCE DEPARTMENT
Aaron BeMiller, Director
Phone: 253-856-5260
Fax: 253-856-6255
Address: 220 Fourth Avenue S.
Kent, WA. 98032-5895
DATE: September 19, 2017
TO: Operations Committee
FROM: Aaron BeMiller, Director
SUBJECT: City of Kent Fund Balance Policy – Information Only
MOTION: Information Only.
SUMMARY: Throughout 2017 the finance department has been working on revising
and updating several finance policies in accordance with GFOA (Government
Finance Officers Association) best practices, which includes periodic review to
address areas in need of modification/clarification.
The City Council established and approved the current financial policies in 2012,
through Resolution 1859, which included fund balance policy language for several
funds, including the General Fund.
This fund balance policy establishes fund balance levels for City funds for the
purpose of addressing unanticipated and non-recurring operational needs. The
policy addresses the appropriate uses of fund balance, the need for repayment
plans should fund balance fall below the minimum level, and the need for long-term
financial planning in the event of operational restructuring necessitating the use of
fund balances. Furthermore, the policy sets the activities for which fund balance
levels above the minimum balance at the end of the fiscal year may be used.
The policy was created using GFOA’s best practices for fund balance policies.
BUDGET IMPACT: N/A
BACKGROUND:
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Page 1 of 5
City of Kent Finance Policy: Fund Balance Reserves
Policy:
The objective of this policy is to provide general guidance for the establishment and
continued maintenance of Fund Balance Reserves. This policy establishes the
amounts the City will strive to maintain in Fund Reserves, how the Reserves will be
funded, and the conditions under which Reserves may be used.
The City classifies available fund balances for specific purposes in accordance with
Government Accounting Standards Board (GASB) Statement #54 as follows:
Non-spendable – Resources that cannot be spent because of form (e.g.
inventory, prepaid amounts) or because they must be maintained intact.
Restricted – Resources with limitations imposed by creditors, grantors,
laws, regulations, or enabling legislation.
Committed – Resources that can only be used for specific purposes
pursuant to constraints imposed by formal action of the highest level of
decision-making authority – the City Council. These amounts cannot be used
for any other purpose unless the City Council removes or changes the
specified use by taking the same action it employed to previously commit the
amounts.
Assigned – Resources that are intended to be used for specific purposes,
but is neither restricted nor committed.
Unassigned – Resources that are not non-spendable, restricted, committed
or assigned to specific purposes.
Fund balance is an important indicator of a city’s financial position and maintaining
reserves is a prudent management practice. Adequate fund balances are
maintained to allow the city to continue providing services to the community in case
of unexpected emergencies, unfunded mandates, and/or economic downturns.
They may also be used to meet seasonal cash flow shortfalls as needed.
As such, the City has determined targeted fund balances for specific funds as
outlined in the table below:
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Page 2 of 5
Fund Fund Balance Policy
General Fund Sixteen Percent (16%) of Current-Year Budgeted
Expenses
Street Fund - Unrestricted Sixteen Percent (16%) of Current-Year Budgeted
Expenses
Public Safety Retiree Benefits Twice the IBNR (Incurred But Not Reported) Estimate
per the annual Actuarial Study plus $500,000
Youth/Teen Fund $100,000
Capital Resources Fund $1,500,000
Capital Resources Fund - Parks $500,000
Criminal Justice Fund Sixteen Percent (16%) of Current-Year Budgeted
Expenses
Boat Registration/Safety $2,500
Kent Events Center Operating $500,000
Event Center Lifecycle $300,000
Water Operating Fund Twenty Percent (20%) of Current-Year Budgeted
Operating Expenses
Sewerage Operating Twenty Percent (20%) of Current-Year Budgeted
Operating Expenses
Golf Operating $400,000 or Sixteen Percent (16%) of Current-Year
Budgeted Operating Expenses, whichever is higher.
Fleet Services Fund Sixteen Percent (16%) of Current-Year Budgeted
Expenses plus $500,000
Information Technology Fund $500,000
Facilities Management Fund $700,000 or Sixteen Percent (16%) of Current-Year
Budgeted Operating Expenses, whichever is higher.
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Page 3 of 5
Unemployment Comp Fund $100,000 (Plus any downward adjustments in staffing or
changes in policy)
Workers Compensation Fund Seventy Percent (70%) confidence level as provided in
the annual Actuarial Study for the Worker Comp fund
Health Care/Benefits Fund Twice the IBNR (Incurred But Not Reported) Estimate
per Actuary or $2,000,000, whichever is higher.
Liability Insurance Fund Seventy Percent (70%) confidence level as provided in
the annual Actuarial Study for the Liability Insurance
fund
Property Insurance Fund 1.5 times the $100,000 deductible plus projected
premium for the following year.
The City’s Finance Department is charged with ensuring compliance with all fund
balance policy requirements.
General Fund:
In an effort to ensure the continuance of sound financial management of public
resources, the City of Kent’s Unassigned General Fund Balance will be maintained
to provide the city with sufficient working capital and a comfortable margin of
safety to address emergent needs, sudden loss of revenue, and unexpected
downturns without borrowing.
This policy establishes the amounts the city will strive to maintain in its General
Fund balance, the conditions under which fund balance may be spent, and the
method by which fund balances will be restored. These amounts are expressed as
goals, recognizing that fund balance levels can fluctuate from year to year in the
normal course of operations for any local government.
The city will strive to maintain a General Fund “Operating Reserve” with an upper
goal of sixteen percent (16%) of the adopted current-year budgeted General Fund
expenditures, less any one-time items. It is the intent of the city to limit the use of
Unassigned General Fund balances to addressing unanticipated, non-recurring
needs or known and planned future obligations.
The Operating Reserve is intended to be a reserve for unexpected events such as
unfunded mandates, the failure to receive expected revenues, the continuance of
critical city services due to unanticipated events, or to offset the unexpected loss of
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a significant funding source for the remainder of the fiscal year. Any use of
Operating Reserve funds that reduce the fund balance below the minimum required
must include a repayment plan that projects to restore the Operating Reserve to
the minimum level.
Fund balances shall not normally be applied to recurring annual operating
expenditures. Unassigned balances may, however, be used to allow time for the
city to restructure its operations in a deliberate manner, but such use will only take
place in the context of long-term financial planning.
Funds in excess of the reserves described above will be Unassigned General Fund
Balance, unless otherwise assigned in accordance with GASB Statement #54, and
may be considered to supplement “pay as you go” capital outlay and other one-
time expenditures. These funds may not be used to establish or support costs that
are recurring in nature.
The Finance Director is authorized to classify available fund balance for specific
purposes in accordance with Government Accounting Standards Board Statement
#54. It is the policy of the city that expenditures for which more than one category
of fund balance may be used, the order of use will be: Restricted Fund Balance,
Committed Fund Balance, Assigned Fund Balance, and Unassigned Fund Balance.
Other Funds:
In a manner similar to the General Fund, the City desires to maintain a prudent
level of financial resources in its other funds, including Enterprise Funds, Special
Revenue Funds, and Self-Insurance Funds, to guard its stakeholders against service
disruptions in the event of unexpected temporary revenue shortfalls or unpredicted
one-time expenses. Fund reserves are accumulated and maintained to provide
stability and flexibility to respond to unexpected adversity and/or opportunities.
It is the intent of the City to limit use of these fund reserves to address
unanticipated, non-recurring needs. Reserves shall not normally be applied to
recurring annual operating expenses. Reserves may, however, be used to allow
time for the City to restructure its operations in a deliberate manner (as might be
required in an economic downturn), but such use will only take place in the context
of long-term financial planning.
Unless otherwise noted, all parameters of the General Fund Balance are also
applicable to all other fund balances.
24
Page 5 of 5
Pooled Cash Method:
In order to provide liquidity adequate to meet the needs and demands of providing
government services, including unanticipated reductions in revenues or unplanned
increases in expenses, Reserve levels will be maintained and managed through the
Pooled Cash method in such a way as to minimize short-term borrowing. This
reduces overall cost to taxpayers by minimizing interest expense. The reserves are
intended to support this effort and counterbalance cycles that are experienced in
fee and other revenue collections.
Funding the Reserves:
Funding of reserve targets will generally come from excess revenues over expenses
or one-time revenues.
Excess of Reserves:
Reserves for specific funds are restricted for the activities of that fund under GASB
principles, with the exception of the General Fund, which can be used for any good
government purpose. In the event fund reserves exceed the minimum balance
requirements at the end of each fiscal year, any excess reserves may be used in
the following ways:
1. Fund accrued liabilities. Priority will be given to those items that relieve
budget or financial operating pressure in future periods;
2. Appropriated to lower the amount of bonds or contributions needed to fund
capital projects in the City’s CIP (Capital Improvement Program);
3. One-time expenses that do not increase recurring operating costs that cannot
be funded through current revenues. Emphasis will be placed on one-time
uses that reduce future operating costs; or
4. Start-up expenses for new programs, provided that such action is approved
by the City Council and is considered in the context of multi-year projections
of revenue and expenses as prepared by the City’s Finance Department.
Periodic Review:
This fund balance policy must be adopted by the City Council. The policy will be
reviewed periodically by the Finance Department and modifications must be
submitted to and approved by the Council.
25
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26
FINANCE DEPARTMENT
Aaron BeMiller, Director
Phone: 253-856-5260
Fax: 253-856-6255
Address: 220 Fourth Avenue S.
Kent, WA. 98032-5895
DATE: September 19, 2017
TO: Operations Committee
FROM: Aaron BeMiller, Director
SUBJECT: July Financial Report – Information Only
MOTION: Information Only
SUMMARY: The Finance Director will report out the July 2017 financial report.
BUDGET IMPACT:
BACKGROUND:
27
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28
2017
Adj Budget
2017
YTD
2017
Est Actual
Variance
Favorable
(Unfavorable)
%Variance
Favorable
(Unfavorable)
Revenues 93,795,960 55,214,310 96,362,100 2,566,140 2.7%
Expenditures 96,229,260 46,782,736 96,057,000 172,260 0.2%
Net Revenues Less Expenditures (2,433,300) 8,431,574 305,100 2,738,400
Beginning Fund Balance 19,987,828 19,987,828
Ending Fund Balance 17,554,528 20,292,928
Ending Fund Balance Detail:
General Fund Reserves 14,562,958 17,877,238
15.1% 18.6%
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
July 2017 Monthly Financial Report
City of Kent, Washington
General Fund Overview
Summary
Analysis through July shows an overall positive budget variance of $2.7 million.
Revenues are estimated to end the year approximately $2.6 million (2.7%) higher than budgeted.
Through July, all departments are remaining fairly close to budget with an overall favorable budget variance of
$172k or 0.2%.
The 2017 adopted budget reflects an expected use of $2.4 million of fund balance, including $2 million for Parks
capital projects.
General Fund Reserves are estimated to end the year at $17.9 million, or 18.6% of estimated 2017 expenditures.
The budgeted use of fund balance is offset by the positive budget variance of $2.7 million, creating a net surplus of
$305k.
29
Revenue Categories 2017
Adj Budget
2017
YTD
2017
Est Actual
Variance
Favorable
(Unfavorable)
%Variance
Favorable
(Unfavorable)
Taxes:
Property 22,782,330 12,134,733 22,816,200 33,870 0.1%
Sales & Use 19,756,570 11,930,710 20,076,300 319,730 1.6%
Utility 18,947,950 11,985,004 19,278,500 330,550 1.7%
Business & Occupation 8,900,000 4,388,883 9,111,270 211,270 2.4%
Other 882,090 424,268 906,230 24,140 2.7%
Licenses and Permits 5,611,350 3,762,594 5,847,600 236,250 4.2%
Intergovernmental Revenue 7,699,970 4,314,445 7,913,800 213,830 2.8%
Charges for Services 5,117,170 4,012,177 5,846,300 729,130 14.2%
Fines and Forfeitures 1,565,970 1,038,162 1,568,300 2,330 0.1%
Miscellaneous Revenue 1,582,560 1,223,334 2,047,600 465,040 29.4%
Transfers In 950,000 - 950,000 -
Total Revenues 93,795,960 55,214,310 96,362,100 2,566,140 2.7%
Variance Notes
July 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.
Charges for Services: Estimated year-end collections at $729k in excess of budget, largely due to increased
permit review fees ($841k) offset by decreased public safety ($85k) and Utilities & Environment charges
($33k).
Miscellaneous Revenue: Estimated year-end collections at $465k in excess of budget, largely due to
increased interest income ($78k) and reimbursements for services ($390k).
30
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 4,829 5,464 5,578
February 5,138 5,225 5,024
March 6,546 7,439 7,586
April 16,091 14,962 17,008
May 6,600 7,175 6,492
June 5,578 6,225 6,175
July 6,545 6,040 7,351
August 5,395 5,068 0
September 6,531 6,810 0
October 16,476 15,667 0
November 6,303 6,086 0
December 9,602 7,635 0
Total 95,633 93,796 55,214
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 0 9 0
February 199 168 197
March 719 717 711
April 9,550 8,760 9,768
May 1,305 2,136 1,324
June 83 132 109
July 55 46 26
August 88 91 0
September 441 490 0
October 8,525 8,683 0
November 1,414 1,368 0
December 155 184 0
Total 22,534 22,782 12,135
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 1,461 1,507 1,686
February 2,026 1,974 1,986
March 1,519 1,448 1,550
April 1,575 1,457 1,547
May 1,739 1,641 1,836
June 1,236 1,347 1,587
July 1,560 1,614 1,739
August 1,798 1,785 0
September 1,594 1,676 0
October 1,691 1,660 0
November 1,822 1,812 0
December 1,793 1,834 0
Total 19,814 19,757 11,931
2017 Monthly Financial Report
City of Kent, Washington
General Fund Revenues ($ 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
$25,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
17 Bud 16 Act 17 Act
31
2017 Monthly Financial Report
City of Kent, Washington
General Fund Revenues ($ 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 1,566
June 1,368 1,341 1,505
July 1,563 1,731 1,631
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 11,985
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 1 8 1
February 2 37 4
March 165 170 494
April 1,383 1,839 1,945
May 737 445 232
June 115 128 153
July 1,632 1,659 1,984
August 775 456 0
September 169 139 0
October 2,293 1,950 0
November 239 287 0
December 2,761 2,652 0
Total 10,273 9,770 4,813
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 1,252 1,454 2,049
February 1,203 1,013 1,008
March 2,559 2,699 3,092
April 1,986 1,512 1,876
May 1,328 1,446 1,534
June 2,775 3,030 2,820
July 1,734 1,501 1,969
August 1,290 1,323 0
September 2,743 2,760 0
October 2,534 1,990 0
November 1,329 1,068 0
December 3,787 2,743 0
Total 24,521 22,539 14,351
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
32
Department 2017
Adj Budget
2017
YTD
2017
Est Actual
Variance
Favorable
(Unfavorable)
%Variance
Favorable
(Unfavorable)
City Council 352,110 206,362 340,100 12,010 3.4%
Mayor's Office/City Clerk 2,709,760 1,326,882 2,565,200 144,560 5.3%
Economic & Community Dev 6,394,650 3,259,645 6,052,100 342,550 5.4%
Finance 2,734,560 1,430,631 2,686,600 47,960 1.8%
Fire Contracted Services 3,603,110 2,166,770 3,634,100 (30,990)-0.9%
Human Resources 1,977,930 1,025,635 1,883,300 94,630 4.8%
Information Technology 517,310 312,612 530,700 (13,390)-2.6%
Law 1,737,080 902,946 1,652,100 84,980 4.9%
Municipal Court 3,181,510 1,809,197 3,164,800 16,710 0.5%
Parks, Recreation & Comm Svcs 17,229,170 9,493,625 16,958,600 270,570 1.6%
Police 36,976,600 21,324,904 37,206,200 (229,600)-0.6%
Public Works 1,294,960 677,388 1,195,200 99,760 7.7%
Non-Departmental 17,520,510 2,846,140 18,188,000 (667,490)-3.8%
Total Expenditures 96,229,260 46,782,736 96,057,000 172,260 0.2%
Variance Notes
July 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.
None.
33
2015 2016 2017 2017 2017
Actual Actual Adj Budget YTD Est Actual
Beginning Fund Balance 11,312,140 15,372,499 19,987,828 19,987,828 19,987,828
Revenues
Taxes:
Property 22,015,525 22,534,441 22,782,330 12,134,733 22,816,200
Sales & Use 18,583,057 19,814,047 19,756,570 11,930,710 20,076,300
Utility 18,151,853 18,490,458 18,947,950 11,985,004 19,278,500
Business & Occupation 7,656,220 9,311,445 8,900,000 4,388,883 9,111,270
Other 1,023,500 961,833 882,090 424,268 906,230
Licenses and Permits 5,827,474 6,269,525 5,611,350 3,762,594 5,847,600
Intergovernmental Revenue 7,783,935 8,072,343 7,699,970 4,314,445 7,913,800
Charges for Services 5,814,133 5,363,205 5,117,170 4,012,177 5,846,300
Fines and Forfeitures 1,660,366 1,551,720 1,565,970 1,038,162 1,568,300
Miscellaneous Revenue 1,756,485 2,302,027 1,582,560 1,223,334 2,047,600
Transfers In 996,921 962,261 950,000 950,000
Total Revenues 91,269,469 95,633,303 93,795,960 55,214,310 96,362,100
Expenditures
City Council 298,884 337,355 352,110 206,362 340,100
Mayor's Office/City Clerk 2,211,861 2,339,581 2,709,760 1,326,882 2,565,200
Economic & Community Dev 5,345,212 5,521,764 6,394,650 3,259,645 6,052,100
Finance 2,419,039 2,751,128 2,734,560 1,430,631 2,686,600
Fire Contracted Services 3,513,988 3,556,484 3,603,110 2,166,770 3,634,100
Human Resources 1,039,875 1,733,010 1,977,930 1,025,635 1,883,300
Information Technology 456,328 509,617 517,310 312,612 530,700
Law 1,198,769 1,458,153 1,737,080 902,946 1,652,100
Municipal Court 2,988,951 3,079,215 3,181,510 1,809,197 3,164,800
Parks, Recreation & Comm Svcs 15,595,739 16,027,802 17,229,170 9,493,625 16,958,600
Police 32,992,234 35,155,894 36,976,600 21,324,904 37,206,200
Public Works 4,896,300 1,273,864 1,294,960 677,388 1,195,200
Non-Departmental 14,251,930 17,274,106 17,520,510 2,846,140 18,188,000
Total Expenditures 87,209,110 91,017,974 96,229,260 46,782,736 96,057,000
Net Revenues less Expenditures 4,060,359 4,615,329 (2,433,300) 8,431,574 305,100
Ending Fund Balance 15,372,499 19,987,828 17,554,528 28,419,402 20,292,928
Ending Fund Balance Detail:
General Fund Reserves 11,749,159 16,996,258 14,562,958 17,877,238
based on same year actuals/budget 13.5% 18.7% 15.1%18.6%
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
July 2017 Monthly Financial Report
City of Kent, Washington
General Fund
34
2015 2016 2017 % of
thru July thru July thru July Budget
Revenues
Taxes:
Property 11,544,253 11,911,266 12,134,733 223,468 1.9% 53.1%
Sales & Use 10,356,843 11,115,598 11,930,710 815,112 7.3% 51.6%
Utility 12,127,364 11,426,045 11,985,004 558,960 4.9% 54.6%
Business & Occupation 3,379,846 3,584,504 4,388,883 804,378 22.4% 28.8%
Other 456,232 450,400 424,268 (26,132) -5.8% 30.6%
Licenses and Permits 2,631,611 3,424,664 3,762,594 337,930 9.9% 51.9%
Intergovernmental Revenue 4,038,003 4,316,195 4,314,445 (1,750) 0.0% 52.7%
Charges for Services 3,421,692 3,149,739 4,012,177 862,439 27.4% 67.8%
Fines and Forfeitures 1,069,968 941,547 1,038,162 96,615 10.3% 57.7%
Miscellaneous Revenue 991,338 1,006,246 1,223,334 217,088 21.6% 65.7%
Transfers In - - - -
Total Revenues 50,017,149 51,326,203 55,214,310 3,888,107 7.6% 58.9%
Expenditures
City Council 176,408 180,769 206,362 25,593 14.2% 58.6%
Mayor's Office/City Clerk 1,273,954 1,328,260 1,326,882 (1,378) -0.1% 49.0%
Economic & Community Dev 2,990,079 3,134,056 3,259,645 125,589 4.0% 51.0%
Finance 1,349,747 1,600,339 1,430,631 (169,708) -10.6% 52.3%
Fire Contracted Services 2,083,585 2,128,384 2,166,770 38,387 1.8% 60.1%
Human Resources 602,887 895,648 1,025,635 129,987 14.5% 51.9%
Information Technology 244,325 299,944 312,612 12,668 4.2% 60.4%
Law 694,164 847,867 902,946 55,079 6.5% 52.0%
Municipal Court 1,717,497 1,780,970 1,809,197 28,227 1.6% 56.9%
Parks, Recreation & Comm Svcs 8,962,993 9,073,732 9,493,625 419,892 4.6% 55.1%
Police 18,546,742 20,152,038 21,324,904 1,172,866 5.8% 57.7%
Public Works *2,741,010 884,266 677,388 (206,878) -23.4% 52.3%
Non-Departmental 269,140 1,898,281 2,846,140 947,859 49.9% 16.2%
Total Expenditures 41,652,530 44,204,554 46,782,736 2,578,182 5.8% 48.6%
* 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
July 2017 Monthly Financial Report
City of Kent, Washington
Year-to-Year Month Comparison
General Fund
35
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 11,644,554 14,254,751 12,272,430 6,783,752 12,979,000
Expenditures 8,748,733 14,369,693 12,373,160 6,389,978 12,371,000
Net Revenues Less Expenditures 2,895,821 (114,942)(100,730)393,774 608,000
LEOFF 1 Retiree Benefits
Revenues 1,341,722 1,035,289 1,148,730 559,312 1,113,900
Expenditures 1,279,216 954,561 1,163,220 654,800 1,056,500
Net Revenues Less Expenditures 62,506 80,728 (14,490)(95,488)57,400
Lodging Tax
Revenues 279,878 294,859 281,000 141,118 303,500
Expenditures 257,164 219,989 278,060 197,009 218,800
Net Revenues Less Expenditures 22,714 74,870 2,940 (55,891)84,700
Youth/Teen Programs
Revenues 894,592 911,855 928,600 590,423 934,900
Expenditures 920,380 942,000 942,000 942,000
Net Revenues Less Expenditures (25,788)(30,145)(13,400)590,423 (7,100)
Capital Resources
Revenues 20,209,541 20,751,646 12,738,960 9,472,163 15,153,200
Expenditures 11,135,015 15,248,984 15,498,530 2,624,026 15,498,500
Net Revenues Less Expenditures 9,074,526 5,502,662 (2,759,570)6,848,137 (345,300)
Criminal Justice
Revenues 4,753,967 4,873,770 4,126,810 2,757,434 4,691,000
Expenditures 2,965,408 3,157,680 4,553,970 2,481,367 4,168,300
Net Revenues Less Expenditures 1,788,558 1,716,090 (427,160)276,067 522,700
Community Development Block Grant
Revenues 808,466 839,392 1,056,260 295,376 1,056,260
Expenditures 808,466 839,392 1,056,260 418,710 1,056,260
Net Revenues Less Expenditures (123,334)
ShoWare Operating
Revenues 1,680,882 1,647,988 1,150,000 179,265 1,150,000
Expenditures 518,720 1,097,457 1,089,320 220,652 796,600
Net Revenues Less Expenditures 1,162,163 550,531 60,680 (41,388)353,400
Other Operating
Revenues 127,615 135,731 116,520 70,360 116,500
Expenditures 44,550 63,059 116,520 98,598 98,000
Net Revenues Less Expenditures 83,065 72,672 (28,238)18,500
Special Revenue Funds
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.
36
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.
2017 Monthly Financial Report
Other Funds Overview (Revenues and Expenditures)
City of Kent, Washington
Water Utility
Revenues 20,140,494 21,140,582 25,333,130 13,078,934 21,650,000
Expenditures 17,620,354 18,076,074 28,079,700 8,782,417 22,901,500
Net Revenues Less Expenditures 2,520,140 3,064,508 (2,746,570)4,296,518 (1,251,500)
Sewer/Drainage Utility
Revenues 48,525,436 52,152,841 52,276,840 30,237,855 51,302,000
Expenditures 47,086,396 48,908,079 50,219,100 25,710,323 48,512,800
Net Revenues Less Expenditures 1,439,040 3,244,762 2,057,740 4,527,533 2,789,200
Solid Waste Utility
Revenues 608,685 899,710 350,797 600,000
Expenditures 365 471,179 830,930 286,910 464,000
Net Revenues Less Expenditures (365)137,506 68,780 63,887 136,000
Golf Complex
Revenues 2,661,490 2,475,682 2,871,410 1,509,433 2,305,100
Expenditures 2,867,873 3,188,762 2,808,280 1,569,873 2,810,000
Net Revenues Less Expenditures (206,383)(713,080)63,130 (60,440)(504,900)
Fleet Services
Revenues 4,538,925 4,769,001 4,715,900 2,859,629 4,822,000
Expenditures 3,195,504 3,974,431 5,685,510 1,988,009 5,238,300
Net Revenues Less Expenditures 1,343,420 794,570 (969,610)871,619 (416,300)
Central Services
Revenues 372,070 382,444 446,510 196,098 362,000
Expenditures 350,962 399,786 421,150 154,434 355,200
Net Revenues Less Expenditures 21,108 (17,342)25,360 41,664 6,800
Information Technology
Revenues 7,603,220 7,717,834 7,962,060 4,602,714 7,926,600
Expenditures 6,708,773 6,905,076 8,683,630 3,361,135 8,655,500
Net Revenues Less Expenditures 894,447 812,757 (721,570)1,241,579 (728,900)
Facilities
Revenues 5,432,463 5,556,854 4,728,530 2,740,245 4,768,800
Expenditures 5,527,155 4,881,741 5,002,870 2,309,713 4,977,300
Net Revenues Less Expenditures (94,692)675,113 (274,340)430,532 (208,500)
Unemployment
Revenues 397,641 420,226 121,700 104,851 152,000
Expenditures 98,860 126,718 169,050 36,904 110,000
Net Revenues Less Expenditures 298,781 293,508 (47,350)67,947 42,000
Enterprise Funds
Internal Service Funds
37
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.
2017 Monthly Financial Report
Other Funds Overview (Revenues and Expenditures)
City of Kent, Washington
Workers Compensation
Revenues 1,095,382 1,200,476 1,023,800 615,275 1,053,000
Expenditures 681,822 1,436,775 1,397,280 606,239 1,121,700
Net Revenues Less Expenditures 413,560 (236,299)(373,480)9,036 (68,700)
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 6,304,351 12,995,990
Expenditures 11,298,096 12,130,696 11,936,000 8,137,150 14,630,000
Net Revenues Less Expenditures (810,993)(1,441,770)(1,503,400)(1,832,799)(1,634,010)
Liability Insurance
Revenues 1,135,932 1,447,027 1,249,000 1,556,608 2,080,000
Expenditures 1,187,054 2,145,627 1,863,100 2,280,275 2,708,500
Net Revenues Less Expenditures (51,122)(698,600)(614,100)(723,668)(628,500)
2017: YTD expenditures include claims paid for which reimbursement will be received.
Property Insurance
Revenues 582,938 628,105 554,820 326,699 558,000
Expenditures 471,003 445,135 500,810 241,693 443,200
Net Revenues Less Expenditures 111,935 182,969 54,010 85,006 114,800
38
2015 2016 2017
thru July thru July thru July
Operating revenues and expenditures only, capital is excluded.
Street Fund
Revenues 5,036,707 6,523,891 6,783,752 259,861 4.0%
Expenditures 2,869,720 5,428,505 6,389,978 961,473 17.7%
Net Revenues Less Expenditures 2,166,986 1,095,386 393,774
2016 includes street and transportation revenues and costs moved from the General Fund.
LEOFF 1 Retiree Benefits
Revenues 432,025 432,696 559,312 126,616 29.3%
Expenditures 760,736 515,096 654,800 139,704 27.1%
Net Revenues Less Expenditures (328,712)(82,400)(95,488)
2016 revenues reflect a timing difference because of revenues that were not booked until June.
Lodging Tax
Revenues 115,910 130,243 141,118 10,876 8.4%
Expenditures 38,847 152,570 197,009 44,439 29.1%
Net Revenues Less Expenditures 77,063 (22,327)(55,891)
2016 expenditures reflect increased marketing activities.
Youth/Teen Programs
Revenues 550,983 548,767 590,423 41,656 7.6%
Expenditures
Net Revenues Less Expenditures 550,983 548,767 590,423
Capital Resources
Revenues 7,750,182 8,949,335 9,472,163 522,828 5.8%
Expenditures 2,446,683 3,162,929 2,624,026 (538,903)-17.0%
Net Revenues Less Expenditures 5,303,500 5,786,406 6,848,137
Expenditures higher in 2015 and 2017 due to land purchases in Q1.
Criminal Justice
Revenues 2,602,325 2,759,970 2,757,434 (2,536)-0.1%
Expenditures 1,650,079 1,654,432 2,481,367 826,934 50.0%
Net Revenues Less Expenditures 952,246 1,105,538 276,067
2016 increase in revenues due to strong sales tax trends and an increase in seized assets.
Community Development Block Grants
Revenues 220,974 192,970 295,376 102,406 53.1%
Expenditures 330,126 376,012 418,710 42,698 11.4%
Net Revenues Less Expenditures (109,153)(183,042)(123,334)
Lag in grant reimbursement for expenses incurred.
ShoWare Operating
Revenues 117,944 471,942 179,265 (292,678)-62.0%
Expenditures 43,504 149,849 220,652 70,803 47.2%
Net Revenues Less Expenditures 74,440 322,093 (41,388)
Admissions Tax revenues received quarterly (April, July, September, January)
2016-17
Variance
Year-to-Year Month Comparison
2017 Monthly Financial Report
City of Kent, Washington
Other Funds Overview (Revenues and Expenditures)
Special Revenue Funds
39
2015 2016 2017
thru July thru July thru July
Operating revenues and expenditures only, capital is excluded.
2016-17
Variance
Year-to-Year Month Comparison
2017 Monthly Financial Report
City of Kent, Washington
Other Funds Overview (Revenues and Expenditures)
Other Operating
Revenues 12,840 33,310 70,360 37,050 111.2%
Expenditures 17,963 59,492 98,598 39,106 65.7%
Net Revenues Less Expenditures (5,123)(26,182)(28,238)
Combines several small programs, including City Art Program and Neighborhood Matching Grants
Water Utility
Revenues 10,919,376 11,579,461 13,078,934 1,499,473 12.9%
Expenditures 8,408,249 9,476,487 8,782,417 (694,070)-7.3%
Net Revenues Less Expenditures 2,511,127 2,102,974 4,296,518
Sewer/Drainage Utility
Revenues 27,599,781 28,423,928 30,237,855 1,813,927 6.4%
Expenditures 21,328,503 24,658,771 25,710,323 1,051,551 4.3%
Net Revenues Less Expenditures 6,271,278 3,765,157 4,527,533
Solid Waste Utility
Revenues 358,257 350,797 (7,461)-2.1%
Expenditures 268,710 286,910 18,200 6.3%
Net Revenues Less Expenditures 89,548 63,887
Solid Waste Utility established in 2016.
Golf Complex
Revenues 1,727,976 1,572,018 1,509,433 (62,585)-4.0%
Expenditures 1,652,358 1,778,707 1,569,873 (208,834)-11.7%
Net Revenues Less Expenditures 75,618 (206,689)(60,440)
2016 & 2017 revenues down due to inclement weather conditions in Q1.
Fleet Services
Revenues 2,659,122 2,791,708 2,859,629 67,921 2.4%
Expenditures 1,746,857 2,199,496 1,988,009 (211,487)-9.6%
Net Revenues Less Expenditures 912,265 592,212 871,619
Central Services
Revenues 225,921 230,408 196,098 (34,310)-14.9%
Expenditures 227,194 230,717 154,434 (76,283)-33.1%
Net Revenues Less Expenditures (1,272)(309)41,664
Information Technology
Revenues 4,133,001 4,373,936 4,602,714 228,778 5.2%
Expenditures 3,641,922 3,312,510 3,361,135 48,624 1.5%
Net Revenues Less Expenditures 491,078 1,061,426 1,241,579
Internal Service Funds
Enterprise Funds
40
2015 2016 2017
thru July thru July thru July
Operating revenues and expenditures only, capital is excluded.
2016-17
Variance
Year-to-Year Month Comparison
2017 Monthly Financial Report
City of Kent, Washington
Other Funds Overview (Revenues and Expenditures)
Facilities
Revenues 3,100,920 3,133,921 2,740,245 (393,676)-12.6%
Expenditures 2,395,015 2,423,859 2,309,713 (114,146)-4.7%
Net Revenues Less Expenditures 705,905 710,063 430,532
Unemployment
Revenues 232,026 242,200 104,851 (137,350)-56.7%
Expenditures 60,845 99,436 36,904 (62,533)-62.9%
Net Revenues Less Expenditures 171,181 142,764 67,947
Workers Compensation
Revenues 640,988 684,048 615,275 (68,773)-10.1%
Expenditures 494,109 638,241 606,239 (32,002)-5.0%
Net Revenues Less Expenditures 146,879 45,807 9,036
Employee Health & Wellness
Revenues 6,058,535 6,234,955 6,304,351 69,396 1.1%
Expenditures 6,418,513 6,727,060 8,137,150 1,410,090 21.0%
Net Revenues Less Expenditures (359,978)(492,105)(1,832,799)
Liability Insurance
Revenues 662,348 665,644 1,556,608 890,963 133.8%
Expenditures 1,121,305 1,344,370 2,280,275 935,905 69.6%
Net Revenues Less Expenditures (458,957)(678,726)(723,668)
Property Insurance
Revenues 340,073 357,514 326,699 (30,815)-8.6%
Expenditures 667,524 620,563 570,050 (50,513)-8.1%
Net Revenues Less Expenditures (327,451)(263,049)(243,351)
41
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 96,362,100 96,057,000 19,786,398
Street Fund 3,397,945 12,979,000 12,371,000 4,005,945
LEOFF 1 Retiree Benefits 1,174,261 1,113,900 1,056,500 1,231,661
Lodging Tax 469,387 303,500 218,800 554,087
Youth/Teen Programs 91,130 934,900 942,000 84,030
Capital Resources 11,277,727 15,153,200 15,498,500 10,932,427
Criminal Justice 5,697,717 4,691,000 4,168,300 6,220,417
Community Development Block Grants 1,056,260 1,056,260
ShoWare Operating 2,147,074 1,150,000 796,600 2,500,474
Other Operating 436,914 116,500 98,000 455,414
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 21,650,000 22,901,500 9,714,606
Sewer/Drainage Utility 11,295,548 51,302,000 48,512,800 14,084,748
Solid Waste Utility 302,528 600,000 464,000 438,528
Golf Complex (3,768,128) 2,305,100 2,810,000 (4,273,028)
Fleet Services 5,134,423 4,822,000 5,238,300 4,718,123
Central Services (63,568) 362,000 355,200 (56,768)
Information Technology 3,640,615 7,926,600 8,655,500 2,911,715
Facilities 2,340,684 4,768,800 4,977,300 2,132,184
Unemployment 1,332,446 152,000 110,000 1,374,446
Workers Compensation 2,356,624 1,053,000 1,121,700 2,287,924
Employee Health & Wellness 4,681,152 12,995,990 14,630,000 3,047,142
Liability Insurance 1,805,167 2,080,000 2,708,500 1,176,667
Property Insurance 531,548 558,000 443,200 646,348
City of Kent, Washington
Fund Balances
2017 Monthly Financial Report
General Fund
Special Revenue Funds
Debt Service Funds
Enterprise Funds
Internal Service Funds
42
FINANCE DEPARTMENT
Aaron BeMiller, Director
Phone: 253-856-5260
Fax: 253-856-6255
Address: 220 Fourth Avenue S.
Kent, WA. 98032-5895
DATE: September 19, 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:
BACKGROUND:
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