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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 10/18/2016 (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 October 18, 2016 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 9/16/2016 thru 9/30/2016 YES Chair Ralph 2 5. Approval of Meeting Minutes Dated October 4, 2016 YES Chair Ralph 2 1 6. 2017 State Legislative Agenda - Recommend YES Michelle Wilmot 5 3 7. 3rd Quarter Procurement Report – Information Only NO Derek Matheson 5 9 8. August Financial Report – Information Only NO Aaron BeMiller 5 13 9. Director’s Report – Information Only NO Aaron BeMiller 5 29 This page intentionally left blank OPERATIONS COMMITTEE MINUTES October 4, 2016 Committee Members Present: Chair Dana Ralph, Bill Boyce, and Les Thomas. The meeting was called to order by Dana Ralph at 4:00 p.m. 1. ROLL CALL. 2. CHANGES TO THE AGENDA. There were no changes to the agenda. 3. APPROVAL OF THE CHECK SUMMARY REPORT DATED 9/01/2016 THRU 9/15/2016. L. Thomas moved to approve the check summary report dated 9/01/2016 thru 9/15/2016. B. Boyce seconded the motion, which passed 3-0. 4. APPROVAL OF MINUTES DATED SEPTEMBER 20, 2016. B. Boyce moved to approve the Operations Committee minutes dated September 20, 2016. L. Thomas seconded the motion, which passed 3-0. 5. ORDINANCE AMENDING EXEMPTION SECTION OF KCC 3.10.030 – SURPLUS OF REAL PROPERTY - RECOMMEND. City Attorney Tom Brubaker requested to make an amendment to the Surplus of Real Property ordinance that was implemented in May 2016. The amended language is an exemption for the sale, transfer, or exchange of real property to another public agency and exempts the City in having to go through the public participation process. However, Council still holds the ability to request any property to go through the formal process. The oversight came about due to an upcoming property trade agreement with the Regional Fire Authority (RFA). The RFA would receive city-owned property just south of the main East Hill fire station while the City would receive RFA-owned property located on Washington Avenue. L. Thomas moved to recommend Council adopt an ordinance that amends section 3.10.030, by adding an exemption to real property surplus procedures when transferring property to another public entity. B. Boyce seconded the motion, which passed 3-0. 6. REQUEST FOR PROPOSAL – LINEN AND UNIFORM SERVICES - RECOMMEND. Finance Director Aaron BeMiller and Customer Service Manager Patty Roseto asked committee members to advance the proposed Cintas Corporation contract for uniforms and linen services. Out of two companies that responded to the City’s request for proposal, Cintas was selected as the preferred vendor. The contract will provide linen services for the use of mats, towels, and mops; provide rental and laundering of uniforms 1 Operations Committee Minutes October 4, 2016 Page: 2 for approximately 10 employees; and the purchase of parkas, Carhartt jackets and raingear for approximately 239 employees. With a budget impact of $200,500, this contract is a three year term with an option to continue on a month-to-month basis up to one additional year after September 30, 2019. The remaining $19,500 is cushion for staffing and uniform need increases. B. Boyce moved to recommend Council authorize the Mayor to sign a three year agreement with Cintas Corporation for the rental and laundering of uniforms and linens in an amount not to exceed $220,000, with terms and conditions acceptable to the Finance Director and City Attorney. L. Thomas seconded the motion, which passed 3-0. 7. STRATEGIC PLAN RESOLUTION - RECOMMEND. Human Resources Business Strategy and Performance Analyst Todd Babcock solicited approval of the adoption of the Strategic Plan resolution. The resolution will officially incorporate and adopt the vision, mission, goals and values developed by council and staff during this summer’s retreats. The strategic plan will provide direction and continuity in guiding elected officials and city employees throughout their daily work. Next steps to refine the plan are to establish a work group and develop performance measures. The idea is that this will be a working document that will progress over time. L. Thomas moved to recommend Council adopt the Strategic Plan Resolution. B. Boyce seconded the motion, which passed 3-0. 8. EMERGENCY REPLACEMENT OF THE SHOWARE CENTER ZAMBONI HOT WATER TANKS - RECOMMEND. Economic and Community Development Director Ben Wolters requested members to move forward an emergency situation for the replacement of the failing hot water boiler servicing the Zamboni fill tanks at ShoWare Center requiring immediate replacement of the tanks. These hot water tanks are needed to maintain a quality sheet of ice for both the player’s safety and the professional quality of the game. B. Boyce moved to recommend Council authorize the Mayor to sign an agreement for $78,000 with Hermanson Company LLP for ShoWare Center Zamboni Hot Water Tank Replacements and add this item as an emergency walk on to the October 4, 2016 Council meeting under other business for a vote by the Full Council of the agreement to move forward immediately. L. Thomas seconded the motion, which passed 3-0. The meeting was adjourned at 4:20 p.m. by D. Ralph. J. Hays Jennifer Hays Operations Committee Secretary 2 OFFICE OF THE MAYOR Michelle Wilmot, Communications/Public Affairs Manager Phone: 253-856-5709 Fax: 253-856-6700 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: October 18, 2016 TO: Operations Committee FROM: Michelle Wilmot, Community and Public Affairs SUBJECT: 2017 State Legislative Agenda - Recommend MOTION: Recommend City Council to adopt the City of Kent’s 2017 State Legislative Agenda. SUMMARY: Each year the City of Kent develops a State Legislative Agenda. Department Directors work together with the government affairs manager and lobbyist to determine the positions that are most important to bring to the attention of the Washington State Legislature. These are then compiled in the form of a Legislative Agenda which is reviewed by the Mayor and Chief Administrative Officer and then transmitted to the Council for final review and adoption. Kent partners with the State in the delivery of critical services such as criminal justice, community and human services, flood protection and other services. However, the City has a limited number of revenue sources available to mitigate impacts of budget reductions at the state level. Our priorities in the upcoming session include the protection of Streamlined Sales Tax payments and other state-shared revenues, with a combined annual impact of approximately $10 million. Providing needed infrastructure improvements necessary to help secure a YMCA in Kent, as well as retaining the jobs and economic benefits derived by the presence of the corporate headquarters of Blue Origin, are also among Kent’s top priorities. It is clear we will once again need an aggressive and effective lobbying effort during the 2017 legislative session by all elected leadership of Kent. Only by working together will we be successful. The attached legislative priorities reflect these objectives. EXHIBITS: 2017 Legislative Agenda BUDGET IMPACT: None 3 City of Kent 2017 State Legislative Agenda The City of Kent’s 2017 State Legislative Agenda is structured as follows: 1. The “Top-Priority” issues are the primary focus of Kent’s advocacy efforts. 2. “Key Issues” will also be a top focus of the City’s advocacy time and energy. 3. The “Support/Oppose” items, while important, will be led by others. Kent will join in strongly supporting or opposing legislative issues with potential to impact the City. 4 2 City of Kent TOP PRIORITIES Kent urges lawmakers to protect state-shared revenues that are vital to helping cities meet their obligations. These include liquor, marijuana, and municipal criminal justice assistance revenues; and particularly Streamlined Sales Tax (SST) Mitigation payments – which is a critical $5 million-a-year component of the City’s general fund. Kent also supports:  Modification of property tax statutes to tie annual growth to an inflationary index rather than to a 1 percent limit that prevents cities from keeping up with year-to- year service delivery cost increases.  Gradually restoring liquor revolving account (“liquor profit”) revenues that were capped in statute in 2012. The City supports targeting 60 percent of restored revenues toward criminal justice/public safety needs.  Early Action Appropriation ($2.4 million) for Basic Law Enforcement Academy Training, a critical allocation in order for Kent to hire/train 16 new officers in 2017. Capital Budget funding for an East Hill YMCA - Kent and the Greater YMCA of Seattle will request $3 million for parks-related capital improvements associated with bringing the YMCA to Kent. This new YMCA will be the only community center on Kent’s East Hill, where about 80 percent of Kent residents live. The site for the future YMCA is nestled between Morrill Meadows and East Hill Parks. Morrill Meadows, the larger of the parks, is extremely popular despite having several amenities that are at or near the end of their useful life. East Hill Park offers few recreational opportunities and is sorely under-utilized. The funding, if approved, will help pay for a relocated sport court, playground and off-leash dog park; parking; picnic areas; trails and other amenities. The renovation will not only accommodate the new YMCA, but will allow the two parks to function much more efficiently as one expanded and improved community park. Floodplain, habitat and drainage improvements to reduce flooding near the corporate headquarters of Blue Origin - Kent is requesting $5 million for a series of floodplain, habitat, and drainage enhancements in the area around 76th Avenue S. and S. 212th Street. Just as importantly, this project will stabilize a critical cross-section of the Green River Valley and prevent frequent flooding that adversely impacts the city and the region as a whole. 5 3 City of Kent – 2017 Legislative Agenda Key Issues at a Glance Lower Russell Road Levee improvements/park relocation/public access - Kent joins King County in support of a $___ million request by the King County Flood Control Zone District (KCFCZD) to both improve and strengthen the Lower Russell Road Levee on the Green River and to accommodate habitat restoration, Van Doren’s Landing Park relocation, and public access improvements. With an overall cost of $44 million, state budget earmarks and grants will offset approximately one-third of the cost. Funding for gang intervention, gang data-base training, data collection on juvenile firearms offenses - In partnership with the Washington Association of Sheriffs and Police Chiefs, Kent will pursue $750,000 for training and data-entry work associated with a statewide criminal street gang data-base ($500,000, one-time); ($150,000, one-time) for collecting and coordinating data associated with juvenile gang and firearm offenses; and a $100,000 increase per year ($1.2 million/biennium – ongoing) for the gang prevention and intervention program administered by the Juvenile Rehabilitation Administration. Kent will support law enforcement, local government, and crime victim advocacy groups to advance a technical fix to RCW 9A.88.110 to enable law enforcement agencies and prosecutors to keep using an important tool in the fight against human trafficking - Specifically, Kent has used “Back Page” advertisements to establish decoy stings against perpetrators who patronize prostitutes and build human trafficking rings. The decoy stings have been very effective, but the fix in law is needed to ensure that offenders can be prosecuted based on both the location of where they triggered the prostitution/trafficking act and where the incident occurred. Protect Fire Insurance Premium Tax Distributions - Kent receives Fire Insurance Premium Tax Distributions from the state’s Operating Budget to assist with LEOFF 1 medical needs. These distributions, which go to 44 cities overall, represent a critical $220,000-a-year source of funding and are important as the City addresses an overall unfunded liability of over $25 million in the LEOFF 1 system. 6 4 City of Kent – 2017 Legislative Agenda “Support/Oppose” & “Track/Monitor” Affordable Housing/Homelessness Prevention Kent will actively seek out ways to extend and enhance existing funding sources and add new tools to help communities add affordable housing units to address a growing homeless population. Specifically, the City will:  Support extending and increasing the Document Recording Fee on housing transactions that funds homelessness and housing programs at the local level;  Support a $200 million request for the Housing Trust Fund in the 2017-19 Capital Budget;  Support the inclusion of “1115 Medicaid Waiver” funds for supportive housing in the 2017-19 Operating Budget; Budget and Fiscal Matters  Kent will closely track and monitor any legislative initiatives to merge the Law Enforcement and Firefighters’ Plan 1 (“LEOFF 1”) and the Teachers’ Retirement System Plan 1 (“TRS 1”). If merger legislation or budget initiatives are introduced, the City urges that they be structured to protect underlying LEOFF 1 funding and assist cities with LEOFF 1 medical costs. Criminal Justice/Law Enforcement/Public Safety/Courts  Support initiatives to more adequately fund and manage mental health challenges, including beds and facilities that can treat and house those with mental illness and chemical dependency issues;  Support legislation that makes a fourth Driving Under the Influence offense a felony;  Express strong concerns with “Justice Reinvestment Initiative” legislation that would put new resource and law enforcement burdens on local communities;  Oppose legislation that weakens civil forfeiture authority used by law enforcement to seize drugs and property when/where appropriate;  Support legislation enabling law enforcement agencies to terminate officers for breaches of honesty and professional conduct;  Kent will closely monitor a study of how the state could potentially implement a statewide relicensing program for those who have committed Driving While License Suspended offenses, so long any program does not cancel out successful relicensing and payment plans – or absolve drivers of insurance requirements in individual jurisdictions;  Kent joins District and Municipal Court Judges in support of funding for Court Management System computer upgrades. Economic Development/Infrastructure  Kent supports a bill to increase per-application and overall-funding caps for the “Main Street” program;  Kent supports legislation authorizing Public Facilities Districts to utilize sales tax credit financing authority in law for up to 35 years (vs. the current 20-year limit);  Kent is prepared to support proposed legislation to re-establish a statewide tourism and marketing program to help Washington compete on more even footing with other states;  Kent supports Capital Budget funding and grants for stormwater, including initiatives to make the Model Toxics Control Act account more sustainable and less prone to revenue spikes and reductions; 7 5  Kent supports grant programs such as the Washington Wildlife and Recreation Program, Youth Athletic Facilities (YAF), Safe Routes to Schools, Bicycle- Pedestrian grants, etc.  Kent is prepared to support initiatives to re-establish state funding and partnerships for economic development incentive programs such as the Local Revitalization Financing program or the Local Infrastructure Assistance Tools program.  Kent supports expanded use of “Small Works Rosters” to do small-scale infrastructure and public works jobs in-house;  If others bring forward pilot legislation to allow digital billboards to be placed on properties in close proximity to state highway corridor rights-of-way, Kent will support it. Environment/Natural Resources  Kent supports legislation to expand the “Product Stewardship” program – specifically for prescription drugs and certain types of paints; Land-Use/Growth Management Act  Kent will support requests by the Departments of Ecology and Commerce to continue providing assistance grants for Shoreline Master Program and Growth Management Act plan updates. Kent would like to see more flexible use of these dollars for plan update needs;  Kent supports efforts to streamline the State Environmental Policy Act, including efforts to expand infill exemptions. Local Government  Kent supports updates to the Public Records Act (PRA), particularly with respect to providing Alternative Dispute Resolution to settle conflicts over burdensome requests; establishing a cost recovery mechanism for processing electronic records requests; and making statutory changes around what constitutes an “identifiable” record(s) for purposes of PRA responses – so that requests for ‘any and all’ records would not be considered a legitimate request.  If others bring forth legislation to authorize cities and counties to use the same national background check data that is already available to Parks Districts, Kent will support it. Current law affords law enforcement the ability to use this national background check data-base, but it is not available to other city and county departments which hire people to work with youth and vulnerable adults; Human Resource Issues  Kent will join the Association of Washington Cities and business organizations to oppose legislation that would add new costs and requirements to employee benefit programs without accompanying funds;  Kent will join others in opposing legislation that would expand “presumptive disease” laws and definitions in the area of Workers’ Compensation claims;  Kent would oppose measures that would result in increased employer/employee pension rates. Transportation  In the event the Freight Mobility Strategic Investment Board and other stakeholders submit a list of priority freight projects for the 2017-19 Transportation Budget, Kent would support the inclusion of 212th Street/BNSF grade separation funds;  Kent is prepared to oppose any “orphaned roads” legislation that would allow King County to unilaterally offload road maintenance costs onto cities. Rather than legislation, there should be a process between the county and affected cities on how to deal with “islands” of unincorporated areas that are surrounded by cities. 8 MAYOR’S OFFICE Derek Matheson, Chief Administrative Officer Phone: 253-856-5700 Fax: 253-856-6050 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: October 18, 2016 TO: Operations Committee FROM: Derek Matheson, CAO SUBJECT: 3rd Quarter Procurement Report – Information Only MOTION: Informational only. SUMMARY: The city council adopted a new procurement policy in 2015 that requires staff to provide a quarterly report to council on new procurements over specified dollar amounts and not previously approved by the city council, specifically all contracts/agreements over $25,000 and all leases/agreements that convey an interest in real property. The attached report is for the third quarter of 2016. EXHIBITS: Report is attached BUDGET IMPACT: N/A 9 CONTRACTS GREATER THAN $25,000 NOT APPROVED BY COUNCIL QTR CONTRACT NO.CONTRACTOR'S NAME PROJECT NAME TERM CONTRACT AMOUNT APPROVAL AUTHORITY DEPARTMENT Q3 PW16-290 HD Fowler Company 125 Tank Vault Replacement 7/25/2016-9/30/2016 $25,344.13 Mayor Public Works Q3 PD16-298 King County Sheriff's Office Registered Sex Offender Checks 7/1/2016-6/30/2017 $38,064.85 Mayor Police Department Q3 PW16-012 GeoEngineers Inc Amendment No 1 S 228th St UPRR Grade Separation 8/2/2016-12/31/2017 $34,910.00 Mayor Public Works Q3 IT16-303 Sum Total Systems Inc 2016 Pathlore Renewal 1/19/2016-1/18/2017 $27,790.07 Mayor IT Q3 HR16-313 Karras Consulting Executive Recruitment - Parks & Community Services Director 8/8/2016-12/31/2016 $29,500.00 Mayor Human Resources Q3 PW16-318 R2 Resource Consultants Inc Rock Creek Spawning Surveys 8/10/2016-12/31/2017 $29,342.00 Mayor Public Works Q3 PW16-319 JECB 2016 Paint Line Striping, RPM Replacement & S 208th St Permanent Signing 8/10/2016-12/31/2017 $35,100.00 Mayor Public Works Q3 PW16-321 Washington Patrol Division Green River Natural Resources Area Pump station 8/10/2016-5/31/2017 $30,300.00 Mayor Public Works Q3 PW16-325 Tetra Tech Inc 2016 Lakes Monitoring 8/18/2016-6/30/2017 $37,310.99 Mayor Public Works Q3 PW16-330 Puget Sound Energy Power for James St Pump Station Project - Commercial Line Extension Agreement 8/17/2016-TBD $32,580.25 Mayor Public Works Q3 PK16-331 Statewide Parking Lot Service Sealcoating & Striping of Parking Lot at KMP 9/1/2016-10/31/2016 $33,026.93 Mayor Parks Q3 PW16-334 ICF Jones & Stokes Inc S 228th St UPRR Grade Separation - Stormwater engineering services for the project 8/31/2016-12/31/2016 $61,164.00 Mayor Public Works Q3 PW16-140 Tierra Right of Way Services, Ltd.Supplement No 1 S 228th St UPRR Grade Separation 4/8/2016-7/31/2017 $39,799.00 Mayor Public Works Q3 PK16-348 Rock Solid Trucking Inc DBA Bark Time Blower Truck Service Playground Surfacing Install - Various Parks 9/9/2016-12/8/2016 $28,912.09 Mayor Parks Q3 PD16-356 Gifford Industries Personnel Lockers 9/30/2016-12/31/2016 $25,515.69 Mayor Police Department Q2 PW16-129 GeoEngineers Inc James Street Pump Station 4/1/2016-1/31/2017 $34,489.00 Mayor Public Works Q2 PK16-144 Washington State Slo-pitch Umpires Association 2016 Softball Umpires Goods & Services Agreement 4/14/2016-9/30/2016 $55,000.00 Mayor Parks Q2 PW16-178 Shearer Design LLC S 224th St Project 5/3/2016-12/31/2016 $60,070.80 Mayor Public Works Q2 EC16-183 Seattle Thunderbirds Marketing Package that includesncludes VisitKent.com Logo and Website 5/5/2016-5/5/2017 $49,400.00 Mayor Economic and Community Development Q2 PW16-202 Graybar Electric Company Inc Street Light Poles 5/16/2016-7/1/2016 $52,527.15 Mayor Public Works Q2 IT16-220 Solarwinds Inc 2016-2017 Solarwinds Annual Maintenance Renewal 5/28/2016-5/27/2017 $26,529.68 Mayor IT Q2 PD16-236 Seattle, City of 2015 Justice Assistance Grant (JAG)$45,796.00 Mayor Police Department 10 CONTRACTS GREATER THAN $25,000 NOT APPROVED BY COUNCIL QTR CONTRACT NO.CONTRACTOR'S NAME PROJECT NAME TERM CONTRACT AMOUNT APPROVAL AUTHORITY DEPARTMENT Q2 AD16-239 Northwest Research Group, LLC City of Kent Resident Survey 6/10/2016-8/31/2016 $45,087.00 Mayor Administration Q2 PW16-242 Duke's Root Control Inc.Sanitary Sewer Root Removal 6/16/2016-8/31/2016 $40,000.00 Mayor Public Works Q2 PW16-251 Integra Realty Resources S. 224th/228th St. Project Phase II 6/14/2016-5/15/2017 $30,500.00 Mayor Public Works Q2 EC16-250 Perma Cold Re-pipe suction lines Brine Chiller 6/10/2016-8/31/2016 $28,310.00 Mayor ECD Q2 PD16-256 North Star Construction and Environmental LLC Firing Range Floor Grinding and Sealing 6/20/2016-7/8/2016 $33,873.82 Mayor Police Department Q2 PW16-263 JECB 2016 Asphalt Overlays 6/24/2016-12/31/2017 $29,780.00 Mayor Public Works Q2 PK16-265 Maxon Furniture / Smart Office Environments LLC Furniture Purchase and Installation - New Detective Office 6/28/2016-7/31/2016 $31,064.48 Mayor Parks Q2 PK16-266 Cook Security Group Security Camera Replacement Project: Commons, PWO, SC, Riverbend 6/27/2016-8/31/2016 $32,095.35 Mayor Parks Q2 SHO16-001 CED LED Lighting Project 5/1/2016-6/30/2016 $148,219.20 CAO Showare Q1 PW16-010 Otak Inc James St Sidewalk Improvements 1/4/2016-3/30/2016 $26,500.00 Mayor Public Works Q1 PK16-013 Northwest Playground Equipment Linda Heights Playground Renovation 1/11/2016-3/11/2016 $26,645.76 Mayor Parks Q1 PW16-022 Department of Ecology WQSWCAP-1517-KENTPW-00060 NPDES Grant - Permit Compliance Activities - No match grant 7/1/2015-3/31/2017 (signed by Mayor 1/15/2016)$50,000.00 Mayor Public Works Q1 HR13-088-002 Aduro (formerly Worksite Wellness LLC) Amendment 1 Master Services Agreement Workshite Wellness - citywide wellness program 1/1/2016-12/31/2017 (renewing automatically)$36,000 Mayor Human Resources Q1 PW16-029 Holaday-Parks Inc Guiberson Reservoir 2/1/20216-12/31/2016 $57,319.57 Mayor Public Works Q1 EC16-032 VanNess Feldman Federal Lobbyist 2/2/2016-12/31/2016 $56,000.00 Mayor Economic and Community Development Q1 PK16-040 Northwest Playground Equipment Service Club Playground Equipment 2/1/2016-5/9/2016 $26,198.64 Mayor Parks Q1 PW16-048 72nd Ave S Extension Engineering Construction Support 2/10/2016-3/31/2017 $33,820.80 Mayor Public Works Q1 PK16-049 Highline School District No 401 Camp Waskowitz 8/1/2016-8/5/2016 (signed by Mayor 2/16/2016)$40,280.00 Mayor Parks Q1 PK16-050 Eastside LLC dba Eastside Electric Hogan Park Light Pole Conduit Repair 1/27/2016-4/1/2016 $32,061.60 Mayor Parks 11 CONTRACTS GREATER THAN $25,000 NOT APPROVED BY COUNCIL QTR CONTRACT NO.CONTRACTOR'S NAME PROJECT NAME TERM CONTRACT AMOUNT APPROVAL AUTHORITY DEPARTMENT Q1 IT16-056 ePlus Technology Inc 2016-2017 ePlus Storage Annual Support & Maintenance 2/5/2016-2/5/2017 $28,853.25 Mayor IT Q1 PW16-063 GeoEngineers Inc S 212th St Erosion Repair 2/23/2016-12/31/2016 $27,283.00 Mayor Public Works Q1 PW16-065 AmTest Inc Routine Bacteriological Testing 2/28/2016-3/1/2018 $47,731.00 Mayor Public Works Q1 PK16-095 Site Workshop LLC Kent Memorial Park Playground Renovation Project Design 3/18/2016-11/30/2016 $32,300.00 Mayor Parks Q1 PW16-098 A Plus Demolition & Excavation Recycling Events 3/18/2016-12/31/2016 $30,000.00 Mayor Public Works Q1 PW16-103 GeoEngineers Inc South 208th Street Road Repairs 3/22/2016-12/31/2016 $38,076.00 Mayor Public Works Q1 SHO15-001 NCSI Concessions Menu Reader Boards 11/1/2015-2/29/2016 $37,047.24 General Manager Showare 12 FINANCE Aaron BeMiller, Director Phone: 253-856-5260 Fax: 253-856-6255 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: October 18, 2016 TO: Operations Committee FROM: Aaron BeMiller, Director SUBJECT: August Financial Report – Information Only MOTION: Information Only SUMMARY: The Finance Director will report on the August 2016 financial report. BUDGET IMPACT: N/A BACKGROUND: N/A 13 2016 Adj Budget 2016 YTD 2016 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) Revenues 87,662,060 56,720,705 91,714,840 4,052,780 4.6% Expenditures 89,155,760 50,389,481 89,987,040 (831,280)-0.9% Net Revenues Less Expenditures (1,493,700) 6,331,223 1,727,800 3,221,500 Beginning Fund Balance 15,372,499 15,372,499 15,372,499 Ending Fund Balance 13,878,799 21,703,722 17,100,299 Ending Fund Balance Detail: General Fund Reserves 11,036,189 14,293,199 12.4%15.9% Contingency for Unanticipated Costs 1,500,000 1,500,000 Strategic Opportunities Fund 425,000 425,000 Restricted for Annexation 917,610 882,100 Revenue Overview Expenditures Overview August 2016 Monthly Financial Report City of Kent, Washington General Fund Overview Summary Analysis through August show both revenues and expenditures ending the year favorable compared to budget, creating an overall positive variance amount of $3.2m. The current estimated ending fund balance reserves for 2016 calculates to 15.9% of estimated 2016 expenses. Revenues are estimated to end the year at nearly $4.1m or 4.6% higher than budgeted. Most of the City's major revenue sources show positive variances compared to budget, including sales tax ($695k), licenses and permits ($507k), intergovernmental revenue ($518k) and B&O ($1.6m). This is offset by unfavorable variances compared to budget for other taxes ($150k) and fines and forfeitures ($44k). Through August, all departments are remaining fairly close to budget. Any significant variances are discussed on the following pages. 14 Revenue Categories 2016 Adj Budget 2016 YTD 2016 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) Taxes: Property 22,210,230 11,999,658 22,367,700 157,470 0.7% Sales & Use 18,633,990 12,913,802 19,328,700 694,710 3.7% Utility 18,140,150 12,868,236 18,453,600 313,450 1.7% Business & Occupation 6,500,000 4,298,154 8,083,150 1,583,150 24.4% Other 1,100,100 512,120 950,700 (149,400) -13.6% Licenses and Permits 5,139,120 3,902,357 5,646,200 507,080 9.9% Intergovernmental Revenue 7,419,970 4,384,220 7,938,000 518,030 7.0% Charges for Services 4,627,290 3,578,227 4,751,200 123,910 2.7% Fines and Forfeitures 1,565,970 1,081,812 1,521,900 (44,070)-2.8% Miscellaneous Revenue 1,393,650 1,182,119 1,742,100 348,450 25.0% Transfers In 931,590 - 931,590 - Total Revenues 87,662,060 56,720,705 91,714,840 4,052,780 4.6% Variance Notes August 2016 Monthly Financial Report City of Kent, Washington General Fund Overview - Revenues Other Taxes: Estimated reduction of $150,000 due to the closure of a casino in the first quarter of 2015. The 2016 budget has not updated to reflect the closure. 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: Continues a steady positive trend again this year, largely due to interest on investments. Year-end projection is expected to exceed budget by roughly $350k, which equates to 25%. B&O Taxes: Conservatively estimated to end the year at nearly $1.6m over budget, due to onboarding and collection efforts of the expanded B&O team. Sales & Use Taxes: Continues a steady positive trend this year with year-end revenues projected to be nearly $700,000 over budget, which equates to 3.7%. Licenses and Permits: Year-end projection is expected to exceed budget by $507,000, which equates to 9.9%. 15 Prior Year Revenues Budgeted Revenues Actual Revenues January 5,234 4,899 4,829 February 4,537 5,263 5,138 March 6,375 7,118 6,546 April 15,434 14,001 16,091 May 6,025 6,815 6,600 June 5,793 6,138 5,578 July 6,619 5,508 6,545 August 4,702 4,683 5,395 September 6,462 6,411 0 October 15,775 14,340 0 November 5,636 5,753 0 December 8,678 6,731 0 Total 91,270 87,662 56,721 Prior Year Revenues Budgeted Revenues Actual Revenues January 0 0 0 February 167 173 199 March 718 678 719 April 8,857 8,468 9,550 May 1,667 2,163 1,305 June 110 125 83 July 25 36 55 August 87 94 88 September 573 483 0 October 8,564 8,452 0 November 1,084 1,362 0 December 164 177 0 Total 22,016 22,210 12,000 Prior Year Revenues Budgeted Revenues Actual Revenues January 1,435 1,429 1,461 February 1,817 1,867 2,026 March 1,414 1,347 1,519 April 1,408 1,335 1,575 May 1,493 1,539 1,739 June 1,333 1,363 1,236 July 1,456 1,542 1,560 August 1,681 1,674 1,798 September 1,605 1,581 0 October 1,478 1,553 0 November 1,718 1,696 0 December 1,745 1,708 0 Total 18,583 18,634 12,914 August 2016 Monthly Financial Report City of Kent, Washington General Fund Revenues ($ in Thousands) All Revenues Sources Property Tax Sales Tax $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 16 Bud 15 Act 16 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 16 Bud 15 Act 16 Act $0 $5,000 $10,000 $15,000 $20,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 16 Bud 15 Act 16 Act 16 August 2016 Monthly Financial Report City of Kent, Washington General Fund Revenues ($ in Thousands) Prior Year Revenues Budgeted Revenues Actual Revenues January 1,965 1,978 2,115 February 1,578 1,533 1,708 March 1,560 1,495 1,584 April 1,529 1,825 1,597 May 1,459 1,378 1,491 June 1,393 1,308 1,368 July 1,497 1,691 1,563 August 1,513 1,283 1,442 September 1,518 1,473 0 October 1,446 1,484 0 November 1,451 1,314 0 December 1,242 1,379 0 Total 18,152 18,140 12,868 Prior Year Revenues Budgeted Revenues Actual Revenues January 11 7 1 February 18 52 2 March 103 148 165 April 1,784 1,704 1,383 May 77 245 737 June 52 121 115 July 1,790 1,339 1,632 August 115 200 775 September 77 102 0 October 1,893 1,326 0 November 254 283 0 December 2,505 2,072 0 Total 8,680 7,600 4,810 Prior Year Revenues Budgeted Revenues Actual Revenues January 1,444 1,387 1,252 February 957 921 1,203 March 2,579 2,631 2,559 April 1,477 1,292 1,986 May 1,329 1,381 1,328 June 2,905 2,989 2,775 July 1,461 1,408 1,734 August 1,305 1,319 1,290 September 2,690 2,678 0 October 2,006 1,597 0 November 1,129 1,000 0 December 3,000 2,474 0 Total 22,283 21,078 14,129 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 16 Bud 15 Act 16 Act $0 $2,000 $4,000 $6,000 $8,000 $10,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 16 Bud 15 Act 16 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 16 Bud 15 Act 16 Act 17 Department 2016 Adj Budget 2016 YTD 2016 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) City Council 351,780 223,672 332,900 18,880 5.4% Mayor's Office/City Clerk 2,415,270 1,488,527 2,280,300 134,970 5.6% Economic & Community Dev 6,026,570 3,592,016 5,861,200 165,370 2.7% Finance 2,644,570 1,848,756 2,733,880 (89,310)-3.4% Fire Contracted Services 3,537,380 2,401,226 3,631,000 (93,620)-2.6% Human Resources 2,133,970 1,042,116 1,772,500 361,470 16.9% Information Technology 480,010 339,884 508,200 (28,190)-5.9% Law 1,464,870 984,761 1,464,200 670 0.0% Municipal Court 3,042,040 2,039,947 3,041,800 240 0.0% Parks, Recreation & Comm Svcs 16,888,500 10,683,535 16,662,800 225,700 1.3% Police 34,941,870 22,726,558 34,889,600 52,270 0.1% Public Works 1,436,120 966,018 1,432,700 3,420 0.2% Non-Departmental 13,792,810 2,052,466 15,375,960 (1,583,150) -11.5% Total Expenditures 89,155,760 50,389,481 89,987,040 (831,280)-0.9% Variance Notes August 2016 Monthly Financial Report City of Kent, Washington General Fund Overview - Expenditures Human Resources - Salary savings due to vacant positions, coupled with underspending in contracted services. 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 the Capital Resources Fund of $1.6million, which equals the anticipated B&O revenue collections in excess of the budgeted amount. A budget change will be necessary to provide the budget authority to make the transfer. 18 2014 2015 2016 2016 2016 Actual Actual Adj Budget YTD Est Actual Beginning Fund Balance 7,471,860 *11,312,140 15,372,499 15,372,499 15,372,499 Revenues Taxes: Property 20,696,272 22,015,525 22,210,230 11,999,658 22,367,700 Sales & Use 17,761,585 18,583,057 18,633,990 12,913,802 19,328,700 Utility 17,775,687 18,151,853 18,140,150 12,868,236 18,453,600 Business & Occupation 303,600 7,656,220 6,500,000 4,298,154 8,083,150 Other 1,106,821 1,023,500 1,100,100 512,120 950,700 Licenses and Permits 5,818,615 5,827,474 5,139,120 3,902,357 5,646,200 Intergovernmental Revenue 7,515,935 7,783,935 7,419,970 4,384,220 7,938,000 Charges for Services 6,182,649 5,814,133 4,627,290 3,578,227 4,751,200 Fines and Forfeitures 1,284,798 1,660,366 1,565,970 1,081,812 1,521,900 Miscellaneous Revenue 1,533,392 1,756,485 1,393,650 1,182,119 1,742,100 Transfers In 931,217 996,921 931,590 - 931,590 Total Revenues 80,910,572 91,269,469 87,662,060 56,720,705 91,714,840 Expenditures City Council 293,125 298,884 351,780 223,672 332,900 Mayor's Office/City Clerk 1,927,073 2,211,861 2,415,270 1,488,527 2,280,300 Economic & Community Dev 5,251,662 5,345,212 6,026,570 3,592,016 5,861,200 Finance 2,363,613 2,419,039 2,644,570 1,848,756 2,733,880 Fire Contracted Services 3,422,675 3,513,988 3,537,380 2,401,226 3,631,000 Human Resources 1,167,331 1,039,875 2,133,970 1,042,116 1,772,500 Information Technology 349,002 456,328 480,010 339,884 508,200 Law 1,003,202 1,198,769 1,464,870 984,761 1,464,200 Municipal Court 2,849,954 2,988,951 3,042,040 2,039,947 3,041,800 Parks, Recreation & Comm Svcs 14,854,585 15,897,126 16,888,500 10,683,535 16,662,800 Police 31,263,200 32,992,234 34,941,870 22,726,558 34,889,600 Public Works 4,929,327 4,896,300 1,436,120 966,018 1,432,700 Non-Departmental 7,395,544 13,950,543 13,792,810 2,052,466 15,375,960 Total Expenditures 77,070,292 87,209,110 89,155,760 50,389,481 89,987,040 Net Revenues less Expenditures 3,840,280 4,060,359 (1,493,700)1,727,800 Ending Fund Balance 11,312,140 15,372,499 13,878,799 17,100,299 Ending Fund Balance Detail: General Fund Reserves 8,159,940 11,749,159 11,036,189 14,293,199 9.4%13.2% 12.4%15.9% 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 1,652,200 1,698,340 917,610 882,100 * 2014 beginning fund balance reduced by $2,026,000 to reflect the prior period adjustment required to properly record repayment to the Utility Funds. August 2016 Monthly Financial Report City of Kent, Washington General Fund 19 2014 2015 2016 % of thru August thru August thru August Budget Revenues Taxes: Property 10,948,921 11,631,725 11,999,658 367,933 3.2% 54.0% Sales & Use 11,292,910 12,037,650 12,913,802 876,151 7.3% 69.3% Utility 13,254,685 13,640,835 12,868,236 (772,599) -5.7% 70.9% Business & Occupation 300,000 3,449,800 4,298,154 848,354 24.6% 66.1% Other 531,558 501,549 512,120 10,571 2.1% 46.6% Licenses and Permits 3,389,341 2,964,948 3,902,357 937,409 31.6% 75.9% Intergovernmental Revenue 4,033,028 4,120,047 4,384,220 264,173 6.4% 59.1% Charges for Services 4,477,803 3,975,282 3,578,227 (397,054) -10.0% 77.3% Fines and Forfeitures 993,584 1,236,004 1,081,812 (154,192) -12.5% 69.1% Miscellaneous Revenue 942,718 1,161,444 1,182,119 20,674 1.8% 84.8% Transfers In - - - - Total Revenues 50,164,548 54,719,285 56,720,705 2,001,419 3.7% 64.7% Expenditures City Council 190,286 200,452 223,672 23,221 11.6% 63.6% Mayor's Office/City Clerk 1,237,702 1,414,477 1,488,527 74,050 5.2% 61.6% Economic & Community Dev 3,401,749 3,390,095 3,592,016 201,921 6.0% 59.6% Finance 1,402,900 1,585,444 1,848,756 263,312 16.6% 69.9% Fire Contracted Services 2,136,296 2,427,457 2,401,226 (26,231) -1.1% 67.9% Human Resources 825,611 688,946 1,042,116 353,170 51.3% 48.8% Information Technology 230,854 285,524 339,884 54,360 19.0% 70.8% Law 609,869 801,332 984,761 183,428 22.9% 67.2% Municipal Court 1,848,189 1,964,496 2,039,947 75,451 3.8% 67.1% Parks, Recreation & Comm Svcs 9,532,392 10,405,005 10,683,535 278,530 2.7% 63.3% Police 20,496,783 21,517,015 22,726,558 1,209,543 5.6% 65.0% Public Works *2,496,359 3,284,659 966,018 (2,318,641) -70.6% 67.3% Non-Departmental 378,874 118,447 2,052,466 1,934,019 1632.8% 14.9% Total Expenditures 44,787,864 48,083,349 50,389,481 2,306,132 4.8% 56.5% * 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. 2015-16 Variance August 2016 Monthly Financial Report City of Kent, Washington Year-to-Year Month Comparison General Fund 20 2014 2015 2016 2016 2016 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 10,654,053 11,793,043 12,065,140 7,554,624 12,544,550 Expenditures 10,351,988 9,072,561 14,606,290 5,919,012 14,424,970 Net Revenues Less Expenditures 302,065 2,720,483 (2,541,150)1,635,611 (1,880,420) LEOFF 1 Retiree Benefits Revenues 1,055,840 1,341,722 1,164,510 502,872 1,118,430 Expenditures 887,036 1,279,216 1,125,890 606,081 1,083,020 Net Revenues Less Expenditures 168,803 62,506 38,620 (103,210)35,410 Lodging Tax Revenues 249,581 279,878 210,230 164,248 276,000 Expenditures 71,441 257,164 271,500 164,452 258,530 Net Revenues Less Expenditures 178,140 22,714 (61,270)(204)17,470 Youth/Teen Programs Revenues 888,250 894,592 912,600 617,923 921,890 Expenditures 898,524 920,380 942,000 942,000 Net Revenues Less Expenditures (10,274)(25,788)(29,400)617,923 (20,110) Capital Resources Revenues 16,413,708 20,561,359 14,414,120 10,698,654 19,140,870 Expenditures 11,997,869 11,538,631 15,332,300 3,231,935 15,170,000 Net Revenues Less Expenditures 4,415,838 9,022,728 (918,180)7,466,719 3,970,870 Criminal Justice Revenues 3,780,757 4,753,967 3,953,990 3,204,950 4,162,500 Expenditures 3,096,924 2,965,408 4,124,915 1,905,207 3,120,000 Net Revenues Less Expenditures 683,833 1,788,558 (170,925)1,299,743 1,042,500 Community Development Block Grant Revenues 835,776 808,466 914,740 192,970 914,740 Expenditures 835,776 808,466 914,740 445,889 914,740 Net Revenues Less Expenditures (252,920) ShoWare Operating Revenues 3,456,124 1,680,882 1,065,810 471,942 1,313,350 Expenditures 980,046 518,720 835,930 299,020 711,650 Net Revenues Less Expenditures 2,476,077 1,162,163 229,880 172,922 601,700 Other Operating Revenues 134,073 143,726 140,280 34,060 140,280 Expenditures 70,478 64,765 140,280 65,256 96,000 Net Revenues Less Expenditures 63,595 78,961 (31,196)44,280 Water Utility Revenues 20,948,199 20,140,494 18,870,370 13,631,244 20,645,000 Expenditures 15,890,786 17,620,354 19,214,740 10,693,779 18,458,060 Net Revenues Less Expenditures 5,057,413 2,520,140 (344,370)2,937,465 2,186,940 Special Revenue Funds Enterprise Funds August 2016 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. 21 2014 2015 2016 2016 2016 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. August 2016 Monthly Financial Report Other Funds Overview (Revenues and Expenditures) City of Kent, Washington Sewer/Drainage Utility Revenues 46,608,123 48,525,436 46,370,710 32,388,194 47,497,165 Expenditures 43,535,541 47,086,396 47,992,300 27,772,092 49,180,470 Net Revenues Less Expenditures 3,072,581 1,439,040 (1,621,590)4,616,102 (1,683,305) Solid Waste Utility Revenues 814,540 409,191 606,600 Expenditures 365 512,995 297,159 404,010 Net Revenues Less Expenditures (365)301,545 112,032 202,590 Golf Complex Revenues 2,489,362 2,661,490 2,774,450 1,898,851 2,580,000 Expenditures 2,693,040 2,867,873 3,143,490 2,139,323 3,140,000 Net Revenues Less Expenditures (203,678)(206,383)(369,040)(240,472)(560,000) Fleet Services Revenues 4,425,076 4,537,950 4,674,240 3,196,825 4,787,370 Expenditures 3,955,111 3,194,529 5,892,350 2,434,865 4,208,000 Net Revenues Less Expenditures 469,965 1,343,420 (1,218,110)761,961 579,370 Central Services Revenues 356,338 372,070 422,320 267,330 402,330 Expenditures 336,633 350,962 401,760 248,954 394,580 Net Revenues Less Expenditures 19,704 21,108 20,560 18,377 7,750 Information Technology Revenues 6,878,827 7,603,220 7,127,530 5,027,191 7,566,540 Expenditures 6,130,328 6,708,773 7,481,090 3,766,577 7,441,770 Net Revenues Less Expenditures 748,499 894,447 (353,560)1,260,614 124,770 Facilities Revenues 5,096,650 5,429,412 5,382,650 3,574,739 5,362,930 Expenditures 4,673,883 5,527,155 5,402,190 2,825,986 5,117,300 Net Revenues Less Expenditures 422,768 (97,744)(19,540)748,753 245,630 Unemployment Revenues 380,356 397,641 402,720 277,297 414,900 Expenditures 112,106 98,860 401,740 115,260 145,000 Net Revenues Less Expenditures 268,250 298,781 980 162,037 269,900 Workers Compensation Revenues 1,506,197 1,095,382 1,074,910 684,048 1,140,520 Expenditures 80,344 681,822 1,495,730 734,703 1,321,680 Net Revenues Less Expenditures 1,425,853 413,560 (420,820)(50,655)(181,160) 2015: Revenues reflect 2015-16 rate reduction, with GF savings going to the CR Fund to reduce the deficit. Employee Health & Wellness Revenues 9,626,446 10,487,102 10,210,310 7,126,139 10,680,500 Expenditures 9,809,909 11,298,096 11,583,040 7,654,363 11,532,110 Net Revenues Less Expenditures (183,463)(810,993)(1,372,730)(528,224)(851,610) Internal Service Funds 22 2014 2015 2016 2016 2016 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. August 2016 Monthly Financial Report Other Funds Overview (Revenues and Expenditures) City of Kent, Washington Liability Insurance Revenues 543,969 1,135,932 1,187,110 761,346 1,141,700 Expenditures 1,543,321 1,187,054 1,926,880 1,505,446 1,802,510 Net Revenues Less Expenditures (999,353)(51,122)(739,770)(744,100)(660,810) 2014: Revenues reflect a one-time adjustment to reduce cash reserves. 2015: Revenues reflect 2015-16 rate reduction, with GF savings going to the CR Fund to reduce the deficit. Property Insurance Revenues 568,107 582,938 612,050 408,548 612,800 Expenditures 508,423 471,003 604,600 241,693 532,100 Net Revenues Less Expenditures 59,684 111,935 7,450 166,855 80,700 23 2014 2015 2016 thru August thru August thru August Operating revenues and expenditures only, capital is excluded. Street Fund Revenues 6,190,723 5,751,355 7,554,624 1,803,268 31.4% Expenditures 3,196,004 2,969,532 5,919,012 2,949,481 99.3% Net Revenues Less Expenditures 2,994,720 2,781,824 1,635,611 2016 includes street and transportation revenues and costs moved from the General Fund. LEOFF 1 Retiree Benefits Revenues 541,154 566,673 502,872 (63,802)-11.3% Expenditures 590,696 878,415 606,081 (272,334)-31.0% Net Revenues Less Expenditures (49,542)(311,742)(103,210) 2015 claims were up dramatically compared to 2014, while 2016 thru April is consistent with past years. Lodging Tax Revenues 133,181 150,748 164,248 13,500 9.0% Expenditures 43,088 52,772 164,452 111,680 211.6% Net Revenues Less Expenditures 90,094 97,977 (204) 2016 expenditures reflect increased marketing activities. Youth/Teen Programs Revenues 612,720 624,440 617,923 (6,517)-1.0% Expenditures - - - Net Revenues Less Expenditures 612,720 624,440 617,923 Capital Resources Revenues 6,326,758 8,860,713 10,698,654 1,837,942 20.7% Expenditures 2,901,010 2,451,382 3,231,935 780,553 31.8% Net Revenues Less Expenditures 3,425,749 6,409,330 7,466,719 Criminal Justice Revenues 2,427,878 2,893,553 3,204,950 311,397 10.8% Expenditures 2,008,079 1,864,933 1,905,207 40,275 2.2% Net Revenues Less Expenditures 419,799 1,028,621 1,299,743 2016 increase in revenues due to strong sales tax trends and an increase in seized assets. Community Development Block Grants Revenues 199,062 221,912 192,970 (28,942)-13.0% Expenditures 497,959 374,844 445,889 71,045 19.0% Net Revenues Less Expenditures (298,897)(152,932)(252,920) Lag in grant reimbursement for expenses incurred. ShoWare Operating Revenues 118,874 117,944 471,942 353,999 75.0% Expenditures 725,065 47,003 299,020 252,017 536.2% Net Revenues Less Expenditures (606,192)70,940 172,922 2016 reveues include $225k for the ice plant settlement. 2015-16 Variance Year-to-Year Month Comparison August 2016 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Special Revenue Funds 2016 increase in revenues due to strong REET and sales tax trends. 2015 expenditures reflect one-time land acquisition costs; 2016 includes Pine Tree Park settlement. 24 2014 2015 2016 thru August thru August thru August Operating revenues and expenditures only, capital is excluded. 2015-16 Variance Year-to-Year Month Comparison August 2016 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Other Operating Revenues 12,500 13,340 34,060 20,720 155.3% Expenditures 30,431 19,599 65,256 45,657 233.0% Net Revenues Less Expenditures (17,931)(6,259)(31,196) Includes City Art Program, Neighborhood Matching Grants and Human Services Emergency Programs Water Utility Revenues 13,015,112 13,128,425 13,631,244 502,819 3.8% Expenditures 10,539,890 9,450,036 10,693,779 1,243,743 13.2% Net Revenues Less Expenditures 2,475,222 3,678,389 2,937,465 Sewer/Drainage Utility Revenues 33,892,056 32,128,767 32,388,194 259,427 0.8% Expenditures 23,918,626 24,354,259 27,772,092 3,417,834 14.0% Net Revenues Less Expenditures 9,973,430 7,774,508 4,616,102 Solid Waste Utility Revenues 409,191 409,191 100.0% Expenditures 297,159 297,159 100.0% Net Revenues Less Expenditures 112,032 Solid Waste Utility established in 2016. Golf Complex Revenues 1,916,407 2,076,397 1,898,851 (177,546)-8.6% Expenditures 1,796,424 1,900,937 2,139,323 238,386 12.5% Net Revenues Less Expenditures 119,983 175,460 (240,472) 2016 revenues down due to inclement weather conditions in Q1. Fleet Services Revenues 2,922,966 3,044,255 3,196,825 152,570 5.0% Expenditures 2,329,572 2,240,201 2,434,865 194,664 8.7% Net Revenues Less Expenditures 593,394 804,054 761,961 Central Services Revenues 228,423 255,839 267,330 11,492 4.5% Expenditures 229,579 270,577 248,954 (21,623)-8.0% Net Revenues Less Expenditures (1,156)(14,738)18,377 Information Technology Revenues 4,568,121 4,730,321 5,027,191 296,870 6.3% Expenditures 3,723,855 4,171,800 3,766,577 (405,223)-9.7% Net Revenues Less Expenditures 844,266 558,521 1,260,614 Internal Service Funds Enterprise Funds 25 2014 2015 2016 thru August thru August thru August Operating revenues and expenditures only, capital is excluded. 2015-16 Variance Year-to-Year Month Comparison August 2016 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Facilities Revenues 3,397,677 3,552,655 3,574,739 22,084 0.6% Expenditures 2,665,370 2,783,920 2,825,986 42,066 1.5% Net Revenues Less Expenditures 732,307 768,735 748,753 Unemployment Revenues 250,752 265,581 277,297 11,716 4.4% Expenditures 83,758 77,843 115,260 37,417 48.1% Net Revenues Less Expenditures 166,994 187,739 162,037 Workers Compensation Revenues 857,243 640,988 684,048 43,059 6.7% Expenditures 499,049 622,257 734,703 112,446 18.1% Net Revenues Less Expenditures 358,194 18,732 (50,655) Employee Health & Wellness Revenues 6,573,250 6,965,844 7,126,139 160,295 2.3% Expenditures 6,325,031 7,337,329 7,654,363 317,034 4.3% Net Revenues Less Expenditures 248,219 (371,485)(528,224) Liability Insurance Revenues 1,329,285 756,993 761,346 4,354 0.6% Expenditures 1,028,217 1,226,356 1,505,446 279,091 22.8% Net Revenues Less Expenditures 301,068 (469,363)(744,100) Property Insurance Revenues 378,747 388,644 408,548 19,904 5.1% Expenditures 715,694 669,302 622,590 (46,712)-7.0% Net Revenues Less Expenditures (336,947)(280,658)(214,042) 26 2016 2016 2016 2016 Beginning Fund Balance Estimated Revenues Estimated Expenditures Ending Fund Balance Operating funds only, capital funds are excluded. General Fund 15,372,499 91,714,840 89,987,040 17,100,299 Street Fund 4,092,055 12,544,550 14,424,970 2,211,635 LEOFF 1 Retiree Benefits 1,093,532 1,118,430 1,083,020 1,128,942 Lodging Tax 394,516 276,000 258,530 411,986 Youth/Teen Programs 121,275 921,890 942,000 101,165 Capital Resources 5,775,064 19,140,870 15,170,000 9,745,934 Criminal Justice 3,981,627 4,162,500 3,120,000 5,024,127 Community Development Block Grants 914,740 914,740 ShoWare Operating 1,596,543 1,313,350 711,650 2,198,243 Other Operating 364,242 140,280 96,000 408,522 Councilmanic Debt Service 8,329 9,083,790 9,083,790 8,329 Special Assessments Debt Service 2,070,434 1,709,750 3,032,750 747,434 Water Utility 8,285,372 20,645,000 18,458,060 10,472,312 Sewer/Drainage Utility 10,162,058 47,497,165 49,180,470 8,478,753 Solid Waste Utility (365) 606,600 404,010 202,225 Golf Complex (3,043,675) 2,580,000 3,140,000 (3,603,675) Fleet Services 4,301,237 4,787,370 4,208,000 4,880,607 Central Services (46,226) 402,330 394,580 (38,476) Information Technology 2,808,737 7,566,540 7,441,770 2,933,507 Facilities 1,672,947 5,362,930 5,117,300 1,918,577 Unemployment 1,038,938 414,900 145,000 1,308,838 Workers Compensation 2,541,813 1,140,520 1,321,680 2,360,653 Employee Health & Wellness 6,122,922 10,680,500 11,532,110 5,271,312 Liability Insurance 2,452,656 1,141,700 1,802,510 1,791,846 Property Insurance 348,579 612,800 532,100 429,279 Internal Service Funds General Fund August 2016 Monthly Financial Report City of Kent, Washington Fund Balances Special Revenue Funds Enterprise Funds Debt Service Funds 27 This page intentionally left blank 28 Kent Council Operations Committee FINANCE Aaron BeMiller, Director Phone: 253-856-5260 Fax: 253-856-6255 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: October 18, 2016 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