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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 01/05/2016 (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 - Dana Ralph - Les Thomas, Chair January 5, 2015 4 p.m. Item Description Action Speaker Time Page 1. Call to order Chair Thomas 1 2. Roll Call Chair Thomas 1 3. Changes to the Agenda Chair Thomas 1 4. Approval of Check Summary Report dated 11/16/2015 thru 11/30/2015 and 12/1/2015 thru 12/15/2015 YES Chair Thomas 2 5. Approval of Meeting Minutes Dated December 1, 2015 YES Chair Thomas 2 1 6. Riverbend Restaurant Update NO Jeff Watling & Arnold Shain 5 7 7. November Financial Report NO Aaron BeMiller 5 9 8. Director’s Report NO Aaron BeMiller 5 21 This page intentionally left blank OPERATIONS COMMITTEE MINUTES December 1, 2015 Committee Members Present: Les Thomas, Chair, Dana Ralph and Bill Boyce. The meeting was called to order by Les Thomas at 4:00 p.m. 1. ROLL CALL. 2. CHANGE TO AGENDA. There were no changes to the agenda. 3. APPROVAL OF THE CHECK SUMMARY REPORT DATED 11/1/2015 THROUGH 11/15/2015. B. Boyce moved to approve the check summary report dated 11/1/2015 through 11/15/2015. D. Ralph seconded the motion, which passed 3-0. 4. APPROVAL OF MINUTES DATED NOVEMBER 17, 2015. D. Ralph moved to approve the Operations Committee minutes dated November 17, 2015. B. Boyce seconded the motion, which passed 3-0. 5. 2016 STATE LEGISLATIVE AGENDA - RECOMMEND. Communication and Public Affairs Manager Michelle Wilmot and Lobbyist Doug Levy presented the draft legislative agenda. Categories on the agenda include: top priorities; issues that are key; and a laundry list of issues that are tracked and monitored throughout the session. 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. Ongoing challenges with education funding at the state level threaten state-shared revenues the City relies upon. City priorities in the upcoming session include, but are not limited to, protecting Streamlined Sales Tax payments and other state-shared revenues, with a combined annual impact of approximately $10 million. It is clear the City will need an aggressive and effective lobbying effort during the 2016 legislative session by all elected leadership of Kent. B. Boyce moved to recommend to Council to adopt the City of Kent’s 2016 State Legislative Agenda. D. Ralph seconded the motion, which passed 3-0. 1 Operations Committee Minutes December 1, 2015 Page: 2 6. CULTURAL COMMUNITIES BOARD ORDINANCE - RECOMMEND. Human Services Planner Dinah Wilson briefed committee members on the Mayor’s vision for the Cultural Communities Board. The role of the Cultural Communities Board will be to facilitate communication and understanding among City government leaders, residents, and diverse cultures, with the objective of increasing civic engagement by and with Kent’s diverse cultural and ethnic communities. The new Board will have 18 members with two being youth and will serve one-year terms. The Mayor and Council have both put forward efforts to address community cultural issues, which have merged into a “Community Engagement Initiative” that is currently managed through a Consultant Services Contract with LueRachelle Brim-Atkins. As part of this initiative, the Mayor has proposed amending the Kent City Code to officially disband the Diversity Advisory Board and establish a new Cultural Communities Board. D. Ralph moved to recommend to Council to adopt an ordinance as amended that repeals existing Chapter 2.56 of the Kent City Code and enacts a new Chapter 2.56 to create a “Cultural Communities Board.” B. Boyce seconded the motion, which passed 3-0. 7. COMPREHENSIVE PLAN/CAPITAL FACILITIES ELEMENT AMENDMENT AND UPDATE TO KENT CITY CODE CHAPTER 12.13 SCHOOL IMPACT FEES - RECOMMEND. Long Range Planning Manager Charlene Anderson discussed Kent City Code authorizing school impact fees on behalf of any school district which provides to the City a capital facilities plan; the plan is adopted by reference as part of the Capital Facilities Element of the Kent Comprehensive Plan. The Kent, Federal Way, Auburn and Highline School Districts submitted the annual update to their capital facilities plans, and on October 20, 2015, the City Council held a public hearing on the plans and updated school impact fees. Any council action on the comprehensive plan amendment pertaining to the school district capital facilities plans and associated impact fees is taken concurrently with adoption of the budget. B. Boyce moved to recommend Council to adopt two ordinances updating the Capital Facilities Element of the Kent Comprehensive Plan and Chapter 12.13 Kent City Code to incorporate the 2015/16 - 2020/21 Capital Facilities Plans of the Kent, Federal Way, Auburn and Highline School Districts with updated School Impact Fees. D. Ralph seconded the motion, which passed 3-0. 8. ORDINANCE AMENDING KCC 2.34.050 REGARDING MUNICIPAL JUDGE SALARIES – RECOMMEND. City Attorney Tom Brubaker explained pursuant to the direction of the administrator for the courts, as authorized by the Chief Justice of the Washington Supreme Court, the city codifies its past practice regarding municipal judge salaries, and will affirmatively state that the city will automatically adjust Kent Municipal Court judge salaries to reflect future adjustments made by the Washington Citizens’ Commission of Salaries for Elected Officials. 2 Operations Committee Minutes December 1, 2015 Page: 3 There is no budget impact, rather a change to the ordinance. D. Ralph moved to recommend to Council to adopt an Ordinance amending Section 2.34.050 of the Kent City Code regarding municipal judge salaries and costs. B. Boyce seconded the motion, which passed 3-0. 9. 2015-2018 AMENDMENT TO THE CITY OF KENT AND THE KENT FIRE DEPARTMENT REGIONAL FIRE AUTHORITY INTERLOCAL AGREEMENT FOR THE DIVISION OF SERVICES RESULTING FROM THE FORMATION OF THE KENT FIRE DEPARTMENT REGIONAL FIRE AUTHORITY – RECOMMEND. Chief Administrative Officer Derek Matheson provided updates and agreement extensions between the City and RFA to the following:  Extends the agreement to December 31, 2017  Adds enhanced reporting requirements, primarily for audit purposes  Reduces facilities maintenance services and reduces the RFA's payment to the city by $60,000  Realigns IT services and increases the RFA's payment to the City by approximately $80,000  Adds an exhibit on CPR/first aid classes (largely to memorialize current practice)  Adjusts other payments for inflation As the RFA matures as an organization, the City can expect it will continue to assume more responsibility for its own IT and facilities maintenance needs. B. Boyce moved to recommend to Council authorize the Mayor to enter into an amended interlocal agreement with the Kent Fire Department Regional Fire Authority subject to final terms and conditions acceptable to the Chief Administrative Officer and City Attorney. D. Ralph seconded the motion, which passed 3-0. 10. PROPERTY TAX SUBSTANTIAL NEED ORDINANCE - RECOMMEND. Finance Director Aaron BeMiller made a request requiring a substantial need ordinance for the City to levy a one percent increase although the implicit price deflator is less than one percent. By approving this ordinance, it is expected that the King County Assessor’s Office to levy nearly $221,000. It was noted that currently there are no final numbers from the King County Assessor’s Office. Sometime around November 2016, adjustments will be made once the City receives that information. D. Ralph moved to recommend to Council adopt the substantial need ordinance for the 2016 budget. B. Boyce seconded the motion, which passed 3-0. 3 Operations Committee Minutes December 1, 2015 Page: 4 11. PROPERTY TAX LEVY ORDINANCE – RECOMMEND. Mr. BeMiller requested a property tax increase of 3.89 percent, which includes an increase of one percent on property plus new construction and adjustments from the 2015 levy. The tax is for the City’s 2016 budget, to be applied to the general fund for the purpose of paying the general expenses of municipal government. B. Boyce moved to recommend to Council adopt the property tax levy and ordinance for the 2016 budget as amended. D. Ralph seconded the motion, which passed 3-0. 12. ORDINANCE AMENDING THE CAPITAL FACILITIES ELEMENT OF THE COMPREHENSIVE PLAN FOR THE 2016-2021 CAPITAL IMPROVEMENT PLAN – RECOMMEND. Mr. BeMiller’s next request is to assure that the comprehensive plan remains relevant and up-to-date per procedures established in KCC 12.02. The Capital Facilities Element of the Comprehensive Plan is amended concurrently with the adoption or amendment of the City’s budget to reflect the updated 2016-2021 Capital Improvement Plan. The 2016-2021 Capital Improvement Plan identifies a six-year plan for capital improvement projects, including costs and revenue sources. D. Ralph moved to recommend to Council adopt the ordinance amending the Capital Facilities Element of the Comprehensive Plan for the 2016-2021 Capital Improvement Plan. B. Boyce seconded the motion, which passed 3-0. 13. 2015-2016 MID-BIENNIAL BUDGET MODIFICATION ORDINANCE – RECOMMEND. Mr. BeMiller explained that the City has completed a mid-biennial review of the 2016 budget and identified modifications to the budget. The budget adjustment totals $19,654,720 and is outlined by fund in Exhibit “A.” Consistent with the Mayor Cooke’s proposal, the adjustments include a change for 2016 in the distribution of internal utility tax dollars previously allocated as 50 percent IT and 50 percent Streets capital funding. For the 2016 adjustment, the allocation is changed to:  50 percent IT capital  25 percent Parks for Morrill Meadows/YCMA  25 percent Place Making for Meeker Street. He further explained, the 2016 adjustment eliminates the use of banked property tax capacity and instead balances the General Fund by:  Increasing the General Fund sales tax budget by $430,000  A one-time reallocation of $432,970 of sales tax revenues from the Capital Improvement Fund. B. Boyce moved to recommend to Council adopt the ordinance approving the 2015- 2016 Mid-Biennium Budget Adjustment Ordinance. D. Ralph seconded the motion, which passed 3-0. 4 Operations Committee Minutes December 1, 2015 Page: 5 14. CONSOLIDATING BUDGET ADJUSTMENT ORDINANCE FOR ADJUSTMENTS BETWEEN OCTOBER 1, 2015, AND DECEMBER 31, 2015 – RECOMMEND. Assistant Finance Director Barbara Lopez requested authorization to approve the technical gross budget adjustment ordinance reflecting an overall budget increase of $2,481,824. An overall increase of $1,913,924 was previously approved by Council, returning business and occupation (B&O) tax dollars borrowed for the 256th Street project. With this transfer, the full $2 million of B&O funding has been returned. The remaining amount not yet approved by Council is an overall increase of $567,900, including:  $250,000 for additional LEOFF 1 retiree claims  $54,000 for Kent Arts DIY  $263,900 for IT Services billed to outside agencies and offset by revenues received from those agencies. D. Ralph moved to recommend to Council adopt the ordinance amending the Capital Facilities Element of the Comprehensive Plan for the 2016-2021 Capital Improvement Plan. B. Boyce seconded the motion, which passed 3-0. 15. OCTOBER FINANCIAL REPORT. Mr. BeMiller provided some highlights that include:  $1.1 million for the transfer of excess B&O into the CIP fund which slightly changes numbers to end the year with an estimated fund balance of $15 million; from the general fund reserves after taking out the $1.1 million for contingency, the strategic opportunities and the amount that is restricted for annexation will leave about $11.5 million or 13.5 percent of actual expenditures  there is a reporting change to the general fund overview of revenues section that moves streamlined sales tax mitigation dollars out of the sales tax line and moved to the intergovernmental revenue line which is the appropriate accounting practice.  other funds overview of revenue and expenditures section shows LEOFF 1over budget expenses but will be fixed in the fourth quarter supplemental  there has been an adjustment to the original $188,500 in the Lodging tax but in a supplemental $150,000 was added for an overall $338,500. The meeting was adjourned at 4:57 p.m. by Les Thomas. J. Hays Jennifer Hays Operations Committee Secretary 5 This page intentionally left blank 6 PARKS, RECREATION AND COMMUNITY SERVICES Jeff Watling, Director Phone: 253-856-5100 Fax: 253-856-6050 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 TO: Operations Committee DATE: January 5, 2015 FROM: Jeff Watling, Director of Parks, Recreation and Community Services SUBJECT: Riverbend Restaurant Update MOTION: Informational only. SUMMARY: Jeff Watling and Arnold Shain, Consultant with Restaurant Group Inc., will provide an update on the recruitment and selection process that has been underway for a new restaurant tenant at the Riverbend Golf Complex. Through the selection process a preferred candidate has been identified. Jeff will provide an update to the Committee on the Lease Agreement negotiation process that is currently underway. It is anticipated that a final Lease Agreement will be coming to the Operations Committee for consideration/recommendation at the January 19 or February 2 meeting. EXHIBITS: BUDGET IMPACT: 7 This page intentionally left blank 8 2015 Budget 2015 YTD 2015 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) Revenues 86,360,018 82,591,942 89,895,600 3,535,582 4.1% Expenditures 87,228,127 76,662,389 86,912,761 315,366 0.4% Net Revenues Less Expenditures (868,109) 5,929,553 2,982,839 3,850,948 Beginning Fund Balance 11,312,140 11,312,140 11,312,140 Ending Fund Balance 10,444,031 17,241,693 14,294,979 Ending Fund Balance Detail: General Fund Reserves 7,307,931 10,879,979 8.4%12.5% Contingency for Unanticipated Costs 1,500,000 1,500,000 Strategic Opportunities Fund 425,000 425,000 Restricted for Annexation 1,211,100 1,490,000 Revenue Overview Expenditures Overview November 2015 Monthly Financial Report City of Kent, Washington General Fund Overview Summary Analysis through November show both revenues and expenditures ending the year favorable compared to budget, resulting in an overall favorable variance amount of over $3.8m. The current estimated ending fund balance reserves for 2015 calculates to 12.5% of estimated 2015 expenses and 12.4% of the 2016 proposed general fund expense of $87,552,060. Revenues are trending to end the year at $3.5m or 4.1% higher than budgeted. Most of the City's major revenue sources show favorable variances compared to budget, including sales tax ($1.5m). This is offset by unfavorable variances compared to budget for other taxes ($96k). Most departments are remaining fairly close to budget. The four departments experiencing the greatest favorable variances as a result of vacancies or underspending other line items are Human Resources, City Council, Economic & Community Development, and Public Works. 9 Revenue Categories 2015 Budget 2015 YTD 2015 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) Taxes: Property 21,807,268 21,851,719 22,034,900 227,632 1.0% Sales Tax 17,003,978 16,838,461 18,536,500 1,532,522 9.0% Utility 19,452,335 18,444,152 19,874,400 422,065 2.2% Business and Occupation Tax 6,572,190 5,468,822 6,876,100 303,910 4.6% Other 1,083,014 706,362 986,500 (96,514)-8.9% Licenses and Permits 3,894,278 3,858,067 4,159,200 264,922 6.8% Intergovernmental Revenue 7,431,869 6,079,506 7,665,000 233,131 3.1% Charges for Services 5,342,632 5,426,834 5,747,200 404,568 7.6% Fines and Forfeitures 1,565,961 1,578,267 1,466,800 (99,161)-6.3% Miscellaneous Revenue 1,285,374 1,561,712 1,628,000 342,626 26.7% Transfers In 921,119 778,039 921,120 1 0.0% Total Revenues 86,360,018 82,591,942 89,895,720 3,535,702 4.1% Variance Notes November 2015 Monthly Financial Report City of Kent, Washington General Fund Overview - Revenues Sales Tax: Continues a steady positive trend again this year. Year-end projection is expected to exceed budget by over $1.53m, which equates to 9.0%. Other Taxes: Estimated reduction of $96,000 due to the closure of a casino in the first quarter of this year. Miscellaneous Revenue: Continues a steady positive trend again this year. Year-end projection is expected to exceed budget by $342,000, which equates to 26.7%. Major positive contributors include interest income ($100k) and school resource officer revenues ($140k). 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 $500,000. 10 Prior Year Revenues Planned Revenues Actual Revenues January 4,806 4,608 5,234 February 4,758 5,055 4,537 March 6,340 6,866 6,375 April 11,990 13,937 15,434 May 7,286 7,157 6,025 June 5,755 5,934 5,793 July 4,853 4,821 6,619 August 4,375 4,349 4,702 September 5,753 6,198 6,462 October 13,369 14,412 15,775 November 4,800 6,177 5,636 December 6,824 6,845 0 Total 80,911 86,360 82,592 Prior Year Revenues Planned Revenues Actual Revenues January 1 0 0 February 153 162 167 March 872 607 718 April 7,185 8,143 8,857 May 2,408 2,142 1,667 June 200 109 110 July 61 44 25 August 70 92 87 September 429 421 573 October 8,124 8,083 8,564 November 978 1,823 1,084 December 217 181 0 Total 20,696 21,807 21,852 Prior Year Revenues Planned Revenues Actual Revenues January 1,273 1,260 1,435 February 1,666 1,668 1,817 March 1,250 1,172 1,414 April 1,191 1,179 1,408 May 1,449 1,402 1,493 June 1,400 1,228 1,333 July 1,449 1,359 1,456 August 1,615 1,474 1,681 September 1,509 1,458 1,605 October 1,474 1,451 1,478 November 1,648 1,581 1,718 December 1,838 1,771 0 Total 17,762 17,004 16,838 Sales Tax November 2015 Monthly Financial Report City of Kent, Washington General Fund Revenues ($ in Thousands) All Revenues Sources Property 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 15 Bud 14 Act 15 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 15 Bud 14 Act 15 Act $0 $5,000 $10,000 $15,000 $20,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 15 Bud 14 Act 15 Act 11 November 2015 Monthly Financial Report City of Kent, Washington General Fund Revenues ($ in Thousands) Prior Year Revenues Planned Revenues Actual Revenues January 2,078 2,059 2,343 February 1,709 1,648 1,578 March 1,608 1,595 1,560 April 1,934 1,954 1,909 May 1,464 1,486 1,459 June 1,264 1,406 1,393 July 1,826 1,776 1,886 August 1,371 1,350 1,513 September 1,292 1,560 1,518 October 1,779 1,596 1,834 November 1,326 1,403 1,451 December 1,585 1,620 0 Total 19,237 19,452 18,444 Prior Year Revenues Planned Revenues Actual Revenues January 2 99 11 February 20 0 18 March 66 210 103 April 462 1,816 1,784 May 55 549 77 June 36 220 52 July 133 924 1,790 August 58 401 115 September 26 212 77 October 120 821 1,893 November 53 417 254 December 379 1,986 0 Total 1,410 7,655 6,175 Prior Year Revenues Planned Revenues Actual Revenues January 1,452 1,652 1,444 February 1,210 1,217 957 March 2,543 1,586 2,579 April 1,218 1,508 1,477 May 1,911 2,049 1,329 June 2,855 2,049 2,905 July 1,385 1,677 1,461 August 1,261 1,529 1,305 September 2,496 1,591 2,690 October 1,872 2,066 2,006 November 795 1,132 1,129 December 2,805 2,386 0 Total 21,805 20,441 19,282 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 15 Bud 14 Act 15 Act $0 $2,000 $4,000 $6,000 $8,000 $10,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 15 Bud 14 Act 15 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 15 Bud 14 Act 15 Act 12 Department 2015 Budget 2015 YTD 2015 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) City Council 353,001 274,481 296,300 56,701 16.1% Mayor's Office/City Clerk 2,318,617 1,910,562 2,225,100 93,517 4.0% Economic & Community Dev 5,872,056 4,751,730 5,308,700 563,356 9.6% Finance 2,638,487 2,176,131 2,458,400 180,087 6.8% Fire Contracted Services 3,454,298 3,196,469 3,560,500 (106,202)-3.1% Human Resources 1,606,838 929,690 1,089,100 517,738 32.2% Information Technology 467,705 413,181 453,500 14,205 3.0% Law 1,262,302 1,091,063 1,242,900 19,402 1.5% Municipal Court 3,020,623 2,731,888 2,980,240 40,383 1.3% Parks, Recreation & Comm Svcs 16,224,254 14,145,761 15,851,740 372,514 2.3% Police 33,104,095 30,441,220 33,087,100 16,995 0.1% Public Works 5,526,170 4,437,819 4,979,500 546,670 9.9% Non-Departmental 11,379,681 10,162,394 13,379,681 (2,000,000) -17.6% Total Expenditures 87,228,127 76,662,389 86,912,761 315,366 0.4% Variance Notes November 2015 Monthly Financial Report City of Kent, Washington General Fund Overview - Expenditures City Council: The favorable variance of 16.1% is primarily based on professional services expense trends averaging $40k below budget. 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. Economic & Community Dev: The favorable variance of $563,000 is primarily due to vacancies ($320k) and expenses for professional services trending ($230k) below budget. Human Resources: The favorable variance of $517,000 is primarily due to vacancies ($210k) and a decrease to other professional services ($220k). Public Works: The favorable variance of $546,000 is primarily due to vacancies ($450k) as well as for other operating line items ($100k) below budget. Parks, Recreation & Comm Svcs: The favorable variance of $372,000 is primarily due to a decrease to other professional services ($140k) as well as other operating line items ($180k). Non-Departmental: Includes planned transfers of one time monies out of the general fund. 13 2013 2014 2015 2015 2015 Actual Actual Adj Budget YTD Est Actual Beginning Fund Balance 4,129,976 7,471,860 *11,312,140 11,312,140 11,312,140 Revenues Taxes: Property 20,125,761 20,696,272 21,807,268 21,851,719 22,034,900 Sales Tax 15,787,973 17,761,585 17,003,978 16,838,461 18,536,500 Utility 19,119,138 19,237,242 19,452,335 18,444,152 19,874,400 Business and Occupation Tax 299,907 303,600 6,572,190 5,468,822 6,876,100 Other 1,101,844 1,106,821 1,083,014 706,362 986,500 Licenses and Permits 3,688,807 4,357,060 3,894,278 3,858,067 4,159,200 Intergovernmental Revenue 7,462,288 7,515,935 7,431,869 6,079,506 7,665,000 Charges for Services 5,125,968 6,182,649 5,342,632 5,426,834 5,747,200 Fines and Forfeitures 1,493,381 1,284,798 1,565,961 1,578,267 1,466,800 Miscellaneous Revenue 1,300,392 1,533,392 1,285,374 1,561,712 1,628,000 Transfers In 1,036,877 931,217 921,119 778,039 921,000 Total Revenues 76,542,336 80,910,572 86,360,018 82,591,942 89,895,600 Expenditures City Council 290,156 293,125 353,001 274,481 296,300 Mayor's Office/City Clerk 2,252,478 1,927,073 2,318,617 1,910,562 2,225,100 Economic & Community Dev 5,132,560 5,251,662 5,872,056 4,751,730 5,308,700 Finance 2,066,623 2,363,613 2,638,487 2,176,131 2,458,400 Fire Contracted Services 3,365,890 3,422,675 3,454,298 3,196,469 3,560,500 Human Resources 1,063,471 1,167,331 1,606,838 929,690 1,089,100 Information Technology 253,021 349,002 467,705 413,181 453,500 Law 935,778 1,003,202 1,262,302 1,091,063 1,242,900 Municipal Court 2,781,005 2,849,954 3,020,623 2,731,888 2,980,240 Parks, Recreation & Comm Svcs 14,168,549 14,854,585 16,224,254 14,145,761 15,851,740 Police 30,353,335 31,263,200 33,104,095 30,441,220 33,087,100 Public Works 4,753,472 4,929,327 5,526,170 4,437,819 4,979,500 Non-Departmental 3,758,009 7,395,544 11,379,681 10,162,394 13,379,681 Total Expenditures 71,174,348 77,070,292 87,228,127 76,662,389 86,912,761 Net Revenues less Expenditures 5,367,988 3,840,280 (868,109)2,982,839 Ending Fund Balance 9,497,964 11,312,140 10,444,031 14,294,979 Ending Fund Balance Detail: General Fund Reserves 6,145,764 7,734,940 7,307,931 10,879,979 8.6% 10.0%8.4%12.5% 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 Restricted for Annexation 1,852,200 1,652,200 1,211,100 1,490,000 * 2014 beginning fund balance reduced by $2,026,000 to reflect the prior period adjustment required to properly record the repayment owed to the Utility Funds. November 2015 Monthly Financial Report City of Kent, Washington General Fund 14 2013 2014 2015 thru Nov thru Nov thru Nov Revenues Taxes: Property 19,971,491 20,479,673 21,851,719 1,372,046 6.7% Sales Tax 14,276,023 15,924,025 16,838,461 914,437 5.7% Utility 17,601,433 17,651,871 18,444,152 792,282 4.5% Business and Occupation Tax 300,000 303,600 5,468,822 5,165,222 1701.3% Other 806,473 727,366 706,362 (21,004) -2.9% Licenses and Permits 3,514,815 4,043,320 3,858,067 (185,253) -4.6% Intergovernmental Revenue 5,779,056 5,930,974 6,079,506 148,532 2.5% Charges for Services 4,735,490 5,691,721 5,426,834 (264,887) -4.7% Fines and Forfeitures 1,389,718 1,291,214 1,578,267 287,052 22.2% Miscellaneous Revenue 1,299,967 1,342,610 1,561,712 219,102 16.3% Transfers In 762,522 700,000 778,039 78,039 11.1% Total Revenues 70,436,987 74,086,373 82,591,942 8,505,568 11.5% Expenditures City Council 266,983 256,914 274,481 17,568 6.8% Mayor's Office/City Clerk 1,955,610 1,686,416 1,910,562 224,146 13.3% Economic & Community Dev 4,610,144 4,800,670 4,751,730 (48,941) -1.0% Finance 1,850,358 2,126,340 2,176,131 49,791 2.3% Fire Contracted Services 2,990,865 3,036,613 3,196,469 159,856 5.3% Human Resources 940,744 1,071,010 929,690 (141,320) -13.2% Information Technology 230,899 318,597 413,181 94,584 29.7% Law 853,523 832,026 1,091,063 259,037 31.1% Municipal Court 2,505,229 2,570,326 2,731,888 161,561 6.3% Parks, Recreation & Comm Svcs 12,682,817 13,183,870 14,145,761 961,891 7.3% Police 27,343,331 28,966,020 30,441,220 1,475,199 5.1% Public Works 4,151,660 4,451,034 4,437,819 (13,215) -0.3% Non-Departmental 3,081,695 3,240,229 10,162,394 6,922,165 213.6% Total Expenditures 63,463,857 66,540,066 76,662,389 10,122,323 15.2% The large 2014-15 variance in Business & Occupation Tax revenues is due to an accounting change. All B&O revenues will be booked into the General Fund and then transferred to cover expenditures per ordinance, which will simplify overall B&O reporting. General Fund 2014-15 Variance November 2015 Monthly Financial Report City of Kent, Washington Year-to-Year Month Comparison 15 2013 2014 2015 2015 2015 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 Operations Revenues 9,593,607 9,678,827 9,717,034 9,408,318 10,073,530 Expenditures 9,163,761 9,451,094 7,806,734 6,028,874 7,776,870 Net Revenues Less Expenditures 429,846 227,732 1,910,300 3,379,444 2,296,660 2015: Added 10.6% solid waste utility tax (+ $2.5m); consolidated B&O in General Fund (- $4.7m) Estimated actual revenues include $2.27m street operating revenues returned from LID funded projects LEOFF 1 Retiree Benefits Revenues 945,258 1,055,840 1,085,460 959,866 1,082,000 Expenditures 782,543 887,036 1,335,460 1,162,213 1,267,870 Net Revenues Less Expenditures 162,715 168,803 (250,000)(202,347)(185,870) Lodging Tax Revenues 217,703 249,581 208,145 256,032 279,310 Expenditures 119,436 71,441 338,500 121,381 127,230 Net Revenues Less Expenditures 98,266 178,140 (130,355)134,652 152,080 Youth/Teen Programs Revenues 894,305 888,250 907,028 837,743 913,900 Expenditures 823,426 898,524 932,000 776,587 913,260 Net Revenues Less Expenditures 70,879 (10,274)(24,972)61,156 640 Capital Resources Revenues 14,223,132 16,082,908 14,699,231 15,759,170 17,191,820 Expenditures 10,567,405 11,955,720 11,144,332 3,119,775 11,037,190 Net Revenues Less Expenditures 3,655,727 4,127,188 3,554,899 12,639,395 6,154,630 Criminal Justice Revenues 2,270,987 2,384,593 2,317,405 2,472,810 2,697,610 Expenditures 1,863,620 2,458,933 2,600,826 1,995,983 2,189,750 Net Revenues Less Expenditures 407,367 (74,340)(283,421)476,827 507,860 ShoWare Operating Revenues 751,405 3,456,124 959,325 699,291 762,860 Expenditures 471,684 980,046 528,003 487,495 523,810 Net Revenues Less Expenditures 279,721 2,476,077 431,322 211,796 239,050 2015: Estimated actual revenues include $258k of admissions tax and $500k subsidy from the General Fund to cover estimated expenditures. Water Utility Revenues 19,332,623 20,948,199 18,827,192 18,881,739 21,000,870 Expenditures 17,018,210 15,890,786 18,932,058 15,324,516 18,117,650 Net Revenues Less Expenditures 2,314,413 5,057,413 (104,866)3,557,223 2,883,220 Sewer/Drainage Utility Revenues 44,310,390 46,608,123 45,479,299 44,669,710 47,330,590 Expenditures 45,704,519 43,535,541 47,432,885 43,660,353 45,629,470 Net Revenues Less Expenditures (1,394,129)3,072,581 (1,953,586)1,009,356 1,701,120 Special Revenue Funds Enterprise Funds November 2015 Monthly Financial Report Other Funds Overview (Revenues and Expenditures) City of Kent, Washington 16 2013 2014 2015 2015 2015 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. November 2015 Monthly Financial Report Other Funds Overview (Revenues and Expenditures) City of Kent, Washington Golf Complex Revenues 2,409,232 2,453,544 2,673,936 2,509,231 2,550,000 Expenditures 2,668,103 2,657,222 3,044,022 2,616,271 2,860,000 Net Revenues Less Expenditures (258,871)(203,678)(370,086)(107,041)(310,000) Fleet Services Revenues 3,973,663 4,446,115 4,448,514 4,184,284 4,564,670 Expenditures 3,395,723 3,955,111 5,107,202 2,890,862 3,653,670 Net Revenues Less Expenditures 577,940 491,003 (658,688)1,293,422 911,000 Central Services Revenues 422,740 356,338 422,324 343,825 375,080 Expenditures 341,578 336,633 401,744 334,910 365,360 Net Revenues Less Expenditures 81,162 19,704 20,580 8,915 9,720 Information Technology Revenues 6,337,175 6,878,827 7,015,985 6,497,686 7,088,380 Expenditures 5,792,205 6,130,328 7,402,896 6,249,651 6,817,800 Net Revenues Less Expenditures 544,970 748,499 (386,911)248,035 270,580 Facilities Revenues 4,905,684 5,096,650 5,295,397 4,900,379 5,345,860 Expenditures 4,586,962 4,673,883 5,910,632 5,049,279 5,508,300 Net Revenues Less Expenditures 318,722 422,768 (615,235)(148,900)(162,440) Unemployment Revenues 378,487 380,356 402,724 366,045 398,690 Expenditures 186,813 112,106 401,396 95,900 98,890 Net Revenues Less Expenditures 191,674 268,250 1,328 270,145 299,800 Workers Compensation Revenues 1,508,564 1,506,197 1,023,800 1,010,993 1,102,900 Expenditures 821,107 726,688 1,494,351 1,320,569 1,440,620 Net Revenues Less Expenditures 687,457 779,509 (470,551)(309,576)(337,720) 2015: Revenues reflect 2015-16 rate reduction, with GF savings going to the CR Fund to reduce the deficit. Employee Health & Wellness Revenues 10,950,327 9,626,446 10,279,224 9,596,423 10,468,820 Expenditures 9,796,568 9,809,909 11,453,024 9,726,849 11,172,650 Net Revenues Less Expenditures 1,153,759 (183,463)(1,173,800)(130,426)(703,830) Liability Insurance Revenues 2,346,418 543,969 1,136,000 1,041,059 1,135,700 Expenditures 1,030,374 1,543,321 1,888,265 1,806,999 1,874,900 Net Revenues Less Expenditures 1,316,043 (999,353)(752,265)(765,939)(739,200) 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 562,508 568,107 582,900 534,361 582,950 Expenditures 526,864 508,423 577,729 697,802 526,170 Net Revenues Less Expenditures 35,644 59,684 5,171 (163,441)56,780 Internal Service Funds 17 2013 2014 2015 thru Nov thru Nov thru Nov Operating revenues and expenditures only, capital is excluded. Street Operations Revenues 7,802,570 8,406,897 9,408,318 1,001,421 11.9% Expenditures 5,378,964 7,921,866 6,028,874 (1,892,992)-23.9% Net Revenues Less Expenditures 2,423,606 485,031 3,379,444 LEOFF 1 Retiree Benefits Revenues 933,667 680,187 959,866 279,680 41.1% Expenditures 672,626 780,620 1,162,213 381,593 48.9% Net Revenues Less Expenditures 261,042 (100,433)(202,347) Expenditures: Claims nearly $360k higher through November Lodging Tax Revenues 198,773 226,981 256,032 29,051 12.8% Expenditures 123,500 71,341 121,381 50,040 70.1% Net Revenues Less Expenditures 75,273 155,640 134,652 Expenditures: 2013 includes $40k for South Sound Visitors Service and $35k for Love on Ice commercial Youth/Teen Programs Revenues 817,994 804,770 837,743 32,973 4.1% Expenditures 637,522 700,000 776,587 76,587 10.9% Net Revenues Less Expenditures 180,472 104,770 61,156 Capital Resources Revenues 12,677,363 13,092,140 15,759,170 2,667,030 20.4% Expenditures 3,865,786 3,913,174 3,119,775 (793,399)-20.3% Net Revenues Less Expenditures 8,811,577 9,178,965 12,639,395 Revenues: REET $3.3m higher than 2014 including $900k in State REET; Sales Tax $330k higher than 2014 Criminal Justice Revenues 2,064,816 2,187,270 2,472,810 285,540 13.1% Expenditures 1,715,774 2,247,936 1,995,983 (251,953)-11.2% Net Revenues Less Expenditures 349,041 (60,666)476,827 ShoWare Operating Revenues 629,241 139,171 699,291 560,120 402.5% Expenditures 355,059 942,309 487,495 (454,814)-48.3% Net Revenues Less Expenditures 274,182 (803,138)211,796 Water Utility Revenues 17,427,790 18,802,893 18,881,739 78,846 0.4% Expenditures 15,636,727 16,264,813 15,324,516 (940,297)-5.8% Net Revenues Less Expenditures 1,791,063 2,538,080 3,557,223 Sewer/Drainage Utility Revenues 39,529,849 45,350,757 44,669,710 (681,047)-1.5% Expenditures 39,581,554 38,874,227 43,660,353 4,786,126 12.3% Net Revenues Less Expenditures (51,705)6,476,530 1,009,356 Golf Complex Revenues 2,288,913 2,324,001 2,509,231 185,230 8.0% Expenditures 2,549,790 2,500,488 2,616,271 115,784 4.6% Net Revenues Less Expenditures (260,877)(176,487)(107,041) 2014-15 Variance Year-to-Year Month Comparison November 2015 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Special Revenue Funds Enterprise Funds 18 2013 2014 2015 thru Nov thru Nov thru Nov Operating revenues and expenditures only, capital is excluded. 2014-15 Variance Year-to-Year Month Comparison November 2015 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Fleet Services Revenues 3,692,975 4,040,151 4,184,284 144,133 3.6% Expenditures 3,092,837 3,106,952 2,890,862 (216,090)-7.0% Net Revenues Less Expenditures 600,138 933,199 1,293,422 Central Services Revenues 392,111 324,071 343,825 19,754 6.1% Expenditures 309,676 290,250 334,910 44,660 15.4% Net Revenues Less Expenditures 82,435 33,821 8,915 Information Technology Revenues 5,539,687 6,260,656 6,497,686 237,030 3.8% Expenditures 5,298,105 5,680,868 6,249,651 568,784 10.0% Net Revenues Less Expenditures 241,582 579,789 248,035 Facilities Revenues 4,496,483 4,671,894 4,900,379 228,485 4.9% Expenditures 4,021,933 4,232,932 5,049,279 816,347 19.3% Net Revenues Less Expenditures 474,550 438,962 (148,900) Unemployment Revenues 346,849 347,474 366,045 18,571 5.3% Expenditures 148,378 109,570 95,900 (13,670)-12.5% Net Revenues Less Expenditures 198,472 237,904 270,145 Workers Compensation Revenues 1,387,480 1,383,114 1,010,993 (372,121)-26.9% Expenditures 754,159 662,119 1,320,569 658,450 99.4% Net Revenues Less Expenditures 633,321 720,995 (309,576) Employee Health & Wellness Revenues 10,061,862 9,103,383 9,596,423 493,040 5.4% Expenditures 8,929,039 8,661,269 9,726,849 1,065,579 12.3% Net Revenues Less Expenditures 1,132,823 442,114 (130,426) Liability Insurance Revenues 2,150,872 1,827,870 1,041,059 (786,811)-43.0% Expenditures 1,355,464 1,125,032 1,806,999 681,966 60.6% Net Revenues Less Expenditures 795,408 702,838 (765,939) Property Insurance Revenues 515,636 520,767 534,361 13,594 2.6% Expenditures 775,771 750,515 697,802 (52,713)-7.0% Net Revenues Less Expenditures (260,134)(229,748)(163,441) Internal Service Funds 19 This page intentionally left blank 20 Kent Council Operations Committee Consolidating Budget Adjustment FINANCE Aaron BeMiller, Director Phone: 253-856-5260 Fax: 253-856-6255 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: January 5, 2016 TO: Kent City Council Operations Committee FROM: Aaron BeMiller, Finance Director SUBJECT: Director’s Report MOTION: No motion: Non-action item SUMMARY: The Finance Director will report out financial or operational item(s). BUDGET IMPACT: BACKGROUND: 21