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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 08/16/2016 (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 August 16, 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 7/16/2016 thru 7/31/2016 YES Chair Ralph 2 5. Approval of Meeting Minutes Dated August 2, 2016 YES Chair Ralph 2 1 6. Storm Vegetation Utility Job-share Positions - Recommend YES Bill Thomas Garin Lee 5 5 7. Non Represented Salary Survey – Resolution – Recommend YES Leialani Jensen 15 7 8. June Financial Report – Information Only NO Aaron BeMiller 5 15 This page intentionally left blank OPERATIONS COMMITTEE MINUTES August 2, 2016 Committee Members Present: Les Thomas; Bill Boyce; and Dana Ralph, Chair The meeting was called to order by Dana Ralph at 4:01 p.m. 1. ROLL CALL. 2. CHANGES TO THE AGENDA. Because both Committee Chair Ralph and Committee Member Boyce had heard the Water and Sewer Rates Ordinance at the Public Works Committee on Monday, August 1, it was decided to remove it from the agenda. 3. APPROVAL OF THE CHECK SUMMARY REPORT DATED 6/16/2016 THRU 6/30/2016 AND 7/1/2016 THRU 7/15/2016. L. Thomas moved to approve the check summary report dated 6/16/16 through 6/30/16 and 7/1/2016 thru 7/15/2016. D. Ralph seconded the motion, which passed 2-0. 4. APPROVAL OF MINUTES DATED JULY 5, 2016. L. Thomas moved to approve the Operations Committee minutes dated July 5, 2016. D. Ralph seconded the motion, which passed 2-0. 5. CONSOLIDATING BUDGET ADJUSTMENT ORDINANCE FOR ADJUSTMENTS BETWEEN APRIL 1, 2016 AND JUNE 30, 2016 – RECOMMEND. Finance Deputy Director Barbara Lopez requested to approve the technical gross budget adjustment ordinance reflecting an overall budget increase of $6,791,110. Of that amount, adjustments totaling $6,408,110 have been approved by Council or under the provisions of KCC 3.70 – Public Contracting and Procurement, including:  $2,354,040 to recognize grants awarded for 72nd Avenue, Salmon Recovery and the Lake Meridian Dock.  $2,519,420 for 72nd Avenue Extension.  $759,970 for the Pine Tree Park settlement.  $591,350 to implement the wage provisions of the KPOA agreement. The remaining amount not yet approved by Council is an overall increase of $383,000, including:  $300,000 to establish a budget for initial planning of the light rail stations to be constructed within Kent.  $83,000 to expand the marketing budget paid from hotel/motel tax, per action taken by the Lodging Tax Advisory Board. 1 Operations Committee Minutes August 2, 2016 Page: 2 These expenditures are funded by grants, existing fund balance, or other new revenues. L. Thomas moved to recommend Council approve the consolidating budget adjustment ordinance for adjustments made between April 1, 2016 and June 30, 2016 reflecting an overall budget increase of $6,791,110 . D. Ralph seconded the motion, which passed 2-0. 6. MAY FINANCIAL REPORT – INFORMATION ONLY. Finance Director Aaron BeMiller announced that overall the City is doing just fine and analysis through May shows both revenue and expenditures ending the year favorable compared to budget, creating an overall favorable variance amount of nearly $3.4 million. Current estimated ending fund balance reserves for 2016 calculates to 16.9 percent of estimated 2016 expenses. The following highlights were reported: Revenues are estimated to end the year at $2.5 million or 2.9 percent higher than budgeted. Most of the City’s major revenue sources show favorable variances compared to budget, including sales tax ($709k), licenses and permits ($306k), and miscellaneous revenues ($343k). This is offset by unfavorable variances compared to budget for other taxes ($179k), and fines and forfeitures ($144k). Business and Occupation1 (B&O) taxes are conservatively estimated to end the year nearly $860,000 over budget, due to onboarding and collection efforts of the expanded B&O team. Expenditures for all departments are remaining fairly close to budget. 7. DIRECTOR’S REPORT – INFORMATION ONLY. Mr. BeMiller and Senior Financial Analyst Joe Bartlemay updated members on two items:  Mr. BeMiller noted that in the May 2016 financial report, page 47, the 2014 beginning fund balance was reduced by $2,026,000 to reflect the prior period adjustment required to properly record the repayment owed to the Utility Funds;  Mr. Bartlemay discussed the Finance Department’s Accounts Payable use of U.S. Bank’s vendor payment option called Payment Plus, a free service to the City. City vendor’s can choose to participate; there are about 70 vendors signed up to date. 8. 2ND QUARTERLY PROCUREMENT REPORT – INFORMATION ONLY. Chief Administrative Officer (CAO) Derek Matheson highlighted three updates to the second quarterly procurement report:  As previously requested by Committee Members, quarter one was left on the report,  three contracts were reported as having Approval Authority by a Department Director. After review and confirmation it was determined that Mayor Cooke actually approved these contracts, and  CAO Matheson approved one contract for LED lights and digital menu boards for the ShoWare Center, the first ShoWare expenditure to appear on this report. 2 Operations Committee Minutes August 2, 2016 Page: 3 The meeting was adjourned at 4:22 p.m. by D. Ralph. J. Hays Jennifer Hays Operations Committee Secretary 3 This page intentionally left blank 4 PUBLIC WORKS DEPARTMENT Timothy J. LaPorte P.E., Director Phone: 253-856-5500 Fax: 253-856-6500 Address: 220 Fourth Avenue S. Kent, WA 98032-5895 DATE: August 16, 2016 TO: Operations Committee FROM: Bill Thomas, Street Superintendent, Garin Lee, Co-Interim Parks Director SUBJECT: Storm Vegetation Utility Job-share Positions - Recommend SUMMARY: Staff is requesting approval of four .25 storm vegetation positions. Parks Maintenance was approved to hire four .75 personnel in the 2014/2015 biennial budget. Due to rules governing the Affordable Health Care Act and Public Employees Retirement program, these approved positions have gone unfilled. Public Works and the Parks Departments have an opportunity to job-share these FTE’s.  Parks Operations schedule will be March through November.  Public Works Storm Vegetation will be December through February. During the months of December through February, the four Parks personnel will move to storm vegetation and work at various drainage sites. Currently, existing personnel can mow and line-trim over 450 storm ponds once per year. Some ponds are attended to more often because of the proximity to high visibility areas. The maintenance performed does not allow enough time for full cleaning of most ponds. With the additional personnel, these ponds will have small saplings removed, as well as debris removal from inlets and outlets. Work areas will include sapling and tree removal in storm detention/retention ponds; ditch debris removal; wetland maintenance (over 700 acres); and flood fights assistance. EXHIBITS: None BUDGET IMPACT: $80,000 Annually - Public Works Drainage Utility Fund MOTION: Recommend Council approve funding four .25 storm vegetation utility positions in the current Public Works Drainage Utility Fund budget. 5 This page intentionally left blank 6 Human Resources Department Marty Fisher, Director Phone: 253-856-5276 Fax: 253-856-6270 Address: 400 West Gowe Street Kent, WA. 98032-5895 DATE: August 16, 2016 TO: Operations Committee FROM: Leialani Jensen, Labor Relations Manager SUBJECT: Non Represented Salary Survey – Resolution – Recommend MOTION: Recommend council adopt the resolution authorizing a salary survey for non-represented employees. SUMMARY: The City currently is in need of a compensation review for non- represented positions due in large part to the time lapse since the previous survey (2006) and the increasingly competitive labor market for specialty classifications (e.g. engineering and design), technical classifications (e.g. information technology), and key management positions. In order to provide quality service to the public and carry out the City’s overall strategic plan effectively and efficiently, Kent must attract and retain highly qualified, competent and innovative people for its workforce. Employees are one of the City’s most valuable assets and conducting this survey will help us recruit top talent and retain the talent the City already has. Conducting this survey and authorizing any resulting market adjustments will also improve employee morale and engagement. The Human Resources Department proposes that a salary survey be conducted using a three-phase approach beginning in fall of 2016 with line level (professional/administrative) positions and ending in summer 2017 with the executive level positions. The Human Resources Department intends to utilize existing staff (3 FTE’s) to conduct the survey, which results in no additional cost to the City. To assist the Labor, Class and Comp (LCC) staff with some of the initial work in the phases and in the appeals process stage, a delegate from each department has been chosen to be part of a task force and each will be given duties/deadlines to carry out to meet the timelines of this project. For this survey, LCC staff will be comparing current base salary (plus longevity when applicable) of benchmark positions (minus health care cost of employee with 7 full family) with the market average of like positions of the comparable cities. If the market average is higher than in Kent, staff will recommend an upward adjustment to achieve the average. If the market average is lower than in Kent, no market adjustment will be recommended A majority of the cities utilized by HR as comparables will be those cities utilized as comparables for Kent’s various bargaining units. However, in order to obtain the most reliable comparable data, and due to changing demographics and the unique kinds of work conducted by many non-represented employees, HR may select some cities that were not utilized as bargaining unit comparables. The survey findings will be part of the notification that is sent to the incumbents who are assigned to each position, and they will be given a 30 day deadline to appeal the findings. Appeals will be reviewed by the task force, with hearings conducted by the Chief Administrative Officer. At the closing of the project the total cost to implement market adjustment findings will be calculated by the LCC team and delivered to the administration for consideration. As the above explanation reflects, this procedure is complex, with extensive review of job descriptions within both Kent and comparable cities, close examination of salary and benefit levels, and detailed analysis of all the data gathered. As a result, and with a desire to assist the city’s policymakers, this resolution includes a condition that the City Council approve or disapprove the results of this survey as a complete package, restricting the council’s ability to adjust any individual position salaries BUDGET IMPACT: For the purpose of proposing a cost estimate, the City gathered cost information on benchmark positions using the 2016 AWC Survey and Milliman Puget Sound Public Agency survey results in three job classification family categories; phase 1-professional/technical positions; phase 2 – mid-management level positions; phase 3 – executive positions. If the survey is approved to be conducted, it is estimated that the final cost for market adjustment of non- represented positions in the City will be as follows: EXHIBITS: Resolution Phase 1 Estimated Cost 343,454.00$ Phase 2 Estimated Cost 157,733.00$ Phase 3 Estimated Cost 25,776.00$ 526,963.00$ Social Sec/DRS/Medicare x18% 621,816.34$ 8 1 2016 -2017 Salary Survey - Resolution RESOLUTION NO. ___________ A RESOLUTION of the City Council of the city of Kent, Washington, authorizing a salary survey for non-represented employees. RECITALS A. It has been a nearly a decade since the City conducted a salary survey for its non-represented employees. B. The City currently is in need of a compensation review for non- represented positions due in large part to the time lapse since the previous survey and the increasingly competitive labor market for specialty classifications (e.g. engineering and design), technical classifications (e.g. information technology), and key management positions. C. In order to provide quality service to the public and carry out the City’s overall strategic plan effectively and efficiently, Kent must attract and retain highly qualified, competent and innovative people for its workforce. Employees are one of the City’s most valuable assets and conducting this survey will help us recruit top talent and retain the talent the City already has. Conducting this survey and authorizing any resulting market adjustments will also improve employee morale and engagement. D. The survey will assess key benchmark positions against the average of selected comparable cities. This will provide non-represented positions with the same level of salary review as compared to represented employees. 9 2 2016 -2017 Salary Survey - Resolution E. The Human Resources Department (HR) proposes that a salary survey be conducted using a three-phase approach beginning in the fall of 2016. First, HR will survey line level (professional/administrative) positions; next, it will survey mid-management positions; and finally, top management positions will be surveyed. HR intends to complete this process in the summer 2017. F. A majority of the cities utilized by HR as comparables will be those cities utilized as comparables for Kent’s various bargaining units. However, in order to obtain the most reliable comparable data, and due to changing demographics and the unique kinds of work conducted by many non-represented employees, HR may select some cities that were not utilized as bargaining unit comparables. G. HR intends to utilize existing staff in its Labor, Class and Compensation division (LCC) to conduct the survey, which results in no additional cost to the City. H. To assist HR staff with some of the initial work and with employee appeals, a delegate from each department will be part of a task force that will assist LCC in completing this project. I. For this survey, LCC staff will be comparing current base salary (plus longevity when applicable) of benchmark positions (minus health care cost of employee with full family) with the market average of like positions of the comparable cities. If the market average is higher than in Kent, staff will recommend an upward adjustment to achieve the average. If the market average is lower than in Kent, no market adjustment will be recommended. J. Relying primarily on a survey conducted by the Association of Washington Cities and secondarily on the 2016 Washington Public Employers Salary Survey for Puget Sound Region cities conducted by the Milliman 10 3 2016 -2017 Salary Survey - Resolution company, a national provider of actuarial salary survey services, it is estimated that the final cost for market adjustments to non-represented positions will be as follows: Phase 1 Estimated Cost 343,454.00$ Phase 2 Estimated Cost 157,733.00$ Phase 3 Estimated Cost 25,776.00$ 526,963.00$ Social Sec/DRS/Medicare x18% 621,816.34$ K. As the above explanation reflects, this procedure is complex, with extensive review of job descriptions within both Kent and comparable cities, close examination of salary and benefit levels, and detailed analysis of all the data gathered. As a result, and with a desire to assist the city’s policymakers, this resolution includes a condition that the City Council approve or disapprove the results of this survey as a complete package, restricting the council’s ability to adjust any individual position salaries. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON DOES HEREBY RESOLVE AS FOLLOWS: RESOLUTION SECTION 1. – Recitals Incorporated. The foregoing recitals are incorporated into this resolution and shall further act as the findings of the Kent City Council on this matter. SECTION 2. – The Kent City Council approves and authorizes conducting the three-phased salary survey for non-represented city employees as generally described in this resolution. The Council further authorizes HR to select an appropriate group of comparable cities for non- represented salary comparisons. Last, the Council, by approving this resolution, confirms that it will approve or disapprove the staff’s recommended salary adjustments at the conclusion of this process as a 11 4 2016 -2017 Salary Survey - Resolution complete set of adjustments for all non-represented positions, eliminating Council’s ability to adjust any of the individual position recommendations within the set of recommended adjustments. SECTION 3. – Severability. If any one or more section, subsection, or sentence of this resolution is held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this resolution and the same shall remain in full force and effect. SECTION 4. – Corrections by City Clerk. Upon approval of the city attorney, the city clerk is authorized to make necessary corrections to this resolution, including the correction of clerical errors; resolution, section, or subsection numbering; or references to other local, state, or federal laws, codes, rules, or regulations. SECTION 5. – Effective Date. This resolution shall take effect and be in force immediately upon its passage. SUZETTE COOKE, MAYOR ATTEST: SUE HANSON, INTERIM CITY CLERK APPROVED AS TO FORM: TOM BRUBAKER, CITY ATTORNEY 12 5 2016 -2017 Salary Survey - Resolution PASSED: day of , 2016. APPROVED: day of , 2016. PUBLISHED: day of , 2016. I hereby certify that this is a true copy of Resolution No. passed by the City Council of the City of Kent, Washington, and approved by the Mayor of the City of Kent as hereon indicated. (SEAL) SUE HANSON, INTERIM CITY CLERK P:\Civil\Resolution\Salary Survey.doc 13 This page intentionally left blank 14 FINANCE Aaron BeMiller, Director Phone: 253-856-5260 Fax: 253-856-6255 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: August 16, 2016 TO: Operations Committee FROM: Aaron BeMiller, Finance Director SUBJECT: June Financial Report – Information Only MOTION: Information Only SUMMARY: The Finance Director will report on the June 2016 financial report. BUDGET IMPACT: BACKGROUND: 15 2016 Adj Budget 2016 YTD 2016 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) Revenues 87,662,060 44,781,438 90,427,290 2,765,230 3.2% Expenditures 89,155,760 37,323,106 88,200,090 955,670 1.1% Net Revenues Less Expenditures (1,493,700) 7,458,332 2,227,200 3,720,900 Beginning Fund Balance 15,372,499 15,372,499 15,372,499 Ending Fund Balance 13,878,799 22,830,831 17,599,699 Ending Fund Balance Detail: General Fund Reserves 11,036,189 14,711,599 12.4%16.7% Contingency for Unanticipated Costs 1,500,000 1,500,000 Strategic Opportunities Fund 425,000 425,000 Restricted for Annexation 917,610 963,100 Revenue Overview Expenditures Overview June 2016 Monthly Financial Report City of Kent, Washington General Fund Overview Summary Analysis through June show both revenues and expenditures ending the year favorable compared to budget, creating an overall positive variance amount of nearly $3.7m. The current estimated ending fund balance reserves for 2016 calculates to 16.6% of estimated 2016 expenses. Revenues are estimated to end the year at nearly $2.8m or 3.2% higher than budgeted. Most of the City's major revenue sources show positive variances compared to budget, including sales tax ($560k), licenses and permits ($196k), and B&O ($1m). This is offset by unfavorable variances compared to budget for other taxes ($181k) and forfeitures ($67k). Through June, all departments are remaining fairly close to budget. Any significant variances are discussed on the following pages. 16 Revenue Categories 2016 Adj Budget 2016 YTD 2016 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) Taxes: Property 22,210,230 11,855,794 22,340,800 130,570 0.6% Sales & Use 18,633,990 9,555,397 19,194,800 560,810 3.0% Utility 18,140,150 9,863,385 18,355,200 215,050 1.2% Business & Occupation 6,500,000 2,115,441 7,500,000 1,000,000 15.4% Other 1,100,100 287,000 918,900 (181,200) -16.5% Licenses and Permits 5,139,120 2,668,097 5,335,400 196,280 3.8% Intergovernmental Revenue 7,419,970 4,076,772 7,852,600 432,630 5.8% Charges for Services 4,627,290 2,757,619 4,785,600 158,310 3.4% Fines and Forfeitures 1,565,970 774,273 1,498,800 (67,170)-4.3% Miscellaneous Revenue 1,393,650 827,660 1,713,600 319,950 23.0% Transfers In 931,590 - 931,590 - Total Revenues 87,662,060 44,781,438 90,427,290 2,765,230 3.2% Variance Notes June 2016 Monthly Financial Report City of Kent, Washington General Fund Overview - Revenues Other Taxes: Estimated reduction of $180,000 due to the closure of a casino in the first quarter of 2015. The 2016 budget was 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 just over $300k, which equates to 23%. B&O Taxes: Conservatively estimated to end the year at least $1m over budget, due to onboarding and collection efforts of the expanded B&O team. 17 Prior Year Revenues Budgeted Revenues Actual Revenues January 5,234 4,899 4,829 February 4,537 5,263 5,138 March 6,375 7,118 6,546 April 15,434 14,001 16,091 May 6,025 6,815 6,600 June 5,793 6,138 5,578 July 6,619 5,508 0 August 4,702 4,683 0 September 6,462 6,411 0 October 15,775 14,340 0 November 5,636 5,753 0 December 8,678 6,731 0 Total 91,270 87,662 44,781 Prior Year Revenues Budgeted Revenues Actual Revenues January 0 0 0 February 167 173 199 March 718 678 719 April 8,857 8,468 9,550 May 1,667 2,163 1,305 June 110 125 83 July 25 36 0 August 87 94 0 September 573 483 0 October 8,564 8,452 0 November 1,084 1,362 0 December 164 177 0 Total 22,016 22,210 11,856 Prior Year Revenues Budgeted Revenues Actual Revenues January 1,435 1,429 1,461 February 1,817 1,867 2,026 March 1,414 1,347 1,519 April 1,408 1,335 1,575 May 1,493 1,539 1,739 June 1,333 1,363 1,236 July 1,456 1,542 0 August 1,681 1,674 0 September 1,605 1,581 0 October 1,478 1,553 0 November 1,718 1,696 0 December 1,745 1,708 0 Total 18,583 18,634 9,555 Sales Tax June 2016 Monthly Financial Report City of Kent, Washington General Fund Revenues ($ 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 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 $20,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 16 Bud 15 Act 16 Act 18 June 2016 Monthly Financial Report City of Kent, Washington General Fund Revenues ($ 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 0 August 1,513 1,283 0 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 9,863 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 0 August 115 200 0 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 2,402 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 0 August 1,305 1,319 0 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 11,104 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 19 Department 2016 Adj Budget 2016 YTD 2016 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) City Council 351,780 155,104 321,700 30,080 8.6% Mayor's Office/City Clerk 2,415,270 1,160,733 2,304,400 110,870 4.6% Economic & Community Dev 6,026,570 2,680,962 5,932,700 93,870 1.6% Finance 2,644,570 1,341,712 2,663,480 (18,910)-0.7% Fire Contracted Services 3,537,380 1,761,326 3,550,900 (13,520)-0.4% Human Resources 2,133,970 758,659 1,837,500 296,470 13.9% Information Technology 480,010 257,195 512,800 (32,790)-6.8% Law 1,464,870 721,562 1,459,400 5,470 0.4% Municipal Court 3,042,040 1,525,021 3,047,200 (5,160)-0.2% Parks, Recreation & Comm Svcs 16,888,500 7,696,005 16,594,900 293,600 1.7% Police 34,941,870 16,975,698 34,755,800 186,070 0.5% Public Works 1,436,120 792,433 1,426,500 9,620 0.7% Non-Departmental 13,792,810 1,496,695 13,792,810 Total Expenditures 89,155,760 37,323,106 88,200,090 955,670 1.1% Variance Notes June 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. 20 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 11,855,794 22,340,800 Sales & Use 17,761,585 18,583,057 18,633,990 9,555,397 19,194,800 Utility 17,775,687 18,151,853 18,140,150 9,863,385 18,355,200 Business & Occupation 303,600 7,655,281 6,500,000 2,115,441 7,500,000 Other 1,106,821 1,023,500 1,100,100 287,000 918,900 Licenses and Permits 5,818,615 5,827,474 5,139,120 2,668,097 5,335,400 Intergovernmental Revenue 7,515,935 7,783,935 7,419,970 4,076,772 7,852,600 Charges for Services 6,182,649 5,814,133 4,627,290 2,757,619 4,785,600 Fines and Forfeitures 1,284,798 1,660,366 1,565,970 774,273 1,498,800 Miscellaneous Revenue 1,533,392 1,756,485 1,393,650 827,660 1,713,600 Transfers In 931,217 996,921 931,590 - 931,590 Total Revenues 80,910,572 91,268,530 87,662,060 44,781,438 90,427,290 Expenditures City Council 293,125 298,884 351,780 155,104 321,700 Mayor's Office/City Clerk 1,927,073 2,211,861 2,415,270 1,160,733 2,304,400 Economic & Community Dev 5,251,662 5,345,212 6,026,570 2,680,962 5,932,700 Finance 2,363,613 2,419,039 2,644,570 1,341,712 2,663,480 Fire Contracted Services 3,422,675 3,513,988 3,537,380 1,761,326 3,550,900 Human Resources 1,167,331 1,039,875 2,133,970 758,659 1,837,500 Information Technology 349,002 456,328 480,010 257,195 512,800 Law 1,003,202 1,198,769 1,464,870 721,562 1,459,400 Municipal Court 2,849,954 2,988,951 3,042,040 1,525,021 3,047,200 Parks, Recreation & Comm Svcs 14,854,585 15,897,126 16,888,500 7,696,005 16,594,900 Police 31,263,200 32,992,234 34,941,870 16,975,698 34,755,800 Public Works 4,929,327 4,896,300 1,436,120 792,433 1,426,500 Non-Departmental 7,395,544 13,950,543 13,792,810 1,496,695 13,792,810 Total Expenditures 77,070,292 87,209,110 89,155,760 37,323,106 88,200,090 Net Revenues less Expenditures 3,840,280 4,059,420 (1,493,700)2,227,200 Ending Fund Balance 11,312,140 15,371,559 13,878,799 17,599,699 Ending Fund Balance Detail: General Fund Reserves 8,159,940 11,748,219 11,036,189 14,711,599 9.4%13.2% 12.4%16.7% 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 1,698,340 917,610 963,100 * 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. June 2016 Monthly Financial Report City of Kent, Washington General Fund 21 2014 2015 2016 % of thru June thru June thru June Budget Revenues Taxes: Property 10,818,278 11,519,400 11,855,794 336,394 2.9% 53.4% Sales & Use 8,228,935 8,900,565 9,555,397 654,832 7.4% 51.3% Utility 10,058,185 10,241,269 9,863,385 (377,884) -3.7% 54.4% Business & Occupation 300,000 1,742,502 2,115,441 372,938 21.4% 32.5% Other 340,695 302,576 287,000 (15,576) -5.1% 26.1% Licenses and Permits 2,666,512 2,267,780 2,668,097 400,317 17.7% 51.9% Intergovernmental Revenue 3,815,977 3,830,852 4,076,772 245,920 6.4% 54.9% Charges for Services 3,342,587 2,897,641 2,757,619 (140,022) -4.8% 59.6% Fines and Forfeitures 677,977 894,684 774,273 (120,411) -13.5% 49.4% Miscellaneous Revenue 687,091 800,303 827,660 27,358 3.4% 59.4% Transfers In - - - - Total Revenues 40,936,237 43,397,572 44,781,438 1,383,866 3.2% 51.1% Expenditures City Council 144,011 151,722 155,104 3,382 2.2% 44.1% Mayor's Office/City Clerk 965,064 1,112,837 1,160,733 47,896 4.3% 48.1% Economic & Community Dev 2,538,648 2,555,596 2,680,962 125,366 4.9% 44.5% Finance 1,040,049 1,108,462 1,341,712 233,250 21.0% 50.7% Fire Contracted Services 1,749,527 1,777,084 1,761,326 (15,757) -0.9% 49.8% Human Resources 621,032 518,917 758,659 239,742 46.2% 35.6% Information Technology 173,472 202,924 257,195 54,270 26.7% 53.6% Law 441,824 594,096 721,562 127,467 21.5% 49.3% Municipal Court 1,377,035 1,452,837 1,525,021 72,184 5.0% 50.1% Parks, Recreation & Comm Svcs 6,932,268 7,490,599 7,696,005 205,406 2.7% 45.6% Police 15,257,045 15,974,854 16,975,698 1,000,844 6.3% 48.6% Public Works *1,825,139 2,295,183 792,433 (1,502,750) -65.5% 55.2% Non-Departmental 125,576 81,785 1,496,695 1,414,910 1730.0% 10.9% Total Expenditures 33,190,690 35,316,896 37,323,106 2,006,210 5.7% 41.9% * 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 June 2016 Monthly Financial Report City of Kent, Washington Year-to-Year Month Comparison General Fund 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. Street Fund Revenues 10,654,053 11,793,043 12,065,140 5,758,484 12,790,466 Expenditures 10,351,988 9,072,561 14,606,290 4,883,244 14,424,970 Net Revenues Less Expenditures 302,065 2,720,483 (2,541,150)875,240 (1,634,504) LEOFF 1 Retiree Benefits Revenues 1,055,840 1,341,722 1,164,510 204,981 1,118,430 Expenditures 887,036 1,279,216 1,125,890 443,694 1,087,390 Net Revenues Less Expenditures 168,803 62,506 38,620 (238,713)31,040 Lodging Tax Revenues 249,581 279,878 210,230 106,149 276,000 Expenditures 71,441 257,164 271,500 134,265 248,530 Net Revenues Less Expenditures 178,140 22,714 (61,270)(28,116)27,470 Youth/Teen Programs Revenues 888,250 894,592 912,600 475,267 916,530 Expenditures 898,524 920,380 942,000 942,000 Net Revenues Less Expenditures (10,274)(25,788)(29,400)475,267 (25,470) Capital Resources Revenues 16,413,708 20,561,359 14,414,120 7,737,950 18,394,620 Expenditures 11,997,869 11,538,631 15,332,300 3,053,334 15,170,000 Net Revenues Less Expenditures 4,415,838 9,022,728 (918,180)4,684,617 3,224,620 Criminal Justice Revenues 3,780,757 4,753,967 3,953,990 2,295,414 4,113,500 Expenditures 3,096,924 2,965,408 4,124,915 1,458,168 3,120,000 Net Revenues Less Expenditures 683,833 1,788,558 (170,925)837,247 993,500 Community Development Block Grant Revenues 835,776 808,466 914,740 112,810 914,740 Expenditures 835,776 808,466 914,740 329,109 914,740 Net Revenues Less Expenditures (216,299) ShoWare Operating Revenues 3,456,124 1,680,882 1,065,810 350,138 1,389,290 Expenditures 980,046 518,720 835,930 139,560 411,650 Net Revenues Less Expenditures 2,476,077 1,162,163 229,880 210,578 977,640 Other Operating Revenues 134,073 143,726 140,280 22,130 140,280 Expenditures 70,478 64,765 140,280 38,757 87,500 Net Revenues Less Expenditures 63,595 78,961 (16,627)52,780 Water Utility Revenues 20,948,199 20,140,494 18,870,370 9,287,382 20,445,000 Expenditures 15,890,786 17,620,354 19,214,740 7,305,457 18,458,060 Net Revenues Less Expenditures 5,057,413 2,520,140 (344,370)1,981,925 1,986,940 Special Revenue Funds Enterprise Funds June 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. 23 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. June 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 23,730,799 47,497,165 Expenditures 43,535,541 47,086,396 47,992,300 21,345,536 48,950,470 Net Revenues Less Expenditures 3,072,581 1,439,040 (1,621,590)2,385,262 (1,453,305) Solid Waste Utility Revenues 575,750 308,379 616,600 Expenditures 365 274,205 213,466 381,180 Net Revenues Less Expenditures (365)301,545 94,913 235,420 Golf Complex Revenues 2,489,362 2,661,490 2,774,450 1,219,326 2,585,000 Expenditures 2,693,040 2,867,873 3,143,490 1,474,393 3,179,000 Net Revenues Less Expenditures (203,678)(206,383)(369,040)(255,067)(594,000) Fleet Services Revenues 4,425,076 4,537,950 4,674,240 2,397,727 4,787,370 Expenditures 3,955,111 3,194,529 5,892,350 1,854,007 4,208,000 Net Revenues Less Expenditures 469,965 1,343,420 (1,218,110)543,720 579,370 Central Services Revenues 356,338 372,070 422,320 203,387 402,330 Expenditures 336,633 350,962 401,760 212,288 374,580 Net Revenues Less Expenditures 19,704 21,108 20,560 (8,901)27,750 Information Technology Revenues 6,878,827 7,603,220 7,127,530 3,783,282 7,566,540 Expenditures 6,130,328 6,708,773 7,481,090 3,001,886 7,441,770 Net Revenues Less Expenditures 748,499 894,447 (353,560)781,395 124,770 Facilities Revenues 5,096,650 5,429,412 5,382,650 2,674,870 5,372,930 Expenditures 4,673,883 5,527,155 5,402,190 2,088,111 5,117,300 Net Revenues Less Expenditures 422,768 (97,744)(19,540)586,758 255,630 Unemployment Revenues 380,356 397,641 402,720 207,460 414,900 Expenditures 112,106 98,860 401,740 97,401 167,770 Net Revenues Less Expenditures 268,250 298,781 980 110,059 247,130 Workers Compensation Revenues 1,506,197 1,095,382 1,074,910 585,655 1,140,520 Expenditures 80,344 681,822 1,495,730 560,841 1,371,680 Net Revenues Less Expenditures 1,425,853 413,560 (420,820)24,814 (231,160) 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 5,287,069 10,525,400 Expenditures 9,809,909 11,298,096 11,583,040 5,856,055 11,412,110 Net Revenues Less Expenditures (183,463)(810,993)(1,372,730)(568,985)(886,710) Internal Service Funds 24 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. June 2016 Monthly Financial Report Other Funds Overview (Revenues and Expenditures) City of Kent, Washington Liability Insurance Revenues 543,969 1,135,932 1,187,110 570,850 1,141,700 Expenditures 1,543,321 1,187,054 1,926,880 1,485,978 1,910,950 Net Revenues Less Expenditures (999,353)(51,122)(739,770)(915,128)(769,250) 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 568,107 582,938 612,050 306,431 612,800 Expenditures 508,423 471,003 604,600 241,693 520,600 Net Revenues Less Expenditures 59,684 111,935 7,450 64,738 92,200 25 2014 2015 2016 thru June thru June thru June Operating revenues and expenditures only, capital is excluded. Street Fund Revenues 3,823,236 4,176,238 5,758,484 1,582,246 37.9% Expenditures 2,198,890 2,242,458 4,883,244 2,640,786 117.8% Net Revenues Less Expenditures 1,624,346 1,933,779 875,240 2016 includes street and transportation revenues and costs moved from the General Fund. LEOFF 1 Retiree Benefits Revenues 404,770 296,619 204,981 (91,638)-30.9% Expenditures 417,324 757,454 443,694 (313,760)-41.4% Net Revenues Less Expenditures (12,554)(460,836)(238,713) 2015 claims were up dramatically compared to 2014, while 2016 thru April is consistent with past years. Lodging Tax Revenues 86,141 93,286 106,149 12,864 13.8% Expenditures 37,222 22,762 134,265 111,503 489.9% Net Revenues Less Expenditures 48,919 70,524 (28,116) 2016 expenditures reflect increased marketing activities. Youth/Teen Programs Revenues 477,847 481,515 475,267 (6,247)-1.3% Expenditures - - - Net Revenues Less Expenditures 477,847 481,515 475,267 Capital Resources Revenues 4,436,188 5,745,636 7,737,950 1,992,314 34.7% Expenditures 2,097,206 2,428,993 3,053,334 624,341 25.7% Net Revenues Less Expenditures 2,338,982 3,316,643 4,684,617 Criminal Justice Revenues 1,842,025 2,211,425 2,295,414 83,990 3.8% Expenditures 1,292,387 1,413,556 1,458,168 44,611 3.2% Net Revenues Less Expenditures 549,638 797,868 837,247 2016 increase in revenues due to strong sales tax trends and an increase in seized assets. Community Development Block Grants Revenues 175,590 184,880 112,810 (72,070)-39.0% Expenditures 340,807 290,114 329,109 38,995 13.4% Net Revenues Less Expenditures (165,217)(105,234)(216,299) Lag in grant reimbursement for expenses incurred. ShoWare Operating Revenues 105,576 81,282 350,138 268,856 76.8% Expenditures 492,318 29,109 139,560 110,451 379.4% Net Revenues Less Expenditures (386,742)52,173 210,578 2016 reveues include $225k for the ice plant settlement. 2015-16 Variance Year-to-Year Month Comparison June 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. 26 2014 2015 2016 thru June thru June thru June Operating revenues and expenditures only, capital is excluded. 2015-16 Variance Year-to-Year Month Comparison June 2016 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Other Operating Revenues 1,500 2,220 22,130 19,910 896.8% Expenditures 21,277 6,702 38,757 32,055 478.3% Net Revenues Less Expenditures (19,777)(4,482)(16,627) Includes City Art Program, Neighborhood Matching Grants and Human Services Emergency Programs Water Utility Revenues 8,492,097 8,377,405 9,287,382 909,977 10.9% Expenditures 7,923,045 7,337,697 7,305,457 (32,239)-0.4% Net Revenues Less Expenditures 569,052 1,039,708 1,981,925 Sewer/Drainage Utility Revenues 25,972,344 23,059,536 23,730,799 671,262 2.9% Expenditures 17,787,092 18,237,070 21,345,536 3,108,466 17.0% Net Revenues Less Expenditures 8,185,252 4,822,466 2,385,262 Solid Waste Utility Revenues 308,379 308,379 100.0% Expenditures 213,466 213,466 100.0% Net Revenues Less Expenditures 94,913 Solid Waste Utility established in 2016. Golf Complex Revenues 1,217,857 1,345,823 1,219,326 (126,498)-9.4% Expenditures 1,292,074 1,308,855 1,474,393 165,538 12.6% Net Revenues Less Expenditures (74,218)36,968 (255,067) 2016 revenues down due to inclement weather conditions in Q1. Fleet Services Revenues 2,191,365 2,285,511 2,397,727 112,215 4.9% Expenditures 1,813,645 1,210,381 1,854,007 643,626 53.2% Net Revenues Less Expenditures 377,720 1,075,130 543,720 Central Services Revenues 178,156 198,403 203,387 4,984 2.5% Expenditures 172,786 211,519 212,288 769 0.4% Net Revenues Less Expenditures 5,370 (13,116)(8,901) Information Technology Revenues 3,405,741 3,524,326 3,783,282 258,955 7.3% Expenditures 2,669,996 2,990,158 3,001,886 11,728 0.4% Net Revenues Less Expenditures 735,746 534,168 781,395 Facilities Internal Service Funds Enterprise Funds 27 2014 2015 2016 thru June thru June thru June Operating revenues and expenditures only, capital is excluded. 2015-16 Variance Year-to-Year Month Comparison June 2016 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Revenues 2,548,222 2,635,428 2,674,870 39,442 1.5% Expenditures 2,002,615 2,017,407 2,088,111 70,704 3.5% Net Revenues Less Expenditures 545,607 618,021 586,758 Unemployment Revenues 188,116 198,538 207,460 8,922 4.5% Expenditures 62,486 58,376 97,401 39,026 66.9% Net Revenues Less Expenditures 125,630 140,163 110,059 Workers Compensation Revenues 727,539 545,304 585,655 40,351 7.4% Expenditures 382,504 361,690 560,841 199,150 55.1% Net Revenues Less Expenditures 345,035 183,614 24,814 Employee Health & Wellness Revenues 4,927,690 5,196,633 5,287,069 90,437 1.7% Expenditures 4,785,344 5,415,528 5,856,055 440,527 8.1% Net Revenues Less Expenditures 142,346 (218,895)(568,985) Liability Insurance Revenues 996,929 567,722 570,850 3,128 0.6% Expenditures 966,649 1,074,252 1,485,978 411,725 38.3% Net Revenues Less Expenditures 30,280 (506,531)(915,128) Property Insurance Revenues 284,061 291,502 306,431 14,929 5.1% Expenditures 270,229 665,754 247,803 (417,951)-62.8% Net Revenues Less Expenditures 13,832 (374,252)58,628 28 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 90,427,290 88,200,090 17,599,699 Street Fund 4,092,055 12,790,466 14,424,970 2,457,551 LEOFF 1 Retiree Benefits 1,093,532 1,118,430 1,087,390 1,124,572 Lodging Tax 394,516 276,000 248,530 421,986 Youth/Teen Programs 121,275 916,530 942,000 95,805 Capital Resources 5,775,064 18,394,620 15,170,000 8,999,684 Criminal Justice 3,981,627 4,113,500 3,120,000 4,975,127 Community Development Block Grants 914,740 914,740 ShoWare Operating 1,596,543 1,389,290 411,650 2,574,183 Other Operating 364,242 140,280 87,500 417,022 Water Utility 8,158,504 20,445,000 18,458,060 10,145,444 Sewer/Drainage Utility 10,093,986 47,497,165 48,950,470 8,640,681 Solid Waste Utility 365 616,600 381,180 235,785 Golf Complex (3,043,675) 2,585,000 3,179,000 (3,637,675) Fleet Services 4,301,237 4,787,370 4,208,000 4,880,607 Central Services (46,226) 402,330 374,580 (18,476) Information Technology 2,808,737 7,566,540 7,441,770 2,933,507 Facilities 1,672,947 5,372,930 5,117,300 1,928,577 Unemployment 1,038,938 414,900 167,770 1,286,068 Workers Compensation 2,541,813 1,140,520 1,371,680 2,310,653 Employee Health & Wellness 6,122,922 10,525,400 11,412,110 5,236,212 Liability Insurance 2,452,656 1,141,700 1,910,950 1,683,406 Property Insurance 348,579 612,800 520,600 440,779 Internal Service Funds General Fund June 2016 Monthly Financial Report City of Kent, Washington Fund Balances Special Revenue Funds Enterprise Funds 29