Mid-Biennial Modification 2013-2014...

Mid-Biennial Modification2013-2014 Adjustments

Presented by Tadd Wille, Budget OfficerCity Council Study SessionNovember 26, 2013

1

• Purpose

• General Fund Modifications

• Other Funds Modifications

• Summary and Next Steps

Overview of Presentation 2

• State Law requires a mid-biennial review and modification before conclusion of first year of biennium

• Mid-Biennial Modification: – Aligns and updates revenue and expenditure budgets

with updated financial information and trends – Adjusts for resolutions previously approved by City

Council– Provides for budgetary corrections or revisions

Purpose of Modification 3

General Fund

Modification Summary

2013/2014 Budget

2013 YE Adjustment

2014 Adjustment

2013/2014 Modified Budget

Revenue $392.5 $5.0 ($2.9) $394.6

Expenditures 389.1 (9.5) 2.4 382.0

Net Impact to Reserves

$3.4 $14.5 ($5.3) $12.6

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$ values in millions

General Fund Revenues

Revenue Modification Summary 7


2013/2014 Budget

2013 YE Adjustment

2014 Adjustment


Revenue $392.5 $5.0 ($2.9) $394.6

Expenditures 389.1 (9.5) 2.4 382.0


$3.4 $14.5 ($5.3) $12.6

2013/2014 Budget

2013 YE Adjustment

2014 Adjustment


Revenue $392.5 $5.0 ($2.9) $394.6

2013 Year End Revenues - $5.0 M 8

• 3rd Quarter Report Year End Estimates– Favorable Revenues of $5.6 M

• Business Taxes: $2.7 M • Sales Taxes: $1.9 M • Utility Taxes: $0.4 M • Property Taxes: $0.6 M

– Unfavorable Revenues of ($0.6 M)• Other Revenue: ($0.6 M) lower revenues


2014 Revenue Adjustments – ($2.9 M) 9

• Favorable Adjustments of $3.9 M

– Business Taxes: $2.0 M; Sales Taxes: $1.9 M

• Unfavorable Adjustments of ($0.6 M)

– Other Revenue: ($0.6 M)

• 2% Gross Earning Revenue: Reduce GF by ($6.2 M)

– Redirected to newly created GET Street Maintenance Fund

– General Fund offsetting expense reduction of $6.2 M

2013/2014 Budget

2013 YE Adjustment

2014 Adjustment


Revenue $392.5 $5.0 ($2.9) $394.6


General Fund Expenditures

Expenditures Modification Summary 11


2013/2014 Budget

2013 YE Adjustment

2014 Adjustment


Revenue $392.5 $5.0 ($2.9) $394.6

Expenditures 389.1 (9.5) 2.4 382.0


$3.4 $14.5 ($5.3) $12.6

2013 Year End Expenditures – ($9.5 M)

2013/2014 Budget

2013 YE Adjustment

2014 Adjustment


Expenditures $389.1 ($9.5) $2.4 $382.0

DepartmentYear EndProjected Savings

2013 Carry Forward

Non Departmental ($3.8) $0.4

Police (2.9) 0.7

Other Departments (2.8) 1.6

Total ($9.5) $2.7

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2014 Expenditure Adjustments –$2.4 M• Favorable Adjustments - ($6.0 M)

– Police: ($2.9 M) in savings

– Non Departmental: ($1.7 M) in savings

– Health Benefits: ($1.4 M) in savings

• Additional Expenditures - $8.4 M

– 2013 Carry Forward: $2.7 M

– Public Works: $5.6 M in net additional expenditures

– Fire: $0.1 M in additional expenditures

2013/2014 Budget

2013 YE Adjustment

2014 Adjustment


Expenditures 389.1 (9.5) 2.4 382.0

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2014 Expenditure Adjustments –$2.4 M

• Police Savings - ($2.9 M) – Jail Costs – ($1.3 M)

– South Sound 911 – ($1.0 M)– Traffic Enforcement Fund Contribution – ($0.6 M)

• Non Departmental Savings - ($1.7 M)– Police and Fire Medical Pension

Savings – ($1.7 M)

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2014 Expenditure Adjustments –$2.4 M(Continued)

• Health Benefits Savings - ($1.4 M) – 2014 Budget included 12% rate increase in

benefit costs• 2014 updated rate increase based on

renewal at current benefit levels: 5.2%

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• 2013 Carry Forward - $2.7 M– Police law enforcement equipment, operating supplies,

other: $0.7 M – Non Departmental contracts: $0.4 M – Charter review and legal services: $0.4 M – Fire operating supplies and professional services: $0.2 M – Library deferred costs: $0.2 M – Other deferred expenditures and contractual obligations:

$0.8 M


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Adjustment DescriptionAmount

(Favorable)/Unfavorable

Redirected 2% GET Dedicated Funding ($6.2)

Contribution to Parking Fund (0.9)

2013 Street Fund Structural Adjustment 6.4

ADA/Pedestrian Safety 2.5

Foss Seawall Repair 2.1

Other Improvements / Repairs 1.7

Total $5.6

Public Works - $5.6 M Net Additional Expenditures



• Public Works - $5.6 M Net Additional Expenditures– Redirected GET 2% Dedicated Street Maintenance

Funding – ($6.2 M) in savings

• 2% of Gross Earning Taxes redirected from General Fund

• Dedicated for new Street Operation and Maintenance Fund

– Contribution to Parking Fund – ($0.9 M) in savings

• Parking fund revenues higher than anticipated

• General Fund contribution no longer required


• Public Works - $5.6 M Net Additional Expenditures (Continued)

– Street Operations 2013 Structural Adjustment-$6.4 M

• Fiscal analysis of 2013 capital and operational funding identified $6.4 M necessary structural adjustment of operational funds

• Capital and operational funding now separated into designated Funds for tracking and transparency purposes



– Pedestrian Safety Enhancements - $2.5 M• Thermoplastic Crosswalk Markings• ADA Compliant Crosswalks / Sidewalks• Staff developing criteria to prioritize enhancement locations

– Foss Seawall Repair - $2.1 M

• Esplanade structure at Site 9 on Thea Foss Waterway failing

• Soil behind seawall not remediated

• Repair to seawall to begin in mid-December



– Other Improvements / Repairs- $1.7 M• Foss Site 11 (Phase 2) –

$600,000• Pacific Avenue Pedestrian

Crossing (TAM) - $150,000• Waterview Street Landslide –

$50,000

• Vassault Wall - $600,000

• Stadium Way (Commerce Street Flooding) - $300,000

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Vassault Wall


• Fire - $0.1 M

– Damages to Fireboats Destiny andCommencement

• Damages caused by Murray Morgan Bridge painting and refinishing work

• Contractor’s insurance to pay for damages to offset repair expenses



2013/2014 Budget

2013 YE Adjustment

2014 Adjustment


Revenue $392.5 $5.0 ($2.9) $394.6

Expenditures 389.1 (9.5) 2.4 382.0


$3.4 $14.5 ($5.3) $12.6

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Modification Impact to Reserves

2013/2014 Budget


2013 Beginning Balance $23.6 $23.6

Added to Reserves 3.4 12.6

2014 Year End Balance 27.0 36.2

Reserve 27.0 30.2

(15% Goal)

2015/2016 DeficitStabilization Reserve

$0.0 $6.0

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Other Funds -• Parking System and

Enterprise Fund

Parking System Overview 26

• Budget Modification Overview

• Financial Performance

• Enhancements


2013/2014 Budget

2013/2014 Adjustments


Beginning Fund Balance

$2.7 $0.0 $2.7

Revenue 9.6 3.7 13.3

Expenditures 13.2 2.0 15.2

Variance(Added to Reserves)

($0.9)* $1.7 $0.8

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*2013/2014 General Fund Budgeted Support

• On-Street Parking: $0.2 M– $0.08 M increased demand; $0.12 M permit

enhancements

• Off-Street Parking: $2.8 M– $1.9 M efficiencies and increased demand; $0.9 M State

Farm impact

• Enforcement: $0.7 M– $0.2 M increased enforcement; $0.5 M License Plate

Recognition System

Revenue Adjustments - $3.7 M 28

• Enhancements and Maintenance - $2.0 M– Parking Initiatives: $1.3M

• Branding and Way Finding - $0.5 M• License Plate Recognition System (1.0 FTE) - $0.3 M• Residential Parking Permits - $0.2 M• Lighting Efficiency Upgrades - $0.3 M

– Deferred Maintenance: $0.7 M • Convention Center Garage

Expenditures Adjustments - $2.0 M 29

30Summary

• Based on projections, no General Fund support needed for 2013/2014 ($0.9 M)

• Maintains reserve• Revenue assumptions include implementation

of a License Plate Recognition and Permit Program

Other Funds -• Special Revenue• Capital/Bonds• Enterprise• Internal Service

Other Funds Appropriation Summary 32

Total Other Funds 2013-2014

Modification:

$91 M Special Revenue$77.1

Capital/Bonds$4.4

Enterprise$8.0

Internal Service$1.4


Special Revenue Funds

Fund Description Amount

Streets –Capital

Selected projects detailed in future slide (Slide 36)

$47.2

Streets –Operations

New fund to account for street and engineering operations (separated from Capital Fund)

15.2*

Streets –2% GET

New fund to track dedicated 2% GET revenue (redirected from General Fund)

6.2

FireFEMA grants and Fire Homeland Security Related Activities

2.1

FacilitiesStreet Operations Roof Replacement and Relocation Expenses

0.9

Table Continued on Next Slide

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*Includes transfer of $6.2 M from 2% GET Dedicated Street Fund


Special Revenue Funds


Paths & TrailsHistoric Water Ditch Trail and other trail and bicycle safety improvements

0.7

NCSEastside Community Center study, Gang Reduction, and Fair Housing Partnerships

0.6

Library Moore Branch remodel 1.1

PoliceHomeland Security activities and other Law Enforcement activities

3.0

CED LEAP Workforce development and job training 0.2

Total Special Revenue Funds $77.1

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35

Transportation Capital & Engineering Fund Expenditures - Selected Projects

Puyallup River Bridges (F16A & F16B) $26.8

Tacoma Ave South Bridge 7.2

South Tacoma Way Corridor Multimodal Improvements 3.8

Pacific Avenue Streetscape 3.2

Union Avenue Viaduct Rehabilitation 3.0

ADA/Crosswalk/Pedestrian Improvements* 2.5

Foss Site 9 Seawall* 2.1

Mildred Street Improvements 2.0

Other Capital Street Improvements 11.1

Structure Changes (Separate Street & Eng Ops. from Capital) (14.4)

Total $47.2

Streets Special Revenue Fund

$ values in millions*Initiatives discuss earlier in presentation. General Fund would contribute to the Capital Fund where projects would be managed.

Capital/Bond Funds


2009 LTGO Bonds

People’s Pool $3.8

2010 LTGO Bonds

Energy and Utility Conservation Measures $0.6

Total Capital/Bond Funds $4.4

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Enterprise Funds


Rail Mountain Division

Blackeslee Track Project, Steibrs Farms Bridge Repair, Expenditures due to increased volumes

$1.1

Parking Operations

Branding/Lighting/License Plate Recognition/Maintenance*

2.0

Tacoma Rail Increased volumes resulting in increased M&O 4.9

Total Enterprise Funds $8.0

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$ values in millions*Initiatives discuss earlier in presentation.

Internal Service Funds


Fleet Vehicle Purchases $0.5

Radios Radio Replacements 0.5

MunicipalBuilding Operations

Municipal Building Elevator Improvements 0.4

Total Internal Service Funds $1.4

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Next Steps

Next Steps – Calendar of Events

Date Action

November 26th • Study Session on the Mid-Biennial Modification• Public Hearing on Mid-Biennial Modification• 2nd Reading of Property / EMS Levy Ordinance

December 3rd • 1st Reading on the Mid-Biennial Modification

December 10th • 2nd Reading on Mid-Biennial Modification

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Summary

• General Fund modifications overall positive

• Monthly financial monitoring by departments played key role in development of modified budget, allowing for needed adjustments and added reserve funding

• Departments to continue monthly monitoring of revenues and expenditures through 2014

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Mid-Biennial Modification2013-2014 Adjustments

Presented by Tadd Wille, Budget OfficerCity Council Study SessionNovember 26, 2013

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Mid-Biennial Modification 2013-2014...

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