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
5
$ values in millions
General Fund Revenues
Revenue Modification Summary 7
$ values in millions
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
2013/2014 Budget
2013 YE Adjustment
2014 Adjustment
2013/2014 Modified Budget
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
$ values in millions
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
2013/2014 Modified Budget
Revenue $392.5 $5.0 ($2.9) $394.6
$ values in millions
General Fund Expenditures
Expenditures Modification Summary 11
$ values in millions
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
2013 Year End Expenditures – ($9.5 M)
2013/2014 Budget
2013 YE Adjustment
2014 Adjustment
2013/2014 Modified Budget
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
12
$ values in millions
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
2013/2014 Modified Budget
Expenditures 389.1 (9.5) 2.4 382.0
13
$ values in millions
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)
14
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%
15
16
• 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
2014 Expenditure Adjustments –$2.4 M(Continued)
17
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
2014 Expenditure Adjustments –$2.4 M(Continued)
$ values in millions
• 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
182014 Expenditure Adjustments –$2.4 M(Continued)
• 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
192014 Expenditure Adjustments –$2.4 M(Continued)
• Public Works - $5.6 M Net Additional Expenditures (Continued)
– 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
202014 Expenditure Adjustments –$2.4 M(Continued)
• Public Works - $5.6 M Net Additional Expenditures (Continued)
– 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
21
Vassault Wall
2014 Expenditure Adjustments –$2.4 M(Continued)
• 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
222014 Expenditure Adjustments –$2.4 M(Continued)
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
23
$ values in millions
Modification Impact to Reserves
2013/2014 Budget
2013/2014 Modified 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
24
$ values in millions
Other Funds -• Parking System and
Enterprise Fund
Parking System Overview 26
• Budget Modification Overview
• Financial Performance
• Enhancements
Modification Summary
2013/2014 Budget
2013/2014 Adjustments
2013/2014 Modified Budget
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
27
$ values in millions
*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
$ values in millions
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
33
*Includes transfer of $6.2 M from 2% GET Dedicated Street Fund
$ values in millions
Special Revenue Funds
Fund Description Amount
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
34
$ values in millions
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
Fund Description Amount
2009 LTGO Bonds
People’s Pool $3.8
2010 LTGO Bonds
Energy and Utility Conservation Measures $0.6
Total Capital/Bond Funds $4.4
36
$ values in millions
Enterprise Funds
Fund Description Amount
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
37
$ values in millions*Initiatives discuss earlier in presentation.
Internal Service Funds
Fund Description Amount
Fleet Vehicle Purchases $0.5
Radios Radio Replacements 0.5
MunicipalBuilding Operations
Municipal Building Elevator Improvements 0.4
Total Internal Service Funds $1.4
38
$ values in millions
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
40
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
41
Mid-Biennial Modification2013-2014 Adjustments
Presented by Tadd Wille, Budget OfficerCity Council Study SessionNovember 26, 2013
42