1. Quarterly Budget Update 2017 Quarterly Reports
Gary Robinson, Finance Director
8/2/2017

2. General Fund Expenditures Special Revenue Funds Enterprise Funds
Agenda
Economic Indicators
General Fund Revenues
General Fund Expenditures
Special Revenue Funds
Enterprise Funds
Vacancy Savings
Cash Balance
8/2/2017

3. Economic Indicator: Unemployment
The unemployment rate for Washington decreased through May of 2017 to 5.2% from 5.6% in The rate for Pierce County is 5.7%, a decline of 0.6 percentage points compared to 2016, King County decreased to 3.2% from 4.2%, and Snohomish County decreased from 4.6% in 2016 to 3.6% in 2017.
The total average employment for Pierce County continues to increase averaging 387,924 per month in 2017.
8/2/2017

4. Economic Indicator: Permits
All residential permit activity decreased 9.4% compared to the second quarter of New start permits decreased 14.2% compared to New start permits is revised down by 100 permits from the first quarter to 1,500 permits for the year through June activity.

5. Economic Indicator: Real Estate Activity
Source: Real Estats, May 2017

6. General Fund Revenues
Sales tax revenue is at 52% of total budget through June. The 2017 budget for Other Taxes was increased to reflect how actual revenues were collected in The difference in comparison is due to the timber harvest contract value being known for In 2016 the timber harvest was not under contract at the time the budget was built. The state investment pool interest rate has continued to increase in 2017 over At the end of June the rate is 0.99%. In 2016 the rate was 0.50%.

7. Unincorporated Sales and Use Tax
Comparing revenue from 2017 to 2016: Construction categories are relatively unchanged in 2017 from Retail increased 9.0% or $398,802.

8. PALS Fees/Charges Revenues
Planning and Land Services (PALS) revenues decreased 3.4% compared to the second quarter of This level represents 51% of PALS total budgeted revenue for 2017.

9. General Fund Expenditures: Percent of Budget
As of June 30th, General Fund expenditures totaled $134,639,307 which equals 45.7% of the budget.
Most departments above 50% have large one-time expenditures that are planned in the budget and paid out in the first and second quarters. For example, the Assessor-Treasurer made payments for scheduled software maintenance.

10. Special Revenue Funds
Several funds rely upon grant reimbursement revenues, which are billed and received after the expenditures have been incurred.
Prior year surplus has been used to balance several of these budgets which results in a planned deficit during the current year. For example, Conservation Futures relies on fund balance until property tax payments arrive in April and October.
Traffic impact fees are higher due to the quantity and infrastructure cost of projects in the area (generally south of SR512 and West of SR161).

11. Enterprise Funds
Airports revenues includes 1st REET distributions. Golf course revenue has been lower because of record rainfall in the 1st quarter. Planned transfers from Parks Sales Tax are scheduled to occur later in the year. Expenditures are tracking with budget. The Federal Transit Administration contribution to the Ferry fund for prior years was distributed in the first quarter. Solid Waste had a non-cash land transfer from Fund 150 for $621,800 in the second quarter that is identified as revenue. Without this transaction revenue would be 40.2% for the quarter.

12. General Fund Vacancy Savings – Through July 3, 2017
Total vacancy savings is $3,755,610 Total vacancy savings used $64,510 Net vacancy savings is $3,691,100
Company
Vacancy Savings
Use of Vacancy Savings
Assessor-Treasurer
103,610
Assigned Counsel
382,760
Auditor
33,830
Clerk
83,300
Communications
51,890
1,343
County Council
64,880
District Court
94,900
40,570
Emergency Management
60,750
Finance
67,220
Company
Vacancy Savings
Use of Vacancy Savings
Human Resources
92,080
Juvenile
332,760
Medical Examiner
72,750
Parks and Recreation
83,080
Planning and Land Services
26,790
22,600
Prosecuting Attorney
324,730
Sheriff's Corrections
968,090
Sheriff's Law Enforcement
815,780
Superior Court
96,410

13. Other Funds Vacancy Savings – Through July 3, 2017
Total vacancy savings is $4,550,720 Total vacancy savings used $104,070 Net vacancy savings is $4,446,650
Fund
Vacancy Savings
Use of Vacancy Savings
Veterans Relief
63,040
38,800
Auditor’s M&O
25,290
Criminal Justice
52,910
Conservation Futures
2,320
Community Connections
319,830
911 System Fund
50,030
Housing Repair Programs
36,070
Community Development
13,210
Emergency Management Grants
21,040
Company
Vacancy Savings
Use of Vacancy Savings
Parks Sales Tax
6,740
Second REET Parks
County Road
913,960
Surface Water Management
362,650
Community Action
78,980
Judson Family Justice Center
12,500
PALS Building & Development
85,650
65,270
In-Lieu Fee Wetlands Mitigation
27,310
Combined Comm. Network
142,420

14. Other Funds Vacancy Savings – Through July 3, 2017
Total vacancy savings is $4,550,720 Total vacancy savings used $104,070 Net vacancy savings is $4,446,650
Fund
Vacancy Savings
Use of Vacancy Savings
REET Capital Improvement
60,100
SWM Construction
20,070
SS911 Building Lease
73,170
Sewer Utility
918,270
Chambers Bay Golf Course
18,220
Airport Fund
31,640
Solid Waste Mgmt Admin
53,490
Ferry Services
62,520
Equipment Services Division
48,320
Company
Vacancy Savings
Use of Vacancy Savings
Information Technology
610,170
Facilities Management
206,550
Radio Communications
124,410
Self Insurance
87,200
Workers Compensation
7,950
Medical Self Insurance

15. Cash Balance
The second quarter cash balance is $6.4 million more than the second quarter of The increase is due to an increase of $7.4 million in revenue and an increase of $1.0 million in expenditures.
Cash balances will be spent down until the second property tax payments for the year are collected in October.