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04/16/2024 - PacketPort Orchard Council Finance Committee April 16, 2024 4:00 pm-5:00 Zoom Link Council Conference Room https://us02web.zoom.us/j/85816380247 US: +12532158782, 85816380247# or +12532050468, 85816380247# 1) Finance Department (15 mins) Finance Director, Noah Crocker a. Sales Tax & REET Revenue Report b. Preliminary Treasurers Report — Funds, accounts c. Monthly budget Report 2) Information Technology (IT) Update (20 mins) Finance Director, Noah Crocker a. Cybersecurity-SAO Audit b. CJIS Certified Update c. Cybersecurity 2022 grant update d. Cybersecurity 2023 grant pending e. City Hall Update -Police f. 3) Budget Amendment 2023-2024 (10 mins) Finance Director, Noah Crocker a. TIP 1.15 Pottery Ave Non -motorized Other Items to come before the Committee. Schedule Next Meeting Date Role of the Finance Committee The finance committee provides oversight of city budgeting, financial planning, and financial reporting. The committee recommends long-range financial goals along with funding strategies for the operating and capital budgets. Human resource issues requiring policy direction are brought before the committee. The committee serves as the advisory forum for transportation and street maintenance funding, and funding relating to the transportation benefit district. Sales Tax Collections Population Summary of Budget to Actuals 2022 2023 2024 Biennial Budget Actual 5,340,000 6,865,000 6,895,000 13,760,000 7,783,763 7,719,461 1,964,292 9,683,754 Over/Under $ 2,443,763 $ 854,461 $ (4,930,708) $ (4,076,246) Actuals 2022 2023 2024 Biennial January February March April May June July August September October November December $ 543,145 626,678 524,545 548,118 665,944 682,922 668,890 742,304 707,709 693,521 730,655 649,332 $ 656,711 684,990 572,419 539,880 606,994 616,122 689,627 725,037 663,517 653,847 684,362 1 625,956 $ 631,079 723,810 609,403 $ 1,287,789 $ 1,408,800 $ 1,181,822 $ 539,880 $ 606,994 $ 616,122 $ 689,627 $ 725,037 $ 663,517 $ 653,847 $ 684,362 $ 625,956 Total $ 7,783,763 $ 7,719,461 $ 1,964,292 $ 9,683,754 Percentage of Biennial Budget Received 70% Actuals Year over Year % Change Change $ (25,632) -3.90% $ 38,820 5.67% $ 36,985 6.46% is 50,173 12.62% Real Estate Excise Tax (REET) Collections Summary of Budget to Actuals 2022 2023 2024 Biennial Budget Actual $ 1,808,000 1,945,903 $ 1,800,000 2,112,110 $ 1,600,000 350,708 $ 3,400,000 $ 2,462,818 Over/Under $ 137,903 $ 312,110 1 $ (1,249,292) $ (937,182) 108% Actuals 2022 2023 2024 Biennial January February March April May June July August September October November December $ 82,213 166,226 204,469 126,410 151,824 190,761 249,922 172,743 181,406 151,035 121,635 147,258 $ 81,265 $ 137,211 158,612 150,287 189,577 237,539 233,708 172,573 280,056 154,352 140,293 1 176,638 107,320 104,091 139,296 $ 188,585 $ 241,302 $ 297,908 $ 150,287 $ 189,577 $ 237,539 $ 233,708 $ 172,573 $ 280,056 $ 154,352 $ 140,293 $ 176,638 Total $ 1,945,903 $ 2,112,110 $ 350,708 $ 2,462,818 Percentage of Biennial Budget Received 72% Actuals Year over Year Change % Change $ 26,055 32.06% $ (33,120) -24.14% $ (19,316) -12.18% $ (26,381) -7.00% Budget 2024 estimated Budget vs Actual % based on Syr avg (Over/Under) Over/Under $ 516,190 $ 114,889 22.3% $ 620,872 $ 102,938 16.6% $ 479,509 $ 129,895 27.1% $ 461,296 #VALUE! $ 570,567 #VALUE! $ 566,524 #VALUE! $ 611,506 #VALUE! $ 642,161 #VALUE! $ 617,092 #VALUE! $ 606,655 #VALUE! $ 630,537 #VALUE! $ 572,093 #VALUE! $ 6,895,000 $ 347,722 21.51% Budget 2024 estimated Budget vs Actual % based on Syr avg (Over/Under) Over/Under $ 80,407 $ 26,913 33.5% $ 122,603 $ (18,512) -15.1% $ 134,793 $ 4,503 3.3% $ 118,291 #VALUE! $ 108,281 #VALUE! $ 139,665 #VALUE! $ 231,669 #VALUE! $ 133,480 #VALUE! $ 155,823 #VALUE! $ 128,521 #VALUE! $ 94,003 #VALUE! $ 152,465 #VALUE! $ 1,600,000 $ 12,904 4% Detail Report Fund 001- Current Expense 002 - City Street Fund 003 - Stabilization Fund 103 - Criminal Justice 104 - Special Investigative Unit 107 - Community Events 108 - Paths & Trails 109 - Real Estate Excise Tax 111- Impact Mitigation Fee 206 - Bond Redemption Fund 302 - Capital Construction 304 - Street Capital Projects 401- Water -Sewer Utilities 403 - Water -Sewer Cumulative Reserve 411- Water Operating 412 - Water Stabilization 413 - Water Capital 414 - Water Debt Service 421- Storm Drainage Utility 422 - Storm Drainage Stabilization 423 - Storm Drainage Capital Facil 424 - Storm Drainage Debt Service 431- Sewer Operating 432 - Sewer Stabilization 433 - Sewer Capital 434 - Sewer Debt Service 500 - Equipment Rental and Revolving 631- Trust and Agency 632 - Wastewater Treatment Facil Fee Grand Total: 4/16/2024 3:29:33 PM Beginning Balance 18,243,330.75 4,018,947.18 3,098,939.97 836,944.32 101,808.73 409,288.52 16,147.00 6,280,366.99 8,886,839.97 100,907.35 7,500,627.23 2,353,446.31 0.00 0.00 4,728,106.76 1,026,023.68 9,712,087.17 0.00 1,963,446.61 576,461.97 203,667.42 0.00 8,299,178.59 1,535,490.09 8,241,408.54 870,850.77 3,584,080.64 6,325.21 6,667,721.56 99,262,443.33 Total Activity Ending Balance -487,314.88 17,756,015.87 -28,532.52 3,990,414.66 14,122.22 3,113,062.19 23,621.53 860,565.85 327.84 102,136.57 12,850.92 422,139.44 182.24 16,329.24 156,395.01 6,436,762.00 364,573.32 9,251,413.29 463.69 101,371.04 14,010.38 7,514,637.61 9,545.70 2,362,992.01 0.00 0.00 0.00 0.00 -511,086.62 4,217,020.14 4,714.90 1,030,738.58 -240,324.08 9,471,763.09 0.00 0.00 -22,126.03 1,941,320.58 2,649.02 579,110.99 935.92 204,603.34 0.00 0.00 -161,031.75 8,138,146.84 7,056.06 1,542,546.15 233,736.63 8,475,145.17 4,001.83 874,852.60 -607,953.72 2,976,126.92 2,136.71 8,461.92 131,708.96 6,799,430.52 -1,075,336.72 98,187,106.61 Date Range: 03/01/2024 - 03/31/2024 Fund Summary Page 5 of 5 ATCHFO ING SEQUENCE re fif5TEVA RDA z Jq R IT DEPARTMENT 2023-2024 HIGHLIGHTS m Washington State Auditor's Office Critical Infrastructure Audit Port Orchard earned a perfect score on a critical infrastructure audit conducted by the Washington State Auditor's office. This accomplishment signifies the exceptional resilience and security of our city's critical infrastructure, our cybersecurity posture and user training programs, and the commitment to safeguarding critical systems and data. IT DEPARTMENT 2023-2024 HIGHLIGHTS m Washington State Auditor's Office Critical Infrastructure Audit What is a Critical Infrastructure Audit? This rigorous evaluation assesses the safeguards in place to protect vital internal and public systems, including: • City Networking and Communications • Devices and Endpoints • Personally Identifiable Information (PII) • Financial Records and Information • Public Utilities • Emergency Response Services and CAS • Emergency Operations Center (EOC) IT DEPARTMENT 2023-2024 HIGHLIGHTS m Washington State Patrol CJIS Audit Port Orchard also secured a perfect score on its recent Criminal Justice Information Services (CJIS) audit by the Washington State Patrol Technology Division. This rigorous assessment evaluates a city's compliance with GIS standards for safeguarding sensitive criminal justice data and is required by state law every 3 yea rs. IT DEPARTMENT 2023-2024 HIGHLIGHTS m Washington State Patrol CJIS Audit What is a CJIS Audit? A CJIS audit is an inspection conducted to ensure a criminal justice agency's compliance with the FBI's Criminal Justice Information Services (CJIS) Security Policy. This policy outlines the standards for how agencies should handle Criminal Justice Information (CJI). IT DEPARTMENT 2023-2024 HIGHLIGHTS m Washington State Patrol CJIS Audit CJI refers to a broad range of sensitive data, including: • Biometric data: Fingerprints, DNA • Identity history: Criminal records, arrest wa rra nts • Biographic data: Names, addresses, dates of birth • Property data: Stolen vehicles, recovered weapons • Case/incident history: Details of crimes and investigations IT DEPARTMENT 2023-2024 HIGHLIGHTS A Perfect Score: What it Means Earning perfect scores reflects our commitment to safeguarding these essential systems. It demonstrates that we have implemented strong security measures to address potential threats and ensure their continued functionality. A Continuing Commitment While these achievements are commendable, our dedication to infrastructure security remains constant. We will continue to collaborate with the State Auditor's Office and Washington State Patrol to leverage best practices in maintaining the highest standards of protection. IT DEPARTMENT 2023-2024 HIGHLIGHTS FY22 State and Local Cybersecurity Grant Program (SLCGP) In 2023, Port Orchard submitted a proposal, and was awarded a grant from the DHS/FEMA FY 22 SLCGP funded program in the amount of $36,450 for our project proposal, "Cybersecurity: A Shared Responsibility". This project has been implemented, and is at -85% completion, with funding to be reimbursed. The project completion date is expected to be early Summer 2024. IT DEPARTMENT 2023-2024 HIGHLIGHTS FY22 State and Local Cybersecurity Grant Program (SLCGP) Project Scope and Highlights: • Conducting a security risk assessment to identify the threats that our City is most likely to face. • Selecting an MDR vendor and hardware/software solution that meets the needs of the City and its citizens (Critical Insight). • Implement a 24x7 Managed Detection and Response service, so limited staff and hours do not inhibit full monitoring and prevention of data loss or compromise. • Implementation of more secure controls such as MFA, increased endpoint security, and intrusion detection/prevention. IT DEPARTMENT 2023-2024 HIGHLIGHTS FY23 State and Local Cybersecurity Grant Program (SLCGP) In 2024, Port Orchard will submit another grant proposal for the DHS/FEMA FY23 SLCGP funded program for approximately double the amount of our previous proposal (N$68,000). This will ensure continued funding of our current efforts, and will add funding for new networking hardware, security software, immutable cloud archiving, and staff training. The proposal is due by May 10t", 2024. IT DEPARTMENT 2023-2024 HIGHLIGHTS m POPD Technology and Security Improvements Thanks to the City Hall renovation, IT took the opportunity to update and upgrade many items in the Police area, including: • Additional data ports throughout • New networking hardware • New monitors, wireless keyboards and mice • Docking stations for our Officers' new Mobile Computer Terminals (MCTs) from Kitsap 911 IT DEPARTMENT 2023-2024 HIGHLIGHTS m POPD Technology and Security Improvements Port Orchard IT Staff collaborated with both Kitsap county, and Kitsap 911 (CENCOM) IT Departments to: • Implement new software and configurations for the new MCTs • Create and deploy additional security policies and measures • Reconfigure and create new secure network routes between all of the entities' disparate networks IT DEPARTMENT 2023-2024 HIGHLIGHTS m POPD Technology and Security Improvements Managed the installation of a new AXON Interview room system, including: • Two redundant video servers installed in the City Hall server room • Two cameras (one dome and one discrete) • Two microphones • A Touchscreen command controller outside the room Via the AXON Evidence.com cloud app, POPD personnel can now securely view live or recorded interviews through any POPD city devices, including their mobile devices or tablets. CI�B�RSE���t�TY R.............. ......... LOCAE6%VERNMENTS '- Why it matters • Our city holds a treasure trove of data - social security numbers, financial records, criminal justice information, and more - making us a prime target for cybercriminals. • Compared to corporations, cities often have limited resources and outdated systems, increasing vulnerability. • Breaches can disrupt essential services, harm public safety, and erode public trust. Cybersecurity's role • Protects critical data from breaches and ransomware attacks. • Ensures smooth operation of government services citizens rely on. • Builds public trust by demonstrating commitment to data security. Strong cybersecurity is no longer optional for local governments. It is essential to safeguard data, maintain operations, and keep our FAR[) 0 information safe. C rV L 0 c A E-i I,, TY MENTS ................::......... ........ Unfortunately, Local governments were prime targets for ransomware attacks in 2023. Here's what we know: Increased Frequency: • Reports from the Center for Internet Security (CIS) and StateScoop indicate a significant rise in ransomware incidents targeting state and local governments compared to 2022. • The figures suggest a jump of around 51 % in ransomware incidents during the first eight months of 2023 alone. Impact on Operations: • A 2023 study by Sophos revealed that a staggering 69% of state and local government organizations reported being hit by ransomware in that year. This translates to a high possibility of disruptions in critical services offered by these agencies. Data Encryption: • The Sophos study also found that data encryption, a hallmark of ransomware attacks, was at its highest in three years within the local government sector. This means a high chance of sensitive data being locked by attackers unless a ransom is paid. I Tr D E P..A-.-R.T, MENT While our team is small, the City of Port Orchard IT Department is dedicated to providing exceptional service and innovative solutions that empower our city government and enhance the lives of our residents. We are committed to excellence in all areas, from maintaining secure and reliable technology infrastructure to developing user- friendly applications that streamline city services. Through continuous learning, collaboration, and a focus on innovation, we strive to be a leader in municipal technology, ensuring our city thrives in the ever -evolving digital age. • Ile ............ . .. . .. . .......... . .. OR c,m 11% jr I ir ■ 11 LiLijAhap • • ■ Funding Sources Current Project Budget Current Budget Available Remaining Budget Amendment nd 001/002 to 304 $0 $0 $421743 nd 304-WSDOT TIB Grant IIm $650,000 $650,000 $0 nd 111-Transportation pact (TIF) 144,050 $64,350 $3651207 Fund 304-Street Construction Balance $40,000 $40,000 $0 Fund 411 to 413-Water Capital $100,000 $100,000 $137,000 Fund 433-Sewer Capital $500,000 $500,000 $209,000 Total $1,434,050 $1,354,350 $753,950 New Project Budget $42,743 $650,000 $509,257 $40,000 $237,000 $709,000 $ 2,188, 000