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City of Tukwila <br />Allan Ekberg, Mayor <br />INFORMATIONAL MEMORANDUM <br />TO: Finance Council Committee <br />FROM: Peggy McCarthy, Finance Director <br />BY: Vicky Carlsen, Deputy Finance Director <br />CC: Mayor Ekberg <br />DATE: January 23, 2019 <br />SUBJECT: Correct math error in ordinance that adopted 2019-2020 biennial budget <br />ISSUE <br />The ordinance that adopted the 2019-2020 biennial budget contained a math error in the general <br />fund. The general fund budget did not include Council's intent regarding the property tax or sales <br />tax revenue budget. <br />BACKGROUND <br />At the work session with Council held on October 24, 2018 staff provided updated information on <br />both property tax and sales tax revenue. <br />The City had received updated property tax information from King County indicating that the <br />property tax revenue budget could be increased by $250 thousand. Additionally, sales tax <br />revenue in 2018 was exceeding budget by $132 thousand and exceeded prior year revenue by <br />$1.26 million. Due to the increased sales tax collections, the budget for sales tax in 2019 was to <br />be increased by $650 thousand. <br />There was Council consensus to include these increases in the budget adoption ordinance. The <br />ordinance to adopt the budget was approved by Council on December 3, 2018. <br />DISCUSSION <br />Due to a math error when drafting the budget ordinance, both the increase to property tax and <br />sales tax revenue budgets were not included in the final ordinance presented to Council. This <br />error impacted both 2019 and 2020 budgets and resulted in a general fund budget that was <br />adopted $1.8 million less than it should have been. <br />2019 2020 <br />Property tax $250k $250k <br />Sales tax 650k 650k <br />$900k $900k <br />All other changes requested by Council were included in the budget ordinance. This ordinance <br />is not amending the adopted budget, it corrects a math error. By correcting the math error, the <br />budget will fully reflect Council's intent. <br />RECOMMENDATION <br />Staff is asking that this item be forwarded to the February 4, 2019 Regular Meeting for adoption. <br />ATTACHMENTS <br />Draft ordinance. <br />7 <br />