HomeMy WebLinkAboutFIN 2024-03-25 COMPLETE AGENDA PACKETCity of Tukwila
Finance and Governance
Committee
O De'Sean Quinn, Chair
O Tosh Sharp
O Jovita McConnell
AGENDA
MONDAY, MARCH 25, 2024 — 5:30 PM
Distribution:
D. Quinn
T. Sharp
J. McConnell
Mayor McLeod
M. Wine
A. Youn
L. Humphrey
ON -SITE PRESENCE:
TUKWILA CITY HALL
HAZELNUT CONFERENCE ROOM
6200 SOUTHCENTER BOULEVARD
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Item
Recommended Action
Page
1.
BUSINESS AGENDA
a. An ordinance updating the City Tax Codes.
a.
Forward to 4/8 C.O.W. and
Pg.1
Adam Schierenbeck, Sr. Fiscal Coordinator - B&O Tax
4/15 Regular Mtg.
b. Monthly General Fund Expenditure update.
b.
Discussion only.
Pg.33
(February 2024)
Tony Cullerton, Deputy Finance Director
c. 2023 3rd Quarter Financial Report.
c.
Discussion only.
Pg.41
Tony Cullerton, Deputy Finance Director
d. American Rescue Plan Act (ARPA) recap.
d.
Discussion only.
Pg.77
Julie Hatley, ARPA Funds Analyst
2.
MISCELLANEOUS
Next Scheduled Meeting: April22, 2024
S. The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk@TukwilaWA.gov) for assistance.
City of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance and Governance Committee
FROM: Vicky Carlsen, Finance Director
BY: Adam Schierenbeck, Senior Fiscal Coordinator
CC: Mayor McLeod
DATE: March 18, 2024
SUBJECT: City Taxes - TMC Amendments
ISSUE
Staff are proposing various housekeeping -type amendments to administer the admission,
commercial parking, gambling, and utility tax more effectively. These proposed amendments
include, but are not limited to, applying uniform penalty and interest rates; applying a uniform
lookback period for tax assessments and refunds; and providing uniform enforcement
provisions, confidentiality provisions, and the ability for the Finance Director to establish tax
rules. Staff are also proposing to add business and occupation (B&O) exemptions for public
utilities that were previously intended to apply, as well as codify an admission tax exemption for
the activity of bowling and related equipment rental (e.g., bowling balls and shoes). Finally, staff
recommend amending certain definitions to remove ambiguity and provide greater clarity and
consistency.
BACKGROUND
On December 4, 2023, the City Council passed Ordinance No. 2727, establishing additional
B&O tax exemptions and additional administrative provisions that apply to the City's B&O tax, to
aid the City in equitably administering and enforcing the tax. See generally chapters 3.26 (B&O
Tax) and 3.27 (B&O Tax Administrative Provisions) of the Tukwila Municipal Code (TMC). Since
the passage of Ordinance No. 2727, an oversight was found that makes certain utility
businesses subject to both B&O tax and utility tax. It is recommended that the TMC be
amended consistent with the model B&O ordinance so that public utilities subject to the utility
tax are exempt from B&O tax.
In addition to the B&O tax, the City also imposes other taxes, such as admission and
entertainment tax (chapter 3.20 TMC), commercial parking tax (chapter 3.48 TMC), gambling
activities tax (chapter 3.08 TMC), and utility tax (chapter 3.54 TMC). These tax chapters
currently lack adequate enforcement provisions and are silent on issues that are currently
addressed in the B&O tax administrative code and would benefit from sharing the same
administrative provisions as the B&O tax.
On November 28, 2022, when the City Council initially adopted the B&O tax and related
administrative provisions by Ordinance No. 2689, a financial hardship appeal provision was
included that deviated from the model ordinance. Upon further review by the City Attorney's
Office, it has been determined that it would be difficult for the Finance Director to effectively and
consistently administer such a provision. Therefore, it is recommended that the financial
hardship provision be repealed.
Finally, upon reviewing the definitions by which tax is levied on admission and entertainment
charges, commercial parking, and utility activities, it has also been determined that there is
ambiguity within some of the existing definitions, as well as ambiguity relating to how cellular
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INFORMATIONAL MEMO
Page 2
telephone service revenues should be allocated to the City. This review further concluded that
an admission tax exemption should be specifically granted for bowling activities to align with the
City's past practice and the common practice of neighboring cities who also exempt bowling
activities and related rental fees from the admission and entertainment tax.
DISCUSSION
Staff are proposing the following code amendments to administer the admission tax, commercial
parking tax, gambling tax, and utility tax more effectively. The proposed amendments also will
align certain definitions and exemptions with other Washington cities and Tukwila's past practice
administering the various tax codes.
Definition Changes
The following definition changes are recommended, which are common to neighboring cities
that levy similar taxes, remove ambiguity, and provide corrections to outdated terminology.
1. Admission & Entertainment Tax:
a. Amend the definition of "admission charge" to include those activities for which
"recreation" or amusement is provided, as provided in RCW 35.21.280, and to
clarify the activities subject to tax as provided for in the existing definitions.
b. Adding other definitions to clarify the activities and organizations for which the tax
does or does not apply.
2. Commercial Parking Tax: Amend the definitions to clarify the activities to which the
commercial parking tax applies.
3. Utility Tax: Provide updated definitions for "telephone business." Equivalent changes
were made by the State of Washington in 2007 to conform Washington's tax structure to
the Streamlined Sales and Use Tax Agreement and, in 2002, to the federal Mobile
Telecommunications Sourcing Act for the purpose of establishing uniform nationwide
sourcing rules for state and local taxation of mobile telecommunication services (see SB
6539 — 2001-02). At the time, the state legislature recognized that the clarifications are
likely revenue -neutral at the state level.
Additional Exemptions
The following additional exemptions are recommended, as they are common to neighboring
cities that impose similar taxes. In the case of public utilities subject to utility taxes and/or
franchise fees, the exemption from B&O tax is mandated by the B&O tax model ordinance.
• Admission tax exemption for participating in bowling and related equipment rental.
• B&O tax exemption for gross income derived from public utility activities on which a
franchise fee is imposed by the City (e.g., water and sewer utilities), and for solid waste
collection activities that are subject to the City's utility tax.
Tax Administrative Provisions
The Washington B&O tax model ordinance provides several administrative provisions that were
previously enacted to effectively administer and enforce the B&O tax. These same
administrative provisions are commonly used by other cities to administer other city -imposed
taxes. The City hereby seeks to expand the current B&O tax administrative provisions to the
admission & entertainment tax, commercial parking tax, gambling activities tax, and utility tax.
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INFORMATIONAL MEMO
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Where similar provisions currently exist within the various tax chapters in Title 3 TMC, staff is
recommending that these be repealed to avoid ambiguity, as they will be covered in chapter
3.27 TMC, Administrative Provisions. This will provide for the following consistency across most
tax types:
• Establish a uniform lookback period for tax assessments and refunds.
• Establish uniform penalty and interest rates for delinquent taxes (and tax refunds). This
includes uniform provisions by which late return penalties may be waived by the City.
• Establish uniform rules regarding successorship, and tax liability of a successor.
• Establish a uniform policy regarding required record -keeping of persons engaging in
business in the City, including the requirement to furnish any records or information
requested by the City to verify a tax liability, and related enforcement provisions.
• Establish a uniform administrative appeal procedure, and the right to judicial review if the
City or the taxpayer disagree with the decision of the hearing examiner.
• Grant the Finance Director the authority to adopt, publish, and enforce tax rules and
regulations, which helps to ensure transparency and reduce tax reporting errors.
• Grant the Finance Director the authority to enter into agreements with other Washington
cities that impose similar taxes. This helps to ensure that taxpayers are not taxed twice on
the same amount in multiple cities and allows for joint audits to ensure that tax is being
applied consistently between cities.
• Specify that the taxes are in addition to other city -imposed taxes and license fees, as
applicable.
• Maintain confidentiality of tax information. This ensures that tax information, such as tax
returns, correspondence, and records obtained in an audit is not subject to public disclosure.
The City is still permitted to share basic information, such as a business's name, address,
and open/closed status, and to publish general statistics.
• Specify that it is unlawful to fail to comply with the requirements of the taxes levied in Title 3
TMC, and a violation constitutes a gross misdemeanor. This provision is intended to prevent
tax evasion, misrepresentation, and continuing to operate with a revoked business license
and/or delinquent back taxes owing.
• Specify that the Director has authority to revoke a business license for failure to comply with
the tax provisions in Title 3 TMC, according to the suspension and revocation procedures
set forth in Chapter 5.04 TMC.
• Grant the Finance Director authority to enter into a closing agreement with a taxpayer, to
avoid litigation in cases in which the outcome is largely uncertain.
• Grant the Finance Director authority to charge off uncollectible amounts due based on
established criteria.
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INFORMATIONAL MEMO
Page 4
Additional Provisions
In addition to the changes noted above, staff are recommending that the following provisions be
added to or removed from the City's tax codes, to align with neighboring cities:
• Provide that unpaid gambling tax and associated penalties and interest become a lien upon
personal and real property used in the gambling activity in the same manner as provided for
under RCW 84.60.010.
• Remove the requirement for persons to submit a copy of the business license application
filed with the Washington State Gambling Commission prior to engaging in gambling
activities. Chapter 3.08 already provides that persons must furnish a copy of the license
issued by the State Gambling Commission prior to engaging in business within the City.
• Provide that commercial parking tax is held in trust by the business responsible for collecting
and remitting the tax, and the amount of tax must be disclosed to the person paying the tax.
• Provide a specific method by which gross income from cellular telephone service is
allocated to the City. While an equivalent result would likely apply absent this addition, it
provides clarity for businesses and is a common provision found among neighboring cities.
• Repeal the financial hardship appeal provision from the B&O tax administrative provisions.
This code section was added at the time the B&O tax was adopted in 2022. It deviated from
the model ordinance and, upon further review by the City Attorney's Office, it has been
determined that such a provision would be difficult for the Finance Director to effectively and
consistently administer.
FINANCIAL IMPACT
The code changes will not have a significant financial impact on tax revenues. Although B&O
tax exemptions are being added for water utilities and solid waste collection businesses, these
businesses previously have been presumed to be exempt from B&O tax on account of the
model ordinance. The financial impact of the changes to penalties and interest for admission,
gambling, parking, and utility tax cannot be determined based on the information available.
RECOMMENDATION
Review and respond to the proposed redlined code changes. The Council is being asked to
consider this item at the April 8, 2024 Committee of the Whole meeting and adopt the ordinance
at the subsequent April 15, 2024 Regular Meeting.
ATTACHMENTS
A. Draft Ordinance
4
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON; AMENDING AND REPEALING
VARIOUS ORDINANCES AS CODIFIED IN VARIOUS SECTIONS
OF TUKWILA MUNICIPAL CODE (TMC) CHAPTERS 3.08,
"GAMBLING ACTIVITIES TAX," 3.20, "ADMISSIONS AND
ENTERTAINMENT TAX," 3.27, "BUSINESS AND OCCUPATION
ADMINISTRATIVE PROVISIONS," 3.48, "COMMERCIAL
PARKING TAX," 3.50, "UTILITY TAX," AND 3.51, "SOLID
WASTE UTILITY TAX"; RETITLING TMC CHAPTERS 3.20 AND
3.27; ESTABLISHING AND APPLYING ADMINISTRATIVE AND
OTHER PROVISIONS UNIFORMLY AMONG THE VARIOUS
BUSINESS TAXES; CLARIFYING THE ACTIVITIES SUBJECT TO
ADMISSION TAX, BUSINESS AND OCCUPATION TAX,
PARKING TAX, AND UTILITY TAX; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on November 28, 2022, the City Council adopted Ordinance No. 2689
establishing a business and occupation (B&O) tax on business activities within the City;
and
WHEREAS, on December 4, 2023, the City Council adopted Ordinance No. 2727,
establishing additional administrative provisions that aid the City in administering and
enforcing the B&O tax; and
WHEREAS, the City imposes other business taxes, including a tax on gambling
activities, admission and entertainment activities, commercial parking, and utilities, for
which applying the same administrative provisions would serve to meet the City's own
objectives and equitably and consistently administer these taxes; and
WHEREAS, the City seeks to exempt all public utility activities that are subject to a
utility tax or a franchise fee within the City from the B&O tax levied in Tukwila Municipal
Code (TMC) Chapter 3.26, "Business and Occupation Tax," thereby establishing
uniformity with other Washington cities; and
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WHEREAS, the City seeks to clarify the activities to which the admission and
entertainment tax, commercial parking tax, and telephone utility tax applies within TMC
Chapters 3.20, 3.48, and 3.50, respectively; and
WHEREAS, the City seeks to develop consistency among the various tax provisions
in TMC Title 3, "Revenue and Finance," to enhance clarity and consistency of the tax
requirements;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Regulations Established. A new TMC Section 3.08.015 is hereby
established to read as follows:
3.08.015 General Administrative Provisions Apply
The administrative provisions contained in TMC Chapter 3.27 shall be fully applicable
to the provisions of this chapter, except as expressly stated to the contrary herein. The
administration and collection of tax imposed by this chapter shall be by the Finance
Director and in strict compliance with the rules and regulations, as may be adopted or
amended by the Washington State Gambling Commission from time to time.
Section 2. TMC Section 3.08.020 Amended. Ordinance No. 1809 §1 (part), as
codified at TMC Section 3.08.020, "License Required — Nuisance Designated," is hereby
amended to read as follows:
3.08.020 Filing Declaration of IntentLicens`-Req d - Nuisa„ce Designated
For the purpose of identifying who shall be subject to the tax imposed by this chapter,
any person, association, or organization intending to conduct or operate any gambling
activity as authorized by chapter 9.46 RCW, as now existing and hereafter amended,
shall, prior to commencement of any such activity, file with the Finance Director a sworn
declaration of intent to conduct or operate such activity, together with a true and correct
copy of the license issued by the Washington State Gambling Commission in accordance
with chapter 9.46 RCW. "'No gamh' —activity ^f any 'sing ^r n` t ire chill h^ permitted
without a valid, subsisting license issued by the Washington State Gambling Commission
activity without such liccnsc shall be guilty of a misdemeanor. The conducting of any such
required undcr Statc laws is a common nuisance hall b^ subject to abatement b„
injunction or as otherwise provided by law
Section 3. Regulations Established. A new TMC Section 3.08.025 is hereby
established to read as follows:
3.08.02a DefiniLIUlI,
The definitions contained in TMC Chapter 3.27 shall have full force and application
with respect to taxes imposed under the provisions of this chapter, except as expressly
stated to the contrary herein or defined otherwise in chapter 9.46 RCW.
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For purposes of this chapter, "social card game business" means any premises or
facility open to the public and engaged in the business of operating a social card room for
a period of 30 days. For purposes of this section, the 30 days are not required to be
consecutive days. After 30 days of operation, the tax rate provided in TMC Section
3.08.030(4) applies and that rate shall be paid thereafter beqinning with the following
calendar quarter.
Section 4. TMC Section 3.08.030 Amended. Ordinance Nos. 1809 §1 (part), 2349
§2, and 2590 §1 (part), as codified at TMC Section 3.08.030, "Tax Rates," is hereby
amended to read as follows:
3.08.030 Tax LeviedRates
A. Pursuant to RCW 9.46.110, as it exists or may hereafter be amended and RCW
9 46 'I n as amend the aws of Washington �ective July �997 there is levied
v : T�r'L , um�rra �� O1T ccavc-July, v-r,
upon all persons, associations and organizations operating with the City who have been
duly licensed by the Washington State Gambling Commission, as authorized by law, the
following tax:
1. For Bingo games and raffles: To conduct or operate any bingo games and
raffles, a tax rate of five percent (5%) of the gross receipts revenue received therefrom,
less the actual amount awarded paid by such person association or organization for or
as cash or merchandise prizes.
2. For Amusement game: To conduct any amusement games, a tax rate of two
percent (2%) of the gross receiptsrevenue received therefrom, less the actual amount
awarded paid by such person association or organization for or as prizes.
3. Punchboards or pulltabs: For the conduct or operation of any punchboards
or pulltabs, a tax rate of five percent (5%) of the gross receipts from such activities for
commercial stimulant operators (taverns, restaurants, etc.); and a tax rate of ten percent
10%) on the gross receipts, less the amount awardedpaid out as prizes for charitable or
nonprofit organizations.
4. Social card games: a. For the conduct or operation of any premises or facility
used to play social card games business, a tax rate of eleven percent (11 %) percent of
the gross receipts received therefrom; provided that when the number of card rooms in
the City exceeds five, the tax rate shall increase to fifteen percent (15%) percent of the
gross receipts received therefrom. Additionally, when the number of card rooms exceeds
six, the tax rate shall increase to twenty percent (20%) of the gross receipts received
therefrom. b. For purposes of this provision, an operating business is defined as: a
the Finance Director or his or her designee, shall notify the social card rooms of the
starting the financial quarter after notification.
B. Non Profit Organizations.
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1. No tax shall be imposed under the authority of TMC Chapter 3.08 on bingo
charitable or nonprofit organization as defined in RCW 9.46.0209, which organization has
2. The Finance Director may waive the tax due ch quarter from a bona fide
charitable or nonprofit organization as defined in RCW 9.46.0209. This waiver may occur
0
pursuant to TMC Section 3.08.030, will be donated to charitable nonprofit organizations
serving the City whose purpose is to provide programs or facilities for meeting the basic
future tax payments.
Section 5. Regulations Established. A new TMC Section 3.08.035 is hereby
established to read as follows:
3.08.035 Exemptions — Nonprofit Organizations
A. No tax shall be imposed under the authority of TMC Chapter 3.08 on bingo or
raffles when such activities or any combination thereof are conducted by any bona fide
charitable or nonprofit organization as defined in RCW 9.46.0209, which organization has
no paid or management personnel, and has gross income from bingo and raffles, or any
combination thereof, not exceeding $5,000 per year, less the amount awarded for, or as
prizes.
B. The Director may waive the tax due each quarter from a bona fide charitable or
nonprofit organization as defined in RCW 9.46.0209 if the charitable or nonprofit
organization demonstrates by clear and convincing documentation that an amount equal
to at least 70 percent of the tax due the City, as computed pursuant to TMC Section
3.08.030, will be donated to charitable nonprofit organizations serving the City whose
purpose is to provide programs or facilities for meeting the basic health, education,
welfare, or other needs of the residents of the City. Failure to donate at least 70 percent
of the tax due the City will result in revocation of the waiver and the disqualification of the
bona fide charitable or nonprofit organization to receive a waiver for future tax navments.
Section 6. TMC Section 3.08.050 Amended. Ordinance No. 1809 §1 (part), as
codified at TMC Section 3.08.050, "Administration and Collection of Tax," is hereby
amended to read as follows:
3.08.050 Administration and Collection of Tax Payment — Activity Report
A. The tax imposed by this chapter shall be due and payable in quarterly
installments, and remittance therefor, together with the return forms as prescribed by the
Director, shall be made on or before the last day of the month following the quarterly
period in which tax is accrued.
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Page 4 of 27
B. Every holder of a license issued by the Washington State Gambling Commission
who conducts any taxable gambling activities within the City shall provide to the City a
true copy of each periodic activity report, license report, or amendments thereto required
to be filed with the State Gambling Commission pursuant to Chapter 230-05 WAC. Such
information shall be provided to the City no later than the date of filing required by the
State Gambling Commission.The adminis rati„n and c ecct n of tax impoco y-
chapter shall be by the Finance Director and in strict pursuance of the rules and
regulations as may be adopted by the Washington State Gambling Commission from time
be reasonably necessary to enable the collection of the tax imposed hereby.
Section 7. Repealer. Ordinance No. 1809 §1 (part), as codified at TMC Section
3.08.060, "Declaration and Statements Required to be Filed," is hereby repealed, thereby
eliminating this section:
3.08.060 Declaration and Statements Required to be Filed
A. For the purpose of properly identifying the person, association and organization
temporary license.
B. Thereafter, for any period covered by such State license or any renewal or
the Finance Director a sworn statement, under penalty of perjury, on a form to be provided
and prescribed by the Finance Director for the purpose of ascertaining the tax due for the
preceding quarterly period.
Finance Director copies of any daily, weekly m„nthly or other periodic tax statements
other information required to be filed by it to the State of Washington Gambling
Commission.
D. The Chief of the Police Department may establish such further and additional
gambling activities in the City which are reasonably intended to provide information to the
City regarding the conduct of said activities
Section 8. Repealer. Ordinance No. 1809 §1 (part), as codified at TMC Section
3.08.070, "Filing of Application with Finance Director," is hereby repealed, thereby
eliminating this section:
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Gambling Commissinshal kew ;mit to the Finance Director a true and correct
amendments thereof. Such copy shall be submitted at or prior to the filing of the first tax
return due under this chapter.
Section 9. Repealer. Ordinance Nos. 1809 §1 (part), 2323 §3, and 2349 §3, as
codified at TMC Section 3.08.080, "Payment of Tax — Penalty for Late Payments," is hereby
repealed, thereby eliminating this section:
3.08.080 Payment of Tax Penalty for Late Payments
A. The tax imposed by this chapter shall be due and payable in quarterly
a
the tax per month for each month overdue, which shall be added to the amount of the tax
due.
Section 10. TMC Section 3.08.090 Amended. Ordinance No. 1809 §1 (part), as
codified at TMC Section 3.08.090, "Unlawful Acts Designated — Liability," is hereby amended
to read as follows:
3.08.090 Unlawful Acts Designated — Liability — Tax Constitutes Debt
A. Any person, association or organization that shall fail, neglect or refuse to pay
the tax required by this chapter, or that shall willfully disobey any rule or regulation
promulgated by the Finance Director under this chapter, shall be guilty of a misdemeanor,
and upon conviction thereof shall be punished by imprisonment in the City jail for not more
than 90 days or by a fine of not more than $51,000.00 or both. Any such fine shall be in
addition to any tax and penalties and interest required.
B. All officers, directors and managers of any organization or association
conducting gambling activities shall be jointly and severally liable for the payment of said
tax penalties,. and interest for the payment of any fine imposed under this chapter.
C. Any tax due and unpaid under this chapter and all penalties and/or interest shall
constitute a debt to the City. The City may use a collection agency to collect outstanding
debts, or it may seek collection by court proceedings, which remedies shall be in addition
to all other existing remedies. Furthermore, pursuant to RCW 9.46.110(4), taxes imposed
under this chapter and associated penalties and/or interest become a lien upon personal
and real property used in the gambling activity in the same manner as provided for under
RCW 84.60.010. The lien shall attach on the date the tax becomes due and shall relate
back and have priority against real and personal property to the same extent as ad
valorem taxes.
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Section 11. Repealer. Ordinance No. 1809 §1 (part), as codified at TMC Section
3.08.100, "Finance Director - Powers and Duties," is hereby repealed, thereby eliminating
this section:
3.08.100 FinanGe-lairecter—Powers and Duties
The Finance Dircctor or u thorized-representaf hall adop+ p, ihlish and enforce
and icSsue the appropriate forms for determination and declaration of the amount of tax to
agencies for the collection of the tax -imposed on gambling activities conducted within the
Section 12. TMC Section 3.08.110 Amended. Ordinance No. 1809 §1 (part), as
codified at TMC Section 3.08.110, "Enforcement Authority - Access to Financial Records,"
is hereby amended to read as follows:
3.08.110 Enforcement Authority - Access to Financial Records
A. The Mayor, Finance Director, and Chief of Police shall have the power to enter
into contracts with other municipalities and/or State agencies for the enforcement of
applicable State laws, rules and regulations and City ordinances relating to all gambling
activities.
B. It shall be the responsibility of each person, association, or organization aty
Ter director and? manager of any „rganizati„n conducting any gambling activity as
licensed by the Washington State Gambling Commission and taxed under the provisions
of this chapter, to maintain and provide access at all reasonable times to all books,
records, and information required financial records, including bank deposits, invoiccs,
accounts payablc and related financial statements, as the Finance Director or his/her
may require in order to determine full compliance with this chapter and all rules and
regulations adopted or hereafter adopted by the State of Washington Gambling
Commission. Such records shall be kept and maintained for a period of not less than five
years. In addition, all information and items required by the Washington State Gambling
Commission, and the United States Internal Revenue Service respecting taxation, shall
be kept and retained for the periods required by those agencies.
C. The Director and Chief of the Police Department may establish such further and
additional reporting requirements of any person, association or organization authorized
to conduct gambling activities in the City which are reasonably intended to provide
information to the City regarding the conduct of said activities.
Section 13. TMC Section 3.08.130 Amended. Ordinance No. 1809 §1 (part), as
codified at TMC Section 3.08.130, "List of Licenses to be Kept," is hereby amended to read
as follows:
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3.08.130 List of Licensees to be Kept
It shall further be the responsibility of the Finance Director to keep on file a complete
and up-to-date list of the licensees issued authorized by the Washington State Gambling
Commission who operate within the City, as the same is made available at said office,
which information shall include the name, address, type of license and license number of
each such licensee. Nothing in this provision shall require the City to seek or obtain
licenses from the Gambling Commission.
Section 14. Chapter Title. Ordinance No. 1733, as codified at TMC Chapter 3.20,
"Admissions and Entertainment Tax," is hereby amended to retitle the chapter as follows:
CHAPTER 3.20
ADMISSIONS AND -ENTERTAINMENT -TAX
Sections:
3.20.005 General Administrative Provisions Apply
3.20.010 Admission Charge Definitions
3.20.020 Admissions Tax Levied - Measure of Tax
3.20.025 Exemptions
3.20.030 Determination of Amount
3.20.035 Tax Payment and Collection
3.20.040 Collection Remittance to Finance Director
3.20.050 Application and Reporting
3.20.060 Violations
Section 15. Regulations Established. A new TMC Section 3.20.005 is hereby
established to read as follows:
3.20.005 General Administrative Provisions Apply
The administrative provisions contained in TMC Chapter 3.27 shall be fully applicable
to the provisions of this chapter, except as expressly stated to the contrary herein.
Section 16. TMC Section 3.20.010 Amended. Ordinance Nos. 1733 §1 and 2080
§1, as codified at TMC Section 3.20.010, "Admission Charge - Definitions," is hereby
amended to read as follows:
3.20.010 Admission Charge=Definitions
A. "Admission charge," in addition to its usual and ordinary meaning, means a
monetary charge for entering a premise or location_, shall includinqe but not be limited to,
the following:
1. A charge made for season tickets or subscriptions;
2. A cover charge or a charge made for use of seats or tables, reserved or
otherwise, and similar accommodations.
2. A charge made for rental or use of equipment or facilities for purposes of
entertainment recreation or amusement and, where the rental of the equipment or
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facilities is necessary to the enjoyment of the privilege for which general admission is
charged, the combined charge shall be considered as the admission charge.
43. A charge made for entertainment activities or admission to any theater,
dance hall, cabaret, tavernadult entertainment cabaret, private club, auditorium, stadium,
athletic pavilion or field, circus, side show, outdoor amusement park or any similar place;
and includes equipment to which persons are admitted for purposes of entertainment
recreation including, but not limited to, such as merry-go-rounds, Fferris wheels, dodge
'ems, roller coasters, go:carts and other rides, whether such rides are restricted to tracks
or not.
5. A charge made for entrance to any building, enclosure or area in which there
is a golf driving range, miniature golf course, short nine, or other golf course, or to gain
entrance to such course itself, or for the use of the facilities thereof, or any rental paid by
the person paying for such entry for the use of equipment and facilities supplied him and
appropriate to the enjoyment of the privilege for which the admission is charged, or the
aggregate thereof.
B. "Cabaret" shall have the same meaning as defined in TMC Section 5.08.010.
C. "Governmental entity" means any federal, state, or local government, or branch
thereof, also includes any public facility or any public facility, service, or utility district that
is exempt from federal income taxation pursuant to Section 501(c)(1) or (3) of the Internal
Revenue Code, as adopted or as amended.
D. "Nonprofit organization" means an organization that is exempt from federal
income tax under Section 501(c)(3), (4), or (6) of the Internal Revenue Code, as adopted
or amended, or is specifically exempted from the requirement to apply for tax exempt
status under Section 501(c)(3).
E. "Secondary school" or "elementary school" means any public or private primary
school, middle school, junior high school, high school, or any accredited college, junior
college, university, or the recognized student body association thereof.
4. A sum or money referred to as "a donation" which must be paid before
entrance is allowed.
5. "Admission charge" does not include public school activities and other non
profit endeavors.
Section 17. TMC Section 3.20.020 Amended. Ordinance Nos. 1733 §2, 2080 §2,
and 2674 §1, as codified at TMC Section 3.20.020, "Admissions Tax Levied," is hereby
amended to read as follows:
3.20.020 Admissions Tax Levied— Measure of Tax
A. There is levied and shall be collected a tax from every person, without regard to
age, who pays an admission charge to any place within city limits. The amount of tax
charged on admission charges shall be equal to the admission charge multiplied by the
rate of five percent. There is hereby levied a 5% tax on admissions for entertainment
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purposes in the City of Tukwila. Such tax is to continue indefinitely or until amended or
repealed by the City Council.
B. The admission charge to any cabaret or private club conducting cabaret
activities, or any similar place of entertainment, is deemed to be the total amount charged
as an admission charge, and/or a charge made for the use of seats and tables reserved
or otherwise, and other similar accommodations. A participation cost or minimum
purchase of food and/or beverages in lieu of a cover charge is deemed a taxable
admission charge. The transfer of admissions tax from the Fostcr Golf Links Fund to tho
General Fund shall be waived: Beginning in the 2019 2020 budget biennium, the City of
revenues collected by the Foster Golf Course shall be allocated to the Foster Golf Link
C. When entertainment or admission to an event or activity accompanies the sale
of food and/or beverages, merchandise, lodging, or services, admission taxes are
measured by the total price of the combined transaction, unless the admission price for
the entertainment, amusement, rental, or use of equipment is printed separately on the
ticket, invitation, or other signage and reflects its true market value as an independent
element.
D. If the ticket price is accompanied by a service charge, mailing fee or other
ancillary payment, per ticket and/or per order, the admission tax shall be based upon the
total sum of the admission price plus any such surcharge(s), whether or not they are
printed on the ticket order.
Section 18. Regulations Established. A new TMC Section 3.20.025 is hereby
established to read as follows:
3.20.025 Exemptions
A. The admissions tax imposed in this chapter shall not apply to anyone paying an
admission charge as follows:
1. To an elementary school, secondary school, governmental entity, or
nonprofit organization. However, governmental activities operated in the manner of a
separate business enterprise shall not be exempt from this tax. By way of example and
not limitation, a business enterprise subject to the admissions tax imposed in this chapter
could include an event center or golf course, if operated as a business activity in a
separate fund; or
2. To actively participate in bowling or to rent bowling shoes or equipment.
3. Beginning in the 2019 - 2020 budget biennium, the City of Tukwila's General
Fund will forego collection of admissions tax from Foster Golf Course until legislative
action is taken to reinstate said collection and, further, admissions tax revenues collected
by the Foster Golf Course shall be allocated to the Foster Golf Link Fund until legislative
action is taken to reallocate such revenues to the General Fund.
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Section 19. Repealer. Ordinance No. 1733 §3, as codified at TMC Section 3.20.030,
"Determination of Amount," is hereby repealed, thereby eliminating this section:
3.20.030 DeterminTatiion of Amount
or entertainment charge.
B. Cabarets and similar places The admission charge to any cabaret, adult
charge is deemed a taxable event.
6�:gas$este"a--..'.�.ene�e�-a��ge�s-m^'ssieawe-a sign
city admission tax is included in the admission charge.
Section 20. Regulations Established. A new TMC Section 3.20.035 is hereby
established to read as follows:
3.20.035 Tax Payment and Collection
A. The tax imposed by this chapter shall be due and payable in monthly
installments, and remittance therefor, together with the return forms as prescribed by the
Director, shall be made by the last day of the month following the end of the monthly
period in which tax is accrued.
B. The tax levied in this chapter shall be paid by the person paying the admission
charge and remitted by the person to whom the same is paid. The tax collected under this
chapter shall be deemed held in trust by the person required to collect the same until the
taxes are remitted to the Director under this section. Persons failing to collect the
admission tax, or who collects the tax but fails to remit it to the Director, shall be liable to
the City for the amount of such tax and associated penalties and/or interest due.
C. If the amount of admissions tax is not separately stated from the admission
charge on all instruments evidencing the admission charge, a sign shall be posted in a
conspicuous place on the entrance or ticket office stating that a City admissions tax of
five percent is included in the admission charge. Except when the requirements of this
subsection are satisfied, it shall be conclusively presumed that the admission charge does
not include the admission tax levied in this chapter.
D. Whenever any theater, circus, show, exhibition, entertainment or amusement
makes an admission charge which is subject to the tax herein levied, and the same is of
a temporary or transitory nature or there exists a reasonable question of financial
responsibility, of which the Director shall be the judge, the report and remittance of the
admissions tax may be required immediately upon the collection of the same, at the
conclusion of the performance or exhibition, or at the conclusion of the series of
performances or exhibitions.
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Section 21. Repealer. Ordinance No. 1733 §4, as codified at TMC Section 3.20.040,
"Collection — Remittance to Finance Director," is hereby repealed, thereby eliminating this
section:
3.20.040 Collection Remittance to Finance Director
A. The tax imposed hereunder shall be collected from the person paying the
remitted by the person collecting the tax to the Finance Director in monthly remittances
on or before the last day of the month succeeding the end of the monthly period in which
shall require.
showing the amount of the tax upon admissions for which he is liable for the preceding
monthly period, and shall sign and transmit t�same to the Finance Director with a
forth such additional information as he may deem necessary to determine correctly the
amount of tax collected and payable.
C. If the return provided for heroin is t made and transmiitted and the tax is noot
collected and remitted to the City by the last day of the month succeeding the end of the
month in which the tax was collected, the Finance Director shall add a penalty of 10% of
the tax per month or fraction thereof for each month overdue, which shall be added to the
amount of the tax due, and remitted in the same manner.
D. Whenever any theater, circus, show, exhibition, entertainment or amusement
a temporary or transitory nature or there exists a r sonable question of financial
responsibility, of which the Finance Director shall be the judge, the report and remittance
of the admission tax may be required immediately upon the collection of the same, at the
conclusion of the performance or exhibition, or at the conclusion of the series of
performances or exhibitions.
manifests, books and all other records from which can be determined the amount of
stleh-ticketsbee-ks-and-Feeefds-s-h-a-b-e-o-Pen-fer-examinatien-and-audit- at -all -reasonable
times by the Finance Director or his duly authorized agent.
Section 22. Repealer. Ordinance No. 1733 §5, as codified at TMC Section 3.20.050,
"Application and Reporting," is hereby repealed, thereby eliminating this section:
3.20.050 Application and Reporting
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A. Any person conducting or operating any place for entrance to which an admission
with the application, with the name and address of the owner, lessee or the custodian of
the premises upon which the amusement is to be conducted; and such owner, lessee or
custodian shall be notified of the issuance of such certificate and of his joint liability for
collection and remittance of such tax.
—G--11ec-romance Dire r shall a power to p rules and regula ski
shall be on file and available for public examination in the City Clerk's office.
Section 23. TMC Section 3.26.090 Amended. Ordinance Nos. 2689 §12 and 2727
§2 as codified at TMC Section 3.26.090, "Exemptions," subparagraph A, is hereby
amended to read as follows:
3.26.090 Exemptions
A. Gross receipts taxed under other Tukwila Municipal Code sections. This
chapter shall not apply to any person in respect to a business activity with respect to
which tax liability is specifically imposed under the provisions of TMC Chapter 3.08
(Gambling Activities Tax), TMC Chapter 3.50 (Utility Tax) or TMC Chapter 3.08 (Gambling
Activities Tax)3.51 (Solid Waste Utility Tax), or to gam utility activities subject to a
franchise fee under a franchise agreement with the City.
Section 24. Chapter Title. Ordinance No. 2689, as codified at TMC Chapter 3.27,
"Business and Occupation Tax Administrative Provisions," is hereby amended to retitle the
chapter as follows:
CHAPTER 3.27
TAX ADMINISTRATIVE PROVISIONS
Sections:
3.27.010 Purpose
3.27.015 Application of Chapter Stated
3.27.020 Definitions
3.27.021 Definitions - References to Chapter 82.32 RCW
3.27.025 Registration/License Requirements
3.27.040 When Due and Payable - Reporting Periods - Monthly,
Quarterly, and Annual Returns -Threshold Provisions or Relief
from Filing Requirements - Computing Time Periods - Failure to
File Returns
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3.27.050 Payment Methods — Mailing Returns or Remittances — Time
Extension — Deposits — Recording Payments — Payment Must
Accompany Return — NSF Checks
3.27.060 Records to be Preserved — Examination — Estoppel to Question
Assessment
3.27.070 Accounting Methods
3.27.080 Public Work Contracts — Payment of Fee and Tax Before Final
Payment for Work
3.27.090 Underpayment of Tax, Interest, or Penalty — Interest
3.27.095 Time in Which Assessment May Be Made
3.27.100 Over Payment of Tax, Penalty, or Interest — Credit or Refund —
Interest Rate — Statute of Limitations
3.27.110 Late Payment — Disregard of Written Instructions — Evasion —
Penalties
3.27.120 Cancellation of Penalties
3.27.130 Taxpayer Quitting Business — Liability of Successor
3.27.140 Administrative Appeal
3.27.145 Judicial Review of Administrative Appeal Decision
3.27.150 Hardship App al Procedure
3.27.160 Stakeholder Involvement
3.27.170 Review and Reporting Provisions
3.27.180 Director to Make Rules
3.27.190 Ancillary Allocation Authority of Director
3.27.200 Mailing of Notices
3.27.210 Tax Declared Additional
3.27.220 Public Disclosure — Confidentiality — Information Sharing
3.27.230 Tax Constitutes Debt
3.27.240 Unlawful Actions — Violations — Penalties
3.27.245 Suspension or Revocation of Business License
3.27.250 Closing Agreement Provisions
3.27.255 Charge -Off of Uncollectible Taxes
3.27.260 Severability
Section 25. TMC Section 3.27.010 Amended. Ordinance No. 2689 §17, as codified
at TMC Section 3.27.010, "Purpose," is hereby amended to read as follows:
3.27.010 Purpose
The purpose of this Chapter is to provide for the administrative guidelines and
provisions to administer and enforce the City's tax codes.procedures for the Business
proscribing penalties for noncompliance with the previsions of this chanter
Section 26. TMC Section 3.27.015 Amended. Ordinance No. 2689 §18, as codified
at TMC Section 3.27.015, "Application of Chapter Stated," is hereby amended to read as
follows:
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3.27.015 Application of Chapter Stated
The provisions of this Chapter shall apply with respect to the taxes imposed under
TMC Chapter 3.08 (Gambling Activities Tax), TMC Chapter 3.20 (Admissions Tax), TMC
Chapter 3.26 (Business and Occupation Tax), TMC Chapter 3.48 (Commercial Parking
Tax), TMC Chapter 3.50 (Utility Tax), and TMC Chapter 3.51 (Solid Waste Utility Tax),
and under other titles, chapters, and sections in such manner and to such extent as
indicated in each such title, chapter or section.
Section 27. Repealer. Ordinance No. 2689 §34, as codified at TMC Section 3.27.150,
"Hardship Appeal Procedure," is hereby repealed, thereby eliminating this section:
3.27.150 Hardship Appeal Procedure
The Director shall develop a financial hardship appeal procedure by January 1, 2024.
Section 28. TMC Section 3.27.245 Amended. Ordinance No. 2727 §14, as codified
at TMC Section 3.27.245, "Suspension or Revocation of Business License," is hereby
amended to read as follows:
3.27.245 Suspension or revocation of business license
The Director shall have the power and authority to suspend or revoke any license
issued under the provisions of TMC 5.04 if the licensee has failed to comply with the
provisions of any tax imposed by any of the chapters within this title and administered by
this chapter. and Chapter TMC 3.26 (businesc and occupation tax). Such suspension or
revocation shall follow the same procedure as provided in TMC Chapter 5.04.110 aid
TMC 5.04.112.
Section 29. Regulations Established. A new TMC Section 3.48.005 is hereby
established to read as follows:
3.48.005 General Administrative Provisions Apply
The administrative provisions contained in TMC Chapter 3.27 shall be fully applicable
to the provisions of this chapter, except as expressly stated to the contrary herein.
Section 30. TMC Section 3.48.010 Amended. Ordinance No. 2586 §3, as codified
at TMC Section 3.48.010, "Definitions," is hereby amended to read as follows:
3.48.010 Definitions
The following definitions shall apply throughout this chapter:
1. "Commercial parking business" means the ownership, lease, operation or
management of a commercial parking lot in which fees are charged for the act or privilege
of parking motor vehicles.
2. "Commercial parking lot" means a covered or uncovered area with stalls for the
purpose of parking motor vehicles.
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3. "Commercial parking" means any transaction or arrangement whereby a vehicle
is parked and a fee is charged for parking or allowed the vehicle to be parked, irrespective
of the length of time the vehicle is parked. Commercial parking shall include instances
where a fee is charged specifically for the parking of a vehicle. This shallinclude any
business which uses part or all of its area to park vehicles for a fee where no other service,
lodging or business is being provided or conducted in conjunction with the parking of the
vehicle. This shall include instances where a vehicle is parked or allowed to be parked,
and a separate fee is charged in connection with other services. Commercial parking shall
also include instances such as:
A. When a guest of a hotel, motel or other lodging establishment is allowed to
park or leave his/her vehicle before or after his or her lodging or business stay there so
that, for a fee, the guest's vehicle is parked at the hotel, motel or other lodging
establishment during days when the guest is no longer staying there. Commercial parking
shall also include instances such as
B. When a guest or visitor of a hotel, motel or other lodging establishment is
allowed to park or leave his/her vehicle before, during, or after his or her lodging or
business stay there that -f e' the guest's vehicle is parked at the hotel, motel or
other lodging establishment d ring days then +he g pest no longer staying there
C. Where a vehicle is parked or allowed to be parked, and where a fee would
be charged for the parking unless validated by a business because a customer makes a
purchase or otherwise transacts business for which a fee is paid.
4. "Parking tax" means the commercial parking tax imposed by this chapter.
Section 31. TMC Section 3.48.020 Amended. Ordinance No. 2586 §4, as codified
at TMC Section 3.48.020, "Exemptions," is hereby amended to read as follows:
3.48.020 Exemptions
The following exemptions to the commercial parking tax arc allowedapply:
1. Local employee parking, with parking spaces provided or reserved for use
by an employee who works within the City, where the employee parks his or her vehicle
in connection with his or her employment, without regard to whether arrangements or
payment for the parking is made by the employee or by his or her employer.
2. Apartments and condominiums, where parking is provided in conjunction
with arrangements for residential living spaces.
3. Offices, retail establishments, warehouses and industrial buildings,
where parking is provided in association with tenant arrangements for the use of such
facilities.
4. The tax shall not be levied on vehicles with official state disabled person
decals, government vehicles that are exempt from tax, and tax-exempt carpool vehicles.
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Section 32. TMC Section 3.48.030 Amended. Ordinance No. 2586 §5, as codified
at TMC Section 3.48.030, "Local Option Transportation Tax Imposed," is hereby amended
to read as follows:
3.48.030 Local Option Transportation Tax Imposed
Pursuant to RCW 82.80.030, Tthere is hereby levied a special local option
transportation tax to be imposed on every person a tax for the act or privilege of parking
a motor vehicle in a commercial parking lot within the City that is operated by a
commercial parking business. The amount of parking tax shall be equal to the commercial
parking fee multiplied by the parking tax ratein connection with commercial parking
businesses within the City.
1. For commercial parking businesses operated by nonprofit organizations on City -
owned property, the parking tax shall be imposed at the rate of 5five percent.% of the
2. For all other commercial parking businesses, the parking tax rate isshall be
imposed at the rate of five percent. Effective January 1, 2019, the parking tax rate is
imposed at eight percent. Effective January 1, 2020, the parking tax rate is imposed at 11
percent. Effective January 1, 2021, the parking tax rate is imposed at 15 percent. 8% of
effective January 1, 2019, and then as follows:
January 1, 2020: 11 % of the gross revenues generated by non exempt
commercial parking charges and fees
January 1, 2021: 15% of the gross revenues generated by non exempt
commercial parking charges and fees
Section 33. Repealer. Ordinance No. 2586 §6, as codified at TMC Section 3.48.040,
"Tax in Addition to Other License Fees or Taxes," is hereby repealed, thereby eliminating
this section:
3A8.040 Tam„-Addt to Other License -Fees er Taxes
The tax levied under this chapter shall be in addition to any license fee or tax imposed
or other governmental entity or political subdivision.
Section 34. Repealer. Ordinance No. 2586 §7, as codified at TMC Section 3.48.050,
"Exempt Vehicles," is hereby repealed, thereby eliminating this section:
3.48.050 Exempt Vehicle&
government -vehicles which are exempt from tax, and tax exempt carpool vehicles.
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Section 35. TMC Section 3.48.060 Amended. Ordinance No. 2586 §8, as codified
at TMC Section 3.48.060, "Taxes Collected by Business Operators," is hereby amended to
read as follows:
3.48.060 Tax Payment and Collectioned' by Business Operators
A. The taxes imposed by this chapterherein shall be collected by the operators of
the ernial parking businesses7G shhall be due and payable to the City in monthly
installments, and remittance therefor, together with return forms as prescribed by the
Director,. The operators of the commercial parking businesses shall remit to the City the
local option transportation taxes collected shall be made on or before the last day of the
month following the end of the month y period during which the taxes were collected. The
businesses which are taxable by this tax, at least quarterly each year.
B. The tax levied in this chapter shall be paid by the person paying the commercial
parking charge and remitted by the person to whom the same is paid. The tax collected
under this chapter shall be deemed held in trust by the person required to collect the
same until the taxes are remitted to the Director under this section. Persons failing to
collect the parking tax, or who collects the tax but fails to remit it to the Director, shall be
liable to the City for the amount of such tax and associated penalties and/or interest due.
C. If the amount of parking tax is not separately stated from the commercial parking
fee on all instruments evidencing the parking fee, a sign shall be posted in a conspicuous
place on the entrance or where parking fees are advertised stating that a City parking tax
of five percent is included in the parking fee. Except when the requirements of this
subsection are satisfied, it shall be conclusively presumed that the commercial parking
fee does not include the parking tax levied in this chapter.
Section 36. Regulations Repealed. Ordinance No. 2586 §9, as codified at TMC
Section 3.48.070, "Late Penalty," is hereby repealed, thereby eliminating this section:
3.48.070 Late Penalty
penalty of 10% of the tax per month for each month overdue, which shall be added to the
amount of the tax due.
Section 37. Repealer. Ordinance No. 2586 §13, as codified at TMC Section 3.48.110,
Appeal Procedures," is hereby repealed, thereby eliminating this section:
3.48.110 App al Procedure
calendar days from the date on which such person was given notice of the tax. The notice
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amount of the tax was incorrect. The Finance Director or designee shall review the basis
may sustain or modify the amount of tax owed. Notice of the administrative decision shall
be sent to the appellant by certified mail within 10 days of ic.suance.
B. The appellant, if aggrieved by the decision of the Finance Director or designee,
with the fee schedule adopted by resolution of the City Council.
hearing on the appeal before the City's Hearing Examiner. The hearing shall be
certified mail at least five days prior to the date of the hearing.
D. The hearing shall be governed by the City of Tukwila H ring Examiner's
procedural rules. The hearing shall be de novo. The decision of the City's Hearing
body may affirm, reverse or modify the Finance Director's decision.
E. Within 20 business days, excluding holidays recognized by the City of Tukwila,
from the date of the hearing on an appeal under this section, the Hearing Examiner shall
issue a written decision which shall set forth the reasons therefor.
Section 38. Regulations Established. A new TMC Section 3.50.015 is hereby
established to read as follows:
3.50.015 General Administrative Provisions Apply
The administrative provisions contained in TMC Chapter 3.27 shall be fully applicable
to the provisions of this chapter except as expressly stated to the contrary herein.
Section 39. TMC Section 3.50.030 Amended. Ordinance No. 1998 §3, as codified
at TMC Section 3.50.030, "Definitions," is hereby amended to read as follows:
3.50.030 Definitions
The definitions contained in chapter 3.27 TMC shall have full force and application
with respect to taxes imposed under the provisions of this chapter except as expressly
stated to the contrary herein.
As used in this chapter, unless the context or subject matter clearly requires
otherwise, the words or phrases defined in this section shall have the indicated meanings.
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1. "Cable television services" means the transmission of video programming and
associated non -video signals to subscribers together with subscriber interaction, if any,
which is provided in connection with video programming.
2. "Cellular telephone service" means any two-way voice and data telephone or
similar communications system based in whole or in substantial part on wireless radio
communications, including cellular mobile service, and which is not subject to regulation
by the Washington State Utilities and Transportation Commission. Cellular mobile service
includes other wireless radio communications services including specialized mobile radio,
personal communications services, and any other evolving wireless radio
communications technology that accomplishes a purpose substantially similar to cellular
mobile service. Cellular telephone service is included within the definition of "telephone
business" for the purposes of this chapter.
3. "Competitive telephone service" means the providing by any person of
telecommunications equipment or apparatus, directory advertising and lease of telephone
street directories, or service related to that equipment or apparatus such as repair or
maintenance service, if the equipment or apparatus is of a type which may be provided
by persons not subject to regulation as telephone companies under Title 80 RCW, and
for which a separate charge is made. Transmission of communication through cellular
telephones is classified as "telephone business" rather than "competitive telephone
service."
4. "Finance Director" means the Finance Director of the City of Tukwila,
Washington, or his or her designee.
54. "Gross income" means the value proceeding or accruing from the performance
of the particular business involved, including gross proceeds of sales, compensation for
the rendition of services, and receipts (including all sums earned or charged, whether
received or not) by reason of investment in the business engaged in (excluding rentals,
receipts or proceeds from the use or sale of real property or any interest therein, and
proceeds from the sale of notes, bonds, mortgages or other evidences of indebtedness,
or stocks and the like), all without any deduction on account of the cost of property sold,
the cost of materials used, labor costs, taxes, interest or discount paid, delivery costs or
any expenses whatsoever, and without any deduction on account of losses.
65. "Pager service" means service provided by means of an electronic device which
has the ability to send or receive voice or digital messages transmitted through the local
telephone network, via satellite or any other form of voice or data transmission. "Pager
service" is included within the definition of "telephone business" for the purposes of this
chapter.
cngagcd in a busincss subject to taxation under this chapter.
86. Telephone business" means the electronic transmission, conveyance, or
routing of voice, data, audio, video, or any other information or signals to a point, or
between or among points. It includes such transmission, conveyance, or routing in which
computer processing applications are used to act on the form, code, or protocol of the
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content for purposes of transmission, conveyance, or routing without regard to whether
such service is referred to as voice over internet protocol services or is classified by the
Federal Communications Commission as enhanced or value added. Telephone
business also includes ancillary services that are associated with or incidental to the
provision of telecommunication services including, but not limited to, conference
bridging, detailed telecommunications billing, directory assistance, vertical service, or
voice mail services as defined in RCW 82.04.065. "Telephone business" means also
includes the business of providing by any person of access to a local telephone network,
local telephone network switching service, toll service, or coin telephone services, or
providing telephonic, video, data, pager or similar communication or transmission for hire,
via a local telephone network, toll line or channel, cable, microwave, or similar
communication or transmission system. The term includes cooperative or farmer line
telephone companies or associations operating an exchange. The term also includes the
provision of transmission to and from the site of an internet provider via a local telephone
network, toll line or channel, cable, microwave, or similar communication or transmission
system. "Telephone business" does not include the providing of competitive telephone
service,—ar data processing, cable television service, or other providing of broadcast
services by radio or television stations.
Section 40. TMC Section 3.50.040 Amended. Ordinance No. 1998 §4, as codified
at TMC Section 3.50.040, "Occupations Subject to Tax — Amount," is hereby amended to
read as follows:
3.50.040 Occupations Subject to Tax - Amount
There is levied upon, and shall be collected from a every person because of engaged
in certain business activities engager! in or carried an within the City of Tukwila, taxes in
the amount to be determined by the application of rates given against gross income as
follows:
1. Upon a person engaged in or carrying on the business of selling, furnishing, or
transmitting electric energy, a tax equal to 6 percent/l% for the calendar years 2003 and
0 0
beyond, of the total gross income from such business in the City during the period for
which the tax is due;
2. Upon a person engaged in or carrying on the business of selling, furnishing, or
transmitting gas, whether natural or manufactured, a tax equal to 6 percent 'l% for the
calendar y rs 2003 and 2004; 5% for the calendar years 2005 and 2006; and 6% for the
calendar years 2007 and beyond! of the total gross income from such business in the City
during the period for which the tax is due;
3. Upon a person engaged in or carrying on any telephone business a tax equal to
6 percent /1% for the calendar years 2003 and 2001; 5% for the calendar years 2005 and
2006; and 6% for the calendar years 2007 and beyond, of the total gross income,
including income from intrastate long distance toll service, from such business in the City
during the period for which the tax is due;
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25
4. Upon a person engaged in or carrying on the business of selling, furnishing or
transmitting cable television service, a tax equal to 6 percent 4 / fnr the calendar years
2003 and 2004; 5% for the calendar years 200E and 2006• and 6% fnr the calendar years
2007 and beyond, of the total gross income from such business in the City during the
period for which the tax is due.
5. In addition to the automatic annual review of the Financial Planning Model, the
Section 41. TMC Section 3.50.060 Amended. Ordinance No. 1998 §6, as codified
at TMC Section 3.50.060, "Exceptions and Deductions," is hereby amended to read as
follows:
3.50.060 Exceptions and Deductions
In computing the tax levied in this chapter, there shall be deducted from the gross
income the following itemsThere-is exce t dd and d cted frr the totes; s GGITI-&
upon which the tax is computed:
1. That part of the total gross income derived from business which the City is
prohibited from taxing under the constitution or laws of the United States and the
constitution or laws of the State of Washington.
2Inn deriv tportion of network tel l rl�n in
rrrcecrrP vravrr-vrrrccvcvrr�c erv+c�--, s� rr
RCW 82.04.065, That portion of gross income derived by a taxpayer engaging in a
telephone business which represents charges to another telecommunications company,
as defined in RCW 80.04.010, for connecting fees, switching charges, or carrier access
charges relating to intrastate toll telephone services; or for access to, or charges for,
interstate services; or charges for network telephone service that is purchased for the
purpose of resale.
3. Adjustments made to a billing or customer account in order to reverse a
billing or charge that was not properly a debt of the customer.
4. Cash discounts allowed and actually granted to customers of the taxpayer
during the tax year.
5. The amount of credit losses and uncollectible debts actually sustained by
taxpayers whose regular books are kept upon an accrual basis. Uncollectible debts
written off the taxpayer's books during the tax year. If subsequently collected, the income
shall be reported for the period in which collected.
Section 42. Regulations Established. A new TMC Section 3.50.065 is hereby
established to read as follows:
3.50.065 Allocation of Income — Cellular Telephone Service
When determining total gross income from cellular telephone service in the City for
purposes of Section 3.50.040(3), "gross income" shall include all income from cellular
telephone service (including roaming charges incurred outside this state) provided to
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26
customers whose place of primary use is in the City, regardless of the location of the
facilities used to provide the service. The customer's "place of primary use" is, with
respect to each telephone: (1) the customer's address shown on the telephone service
company's records; or (2) the customer's place of residence if the telephone is for
personal use, and in both cases must be located within the licensed service area of the
home service provider. Roaming charges and cellular telephone charges to customers
whose place of primary use is outside the City will not be taxable even though those
cellular services are provided within the City.
There is a rebuttable presumption that the address shown on the cellular telephone
service company's records is the place of primary use and is accurate. If the cellular
telephone service company knows or should have known that a customer's place of
primary use address for a telephone is within the City, then the gross income from cellular
telephone service provided to that customer with respect to that telephone is to be
included in the company's gross income.
Section 43. Repealer. Ordinance No. 1998 §5, §8, §9, §10, §11, §12, §13, and §14,
as codified at TMC Sections 3.50.050; 3.50.080; 3.50.090; 3.50.100; 3.50.110; 3.50.120;
3.50.130; and 3.50.140 respectively, are hereby repealed, thereby eliminating these
sections:
3.50.050 Tax Year
The tax year for purposes of this utility tax shall commence February 1, 2003 and end
31 each year.
3.50.080 Taxpayer's Records
income —on sal s— nd- ces thin the City,-- ch records shall be open at all
reasonable times for the inspection of the Finance Director or his designee to verify
information provided on anyu+tilit-y ta= ern orrttno de ermi ne r such return—iJ
required to be filed.
3.50.090 Failure to Make Returns or to Pay the Tax in Full
If a taxpayer fails, neglects, or refuses to make his return as and when required by
this chapter, the Finance Director is authorized to determine the amount of the tax payable
under provisions of TMC 3.50.040, and to notify such taxpayer of the amount so
are subject to an interest charge of 12% per year on the unpaid balance from the date
anunysuch tax s became due as provided in TEAC 3 0.
3.50.100 Penalty for Delinquent Payment
amount of such tax. Any tax due under this chapter that is unpaid and all penalties thereon
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27
remedy shall be in addition to all other remedies.
3.50.110 Overpayment of Tax
Money paid to the City through error, or otherwise not in payment of the tax unposed
tax due or to become due from such taxpayer hereunder, provided however, that
overpayments extending beyond one y or prior to notification of the City shall not be
shall be refunded to the taxpayer.
3.50.120 Noncompliance Penalty
A. No person subject to this chapter shall fail or refuse to file tax returns or to pay
connection with, any such tax return, or otherwise violate or refuse to comply with this
chapter or with any rule promulgated pursuant to TMC 3.50.140.
B. In addition to the interest and delinquent filing penalties set forth above, a willful
violation of or failure to comply with this chapter is a civil infraction, subject to a fine of up
to $250 for each day that a violation continues.
3.50.130 Appeal
A taxpayer aggrieved by the amount of the tax, penalties, interest, or civil infraction
fine determined to be due by the Finance Director or his designee, under the provisions
of this chapter, may appeal such determination to the City of Tukwila's City Administrator
or his or her designee.
3.50.140 Finance Director to Make Rules
The Finance Director shall have the power to adopt and enforce rules and regulations
not inconsistent with this chapter or with the law for the purposes of carrying out the
provisions thereof.
Section 44. Regulations Established. A new TMC Section 3.51.015 is hereby
established to read as follows:
3.51.015 General Administrative Provisions Apply
The administrative provisions contained in TMC Chapter 3.27 shall be fully applicable
to the provisions of this chapter except as expressly stated to the contrary herein.
Section 45. TMC Section 3.51.030 Amended. Ordinance No. 2250 §3, as codified
at TMC Section 3.51.030, "Definitions," is hereby amended to read as follows:
3.51.030 Definitions
The definitions contained in TMC chapter 3.27 shall have full force and application
with respect to taxes imposed under the provisions of this chapter except as expressly
stated to the contrary herein.
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As used in this chapter, unless the context or subject matter clearly requires
otherwise, the words or phrases defined in this chapter shall have the indicated meanings.
1. "Solid waste" means all putrescible and nonputrescible solid and semi -solid
wastes, including but not limited to, garbage, rubbish, ashes, industrial wastes, swill,
sewage sludge, demolition and construction waste, abandoned vehicles or parts thereof,
and recyclable materials.
2. "Solid waste collection business" means every person who receives solid
waste or recyclable materials for transfer, storage, or disposal, including but not limited
to, all collection services, public or private solid waste disposal sites, transfer stations,
and similar operations.
ers 114 n y person e firm e e ociation onr entity of any
4. "Finance Director" means the Finance Director of the City of Tukwila,
Washington or his or her designee
e
63. "Gross income" means the value proceeding or accruing from the
performance of the particular business involved, including gross proceeds of sales,
compensation for the rendition of services, and receipts (including all sums earned or
charged, whether received or not) by reason of investment in the business engaged in
(excluding rentals, receipts or proceeds from the use or sale of real property or any
interest therein and proceeds from the sale of notes, bonds, mortgages or other
evidences of indebtedness, or stocks and the like), all without any deduction on account
of the cost of property sold, the cost of materials used, labor costs, taxes, interest or
discount paid, delivery costs or any expenses whatsoever, and without any deduction on
account of losses.
64. "Residential customers" means any customer of the solid waste collection
provider for residential type customers of single-family residential structures, including
mobile homes and duplexes, tri-plexes and four-plexes where each residential unit is
billed individually, except that the term does not include multiple unit residences with five
or more attached or unattached units billed collectively.
75. "Non-residential customers" means any customer other than those identified
as a "residential customer."
Section 46. Repealer. Ordinance No. 2250 §8, §9, §10, §11, §12, §13, and §14, as
codified at TMC Sections 3.51.080; 3.51.090; 3.51.100, 3.51.110; 3.51.120, 3.51.130, and
3.51.140 respectively, are hereby repealed, thereby eliminating these sections:
3.51.080 Taxpayer's Records
Each taxpayer shall keep records reflecting the amount of the taxpayer's gross
reasonable times for the inspection of the Finance Director or his designee to verify
required to be filed.
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3.51.090 Failure to Make Returns or to Pay the Tax in Full
this chapter, the Finance Director is authorized to determine the amount of the tax payable
Angler provisions of TMC � 51. 1.040, aand to notify s chr pai the amoicamvant so
0
0 o ,
0
any such taxes became due as provided in TMC 3.51.070.
3.51.100 Penalty for Delinquent Payment
0
remedy shall be in addition to all other remedies. The City may, at its discretion, pursuant
to Chapter 19.16 RCW, use a collectionagency to ^erect suc i ttaxes ere -and
penalties owed or assessed, or it may seek collection by court proceedings, which
remedies shall he in addition to all other remedies
3.51.110 Overpayment of Tax
Money paid to the City through error, or otherwise not in payment of the tax imposed
tax due or to become due from such taxpayer hereunder, provided however, that
overpayments extending beyond one year prior to notification of the City shall not be
refunded. If such taxpayer has ceased doing business in the City, any such overpayment
shall be refunded to the taxpayer.
3.51.120 Noncompliance Penalty
A. No person subject to this chapter shall fail or refuse to file tax returns or to pay
connection with, any such tax return, or otherwise violate or refuse to comply with this
chapter or with any rule promulgated pursuant to TMC 3.51.140.
B. In addition to the interest and delinquent filing penalties set forth above, a willful
violation of or failure to comply with this chapter is a civil infraction, subject to a cumulative
chapter shall constitute a debt to the City. The city at its cretiocipufeuantto
or assessed pursuant to this chapter, or the City may seek collection by court
3.51.130 Appeal
A taxpayer aggrieved by the amount of the tax, penalties, interest, or civil infraction
fine determined to be due by the Finance Director or his or her designee under the
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Page 26 of 27
Administrator or his or her designee. Taxpayers shall be required to remit the amounts
determined to be due under this chapter prior to filing an appeal.
3.51.140 Finance Director to Make Rules
The Finance Director shall have the power to adopt and enforce rules and regulations
provisions thereof.
If any amount of the tax, to be paid under the terms of this chapter, becomes due and
remains unpaid, or if default is made in any of the sections herein contained, the license
so issued shall be revoked.
Section 47. Corrections by City Clerk or Code Reviser Authorized. Upon
approval of the City Attorney, the City Clerk and the code reviser are authorized to make
necessary corrections to this ordinance, including the correction of clerical errors;
references to other local, state or federal laws, codes, rules, or regulations; or ordinance
numbering and section/ subsection numbering.
Section 48. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to be
invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 49. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City and shall take effect and be in full force on July 1,
2024, after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of , 2024.
ATTEST/AUTHENTICATED:
Andy Youn, CMC, City Clerk Thomas McLeod, Mayor
APPROVED AS TO FORM BY: Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Office of the City Attorney
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32
City of Tukwila
Thomas McLeod, Mayor
Finance Department - Vicky Carlsen, Director
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
CC: Mayor McLeod
FROM: Vicky Carlsen, Finance Director
BY: Tony Cullerton, Deputy Finance Director
DATE: March 25, 2024
SUBJECT: February 2024 General Fund Departmental Budget-to-Actuals Report
SUMMARY
The purpose of the February 2024 General Fund Financial Report is to summarize for the City
Council the general state of departmental expenditures and to highlight significant items. The
following provides a high-level summary of the departmental financial performance. The
February 2024 report is based on financial data available as of March 1, 2024, for the period
ending February 29, 2024.
Expenditures
General Fund departmental expenditures totaled $8.9 million through February, which is $2.2
million below the allocated budget of $11.2 million. Department 20, which transfers to other
funds, reported minimal activity for the month. In total the General Fund activity as of the end of
February was $9 million, which is below the allocated budget by $2.2 million. However, due to
ongoing labor negotiations, the $2.2 million dollars under budget does not represent savings.
Allocated Budget
As of the end of February, all departments are under their allocated budgets.
Expended
The end of February represents 16.7% of the year completed. Finance is the only department
that finished the month with a % Expended greater than 16.7%. The 27% spending in Finance
is a combination of Professional Services, Technical Services, and Machinery & Equipment.
Professional Services saw a significant increase in the Risk Management program. This program
is responsible for 98% of the cost in Professional Services. The increase in Technical Services
is Software Maintenance contracts. Machinery & Equipment costs are Finance Enterprise
Milestone payments and the replacement cost for a new Folding Machine.
2024 Compared to 2023
Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov
33
INFORMATIONAL MEMO
February 26, 2024
Page 2
When comparing the current year's spending to the previous year's spending, A few
departments reported large swings is spending. The Mayor's Office reported a decline of 34%
when compared to the same period last year. The decline is in both Attorney Services and Public
Defense expenditures. The 44% budgeted increase in Finance has been previously explained
under the % Expended section of the memo. The large decline reported in Fire is a timing issue.
Last year the City paid the Q1 invoice in February. Based on the allocated budget, we anticipate
a $3.8 million payment to the Regional Fire Authority (RFA) for contracted services in the month
of March.
Departmental Variances
Year to Date Department Expenditures Through January 2024:
BUDGET
ACTUAL
2024
2024
2022
2023
2024
Allocated Budget
vs Actual
%
Expendec
$ Change % Change
DEPARTMENT
Annual
Allocated
OVER/(UNDER)
2023/2024
City Council
393,067
65,511
54,853
55,773
50,409
(15,102)
12.8%
(5,364)
-9.6%
Mayor's Office
2,405,513
400,919
275,003
454,468
300,579
(100,340)
12.5%
(153,889)
-33.9%
Administrative Services
5,621,624
964,500
685,140
792,800
735,932
(228,567)
13.1%
(56,867)
-7.2%
Finance Department
4,625,307
1,279,668
831,005
871,125
1,260,794
(18,874)
27.3%
389,669
44.7%
Rec Dept / Parks Maint
5,808,439
942,198
584,521
707,264
601,602
(340,596)
10.4%
(105,662)
-14.9%
Community Dev
5,063,237
843,873
710,773
671,131
560,456
(283,417)
11.1%
(110,675)
-16.5%
Municipal Court
1,859,399
309,900
244,465
267,167
254,824
(55,075)
13.7%
(12,342)
-4.6%
Police Department
24,212,875
4,433,574
3,058,958
3,676,374
3,595,082
(838,493)
14.8%
(81,293)
-2.2%
Fire Department
15,605,441
384,921
2,346,086
3,984,579
378,904
(6,017)
2.4%
(3,605,675)
-90.5%
PW Dept / Street Maint
8,002,142
1,573,617
1,061,423
1,255,585
1,234,557
(339,060)
15.4%
(21,028)
-1.7%
Subtotal
73,597,044
11,198,680
9,852,227
12,736,267
8,973,140
(2,225,540)
12.2%
(3,763,127)
-29.5%
Non Departmental
5,865,345
0
0
0
18,953
18,953
0.3%
18,953
N/A
Total Expenditures
79,462,388
11,198,680
9,852,227
12,736,267
8,992,093
(2,206,587)
11.3%
(3,744,174)
-29.4%
% of Year 16.7%
General Fund by Category
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
34
INFORMATIONAL MEMO
February 26, 2024
Page 3
Per ordinance, the City adopts a biennial budget by fund. This is the required level of reporting
for external authoritative sources of oversight such as of the Washington State Auditor's office.
This level of reporting is also utilized for the purposes of debt issuance and by other
stakeholders. For managerial reporting and internal use, the city reports activity at the
department level. This provides more details and additional information used by decision makers
within the city and those charged with governess. To provide an enhanced level of reporting,
additional information is being provided for activity by category that reflect an increase of more
than 5% over the prior year AND $50,000, that are part of a Category that is reporting total
activity above the % of Year calculation.
Allocated Budget
All Category totals except Capital Outlay are within their allocated budget. There was no Capital
spending for the period of Jan — Feb in 2023. The expenditures incurred during this period in
2024 were for capital purchases that support a variety of programs, including Financial Reporting
& Analysis, A/P, A/R and Misc Billing. The large decline in Salaries is due to ongoing labor
negotiations and should not be interpreted as cost savings.
% Expended
The end of February represents 16.7% of the year. The only category that is reporting
expenditures greater than 16.7% YTD is Machinery & Equipment. These are the costs previously
explained as capital software milestone payments and the purchase to replace an outdated
folding machine.
$ Change 2023/2024
When comparing changes in spending between 2023 and 2024 there were no large increases
at the category level. However, there were a couple of significant decreases. Professional
Services decreased significantly from the same period last year. The decrease is due to the
timing of when the City makes its 1st quarter contract payment to the RFA. In 2023, the 1st quarter
payment was made in February. In 2024, the payment is budgeted for the month of March.
Communications reflects an increase of 143% over the same period last year. However, the
dollar amount is less than $50k. While the % is high, the total dollar amount is immaterial. This
purchase is for a Business Reply Mail permit for the Business Systems Management Support
program within the City Clerk's Office. Rentals are up 49%. Similar to Communications, while
the % of increase seems high, the dollar amount is low. The increase in Rentals is an expenditure
for training in the Public Safety program. Specifically, EVOC track fees. The increase in
Machinery & Equipment has been explained above in the % Expended section of this memo.
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
35
INFORMATIONAL MEMO
February 26, 2024
Page 4
General Fund
City of Tukwila
General Fund Expenditures
Year -to -Date as of Feb 29, 2024
I BUDGET
ACTUAL
COMPARISON OF RESULTS
2023
Annual
2023
Allocated
2021
2022
2023
Actual Budget
vs Allocated
OVER/(UNDER)
%
Expended
Change
$2022/2023
2022/2023
Salaries
28,083,897
4,680,650
4,878,147
3,842,367
3,126,737
(1,553,913)
11.1%
(715,630)
(18.6%)
Extra Labor
794,977
132,496
41,959
54,499
59,792
(72,704)
7.5%
5,293
9.7%
Overtime
797,180
132,864
432,520
291,849
218,463
85,599
27.4%
(73,386)
(25.1%)
Holiday Pay
250,000
41,667
2,885
1,935
623
(41,044)
0.2%
(1,312)
N/A
FICA
2,299,308
383,218
310,328
315,667
257,275
(125,943)
11.2%
(58,392)
(18.5%)
Pension-LEOFF
690,494
102,749
146,850
85,931
73,249
(29,500)
10.6%
(12,682)
(14.8%)
Pension-PERS/PSERS
1,877,476
312,912
239,320
253,845
181,211
(131,701)
9.7%
(72,634)
(28.6%)
Industrial Insurance
616,066
102,677
99,101
63,390
55,067
(47,610)
8.9%
(8,323)
(13.1%)
Medical & Dental
5,818,916
969,819
1,224,582
894,256
981,781
11,962
16.9%
87,525
9.8%
Unemployment
0
0
168
0
0
0
-
0
N/A
Uniform/Clothing
33,504
5,584
0
242
635
(4,949)
1.9%
393
N/A
Total Salaries & Benefits
41,261,818
6,864,635
7,375,860
5,803,982
4,954,832
(1,909,803)
12.0%
(849,149)
(14.6%)
Supplies
640,401
106,734
5,172
45,824
52,194
(54,540)
8.2%
$6,370
13.9%
Repairs & Maint Supplies
420,705
70,118
13,448
34,599
57,454
(12,663)
13.7%
$22,855
66.1%
Resale Supplies
2,580
430
0
0
0
(430)
-
$0
-
Small Tools
228,078
38,013
3,306
22,521
9,215
(28,799)
4.0%
($13,306)
(59.1%)
Technology Supplies
112,364
18,727
3,659
2,741
12,426
(6,301)
11.1%
$9,685
353.4%
Fleet Supplies
7,260
1,210
0
740
619
(591)
8.5%
($121)
(16.4%)
Total Supplies
1,411,387
235,232
25,584
106,424
131,908
(103,324)
9.3%
$25,483
23.9%
Professional Services
23,292,740
3,029,313
1,578,383
5,974,870
2,774,924
(254,389)
11.9%
($3,199,947)
(53.6%)
Communications
468,177
78,029
37,111
29,816
72,576
(5,454)
15.5%
$42,759
143.4%
Professional Dev
532,851
86,663
99,662
150,198
164,710
78,047
30.9%
$14,512
9.7%
Advertising
66,716
11,120
0
50
0
(11,120)
-
($50)
N/A
Rentals
319,003
53,167
27,462
10,852
16,202
(36,965)
5.1%
$5,350
49.3%
Technology Services
1,081,907
217,880
240,306
275,610
286,318
68,438
26.5%
$10,708
3.9%
Utilities
2,387,484
193,481
31,341
118,684
114,872
(78,609)
4.8%
($3,812)
(3.2%)
Repairs & Maint Svs.
1,483,739
247,290
323,102
208,616
259,910
12,621
17.5%
$51,295
24.6%
Miscellaneous
701,220
116,870
63,917
57,165
39,449
(77,421)
5.6%
($17,716)
(31.0%)
Total Services
30,333,839
4,033,813
2,401,284
6,825,861
3,728,960
(304,853)
12.3%
(3,096,900)
(45.4%)
Capital Outlay -Land
0
0
0
0
0
0
-
0
-
Other Improvements
0
0
0
0
0
0
-
0
-
Machinery & Equipment
590,000
65,000
49,499
0
176,392
111,392
29.9%
176,392
N/A
Construction Projects
0
0
0
0
0
Total Capital Outlay
590,000
65,000
49,499
0
176,392
111,392
29.9%
176,392
N/A
Transfers Out
5,865,345
0
0
0
0
0
-
0
N/A
Total Non Operating Expeny
5,865,345
0
0
0
0
0
-
0
N/A
Total Expenditures
79,462,389
11,198,680
9,852,227
12,736,267
8,992,092
(2,206,588)
11.3%
(3,744,174)
(29.4%)
% of Year
Riverton Park United Methodist Church Response (RPUMC)
16.7%
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
36
INFORMATIONAL MEMO
February 26, 2024
Page 5
Total costs to date are slightly over $217,072. These expenditures are a combination of
consulting services/contracts, employee time, and services.
Total Costs (Snapshot)
SNAPSHOT
Object 2023 $ 2024 $ Total ok
Consulting/Contracts 107,598 5,000 112,598 51%
Salaries/Benefits 55,494 39,007 94,501 43%
Services 0 14,222 14,222 6%
Total 163,092 58,229 221,321 100%
The City has entered into four contracts for service. The total contract amount is currently
$192,948. Of that total, $112,598 has been spent, leaving a remaining encumbered amount of
$80,350.
CONTRACTS
#1 Fencing
Initial Contract Amount 15,000
Change Orders 5,000
Total Contract Amount 20,000
Amount Invoiced 18,734
Amount Remaining 1,266
=2 I - 2 Strategies
Initial Contract Amount 39,000
Change Orders 61,000
Total Contract Amount 100,000
Amount Invoiced 77,898
Amount Remaining 22,102
#3 Brad Harwood Communications
Initial Contract Amount 60,000
Change Orders 0
Total Contract Amount 60,000
Amount Invoiced 15,966
Amount Remaining 44,034
#4 Cascadia Cleaning 8& Removal
Initial Contract Amount 12,948
Change Orders 0
Total Contract Amount 12,948
Amount Invoiced 0
Amount Remaining 12,948
Contracts Summary
Initial Contract Amount 126,948
Change Orders 66,000
Total Contract Amount 192,948
Amount Invoiced 112,598
Amount Remaining - Encumbered 80,350
TOTAL CONTRACT COSTS 112,598
Encumbrances 80,350
CONTRACT GRAND TOTAL 192,948
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
37
INFORMATIONAL MEMO
February 26, 2024
Page 6
Several departments within the City are dedicating staff time to the RPUMC project. Below is a
breakdown at the department level.
Cost by Department
Department 2023 $ 2024 $ Total
Admin Svcs -Administration 123 140 263
City Council 587 352 939
Comm Dev Administration 6,140 4,770 10,910
Community Service &
Engagement 2,724 607 3,331
Economic Development 4,009 424 4,432
Emergency Mgmt. 7,317 731 8,047
Finance Department 100 0 100
Golf Course Operations 0 36 36
Mayor's Office Administration 4,240 4,080 8,319
Non -Dept General Government 107,598 19,294 126,892
Park Maintenance 0 611 611
PD Recruiting & Hiring 61 0 61
Police Dept Administration 8,740 7,033 15,773
Recreation Dept -Administration 21,454 19,731 41,184
Tourism -Basic Operations 0 424 424
Total 163,092 58,229 221,321
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
38
INFORMATIONAL MEMO
February 26, 2024
Page 7
Projections
Looking ahead we anticipate the following additional costs.
6 Month Projections
Consulting/Contracts
Future Encumbrances 80,350
Durable Tenting
Initial setup + 28 days 42,000
Four months lease ($25k/Mo.) 100,000
Demobilization + 28 days 37,000
Misc expenditures (6 Mo.) 215,000
Estimated Total 394,000
Salaries/Benefits
Staff Time (6 Mo.) 108,624
Services
Miscellaneous 2,000
Total Projections 584,974
Current Incurred Expenditures 217,071
Expected Total Costs 802,045
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
39
40
City of Tukwila
Thomas McLeod, Mayor
Finance Department - Vicky Carlsen, Director
INFORMATIONAL MEMORANDUM
TO: Finance and Governance Committee
CC: Mayor McLeod
FROM: Vicky Carlsen, Finance Director
BY: Tony Cullerton, Deputy Finance Director
DATE: March 25, 2024
SUBJECT: 2023 3rd Quarter Report
ISSUE
The report below summarizes the citywide financial results and highlights significant items or
trends through the third quarter of 2023. The report is based on data available as of January 5,
2024, for the reporting period ending September 30, 2023.
General Fund revenues are tracking higher than in the same period last year. . Additionally, they
are reporting $1.7 million (3.3%) higher than budget through September 2023. Expenditures are
below budget. However, one-time vacancy savings and delayed implementation of anticipated
wage and benefit adjustments associated with collective bargaining have yielded reductions to
expenditures.
While our current projections indicate underspending, it's important to note that the majority, if
not all, of these are postponed expenses that are expected to come due by year-end. If not by
year-end, then contractual obligations related to labor will be paid out in 2024, after contracts
are settled. Our most reliable estimates suggest that there is more than $2.5 million in
expenditures incurred (but not yet reported) due to contractual and retroactive salaries. These
expenditures are expected to be paid in the near future.
As the financial statements are reviewed, please note the new formatting and additions to the
statements. With the new ERP system, we are now able to capture budget amendments in the
statements that have been approved via consensus. This enhancement will allow the reader to
understand the impacts of proposed amendments on fund balance as the year progresses rather
than waiting for formal approval at year-end.
Additional details can be found in the attached financial reports.
Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov
41
INFORMATIONAL MEMO
February 12, 2024
Page 2
DISCUSSION
January through September Highlights
General Fund
• Unassigned beginning fund balance was $16.2 million, lower than expected but still
exceeding fund balance policy requirements. Beginning fund balance is lower than
expected due to land sale revenue expected at the end of 2022 having not yet been
received.
• Revenue through September 30th is $51.7 million, slightly above the allocated budget of
$50 million. Increases in sales tax and building permits are offsetting those revenue
streams that are not currently meeting expectations.
• Major revenue performers included Retail Sales Tax, Business Licenses, and Building
Permits.
• Salaries and benefits are currently lower than budget pending the conclusion of collective
bargaining with Teamsters Local 763. Upon agreement and ratification, a retroactive
payment will be processed that will reconcile the variance.
• General Fund departmental expenditures through September are at $49.9 million and
transfers out are at $4.7 million for a total general fund expenditures of $55.6 million.
• Total general fund expenditures are below allocated budget by $2.6 million. As previously
noted, this is largely due to one-time savings generated from staff vacancies and pending
wage and benefit adjustments associated with collective bargaining.
Other Funds
Capital Projects
Several capital projects are in process including:
• The Allentown Truck Reroute project recommended alternatives for further consideration.
• The Transportation Element Comp Plan incorporated community input into draft
transportation networks.
• West Valley Highway (1405 to Strander) Project completed significant work, including
stripping and installations.
• Public Works Shops Phase 1 and Phase 2 advanced with roofing and painting updates.
Utilities
In the third quarter, Utility projects achieved significant milestones.
• The Levee Certification/Green River Corridor project involved ongoing collaboration with
the Army Corps of Engineers.
• Regulatory reviews continued for the Surface Water, Water & Sewer Comprehensive
Plans, while the Surface Water Comp Plan was actively developed.
• The Annual Small Drainage Program secured a design consultant, and NPDES Program
compliance was ensured through the successful hiring of new inspectors.
• The Green the Green project, involving grants and vegetation management, continued,
and the Chinook Wind Public Access/Extension project received a grant of $280,000 for
design activities.
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
42
INFORMATIONAL MEMO
February 12, 2024
Page 3
Foster Golf Course
• Foster Golf Course entered into a strategic partnership with GolfNow, a prominent player
in the online tee time booking service sector.
• Foster Golf Course upgraded its website which resulted in increased online visibility,
amplifying the course's presence during customer searches for golf facilities.
• The Golf Course was able to successfully justify a modest adjustment in Green Fees,
aligning the cost of a round of golf with that of other surrounding municipal golf courses.
Equipment Rental
• The Equipment Rental Fund has strategically leveraged the Enterprise Fleet Leasing
program by adding twelve new patrol vehicles into its fleet.
• PD has completed the implementation of the Police Department's take-home vehicle
program.
• The department has realized increased revenue from the Sale of Capital Assets over the
anticipated budget.
Lodging Tax
• Lodging tax revenue is on pace to meet and exceed budget. Lodging tax revenue through
September is $787k and exceeds allocated budget by $61k.
Drug Seizure
• For the period January 1st through September 30th, 2023, the seizure fund brought in
$79,010 through the Dept of Justice's Equitable Sharing program.
• Police Department sent $82,322 to Sound Mental Health as contracted compensation for
our two Mental Health Co -Responders (a portion of these expenditures will be returned
to us via the grant).
• The Department spent $11,423 of Seizure Funds to replace the Special Response
Team's (SWAT) equipment.
Debt Service Funds
• Debt Service is funded by budgetary approved interfund transfers. All long-term debt
obligations are paid timely and in accordance with the debt schedule.
Insurance — Active Employees / Insurance LEOFF 1 Retirees Funds
• The Insurance funds are trending as anticipated. The funds are adequately funded, and
Program Cost expenditures are slightly under budget. Both funds are stable and well
positioned heading into Q4.
ATTACHMENTS
3rd Quarter Financial Report
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
43
44
CITY OF TUKWILA
2023 Q3 FINANCIAL REPORT
HIGHLIGHTS
This report explains the City's income and spending activities through September 30,
2023, with a primary emphasis on the General Fund activities. Although it encompasses
financial information about all City funds, the discretionary activity in the other funds is
constrained by statutory restrictions, unlike the General Fund.
Year-to-date revenues are slightly higher than budgeted, and expenditures are lower than
budgeted.
2023 YTD 2023 YTD
Budget Actual $ Diff % Diff
Revenues 50,038,867 51,712,623 1,673,756 3.3%
Expenditures 57,145,620 54,555,154 ($2,590,466) -4.5%
General Fund
2023 Q3 Revenues & Expenditures
Budget vs Actual
58,000
56,000
54,000
52,000
50,039
50,000
48,000
51,713
57,146
54,555
- 46,000
c
ro Revenues Expenditures
c
0
- ■ 2023 YTD Budget ■ 2023 YTD Actual
I-
46
The quarter concluded with operating expenditures below the budget. It's important to
note that the $2.5 million under budget is not indicative of savings due to ongoing labor
negotiations, and retro pay is anticipated soon. Expenditures appear higher than
revenues due to a delayed property tax deposit that was expected in the third quarter but
arrived in the following month. Although expenditures are evenly distributed and budgeted
in the month of occurrence, revenues are occasionally received in subsequent months.
Year-to-date revenues are slightly higher than budget with a 3.3% increase over
expectations. Over the past three years, 2023 revenues are up 11.5% over 2021, and
0.9% when compared to the same period in 2022. While revenues are trending up and to
the right, they are not significant enough to keep pace with the increase in inflation.
Thousands
53,000
52,000
51,000
50,000
49,000
48,000
47,000
46,000
45,000
44,000
43,000
Total Revenue
2021 - 2023
51,230
51,713
46,398
2021 2023
Major Performing Revenues
• Retail Sales Tax increase 7.5%
• Interfund Utility Tax increase 8.0%
• Business Licenses increase 6.6%
• Building Permits increase 27.1
3
47
City of Tukwila
General Fund
as of September 30, 2023
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
Variance
Year to Date Over/(Under) % of Annual
Actual Annual Budget Budget
REVENUE:
Property Tax 517.682.000 S S 17 682.000 S 9 595 750 S (8.086.250) 54.3%
Sales Taxes -Retail 20.378.000 1.000.000 21 378.000 16.250.146 (5.127.854) 79.7%
Sales Taxes -Criminal Justice 905 000 905 000 754,014 (150.986) 83.3%
Admission Taxes 850 000 850 000 681.981 (168.019) 80.2%
Utility Taxes 4.300.000 4.300.000 3.219.572 (1.080.428) 74.9%
Interfund Utility Taxes 2.634.980 2.634.980 2.160.738 (474.242) 82.0%
Gambling & Excise Taxes 4.665.700 4.665.700 3.606.519 (1.059.181) 77.3%
Business Licenses 3.230.000 3.230.000 2.286.658 (943.342) 70.8%
Rental Housing Permits 41 000 41 000 39.856 (1.144) 97.2%
Building Permits 1 739 660 1.739.660 1.862.306 122.646 107.0%
Franchise Fees 508.000 508 000 418.919 (89.081) 82.5%
Sales Tax Mitigation Payments 635 470 635 470 494.254 (141.216) 77.8%
SCL Agreement 2.300.000 - 2 300.000 2.064.356 (235.644) 89.8%
Grant Revenues 2.873.788 1.445.215 4 319.003 2.632 121 (1.686.882) 91.6%
State Entitlements 505 500 505 500 460.823 (44.677) 91.2%
Intergovernmental Revenue 628 804 628 804 18.428 (610.376) 2.9%
General Government Revenue 16 620 16 620 17.017 397 102.4%
Security Revenue 1 138 900 200.000 1 338.900 768.010 (570.890) 67.4%
Transportation Revenue 20.000 20 000 288 (19.712) 1.4%
Plan Check and Review; Fees 794268 794 268 966.653 172.385 121.7%
Culture and Recreation Fees 171 200 10.000 181 200 110.707 (70.493) 64.7%
Fines and Penalties 760 475 - 760 475 228.515 (531,960) 30.0%
Other Income 178 155 117.396 295 551 402.845 107.294 226.1%
Total Operating Revenues
66.957.520 2.772.611 69 730.131 49.040.475 120.689.656) 73.2%
Indirect Cost Allocation 2.822.397 2 322.397 2.116.809 (705.588)
Investment Earnings 100.000 150.000 250 000 317.897 67.897
Rent & Concessions 335.570 335 570 237.442 (98.128)
Transfers In 1.624.147 (270.000) 1 354.147 (1.354.147)
Total Non -Operating Revenues 4.882.114 (120.000) 4.762 114 2.672.147 (2.089.966)
Total Revenues
71.839.634 2.652.6111 74.492.245
75.0%
317.9%
70.8%
0.0%
54.7%
51.712.623 (22.779.622) 72.0%
The Budget Amendments (Consensus) were formally approved at the November 20th
Regular Meeting.
48
Property Tax
2023 2023 YTD vs
Allocated Actual less 2022 YTD $
Budget 2021 Actual 2022 Actual 2023 Actual Budget Diff % Diff
10,800,133 9,796,332 9,740,424 9,595,750 (1,204,383) (144,674) -1.5%
Property Tax declined 1.5% over the same period last year. However, the dip is a result
of a timing variance due to delayed receipt of the September property tax distribution
deposited from King County. A $1.1 million property tax deposit was anticipated in
September but received in the 1st week of October. 2023 Property Tax has been received
and posted. Property taxes are trending as budgeted.
9,850,000
9,800,000
9,750,000
9,700,000
9,650,000
9,600,000
9,550,000
9,500,000
9,450,000
9,796,332
2021 Actual
Property Tax
Jan -Sept.
2021 - 2023
9,740,424
9,595,750
2022 Actual 2023 Actual
5
49
Sales Tax
2023 2023 YTD vs
Allocated Actual less 2022 YTD $
Budget 2021 Actual 2022 Actual 2023 Actual Budget Diff % Diff
15, 692, 788 14, 727, 965 15, 823,150 17, 004,160 1,311,372 1,181, 010 7.5%
Sales Tax is up, over $1.2 million (7.5%) compared to last year. Within Sales Tax, Retail
Trade was down 2.9% compared to last year. The Construction sector and Services
sector were the strongest performers. Construction is one of the more volatile sectors and
is difficult to project within the Sales Tax umbrella. Inflationary pricing also contributed to
the overall increase in Sales Tax revenue.
17,500,000
17,000,000
16,500,000
16,000,000
15,500,000
15,000,000
14,500,000
14,000,000
13,500,000
14,727,965
2021 Actual
Sales & Use Tax - Retail
Jan - Sept
2021 - 2023
15,823,150
17, 004,160
2022 Actual 2023 Actual
6
50
Utility Tax
2023
Allocated
2023 YTD vs
Actual less 2022 YTD $
Budget 2021 Actual 2022 Actual 2023 Actual Budget Diff % Diff
3,294,842 2,770,027 3,218,118 3,219,572 (75, 270) $1,454 0.0%
Utility tax came in slightly under budget but revenues were on par with the same period
last year. Utility tax is a combination of the following utilities:
$
2022 2023 Change % Change
Cable 163,804 171,069 7,265 4.4%
Electric 1,403,974 1,356,265 (47,709) -3.4%
Gas 542,695 575,820 33,125 6.1
Telecommunications 535,249 534,608 (641) -0.1
Solid Waste 572,397 581,810 9,413 1.6%
Total 3,218,119 3,219,572 1,453 0.05%
3,300,000
3,200,000
3,100,000
3,000,000
2,900,000
2,800,000
2,700,000
2,600,000
2,500,000
2,770,027
2021 Actual
Utility Tax
Jan - Sept
2021 - 2023
3,218,118 3,219,572
2022 Actual 2023 Actual
7
51
Interfund Utility Tax
2023 2023 YTD vs
Allocated Actual less 2022 YTD $
Budget 2021 Actual 2022 Actual 2023 Actual Budget Dif % Diff
2,157,684 1,924,692 2,000,766 2,160,738 3,054 159,972 8.0%
Interfund Utility Tax is the tax the City imposes on itself for the use of utilities. All three
utilities saw an increase greater than 5% over the prior year.
$
2022 2023 Change % Change
Utility Tax -IF Surface
Water 738,913 777,822 38,909 5.3%
Utility Tax-Interfund
Sewer 705,428 766,427 60,999 8.6%
Utility Tax-Interfund
Water 556,426 616,489 60,063 10.8%
Total 2,000,766 2,160,738
2,200,000
2,150,000
2,100,000
2,050,000
2,000,000
1,950,000
1,900,000
1,850,000
1,800,000
Interfund Utility Tax
Jan - Sept
2021- 2023
1,924,692
2021 Actual
2,000,766
2,160,738
Mil
2022 Actual 2023 Actual
52
Gambling Tax
2023 YTD
2023 Actual vs 2022
Allocated 2023 less YTD $
Budget 2021 Actual 2022 Actual Actual Budget Diff % Diff
3,547,750 2,870,753 3,733,387 3,606,519 58,769 (126,868) -3.4%
Gambling Tax revenue increased sharply in 2022 over 2021. Third quarter reports a slight
cooling off compared to the same period last year. However, Q3 slightly exceeded budget,
demonstrating the anticipated slight dip in Gambling Tax revenues.
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2,870,753
2021 Actual
Gambling Tax
Jan - Sept
2021 - 2023
3,733,387
3,606,519
2022 Actual 2023 Actual
9
53
Admission Tax
2023
YTD vs
2023 Actual 2022
Allocated 2021 202 2023 less YTD $
Budget Actual Actual Actual Budget Diff
731,161 253,342 685,838 681,981 (49,180) (3,857)
Diff
-0.6%
Admission tax is trending at a similar pace to the prior year. Current revenues are down
less than 1 %, compared to the same time last year.
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
253,342
2021 Actual
Admission Tax
Jan - Sept
2021 - 2023
685,838 681,981
2022 Actual 2023 Actual
10
54
Business Licenses
2023
YTD vs
2023 Actual 2022
Allocated 2021 2022 2023 less YTD $
Budget Actual Actual Actual Budget Diff % Diff
2,301,683 2,644,400 2,145,501 2,286,658 (15,025) 141,157 6.6%
Business License revenue has been down over the past few years. As we emerge from
the pandemic, businesses are still reporting challenges in the ability to attract candidates
to fill employment vacancies. Early in 2023 the Director of Security at Westfield Mall came
to Council and shared that businesses within the mall are having difficulty filling positions
due to safety concerns of potential job candidates. Council responded by passing a
budget that fully funded Public Safety. Local businesses are reporting a light increase
(1.7%) over the prior year. Non -Residential Business licenses have improved by greater
than 5% over the same period last year.
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2,644,400
2021 Actual
Business Licenses
Jan - Sept
2021 - 2023
2,145,501
2022 Actual
2,286,658
2023 Actual
2022 2023 Change % Change
Tukwila Businesses 2,291 2,329 38 1.7%
Non -Residential Business
Licenses 2,701 2,922 221 8.2%
Total Business Licenses 4,992 5,251 259 5.2%
11
55
Building Permits
2023
YTD vs
2023 Actual 2022
Allocated 2021 2022 2023 less YTD $
Budget Actual Actual Actual Budget Diff % Diff
1,304,745 1,266,110 1,465,127 1,862,306 557,561 397,179 27.1%
Building permits have been showing steady growth over the past three years.
2,000,000
1,500,000
1,000,000
500,000
0
1,266,110
2021 Actual
Building Permits
Jan - Sept
2021 - 2023
1,465,127
1,867,306
2022 Actual 2023 Actual
Building permits have increased in both volume and valuation. YTD the number of permits
issues has increased by almost 30%. The valuation has increased by about 3% over the
same period last year. Building Permits is a volatile revenue stream that is difficult to
predict with any amount of certainty.
2022
2023
Change
% Change
# of Permits
1,126
1,439
313
27.8%
Valuation of
Permits
$151,835,692
$156,003,356
$4,167,664
2.7%
12
56
EXPENDITURES
General Fund departmental expenditures totaled $49.9 million through September, which
is $2.4 million below the allocated budget of $52 million. Department 20, which transfers
to other funds, reported $4.65 million in expenditures. This number reflects transactions
for debt payments and interfund activity. In total the General Fund activity YTD as of the
end of September was $54.56 million, which is 2.6 below the allocated budget. However,
due to ongoing labor negotiations, the $2.6 million under budget does not represent
savings.
BUDGET
ACTUAL
Allocated Budget
%
2023
2023
2021
2022
2023
vs Actual
Expendec,
$ Change % Change
DEPARTMENT
Annual
Allocated
OVER/(UNDER)
2022/2023
City Council
384,889
286,333
253,457
263,478
273,753
(12,580)
71.1%
10,275
3.9%
Mayor's Office
2,502,666
1,900,892
1,462,714
1,532,984
1,592,997
(307,895)
63.7%
60,013
3.9%
Administrative Services
5,676,491
4,166,583
3,511,068
3,414,056
4,777,319
610,736
84.2%
1,363,263
39.9%
Finance Department
3,868,642
2,849,613
1,973,945
2,471,281
2,481,681
(367,932)
64.1%
10,400
0.4%
Rec Dept/ Parks Maint
5,109,490
3,965,438
3,110,182
3,623,904
3,751,451
(213,987)
73.4%
127,547
3.5%
Community Dev
4,672,314
3,498,530
2,870,673
3,066,304
3,374,793
(123,736)
72.2%
308,489
10.1%
Municipal Court
1,741,340
1,306,005
905,547
1,148,351
1,194,503
(111,502)
68.6%
46,152
4.0%
Police Department
22,746,448
17,034,293
13,269,954
13,783,111
15,559,019
(1,475,274)
68.4%
1,775,907
12.9%
Fire Department
14,790,120
11,264,770
10,124,717
10,788,292
11,486,993
222,223
77.7%
698,700
6.5%
PW Dept / Street Maint
7,574,988
6,047,440
5,074,768
5,296,669
5,407,255
(640,185)
71.4%
110,586
2.1%
Subtotal
69,067,388
52,319,897
42,557,026
45,388,431
49,899,764
(2,420,132)
72.2%
4,511,333
9.9%
Non Departmental
6,688,881
4,825,723
3,793,874
7,588,145
4,655,390
(170,333)
69.6%
(2,932,755)
-38.6%
Total Expenditures
75,756,269
57,145,620
46,350,900
52,976,577
54,555,154
(2,590,465)
72.0%
1,578,577
3.0%
%of Year 75.0%1
As of the end of September, all departments except Administrative Services and Fire are
operating within their allocated budgets. The overage in Administrative Services is
attributed to the Private LTE project that will be reimbursed by a state grant. The increase
in Fire is due to higher than anticipated contracted services including overtime and
increased call volume with dispatch services.
13
57
The table below displays General Fund expenditures by category. All categories are
performing within budgetary expectations. Salaries& Wages appear to be significantly
below budget. This does not represent a savings. The City has been involved in ongoing
labor discussions. Upon completion of negotiations there is an expectation of a retroactive
payment of salaries that will bring the account in line with expectations.
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
Variance
Year to Date Over/(Under) % of Annual
Actual Encumbrances Annual Budget Budget
EXPENDITURES:
Salaries & Wages 27.561.307 27.561.307 18.928.035 (8.633.272) 68.7%
Benefits 10.858.318 50.000 10.908.318 7.334.654 (3.573.664) 67.5%
Supplies 678.334 90.880 769.214 310.859 (458.355) 45.8%
Repair & Maintenance Supplies 450.010 450.010 280.052 (169.958) 62.2%
Resale Supplies 2.500 2.500 - (2.500) 0.0%
Small Tools 213.203 213.203 62.264 (150.939) 29.2%
Technology Supplies 110.798 232.416 343.214 270.859 (72.354) 244.5%
Fleet Supplies 7.000 - 7.000 4.758 (2.242) 68.0%
Professional Services 21.798.538 1.208.794 23.007.332 16,773.810 (6.233.521) 76.9%
Communications 440.528 - 440.528 328.380 (112,148) 74.5%
Professional Development 570.360 690 571.050 321.328 (249.722) 56.3%
Advertising 66.300 66.300 26.396 (39.904) 39 8%
Rentals 1.298.060 1.298,060 898.633 (399.426) 69.2%
Technology Services 1.031.264 1.031.264 710.731 (320.533) 68.9%
Utilities 2.244.354 2.244.354 2.003.235 (241.119) 89.3%
Repairs & Maintenance Services 1.286.418 1.286.418 1.017.489 (268.929) 79.1%
Other Expenditures 1.012.899 (325.000) 687.899 390.786 (297.113) 38.6%
Total Operating Expenditures 69.630.190 1.257,780 70.887,970 49.662.270 (21.225.700) 71 3%
Machinery & Equipment
Transfers Out
420.000 807.831 1.227,831 1.082.062 (145,769) 257.6%
5,706,078 122,151 5.828.229 3.810,823 (2.017.407) 66.8%
Total NonOperating Expenditure: 6.126.078 929.982 7.056,060 4.892.884 (2.163 176) 79.9%
Total Expenditures
75.756,268 2.187.762 77,944,030 54.555.154 (23.388.876) 72.0%
Beginning Fund Balance
Change in Fund Balance
Ending Fund Balance
19.085.142
(3.916.634)
515.168.508
(2.840.262) 16.244.880
464.849 (3.451 785)
S 12 793.095
16.244.880
(2.842.532)
S 13.402.349
14
58
CITY OF TUKWILA
2023 3rd QUARTER FINANCIAL REPORT
OTHER FUNDS FINANCIAL REPORT
Other Funds
Capital Projects
Q3 saw ongoing developments in capital projects. The Allentown Truck Reroute project
recommended alternatives for further consideration. The Transportation Element Comp
Plan incorporated community input into draft transportation networks. West Valley
Highway (1405 to Strander) Project completed significant work, including stripping and
installations. Construction progressed on Overlay & Repair, and Foster Point Repairs
were completed in Bridge Inspections. S 152nd Safe Routes to School moved forward
with design, and ADA improvements were embedded into ongoing projects. Public Works
Shops Phase 1 and Phase 2 advanced with roofing and painting updates.
Utility Funds
In the third quarter, Utility projects achieved significant milestones. The Levee
Certification/Green River Corridor project involved ongoing collaboration with the Army
Corps of Engineers. Regulatory reviews continued for the Surface Water, Water & Sewer
Comprehensive Plans, while the Surface Water Comp Plan was actively developed. The
GIS Utilities Inventory project, now nearing completion, benefited from the hired GIS Field
Technician's contributions. Construction progressed for the S 152nd Waterline Extension.
Gilliam Creek Fish Barrier Removal and Nelsen Side Channel projects advanced with
ongoing design work. Stormwater Quality Retrofit reached the 90% design stage, and the
City pursued wetland delineation for S 131st Drainage Improvements. The Annual Small
Drainage Program secured a design consultant, and NPDES Program compliance was
ensured through the successful hiring of new inspectors. The Green the Green project,
involving grants and vegetation management, continued, and the Chinook Wind Public
Access/Extension project received a grant of $280,000 for design activities.
Foster Golf Course
Foster Golf Course entered into a strategic partnership with GolfNow, a prominent player
in the online tee time booking service sector. This business arrangement has not only
facilitated an upgraded website for Foster Golf Course but has also resulted in increased
online visibility, amplifying the course's presence during customer searches for golf
facilities. Leveraging these enhancements, the department management successfully
justified a modest adjustment in Green Fees, aligning the cost of a round of golf with that
of other municipal golf courses in the city.
15
59
Equipment Rental
The Equipment Rental Fund has strategically leveraged the Enterprise Fleet Leasing
program by adding twelve new patrol vehicles into its fleet, thereby completing the
implementation of the Police Department's take-home vehicle program. This initiative not
only enhances response times but also strengthens the Police Department's competitive
edge in attracting new officers and recruits.
Additionally, the utilization of the fleet leasing program has enabled the Equipment Rental
department to capitalize on surplus vehicles during opportune periods, leading to elevated
resale values. The department has realized a noteworthy sum of $326,067 from the Sale
of Capital Assets, surpassing the budget by $164,317 (201.6%). This financial
achievement underscores the effective management and optimization of resources within
the department.
Lodging Tax
Lodging tax revenue is on pace to meet and exceed budget. Lodging tax revenue through
September is $787k and exceeds allocated budget by $61k.
Drug Seizure
For the period January 1st through September 30th, 2023, the seizure fund brought in
$79,010 through the Dept of Justice's Equitable Sharing program and $63,433 of funds
spent from these Seizure Funds was reimbursed by the Associated of Washington Cities
via their Alternative Response Team Grant (this is the program that partially funds the
Police Department's Mental Health Co -Responder program).
On the expenditure side, the Police Department sent $82,322 to Sound Mental Health as
contracted compensation for our two Mental Health Co -Responders (a portion of these
expenditures will be returned to us via the grant). The Police Department also spent
$11,423 of these Seizure Funds to replace our Special Response Team's (SWAT)
ballasted -rated helmets and $6,716 on a software program used by our detectives to aid
them in solving felony crimes.
Debt Service Funds
Debt Service is funded by budgetary approved interfund transfers. All long-term debt
obligations are paid timely and in accordance with the debt schedule.
Insurance — Active Employees / Insurance LEOFF 1 Retirees Funds
The Insurance funds are trending as anticipated. The funds are adequately funded, and
Program Cost expenditures are slightly under budget. Both funds are stable and well
positioned heading into Q4.
16
60
City of Tukwila
Contingency Fund
as of September 30, 2023
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
Variance
Year to Date Over/(Under) % of Annual
Actual Annual Budget Budget
REVENUE:
Investment Earnings 20.000 100,000 120,000 132.388 12,388 661.9%
Transfers In 170,470 170,470 (170,470) 0.0%
Total Revenues
EXPENDITURES:
20,000 270.470 290.470 132,388 (158,082) 661.9%
Total Expenditures
Beginning Fund Balance
Change in Fund Balance
Ending Fund Balance
7,042,148
20,000
S 7, 062,148
(295. 673) 6,746,475
270.470 290,470
S 7.036, 945
City of Tukwila
Hotel/Motel Tax Special Rev Fd
as of September 30, 2023
0.0%
6,746,475
132.388
S 6.878, 864
Annual
Budget
Budget Revised
Amendments Annual
(Consensus) Budget
Year to Date
Actual
Variance
Over/(Under)
Annual Budget
% of Annual
Budget
REVENUE:
Hotel/Motel Tax
720,000
- 720,000
700.171
(19.829)
97.2%
Investment Earnings
6,000
- 6,000
86.776
80,776
1446.3%
Total Revenues
726,000
- 726,000
786.947
60,947
108.4%
EXPENDITURES:
Salaries & Wages
Benefits
68,766
22,631
- 68,766
- 22,631
52.320
13.143
(16,446)
(9.488)
76.1%
58.1%
Supplies
2,000
- 2,000
154
(1.846)
7.7%
Professional Services
375,000
- 375,000
150.033
(224.967)
40.0%
Professional Development
Advertising
21,500
350,000
- 21,500
- 350,000
2.731
71.426
(18.769)
(278.574)
12.7%
20.4%
Technology Services
2,500
- 2,500
1.323
(1.177)
52.9%
Other Expenditures
70,000
- 70,000
-
(70.000)
0.0%
Total Operating Expenditures
912,397
- 912,397
291.131
(621,266)
31.9%
Indirect Cost Allocation
26,493
- 26.493
19 872
(6.621)
75.0%
Total NonOperating Expenditures
26,493
- 26,493
19.872
(6.621)
75.0%
Total Expenditures
938,890
- 938,890
311,003
(627.887)
33.1%
2,342.419
475.944
Beginning Fund Balance
Change in Fund Balance
2,048,201
(212.890)
294,218 2,342,419
- (212.890)
Ending Fund Balance
$ 1,835,311
$ 2,129,529
$ 2.818,363
17
61
City of Tukwila
Drug Seizure Fund
as of September 30, 2023
Budget Revised Variance
Annual Amendments Annual Year to Date Over/(Under) % of Annual
Budget (Consensus) Budget Actual Annual Budget Budget
REVENUE:
Grant Revenues - 60.000 60.000
Intergovernmental Revenue 35.000 35.000
Other Income 80.000 80.000
Investment Earnings 500 500
Total Revenues
63 433
79 010
3.433 0.0%
44.010 225.7%
(80.000) 0.0%
(500) 0.0%
115.500 60,000 175,500 142.443 (33.057) 123.3%
EXPENDITURES:
Salaries & Wages 100.107 (100.107) 0.0%
Benefits 48.901 (48.901) - 0.0%
Supplies 10.000 - 10.000 - (10,000) 0.0%
Small Tools 19.000 19.000 11.423 (7,577) 60.1%
Professional Services 15.000 149.008 164.008 82.322 (81,686) 548.8%
Professional Development 16.000 16.000 (16.000) 0.0%
Technology Services 22.000 22.000 6.716 (15.284) 30.5%
Total Operating Expenditures
231.008 231,008 100.462 (130.546) 43.5%
Machinery & Equipment
35.000 35.000 (35.000) 0.0%
Total NonOperating Expenditures 35.000
35.000
Total Expenditures
(35.000) 0.0%
266,008 266.008 100.462 (165.546) 37.8%
Beginning Fund Balance
Change in Fund Balance
Ending Fund Balance
435.515
(150.508)
5 285.008
(140.295) 295.220 295.220
60.000 (90.508) 41.981
5 204.713 S 337202
City of Tukwila
LTGO Debt Service Fund
as of September 30, 2023
REVENUE:
SCORE Contribution
Transfers In
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
Variance
Year to Date Over/(Under) % of Annual
Actual Annual Budget Budget
376,876 - 376,876 - (376,876)
5,802,194 5,802,194
0.0%
4.351.645 (1,450.549) 75.0%
Total Revenues 6.179,070 6,179,070 4,351.645 (1,827,425) 70.4%
EXPENDITURES:
Principal 4.005,836 4,005,836 - (4,005.836)
Interest Expense 2.173.234 2,173,234 994.044 (1,179,190)
Total Expenditures
6.179,070 6,179,070
Beginning Fund Balance
Change in Fund Balance
Ending Fund Balance
0.0%
45.7%
994,044 (5,185.026) 16.1%
3.357.601
S 3,357,601
18
62
City of Tukwila
UTGO Debt Service Fund
as of September 30, 2023
Annual
Budget
Budget Revised
Amendments Annual
(Consensus) Budget
REVENUE:
Property Tax
Investment Earnings
$ 4,485,975 $
1,200
Variance
Year to Date Overl(Under) % of Annual
Actual Annual Budget Budget
- $ 4,485,975 $
1.200
Total Revenues
4.487,175
2,473.800 $ (2,012,175) 55.1%
41,650 40,450
3470.8%
4.487,175 2,515.450
EXPENDITURES:
Principal
Interest Expense
1,980,000 1,980,000
2,505,975
(1.971,725) 56.1%
2,505,975 1,252.988
(1,980,000)
(1.252.988)
0.0%
50.0%
Total Expenditures 4,485,975 4,485,975 1,252,988 (3,232,988) 27.9%
Beginning Fund Balance
Change in Fund Balance
Ending Fund Balance
314,818
1.200
$ 316,018
87,811
402,630
1,200
$ 403,830
City of Tukwila
LID #33 & Guarantee Funds
as of September 30, 2023
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
REVENUE:
Special Assessment Interest
Investment Earnings
LID Assessment Principal
Total Revenues
125,000
3,000
400,000
125,000
3,000
400,000
402.630
1,262.462
$ 1,665.092
Variance
Year to Date Over/(Under) % of Annual
Actual Annual Budget Budget
112.694
28,509
382.843
(12.306)
25,509
(17,157)
90.2%
950.3%
95.7%
528,000 528,000 524,046 (3,954) 99.3%
EXPENDITURES:
Principal 400,000 400,000 400,000 100.0%
Interest Expense 125,000 19,188 144,188 144,188 115.4%
Total Expenditures
525,000 19,188 544,188 544,188 103.7%
Beginning Fund Balance
Change in Fund Balance
Ending Fund Balance
1.345,636
3,000
$ 1.348,636
(12,837) 1,332,799
(19,188) (16,188)
$ 1,316,612
1,332,799
(20,141)
$ 1,312,658
19
63
City of Tukwila
Residential Streets Fund
as of September 30, 2023
Annual
Budget
Budget Revised
Amendments Annual
(Consensus) Budget
Year to Date
Actual
Variance
Over/(Under)
Annual Budget
% of Annual
Budget
REVENUE:
Solid Waste Utility Tax
650,000
- 650.000
650.000
-
100 0%
Grant Revenues
4,033,000
(4.000.000) 33,000
3.133
(29,867)
0.1%
State Entitlements
268,800
- 268,800
220.737
(48.063)
82.1%
Investment Earnings
1.000
- 1.000
23.351
22.351
2335.1%
Transfers In
400,000 .
- 400.000
7.201
(392.799)
1.8%
Total Revenues
5,352,800
(4,000,000) 1,352,800
904,424
(448,376)
16.9%
PROJECTS
Traffic Calming/Residental Safety
650,000
(250,000) 400,000
65,720
(334,280)
10.1%
46th Ave S Safe Routes to School
510,000
(510.000) -
-
-
0.0%
S 152nd St Safe Routes School
4,015,000
(4,015,000) -
40.749
40.749
1.0%
S 119th St Br/ 42nd Ave S RRFB
250,000
- 250,000
114,699
(135,301)
45.9%
53rd Ave S
243,500
- 243,500
121.121
(122.379)
49.7%
42nd Ave S Phase III
243,500
- 243,500
121.370
(122.130)
49.8%
Total Expenditures by Project
5,912,000
(4,775,000) 1,137,000
463,659
(673,341)
7.8°0
Beginning Fund Balance
847,903
(113,497) 734,407
734.407
Change in Fund Balance
(559,200)
215,800
440.765
Ending Fund Balance
$ 288,703
$ 950,207
$ 1.175.171
20
64
City of Tukwila
Arterial Street Fund
as of September 30, 2023
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
REVENUE:
Solid Waste Utility Tax
Parking Tax
Real Estate Excise Tax (REET)
Permits
Franchise Fees
Grant Revenues
State Entitlements
Traffic Impact Fees
Fines and Penalties
Concurrency Fees
Investment Earnings
Variance
Year to Date Over RUnderi % of Annual
Actual Annual Budget Budget
490.000 490.000 319.683 (170.317) 65.2%
600.000 600.000 594.268 (5.732) 99.0%
500.000 500.000 190,268 (309.732) 38.1%
- 831 831 0.0%
75.000 75.000 (75.000) 0.0%
2.779.000 2.779.000 513.326 (2.265.674) 18.5%
144.800 144.800 112.785 (32.015) 77.9%
200.000 200.000 765.241 565.241 382.6%
- 11.081 11.081 0.0%
80.000 80.000 166.534 86.534 208.2%
5.000 5.000 193.018 188.018 3860.4%
Total Revenues 4.873,800 4.873.800 2,867.035 (2,006.765) 58.8%
PROJECTS
Transportation Elmnt-Comp Plan
Annual Bridge Inspections
Annual Overlay & Repair
Annual Traffic Signals
Annual Traffic Counts
S 144th St Bridge - Sidewalks
ADA Improvements 2015
Green River Trail Improvements
42nd Ave S Bridge Replacement
Allentown Truck Reroute Proj
Solid Waste Program
Wetland Monitoring
W Valley Hwy (I-405-Strander)
Public Records Request
Other/Misc
300.000 (300.000) - 180.610 180.610 60.2%
200.000 200.000 87.818 (112.182) 43.9%
1.400.000 1,400.000 1.119.538 (280.462) 80.0%
130.000 130.000 43.205 (86.795) 33.2%
6.000 6.000 0.0%
100.000 (100.000) - 261 261 0.3%
50.000 50.000 306 (49.694) 0.6%
1.297.000 (1.150.000) 147.000 89.051 (57.949) 6.9%
1.500.000 1.500.000 714.457 (785.543) 47.6%
600.000 (750.000) (150.000) 265,841 415.841 44.3%
32.195 32.195 0.0%
8.476 8.476 0.0%
654.531 654.531 0.0%
634 634 0.0%
572.662 572.662 207.539 (365.122) 36.2%
Total Expenditures by Project
6.149.662 (2.300.000) 3.849 662 3,410.463 (439.199) 55.5%
Beginning Fund Balance
Change in Fund Balance
6.570.879
.1.275.862)
(1 036 386)
2.300 000
5.534.493
1.024.138
Ending Fund Balance
3 5 295 017 S 6 558 631
5.534.493
(543.427)
S 4.991 065
21
65
City of Tukwila
Land Acq., Rec. & Park Devlpmn
as of September 30, 2023
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
REVENUE:
Property Tax
Real Estate Excise Tax (REET)
Park Impact Fees
Investment Earnings
Transfers In
Variance
Year to Date Over/(Under) % of Annual
Actual Annual Budget Budget
$ 165,000 $ $ 165,000 $ 129,956 $ (35,044)
150,000 150,000 36.224 (113,776)
100,000 100,000 980.841 880,841
8,000 8,000 122.618 114.618
64,250 51.681 115,931 64.250 (51.681)
Total Revenues
78.8%
24.1%
980.8%
1532.7%
100.0%
487,250 51,681 538,931 1,333,888 794,957 273.8%
PROJECTS
Art Projects 64.250 64,250 60.688 (3,562) 94.5%
Park Improvements 742.000 - 742,000 (742,000) 0.0%
Foster & TCC Parks Master Plan 2,588 2,588 0.0%
Parks Maintenance 147.719 147,719 0.0%
Multipurpose Trails 125,000 125,000 (125,000) 0.0%
Other/Misc 5.917 5.917 0.0%
Total Expenditures by Project
931,250 931.250 216,911 (714.339) 23.3%
Beginning Fund Balance
Change in Fund Balance
Ending Fund Balance
3,751,186
(444.000)
$ 3,307.186
(681,383) 3.069,803
51,681 (392.319)
$ 2,677.484
City of Tukwila
Urban Renewal
as of September 30, 2023
3.069.803
1,116,977
$ 4.186.781
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
REVENUE:
Investment Earnings
Sale of Capital Assets
1.350.000 - 1.350.000
Total Revenues
1,350,000 - 1,350,000
EXPENDITURES:
Utilities
Transfers Out
300.000 730,000 1.030.000
Total Expenditures
Variance
Year to Date Over/(Under) % of Annual
Actual Annual Budget Budget
64,184 64,184
0.0%
(296,496) (1,646,496) -22.0%
(232.312) (1.582.312) -17.2%
3.927
3,927
(1,030,000)
0.0%
0.0%
300,000 730,000 1,030,000 3.927 (1,026.073) 1_3%
Beginning Fund Balance
Change in Fund Balance
Ending Fund Balance
1.183,800
1,050,000
$ 2,233,800
220,443 1,404,242
(730,000) 320,000
$ 1,724,242
3,411,652
(236,239)
3,175.413
22
66
City of Tukwila
General Govemmnt Improvements
as of September 30, 2023
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
REVENUE:
Grant Revenues
Investment Earnings
Transfers In
1.800,000 (1,800,000)
1.000
100,000 (100,000)
Variance
Year to Date Over/(Under) % of Annual
Actual Annual Budget Budget
1.000 17,323 16.323
0.0%
1732.3%
0.0%
Total Revenues 1,901,000 (1,900,000) 1,000 17.323 16,323 0.9%
PROJECTS
TC HVAC Replacement
Citywide Facilities Plan
City Hall Siding Repairs
Other/Misc
2,000,000 (1.865.000) 135,000 (135,000) 0.0%
340,000 (340,000) - - - 0.0%
149,200 149,200 149,185 (15) 0.0%
5,128 5,128 - (5,128) 0.0%
Total Expenditures by Project
2,345,128 (2,055,800) 289,328 149,185 (140,143) 6.4%
Beginning Fund Balance 444,128 109,258 553,386
Change in Fund Balance (444.128) 155,800 (288,328)
Ending Fund Balance $ $ 265,058
City of Tukwila
Fire Improvements
as of September 30, 2023
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
553,386
(131,862)
$ 421.524
Variance
Year to Date Over/(Under) % of Annual
Actual Annual Budget Budget
REVENUE:
Fire Impact Fees 300,000 450.000 750,000 697.505 (52.495) 232.5%
Total Revenues
EXPENDITURES:
Transfers Out
300,000 450,000 750,000 697,505 (52,495) 232.5%
300,000 450,000 750,000 - (750.000) 0.0%
Total Expenditures
300,000 450,000 750,000 (750,000) 0.0%
Beginning Fund Balance
Change in Fund Balance
Ending Fund Balance
697,505
$ 697.505
23
67
City of Tukwila
Public Safety Plan
as of September 30, 2023
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
Variance
Year to Date Over/(Under) % of Annual
Actual Annual Budget Budget
REVENUE:
Real Estate Excise Tax (REET) 500.000 - 500.000 154.045 (345.955) 30.8%I
Fire Impact Fees 300.000 - 300.000 - (300.000) 0.0%
Investment Earnings - 36,625 36,625 0.0%
Transfers In 300.000 450.000 750.000 (750,000) 0.0%
Total Revenues
1,100.000 450,000 1,550,000 190.670 (1,359,330) 17.3%
EXPENDITURES:
Repairs & Maintenance Services
Transfers Out
1.319.019 1,319,019
Total Expenditures 1.319,019
(1,700) (1,700)
1,319,019 (1,700)
Beginning Fund Balance
Change in Fund Balance
Ending Fund Balance
538,557
(219,019)
$ 319,538
453,309 991,865
450,000 230,981
$ 1,222,846
City of Tukwila
City Facilities
as of September 30, 2023
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
REVENUE:
Investment Earnings
Transfers In
1.000 - 1,000
2.140,000 1.000,000 3.140,000
Total Revenues
2,141,000 1,000,000 3,141,000
PROJECTS
Public Works Shops 2,500,000 200,000
Minkler Improvements 200,000 (200,000)
Other/Misc - -
2,700,000
0.0%
(1,319,019) 0.0%
(1,320.719) -0.1%
991,865
192,369
$ 1,184.235
Variance
Year to Date Over/(Under) % of Annual
Actual Annual Budget Budget
26.541 25.541
(3.140.000)
2654.1%
0.0%
26.541
(3,114,459) 1.2%
1.779.370 (920,630) 71.2%
0.0%
0.0%
Total Expenditures by Project 2,700,000 2.700,000 1,779.370 (920.630) 65.9%
Beginning Fund Balance
Change in Fund Balance
Ending Fund Balance
2,274,324
(559.000)
$ 1.715,324
(314.958) 1,959,366
1,000,000 441,000
$ 2,400,366
1.959.366
(1,752,829)
$ 206.537
24
68
City of Tukwila
Water Utility Fund
as of September 30. 2023
8u:get Revised Variance
Annual Amendments Annual Year to Date Oveo'IUnder) % of Annual
BL.i.toct 1Consensusl Budget Actual Amual Budget Budget
REVENUE:
Viater Saes
Security Revenue
Interest on Recelvablez
21.000
7.647.000 6.161.545
8.557
21.000 19.143
11.485.4551
8.557
11.857)
80.6`5
0.0'%,
91.2'h
TOW OperaSrg Revere ee 7.668.000 7.668.000 6.189.245 (1.478.755) 80.7%
Investment Earning: 60.000 .50 C00 147 4.87 81.487 235.8` 1
Told Non-Ogenling Revenues 60.000 60.000 141.487 81.487 235.8%
TOW Revenues 7 728.000 7.728.000 6 330.732 11.397.2681 81.9'%,
EXPENDITURES.
Salares 8 Wages 707.380 707.380 547.612 (159.768) 77.4%
BeneCts 274.851 274.851 251.367 (23.484) 91.5%
Supp:es 29.000 29.000 13.027 (15.973) 44.9%
Repair & Mantenance Supplies 115.500 115.500 55.127 (60.373) 47.7%
Small Tools 14.000 - 14.000 6.915 (7.085) 49.4%
Technology Supplies 1.000 1.000 396 (604) 39.6%
Utility rund Supplies 2773243 2.773.243 2.611.186 (162.057) 94.2%
Professional Services 115.491 115,491 181.510 66.019 157.2%
Communications 8.000 8.000 5.795 (2.205) 72.4%
Pro(essonal Development 12.000 12.000 12.477 477 104.0%
Advertising 1.459 1.459 0.0%
Rentals 1.600 1.600 1,782 182 111.4%
Technology Services 15.000 15.003 17,051 2.051 113.7%
Utilities 46.600 46.600 19.599 (27.001) 42.1%
Repairs 8 Maintenance Services 94.976 94.976 325.154 230.178 342.4%
Other Expenses 1.131.750 1,131.750 998.851 (132.899) 88.3%
TOW Operating Expendhoes 5.340.390 5.340.330 5.049.309 (291.082) 94.6%
Other Capital Improvements 50.000 50.000 (50.000) 0.0%
Construction Prolectr 1.880.000 1.880.000 466.103 (1.413.897) 24.8%
Principal 122891 122.891 80.625 (42.266) 65.6%
Interest Expense 4.929 4.929 2.868 (2.062) 58.2%
Transfers Out 1.052.804 1,052.804 283.353 (769.451) 28.9%
Indirect Cost AIlocrton 740.347 740.347 555.264 (185.083) 75.0%
Ta111 NonOper.Lng ExpenditureS 3.850.972
3.650.972
' 388.213 (2.462.7591 38.0%
TOW 6tpendRwes
9.191.362
9.191.362
8.437522 (2.753.840) 70.0%
Beginning Fund Balm •.
Change it Fund Balance
Ending fund Balance
4.690.562
(1.463.3821
S 3.227.2C0
479.614 5.170.176
'.463.3621
S 3.7C6 814 S
5.170.176
(106.7901
5.063.386
25
69
City of Tukwila
Sewer Utility Fund
as of September 30. 2023
Budget Rcwscd
Annual Amendment: Annual Year to Data
Budget (Consensus' Budget Budget
Variance
Year to Date Over,iUrder) % of Annual
Actual Annual Budget Budget
REVENUE
Sewer Sates 10,802 300 10.802.300 8.101,725 7.659.358 i2 4=.942I 70 y`:
Intern onRccenavabie: 30.000 30.000 22.500 45.7'5 15.7'5 -524`
Told Operating Revenue* 10.832300 10.832.300 8.124,225 7,706.073 (3.1272271 71.1%
Investment Earnings 50.000 50.000 37.500 369.050 319.050 738.1%
Total Non-OpaeBlq Re en e8 50.000 50.000 37.500 369.050 319.050 738.1%
Total Revenues 10.662300 10.882.300 8.161.725 8.074.123 12.808.177) 74.2%
ExPENDfTUFRES:
Salares 8 Wage: 947.190 947.190 710.393 648.398 (298.792) 68.5%
Benefits 340.550 340.550 255.414 282.750 (57.801) 83.0%
Supp:cs 6200 6.200 4.650 4.512 (1.688) 72.8%
Repair & )d3ntenancc Swplres 17,600 17.600 13200 8.536 (9.064) 48.5%
Small Tools 5.000 5.000 3.750 3,439 (1,561) 68.8%
Technology Supplies 2.500 2.500 1.875 - (2500) 0.0%
Utility rtrtd Supplas 5.525.960 5.525.950 4.144,470 3229.546 (2.29(5.414) 58.4%
Professional Service.: 253437 253.437 197.312 244.816 (8.621) 96.8%
Communications 7.000 7.000 5.250 2.994 (4.006) 42.8%
Professional Development 5000 - 5.000 3,750 1.827 (3.173) 36.5%
Adyorusmg - - 1.535 1,535 0.0%
Rentals 24.916 24.916 18.687 17.199 (7,717) 69.0%
Technology Services 153000 15.000 11250 18.341 3.341 122.3%
Utilities 50.430 50.430 37.823 30.058 (20.372) 59.8%
Repairs S Maintenance Services 1.127.567 1127.567 758.174 402.535 (725.032) 35.7%
Other Expenses 1.342 930 1.342.930 1.007.197 • 007.454 035.476) 75.0%
TOW Operating Experdlaee 9.671.281 9671281 7.173.194 5.903.941 13.787.340) 61.0%
Corructron Pro.ectr. 1.300.000 1.300.030 866.667 '1,300.000) 0.0%
Principal 334223 334.223 233.436 233436 (100.787) 69.8%
Intern Expense 13.813 13.813 8.897 8.897 (4.916) 64.4%
Transfers Out 605.949 605.949 460.963 175.962 (429.987) 29.0%
Indirect Cost Allocaton 623.733 623.733 467.802 467.802 (155.931) 75.0%
Total NonOpeailg Expenditures 2 877 719
2.877.719 2.037.764
888.097 (1.901.622) 30.8%
Total Expers:Ilk/es 12,549.000 - 12509.003 9210.969 6.790.038 15,758.982) 54.1%
Beginning rune O:rarce
Chanoc n run:" "cc
11.742.027 536.097 12 278.125
(1.866.700) :56,7001
Endmq r.:•• • " S 10.075.327
S • 425
12 278.125
264.065
13 562.210
70
City of Tukwila
Foster Golf Course
as of September 30, 2023
3uoget Re•.' sei
Annual Amendments Anrua
Budget (Consensus) Buoget
REVENUE:
E..c se T3:.e3
3'-i Re_.ea:: i. Fees
Total Operating Revenues
3.000
1.412.500
145.000
2.000
t C.000
100.000
Variance
Year to Date Over!(Under) % of Annual
Actual Annual Budget Budget
3.000 - (3.000) 0.0%
1.512.500 1.808.022 95.522 113.8%
145.000 150.473 5.473 103.8%
2.000 1.405 (595) 70.3%
10.000 28.886 18.888 288.9%
1 572.500 130.003 1.872.E 1.788.588 116.086 113.7%
Investment Earnings 2000
Rent & Concessions 423.3C0
Transfers In 3C0.000
Sale of Capital Assets -
2,030
42.0.030
300.000
51.472
423.466
225.000
12.800
49.472
3.408
(75.000)
12.800
2573.8%
100.8%
75.0%
C.0%
Total Non -Operating Revenues 722.000 722.030 712.738 (9.262) 98 7%
Total Revenues
2.294.500 100.000 2.394.500 2.501. 323 106.823 109.0 %
EXPENDITURES:
S3 3res & . ges 931.842 931.642 817.722 (314.519) 68.2%
3ene5s 372.040 372.040 272.193 (99.847) 73.2%
Slop es 4.250 4.250 4.019 (231) 94.6%
Repair & Maintenance Supplies 83.500 83.500 108.985 23.465 128.1%
Resale Supp. es 98.500 96.500 101.050 4.550 104.7%
Small Tools 4.500 4.500 82.585 78.085 1834.8%
Fleet Supplies 38.000 - 38.000 28.688 (9.312) 74.1%
Professional Services 32.575 25.000 57.575 58.816 (759) 174.4%
Communications 4.900 4.900 7.176 2.278 148.5%
Professional Development 1.935 - 1.935 1.990 55 102.8%
Advertising 5.000 5.000 4.476 (524) 89.5%
Rentals 39.000 39.000 28.167 (10.833) 72.2%
Technology Services 4.000 4,000 - (4.000) 0.0%
Utilities 82.700 - 82.700 70.180 (12.520) 84.9%
Repairs & Maintenance Services 34.500 50.000 84.500 149.378 64.876 433.0%
Other Expenses 30.520 25.000 55.520 65.728 10.206 215.4%
Total Operating Expenditures 1.783.582 100.000 1.863.582 I 1.504.5111 (269.051) 90.4%
Other Capital Improv e^-erts
Machinery & Equipment
Indirect Cost Allocation
230.000 80.000 310.000 (310.000) 0.0%
100.000 100.000 28.582 (71.418) 28.6%
219.309 219.309 184.484 (54.825) 75.0%
Total NonOperating Expenditures
549.309 80.000 629.309 193.086 (438.243) 35.1%
Total Expenditures
2.312.871 180.000 2.492.871 1.787.577 (705.294) 77.3%
27
71
City of Tukwila
Surface Water Utility Fund
as of September 30, 2023
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
RE''.ENUE
7.717.500
Z 176.000
1.444.000
Total Operating Revenues 11.337.500
.es:me : Ear^. --
7.717,500
2.178.000
1.444.000
Variance
Year to Date Over;(Under) % of Annual
Actual Annual Budget Budget
7.787.059
81,177
92.747
49.559
(2.114.823)
(1.351.253)
100.8%
2.8%
8.4%
11,337.500 7.920.983 (3.416,517) 89.9%
30.000 30.000 230.693 230.693 789.0%
Total Non -Operating Revenues
30.000 30.030 230.693 200.693 769.0%
Total Revenues
11,367.500 11.387.500
8.151.677 (3.215.823) 71.7%
EXPENDITURES:
Sa ares & Wages 1.555.045 1.555.045 906.268 (848. 77) 58.3%
Benefits 703.378 700.378 413.927 (286.451) 59.1%
Suppmes 20.300 20.300 15.053 (5.247) 74.2%
Repair & Maintenance Supplies 17.500 17.500 11.870 (5.830) 87.8%
Small Tools 8,500 8,500 9.057 2.557 139.3%
Technology Supplies 500 500 1.804 1.104 320.8%
Professional Services 4.103,137 4.103.137 503.787 (3.599.350) 12.3%
Communications 7.100 7,100 7,877 577 108.1%
Professional Development 7.990 7.990 6.128 (1.884) 76.7%
Advertising - - 1.939 1.939 0.0%
Rentals 4,000 4.000 12 (3.988) 0.3%
Technology Services 3.000 3.000 18.887 13.887 582.9%
Utilities 90.885 90.685 18.170 (72.515) 20.0%
Repairs & Maintenance Services 59.000 59.000 35.999 (23.001) 81.0%
Other Expenses 882.475 882,475 853.337 (9.138) 98.9%
Total Operating Expenditures 7.437.810 7.437,810 2.801.713 (4.635.397) 37.7%
Other : ap:tal ! mp-overner s 900.000 900.030 - (930.000) 0.0%
Construction Projects 1.687,000 1.887,000 30.114 (1.858.886) 1.8%
Principal 278.883 278.883 250.358 (19.507) 93.0%
Interest Expense 4,497 4,497 3.545 (952) 78.8%
Transfers Out 1.441.812 1,441.612 377.959 (1,083.853) 26.2%
Indirect Cost Allocation 659.842 859.842 494.883 (164.959) 75.0%
To NonOperating Expenditures 4.971,813
4.971.813
Total Expenditures
1.165.857 (3.805.957) 23.4%
12,400.424 12.409.424 3067.570 (8.441.854) 32.0%
28
72
City of Tukwila
Equipment Rental
as of September 30, 2023
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
Variance
Yew to Date Over/(Under) % of Annual
Actual Annual Budget Budget
RE'.ENJE
. _ . _ . _ _ _ 2.058.241 2.058.241 1.542,178 (514.065) 75.0%
E. _ _ _ •_ : - - 85 85 0.0%
Investment Earnings 20.000 20.000 153.138 133.138 785.7%
Sa'e of Capital Assets 181,750 181.750 328.087 184.317 201.8%
Total Revenues 2.237.991 2.237.991 2.021,464 (218.52, i 9C 3%
EXPENDITURES:
Sa ares & Wages 478.273 478,273 257.889 (218.404) 54.1%
Benefits 227,102 227.102 130,859 (98.443) 57.5%
SuppZies 3.350 3.350 2.316 (1.034) 89.1%
Repair & Maintenance Supplies 643 843 0.0%
Small Toots 10,750 10.750 4.482 (8.268) 41.7%
Technology Supplies 8,200 8.200 339 (5.881) 5.5%
Fleet Supplies 710.000 710,000 528.218 (181.783) 74.4%
Professional Services 102.100 102.100 101.917 (183) 99.8%
Communications 5.000 5.000 3.584 (1.438) 71.3%
Professional Development 5,850 5.850 5.802 (48) 99.2%
Advertising 50 50 0.0%
Rentals 1,500 1.500 273.847 272,347 18258.5%
Technology Services 10.500 10.500 4,684 (5.818) 44.8%
Utilities 4,000 4,000 784 (3.238) 19.1%
Repairs & Maintenance Services 153.771 153,771 200,143 46.372 130.2%
Other Expenses 500 500 - (500) 0.0%
Total Operating Expenditures 1.718.896 1,710,896 1,515.298 (201509) 88.3%
Machinery & Equipment
Indirect Cost Allocation
1.143.558 1.143.558 147,238 (998,318) 12.9%
350.392 350.392 282.791 (87.601) 75.0%
Total NonOperating Expenditures 1.403.9413
1.493,948
410,029 (1.083.919) 27.4%
Total Expenditures 3,210.844 3.210.844 1,925.328 (1.285.518) 80.0%
Beginning Fund Balance 4.322.760 (100.403) 4.222.357
Change in Fund Balance (972.853) - (972.853)
Ending Fund Balance S 3.349.937 $ 3.249.504
4.222.357
96.138
4.318.495
29
73
City of Tukwila
Insurance - Active Employees
as of September 30, 2023
REVENUE:
Investment Earnings
Employee Trust Contributions
Employer Trust Contributions
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
6,000
294,885
5.903,457
6,000
294,885
5.903,457
Variance
Year to Date Over/(Under) % of Annual
Actual Annual Budget Budget
149.059 143,059
117,362 (177.523)
4.202.484 (1,700.973)
2484.3%
39.8%
71.2%
Total Revenues 6,204,342 6,204,342 4,468,905 (1,735,437) 72.0%
EXPENDITURES:
Insurance Program Costs 5,750,222 5,750,222 4,102.303 (1,647,919) 71.3%
Supplies 628 628 0.0%
Professional Services 100,000 100,000 47.577 (52.423) 47.6%
Other Expenses 21,000 21,000 102 (20.898) 0.5%
Total Operating Expenditures 5,871,222 5,871,222 4,150,610 (1,720.612) 70.7%
Indirect Cost Allocation 189,639 - 189.639 142.227 (47.412) 75.0%
Total NonOperating Expenditures 189,639
189,639 142,227 (47,412) 75.0%
Total Expenditures
6,060,861 6.060,861 4,292,837 (1,768.024) 70.8%
Beginning Fund Balance 764,171 1,607,526 2,371,697
Change in Fund Balance 143,481 - 143,481
Ending Fund Balance $ 907,652 $ 2,515,178
City of Tukwila
Insurance - LEOFF I Retirees
as of September 30, 2023
2,371,697
176.068
$ 2,547,766
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
Variance
Year to Date Over/(Under) % of Annual
Actual Annual Budget Budget
REVENUE:
Investment Earnings 500 500 5.583 5,083 1116.6%
Employer Trust Contributions 350,000 50.000 400,000 239.738 (160.262) 68.5%
Total Revenues
350,500 50,000 400,500 245.321 (155,179) 70.0%
EXPENDITURES:
Insurance Program Costs 426,296 - 426,296 348.239 (78,057) 81.7%
Professional Services 5,000 - 5,000 (5,000) 0.0%
Other Expenses 500 500 (500) 0.0%
Total Operating Expenditures
431,796 431,796 348.239 (83,557) 80.6%
Indirect Cost Allocation
12.642 - 12.642 9.486 (3,156) 75.0%
Total NonOperating Expenditures 12.642
12.642 9.486 (3.156) 75.0%
Total Expenditures
444,438 444,438 357,725 (86,713) 80.5%
Beginning Fund Balance
Change in Fund Balance
Ending Fund Balance
258,737
(93.938)
$ 164,799
(84,183) 174,554
50,000 (43.938)
$ 130,616
174,554
(112,404)
$ 62.150
30
74
City of Tukwila
Firemen's Pension Fund
as of September 30, 2023
Budget Revised
Annual Amendments Annual
Budget (Consensus) Budget
Variance
Year to Date Over/(Under) % of Annual
Actual Annual Budget Budget
REVENUE:
Fire Insurance Premium Tax 74.000 - 74,000 86.708 12,708 117.2%
Investment Earnings 1.500 - 1.500 55,424 53.924 3694.9%
Total Revenues
75,500 - 75,500 142.132 66,632 188.3%
EXPENDITURES:
Benefits 60,000 60,000 - (60.000) 0.0%
Professional Services 2,000 2,000 - (2.000) 0.0%
Total Operating Expenditures
62,000 62,000 (62.000) 0.0%
Total NonOperating Expenditures - 0.0%
Total Expenditures
62,000 62,000 (62.000) 0.0%
Beginning Fund Balance 1,543,370 22,737 1,566,108
Change in Fund Balance 13.500 - 13,500
Ending Fund Balance $ 1,556,870 $ 1,579,608
1,566,108
142,132
$ 1,708.240
31
75
76
City of Tukwila
Thomas McLeod, Mayor
Finance Department — Vicky Carlsen, Director
TO: Finance and Governance Committee
FROM: Vicky Carlsen, Finance Director
BY: Julie Hatley, ARPA Funds Analyst
CC: Mayor McLeod
DATE: March 25, 2024
SUBJECT: Total 2023 American Rescue Plan Act (ARPA) Expenditures & Community Benefits
ISSUE
Staff is reporting the total 2023 ARPA-funded expenditures, and information detailing the benefits of the
expenditures to the community, per 2023 budget allocations approved by City Council through the 2023-
2024 biennial budget process.
BACKGROUND
On March 10, 2021, a $1.9 trillion relief package, known as the American Rescue Plan Act, was approved
and provided funding in several areas including state and local aid, education, rental assistance, and transit.
The City was allocated $5.68 million with the first half received in June of 2021 and the second half received
in July of 2022. Funds must be spent or contractually committed by December 31, 2024.
DISCUSSION
The tables that follow outline total 2023 ARPA-funded expenditures from January 1, 2023, to December 31,
2023, per data available through January 31, 2024. Each expenditure meets Treasury compliance
requirements and directly or indirectly benefits the visitors, residents, and businesses in our community.
Administrative Services:
Allocation
Total 2023
Allocation
Total 2023
Expenditures
Community Benefits Summary
DarkTrace Cyber
Security
$25,000
$28,239
*Specific details not released to ensure security risk is not created.
*Over budget by $3,239.
Allocation
Total 2023
Allocation
Total 2023
Expenditures
Community Benefits Summary
Leadership Initiative
(TCLI)
$25,000
$22,092
*Community -led program — supported by the City of Tukwila —to increase and
build upon existing and future leaders in civic engagement, City services, policies
and programs.
*Led with equity lens and embrace inclusivity for betterment of Tukwila's diverse
community.
*Program relaunched October 2023 with twelve community members, from
various backgrounds, who attended seven weeks of programming.
*Guest speakers and themed meetings focused on learning, community -building,
and understanding how local government impacts the community.
*Participants were able to identify important issues and advocate for change that
helps all Tukwila communities thrive.
I
Community Development:
Allocation
Total 2023
Allocation
Total 2023
Expenditures
Community Benefits Summary
Permit Processing
(2 positions)
$246,429
$237,222
*Permit Center service capacities increased in 2023 compared to 2022. See graph.
*Comparison of 2022 vs. 2023 walk-in traffic not provided by Permit Center due to
doors not open to public until March 2022.
*In January 2023, Permit Center increased public access days from two to three
days per week.
*In September 2021, there was backlog of over 200 permits that were overdue.
Today there are no overdue permits or backlog of reviews.
*Still open 3 days/week to public. Available 5 days/week via phone, email, plus
ability to schedule appointments online with Microsoft Bookings on website.
*DCD is consistently updates forms, handouts, and website due to code and policy
changes to keep customers informed and updated.
*Newly adopted 2021 International Building Codes effective on March 15th.
*Permit Center is fully staffed at six positions (two staff out on medical leave).
Permit Processing Increased Service Capacity in 2023 Compared to 2022
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2023 vs. 2022 Permit Center Activity
2022 2023
■ Inspections 6148 8147
■ Permits 2012 2416
■ Walk Ins 574 1007
■ Inspections ■ Permits ■ Walk Ins
9,000
8,000
7,000
6,000
5,000
a fnn
3,000
2,000
1,000
1
-
2022
■ Inspections 6,148
■ Permits 2,012
■ Walk Ins 574
2022 vs 2023
1
1
■
2023
8,147
2,416
1,007
Increase
75%
83%
0
78 Finance Department:
Allocation
Total 2023
Allocation
Total 2023
Expenditures
Community Benefits Summary
ARPA Funds Analyst
$141,511
$126,779
*Reconciled each individual expenditure for all department allocations (monthly,
quarterly, half -yearly, and annually).
*Represented the City's ARPA Program at 2023 NLC Congressional Conference in
Washington DC. Presented to Senator Murray's and Senator Cantwell's advisory
staff, discussed ARPA with City lobbyist, and participated in ARPA-specific
discussions, roundtables, and interviewed US Treasury representatives.
*Prepared & successfully submitted 2023 ARPA annual report to US Treasury.
*Recorded & reported ARPA expenditures for 2022 State Audit. No findings.
*Researched options to request additional ARPA funds from WA State. No
programs available.
Public Works:
Allocation
Total 2023
Allocation
Total 2023
Expenditures
Community Benefits Summary
Residential Street
Maintenance
(2 positions)
$225,641
$200,656
Maintenance Accomplishments
*Mow Right of Way (ROW) along roadways for visibility and safety.
*Blew leaves from sidewalks, plus swept leaves and debris to maintain cleanliness
throughout City.
*Trim, weed, mulch, and spray vegetation in ROW for beautification and safety.
*Shut down and blow out twenty irrigation systems.
*Asphalt repair for potholes and other repairs City wide.
*Snow and ice response with plowing and deicing roads.
*Guardrail repairs at 58th and Orillia Road.
*Homeless encampment cleanups at 180th bridge, 146th, Tukwila International
Blvd and along the Green River.
*Improved lighting along Tukwila International Blvd.
*Litter control and illegal dumping cleanups in ROW areas.
Benefits of Maintenance:
*Public safety.
*Resident preference.
*Beautify environment for visitors.
*Maintain infrastructure.
*MUTCD required maintenance.
79
Allocation
Total 2023
Allocation
Total 2023
Expenditures
Community Benefits Summary
Traffic Calming
$400,000
$257,977
2022 Overlay Program (Project delayed due to cold/wet weather.)
*Permanent Channelization (street markings for traffic and pedestrians):
-Crosswalk and Stop Bars throughout the 2022 Overlay area.
-Edge striping to delineate pedestrian walking paths.
-Final warning indicators at speed cushions and Rectangular Rapid Flashing Beacons
(RRFBs) near Foster High School and TCC in Allentown.
2023 Overlay Program
*Speed Cushions on 37th Ave S and S 140th St.
*Permanent Signage on various streets within Overlap scope.
*Entire effort to construct 119th/42nd Pedestrian Bridge Crossing:
-Remove pavement/sideway in conflict with work.
-Install new ADA complaint sidewalk on both sides of 42nd at X-walk.
-Install raised crosswalk platform.
-Narrow roadway slightly at crosswalk to provide traffic calming.
-Replace pavement on both approaches to new X-walk.
-Provide channelization (roadway striping and legal X-walk markings).
Benefits
*Provide permanent pedestrian safety at all locations.
*Increase safety for all modes of traffic especially in significant resident density
areas and areas of substantial of traffic transiting between Military Road and TIB.
Recreation:
80
Allocation
Total 2023
Allocation
Total 2023
Expenditures
Community Benefits Summary
YOUTH After School
Activities Program
& YOUTH
Enrichment Classes
(ASAP)
$141,950
$122,658
New, Free Mobile Rec Program
*Recreational games and activities at various locations throughout the community
during summer with 928 participant units.
*Reduced barriers for those unable to attend other programs due to transportation
or cost issues.
*Increased accessibility to activities around the community.
*Program will resume summer of 2024 with plans to offer annually.
Participation
*First Half 2023 Youth After School/Enrichment had 5,636 participant units.
*Down 15% compared to 2022 due to fees charged beginning January 2023 (no
longer free program due to no-shows affecting attendance).
*2019 pre -pandemic participant units were 11,155 for combined Before & After
School programming.
*Early Bird (Before School) planned to resume Fall 2024. Barrier has been
coordinating transportation with school district.
Benefits
*Restored After School programs & frozen staff positions from pandemic.
*Enrichment currently provides Kung Fu instruction.
*ASAP provides safe childcare, homework help, STEM & educational activities, low
& high energy games, art & crafts, social & emotional learning projects, free play
and field trips.
*Important socialization especially after pandemic closed schools and community
activities.
Allocation
Total 2023
Allocation
Total 2023
Expenditures
Community Benefits Summary
PRESCHOOL
Enrichment Program
(ASAP)
$28,050
$23,631.12
*Extra enrichment programming helps address negative impact of pandemic on
school readiness.
*Focuses on socialization, classroom & relationship building skills, motor skills, and
educational enrichment needed for kindergarten success.
*Pee Wee Picasso Art (4 to 5 year olds + caregiver), Baby and Me (0 to 1 year olds +
caregiver), Miss Cindy's Play & Learn (0 to 5 year olds + caregiver).
*2023 participant units 445. Up 57% compared to all of 2022.
*ARPA funds supplies and extra preschool teacher hours for additional enrichment
programming.
Recreation:
81
Allocation
Total 2023
Allocation
Total 2023
Expenditures
Community Benefits Summary
Parks Maintenance
(2 positions)
$155,098
$134,398
Maintenance Tasks
*Installed 15+ garbage can replacements (requiring less labor time to maintain).
*Pressure washed City Hall entrance, TCC, all shelters, stairs, trails and park
walkways, Tukwila Pond Dock, Crystal Springs, Duwamish and Riverton Parks.
*Mowed vegetation along trails and park walkways, trimmed City Hall hedges,
pruned overgrowth along Green River and Interurban trails, Duwamish Garden and
numbered trails.
*Repaired portable water meter and irrigation lines at Duwamish Hill.
*New art and City message banners installed on Tukwila International Blvd.
*54+ flower baskets installed along roadways.
*Garbage can repairs at various locations.
*Debris blowing, lawn care and weed control applications ongoing.
Field & Shelter Rental Income
*Field rentals are above 2021 and 2022 levels due to multiple events. See graph.
*Park shelter rentals below 2021 and 2022 levels due to Mobile Rec program set up
free programming in shelters on Saturdays. See graph.
*Residents have realized they can drop in at unused shelters to avoid paying fees.
2023 Field Rental Income Increased vs. 2023 Park Shelter Rental Income Decreased from Prior Levels
[Sum of Total $
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
I III II 111 III
Ball field TCC Lee Phillips Field Lower Foster Shelter- Shelter - Shelter -Joseph Shelter - Rverton Shelter -TCC Sheller - Tukwla
Feld Crestview Duwanush Foster Park
[Faa1ity v
[Year v
• 2021
■ 2022
• 2023
82
Summary of 2021 to 2024 Allocations and Expenditures
Actual spending data for 2021, 2022 and 2023 compared to allocations in these time periods. Budget
allocations for 2023-2024 were approved by council based on estimates of expected spending from
departments before the end 2022 and 2023, respectively.
Allocations
2021
Budget
2021
Actuals
Traffic Calming
$ 100,000
$ 100,000
Before & After School (5)
84,000
41,276
Summer Camp
50,000
50,618
DarkTrace
25,000
21,910
Business Assistance (1)
15,000
10,000
Parks Maintenance (4)
80,000
76,910
Street Maintenance (4)
167,500
45,367
Permit Processing (4)
125,000
112,186
Council Chamber Buildout
18,000
13,283
Fire OT - Minimum Staffing
225,000
330,066
Leadership Initiative
-
-
ARPA Analyst
-
-
Rent/Utility Assistance (2)
-
-
SeeClickFix (3)
15,000
15,689
Total Allocations & Expenditures
$ 904,500
$ 817,307
Total Underspent Per Time Period
$ 87,193
2022
Budget
2022
Actuals
$ 400,000.00
$ 317,546
170,000
86,669
100,000
56,371
25,000
25,669
185,000
-
160,000
127,637
335,000
215,951
300,000
227,049
200,000
14,493
300,000
462,872
25,000
1,869
160,000
125,448
500,000
232,782
$ 2,860,000
$ 1,894,357
$ 965,643
2023
Budget
2023
Actuals
$ 400,000
$ 257,977
170,000
146,289
100,000
89,718
25,000
28,239
190,000
-
155,098
134,398
225,641
200,656
246,429
237,222
25,000
22,092
141,511
126,779
135,000
-
$ 1,813,679
$ 1,243,371
$ 570,309
*2024
Budget
$ 400,000
170,000
100,000
25,000
149,455
225,641
246,429
25,000
154,893
$ 1,496,418
(1) Budget not spent in 2022 so carried forward to 2023. Funding protocols not met, so 2023 funds released for 2024 reallocation.
(2) Budget not fully spent in 2022, so portion carried forward to 2023. Dept used non-ARPA funds for assistance, so 2023 funds released for 2024 reallocation.
(3) Budgeted originally for 2022, however, invoiced and paid in 2021.
(4) Only labor costs, for two unfrozen positions from pandemic, are funded.
(5) Preschool Enrichment Activities were added to Before & After School Allocation for 2023 and 2024.
*2024 allocation budgets were created based on estimates made before the end of 2023.
Recap of ARPA to Date
This chart shows the flow of ARPA funds after three years of council -approved expenditures. Unallocated
funds are due to expenditures that have underspend their budget allocation. More to come regarding
spending recommendations for unallocated total.
Total ARPA Grant (Beginning Balance)
$ 5,685,000
2021 Actual Spent
817,307
2021 Ending Balance
4,867,693
2022 Beginning Balance
4,867,693
2022 Actual Spent
1,894,357
2022 Ending Balance
2,973,336
2023 Beginning Balance
2,973,336
2023 Actual Spent
1,243,371
2023 Ending Balance
1,729,965
2024 Beginning Balance
1,729,965
2024 Budget Allocation
1,496,418
Unallocated Amount for 2024
$ 233,547
Per US Treasury ARPA requirements, Cities must contractually obligate all funds by 12/31/2024 and expend
funds by 12/31/26. Council -approved allocations are expected to fully expend ARPA funds by 12/31/24. A
plan will be forthcoming on how best to utilize remaining ARPA funds.
NEXT STEPS
Analyst continues to manage and reconcile expenditures per council -approved allocations and will prrTnt
a First Half 2024 spending report to the Finance & Governance committee once the first half of the year is
reconciled. Staff will also prepare ARPA records in advance of the City's 2023 State Audit and the April
2024 US Treasury ARPA required reporting.
RECOMMENDATION
Discussion only. More to come.
84