HomeMy WebLinkAboutCOW 2024-04-22 COMPLETE AGENDA PACKET�� 1LA Tukwila City Council Agenda
J
o
.• COMMITTEE
OF
THE
WHOLE
.•
o' r Thomas McLeod, Mayor Councilmembers: ❖ De'Sean Quinn ❖ Tosh Sharp
2908 Marty Wine, Interim City Administrator ❖ Armen Papyan ❖ Jovita McConnell
Mohamed Abdi, Council President •3 Dennis Martinez •3 Hannah Hedrick
ON -SITE PRESENCE:
TUKWILA CITY HALL
COUNCIL CHAMBERS
REMOTE PARTICIPATION FOR THE PUBLIC:
1-253-292-9750, ACCESS CODE: 670077847#
Click here to: Join Microsoft Teams Meeting
6200 SOUTHCENTER BOULEVARD
For Technical Support: 1-206-433-7155
Monday, April 22, 2024; 7:00 PM • Ord #2728 • Res #2094
1. CALL TO ORDER / PLEDGE OF ALLEGIANCE
2. LAND
ACKNOWLEDGEMENT
The City of Tukwila is located on the ancestral lands of the Coast Salish people.
We acknowledge their continuing connections to land, waters and culture.
We pay our respects to their elders past, present and emerging.
3. PUBLIC COMMENTS
including comment
on items both on and
not on the meeting agenda
Those wishing to provide public comments may verbally address the City
Council both on -site at Tukwila City Hall or via phone or Microsoft Teams for
up to 5 minutes for items both on and not on the meeting agenda.
To provide comment via phone or Microsoft Teams, please email
citycouncil@tukwilawa.gov with your name and topic by 5:00 PM on the
meeting date. Please clearly indicate that your message is for public comment
during the meeting, and you will receive further instructions.
4. SPECIAL ISSUES
a. Financial Sustainability Plan.
Pg.1
Pg.121
Pg.167
b. An ordinance regarding renter protections.
c. Discussion on South King County homelessness grant.
5. REPORTS
a. Mayor
b. City Council
c. Staff
6. MISCELLANEOUS
7. EXECUTIVE SESSION
8. ADJOURN TO SPECIAL MEETING
(continued..)
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COMMITTEE OF THE WHOLE MEETING
April 22, 2024
Page 2
❖ SPECIAL MEETING ❖
• Ord #2728 • Res #2094
1. CALL TO ORDER / ROLL CALL
2. CONSENT AGENDA a. Approval of Minutes: 4/15/24 (Regular Mtg.)
b. Approval of Vouchers
3. ADJOURNMENT
This
Remote
agenda is available at www.tukwilawa.gov, and in alternate formats with advance notice for those with disabilities.
Tukwila Council meetings are audio taped (and video taped as of 9/14/20). Available at www.tukwilawa.gov)
1- If you are in need of translation or interpretation services at a Council meeting,
Vil please contact us at 206-433-1800 by 12:00 p.m. on the meeting date.
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WELCOME TO THE TUKWILA CITY COUNCIL MEETING
The Tukwila City Council encourages community participation in the local government process and
welcomes attendance and public comment at its meetings.
MEETING SCHEDULE
Regular Meetings are held at 7:00 p.m. on the 1st and 3rd Mondays of each month. The City Council takes
formal action in the form of motions, resolutions and ordinances at Regular Meetings.
Committee of the Whole Meetings are held at 7:00 p.m. on the 2nd and 4th Mondays of each month. The
City Council considers current issues, discusses policy matters in detail, and coordinates the work of
the Council at Committee of the Whole meetings.
PUBLIC COMMENTS
Members of the public are given the opportunity to address the Council for up to 5 minutes on items both on
and not on the meeting agenda during Public Comments. The City Council will also accept comments on an
agenda item when the item is presented in the agenda, but speakers are limited to commenting once per
item each meeting.
When recognized by the Presiding Officer, please go to the podium if on -site or turn on your microphone if
attending virtually and state your name clearly for the record. The City Council appreciates hearing from you
but may not respond or answer questions during the meeting. Members of the City Council or City staff may
follow up with you following the meeting.
PUBLIC HEARINGS
Public Hearings are required by law before the Council can take action on matters affecting the public
interest such as land -use laws, annexations, rezone requests, public safety issues, etc. The City Council
Rules of Procedure provide the following guidelines for Public Hearings:
1. City staff will provide a report summarizing and providing context to the issue at hand.
2. City staff shall speak first and be allowed 15 minutes to make a presentation.
3. The applicant is then allowed 15 minutes to make a presentation.
4. Each side is then allowed 5 minutes for rebuttal.
5. After City staff and the applicant have used their speaking time, the Council may ask further
clarifying questions of the speakers.
6. Members of the public who wish to address the Council on the hearing topic may speak for 5
minutes each.
7. Speakers are asked to sign in on forms provided by the City Clerk.
8. The Council may ask clarifying questions of speakers and the speakers may respond.
9. Speakers should address their comments to the City Council.
10. If a large number of people wish to speak to the issue, the Council may limit the total amount of
comment time dedicated to the Public Hearing.
11. Once the Presiding Officer closes the public hearing, no further comments will be accepted, and the
issue is open for Councilmember discussion.
12. Any hearing being held or ordered to be held by the City Council may be continued in the manner as
set forth by RCW 42.30.100.
For more information about the City Council, including its complete Rules of
Procedure, please visit: https://www.tukwilawa.gov/departments/cit -council/
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COUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's review
Council review
4/22/24
LH
ITEM INFORMATION
ITEM NO.
4.A.
STAFF SPONSOR: VICKY CARLSEN
ORIGINAL AGENDA DATE: 4/22/24
AGENDA ITEM TITLE City of Tukwila Financial Sustainability Plan
CATEGORY ® Discussion
Mtg Date 4/22/24
❑ Motion
Mtg Date
❑ Resolution
Mtg Date
❑ Ordinance
Mtg Date
❑ Bid Award
Mtg Date
❑ Public Hearing
Mtg Date
❑ Other
Mtg Date
SPONSOR ® Council ® Mayor ❑ Admin Svcs ❑ DCD
Finance ❑ Fire ❑ P&R ❑ Police ❑ PW
SPONSOR'S
SUMMARY
The City contracted with Berk Consulting on the creation of a Financial Sustainability Plan,
including the creation of a Financial Sustainability Committee that met 6 times between
November 2023 and April 2024. The work is complete and this is the Report to the City
Council.
REVIEWED BY
❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev.
❑ LTAC
DATE:
❑ Arts Comm.
❑ Parks Comm. ❑ Planning Comm.
COMMITTEE CHAIR:
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMITTEE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
AMOUNT BUDGETED
APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
4/22/24
MTG. DATE
ATTACHMENTS
4/22/24
Presentation
Final Draft Report
Technical Appendix
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4
it'H
City of Tukwila Financial
Sustainability Plan
April 2024 I Final Draft Report
Return to top
Financial Sustainability Committee
Arta Baharmast
Phillip Combs
Jacob Halverson
Kathy Hougardy
Krysteena Mann
Karin Masters
Peggy McCarthy
Annie McGrath
Amber Meza
Abdiwali Mohamed
Diane Myers
David Puki
Verna Seal
Greg Sherlock
Project Team Leadership
Vicky Carlsen, City of Tukwila Finance Director
Laurel Humphrey, City of Tukwila Council Legislative Analyst
Pete Mayer, City of Tukwila Parks and Recreation Director
Marty Wine, City of Tukwila Acting City Administrator
:ill BERK
STRATEGY 11 ANALYSIS 11 COMMUNICATIONS
2200 Sixth Avenue, Suite 1000
Seattle, Washington 98121
P (206) 324-8760
www.berkconsulting.com
"Helping Communities and Organizations Create Their Best Futures"
Founded in 1988, we are an interdisciplinary strategy and analysis firm providing integrated, creative and
analytically rigorous approaches to complex policy and planning decisions. Our team of strategic planners, policy
and financial analysts, economists, cartographers, information designers and facilitators work together to bring
new ideas, clarity, and robust frameworks to the development of analytically -based and action -oriented plans.
Project Team
Brian Murphy • Project Manager
Katherine Goetz • Plan Lead
Ariel Hsieh - Analyst
DRAFT APRIL 2024
34
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Executive Summary
Like many communities in Washington, the City of Tukwila (the City) faces an ongoing structural budget
deficit and was significantly impacted by the pandemic and resulting economic slowdown. At the same
time, the City strives to maintain services to the community, respond as the community's needs change, and
meet external mandates. Because of recent financial challenges, the City is making a concerted effort to
work toward a more financially sustainable future. Being financially sustainable means balancing the cost
of programs, services, and infrastructure investments with affordable and equitable impacts to taxpayers
and ratepayers. It means being able to provide community -valued programs, services, and investments
over the long-term.
The development of the Financial Sustainability Plan was guided by a Financial Sustainability Committee
(FSC) made up of Tukwila residents, business owners, and nonprofit leaders. The Financial Sustainability
Committee served in an advisory role to City staff, the Mayor, and City Council and developed
recommendations after reviewing the City's financial forecast, programs and services, and community
makeup. The Committee emphasized ways the City could effectively use existing resources to deliver
quality City services to residents and businesses and to achieve long-term financial sustainability.
The Committee's recommendations fall under the following three categories:
0 Be Good Stewards of Public Resources. Build a culture of continuous improvement and �
implement approaches and tools to improve the City's efficiency and effectiveness.
0
o Invest in the Tukwila Community's Highest Priorities. Align services with community priorities
o and prudently manage the tax burden on residents and businesses.
0
Invest in Tukwila's Future. Make targeted investments to achieve long-term cost savings and
improved outcomes for the Tukwila community.
Many municipal financial sustainability efforts focus on how to increase revenues to pay for everything a
city wants to do. Another sustainability strategy is to "bend the cost curve" to ensure expenditures can
align more closely with ongoing revenues. The FSC focused on opportunities to "bend the cost curve" or
employ efforts to use existing resources efficiently and slow growth in costs over time. The FSC's
recommendations are grounded in its sense of the Tukwila's community ability to pay.
The FSC suggests that the City of Tukwila takes the following phased approach to implementing the
guidance contained in this Plan.
1. Implement recommendations that advance the City's financial management, resource
effectiveness, and cost containment abilities.
2. Make deeper investments in efficiency and effectiveness.
3. Over the long-term, communicate openly and honestly with the Tukwila community about demands
for City services and the City's performance, including efficiency gains.
Some of the recommendations would require up -front investment. The City's adopted 6-year financial
plan has sufficient revenues to fund these investments.
FINAL DRAFT APRIL 2024
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35
Working Toward a Financially Sustainable Future
Developing a Financial Sustainability Plan
Contents
City of Tukwila Financial Sustainability Plan 1
Introduction 2
2
2
Context 4
Community Vision, Values, and Planning 5
Makeup of the Tukwila Community 6
Tukwila's Financial Condition 9
Budget History and Choices Going Forward 15
Committee Recommendations 16
Phased Implementation 21
Financial Strategy 23
Financial Forecast with Committee Recommendations 25
Conclusion and Next Steps 27
FINAL DRAFT APRIL 2024
36
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Introduction
Working Toward a Financially Sustainable Future
The City of Tukwila faces an ongoing structural budget deficit and was significantly impacted by the
pandemic and resultant economic slowdown. At the same time, the City strives to maintain quality services
for the Tukwila community, respond as the community's needs change, and meet external mandates.
The City is making a concerted effort to work toward a more financially sustainable future. Being
financially sustainable means balancing the cost of programs, services, and infrastructure investments with
affordable and equitable demands on taxpayers and ratepayers. It means being able to provide
community -valued programs, services, and investments over the long-term. Being financially sustainable
does not necessarily mean that the process of setting a budget will be easy; there may still be choices to
make about the levels of service to provide and how best to fund them.
The current City budget incorporates two significant changes that present opportunities: the adoption of a
new revenue stream and a significant change in service delivery. The City adopted a Business &
Occupation Tax, which begins in 2024, and began paying the Puget Sound Regional Fire Authority (RFA)
for service instead of having a City fire department. In 2025, Tukwila will become part of the Puget
Sound Regional Fire Authority (RFA) so the City will no longer pay for fire and emergency services and
no longer collect the corresponding property tax revenue. These actions — diversifying revenue sources
and reducing ongoing expenditures — are important elements that can enhance the City's long-term
financial sustainability. It is also important to consider that while the City no longer collects revenues for
the provision of fire service, taxpayers continue to bear this cost, with payments directed towards the
RFA.
Developing a Financial Sustainability Plan
Cities and counties across Washington are challenged to establish a financially sustainable future in the
face of structural fiscal challenges. The work that went into developing this report incorporates
information and perspectives unique to Tukwila in order to have a Tukwila -specific plan.
The development of the Financial Sustainability Plan was guided by a Financial Sustainability Committee
(FSC) made up of fourteen Tukwila residents, business owners, and nonprofit leaders. The FSC served in
an advisory role to City staff, the Mayor, and City Council. The plan was developed in collaboration with
City staff and supported by a consulting team. The consulting team presented contextual information to
the FSC and facilitated discussions about options to enhance financial sustainability.
The FSC met six times in person between November 2023 and April 2024 and discussed the following:
■ Community context. Information about Tukwila's demographics and employment profile in
comparison to select peer cities.
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3,
City of Tukwila Financial Sustainability Plan
Introduction
■ Community vision and priorities. The City's priorities as identified in adopted plans and prior
public engagement conducted in 2021 in preparation for development of the next biennial budget.
■ City revenues and expenditures. Information about the City's primary revenue sources and
expenditure categories with a focus on the General Fund, the City's largest and most flexible fund.
■ City programs and services. The City's programs, services, and departmental priorities. The FSC
indicated which should be a high priority and which should be a lower priority.
■ Financial impact of recommendations. The estimated financial impact of preliminary FSC
recommendations based on the City's adopted financial forecast.
■ Recommendations for long-term financial sustainability. Draft guidance based on discussions
among the FSC and recommendations from individual members. The FSC then finalized
recommendations for the City, which are described in Committee Recommendations.
A separate Technical Appendix provides the full suite of information that was shared with the Committee
for discussion.
:ill
38
FINAL DRAFT APRIL 2024 3
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Context
This section presents context that is essential to understanding Tukwila's financial position and the
opportunities and challenges it faces in seeking to achieve fiscal sustainability, including:
■ Community Vision, Values, and Planning
■ Makeup of the Tukwila Community
■ Tukwila's Financial Condition
■ Budget History and Choices Going Forward
:ill FINAL DRAFT APRIL 2024 4
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39
City of Tukwila Financial Sustainability Plan
Context
Community Vision, Values, and Planning
The following planning documents were informed by significant community engagement and have been
adopted by Council. They serve as foundational guidance for City efforts and informed the development
of this Financial Sustainability Plan.
• Strategic Plan
• Comprehensive Plan
■ Parks, Recreation, and Open Space Plan
■ Economic Development Strategy
■ Resolution 1921: Tukwila's Equity Policy
Common themes across these guiding documents describe the Tukwila community's desire for:
• Great neighborhoods and quality public spaces.
■ A vibrant and diverse economy.
■ A positive community identity.
• Opportunity for all Tukwila residents.
From the City of Tukwila
Strategic Plan
COMMUNITY VISION
The city of opportunity,
the community of choice.
CITY MISSION
To provide superior services
that support a safe, inviting
and healthy environment for our
residents, businesses and guests.
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40
FINAL DRAFT APRIL 2024 5
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City of Tukwila Financial Sustainability Plan
Context
Makeup of the Tukwila Community
The demographics of the Tukwila community had a significant impact on the recommendations of
the Financial Sustainability Committee. Several of these recommendations remind policy makers and
staff to be mindful of the Tukwila community's particular service needs and to ensure that City services
and facilities are designed with the Tukwila community in mind.
Compared to King County, a higher proportion of the Tukwila population are Black or African American,
American Indian and Alaska Native, Asian, Native Hawaiian and Other Pacific Islander, and some other
race (Exhibit 1). Almost 20% of the Tukwila population identifies as Hispanic or Latino, which is nearly
double the King County average (Exhibit 2). Tukwila has a larger share of renter -occupied households
than peer cities and King County as a whole (Exhibit 3). Tukwila has a higher share of low-income
households than King County, particularly among renters (Exhibit 4). Tukwila residents identify as less
healthy than residents in King County and Washington State (Exhibit 5).
Exhibit 1: Racial Composition of Tukwila and King County, 2021
13%
19%
33%
Tukwila
9%
4%
6%
61%
King County
■ Two or more races
■ Some other race alone
■ Native Hawaiian and Other Pacific Islander alone
Asian alone
■ American Indian and Alaska Native alone
■ Black or African American alone
White alone
Note: Labels are suppressed for shares under 1 %.
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates; BERK, 2023.
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41
City of Tukwila Financial Sustainability Plan
Context
Exhibit 2: Hispanic or Latino Composition of Tukwila and King County, 2021
82%
Tukwila
90%
King County
Hispanic or Latino
■ Not Hispanic or Latino
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates; BERK, 2023.
Exhibit 3: Renter and Owner -Occupied Households, Tukwila, Peer Cities, and King County, 2020
Renter -occupied
■ Owner -occupied (no mortgage)
■ Owner -occupied (with mortgage)
61%
25%
45%
38%
45%
39%
47%
37%
51%
32%
44
40%
Tukwila Burien Kent Renton SeaTac King County
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020; BERK, 2023.
:III FINAL DRAFT APRIL 2024 7
42
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City of Tukwila Financial Sustainability Plan
Context
Exhibit 4: Renter Households by Median Family Income, Tukwila, Peer Cities, and King County, 2020
21%
15%
13%
27%
Tukwila
w
10%
25%
20%
12%
14%
24
28
16%
18%
17%
9%
20%
20%
22%
11%
18%
27%
39%
11%
14%
15%
Burien Kent Renton Lynnwood SeaTac King County
■ Above Median Income (>100%)
Moderate Income (80-100%)
Low -Income (50-80%)
Very Low -Income (30-50%)
■ Extremely Low -Income (<30% MFI)
Note: Median family income refers to the HUD Area Median Family Income for the Seattle -Tacoma -Bellevue Metropolitan
Statistical Area, which is adjusted based on household size.
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020; BERK, 2023.
Exhibit 5: Select Community Health Indicators, Tukwila, King County, and Washington State, 2021
40
35
30
25
20
15
10
5
0
Fair or poor Frequent Unhealthy days Unhealthy days Disability (%) No primary Uninsured age
health (°I°) mental distress (18+) (days) (65+) (days) care provider 18-64 (%)
(%) (%)
■ SeaTctc/Tukwila ■ King County ■ Washington State
Source: Public Health — Seattle & King County, City Profile Data, 2021; BERK, 2023.
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43
City of Tukwila Financial Sustainability Plan
Context
Tukwila's Financial Condition
Tukwila has significant assets and real challenges to fiscal sustainability, some of which are common to
local governments in Washington, and some of which are unique to Tukwila. The following forces are
explained on the following pages:
• Inflation is Outpacing Growth of Core Revenues
• Demand for City Services is Increasing
• Tukwila's Role in the Regional Economy Comes with Benefits and Challenges
Inflation is Outpacing Growth of Core Revenues
One factor that impacts every city and county in Washington is the
limit on annual property tax growth. In Washington, a jurisdiction's
property tax revenues can only increase by 1 % annually, unless the
public votes for a greater increase (a levy lid lift)1. A city's baseline
expenditures typically grow more than 1 % annually due to inflation,
creating a structural funding gap as shown at right. If the community
requests additional services, this can increase costs even more. When
property tax comprises a large share of a city's ongoing revenues,
which it does in Tukwila, it contributes to a growing gap between
revenues and expenses.
New construction is not subject to the 1 % limit on the total property
tax a city can collect, so taxes levied on new construction provide a
one-year bump to property tax revenue. This creates a financial
incentive for cities to grow. While this growth provides additional revenue, in property tax revenue and
other revenues associated with construction and future uses of the property, it creates an additional
service need for a city as well. More residents and/or employees mean greater use of infrastructure like
the road network and services like permitting or law enforcement.
Illustration of Structural
Funding Gap Created by
Property Tax Cap
I
Funding gaps
di
Year 1 Year 2 Year 3 Year 4 Year 5
• Property Tax (1% annual growth)
• Expenditures (3%annual growth)
The regional labor market is putting pressure on employee costs, which comprise a large share of
city budgets. Most services that the City provides to Tukwila residents, businesses, and visitors are labor-
intensive and the City spends the largest percentage of General Fund expenditures on salaries and
benefits. As cities in the region compete for new employees and seek to retain current employees, many
are increasing wages. Tukwila's employee compensation is guided by a City Council -adopted
compensation policy and philosophy. The policy states that the City will seek to set salaries at the market
average for non -represented positions and at a "competitive" level for represented employees.
Other costs of providing existing services are increasing. This will impact the City's ability to provide
the same level of services over time. Some costs are outside of a department's control, such as the impact
of inflation on supplies or services or participation in mandated training. The City has also made
significant investments in infrastructure and systems. These investments need ongoing operational support.
1 This is the result of Legislative action following the passage of Initiative 747 in 2001.
▪ 111 FINAL DRAFT APRIL 2024
44
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City of Tukwila Financial Sustainability Plan
Context
Exhibit 6 and Exhibit 7 show Tukwila's ongoing revenues and expenditures compared to the annual
Consumer Price Index for Urban consumers (CPI-U) for Seattle -Tacoma -Bellevue. In these exhibits, the
revenue and expenditures associated with fire and emergency medical services have been taken out to
provide consistent information over time. Prior to 2023, the City had a Fire Department. In 2023 and
2024, the City is paying the Puget Sound Regional Fire Authority (RFA) for service as it transitions to
Tukwila receiving service directly from the RFA in 2025.
Exhibit 6 shows that ongoing revenue growth has on average been lower with inflation. Over half of
Tukwila's ongoing revenue comes from property tax and sales tax. Property tax grows more slowly than
inflation, as mentioned above, and sales tax is subject to economic conditions, which have been unusually
volatile due to the pandemic. Exhibit 7 shows that ongoing expenditure growth has on average been in
line with inflation.
Exhibit 6: Tukwila's Ongoing Revenues and Annual CPI-U, 2016-2028
t S80,000,000 450
o Revenue impact
570,000,000 ] 400
$60,000,000
$50,000,000
$40,000,000
$30,000,000
520,000,000
S 10,000,000
350
300
250
200
150
100
50
$0 0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Revenues w/o Fire Annual CPI-U
--- Linear (Revenues w/o Fire) .' - Linear (Annual CPI-u)
Annual CPI-U
Note: Ongoing revenues to support Fire and EMS services have been removed to allow for easier comparison between the
periods before and after annexation into the Regional Fire Authority.
Sources: City of Tukwila budgets; Bureau of Labor Statistics, 2024; BERK, 2024.
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45
City of Tukwila Financial Sustainability Plan
Context
Exhibit 7: Tukwila's Ongoing Expenditures and Annual CPI-U, 2016-2028
t $80,000,000
0
a $70,000,000
$60,000,000
$5 0,000,000
$40,000,000
530,000,000
$20,000,000
510,000,000
SO
2016 2017 2018 2014 2020 2021 2022 2023 2024 2025 2026 2027 2028
Expenditures w/o Fire Annual CPI-U
— Linear {Expenditures w/o Fire) — t Linear (Annual CPI-U)
450
400
350
300
250
20❑
15❑
100
50
0
Annual CPI-U
Note: Ongoing expenditures to support Fire and EMS services have been removed to allow for easier comparison between the
periods before and after annexation into the Regional Fire Authority.
Sources: City of Tukwila budgets; Bureau of Labor Statistics, 2024; BERK, 2024.
Demand for City Services is Increasing
While the impacts of the property tax cap and inflation as described above make it difficult for Tukwila
to retain current service levels, several factors are contributing to an increase in demand for City services.
The Tukwila community benefits from a high level of service. The City has various social service needs.
There are many new residents, including refugees and people seeking asylum. The consumers of City
services may need individualized support. City staffing levels are higher than the size of the residential
population would require; departments must have staff to support the high number of daytime visitors.
Tukwila must plan for additional residents and jobs over the next 20 years. Based on state law and
the region's plan for growth, the City must plan for 1 3,000 (58%) more residents and 17,000 (38%)
additional jobs by 2044 (Exhibit 8 and Exhibit 9). This growth will impact staff workload and will
increase demands on the City's infrastructure.
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46
FINAL DRAFT APRIL 2024 11
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City of Tukwila Financial Sustainability Plan
Context
Exhibit 8: Tukwila Historical and Projected Residential Population, 1990-2044
40,000
a
a 35,000
a-
0
0_ 30,000
25,000
20,000
15,000
10,000
5,000
2023 population: 22,780
2044 target: 36,005
(+2.2% per year) , o
0
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045
Year
Sources: Washington Office of Financial Management, 2023; Puget Sound Regional Council, 2023.
Exhibit 9: Covered Employment in Tukwila, 2000-2045
Covered Employment
70,000
60,000
50,000
40,000
30,000
20,000
10,000
2022 employment: 45,825
2044 target: 63,074
(+1.5% per year) ___0
0
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045
Year
Note: Covered employment refers to jobs "covered" under the state's Unemployment Insurance Program and constitutes 85-
90% of total employment.
Source: PSRC Covered Employment, 2023; King County, 2023.
Population and employment growth are drivers of staff workload and will increase demands on the
City's infrastructure and services. As the City grows in residential population and employment, it will
likely implement new projects and add new employees, which adds to the workload of internal service
departments. With more residents, jobs, and daytime visitors, some departments will need to add staff to
provide the same level of service.
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12
4,
City of Tukwila Financial Sustainability Plan
Context
1
Total City staffing per 1,000 residents has decreased slightly since 2016, during which time the
City's population has continued to grow. While City staffing does not have to track with
population, population tends to be a driver of demand for services.
Tukwila Population and Full-time Equivalent Positions per 1,000 Residents, 2016-2023
Tukwila Population
25,000
15,000
10,000
5,000
0
2016 2017 2018 2019 2020 2021 2022 2023
Tukwila Population — — — FTEs per 1,000 residents (without Fire)
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
FTEs per 1,000 residents, without Fire
Sources: City of Tukwila budgets; Washington Office of Financial Management, 2024; BERK, 2024.
Tukwila's Role in the Regional Economy Comes with Benefits and Challenges
Tukwila has an outsized commercial sector that includes a regional retail center and a large regional
employment base. While most Tukwila businesses have 100 or fewer employees, Tukwila is also a
regional shopping destination with Southcenter Mall and significant adjacent retail that draws shoppers
into the community. Tukwila is also a regional employment center with approximately 45,800 jobs, or
2.03 jobs for every resident. Most jobs are in the service, retail, and manufacturing sectors and most
workers commute from outside the City. Jobs in Tukwila are projected to grow over the next two
decades. Tukwila sees approximately 150,000 daytime non-residents who commute in for shopping and
employment. This increases the demand for public services and increases City revenues, as described in
the following section.
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City of Tukwila Financial Sustainability Plan
Context
Tukwila's strong commercial sector provides a financial benefit for the City, but also brings
significant costs. Over 25% of Tukwila's General Fund revenues are from sales taxes. With the
Southcenter Mall, a majority of Tukwila's taxable retail sales are attributed to consumer shopping.
Having a strong commercial sector and associated sales tax revenue means Tukwila is not as reliant on
property tax revenue as many other cities, but the commercial sector has an impact on costs as well. The
Police Department is one department that tracks data based on location. The Department found that of
police case reports that we know are for either business or residential properties, approximately 82%
are associated with business. The cost to provide services to residents and businesses is difficult to
measure for all City services as departments may not track their workload data by location or customer
type. Going forward, the FSC recommends the City better track and communicate key performance
indicators, including measures of demand for City services.
By estimating the share of City revenues generated by residential and commercial properties, we found
that Tukwila's residential population contributes approximately 18% of total revenues and the
commercial sector contributes approximately 82%, as shown in Exhibit 10. This split aligns with the
Police Department case report data. In this analysis, property tax and utility taxes are split based on the
current share of property tax revenue from each sector, which is 67% from commercial properties and
33% from residential properties. Sales tax is split based on the share of residents and share of estimated
daytime visitors, assuming 22,780 residents and 150,000 daytime visitors. B&O tax, business license fee
revenue, and gambling/admission taxes are attributed all to commercial sources.
Exhibit 10: Tukwila Major General Fund Revenues and Residential/Commercial Split, 2023
Property Tax
Sales B&O Business Utility Gambling/ Share of
Tax Tax License Taxes Admissions Total
Fees Taxes
2023
Budget
.................................................
Residential
Commercial $11,847,000 $17,691,000 $3,000,000 $3,230,000 $2,881,000 $5,516,000
$17,682,000 $20,378,000 $3,000,000 $3,230,000 $4,300,000 $5,516,000
$5,835,000
$2,687,000
$1,419,000
18%
82%
Notes: Amounts have been rounded to the nearest $1,000.
Source: City of Tukwila, 2023; BERK 2024.
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City of Tukwila Financial Sustainability Plan
Context
Budget History and Choices Going Forward
Before 2020, the City balanced its budget and aligned expenditures with available revenues. Ongoing
revenues have grown more slowly than expenditures, putting the City's budget in a structural deficit. With
a structural deficit, cities must make choices about the level of service it provides to its community that
align with available revenues. In 2020, Tukwila was hit hard by the pandemic. Total General Fund
revenues declined by 7% in 2020, as retail establishments closed, and many people moved their
shopping online. This structural deficit required reduced service levels that aligned with what the lower
revenues could support.
Luckily, Tukwila and other cities received federal American Rescue Plan Act (ARPA) funds to offset the loss
of local revenue and support greater service needs for the community. From 2021 to 2024, the City used
one-time federal revenues to reinstate key positions and restore some services, however, this funding will
lapse at the end of 2024, which means Tukwila must identify alternative revenue sources going forward.
The City adopted a new Business & Occupation tax, to begin in 2024, to fully fund the Police
Department. This new revenue source also further diversifies the City's revenue streams. The City will
annex into the Puget Sound Regional Fire Authority in 2025, which will reduce a large expenditure for
the City and create flexibility in the City's general property tax levy capacity.
The City's adopted 6-year General Fund Financial Plan assumes use of about half of the property tax
capacity created with annexation into the RFA, starting in 2025. This revenue will continue funding
services that were restored in the 2023-2024 budget and fund all remaining services that were
reduced during the pandemic.
Exhibit 11 shows the City's revenues and expenditures over time and highlights the use of one-time
revenues and potential property tax capacity in 2025-2028.
Exhibit 11: Tukwila Revenues and Expenditures and Annual CPI-U, 2016-2028
$80,000,000
$70,000,000
S60,000,000
$50,000,000
$40,000.000
$30,000,000
S20,000,000
S 10,000,000
50
2016 2017 2018 2019
2020 2021 2022
i
2023
Revenues we) Fire One-tiirrefederal revenues =Proposed property tax capacity -Expenditures w/o Fire
2025
2026
2027
2028
Annual CPI•ll (Seattle -Tacoma -Bellevue)
Note: Ongoing revenues and expenditures to support Fire and EMS services have been removed to allow for easier
comparison between the periods before and after annexation into the Regional Fire Authority.
Sources: City of Tukwila budgets; Bureau of Labor Statistics, 2024; BERK, 2024.
450
400u
350
300
250
200
150
- 100
50
0
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Committee
Recommendations
The Financial Sustainability Committee developed the following recommendations after reviewing the
City's financial forecast, programs and services, and community makeup. The Committee emphasized
ways the City could effectively use existing resources to deliver quality City services to residents and
businesses and to achieve long-term financial sustainability.
The Committee's recommendations are organized in three categories:
Q:0 1. Be Good Stewards of Public Resources. Build a culture of continuous improvement and
implement approaches and tools to improve the City's efficiency and effectiveness2.
0
0 2. Invest in the Tukwila Community's Highest Priorities. Align services with community
0
o6
priorities and prudently manage the tax burden on residents and businesses.
3. Invest in Tukwila's Future. Make targeted investments to achieve long-term cost
savings and improved outcomes for the Tukwila community.
Each of these areas of focus are described in more detail on the following pages. A dollar sign ($) is
used to designate strategies that will require investment of City resources to implement and the
Committee's recommendations for phased implementation are presented on page 21.
2 "Investment" icon by Mahmure Alp from https://thenounproject.com/icon/investment-1033156/
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16
City of Tukwila Financial Sustainability Plan
Committee Recommendations
Q40 1. Be Good Stewards of Public Resources
a. Build a culture and City processes that focus on quality and continuous improvement.
■ Instill a dedication to public service that centers resource stewardship and the
provision of high -quality services to Tukwila residents and businesses. This could
include recognition or performance awards for staff who identify ways to enhance
effectiveness, reduce costs, enhance revenue, or otherwise advance the City's goals.
■ Implement comprehensive continuous improvement and quality control efforts. Use
consultants and internal expertise to systematically refine service delivery by
streamlining processes, reducing waste, and maximizing customer benefits. This could
include increasing procurement limits and reducing the number of approval steps. $
■ Conduct rolling performance audits of large or impactful programs. Review programs
to identify opportunities for achieving greater efficiency and effectiveness. Use
independent consultants to conduct performance audits in key programmatic areas. $
■ Track program -specific key performance indicators (KPIs) to capture demands for
service and program performance. Use this information to report on the City's ability to
meet community needs and its resource efficiency (costs for service delivery) over time.
b. Implement efficient and effective service delivery models.
■ Identify opportunities to increase staff productivity. Enhance systems for performance
management and accountability. Consider opportunities to shift positions to meet needs
and dedicate time to cross -training to help staff meet workload demands with existing
resources. Conduct a review of the City's remote -work policies and practices.
■ Ensure leaders have the skills and capacity they need to manage staff effectively.
Also identify opportunities to establish "working manager" roles where managers
provide service delivery capacity as well as supervising others' work.
■ Be smart about the use of consultants. Seek the most efficient and effective balance of
staff capacity and costs, consultant costs, and aggressiveness of the City's work plan.
Leverage consultant contracts to build durable tools and enhance staff capacity. Review
consultant engagements to identify lessons learned.
c. Carefully manage City staff: Tukwila's greatest asset and most significant expenditure.
■ Conduct a third -party review of the City's employment positions, salaries, and
benefits to ensure the City has an optimal staffing structure given the service needs
of the Tukwila community. Thereafter, continue to conduct total cost of compensation
studies on a regular basis. Use robust vetting process and place new hires at
appropriate paygrade and position level. $
■ Streamline management staffing capacity with the transition of fire services to the Puget
Sound Regional Fire Authority. Take advantage of this reduction in City staff numbers and
management complexity by looking for opportunities to more fully use or consolidate existing
executive level staff.
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City of Tukwila Financial Sustainability Plan
Committee Recommendations
• Explore creative opportunities for efficient staffing within the bounds of labor
agreements. This could include deploying non -uniform personnel to deliver some
appropriate public safety services, redeploying seasonal employees during periods of
low demand to other work areas, contracting, and considering tiered employment
positions and apprenticeships that allow new employees to gain knowledge and
experience. This may attract younger Tukwila residents to apply. The City could raise
awareness of job openings among high school students and others via Tukwila media,
social media, and community networks.
■ Include consideration of non -salary benefits (insurance, pensions, paid time off, etc.)
when benchmarking staff compensation. Recognize that compensation will vary by
jurisdiction and choose benchmark cities appropriately.
d. Closely manage the City's capital investments and assets.
■ Make capital investments that provide the best return on investment for the
community. Consider the City's ability to pay for ongoing maintenance and capital
replacement needs when considering potential new capital investments.
■ Calibrate the design of new facilities to a Tukwila -appropriate standard. Invest
appropriately by considering design, amenities, and likely future use by the community.
Focus on the fit, form, and function and be practical and efficient with the programming
of a facility. Involve those who will use a facility in the design process.
• Avoid cost overruns in future capital investments by implementing strong project
management tools and practices. Seek to use experienced capital project managers to
ensure projects remain within budget. $
e. Review the City's reserve policy. List specific events for which the City's reserve funds will
be used and give guidance on how much should be used. In future economic downturns,
consider using reserves to supplement essential public services rather than reducing services.
f. Proactively and transparently share information about the City's financial health and
intended financial strategies to build trust with the Tukwila community.
■ Transparently communicate the City's performance and financial needs and
strategies in the face of inflation and changes in demands for service. The KPIs
generated in 1 a. should be incorporated in this reporting.
■ Continue to publish full quarterly financial reports of all funds. This will provide the
community with valuable information without their need to submit a Public Records
Request.
■ Provide regular reporting on implementation of this study's recommendations as
described in the Implementation section below.
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City of Tukwila Financial Sustainability Plan
Committee Recommendations
0
0 2. Invest in the Tukwila Community's Highest Priorities
a. Use a lens of the expected return on investment for the Tukwila community to evaluate
City service and capital expenditures. Tukwila's population is younger, more mobile, more
diverse, lower income, and less healthy than King County overall. Consider Tukwila's unique
community makeup when prioritizing and tailoring City services and capital investments,
recognizing that return on investment may not always be quantifiable.
■ Regularly conduct a statistically valid survey of Tukwila residents and businesses to
determine needs and priorities. Ensure this survey accurately reflects Tukwila's cultural and
linguistic diversity. Use this information in budget setting and service design. $
■ Prioritize investments in 1) public safety and 2) maintaining existing assets. See 3) Invest
in Tukwila's Future, below.
• Use the City's established Priority -Based Budgeting process to direct resources to
programs and services that best meet community needs.
b. Balance service needs and the use of property tax capacity in the next budget cycle. Use
surveys of residents and businesses to evaluate the community's priorities and service level
expectations. Be transparent with the community about what level of service can be
provided. Consider the net burden when setting policy for property tax levels and other tax
or rate adjustments, seeking to balance revenue generation needed to provide quality City
services with maintaining affordability for lower income households and smaller businesses.
c. Provide excellent customer service to Tukwila residents and businesses. $
■ Reduce silos across City departments to enhance customer service and efficiency of
service delivery.
■ Evaluate cost-effective ways community members can access in -person and online
services, such as kiosks at other City facilities or expanded operating hours at City Hall.
• Use tools such as See -Click -Fix to effectively monitor and respond to community requests
or needs. Analyze the data received to identify and proactively address trends and
patterns. Assess community satisfaction of service delivered.
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City of Tukwila Financial Sustainability Plan
Committee Recommendations
0 3. Invest in Tukwila's Future
a. Plan for future land uses that will strengthen the City's fiscal position and the
sustainability of high -quality City services. Increase growth and development in a targeted
way to create new revenue and create future revenue streams.
b. Encourage business growth and investment in the Tukwila economy. Foster opportunities
for business and take care of established businesses to create a healthy economy, which will
ultimately generate revenues for the City. $
■ Fund the City's economic development function and implement the City's Economic
Development Strategy. Share progress on the implementation of the Economic Development
Strategy.
■ Leverage economic development strategies such as the Multifamily Tax Exemption, Tax
Increment Financing, and other tools.
■ Maintain competitiveness in taxes and fees with neighboring jurisdictions. Consider having
either the B&O tax or the business license fee, not both. $
c. Involve the community in defining Tukwila's approach to public safety. Safety is an
essential human need and "public safety" will typically rate very highly in community priority
surveys, but a more nuanced understanding is needed to clarify what we mean by the term
and what kinds of investments we'll make to enhance public safety, including consideration of
preventative and reactive policing, as well as investments in recreation programming for
youth, considering public safety in land use planning and development, and investments in
maintaining and enhancing physical infrastructure. $
d. Invest in the City's existing assets: Tukwila's staff and infrastructure. Embrace an
understanding that we make the most efficient use of existing resources and avoid long-term
costs by investing in our people and maintaining physical assets in a state of good repair. $
■ Invest in retaining quality staff, which is less expensive than the cost of turnover and
provides more consistent, high -quality services for residents. Retention efforts should
be balanced with clear performance requirements and recognition that a healthy level
of turnover should be seen as an opportunity to enhance the City's skilled staff and bring
its compensation structure into line.
■ Develop a plan and asset management model for the City's assets. Develop a lifecycle
replacement plan for City facilities and systems. Assess the City's properties and identify their
best use. Sell properties with no future City use identified.
■ Maintain street and sidewalk infrastructure in a state of good repair to avoid more
expensive long-term costs.
e. Invest in the City's expertise and capacity in functions that are critical for financial
sustainability. $
■ Strengthen the City's financial management, human resources management, and capital
project management.
■ Strengthen grant administration to enhance service delivery via grant awards.
Opportunity areas include infrastructure, parks and recreation, and public safety.
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55
Phased Implementation
The Committee suggests that the City of Tukwila takes the following phased approach to implementing
the guidance contained in this Plan.
First, implement recommendations that advance the City's financial management, resource
effectiveness, and cost containment abilities.
Specific recommendations that fall in this immediate call to action include:
1 a. Build a culture and City processes that focus on quality and continuous improvement.
1 f. Proactively and transparently share information about the City's financial status.
2a. Use a lens of the expected return on investment for the Tukwila community to evaluate City service
and capital expenditures.
2b. Balance service needs and the use of property tax capacity in the next budget cycle.
3e. Invest in the City's expertise and capacity in functions that are critical for financial sustainability.
Second, make deeper investments in efficiency and effectiveness.
Related recommendations include:
1 b. Implement efficient and effective service delivery models.
1 c. Carefully manage City staff: Tukwila's greatest asset and most significant expenditure.
1 d. Closely manage the City's capital investments and assets.
1 e. Review the City's reserve policy.
2c. Provide excellent customer service to Tukwila residents and businesses.
3a. Plan for future land uses that will strengthen the City's fiscal position and the sustainability of high -
quality City services.
3b. Encourage business growth and investment in the Tukwila economy.
3c. Involve the community in defining Tukwila's approach to public safety.
3d. Invest in the City's existing assets: Tukwila's staff and infrastructure.
Over the long-term, communicate openly and honestly with the Tukwila community about demands
for City services and the City's performance, including efficiency gains.
Several strategies described in the preceding section are designed to position the City in a trusted
relationship with the community it serves and is dependent on for revenues. By tracking program -specific
key performance indicators, capturing demands for service and program performance (Strategy 1 a) and
proactively and transparently sharing information about the City's financial health and financial
strategies (Strategy 1 c), the City will be seen as a trusted steward of public resources and as a provider
of services that are essential to the well-being and prosperity of the whole Tukwila community. Both
residential and commercial tax payors will be more informed and more open to conversations about City
services and revenue requirements.
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City of Tukwila Financial Sustainability Plan
Phased Implementation
Over time, inflation, increasing demand for services, and other factors will erode the City's ability to
provide the desired services to the Tukwila community. At this point, the City may reconstitute a Financial
Sustainability Committee or otherwise strategize for how to engage tax payors in discussion about their
willingness to pay for desired service levels. The City's efforts to achieve cost efficiencies and
transparently communicate with its community will have placed it in a trusted position to engage in this
conversation and potentially ask for additional resources.
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5,
Financial Strategy
The Financial Sustainability Committee emphasized ways the City could effectively use existing resources
to deliver quality City services to residents and businesses and to achieve long-term financial
sustainability. The Committee did not explore options for additional revenue beyond what is in the City's
adopted 6-year Financial Plan and does not recommend adopting new revenue tools at this time.
Many financial sustainability efforts focus on how to increase revenues to pay for everything a city wants
to do. But revenue is one side of the equation. Cost is the other side of the equation, and another
sustainability strategy is to "bend the cost curve" to ensure expenditures can align more closely with
ongoing revenues. The FSC focused on opportunities to "bend the cost curve" or employ efforts to use
existing resources efficiently and slow growth in costs over time. The FSC's recommendations are
grounded by the Tukwila community's ability to pay.
The FSC reviewed the City's adopted 6-year Financial Plan and its assumptions, which include the
continuation of the B&O tax and use of about half of the property tax capacity created with annexation
into the RFA. This property tax revenue will continue funding services that were restored in the 2023-
2024 budget and fund all remaining services that were reduced during the pandemic. The FSC
considered the net impact of:
■ City property taxes. These were assumed at the levy rate of $1.1 2 per $1,000 of assessed value in
2025 as assumed in the adopted Financial Plan.
■ City's utility fees. The City is conducting a utility rate study which has identified revenue needs for
City -owned utilities based on required capital and operating investments. Estimated future rates for
example residential and commercial customers were provided to see the total estimated impact. This
analysis assumes that the existing rate structure for residential and commercial customers would be
maintained. This policy choice will be evaluated by the City Council in the near future.
■ The RFA's property taxes and fire benefit charge.
The results of exploratory analysis are shown in Exhibit 12 for residents and Exhibit 13 for a variety of
example business types. Both exhibits show that while taxes related to the City's property tax will go
down, overall payments, inclusive of City property taxes and utility fees, as well as the RFA's property
taxes and fire benefits charge, will go up. This generated concern among some Committee members
recognizing the financial challenges this may create for some. This balance of service delivery/revenue
requirements and tax burden will continue to be a challenge for Tukwila and other communities.
The FSC's suggestions related to future revenues are to:
■ Maintain competitiveness in taxes and fees with neighboring jurisdictions as additional investment in
Tukwila's economy will generate long-term financial returns and supplement revenues generated
from the residential community.
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City of Tukwila Financial Sustainability Plan
Financial Strategy
■ Consider the net burden when setting policy for property tax levels and other tax or rate
adjustments, seeking to balance revenue generation needed to provide quality City services with
maintaining affordability for lower -income households and smaller businesses.
Exhibit 12: Estimated Annual Tax and Utility Fee Impact on Average Residential Property
Year
RFA - annual
City - annual City - annual RFA - annual Fire Benefit Annual
property tax utility fees property tax Charge Total
2024 $1,225 $1,236 Not applicable Not applicable
2025
Increase
(Decrease)
($510)
$84
$459
$290
$2,461
$323
Notes: The 2023 median residential assessed value is $510,000. The square footage of this example property is 2,060.
Utility fees reflect winter rates for water, sewer, and surface water.
Sources: City of Tukwila 2023; King County Assessor, 2024; BERK 2024; FCS Group, 2024.
Exhibit 13: Estimated Annual Tax and Utility Fee Impact on Example Businesses
City - RFA -
City - City - annual RFA - annual Fire
Type of annual annual business annual Benefit Annual
Business Year property tax utility fees charges property tax Charge Total
Small
retail
2024
2025
$649
$379
$ 2,364
$2,508
Increase
(Decrease) ($270) $144
Not
$448 applicable
$448
$0
$243
Not
applicable
$295
$3,461
$3,873
$243 $295 $412
Large retail
2024 $51,457
............................................................................................
2025 $30,034
Increase
(Decrease) ($21,423) $1,836
Not
applicable
$19,281
Not
applicable
$125,923
$22,338 $147,955
$0 $19,281 $22,338 $22,032
Restaurant
2024 $5,349
...........................................................................................
2025 $3,122
Increase
(Decrease) ($2,227) $1,404
Not
$7,936 applicable
$7,936
$ 2,004
Not
applicable
$1,298
$0 $2,004 $1,298 $2,479
Note: Utility fees reflect winter rates for water, sewer, and surface water. The example small retail property is approximately
1,500 square feet; the example large retail property is approximately 150,000 square feet; the example restaurant
property is approximately 8,800 square feet.
Sources: City of Tukwila 2023; King County Assessor, 2024; BERK 2024; FCS Group, 2024.
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59
City of Tukwila Financial Sustainability Plan
Financial Strategy
Financial Forecast with Committee Recommendations
The financial forecast that incorporates the FSC's recommendations is shown in Exhibit 14 and Exhibit 15.
Revenues in the financial forecast are sufficient to fund the FSC's recommendations. The forecast includes
the following expenditure assumptions tied to Committee recommendations:
1. Be Good Stewards of Public Resources
1 a. Use of performance audits and continuous improvement to achieve efficiency and
effectiveness in the City's operations. There may be an initial cost to conduct
audits or train staff on process improvement.
1 b. Workforce development initiatives (performance management, leadership
development, recruitment, and retention). There may be an initial cost to
implement a performance management system or other tools to support staff
development.
1 c. A third -party review of the City's employment positions, salaries, and benefits.
The City currently conducts a third -party compensation study; expanding the
scope of this study may increase the cost.
1 d. Implementation of strong project management tools and practices. There may be
an initial cost to adopt software tools or training.
i i=1
0 2. Invest in the Tukwila Community's Highest Priorities
0
ov
2a. Prioritization of investments in 1) public safety; and 2) maintaining existing assets.
This recommendation may increase costs or redirect existing resources to these
priorities.
2a. Funding for a statistically valid survey (planned in 2024 using budgeted funds).
2c. Funding for the City's SeeClickFix program (currently funded with federal funds,
$17,500)
2c. Funding for document scanning in the City Clerk's Office ($10,000).
2c. Restoration of City Hall operating hours (no additional cost).
3. Invest in Tukwila's Future
3d. Funding to support capital asset management and maintenance of existing assets
(1-2 FTEs, $120,000-$240,000).
3e. Funding for citywide grant application and administration. (1-1.5 FTEs, $90,000-
$1 35,000). Additional grant revenue to support capital projects is not shown in
the General Fund financial forecast but will increase capacity in the Capital
Projects Fund.
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City of Tukwila Financial Sustainability Plan
Financial Strategy
Exhibit 14. Projected Revenues and Expenditures with Recommendations, 2023-2028
$ 80,000,000
$75,000,000
$70,000,000
$65,000,000
$60,000,000
$ 55,000,000
$50,000,000
$45,000,000
$40,000,000
2023 2024 2025 2026 202- 2028
Revenues Expenditures -Adopted --^ Expenditures-CommitteE
Source: City of Tukwila, 2023; BERK 2024.
Exhibit 15. Projected Revenues and Expenditures with Recommendations, 2025-2028
Category Projected Projecte• Projected Projected
2025 • 2027 2028
$66,814,000 $68,258,000 $69,792,000 $71,551,000
..............................................................................................................................................................................................................................................................................
$66,733,000 $68,107,000 $69,428,000 $70,784,000
..............................................................................................................................................................................................................................................................................
$81,000 $151,000 $364,000 $767,000
Note: Amounts have been rounded to the nearest $1,000. The expenditures represent the higher end of the range of costs.
Source: City of Tukwila, 2023; BERK 2024.
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61
Conclusion and Next Steps
This plan can be a tool the City Council can use to inform policy setting and budget development for the
upcoming budget cycle and in future cycles. The plan's guidance can be used as a framework for
upcoming City Council discussions about budget priorities and the use of revenue tools. The City Council
has choices ahead of it that are discussed in this plan, such as setting tax rates and utility rates.
The plan can also inform ongoing operations and decision -making at the City staff level. The Committte's
recommendations include some specific tactics for the City to consider implementing in the next budget or
future budgets.
This plan represents the input from an engaged community and a committed staff team. The Financial
Sustainability Committee members and others in the community can continue to be partners in addressing
Tukwila's fiscal challenges. One of the plan's recommendations is to provide regular reporting on
implementation. As mentioned in the Implementation section, the City's efforts to achieve cost efficiencies
and transparently communicate with its community will place it in a trusted position to have conversations
about balancing the desire for services and the funding needed to provide them.
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City of Tukwila Financial
Sustainability Plan
Technical Appendix I DRAFT April 2024
Contents
Appendix A: Community Profile 2
Appendix B. City Services and Budget Overview 20
Appendix C. Financial Overview 27
Appendix D. Community Priorities 39
Appendix E. City Programs and Services 43
Appendix F: Service Level Adjustments 55
Appendix G: Adopted Financial Forecast 57
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' 63
Appendix A: Community Profile
This profile provides an overview of the Tukwila community and
comparisons to King County and peer cities in the region. These
peer cities are Burien, Kent, Renton, and SeaTac. These peer cities
were selected because they are neighbors in the region or have a
similar level of revenue collection to Tukwila. The City of
Lynnwood is also used as a comparison when looking at the City's
finances because it also has a large retail shopping center.
Summary of Key Findings
■ Tukwila is a growing and diverse community. Tukwila School
District has students that represent many cultures and speak
more than 80 world languages. In the past 8 years, Tukwila
has grown faster than peer cities. Tukwila is more racially
and linguistically diverse than King County as a whole.
Tukwila also has a larger share of younger people than King
County.
Tukwila households tend to be larger and more
multigenerational than in King County as a whole.
Tukwila has a higher share of low-income households than
King County, particularly among renters.
Tukwila residents identify as less healthy than residents in King County
Exhibit 1: Tukwila and Peer Cities
e
9
Edrionds
Mountlake
Terrace
m
Molt Croek
HI
Sarr
Ease Renton
on-. j Ighlands-i
CascadeFarwood 4
Is
Map!'
and Washington State.
Tukwila has a very high jobs to population ratio, with a strong commercial sector that includes retail
sales and manufacturing.
Employment growth in Tukwila has been slower than peer cities, but jobs are projected to grow over
the next two decades.
Most businesses in Tukwila have 100 or fewer employees. Most jobs are in the service, retail, and
manufacturing sectors.
Most Tukwila workers commute from outside the City, while most Tukwila residents commute to other
cities for work.
Tukwila sees a large influx of daytime non-residents who commute in for shopping and employment,
which likely increases the demand for public services.
More than half of Tukwila's General Fund revenues are from property and sales taxes. With the
Southcenter mall, a majority of Tukwila's taxable retail sales are attributed to consumer shopping.
■ Tukwila's largest General Fund expenditure is toward Police services, which is similar to peer cities.
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2
Community Characteristics
Population
Tukwila is a growing and diverse community. In the past 8 years, Tukwila has grown faster than peer
cities. Tukwila is more racially and linguistically diverse than King County as a whole. Tukwila also
has a larger share of younger people than King County.
Historical and Projected Growth
Based on the City's population growth target, Tukwila's population is estimated to grow 2.2% annually
over the next 20 years (). Growth targets are based on the region's plan for growth. The Puget Sound
Regional Council coordinates regional planning policies that provide a framework for cities and counties to
achieve shared regional goals. These policies identify the population and employment targets for each city
and county that must go into their local comprehensive plans.
In addition to the residential population, approximately 150,000 individuals commute into Tukwila daily
for work or shopping.' From 2016 to 2023, Tukwila grew faster than King County and peer cities in the
region (Exhibit 2).
Exhibit 2: Tukwila Historical and Projected Residential Population, 1990-2044
c 40,000
0
a
35,000
a.
0
30,000
25,000
20,000
15,000
10,000
5,000
2023 population: 22,780
2044 target: 36,005
(+2.2% per year) ,o
,
0
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045
Year
Sources: Washington Office of Financial Management, 2023; PSRC, 2023.
I Source: City of Tukwila.
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365
Exhibit 3: Annual Population Growth, Tukwila, Peer Cities, and King County, 2016-2023
16%
14%
Total Population Growth
12%
10%
8%
6%
4%
2%
0%
2016 2017 2018 2019 2020 2021 2022 2023
Year
Tukwila: 15.0%
King County: 7.9%
Kent: 8.6%
SeaTac: 8.2%
Burien: 5.7%
Renton: 4.7%
Sources: Washington Office of Financial Management, 2023; PSRC, 2023.
Race and Ethnicity
Compared to King County, a higher proportion of the Tukwila population are Black or African American,
American Indian and Alaska Native, Asian, Native Hawaiian and Other Pacific Islander, and Some other
race (Exhibit 4). Almost 20% of the Tukwila population identifies as Hispanic or Latino, which is nearly
double the King County average (Exhibit 5).
Exhibit 4: Racial Composition of Tukwila and King County, 2021
13%
19%
33%
Tukwila
9%
4%
6%
King County
Note: Labels are suppressed for shares under 1 %.
■ Two or more races
■ Some other race alone
■ Native Hawaiian and Other Pacific Islander alone
Asian alone
■ American Indian and Alaska Native alone
■ Black or African American alone
White alone
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates.
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4
Exhibit 5: Hispanic or Latino Composition of Tukwila and King County, 2021
82%
Tukwila
10%
King County
Hispanic or Latino
Not Hispanic or Latino
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates.
Languages Spoken
Approximately 46% of the Tukwila population speaks a language other than English at home, which is
comparable to peer cities and higher than King County (Exhibit 6). The top three language groups spoken
at home in Tukwila are English, Asian and Pacific languages, and Spanish. The City generally translates
written materials for the community into Somali, Spanish, and Vietnamese. Tukwila School District notes that
it has students that speak more than 80 world languages.
Exhibit 6: Language Spoken at Home, Tukwila, Peer Cities, and King County, 2021
54 %
Tukwila
Burien
58%
Kent
M
63%
Renton
52%
29%
71%
SeaTac King County
• Only English Spoken at Home Language Other than English Spoken at Home
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates.
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567
Age Distribution
Compared to King County, Tukwila has a larger share of younger residents, particularly those in the 10-14
and 25-29 age ranges. (Exhibit 7).
Exhibit 7: Age Distribution in Tukwila and King County, 2021
Population by Age Range
2,500
2,000
1,500
1,000
500
0
6.7%
5.3%r.i9f►
i
10.5%
8.5% 8.5%
4.8%
i
6.9%
i
Tukwila
— — — King County
•
•
•
3.3%.** 1
2.7% 2.7%
♦
1.6%
4.2,0
In a v a v 0• v a v a V a v a v 0• v +
I c4 tN as CI *t 1- in in *0 ,o N. N. CO
o10 1 I I I 1 1 I I I 1 1 I I I CO
C — — • N n CI cn • v v 41 In ▪ '0 NO N. N.CU
Age Cohort
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates.
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6
Households
Tukwila households tend to be larger and more multigenerational than in King County as a whole.
Thirty percent of households in Tukwila have one or more people under 18 years old and 24% have one or
more people 65 years and over (Exhibit 8). These percentages are slightly higher than in King County.
Tukwila also has more large families compared to King County, with a higher percentage of households
with at least three people (Exhibit 9). Tukwila has a similar number of people per household compared to
all peer cities, but a slightly higher number than King County (Exhibit 10).
Exhibit 8: Household Profile by Age, Tukwila and King County, 2021
Percent of Households
35%
30%
25%
20%
15%
10%
5%
0%
28%
30%
23%
24%
Households with one or more people Households with one or more people
under 18 years 65 years and over
• King County • Tukwila
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates.
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769
Exhibit 9: Household Profile by Number of People, Tukwila and King County, 2021
40%
35%
30%
25%
20%
15%
10% . ■
Percent of Households
5%
0%
1-person 2-person 3-person 4-person 5-person 6-person 7+ person
household household household household household household household
■ King County Tukwila
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates.
Exhibit 10: Persons per Household, Tukwila, Peer Cities, and King County, 2020
3.0
2.9 2.9
2.8
2.7
Persons per Household
2.6
2.5
2.4
2.3
2.2
2.6
2.6
2.6
2.7
2.4
Tukwila Burien Kent Renton SeaTac King County
Source: Washington Office of Financial Management, 2020.
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8
Housing and Income
Tukwila has a higher share of low-income households than King County, particularly among renters.
Seventy percent of Tukwila households have incomes below the area median family income, compared to
46% of King County households (Exhibit 11). Median family income is a common measure used to
understand housing affordability. The "median" income is a benchmark that is right in the middle of the
income range. Half of the families in the range would make more than this, and the other half would make
less. A household may represent a single person, but a family represents related people in a household.
Tukwila has more renter -occupied households than do peer cities and King County (Exhibit 12). Seventy-
nine percent of Tukwila renters have an income below the area median family income, compared to 56%
of Tukwila homeowners (Exhibit 13 and Exhibit 14).
Exhibit 11: Households by Median Family Income (MFI), Tukwila, Peer Cities, and King County, 2020
30%
14%
18%
20%
Tukwila
11%
16%
16%
13%
14%
17%
rmi
43%
13%
16%
13%
34%
11%
16%
15%
33
13%
18%
21%
54°
Burien Kent Renton Lynnwood SeaTac King County
■ Above Median Income (>100%)
Moderate Income (80-100%)
Low -Income (50-80%)
Very Low -Income (30-50%)
■ Extremely Low -Income (<30% MFI)
Note: Median family income refers to the HUD Area Median Family Income for the Seattle -Tacoma -Bellevue Metropolitan
Statistical Area, which is adjusted based on household size.
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020.
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971
Exhibit 12: Renter and Owner -Occupied Households, Tukwila, Peer Cities, and King County, 2020
Renter -occupied
■ Owner -occupied (no mortgage)
■ Owner -occupied (with mortgage)
61%
In
25%
45%
38%
45%
47%
37%
51%
S
32%
44%
40%
Tukwila Burien Kent Renton SeaTac King County
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020.
Exhibit 13: Renter Households by Median Family Income, Tukwila, Peer Cities, and King County, 2020
r
21%
i
15%
13%
27%
Tukwila
16%
10%
25%
20%
12%
14%
24%
28
16%
18%
17%
p
13%
9%
20%
20%
i
22%
J
11%
18%
27%
11%
14%
15%
Burien Kent Renton Lynnwood SeaTac King County
■ Above Median Income (>100%)
Moderate Income (80-100%)
Low -Income (50-80%)
Very Low -Income (30-50%)
■ Extremely Low -Income (<30% MFI)
Note: Median family income refers to the HUD Area Median Family Income for the Seattle -Tacoma -Bellevue Metropolitan
Statistical Area, which is adjusted based on household size.
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020.
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Exhibit 14: Owner Households by Median Family Income, Tukwila, Peer Cities, and King County, 2020
4%
13%
26%
9%
Tukwila
n
57%
11%
9%
13%
52%
15%
15%
57%
11%
13%
12% 10%
12%
13%
11%
14%
18%
15%
10%
8%
Burien Kent Renton Lynnwood SeaTac King County
■ Above Median Income (>100%)
Moderate Income (80-100%)
Low -Income (50-80%)
Very Low -Income (30-50%)
■ Extremely Low -Income (<30% MFI)
Note: Median family income refers to the HUD Area Median Family Income for the Seattle -Tacoma -Bellevue Metropolitan
Statistical Area, which is adjusted based on household size.
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020.
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'73
Community Health
Tukwila residents identify as less healthy than residents in King County and Washington State.
Public Health — Seattle & King County tracks many indicators of health status and determinants of health in
cities and neighborhoods in King County. The data for Tukwila includes data for the City of SeaTac. As
shown in Exhibit 15, more Tukwila and SeaTac residents are in fair or poor health than in King County and
Washington State. More people in Tukwila and SeaTac are uninsured and do not have a primary care
provider. Adults over 65 have more unhealthy days than those in King County and the State.
Exhibit 15: Select Community Health Indicators, Tukwila, King County, and Washington State, 2021
40
as
30
25
20
15
10
5
0
Fair or poor Frequent Unhealthy days Unhealthy days Disability (%) No primary Uninsured age
health (%) mental distress (18+) (days) (65+) (days) care provider 18-64 (%)
{oro} (%)
■ SeaTac/Tukwila ■ King County ■ Washington State
Source: Public Health — Seattle & King County, City Profile Data, 2021.
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i12
Loca I Economy
Historical and Projected Employment
Employment growth in Tukwila has been slower than peer cities, but jobs are projected to grow over
the next two decades.
Tukwila has a higher employment to population ratio than peer cities and King County (Exhibit 1 6).
Employment in Tukwila declined by the greatest percentage among peers in 2021 and employment growth
in 2022 has not yet recovered to the 2016 level (Exhibit 17). However, jobs in Tukwila are projected to
grow 1.5% annually through 2044 (Exhibit 1 8).
Exhibit 16: Covered Employment to Population Ratio, Tukwila, Peer Cities, and King County, 2000-2022
Covered Empl. / Population Ratio
3.00
2.50
2.00
1.50
1.00
0.50
0.00
2000 2005 2010 2015 2020
Sources: PSRC Covered Employment, 2023; Washington Office of Financial Management, 2023.
Tukwila: 2.03
SeaTac: 1.17
King: 0.62
Renton: 0.60
Kent: 0.52
Burien: 0.24
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1 375
Exhibit 17: Growth in Covered Employment, Tukwila, Peer Cities, and King County, 2023
30%
25%
Sea Tac: 21.1%
Percent employment change from 2016
20%
15%
10% / King County: 11.0%
5%
0%
-5%
-1 0%
-15%
2016
2017 2018
2019
Source: PSRC Covered Employment, 2023.
Exhibit 18: Covered Employment in Tukwila, 2000-2045
70,000
60,000
50,000
40,000
30,000
20,000
10,000
Covered Employment
2022 employment: 45,825
2020
2021
Renton: 4.0%
Burien: 1.9%
Kent: -0.3%
Tukwila: -3.1%
2022
2023
2044 target: 63,074
(+1.5% per year)
0
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045
Year
Note: Covered employment refers to jobs "covered" under the state's Unemployment Insurance Program and constitutes 85-90% of
total employment.
Source: PSRC Covered Employment, 2023; King County, 2023.
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14
Business Sizes and Sectors
Most businesses in Tukwila have 100 or fewer employees. Most jobs are in the service, retail, and
manufacturing sectors.
Out of 2,344 firms in Tukwila, over 97% have fewer than 100 employees (Exhibit 19). Services, retail, and
manufacturing comprise most Tukwila jobs, which is comparable to Burien, Kent, Renton, and King County
(Exhibit 20 and Exhibit 21). Examples of sectors in the services category are healthcare, arts and
entertainment, and information technology. The retail category trade represents retail trade, or the sale of
goods to consumers. Examples of manufacturing include the manufacturing of food, materials, or equipment.
In 2021, approximately one-third of those working in Tukwila made less than $3,333 per month, which
corresponds to a wage of $20.83 an hour or less (Exhibit 22). For context, the City's minimum wage has
increased from $1 3.69 per hour in 2021 (per the statewide minimum wage) to $16.99 per hour for mid-
size employers and $18.99 per hour for large employers in 2023 (following a voter -approved ordinance).
Exhibit 19: Tukwila Businesses by Size, 2021
0.1 % (3 Firms)
0
Sources : Esri/DataAxle (2021); ACS ; CAI, 2022.
Under 5 Employees
5 to 24 Employees
25 to 99 Employees
100 to 499 Employees
Over 500 Employees
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1577
Exhibit 20: Covered Employment by Major Sector, Tukwila, Peer Cities, and King County, 2021
Tukwila
3%
9%
Burien
4%
4%
24%
25%
21%
11%
Kent
Renton
14%
54%
22%
6%
7%
8%
50%
7%
5%
6%
Sea Tac King County
■ Education
■ Government
■ Wholesale / Transportation / Utilities
■ Services
Retail
■ Manufacturing
■ Finance / Insurance / Real Estate
■ Construction / Resource
Note: Covered employment refers to jobs "covered" under the state's Unemployment Insurance Program, and constitutes 85-90% of
total employment. Labels suppressed for shares under 3%.
Source: PSRC Covered Employment, 2021.
Exhibit 21: Covered Employment Job Count by Major Sector, Tukwila, Peer Cities, and King County, 2021
Major Sector
Tukwila
Burien
Kent
Renton
Sea Tac
King County
Construction / Resource
2,948
1,030
7,899
2,739
710
76,866
Finance / Insurance / Real Estate
3,030
312
1,679
2,1 10
647
68,823
Manufacturing
7,634
127
14,514
13,851
422
87,605
Retail
6,718
2,280
5,869
5,402
501
166,855
Services
13,462
6,097
17,749
22,269
7,096
668,004
Wholesale / Transportation / Utilities
4,671
348
16,688
4,754
17,068
106,364
Government
2,614
503
3,138
7,406
4,466
93,135
Education
462
981
2,565
2,191
629
73,942
Total
41,538
11,678
70,101
60,723
31,539
1,341,594
Note: Covered employment refers to jobs "covered" under the state's Unemployment Insurance Program, and constitutes 85-90%
of total employment. Labels suppressed for shares under 3%.
Source: PSRC Covered Employment, 2021.
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16
Exhibit 22: Tukwila Employment Shares by Earnings Category, 2021
■ $1,250 per month or less
■ $1,251 to $3,333 per month
■ More than $3,333 per month
Note: Employment refers to jobs with positive earnings in 2021 Q2 (April to June).
Source: U.S. Census LEND, 2021.
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'779
Journey to Work
Most Tukwila workers commute from outside the City, while most Tukwila residents commute to other
cities for work.
Exhibit 23 shows where workers in Tukwila live. Just less than 2% of Tukwila's approximately 46,000
workers, or approximately 880 workers, also reside in the City. Most employees in Tukwila come from
outside the City. The cities with the largest share of Tukwila workers are Seattle, Kent, and Renton.
Exhibit 23: Tukwila Employees' Places of Residence, 2019
rd
Gig Har'
ale
.acoom
►'
Be lebridge
_ lanr
M,onche
State
Ole lie
University
Place
Va sh on
Tacoma
4.2%
Beattie
12.6%v
s Moine
'di leon
FIFe Edgewood
Wailer
Krngs ga le
kland
Merter
a
iiy4re r
rnner
Puyallup
I alrownna . _ _ .. V
While
Redmond
Bellevue
2.4%
Newcastle ou gar
Moun tarn Issaquah
Lake
rapes
Bonney Lake
❑'teal1
Union Hrif
Sam ma mish
ton
ds
SE I,Inrh t'
gaw,n
Ravensdale
Grand
Ridge
Squak West •Tige
Mountain Mouniarn
Maple Valley
M
Hobart
Black Btamond
Green Riv
Gorge Sea
P. rk
Con=en..at
Area
Where Tukwila Workers Live
Put of Workers
rower
0
Krng_,County Prlmary_Roads
0 2 4 Miles
I �
Sources: U.S. Census LEND, 2019; CAI, 2022.
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Exhibit 24 shows where Tukwila residents who are in the labor force work. Over 8% of Tukwila's residents
in the labor force, approximately 11,800 people, also work in Tukwila. Over 37% of Tukwila residents
who work do so in Seattle. Over b% work in each of four nearby cities: SeaTac, Kent, Renton, and
Bellevue.
Exhibit 24: Tukwila Residents' Places of Employment, 2019
'.CAI
Bainbridge
-rani'
rd
Marche
Serve
SE Seogwr.k .0.1
Olslla
Gig Har'
ale
Vashon
eattle
Mercer
Burien f Tu k+w I Renton
2.5% (I Lea 6.9%
1 +
ar� SeaTac
Park f 6.7%
Kingsgate
+delalde
Kent
6.6%
Sr
Redmond
1.5%
!Le
0
wcastle scat
Mountain
S f
ens on
H'zifiriga2ri
Auburn /
2.2%
'+u
Bonney Lake
C,,val I
Union Nell
Sammamish
brand
Rrage
Issaquah
Spook West lige
Mosstaier Mountarr
41.
Mapls Valley
kn
Hobart
I
Ravensdale
Black Diareand
Green Riv
Gorge Si
Park
Can=e'
Area
Where Tukwila Residents Work
Pct of Commuters
r-1 Fewer
Greater
0 2 4 Miles
i I
Sources: U.S. Census LEND, 2019; CAI, 2022.
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Appendix B. City Services and Budget Overview
Tukwila and Peer City Services
Tukwila sees a large influx of daytime non-residents who commute in for shopping and employment,
which likely increases the demand for public services.
The City of Tukwila provides most of the services to the community, except for fire and emergency services,
which are currently provided by Puget Sound Regional Fire Authority through a contract. In 2025, Puget
Sound Regional Fire Authority will provide service directly to Tukwila and the City will no longer pay for
this service through a contract. Demand for many City services, including Police and Parks & Recreation, is
increased by the large number of non-residents who come to the city during the daytime for shopping or
employment. Peer cities provide services to the community in a similar way to Tukwila, with all receiving fire
and emergency services from a regional fire authority directly or through a contract. The cities of Burien
and SeaTac contract for police services with King County.
Exhibit 25: Services and Providers, Tukwila and Peer Cities
Department
Tukwila
Burien
Kent
Lynnwood
Renton
SeaTac
Population (2023)
22,780
52,560
139,100
40,790
107,900
31,740
Full -Time Equivalent
Positions (General Fund)
246
89
745
290
651
156
Executive
Mayor/
Administrator
City Manager
Mayor/
Administrator
Mayor/
Administrator
Mayor
Administrator
City Manager
City Council
V
V
V
V
V
V
Finance
V
V
V
V
V
V
Administration
V
V
V
V
V
V
Parks & Recreation
V
V
V
V
V
V
Community
Development
V
V
V
V
V
V
Municipal Court / Legal
V
V
V
V
V
V
Police
V
King County
Sheriff's Office
V
V
V
King County
Sheriff's Office
Public Works
V
V
V
V
V
V
Fire
Regional Fire
Authority
Fire District
Regional Fire
Authority
Regional Fire
Authority
Fire Authority
Regional Fire
Authority
Water
V
Local Districts
V
V
V
Local Districts
Sewer
V
Local Districts
V
V
V
Local Districts
Surface Water
V
V
V
V
V
V
K-1 2 Public Education
Local Districts
Local Districts
Local Districts
Local Districts
Local Districts
Local Districts
Note: Some properties in Tukwila, Kent, and Renton are serviced by other loca utility providers. Sources: City of Burien, City of Kent,
City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023; BERK, 2023.
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i2o
General Fund Revenues
More than half of Tukwila's General Fund revenues are from property and sales taxes. With the
Southcenter mall, a majority of Tukwila's taxable retail sales are attributed to consumer shopping.
Tukwila maintains several types of funds, with different purposes and restrictions. The General Fund is the
most flexible and collects revenues such as property tax and sales tax. The City also has funds dedicated
to paying for capital projects, debt service, internal services (such as vehicle maintenance), and utilities.
Utility funds are called Enterprise Funds. These are managed like a business and do not receive general
tax dollars —the revenues they generate can only be used to pay for their own expenses. Foster Golf Links,
an Enterprise Fund, does receive some support from the General Fund. Per current Council adopted policy,
18% of prior year ongoing revenues are held in General fund reserves and 10% of prior year ongoing
revenue are held in Contingency reserves (reserves set aside for emergency use) (Exhibit 26).
Exhibit 26: Tukwila Funds by Type, 2023
Internal Service
6%
Enterprise
22%
Debt Service
8%
Capital Projects
16%
Source: City of Tukwila, 2023.
Fiduciary
0%
Special Revenue
1%
General and Contingency
48%
Tukwila's General Fund is primarily funded by taxes, with smaller shares of revenue coming from license
and permit fees, grants, and charges for service (Exhibit 27). Taxes that contribute to the City's General
Fund can be broken down further into categories: property tax comprises 25% and sales tax comprises
28% of total revenues (Exhibit 28). Sixty-four percent of Tukwila's taxable retail sales are from consumer
shopping, which includes general merchandise, home furnishings/electronics, clothing & accessories,
restaurants, automotive/gas, and building materials (Exhibit 29).
As shown in Exhibit 28, Tukwila's new business and occupation tax is estimated to contribute 4% of total
revenues. Burien, Kent, and Renton also collect a business and occupation tax; these revenues make up a
larger share of total revenues in Kent and Renton. Tukwila's revenue composition is similar to that of
SeaTac, with property tax and sales tax making up a roughly equal share of total revenues, though these
make up a larger share in SeaTac.
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Exhibit 27: Tukwila General Fund Revenues by Source, 2023
Taxes
72%
Source: City of Tukwila, 2023.
Charges for Services
4% Financing
6%
Fines and Penalties
1%
Grants
7%
Intergovernmental
2%
Licenses and Permits
8%
Miscellaneous
1%
Exhibit 28: Tax Revenues as a Share of All General Fund Revenues, Tukwila and Peer Cities, 2023
Tukwila
Burien
Kent
Lynnwood
Renton
SeaTac
25%
28%
25%
14%
8%
4% 6%
34%
26%
17%
45%
5%
10%
21%
10%
20%
30%
12%
14%
38%
41%
• Property Tax ■ Sales Tax B&O Tax Utility Taxes
Sources: BERK, 2023; City of Burien, City of Kent, City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023.
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Exhibit 29: Tukwila Taxable Retail Sales, 2012-2022
$ 25,0 00,000
$ 20,0 00,000
$15,000,000
$10,000,000
$5,000,000
$0
2022 Retail
Trade Share
of Total: 64%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Retail Trade Tax Collections —Total Retail Sales Tax Collections
Sources: City of Tukwila, 2023; Washington State Department of Revenue, 2023.
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General Fund Expenditures
Tukwila's largest General Fund expenditure is toward Police services, which is similar to peer cities.
As shown in Exhibit 30, the largest share of Tukwila's General Fund expenditures goes to the Police
department. The next largest share is for Fire services. This will change in 2025, when the City no longer
contracts with Puget Sound Regional Fire Authority. Similarly, the General Fund department with the largest
number of full-time positions is Police, followed by Community Development, Public Works, and Parks and
Recreation (Exhibit 31).
Exhibit 30: Tukwila General Fund Expenditures by Department, 2023
Parks and Recreation
7%
Court
2%
Administrative
8%
Non -Departmental
1%
F ire
21%
Public Works
11%
Source: City of Tukwila, 2023.
Exhibit 31: FTEs by Department, 2023
Mayor's Office
4%
Department
2023 Full -Time Employees
Mayor's Office
4.50
City Council
8.00
Finance
14.00
Administration
22.04
Parks & Recreation
24.50
Community Development
28.25
Municipal Court
10.65
Police
100.00
Public Works
27.50
City Council
1%
Finance
6%
Community
Development
7%
Source: City of Tukwila, 2023.
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When excluding the budget for Fire services, over 40% of Tukwila's General Fund is dedicated to Police
services, followed by administrative services, public works/streets, and parks and recreation (Exhibit 32).
Peer city budgets dedicate a similar share for police services. Tukwila spends a smaller share on community
and economic development and parks and recreation than some peer cities. Kent and Burien use other
funds to pay for some or all public works expenses, which is not represented in the exhibit below.
When looking at budgeted General Fund spending compared to a city's total assessed value, Tukwila's
spending is comparable to peer cities (Exhibit 33). The high police spending per assessed value in Tukwila
and Lynnwood likely reflects the large daytime population drawn by a mall and resulting need for
services.
Exhibit 32: General Fund Expenditures Excluding Fire by Department in Tukwila and Peer Cities, 2023
Tukwila
Burien
Kent
Lynnwood
Renton
SeaTac
5% 10% 6%
22%
54%
5% 6% 14% 6% 14%
41%
14%
5% 9% 11% 10% 16%
35%
13%
Note: Labels suppressed for shares under 5%.
■ Council/Manager/Mayor/Clerk
■ Administrative/Finance/IT/HR
■ Community/EconDev/Human Services
■ Legal/Court
■ Parks and Recreation
■ Police
■ Public Works/Streets
Sources: BERK, 2023; City of Burien, City of Kent, City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023.
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Exhibit 33: General Fund Expenditures per $1,000 of Assessed Value, Tukwila and Peer Cities, 2023
$3.00
$2.50
52.00
$1.50
$0.50
$0.00
11111 uiluli AM
Police budget per S1,000 assessed Parks budget per S1,000 assessed Development budget per S1,000
value va Iue assessed value
■ Burien ■ Kent ■ Lynnwood ;w Renton s SeaTac ■ Tukwila
Note: This chart represents General Fund budgeted expenditures only. Cities may pay for these services using other funds as well,
which are not represented here.
Sources: City of Burien, City of Kent, City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023; BERK 2023.
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Appendix C. Financial Overview
Overview
This document provides an overview of the City of Tukwila's revenue tools, comparisons to revenue tools in
peer cities, General Fund budget trends, and staffing levels. This information can be used to provide a
basis for understanding the City's financial status and to guide the City's financial sustainability plan.
Key Points
■ The City collects different types of revenues from different groups, such as residents and businesses.
■ Tukwila's total property tax rate is similar to peer cities in King County. Compared to peer cities,
Tukwila has a lower business and occupation tax rate.
■ The cities of Burien and Lynnwood collect additional revenues from transportation benefit district
charges, which are not currently used by Tukwila.
■ General Fund revenues decreased significantly at the onset of the pandemic and increased as the
economy began to recover. As part of the budget and budget amendment processes, the City aligns
service levels to match expenditures with available revenues.
■ As a service provider, the City spends the largest percentage of General Fund expenditures on salaries
and benefits. Labor costs are driven by the regional employment market and City policies.
■ Total City staffing has decreased slightly since 2016, during which time the City's population has
continued to grow.
■ Increased service needs and the growing cost of providing existing services will impact the City's
financial forecast.
Revenue Tools
Exhibit 34 shows the City's budgeted revenue mix across all funds in 2023 and 2024. Taxes are the
largest category of revenue, followed by fees which include charges for service, licenses, permits, fines,
and penalties. The City also receives intergovernmental revenues, such as state and federal grants, and
other financing, such as sale of capital assets and internal fund transfers.
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Exhibit 34: Tukwila Revenue Mix for All Funds, 2023-2024
1%
2023 Revenue
$142.5 million
Sources: BERK, 2023; City of Tukwila, 2023.
• Taxes
• Licenses & Permits
• Intergovernmental
Charges for Services
• Fines and Penalties
• Miscellaneous
• Other Financing
0.5%
2024 Revenue
$156.1 million
Most taxes support all government functions and are not tied to a particular service. Some taxes are
collected for a specific purpose or are restricted by State law. Fees are related to the cost of the service
provided and are paid by the person using the service. To illustrate the difference, all property owners
pay property tax, and the amount does not depend on how much a resident uses City services. Property
owners only pay permit fees if applying for a permit and the fee is intended to offset all or a portion of
the cost of providing the service. Utility rates, which are categorized as a charge for service, support
operating and capital needs for the utility. These are paid by customers of the utility and may be based
the type of customer or consumption.
Exhibit 35 lists examples of the City's major revenue collections, who pays them, how they are used, and
the 2024 budgeted amount from all funds. Some revenues are collected from multiple groups, such as
residents and businesses, and some are collected from only one group, such as users of a service or just
businesses. The revenues listed do not include all revenues collected by the City but include the City's
largest sources or the most common taxes, fees, and rates paid by members of the community.
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Exhibit 35: Examples of Tukwila Major Revenue Sources with Groups Impacted and Uses
Revenue Source
Received From
Use of Revenue
2024 Budget
Taxes
Property Tax Residents, businesses
General operations
$23.1 million
Retail Sales Tax Residents, visitors
General operations
$21.4 million
Utility Tax Private utility providers
General operations, though a
portion of solid waste tax revenue
is dedicated to streets projects
$5.6 million
Business & Businesses General operations $3 million
Occupation Tax
Gambling and
Admissions Tax
Visitors to gambling/
Gambling tax must first be used $5.4 million
entertainment venues for public safety
Commercial Parking
Businesses that charge a Transportation purposes
Tax fee for parking
$600,000
Fees
Business License Fees Businesses
General operations
$3.2 million
Impact Fees Developers
Capital improvements
$900,000
Parks & Recreation Users of parks &
Activity Fees recreation programs
General operations
$1.6 million
Building Permit Fees
Residents, organizations, General operations
businesses
$1.7 million
Utility Rates
Water Utility
Charges
Residents, businesses
Water operations and capital;
cannot be used for general fund
operations
$8.2 million
Sewer Utility
Charges
Residents, businesses
Sewer operations and capital;
cannot be used for general fund
operations
$11.1 million
Surface Water
Utility Charges
Residents, businesses
Surface water operations and
capital; cannot be used for
general fund operations
$8.1 million
Note: 2024 budgeted revenue amounts are from all City funds. The City dedicated some of the Business & Occupation tax to
restoring police positions that had been frozen during the pandemic.
Sources: BERK, 2023; City of Tukwila, 2023.
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Property tax is a large source of revenue for the City. Over two-thirds of the City's property tax revenue
comes from commercial property and one quarter comes from residential property (Exhibit 36). This
accounts for exemptions or properties paying reduced or no property taxes. Exemptions distribute the
burden of tax payments differently than would be without exempt property.
Exhibit 36: Property Tax Revenue by Property Type, 2023
Residential, 25%
Apartments and
Mobile Homes
go/
Commercial,
67%
Notes: Limited to commercial and residential property types. Commercial properties with non -zero residential units are classified as
apartments and mobile homes.
Source: BERK, 2023; King County Assessor's Office, 2023.
Comparison to peer cities
Exhibit 37 compares property tax rates for Tukwila and peer cities. The total property tax is similar for
Tukwila and peer cities in King County. Tukwila and SeaTac both pay for fire services through a contract,
so use local property tax revenue to pay for this and have a higher city levy rate. The other cities are
annexed into a fire district, so do not collect property tax revenue to pay for fire service. Across all peer
cities, a large share of property tax goes to other taxing districts.
Exhibit 38 and Exhibit 39 compare the business and occupation tax rate and business license fee in Tukwila
and peer cities. Tukwila has the lowest business and occupation tax rate. Tukwila's business license fee is
per full-time employee. Lynnwood also assesses a per employee fee in addition to a base fee.
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Exhibit 37: Property Tax Levy Rate for Tukwila and Peer Cities, 2023
Tukwila
SeaTac
Burien
Kent
Renton
Lynnwood
$2.31
$2.31
51 $2.05
$1.40
$2.31
$2.31
$2.31
$0.5
0.5
$1.55 $1.40
•
.61 $1.70
• $1.07 $0.5
$7.35
$10.49
$10.47
$10.60
$ 9.94
$9.20
■ State Schools =City Schools ■City Regular l County Regular ■ Fire ■ Other
Note: "Other" includes other taxing districts and excess city levies.
Sources: BERK, 2023; King County Assessor's Office, 2023; Snohomish County Assessor's Office, 2023.
Exhibit 38: Business and Occupation Tax Rate for Tukwila and Peer Cities, 2023
Kent
Renton
Burien
Tukwila
0.121%
0.100%
0.085%
0.200%
Cities that
contract for
fire service
Cities that are
part of a fire
authority
Notes: Tukwila's Business and Occupation Tax begin January 1, 2024. These rates represent the highest rate levied if the city has a
range depending on the type of business activity.
Sources: BERK, 2023; City of Burien, City of Kent, City of Renton, City of Tukwila, 2023.
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Exhibit 39: Business License Fee for Tukwila and Peer Cities, 2023
Kent
Burien
Renton
Lynnwood
SeaTac
Tukwila
$281
$180
$150
$125
$100
■ Business License Fee (base) ■ Business License Fee (per FTE)
Note: Burien, Kent, and SeaTac have a different base rate based on the number of employees.
Sources: BERK, 2023; City of Burien, City of Kent, City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023.
Other revenue tools that are commonly used by cities include a transportation benefit district fee or tax,
which pays for street maintenance, or impact fees, which pay for capital improvement projects. Exhibit 40
shows these tools and which peer cities currently use them. Tukwila assesses a lodging tax, along with most
other cities. Tukwila also assesses impact fees, which are below some rates of peer cities. Only two cities in
this group charge fees for a transportation benefit district.
Exhibit 40: Other Revenue Tools and Current Rates for Tukwila and Peer Cities, 2023
Transportation
City Lodging Tax Benefit District Fee
Transportation Benefit Transportation Parks
District Sales Tax
Impact Fees Impact Fees
Burien Not used $20
Not used
$948 Not used
Kent 1.0% Not used Not used $8,979 Not used
Lynnwood 2.0% $40 0.10% $6,525 $5,899
Renton 1.0% Not used Not used
$12,209 $3,276
SeaTac 1.0% Not used Not used $3,733 Not used
Tukwila 1.0%
Not used Not used
$3,726 $3,629
Sources: BERK, 2023; Municipal Research and Services Center, 2023; Washington State Department of Revenue, 2023.
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General Fund Budget and Staffing Trends
The General Fund is the City's largest and most flexible fund. Exhibit 41 shows that prior to the pandemic,
between 2017 and 2019, revenues and expenditures grew in line with inflation. The City aligned service
levels and expenditures with available revenues. Revenues declined during the pandemic, in 2020, and
expenditures decreased to match. Revenues grew after the pandemic, in 2021 and 2022, as the economy
began to recover during the pandemic. Expenditures grew during 2021 and 2022 as well, though at a
slower rate in 2021.
In response to the decrease in revenues in 2020, the City froze positions, implemented employee furloughs,
and reduced service levels in areas such as street maintenance and recreation. In the 2021-2022 biennium,
federal funds allowed the City to reinstate key positions in Parks and Recreation, Community Development,
and the Streets Division to continue to provide services in these areas. However, this did not return the City
to previous service levels as several positions continue to be frozen. Exhibit 42 depicts the impact to the
City's total position count, which declined between 2016 and 2023.
Exhibit 41: Tukwila General Fund Revenue and Expenditure Annual Growth Compared to Inflation, 2017-2023
20%
15%
Annual Percent Growth
10%
5%
0%
- 5%
-10%
2017 2018 2019 2020 2021 2022 2023
—.GE Revenues GE Expenditures Inflation
Note: Inflation is based on the annual Consumer Price Index for Seattle -Bellevue -Tacoma.
Sources: BERK, 2023; City of Tukwila, 2023; US Bureau of Labor Statistics, 2023.
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The City's General Fund expenditures are made up of the following categories:
■ Salaries and benefits include overtime, extra labor, holiday pay, insurance, pensions, uniforms, and
unemployment compensation.
■ Operations include supplies, professional development, communication, advertising, rentals, leases,
technology services, public utilities, repairs, and maintenance.
■ Debt service and transfers include principal and interest payments on debt and internal transfers from
the General Fund to other City funds.
Exhibit 42 shows that approximately 70% of General Fund expenditures are spent on salaries and
benefits. A city provides services to the community, which require employees to deliver, so it is standard
that most of a city's budget is spent on salaries and benefits. In 2023, the City changed its fire and
emergency services model to contract for service instead of providing the service. This resulted in a drop in
salaries and benefits and FTEs and an increase in operational expenditures. Exhibit 42 also shows the
number of full-time positions over this period. The total number of positions has been consistent, though
there was a decline in 2020 as the City reduced service levels.
Exhibit 42: Tukwila General Fund Expenditures by Category and Total FTEs, 2016-2023
N $80M
2
$70M
0.
ux, $60M
$50M
$ 40M
$ 30M
$ 20M
$10M
$0M
11311
24%
69%
Nam
25%
69%
6%
27%
67%
7%
25%
68%
6%
23%
71%
23%
E
71%
•23%
66%
6%
42%
52%
2016 2017 2018 2019 2020 2021 2022 2023
Salaries and Benefits Operations
Debt Service and Transfers —Total FTE
Note: The City had a large one-time debt service payment in 2022.
Sources: BERK, 2023; City of Tukwila, 2023.
400
LIS
U-
350 a
300
250
200
150
100
50
0
Staffing and Services Over Time
The City has seen a slight reduction in City staffing per population between 2016 and 2023 (Exhibit 43).
Over the same period, demand has varied for different services. For many services, demand decreased
during the pandemic but has rebounded or begun to rebound.
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Exhibit 43: City Population and FTEs per 1,000 Residents, 2016-2023
2 25,000
a
a
m
20,000
3
4-
15,000
10,009
5,000
0
2016 2017 2018 2019 2020 2021 2022 2023
•Tukwila Population —FTEs per 1,000 residents (without Fire)
Sources: City of Tukwila, 2023; WA Office of Financial Management, 2024; BERK, 2023.
Exhibit 44: Police Calls for Service, 2016-2022
35,000
34,229 34,345
34,000
33,288
33,000 33,123
32,465
32,000
31,338
31,000
30,000 30,079
29,000
28,000
27,000
2016 2017 2018 2019 2020 2021 2022
Sources: City of Tukwila, 2023; BERK, 2023.
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
FrEs per 1,000 residents, without Fire
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Exhibit 45: Number of Records Requests and Number of Staff Hours Annually, 2016-2021
1,800
1,689
1,600
1,200
1,139
1,000
800
600
400
200
0
587
571
131 131
112
1,463
1,400
155
982
118
2016 2017 2018 2019 2020 2021
130
Number of Records Requests -Number of Staff Hours
Sources: City of Tukwila, 2023; BERK, 2023.
Exhibit 46: Number of Recreation Class Participants and Community Center Admissions, 2016-2022
200,000
1 80,000
160,000
140,000
1 20,000
100,000
80,000
60,000
40,000
20,000
0
2016 2017 2018 2019 2020 2021
-Recreation Class Participants -Community Center Admissions
Sources: City of Tukwila, 2023; BERK, 2023.
38,407
38,507
2022
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Exhibit 47: Number and Total Value of Permits Issued by Community Development, 2018-2023
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
,757
2018
1,664
2019
2020
2021
2022
1,840
Total dumber of Permits —Total Value of Permits
Sources: City of Tukwila, 2023; BERK, 2023.
Note: Includes building, mechanical, electrical, and plumbing permits.
2023
5300
0r
$250
$200
$150
$100
$50
$0
City Staff Compensation
The bulk of the City's activities are in service provision. These services are principally delivered by City
staff and labor costs make up nearly 70% of the City's General Fund budget. As this is such a large cost
driver, additional information is provided on employee compensation.
Salaries and benefits are guided by a City Council -adopted compensation policy and philosophy. The
policy was adopted to address issues such as parity between represented and non -represented
employees, internal equity between functions, salary compression, and how compensation can support
recruitment and retention of employees in the local labor market.
The policy guides compensation by identifying comparable cities. It states that the City will seek to set
salaries at the market average for non -represented positions and at a "competitive" level for represented
employees. It grants adjustments when salaries are outside of the market range. The policy also states that
when economic conditions allow, the City should provide benefits to represented and non -represented
employees that are slightly above average of comparable jurisdictions. The City aims for cost -of -living
adjustments (COLA) based on 90% of Consumer Price Index- Clerical Workers (CPI-W) and parity
between represented and non -represented employees' COLA and benefits.
Represented Employees
87% of the City's workforce is represented by a union. Salaries and benefits for represented employees
are negotiated through agreements between cities and their labor organizations and dictated by collective
bargaining rules as well as federal and state labor laws. Collective bargaining agreements are contracts
ratified by labor groups and approved by City Council that govern specific aspects of employment.
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Non -represented Employees
The McGrath Human Resources Group completed a market study of non -represented positions in 2023
which found that salaries for non -represented Tukwila staff were competitive with the market average.
The study includes recommendations for position movement to better align with the market and the
following additional recommendations:
1. Maintain the compensation philosophy of market average compensation. Consider looking at
comparable cities based on geography instead of assessed value.
2. Complete market studies every three to four years and include a total compensation review.
3. Evaluate moving to merit/performance-based pay for higher steps.
McGrath also noted that following the pandemic, all industries, both public and private, are competing for
already limited staff. In addition, state minimum wage laws are pushing non -skilled wages higher and
bargained agreements around compensation among represented workers often lead to upward pressure
on compensation for non -represented staff as well. These forces have caused many employers to increase
wages to help recruit and retain talent, with nearly every employer in both the public and private sector
experiencing recruitment and retention challenges.
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Appendix D. Community Priorities
This document provides an overview of the Tukwila community's values and priorities as expressed in City
documents and plans. This information provides context for understanding what the community's priorities
are and how they inform City priorities and service delivery. Common themes reflect the community's desire
to have:
• great neighborhoods and quality public spaces,
• a vibrant and diverse economy,
• a positive community identity,
• and opportunity for all Tukwila residents.
Strategic Plan
The City's budget document references the City's strategic priorities, which were articulated in the Tukwila
Strategic Plan. These priorities are used to align resources so that the City funds programs and services that
align with community desires. The Strategic Plan establishes the City's Vision and Mission:
COMMUNITY VISION
The city of opportunity,
the community of choice.
CITY MISSION
To provide superior services
that support a safe, inviting
and healthy environment for our
residents, businesses and guests.
The Strategic Plan's five Goals that inform budget priorities are:
• A community of inviting neighborhoods and vibrant business districts.
• A solid foundation for all Tukwila residents.
• A diverse and regionally competitive economy.
• A high performing and effective organization.
• A positive community identity and image.
Economic Development Strategy
The City has developed an Economic Development Strategy to guide its efforts to strengthen Tukwila's
economic future. The primary purpose of the Economic Development Strategy is to describe Tukwila's vision
for sustainable and inclusive economic prosperity and to identify strategies and actions to achieve that
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vision. The vision in the strategy is: "Tukwila is a vibrant community with a strong and sustainable
economy that celebrates and empowers its diversity, supports economic prosperity for all residents,
and sustains a foundation for businesses of all sizes."
The Economic Development Strategy's Goals are:
• A vibrant, diverse, and resilient economy.
• A safe and desirable community with a positive identity.
• Prosperity and opportunity for businesses, workers, and residents.
• A supportive environment for small business and entrepreneurs.
• A community that celebrates and invites diversity.
Parks, Recreation and Open Space Plan
Another planning document that incorporates the community's priorities is the City's Parks, Recreation and
Open Space Plan (PROS Plan), which was adopted in 2020. This PROS Plan guides future investments for
the City's parks and recreation system. Plan recommendations address priorities and key needs identified
during the planning process:
• Close interaction with nature.
• Cultural heritage inspiration.
• Vibrant urban water centerpiece.
• Lively park -adjacent commerce.
• Expanded parks/preserved open space.
• Reinvigorated quality of existing parks and facilities.
• Fun fitness opportunities.
• Affordable, stimulating experiences for all ages.
• Convenient, accessible system.
• Safe, family -friendly places.
The Plan's Goals are focused as follows:
• Safe, convenient, and connected system.
• A network of green spaces.
• A sense of community.
• Opportunities for all.
• Safe, inviting, and affordable.
• Healthy people and places.
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Budget Engagement
The City engaged with community members in 2022 to gather feedback on priorities and ideas for the
2023-2024 biennial budget. Staff attended meetings, events, and gatherings to listen to community
members. Staff met with the City's advisory boards and commissions, attended the farmers' market and
park events, and held community stakeholder meetings with seniors, Black community members, and high
school students. Staff also offered an online survey and an online budget tool that allowed individuals to
propose ways to balance the budget.
Community members who participated in engagement placed a high priority on:
• public safety,
• infrastructure maintenance,
• and social services such as youth and senior activities.
Regarding service levels, participating community members preferred to increase existing tax rates, such
as the gambling tax or property tax, or add a business and occupation tax, to maintain existing services
rather than reduce services.
Service Priorities
During community events and meetings, community members reviewed information on City services and
revenue options prepared by staff and identified their service priorities and revenue ideas in a dot
exercise. Listed below are the expenditure priorities in order with the total number of dots:
Youth Activities
Police Services & Public Safety
Human Services & Rental Assistance
City Future Planning
Economic Development Activity
Park & Trail Maintenance
Street Surface Maintenance
Public Records Accessibility
Foster Golf Course Operations
Building Permit Issuance
Middle School Programs
Expenditure Priorities: Dots
0 5 10 15 20 25 30 35 40 45 50
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The City received 65 responses to the online survey. Individuals who participated in the online survey also
identified service priorities. Listed below are the rank of service priorities from the online survey.
Service Priorities: Scores from 65 Respondents
Police services and public safety
Fire and emergency medical services
Utility infrastructure maintenance
Street surface maintenance
Sidewalk and crosswalk maintenance
Park and trail maintenance
Human services and rental assistance
Economic development activity
Community emergency preparedness
Code enforcement activity
Youth activities
City future planning
Communications/community outreach
Building permit issuance
Traffic calming measures
Municipal court services
Senior activities
Foster Golf Course operations
Public records accessibility
Revenue Ideas
0 50 100 150 200 250 300 350
During community events and meetings, community members identified their top ideas for revenues through
a dot exercise. Listed below are the revenue ideas in order with total number of dots:
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Appendix E. City Programs and Services
This document provides an overview of the programs and services provided by the City. This document also
describes factors that impact the cost of these programs and services, recent changes in levels of service,
priorities and unfunded needs, and opportunities for efficiencies. The information is this overview provides
context for future discussion about levels of service and priorities in different program areas. All
information provided in this overview is from the City's 2023-2024 Adopted Budget.
Program Budgeting
Tukwila uses a budgeting approach called "Priority -Based Budgeting", which shows how resources are
allocated to the programs and services that provide the greatest value to residents. The City established a
program inventory that encompassed all the activities the City performs. Costs and positions were then
assigned to each program. Programs are identified as mandated — meaning the program meets a federal,
state, or local requirement — or non -mandated — meaning the program is not required but is a best practice
or a program desired by the community.
For this overview, programs are grouped into several categories:
• Community and economic development
• Community engagement
• Culture and recreation
• General government
• Infrastructure maintenance/improvement
• Public safety
These categories are used instead of departments so that programs that support the same priority or
function can be viewed together. For example, a department may provide programs that support public
safety and community engagement. This overview provides a list of all programs for each category and
the 2024 total budget and positions for each program. This overview includes programs in the General
Fund, capital funds, and other operating funds. It does not include Debt Service Funds or Enterprise Funds,
which are utilities and Foster Golf Course.
Budget and Positions by Category
Exhibit 48 shows the City's total budget by category and what percent of each category is dedicated to
mandated programs. Over 80% of general government programs are mandated and over 50% of
programs in the public safety and community and economic development categories are mandated. As
shown in Exhibit 48 below, the largest categories of the 2024 budget are infrastructure maintenance and
improvement and public safety. Infrastructure maintenance and improvement includes spending on capital
projects.
Exhibit 49 shows the number of full-time positions in each category and what percent of each category is
dedicated to mandated programs. The category with the largest number of positions is public safety. The
second largest is general government, which has a smaller share of the total budget than other categories.
The budget for general government is primarily dedicated to staff, while in categories like public safety or
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II 1O5
infrastructure maintenance and improvement there is a higher level of non -personnel expenditures like
contracts or supplies.
Exhibit 48: City of Tukwila 2024 Total Budget by Category, Operating and Capital Funds
Infrastructure maintenance/improvement 9%
Public safety 52%
General government 86% $11.4M
Community and economic development 59°/$7.3M
Community engagement 43 $4.1M
Culture and recreation3ll $2.MM
Source: City of Tukwila, 2023; BERK 2023.
$40.5M
$50.8M
❑Mandated
• Not mandated
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Exhibit 49: City of Tukwila 2024 FTE Count by Category, Operating and Capital Funds
Public safety 73%
Infrastructure maintenance/improvement
General government
Community and economic development
Community engagement
41%
87% 1
74%
Culture and recreation 411.1
Source: City of Tukwila, 2023; BERK 2023.
23.3
39.6
34.4
49.7
99.3
❑Mandated
• Not mandated
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Community and Economic Development Summary
Community and Economic Development includes programs to support City businesses, attract and grow new
businesses, manage development, and conduct long-range planning.
Changes in Levels of Service
■ Increase in permit review timelines due to high levels of permit activity and frozen staff positions.
■ Increase in service levels per Council direction.
Priorities and Unfunded Needs
■ Staff to support a higher level of environmental permitting.
■ Bringing service levels back up to pre -pandemic levels.
■ Investment in staff and succession planning to ensure the City can maintain service levels and retain
high quality staff.
Opportunities for Efficiencies
■ Reviewing and streamlining processes to allow staff to keep up with workload or address additional
tasks.
■ Potentially shifting positions to meet needs and dedicating time to cross -training to help staff meet
workload demands with existing resources.
Program Name
2024 Budget
2024 FTE Count
Program Mandate
Construction Permit Review & Inspection
$1,241,580
7.6 Y - Federal/State
Permit Intake, Issuance, Coordination
$689,749
4.9 Y - Federal/State
Code Enforcement
$518,412
3.2
Y - City Code
Administration
$462,304
2.5 Y - Federal/State
Long -Range & Comprehensive Planning
$382,649
1.6 Y - Federal/State
Current Planning
$ 375,975
2.0 Y - Federal/State
Rental Housing
$169,516
1.2
Y - City Code
Professional Development & Training
$157,785
1.0 Y - Ordinance/Resolution
Ordinance, Resolution and Code Development
$145,831
0.8 Y - Federal/State
Lodging Tax Oversight/Support
$72,096
0.2
Y - City Code
Mandatory Training
$49,918
0.2 Y - Federal/State
Business License Administration
$24,255
0.2
Y - City Code
City Policy Development
$19,166
0.1 Y - Federal/State
Community Investment
$1,966,626
7.8
N - Best Practice
Destination Development
$439,993
0.1 N - Best Practice
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Program Name
2024 Budget
2024 FTE Count
Program Mandate
Tourism Marketing
$399,965
0.3 N - Best Practice
Business & Development Attraction/Retention
$136,714
0.5 N - Best Practice
City Property Development & Management
$86,915
0.4 N - No Mandate
Total
$7,339,448
34.4
Community Engagement
Community Engagement includes programs to share information with the community, learn from community
members, manage public records requests, and support the City's boards, commissions, and advisory
bodies.
Cost Drivers
• Required participation in mandated training or adoption of new processes from updated state
legislation.
Priorities and Unfunded Needs
• Staff to support the increase in the number and complexity of public records requests.
• Training for existing staff to maintain certifications/credentials and keep current on best practices and
changes in regulations.
Program Name
2024 Budget
2024 FTE Count Program Mandate
Public Records Requests & Records Management
$1,192,875
8.8 Y - Federal/State
Boards/Commissions/Committees
$ 352,757
1.5
Y - City Code
Digital Records Center
$182,968
1.0 Y - Federal/State
Communications & Community Engagement
Total
$2,328,591
$4,057,191
12.0
23.3
N - Best Practice
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Culture and Recreation
Culture and Recreation includes recreation and wellness programs designed for community members of all
ages.
Cost Drivers
■ Minimum wage requirements that impact the cost of labor.
■ Increase in service levels per Council direction.
Changes in Levels of Service
■ Elimination of some recreation programs and services and reduction in the days and hours of facility
operations. Some reductions to recreation programs were restored with one-time funding from Federal
American Rescue Plan Act (ARPA) funds. To maintain these restored services, ongoing funding will need
to be identified.
Priorities and Unfunded Needs
■ Restoring service levels to pre -pandemic levels.
■ Resources dedicated to facility planning, maintenance, and operations.
■ Resources dedicated to grant administration to maximize potential grant revenue for the City.
• Promoting and administering citywide volunteer opportunities, programs, and initiatives.
• Addressing physical and operational inequities, including enhanced language access services, ADA
transition planning, and barrier elimination.
Opportunities for Efficiencies
■ Exploration of alternative service delivery methods, such as shared service delivery or joint efforts with
other organizations or neighboring cities.
Program Name
2024 Budget 2024 FTE Count Program Mandate
Administration
$749,782
4.8 Y - Federal/State
Professional Development & Training
$65,564
0.2 Y - Ordinance/Resolution
Mandatory Training
$9,158
0.1 Y - Federal/State
Youth & Teen Services & Programs
$869,555
2.0 N - No Mandate
Older Adult Services and Programs
$354,767
1.8 N - No Mandate
Wellness & Adult Services & Programs
$342,810
N - No Mandate
Facility Rentals
$147,477
0.5 N - No Mandate
Preschool Services and Program
$82,715
0.6 N - No Mandate
Total $2,621,827
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General Government
General Government programs include the central services that support all other departments, such as
financial processing and reporting, personnel management, and City policy management.
Cost Drivers
• Required participation in mandated training or adoption of new processes from updated state
legislation.
• Administration of City policies such as a new minimum wage ordinance.
Priorities and Unfunded Needs
• Investment in staff and succession planning to ensure the City can maintain service levels and retain
high quality staff.
• Resources dedicated to grant administration to maximize potential grant revenue for the City.
• Operational support for capital investments, such as staff to implement and maintain new technology.
Opportunities for Efficiencies
• Reviewing and streamlining processes to allow staff to keep up with workload or address additional
tasks.
• Potentially shifting positions to meet needs and dedicating time to cross -training to help staff meet
workload demands with existing resources.
Program Name
2024 Budget 2024 FTE Count Program Mandate
Administration
$3,942,031 11111 8.2 III Y - Federal/State
Risk Management
$861,572
0.1 Y - Federal/State
City Attorney Services
$525,987
0.0 Y - Federal/State
Sales and Other Taxes
$451,131
2.6 Y - Federal/State
Financial Reporting/Audit/Account
Administration
$369,822
1.0 Y - Federal/State
Payroll & Benefit Administration
$325,231
1.6 Y - Federal/State
Governmental & Regional Affairs
$313,495
1.5 Y - Federal/State
Accounts Payable
$288,772
1.7 Y - Federal/State
Legislative & Budget Oversight
$263,281
6.0 Y - Federal/State
Accts Receivable/Misc Billing/LID/etc.
$260,606
1.6 Y - Federal/State
Professional Development & Training
$192,947
0.9 Y - Ordinance/Resolution
City Policy Development
$178,826
0.7 Y - Federal/State
Business System Management/Support
$176,922
0.6 Y - Federal/State
Civil Service Recruiting & Hiring
$158,249
0.7 Y - Federal/State
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Program Name
2024 Budget 2024 FTE Count Program Mandate
Recruiting and Hiring
$157,801
0.8
Y - City Code
Equity
$125,110
0.6 Y - Ordinance/Resolution
Council Agenda/Meeting Functions
$122,517
0.8 Y - Federal/State
Grants Administration & Accounting
$115,065
0.7 Y - Federal/State
Business Application Services
$109,548
0.3 Y - Federal/State
Budget/CIP Development
$109,042
0.6 Y - Federal/State
Labor & Employee Relations
$96,626
0.4 Y - Federal/State
Financial Reporting/Analysis for
Departments
$93,069
0.5 Y - Federal/State
Benefit Plan Management
$91,047
0.4 Y - Federal/State
GIS (mapping)
$83,457
0.3
Y - City Code
Council Legislative Support
$71,842
0.3 Y - Federal/State
Ordinance, Resolution and Code
Development
$63,564
0.4 Y - Federal/State
Policy Development/Compliance
$57,578
0.3 Y - Federal/State
Classification & Compensation
$44,915
0.2 Y - Ordinance/Resolution
Investments/Cash Management/Reporting
$40,114
0.2 Y - Ordinance/Resolution
Debt Management
$19,236
0.1 Y - Federal/State
Long -Range Financial Planning Model
$13,699
0.1
Y - City Code
Capital Asset Accounting
$12,913
0.1 Y - Federal/State
Indirect Cost Allocation Admin
$6,560
0.0
Y - City Code
Mandatory Training
$2,718
0.0 Y - Federal/State
End -User Infrastructure Services
$524,987
0.6
N - Best Practice
Service Desk
$356,826
2.1 N - Best Practice
Essential Public Services
$220,251
0.4 N - Best Practice
Network Infrastructure Services
$196,988
0.5 N - Best Practice
Cyber Security/Business Continuity
$190,923
0.9
N - Best Practice
Mobility Services
$66,235
0.4 N - Best Practice
Data Analytics
$32,539
0.2 N - Best Practice
Emergency Application Services
$31,921
0.2 N - Best Practice
Total
$11,365,963
39.6
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Infrastructure Maintenance and Improvement
Cost Drivers
• Minimum wage requirements that impact the cost of labor.
• Inflationary increases in the cost of supplies, fuel, and contracts.
• Maintenance and operational costs for new facilities and newly acquired properties and lands.
• Increase in service levels per Council direction.
• Unforeseen events that occur after the budget is adopted such as weather events or damage to City -
owned property.
Changes in Levels of Service
• Some reductions such as maintenance of parks, trails, bus stops, and medians, were restored with one-
time funding from Federal American Rescue Plan Act (AR PA) funds. To maintain these restored services,
ongoing funding will need to be identified.
Priorities and Unfunded Needs
• Resources dedicated to facility planning, maintenance and operations.
• Resources dedicated to grant administration to maximize potential grant revenue for the City.
• Dedicated sources of funding for capital projects.
• Operational support for capital investments such as facility and park maintenance.
• Investments in risk management and workplace health and safety.
• Addressing physical and operational inequities, including enhanced language access services, ADA
transition planning, and barrier elimination.
Program Name
2024 Budget 2024 FTE Count Program Mandate
Administration
$1,147,263
5.4 Y - Federal/State
Environmental Stewardship
$880,566
4.9 Y - Ordinance/Resolution
Street Lighting
$679,648
2.5 Y - Ordinance/Resolution
Traffic Control Devices
$580,799
2.7 Y - Federal/State
Street Cleaning
$425,982
0.8 Y - Ordinance/Resolution
Video & Fiber
$151,611
0.9
Y - City Code
Snow & Ice Control
$143,321
1.0
Y - City Code
Grants Administration & Accounting
$140,834
0.8 Y - Federal/State
Budget/CIP Development
$132,729
0.7 Y - Federal/State
Sidewalks
$77,422
0.4
Y - City Code
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Program Name
2024 Budget 2024 FTE Count Program Mandate
Mandatory Training
$28,083
0.1 Y - Federal/State
Professional Development & Training
$23,383
0.1 Y - Ordinance/Resolution
Projects & Capital Improvement
Management
$40,329,210
9.1 N - Best Practice
Facility Management & Improvement $2,011,828
7.8
N - Best Practice
Parks Maintenance
$1,536,910
4.5
N - Best Practice
Pothole and Litter Control
$1,155,174
0.4 N - Best Practice
TIB Bus Stop/Streetscape
$315,789
2.2 N - Best Practice
Trail Maintenance
$274,310
0.6 N - Best Practice
Graffiti, vandalism & garbage
$223,223
1.5 N - Best Practice
Parks Facility Maintenance
$211,652
1.6 N - Best Practice
Streetscapes/Median Landscape
$92,400
0.8 N - Best Practice
Grounds Maintenance -City Facilities
$89,974
0.7
N - No Mandate
Park Restrooms Contract
$83,976
0.0
N - Best Practice
Minor Structural Repairs
Total
$51,448
$50,787,534
0.4 N - Best Practice
49.7
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Public Safety
Cost Drivers
• Inflationary increases in the cost of supplies, fuel, and contracts.
• Staff participation in mandated training or adoption of new processes from updated state legislation.
• Increase in service levels per Council direction.
• Unforeseen events that occur after the budget is adopted such as humanitarian crises.
• Growth in residential and daytime population may increase the number of incidents and the need for
police services.
Changes in Levels of Service
• The Police Department was fully funded in the 2023-2024 budget and the department was able to fill
previously frozen positions. The Police Department created new positions to focus on community
engagement and emergency management.
Program Name
2024 Budget 2024 FTE Count
Program Mandate
Police Patrol Services
$9,039,888
36.1
Y - City Code
Investigation of Felony and Juvenile
Crimes
$2,276,505
11.4
Y - City Code
Administration
$2,155,129
4.6 Y - Federal/State
Detention & Incarceration Services
$1,123,782
0.3 Y - Federal/State
Traffic Enforcement & Crash Investigation
Team
$913,639
4.5 Y - Federal/State
Community Risk Reduction
$723,800
0.0 Y - Ordinance/Resolution
Emergency Preparedness & Response
$640,853
1.1
Y - Federal/State
Mandatory Training
$551,850
2.3 Y - Federal/State
Public Defense Program
$448,184
0.1 Y - Federal/State
Professional Development & Training
$443,453
1.3 Y - Ordinance/Resolution
Case Management
$414,622
2.3 Y - Federal/State
Emergency Management Program
$412,537
2.0 Y - Federal/State
Civil Service Recruiting & Hiring
$402,963
1.3 Y - Federal/State
Risk Management
$ 365,664
0.0 Y - Federal/State
Evidence and Property Management
$332,542
2.2 Y - Federal/State
Professional Standards
$323,553
1.6 Y - Federal/State
Court Support Services
$209,797
1.4 Y - Federal/State
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Program Name
2024 Budget 2024 FTE Count
Program Mandate
Prosecution Services
$155,231
0.0 Y - Federal/State
Animal Control
$125,142
0.0
Y - City Code
Health & Safety
$96,912
0.3 Y - Federal/State
Court Interpreter Program
$73,864
0.3 Y - Federal/State
Public Safety Plan
$18,138
0.1
Y - City Code
Accounts Payable
$1,000
0.0 Y - Federal/State
Narcotics & Human Traffic Investigations
$1,346,478
6.3 N - Best Practice
Police Support Operations
$1,201,183
8.8 N - Best Practice
Community Policing Team
$973,842
4.9
N - Best Practice
School Zone Safety Cameras
$504,279
3.0 N - Best Practice
Critical Incident Response
$394,697
1.7 N - Best Practice
Community Investment
$162,297
1.0 N - Best Practice
Valley Independent Investigative Team
$98,805
0.5 N - Best Practice
Homeless Encampment Response
$46,618
0.2 N - Best Practice
Fire Services Contract
$14,202,720
0.0
Not Applicable
Fire Retiree Benefits
$309,500
0.0
Not Applicable
Total $40,489,467
99.3
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Appendix F: Service Level Adjustments
In response to the COVID-19 pandemic, the City reduced service levels and expenditures to align with
reduced revenues. The City restored some services using new revenue and some one-time funding in the
2023-2024 "bridge budget." A description of those service level adjustments is provided in Exhibit 50
below. The City's adopted 6-year Financial Plan assumes that services reduced in the pandemic will be
restored to pre -pandemic levels.
Exhibit 50: Summary of Tukwila's Recent Service Level Adjustments
Category
2021-2022 Adopted Budget
2023-2024 Adopted Budget
Community and Economic
Development
4. Longer response time to customer
inquiries (1-2 days to 4+ days) and
longer processing time for permits (4-
6 weeks to 8-1 2 weeks).
5. Less staff time spent on housing and
regional planning issues.
6. Restored funding for 2 positions with
Federal American Rescue Plan Act
(ARPA) funds.
Community Engagement
7. Elimination of the Community
Connections program.
8. Prohibitions on public gatherings
impeded the ability to adequately
gather public input on City initiatives.
9. The Community Connectors Program,
renamed the Tukwila Community
Leadership Initiative, has been
restored with ARPA funds.
Culture and Recreation
10. Reduction in the number of recreation 13
programs and services offered.
1 1. Reduction in funding for seasonal
staff.
1 2. Reductions in park maintenance
service levels: longer intervals
between mowing, tree trimming, and
weed removal; longer response times
for graffiti removal and emergency
repairs; and scheduled maintenance
items, like painting benches are
delayed or eliminated.
14
• Restored funding for part-time labor
and program supplies for teen and
youth programs with ARPA funds.
. Restored 2 part-time positions for
Parks with ARPA funds.
General Government
15. Reductions in travel and training
budgets.
16. Elimination of the SeeClickFix
contract, Commute Trip Reduction
incentives (including ORCA cards), and
Employee Recognition Program.
17. Reductions in City Attorney contract
hours.
19. The SeeClickFix contract was restored
with the use of Federal American
Rescue Plan Act (ARPA) funds, as well
as partial restoration of the Commute
Trip Reduction and Employee
Recognition programs.
20. The City Clerk's extra labor position
that works on public records requests
was restored.
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1517
Category 2021-2022 Adopted Budget
2023-2024 Adopted Budget
1 8. Longer response time to review
contracts and internal documents and
provide support on financial tasks.
21. The Human Resources Director position
in the previous biennium was changed
to a Deputy Director Admin. Services
& Chief People Officer.
22. Addition of 2 FTEs to support
implementation and management of
the new B&O tax program.
Infrastructure
Maintenance/
Improvement
23. Deferred maintenance on various City 27. Restored funding for 2 positions with
Federal American Rescue Plan Act
(ARPA) funds.
facilities.
24. Elimination of street sweeping and
sidewalk cleaning.
25. Deferred maintenance for traffic
signals and signal cable upgrades.
26. Rather than frontloading snow and ice
response material purchases, if a snow
and/or ice event occurs, staff will
purchase required materials and
maintain the roads. Such expenditures
will be covered via a budget
amendment later in the year
28. The City hired a contract Project
Manager to lead the Environmental
Impact Statement for the Allentown
Neighborhood Truck Reroute Project.
Public Safety
29. Reductions in Court staffing but ability
to maintain service levels due to
increased use of technology.
30. Reductions in Police staff time on
refugee/homeless outreach, drug and
human trafficking investigations, and
felony investigations.
31. Freezing of K9 Program.
32. Temporary re -assignment of School
Resource Officers.
33. Increase in Court overtime budget to
respond to new state requirements
and manage traffic filings associated
with red light cameras.
34. Police positions that were frozen were
fully funded through the B&O tax.
35. Police created new positions: a
Community Engagement Coordinator,
an Emergency Management
Coordinator, and a Public Disclosure
Records Specialist.
Sources: City of Tukwila 2021-2022 Adopted Budget and 2023-2024 Adopted Budget; BERK 2024.
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Appendix G: Adopted Financial Forecast
The City develops a six -year financial plan for the General Fund to see the impact of financial policies and
budget decisions. Revenues and expenditures are projected based on economic factors, past trends, and
known program or policy changes.
The City's adopted 6-year Financial Plan (Exhibit 51) (found within the City's budget document) funds
current programs and services, as well as those programs and services that were reduced during the
pandemic and have not yet been restored. The 6-year plan calls for restoring all remaining reductions from
the pandemic and using ongoing revenue to support these programs beginning in 2025.
The adopted Financial Plan includes the following revenue assumptions:
■ Use of about half of the property tax capacity created with annexation into the Puget Sound Regional
Fire Authority (PSRFA), starting in 2025.
■ Addition of the Business & Occupation Tax starting in 2024.
■ Reduction in some fire department revenues, as they will transfer to PSRFA, starting in 2025.
■ The Plan includes the following expenditure assumptions:
■ Reduction in contract expenditures with PSRFA, starting in 2025.
■ Funding of 8 FTE positions that were frozen in the 2023-2024 budget, starting in 2025.
■ No other increase in staffing.
■ Less than 2% annual increase in budgets for salaries and benefits.
■ No increase in budgets for operational expenses like supplies, technology, and professional
development.
■ Funding of planned debt service payments.
In the adopted 6-year Financial Plan, the General Fund meets minimum fund balance requirements. The
City's reserve policy, as revised in 2015, requires a General Fund minimum fund balance of 18% as
calculated on the prior year ongoing General Fund revenue. A new discretionary reserve was added to the
policy. Under this section, 10% of one-time revenue realized in the previous year will be set aside as a
one-time revenue reserve, to the extent doing so does not negatively impact compliance with the General
Fund minimum fund balance requirement.
Reserve funds are set aside to mitigate current and future risks, such as revenue shortfalls or unanticipated
expenditures. Examples include responding to weather events or unforeseen human services needs.
Since revenues will decrease due to the annexation into PSRFA, the reserve policy allows reserves to
decrease as well. In the adopted 6-year Financial Plan, the City chose to hold reserves at the current level
until such time as revenues rebound. This conservative approach is how the reserve policy was implemented
during the COVID-19 pandemic, and the recommendation from staff is to continue this approach in the
future.
:111 DRAFT 4/1 6/2024 City of Tukwila 1 Financial Sustainability Plan Technical Appendix
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Summary Impact
In the adopted 6-year Financial Plan, revenue growth is projected to be higher than expenditure growth, which
would provide for modest capacity for either additional expenditures or a reduction in revenues (detailed in
Exhibit 52). The projected variance between revenues and expenditures is approximately 1 % of total revenues.
Exhibit 51. Revenues and Expenditures in Adopted 6-year General Fund Financial Plan, 2023-2028
$80,000,000
$75,000,000
$70,000,000
$65,000,000
$60,000,000
$55,000,000
$50,000,000
$45,000,000
$40,000,000
Budget
Projected
2023 2024 2025 2026 2e27 2025
•Total Revenues -Total Expenditures
Source: City of Tukwila, 2023; BERK 2024.
Exhibit 52: Projected Revenues and Expenditures in Adopted 6-Year General Fund Financial Plan, 2025-2028
Projected Projected Projected Projected
2025 2026 2027 2028
Revenues $66,814,000 $68,258,000 $69,792,000 $71,551,000
Expenditures $66,331,000 $67,696,000 $69,009,000 $70,357,000
Variance $483,000 $562,000 $783,000 $1,194,000
Note: Amounts have been rounded to the nearest $7,000.
Source: City of Tukwila, 2023; BERK 2024.
1 2dl DRAFT 4/1 6/2024 City of Tukwila I Financial Sustainability Plan Technical Appendix
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58
COUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's review
Council review
4/22/24
LH
ITEM INFORMATION
ITEM NO.
4.B.
STAFF SPONSOR: LAUREL HUMPHREY
ORIGINAL AGENDA DATE: 4/22/24
AGENDA ITEM TITLE Ordinance relating to renter protections
CATEGORY ® Discussion
Mtg Date 4/22/24
❑ Motion
Mtg Date
❑ Resolution
Mtg Date
® Ordinance
Mtg Date 4/22/24
❑ Bid Award
Mtg Date
❑ Public Hearing
Mtg Date
❑ Other
Mtg Date
SPONSOR ® Council ❑ Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PW
SPONSOR'S
SUMMARY
The draft ordinance includes new renter protections in the areas of distribution of
information, deposit requirements, late fees, due dates, and social security numbers.
REVIEWED BY
❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ® Planning & Community Dev.
❑ LTAC ❑ Arts Comm. ❑ Parks Comm.
❑ Planning Comm.
DATE: 11/9/23 COMMIf`l'EE CHAIR: HOUGARDY
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMITTEE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
AMOUNT BUDGETED
APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
4/22/24
MTG. DATE
ATTACHMENTS
4/22/24
Informational Memo
Draft ordinance
Comment letters
May 2023 Transit Riders Union Policy Proposals
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121
122
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City of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: Tukwila City Council
FROM: Laurel Humphrey, Legislative Analyst
Kari L. Sand, City Attorney
Nick Morton, Assistant City Attorney
DATE: April 16, 2024
SUBJECT: Renter Protection Policy Proposals
ISSUE
Draft ordinance regarding enhanced renter protections.
BACKGROUND
In May 2023, the Transit Riders Union (TRU) approached the City Council about adding
additional regulations/protections for tenants in Tukwila.
The Planning and Community Development (PCD) Committee discussed the proposals at its
May 1, 2023 meeting and requested that the City Attorney prepare a preliminary opinion on
legal risk prior to any legislation being drafted. The Committee discussed the legal analysis at
its August 7, 2024 meeting and subsequently directed staff to prepare an ordinance including
specific components that posed limited risk.
The Committee further discussed the draft ordinance at its November 7, 2024 meeting with
revised recommendations based upon a pending legal challenge against the City of Kenmore.
The draft ordinance no longer included protections associated with Rent Increase Notices or
Just Cause Eviction. The Committee directed staff to conduct public outreach on the draft,
which was done via inclusion in the renewal notices sent to landlords enrolled in the
Residential Rental Business License and Inspection Program as well as an information page
on the city website, a newsfeed post, and a request for comment in the e-Hazelnut.
In March 2024, TRU representatives made public comment and distributed a letter outlining a
"minimum set of policies that would be acceptable," included in the public comment
attached to this memo.
Ordinance Draft
The draft ordinance as recommended by last year's PCD Committee in November 2023
includes the following components:
• Distribution of Information - the City will prepare written summaries of legal
protections and landlords would be required to provide them to prospective renters,
to new tenants, and to existing tenant.
• Deposit Requirements - upfront costs over and above the 1st month's rent are capped
at a total of 1-month rent, with a right to pay in installments over 6 months, or 2
months for leases shorter than 6 months.
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123
INFORMATIONAL MEMO
Page 2
• Late Fees - Fees for late payment of rent shall not exceed 1.5% of monthly rent.
• Rent Due Dates - Tenants may adjust rent due date if on a fixed income.
• Social Security Numbers - Landlords may request but not require a social security
number for purpose of screening prospective tenants.
City Attorney Analysis
The City Attorney has provided legal analysis of the March 2024 TRU requests using a traffic
light metaphor:
• GREEN: Policies that carry a low legal risk and have been enacted by cities of similar
size to Tukwila
• YELLOW: Policies that carry a medium level of legal risk and/or have not been enacted
by similar cities
• RED: Policies that carry a high legal risk, regardless of enactment by other WA
jurisdictions
1. Real lire 1 Rn rlavc' nntire fnr rent inrreacec of R nerrent nr more
o State law requires 60 days' notice of rent increases.
o Seattle, Auburn, Kenmore, Redmond, Kirkland, Burien, and SeaTac have notice
periods longer than 60 days.
2. Tenant can terminate lease and move with 20 days' notice if rent increase is 3 percent
or more
o Has not been enacted by any city highlighted by TRU, thus the legality of this
proposal is untested.
3. Tenant is entitled to landlord -paid relocation assistance for large rent increases
o TRU's original proposal: Relocation assistance equal to three months' rent for
housing cost increases of 10% or more. Enforcement through private right of
action
■ This goes beyond most protections for tenants and would perhaps
unfairly burden landlords, potentially leading to legal challenges.
o Tukwila currently requires relocation assistance under chapter 8.46 TMC when
a rental unit fails inspection to such a degree that the conditions endanger life
safety, and failure to obtain a Certificate of Compliance will result in the non -
issuance or revocation of the rental business license for that unit.
o State law only requires relocation assistance for low-income tenants under
specific circumstances and limits assistance to $2,000 or less with the owner
only responsible for one-half of the assistance. See RCW 59.18.440.
o Seattle is the only city that has adopted a provision of this kind, and only for
tenants whose income is below 50% of the median (there are numerous other
requirements and conditions as well). No cities similar to Tukwila have a
comparable provision.
124
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INFORMATIONAL MEMO
Page 3
4. Prohibit rent hikes in defective, unsafe or unlivab' 'lousing
o Burien and SeaTac have passed versions of this protection.
o Caution - Prohibiting all rent increases where the dwelling is in violation of any
element of RCW 59.18.060 is quite broad, as this RCW section lists all landlord
duties (including things like maintaining a duplicate key to each unit). A
narrower prohibition on rent increases could avoid disputes over the more
minor requirements in RCW 59.18.060.
o Tukwila currently advertises the availability of "courtesy inspections" for
tenants concerned about their living conditions on the rental licensing
webpage and in the Hazelnut newsletter, as shown below.
i
Renting in Tukwila
All rental units in Tukwila are required to be
licensed and inspected. To check the status of
your rental unit or unit that you are interested
in renting; or to request a courtesy rental
inspection, please contact the Rental Housing
Program at RentalHousing@TukwilawA-gov or
206-431-3674.
Ngrldi thud nhb d Aakwila
Tatcacicdim vichothui Tukwila deu phai
duec cap phep va kiem tra. De kiem tra tinh
:rang cua don vi cho thue hoac don vi ma ban
muon thue; hoac de yau cau kiem tra nha cho
thue lich su, vui long lien he vai Chuang trinh Nha
cho thue tai RentalHousing@TukwilawA.gov
hoac 206.431.3674.
Kiraystayaasha Tukwila
Dhammaan guryaha kirada ah ee Tukwila waxa
looga baahan yahay inayhaystaan shati iyo
kormeer. Si aad u hubisoxaalada gurigaaga
ijaarka ama guriga aad xiisaynayso inaad
kiraysato; ama si aad u codsato kormeer kim ao
xushmad leh, kala xidhiidh Barnaamijka Guryaha
Kirada ee RentalHousing@TukwilaWA.gov ama
206431.3674.
Aiquilaren Tukwila
Todas las unidades de alquiler en Tukwila deben
toner licencia e inspection. Para consultar
el estado de su unidad de alquiler o unidad
que le interesa alquilar; o para solicitar una
inspeccion de alquiler de cortesia, comuniquese
con el Programa de viviendas de alquileren
RentalHausing@TukwilaWA.gov o 206-431-3674.
5. Cap move -in costs additional to first month's rent at no more than one month's rent,
and allow payment in installments
o The draft ordinance does this.
6. Cap —44- delivery fee-
() Auburn and Burien cap late fees at $10.
o The draft ordinance does include a different cap on late fees (1.5% of rent).
■ Example: A rental until with rent of $2,000 per month would have late
fees capped at $30.
7. Strengthen just cause protections, including closing the "lease loophole"
o The state enacted a just case law in 2021, requiring landlords to specify a
reason for refusing to continue a residential tenancy, subject to certain
limitations, and allowing cities to impose more expansive just cause
provisions, provided they do not prohibit landlords from init.
I• I •I -
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125
INFORMATIONAL MEMO
Page 4
unlawful detainer actions unless specific just cause requirements are met. RCW
59.18.650.
o Lease loophole - RCW 59.18.650 does not apply to nonrenewal of a year -long
lease, meaning just cause is not needed to non -renew such leases. TRU refers
to this as the "lease loophole." Some jurisdictions have closed this "loophole"
by treating nonrenewal of leases the same as an eviction, meaning just cause is
required for such nonrenewal.
■ Seattle, Auburn, Federal Way, Kenmore have closed the lease loophole.
■ Burien and SeaTac have enacted just cause protections stronger than
state law, but they have retained the lease loophole.
■ Closing the lease loophole will significantly restrict landlords' ability to
choose not to renew a tenant's lease upon expiration of the lease.
8. Social security number cannot be required for rental applications
o The draft ordinance does this.
9. Renters on fixed income can change their rent due date
o The draft ordinance does this.
10. Ban unfair, deceptive and abusive practices
o Kenmore enacted a ban on "deceptive acts or practices" and "unfair or abuse
acts or practices." KMC 8.55.078. This provision, among others, was challenged
as unconstitutional in a lawsuit against Kenmore, which is currently pending in
King County Superior Court.
o Concerns about tenants being misled regarding their rights is addressed in the
draft ordinance. TMC 88.47.030 requires landlords to provide tenants
information regarding their tenants' rights, rather than prohibiting deceptive
speech.
RECOMMENDATION
Staff is seeking Council discussion and direction on the proposed ordinance.
ATTACHMENTS
Exhibit 1: Draft Ordinance
Exhibit 2: Comment Letters
Exhibit 3: Original TRU Policy Proposals May 2023
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, REPEALING ORDINANCE NO.
2526, AS CODIFIED AT TUKWILA MUNICIPAL CODE
(TMC) CHAPTER 8.47; REENACTING TMC CHAPTER
8.47, "RENTAL HOUSING TENANT PROTECTIONS;"
PROVIDING FOR SEVERABILITY; AND ESTABLISHING
AN EFFECTIVE DATE.
WHEREAS, over the past several years, average rents in South King County have
increased, and vacancies for affordable rental housing are at low levels, making it difficult
for tenants, especially those with low incomes, to locate affordable rental housing; and
WHEREAS, the King County Regional Affordable Housing Task Force issued its Final
Report and Recommendations for King County, WA, December 2018 (rev. October 2019)
(hereafter referred to as "Regional Affordable Housing Task Force Final Report"), which
identifies that renting rather than owning a home increases the chances of being severely
cost burdened, and recognizes an existing affordable housing crisis in King County; and
WHEREAS, the Regional Affordable Housing Task Force Final Report includes a
regional plan with goals, strategies and a Five -Year Action Plan to address the affordable
housing crisis, and Goal 4 of the action plan is to "[p]reserve access to affordable homes for
renters by supporting tenant protections to increase housing stability and reduce risk of
homelessness"; and
WHEREAS, the King County Countywide Planning Policies, developed pursuant to the
Washington State Growth Management Act, suggest that local jurisdictions "[a]dopt and
implement policies that protect housing stability for renter households; expand protections
and supports for moderate-, low-, very low-, and extremely low-income renters and renters
with disabilities"; and
WHEREAS, the Tukwila community includes a relatively high percentage of renters
compared to the Washington State average, with the most recent census data indicating
that just 42.7% of housing units are owner -occupied, which is significantly lower than the
statewide average of 63.6%; and
2024 Legislation: Rental Housing Tenant Protections
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127
WHEREAS, enhanced tenant protections, in addition to those in the Residential
Landlord -Tenant Act (chapter 59.18 RCW), are in the best interests of the residents of
Tukwila and will promote the public health, safety, and welfare of the City; and
WHEREAS, the City Council is committed to maintaining vibrant and diverse
neighborhoods while balancing the needs of landlords and tenants; and
WHEREAS, to ensure adequate time to educate landlords about the requirements and
responsibilities imposed on them as a result of this ordinance, and to give landlords time to
update their administrative processes to achieve compliance with this ordinance, the
effective date of this ordinance shall be delayed to January 1, 2024.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Repealer. Ordinance No. 2526 is hereby repealed in its entirety, thereby
eliminating Tukwila Municipal Code (TMC) Chapter 8.47, "Fair Housing Regulations."
Section 2. TMC Chapter 8.47 Reenacted. TMC Chapter 8.47 is hereby reenacted to
read as follows:
CHAPTER 8.47
RENTAL HOUSING TENANT PROTECTIONS
Sections:
8.47.010 Definitions
8.47.020 Applicability
8.47.030 Distribution of information required
8.47.040 Deposit requirements and installment payments permitted
8.47.050 Late fees
8.47.060 Due date adjustments
8.47.070 Social security numbers not required
8.47.080 Violations and penalties
Section 3. Regulations Established. TMC Section 8.47.010 is hereby established to
read as follows:
8.47.010 Definitions
The definitions of this section apply through this chapter unless the context clearly
requires otherwise. The definitions of RCW 59.18.030 under the Residential Landlord -
Tenant Act (RLTA), as now in effect or as may be subsequently amended, also apply to this
chapter unless otherwise defined in this section.
"Dwelling" or "dwelling unit" has the same meaning as RCW 59.18.030(10), as now in
effect or as may be subsequently amended, and means a structure or that part of a structure
which is used as a home, residence, or sleeping place by one person or by two or more
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persons maintaining a common household, including but not limited to single-family
residences and units of multiplexes, apartment buildings, and mobile homes.
"Landlord" has the same meaning as RCW 59.18.030(16), as now in effect or as may
be subsequently amended, excluding the living arrangements identified in RCW 59.18.040,
and means the owner, lessor, or sublessor of the dwelling unit or the property of which it is
a part, and further means any person designated as representative of the owner, lessor, or
sublessor, including, but not limited to, an agent, a resident manager, or a designated
property manager.
"Rent" has the same meaning as RCW 59.18.030(29), as now in effect or as may be
subsequently amended, and means recurring and periodic charges identified in the rental
agreement for the use and occupancy of the premises, which may include charges for
utilities. Except as provided in RCW 59.18.283(3), rent does not include nonrecurring
charges for costs incurred due to late payment, damages, deposits, legal costs, or other
fees, including attorneys' fees.
"Rental Agreement" or "lease" has the same meaning as RCW 59.18.030(30), as now
in effect or as may be subsequently amended, and means all agreements which establish
or modify the terms, conditions, rules, regulations, or any other provisions concerning the
use and occupancy of a dwelling unit.
"Security Deposit" means a refundable payment or deposit of money, however
designated, owed by the tenant to the landlord at the commencement of a rental agreement
to secure performance of a rental agreement or any part of a rental agreement.
"Subsidized Housing" has the same meaning as RCW 59.18.030(33), as now in effect
or as may be subsequently amended, and refers to rental housing for very low-income or
low-income households that is a dwelling unit operated directly by a public housing authority
or its affiliate, or that is insured, financed, or assisted in whole or in part through one of the
following sources: (a) a federal program or state housing program administered by the
Department of Commerce or the Washington State Housing_Finance Commission; (b) a
federal housing program administered by a city or county government; (c) an affordable
housing levy authorized under RCW 84.52.105; or (d) the surcharges authorized in RCW
36.22.250 and any of the surcharges authorized in chapter 43.185C RCW.
"Tenant" has the same meaning as RCW 59.18.030(34), as now in effect or as may be
subsequently amended, and excluding the living arrangements identified in RCW 59.18.040,
and RCW 59.20.030(24), as now in effect or as may be subsequently amended, and means
any person who is entitled to occupy a dwelling unit primarily for living or dwelling purposes
under a rental agreement, and RCW 59.20.030 defines "tenant" as any person, except a
transient, who rents a mobile home lot.
Section 4. Regulations Established. TMC Section 8.47.020 is hereby established to
read as follows:
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129
8.47.020 Applicability
The provisions of this chapter apply to tenancies governed by Chapter 59.18 RCW
(Residential Landlord Tenant Act) and Chapter 59.20 RCW (Manufactured/Mobile Home
Landlord -Tenant Act) and are in addition to the provisions provided in said chapters of the
RCW. The provisions of this chapter shall not apply to rental agreements between an owner
and tenant where the owner shares the dwelling unit as a primary residence with the tenant.
Section 5. Regulations Established. TMC Section 8.47.030 is hereby established to
read as follows:
8.47.030 Distribution of information required.
A. The City shall prepare, and update as necessary, summaries of this chapter, the
Nuisance Code (TMC Section 8.28.020), the Washington State Residential Landlord Tenant
Act (Chapter 59.18 RCW), Forcible Entry and Unlawful Detainer (Chapter 59.12 RCW), and
Fair Housing laws, describing the respective rights, obligations, and remedies of landlords
and tenants, including information about legal resources available to tenants.
B. A landlord shall provide a copy of the summaries prepared by the City as described
in subsection A of this section to any tenant or prospective tenant when a rental agreement
is offered, whether the agreement is for a new or renewal agreement.
C. Where there is an oral rental agreement, the landlord shall give the tenant copies
of the summaries as described in subsection A of this section, either before entering into the
oral rental agreement or as soon as reasonably possible after entering into the oral rental
agreement.
D. For existing tenants, landlords shall, within thirty (30) days after the summaries are
made available by the City, distribute copies of the summaries to existing tenants.
E. The initial distribution of information to tenants must be in written form and landlords
shall obtain the tenant's signature documenting tenant's receipt of such information. If a
tenant refuses to provide a signature documenting the tenant's receipt of the information,
the landlord may draft a declaration stating when and where the landlord provided tenant
with the required information. After the initial distribution of the summaries to tenants, a
landlord shall provide existing tenants with the most current summaries prepared by the
City, which summaries may be distributed in electronic form, unless a tenant specifically
requests written summaries in hard copy form.
F. The packet prepared by the City includes informational documents only, and
nothing in the summaries therein shall be construed as binding on or affecting any judicial
determination of the rights and responsibilities of landlords and tenants, nor is the City liable
for any misstatement or misinterpretation of the applicable laws.
Section 6. Regulations Established. TMC Section 8.47.040 is hereby established to
read as follows:
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8.47.040 Deposit requirements and installment payments permitted.
A. The sum of any security deposits and nonrefundable move -in fees charged by a
landlord before a tenant takes possession of a dwelling unit shall not exceed an amount
equal to one month's rent, except in subsidized housing where the amount of rent is set
based on the income of the tenant. The exception for subsidized housing shall not include
tenancies regulated under Section 8 of the Housing Act of 1937, 42 U.S.C. Section 1437f,
commonly known as the "choice voucher program."
B. Tenants entering rental agreements with terms lasting six or more months may
choose to pay their move -in fees and security deposits in six equal monthly installments
over the first six months occupying the dwelling unit.
C. Tenants entering rental agreements with terms lasting fewer than six months or
month -to -month rental agreements may choose to pay move -in fees and security deposits
in two equal monthly installments over the first two months occupying the dwelling unit.
D. Landlords may not impose any fee, charge any interest, or otherwise impose a cost
on a tenant because a tenant elects to pay in installments.
E. Installment payments are due at the same time rent is due.
F. All installment schedules must be in writing, signed by both parties.
G. Paying in installments does not apply to a landlord obtaining a tenant screening
report, which report cost paid by the tenant shall be limited to the standard and actual cost
of the tenant screening report.
H. No security deposit may be collected by a landlord unless the rental agreement is
in writing and a written checklist or statement specifically describing the condition and
cleanliness of, or existing damages to, the premises and furnishings, including, but not
limited to, walls, floors, countertops, carpets, drapes, furniture, and appliances, is provided
by the landlord to the tenant at the beginning of the tenancy. The checklist or statement shall
be signed and dated by the landlord and the tenant, and the tenant shall be provided with a
copy of the signed checklist or statement.
I. A landlord must place any required security deposit in a trust account and provide
a written receipt and notice of the name, address, and location of the depository and any
subsequent change thereof to the tenant, in compliance with the requirements of RCW
59.18.270.
J. Nothing in this section prohibits a landlord from bringing an action against a tenant
to recover sums exceeding the amount of the tenant's security deposit for damage to the
dwelling unit for which the tenant is responsible. The landlord may seek attorney's fees for
such an action as authorized by Chapter 59.18 RCW
Section 7. Regulations Established. TMC Section 8.47.050 is hereby established to
read as follows:
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131
8.47.050 Late fees
A. Any fees for late payment of rent shall not exceed 1.5% of monthly rent per month.
No other fees may be charged for late payment of rent. Any rental agreement provision
providing for such fees shall be deemed void with respect to any provision prohibited by this
subsection. This subsection shall not apply to or limit decisions, orders, and rulings of courts
of competent jurisdiction.
B. Any notice to pay or vacate served under RCW 59.12.030(3) shall include within
the notice in at least sixteen (16) point bold font for the following information:
"You have 14 days to pay the rent required by this notice. After 14 days, you may
pay the rent but will have to include a late fee totaling at most 1.5% of monthly rent for each
month of rent owed. If the landlord has started a court case to evict you and the case is filed
in court, you will need to pay court costs as well before the hearing date to avoid eviction."
Section 8. Regulations Established. TMC Section 8.47.060 is hereby established to
read as follows:
8.47.060 Due date adjustments
All rental agreements executed after the adoption of this ordinance shall include, or be
deemed to include, a provision allowing tenants to adjust the due date of rent payments if
the tenant has a regular monthly source of governmental assistance, or fixed income source
(e.q., Social Security) that the tenant receives on a date of the month that is incongruent
with paying rent on the date otherwise specified in the rental agreement. A landlord shall not
refuse to rent to a prospective tenant or terminate a lease based on a request for a due date
adjustment.
Section 9. Regulations Established. TMC Section 8.47.070 is hereby established to
read as follows:
8.47.070 Social Security numbers not required
A landlord may request but shall not require a social security number for the purposes
of screening a prospective tenant as allowed under RCW 59.18.257. A landlord shall not
refuse to enter into a rental agreement with a prospective tenant or prospective occupant
because the prospective tenant or prospective occupant does not agree to provide a social
security number. Alternative proof of financial eligibility such as portable screening reports
or other proof of income must be accepted, where available, if offered by the tenant or
prospective tenant.
Section 10. Regulations Established. TMC Section 8.47.080 is hereby established
to read as follows:
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8.47.090 Violations and penalties
A landlord found in violation of any of the provisions in this chapter, unless otherwise
provided in this chapter, shall be liable to such a tenant in a private right of action for the
greater of double the tenant's economic and noneconomic damages, or three times the
monthly rent of the dwelling unit at issue, and reasonable litigation costs and attorneys' fees.
Section 11. 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 12. 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 13. 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 five days
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
2024 Legislation: Rental Housing Tenant Protections
Version: 04/16/2024
Staff: L. Humphrey
Page 7 of 7
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From: Lori Solberg
To: Laurel Humphrey
Subject: FW: Home sold/Input for City Council
Date: Friday, December 15, 2023 9:18:45 AM
Hi Laurel,
Are you the correct person to forward these to?
Thanks,
Lori
From: Carly <carlywillis253@gmail.com>
Sent: Thursday, December 14, 2023 10:07 PM
To: Rental Housing <RentalHousing@TukwilaWA.gov>
Subject: Home sold/Input for City Council
Hi there,
We sold our home located at 13706 34th Ave S, Tukwila 98168.
We got out of King county due to unreasonable restrictions on rentals and we were screwed over
too many times by renters who damaged our property, didn't pay rent for months on end, or both. I
highly recommend the City Council stops protecting renters and starts protecting owners of
properties. Once all the property owners who were offering reasonably priced rentals sell their
homes, there will be no more rentals or the competition for the few that remain will be so fierce
that no one will be able to afford renting anymore. This is what is happening. Please pass this along
to City Council. Good luck.
Carly Willis
Owner, Blue Sage Properties & Antique Marketplace
(253) 691-7645 I BlueSagePropertiesLLC.com
carlywillis253@gmail.com 11809 Howard Road, Suite B
Auburn, WA 98002
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135
From: Clearbrook Manager
To: CitvCouncil
Cc: Cathy Reiner; Cliff Godwin
Subject: Proposed Rental Housing laws
Date: Wednesday, December 20, 2023 11:22:01 AM
As 40-year landlords of 1 property in Tukwila and a couple in Burien
and Seattle, we URGE you to be careful that any new laws enacted take
the small landlords into consideration.
It's (ready very difficult to be a landlord, and if we can't collect a
security deposit AND last -month's rent, we have little security when a
tenant doesn't pay rent, but we still have mortgages and expenses to pay.
Capping late fees means little incentive for a renter to pay on time. And
we still have mortgages and expenses to pay on time.
Removing some screening assistance such as social security numbers
means we don't really know WHO the tenant is, nor what their background
is.
Evictions are very difficult on landlords as well as tenants, and the
courts are so crowded that it can take many months. Therefore we want
good tenants, with good records, so we never have to evict.
We want to be fair and good landlords, but when a city (such as Burien
or Seattle) makes it excessively hard on the landlords, we can't stay in
business.
If small landlords have to leave the system, the city makes FEWER
rental units available, when more are needed.
Thank you
Cathy Godwin
Property Manager
(206) 228-3143
clearbrookmanagerCa_� yahoo. corn
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Greg & Vanessa Zaputil
15171 52nd Ave. S. #5
Tukwila, WA 98188
1/24/24
Lori Solberg
Rental Housing Program Administrator
City of Tukwila Dept. of Community Development
6200 Southcenter Blvd.
Tukwila, WA 98188
RE: Draft Rental Protections Ordinance
As a small landlord who has provided housing in Tukwila since 1979 in the form of four
townhomes, we wish to object to the proposed draft rental protection ordinance. We are (and
have always been) resident landlords who have weathered the ups and downs of markets, treating
our tenants with respect and compassion while choosing to remain in Tukwila to provide housing
to our community. As active Tukwila Community members, we are very familiar with the
challenges tenants in our area face and the few bad actors that unfortunately stereotype all
landlords unfairly as slumlords. Costs for landlords have significantly increased over the past
several years with wage increases, cost of living increases across all sectors, and property tax
increases (both due to voter -approved initiatives and burden shifting through exempting
properties from taxes).
While we appreciate the barriers that our community faces regarding access to housing, we
believe a regulatory approach such as this will create the opposite effect- less clarity, less
understanding, and less affordable housing. This approach creates confusion between applicable
laws. In a community where communication barriers have been consistently identified; we
should be making things easier, not more complicated. Many barriers traditionally have stemmed
from misunderstanding, or not even being aware of the WA Landlord Tenant Act. This Act is
comprehensive, and legislators have consistently updated it, often annually, primarily increasing
tenant protections.
Much of what this new Tukwila Ordinance brings forward is already covered in the WA
Landlord Tenant Act, while further creating an administrative burden for the City. Ensuring the
ordinance remains relevant and in compliance, as new state legislation is enacted or repealed will
require constant and onerous oversight for the City without accomplishing stated goals.
Additionally, this will create yet another administrative burden, especially on small landlords.
The goal, and resources, should be first and foremost educational for both the tenants and the
landlords not authoritative and punitive.
Some specific comments we have regarding sections of the draft will additionally support and
highlight why we object to the regulatory approach the City is proposing.
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137
8.47.030 Distribution of information required.
D) The requirement to distribute copies of new summaries to Tenants "within 30 days" after
being made available by the City lacks clarity. How is it made available? When specifically does
the clock start? How is the City ensuring equitable distribution to all landlords, including those
with language barriers?
E) Electronic communication is inconsistent with WA Landlord Tenant Act provisions- it is
unclear if tenants receive notices. Requiring Tenants to specifically request a hard copy, if
desired, in a community with language barriers is inconsistent with equitable access.
Furthermore, if landlords inadvertently change communication methods, or are on vacation,
providing copies, within 30 days becomes a barrier and subject to punishment.
8.47.040 Deposit requirements and installment payments permitted.
A) With inflationary costs escalating due to increased minimum wages and cost of living, it has
forced landlords to increase deposits and fees simply to break even. For example, Non -
Refundable fees for redecorating costs such as carpet cleaning, and house cleaners have had to
increase. Similarly, Security Deposits to secure the property for damage have had to increase due
to significant rises in construction costs such as drywall repair, plumbers, supply chain materials,
etc. Landlords need to have this provision to safeguard their investment. If limitations on
deposits are imposed, rents would need to increase to cover any restoration costs not covered by
tenants who have been granted a low, insufficient Security Deposit, and are unable to pay on
move -out. Litigating tenants who cannot afford to pay on move -out is a costly and impractical
solution, only further escalating the landlord's costs and consequently less affordable rent.
B, C, D, E, F, G) Installments are already provided for in RCW 59.18.610. Providing contrary
language promotes confusion.
H) Checklists are already provided for in RCW 59.18.260. Providing additional language
promotes confusion and burden in cross-referencing for both the tenant and the landlord.
I) Trust accounts for deposits are already provided for in RCW 59.18.270. Providing additional
language promotes confusion and burden in cross-referencing for both the tenant and the
landlord.
8.47.050 Late fees
A) Capping the rental late fee provides no incentive for the Tenant to pay on time or move out.
This cap would severely limit the ability of the landlord to pay their bills or in the case of
complete failure to pay, to regain possession of their property (investment) without a costly legal
procedure. For example, a 1.5% cap on an average Tukwila rental (according to rental.com) of
$1,890 would equate to $28.35/month. Capping late fees will have the opposite of the City's
desired effect by creating an unattractive environment for quality landlords if they cannot protect
their investment/retirement.
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B) 14-day notices are already provided for in RCW 59.18.057. Adding this would require
duplicative and confusing notices.
8.47.060 Due date adjustments
Landlords have payments with due dates (Mortgage, Property Tax, City of Tukwila Rental
License Fees)- requiring flexible due dates will impact the landlord's ability to pay their bills.
There is already a 5-day grace period built into RCW 59.18.057.
8.47.070 Social Security numbers not required
Landlords must be able to require as permitted by RCW 59.18.257 a screening process whereby
tenants provide required information to a tenant screening company (including a Social Security
number) to protect their properties and the existing tenants. Credit/Background screening is a
reliable and established risk assessment indicator. Furthermore, requiring a "portable" credit
screening report to be accepted unfairly targets small landlords who do not have the resources to
verify the credibility of such reports. Allowing the landlord to administer their own uniform and
identical screening methods across all tenants is equitable and eliminates the potential for
language and content barriers on both sides.
8.47.090 Violations and penalties
These penalties are unduly and unnecessarily harsh. Considering the City of Tukwila's known
language and communication barriers this unfairly targets small landlords who may not have the
resources or the knowledge to discern the differences and nuances between the WA Landlord
Tenant Act and the City of Tukwila Regulations. To not have an escalating structure that
includes warnings and education before punitive damages is counter to an inclusive City culture.
This additional layer of regulations will unnecessarily create the unintended consequence of less
affordable housing. Small landlords will be challenged to comply and rather opt to sell at higher
market values and push housing costs higher.
Rather than create another layer of government regulations and administrative burden, we
advocate for the City to address the core issue in our community which are barriers to
understanding Tenant rights as set out in the current WA State Landlord Tenant Act, and
landlords not fully understanding that act.
Assisting tenants would be best accomplished through:
• Tasking the Human Services Dept. with a better and more focused effort at connecting
Tenants with resources and advocates.
• Providing information to Tenants in means and formats that are recognized to them is
also a best practice.
• Providing links to rental information on the main City webpage so they are easily found
and navigable.
Efforts must be made to communicate and connect landlords with information to allow them to
succeed as well. This includes:
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139
• Providing and implementing improved and verifiable communication practices to
distribute current City regulations such as the rental licenses/inspections as well as state
laws and information.
• Including an FAQ on the City Website for both Tenants and Landlords that explains the
WA Landlord Tenant Act in plain English.
Punishing and unduly burdening landlords (especially smaller ones who provide affordable,
quality housing) will have the opposite effect and decrease and diminish affordable housing.
Moreover, the fiscal capacity of landlords to reinvest, maintain, or improve housing will also
decrease.
Regards,
Greg & Vanessa Zaputil
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RHAWA
Rental Housing Association of WA
Proposed Tukwila Landlord/Tenant Draft Ordinance
The Rental Housing Association of Washington (RHAWA) represents small mom and pop rental housing providers all over
the state. Our average member owns about two units. Small housing providers supply much of the affordable housing
available in their communities. They live in the communities they serve.
Many of the new more restrictive policies across the state have caused increasing anxiety that one bad experience could
leave them in financial ruin. According to a Seattle Auditor's Report from December 2023, Seattle lost nearly 7,000 single
family and small multi -family housing units from 2016 to 2022.
RHAWA members house more than 2,200 residents and/or families in the City of Tukwila.
8.47.050 Late Fees
The proposed late fee cap of 1.5% would impose great economic hardship on rental housing providers. If a housing
provider is late on their mortgage payment, the cost to them is much higher than 1.5%. No one wants to collect late fees,
but they need to be high enough to encourage residents pay rent on time. According to Zillow, the average rent in Tukwila
is $1,795.00 which would put the late fee of 1.5% at $26.92 which, for comparison, is less than the $30 Shut -Off Notice
Fee that Tukwila Public Utilities charges to shut off water after non-payment of utilities or the $50 fee to turn the water
back on. We would hope to see something closer to 10% if a cap is going to be instituted.
8.47.070 Social Security Numbers Not Required
Restricting a housing provider's ability to screen a possible tenant using their social security number limits the
information a housing provider can learn about their prospective resident when performing a background check. This
lack of verifiable screening information could jeopardize the safety and well-being of current residents and the housing
provider. It is crucial that prospective tenants are properly screened to ensure they will not pose a threat to the property
or other residents. If a tenant occupies their residence and then becomes a problem to others in the future; evictions
have been taking up to a year in King County even to remove problem residents from their communities. During that legal
process, their neighbors still need to navigate living in close proximity to the problem resident. If a potential resident is
properly screened ahead of time, these types of issues are less likely to occur. As such, if passed, the ordinance should
include language that a tenant may be denied if their identity cannot be confirmed in the absence of supplying a Social
Security Number.
Policymaker Resource
It is essential to include the voices of local rental housing providers to create policy that creates and preserves affordable
rental housing for Tukwila residents and families. These proposed policies would put an increased financial burden on
housing providers, severely restricting their flexibility, and leading to a more exponential rise in rents across Tukwila.
RHAWA remains available and willing to discuss alternative policies that will have a positive impact in the Tukwila rental
housing market.
Corey Hjalseth I External Affairs Manager
Direct (206) 905-0603 I chjalseth@RHAwa.org
Rental Housing Association of Washington I T (206) 283-0816 I RHAwa.org
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March 18, 2024
Dear Tukwila City Councilmembers,
Last spring, Tukwila renters and community organizations in the Stay Housed Stay
Healthy coalition came to you urging action to address rising rents, housing insecurity,
and habitability issues in Tukwila's rental housing market. We proposed a set of renter
protection policies, most of which have already been implemented, successfully, in other
nearby jurisdictions.
We appreciate the work that's been done so far to review our proposals. But we're also
concerned that the ordinance drafted last year is very weak and we don't yet have a
clear timeline for passing legislation. Renters are facing urgent problems affecting their
quality of life and sometimes even leading to their displacement out of the city, so it's
frustrating to feel that there may be a lack of urgency from their elected representatives
to improve this situation.
Last November, Tacoma voters approved a set of renter protections by citizen's initiative
that went significantly beyond what we have proposed, including, for example, bans on
winter evictions and evictions of families with school -age children and educators during
the school year. This measure passed despite aggressive opposition from the landlord
and real estate industries, outspending the campaign 3-to-1; despite being an odd year
election; and despite the fact that only about 43% of Tacoma households are renters.
We have no doubt that Tukwila voters would approve a set of renter protections much
stronger than those we've proposed to the council. We would prefer not to run a
citizen's initiative, and we believe that this council can support good legislation. But we
have made a commitment to Tukwila renters to make significant improvements. If it's
not possible for the council to pass adequate protections, we may have no choice but to
take this issue to the voters.
After many conversations with Tukwila renters, here is what we think is a minimum set
of policies that would be acceptable:
1. Require 180 days notice for rent increases of 3 percent or more.
2. Tenant can terminate lease and move with 20 days notice if rent increase is 3
percent or more.
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3. Tenant is entitled to landlord -paid relocation assistance for large rent increases.
4. Prohibit rent hikes in defective, unsafe or unlivable housing.
5. Cap move -in costs additional to first month's rent at no more than one month's
rent, and allow payment in installments.
6. Cap late fees at $10 a month and ban notice delivery fees.
7. Strengthen Just Cause protections, including closing the lease loophole.
8. Social security number cannot be required for rental applications.
9. Renters on fixed income can change their rent due date.
10. Ban unfair, deceptive and abusive practices.
These protections should apply to all Tukwila renters regardless of how many units their
landlord owns, and they should cover mobile and manufactured home parks as well as
residential tenants.
We understand that some councilmembers and staff may be worried about legal risks.
We believe these concerns are overblown, as all of these policies (or very similar ones)
are already in place in other jurisdictions in King County. If we did go to the trouble to
run an initiative, we would certainly make these protections even stronger and add more
to the list, likely including some that haven't yet been passed elsewhere. In this case,
the City may well be in a position of having to defend voter -approved legislation in court.
We also understand that there are several new members of the council and that it takes
some time at the beginning of the year to get things rolling. We and other members of
the Stay Housed Stay Healthy coalition are available to help get everyone up to speed
on the policy discussions in Tukwila so far, as well as the history and wider context of
work on renter protections throughout King County and Washington state.
We hope that you will make it a high priority in the next few months to pass legislation
that includes at least the policies listed above, and also consider adding some of the
other elements we've previously proposed. We are ready to assist in this effort in
whatever way is most helpful. Thank you for your attention to this important issue.
Sincerely,
Katie Wilson
General Secretary
Transit Riders Union
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From: David Puki
To: CityCouncil
Subject: Renter protections policy
Date: Wednesday, March 27, 2024 5:31:14 PM
Council members,
I don't see the need to create a renter's policy. I have not been made aware of any issues by
my friends or other residents living here in the city. Artie my neighbor who supports all the
socialist causes and belongs to the groups that promote them, couldn't give me examples of
actual landlord abuse here in Tukwila. He had lots of stories but could not give me verifiable
examples. I've asked Chief Dreyer if he had any issues of landlord abuse and he said none he
could think of. Also, who will pay the cost to support and enforce this new policy?
So, to me it looks like a solution looking for a problem.
Thanks,
Dave Puki
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Tukwila Renter Protections Policy Proposals
May 2023
1. Additional notice of rent increases
2. Cap move -in costs, allow payment in installments
3. Cap late fees
4. Just Cause Protections
5. Relocation assistance for large rent increases
6. Strengthen Tukwila's rental property inspection program
7. Regulate additional fees and costs added to rent
8. No Social Security Number requirement
9. Renters on fixed income can change rent due date
10. Ban deceptive and abusive practices
11. Additional protections worth considering
12. Ensure that protections cover all renters
13. Impact of renter protections on rental housing stock
14. Enforcement
15. WLIHA letter on 2023 state legislative session
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1. Additional notice of rent increases
PROPOSAL
• 120 days notice for rent increases equal to or greater than 3 percent
• 180 days notice for rent increases equal to or greater than 5 percent
• Tenants faced with a rent increase equal to or over 5 percent can leave their lease early
• Clarify that "rent" includes all fixed monthly charges paid to the landlord (e.g. parking, pet rent,
storage, and any flat utility fees) and not just base rent. This is consistent with the definition of
rent in state law, RCW 59.18.030.
WHY THIS IS IMPORTANT
Rents have been increasing throughout King County at a rapid pace. Families are routinely getting
monthly rent increase notices of $200, $300, and sometimes far more. People need time to find new
housing or figure out a way to pay the additional rent. In a tight housing market, it is extremely difficult
and labor-intensive for a family to find a new home, especially one in the same school district or near
existing community networks and services. This provision makes it more likely that renters can adjust
their finances or find a new rental home instead of falling into homelessness, which is ultimately far
more harmful and costly.
WA CONTEXT AND LOCAL PRECEDENTS
Washington state currently requires 60 days notice of any rent increase.
HB 1124, which passed out of committee in the 2023 legislative session but was not called for a House
floor vote, would have required 180 days notice for rent increases greater than 5 percent and given
tenants faced with such an increase the right to leave their lease early.
Many King County jurisdictions have passed stronger local notice laws:
• Seattle: 180 days notice of any rent increase
• Burien, SeaTac, Kenmore, Kirkland, and Redmond: 120 days notice for rent increases larger
than 3%, and 180 days notice for rent increases larger than 10%
• Unincorporated King County: 120 days notice for rent increases larger than 3%
• Auburn: 120 days notice for rent increases larger than 5%
Burien also gives tenants the right to leave a lease early when faced with a rent increase.
CONSIDERATIONS: CITY RESOURCES, LEGAL RISK, ETC.
This policy can be passed without significant new costs to the city.
Very low legal risk. No King County jurisdiction has faced a lawsuit over a policy like this.
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2. Cap move -in costs, allow payment in installments
PROPOSAL
• Any upfront costs over and above the first month's rent are capped at a total equivalent of one
month's rent.
• Tenant has the right to pay move -in costs in installments over 6 months, or 2 months for leases
shorter than 6 months.
WHY THIS IS IMPORTANT
Large upfront costs are one of the main reasons renters have trouble finding new housing. In addition
to the costs of hiring moving help and/or taking time off work to move, most rentals require upfront
payment of first month's rent, last month's rent, a security deposit and various fees that often add up to
another month's rent. King County is one of the most expensive rental markets in the country and
depending on the unit size, the average rent is anywhere from $1,400-$3,200. Moving into a new
apartment can easily cost $5,000-$9,000.
Most families do not have adequate savings and little excess income to pay multiple months of rent in
advance in addition to moving costs. This creates a barrier that makes it extremely difficult for families
to relocate and traps people in rental situations that they cannot afford. People often stay in unsafe
housing or abusive relationships because they can't afford to move. In other cases, they simply
become homeless.
In addition to making it easier for renters to move, limiting move -in costs relieves strain on non-profit
service providers, who are often footing the bill for move -in costs for low-income families and domestic
violence survivors to flee an abuser and find safer housing.
WA CONTEXT AND LOCAL PRECEDENTS
Unincorporated King County, Kenmore, Kirkland, Redmond, Burien, and SeaTac have all passed the
policy proposed above. Seattle and Auburn have somewhat different policies limiting move -in fees and
allowing payment in installments.
Washington state law allows payment in two or three monthly installments in most circumstances,
upon the tenant's written request; see RCW 59.18.610.
CONSIDERATIONS: CITY RESOURCES, LEGAL RISK, ETC.
This policy can be passed without significant new costs to the city.
Very low legal risk. The Rental Housing Association of Washington sued Seattle over its move -in fee
legislation in 2017. A Superior Court Judge ruled in favor of the City in 2018. In 2019, RHA sued
Burien over a move -in fee installment policy, but the court found that RHA couldn't relitigate the issue
against Burien since RHA hadn't appealed the Seattle lawsuit. (Burien's policy inspired the state law
cited above.) Since then, none of the cities passing move -in fee policies have been sued.
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3. Cap late fees
PROPOSAL
Cap late fees at $10 per month
WHY THIS IS IMPORTANT
Currently, there is no state regulation on how much landlords can charge in late fees. We often see a
flat rate of anywhere from $50-200 and then a daily fee of $5-50 until rent is paid in full. This sets
renters up to become permanently behind on rent and stuck in a cycle of escalating fees and debt.
Renters consistently prioritize rent over other bills and expenses. As they say, "the rent eats first." The
risk of losing one's housing or having an eviction filing on one's record is a strong motivator; late fees
are not needed to incentivize paying on time. The main impact of punitive late fees is to hurt a person's
credit history, which can make it difficult for them to apply for rental housing in the future.
Mistakes happen; there can be an accounting delay resulting in a late paycheck, or something goes
awry with public benefits, or an unexpected expense comes up. If someone is unable to pay their rent
on time, they're unlikely to be able to pay steep late fees on top of catching up.
Service providers that aid in helping to stabilize the living situation for families behind on rent can do
more when less of their limited funds are spent paying off high late fees.
One reason we prefer the flat $10 cap to a percentage -based cap is that, in the latter case, many
landlords will write the percentage instead of a fixed dollar amount into their leases. This creates
confusion for the tenant in calculating the late fee, especially if it's unclear what costs (base rent,
parking, storage fees, pet rent, etc.) it is based on. A percentage -based cap also penalizes the most
cost -burdened tenants; unfortunately paying higher rent does not mean that a tenant has higher
income and is able to afford higher fees. Very often it simply means that a tenant is paying a higher
percentage of their income every month in rent and therefore has less disposable income.
WA CONTEXT AND LOCAL PRECEDENTS
Auburn was the first King County city to cap late fees at $10 per month, in 2020. Since then, both
Burien and Seattle have done the same.
Kenmore, Redmond, and unincorporated King County have all capped late fees at 1.5% of monthly
rent. SeaTac has capped late fees at 2% of monthly rent.
CONSIDERATIONS: CITY RESOURCES, LEGAL RISK, ETC.
This policy can be passed without significant new costs to the city.
Very low legal risk. No King County jurisdiction has faced a lawsuit over a policy like this.
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4. Just Cause Protections
PROPOSAL
Enact local Just Cause protections that strengthen the statewide just cause eviction law (RCW
59.18.650) in the following ways:
1. Landlords must be licensed with the City of Tukwila and have passed an inspection before filing
an eviction.
2. Require that eviction notices state in writing that a tenant may qualify for no -cost legal
representation, with information about where to call to seek assistance.
3. Require that a landlord offer a tenant a new rental agreement at least 90 days before a lease
expires, unless the landlord has a just cause to end the tenancy; or the lease automatically
converts to month -to -month.
4. Establishing a defense to eviction in cases where a landlord does not comply with the above
rules.
WHY THIS IS IMPORTANT
The statewide Just Cause law passed in 2021 is a good foundation but it has some weaknesses that
leave many tenants vulnerable.
One major loophole is that the statewide law excludes most renters on fixed term leases, leaving them
vulnerable to no -cause evictions at the end of their lease. Evictions and lease terminations very often
lead to homelessness and landlords should always have a legitimate reason to take this disruptive
step. Just Cause protects renters from losing their housing because of discriminatory or retaliatory
reasons. All renters deserve this basic protection.
WA CONTEXT AND LOCAL PRECEDENTS
Several King County jurisdictions established local Just Cause laws before the statewide law passed in
2021: Seattle (1980), Burien (2019), Federal Way (2019, by voter initiative), and Auburn (2020).
Federal Way's and Auburn's laws explicitly cover tenants on fixed terms leases, requiring that
landlords have a good cause to terminate a tenancy at the end of a lease.
Unincorporated King County (July 2021) and Kenmore (July 2022) passed local Just Cause laws after
the statewide law passed. Both of these laws also explicitly cover tenants on fixed terms leases,
requiring that landlords have a good cause to terminate a tenancy at the end of a lease.
Also in 2021, after the statewide law passed, Seattle closed the lease loophole in its longstanding Just
Cause ordinance by offering tenants a "right of first refusal" to stay or leave their home when their
lease is up. SMC 7.24.030.J requires owners to offer a lease renewal to existing tenants when their
term lease is expiring unless there is just cause.
In October 2022, Burien strengthened its Just Cause law in several ways, including language to close
the lease loophole. In early 2023, Burien struck this language in response to an unpublished court
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opinion as described below.
In April 2023, SeaTac passed a local Just Cause law modeled on Burien's, also removing the language
protecting tenants on fixed term leases due to fear of lawsuits.
CONSIDERATIONS: CITY RESOURCES, LEGAL RISK, ETC.
This policy can be passed without significant new costs to the city.
Washington appellate courts in Margola Associates v. City of Seattle (1993) and Rental Housing
Association v. City of Seattle (2022) upheld the rights of cities to enact legislation providing defenses to
eviction.
The Rental Housing Association sued Burien after passage of its 2019 law, in Rental Hous. Ass'n of
Wash. v. City of Burien. In August 2022, the Washington Court of Appeals issued an unpublished
opinion in this case, stating that "BMC 5.63.070(1) [Burien's law] is preempted to the extent that it
conflicts with [state statute] RCW 59.12.030(1) and (2)." Specifically, this opinion held that Burien's law
as passed in 2019 implicitly extended to tenants on fixed term leases, and that this extension was
preempted by state law.
While Burien chose to strike some language in its Just Cause law in response to this decision, we
believe this was unnecessary. First, the Court of Appeals decision is unpublished and therefore
non -binding; it did not in practice interfere with the successful use of Burien's law in court. Second, the
decision itself is based on a misunderstanding of state law. The state statute it refers to applies only to
commercial, not to residential tenancies. We believe there was no conflict between Burien's law
covering residential tenant protections and state law.
This is supported by the fact that five King County jurisdictions (Federal Way, Auburn, Seattle,
Kenmore, unincorporated King County) still have Just Cause laws that explicitly cover tenants on fixed
term leases, and these laws are being used successfully in court to defend tenants against unlawful
eviction. None of these cities has been sued over these provisions.
We recommend that Tukwila include language modeled after Seattle's "right of refusal" law to cover
tenants on fixed term leases. We think it is likely that the Rental Housing Association or other landlord
interests could threaten to sue over the inclusion of language covering fixed term leases, pointing to
the Burien opinion to make this threat believable. In case of a lawsuit, the Housing Justice Project is
willing to represent the City in court at no cost to the City.
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5. Relocation assistance for large rent increases
PROPOSAL
• In case of a very large rent increase (10 percent or more in a 12-month period), if the tenant
moves out the landlord must pay relocation assistance equal to three months' rent.
• Clarify that "rent" includes all fixed monthly charges paid to the landlord (e.g. parking, pet rent,
storage, and any flat utility fees) and not just base rent. This is consistent with the definition of
rent in state law, RCW 59.18.030.
WHY THIS IS IMPORTANT
When property owners seek to dramatically increase rents, and thereby profit from future tenants,
current tenants forced to relocate bear the financial burden for the future gain of the property owner.
Landlord -paid relocation assistance helps ensure families can safely find new housing that works
within their budget, and softens the cost of moving.
Large rent increases are a common way of getting rid of lower -income tenants in a gentrifying
neighborhood, especially if a landlord is unable to evict them due to just cause eviction protections.
Due to Washington state's ban on local rent regulation, King County jurisdictions cannot directly limit
the size of rent increases, as some other states and cities have done. Mandatory relocation assistance
is one way of at least mitigating the worst impacts of large rent increases. It provides some funds for
households that are economically displaced by rapidly rising rents, increasing the chances that they
can find new stable housing instead of becoming homeless or housing insecure.
WA CONTEXT AND LOCAL PRECEDENTS
Portland, Oregon passed a Mandatory Renter Relocation Assistance law in 2017. It covers rent
increases of 10 percent or more over a 12-month period and some other situations. Upon request of
the tenant, the landlord must pay relocation assistance of $2,900 - $4,500, depending on unit size.
There is no income requirement.
Seattle passed similar legislation in 2021. The Economic Displacement Relocation Assistance (EDRA)
program covers rent increases of 10 percent or more over a 12-month period, and requires the
landlord to pay relocation assistance equal to three months' rent to tenant households up to 80 percent
of area median income.
Seattle's longer -standing Tenant Relocation Assistance Ordinance provides assistance for renters
displaced by development or renovation; tenant households up to 50 percent of area median income
receive relocation assistance of $4,486, half paid by the city and half by the property owner. This
amount is adjusted for inflation annually. This program is enabled by RCW 59.18.440.
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This article reviews how Seattle's EDRA program has been working since it went into effect in July
2022, compares it to Portland's approach, and makes some recommendations for smaller cities like
Tukwila.
Voters in the City of Tacoma may vote on a relocation assistance policy (among other renter
protections) this fall, pending the success of a citizen's initiative currently underway.
CONSIDERATIONS: CITY RESOURCES, LEGAL RISK, ETC.
A 10 percent rent increase is larger than what would be allowed at all if either of the statewide rent
stabilization bills considered in the 2023 legislative session had passed; HB 1388 and HB 1389 would
have limited rent increases to a maximum of between 3 percent and 7 percent, depending on the rate
of inflation.
This policy can be passed without substantial new costs to the city, as long as the payment of
relocation assistance is a direct transaction between landlord and tenant, not financially mediated by
the city. Landlords would simply report to the city that a payment has been made. This is similar to
Portland's approach, which the Tacoma initiative is also following. In contrast, the administration of
Seattle's law does require significant labor and resources because the tenant applies to and receives
funds directly from the City, which then attempts to recover those funds from the landlord.
Low legal risk. Seattle has not been sued over its relocation assistance policy. Portland was sued but
prevailed in court.
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6. Strengthen Tukwila's rental property inspection program
1. Allow tenants to vacate their lease if properties fail to pass inspection.
2. Retaliation protections and a stay on evictions for units that fail inspection. A tenant
behind on rent may be discouraged from requesting an inspection or pursuing other
remedies for fear of no -cause lease termination, eviction for a minor lease violation or
late rent, or other forms of retaliation or mistreatment.
3. Increase fines/penalties for property owners who fail to resolve identified issues in a
timely manner. Currently, the fines have a low cap and are attached to the property, but
the city has little authority to collect, and the fines are not significant enough to deter
violations.
4. Establish a proactive education and outreach program to let tenants know they have a
right to an inspection, and update the public facing interface of the inspection program
to be more clearly tenant focused.
5. Posting requirements in a public area (if possible) and documentation provided at time
of lease signing and annually thereafter.
6. No rent increases permitted for units that have failed to pass inspection or are in the
process of being inspected at the request of a tenant, or have outstanding requests for
repairs, or have defective conditions making the dwelling unlivable, or are otherwise in
violation of RCW 59.18.060.
7. Increase audits and assess the efficacy of third party inspection companies. Assess if
changes should be made to improve the inspections process.
WHY THIS IS IMPORTANT
Tukwila has a registration and inspection program that is intended to ensure safe living conditions for
rental units in the city. Many tenants still experience unsafe living conditions, and currently there is little
protection for tenants wishing to seek remedies for these unsafe conditions.
WA CONTEXT AND LOCAL PRECEDENTS
Burien, SeaTac, unincorporated King County, and Seattle have all prohibited rent increases if a
property is in defective condition.
Burien, Kent, and Seattle also have rental registration and inspection programs. (Renton and Auburn
have rental registration programs but do not require regular inspections of all rental units.) It might be
useful to look more closely at these programs to see if any offer examples along the lines of some of
the proposals above.
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CONSIDERATIONS: CITY RESOURCES, LEGAL RISK, ETC.
Some of these ideas could easily be implemented without significant new costs to the City, namely the
proposals numbered 1 and 6.
The proposal numbered 2 could include provisions that are implementable without significant costs to
the city, but to be effective, some retaliation protections may require city involvement.
The proposal numbered 5 would likely be most effective if the City proactively creates the materials
that landlords are required to post and/or provide to tenants explaining their rights. The City would
incur some costs in creating these materials and keeping them up-to-date.
The proposal numbered 3 could potentially generate revenue for the inspection program, although staff
time and resources would also be required if the City were to take a more active role in assessing and
collecting fines.
The proposals numbered 4 and 7 would likely require more staff time and resources to implement.
However, it's possible that additional costs could be at least partly covered by increasing rental
registration fees and/or fines.
These changes to Tukwila's rental registration and inspection program can likely be implemented with
little legal risk, depending on the details as the proposals as they are further developed.
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7. Regulate additional fees and costs added to rent
PROPOSAL
Ban or limit various fees that corporate landlords are increasingly charging, including:
• Notice delivery fees
• Administrative and lease renewal fees
• Month -to -month fees
• Service and billing fees
• Etc.
One option is to simply enumerate the types of rental charges and fees that are permissible, and
prohibit all others. This would help to prevent the invention of creative new ways to charge fees.
A related issue is the regulation of tenant screening and application fees. The city could create a
"universal" screening program so that a person or family searching for a rental home only needs to pay
for a single screening, which is then used by all potential landlords during a certain time period.
WHY THIS IS IMPORTANT
Property owners, especially corporate landlords, are increasingly charging a wide variety of arbitrary
and/or punitive fees, for everything from delivering a notice to signing a lease renewal to turning on the
HVAC.
Several stories of King County renters facing such fees are documented here.
Regarding tenant screening and application fees, someone searching for a rental home often must pay
these multiple times, for each prospective unit, even if the landlord chooses another applicant. These
fees can add up to many hundreds of dollars during an apartment search.
Earlier this year, U.S. Department of Housing and Urban Development (HUD) Secretary Marcia L.
Fudge penned an open letter to the housing industry calling for action on junk fees that renters face,
joining President Biden's call to eliminate these hidden fees, charges, or add-ons. These fees can
weaken market competition, raise costs for consumers and businesses, and hit the most vulnerable
Americans the hardest. (Source and letter)
WA CONTEXT AND LOCAL PRECEDENTS
Seattle banned Notice Delivery Fees in the same ordinance that capped late fees at $10 a month,
which passed in April 2023.
In February 2023, Spokane passed Ordinance 36366, which creates a "portable" background and
credit check that landlords can voluntarily accept. The originally proposed version of the ordinance
would have created a "universal" background and credit check, where a tenant could pay for the
service once and all Spokane landlords would be required to accept it. (Source)
HB 1388 and HB 1389, the two Rent Stabilization bills that were considered in the 2023 legislative
session but did not reach a floor vote, would have banned month -to -month fees: "A landlord may not
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charge a higher rent or include terms of payment or other material conditions in a rental agreement
that are more burdensome to a tenant for a month -to -month rental agreement than for a rental
agreement where the term is greater than month -to -month, or vice versa."
This is an emerging issue. King County jurisdictions have an opportunity to set examples that state
and local governments around the country can follow.
CONSIDERATIONS: CITY RESOURCES, LEGAL RISK, ETC.
These policies can be passed without significant new costs to the city, with the possible exception of a
universal screening program; the details of such a program and the city's role in it would need to be
studied further.
Seattle has not been sued over its ban on Notice Delivery Fees and there is no indication that landlord
groups are planning or have any plausible grounds for a lawsuit.
The other types of fees listed above have not yet been regulated or prohibited in any Washington state
jurisdiction, so further analysis is needed to make an assessment of legal risk.
In particular, banning month -to -month fees (or stating that landlords cannot charge more for a
month -to -month lease than for a longer term lease) may carry some legal risk, with opponents arguing
that this is a form of local rent regulation. If the City chooses not to include this element in its
legislation, it should at least clarify that, if multiple alternative lease terms are offered at different rates,
the rent increase that triggers the length -of -notice and relocation assistance provisions is based on the
highest of these rates. For example, if a landlord offers a year -long lease at a 4% rent increase or a
month -to -month lease at a 20% increase, the landlord should give 180 days notice and offer relocation
assistance. There are many instances where a tenant may need to choose a shorter lease option,
such as planning to move out of state a few months after their current lease ends.
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8. No Social Security Number requirement
PROPOSAL
8. Prohibit landlords from requiring a social security number for the purposes of screening a
prospective tenant.
9. Stronger additional option: Prohibit landlords from making any inquiry regarding or based on
the immigration or citizenship status of a tenant or prospective tenant.
WHY THIS IS IMPORTANT
The practice of requiring a social security number impacts immigrant communities, making it hard for
undocumented people to find housing. Credit reports and other tenant screenings are obtainable
without a social security number. This provision helps to ensure fair access to the basic human right of
housing, regardless of immigration status. Creating barriers for people to find homes is harmful to the
whole community.
WA CONTEXT AND LOCAL PRECEDENTS
Burien, SeaTac, Kenmore, Redmond, and unincorporated King County have all prohibited landlords
from requiring a social security number for the purposes of tenant screening.
CONSIDERATIONS: CITY RESOURCES, LEGAL RISK, ETC.
This policy can be passed without significant new costs to the city.
Very low legal risk. No King County jurisdiction has faced a lawsuit over a policy like this.
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9. Renters on fixed income can change rent due date
PROPOSAL
Rental agreements must include a provision allowing tenants to adjust the due date of rent payments if
the tenant has a fixed income source such as SSI that makes it hard to pay rent on the date otherwise
specified in the rental agreement.
WHY THIS IS IMPORTANT
Renters on fixed income such as SSI or SSDI may not receive it on the first of the month, leading to
situations where they don't have enough left over for rent when it comes due. Fixed income, especially
from federal assistance programs like these, is often very low and requires careful budgeting to make
ends meet. Renters who are surviving on a fixed income shouldn't have to worry about being charged
late fees or even getting an eviction notice when they don't have control over when their income
arrives.
WA CONTEXT AND LOCAL PRECEDENTS
Burien, SeaTac, Kenmore, Redmond, and unincorporated King County have all passed this policy.
Washington state law (RCW 59.18.170) allows a change in the rent due date of up to five days, if the
tenant's sole income is from government assistance and they make the request in writing. The stronger
protection proposed here would allow the date to be adjusted based on when the tenant actually
receives income.
CONSIDERATIONS: CITY RESOURCES, LEGAL RISK, ETC.
This policy can be passed without significant new costs to the city.
Very low legal risk. No King County jurisdiction has faced a lawsuit over a policy like this.
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10. Ban deceptive and abusive practices
PROPOSAL
Landlords are prohibited from unfair, abusive or deceptive acts or practices.
WHY THIS IS IMPORTANT
Landlords generally have greater knowledge of landlord -tenant laws than renters do. This provision
helps to protect tenants from misrepresentations and landlords who take unreasonable advantage of a
lack of understanding on the part of the tenant regarding the conditions of the tenancy or the tenant's
rights under the law. Tenants who don't speak English may be especially vulnerable to
misrepresentations. For example:
• A landlord may threaten to evict a tenant or issue notices for late or legal fees, even when this
is illegal.
• A landlord may refuse to do repairs and make tenants believe they are responsible for all
repairs.
• A landlord may convince tenants to sign mutual termination forms or repayment plans without
going through the mediation process, or give them a new lease or change the terms of a lease
without approval from the tenant.
Better defining and establishing clearer consequences for such behavior (such as making a landlord
who violates this provision liable to the tenant for damages as set forth in RCW 19.86.090) can help.
WA CONTEXT AND LOCAL PRECEDENTS
Kenmore and unincorporated King County have passed this policy.
CONSIDERATIONS: CITY RESOURCES, LEGAL RISK, ETC.
This policy can be passed without significant new costs to the City. It is not anticipated that the City
would be directly involved in the interpretation or enforcement of this provision; but including this
language is helpful to housing attorneys representing tenants whose landlords have engaged in
deceptive or abusive practices.
Very low legal risk. No King County jurisdiction has faced a lawsuit over a policy like this.
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11. Additional protections worth considering
PROPOSAL
10. Fair Chance Housing law: prevents landlords from unfairly denying applicants housing based
on criminal history.
11. First -in -Time law: landlords must provide notice of screening criteria and rent to the first
qualified applicant.
12. Winter Eviction Protections: provides a defense to eviction in many residential tenancies
between December 1 and March 1. The law applies to tenants with low to moderate income,
with some exceptions.
13. School Year Eviction Protections: limits eviction during the school year for households with
students (childcare - under 18), educators, and employees of schools.
WHY THIS IS IMPORTANT
Fair Chance Housing and First -in -Time laws are aimed at reducing racial and other forms of
discrimination in the application process for rental housing.
Winter and School Year Eviction Protections are aimed at reducing the types of evictions that have the
most harmful human consequences.
WA CONTEXT AND LOCAL PRECEDENTS
Seattle has implemented all of these policies.
CONSIDERATIONS: CITY RESOURCES, LEGAL RISK, ETC.
These policies can be passed without significant new costs to the city.
Because these laws have already been implemented in Seattle and several have been litigated, they
can be passed in other jurisdictions with little risk of further lawsuits.
Seattle was sued over its Fair Chance Housing Ordinance. On March 21, 2023, a panel of the 9th
Circuit Court of Appeals ruled that the portion of the Ordinance banning landlords from asking tenants
and applicants about criminal history is unconstitutional. However, the Court upheld the portion that
bans landlords from taking adverse actions, such as denying housing based on criminal history. The
City is appealing the ruling, and the timeline for a decision is unknown. In the meantime, a jurisdiction
considering this policy may want to omit the portion that was held unconstitutional.
Seattle was also sued over the First In Time Law and the Winter Eviction Protections. These laws were
both upheld in court.
Seattle was not sued over its School Year Eviction Protections.
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12. Ensure that protections cover all renters
We believe it's vital that these protections cover all Tukwila renters, regardless of how many
units or properties their landlord owns.
It is important to remember the stakes for the different Tukwila residents impacted by these
policies. For tenants, the stability that these renter protections provide will help families meet
basic needs alongside housing costs, increase the likelihood that students can stay in the same
school community, and avoid the traumatic experience of homelessness. For landlords, these
protections may require minor changes in the way they manage their rental housing
investments. These measures are so needed in part due to the high -cost, low -vacancy housing
market in our region, which has also resulted in a rapid rise in the value of these investments.
Tenants also have no way of knowing or verifying with certainty how many units any particular
landlord owns. It is an extremely common practice for landlords to own each of their units in
individual LLCs and/or in different companies, sometimes with different investors or different
partners. An individual tenant cannot be certain how many units are owned and, therefore, if
renter protections exempt small landlords, whether they are protected or not.
Unfortunately, there is no evidence that landlords who own only one or a few units are less likely
to evict or are otherwise better landlords. Tenants of small landlords need the same protections
as tenants of larger landlords. A small landlord loophole also raises significant equity concerns.
Tenants who seek to rent single family homes tend to be tenants with families and children.
Treating these tenants differently raises fair housing issues. As you know, families with children
are a protected class under state fair housing laws.
Advocates, including the Washington Low Income Housing Alliance and members of the Stay
Housed Stay Healthy Coalition, have been working on state -level tenant protections for many
years. So-called "small landlord" exemptions have consistently been rejected by the state
legislature for a variety of sound public policy reasons. It is significant that landlord lobby groups
have consistently asked for these loopholes over the last two decades and that state legislators
have consistently refused them.
Other local jurisdictions in King County, when considering local renter protections, have also
been asked to include such exemptions and have also rejected them. For example, the city of
Auburn was asked by the landlord lobby to exempt small landlords when it passed its local
source of income discrimination ordinance several years back. The City did a study and found
that it would leave a very significant number of tenants without protections and therefore
rejected the amendment. None of the renter protection ordinances passed since 2021 in
unincorporated King County, Kenmore, Redmond, Kirkland, Issaquah, Burien, SeaTac, or
Seattle has exempted landlords based on the number of units owned, despite pressure from
landlord lobby groups and some individual landlords to add exemptions. (The sole exception to
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this rule that we are aware of is Seattle's winter eviction moratorium, to which an amendment
was added exempting landlords with fewer than five rental units in Seattle.)
We urge Tukwila not include such an exemption in your local protections. To do so would add an
unnecessary level of confusion, make these protections extremely difficult to enforce, and leave
many renters unnecessarily vulnerable to housing instability and bad landlord behavior,
especially families with children. It would also set a dangerous precedent that could impact
future efforts in other jurisdictions and statewide. Nothing about this legislation causes an undue
burden on smaller landlords. Most importantly, these basic protections should be universal to all
tenants — not dependent on how many properties their landlord owns and operates.
13. Impact of renter protections on rental housing stock
In the past few years, several news stories have reported that renter protection laws in Seattle
may have caused a significant sell-off of single family home rental properties. These claims,
seeded by landlord lobby groups, are a distortion of the reality. They are based on data from the
Seattle Department of Construction and Inspections showing a decline in the number of smaller
rentals that have been registered or reregistered with the city during the pandemic in
compliance with the City's Rental Registration & Inspection Ordinance (RRIO):
July 2018
May 2020
August 2022
Size Class
Properties
Units
Properties
Units
Properties
Units
Single Unit
21174
21174
23853
23853
18740
18740
2 to 4 Units
5145
13529
5420
14156
4072
10678
5 to 20 Units
3239
30951
2824
27394
2536
24951
21 to 50 Units
877
27503
829
26069
805
25353
51 to 99 Units
286
20112
290
20482
307
21633
100 to 199 Units
155
21291
164
23108
169
23428
However, as the City's explanation accompanying this table indicates, the accuracy and
interpretation of these data are not at all clear:
"This data has significant limitations for estimating the total number of properties. RRIO includes
short-term rentals, nearly all of which are in the small size classes. The RRIO system does not
distinguish these properties so they could not be removed from the counts. RRIO also has an
apparent problem with non-compliance, with an unknown, but potentially large drop in
registrations during the pandemic."
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During the pandemic, when SDCI nearly halted RRIO outreach and enforcement, an
as -yet -unknown percentage of landlords failed to register or reregister their rentals. It's
reasonable to think that small landlords, much more than larger and corporate landlords with
professional management staff, might disproportionately let their registrations lapse during this
period of crisis.
If it does turn out that an unusual number of small rental properties were sold or taken off the
market during the pandemic, there is a further crucial question of interpretation. It would not be
surprising if many small landlords chose to sell their properties, given the extraordinary financial
stresses caused by the pandemic. Emergency eviction moratoriums and rent freezes were part
of this challenging landscape, with many renters unable to pay rent for long periods of time, and
rental assistance programs slow to get up and running. Combine all this with a hot housing
market, characterized by soaring property values, which created extremely attractive
circumstances in which to sell property.
Even if the RRIO data does partially reflect greater -than -normal sales of small rental properties
since 2020, it does not at all follow that the various permanent renter protection laws in place in
Seattle and some other jurisdictions are a significant contributing factor. In fact, the longer -term
evidence suggests otherwise.
A research team at the University of Washington has recently examined property market data in
the Seattle area to assess the claim that the City of Seattle's renter protection laws are driving
sales of small rental properties. They examined patterns of ownership and sales inside and
outside Seattle city limits, and looked for correlations with the different regulatory environments
in different jurisdictions. Their research, which is still in peer review and not yet published,
suggests that Seattle's stronger renter protections have not significantly impacted property
sales.
14. Enforcement
Adequate enforcement of renter protections is a challenge, especially for smaller cities that don't
have the resources to devote numerous staff to landlord -tenant issues. In practice, for a tenant
whose landlord breaks the law, often the only effective recourse is to sue, and not many people
have the money or time for that.
However, advocates are working to improve this situation. One solution was considered the
2022 legislative session: House Bill 2023 aimed to create a streamlined "summary proceedings"
process for tenants to address violations and obtain relief in Superior Court, without having to
lawyer up.
In this year's legislative session, HB 1389 would have applied the Consumer Protection Act to
the Residential Landlord -Tenant Act and the Manufactured/Mobile Home Landlord -Tenant Act. It
would have given the Attorney General more authority to investigate and address abusive
landlord practices and violations of tenant protection laws. Reforms like these could help a lot.
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In the meantime, cities like Tukwila should not let the challenges of enforcement deter them
from passing good policies. Even imperfect landlord compliance means that many thousands of
renters are enjoying the benefits of stronger protections and greater housing stability.
The City could also explore partnerships with legal aid organizations that provide services to
renters, including the Tenant Law Center, the Housing Justice Project, and the Northwest
Justice Project. A modest commitment of city resources could enable one of these organizations
to provide advice and/or legal representation to some Tukwila renters who face especially
egregious mistreatment or discrimination from a landlord.
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WASHINGTON LOW INCOME
Housing Alliance
Dear Tukwila City Councilmembers:
The Washington Low Income Housing Alliance has over 14 years experience advocating for
stronger protections for renters in Washington state. We supported several important bills that
were introduced in the 2023 legislative session:
HB 1388 and HB 1389 would have limited rent increases to between 3 and 7 percent annually,
depending on the rate of inflation, and prohibited month -to -month fees. This was the first year
these bills were introduced and each had a large number of sponsors — about 30. The bills
differed in approach to how rents would be regulated to give lawmakers opportunity to consider
multiple options, and legislators and advocates eventually coalesced around an amended
version of HB 1389. This bill gained significant support in the House Housing and Appropriations
Committee, but was not given a vote on the House Floor. Over 40 tenants and landlords testified
in support of the bills.
HB 1124 would have required 180 days notice for rent increases greater than 5 percent
annually, and given tenants faced with such an increase the right to leave their lease early. HB
1124 also passed out of the House Housing Committee with strong support from Democratic
legislators across the state. But ultimately was not given a vote on the House Floor due to time
constraints.
As you know, legislative politics in Olympia are complex, and often good bills with strong popular
support can take years to cross the finish line, if they ever do. In the case of renter protections in
particular, the corporate landlord and real estate lobby increasingly hold extremely conservative
positions, even when their own members testify in support of tenant protections. So
unfortunately in Olympia, tenant protections often face fierce opposition.
In this year's legislative session, advocates ultimately came together to successfully pass a
fourth bill that was first introduced four years ago:
HB 1074 requires landlords to document repairs before withholding a security deposit.
Previously, under RCW 59.18.280, landlords were required to "give a full and specific statement
of the basis for retaining any of the deposit." This vague language created a loophole that made
it easy for landlords to withhold security deposits without proof of actual damages or of the cost
of the repair.
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Under the new rules, landlords are required to provide tenants with copies of estimates,
invoices, bills, and receipts related to fixing any alleged damage to the property. Landlords must
also include a statement of time spent making repairs, and the hourly rate charged by
contractors. These additional documentation requirements should allow tenants to better
understand how their deposit is being used, and make it easier to dispute exaggerated or false
charges.
It is disappointing that HB 1389 and HB 1124 failed to pass, in a moment when so many families
in King County and across the state are being destabilized by large rent increases. Rent
increases are a driver of homelessness and it is incumbent on local elected officials to take
action to reduce instability when the state fails to act. This is a crisis that is impacting renter
households of all but the highest incomes, it's critical that local elected officials step up to
provide protections for the many renters in your city who are struggling to keep a roof over their
heads. More notice of rent increases and providing renter households with the opportunity to
move earlier if they cannot afford the rent increase will improve housing security and prevent
displacement and homelessness in your community and in our region.
Sincerely,
Michele Thomas
Director of Policy and Advocacy
Washington Low Income Housing Alliance and Housing Alliance Action Fund
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COUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's review
Council review
4/22/24
BJM
ITEM INFORMATION
ITEM NO.
4.C.
STAFF SPONSOR: BRANDON MILES
ORIGINAL AGENDA DATE: 4/22/24
AGENDA ITEM TITLE South King County Grant to Address Homelessness
CATEGORY ® Discussion
Mtg Date 4/22/24
❑ Motion
Ilk Date
❑ Resolution
Mtg Date
❑ Ordinance
Mfg Date
❑ Bid Award
Aitg Date
❑ Public Hearing
Mtg Date
❑ Other
!Wig Date
SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD
Finance ❑ Fire ❑ P&R ❑ Police ❑ PW
SPONSOR'S
SUMMARY
The City of Tukwila has preliminarily been awarded $2 million by King County to address
homelessness. An agreement will be brought to the City Council at a future date
authorizing the acceptance of the funds. Staff would like to brief the City Council on
ongoing discussions with the County in the use of the funds. The funds may be used to
support the tent at Riverton Park Methodist, tiny homes, emergency vouchers, etc.
REVIEWED BY
❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev.
❑ LTAC
DATE: N/A
❑ Arts Comm.
❑ Parks Comm. ❑ Planning Comm.
COMMITTEE CHAIR: N/A
RECOMMENDATIONS:
SPONSOR/ADMIN. Mayor's Office
COMMITTEE N/A
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
$N/A
AMOUNT BUDGETED
$N/A
APPROPRIATION REQUIRED
$N/A
Fund Source: N/A
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
4/22/24
MTG. DATE
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UPCOMING MEETINGS AND EVENTS
APRIL & MAY 2024
City Council meetings and Council Committee meetings will be conducted in a hybrid model, with in -person and virtual attendance available.
APR 22 MON
APR23 TUE
APR 24 WED
APR 25 THU
APR 26 FRI
APR 27 SAT
➢ Finance and
Governance
Committee Meeting
5:30 PM
City Hall - Hazelnut
Room
Hybrid Meeting
➢Transportation and
Infrastructure Services
Meeting
5:30 PM
6300 Building - 2'd Floor
Duwamish Conference
Hybrid Meeting
S. City Council
Committee of the
Whole Meeting
7:00 PM
City Hall Council
Chambers
Hybrid Meeting
inKing County
Library System
GARDENING CLASS:
COMPOSTING AT HOME
This workshop will teach
you about the different
methods of composting.
1:00 PM — 2:30 PM
Westfield Southcenter
Mall - Sky Terrace
Meeting Room, 3'd Floor
Click here for information.
➢ Arts Commission
6:00 PM
Hybrid Meeting
➢Planning Commission
6:30 PM
Hybrid Meeting
SOUTH
KING COUNTY
CAREER SHOWCASE
This event is for high school
juniors and seniors seeking
to explore career paths and
educational opportunities.
There will be approximately
150 vendors.
9:00 AM — 2:00 PM
Accesso Showare Arena
625 W James St, Kent
Click here for information.
King County
Library System
FINANCIAL
FOUNDATIONS: ESTATE
PLANNING
Discover how wills and
other directives can be put
in place to fulfill your wishes
and preferences.
3:00 PM — 4:00 PM
Tukwila Library
14380 Tukwila Intl'I Blvd
Click here for information.
UTILITY BOX ARTISTS
APPLICATIONS
We are seeking artists to
create artwork for this year's
program. This program
supports the vitality and
attractiveness of the City as
well as local artists.
Due today at 5:00 PM!
Click here for information.
GREEN
TUKWILA
GUIDED TREE WALK:
DUWAMISH HILL PRESERVE
Join us for an educational tree
walk to celebrate Earth Month!
This will be a slow-paced walk
around the trails.
10:00 AM — 11:30 AM
Duwamish Hill Preserve
3800 S 115t" St
Click here for information.
Wstfldd
SOUTHCENTER
THE GOOD FESTIVAL EVENT
Celebrate the sustainability
efforts of the mall and retail
tenants, while also promoting
sustainability within the wider
community. Reserve your spot
for kids' activities!
11:00 AM — 3:0O PM
Click here for information.
APR 29 MON
APR30 TUE
MAY1 WED A.
MAY2 THU
MAY 3 FRI
MAY 4 SAT
No City Council or
Committee meetings due
to a 5' Monday.
LEI King County
SURVEY FOR 2026-2031
PARKS LEVY
Your voice matters.
Complete survey on
improving the parks and
outdoor spaces in your
community. You can enter
to win 2 concert tickets to a
2024 Marymoor Live
Concert Series.
Complete by today!
Click here for
information.
Give Blood = Save 3 Lives
URGENT NEED
THIS SPRING!
DONATE AND
ENTER TO WIN A
MAUI TRIP FOR 2
FOR APRIL!
It takes 1,000 donors a day
to sustain a blood supply
for patients in our
community.
Click here to schedule an
appointment.
Or call 1-800-398-7888.
You can also donate cord
blood after the birth of your
baby to save a life.
Click here for information.
DONATE BLOOD
Book your 1-hour
appointment now! See below
for more information.
GREEN
TUKWILA
PARTNERSHIP
URBAN BIRD -WATCHING
WORKSHOP
Join us and learn more about
birds and get hands-on
practice with binoculars, and
more with WDFW Watchable
Wildlife Coordinator Kelsey
Hansen.
6:00 PM — 8:00 PM
Tukwila Community Center
12424 42nd Ave S
Click here for information.
➢ Equity and Social
Justice Commission
5:30 PM
Hybrid Meeting
SOUTHCENTER PARKWAY
COMMUNITY HERO
NIGHT
Meet your heroes from
Tukwila Police, Puget
Sound Fire and Tri-Med
Ambulance for an
interactive night of games,
prizes and raffles. Kids 12
and under will receive a free
Icedream.
4:00 PM — 7:00 PM
17333 Southcenter Pkwy
Click here to register.
King County
METRO
SURVEY ON BUS
SERVICE
Share your thoughts about
King County Metro bus
service whether you ride
frequently or occasionally.
Other languages are
available.
Complete survey by May 5
Click here for information.
SURVEY ON LINK LIGHT
RAIL IN SOUTH KING
COUNTY
Do you ride the transit in
South King County? Metro is
seeking feedback from
communities on how to best
adapt their transit services
when the stations open. See
below for other languages.
Complete survey by May 10.
Click here for information.
KING COUNTY DIVERSITY &
RECRUITMENT WORKSHOP
Free event hosted by Puget
Sound Fire to learn about
starting a career in Fire, EMS
and other first response or
public health opportunities.
Breakfast and lunch provided.
May 11
8:00 AM - 3:30 PM
Register now!
Click here to register.
CITY HALL & 6300 BUILDINGS ARE OPEN TO THE PUBLIC MONDAYS THRU THURSDAYS 8:30 AM - 4:00 PM
CALL FOR UTILITY BOX ARTISTS APPLICATIONS DUE APR 26
We are seeking artists to create artwork for this year's Utility Box Art Program. Artists will receive a budget of up to $1,000. Click here for information.
DONATE BLOOD AT CITY HALL MAY 1 10:00 AM - 4:00 PM 6200 SOUTHCENTER BLVD
No one under the age of 16 allowed onsite. Eat a hearty meal and drink plenty of fluids prior to your donation. Photo ID and appointments required.
Book your 1-hour appointment now! Click here to book appointment. Or call 1-800-398-7888.
FREE PUZZLE PARTY SOCIALS AGES 8 AND UP MAY 9, JUN 13, JUL 11 & AUG 8 6:00 PM — 8:00 PM TUKWILA COMMUNITY CENTER
This is a monthly social gathering to swap puzzles or practice for our next Puzzle Palooza.
NEIGHBORHOOD WATCH GROUP HELP
Police Community Engagement Coordinator can help to create a neighborhood watch group in your neighborhood and apartments. Click here to email Brooke Lamothe.
FREE CRIME PREVENTION SURVEY FOR BUSINESSES TO ENHANCE SECURITY
Police Community Engagement Coordinator will visit your business to conduct a security assessment and recommend making your business more secure. Allow up to 2 weeks for
an appointment date confirmation. Click here to make an appointment.
FOOD BANK OPENS: TUESDAYS, THURSDAYS AND SATURDAYS 10:00 AM — 2:30 PM 3118 S 140TH ST, TUKWILA
ti� VOLUNTEERS - In need of volunteers for food packaging or food distributions. To volunteer, click here to sign up.
*I'
'+.i. DONORS - Please donate at tukwilapantry.org/please-donate/. Donations can be dropped off on Tuesday -Saturday from 8 AM -11 AM or by appointment.
Click here for a current list of items in need.
0 STILL WATERS SNACK PACK NEEDS YOUR DONATIONS AND VOLUNTEER HELP!
SnackPack distributes food bags on Fridays to Tukwila students in need. Click here for the Snack Pack list.
VOLUNTEERS NEEDED ON WEDNESDAYS. Pack snacks every Wednesday at 9:30 AM.
To volunteer, email Stillwatersfamilyservices@gmail.com. To deliver food, click here to register with Tukwila School District.
Please donate to feed our Tukwila kids. Click here to donate online or mail checks to Still Waters, PO Box 88984, Tukwila WA 98138.
ERE
FREE ONLINE TUTORING AND HOMEWORK HELP FOR GRADES K THRU 12
Use a computer, tablet, smartphone or home phone to connect with tutors by phone or on Zoom. Click here for information.
FUN ACTIVITIES AND OTHER EVENTS AT TUKWILA LIBRARY
Tukwila Library offers many resources and services. Click here for information.
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1.9
17
Tentative Agenda Schedule
MEETING 1 -
REGULAR
MEETING 2 - MEETING 3 -
C.O.W. REGULAR
MEETING 4 -
C.O.W.
APRIL 1
See below links for the
agenda packets to view
the agenda items:
April 1, 2024
Work Session
April 1, 2024
Regular Meeting
APRIL 8
See below links for the
agenda packets to view
the agenda items:
April 8, 2024
Committee of the Whole
Meeting
APRIL 15
See below links for the
agenda packets to view
the agenda items:
April 15, 2024
Work Session
April 15, 2024
Regular Meeting
APRIL 22
See below links for the
agenda packets to view
the agenda items:
April 22, 2024
Committee of the Whole
Meeting
MEETING 1 -
REGULAR
MEETING 2 -
C.O.W.
MEETING 3 -
REGULAR
MEETING 4 -
C.O.W.
MAY 6
MAY 13
PRESENTATION
Peace Officers Memorial Day
Proclamation.
SPECIAL ISSUES
- Ordinance adopting tiny house
village and emergency shelter
regulations.
- Ordinance adopting Franchise
Agreement with Astound
Broadband.
- Resolution adopting Financial
Policies.
- Resolution adopting Purchasing
Policy.
MAY 20
WORK SESSION
2023-2024 Comprehensive Plan
Update: Housing and other issues.
REGULAR MEETING
CONSENT AGENDA
Ordinance adopting Franchise Agreement
with Astound Broadband.
UNFINISHED BUSINESS
- Update on Surface Water Comprehensive
Plan.
- Ordinance adopting tiny house village
and emergency shelter regulations.
- Resolution adopting Financial Policies.
- Resolution adopting Purchasing Policy.
- Discussion on 2025-2026 Biennial
Budget:
(1) Utility Cost of Service analysis.
(2) Community Engagement
feedback.
MAY
meeting
Community
27
WORK SESSION
* * * * *
2023-2024 Comprehensive Plan
Update: Introduction to Plan Issues, Process
and Requirements.
MEMORIAL DAY
REMEMBER & HONOR
* is
REGULAR MEETING
Committee of the Whole
cancelled due to the
holiday.
City offices and
Center closed.
PRESENTATION
- City of Tukwila and Recology
Re -Think Waste Art Contest.
- Report from Puget Sound Regional
Fire Authority.
CONSENT AGENDA
- Authorize the Mayor to sign Supplemental
Agreement to contract for on -call services
for the Neighborhood Traffic Calming
Program, in the amount of $55,000.00.
- Accept as complete the 2023 Overlay
Project; authorize release of retainage,
subject to the standard claim and lien
procedures (final cost of project, including
retainage; $1,096,988.59).
- Award a bid and authorize the Mayor to
sign a contract for the 2024 Overlay
Program.
- Authorize the Mayor to sign an agreement
with KPG for supplemental contract
management services for the 2024 Overlay
Program, in the amount of $197,726.00.
- Authorize the Mayor to sign Change Order
#4 to contract for the Riverton Creek Flap
Gate Project, in the amount of $80,000.00.
- A resolution updating change and petty
cash fund amounts.
UNFINISHED BUSINESS
An ordinance regarding rental housing tenant
protections.
NEW BUSINESS
Collective Bargaining Agreements:
(1) Authorize the Mayor to sign a Collective
Bargaining Agreement with Teamsters
Local 763 for Administrative/Technical
Employees.
(2) Authorize the Mayor to sign a Collective
Bargaining Agreement with Teamsters
Local 763 for Maintenance/Trades
Employees.
(3) Authorize the Mayor to sign a Collective
Bargaining Agreement with Teamsters
Local 763 for Professional/Supervisory
Employees.
(4) Authorize the Mayor to sign a Collective
Bargaining Agreement with Teamsters
Local 763 for Senior Program Managers.