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HomeMy WebLinkAboutFIN 2026-02-09 Item 1A - Budget - 2025 TransfersCity of Tukwila Thomas McLeod, Mayor Marty Wine, City Administrator AGENDA BILL ITEM NO. 1.A. Agenda Item Sponsor Legislative History 2025 Transfers Aaron BeMiller, Finance Director February 9, 2026 Finance & Governance Committee February 23, 2026 Committee of the Whole February 23, 2026 Special Meeting Consent Recommended Motion ❑ Discussion Only ❑x Action Requested MOVE TO authorize the transfer of $2.7 M to Fund 302 for capital and major maintenance and $300,000 to Fund 503, LEOFF from the 2025 year-end General Fund. EXECUTIVE SUMMARY The Mayor has identified several capital and major maintenance needs for City assets and, as part of the year-end process, has identified available General Fund monies which can be set aside as a funding source for projects. Per TMC 3.32.010 any transfers require a formal motion from the City Council. Staff is requesting this item be moved from Committee to the February 23 Committee of the Whole and the February 23 Special Meeting for consent. DISCUSSION Throughout 2025 the Mayor's Office has led the budget sustainability process. This process is designed to look for revenue growth and expenditure reduction options to bring the city's long-term General Fund forecast into balance. As part of the budget sustainability process, conversations included the need to establish and appropriately fund capital and major maintenance needs for preservation of city assets. As part of the 2025 year-end process, which is continuing, General Fund monies, in excess of fund balance requirements, are available to be transferred to a capital fund and held for city capital, capital planning, and major maintenance needs. These monies are not allowed to be expended until budgeted by the City Council. The transfer of these funds is consistent with prior Council comments to address deferred facility maintenance and to prioritize funding for future capital investments. Additionally, Administration is proposing a transfer of $300,000 of available General Fund monies to the LEOFF I retiree self -insured healthcare plan. This fund is supported by the General Fund and accounts for the City's self -insured healthcare plan for Law Enforcement Officers and Fire Fighters (LEOFF I) retirees. This fund receives contributions on behalf of retired LEOFF I employees through their respective organization units. Healthcare claims and administrative fees are expended in this fund. As the population of this fund continues to age, expenses related to assisted living care costs are expected to continue to rise. This fund ended 2024 in a deficit net position and this funding will ensure a positive net position as well as allow for keeping General Fund contributions flat for at least a few years, depending on activity. Proposed Transfers from the General Fund: • $2.7 million to Fund 302 for capital and major maintenance funding 2 • $300K to Fund 503 (LEOFF Fund) FINANCIAL IMPACT Complete for all items with fiscal implications Disclaimer: Final terms and scope of work subject to review by the City Attorney © Expenditure - Budgeted ❑ Expenditure - Unbudgeted ❑ Expenditure - Grant -Funded ❑ Revenue — One -Time (e.g. asset sale, surplus equipment) ❑ Revenue - Ongoing Expenditures: Fund Source: $3,000,000 Revenues(if applicable): General Fund $0 Contractor (if applicable) N/A Scope of Work N/A Amount $3,000,000 Duration Additional Comments: Fund: capital and major maintenance funding Fund) Proposed Transfers from the General • $2.7 million to Fund 302 for • $300K to Fund 503 (LEOFF • ATTACHMENTS N/A https://tukwilawa.sharepoint.com/sites/CC2/CC Docs/2026 COUNCIL MTGS/2026 Agenda Packets/2026-02-09 FIN Packet/Documents/2025 Transfers - Agenda Bill.docx 3