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2025 / 2026 Mid -Biennium
Adjustment Summary
March 2026
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2026 Amended Budget Summary
This document presents the Mid -Biennium Budget Amendment for fiscal year 2026, authorized
by the City Council in late 2025. It details the specific adjustments to revenues, expenditures,
and transfers made since the original biennial budget was adopted. While the amendment
produces an updated financial outlook for the full year, this document serves as a companion
to, not a replacement for, the 2025-2026 Biennial Budget, which remains the City's
foundational financial plan. For a full understanding of the budget, use this document alongside
the 20J25-2026 Iblieininliall budget document.
I. Purpose and Overview 4
II. General Fund 5
General Fund Revenue and Transfers In 11
New Cannabis Sales Tax Revenue 11
Reduced Fire Station Sale Proceeds 11
Urban Renewal Fund Closure — Transfer to General Fund 11
Grant Revenues 11
Note: Public Safety Sales Tax 11
General Fund Expenditures and Transfers Out 12
Labor Cost Changes 12
Public Safety and Justice 12
Operational Efficiencies and Technology 12
Community Services and Governance 13
III. All Funds 14
Citywide Personnel and Labor Summary 16
Rates Affecting Labor Costs 16
Staffing Cost Changes by Fund 17
Notable Staffing Changes, 2026 Amended Budget 17
Notable Staffing Changes That Took Place in 2025 18
FTE Count by Fund/Department 19
New King County Parks Levy Fund (Fund 102) 20
Land Acquisition, Recreation & Park Development Fund (Fund 301) 20
Urban Renewal Fund (Fund 302) 20
City Facilities Fund (Fund 306) 20
Utility Funds (Funds 401, 402, and 412) 21
Self -Insured Healthcare Funds 21
Active Employee Self -Insurance Fund (Fund 502) 21
LEOFF I Retiree Self -Insurance Fund (Fund 503) 21
3
I. Purpose and Overview
Authorized by the City Council in late 2025, the 2026 Mid -Biennium adjustment updates cost
estimates, changes some revenue projections, and allows the budget to better reflect
operational and organizational changes that have taken place during the first year of the
budgeted biennium. The City of Tukwila adopts a biennial budget every two years beginning
on an odd numbered year. Like many other cities, Tukwila treats the adopted two-year budget
as separate one-year budgets and incorporates a mid -biennium adjustment for necessary
changes to the second -year budget.
The General Fund's projected change in fund balance improved by $856,000, meaning
the City is expecting operating costs to be fewer in 2026 than originally planned. Although new
cost pressures and declines in certain revenues did emerge, reduced expenditures and
transfers in from the closing Urban Renewal Fund (302) are set to improve the fund balance of
the General Fund.
Other key highlights of the amended 2026 budget include:
• New King County Parks Levy Fund (Fund 102): A dedicated Fund 102 now isolates
King County Parks Levy revenues, previously commingled in Fund 301, strengthening
compliance and facilitating the hiring of a Parks Capital Improvement Project (CIP)
Manager while ensuring no new costs to the General Fund.
• Urban Renewal Fund Closure: Fund 302 (Urban Renewal) is set to be formally closed,
returning its remaining balance to the General Fund as a one-time fiscal benefit.
• City Facilities Revenue Loss: Fund 306 (City Facilities) is affected by an $841,937
revenue loss following the expiration of a property lease. This reduction is contained
within the fund and does not affect General Fund operations.
• Utility Funds Reclassification: A vacant position has been strategically repurposed
into a shared Utilities Project Manager serving Water, Sewer, and Surface Water
operations. This shared role increases City project management expertise across the
entire utility portfolio. Even with this strategic organizational change, in 2026 all three
funds are budgeted for lower expenditures than in 2025.
• Self -Insurance Healthcare Adjustments: Premium contributions to the Active
Employee Self -Insurance Fund (Fund 502) are set to be $609,000 lower than originally
planned. This results in lower expenditures for all other funds Citywide but reduces the
corresponding revenue in this fund. Excess -loss coverage increased by $200,000 to
guard against catastrophic claims.
4
II. General Fund
General Fund - Revenue,
Revenue
General Revenue
Property Taxes
Retail Sales Tax
Business & Occupation Taxes
Use Tax
Admissions Tax
Utility Taxes
Interfund Utility Tax
Gambling/Excise Taxes
Expenditures, Changes in Fund Balance
Original Amended Difference
2026 2026 2026
$ 12,215,213 $ 12,215,213 $ -
24,497,095 24,497,095 -
2,424,000 2,424,000 -
1,041,820 1,041,820 -
885,012 885,012 -
4,702,390 4,702,390 -
3,364,735 3,364,735 -
4,724,500 4,724,500 -
Original-to-
Amended
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Total General Revenue
53,854,765
53,854,765
-
0.0%
Licenses and Permits
Business Licenses & Permits
3,479,655
3,479,655
-
0.0%
Rental Housing License
63,000
63,000
-
0.0%
Building Permits and Fees
1,998,800
1,998,800
-
0.0%
Franchise Fees
688,696
688,696
-
0.0%
Total Licenses and Permits
6,230,151
6,230,151
-
0.0%
Intergovernmental Revenue
Sales Tax Mitigation
180,756
180,756
-
0.0%
Seattle City Light Agreement
2,832,836
2,832,836
-
0.0%
Grants
824,177
1,024,177
200,000
24.3%
State Entitlements
705,555
880,555
175,000
24.8%
Total Intergov't Revenue
4,543,324
4,918,324
375,000
8.3%
Charges for Services
General Government
9,720
9,720
-
0.0%
Security
988,255
988,255
-
0.0%
Transportation
20,000
20,000
-
0.0%
Plan Check and Review Fees
662,000
662,000
-
0.0%
Culture and Rec Fees
781,045
756,045
(25,000)
-3.2%
Total Charges for Services
2,461,020
2,436,020
(25,000)
-1.0%
Fines and Penalties
384,405
384,405
-
0.0%
Miscellaneous Revenue
1,044,549
1,107,549
63,000
6.0%
Indirect cost allocation
3,267,278
3,267,278
-
0.0%
Grand Total Revenue
71,785,492
72,198,492
413,000
0.6%
Sale of Land
5,000,000
4,200,000
(800,000)
-16.0%
Transfer from Public Safety Plan
1,317,849
1,317,849
-
0.0%
Transfer from Land, Rec, & Park Dev
101,788
-
(101,788)
-100.0%
Transfer from Urban Renewal
-
731,255
731,255
0.0%
Total Revenue
$ 78,205,129
$ 78,447,596
$ 242,467
0.3%
5
General Fund - Revenue, Expenditures, Changes in Fund Balance
Expenditures
City Council
Mayor's Office
Finance Department
Parks and Recreation
Community Development (DCD)
Municipal Court
Police Department
Fire Department
Public Works Department
Non -Departmental
Adopted
Amended Difference
2026 2026 2026
431,254 $ 456,810 $ 25,556
10,015,887 10,137,137 121,249
4,429,561 4,666,108 236,547
7,050,622 6,886,199 (164,423)
5,978,627 5,854,564 (124,063)
2,445,958 2,504,217 58,259
29,659,883 29,515,597 (144,287)
1,410,125 1,309,887 (100,238)
10,205,851 10,176,496 (29,355)
2,497,046 2,007,046 (490,000)
Original -to -
Amended
5.9%
1.2%
5.3%
-2.3%
-2.1 %
2.4%
-0.5%
-7.1 %
-0.3%
-19.6%
Total Department Expenditures
Transfers - Debt Service
Transfers - Capital, Other
Transfers - Contingency
74,124,816
3,784,347
702,450
73,514,061
3,784,347
700,000
Total Transfers
Total Expenditures
4,486,797
78,611,612
4,484,347
77,998,407
(610,755)
(2,450)
(2,450)
(613,205)
-0.8%
0.0%
-0.3%
0.0%
-0.1 %
-0.8%
Change in Fund Balance
$ (406,483) $
449,189
$ 855,672
-210.5%
6
Misc Revenue 1°
Charges for Services, 3%
Indirect CostAllocation, 4%
-mmssms,
Licenses & Permits, 8%
General Fund Revenues and Transfers In by Type
.... Transfer In From Fund 305 (Debt Service),
2%
All Other Taxes, 21%
„agog
Properfy Taxes, 16%
One -Time
Revenues
Grants, 1%
Sale of Capital Assets, 5%
General Fund Expenditures By Type
Debt Service, 5% Machinery & Equipment,
0.2%
Supplies, 2%
I / /
Transfers Out to Other Funds,
Services, 25%
Wages,„45%, • --.....,.......„.„.„..„,...„
\ \ \ \
Inter-
governmental
Valley
Communications,
2%
icbriE4611, 1%
Transfer In From
Fund 302 (Fund
Closure), 1%
Intergov.
Other,
0.3%
7
Citywide
Changes
Genera
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2026
Original
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2026
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Amended
Pi
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Taxes resulting from Authorizing
Cannabis Sales
175,000
175,000
Lower Proceeds Estimate from Fire
Station Sale
(800,000)
(800,000)
Lower Records Storage Costs Associated
with Fire Station Sale
(490,000)
490,000
Urban Renewal Fund Closure, Transfer in
Proceeds
731,255
731,255
Administrative Fix: Correcting Calculation
Error from Original Budget
(27,552)
(2,450)
(25,102)
City Council
Councilor Pro Tem Position Mandated
19,259
(19,259)
All Other Labor Changes
6,297
(6,297)
Mayor's Office
State Mandated Public Defense Cost
Increase
60,000
(12,963)
State of the City Event Costs
15,000
(12,593)
Strategic Plan 2026 Costs
50,000
19,259
People's Project One -Time Costs
10,000
(19,629)
Community Leadership Initiative
10,000
(25,186)
Hazelnut Newsletter Costs
11,000
51,481
Minor Home Repair Costs
25,000
(26,665)
Increased State and Federal Lobbying
Costs
21,500
(69,632)
Labor Cost Changes
(81,251)
122,592
Finance
Budgeting Software (OpenGov)
151,800
(151,800)
Liability Insurance Cost Changes
105,882
(105,882)
Labor Cost Changes
(21,135)
21,135
Parks and Recreation
4 Culture Grant
38,000
38,000
-
Youth Amateur Sports Grant
75,000
75,000
-
Department of Natural Resources Grant
125,000
125,000
-
Park Ranger Moved to Police Department
(74,236)
(170,505)
96,269
Contracted Security No Longer Needed
(96,000)
96,000
Misc Costs Reduced and Reallocated
from Recreation to Parks
(1,009)
1,009
All Other Labor Changes
(134,909)
134,909
Department of Community
Development (DCD)
Labor Cost Changes
(124,063)
124,063
Municipal Court
Better Life Contract
45,000
(45,000)
Labor Cost Changes
13,259
(13,259)
Police Department
Park Ranger Labor Costs
145,505
(145,505)
Park Ranger Ancillary Costs
25,000
(25,000)
Park Ranger Truck Costs
9,025
(9,025)
Reduction in PD Costs to Offset Parks
Ranger Costs
(78,530)
78,530
Costs for SCORE Jail Services Previously
Overestimated
(215,369)
215,369
Liability Insurance Cost Changes
76,607
(76,607)
All Other Labor Changes
(106,524)
106,524
8
Genera Fund Line -Item Changes, 2026 Original Adopted to 2026 Original Amended
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Fire De.artment
Retiree Medical Contribution Chan.es
100,238
100,238
Public Works
Increased Re.air Costs
Utilities Costs Resulting from Lease
Endin.
Reduced Rent/Lease Costs
Property and Liability Insurance Cost
Chan.es
All General Fund Labor Chan.es
50,000
76,000
47,105
87,115
Total General Fund $(387,000) $629,467 $(610,755) $(2,450)
21,135
47,105
87,115
$855,672
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General Fund Revenue and Transfers In
On a net basis, General Fund revenues decrease by $387,000 relative to the original budget.
The primary driver is an $800,000 downward revision to anticipated Fire Station 51 sale
proceeds: a one-time adjustment that does not diminish the City's recurring revenue base.
Working in the opposite direction, new cannabis sales tax revenue and the transfer of
remaining Urban Renewal Fund balances partially close that gap.
New Cannabis Sales Tax Revenue
Tukwila's authorization of cannabis retail sales in 2025 introduces an estimated $175,000 in
new, recurring State Entitlement revenue for 2026. As the local retail market matures, this
revenue stream is expected to grow in future budget cycles.
Reduced Fire Station Sale Proceeds
The adopted budget projected $5,000,000 in one-time proceeds from the sale of the former
Fire Station 51 property. Updated market conditions have reduced that estimate by $800,000,
bringing the revised projection to $4,200,000. Because these are one-time proceeds, the
adjustment has no bearing on the City's recurring revenue outlook.
Urban Renewal Fund Closure — Transfer to General Fund
With its original economic development purpose fulfilled, Fund 302 (Urban Renewal) is set to
formally close in 2026. The remaining balance of $731,000 transfers to the General Fund upon
closure. This is a one-time, non -recurring benefit that bolsters the City's near -term fiscal
position.
Grant Revenues
The Parks and Recreation Department secured three additional grants totaling $238,000: a 4
Culture Grant ($38,000), a Youth Amateur Sports Grant ($75,000), and a Department of
Natural Resources Grant ($125,000). Each grant is fully offset by a corresponding program
expenditure, producing no net impact on the fund balance while expanding community
programming capacity.
Note: Public Safety Sales Tax
After new authorization from the Washington State Government, City Council approved a 0.1
Public Safety Sales Tax after this amendment was finalized; the associated revenue,
estimated to be $2.5 million, is therefore not reflected in these figures. This sales tax increase
is set to be implemented April 1, 2026. The City anticipates incorporating this new revenue
source into the 2027-2028 biennial budget.
11
General Fund Expenditures and Transfers Out
General Fund expenditures decline by approximately $611,000 in the 2026 amended budget.
Favorable pension rates, one-time savings from the anticipated Fire Station 51 property
transaction, and lower contracted services costs collectively outpace new investments in
technology modernization, community programming, and higher insurance premiums. The
sections below detail the most significant changes by functional area.
Labor Cost Changes
The most significant driver of expenditure savings ($636,000) stems from reduced labor costs.
This decrease is primarily the result of lower state -mandated pension contribution rates, lower
COLA (cost of living adjustment) rate than originally budgeted, as well as more favorable
health insurance premiums than initially projected. A more comprehensive breakdown of these
adjustments is detailed in the citywide labor costs section later in this document.
Public Safety and Justice
Public safety accounts for the largest share of General Fund spending. This amendment
makes targeted structural adjustments, reorganizing personnel and capturing contract savings,
while preserving frontline service levels.
• Park Ranger Reorganization (Net Zero Impact): Originally housed in Parks and
Recreation when the position was created, the Park Ranger has been reassigned to the
Police Department to align this public safety officer with clearer operational command.
The move is budget -neutral by design: Parks eliminated its private security contract and
reduced interfund transfers, while the Police Department trimmed some supplies and
services to absorb the position's full cost. Net General Fund impact: zero.
• SCORE Jail Services ($215,000 savings): The City's required contributions to the
South Correctional Entity (SCORE) are lower than previously expected, providing a
meaningful cost savings.
• State -Mandated Public Defense Increase ($60,000 cost): State -level changes
regarding public defense case level standards have required the City to increase its
level of Public Defense services. This is a mandated cost increase from the Washington
State government.
Operational Efficiencies and Technology
• OpenGov Budgeting Software ($151,800 cost): The budget allocates $151,800 to
deploy OpenGov budget development and planning as well as tax and revenue
software, modernizing the City's financial infrastructure. This investment, combining
one-time implementation costs with ongoing licensing, will streamline how the City
prepares, monitors, and communicates its budget, delivering long-term gains in
efficiency, transparency, and accuracy for Finance staff, elected officials, and the public.
12
• Records Storage Cost Savings — Fire Station Sale ($490,000 savings): The sale of
Fire Station 51 in 2026 requires considerable one-time storage costs. During 2025,
these costs were determined to be approximately $510,000, which lowers expected
expenses by $490,000.
Com unity Services and Governance
This amendment directs targeted funding toward community programs and long-range
planning aligned with the City Council's strategic priorities:
• People's Project community engagement (one-time): +$10,000
• Community Leadership Initiative: +$10,000
• Minor Home Repair Program: +$25,000, filling a gap left by the reduction of certain
federal funding to help residents maintain safe, habitable housing.
• Strategic Plan development: +$50,000 (the first half of a $100,000 two-year initiative
extending into 2027), charting the City's long-term policy direction.
• State of the City Event Costs: +$15,000
• Increased State and Federal Lobbying Costs: +$21,500
• Hazelnut Newsletter Production Costs: +$11,000
• Municipal Court Better Life Community Development Contracted Services: +$45,000,
provides case management services to individuals.
13
III. All Funds
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198,072
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(93,518)
(113,675)
(12,763)
(120,180)
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(21,949)
200,000
80,751
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2026
Expenditures
Amended
$77,998,407
0
77,998,407
1,644,765
198,072
73,000
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10,248, 647
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11,023,093
15,917,066
3,287,832
17,088,102
47,316,093
4,946,807
7,031,880
599,903
12, 578, 590
82,000
CO
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2026
Expenditures
Original
$78,611,612
0
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1,656,409
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25,773,974
11,116,611
16,030,741
3,300,595
17,208,282
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6,831,880
519,152
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$242,467
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242,467
0
297,220
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(608,841)
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2026
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$ 78,447,596
120,000
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1,047,750
297,220
98,100
1,443,070
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10,254,836
13,101,957
2,787,500
14,978,410
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6,093,106
8,346,309
474,514
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120,000
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8,955,150
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Fund 000 - General
Fund 105 - Contingency
Total General & Contingency
Fund 101 - Hotel/Motel Tax
Fund 102 - KC Parks Levy
Fund 109 - Drug Seizure
Total Special Revenue Funds
Total Debt Service Funds
Fund 103 - Residential Streets
Fund 104 - Bridges & Arterial Streets
Fund 301 - Land Acq, Rec, Park Develop
Fund 302 - Urban Renewal
Fund 303 - General Government Imp
Fund 304 - Fire Improvements
Fund 305 - Public Safety Plan
Fund 306 - City Facilities
Total Capital Projects Funds
Fund 401 - Water
Fund 402 - Sewer
Fund 411 - Foster Golf Course
Fund 412 - Surface Water
Total Enterprise Funds
Fund 501 - Equip Rental & Replacement
Fund 502 - Self -Insured Healthcare Plan
Fund 503 - LEOFF I Self -Ins Health Plan
Total Internal Service Funds
Fund 611 - Firemen's Pension
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All
General Fund
Funds
Lime- ten Changes
JJJJJJJ,' %%/9 Illlluoi
2026II
$ (387 000)
Orig: a Acbpted to 2026 Original Ame■ded
629 467
:610,755)
(2,450)
855 672
Hotel/Motel Tax Special Revenue Fund (101)
abor Cost Changes
King County Parks Levy Special Revenue Fund (102, New Fund)
(11,644)
11.644
Parks Levy Increased And Collected in
102
297.220
297.220
Parks Capital Improvement Projec
(CIP) Manager
Parks CIP Manager Ancillary Costs
Arterial Street Fund (104)
196,072
2,000
(196,072)
(2,000)
abor Cost Changes
Land Acquisition, Recreation, & Park Development (301)
96,480
(96,480)
Transfer out to GF removed
Administrative Fix: REET Revenues
Collected in 305 instead of 301
Urban Renewal Fund (302)
(500,000)
(74,236)
(500,000)
74,236
Closure and Transfer into General Fund
Public Safety Plan (305)
738,386
(738,386)
Administrative Fix: REET Revenues
Collected in 305 instead of 301
City Facilities Fund (306)
500.000
(500,000)
Business No longer leases City Property
Utility Funds (401, 402, 412)
(841,937)
(841,937)
Liability and Property Insurance Cost
Changes
Utilities Project Manager Ancillary Costs
Reduced Contracted Services Costs
Labor Cost Changes, includes Utilities
Project Manager Replacing Unused
Position
Golf Fund (411)
60,385
1,500
(44, 817)
(344,440)
(60,385)
(1,500)
44,817
344.440
lability Insurance Cost Changes
Labor Cost Changes
Equipment Rental Fund (Fleet, 501)
10.855
(23,618)
(10,855)
23,618
Park Ranger Truck Revenues for
Operations, Maintenance, and
Replacement
Labor Cost Changes
9,025
Insurance - Active Employees, Self -Insurance Fund (502)
(21,950)
9,025
21.950
Insurance Contributions and Insurance -
Related Expenditures
(608,841)
Insurance - LEOFF I Retirees, Self -Insurance Fund (503)
200.000
(808,841)
Contributions, Medical Costs, and
Dental Costs
44.638
80,751
125,389
Total All Funds $(1,576,171) $129,467 $(409,181) $161,700 $(1,192,092)
15
Citywide Personnel and Labor Summary
At the midpoint of each biennium, the City recalibrates labor cost assumptions using the most
current rate information from state agencies, collective bargaining outcomes, and insurance
carriers. For 2026, that recalibration produced approximately $941,000 in citywide labor cost
reductions and was the single largest driver of the General Fund's improved position. The
savings are concentrated in pension contribution rates, which the Washington State
Department of Retirement Systems set well below the levels assumed in the original budget.
ates Affecting Labor Costs
The table below compares the key rates underlying the City's labor cost calculations,
highlighting the movement from adopted to amended assumptions:
Rates Affecting Labor Costs
Cost of Living Adjustment (COLA)
Original
4.2%
Amended
2.7%
Change
1.5%
Social Security and Medicare Taxes (FICA)
7.65%
7.65%
-
Department of Retirement Systems:
Law Enforcement Officers and Fire Fighters
Retirement System (LEOFF)
5.32%
5.32%
-
Public Safety Employees Retirement System
(PSERS)
9.51 %
7.11 %
-2.40`/o
Public Employees Retirement System (PERS)
9.11%
5.58%
- .53%
Labor & Industries (Workers Compensation)
5.00%
10.49%
5.49%
Paid Family and Medical Leave (PFML)
0.21%
0.26%
0.05%
Disability and Life Insurance
5.0%
5.0%
-
Medical Insurance Premiums YoY Increase
10.0%
8.0%
-2.O%
Dental Premiums YoY Increase
0.0%
0.0%
-
Vision Premiums YoY Increase
0.0%
0.0%
-
Four rate movements stand out. First, the Cost -of -Living Adjustment (COLA) fell from 4.2% to
2.7%, reflecting a more modest wage environment than originally projected. Second, PSERS
and PERS pension rates dropped by 2.40% and 3.53% percentage points respectively; these
are actuarial determinations by the Washington State Department of Retirement Systems that
represent the amendment's largest source of labor savings. Third, medical insurance
premiums increased at 8% year -over -year rather than the budgeted 10%, a favorable 2%
variance. Fourth, Workers' Compensation rates rose from 5% to 10.59%, a mandate from the
Washington State Department of Labor & Industries. While this increase is the most visible
cost pressure on the labor side, pension and COLA savings more than absorb it.
16
Staffing Cost Changes by Fund
The table below details the net change in budgeted labor costs by department and fund.
Negative values indicate savings; positive values indicate cost increases.
Fund
General Fund
(Reduction) /
Increase in Labor
Costs
(635,680)
City Council
6,297
Mayor's Office
(81,251)
Finance Department
(21,135)
Recreation Department
(25,469)
Community Development (DCD)
(124,063)
Municipal Court
13,259
Police Department
38,981
Fire Department
(100,238)
Public Works Dept
(14,707)
Park Maintenance Dept
(254,945)
Street Maintenance Dept
(72,408)
Hotel/Motel Tax Special Revenue (101)
(11,644)
Arterial Street Fund (104)
96,480
Water Utility Fund (401)
(78,947)
Sewer Utility Fund (402)
(72,724)
Foster Golf Course (411)
(23,618)
Surface Water Utility Fund (412)
(192,769)
Equipment Rental (501)
Total Labor Cost Changes
21,950
(940,851)
Notable Staffing Changes, 2026 Amended Budget
Three personnel actions merit individual discussion:
Parks Ranger — Transfer from Parks to Police Department
The Parks Ranger, a public safety officer introduced in the 2025 budget, has moved from
Parks Maintenance to the Police Department, placing the position under a direct public safety
chain of command. As detailed in Section II, offsetting reductions ensure this transfer is
budget -neutral. Parks FTE decreases by 1.0; Police FTE increases by 1.0.
Despite being budget neutral to the General Fund, this distorts the size of the change in
staffing costs for the Police Department and Park Maintenance Department outlined in the
17
table above. Absent this organizational change, the reduction in staffing costs for Park
Maintenance would be smaller and Police would have a reduction in staffing costs rather than
an increase.
Municipal Court Judge Pay Increase
Although still maintained at a 0.9 FTE, the City Council approved the Municipal Court Judge
compensation increase of 11 %, consistent with the salary set at 90% of District Court Judges
as adopted annually by the Washington Citizens' Commission of Salaries for Elected Officials.
This results in Municipal Court labor costs increasing in the amended 2026 budget, despite
otherwise favorable labor cost changes.
Utilities Project Manager — Repurposed Position Across Utility Funds
As detailed later in this document, the vacant Green Infrastructure Coordinator in Fund 412
(Surface Water) has been reclassified as a Utilities Project Manager shared across all utility
funds. The restructuring responds to the City's growing cross -utility project management needs
and is cost -neutral on a combined basis.
Notable Staffing Changes That Took Place in 2025
The following two personnel changes occurred in 2025. These changes are reflected in the
2026 Amended Budget but actually took place during the 2025 operating year.
Environmental Impact Statement (EIS) Project Director Contracted Position Extended
In the original 2025-2026 budget, the EIS Project Director contracted position (0.6 FTE) was
set to expire in 2025. This contract was extended into 2026. This increases budgeted
expenditures for the Arterial Street Fund (104) over the baseline assumptions in the original
budget.
Temporary Term -Limited Senior Human Resources Analyst
During 2025, the City hired a temporary term -limited Senior Human Resources Analyst for a
two-year period, which was not included in the original 2025-2026 budget. This position is
currently set to expire 12/31/2026.
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FTE Count by Fund/Department
Fund/Department
General Fund
2025
Actual
FTE
250.44
2026
Original2026
Adopted FTE
249.44
Amended
FTE
250.44
2026
j Adopted vs
2026
Amended
1
Notes
City Council
8
8
8
0
Mayor's Office
31.29
30.29
31.29
1
Temporary Human
Resources Position Added
in 2025, Term Expires 2027
Finance
15
15
15
0
Parks and Recreation
24.75
25.75
24.75
-1
Parks Ranger Moved to
Police
Community
Develo• ment
28.75
28.75
28.75
0
Municipal Court
11.9
11.9
11.9
0
Police
101
100
101
1
Parks Ranger Moved to
Police
Public Works
29.75
29.75
29.75
0
Hotel/Motel Tax (101)
0.25
0.25
0.25
0
Parks Levy Fund
102
N/A
N/A
1
1
Parks CIP Manager
Arterial Street Fund
(104)
6.1
5.5
6.1
0.6
EIS Project Director
contract extended into
2026
Water (401)
8.56
8.56
8.76
0.2
Reallocation of Utilities
Project Manager
Sewer (402)
5.87
5.87
6.17
0.3
Reallocation of Utilities
Project Manager
Golf Course (411)
10.5
10.5
10.5
0
Surface Water (412)
18.28
18.28
17.78
-0.5
Reallocation of Utilities
Project Manager
Equipment Rental
501
Total
5
305
5
303.4
5
306
0
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New King County Parks Levy Fund (Fund 102)
King County Parks Levy revenues, previously collected with other capital resources in Fund
301 (Land Acquisition, Recreation & Park Development), now flow into a dedicated Fund 102,
isolating $297,000 in levy receipts for clearer tracking. This structural change strengthens the
City's compliance with funding requirements and provides residents with a transparent view of
how levy dollars are spent.
The levy funding supports the hiring of a new Parks Capital Improvement Project (CIP)
Manager. This position provides dedicated project oversight to ensure Parks capital
improvements are delivered on time and within budget. The position is fully funded between
Fund 102 and Fund 301, with no cost to the General Fund.
Land Acquisition, Recreation & Park Development Fund (Fund 301)
An administrative correction reclassifies $500,000 in Real Estate Excise Tax (REET) revenues
to be collected directly in Fund 305 (Public Safety Plan). In the original budget, these revenues
were transferred into fund 305 after being collected in fund 301.
This is not a substantive change to the budget, even though it concerns a high dollar amount.
This strengthens accounting accuracy and budgetary reporting.
Urban Renewal Fund (Fund 302)
Having fulfilled its original economic development and redevelopment mission, Fund 302 is set
to formally close. The plan in the amended budget is to transfer the remaining $738,000
balance to the General Fund upon closure, providing the one-time fiscal benefit described in
Section II. No ongoing obligations remain against this fund.
City Facilities Fund (Fund 306)
The expiration of a commercial property lease removes $842,000 in recurring revenue from
Fund 306. Expenditures remain unchanged. This revenue loss is contained entirely within the
City Facilities Fund and does not affect General Fund operations.
20
Utility Funds (Funds 401, 402, and 412)
The most consequential change is the conversion of a vacant Green Infrastructure Coordinator
position —previously budgeted solely in Fund 412 (Surface Water) —into a Utilities Project
Manager shared across all three funds. This restructuring responds to the City's evolving
infrastructure needs by deploying project management expertise across the full utility portfolio.
Because the Utilities Project Manager carries a higher classification and compensation level,
the utility funds changed their contracted services expenditures to offset the difference,
resulting in this position classification change having a net -zero effect on each utility budget.
All three utility enterprise funds realize expenditure reductions in the amended budget.
Self -Insured Healthcare Funds
Tukwila self -insures healthcare costs through two dedicated funds: Fund 502 for active
employees and Fund 503 for retired Law Enforcement Officers and Fire Fighters (LEOFF I).
Active Employee Self -Insurance Fund (Fund 502)
Actual claims experience came in below the assumptions embedded in the adopted budget,
allowing the City to reduce premium contributions from participating departments by $608,841.
These savings flow through to every fund that contributes to the self-insurance pool —including
the General Fund and all three utility funds —and represent one of the amendment's most
broadly distributed cost reductions.
At the same time, the City prudently increased excess -loss insurance premiums within Fund
502 by $200,000 to maintain adequate protection against catastrophic individual claims. Within
Fund 502 itself, expenditures rise by $200,000 while revenues (inter -fund contributions) fall by
$608,841—a net accounting shift that reflects the recalibrated contribution levels rather than a
deterioration of the fund's financial health.
LEOFF I Retiree Self -Insurance Fund (Fund 503)
Fund 503 covers healthcare costs for retired firefighters and law enforcement officers under
the LEOFF I retirement system: a closed population that naturally decreases over time. Annual
actuarial adjustments in this amendment reduce inter -fund contributions by $44,638 while
healthcare expenditures within the fund increased by $80,751. These are routine actuarial
recalibrations.
21