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Home My WebLink AboutFIN 2026-04-13 COMPLETE AGENDA PACKETCITY OF TUKWILA City Council Committee Meeting Finance and Governance Monday, April 13, 2026 at 5:30 p.m. Location: City Hall, Hazelnut Conference Room, 6200 Southcenter Boulevard, Tukwila, WA 98188 Join remotely: 1-253-292-9750, Access Code: 441656166# or click here to join the meeting AGENDA 1. BUSINESS AGENDA a. Resolutions to Adopt Fund Balance Policy & Amend Financial Policies Tony Cullerton, Deputy Finance Director b. Request for Additional Employees for Municipal Court Kimberly Walden, Municipal Court Judge c. Discussion on Business and Occupation Tax (B&O) Tax Rates & Business License Fees Adam Schierenbeck, Senior Fiscal Coordinator d. February 2026 Monthly Financial Report Tony Cullerton, Deputy Finance Director 2. MISCELLANEOUS a. Draft 2027-2028 Budget Process Calendar Aaron BeMiller, Finance Director RECOMMENDED ACTION Forward to 04/27 COW & Pg. 2 05/04 Regular Forward to 04/27 COW & 05/04 Regular Discussion Only Discussion Only Discussion Only Pg. 20 Pg. 27 Pg. 33 This agenda is available at www.tukwilawa.gov, and in alternate formats with advance notice for those with disabilities. Tukwila Council meetings are audio/video taped, and available at www.tukwilawa.gov If you are in need of translation or interpretation services at a Council meeting, please contact us at 206-433-1800 by 12:00 p.m. on the meeting date. City of Tukwila Thomas McLeod, Mayor Marty Wine, City Administrator AGENDA BILL ITEM NO. 1.A. Agenda Item Policies Sponsor Tony Cullerton, Deputy Finance Director Resolutions to Adopt a Fund Balance Policy and Update Financial Legislative History April 13, 2026 Finance & Governance Committee April 27, 2026 Committee of the Whole May 4, 2026 Regular Meeting Recommended Motion ❑ Discussion Only ❑x Action Requested MOVE TO approve resolutions to adopt a Fund Balance Policy and update the existing Financial Policies. EXECUTIVE SUMMARY Staff is recommending a new Fund Balance Policy to clearly explain how the City manages and uses its reserves. This policy builds on what we already do and brings it in line with current standards and best practices. It will make our approach easier to understand and more consistent over time. This Fund Balance Policy will modify the Reserves portion of the Financial Policies which will be subsequently updated. Staff is asking for Council approval to move this item to the April 27 Committee of the Whole meeting for further discussion. DISCUSSION The City of Tukwila has a strong history of managing its finances responsibly and planning for the long term. Its Financial Policies, adopted through Resolution 2014, provide guidance on how the City handles its budget, revenues, expenses, and reserves. These policies also make it clear that the City should maintain enough reserves to keep services running, manage financial risks, and handle unexpected situations. While these policies include some guidance on reserves, that guidance is fairly limited and part of a larger set of financial policies. Over time, the City has seen the need for clearer and more detailed direction on how fund balance should be managed. Creating a separate Fund Balance Policy helps address this by clearly defining reserve targets, fund balance categories, and when reserves can be used. The proposed Fund Balance Policy builds on the existing guidance and aligns with GASB Statement No. 54 and widely accepted public finance practices. It also sets clearer expectations for maintaining reserves, using one-time funds, and increasing balances when needed. Overall, this policy will make the City's financial practices easier to understand, more consistent, and better positioned for long-term stability. ATTACHMENTS • Draft Resolution — Adopting Fund Balance Policy • Draft Resolution — Updating Financial Policies 2 DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE CITY OF TUKWILA FUND BALANCE POLICY WHEREAS, the City Council of the City of Tukwila is committed to maintaining sound financial management practices and ensuring the long-term fiscal stability of the City through responsible stewardship of public resources; and WHEREAS, the City has previously established reserve guidance within its Financial Policies, adopted as Resolution No. 2096 on March 14, 2024, including Section 9, Reserves, which outlined minimum reserve levels and the treatment of certain reserve balances; and WHEREAS, the City Council desires to update and expand these reserve provisions in order to provide a clearer and more comprehensive framework governing fund balance classifications, reserve levels, and the appropriate use of financial reserves; and WHEREAS, the Fund Balance Policy establishes guidelines to support financial resiliency, maintain adequate reserves for economic uncertainty and emergency conditions, and ensure consistent and transparent financial decision making. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Findings Incorporated and Adoption of the Fund Balance Policy. The above "whereas" recitals are adopted as findings in support of this resolution, and the City of Tukwila Fund Balance Policy attached hereto as Exhibit A is adopted. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2026. ATTEST/AUTHENTICATED: 2026 Legislation: Fund Balance Policy Version: 04/06/2026 Staff: T. Cullerton Page 1 of 2 3 Andy Youn-Barnett, CMC, City Clerk Armen Papyan, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Office of the City Attorney Attachment: Exhibit A— City of Tukwila Fund Balance Policy 2026 Legislation: Fund Balance Policy Version: 04/06/2026 Staff: T. Cullerton Page 2 of 2 4 CITY OF TUKWILA FUND BALANCE POLICY Purpose The purpose of the Fund Balance Policy is to establish guidelines for the classification and use of fund balance in accordance with Generally Accepted Accounting Principles (GAAP) and the requirements of the Governmental Accounting Standards Board (GASB) Statement No. 54. This policy is designed to ensure long-term financial stability and sound fiscal management for the City of Tukwila by maintaining adequate fund balance levels and providing a framework for appropriate use. Scope This policy applies to all City funds, where applicable, including the General Fund, Special Revenue Funds, Internal Service Funds, and Enterprise Funds. While this policy is centered on the General Fund, other funds shall maintain balances sufficient to meet their operational needs, consistent with the purpose of each fund. Fund Balance Policy Page 1 of 7 Version: 02/17/2026 5 List of Funds Fund # Funds Type Applicable 000 General Fund General Fund Yes 101 Hotel/Motel Special Revenue Yes 103 Residential Street Special Revenue Yes 104 Bridges and Arterial Street Special Revenue Yes 105 Contingency Special Revenue No 109 Drug Seizure Special Revenue No 200 LTGO Debt Svs Debt Svs No 213 UTGO Bonds Debt Svs No 206 LID Guaranty Debt Svs No 233 2013 LID Debt Svs No 301 Land Acquisition, Rec & Parks Dev Capital Projects No 303 General Governmental Improvements Capital Projects No 304 Fire Improvements Capital Projects No 305 Public Safety Plan Capital Projects No 306 City Facilities Capital Projects No 401 Water Enterprise Yes 402 Sewer Enterprise Yes 411 Foster Golf Course Enterprise Yes 412 Surface Water Enterprise Yes 501 Equipment Rental Internal Svs Yes 502 Self- Insurance Healthcare Plan Fund Internal Svs Yes 503 Insurance - LEOFF 1 Internal Svs Yes 611 Firemen's Pension Fiduciary No 641 NoncityCustodial Fiduciary No Funds Where the Policy Does Not Apply The Fund Balance Policy is not applicable to the City's Contingency Fund, Drug Seizure Fund (100-Series), Debt Service Funds (200-level), Capital Project Funds (300-level), and certain Restricted/Fiduciary Funds (600-level). These funds are excluded because their resources are restricted, externally governed, or tied to fixed financial obligations, such as debt schedules or capital project timelines, and therefore do not accumulate Fund Balance Policy Version: 02/17/2026 Page 2 of 7 6 discretionary operating reserves for which minimum or maximum fund balance targets would apply. The City's Contingency Fund (Special Revenue Fund 105) The Contingency Fund is excluded because its balance is restricted for declared emergencies or extraordinary events and governed through separate statutory and budgetary authority. Drug Seizure Fund (Special Revenue 109) The Drug Seizure Fund is excluded from the Fund Balance Policy because its revenues are legally restricted for law -enforcement purposes and cannot be used for general governmental operations. The balance in this fund is governed by federal and state asset forfeiture laws and is expended based on allowable uses tied to police activities, training, equipment, or community safety initiatives. Because these resources do not function as discretionary operating reserves and their accumulation is driven by external enforcement activity rather than budgetary planning, establishing minimum or maximum fund balance targets is not appropriate. Debt Service Funds (200-Series) Debt Service Funds are legally restricted for the payment of principal and interest on outstanding debt. These funds do not retain ongoing operating reserves and are not intended to accumulate fund balance beyond required annual debt service payments or bond covenant provisions. Minimum or maximum fund balance targets are not relevant for these funds. Capital Project Funds (300-Series) Capital Project Funds account for the financing and construction of capital improvements and are typically funded through restricted revenues or bond proceeds. Fund balances fluctuate based on project timing and do not operate on a cyclical or recurring basis. Because resources in these funds are either restricted or committed for specific capital purposes, they are not intended to support general operating activities and therefore fall outside the scope of fund balance reserve requirements. Fiduciary Funds(600-Series) Fiduciary Funds accumulate funds that are legally restricted or held in a trustee or custodial capacity. These resources cannot be used for general governmental purposes, and their balances are governed by external requirements, or fiduciary standards rather than reserve policy standards. Applying minimum or maximum fund balance targets to these funds would be inappropriate. Fund Balance Policy Page 3 of 7 Version: 02/17/2026 7 Fund Balance Classifications In accordance with GASB Statement No. 54, fund balances will be reported using the following classifications: • Nonspendable Fund Balance — Amounts not in spendable form (e.g., inventory, prepaid items) or legally required to remain intact. • Restricted Fund Balance —Amounts constrained for specific purposes by external parties, constitutional provisions, or enabling legislation, or imposed by law. • Committed Fund Balance — Amounts constrained for specific purposes by formal action of the City Council, the City's highest level of decision -making authority. Such commitments can only be changed or removed by the same type of formal action. • Assigned Fund Balance — Amounts intended to be used for specific purposes but not formally committed. The authority to assign fund balance is delegated by the City Council to the City Manager and/or Finance Director. Assignments are typically made during the budget process or through administrative action consistent with Council direction. • Unassigned Fund Balance — Represents the residual classification for the General Fund and includes all amounts not contained in other classifications. The General Fund is the only fund that may report a positive unassigned fund balance. Fund balance policy targets are measured against end -of -year balances and are not tied to specific fund balance classifications. Priority of Use When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the City shall apply resources in the following order unless it is determined that it is in the City's best interest to modify the order on a case -by -case basis: 1. Restricted Fund Balance 2. Committed Fund Balance 3. Assigned Fund Balance 4. Unassigned Fund Balance This order of spending ensures that externally imposed restrictions are honored first, followed by Council -directed commitments, management assignments, and finally general resources. Fund Balance Policy Page 4 of 7 Version: 02/17/2026 8 Minimum Fund Balance Requirement At the close of each fiscal year, the City shall maintain an Unassigned Fund Balance in the General Fund equal to no less than 18% of prior year General Fund operating expenditures. This level is consistent with Government Finance Officers Association (GFOA) best practice guidance and is intended to provide adequate resources for cash flow needs, temporary revenue shortfalls, emergency expenditures, and economic downturns or other unforeseen events such as natural disasters. Unassigned Fund Balance may only be used for one-time purposes that do not create ongoing costs or for fiscal emergencies that compromise the City's ability to maintain essential services. A fiscal emergency may include, but is not limited to, catastrophic natural events, a sudden and significant loss of revenue, or other events posing material financial risk to the City. Any use of fund balance that reduces it below the minimum target must be approved by the City Council and include a replenishment plan to restore balances within three fiscal years, with semi-annual progress reporting. Under no circumstances shall Unassigned Fund Balance fall below 10% of prior year's General Fund operating expenditures without a formal Council emergency declaration. Maximum Fund Balance Threshold The City shall maintain an Unassigned Fund Balance in the General Fund not to exceed 25% of prior year's General Fund operating expenditures. The maximum threshold is intended to prevent the accumulation of reserves beyond what is necessary for prudent fiscal management while ensuring financial resources remain actively supporting government services and priorities. If balances exceed the maximum target, the excess should be designated for one-time strategic purposes, unless otherwise identified for a specific use, such as capital improvements, asset replacement, early retirement of outstanding debt, or other non- recurring expenditures. For purposes of calculating minimum and maximum fund balance targets, "operating expenditures" include all General Fund expenditures related to ongoing governmental operations, but exclude capital outlays, transfers to other funds, and debt service expenditures. This ensures that fund balance targets reflect normal operating activities and are not artificially impacted by one-time or non -operating transactions. Use of One -Time Revenues One-time or non -recurring revenues —such as year-end operating surpluses, proceeds from asset sales, legal settlements, or other non -operating revenues shall be used for one-time purposes, including capital investment, technology upgrades, debt reduction, enhancement of reserves, or initial funding for new programs expected to become self- sustaining. One-time revenues shall not be used to support ongoing operating expenditures. Use of these resources shall be aligned with the City's long-term financial planning objectives and communicated as part of the annual budget process. Fund Balance Policy Page 5 of 7 Version: 02/17/2026 9 Applicable Special Revenue Funds Applicable Special Revenue Funds include Hotel/Motel (101), Residential Streets (103), and Bridges and Arterial Streets (104). These funds must maintain positive cash flow and sufficient balances for ongoing operations but are not subject to minimum or maximum fund balance requirements. Proprietary Fund Reserve Treatment (400 & 500-Series) For Proprietary Funds (Enterprise and Internal Service Funds), reserve targets are expressed in terms of Net Position rather than Fund Balance. Because Proprietary Funds are operated in a business -like manner, reserve levels may be established based on factors such as operating expenses, system replacement and renewal needs, and debt service obligations. Reserve levels are intended to support rate stability, ensure the replacement of capital assets, and maintain compliance with applicable legal and regulatory requirements. Replenishment of Fund Balance In the event that the Unassigned Fund Balance is drawn down below the 18% threshold, the City shall develop a restoration plan to rebuild the balance within a reasonable period, not to exceed three fiscal years. Options for replenishment may include: • Expenditure reductions • Revenue enhancements • Collection of one-time revenues The General Fund reserve target is intended to serve as the City's primary fiscal stabilization mechanism for managing revenue volatility and unforeseen financial events. Natural Disasters In the event of a natural disaster, such as an earthquake, flood, windstorm, or other catastrophic event, the City may utilize unassigned fund balance to ensure continuity of essential government operations, protect public health and safety, and expedite recovery efforts. Expenditures may include, but are not limited to, emergency response services, temporary facilities, infrastructure repairs, and other urgent needs directly attributable to the disaster. Use of fund balance for this purpose must be authorized by the City Council and will include a replenishment plan to restore balances to policy levels. The City will also actively pursue available state and federal disaster relief funds, insurance recoveries, and other external resources to minimize reliance on fund balance. Emergency Declaration For the City to use fund balance in response to a natural disaster or similar event, an "emergency" must first be formally declared. An emergency exists when conditions threaten public health or safety, essential government services, or critical infrastructure, and immediate action is needed to protect the community. The declaration may be made by the Mayor or City Council. An emergency declaration provides the basis for accessing Fund Balance Policy Page 6 of 7 Version: 02/17/2026 10 fund balance, outlines the scope of response activities, and authorizes temporary adjustments to normal spending or operational procedures as allowed by law. Capital Reserve Policy The City may establish and maintain reserves within the Proprietary Funds, or other applicable funds to provide for capital replacement, infrastructure improvements, and technology upgrades. These reserves are intended to: • Ensure funding is available for major asset replacement without creating sudden financial stress on the operating budget. • Support the City's long-term capital improvement program (CIP). • Provide a buffer against unexpected capital needs or cost overruns. Reserves may be funded through annual appropriations, one-time revenues, or excess fund balance above policy minimums. Use of capital reserves shall require notification to the City Council at the next reasonable opportunity and must be consistent with adopted capital planning priorities. Roles and Responsibilities • City Council: Approves fund balance commitments, assignments, and policy changes. • City Manager: Recommends use of fund balance and proposes replenishment strategies. • Finance Director: Monitors fund balance levels, prepares fund balance reports, and advises on compliance with the policy. Monitoring and Reporting Fund balance levels will be monitored throughout the year and reported in the: • Annual Budget Document • Annual Comprehensive Financial Report (ACFR), and mid -year and year-end budget amendment updates to the City Council. Policy Review This policy should be reviewed at least every three years or more frequently, if necessary, due to changes in governmental accounting standards, financial condition, or best practices. Policy Exceptions Any deviations from this policy must be approved by a majority vote of the City Council and should be accompanied by documentation outlining the rationale and any mitigating strategies. Policy Name: Fund Balance Policy Adopted: Last Reviewed: Next Scheduled Review: Fund Balance Policy Page 7 of 7 Version: 02/17/2026 11 DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING THE CITY OF TUKWILA FINANCIAL POLICIES AT SECTION 9, RESERVES POLICY; AMENDING RESOLUTION NO. 2096 WHEREAS, the City Council of the City of Tukwila is committed to maintaining sound financial management practices and ensuring the long-term fiscal stability of the City through responsible stewardship of public resources; and WHEREAS, on May 20, 2024, the City Council adopted Resolution No. 2096, adopting Financial Policies for the City of Tukwila, which established reserve guidance within Section 9, Reserves; and WHEREAS, the City Council updated and expanded these reserve provisions in order to provide a clearer and more comprehensive framework governing fund balance classifications, reserve levels, and the appropriate use of financial reserves, collectively referred to as the Fund Balance Policy, which were adopted as Resolution No. , on April , 2026; and WHEREAS, the adoption of a formal Fund Balance Policy will replace and supersede certain reserve provisions contained in the City of Tukwila Financial Policies; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Amending Section 9 of the Financial Policies. The City of Tukwila Financial Policies at Section 9 are hereby amended to remove subsections b, c and e to read as follows: 2026 Legislation: Financial Policies Update Version: 04/06/2026 Staff: T. Cullerton Page 1 of 3 12 Section 9. Reserves (Cross reference: Resolution No. ####) a. Prudent financial management dictates that some portion of funds available to the City be reserved for future use. b. At the close of each fiscal year, the General Fund unassigned balance shall equal or exceed 'I8% and the Continnc y Fund resent ace shall eg ial or exceed 10% of the previous year General Fund revenue, exclusive of significant non operating nonrecurring revenues such as real estate sales or e transfers in from other funds. c. At the close of each fiscal year, the unrestricted balances of the Enterprise Funds shall equal or exceed 20% of the previous year revenue, exclusive of cC�l;ekFe+�12S�su+ re rri ch Zarss reaestate sales transfers in from th oer fi inrls or r� debt proceeds. d h Use or draw down of minimum balances shall occur only upon recommendation of City Administration and approval by City Council through a resolution. Should use or draw down occur, the City Administration shall establish a plan, no later than the end of the fiscal year following the year of decline, to restore the fund balance to the prescribed minimum level. The plan shall be presented to and approved by the City Council. c. A One time Revenue Reserve shall be established and maintained in the Contingency Fund. The One time Revenue Reserve shall be credited annually with 10% of the prior year one time revenues to the extent General Fund surplus for the y or is sufficient to cover the reserve funding. Use of the reserve shall occut only upon recommendation by City Odministration and approval by City Council resolution. f The City shall maintain a reserve in each of its self -insured health care funds in an amount equal to 1.5 times, or 150%, of the actuarially determined IBNR (incurred but not reported) balance. Use of the reserve shall occur only upon recommendation by City Administration and approval by City Council resolution. Section 2. Findings Incorporated and Adoption. The above "whereas" recitals are adopted as findings in support of this resolution, and the City of Tukwila Financial Policies attached hereto as Exhibit A are adopted. [signatures to follow] 2026 Legislation: Financial Policies Update Version: 04/06/2026 Staff: T. Cullerton Page 2 of 3 13 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2026. ATTEST/AUTHENTICATED: Andy Youn-Barnett, CMC, City Clerk Armen Papyan, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Office of the City Attorney Attachment: Exhibit A— Updated City of Tukwila Financial Policies 2026 Legislation: Financial Policies Update Version: 04/06/2026 Staff: T. Cullerton Page 3 of 3 14 Financial Policies Section 1. Purpose a. The City of Tukwila is accountable to the public and shall maintain the fiscal integrity of its operating, debt service, and capital budgets while providing an appropriate level of public services within the City's financial capabilities. b. The City's Financial Policies are intended to provide guidelines for the financial planning and internal financial management of the City. Section 2. Budgeting Cross references: TMC Chapter 3.30, Resolution 1951 a. The City of Tukwila shall prepare and adopt a biennial budget in accordance with RCW Chapter 35A.34, and Tukwila Municipal Code (TMC) Chapter 3.30. Fiscal years begin January 1 and end December 31. b. The budget shall be prepared with a priority -based approach that enables resources to be allocated to the programs and services that provide the greatest value to the community. c. The budget must be developed in accordance with the policies and priorities set forth in long-term policy documents including the Equity Policy, Strategic Plan, Comprehensive Plan, City Council and community priorities, and federal and state laws. d. Within each budget cycle, the budget should be structurally balanced, which means that ongoing expenditures shall be provided for by anticipated ongoing revenue and one-time revenue should only be used for one-time expenditures unless explicitly authorized by the City Council. e. The City shall maintain a six -year Capital Improvement Program and update it with each budget cycle to ensure that all costs associated with projects are addressed. f. As part of each biennial budget process, the City shall prepare six -year expenditure and revenue forecasts for the principal operating and capital funds. Revenues will be estimated on a conservative basis. g. The City Council may informally approve mid -year budget amendments by motion prior to the submission of a comprehensive formal budget amendment at the end of the fiscal year. h. The City's employee classification and compensation plan will be maintained in a manner consistent with Council policy, applicable state and federal collective bargaining laws, and valid comparable cities. Section 3. Revenues Cross references: TMC Title 3 a. The City will maintain a diversified and stable revenue system to shelter it from short-term fluctuations. Version: 5/17/2024 Page 1 of 5 15 b. The City shall develop and maintain a Revenue Guide that describes major revenue sources available to the City of Tukwila. c. Revenue sources should be reviewed in off -budget years to account for inflation, to stay in line with market, or to ensure cost recovery at a prescribed level depending on the revenue source. Section 4. Expenditures Cross references: - Purchasing Policy (Resolution No. 2015) - Procurement Card Policy (Resolution No. 1750) - Expense Reimbursement Policy (Resolution No. 1874) a. The City shall maintain expenditure categories according to state statute and administrative regulation known as the State Auditor's Budgeting, Accounting, and Reporting System (BARS). b. Operating expenditures within funds must be supported by the operating revenues generated by that fund. c. Purchasing will be conducted with appropriate internal controls, observe fair and ethical business practices, and use wise and prudent judgement in the expenditure of public funds. Section 5. Grants Cross references: Grant Policy/Procedure in progress a. The City shall, whenever practical and advantageous, pursue grant funding. All potential grants shall be examined carefully for matching requirements, and to determine whether programs must be continued with local resources after grant funds are exhausted. b. Staff shall obtain approval from the appropriate City Council Committee before applying for any grant requiring an unbudgeted or previously unidentified local match, and staff shall obtain City Council approval prior to accepting grant agreements in amounts above the Mayor's signing authority. Section 6. Capital Improvement Program (CIP) a. Transportation improvements will be coordinated with related improvements such as utility, landscaping, sidewalks, etc. b. Whenever feasible, capital improvements shall be coordinated with related improvements of adjacent jurisdictions. c. Capital Improvement Program projects shall, whenever possible, take advantage of grants, loans or other financing external to the City. If the proposed grants or mitigation are either not funded or are reduced, the City Council will reevaluate the respective project on the basis of its value and priority level placement in the Capital Improvement Program. Version: 5/17/2024 16 Page 2 of 5 j. d. General Fund support should not be relied upon for funding capital projects. Grants and/or dedicated and restricted revenue sources should be utilized prior to seeking General Fund support. e. Non -transportation capital projects and improvements should be funded by operating revenues, grants or bonds as determined in the six -year Financial Planning Model. f. Residential streets with safety issues, high traffic volumes, high pedestrian activity and poor roadway conditions will be considered the highest priority projects. g. Residential street designs will follow basic designs for arterials, collectors, and local access streets. Designs to accommodate individual properties shall be avoided. h. Design of connecting streets is strongly encouraged. i. For City -scheduled projects located on residential streets, the City will require the undergrounding of new electrical and communication facilities pursuant to TMC Chapter 11.28. Street and road improvement projects on slopes will include roadside plantings wherever feasible to help mitigate the land used for roadway and sidewalk improvements. k. Donation of the property needed for rights -of -way and easements shall be pursued. I. Latecomer agreements, where appropriate, shall be considered an acceptable means of funding capital projects, improvements and replacements, in whole or in part. m Right-of-way agreements for cable and electrical services should be utilized to discourage excessive wiring throughout the City. n. Current arterial street improvements determined in the six -year CIP may be funded through a Local Improvement District (LID) or financing external to the City. The City may participate using operating revenues, grants or bonds based on health and safety needs or public benefit. The City may participate in the funding by financing the preliminary engineering design and professional service costs associated with planning and creating the LID. o. A majority of property owners on a street may petition the City to set up an LID to pay for residential street improvement projects, sidewalks and undergrounding of utilities. The City will evaluate the possibility of paying for the design, preliminary engineering, construction engineering, and LID formulation. The residents will pay for undergrounding utilities in the street, undergrounding from the street to their residence, the actual construction costs, and any improvements on private property such as rockeries, paved driveways, or roadside plantings. Pursuant to TMC Chapters 3.56 and 3.60, the first 1/4 cent Real Estate Transfer Tax (REET) shall be dedicated to park and open space land acquisition, and the second 1/4 cent shall be used for arterial streets, along with the parking tax, unless the City Council enacts other priorities consistent with state law distribution of REET funds. P. Version: 5/17/2024 Page 3 of 5 17 q. Street and road improvement projects shall be evaluated for the inclusion of features that support the City's Parks, Recreation and Open Space (PROS) Plan and Transportation Element of the Comprehensive plan in order to encourage walking, bicycling, and use of public transit. r. Policies will be reviewed annually and in concert with the adoption of growth management policies to ensure continuity. s. Transportation impact fees shall be collected so that "growth may pay for growth" and growth -caused improvements may be constructed. Section 7. Enterprise Funds a. Utility fund expenditures shall be fully supported by their own rates, fees, and charges and not subsidized by the General Fund. b. Utility rates should be structured to ensure adequate infrastructure development and replacement. c. Each Enterprise Fund shall be reviewed bi-annually to ensure a rate structure adequate to meet its operations, maintenance, and long-term capital requirements. d. Enterprise Fund rate increases shall be small, applied frequently, and staggered to avoid an overly burdensome increase and undue impact in any given year. e. Enterprise Fund rate increases of external agencies will be passed through to the customer. f. Infrastructure improvements such as water reuse should consider conservation of resources such as water and electricity. Section 8. Debt Cross references: Debt Policy (Resolution No. 1840) a. Appropriate management of debt is an important factor in measuring the City's financial performance and condition. Section 9. Reserves Cross references: Fund Balance Policy (Resolution No. a. Prudent financial management dictates that some portion of funds available to the City be reserved for future use. b. At the close of each fiscal year, the General Fund unassigned balance shall equal or exceed 18% and the Contingency Fund reserve balance shall equal or exceed 10% of the previous year General Fund revenue, exclusive of significant non operating non -recurring revenues such a r ,.tate sales or transfers in from other funds. shall equal or exceed 20% of the previous year revenue, exclusive of the effects of GASB Statement 68, as well as significant non operating, non recurring 18 Version: 5/17/2024 Page 4 of 5 d b. Use or draw down of minimum balances shall occur only upon recommendation of City Administration and approval by City Council through a resolution. Should use or draw down occur, the City Administration shall establish a plan, no later than the end of the fiscal year following the year of decline, to restore the fund balance to the prescribed minimum level. The plan shall be presented to and approved by the City Council. c. A Onc timc Rcvcnuc Rcscrvc shall be established and maintained in the Contingency Fund. The One time Revenue Reserve shall be credited annually with 10% of the prior year one-time revenues to the extent General Fund surplus for the year is sufficient to cover the reserve funding. Use of the reserve shall occ Ir only upon recommendation by City administration and approval by City Council resolution. f . The City shall maintain a reserve in each of its self -insured health care funds in an amount equal to 1.5 times, or 150%, of the actuarially determined IBNR (incurred but not reported) balance. Use of the reserve shall occur only upon recommendation by City Administration and approval by City Council resolution. Section 10. Investments (Cross references: TMC 3.28, Resolution No. 1828) a. The City will strive to maximize the return on its investments with the primary objective of preserving capital in accordance with city policy and prudent investment practices. Section 11. Minimum Reporting Requirements a. The Finance Director shall provide a financial status update at least quarterly. b. City Administration shall provide the City Council with financial reports that reflect actual performance in various expenditures and revenues. c. City Administration shall provide the City Council with a quarterly report of all newly -executed and amended contracts, including the amount, responsible department, scope of work, and expiration date. d. Once the annual audit is complete, City Administration shall provide a report to the City Council showing compliance with the Financial Reserve Policy. Version: 5/17/2024 Page 5 of 5 19 City of Tukwila Thomas McLeod, Mayor Marty Wine, City Administrator AGENDA BILL ITEM NO. 1.B. Agenda Item Sponsor Legislative History Request Additional Employees for Municipal Court Valerie Marino, Deputy Judicial Branch Administrator April 13, 2026 Finance & Governance Committee April 27, 2026 Committee of the Whole May 4, 2026 Regular Meeting Recommended Motion ❑ Discussion Only ❑x Action Requested MOVE TO authorize the addition of a Court Operations Specialist - Bailiff and a Court Operations Specialist positions to the Judicial Branch. EXECUTIVE SUMMARY Tukwila Municipal Court is requesting a budget amendment to support essential staffing adjustments within the Judicial Branch. Sustained increases in caseload filings, expanding legislative mandates, and heightened law enforcement activity have pushed current staffing to its limits. To maintain timely, effective, and compliant court operations, it is now critical to increase staffing levels, including converting the judge's position to full-time. This adjustment is not optional, it is necessary to ensure the court can meet its statutory obligations, protect public safety, and continue delivering reliable service to the community. DISCUSSION The City of Tukwila's commitment to ensuring public safety for its citizens, businesses and visitors is supported largely by the Tukwila Police Department. For the first time in several years the Police Department has reached full staffing levels, resulting in a measurable increase in proactive enforcement activity. While this is good news for the city, it is important to recognize the rippling impact of this increased enforcement coupled with legislative changes. Case filings at the court have significantly increased by 161% in the last year, with an overall increase of 279% in the last five years. The court is experiencing higher caseloads, including park speed zone photo enforcement tickets, search warrants, parking citations, traffic infractions, criminal violations, and school zone photo enforcement tickets. Legislative changes in recent years have introduced significant new demands on courts, stretching already limited resources and increasing the complexity of daily operations. For instance, extended jurisdiction for DUI cases and expanded responsibilities in domestic violence matters have dramatically increased administrative workload. A decade ago, DUI jurisdiction lasted two years; today, courts must manage these cases for five years. This longer timeline requires substantially more hearings, more party notifications, more case monitoring, 20 and far greater information exchange with partners such as the Washington State Patrol and the Washington State Department of Licensing. These added responsibilities are not simply procedural, they directly affect staffing capacity, timely case processing, and the court's ability to meet statutory obligations. Without corresponding support and resources, courts are being asked to do significantly more with the same —or fewer —tools. Strengthening court capacity is essential to ensure that legislative changes achieve their intended public -safety goals without overwhelming the justice system tasked with implementing them. Over the past decade, legislative changes surrounding domestic violence offenses have significantly increased the administrative workload for courts. What once required only two forms has expanded to 14 distinct documents that must be completed for each domestic -violence -related hearing. These mandates now demand rapid turnaround times, close coordination with local law enforcement record units, and ongoing monitoring to ensure timely return and processing of all required paperwork. Court dockets are consistently full, court dates are being set further out, and administrative workload has expanded beyond current staffing capacity. Hearings held have increased 19% since last year and 32% in the last 5 years. The current limited clerical staffing can no longer keep pace with the Court's growing caseload. The additional staffing will enable the court to: • Increase availability for court sessions • Prevent case backlogs and scheduling delays • Support faster adjudication of citations and violations • Improve service to residents, law enforcement, and community partners Adding a Court Operations Specialist —Bailiff (in -court clerk) position is equally critical. This role ensures accurate recordkeeping, efficient case processing, and smooth courtroom operations —functions that directly affect compliance, public safety, and operational integrity. Likewise, staffing the Court Operations Specialist (front -counter clerk) position is necessary to manage the growing volume of public inquiries, payments, citation intake, records requests, and customer service needs. Without these staffing adjustments, the Court will face mounting delays, increased administrative strain, potential liability due to missed steps in case processing and diminished service levels for the public and law enforcement. Proactive investment now will ensure the Court can operate efficiently, meet all statutory requirements, and adequately respond to the heightened enforcement activity of the Police Department. This is not simply an operational enhancement, it is a necessary step to preserve the efficiency, reliability and effectiveness of the judicial branch. https://tukwilawa.sharepoint.com/sites/clerksintranet/Council Agenda Items/04-13 F&G Committee/Court Position Request/_Agenda Bill- Budget Amendment- Tukwila Municipal Court.docx 21 We respectfully request approval for a budget amendment totaling $276,192 to support the following staffing changes: 1. Add 1 FTE Court Operations Specialist -Bailiff position 2. Add 1 FTE Court Operations Specialist position It is important to inform the Council that these caseload increases also support the need to increase the presiding judge's position from .90 FTE to a full-time position. Since the judge's position is appointed by the Mayor and approved by the City Council, the request for increasing the judge's position will be submitted by the Mayor's office at a later date. FINANCIAL IMPACT Complete for all items with fiscal implications Disclaimer: Final terms and scope of work subject to review by the City Attorney Expenditures: Fund Source: • Expenditure - Budgeted $276,192 = $272,692 General Fund © Expenditure - Unbudgeted (salaries & benefits) + • Expenditure - Grant -Funded $3500 (equipment) • Revenue — One -Time (e.g. asset sale, surplus equipment) Receivables (if applicable © Revenue - Ongoing $813,282.53 (per Finance Department) ATTACHMENTS A. Case Filings (2021-2025) B. Hearings Held (2021-2025) C. Budget Supported Organization Chart D. 2026 Court Positions Salaries 22 https://tukwilawa.sharepoint.com/sites/clerksintranet/Council Agenda Items/04-13 F&G Committee/Court Position Request/_Agenda Bill- Budget Amendment- Tukwila Municipal Court.docx CASES FILED Year CASES FILED % DIFFERENCE (+/-) 2025 11,124 161% *2 park speed zone photo enforcement cameras implemented July 2025 2024 4,254 8% 2023 3,941 -23% 2022 5,092 74% 2021 2,934 12,000 10,000 8,000 6,000 4,000 2,000 11,124 *School zone photo enforcement began in October 2021 with 2 cameras 279% Total Percentage of Case Fillings Increase between 2021-2025 161% Total Percentage of Case Fillings Increase 274% 5,092 2,934 2025 2024 2023 2022 2021 CASES FILED —% DIFFERENCE (+/-) 200% 150% 100% 50% 0% -50% 23 HEARINGS HELD YEAR HEARINGS HELD % DIFFERENCE (+/-) 2025 11,155 19% *2 park speed zone photo enforcement cameras implemented July 2025 2024 9,369 6% *563 Blake Hearings 2023 8,845 5% *242 Blake Hearings 2022 8,413 2021 8,467 -1% *school zone photo enforcement began in October 2021 32% Total Percentage Increase of Hearings Held between 2021-2025 12,000 10,000 8,000 6,000 4,000 2,000 11,155 19% Total Percentage Increase of Hearings Held 32% 9,369 8,845 5% 8,413 2025 2024 2023 2022 HEARINGS HELD —% DIFFERENCE (+/-) 8,467 2021 25% 20% 15% 10% 5% 0% -5 24 TUKWILA MUNICIPAL COURT PROPOSED ORGANIZATION CHART Court Operations Associatf Bailiff (1) (Add 1) Presiding Judge .90 FTE (Increase to 1 FTE) Judicial Branch Administrat or Deputy Judicial Branch Administrator r Program Coordinator/Cou Operations Supervisor I Court Operations Associate (2) (Add 1) Court Support Services Manager Court Support Services Ca Manager Court Support Services Specialist Program Coordinator/Cou Operations Trainer/IT Specialist Court Operations Assistar 25 2026 Court Positions Salaries Municipal Court Judge Social Security Medicare PERS Ind Insurance Medical/Dental Vision Life Ltd WPFML Total With Benefits Pay Grade n/a Monthly Annually 90% 100% Difference 90% 100% Difference $16,957.00 $18,841.00 $1,884.00 $1,051.33 $1,168.14 $116.81 $245.88 $273.19 $27.31 $946.20 $1,051.33 $105.13 $32.51 $32.51 $0.00 $1,891.56 $2,101.74 $210.18 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $54.74 $60.83 $6.09 $21,179.22 $23,528.74 $2,349.52 $203,484.00 $226,092.00 $22,608.00 $11,439.00 $11,439.00 $0.00 $2,950.52 $3,278.33 $327.81 $11,354.41 $12,615.93 $1,261.52 $390.12 $390.12 $0.00 $22,698.72 $25,220.88 $2,522.16 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $595.64 $595.64 $0.00 $252,912.41 $279,631.90 $26,719.49 Monthly Annually Step 1 Step 2 Step 3 Step 4 Step 5 Step 1 Step 2 Step 3 Step 4 Step 5 Court Operations Associate t-12 $5,408.00 $5,679.00 $5,963.00 $6,265.00 $6,575.00 $64,896.00 $68,148.00 $71,556.00 $75,180.00 $78,900.00 Social Security $335.30 $352.10 $369.71 $388.43 $407.65 $4,023.55 $4,225.18 $4,436.47 $4,661.16 $4,891.80 Medicare $78.42 $82.35 $86.46 $90.84 $95.34 $940.99 $988.15 $1,037.56 $1,090.11 $1,144.05 PERS $301.77 $316.89 $332.74 $349.59 $366.89 $3,621.20 $3,802.66 $3,992.82 $4,195.04 $4,402.62 Ind lnsurance $32.51 $32.51 $32.51 $32.51 $32.51 $390.12 $390.12 $390.12 $390.12 $390.12 Medical/Dental (Employee/Spouse/2+ Children) $3,138.83 $3,138.83 $3,138.83 $3,138.83 $3,138.83 $37,665.96 $37,665.96 $37,665.96 $37,665.96 $37,665.96 Vision $17.30 $17.30 $17.30 $17.30 $17.30 $207.60 $207.60 $207.60 $207.60 $207.60 Life $7.00 $7.00 $7.00 $7.00 $7.00 $84.00 $84.00 $84.00 $84.00 $84.00 Ltd $10.55 $11.07 $11.63 $12.22 $12.82 $126.55 $132.89 $139.53 $146.60 $153.86 WPFML $17.46 $18.33 $19.25 $20.23 $21.23 $209.51 $220.01 $231.01 $242.71 $254.72 Total With Benefits $9,347.14 $9,655.38 $9,978.43 $10,321.95 $10,674.57 $112,165.48 $115,864.57 $119,741.07 $123,863.30 $128,094.73 Monthly Annually Step 1 Step 2 Step 3 Step 4 Step 5 Step 1 Step 2 Step 3 Step 4 Step 5 Court Operations Specialist - Bailiff t-17 $6,405.00 $6,725.00 $7,063.00 $7,413.00 $7,784.00 $76,860.00 $80,700.00 $84,756.00 $88,956.00 $93,408.00 Social Security $397.11 $416.95 $437.91 $459.61 $482.61 $4,765.32 $5,003.40 $5,254.87 $5,515.27 $5,791.30 Medicare $92.87 $97.51 $102.41 $107.49 $112.87 $1,114.47 $1,170.15 $1,228.96 $1,289.86 $1,354.42 PERS $357.40 $375.26 $394.12 $413.65 $434.35 $4,288.79 $4,503.06 $4,729.38 $4,963.74 $5,212.17 Ind lnsurance $32.51 $32.51 $32.51 $32.51 $32.51 $390.12 $390.12 $390.12 $390.12 $390.12 Medical/Dental (Employee/Spouse/2+ Children) $3,138.83 $3,138.83 $3,138.83 $3,138.83 $3,138.83 $37,665.96 $37,665.96 $37,665.96 $37,665.96 $37,665.96 Vision $17.30 $17.30 $17.30 $17.30 $17.30 $207.60 $207.60 $207.60 $207.60 $207.60 Life $7.00 $7.00 $7.00 $7.00 $7.00 $84.00 $84.00 $84.00 $84.00 $84.00 Ltd $12.49 $13.11 $13.77 $14.46 $15.18 $149.88 $157.37 $165.27 $173.46 $182.15 WPFML $20.68 $21.71 $22.80 $23.93 $25.13 $248.14 $260.53 $273.63 $287.19 $301.56 Total With Benefits $10,481.19 $10,845.18 $11,229.65 $11,627.78 $12,049.78 $125,774.28 $130,142.19 $134,755.79 $139,533.20 $144,597.28 128,094.73- Court Operations Associate 144,597.28 - Bailiff 272,692.01 Total for clerk positions 26 City of Tukwila Thomas McLeod, Mayor Marty Wine, City Administrator AGENDA BILL ITEM NO. 1.C. Agenda Item B&O Tax Rates and Business License Fees Sponsor Adam Schierenbeck, Senior Fiscal Coordinator Legislative History April 13, 2026 Finance & Governance Committee Recommended Motion ❑x Committee Decision ❑ Action Requested EXECUTIVE SUMMARY The Finance Department proposes replacing the current per -employee business license fee with a flat or tiered fee structure beginning January 1, 2027. To offset the associated revenue loss, the Department recommends increasing the City's business and occupation (B&O) tax rates beginning January 1, 2027, raising the minimum annual B&O tax threshold to $1 million (with an aligned quarterly threshold), and implementing a square -footage -based B&O tax for certain business facilities within the City. Together, these differences are intended to offset one another and produce a net -zero impact on City revenues, based on estimated collections. DISCUSSION The City of Tukwila has historically assessed business license fees based on the number of employees assigned to work at business locations within the City. Beginning in 2024, the City also adopted a municipal B&O tax to raise necessary revenues. However, those Washington cities that levy per -employee fees generally do not also impose B&O taxes. Because of this, the Finance Department is seeking to realign Tukwila's business license structure with that of neighboring jurisdictions. To offset revenue reductions from adjusting the City's business license fees, the Department recommends increasing B&O tax rates to more closely match surrounding cities. As part of this adjustment, the Department proposes raising the minimum annual B&O tax threshold to $1 million and adopting a corresponding quarterly threshold, which will provide administrative efficiencies. The proposed B&O tax changes also include implementing a square footage tax. This tax would apply to warehouse space exceeding 4,000 square feet and other business floor space exceeding 12,000 square feet. Gross receipts tax and square footage tax would be calculated independently, and a business's B&O tax liability would be based on the higher of the two amounts. This proposal realigns the City's revenue framework by reducing reliance on a regressive per -employee license fee structure in favor of the more proportional B&O tax. As the City pursues long-term financial sustainability, these changes position Tukwila to potentially further adjust B&O tax levels to meet future revenue needs. FINANCIAL IMPACT 27 Overall, the changes to business license fees and B&O taxes are designed to be revenue -neutral. However, because of the new requirement to submit all tax payments quarterly, one-time additional revenues are estimated in fiscal year (FY) 2027 as the result of fewer annual returns due in FY 2028. Complete for all items with fiscal implications Disclaimer: Final terms and scope of work subject to review by the City Attorney Expenditures: Fund Source: ■ Expenditure - Budgeted $0 Revenues: ■ Expenditure - Unbudgeted ■ Expenditure - Grant -Funded © Revenue — One -Time (e.g. $187,000 asset sale, surplus equipment) ■ Revenue - Ongoing Contractor (if applicable) n/a Scope of Work n/a Amount n/a Duration n/a Additional Comments: 2027 due to administrative changes involving tax filing frequencies. One-time additional revenue in FY ATTACHMENTS Exhibit 1 — Business License Fee Comparison and Proposal Exhibit 2 — Business License Revenue Detail Exhibit 3 — B&O Tax Rate Comparison Exhibit 4 — B&O Tax Revenue Estimate https://tukwilawa.sharepoint.com/sites/clerksintranet/Council Agenda Items/04-13 F&G Committee/B&O Tax Rates and Business License Fees/Agenda Bill - B&O Tax Rates and Business License Fees.docx 28 EXHIBIT 1- Business License Fee Comparison & Proposal 2026 Business License Fee Comparison Proposed Business License Fee City Non -Resident Home Occupation General Business License Non -Resident License* Home Occupation License General Business License License* License Auburn $112 $112 $112 Burien $180 $70 $180 for 0-39 employees $350 for 40 or more employees Kent $101 $51 $293 for 0-24 employees $393 for 25-49 employees $593 for 50-99 employees $793 for 100 or more employees Renton $150 $150 $150 Seatac $150 $50 $100 for 0-10 employees $250 for 11-50 employees $1,500 for 51-100 employees $4,750 for 101-500 employees $9,500 for 501 or more employees Tukwila $100** same as General Business License $112 per full-time employee $56 per part-time employee $150** $75 $150 for 0-9 employees $300 for 10-24 employees $500 for 25-49 employees $750 for 50-99 employees $1,000 for 100 or more employees Seattle Tiered fee structure based on the annual taxable revenue earned in Seattle: - Less than $20k: $73 - $20k to $500k: $147 - $500kto $2 million: $667 - $2million to $5 million: $1,604 - $5 million or more: $3,210 *A Non -Resident license means that the business does not own, rent, lease, occupy, or otherwise maintain a physical place of business within Tukwila City limits. **The Non -Resident license fee is waived if the annual gross income of the business within Tukwila is $4,000 or less. 29 EXHIBIT 2 - Business License Revenue Detail Proposed Business License Fees License Type Non -Resident Home Occupation General Tukwila Business ` I 0-9 employees 10-24 employees 25-49 employees 50-99 employees 100+ employees BL Fee # of Businesses Total Revenue $150 1,722 $258,300 $75 544 $40,800 $150 1,295 $194,250 $300 297 $89,100 • $500 115 $57,500 $750 72 $54,000 $1,000 36 $36,000 Grand Total 4,081 $729,950 Forecasted BL Fee Revenue $729,950 FY 2025 Actual Revenue $2,803,411 Variance ($2,073,461) 30 EXHIBIT 3 - B&O Tax Rate Comparison 2026 Gross Receipts B&O Tax Comparison Jurisdiction Taxable gross revenue in the city Gross Receipts Tax Rates Annual Threshold Quarterly Threshold Retail Sales Wholesaling Manufacturing Service & Other Burien $20,000 $5,000 0.00200 0.00200 0.00200 0.00200 Kent $250,000* $62,500* 0.00100 0.00200 0.00125 0.00200 Renton $500,000 n/a 0.00070 0.00121 0.00121 0.00121 Auburn $4,000** n/a 0.00050 0.00180 0.00100 0.00100 Tukwila $750,000 n/a 0.00050 0.00085 0.00085 0.00085 Seattle $2,000,000* n/a 0.003420 0.003420 0.003420 0.006580 *Kent and Seattle provide an exemption, not a threshold Businesses only pay tax on revenues that exceed the exemption amount. * *Auburn's threshold is within the confines of a $500,000 companywide threshold. 2026 Square Footage B&O Tax Comparison Jurisdiction Business Warehouse Floor Space Threshold Other Business Floor Space Threshold Square Footage Tax Rates (Annual) * Business Warehouse Other Business Floor Space Auburn 4,000 n/a $0.40 n/a Kent 4,000 12,000 $0.48 $0.08 * Beginning 1/1/2028, Kent's square footage tax rates will increase to $0.60 and $0.12. Tukwila Gross Receipts Tax Option Jurisdiction Taxable revenue in the city Companywide gross revenue Gross Receipts Tax Rates Annual Threshold* Quarterly Threshold* Retail Sales Wholesaling Manufacturing Service & Other Tukwila $1,000,000 $250,000 0.00070 0.00125 0.00125 0.00125 Tukwila Square Footage Tax Option Jurisdiction Business Warehouse Floor Space Threshold* Other Business Floor Space Threshold* Square Footage Tax Rates (Annual)** Business Warehouse Other Business Floor Space Tukwila 4,000 12,000 $0.24 $0.06 *The square footage threshold is independent from the gross receipts threshold. **Businesses pay the greater of the gross receipts tax or the square footage tax. 31 EXHIBIT 4 - B&O Tax Revenue Estimate 2027 B&O Tax Rates and Estimate Gross Receipts Tax Square Footage Tax Retailing / Retail Services Wholesaling Manufacturing Service & Other Activities Warehouse SFT Other SFT Total B&O Tax Revenue 0.00070 0.00125 0.00125 0.00125 $0.24 $0.06 $4,728,380 Fiscal Year Revenue Differences Tax Year Current Proposed Revenue Difference BL Revenue B&O Revenue BL Revenue B&O Revenue 2027 $2,803,411 $2,654,000 $729,950 $4,914,463 $187,002 2028 $2,803,411 $2,654,000 $729,950 $4,728,380 $919 RELATED INFORMATION 1.) Square footage tax is estimated based on limited information available concerning the size of business facilities in the city. 2.) Gross receipts tax estimates are based on taxable amounts reported for the previous year for which information is available. 3.) The difference between tax year revenue and fiscal year revenue in 2027 is due to the timing of Annual 2026 tax returns (due April 30, 2027). Beginning in 2027, all businesses owing tax would be placed on a quarterly filing frequency. 4.) The DOR requires a minimum 75 days advanced notice to change the City's business license fee structure. 32 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Tony Cullerton, Deputy Finance Director CC: Thomas McLeod, Mayor DATE: April 13th, 2026 SUBJECT: February 2026 Financial Report EXECUTIVE SUMMARY The Finance & Governance Committee is being provided with the February 2026 Financial Report for review and discussion. DISCUSSION The Finance Department prepares monthly financial reports to provide the Finance & Governance Committee with timely information regarding the City's financial position, budget performance, and identified trends. The February monthly report reflects financial activity through February 28, 2026, representing 16.7% of the fiscal year complete. The report includes General Fund revenue and expenditure results, performance for major operating and capital funds, and comparisons of budget -to -actual figures. Monthly financial reporting supports transparency, informed decision -making, and ongoing monitoring of recurring and one- time revenues relative to the City's ongoing operations. General Fund Overview Through February 2026, General Fund revenues and transfers -in total approximately $11.5 million (14.6%) of budget. Expenditures and transfers -out total approximately $13.7 million (17.5% of budget). The year-to-date net position reflects expenditures exceeding revenues, which is typical earlier in the year due to timing differences in revenue collection and expenditure patterns. As the year progresses, revenues, particularly taxes and intergovernmental revenues will continue to normalize based on economic activity, billing cycles, and timing of receipts. Revenue Highlights Major General Fund revenue categories performing above the percentage of year complete include: • Business & Occupation Tax (30.4% of budget) • Intergovernmental Revenue (23.1% of budget) • Gambling Tax (24.4% of budget) • Utility Taxes (19.3% of budget) Other revenue categories, such as Building Permits and Charges for Services, are below the percentage of year complete due to timing of development activity, permitting cycles, and reimbursement schedules. 33 INFORMATIONAL MEMO Page 2 Expenditure Highlights General Fund expenditures and transfers -out total approximately $13.7 million (17.5%) of the annual budget. By category: • Salaries, Wages & Overtime — 15.5% of budget • Benefits — 14.5% of budget • Services — 23.2% of budget Higher spending in services reflects contract timing, annual payments, and early -year service agreements. Most departmental expenditures remain generally aligned with expectations for this stage of the year. Significant Revenue Variances (>_5% and >_$50,000) The following General Fund revenue categories are performing above expected levels based on a straight-line projection: Business & Occupation Tax — $736,130 (30.4% of budget). Reflects normal filing cycles and timing of receipts early in the year. Gambling Taxes — $1,085,470 (24.4% of budget). Indicates strong activity levels relative to the annual budget. Intergovernmental Revenue — $1,293,462 (23.1% of budget). Driven by timing of grant reimbursements and external funding. While these categories are above the percentage of year complete, performance at this stage is still largely influenced by timing rather than long-term trends. Finance will continue monitoring for sustained variance patterns. Significant Expenditure Variances (>_5% and >_$50,000) The following General Fund expenditure categories reflect year-to-date variances of 5% and greater than $50,000 compared to budget expectations: By Category • Services — $5.38 year-to-date (23.2% of budget). Spending exceeds a straight-line projection due to contract timing and early -year payments. By Department • Finance Department — $1.47 million (31.5% of Budget). 6 year-to-date (26.1% of budget). Early -year expenditures reflect timing of professional services, system costs, and internal allocations. • Police Department — $5.19 million (17.6% of budget) Slightly above trend due to personnel and service -related costs. 34 INFORMATIONAL MEMO Page 3 • Public Works Department — $1.6 million (19.9% of budget). Variances are primarily related to seasonal work and contract timing. Overall, expenditure variances remain consistent with expected timing differences typical in the early part of the fiscal year. Similar to revenues, early -year expenditure variances are primarily attributable to timing differences, contract schedules, and internal cost allocations. Finance will continue monitoring expenditures to ensure alignment with the adopted budget as the year progresses. Other Funds & Year -End Trends Major operating and capital funds reflect typical early -year timing patterns: • Water Utility (Fund 401) revenues total $1.35 million (13.2%), with expenditures of $1.52 million (13.8% of budget). • Sewer Utility (Fund 402) revenues total $1.88 million (14.3%), with expenditures of $1.74 million (10.9% of budget). • Surface Water, Golf, and Capital Funds reflect project and billing cycle timing that will normalize over the course of the fiscal year. Early -year variances in capital and special revenue funds are generally tied to project timing, grant reimbursements, and seasonal revenue patterns. Conclusion Overall, February financial results are consistent with expectations for 16.7% of the year complete. Variances observed to date are primarily driven by timing differences in both revenues and expenditures. Finance will continue to monitor financial performance, revenue trends, and expenditure activity to ensure alignment with the adopted budget and to identify any emerging issues as the year progresses. ATTACHMENTS • February 2026 Monthly Financial Report • February 2026 Clearwater Investment Statement 35 General Fund j Overview 2026 Actuals through February Revenues Transfers In Expenditures Transfers Out $ 2026 Total Budget Budget Variance % of Annual Budget 10,691,561 $ 764,187 12,927,640 747,394 73,251,214 5,316,382 73,514,061 4,484,347 14.6% 14.4% 17.6% 16.7% Net Revenues Less Expenditures $ (2,219,286) $ 569,188 General Fund figures include General Fund and Contingency Fund, a Sub -Fund of the General Fund General Fund Overview $80 $70 $60 $50 $40 $30 $20 $10 • • of Year Complete 16.7% • Revenues Transfers In Expenditures Transfers Out ■ Year to Date ■ Budget 36 City of Tukwila Monthly Finance Report 1 General Fund Overview - Revenues and Transfers In by Category Category 2026 Total 2026 Revenues Budget through February Taxes: Property Tax $ 12,215,213 $ Sales & Use Tax 24,333,095 Other Sales Taxes 1,205,820 Gambling Taxes 4,449,500 Business & Occupation Taxes 2,424,000 Utility Taxes 4,702,390 Interfund Utility Taxes 3,364,735 Admission Taxes 885,012 Leasehold Excise Tax 275,000 Business Licenses 3,479,655 Building Permits & Rental Housing Permits 2,061,800 Intergovernmental 5,607,020 Charges for Services 2,436,020 Miscellaneous Revenue 1,611,954 Transfers In - Indirect Cost Allocation 3,267,278 Transfers In From Other Funds 2,049,104 Sale of Capital Assets 4,200,000 Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 122,905 $ 4,303,787 209,736 1,085,470 736,130 905,242 314,033 167,034 49,157 443,750 339,195 1,293,462 337,971 383,689 544,548 219,639 (12,092,308) (20,029,308) (996,084) (3,364,030) (1,687,870) (3,797,148) (3,050,702) (717,978) (225,843) (3,035,905) (1,722,605) (4,313,558) (2,098,049) (1,228,265) (2,722,730) (1,829,465) (4,200,000) 1.0% 17.7% 17.4% 24.4% 30.4% 19.3% 9.3% 18.9% 17.9% 12.8% 16.5% 23.1 % 13.9% 23.8% 16.7% 10.7% 0.0% Total $ 78,567,596 $ 11,455,748 $ (67,111,848) 14.6% Percent of Year Complete: 16.7% City of Tukwila Monthly Finance Report 2 37 Property Tax Sales & Use Tax General Fund Major Revenues Gambling Taxes Business & Occupation Taxes Utility Taxes Interfund Utility Taxes I Business Licenses Building Permits & Rental Housing Permits Intergovernmental Charges for Services Miscellaneous Revenue Transfers In - Indirect Cost Allocation Transfers In From Other Funds Sale of Capital Assets I $- $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 $14 $15 $16 $17 $18 $19 $20 $21 $22 $23 $24 $25 $26 Millions • Revenues and Transfers In YTD ■ Total Budget 38 City of Tukwila Monthly Finance Report 3 General Fund: Year -to -Year Revenues and Transfers In Category 2024 Revenues Through February 2025 Revenues Through February 2026 Revenues through February Taxes: Property Tax Sales & Use Tax Other Sales Taxes Gambling Taxes Business & Occupation Taxes Utility Taxes Interfund Utility Taxes Admission Taxes Leasehold Excise Tax Business Licenses Building Permits & Rental Housing Permits Intergovernmental Charges for Services Miscellaneous Revenue Transfers In - Indirect Cost Allocation Transfers In From Other Funds Sale of Capital Assets 136,721 $ 23,857 $ 3,942,787 4,352,941 201,084 207,616 996,929 900,785 638,458 746,022 913,012 283,374 304,133 124,445 178,243 63,162 66,360 521,508 421,837 299,062 636,170 2,505,702 2,998,501 338,682 575,960 363,351 396,831 493,927 518,614 122,905 $ 99,048 4,303,787 (49,154) 209,736 2,120 1,085,470 184,685 736,130 97,672 905,242 (7,770) 314,033 9,900 167,034 (11,209) 49,157 (17,203) 443,750 21,913 339,195 (296,975) 1,293,462 (1,705,039) 337,971 (237,989) 383,689 (13,142) 544,548 25,934 219,639 219,639 +415.2% -1.1% +1.0% +20.5% +15.3% -0.9% +3.3% -6.3% -25.9% +5.2% -46.7% -56.9% -41.3% -3.3% +5.0% Total $ 11,016,756 $ 13,133,318 $ 11,455,748 $ (1,677,570) -12.8% City of Tukwila Monthly Finance Report 4 39 General Fund Major Revenues Prior Year Comparisons YTD Property Tax - Sales & Use Tax Gambling Taxes Business & Occupation Taxes Utility Taxes Interfund Utility Taxes Business Licenses Building Permits & Rental Housing Permits Intergovernmental Charges for Services Miscellaneous Revenue Transfers In - Indirect Cost Allocation Transfers In From Other Funds Sale of Capital Assets $- $1 $2 $3 $4 $5 Millions 2024 2025 ■ 2026 40 City of Tukwila Monthly Finance Report 5 General Fund Overview - Expenditures & Transfers Out by Department Department 2026 Total Budget 2026 Expenses through February Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget City Council Mayor's Office Finance Department Community Development (DCD) Municipal Court Police Department Fire Department Recreation Department Park Maintenance Dept Public Works Dept Street Maintenance Dept Non -Departmental Expenses Transfers Out - Debt Service Transfers Out to Other Funds 456,810 $ 10,137,137 4,666,108 5,854,564 2,504,217 29,515,597 1,309,887 4,367,833 2,518,366 5,334,529 4,841,967 2,007,046 3,784,347 700,000 72,769 $ 1,658,493 1,469,439 880,371 412,055 5,189,251 280,571 498,759 401,022 1,062,056 647,800 355,054 630,724 116,670 384,041 8,478,644 3,196, 669 4,974,193 2,092,162 24,326,346 1,029,316 3,869,074 2,117,344 4,272,473 4,194,167 1,651,992 3,153,623 583,330 15.9% 16.4% 31.5% 15.0% 16.5% 17.6% 21.4% 11.4% 15.9% 19.9% 13.4% 17.7% 16.7% 16.7% Total $ 77,998,408 $ 13,675,034 $ 64,323,374 17.5% Percent of Year Complete: 16.7% City of Tukwila Monthly Finance Report 641 Thousands $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- General Fund Expenditures and Transfers Out by Department I —_ , , M. I —. _ I _1 -• e �ae ocs° `o,GeO' oeye�\o o a O GoQ c�/ c�� Ge sesece o Qac c, ee �e et` c'- OeQ sere �o'\t � ame • Expenditures and Transfers Out YTD • Total Budget 42 City of Tukwila Monthly Finance Report 7 General Fund Overview - Year -to -Year Expenditures & Transfers Out by Department Category 2024 Expenses through February 2025 Expenses through February 2026 Expenses through February 2026 vs 2025 City Council Mayor's Office Finance Department Community Development (DCD) Municipal Court Police Department Fire Department Recreation Department Park Maintenance Dept Public Works Dept Street Maintenance Dept Non -Departmental Expenses' Transfers Out - Debt Service Transfers Out to Other Funds $ 62,310 $ 1,270,256 1,374,162 732,652 315,793 4,242,948 4,253,011 533,846 259,901 974,876 404,957 58,092 $ 1,454, 848 1,356,873 833,843 355,715 4,953,157 44,214 549,012 298,244 999,722 523,077 18,953 150,569 72,769 $ 1,658,493 1,469,439 880,371 412,055 5,189,251 280,571 498,759 401,022 1,062,056 647,800 14,677 203,645 112,566 46,528 56,340 236,094 236,357 (50,253) 102,778 62,334 124,723 355,054 204,485 630,724 630,724 116,670 116,670 +25.3% +14.0% +8.3% +5.6% +15.8% +4.8% +534.6% -9.2% +34.5% +6.2% +23.8% +135.8% Total $ 14,443,665 $ 11,577,366 $ 13,675,034 $ Notes: 'In 2026, Fleet replacement expenditures were shifted from quarterly to monthly. 2,097,668 +18% City of Tukwila Monthly Finance Report 8 43 N $6,000 co 0 0 1- F $5,000 $4,000 $3,000 $2,000 $1,000 $- General Fund Expenditures by Department Prior Year Comparions YTD 2024 2025 ■ 2026 44 City of Tukwila Monthly Finance Report 9 °° ea eJ as p O'` do OJT General Fund Overview - Expenditures by Category 1 Category 2026 Total Budget 2026 Expenses through February Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Other Expenditures Transfers Out - Debt Service Transfers Out to Other Funds $ 35,372,844 13,086,179 1,694,812 23,178,221 151,800 30,205 3,784,347 700,000 $ Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 5,472,839 $ 1,901,433 170,619 5,381,556 1,193 630,724 116,670 29,900,005 11,184, 746 1,524,193 17,796,665 150,607 30,205 3,153,623 583,330 15.5% 14.5% 10.1% 23.2% 0.8% 0.0% 16.7% 16.7% Total N $40,000 c of $35,000 0 0 r 1- $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- $ 77,998,408 $ 13,675,034 $ 64,323,374 Percent of Year Complete: General Fund Expenditures and Transfers Out by Category Salaries, Wages, & Overtime Machinery, Equipment Service Funds ■ Benefits Supplies Services 17.5% 16.7% Land, Structures, Other Expenditures Transfers Out - Debt Transfers Out to Other • Expenditures and Transfers Out YTD ■ 2026 Total Budget City of Tukwila Monthly Finance Report General Fund: Year -to -Year Expenditures & Transfers Out by Category Category 2024 Expenses through February 2025 Expenses through February 2026 Expenses through 2 ' . 's 2025 February Salaries, Wages, & Overtime Benefits Supplies Services Services excluding PSRFA Fire Contract Land, Structures, Machinery, Equipment Transfers Out - Debt Service Transfers Out to Other Funds 4,531,335 1,738,218 133,026 7,864,693 4,248,376 176,392 5,250,431 1,926,600 136,741 4,262,675 4,262,675 920 5,472,839 1,901,433 170,619 5,381,556 5,381,556 1,193 630,724 116,670 222,408 (25,167) 33,878 1,118,881 1,118,881 273 630,724 116,670 +4.2% -1.3% +24.8% +26.2% +26.2% +29.7% Total $9,000 $8,000 0 L ~ $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- i Salaries, Wages, & $ 14,443,664 $ 11,577,367 $ 13,675,034 $ 2,097,667 +18.1% General Fund Expenditures by Category Prior Year Comparions YTD Benefits Supplies Services Services excluding Land, Structures, Other Expenditures Transfers Out - Debt Transfers Out to Other Overtime PSRFA Fire Contract Machinery, Equipment Service Funds 2024 2025 ■ 2026 46 City of Tukwila Monthly Finance Report 11 Fund 101 Hotel/Motel Special Revenue Fund Overview 2026 through February Revenues Expenditures Transfers Out 2026 Total Budget Budget Variance % of Annual Budget 120,478 $ 116,178 5,109 1,047,750 1,614,096 30,669 11.5% 7.2% 16.7% Net Revenues Less Expenditures $ (809) $ (597,015) % of Year Complete 16.7% City of Tukwila Monthly Finance Report 12 47 Fund 101 Hotel/Motel Special Revenue Fund Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Salaries, Wages, & Overtime Benefits Supplies Services Transfers Out - Internal Cost Allocation $ 55,387 $ 11,459 12,000 1,535,250 30,669 Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 9,549 $ 1,732 39 104,858 5,109 45,838 9,727 11,961 1,430, 392 25,560 17.2% 15.1% 0.3% 6.8% 16.7% Total N $1,800 N $1,600 0 0 -c $1,400 $1,200 $1,000 $800 $600 $400 $200 $- $ 1,644,765 $ 121,287 $ Fund 101 Expenditures 2026 Expenditures YTD 2026 Total Budget 1,523,478 7.4% % of Year Complete 16.7% 1 Revenues and Transfers In by Category Category 2026 Total Budget 2026 Revenues through Februar Hotel/Motel Tax Investment Earnings Total $800 $600 $400 $200 $- 1,000,000 $ 47,750 1,047,750 $ Fund 101 Revenues Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 99,429 $ 21,049 120,478 $ 2026 Revenues YTD 2026 Total Budget (900, 571) (26,701) (927,272) 9.9% 44.1% 11.5% % of Year Complete 16.7% 48 City of Tukwila Monthly Finance Report 13 Fund 101 Hotel/Motel Special Revenue Fund Year -to -Year Expenditures & Transfers Out by Category Category 2024 Expenses through February 2025 Expenses through February 2026 Expenses through February 2026 vs 2025 $ % Salaries, Wages, & Overtime Benefits Supplies Services Transfers Out - Internal Cost Allocation $ 15,710 $ 3,556 8,860 $ 1,897 91,325 82,380 4,638 4,869 9,549 $ 689 1,732 (165) 39 39 104,858 22,478 +27.3% 5,109 240 +4.9% +7.8% -8.7% Total $ 115,229 $ 98,006 $ 121,287 $ 23,281 +23.8% Fund 101 Hotel/Motel Special Revenue Fund Year -to -Year Revenues and Transfers In by Category Mi. Category Hotel/Motel Tax Investment Earnings 2024 Revenues through February $ 2025 Revenues through February 114,607 $ 23,663 2026 Revenues through February 101,907 $ 22,593 2026 vs 2025 $ % 99,429 $ (2,478) 21,049 (1,544) -2.4% -6.8% Total Expenditures and Transfers Out Revenues and Transfers In $ 138,270 $ 124,500 $ 120,478 $ (4,022) -3.2% Fund 101 Prior Year Comparisons YTD a ■ $- $20 $40 $60 $80 $100 $120 $140 $160 Thousands ■ 2024 2025 ■ 2026 City of Tukwila Monthly Finance Report 14 49 Fund 102 King County Parks Levy Special Revenue Fund Overview 2026 through February Revenues Transfers In Expenditures $ 2026 Total Budget Budget Variance % of Annual Budget 297,220 49,518 198,072 0.0% 0.0% 0.0% Net Revenues Less Expenditures $ $ 148,666 % of Year Complete 16.7% 50 City of Tukwila Monthly Finance Report 15 Fund 102 King County Parks Levy Special Revenue Fund Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Salaries, Wages, & Overtime Benefits Services $ 136,080 $ 59,992 2,000 136,080 59,992 2,000 0% 0% 0.0% Total $250 -o S $200 0 r H $150 $100 $50 $- 198,072 $ Fund 102 Expenditures 2026 Expenditures YTD $ 198,072 2026 Total Budget 0.0% % of Year Complete 16.7% Revenues and Transfers In by Category Category 2026 Total Budget 2026 Revenues through February Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Utility Taxes Transfer In From Fund 301 297,220 $ 49,518 (297,220) (49,518) 0.0% 0.0% Total Thousands $400 $350 $300 $250 $200 $150 $100 $50 $- $ 346,738 $ Fund 102 Revenues 2026 Revenues YTD 2026 Total Budget (346,738) 0.0% % of Year Complete 16.7% City of Tukwila Monthly Finance Report 16 51 Fund 103 Residential Street Fund Overview 2026 through February Revenues Expenditures 2026 Total Budget Budget Variance of Annual Budget 60,288 $ 52,326 4,869,000 4,953,000 1.2% Net Revenues Less Expenditures $ 7,962 $ (84,000) % of Year Complete 16.7% 52 City of Tukwila Monthly Finance Report 17 Fund 103 Residential Street Fund Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Supplies Services $ - $ 4,953,000 Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 49,359 $ 2,966 (49,359) 4,950,034 0.1 % Total y $6,000 D c N o $5,000 -c H $4,000 $3,000 $2,000 $1,000 $- $ 4,953,000 $ 52,325 $ 4,900,675 Fund 103 Expenditures 2026 Expenditures YTD 2026 Total Budget % of Year Complete 16.7% Revenues and Transfers In by Category Category 2026 Total Budget 2026 Revenues through Februa Utility Taxes Grant Revenues State Entitlements Investment Earnings Total u $6,000 a 2 $5,000 $4,000 $3,000 $2,000 $1,000 $- $ 100,000 $ 4,463,000 280,000 26,000 4,869,000 $ Fund 103 Revenues Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget (100,000) (4,463,000) 48,081 (231,919) 12,207 (13,793) 60,288 $ (4,808,712) 2026 Revenues YTD 2026 Total Budget 0.0% 0.0% 17.2% 47.0% 1.2% % of Year Complete 16.7% City of Tukwila Monthly Finance Report 18 53 Fund 103 Residential Street Fund Year -to -Year Expenditures & Transfers Out by Category Category 2024 Expenses through February 2025 Expenses through February 2026 Expenses through February 2026 vs 2025 $ % Salaries, Wages, & Overtime Benefits Supplies Services $ $ 687 $ 396 60 27,211 $ 49,359 49,359 13,601 $ 2,966 $ (10,635) -78.2% Total $ 28,354 $ 13,601 $ 52,325 $ 38,724 +284.7% Fund 103 Residential Street Fund Year -to -Year Revenues and Transfers In by Category Category State Entitlements Investment Earnings Transfers In 2024 Revenues through February $ 2025 Revenues through February 2026 Revenues through February 41,050 $ 41,253 $ 8,913 9,819 2026 vs 2025 $ % 48,081 $ 6,828 12,207 2,388 +16.6% +24.3% Total Expenditures and Transfers Out Revenues and Transfers In $ 49,963 $ 51,072 $ Fund 103 Prior Year Comparisons YTD L i 60,288 $ 9,216 +18.0% $- $10 $20 $30 $40 $50 $60 $70 Thousands ■ 2024 2025 ■ 2026 54 City of Tukwila Monthly Finance Report 19 Fund 104 Arterial Street Fund Overview 2026 through February Revenues Expenditures $ 2026 Total Budget Budget Variance % of Annual Budget 561,625 $ 688,822 11, 042, 000 10,537,131 5.1% 6.5% Net Revenues Less Expenditures $ (127,197) $ 504,869 % of Year Complete 16.7% City of Tukwila Monthly Finance Report 20 55 Fund 104 Arterial Street Fund Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment $ 903,125 $ 322,056 19,250 9,292,700 Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 113,663 $ 36,750 135,265 403,144 789,462 285,306 19,250 9,157,435 (403,144) Total $12,000 $10,000 0 r 1- $8,000 $6,000 $4,000 $2,000 $- $ 10,537,131 $ 688,822 $ 9,848,309 6.5% Fund 104 Expenditures 2026 Expenditures YTD • 2026 Total Budget % of Year Complete 16.7% Revenues and Transfers In by Category Category 2026 Total Budget 2026 Revenues through February Utility Taxes Parking Tax Real Estate Excise Tax (REET) Franchise Fees Grant Revenues State Entitlements General Government Revenue Traffic Impact Fees Fines and Penalties Other Income $ 1,400,000 $ 800,000 500,000 450,000 7,402,000 135,000 Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 286,417 $ 158,845 105,822 58,235 (1,113,583) (641,155) (394,178) (391,765) (7,402,000) 22,626 (112,374) 20.5% 19.9% 21.2% 12.9% 0.0% 16.8% 200,000 (106,529) (306,529) -53.3% 2,000 1,212 (788) 60.6% 80,000 (29,450) (109,450) -36.8% Investment Earnings 73,000 64,447 (8,553) 88.3% Total $ 11,042,000 $ 561,625 $ (10,480,375) 5.1% w $12,000 -o $10,000 0 t H $8,000 $6,000 $4,000 $2,000 $- Fund 104 Revenues 2026 Revenues YTD 2026 Total Budget % of Year Complete 16.7% 56 City of Tukwila Monthly Finance Report 21 Fund 104 Arterial Street Fund Year -to -Year Expenditures & Transfers Out by Category Category 2024 Expenses 2025 Expenses through February through February 2026 Expenses through February 2026 vs 2025 $ % Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment $ 78,695 $ 28,079 734 117,193 224,270 109,034 $ 38,134 478 94,433 91,122 113,663 $ 36,750 135,265 403,144 4,629 (1,384) (478) 40,832 312,022 +4.2% -3.6% -100.0% +43.2% +342.4% Total $ 448,971 $ 333,201 $ 688,822 $ 355,621 +106.7% Fund 104 Arterial Street Fund Year -to -Year Revenues and Transfers In by Category Category Utility Taxes Parking Tax Real Estate Excise Tax (REET) Franchise Fees Grant Revenues State Entitlements General Government Revenue Traffic Impact Fees Fines and Penalties Other Income Investment Earnings 2024 Revenues through February $ 2025 Revenues through February 2026 Revenues through February 17,540 $ 258,226 $ 182,251 143,278 165,000 118,624 18,520 81,783 235,616 314,712 19,318 19,413 135 5,292 60,623 825 562 13,300 60,100 48,566 45,376 2026 vs 2025 $ 286,417 $ 28,191 +11% 158,845 15,567 +10.9% 105,822 (12,802) -10.8% 58,235 (23,548) -28.8% (314,712) -100.0% 22,626 3,213 +16.6% (135)-100.0% (106,529) (167,152) -275.7% 1,212 650 +115.7% (29,450) (89,550) -149.0% 64,447 19,071 +42.0% Total Expenditures and Transfers Out Revenues and Transfers In $ 706,228 $ 1,102,832 $ Fund 104 Prior Year Comparisons YTD In_ AM 561,625 $ (541,207) -49.1% $- $200 $400 $600 $800 $1,000 $1,200 Thousands ■ 2024 2025 ■ 2026 City of Tukwila Monthly Finance Report 22 57 Fund 109 Drug Seizure Fund Overview 2026 through February Revenues Expenditures $ 2026 Total Budget Budget Variance of Annual Budget 20,005 $ 455 98,100 73,000 20.4% 0.6% Net Revenues Less Expenditures $ 19,550 $ 25,100 % of Year Complete 16.7% 58 City of Tukwila Monthly Finance Report 23 Fund 109 Drug Seizure Fund Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Supplies Services $ 36,000 $ 37,000 Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 455 $ 35,545 37,000 1.3% 0.0% Total 0 $80 -o c y $70 0 0 t 1- $60 $50 $40 $30 $20 $10 $- $ 73,000 $ Fund 109 Expenditures 2026 Expenditures YTD 455 $ 72,545 2026 Total Budget 0.6% % of Year Complete 16.7% Revenues and Transfers In by Category Category 2026 Total Budget 2026 Revenues through Februar Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget Intergovernmental Other Income Investment Earnings Total $80 $60 $40 $20 $- $ 35,000 $ 60,000 3,100 98,100 $ Fund 109 Revenues 20,005 $ 20,005 $ 2026 Revenues YTD 2026 Total Budget (14,995) (60,000) (3,100) (78,095) 57.2% 0.0% 0.0% 20.4% % of Year Complete 16.7% City of Tukwila Monthly Finance Report 24 59 Fund 109 Drug Seizure Fund Year -to -Year Expenditures & Transfers Out by Category 2024 Expenses through February 2025 Expenses through February 2026 Expenses throu . h February 2026 vs 2025 Supplies $ 388 $ 31,532 $ 455 $ (31,077) -98.6% Total $ 17,388 $ 31,532 $ 455 $ (31,077) -98.6% Fund 109 Drug Seizure Fund Year -to -Year Revenues and Transfers In by Category Mmia 2024 Revenues through February Total $ Expenditures and Transfers Out Revenues and Transfers In ft 2025 Revenues through February 2026 Revenues through February Fund 109 Prior Year Comparisons YTD i 5 94 2026 vs 2025 20,005 $ 20,005 10 15 20 25 30 35 Thousands ■ 2024 2025 • 2026 60 City of Tukwila Monthly Finance Report 25 Fund 301 Land Acq., Rec. & Park Development Overview 2026 through February Revenues Expenditures Transfers Out 2026 Total Budget Budget Variance % of Annual Budget 93,896 $ 171,381 5,447,500 6,663,000 49,518 1.7% 2.6% 0.0% Net Revenues Less Expenditures $ (77,485) $ (1,265,018) % of Year Complete 16.7% City of Tukwila Monthly Finance Report 26 61 Fund 301 Land Acq., Rec. & Park Development Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Supplies Services Land, Structures, Machinery, Equipment Transfers Out to Other Funds $ 335,000 $ 4,425,000 1,903,000 49,518 Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 29,760 $ 129,898 11,723 305,240 4,295,102 1,891,277 49,518 Total N a C $8,000 y $7,000 O O -c 1- $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- 6,712,518 $ 171,381 $ Fund 301 Expenditures 2026 Expenditures YTD 2026 Total Budget 6,541,137 2.6% % of Year Complete 16.7% Revenues and Transfers In by Category Category 2026 Total Budget 2026 Revenues through Februar Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget Grant Revenues Park Impact Fees Investment Earnings Total 2 $5,000 $4,000 $3,000 $2,000 $1,000 $- 5,290,000 $ 100,000 57,500 5,447,500 $ Fund 301 Revenues 50,000 15,278 28,618 93,896 $ 2026 Revenues YTD 2026 Total Budget (5,240,000) (84,722) (28,882) (5,353,604) 0.9% 15.3% 49.8% 1.7% % of Year Complete 16.7% City of Tukwila Monthly Finance Report 27 62 Fund 301 Land Acq., Rec. & Park Development Year -to -Year Expenditures & Transfers Out by Category Category 2024 Expenses through February 2025 Expenses through February 2026 Expenses through February 2026 vs 2025 Supplies Services Land, Structures, Machinery, Equipment 79,910 37,248 29,760 $ 129,898 11,723 29,760 92,650 11,723 +248.7% Total 79,910 $ 37,248 $ 171,381 $ 134,133 +360.1% Fund 301 Land Acq., Rec. & Park Development Year -to -Year Revenues and Transfers In by Category Category Grant Revenues Park Impact Fees Investment Earnings Transfers In 2024 Revenues through February 2025 Revenues through February 2026 Revenues through February - $ 749,810 $ 3,629 9,969 36,192 25,947 2026 vs 2025 $ 50,000 $ (699,810) 15,278 5,309 28,618 2,671 -93.3% +53.3% +10% Total Expenditures and Transfers Out 39,821 $ 785,726 $ Fund 301 Prior Year Comparisons YTD 93,896 $ (691,830) -88.0% ■ 2024 2025 • 2026 Revenues and Transfers In 1 $- $100 $200 $300 $400 $500 $600 $700 $800 $900 Thousands City of Tukwila Monthly Finance Report 28 63 Fund 303 General Government Improvements Overview 2026 through February Revenues Transfers In Expenditures $ 2026 Total Budget Budget Variance % of Annual Budget 1,101 $ 66,670 1,000 400,000 400,000 Net Revenues Less Expenditures $ 67,771 $ 1,000 % of Year Complete 16.7% 64 City of Tukwila Monthly Finance Report 29 Fund 303 General Government Improvements Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Services $ 400,000 Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget $ 400,000 0.0% Total Thousands $450 $400 $350 $300 $250 $200 $150 $100 $50 $- 400,000 Fund 303 Expenditures 2026 Expenditures YTD 2026 Total Budget 400,000 0.0% % of Year Complete 16.7% Revenues and Transfers Ir.ry Category 2026 Total Budget 2026 Revenues throu•h Februar Investment Earnings Transfer In From General Fund Total $450 -o c N $400 t $350 $300 $250 $200 $150 $100 $50 $- $ 1,000 $ 400,000 401,000 $ Fund 303 Revenues Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 1,101 $ 66,670 67,771 $ 2026 Revenues YTD 2026 Total Budget 101 (333,330) (333,229) % of Year Complete 16.7% City of Tukwila Monthly Finance Report 30 65 Fund 303 General Government Improvements Year -to -Year Expenditures & Transfers Out by Category Category 2024 Expenses through February 2025 Expenses through February 2026 Expenses through February 2026 vs 2025 $ Total $ $ $ 0.0% Fund 303 General Government Improvements Year -to -Year Revenues and Transfers In by Category f" Category 2024 Revenues through February 2025 Revenues through February 2026 Revenues through February 2026 vs 2025 Investment Earnings Transfer In From General Fund $ 3,772 $ 3,238 $ 1,101 $ 66,670 (2,137) 66,670 -66% Total Expenditures and Transfers Out Revenues and Transfers In 1 $- $ 3,772 $ 3,238 $ Fund 303 Prior Year Comparisons YTD 67,771 $ 64,533 +1993.0% $10 $20 $30 $40 $50 $60 $70 $80 Thousands ■ 2024 2025 ■ 2026 66 City of Tukwila Monthly Finance Report 31 Fund 304 Fire Improvements +Overview 2026 through February Revenues Transfers Out 2026 Total Budget Budget Variance % of Annual Budget 9,599 $ 600,000 600,000 1.6% 0.0% Net Revenues Less Expenditures $ 9,599 $ % of Year Complete 16.7% City of Tukwila Monthly Finance Report 32 67 Fund 304 Fire Improvements Transfers Out Category 2026 Total Budget 2026 Transfers Out through February Transfers Out to Other Funds $ 600,000 $ Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 600,000 0% Total 0 $700 D c 2 $600 0 t H $500 $400 $300 $200 $100 $- 600,000 $ Fund 304 Transfers Out 2026 Expenditures YTD 2026 Total Budget 600,000 0.0% % of Year Complete 16.7% s and Transfers In b Category 2026 Total Budget 2026 Revenues through February Fire Impact Fees Investment Earnings $ 600,000 $ Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 9,569 $ 30 (590,431) 30 1.6% Total $700 a c m y a $600 t H $$00 $400 $300 $200 $100 $- 600,000 $ Fund 304 Revenues 9,599 $ 2026 Revenues YTD 2026 Total Budget (590,401) 1.6% % of Year Complete 16.7% City of Tukwila Monthly Finance Report 33 68 Fund 304 Fire Improvement Year -to -Year Expenditures & Transfers Out by Category Category 2024 Expenses through February 2025 Expenses through February 2026 Expenses through February 2026 vs 2025 $ % Transfers Out to Other Funds $ Total $ $ Fund 304 Fire Improvements Year -to -Year Revenues and Transfers In by Category Category Fire Impact Fees Investment Earnings 2024 Revenues through February $ 2025 Revenues through February 2026 Revenues through February 2,136 $ 11,866 $ 2026 vs 2025 $ % 9,569 $ 30 (2,297) 30 -19.4% Total Expenditures and Transfers Out Revenues and Transfers In $ 2,136 $ 11,866 $ Fund 304 Prior Year Comparisons YTD 9,599 $ $- (2,267) -19.1% $2 $4 $6 $8 $10 $12 $14 Thousands ■ 2024 2025 • 2026 City of Tukwila Monthly Finance Report 34 69 Fund 305 Public Safety Plan Overview 2026 through February Revenues Transfers In Transfers Out $ 2026 Total Budget Budget Variance % of Annual Budget 112,915 $ 219,639 515,000 600,000 1,317,849 21.9% 0.0% 16.7% Net Revenues Less Expenditures $ (106,724) $ (202,849) % of Year Complete 16.7% 70 City of Tukwila Monthly Finance Report 35 Fund 305 Public Safety Plan Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget Transfers Out to Other Funds $ 1,317,849 $ 219,639 $ 1,098,210 17% Total 0 $1,400 a c 2 $1,200 0 t H $1,000 $800 $600 $400 $200 $- 1,317,849 $ Fund 305 Expenditures 2026 Expenditures YTD 219,639 $ 2026 Total Budget 1,098,210 16.7% % of Year Complete 16.7% Revenues and Transfers In by Category Category 2026 Total Budget 2026 Revenues throu•h Februar Real Estate Excise Tax (REET) Investment Earnings Transfers In Total $800 $600 $400 $200 $- $ 500,000 $ 15,000 600,000 1,115,000 $ Fund 305 Revenues Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 105,822 $ 7,093 112,915 $ 2026 Revenues YTD 2026 Total Budget (394,178) (7,907) (600,000) (1,002,085) 21.2% 47.3% 0% 10.1% % of Year Complete 16.7% City of Tukwila Monthly Finance Report 36 71 Fund 305 Public Safety Plan Year -to -Year Expenditures & Transfers Out by Category Category 2024 Expenses through February 2025 Expenses through February 2026 Expenses through February 2026 vs 2025 $ Transfers Out to Other Funds $ 219,639 219,639 Total 219,639 219,639 Fund 305 Public Safety Plan Year -to -Year Revenues and Transfers In by Category Category 2024 Revenues through February Real Estate Excise Tax (REET) $ Investment Earnings 2025 Revenues through February 165,000 $ 8,957 2026 Revenues through February 118,624 $ 9,105 2026 vs 2025 105,822 $ 7,093 (12,802) (2,012) -10.8% -22% Total Expenditures and Transfers Out Revenues and Transfers In $ 173,957 $ 127,729 $ 112,915 $ (14,814) -11.6% Fund 305 Prior Year Comparisons YTD $- $50 $100 $150 $200 $250 Thousands ■ 2024 2025 • 2026 72 City of Tukwila Monthly Finance Report 37 Fund 306 City Facilities Overview 2026 through February Revenues Expenditures $ 2026 Total Budget Budget Variance % of Annual Budget 12,644 $ 5,000 825,238 252.9% 0.0% Net Revenues Less Expenditures $ 12,644 $ (820,238) % of Year Complete 16.7% City of Tukwila Monthly Finance Report 38 73 Fund 306 City Facilities Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget Services $ 825,238 $ 825,238 0.0% Total N a $900 y $800 p O -c $700 $600 $500 $400 $300 $200 $100 $- 825,238 $ Fund 306 Expenditures 2026 Expenditures YTD 2026 Total Budget 825,238 0.0% % of Year Complete 16.7% Revenues and Transfers In by Category Category 2026 Total Budget 2026 Revenues through Februa Investment Earnings Total 5,000 $ 5,000 $ Fund 306 Revenues Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 12,644 $ 12,644 $ 2026 Revenues YTD 2026 Total Budget 7,644 7,644 252.9% 252.9% % of Year Complete 16.7% 74 City of Tukwila Monthly Finance Report 39 Fund 306 City Facilities Year -to -Year Expenditures & Transfers Out by Category Category 2024 Expenses through February 2025 Expenses through February 2026 Expenses through February 2026 vs 2025 $ % Services $ 22,680 $ 41,262 $ - $ (41,262) -100.0% Total $ 22,680 $ 41,262 $ - $ (41,262) -100.0% Fund 306 City Facilities Year -to -Year Revenues and Transfers In by Category Category Investment Earnings 2024 Revenues through February $ 2025 Revenues through February 111 $ 2026 Revenues through February - $ 2026 vs 2025 $ % 12,644 $ 12,644 Total Expenditures and Transfers Out $ 111 $ Fund 306 Prior Year Comparisons YTD II 12,644 $ 12,644 2024 2025 ■ 2026 Revenues and Transfers In $- $5 $10 $15 $20 $25 $30 $35 $40 $45 Thousands City of Tukwila Monthly Finance Report 40 75 Fund 401 Water Utility Fund Overview 2026 through February Revenues Expenditures Transfers Out $ 2026 Total Budget Budget Variance of Annual Budget 1,354,678 $ 1,327,712 196,778 10,254,836 9,842,428 1,180,665 13.2% 13.5% 16.7% Net Revenues Less Expenditures $ (169,812) $ (768,257) % of Year Complete 16.7% 76 City of Tukwila Monthly Finance Report 41 Fund 401 Water Utility Fund Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Other Expenditures Transfers Out - Internal Cost Allocation Transfers Out - Debt Service $ 1,072,892 $ 433,831 3,178,660 3,741,847 1,200,000 215,198 857,044 323,621 Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget 148,469 $ 55,788 750,494 372,961 142,844 53,934 924,423 378,043 2,428,166 3,368,886 1,200,000 215,198 714,200 269,687 14% 13% 23.6% 10.0% 0% 0.0% 17% 17% Total $12,000 •o m S, $10,000 0 t H $8,000 $6,000 $4,000 $2,000 $- $ 11,023,093 $ 1,524,490 $ 9,498,603 Fund 401 Expenditures and Transfers Out 2026 Expenditures YTD 2026 Total Budget 13.8% % of Year Complete 16.7% Revenues and Transfers In by Category Category 2026 Total Budget 2026 Revenues through February Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Water Sales Other Income Investment Earnings Total $12,000 a c m 2 $10,000 0 t- $8,000 $6,000 $4,000 $2,000 $- $ 10,153,336 $ 1,500 100,000 $ 10,254,836 $ Fund 401 Revenues 1,329,220 $ 7,802 17,394 1,354,678 $ 2026 Revenues YTD 2026 Total Budget (8,824,116) 6,302 (82,606) (8,900,158) 13.1% 520.1% 17.4% 13.2% of Year Complete 16.7% City of Tukwila Monthly Finance Report 42 77 Fund 401 Water Utility Fund Year -to -Year Expenditures & Transfers Out by Category Category 2024 Expenses through February 2025 Expenses through February 2026 Expenses through February 2026 vs 2025 Salaries, Wages, & Overtime Benefits Supplies Services Transfers Out - Internal Cost Allocation Transfers Out - Debt Service 110,374 $ 57,338 691,359 307,738 129,564 146,126 $ 63,850 732,692 347,376 136,042 148,469 $ 2,343 55,788 (8,062) 750,494 17,802 372,961 25,585 142,844 6,802 53,934 53,934 + 5% Total $ 1,352,438 $ 1,426,086 $ 1,524,490 $ 98,404 +6.9% Fund 401 Water Utility Fund Year -to -Year Revenues and Transfers In by Category Category 2024 Revenues through February 2025 Revenues through February Water Sales $ 1,150,782 $ 1,233,480 Security Revenue 2,526 1,061 Other Income 1,631 6,286 Investment Earnings 23,229 10,560 Bond Proceeds 2026 Revenues through February 1,329,220 $ 262 7,802 17,394 2026 vs 2025 95,740 (799) 1,516 6,834 + 8% -75.3% +24.1 % +65% Total Expenditures and Transfers Out Revenues and Transfers In $ 1,178,168 $ 1,251,387 $ 1,354,678 $ 103,291 +8.3% Fund 401 Prior Year Comparisons YTD $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 Thousands ■ 2024 2025 • 2026 78 City of Tukwila Monthly Finance Report 43 Fund 402 Sewer Utility Fund Overview 1 _EM Revenues Expenditures Transfers Out $ 2026 through February 2026 Total Budget Budget Variance % of Annual Budget 1,876,248 $ 1,592,031 150,477 13,101,957 15,014,171 902,896 14.3% 10.6% 16.7% Net Revenues Less Expenditures $ 133,740 $ (2,815,110) % of Year Complete 16.7% City of Tukwila Monthly Finance Report 44 79 Category 2026 Total Budget 2026 Expenses through February Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget Salaries, Wages, & Overtime Benefits Supplies Services Other Expenditures Transfers Out - Internal Cost Allocation Transfers Out - Debt Service $ 808,921 336,137 6,566,705 7,148,149 154,259 722,049 180,847 $ 134,905 $ 51,375 1,027,776 377,975 120,339 30,138 674,016 284,762 5,538,929 6,770,174 154,259 601,710 150,709 17% 15% 15.7% 5.3% 0% 17% 17% Total (/) $18,000 y $16,000 z $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- $ 15,917,067 $ 1,742,508 $ 14,174,559 10.9% Fund 402 Expenditures and Transfers Out 2026 Expenditures YTD 2026 Total Budget % of Year Complete 16.7% Category 2026 Total Budget 2026 Revenues through February Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget Sewer Sales Other Income Investment Earnings Total Thousands $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- $ 12,701,957 $ 1,808,600 $ 159 400,000 67,488 $ 13,101,957 $ 1,876,247 $ Fund 402 Revenues 2026 Revenues YTD 2026 Total Budget (10,893,357) 159 (332,512) (11,225,710) 14.2% 16.9% 14.3% % of Year Complete 16.7% 80 City of Tukwila Monthly Finance Report 45 Year -to -Year xpen i Category 2024 Expenses 2025 Expenses through February through February 2026 Expenses through February 2026 vs 2025 $ % Salaries, Wages, & Overtime Benefits Supplies Services Transfers Out - Internal Cost Allocation Transfers Out - Debt Service $ 168,068 $ 75,044 874,265 318,889 109,150 135,331 57,225 953,155 353,025 114,606 $ 134,905 $ (426) 51,375 (5,850) 1,027,776 74,621 377,975 24,950 120,339 5,733 30,138 30,138 +5% Total $ 1,545,416 $ 1,830,425 $ 1,742,508 $ (87,917) -4.8% Mir Fund 402 Sewer Utility Fund Year -to -Year Revenues and Transfers In b EOM 2024 Revenues through February 2025 Revenues through February Sewer Sales $ 1,688,687 $ Other Income 1,642 Investment Earnings 78,611 2026 Revenues through February 1,804,763 $ 796 42,190 2026 vs 2025 $ 1,808,600 $ 3,837 159 (637) 67,488 25,298 +0% -80.0% +60.0% Total Expenditures and Transfers Out $ 1,768,940 $ 1,847,749 $ 1,876,247 $ 28,498 +1.5% Fund 402 Prior Year Comparisons YTD N 1! ■ 2024 2025 ■ 2026 Revenues and Transfers In =IF $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Thousands City of Tukwila Monthly Finance Report 46 81 Fund 411 Foster Golf Course Overview 2026 through February Revenues Transfers In Expenditures Transfers Out $ 2026 Total Budget Budget Variance % of Annual Budget 164,809 $ 50,000 333,617 42,317 2,487,500 300,000 3,033,955 253,877 6.6% 16.7% 11.0% 16.7% Net Revenues Less Expenditures $ (161,125) $ (500,332) % of Year Complete 16.7% 82 City of Tukwila Monthly Finance Report 47 Fund 411 Foster Golf Course Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Transfers Out - Internal Cost Allocation $ 1,120,276 $ 417,826 378,155 392,698 725,000 253,877 161,428 $ 61,639 22,575 87,975 42,317 958,848 356,187 355,580 304,723 725,000 211,560 14% 15% 6.0% 22.4% 0% 17% Total Thousands $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- 3,287,832 $ 375,934 $ Fund 411 Expenditures and Transfers Out 2026 Expenditures YTD 2026 Total Budget 2,911,898 11.4% % of Year Complete 16.7% Revenues and Transfers In by Category Category 2026 Total Budget 2026 Revenues through February Gambling & Excise Taxes Greens Fees General Government Revenue Culture and Recreation Fees Other Income Investment Earnings Rent & Concessions $ 3,000 $ 1,610,000 165,000 5,000 Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget (3,000) (1,491,844) (153,230) 547 (4,453) 0.0% 7.3% 7.1 % 10.9% 11,000 319 (10,681) 2.9% 60,000 16,025 (43,975) 26.7% 633,500 17,992 (615,508) 2.8% Transfer In From General Fund 300,000 50,000 (250,000) 17% Total $ 2,787,500 $ 214,809 $ (2,572,691) 7.7% N $3,000 a c $2,500 t $2,000 $1,500 $1,000 $500 5- Fund 411 Revenues and Transfers In 2026 Revenues YTD 2026 Total Budget % of Year Complete 16.7% City of Tukwila Monthly Finance Report 48 83 Fund 411 Foster Golf Course Year -to -Year Expenditures & Transfers Out by Category Category 2024 Expenses 2025 Expenses through February through February 2026 Expenses through February 2026 vs 2025 Salaries, Wages, & Overtime Benefits Supplies Services Transfers Out - Internal Cost Allocation 138,715 $ 62,315 47,941 198,041 38,374 156,670 $ 64,556 24,275 67,996 40,298 161,428 $ 4,758 61,639 (2,917) 22,575 (1,700) 87,975 19,979 42,317 2,019 +3.0% -4.5% -7.0% +29.4% +5% Total $ 534,627 $ 353,795 $ 375,934 $ 22,139 +6.3% Fund 411 Foster Golf Course Year -to -Year Revenues and Transfers In by Category Category 2024 Revenues through February 2025 Revenues through February 2026 Revenues through February 2026 vs 2025 Greens Fees General Government Revenue Culture and Recreation Fees Other Income Investment Earnings Rent & Concessions Sale of Capital Assets Transfer In From General Fund $ 79,170 $ 65,622 $ 8,473 24,282 215 973 13,369 15,548 9,809 22,135 19,144 4,000 118,156 $ 52,534 11,770 (12,512) 547 332 319 (13,050) 16,025 6,216 +63% 17,992 (1,152) -6% 50,000 50,000 +80.1 % -51.5% +154.4% -98% Total Expenditures and Transfers Out Revenues and Transfers In $ 130,299 $ 132,441 $ 214,809 $ 82,368 +62.2% Fund 411 Prior Year Comparisons YTD $- $100 $200 $300 $400 $500 $600 Thousands ■ 2024 2025 ■ 2026 84 City of Tukwila Monthly Finance Report 49 Fund 412 Surface Water Utility Fund Overview 2026 through February Revenues Expenditures Transfers Out $ 2026 Total Budget Budget Variance of Annual Budget 64,780 $ 585,697 201,871 14,978,410 15, 876, 895 1,211,208 0.4% 3.7% 16.7% Net Revenues Less Expenditures $ (722,788) $ (2,109,693) % of Year Complete 16.7% City of Tukwila Monthly Finance Report 50 85 Fund 412 Surface Water Utility Fund Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget Salaries, Wages, & Overtime Benefits Supplies Services Other Expenditures Transfers Out - Internal Cost Allocation Transfers Out - Debt Service $ 2,190,135 $ 871,327 74,965 12,718,860 21,608 763,850 447,358 267,872 96,348 11,384 210,093 127,310 74,561 1,922,263 774,979 63,581 12,508,767 21,608 636,540 372,797 Total $18,000 y $16,000 z $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- $ 17,088,103 $ 787,568 $ 16,300,535 4.6% Fund 412 Expenditures and Transfers Out 2026 Expenditures YTD 2026 Total Budget % of Year Complete 16.7% Revenues and Transfers In by Category Category 2026 Total Budget 2026 Revenues rough February Surface Water Sales Grant Revenues Other Income Investment Earnings Total Thousands $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- $ 8,868,410 $ 2,965,000 2,845,000 300,000 $ 14,978,410 $ Fund 412 Revenues Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget (8,868,410) (2,965,000) 1,565 (2,843,435) 63,215 (236,785) 64,780 $ (14,913,630) 2026 Revenues YTD 2026 Total Budget 0.0% 0.0% 0.1% 21.1% 0.4% % of Year Complete 16.7% 86 City of Tukwila Monthly Finance Report 51 Fund 412 Surface Water Utility Fund Year -to -Year Expenditures & Transfers Out by Category Category 2024 Expenses through February 2025 Expenses through February 2026 Expenses through February 2026 vs 2025 Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Transfers Out - Internal Cost Allocation Transfers Out - Debt Service 225,335 $ 101,192 7,692 168,148 115,474 257,503 $ 105,682 4,516 209,140 108,298 121,246 267,872 $ 10,369 96,348 (9,334) 11,384 6,868 210,093 953 (108,298) 127,310 6,064 74,561 74,561 +4.0% -8.8% +152.1 % +0.5% -100.0% +5% Total 617,841 $ 806,385 $ 787,568 $ (18,817) -2.3% Fund 412 Surface Water Utility Fund Year -to -Year Revenues and Transfers In by Category Category 2024 Revenues through February 2025 Revenues 2026 Revenues through February through February 2026 vs 2025 Grant Revenues Other Income Investment Earnings - $ 719,811 86,254 172,760 $ 157,757 61,175 - $ (172,760) 1,565 (156,192) 63,215 2,040 -100.0% -99.0% +3% Total Expenditures and Transfers Out Revenues and Transfers In $ 806,065 $ 391,692 $ Fund 412 Prior Year Comparisons YTD 64,780 $ (326,912) -83.5% ■ $- $100 $200 $300 $400 $500 $600 $700 $800 $900 Thousands ■ 2024 ■ 2025 • 2026 City of Tukwila Monthly Finance Report 52 87 Fund 501 Equipment Rental Overview 2026 through February Revenues Expenditures Transfers Out $ 2026 Total Budget Budget Variance % of Annual Budget 973,362 $ 567,142 67,603 6,093,106 4,541,184 405,623 16.0% 12.5% 16.7% Net Revenues Less Expenditures $ 338,617 $ 1,146,299 % of Year Complete 16.7% 88 City of Tukwila Monthly Finance Report 53 Fund 501 Equipment Rental Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Transfers Out - Internal Cost Allocation $ 541,485 $ 245,102 803,150 1,893,447 1,058,000 405,623 Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 70,623 $ 31,363 68,042 291,974 105,140 67,603 470,862 213,739 735,108 1,601,473 952,860 338,020 13% 13% 8.5% 15.4% 10% 17% Total 4,946,807 $ 634,745 $ Fund 501 Expenditures and Transfers Out y $6,000 u c o $5,000 L $4,000 $3,000 $2,000 $1,000 $- 2026 Expenditures YTD 1 2026 Total Budget 4,312,062 12.8% % of Year Complete 16.7% Revenues and Transfers In by Category Category 2026 Total Budget 2026 Revenues through Februa Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget Fleet Replacement Charges Fleet Lease Charges Fleet Repair Charges Other Income Investment Earnings Sale of Capital Assets Total $7,000 173 $6,000 0 ~ $5,000 $4,000 $3,000 $2,000 $1,000 $- $ 2,373,892 3,317,114 200,000 2,100 40,000 160,000 6,093,106 $ $ Fund 501 Revenues 395,662 $ 544,371 (1,978,230) (2,772,743) (200,000) (2,100) 16.7% 16.4% 0.0% 0.0% 15,983 (24,017) 40.0% 17,346 (142,654) 10.8% 973,362 $ (5,119,744) 16.0% 2026 Revenues YTD 2026 Total Budget % of Year Complete 16.7% City of Tukwila Monthly Finance Report 54 89 Fund 501 Equipment Rental Year -to -Year Expenditures & Transfers Out by Category Category 2024 Expenses 2025 Expenses through February through February 2026 Expenses through February 2026 vs 2025 $ % Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Transfers Out - Internal Cost Allocation $ 58,477 31,228 123,549 283,364 130,319 61,322 $ 84,129 $ 38,825 103,822 148,473 64,388 70,623 $ (13,506) 31,363 (7,462) 68,042 (35,780) 291,974 143,501 105,140 105,140 67,603 3,215 -16.1% -19.2% -34.5% +96.7% +5% Total $ 688,259 $ 439,637 $ 634,745 $ 195,108 +44.4% Fund 501 Equipment Rental Year -to -Year Revenues and Transfers In by Category Categ. 2024 Revenues through February 2025 Revenues 2026 Revenues through February through February 2026 vs 2025 $ % Fleet Replacement Charges Fleet Lease Charges Other Income Investment Earnings Sale of Capital Assets $ 206,788 $ 33,164 10,853 382,373 $ 2,406 11,942 53,969 395,662 $ 13,289 544,371 544,371 - - (2,406) -100.0% 15,983 4,041 +34% 17,346 (36,623) -68% +3% Total Expenditures and Transfers Out Revenues and Transfers In $ M. 257,008 $ 467,604 $ Fund 501 Prior Year Comparisons YTD 973,362 $ 505,758 +108.2% $- $200 $400 $600 $800 $1,000 $1,200 Thousands ■ 2024 2025 ■ 2026 90 City of Tukwila Monthly Finance Report 55 Fund 502 Insurance - Active Employees Overview 2026 through February Revenues Expenditures Transfers Out $ 2026 Total Budget Budget Variance % of Annual Budget 1,195,133 $ 915,814 36,591 8,346,309 6,812,349 219,531 14.3% 13.4% 16.7% Net Revenues Less Expenditures $ 242,728 $ 1,314,429 % of Year Complete 16.7% City of Tukwila Monthly Finance Report 56 91 Fund 502 Insurance - Active Employees Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Self Insurance Medical Claims Dental Claims Prescription Claims Vision Claims Stop Loss Reimbursements TPA Admin Fees Excess Loss Prem Contracted Services Employee Wellness Services Transfers Out - Internal Cost Allocation $ 4,272,660 429,838 1,205,109 22,507 161,235 600,000 100,000 18,000 219,531 $ Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget 570,279 $ 78,830 158,159 7,625 (129,863) 41,839 187,752 1,193 36,591 3,702,381 351,008 1,046,950 14,882 129,863 119,396 412,248 98,807 18,000 182,940 13% 18% 13.1% 33.9% 26% 31% 1% 0% 17% Total Thousands $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- 7,028,880 $ 952,405 $ Fund 502 Expenditures and Transfers Out 2026 Expenditures YTD 2026 Total Budget 6,076,475 13.5% % of Year Complete 16.7% Revenues and Transfers In by Category Category 2026 Total Budget 2026 Revenues through February Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget Employer Trust Contributions Employee Voluntary Contributions Employee Mandatory Contributions Investment Earnings Total c t0 0 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- $ 7,919,276 $ 379,533 47,500 8,346,309 $ Fund 502 Revenues 1,088,537 $ 14,549 56,474 35,573 1,195,133 $ 2026 Revenues YTD 2026 Total Budget (6,830,739) 14,549 (323,059) (11,927) (7,151,176) 13.7% 14.9% 74.9% 14.3% % of Year Complete 16.7% 92 City of Tukwila Monthly Finance Report 57 Fund 502 Insurance - Active Employees Year -to -Year Expenditures & Transfers Out by Category J ..M 2024 Expenses through February 2025 Expenses through February 2026 Expenses through February 2026 vs 2025 $ % Self Insurance Medical Claims Dental Claims Prescription Claims Vision Claims Stop Loss Reimbursements TPA Admin Fees Excess Loss Prem Contracted Services Employee Wellness Services Transfers Out - Internal Cost Allocation $ 622,608 $ 59,154 153,024 4,265 (105,713) 24,985 67,116 14,149 132 33,191 438,671 $ 18,174 107,511 6,220 (82,417) 39,809 143,996 14,277 4,945 34,847 570,279 $ 131,608 78,830 60,656 158,159 50,648 7,625 1,405 (129,863) (47,446) 41,839 2,030 187,752 43,756 1,193 (13,084) (4,945) 36,591 1,744 +30.0% +333.8% +47.1% +22.6% +57.6% +5.1% +30.4% -92% -100% +5% Total $ 872,911 $ 726,033 $ 952,405 $ 226,372 +31.2% 'W is Fund 502 Insurance - Active Employees Year -to -Year Revenues and Transfers In by Category 2024 Revenues through February 2025 Revenues through February Employer Trust Contributions $ 1,037,879 $ 1,084,871 Employee Voluntary Contributions 4,095 8,602 Employee Mandatory Contributions 13,867 54,579 Investment Earnings 35,683 31,387 2026 Revenues through February $ 2026 vs 2025 $ % 1,088,537 $ 14,549 56,474 35,573 3,666 5,947 1,895 4,186 Total Expenditures and Transfers Out Revenues and Transfers In $ 1,091,524 $ 1,179,439 $ 1,195,133 $ 15,694 +1.3% Fund 502 Prior Year Comparisons YTD $- $200 $400 $600 $800 $1,000 $1,200 $1,400 Thousands ■ 2024 2025 ■ 2026 City of Tukwila Monthly Finance Report 58 93 Fund 503 Insurance - LEOFF I Retirees Overview 2026 through February Revenues Expenditures Transfers Out $ 2026 Total Budget Budget Variance % of Annual Budget 68,032 $ 41,359 2,435 474,514 585,268 14,635 14.3% 7.1% 16.6% Net Revenues Less Expenditures $ 24,238 $ (125,389) of Year Complete 16.7% 94 City of Tukwila Monthly Finance Report 59 Fund 503 Insurance - LEOFF I Retirees Expenditures and Transfers Out by Category Category 2026 Total Budget 2026 Expenses through February Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget Self Insurance Medical Claims Dental Claims Prescription Claims Vision Claims TPA Admin Fees Excess Loss Premium Long Term Care Out of Pocket Medicare Plan B Contracted Services Transfers Out - Internal Cost Allocation $ 156,000 $ 45,000 176,430 4,596 519 13,116 3,649 25,126 7,363 85,000 12,191 15,000 60,000 5,000 14,635 5,472 $ 150,528 8,723 36,277 176,430 4,077 9,467 17,763 72,809 15,000 3,442 56,558 5,000 2,435 12,200 4% 19% 0.0% 11.3% 28% 29% 14% 0% 6% 0% 17% Total $ 599,903 $ 43,794 $ 556,109 7.3% 0 $700 -c $600 0 0 t 1- $500 $400 $300 $200 $100 $- Fund 503 Expenditures and Transfers Out 2026 Expenditures YTD 2026 Total Budget % of Year Complete 16.7% Revenues and Transfers In by Category Category 2026 Total Budget 2026 Revenues through Februa Budget Variance Budget Variance (Unfavorable) / Favorable % of Annual Budget Employer Trust Contributions Investment Earnings Total Thousands $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $- $ 474,000 $ 514 474,514 $ Fund 503 Revenues 65,478 $ 2,554 68,032 $ 2026 Revenues YTD 2026 Total Budget (408,522) 2,040 (406,482) 13.8% 496.9% 14.3% % of Year Complete 16.7% City of Tukwila Monthly Finance Report 60 95 Fund 503 Insurance - LEOFF I Retirees Year -to -Year Expenditures & Transfers Out by Category Category 2024 Expenses through February 2025 Expenses through February 2026 Expenses through February 2026 vs 2025 Self Insurance Medical Claims Dental Claims Prescription Claims Vision Claims TPA Admin Fees Excess Loss Premium Long Term Care Transfers Out - Internal Cost Allocation 11,774 $ 2,534 24,928 1,111 2,605 2,890 11,664 2,214 8,657 $ 6,450 18,542 921 3,656 5,935 12,228 2,318 (3,185) 2,273 (18,542) 519 (402) 3,649 (7) 7,363 1,428 12,191 (37) 2,435 117 5,472 $ 8,723 -36.8% +35.2% -100.0% -43.6% -0.2% +24.1% -0.3% +5% Total 71,970 $ 58,707 $ 43,794 $ (14,913) -25.4% Fund 503 Insurance - LEOFF I Retirees Year -to -Year Revenues and Transfers In by Category Category Employer Trust Contributions Investment Earnings 2024 Revenues through February 2025 Revenues through February 2026 Revenues through February 58,139 $ 68,312 $ 1,004 14 2026 vs 2025 65,478 $ (2,834) 117 2,554 -4 % 2,437 +2082.9% Total Expenditures and Transfers Out Revenues and Transfers In 59,143 $ 68,429 $ Fund 503 Prior Year Comparisons YTD 68,032 $ (397) -0.6% $- $10 $20 $30 $40 $50 $60 $70 $80 Thousands 2024 2025 ■ 2026 96 City of Tukwila Monthly Finance Report 61 clearwatel - ADVISORS City of Tukwila Tukwila Total Portfolio (562297) Month End (M5 Y2026) 02/01/2026 - 02/28/2026 Dated: 03/10/2026 Locked Down 97 Table of Contents Portfolio Dashboard (Tukwila Total Portfolio (562297)) Strategic Structure (Tukwila Total Portfolio (562297)) Executive Performance (Tukwila Total Portfolio (562297)) Policy Compliance Status (Tukwila Total Portfolio (562297)) GAAP Roll Forward (Tukwila Total Portfolio (562297)) Accrual Activity Summary (Tukwila Total Portfolio (562297)) Interest Income (Tukwila Total Portfolio (562297)) Sector Distribution (Tukwila Total Portfolio (562297)) Duration Distribution (Tukwila Total Portfolio (562297)) Holdings By Sector (Tukwila Total Portfolio (562297)) Transaction Detail (Tukwila Total Portfolio (562297)) Clearwater — 'ADVISORS Dated: 03/10/2026 1 2 3 4 6 7 8 9 10 11 13 98 Portfolio Dashboard 02/01/2026 - 02/28/2026 Return to Table of Contents crate r ADVISORS Tukwila Total Portfolio (562297) Dated: 03/10/2026 Balance Sheet Book Value + Accrued Net Unrealized Gain/Loss Market Value + Accrued 101,366,395.55 10,702.19 101,377,097.74 Holdings by Sector Clearwater Sector Duration Yield to Worst % of Base Base Market Value + Market Value Accrued + Accrued Cash 0.000 Corporate 2.162 Municipal 1.632 PDPC Bank Deposit 0.000 US Agency 0.500 US Treasury 2.894 Washington LGIP 0.000 0.000 3.973 3.573 3.345 3.695 3.486 3.742 0.191 % 3.502% 4.928% 20.769% 4.914% 7.493% 58.204% 193,513.44 3,550,315.09 4,995,424.89 21,054,859.08 4,981,629.80 7,595,989.19 59,005,366.25 Total 0.398 3.631 100.000% 101,377,097.74 Footnotes: 3,4,5 Sector Exposure Cash (0.19%) Corporate (3.50%) US Agency (4.91%) --- Municipal (4.93%) US Treasury (7.49 % ) PDPC Bank Deposit (20.77%) - Washington LGIP (58.20%) Chart calculated by: Base Market Value +Accrued Cash and Fixed Income Summary Risk Metric Cash MMFund Fixed Income Duration Convexity WAL Years to Final Maturity Years to Effective Maturity Yield Book Yield Avg Credit Rating Value 21,248,372.52 59,005,366.25 21,123,358.97 0.398 0.020 0.472 0.481 0.472 3.631 3.530 AA+/Aa1 /AA+ Credit Rating Exposure AA (0.993%) A- (1.001%) A+ (1.508%) AAA (3.132%) AA+ (14.393%) NA (78.973%) Chart calculated by: % of Base Market Value +Accrued Issuer Concentration Issuer Concentration % of Base Market Value + Accrued Washington State Treasurer Columbia Bank United States Farm Credit System US Bank State Of Washington Bank of Montreal Metro Ore Alphabet Inc. Federal Home Loan Banks City of Bellevue, Washington County of King, Washington Morgan Stanley Amazon.com, Inc. (CCYUSD) UNITED STATES OF AMERICA Footnotes: 1,2,3 58.204% 17.723% 7.493% 3.922% 3.045% 1.986% 1.001% 0.993% 0.993% 0.992% 0.974% 0.974% 0.755% 0.752% 0.191% Credit Ratin. Exposure Ratin AAA AA+ AA A+ A - NA % of Base Market Value + Accrued 3.132% 14.393% 0.993% 1.508% 1.001% 78.973% 100.000% Footnotes: 3,6,7 1: * Grouped by: Issuer Concentration. 2: * Groups Sorted by: % of Base Market Value + Accrued. 3: * Weighted by: Base Market Value + Accrued. 4: * Grouped by: Clearwater Sector. 5: * Groups Sorted by: Clearwater Sector. 6: * Grouped by: Rating. 7: * Groups Sorted by: Rating. 991 Strategic Structure Base Currency: USD As of 02/28/2026 Return to Table of Contents arate r ADVISORS Tukwila Total Portfolio (562297) Dated: 03/10/2026 Account Base Book Value Base Market Value + Accrued Base Net Total Unrealized Gain/Loss Book Yield Duration Tukwila 21,001,835.20 21,123,358.97 10,702.19 3.155 1.908 Tukwila Liquidity 80,253,738.77 80,253,738.77 0.00 3.629 0.000 --- 101,255,573.97 101,377,097.74 10,702.19 3.530 0.398 * Grouped by: Account. * Groups Sorted by: Account. * Weighted by: Base Market Value + Accrued, except Book Yield by Base Book Value + Accrued. * Holdings Displayed by: Position. 100 2 clearwater ADVISORS Executive Performance Base Currency: USD As of 02/28/2026 Return to Table of Contents c m CC 0.5% 0.4% 0.3% 0.2% 0.1% 0% -0.1% -0.2% Performance Summary Tukwila Total Portfolio (562297) Dated: 03/10/2026 Trailing Month Quarter to Date • Total Return, Net of Fees Year to Date Trailing Quarter Trailing Year Trailing 3 Years Index Return • Excess Total Return, Net of Fees Period Period Begin Period End Total Retum, Net of Fees Index Retum Excess Total Return, Net of Fees Trailing Month 02/01/2026 02/28/2026 Quarter to Date 01/01/2026 02/28/2026 Year to Date 10/01/2025 02/28/2026 Trailing Quarter 12/01/2025 02/28/2026 Trailing Year 03/01/2025 02/28/2026 Trailing 3 Years 03/01/2023 02/28/2026 0.290% 0.447% -0.157% Account Index Index Start Date Index End Date Tukwila Total Portfolio Tukwila Liquidity Tukwila NO BENCHMARK REQUIRED NO BENCHMARK REQUIRED --- ICE BofA 0-3 Year US Treasury Index 10/31/2006 Net of Fees (includes management and trading). Returns for periods greater than a year have been annualized. No Tax Adjustment. Note that data will not exist prior to the performance inception date of: 01/12/2026. Reported Index Return is always Total Return. Returns for an aggregate account are based on the weighted average of its simple accounts, unless historical retums have specifically been provided for the aggregate, in which case the provided historical returns will be used for the Account Total row. The index total or total weighted benchmark returns for an aggregate account are also based on the weighted average of the index returns of its simple accounts. 1013 Policy Compliance Status As of 02/28/2026 Compliance Summary [mpliant s]gcoun Violating Tukwila Total Portfolio Return to Table of Contents crate r ADVISORS Policy Name City of Tukwila Policy Tukwila Total Portfolio - City of Tukwila Policy Violating Category Name Diversification Parameters Diversification Parameters Diversification Parameters Diversification Parameters Diversification Parameters Diversification Parameters Diversification Parameters Diversification Parameters Diversification Parameters Diversification Parameters Diversification Parameters Diversification Parameters Diversification Parameters Diversification Parameters Diversification Parameters Diversification Parameters Diversification Parameters Rule Name Status Municipal Bond Obligations Issuer Maximum % of Holdings Municipal Bond Obligations Maximum % of Holdings U.S. Agency Issuer Maximum % of Holdings U.S. Agency Obligations Maximum % of Holdings U.S. Agency Callable Securities Maximum % of Holdings U.S. Treasury Obligations Maximum % of Holdings Supranational Agency Notes Issuer Maximum % of Holdings Supranational Agency Notes Maximum % of Holdings Supranational Issuer Limitation - Issuers Allowed (ADB, IADB, IBRD, IFC) Municipal Bond Obligations - GO Only Outside Washington City of Tukwila Debt Obligations Corporate & Commercial Paper Maximum % of Holdings PDPC Bank Deposits/Savings Issuer Maximum % of Holdings PDPC Bank Deposits/Savings Maximum % of Holdings PDPC Certificates of Deposit Issuer Maximum % of Holdings PDPC Certificates of Deposit Maximum % of Holdings Washington State LGIP Compliant Compliant Compliant Compliant Compliant Compliant Compliant Compliant Compliant Compliant Compliant Compliant Violating Violating Compliant Compliant Compliant Tukwila Total Portfolio (562297) Dated: 03/10/2026 Total Rules 38 Actual Value 1.986 4.928 3.922 4.914 4.914 7.493 0.000 0.000 0 0 0.000 3.502 17.723 20.769 0.000 0.000 58.204 Compliant Rules 36 Limit Value 2 Days In Violation 5.000 30.000 35.000 100.000 25.000 100.000 5.000 10.000 0 0 15.000 25.000 10.000 20.000 10.000 25.000 100.000 0 0 0 0 0 0 0 0 0 0 0 0 20 20 0 0 0 Diversification Parameters Corporate & Commercial Paper Foreign Issuer Maximum % of Holdings per Compliant Country (Excl. U.S./Canada) 0.000 2.000 0 Diversification Parameters Diversification Parameters Portfolio Maturity Parameters Portfolio Maturity Parameters Portfolio Maturity Parameters Portfolio Maturity Parameters Portfolio Maturity Parameters Portfolio Maturity Parameters Security Maturity Parameters Security Maturity Parameters Security Maturity Parameters Security Maturity Parameters Security Maturity Parameters Security Maturity Parameters Security Maturity Parameters Security Rating Parameters Security Rating Parameters Security Rating Parameters Security Rating Parameters Corporate & Commercial Paper Issuer Maximum % of Holdings - Rated (AA- Compliant /Aa3/AA-) or Better Corporate & Commercial Paper Issuer Maximum % of Holdings - Rated (A- Compliant /A3/A-) or Better Min Concentration of Maturities Under 30 Days Compliant Min Concentration of Maturities Under 1 Year Compliant Min Concentration of Maturities Under 5 Years Compliant Min Concentration of Maturities Under 10 Years Compliant Max WAM (Years) Compliant Duration of Corporate Note Portfolio (Years) Compliant U.S. Treasury Maximum Maturity At Time of Purchase (years) Compliant U.S. Agency Maximum Maturity At Time of Purchase (years) Compliant Supranational Agency Notes Maximum Maturity At Time of Purchase (years) Compliant Commercial Paper Maximum Maturity At Time of Purchase (days) Compliant Corporate Note Maximum Maturity At Time of Purchase (years) Compliant Municipal Bond Obligations Maximum Maturity At Time of Purchase (years) Compliant Certificates of Deposit Maximum Maturity (years) Compliant Commercial Paper Security Ratings Minimum At Time of Purchase (A-1/P- Compliant 1/F1) 1 of 3 Corporate Security Ratings Minimum At Time of Purchase (A-/A3/A-) 1 of 3 Compliant Supranational Agency Notes Ratings Minimum At Time of Purchase (AA- Compliant /Aa3/AA-) 1 of 3 Municipal Security Ratings Minimum At Time of Purchase (A-/A3/A-) 1 of 3 Compliant 1.001 0.000 79.164 87.519 100.000 100.000 0.481 2.162 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0 0 0 0 3.000 2.000 10.000 25.000 90.000 100.000 2.000 3.000 10.000 10.000 10.000 270.000 5.500 0.000 5.500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 102 4 Policy Compliance Status As of 02/28/2026 Return to Table of Contents crate r ADVISORS Tukwila Total Portfolio (562297) Dated: 03/10/2026 Category Name Rule Name Status Actual Value Security Rating Parameters Corporate Notes Single A Rating with Negative Outlook Compliant 0.000 Limit Value 0.000 Days In Violation 0 Policies: . Rules: . Compliance Status as of previous business day. 1035 GAAP Roll Forward 02/01/2026 - 02/28/2026 Return to Table of Contents crate r ADVISORS Tukwila Beginning Market Value 8,912,549.03 Purchases 13,015,128.53 Sales 0.00 Maturities and Redemptions -1,000,000.00 Paydowns 0.00 Net Trade Gain/Loss 0.00 Net Amortization/Accretion and Inflation Income -10.83 Change In Cash, Payables/Receivables 0.00 Change In Net Unrealized Gain/Loss 84,870.67 Ending Market Value 21,012,537.40 Ending Market Value + Accrued 21,123,358.97 * Weighted by: Ending Market Value + Accrued. * Pivoted by: Account. * Holdings Displayed by: Lot. A Tukwila Total Portfolio (562297) Dated: 03/10/2026 Tukwila Liquidity 89,806,385.75 52,918.75 -9,792,167.98 0.00 0.00 0.00 0.00 186,602.25 0.00 80,253,738.77 80,253,738.77 104 6 Accrual Activity Summary 02/01/2026 - 02/28/2026 Return to Table of Contents crate r ADVISORS Tukwila Beginning Book Value 8,986,717.50 Maturities and Redemptions -1,000,000.00 Purchases 13,015,128.53 Sales 0.00 Paydowns 0.00 Change In Cash, Payables/Receivables 0.00 Net Amortization/Accretion and Inflation Income -10.83 Net Realized Gain/Loss 0.00 Ending Book Value 21,001,835.20 * Weighted by: Ending Market Value + Accrued. * Pivoted by: Account. * Holdings Displayed by: Lot. Tukwila Total Portfolio (562297) Dated: 03/10/2026 Tukwila Liquidity 89,806,385.75 0.00 52,918.75 -9,792,167.98 0.00 186,602.25 0.00 0.00 80,253,738.77 1057 Interest Income 02/01/2026 - 02/28/2026 Beginning Accrued Balance Coupon Received Income Acquired Accrued Sold Accrued Income Ending Accrued Balance Interest Income * Weighted by: Ending Market Value + Accrued. * Pivoted by: Account. * Holdings Displayed by: Lot. Return to Table of Contents crate r ADVISORS Tukwila 28,253.33 3,125.00 57,533.00 0.00 110,821.57 28,160.24 Tukwila Total Portfolio (562297) Dated: 03/10/2026 Tukwila Liquidity 0.00 0.00 0.00 0.00 0.00 186,602.25 106 8 Sector Distribution 02/01/2026 - 02/28/2026 Return to Table of Contents crate r ADVISORS Tukwila Total Portfolio (562297) Dated: 03/10/2026 Sector Distribution Clearwater Sector Duration Yield to Worst Base Market Value + % of Market Current Units Accrued Value + Accrued Cash 0.000 0.000 193,513.44 0.191% 193,513.44 Corporate 2.162 3.973 3,550,315.09 3.502% 3,500,000.00 US Agency 0.500 3.695 4,981,629.80 4.914% 5,000,000.00 Municipal 1.632 3.573 4,995,424.89 4.928% 5,000,000.00 US Treasury 2.894 3.486 7,595,989.19 7.493% 7,500,000.00 PDPC Bank Deposit 0.000 3.345 21,054,859.08 20.769% 21,054,859.08 Washington LGIP 0.000 3.742 59,005,366.25 58.204% 59,005,366.25 Total 0.398 3.631 101,377,097.74 100.000% 101,253,738.77 Footnotes: 1,2,3 Sector Distribution % of Base Market Value + Accrued 70% 60% 50% 40% 30% 20% 10% 0% 20.769% 3.502% 0.191% 4.928% 7:493% 4.914% 8.204%- Cash Corporate Municipal PDPC Bank US Agency US Treasury Washington Deposit LGIP 1: * Grouped by: Clearwater Sector. 2: * Groups Sorted by: % of Market Value + Accrued. 3: * Weighted by: Base Market Value + Accrued. 1079 Duration Distribution 02/01/2026 - 02/28/2026 Return to Table of Contents crate r ADVISORS Tukwila Total Portfolio (562297) Dated: 03/10/2026 Distribution By Duration % of Base Market Value + Accrued 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 81.914% 4.888% 1.973% 1.492% 3.984% 0.994% 4.755% 0.00 - 0.25 0.25 - 0.50 0.50 - 0.75 0.75 - 1.00 2.00 - 3.00 3.00 - 4.00 4.00 - 5.00 108 10 Holdings By Sector Base Currency: USD As of 02/28/2026 Return to Table of Contents crate r ADVISORS Cash Description Current Units Final Maturity Receivable 193,513.44 02/28/2026 Receivable 193,513.44 02/28/2026 Coupon Rate Rating 0.000 AAA Tukwila Total Portfolio (562297) Dated: 03/10/2026 Market Price Duration Yield to Worst Base Market Value + Accrued 1.0000 0.000 0.000 193,513.44 0.000 AAA 1.0000 0.000 0.000 193,513.44 Corporate Description Current Units Final Maturity Coupon Rate Rating Market Price Duration Yield to Worst Base Market Value + Accrued ALPHABET INC 1,000,000.00 02/15/2031 4.100 AA 100.4806 4.431 3.991 1,006,855.69 AMAZON.COM INC 750,000.00 11/20/2030 4.100 A+ 100.5383 4.196 3.971 762,664.49 BANK OF MONTREAL 1,000,000.00 06/04/2027 4.479 A- 100.4376 0.008 4.078 1,015,076.17 MORGAN STANLEY PRIVATE BANK NA 750,000.00 02/08/2030 4.440 A+ 101.7630 0.008 3.813 765,718.74 3,500,000.00 10/18/2029 4.282 A+ 100.7573 2.162 3.973 3,550,315.09 Municipal Description Current Units Final Maturity Coupon Rate Rating Market Price Duration Yield to Worst Base Market Value + Accrued BELLEVUE WASH KING COUNTY WASHINGTON METRO ORE WASHINGTON STATE WASHINGTON STATE 1, 000, 000.00 12/01/2026 1, 000, 000.00 12/01/2026 1,000,000.00 06/01/2026 1,000,000.00 02/01/2030 1,000,000.00 02/01/2029 1.437 AAA 98.3989 0.744 3.586 987,581.20 1.400 AAA 98.3728 0.744 3.584 987,228.40 3.250 AAA 99.8829 0.259 3.674 1,006,954.20 3.740 AA+ 100.7158 3.624 3.544 1,007,885.02 3.660 AA+ 100.5064 2.754 3.477 1,005,776.07 5,000,000.00 11/22/2027 2.707 AAA 99.5847 1.632 3.573 4,995,424.89 PDPC Bank Deposit Description Current Units Final Maturity Coupon Rate Rating Market Price Duration Yield to Worst Base Market Value + Accrued Columbia Bank Deposit 17,967,541 58 02/28/2026 4.010 NA 1.0000 0.000 3.920 17,967,541.58 US Bank Deposit 3,087,317.50 02/28/2026 0.000 NA 1.0000 0.000 0.000 3,087,317.50 21,054,859.08 02/28/2026 3.422 NA 1.0000 0.000 3.345 21,054,859.08 US Agency Description Current Units Final Maturity Coupon Rate Rating Market Price Duration Yield to Worst Base Market Value + Accrued FEDERAL FARM CREDIT BANKS FUNDING CORP 1,000,000.00 05/26/2026 3.375 AA+ 99.8864 0.226 3.806 1,007,770.05 FEDERAL FARM CREDIT BANKS FUNDING CORP 1,000,000.00 06/15/2026 0.900 AA+ 99.1524 0.290 3.750 993,423.78 FEDERAL FARM CREDIT BANKS FUNDING CORP 2,000,000.00 11/30/2026 1.460 AA+ 98.3925 0.738 3.626 1,975,230.45 FEDERAL HOME LOAN BANKS 1,000,000.00 06/29/2027 3.590 AA+ 99.9023 0.512 3.663 1,005,205.52 5,000,000.00 11/01/2026 2.166 AA+ 99.1509 0.500 3.695 4,981,629.80 US Treasury Description _ Current Units _ Final Maturity Coupon Rate Rating Market Price Duration Yield to Worst Base Market Value + Accrued UNITED STATES TREASURY 1,500,000.00 01/31/2027 4.125 AA+ 100.4902 0.899 3.579 1,512,310.35 UNITED STATES TREASURY 1,500,000.00 07/15/2028 3.875 AA+ 100.9570 2.250 3.452 1,521,580.95 UNITED STATES TREASURY 1,500,000.00 01/31/2031 3.750 AA+ 101.0391 4.455 3.518 1,520,092.16 UNITED STATES TREASURY 1,500,000.00 09/30/2030 3.625 AA+ 100.5313 4.135 3.498 1,530,674.79 UNITED STATES TREASURY 1,500,000.00 01/15/2029 3.500 AA+ 100.3203 2.710 3.381 1,511,330.94 UNITED STATES TREASURY 7,500,000.00 04/21/2029 3.775 AA+ 100.6680 2.894 3.486 7,595,989.19 10d 1 Holdings By Sector Base Currency: USD As of 02/28/2026 Return to Table of Contents crate r ADVISORS Washington LGIP Tukwila Total Portfolio (562297) Dated: 03/10/2026 Description Current Units Final Maturity Coupon Rate Rating Market Price Duration Yield to Worst Base Market Value + Accrued Washington Local Government Investment Pool 59,005,366.25 02/28/2026 3.775 NA 1.0000 0.000 3.742 59,005,366.25 Washington Local Government Investment Pool 59,005,366.25 02/28/2026 3.775 NA 1.0000 0.000 3.742 59,005,366.25 Summary Description Current Units Final Maturity Coupon Rate Rating Market Price Duration Yield to Worst Base Market Value + Accrued 101,253,738.77 08/23/2026 3.581 AA+ 21.6424 0.398 3.631 101,377,097.74 * Grouped by: Clearwater Sector. * Groups Sorted by: Clearwater Sector. * Weighted by: Base Market Value + Accrued. * Holdings Displayed by: Position. 110 12 Transaction Detail Base Currency: USD 02/01/2026 - 02/28/2026 Return to Table of Contents crate r ADVISORS * Does not Lock Down. Tukwila Total Portfolio (562297) Dated: 03/10/2026 Identifier Description Transaction Type Base Current Units Trade Date Settle Date Final Maturity Price Broker/Dealer Base Principal Base Accrued Interest Base Amount 02079KBK2 ALPHABET INC 023135CT1 06368L3M6 3130AL7M0 61776NU35 91282CMH1 91282CNM9 91282CPA3 91282CPT2 91282CPW5 93974FGR8 93974FGS6 COL_DEPOSIT USB_DEPOSIT WA-LGIP AMAZON.COM INC BANK OF MONTREAL FEDERAL HOME LOAN BANKS MORGAN STANLEY PRIVATE BANK NA UNITED STATES TREASURY UNITED STATES TREASURY UNITED STATES TREASURY UNITED STATES TREASURY UNITED STATES TREASURY WASHINGTON STATE WASHINGTON STATE Columbia Bank Deposit US Bank Deposit Washington Local Government Investment Pool Buy Buy Buy Maturity Buy Buy Buy Buy Buy Buy Buy Buy Buy Sell Sell 1,000,000.00 02/20/2026 02/24/2026 02/15/2031 750,000.00 1,000,000.00 -1,000,000.00 750,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,000,000.00 1,000,000.00 52,918.75 -1,974,064.64 -7,818,103.34 02/25/2026 02/20/2026 02/24/2026 02/25/2026 02/25/2026 02/20/2026 02/11/2026 02/04/2026 02/04/2026 02/11/2026 02/11/2026 02/28/2026 02/28/2026 02/28/2026 02/26/2026 02/24/2026 02/24/2026 02/27/2026 02/26/2026 02/24/2026 02/13/2026 02/06/2026 02/06/2026 02/24/2026 02/24/2026 02/28/2026 02/28/2026 02/28/2026 11/20/2030 06/04/2027 02/24/2026 02/08/2030 01/31/2027 07/15/2028 09/30/2030 01/15/2029 01/31/2031 02/01/2029 02/01/2030 02/28/2026 02/28/2026 02/28/2026 �iiLi�flr 100.313 100.515 100.528 100.000 99.938 100.492 100.883 99.656 99.625 99.637 99.893 100.000 1.000 1.000 1.000 CITADEL SECURITIES INSTITUTIONAL LL Susquehanna WELLS FARGO SECURITIES Maturity Mizuho Securities Morgan Stanley BMO Capital Markets RBC Capital CitiGroup CitiGroup JP MORGAN JP MORGAN Direct Direct Direct 1,003,130.00 753,862.50 1,005,278.00 -1,000,000.00 749,533.50 1,507,382.81 1,513,242.19 1,494,843.75 1,494,375.00 1,494,550.78 998,930.00 1,000,000.00 52,918.75 -1,974,064.64 -7,818,103.34 1,252.78 8,285.42 10,207.10 0.00 2,311.20 4,614.99 6,422.65 20,315.93 3,190.61 932.32 0.00 0.00 0.00 0.00 0.00 -1,004,382.78 -762,147.92 -1,015,485.10 1,000,000.00 -751,844.70 -1,511,997.80 -1,519,664.84 -1,515,159.68 -1,497,565.61 -1,495,483.10 -998,930.00 -1,000,000.00 -52,918.75 1,974,064.64 7,818,103.34 2,275, • 9.30 57,533.00 -2,3 * Weighted by: Absolute Value of Base Principal. * MMF transactions are collapsed. * The Transaction DetaillTrading Activity reports provide our most up-to-date transactional details. As such, these reports are subject to change even after the other reports on the website have been locked down. While these reports can be useful tools in understanding recent activity, due to their dynamic nature we do not recommend using them for booking journal entries or reconciliation.