HomeMy WebLinkAboutRes 2144 - Financial Policies AmendmentCity of Tukwila
Washington
Resolution No. if-141!
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING THE CITY OF
TUKWILA FINANCIAL POLICIES AT SECTION 9,
RESERVES POLICY AND SECTION 5, GRANTS 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, 2143, on
May 4, 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; and
WHEREAS, the City Council desires to identify efficiencies in the legislative process;
and
WHEREAS, removing the requirement to seek City Council Committee permission to
apply for grants will further this goal;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
2026 Legislation: Financial Policies Update
Version: 05/04/2026 & Updated 05/05/2026 (Scrivener's Error)
Staff: T. Cullerton
Page 1 of 3
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
Section 9 Reserves
(Cross reference. Resolution Na 11400
a. Prudent financial management dictates that some portion of funds avai1bre to
the City be reserved for future use.
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 revel, The pan shall be presented
to and approved by the City Council.
C. 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 illE3NR
(incurred but not reported) balance. Use of the reserve shall occur only upon
recommendation by City Administration and approval by CityCouncil
resolution,
Section 2. Amending Section 5 of the Financial Policies. The Gity of Tukwila
Financial Policies at Section 5, subsection b to read as follows:
Section 5. Grants
a, The City s all, whenever practical and advantageous, pursue grant fundiing. All
potential grants shall be examined carefully for matching requirements, and to
cetermine whether programs must be continued with local resources after grant
funds are exhausted,
b. Staff shall obtain City ICOLMeil approval prior to accepting grant agreements in
amounts above the Mayor's signing authority
Section 3. Findings Incorporated and Adoption. The above "'whereas" recitalls are
adopted as findings in support of this resollutiort, and the City of Tukwila Financial Policies
attached hereto as Exhibit A are adopted.
ignatures to follow]
2026 Legislation: Financial Policies. Update
Version: 05/04/2026
Staff. T. Cullerton
Page 2 of 3
PASSED I3Y THE CITY COUNCIL OF THE CITY OF TUKUVII_A, WASHINGTON, at
a Regular Meeting thereof this Ii.11.% day of W r 2026.
ATTEST/AUTHENTICATED
VOL, (Ekiv)
Barnett, C, City Clerk
APPROVED AS TO FORM BY:
Office of the City Attorney
Armen Papyan, Council President
Filed with the City Clerk: 0
Passed by the City Council: 0
Resolution Number:
Attachment: ExhibitA— Updated City of Tukwila Financial Policies
2026 Legislation: Financial Policies Update
Version: 05/04)2 0,26
Saff: T Cullerton
Page 3of3
Financial Po
icies
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. ludgeting
Cross roferonces, TUC Chapter 3,30, Resolution 1951
The City of ukwila shall prepare and adopt a biennial budget in accordance with
ROW Chapter 35A,34, and Tukwila Municipal Code ( MC) Chapter 3.30. Fiscal
years begin January 1 and end December 31.
b. The budget shall be prepared with a priority -eased 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 federall 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 ore -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'slemployee 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: W.5ID4/2O26 Page 1 of 5.
b, The City shall develop and maintain a Revenue Guide that describes major
revenue sources avaiiable to the City of Tukvvila.
c. Revenue sources sioulld 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 ref rences
- Purchasing Policy (Resolution No 2015)
- Procurement Card Polly (Reso)ution No 1750)
- Expense Reimbursement Policy (Resolution No. 1674)
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 cperating
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
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 City Council approval prior to cepting grant agreements in
amounts above the Mayor's signing authority.
Section 6. Capital improvement Program (GIP)
a. Transportation improvements will be coordinated with related improvements such
as utility, landscaping, sidewalks, etc.
b. Whenever feasible, caita improvements shall be coordinated with related
improvements of adjacent jurisdictions.
c, Capital Improvement Program orcjects 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.
d General Fund support should not be relied upcn for funding capital projects.
Grants andfor dedicated and restricted revenue sources should be utilized prior
to seeking General Fund support,
Version, /04/2026
Page 2 of 5
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.
e. Design of connecting streets is strongly encouraged.
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 inciude roadside plantings
wherever feasible to help mitigate the lane used for roadway and sidewalk
improvements,
k. Donation of the property needed for nights -of -way and easements shall be
pursued,
l. Latecomer agreements, where appropriate, shall be considered an acceptable
means of funding capital projects, improvements and replacements, in whole or
in part,
ni. 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 undergrcunding 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.
p. Pursue, nt 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 and acquisition, and the
second 1/4 cent shall be used for arterial streets, along wit., the parking tax,
unless the City Council enacts other priorities consistent with state raw distribution
of REET funds,
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
Version! 05/04,20,26 Page 3 of
and Transportation Element of the Comprehensive plan in order to encourage
walking, bicycling, and use of public transit.
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 fair 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 oi-annually to ensure a rate structure
adequate to meet its operations, maintenance, and long-term capital
requirements.
c 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.
Infrastructure improvements such as water reuse should consider conservation of
resources such as water and electricity.
Section 8. 11): bt
Cross r ferences: Debt Policy (Resolution No. 1840)
a. Appropriate management of debt is an importantirnportant tactor in measuring the City's
financial performance and condition.
Section 9. Re4 erves
Cross referencesFund Balance Policy (Resoluben
a. Prudent financial management dictates that some portion of funds available to the
City be reserved for future use,
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. 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.
Version: 05/04/2026
Page 4 of 5
Section 10. investments
(Cross referencesT C 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
Once the annual audit is complete, City Administration shall provide a report to
the City Council showing compliance with the Financial Reserve Policy,
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Please see the request for SCRIVENER'S ERROR NOTIFICATION FORM
Requested By Jennifer Marshall, Deputy City Clerk
Resolution No. 2144
Date of Passage May 4, 2026
Brief Explanatory Statement
1. The approved resolution amended Section 9 of the Tukwila Financial Policies. Before the
05/04/2026 Council meeting staff was advised there might also be an amendment to Section 5,
and second version of the resolution was drafted.
2. Upon passage of this second version, it was noticed the resolution title was not updated to
include the newly amended Section 5.
As Passed
1. The resolution as passed with the resolution title only including reference to Section 9, Reserves
Policy.
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
Correction Needed
1. The updated resolution title includes reference to amending Section 5, Grants Policy, as well
(placed in order of the amendments made in the resolution itself).
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING THE CITY OF
TUKWILA FINANCIAL POLICIES AT SECTION 9,
RESERVES POLICY AD SEC _N 5, GRANTS POLICY;
AMENDING RESOLUTION NO. 2096
City Attorney Review
®Approved as Scrivener's Error
❑ Amendment Needed to Ordinance
City Attorney Comments
This is approved.
Attorney Providing Approval & Date
Kari Sand, 05/05/2026