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Home My WebLink AboutCOW 2018-11-13 Item 3B - Public Hearing - 2019-2020 Biennial Budget / 2019-2024 Financial Planning Model and Capital Improvement Program LegislationCOUNCIL AGENDA SYNOPSIS Meeting Date Prepared by Mayor's review Council review 11/13/18 VC ITEM INFORMATION ITEM NO. 3.B. & 4.B. STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 11/13/18 AGENDA ITEM TITLE Ordinance adopting the 2019 - 2020 Biennial Budget and a resolution adopting the 2019 - 2024 Capital Improvement Program CATEGORY n Discussion 11/13/18 Ej Motion Mtg Date [i] Resolution Mg Date Ei Ordinance Mtg Date 1] Bid Award AltDate E Public Hearing Mtg Date 11/13/16 E] Other Mtg Date Mtg Date SPONSOR flCournil JMayor EHR EDCD flFinance flFire TS OP&R Police EPW OCourt SP oNsoR' s City Council is being asked to approve an ordinance adopting the 2019 - 2020 Biennial SUMMARY Budget and a resolution adopting the 2019 - 2024 Capital Improvement Program. The ordinance and resolution are scheduled for Council consideration at the 11/13/18 Committee of the Whole and will then be scheduled for a future Regular Meeting at the direction of the Council President, after all budget deliberations have occurred. REVIEWED BY II C.O.W. Mtg. E CDN Comm Ej Trans &Infrastructure Arts Comm. DATE: 11/6/18 ii Finance Comm. 0 Public Safety Comm. Comm. 0 Planning Comm. CHAIR: QUINN 0 Parks COMMITTEE RECOMMENDATIONS: SPONSOR/ADMIN. COMMIYI'EE Finance/Public Works Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $442,865,403 $ $442,865,403 Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/13/18 MTG. DATE ATTACHMENTS 11/13/18 Informational Memorandum dated 10/31/18 (Updated after Finance Com.) Draft Ordinance (See page 1 of Ordinance for changes brought to Finance Com.) Draft Resolution Reconciliation of the 2019- 2020 Budget Summary to Ordinance Minutes from the Finance Committee meeting 11/6/18 15 16 City f Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Council Committee FROM: Peggy McCarthy, Finance Director BY: VickyCar|sen, Deputy Finance Director CC: Mayor Ekberg DATE: October 31"2018 SUBJECT: 2019-2020 Biennial Budget Ordinance 2019-2024Financial Planning Model and Capital Improvement Program Updated after November 6, 2018 Finance Committee ISSUE Adopt the 2019 — 2020 biennial budget and the 2019 — 2024 Capital Improvement Program (CIP) by the end ofDecember, BACKGROUND The proposed biennial budget for 2O18 —2D2O and draft2O1S —2O24 C|P were presented to Council on October 1.2D18. Departments within the general fund and all other funds have been reviewed in Council Committees and adthe Council Committee ofthe Whole. Additionally, Council held budget workshops on September and Oobober24. 2018. to discuss both the budged and C|P. Additional workshops may be scheduled before final adoption. DISCUSSION At this time the proposed 2019 — 2020 biennial budget as well as the 2019 — 2024 CIP is being presented bJthe Finance Committee for review and discussion. The public hearing, another opportunity for community input, iascheduled for Tuesday, November 13.2O18. The ordinance and resolution are indraft form and will beupdated priortofima|odootionifanyohangemare made toeither the proposed biennial budget orthe C|P. Update after November G.2O18Finance Committee W1eeting At the Finance Committee meeUng, o revised ordinance to adopt the 2019-2020 biennial budqetvvaa presented to the committee that included e section to allow for the implementation of COLA for non - represented employees osprovided for in Resolution No. 1706Comnenoadon Policy. The budget has been drafted to include a COLA adjustment and adding the new section 2 into the budget adoption ordinance would give authority for a COLA of 90% of CPI for non -represented employees to be implemented onJanuary 1.2O1S. RECOMMENDATION The Finance Committee is being asked to approve the 2019 — 2020 biennial budget ordinance and the 2019 — 2024 Financial Planning Model and Capital Improvement Plan resolution and forward to the Committee ofthe Whole. The ordinance and resolution are scheduled for Council consideration at the 11/13/18 Committee of the Whole and will then be scheduled for a future Regular Meeting at the direction ofthe Council President, after all budget deliberations have occurred. ATTACHMENTS 17 18 Ln NOTE: Strike-through/underline text (new Section 2) reflects revisions discussed at the 11-6-18 Finance Committee meeting. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; ADOPTING THE BIENNIAL BUDGET OF THE CITY OF TUKWILA FOR THE 2019-2020 BIENNIUM; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the preliminary budget of the City of Tukwila for the 2019-2020 biennium was submitted to the City Council in a timely manner for their review; and WHEREAS, a Public Hearing on the proposed budget was advertised and held on November 13, 2018; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council hereby adopts the document entitled "City of Tukwila 2019-2020 Budget," incorporated by this reference as if fully set forth herein, in accordance with RCW 35A.34.120. Section 2. Cost of living adjustments (COLAs) for non -represented employees shall be implemented per the City Council's Compensation Policy, Section 23. The totals of the estimated revenues and appropriations for each separate fund and the aggregate totals are as follows: W: Word Processing\Ordinances\Adopt 2019-2020 Biennial Budget 11-6-18 VC:bjs Page 1 of 3 19 Fund 000 General 105 Contingency 101 Hotel/Motel 103 City Street 104 Arterial Street 109 Drug Seizure Fund 2XX LTGO Debt Service Funds 213 Unlimited Tax G.O. Bonds 206 LID Guaranty 233 2013 LID 301 Land Acquisition, Recreation & Park Dev. 302 Facility Replacement 303 General Government Improvements 304 Fire Improvements 305 Public Safety Plan 306 City Facilities 401 Water 402 Sewer 411 Foster Golf Course 412 Surface Water 501 Equipment Rental 502 Insurance Fund 503 Insurance - LEOFF 1 Fund 611 Firemen's Pension Total All Funds Combined Total Total Expenditures Revenues $144,629,376 $ 144,629,376 6,895,897 6,895,897 2,951,302 2,951,302 12,539,621 12,539,621 57,637,865 57,637,865 336,507 336,507 9,957,242 9,957,242 6,594,967 6,594,967 685,637 685,637 2,064,537 2,064,537 1,264,196 1,264,196 2,233,064 2,233,064 738,761 738,761 1,007,612 1,007,612 82,136,549 82,136,549 9,414,000 9,414,000 19,990,522 19,990,522 28,998,430 28,998,430 4,281,881 4,281,881 20,542,959 20,542,959 10,715,532 10,715,532 14,591,012 14,591,012 1,060,079 1,060,079 1,597,856 1,597,856 $442,865,403 $ 442,865,403 Section 34. A complete copy of the final budget for 2019-2020, as adopted, together with a copy of this adopting ordinance, shall be kept on file in the City Clerk's Office, and a copy shall be transmitted by the City Clerk to the Division of Municipal Corporations of the Office of the State Auditor and to the Association of Washington Cities. Section 45. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 66. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. W: Word Processing \Ordinances\Adopt 2019-2020 Biennial Budget 11-6-18 VC:bjs 20 Page 2 of 3 Section 67. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2018. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances\Adopt 2019-2020 Biennial Budget 11-6-18 VC:bjs Page 3 of 3 21 22 L.1.1 [113 111 irci\l 5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE 2019- 2024 FINANCIAL PLANNING MODEL AND THE CAPITAL IMPROVEMENT PROGRAM FOR GENERAL GOVERNMENT AND THE CITY'S ENTERPRISE FUNDS. WHEREAS, when used in conjunction with the biennial City budget, the Capital Improvement Program (CIP) and the Financial Planning Model for the period of 2019- 2024 are resource documents to help plan directions the City will consider for the future; and WHEREAS, the Financial Planning Model and Capital Improvement Program are not permanent fixed plans, but are guidelines or tools to help reflect future goals and future resources at the time budgets are being planned; and WHEREAS, the commitment of funds and resources can only be made through the budget process; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City Council hereby adopts the 2019-2024 Financial Planning Model and accompanying Capital Improvement Program, incorporated by this reference as if fully set forth herein. Section 2. A copy of the 2019-2024 Financial Planning Model and accompanying Capital Improvement Program shall be kept on file electronically by the City Clerk and accessible from the City's website in accordance with Washington State records retention schedule requirements and City policy, and shall be made available to the public upon request. Section 3. The assumptions, revenues and expenditures will be reviewed and updated biennially, or as necessary, by the City Council. W:\Word Processing\Resolutions\Financial Planning Model & CIP 10-29-18 VC:bjs Page 1 of 2 23 Section 4. The detail of Capital Improvement Program projects will be reflected in the published Financial Planning Model and Capital Improvement Program 2019-2024. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2018. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Filed with the City Clerk: Passed by the City Council: Resolution Number: W:\Word Processing\Resolutions\Financial Planning Model & CIP 10-29-18 VC:bjs Page 2 of 2 24 Reconciliation of 2019-2020Budget Summary to Ordinance EXPEND[TUREG 2019 Expenditures 2020 Expenditures 2020Ending Fund Balance Total Expenditures 000 General $ 65.275.203 * 65.778.779 $ 13.575.388 $144.028.378 101 Hotel/Motel 693.131 635.438 1.562.673 2.951.302 103 City Street 6.610.000 5.701.000 222.621 12.538.821 104 Arterial Street 8,404.599 48,935.382 297.884 57,637,865 105 Contingency ' ' 6.885.897 6.895.897 109 Drug Seizure Fund 60,000 60,000 216.507 336.507 2xX LTGODebt Service Funds 4.979,203 4,589.893 388.086 9.357,242 213 UTGOBonde 2.841.675 3.713.175 40.117 8.534.967 206 LID Guaranty - 685.057 685.637 233 2013L0 088.637 608.613 707.287 2.064.537 301 Land Acquisition, Recreation & Park Dox 605.000 50.000 609.196 1.264.196 302 Facility Replacement 235.000 215.000 1.788.004 3.233.064 303 General Government Improvements 353.094 358.015 27.652 758.761 304 Fire Improvements 500.000 500.000 7.612 1.007.612 305 Public Safety Plan 38.896.578 40.028.146 2.211.025 82.138.548 300 City Facilities 4.623.000 4.785.000 (0) 9.414.000 401 Water 7.650.301 9.000.238 3.339.582 19.990.522 402 Sewer 10.774.916 9.783.035 8.440.480 28.998,430 411 Foster Golf Course 1.765.345 1.810.408 705.120 *.281.881 412 Surface Water 8,983.224 7.302,426 4.507.309 20.542,958 501 Equipment Rental 4,435.204 3.777.658 2.502.670 10.715.532 502 Insurance Fund 6.904.662 7.412.10* 274.247 14.591.012 503 Insurance 'LEOFF1 Fund 485.755 489.313 105.011 1.060.079 611 Firemen's Pension 69.391 03.991 1,457.874 1.587.850 Total $17O.777.1O3 $215.723.O78 $ 50.364.547 $442.865.405 REVENUES 2019Beginning Fund Balance 2019 Revenues 2020 Revenues Total Revenues 000 General $ 12.580.570 $ 05.739.800 $ 66.299.200 $144.629.376 101 Hotel/Motel 1.370.302 778.000 803.000 2.951.302 103 City Street 2.826.021 4.002.000 5.711.000 12.539.021 104 Arterial Street 3,621.865 6.368.000 47,647,000 57,637,885 105 Contingency 6.447.329 148.508 300,000 8.895.897 109 Drug Seizure Fund 226.507' 55.000 55.000 336.507 2XK LTGODebt So,\AnoFunds 387.669 4.979.262 4.590.311 9.957.242 213 UTGO Bonds 40.117 2.841.075 3.715.175 6.594.987 206 LID Guaranty 885.037 300 300 885,637 253 2013L|D 707.287 688.637 058.613 2.064.537 301 Land Acquisition, Recreation QPark Dox 1.019,476 128.320 116,400 1.264.186 302 Facility Replacement 2.213.004 10.000 10.000 2.235.064 303 General Government Improvements 337.701 200.500 200.500 738.701 304 Fire Improvements 7.412 500.100 500.100 1.007.612 305 Public Safety Plan 13.038.484 66,414.346 2.688.708 82.136.549 300 City Facilities 1.914.000 7.500.000 ' 9.414.000 401 Water 5.149.522 7.317.000 7.524.000 13.990.522 402 Sewer 9.17*,430 9.912.000 9.812.000 28.998,450 411 Foster Golf Course 640.081 1.733.900 1.847.900 4.281.881 412 Surface Water 8.482.358 8.070.000 7.990.000 20.542.959 501 Equipment Rental 3.874.889 3.619.089 3.221.544 10.715.532 502 Insurance Fund 1.137.704 8.563.872 6.889.438 14.581.012 508 Insurance -LE0FF1Fund 527.005 266.553 208.541 1.000.078 611 Firemen's Pension 1,449.858 74.000 74.000 1.597.856 Total $ 72.883.972 $19O.S71.7U2 $171.028.723 $442.865.403 25 26 Finance Committee Minutes November 6, 2018 B. TAX LEVY LEGISLATION Staff is seeking Council approval of two ordinances relating to property tax: one that would increase the City's Regular Property Tax Levy from 2018, and one that would levy general and excess property taxes. These ordinances are presented to the Council on an annual basis. According to the King County Assessor, the projected assessed value for Tukwila is $6,709,378,301. The ordinance to set the general tax levy also includes the excess levy related to the Public Safety Plan, which will be assessed as long as the bonds are outstanding. The total excess levy requirement for 2019 is $2,840,000 with an approximate levy rate of $0.43 per thousand. The maximum allowable levy is estimated to be $3.49003, but due to the 1% limitation, the preliminary levy rate is estimated to be $2.37331. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13, 2018 COMMITTEE OF THE WHOLE. C. BUDGET LEGISLATION Staff is seeking Council approval of an ordinance to adopt the 2019-2020 Biennial Budget and a resolution to adopt the 2019-2020 Financial Planning Model and Capital Improvement Program. These are the legislative mechanisms to adopt the budget and CIP but the Council still has budget discussion scheduled for the next several Council meetings. FORWARD TO NOVEMBER 13, 2018 COMMITTEE OF THE WHOLE FOR PUBLIC HEARING. D. RESOLUTION: FINANCIAL POLICIES Staff is seeking Council approval of a resolution that would amend the General Financial Policies that are included as appendices to the adopted Budget and Capital Improvement Program. The policies represent values and expectations for financial planning, budging, accounting, report and other management practices. Revisions for the next biennium include two new policies and minor adjustments to the others. Proposed new policy FP-7 would clarify the interpretation of TMC 3.32.040 to mean that if sufficient appropriation exists to cover a capital purchase within the Mayor's signing authority, it is deemed budgeted and does not require Committee approval. Proposed new policy GF-6 states that the City Council will receive a list of contracts on a quarterly basis, proposed to begin in 1st Quarter 2019. Councilmember Kruller questioned whether the proposed interpretation of "unbudgeted" in TMC 3.32.040 would reduce Council's visibility to certain transactions. Councilmember Robertson expressed that Council time could be better spent on more impactful issues and he supports the interpretation. Committee Chair Quinn indicated this interpretation, along with the new policy on contract reporting, would move the Council forward. Policy GF-5 was also discussed, though no revisions to this policy were proposed. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13, 2018 COMMITTEE OF THE WHOLE. E. AGREEMENT: BUSINESS LICENSING Staff is seeking Council approval of an agreement with the Washington State Department of Revenue Business License Services (BLS) to establish the terms under which BLS will act as the City's agent for processing business licenses. Engrossed House Bill 2005 requires any city with a general business license to partner with the state on a combined license service. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 19, 2018 REGULAR CONSENT AGENDA. 27