HomeMy WebLinkAboutCOW 2018-11-13 COMPLETE AGENDA PACKET90
Tuesday, November
Tukwila City Council Agenda
❖ COMMITTEE OF THE WHOLE ••
Allan Ekberg, Mayor Counci/members: •3 Dennis Robertson •3 Kathy Hougardy
David Cline, City Administrator •3 De'Sean Quinn + Kate Kruller
Verna Seal, Council President + Thomas McLeod + Zak Idan
13, 2018; 7:00 PM Tukwila City Hall Council Chambers
1. CALL TO ORDER / PLEDGE OF ALLEGIANCE
2. PUBLIC
COMMENTS
At this time, you are invited to comment on items not included on this agenda
(p/ease limit your comments to five minutes per person). To comment
on an item listed on this agenda, please save your comments until the issue is
presented for discussion. (Refer to back of agenda page for additional information.)
3. PUBLIC
HEARING
a. Tax levy legislation:
(1) An ordinance levying the general taxes for the City commencing 1/1/2019.
(2) An ordinance increasing the regular tax levy commencing 1/1/2019.
b. Budget legislation:
(1) An ordinance adopting the 2019-2020 biennial budget.
(2) A resolution adopting the 2019-2024 Financial Planning Model and CIP
(Capital Improvement Program).
Pg.1
Pg.15
4. SPECIAL ISSUES
a. Tax levy legislation:
(1) An ordinance levying the general taxes for the City commencing 1/1/2019.
(2) An ordinance increasing the regular tax levy commencing 1/1/2019.
b. Budget legislation:
(1) An ordinance adopting the 2019-2020 biennial budget.
(2) A resolution adopting the 2019-2024 Financial Planning Model and CIP
(Capital Improvement Program).
c. A resolution adopting updated policies related to the Financial Planning
Model and other general financial policies.
d. A resolution repealing Resolution No. 1913 and adopting a revised
Business License fee schedule.
e. A resolution establishing a compensation policy for City employees and
repealing Resolution No. 1796.
f. Discussion on proposed 2019-2020 biennial budget and 2019-2024
Capital Improvement Program. *P/ease bring your budget binders. *
g. A resolution adopting the 2019 Legislative Agenda.
Pg.1
Pg.15
P9.29
Pg.39
Pg.53
Pg.93
Pg.95
5. REPORTS
a. Mayor
b. City Council
c. Staff
d. Council Analyst
6. MISCELLANEOUS
7. ADJOURNMENT
City
Tukwila
Reasonable
Clerk's
www.tukwilawa.gov,
Tukwila City Hall is ADA accessible.
accommodations are available at public hearings with advance notice to the
Office (206-433-1800 or TukwilaCityClerk@TukwilaWA.gov). This agenda is available at
and in alternate formats with advance notice for those with disabilities.
Council meetings are audio/video taped (available at www.tukwilawa.gov)
HOW TO TESTIFY
When recognized by the Presiding Officer to address the Council, please go to the podium and state your
name and address clearly for the record. Please observe the basic rules of courtesy when speaking and limit
your comments to 5 minutes. The Council appreciates hearing from citizens and members of the public, and
may not be able to answer questions or respond during the meeting.
PUBLIC COMMENTS
Members of the public are given the opportunity to address the Council on items that are NOT included an
the agenda during PUBLIC COMMENTS. Please limit your comments to 5 minutes. If you have a
comment on an Agenda item, please wait until that item comes up for discussion to speak on that topic.
SPECIAL MEETINGS/EXECUTIVE SESSIONS
Special Meetings may be called at any time with proper public notice. Procedures followed are the same as
those used in Regular Council meetings.
Executive Sessions may be called to inform the Council of pending legal action, financial, or personnel
matters as prescribed by law. Executive Sessions are not open to the public.
PUBLIC HEARINGS
Public Hearings are required by law before the Council can take action on matters affecting the public
interest such as land -use laws, annexations, rezone requests, public safety issues, etc. Section 2.04.150 of the
Tukwila Municipal Code states the following guidelines for Public Hearings:
1. The proponent shall speak first and is allowed 15 minutes for a presentation.
2. The opponent is then allowed 15 minutes to make a presentation.
3. Each side is then allowed 5 minutes for rebuttal.
4. Members of the public who wish to address the Council may speak for 5 minutes each. No one may
speak a second time until everyone wishing to speak has spoken.
5. After each speaker has spoken, the Council may question the speaker. Each speaker can respond to the
question, but may not engage in further debate at that time.
6. After the Public Hearing is closed and during the Council meeting, the Council may choose to discuss
the issue among themselves, or defer the discussion to a future Council meeting, without further public
testimony. Council action may only be taken during Regular or Special Meetings.
COUNCIL MEETING SCHEDULE
No Council meetings are scheduled on the 5th Monday of the month unless prior public notification is given.
Regular Meetings - The Mayor, elected by the people to a four-year term, presides at all Regular Council
Meetings held on the 1st and 3rd Mondays of each month at 7:00 p.m. and Special Meetings. Official
Council action in the form of formal motions, adopting of resolutions and passing of ordinances can
only be taken at Regular or Special Council meetings.
Committee of the Whole Meetings - Councilmembers are elected for a four-year term. The Council
President is elected by the Councilmembers to preside at all Committee of the Whole meetings for a
one-year term. Committee of the Whole meetings are held the 2nd and 4th Mondays at 7:00 p.m.
Issues discussed there are forwarded to Regular or Special Council meetings for official action.
COUNCIL AGENDA SYNOPSIS
--------------- -- - - - - ------------------- ------------
Meeting Date
Prepared by
Mayor's review
Council review
1 I 18
VC
CAo---
1 9/18
VC
ITEM INFORMATION
ITEMNO,
3.A. & 4.A.
Si 11+SPONSOR: VICKY CARLSEN
ORIGINAL AGENDA DATE: 11/13/18
AGENDA ITEM TITLE
Approve property tax ordinances
for 2019 property
tax levy.
11/13/18
E Motion
Illts Date
[1] Resolution
Mtg Date
E BidAward
Mtg Date
C 1 TEGORY Dilic.mston
Ordinatue
Public HearingR
Other
,ittg Date
Mtg Date 11/19/18
Mtg Date 11/13/18
Mt Date
SPONSOR Counal 11 Dor OH R EIDCD Fl Finance Ftre 0 TS LIP&R Police LIPW EConrt
SPONSoit'S The Council is being asked to approve two property tax ordinances for the 2019 property
SUMMARY tax levy - one to authorize the levy and the second to approve an increase in the levy from
the previous year.
R.Lvik \\TED BY Ej C.O.W. Mtg. CDN Comm
[1] Trans &Infrastructure Arts Comm.
DATE: 11/6/18
Finance
Comm.
Comm,
CHAIR: QUINN
• Public Safety Comm.
El Parks
0 Planning Comm.
COMMITTEE
RECOMMENDATIONS:
SPONSOR/ADMIN,
CommITTLE
Finance Department
Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EXPEN PI UREREQUIRID AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
IA/ 3 18
MTG. DATE
ATTACHMENTS
i. / 8
Informational e orandum dated 11/06 18
Draft Ordinance
Preliminary Levy Limit Worksheet
Minutes from the Finance Committee meeting of 11/6/18
11/19/18
1
2
�2-!�-06 "�
TO:
FROM:
BY:
City of Tukwila
UNFOR ATUONAK E ORANDU
Finance Committee
Peggy McCarthy, Finance Director
Vicky Car|men'Deputy Finance C|im*obmr
Aaron Williams, Fiscal Coordinator
CI Mayor Ekberg
DATE: November 6,2018
SUBJECT: 2019 Property Tax Levy
ISSUE
Approval of ordinances increasing the regular levy from the previous year and adopting the
general and excess property tax levies for 2O10byNovember 3O.2O1O.
Allan Ekberg, Mayor
BACKGROUND
A Public Hearing for adoption of the 2019 property tax levy is required by RCW 84.55.120. The
Hearing is scheduled for November 13, 2018.
The City was notified on October 23 2018thmt the assessed value for Tukwila for 2019 is
projected to be $6,709,378,301.
The ordinance hoset the general tax levy also includes the excess levy related tothe Public Safety
Plan that voters approved Vnthe November R.7O1Ogeneral election. The City sold $3O'5million
ofbonds in 2Q1Gand debt service repayment began in2O17. The excess levy will boassessed
for as long as the bonds are outstanding; the final payment is scheduled for December 2036. The
total aXoesg levy requirement for 2019 is $2.040`000 with an approximate levy rate of $0.43 per
thousand.
The budget proposed toCouncil for the 2O Dbienniunnie based, inpart, onaproperty tax
revenue increase of 1 % plus new construction.
DISCUSSION
Levy Amount
The assessed value and the allowable levy are subject to change until final levy rote
determination. Alevy amount of$1O.1OO.0OOwill beused for the ordinance. |fthe final allowable
levy in |eoa than the ordinance amount, King County Department CfAssessments will adjust the
ordinance amount to the final allowable levy amount and no further action by the Council will be
required.
Also included in the tax levy ordinance is an excess levy in the amount Of $2,840,000 for debt
oen/ima related to the unlimited tax obligation bonds that were sold at the end cf2D1(l Total
bonds issued was $8O'5million.
INFORMATIONAL MEMO
Page 2
Levy Limit
RCVV27.12.3SOallows for amaximum statutory levy rate for cities st $3.8Oless the actual regular
levy made by a library district. RC\8/41.18.00O also allows for an additional levy of$O225 ifa
city has o firemen's pension fund. The rnamimUnl a||ovvGb|e levy for 2018 is estimated to be
$3.49003. HoVVevor, due to the 196 limitation, the Levy LinnitVVorhnheet received from King
County enUnletee the City'e preliminary levy rote for 2019 at $2.37331.
RECOMMENDATION
The City Council iabeing ' asked to approve the ordinance adopting the General Tax Levy and the
ordinance showing the dollar and percent increase from the previousyear adthe November 13.
2018 Committee of the Whole meeting and subsequent November 19, 2018 Regular Meeting. /\
public hearing has also been scheduled at the November 13, 2018 Committee of the Whole.
ATTACHMENTS
Draft Ordinances
Preliminary Levy Limit VVorheheet-2O19Tax Roll
DCn nci|AgendvItemu\FinanceV1.6pinonce nfomnmn 2019Taxes with Excess levy.docx
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, LEVYING THE GENERAL TAXES
FOR THE CITY OF TUKWILA IN KING COUNTY FOR THE
FISCAL YEAR COMMENCING JANUARY 1, 2019, ON ALL
PROPERTY, BOTH REAL AND PERSONAL, IN SAID CITY,
THAT IS SUBJECT TO TAXATION FOR THE PURPOSE OF
PAYING SUFFICIENT REVENUE TO CARRY ON THE
SERVICES OF THE SEVERAL DEPARTMENTS OF SAID CITY
FOR THE ENSUING YEAR, WITH AN EXCESS PROPERTY TAX
LEVY FOR THE PURPOSE OF PAYING DEBT SERVICE ON
THE CITY'S UNLIMITED TAX GENERAL OBLIGATION BONDS
ISSUED IN 2016, AS REQUIRED BY LAW; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Tukwila has considered the City's anticipated
financial requirements for 2019 and the amounts necessary and available to be raised by
ad valorem taxes on real, personal and utility property; and
WHEREAS, the following sentence is provided for information only: The maximum
Statutory Levy Rate for the City of Tukwila, as allowed by RCW 84.52.043, is $3.490, which
includes $0.225 for the Firemen's Pension Fund as allowed by RCW 41.16.060; and
WHEREAS, the City, pursuant to Ordinance No. 2514, passed on November 21, 2016,
authorized the issuance and sale of $36,500,000 principal amount of the City's Unlimited
Tax General Obligation Bonds, 2016 (the "Bonds"); and has determined that to provide the
money necessary to pay the debt service requirements on the Bonds in the year 2019, an
excess property tax levy in the amount of $2,840,000 for the Bonds must be levied in year
2018, and collected in year 2019; and
WHEREAS, the final assessed valuation calculation has been determined;
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5
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Regular and Excess Tax Levy.
A. There shall be and hereby is levied on all real, personal and utility property in the
City of Tukwila, in King County, whose estimated assessed valuation is $6,709,378,301,
current taxes for the ensuing year commencing January 2019, in the amounts specified
below:
Rate Amount
Regular Tax Levy $2.37 $16,100,000
Excess Tax Levy $0.43 $ 2,840,000
B. The said taxes herein provided for are levied for the purpose of payment upon the
general bonded indebtedness of the City of Tukwila, the General Fund, and for the
maintenance of the departments of the municipal government of the City of Tukwila for the
fiscal year beginning January 1, 2019.
C. The excess levy is levied for the purpose of debt service payments on the
unlimited tax obligation bonds sold to finance costs related to the City's Public Safety
Plan, as submitted to the qualified electors of the City at a special election held on
November 8, 2016.
Section 2. Collection. This ordinance shall be certified to the proper County officials,
as provided by law, and taxes here levied shall be collected to pay to the Finance Director
of the City of Tukwila at the time and in the manner provided by the laws of the State of
Washington for the collection of taxes for non -chartered code cities.
Section 3. 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 4. 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.
Section 5. 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 and effect
January 1, 2019.
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Page 2 of 3
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:
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Page 3 of 3
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8
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, INCREASING THE CITY OF
TUKWILA REGULAR LEVY FROM THE PREVIOUS YEAR,
COMMENCING JANUARY 1, 2019, ON ALL PROPERTY,
BOTH REAL AND PERSONAL, IN COMPLIANCE WITH
RCW 84.55.120; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City of Tukwila has properly given notice of a public hearing held on
November 13, 2018, pursuant to RCW 84.55.120; and
WHEREAS, after such hearing and after duly considering all relevant evidence and
testimony presented, the City Council has determined that in order to discharge its expected
expenses and obligations the City requires an increase in property tax revenue from the
previous year, in addition to the increase resulting from the addition of new construction and
improvements to property and any increase in the value of State -assessed property; and
WHEREAS, the City Council has determined it is in the City's best interest and
necessary to meet its expenses and obligations for the property tax revenue to be increased
for 2019, and the final assessed valuation calculation has been determined;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. An increase in the regular property tax levy, in addition to any amount
resulting from the addition of new construction and improvements to property and any
increase in the value of State -assessed property, is hereby authorized for the 2019 levy in
the amount of $128,824, which is a percentage increase of 0.85% from the previous year.
This increase is exclusive of additional revenue resulting from new construction,
improvements to property, any increase in the value of State -assessed property, any
annexations that have occurred and refunds made.
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Section 2. 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 3. 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.
Section 4. 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 and effect
January 1, 2019.
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:
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Page 2 of 2
LI
IT • T- 119 Tax oll
TAXING DISTRICT: City of Tukwila
The following determination of your regular levy limit for 2019 property taxes is provided by the King County
Assessor pursuant to RCW 84. 55. 100.
Annexed to Library District
Using Limit Factor
For District
15,138,333
1.0100
15,289,716
241,886,848
0
241, 886, 848
2.46282
595,724
15,885,440
(Note
Estimated Library rate: 0.33497
Calculation of Limit Factor Levy
Levy basis for calculation: (2018 Limit Factor) (Note 2)
x Limit Factor
= Levy
Local new construction
+ Increase in utility value (Note 3)
Total new construction
x Last year's regular levy rate
= New construction levy
Total Limit Factor Levy
Using Implicit
Price Deflator
15,138, 333
1.0217
15,466,683
241, 886, 848
0
241, 886, 848
2.46282
595,724
16,062,407
0
15,885,440
6,709,378,301
6,709,378,301
2.36765
0
0
Annexation Levy
Omitted assessment levy (Note 4)
Total Limit Factor Levy + new lid lifts
Regular levy assessed value less annexations
= Annexation rate (cannot exceed statutory maximum rate)
x Annexation assessed value
Annexation Levy
0
16,062,407
6,709,378,301
2.39402
0
0
0
15, 885,440
15,885,440
38,002
15,923,442
15,923,442
2.37331
15,160,892
128,824
0.85%
Lid lifts, Refunds and Total
+ First year lid lifts
+ Limit Factor Levy
= Total RCW 84.55 levy
+ Relevy for prior year refunds (Note 5)
Total RCW 84.55 levy + refunds
Levy Correction: Year of Error (+or-)
ALLOWABLE LEVY (Note 6)
Increase Information (Note 7)
Levy rate based on allowable levy
Last year's ACTUAL regular levy
Dollar increase over last year other than N/C — Annex
Percent increase over last year other than N/C — Annex
0
16,062,407
16,062,407
38,002
16,100,409
16,100,409
2.39969
15,160,892
305,791
2.02%
Calculation of statutory levy
Regular levy assessed value (Note 8)
x Maximum statutory rate
Maximum statutory levy
+Omitted assessments levy
=Maximum statutory levy
Limit factor needed for statutory levy
ALL YEARS SHOWN ON THIS FORM ARE THE YEARS IN WHICH THE TAX IS PAYABLE.
Please read carefully the notes on the reverse side.
10/31/18 9:58 AM
LevyLimitWS.doc
6,709,378,301
3.49003
23,415,932
0
23,415,932
Not usable
11
Notes:
1) Rates for fire districts and the library district are estimated at the time this worksheet is
produced. Fire district and library district rates affect the maximum allowable rate for cities
annexed to them. These rates will change, mainly in response to the actual levy requests
from the fire and library districts. Hence, affected cities may have a higher or lower
allowable levy rate than is shown here when final levy rates are calculated.
2) This figure shows the maximum allowable levy, which may differ from any actual prior levy
if a district has levied less than its maximum in prior years. The maximum allowable levy
excludes any allowable refund levy if the maximum was based on a limit factor. The
maximum allowable levy excludes omitted assessments if the maximum was determined by
your district's statutory rate limit. If your district passed a limit factor ordinance in the year
indicated, that limit factor would help determine the highest allowable levy. However, if the
statutory rate limit was more restrictive than your stated limit factor, the statutory rate limit is
controlling.
3) Any increase in value in state -assessed property is considered to be new construction value
for purposes of calculating the respective limits. State -assessed property is property
belonging to inter -county utility and transportation companies (telephone, railroad, airline
companies and the like).
4) An omitted assessment is property value that should have been included on a prior year's roll
but will be included on the tax roll for which this worksheet has been prepared. Omits are
assessed and taxed at the rate in effect for the year omitted (RCW 84.40.080-085). Omitted
assessments tax is deducted from the levy maximum before calculating the levy rate for
current assessments and added back in as a current year's receivable.
5) Administrative refunds under RCW 84.69.020 were removed from the levy lid by the 1981
legislature.
6) A district is entitled to the lesser of the maximum levies determined by application of the
limit under RCW 84.55 and the statutory rate limit. Levies may be subject to further
proration if aggregate rate limits set in Article VII of the state constitution and in RCW
84.52.043 are exceeded.
7) This section is provided for your information, and to assist in preparing any Increase
Ordinance that may be required by RCW 84.55.120. The increase information compares the
allowable levy for the next tax year with your ACTUAL levy being collected this year. The
actual levy excludes any refund levy and expired temporary lid lifts, if applicable. New
construction, annexation and refund levies, as well as temporary lid lifts in their initial year,
are subtracted from this year's allowable levy before the comparison is made.
8) Assessed valuations shown are subject to change from error corrections and appeal board
decisions recorded between the date of this worksheet and final levy rate determination.
10/31/18 9:58 AM
LevyLimitWS.doc
12
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.
13
14
COUNCIL AGENDA S OPSIS
-- - -- ---
Meeting Date
Prepared by
Mayor's review
Gond! review
1 I 18
VC
ITE
INFOR
ATION
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 0, D iscussio
n
11/13/18
0 Motion
Aftg Date
0 Resolution
Mtg Date
0 Ordinance
Mtg Date
E Bid Award
Mtg Date
Public Hearing
0 Other
Mtg Date
Mtg Date
Mtg Date 11/13/16
SPONSOR Council flMayor 0 HR 01)CD EFinane Fire IIITS E]P&R Police [DPW E] Court
SPONSOR'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 0 COAX/. Mtg. 0 CDN Comm
0 Trans &Infrastructure Arts Comm.
DATE: 11/6/18
i4 Finance
Comm. 0 Public Safety Comm,
Comm. 11-.] Planning Comm.
CHAIR: QUINN
0 Parks
COMMITTEE
RECOMMENDATIONS
SPONSOR/ADMIN.
COMMMTLE
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/ 8 (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 Commuttee meeting 11/6/18
15
16
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDU
TO: Finance Council Committee
FROM: Peggy McCarthy, Finance Director
BY: Vicky Carlsen,DepWty Finance Director
CC: Mayor Ekberg
DATE: October 31,2818
SUBJECT: 2019-2020 Biennial Budget Ordinance
2019-2024Financial Planning Model and Capital hmorovemMent Program
Updated after November 6, 2018 Finance Committee
ISSUE
Adopt 2020 biennial budget and the 2019 — 2024 Capital Improvement Program (CIP) by the
end ofDecember.
BACKGROUND
The proposedbiennial budget for 201g-2O2Oand draft 2O1S-2O24[1Pwere presented hoCouncil on
October 1.2O18^ Departments within the general fund and all other funds have been reviewed in Council
Committees and atthe Council Committee ofthe Whole. Additionally, Council held budget workshops on
September 9and October 24.2Q18.todiscuss both the budget and C|P, Additional workshops may be
scheduled before final adoption.
DISCUSSION
Atthis time the proposed 2O1S-2D2Obiennial budget aswell asthe 2O1S-2024C|Piabeing presented
b)the Finance Committee for review and discussion. The public hearing, another opportunity for community
input, is scheduled for Tuesday, November 13, 2018.
The ordinance and resolution are indraft form and will beupdated prior bo final adoption ifany changes are
made hzeither the proposed biennial budget orthe {IP.
Update after November G`2O18Finance Committee Meetinq
At the Finance Committee meeting, m revised ordinance hoadopt the 2O1B-2O20 biennial budqetwas
pnemented to the committee that included o section to allow for the implementation of COLA for non -
represented employees as provided for in Resolution No. 1796 Compensation Policv.
The budqethas been drafted toinclude aCOLA adjustment and adding the new section 2into the budqet
adoption ordinance would give authority for a COLA of 90% of CPI for non -represented employees to be
implemented onJanuary1.2O19.
RECOMMENDATION '
The Finance Committee is being asked to approve the 2019 — 2020 biennial budget ordinance and the
2D1g-2024Financial 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
11/13/18Committee ofthe 'Whole and will then be scheduled for ofuture Regular Meeting at the direction
ofthe Council President, after all budget deliberations have occurred.
ATTACHMENTS
17
18
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 Iivinq 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:
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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 Gmemment 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
Expenditures
$144,629,376
6,895,897
2,951,302
12,539,621
57,637,865
336,507
9,957,242
6,594,967
685,637
2,064,537
1,264,196
2,233,064
738,761
1,007,612
82,136,549
9,414,000
19,990,522
28,998,430
4,281,881
20,542,959
10,715,532
14,591,012
1,060,079
1,597,856
$442,865,403
Total
Revenues
$ 144,629,376
6,895,897
2,951,302
12,539,621
57,637,865
336,507
9,957,242
6,594,967
685,637
2,064,537
1,264,196
2,233,064
738,761
1,007,612
82,136,549
9,414,000
19,990,522
28,998,430
4,281,881
20,542,959
10,715,532
14,591,012
1,060,079
1,597,856
$ 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.
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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
AIIan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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21
22
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.
WAWord Pro sing\Resolutions\Financial Planning Model CIP 10-29-18
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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:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Rachel B. Turpin, City Attorney
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24
Page 2 of 2
Reconciliation of 2019 - 2020 Budge
Summary to Ordinance
EXPENDITURES
2019
Expenditures
2020
Expenditures
2020 Ending
Fund Balance
Total
Expenditures
000 General
$ 65,275,209
$ 65,778,779
$ 13,575,388
$144,629,376
101 Hotel/Motel
693,131
695,498
1,562,673
2951,302
103 City Street
6,616,000
5,701,000
222,621
12,539,621
104 Arterial Street
8,404,599
48,935 82
297,884
57,637,865
105 Contingency
-
-
6,895,897
6,895,897
109 Drug Seizure Fund
60,000
60,000
216,507
336,507
2XX LTGO Debt Service Funds
4,979,263
4,589;893
388,086
9,957,242
213 UTGOBonds
2,841,675
3,713,175
40,117
6,594,967
206 LID Guaranty
-
685,637
685,637
233 2013 LID
688,637
668,613
707,287
2,064,537
301 Land Acquisition, Recreation Park Dev.
605,000
50,000
609,196
1,264,196
302 Facility Replacement
235,000
215,000
1,783,064
2,2 ,064
303 General Government improvements
353,094
358,015
27,652
738,761
304 Fire improvements
500,000
500,000
7,612
1,007,612
305 Public Safety Plan
39,896,578
40,028,146
2,211,825
82,136,549
306 City Facilities
4,629,000
4,785,000
(0)
9,414,000
401 Water
7,650,901
9,000,238
3,339,382
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
706,128
4,281,881
412 Surface Water
8,933,224
7,302,426
4,307,309
20,542,959
501 Equipment Rental
4,435,204
3,777 658
2,502,670
10,7 5,532
502 Insurance Fund
6,904,662
7,412,104
274,247
14,591,012
503 Insurance - LEOFF 1 Fund
465,755
489,313
105,011
1,060,079
611 Firemen's Pension
69,991
69,991
1,457,874
1,597,856'
Total
$ 176,777183
$ 215,723,673
$ 50,364,547
$442,865,403
REVENUES
2019 Beginning
Fund Balance
2019
Revenues
2020
Revenues
Total
Revenues
000 General
$ 12,590,576
$ 65,739,600
$ 66,299,200
$144,629,376
101 Hotel/Motel
1,370,302
778,000
803,000
2,951 302
103 City Street
2,826,621
4,002,000
5,711,000
12,539,621
104 Arterial Street
3,621 865
6369,000
47,647,000
57,637,865
105 Contingency
6,447;329
148,568
300,000
6,895,897
109 Drug Seizure Fund
226,507
55,000
55,000
336,507
2XX LTGO Debt Service Funds
387,669
4,979,262
4,590,311
9,957,242
213 UTGO Bonds
40,117
2,84 675
3,713,175
6,594,967
206 LID Guaranty
685,037
300
300
685,637
233 2013 LID
707,287
688,637
668,613
2,064,537
301 Land Acquisition, Recreation & Park Dev.
1,019,476
128,320
116,400
1,264,196
302 Facility Replacement
2,213,064
10,000
10,000
2,233,064
303 General Government Improvements
337,761
200,500
200,500
738,761
304 Fire Improvements
7,412
500,100
500,100
1,007,612
305 Public Safety Plan
13,038,494
66,414,346
2,683,709
82,136,549
306 City Facilities
1,914,000
7,500,000"
9,414,000
401 Water
5,149,522
7;317,000
7,524,000
19,990,522
402 Sewer
9,174,430
9,912,000
9,912,000
28,998,430
411 Foster Golf Course
640,081
1,793 900
1,847,900
4,281,881
412 Surface Water
3,482,959
9,070,000
7,990,000
20,542,959
501 Equipment Rental
3,874,899
3,619,089
3,221,544
10,715,532
502 Insurance Fund
1137,704
6,563,872
6,889,436
14,591,012
503 Insurance - LEOFF 1 Fund
527,005
266;533
266,541
1,060,079
611 Firemen's Pension
1,449,856
74,000
74,000
1,597,856
Total
$ 72,869,972
$198,971,702
$171,023,729
$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
28
COUNCIL AGENDA SYNOPSIS
------------- -- - - -
MeetingDate
Prepared by
Meg review
Council review
11/13/18
LH
C,9ec
9/18
LH
ITE
NFORMATION
ITEM No.
4.C.
STAFF SPONSOR: LAUREL HUMPHREY
ORIGINAL AGENDA DATE: 11/13/18
AGENDA ITEM TITLE Resolution adopting updated financial planning and other general po icies.
CATEGORY ri Discuiston
11/13/18
fj] Motion
Mtg Date
Resolution
[1] Ortiz/7am?
Mtg Date
E Bid ,fivard
Mtg Date
E Public Hearing
Mg Dale
[1] Other
Mtg Date
Mtg Date
Alt,g Date 11/19/18
SPONSOR VACo.wn7l EJMajor DEIR ODCD OFmance EFzre DM- [11PR Police LIPW EjCoeirt
spoNsows The draft resolution adopts revisions to the financial planning model and other general
SUMMARY financial policies. These policies are published in the adopted Budget and Capital
Improvement Program.
REVIEWED BY E C.O.W. Mtg. El CDN Comm
[ Trans &Infrastructure J Arts Comm.
DATE: 11/6/18
Finance
Comm. El Public Safety Comm.
Comm. [1] Planning Comm.
CHAIR: QUINN
El Parks
COMMITTEE
RECOMMENDATIONS:
SPONSOR /ADMIN,
COMMI
II EE
COST IMPACT FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source: GENERAL FUND
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
11 3 8
MTG. DATE
ATTACHMENTS
11/13/18
Infor a ional Memo dated 10 24/ 8
Draft resolution, with police
Minutes from the Finance Com. meeting of 11/6/18
11/19/18
29
30
City of Tukwila
Allan Ekberg, Mayor
INFOR AT 0 AL E ORA DU
TO: Finance Committee
FROM: Laurel Humphrey, Council Analyst
CC: Mayor Ekberg
DATE: October 24, 2019
SUBJECT: Resolution updating Financial Planning Model and other General Financial
Policies
ISSUE
Financial Policies are adopted by Council Resolution and included as appendices in the
adopted Budget and Capital Improvement Program. Policies are reviewed on a regular basis
and updated as needed.
DISCUSSION
The City's Financial Policies represent values and expectations for financial planning,
budgeting, accounting, reporting and other management practices. Revisions for the 2019-2020
biennium are proposed to include two new policies and housekeeping adjustments to the
others.
Proposed New Policy: FP-7
For the purpose of compliance with Tukwila Municipal Code Section 3.32.040,
"Unbudgeted Equipment or Fixed Assets," "unbudgeted" shall mean when a department's
capital asset line item has insufficient budget for the desired purchase. Capital equipment
or fixed asset purchases between $5, 000 - $39, 999 are not subject to TMC 3.32.040 and
do not require Council Committee approval if there is sufficient budget, unless there is a
policy implication.
This policy was requested by the 2017 Finance Committee. Last year, in an effort to streamline
purchasing practices, Administration proposed removing Tukwila Municipal Code 3.32.040,
"Unbudgeted Equipment or Fixed Assets."
TMC 3.32.040: Unbudgeted Equipment or Fixed Assets
Any unbudgeted capital equipment or fixed asset item, including components or services
of items, shall be approved by the Mayor and three affirmative votes of the respective
Council committee assigned to the requesting department. "Fixed asset" items are
defined as costing at least $5,000 and having a useful life of at least two years."
This provision requires Committee approval of certain purchases costing between $5,000 -
$39,999 that have not been specifically listed in the budget, and has included items such as
replacement treadmills, a striping machine, and a mobile evidence device. The Committee was
not comfortable ceding this authority and did not support removing that section from the TMC.
However, they did support streamlining processes and making efficient use of Council time, and
so requested a financial policy that clarifies the interpretation of TMC 3.32.040 to mean that if
sufficient appropriation exists to cover the purchase, it is deemed budgeted. Unbudgeted will
mean that the department's capital asset line item has insufficient budget for the desired
purchase. Again, this will only apply to items under $40, 000 as anything above that requires
Council approval. The Committee was also clear that any purchase with a policy implication
should be reviewed by Council. An example of this would be the Police Department's $39,000
purchase of unmanned aircraft systems in 2017.
31
INFORMATIONAL MEMO
Page 2
Proposed New Policy: GF-6
The City Council shall receive an updated list of all contracts every quarter, including the
amount, responsible department, scope of work, and expiration date.
At the October 15, 2018 Regular Meeting, Council President Seal received Council consensus
to consider adding a policy similar to the City of Renton's wherein the City Council receives a
quarterly report listing all contracts. Staff recommends that all Councilmembers receive this
report at the same time rather than linking it to the individual Councilmember voucher review
process. The City Clerk's Office manages all contracts for the City and would be responsible
for generating this report on a quarterly basis within 10 days of the end of each quarter. The
report could be delivered electronically and in hard copy. Staff proposes implementing this
practice beginning with the 1st Quarter of 2019.
All of the proposed changes are described as follows:
Policy FP-1
Updates title of referenced document
Policy FP-2
Updates title of referenced document
Policy FP-3
Updates title of referenced document
Policy FP-4
Revises to align with current Council preferred practice of Council
Committees approving capital grant applications requiring a local match.
Adds requirement that exceptions to Capital Improvement Program projects
require Committee approval.
Policy FP-7
New policy requested by 2017 Finance Committee to streamline the
process required by Tukwila Municipal Code 3.32.040, "Unbudgeted
Equipment or Fixed Asset Items."
Policy FP-8
Renumbered
Policy FP-9
Renumbered and clarifies Enterprise Fund
Policy FP-10
Renumbered and clarifies Enterprise Fund
Policy GF-6
New policy requested by City Council on October 15, 2018
RECOMMENDATION
Staff is seeking discussion and feedback on the proposed revisions, particularly the new Policy
FP-7. While this was originally discussed in November 2017, this resolution is updated on the
biennial budget schedule and can be added now if there is still Committee and Council support.
If the Committee is ready to move forward, a recommendation on this item can go to the
November 13 Committee of the Whole meeting for further discussion.
ATTACHMENTS
Draft Resolution
32
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUKWILA, WASHINGTON, ADOPTING UPDATED
POLICIES RELATED TO THE FINANCIAL PLANNING
MODEL AND OTHER GENERAL FINANCIAL POLICIES;
AND REPEALING RESOLUTION NO. 1897.
WHEREAS, the City Council and Mayor are committed to high standards of financial
management; and
WHEREAS, adopting and periodically updating and revising financial policies are
important steps toward ensuring consistent and rational financial management; and
WHEREAS, policies related to the Financial Planning Model and other general
financial policies are essential components of an overall financial management policy;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Financial policies related to the Financial Planning Model and policies of
a general nature, as evidenced in Exhibit A, are adopted.
Section 2. The financial policies related to the Financial Planning Model and other
general financial policies shall be reviewed on a regular basis and updated as necessary.
Section 3. Repealer. Resolution No. 1897 is hereby repealed.
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33
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:
Attachment:
Exhibit A — Financial Planning Model Policies and Other General Financial Policies
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34
EXHIBIT A
City of Tukwila
Financial Planning Model Policies
The six -year "Financial Planning Model and Capital Improvement Program" is the primary
financial policy document. It represents the culmination of all financial policies.
Revenues
Policy FP-1: Revenues will be estimated on a conservative basis. Increases greater
than inflation in the schedule known as the 6-Year Financial Plan "Attachment A,"
General Fund Revenues and Expenditures, will require additional documentation.
Policy FP-2: Major revenue sources will require explanation in the document known
as "Attachment A 1," Notes to 6-Year Financial Plan - Revenues, Expenditures and
Fund Balance.
Operating Expenditures
Policy FP-3: Expenditures for the General Fund operations (schedule known as
"Attachment B," General Fund 'Operating Maintenance and Operations
DetailExpenditures) will only include basic inflationary increases at the beginning of
the budget preparation process. Proposed increases in programs or personnel will
require an issues and options paper and Council approval before being added to the
operating expenditures estimate.
Capital Expenditures
Policy FP-4: Project capital grants with local matching requirements can only be
applied for with express approval by the City Councilappropriate City Council
Committee. Grant applications should generally be shall bo made only for projects
listed in the six -year Capital Improvement Program, although exceptions can be made
with approval by the appropriate City Council Committee,
Policy FP-5: If the proposed grants or mitigation are either not funded or are reduced,
the respective project will be reevaluated on the basis of its value and priority level
placement in the Capital Improvement Program.
Policy FP-6: The financing of limited benefit capital improvements (i.e. private
development) should be borne by the primary beneficiaries of the improvement. The
principle underlying limited benefit is that the property is peculiarly benefited and
therefore the owners do not in fact pay anything in excess of what they receive by
reason of such improvement.
Page 1 of 2
35
Policy FP-7: For the purpose of compliance with Tukwila Municipal Code Section
3.32.040, "Unbudgeted Equipment or Fixed Assets," "unbudgeted" shall mean when
a department's capital asset line item has insufficient budget for the desired purchase.
Capital equipment or fixed asset purchases between $5,000 - $39,999 are not subiect
to TMC 3.32.040 and do not require Council Committee approval if there is sufficient
budget, unless there is a policy implication.
Enterprise Funds
Policy FP-87: Each Enterprise Fund shall be reviewed annually and it must have a
rate structure adequate to meet its operations and maintenance and long-term capital
requirements.
Policy FP-98: Enterprise Fund rRate increases shall be small, applied frequently, and
staggered to avoid an overly burdensome increase and undue impact in any given
year.
Policy FP-10g: Enterprise Fund rRate increases of external agencies (i.e. King County
secondary wastewater treatment fees) will be passed through to the users of the
utility.
Other General Financial Policies
Policy GF-1: The City's various user charges and fees shall be reviewed at least every
three years for proposed adjustments based on services provided and comparisons with
other jurisdictions.
Policy GF-2: The Finance Director shall provide a financial status update at least quarterly.
Policy GF-3: Budget amendments during the year may be approved by budget motion until
the end of the budget year, at which time a formal comprehensive budget amendment is
submitted.
Policy GF-4: The City shall, whenever practical and advantageous, take advantage of
grants, loans, or other external financial sources. With the exception of capital improvement
program grants requiring a local match, staff shall report to and seek the approval of the
appropriate Council Committee before finalizing the grant.
Policy GF-5: Funds exceeding the Mayor's allocated signature authority shall not be
moved between City departments without prior approval of the City Council.
Policy GF-6: The City Council shall receive an updated list of all contracts every quarter,
including the amount, responsible department, scope of work, and expiration date.
Page 2 of 2
36
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.
37
38
COUNCIL AGENDA SYNOPSIS
Inite`alr -----
-------------
Meeting Dale
Prepared by
Mayor's review
Counctl.review
10/22/18
VC
11/13/18
VC
11/19/18
VC
ITE
INFORMATION
ITEM No.
4.D.
S1`AFT SPONSOR: VICKY CARLSEN
ORIGINAI,.AGENDA D. TE; 10/ 22/ 18
AGENDA ITEM TITLE Proposed increase to business license fee
C-V 11GOR\' ►, Dn
uJ'.rion
11/13/18
Motion
Mtg Date
® Reioolution
Mtg Date 11/19/18
❑ Ordinance
Mtg Date
[ Bid Award
VItg Date
E Publ e Hearing
Mtg Date
❑ Other
Mtg Date
Mtg Date
SPONSOR ❑Council Mayor ❑HR EDCD
Fire ❑7S ❑P&R C1 olice EPW' (Court
►1 Finance
SPONSOR'S Council is being asked to approve a resolution increasing the fees to take effect January 1,
SUMMARY 2019.
RL\'IE"X'ED'BY
❑ C.O.W.
Mtg. Q CDN Comm
❑ Arts Comm.
11 Finance
Comm. ❑ Public Safety Comm.
Comm. ❑ Planning Comma
CHAIR: QUINN
Trans &Infrastructure
❑ Parks
COMMITTEE
DATE: 10/16/18
RECOMMENDATIONS;
SPONSOR/ADMIN.
COMMITTEE.
Mayor's Office
No recommendation; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EXPENDI'I"LIRE RE QUIRI,D AMOUNT BUDGETED APPROPRIATION REQUIRED
$
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
10/22/18
MTG. DATE
ATTACHMENTS
10/22/18
Informational Memorandum dated 10/10/18 (updated to add table after Finance Coma)
Resolution (Updated to remove reference to "'panoram" after Finance Com.)
Minutes from the Finance Com. of 10/16/18
11/13/18
Info Memo dated 10/10/18 (updated to include, Open House info & input from 11/5 Reg)
Draft Resolution
Minutes from the Finance Com. of 10/16/18
11/19/18
39
40
TO:
FROM:
BY:
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
Finance Committee
Peggy McCarthy, Finance Director
Vicky Carlsen, Deputy Finance Director
CC: Mayor Ekberg
DATE: October 10, 2018
SUBJECT: Proposed increase to business license fee
Updated after October 16, 2018 Finance committee meeting, page 2
ISSUE
The City Council is being asked to increase the business license fee,
BACKGROUND
More than one-third of the City's general fund revenues comes from the City's portion of the sales
tax (less than 1°/0 of the total sales tax rate). With the statewide change to destination -based
sales tax — which means sales tax is charged to where the item is delivered — Tukwila lost
significant sales tax revenues, which continues to negatively affect the City today. In addition,
many people prefer to shop online, skipping brick and mortar opportunities, further reducing
Tukwila's sales tax generation. Finally, the State's mitigation payments to cities hard hit by
destination -based sales tax — called Streamlined Sales Tax Mitigation payments — is ceasing in
2020. This act alone will reduce Tukwila's revenue by $1.2 million a year starting in 2020.
The Administration instructed departments to achieve a 3% underspend in 2018, which the City
is on track to achieve. In addition, during the development of the Mayor's proposed 2019/2020
budget, departments were directed to include a 3% reduction in supplies and services; Fire and
Police were given a 1.5°A goal. The result of this is approximately $1.8 million in savings per year.
Also included in the proposed budget are new revenues to allow the City to continue to provide
high level of services to the Tukwila community, New revenues include an increase in the City's
gambling tax and business license fees. The proposed new revenue equals the amount of
reductions identified above, and the goal was to propose a balanced approach to addressing the
City's structural budget challenges of revenues not growing as fast as expenses.
DISCUSSION
The current business license fee is $70 per full time employee or $35 per part time employee. If
the fee were raised to $112 per full time employee and $56 per part time employee, an additional
$1.5 million could be generated. In comparison, the business license fee for the City of Kirkland
is $105 per FTE and $112 for Redmond — neither city has a B&O tax. Raising the City's fee would
bring it in line with these rates.
City staff have been meeting with various members of the business community regarding this
proposal including but not limited to the Seattle Southside Chamber, Sabey Corporation, Baker
Commodities, Great American Casino, BECU and Seattle Chocolates. Overwhelmingly the
businesses community members were pleased that the approach to the budget problems included
reductions. While no one likes higher fees, the business representatives City staff spoke with
understood the reason for the increase and appreciated the outreach.
41
INFORMATIONAL MEMO
Page 2
42
City staff also recommend the Council change the "Contractor based outside of Tukwila" to a flat
fee of$1O0. There remains significant confusion with these outside -based contractors as to how
they calculate their fees with no employees located within the city. A flat rate will eUovv for an
efficient administration of this category. FinoUy, when updating the business license fee
reoo|udon, staff noticed on outdated license category that has not been used in many years and
recommend removing it from the fee schedule.
Follow up from October 16.2018 Finance Committee meeting.
At the committee meetinq, a request was made to provide business license fees from other nearby
cities. Asacomparison, below are cities and their business license fee and ifthey impose aB&C)
City Flat Fee Other s&O
(0'10FTEo): $100.(11'50FTEs:*250.(51'100FTEs): $1500.(101'500FTEs):
GoaTac B4750.(201'1000+FTEs):$8500 No
$1 p.*75 0-33emp.$30HumeOouinBunon,$75HomeOuo `
Buhon � uu��a8uhen,they po-raVafees ` �� r/' Yee
Auburn $50 No
0-24Emp$240�5925' 9 Emp$840�59.50-99Emp$540.59.100+Emp$101.if
Kent opening July 1fee isreduced � ^ ?an
Renton $150 $15O/yrifgross revenue iobelow $5OU,0OU. Ifover they pay $15Oplus 8&Otax. Yes
/ Annual Rev. ($0-$1 9 $ $20,000-$499989):q110,($500,00-`:
Seattle ,' *1,999,999) ,000- .Sg9,999y$l,0O�$5,0UO,00g+: $2,000 /'�� Yee
Plus $5 registration fee plus a $4 customer service fee on all FilelLocal Payment
Bellevue $SO Transactions
Redmond - minimumfee $112/FTE
Kirkland Base Fee: $1OOplus $1O5/FTE
Woodinville $83 Plus $M applicationhae ' ,� /NoBusinesses with less than $3,000 annual gross revenue is exemptfrorn this
Issaquah $60 business endorsement requirement
Wrcer Island $30 B&Oon gross revenue in excess of$150,000/yr
Yes
No
No
Yes
Yes
Outside Contractor Fee
Information was also requested on business license fees for outside contractors.
Cit
Outside Contractor Fee
Cit
Outside Contractor Fee
SeaTac
$15Oflat fee
Bellevue
Same aabusiness license fee
Buhen
First time fee $75. renewal $80
Redmond
Same as business |ioonoo fee
Auburn
$5Oflat fee
Kirkland
Same anbusiness license fee
Kent
$101flat fee
Woodinville
Same uabusiness license fee
Renton
Same aobusiness license fee
Issaquah
Same osbusiness license fee
Seattle
Same aabusiness license fee
Mercer Island
Same aabusiness license fee
Business Outreach
To notify businesses of the proposed business license fee increase and receive feedback,
business outreach was conducted from September 2411 throuqh October 17 1h as follows:
Business
Outreach
l
VVashinqbznP|ece
Two staff convened meeting on -site
2
American Medical Response (AMR)
Two staff convened meeting on -site
3
Baker Commodities
Mayor and staff convened meeting on -site
4
BECU
Mayor and staff convened meadnqon-site
5
Boeinq
Staff convened meadnqatCity Hall
6
Clarion
Two staff convened meeting in business district
INFORMATIONAL MEMO
Page 3
7
Continental Mills
Two staff convened meuUnqon-site
8
Cnahco
Two staff convened meeting on -site
4
OoubletnaeHobg
Staff convened n}osdin.qon-site
lO
Fortune Casino
Staff convened meedngon-site
}}
Great American Casino
Mayor and two staff convened meebnQon-site
lZ
Macau Casino
Staff convened meeting on -site
l]
Rainier Industries
Mayor and staff convened meeting atCilyHall
14
ReqenuyCenters
Staff convened meadnQinbusiness district
--
15
Riverside Casino
Staff convened meednqon'oiho
16
SabeyCorp
N1ayorand staff convened meeting inbusiness district
17
Soqo|ePrupertiea
Two staff convened meeUnqon-site
18
ToPPotOonutn
Staff received email from business
19
Wig Properties
Two staff convened meeUnqon-site
Staff contacted an additional five businesses with the qom| ofnneehnQ with them directly on the
business license issue but did not receive return calls. In qenenai the business community
expressed appreciation fbrbeinq contacted and the opportunity to Aive input. There was
underetandinA of the financial circumstances neoeeeitadDq the fee increase thouqh some
commented that the percentaqeincrease was hiqh,
Follow mpfrom Open House held onOctober 29.2018.
The City nlsj|ed more than 2.000 postcards to all businesses with a physical location in Tukwila
inviting them to attend an open house on OctQher7g. 2018. Businesses were invited to meet
with staff and discuss the proposed business license fee increase.
Eleven businesses attended the open house and spoke with staff and tvv000unci|[nennbero.
Summarized below are comments made bythe various business representatives.
*Representatives appreciated that we held the open house and gave businesses the
opportunity tocomment
° /\ couple of attendees indicated that they were disturbed that more didn't show up to the
open house
w Several asked if the City had considered other revenue opdons. One specifically asked if
the City had considered a B&O tax and was qlad to hear that option did not move forward
*Atleast two commented that they were appreciative that the City reduced costs inaddition
toinoneasinq revenue
* One business owner entered the room and asked "Where dU| say n8?~'
* Several expressed concern neqarU|nqthe overall cost tobusinesses
At least one business representative stated '1lO96iemaiQnifiomntincrease"
Two businesses asked whether the City would consider steppinq in the increase over time
w A Tukwila contractor preferred the former method of oonlpuUnq the business license fee
Using full time equivalent (FTE) hours instead of per employee fee. TyRico||y, he hires
multiple employees for periods of less than one year depenclinq on the size and schedule
[feach iob.
A comment board was also provided for representatives to leave their comments in writinq. Below
are the comments placed onthe board.
* "Enhanced ormore outreach tosmall businesses"
p "Restaurant and hotel "use tax" (per bed/niqht)for example"
• "Find another solution — a 6096 hike in license fees is unacceptable. You will be drivinq
businesses away"
° "Thank you for invitinquatocomment"
* ''Mona predictable increase? 3%every year instead of8O94 in one year"
43
INFORMATIONAL MEMO
Page 4
44
*,Bi-anDuENpayments"
° "Possible to step into increase? Start lower go higher?"
• "Re-evaluate fee (dovvnvvmnd) if budget gap is srnm|kar^
The Mayor's proposedbudget includes abusiness license fee of$112for full time employees and
$56 for part time employees. Council also requested analysis of a stair -step increase in the
business license fee. If Council chooses to implement the business license fee increase in two
steps; 50% in 2019 and the full increase in 2020, a decrease of $750 thousand in revenue would
Uereflected mthe 2O19budget only.
Follow up from the November 5,2018Regular Meeting.
At the November 5, 2018 Regular meeting, Council diacussed, and opproved, an increase to the
gambling tax oDcard rooms. During the discussion ofthis item, Council talked about 'capping the
business license fee for casinos operodnV card rooms as modeled in Option B in the Six Year
Forecast
^ — Revenue -Option info memo. If Council chooses to cap the license for card rooms at
$500 per year, the result vvuu|d reduce revenues each year by approximately $23thoumand. If
Council chooses toexempt card rooms entirely from the business license fee, the result would bo
areduction inongoing revenues ofapproximately $24thousand.
It should be noted that change in the business license fee for card room establishments will
require 8change bothe proposed resolution, However, ifcard room establishments are exempted
from the business license fee, an amendment to the model ordinance, recently approved, will be
necessary.
Update on pnmpmmmd Fee for Outside Contractors
The new model
' ordinance, required by the State, includes a provision for businesses that do not
maintain a place of business within the City and gross proceeds of sales or gross income is equal
to or less than $2.000 is exempt from the business license fee. Further analysis was done to
determine the impact nfthis legislation on outside contractor revenue. Because the City does not
collect income information on businesses, the financial impact cannot be estimated with any
precision. Homevar, for2O18. over 7596 of outside contractors reported 2 or less employees. It
is entirely Possible that the maiority of the contractors that only report 1 or 2 employees would fall
below the threshold and not barequired tqpay obusiness license fee.
At the October 16, 2018 Finance Committee meeting, staff recommended ohmnqinq the fee
structure for outside contractors to o flat fee of $100. The change was recommended due to
significant confusion from the outside contractors on how to calculate the business license fee.
In order to mitigate the possible impact of the minimum thnaaho|d, staff is nsconnrneMd1ng
increasing the flat fee recommendation from $1OOto$15O.
Decisions tobeMade
There are several decisions that need to be made regarding business license fees prior to the
adoption of the 2019-2020 biennial budget.
1' What business license fee should beadopted?
a. $112per full time employee and $58per part time employee mecurrently proposed
b. Stair stepped implementation of $91 and $45 in 2019 and the full increase in 2020
o. Nochange inexisting fee structure
d. Other
2. What should the business license fee befor card room establishments?
o. Same oaother businesses
b. Flat fee of$5UO
o. Exempt from the business license fee
d. Other
3. What should the fee be for outside contractors?
INFORMATIONAL MEMO
Page 5
a. $100 flat fee
b. $150 flat fee
c. Same as business with physical presence (no change)
d. Other
Once consensus has been reached on each of these items, staff will bring an amended resolution
and/or ordinance to the Regular Meeting on November 19, 2018 for approval. Business license
renewals are historically sent out the third week in November, so any changes to the business
license fee are time -sensitive in order to provide businesses with adequate time for license
renewals.
RECOMMENDATION
Council is being asked to forward this item to the October 22, 2018 Committee of the Whole
meeting and subsequent November 5, 2018 Regular Meeting for adoption to approve the rate
increase effective January 1, 2019. This will allow sufficient time for notification to affected
businesses,
ATTACHMENT
Draft resolution
45
46
NOTE: Shaded text on page 3 reflects changes made after
review by the Finance Committee on October 16, 2018.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF TUKWILA, WASHINGTON, REPEALING
RESOLUTION NO. 1913 AND ADOPTING A
REVISED BUSINESS LICENSE FEE SCHEDULE.
WHEREAS, the City has analyzed current business license fees; and
WHEREAS, the State of Washington's streamlined sales tax mitigation payments
are being phased out in 2019 and will cease in 2020, thereby reducing General Fund
revenue by $1.2 million annually; and
WHEREAS, sales tax revenue, due to destination -based sales tax distribution rules,
has not grown at the same rate as expenditures; and
WHEREAS, the City is seeking to take a balanced approach to ensure that ongoing
expenditures are paid for with ongoing revenue;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Repealer. Resolution No. 1913 is hereby repealed.
Section 2. Fee Schedule. For 2019, Business License fees will be charged
according to the following schedule:
(continued...)
W:\Word Processing Resolutions\Business license fee schedule revised 10-17-18
RB:bjs
Page 1 of 4
47
ANNUAL BUSINESS LICENSE FEE SCHEDULE
Standard Business License fee:
$56 45 per part-time employee*
plus
$112 7-G per full-time employee*
* Employee is defined at Tukwila Municipal Code
Section 5.04.010(10), copied below.
• A "part-time employee" is an employee
working 29 or less hours per week.
• A "full-time employee" is an employee working
30 or more hours per week.
equals total Business License Fee**
** The total Business License fee due
time and full-time employees employed
For example, a business with one part-time
pay a Business License Fee of $56 ,3-5.
A business with one full-time employee
License Fee of $112 7-0.
will vary based on the combination of part-
by the business.
employee (and no other employees) will
(and no other employees) will pay a Business
Minimum Business License fee: $56.00
.
Business License Fee for contractors operating within the City of Tukwila
boundaries without a physical presence: $100.00 flat fee
*Tukwila Municipal Code Section 5.04.010(10):
10. "Employee" means and includes each of the following persons who are not
required by the City to have his/her/its own separate City of Tukwila business license:
a. Any person employed at any business who performs any part of their
duties within the City of Tukwila or reports from a location within the City's corporate
limits; and
b. Any person who is on the business's payroll, and includes all full-time, part-
time, and temporary employees or workers; and
c. Owners, officers, managers, and partners; and
d. Any other person who performs work, services or labor at the business
including, but not limited to, family members, regardless of whether they receive a wage
from the business 7; and
e. Self-employed persons, sole proprietors, owners, officers, managers, and
partners; and
f. Any other person who performs work, services or labor at the business,
including an independent contractor who may be exempt from requirements to have a
separate City of Tukwila business license.
VV:\Word Processing\Resolutions\Business license fee schedule revised 10-17-18
RB:bjs
48
Page 2 of 4
Other annual license fees:
Adult Cabaret establishment
$500.00 + Business License Fee (per above)
Adult Cabaret entertainer
$75.00 + Business License Fee (per above)
Adult Cabaret manager
Adult Entertainment Cabaret
establishment
$500.00 + Business License Fee (per above)
Adult Entertainment Cabaret
entertainer
$75.00 + Business License Fee (per above)
Adult Entertainment Cabaret
manager
$75.00
Amusement Center
$5OO.0]+Business License Fee (per above)
Amusement device fee
$50.00 per device + Business License Fee (per above)
Amusement device removal fee
$5O.0Jper device
Amusement device storage fee
$10.00 per device per day
AppealFee
Cabaret establishment
$3OD.00+Business License Fee (per above)
Contractor ba--odoUt--idaofTukwila
Same as Busine-s License Fee (per above)$100.00
Penalty for late acquisition of
business license (operating e
business without a valid license)
|freceived orpostmarked within Oto5Ddays of
operation= 596oflicense fee
If received orpostmarked within 31 to 80doyo of
operation = 1096 oflicense fee
If received or postmarked within 01 to 90dmya of
operation = 1596 oflicense fee
If received orpostmarked within 91 to 120dmyo of
operation =2O96oflicense fee
|freceived orpostmarked a1121 days ofoperation or
longer = maximum of2596oflicense fee
vVAVmm license fee schedule revised 10'1p18
Page 3of4
49
Penalty for late renewal of business
license
If received or postmarked Feb. 1 through Feb. 28
= 15% of license fee
If received or postmarked March 1 through March 31
= 30% of license fee
If received or postmarked April 1 or later
= 45% of license fee
Peddler/Solicitor
$70.00
Reinstatement of license fee
$50.00
Washington State Patrol WATCH
background check
$12.00
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:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Rachel B. Turpin, City Attorney
W:\Word Processing Resolutions\Business license fee schedule revised 10-17-18
RB:bjs Page 4 of 4
50
Finance Committee Minutes October 16, 2018
C. Ordinance: Business License Fees
Staff is seeking Council approval of a resolution that would increase the business license fee
from $70 to $112 per full time employee and from $35 to $56 per part time employee, resulting
in a revenue increase of $1.5 million. The City is facing a budget shortfall due to flattening sales
tax and the loss of streamlined sales tax mitigation payments. The Mayor's proposed budget
includes $1.8 million in departmental reductions and additional revenues in the form of
increases to gambling tax and business license fees. The proposed resolution adopts a revised
business license fee schedule, changes outside contractors to a flat fee of $100, and will remove
reference to the archaic "panoram" category. Committee members discussed the proposal for
contractors based outside of Tukwila and decided the flat rate should be evaluated after one
year. Councilmember Kruller asked for rates for neighboring jurisdictions including whether
they have B&O tax. Chair Quinn stressed the importance of ongoing communication with the
business community, with consistent and clear messaging around why the City is considering
this change. Staff has already conducted business outreach and is working on a
communications plan in the event of Council passage. NO RECOMMENDATION. FORWARD TO
OCTOBER 22, 2018 COMMITTEE OF THE WHOLE.
D. Resolution: Employee Compensation Policy
Staff presented the draft resolution incorporating feedback given in previous Committee
meetings, which containing policy items relating to timeliness, comparability, market ranking,
and internal equity. Committee members discussed the current proposal and requested the
following changes:
• Amend B(1): "A second criteria to be used to refine comparable jurisdictions is to only
include cities with their own police department."
• Amend sentence at end of B(4:) "Administration will provide a written justification
documenting that an adjustment is warranted for the City Council's review and approval
prior to implementation."
• Amend sentence at end of B(5): "Administration will provide a written justification
documenting that an adjustment is warranted for the City Council's review and approval
prior to implementation."
Councilmember Robertson stated that he believes 100/0 above is too high for market
competitiveness. The City should be paying the average of current comparables. Chair Quinn
and Councilmember Kruller noted that the policy revisions add more opportunities to review
anomalies as well as overall review of the policy itself. MAJORITY RECOMMENDATION.
FORWARD TO OCTOBER 22, 2018 COMMITTEE OF THE WHOLE.
E. Contract Amendment: Interim Human Resources Director
Staff is seeking an amendment to Contract 18-132 with Prothman Company for an additional
$40,000 to allow the interim Human Resources Director to remain through January. The City is
initiating a search for a new HR Director and anticipates having someone begin in January.
UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 5, 2018 REGULAR CONSENT AGENDA.
51
52
COUNCIL AGENDA SYNOPSIS
MeetinsDale
Prepared by
Mayor:i review
Council review
10/22/18
LH
L
11/13/18
LH
11/19/18
LH
ITEM INFORMATION
ITEM No.
4.E.
STAN' SPONSOR: DAVID CLINE
ORIGINAL AGI,,ND \ DA 11:: 10/22/18
AG I:\1.\ I IT,N1 T111,1, A resolution regarding employee compensation
C \ ti,(;()Ry II Discitspon
11/13/18
E ,MotIon
Altg Date
ReJolu lion
0 Onliriance
illt,g Date
E Bid .42ard
Alq Dale
Public Hearing
• Other
Mtg Date
Ails Date 11/19/18
Alig Dale
A II:g Dale
SP ON SO R :ou nal Major la HR EDCD 1Finanee Fzre E7's NP&R
E Police LIPIV Cou,t
SP oN so it' s The draft resolution adopts revisions to the compensation policy for city employees,
SUMM \ RV reflecting amendments and direction from the Finance Committee over the past several
months. The review process began in March and concluded with a Committee
recommendation on October 16. A full Council work session was held on June 19, 2018.
RI xli,w1,1) By [1] C.0A1V. Mtg, 7 CDN comm
I- Trans &Infrastrucwre E Arts Comm.
DATE: MARCH - OCTOBER 2018
oA Finance
Comm. _ Public Safety Comm.
Comm. [1] Planning Comm.
CHAIR: QUINN
E Parks
COMMITTEE
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMI111I,
Majority Approval 10/16
COST IMPACT / FUND SOURCE
ExpLNDItuRF, RIQUIRF,D AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source: GENERAL FUND
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
10/22/18
Forward to 11/13/18 C.O.W.
MTG. DATE
ATTACHMENTS
11/13/18
Updated Informational Memo dated /7 , based on Finance Committee Questions
Draft resolution
Finance Committee minutes 3/20, 5/22, 7/5, 7/18, 8/21, 9 5, 9 , 10/2, 10/16
11/19/18
53
54
City of Tukwila
Allan Ekberg, Mayor
INFOR ATIONAL E ORANDU
TO: Finance Committee
FROM: David Cline, City Administrator
Rachel Bianchi, Deputy City Administrator
Erika Eddins, Human Resources Analyst
CC: Mayor Allan Ekberg
DATE: November 7, 2018
SUBJECT: Review of Compensation Policy Resolution No. 1796
Update from October 16, Finance Committee Meeting
Note: This is a new informational memorandum with the intent to capture the compensation policy
review and discussion outcomes in preparation for discussion with the full Council.
At the July 17, Finance Committee meeting, Administration sought committee direction to finalize the
scope of the review of the City Council compensation policy. The committee requested that
Administration bring back recommendations on the following proposed policy change considerations of
above and below market adjustments, comparable cities, compression, recruitment incentives, and the
process for non -represented compensation review.
In addition, as directed by the Council, Administration has conducted the external market study using the
Association of Washington Cities and County Employee Salary and Benefit Survey for 2018. Once the
regressions analysis was applied to the raw data, the results show we are still close to market and are
considered very competitive (Exhibit A.1 and A.2). This was also the case when we did the regression
analysis for 2017.
In future years, to address the potential for above and below market wage adjustments, it is recommended
that Council adopt the Market Competitiveness standard provided by our Mr. Lawson, our compensation
consultant as it provides an objective guide to address when positions are out of alignment with the
market.
Option 1
The Market Competitiveness Standard:
+/-5% to +/-10% - Competitive with market
+/-10% to +/-15% - Possibly Misaligned with market
+/-15% and above - Significantly Misaligned with market
For positions that are possibly and significantly misaligned with the market would require review of the
data to ensure the appropriateness of market data and review of job classifications to ensure appropriate
placement.
55
INFORMATIONAL MEMO
Page 2
Below are three examples of a process Council could adopt using the Market Competitiveness Standard:
OPTION A — External Market Study
• During External Market Study (for even numbered years) — Positions that are 5% or more below
market and up to 10% above are considered competitive with the market and will receive a
market adjustment the year the market adjustment is to occur.
• Those positions 10% to 15% above the market will not receive an adjustment during the year the
market adjustment is to occur and will warrant further evaluation and possible reclassification. If
further analysis results in reclassification, any adjustments will be made in alignment with City
policy.
OPTION B — Internal Equity
• Considerations for cost of living adjustment (COLA) for odd numbered years will be based upon
internal equity with represented groups to determine if an adjustment is warranted.
Administration will inform City Council if an adjustment is warranted prior to implementation.
OPTION C — Written Justification for Misaligned Positions
The other option would be to update the current language in Resolution No. 1796 Section B.2. to state "If
the City's pay schedule for any classification that does not represent the average of comparable salary
ranges (+/-10%) written justification must be provided to the City Council."
2. Compression
As it relates to defining Compression, Council Resolution No. 1796, states, "The goal of the City is to
mitigate or avoid salary compression issues where possible. An example of salaiy compression would be
when a non -represented supervisor earns less or is projected to earn less than those that he/she supervises
due to contracted wage increase."
During the Council work session Mr. Lawson, our consultant expressed that compression cannot be
totally mitigated. Therefore, Administration recommends that Council retain the current definition
reflected in the resolution as it is referenced above. It is further recommended to review the salary
structure more frequently preferably in the year a market study is done to ensure that wage adjustments
that occur overtime do not create compression between salary bands.
3. Comparability
During even numbered years when an external market study is conducted, the Administration uses
Council Resolution No. 1796 parameters for comparability which looks at "All Puget Sound jurisdictions
with +/-50% o of Tukwila's annual assessed valuation, based upon the Department of Revenue data, will be
used to create the list of comparable jurisdictions for evaluation of salary information." The issue of
comparability has been discussed during the review of this resolution, specifically, do the parameters of
+/-50% reflect the market to which we compare, or should the Committee also consider other factors to
determine external market comparability.
Mr. Lawson, our compensation consultant shared with the Council at their work session on June 19, that
comparability factors could include employee population, assessed valuation double or half the size of
Tukwila, geography, and demographics. Whereas, Administration would not recommend considering
assessed valuation of double the size of Tukwila, consideration of going above +50% o would provide more
consistency where jurisdictions come in and out for comparison. For example, in the 2017 Market Study
56
INFORMATIONAL MEMO
Page 3
Issaquah and Shoreline were included since they were within +50% of A.V. In the 2018 Market Study,
these two cities increased to 54% and 57% of A.V. and therefore were excluded (see table below).
Assessed valuation changes annually as reported by the Department of Revenue, Taxing District Levy
Table 30.
City
2017 Assessed
Value
Assessed Value
% of Tukwila
2018 Assessed
Value
Assessed Value
% of Tukwila
Tukwila
$5.040
1.00%
$5.736
1.00%
Shoreline
$7.426
1.47%
$8.848
1.54%
Issaquah
$7.385
1.46%
$8.989
1.57%
Assessed Value represented in Billions
In addition, given that these concerns have been raised by the Non -Represented Employees group and in
previous discussions, the following are some suggested options for your consideration that will mitigate
the inconsistency the current policy parameters impose.
OPTION 1
"All Puget sound jurisdictions with -H75/-50% of Tukwila's annual assessed valuation, using the most
current data from County Assessors, will be used to create the list of comparable jurisdictions for
evaluation of salary information." As reflected in Exhibit B, the assessed valuation comparison table, this
would serve to eliminate the in and out annually of comparator jurisdictions. If consideration were given
to this option, Administration recommends a "second criteria to assessed valuation, to include employee
population of similar size". As Exhibit B also shows, by increasing to +75% of assessed valuation there
would be more similar employee populations to compare to Tukwila.
OPTION 2
Make no change and retain current policy statement of comparison to "All Puget Sound jurisdictions of
+/-50% of Tukwila's annual assessed valuation".
New Recruitment Incentives
The Finance Committee requested more information on what other cities do to recruit and retain
employees. Twenty- five (25) Puget Sound Cities were surveyed and responded to our request on the
attached Exhibit C. The data shows that some cities offer hiring bonuses specifically to law enforcement
positions, additional vacation hours, or the ability to use vacation sooner than the typical six months.
Several cities did not offer any recruitment incentives.
As has been discussed in previous committee meetings, Tukwila currently offers hiring bonuses to attract
applicants to highly competitive positions such as Building and Construction Inspector, or Law
Enforceinent positions. Mr. Lawson, our compensation consultant, shared with the Council that a market
premium may be appropriate to implement specifically when you want to attract and retain jobs that are
competitive in the labor market.
Administration recommends the Committee define in its policy a statement that reflects its philosophy of
providing above average benefits, hiring incentives and competitive pay to attract, and retain a highly
skilled, qualified and trained workforce.
57
INFORMATIONAL MEMO
Page 4
Non -Represented Compensation Review Process
The final item for discussion is should the process for non -represented compensation review change.
Currently Resolution No. 1796, provides that non -represented employee compensation be reviewed
annually to consider external market or a cost of living adjustment. Unlike represented groups, the non -
represented compensation review typically is presented in the fall prior to the year of implementation.
This is a more public process. Administration recommends adopting review of non -represented
compensation at the time the budget is being adopted so that external market and cola wage adjustments
are a more efficient and seamless transition covering a two-year period versus an annual review process.
The remainder of schedule for review of the City Council Resolution No. 1796 is as follows
September 5 — Finalize recommendations for City Council consideration
September 10- Bring recommendation to the City Council for review and discussion
September 17 — Adoption of changes to Resolution No. 1796 for implementation
We look forward to discussing these recommendations and options at the Finance Committee meeting on
August 21, 2018.
Follow Up from the August 21, Finance Committee Meeting
At the August 21, Finance Committee Meeting, Administration reviewed the following recommendations
with the Committee members:
• Reviewed results of the 2018 External Market Study for Non-ReprQsented Employees;
• Recommendations and options for consideration on above and below market adjustments;
• Recommendations regarding how to address compression;
• Recommendations and options for consideration on comparability; and
• Recommendation on new recruitment incentives and the process for review of Non -represented
compensation.
The Committee reviewed the recommendations, provided input, and asked these recommendations be
discussed further at the Sept 5 Finance Committee meeting. In addition, based upon the results from both
the 2017 and 2018 external market studies, the regression shows that we are competitive with the market.
It was requested that Administration continue the current policy of conducting the external market study.
The Finance Committee asked for Administration to supplement the tables in Exhibits A.1 and A.2 to
show the 2018 market study regression results based upon +60 of Assessed Valuation to include the two
cities that were excluded from the original study based upon the +/-50% Assessed Valuation criteria.
Those cities are Issaquah and Shoreline and the Committee can see the impact of this change now
reflected in Exhibits A.1.1 and A.2.1. This analysis shows that the City remains competitive within the
market averages.
It was also requested that the table in Exhibit B be updated to include columns showing City populations
as a percentage of Tukwila's. Exhibit B.1 includes the population information as well as a column
showing the 2018 Assessed Values by County data. The County data provides the most current assessed
58
INFORMATIONAL MEMO
Page 5
valuation figures available for cities and is included for comparison to the State Department of Revenue
which lags a year behind.
Follow Up from the September 5, Finance Committee Meeting
Following the September 5 Finance Committee meeting, staff updated the resolution to reflect the
following changes from Committee members:
• Increase timeliness of information — edits to A.2 and addition of A.3
• Update comparability definitions — edits to B.1
o Use most current data from the County Assessors
o Update the policy to +75% in order to maintain stability in the comparable cities year
after year to mitigate changes in assessed valuation
o Include a secondary criteria of FTE count as a refining factor to provide a manageable
number of comparable jurisdictions
• Include policy direction on what makes a position considered to be in market — addition of B.3
• Include policy direction on what would happen if positions are found to be above the market
during a market survey year — addition of B.3
• Provide policy language on internal equity between non -represented and represented employees
during COLA years — edits to B.4
After the September 5 meeting, staff learned that effective January 2018 the Bureau of Labor Statistics
introduced the first changes to CPI since 1998. The former Seattle -Tacoma -Bremerton index, which
included King, Pierce, Island, Kitsap and Thurston Counties, is now the Seattle -Tacoma -Bellevue index,
which includes King, Pierce and Snohomish Counties only. Staff recommends that the policy be updated
to reflect this new index and use this definition for "Puget Sound jurisdictions" referenced in section B.1.
This change would remove Bainbridge Island as a comparable jurisdiction. Edits to B.4.
Staff was asked to provide information on the market effect of these changes on non -represented
employees. Analysis shows that raising the assessed value to +75% keeps all City employees consistent
with the market. There is no significant variance between what was presented when just Issaquah and
Shoreline were added. The attached tables provide this analysis for non -represented employees.
The remainder of the schedule for review of the City Council Resolution No. 1796 is as follows
September 18 — Finalize recommendations for City Council consideration
September 24 - Bring recommendation to the City Council for review and discussion
October 1 — Adoption of changes to Resolution No. 1796 for implementation
Follow Up from the September 18, Finance Committee Meeting
Following the September 18 Finance Committee meeting, staff updated the resolution to reflect the
following changes from Committee members:
• Updated timeliness of information —edits to A.2 and deletion of A.3
• Provided a definition for comparable employee population based on city police departments —
edits to B.1
• Updated documentation and process for positions above market — edits to B.3
• Updated documentation and process for adjustments to COLA — edits to B.4
• Provided a new definition for compression — edits to B. 6
59
INFORMATIONAL MEMO
Page 6
o "An example of salary compression is when there is only a small difference in pay between
employees regardless of their skills, level, seniority or experience."
• Updated process to have an annual review of the compensation policy if warranted — edits to B. 7
A revised schedule is provided for your review
October 2 — Finalize recommendations for City Council consideration
October 8 or 22 - Forward recommendation to the City Council for review and discussion
October 15 or Nov 5 — Adoption of changes to Resolution No. 1796 for implementation
Follow Up from the October 2nd, Finance Committee Meeting
Following the October 2nd Finance Committee meeting, staff was asked to provide updated market study
data (Exhibit D) reflecting the proposed second set of criteria for defining comparable jurisdictions based
on having a city police department. The proposed language is unchanged:
• "A second criteria to be used to refine comparable jurisdictions is to include cities with their own
police departments."
The justification for this additional criteria was to better match comparable cities. For example, in
Exhibit B.1, it shows several cities that have comparable assessed values by percentages, but significantly
lower total FTE's. For example, based on Tukwila's assessed value, SeaTac is at 100% and Burien is at
103%. When compared with the number of Tukwila's FTE's, SeaTac is at 35% and Burien is at 24%,
mainly due to not having a city police department. Most other comparable cities with similar assessed
values and a police department had much closer percentages of FTE's. The effect of this criteria removes
Burien, Shoreline, Maple Valley, and SeaTac. The overall impact of removing these jurisdictions did not
significantly change the analysis. In preparing the updated data, staff noted and corrected a data error
with the regression line at the lower bands.
Staff updated the resolution to reflect the following changes from Committee members:
• Clarified the first sentence to remove the words "or more" — edits to B.3
• Added to the definition for compression to include a process to follow when it is observed and
action to be taken for council - edits to B.6
o "Adininistration will provide a written justification for the City Council's review
documenting that an adjustment is warranted prior to implementation."
A revised schedule is provided for your review:
October 16 — Finalize recommendations for City Council consideration
October 22 — Forward recommendation to the City Council for review and discussion
November 5 — Adoption of changes to Resolution No. 1796 for implementation
Follow Up from the October 16th Finance Committee Meeting
At the October 16'1' Finance Committee meeting, staff presented the additional edits to the resolution as
suggested from the October 2ndmeeting and reviewed the justification for having a city police department
as a second criteria for comparable jurisdictions. Further discussion on the proposed policy edits took
place and the committee requested the following wording changes:
• "A second criteria to be used to refine comparable jurisdictions is only to include cities with their
own police department." — edits to BI
Amend sentences at the end of B4 and B5 to read the same: "Administration will provide a
written justification documenting that an adjustment is warranted for the City Council's review
and approval prior to implementation." - edits to B4 and B5
60
INFORMATIONAL MEMO
Page 7
Staff received additional questions from Council member Robertson after the October 16'1' Finance
Committee meeting and has responded in writing to those questions, see attachment.
Majority recommendation from the Finance Committee existed to forward this topic to the October 22,
2018 Committee of the Whole Council meeting.
A revised schedule is provided for your review:
• October 22 — Forward recommendation to the City Council for review and discussion
• Update after the 10/22 COW: By Council consensus, this item was moved to the Committee of the
Whole meeting for discussion on November 13
• November 13 — City Council review and discussion of proposed changes to Resolution No. 1796
• November 19 — Adoption of changes to Resolution No. 1796 for implementation
61
62
10/22/18 STAFF RESPONSE TO COUNCILMEMBER ROBERTSON'S
QUESTIONS CONCERNING PROPOSED RESOLUTION 1796
(1) Will COLA's be included in the Even Year Market Rate Adjustment? The Resolution (A.2)
states the "previous year's Wash City & County Employee Salary & Benefit for
Comparable jurisdictions will be used in the salary market survey." It does not mention
COLA's but if previous years data is used doesn't at least a COLA for the current year
have to be included?
ANSWER: NO. For example, for 2020 the City will do a market study based upon the
AWC Salary and Benefit study that will be published in July of 2019. Staff will then
prepare the Market Study by September of 2019 to forward to the Finance Committee
and later full Council for final action. COLA is NOT included when adjustments are made
via the Market Study.
(2) If a COLA is included is it multiplied against whatever (positive only) Market Adjustment
is needed after or before the Market Adjustment is applied? It appears to me it should
be applied after the Market Adjustment is applied.
ANSWER: COLA is NOT included when adjustments are made via the Market Study.
(3) Will COLA's be given to all positions (whatever their status is to Comp's) in odd
numbered years?
ANSWER: Yes. The COLA is applied to the entire salary schedule.
(4) Exactly how are the following Market Rate Adjustments calculated? Please provide
examples.
ANSWER: All market rate adjustments include two steps. The first step is to review
comparable cities' salaries based on benchmarked positions, averaged at the top step
compared to Tukwila's top step. Step two involves applying the best -fit regression line
to smooth out the differences between the various comparables. That regression line is
what is compared to the market for the entire salary structure.
A. Market Adjustment if the Tukwila Position Rate is >= 5% below the Comp's
Market Rate?
ANSWER: In this scenario, according to the proposed policy, there would be
an adjustment to this band to bring it up closer to the market.
(over)
63
B. Market Adjustment if the Tukwila Position Rate is < 5% below the Comp's
Market Rate?
ANSWER: In this scenario, according to the proposed policy, this scenario
would be considered competitive with the market. No change would be
needed.
C. Market Adjustment if the Tukwila Position Rate is = to the Comp's Market
Rate?
ANSWER: In this scenario, according to the proposed policy, this scenario
would be considered competitive with the market. No change would be
needed.
D. Market Adjustment if the Tukwila Position Rate is <= 5% above the Comp's
Market Rate?
ANSWER: In this scenario, according to the proposed policy, this scenario
would be considered competitive with the market. No change would be
needed.
E. Market Adjustment if the Tukwila Position is > 5% above but <= 10% above the
Comp's Market Rate?
ANSWER: In this scenario, according to the proposed policy, this scenario
would be considered competitive with the market. No change would be
needed.
F. Market Adjustment if the Tukwila Position Rate is > 10% above the Market
Rate?
ANSWER: In this scenario, according to the proposed policy the position
would NOT receive an adjustment during the year a market adjustment is to
occur. Per the proposed policy, this position would warrant further evaluation
and report to Council found in section B.3.
64
16000
14000
12000
10000
3000
6000
4000
2000
0
0
City of Tukwila, WA
Market Data Regression
y = 1.1162x + 3376
R2=
•
2000 4000 6000 8000 10000 12000
Max Avg • Ma> Median ----- Linear (Mak iviedian)
sac)
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
0
2000
•
0
0
City of Tukwila, WA
Market Data Regression - Revised Analysis
4000 6000
y = 1 179x i- 3178.3
=
•
f.
8000 10000
0 Maxedian Tukwilla - Linear (Max Median)
New Exhibit 9/12/18
16000
14000
12000
10000
8000
'..''
+7��O�AV
EXH|B[TAlZ
City nfTukwila, Market Data Regression
W
8\ Y=l.1758x+3171A
6000
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4000
2000
.
..,
,& Max Median ''—.'' Linear (Max Median)
Structure Co
parison: Max Comparisons
Market
Median
Market
Median
Hrly
Current Max
Max Based on
Regression
Results
% Diff
All
N/A
N/A
$27.12
$23.77
-12%
Al2
N/A
N/A
$29.30
$25.92
-12%
A13
N/A
N/A
$31.47
$28.06
-11%
B21
N/A
N/A
$33.65
$30.21
-10%
B22
N/A
N/A
$35.83
$32.36
-10%
B23
$5,975
$34.47
$38.00
$34.50
-9%
C41
N/A
N/A
$46.26
$43.09
-7%
C42
$7,276
$41.97
$48.89
$45.24
-7%
C43
N/A
N/A
$51.06
$47.38
-7%
C51
N/A
N/A
$53,79
$50.07
-7%
C52
N/A
N/A
$57.06
$53.28
-7%
D61
$10,071
$58.10
$58.04
$55.97
-4%
D62
N/A
N/A
$59.07
$58.11
-2%
D63
$10,639
$61.38
$61.15
560.26
-1%
D71
N/A
N/A
$63.77
$62.94
- 0
D72
$11,453
$66.08
$66.88
$66.16
-1%
E81
N/A
N/A
$69.48
$68.85
-1%
E82
$12,416
$71.63
$71.58
$70.99
-1%
E83
512,932
$74.61
$73.66
$73.14
-1%
E91
$13,302
$76.74
$76.23
$75.82
-1%
E92
N/A
N/A
$79.40
$79.04
0%
F101
N/A
N/A
$82.56
$82.26
0%
F102
$14,163
$81.71
$83.65
$85.48
2%
Negative % = leading market Positive % = lagging market
Average % Difference
There are no current Non -Represented positions in Bands All, Al2, A13
-4.8%
Observations:
Current maximums for DBM ranges All - C52 currently lead the market
Beginning with 061, the ranges are aligned with market in a highly competitive manner
EXHIBIT A.2
68
EXHIBITA.2.1
Structure Comparison: Max Comparisons - Revised
Analysis w/Issaquah & Shoreline
Market
Median
Hrly
Current Max
Max Based on
Regression
Results:
Original
% Diff
All N/A
$27.12
$22.87
-16%
Al2 N/A
$29.30
$25.14
-14%
A13 N/A
$31.47
$27.40
-13%
821 N/A
$33.65
$29.68
-12%
822 N/A
$35.83
$31.94
-11%
B23 $36.61
$38.00
$34.21
-10%
C41 N/A
$46.26
$43,28
-6%
C42 $43.19
$48.89
$45.54
-7%
C43 N/A
$51.06
$47.81
-6%
C51 N/A
$53.79
$50.65
-6%
C52 N/A
$57.06
$54.05
-5%
D61 $57.89
$58.04
$56.88
-2%
D62 N/A
$59.07
$59.15
0%
D63 $60.26
$61.15
$61.41
0%
D71 N/A
$63.77
$64.25
1%
D72 $66.77
$66.88
$67.65
1%
E81 N/A
$69.48
$70.49
1%
E82 $74.26
$71.58
$72.75
2%
E83 $76.31
$73.66
$75.02
2%
E91 $77.08
$76.23
$77,85
2%
E92 N/A
$79,40
$81.25
2%
F101 N/A
$82.56
$84.66
3%
F102 $84.25
$83.65
$8 .06
5%
Average % Difference
-3.9%
There are no current Non -Represented positions in Bands All, Al2, A13
Negative % = leading market
Positive % lagging market
Observations: Pay structure better aligned with market with inclusion of Issaquah
and Shoreline
69
New Exhibit 9/12/18 EXHIBIT A.2.2
Structure Comparison: Max Comparisons +75%/-50%
Market
Median
Hrly
Current Max
Max Based on
Regression
Results
% Diff
All
N/A
$27.12
$22.82
-16%
Al2
N/A
$29.30
$25.08
-14%
A13
N/A
$31.47
$27.34
-13%
B21
N/A
$33.65
$29.60
-12%
822
N/A
$35.83
$31.86
-11%
823
$36.61
$38.00
$34,12
-10%
C41
N/A
$46.26
$43.17
-7%
C42
$42.61
$48.89
$45.43
-7%
C43
N/A
$51.06
$47.69
-7%
C51
N/A
$53.79
$50.52
-6%
C52
N/A
$57.06
$53.91
-6%
D61
$56.94
$58.04
$56.74
-2%
062
N/A
$59.07
$59.00
0%
D63
$61.38
$61.15
561 26
0%
D71
N/A
$63.77
$64.08
0%
072
$66.83
$66.88
$67.48
1%
E81
N/A
$69.48
$70.31
1%
E82
$75.43
$71.58
$72.56
1%
E83
$75.54
$73.66
$74.82
2%
E91
$75.54
$76.23
$77.65
2%
E92
N/A
$79.40
$81.04
2%
F101
N/A
$82.56
$84.44
2%
F102
584.25
$83.65
$87.83
5%
Negative % = leading market Positive %= lagging market
Average % Difference -4.09%
There are no current Non -Represented positions in Bands All, Al2, A13
Observations:
Current maximums for DBM ranges All - C52 currently lead the market
Beginning with 061, the ranges are aligned with market in a highly competitive manner
70
Puget Sound City
Comparisons within
1-75%/-50% AV
EXHIBIT B
Des Moines
Maple Valley
Lake Stevens
Mukilteo
Puyallup
SeaTac
Lakewood
Burien
Lynnwood
Tukwila
Marysville
Bainbridge Island
Edmonds
Bothell
Shoreline
Issaquah
Federal Way
Auburn
Assessed Valuation Comparisons
King
King
Snohomish
Snohomish
Pierce
King
Pierce
King
Snohomish
King
Snohomish
Kitsap
Snohomish
King/Snohomish
Snohomish
King
King
King/Pierce
)(11 b\-'t
3,194,299,789 0.55 132
3,268,616,351 0.56 46
3,324,196,683 0.57 93
4,354,213,237 0.75 124 X
5,148,032,791 0.89 269
5,405,585,665 0.94 112
5,410,414,843 0.94 209
5,608,165,807 0.97 78
5,654,422,666 0.98 350
5,736,568,228 1.00 321 X
6,425,149,097 1.12 277
6,898,602,203 1.20 122
8,177,283,180 1.42 220
8,760,887,474 1.52 328 X
8,848,561,852 1.54 176
8,989,557,112 1.56 248
9,420,224,291 1.64 323
9,555,039,113 1.66 437
71
REVISED9/12/18
x
X
X
x
X
X
x
x
Maple Valley
Lake Stevens
Des Moines
mg
Snohomish
King
x
x
x
X
x
x
x
x
x
x
X
x
X
x
x
x
x
x
x
x
x
x
Mukilteo
Puyallup
Lakewood
SeaTac
Tukwila
Lynnwood
Burien
Marysville
Bainbridge Island
Edmonds
Snohomish
Pierce
Pierce
King
King
Snohomish
King
Snohomish
Kitsap
Snohomish
x
Bothell
King/Snohomish
x
x
Issaquah
King
X
x
Shoreline
King
x
x
Federal Way
Auburn
King
King/Pierce
,268,616,3
3,324,196,683
Assessed Valuation Comparisons
57%
3,194,299,789 55%
$ 4,354,213,237 75%
$ 5,148,032,791 89%
$ 5,410,414,843 94%
$ 5,405,585,665 94%
$ 5,736,568,228 100%
$ 5,654,422,666 98%
$ 5,608,165,807 97%
$ 6,425,149,097 112%
$ 6,898,602,203 120%
$ 8,177,283,180 143%
$ 8,760,887,474 153%
$ 8,989,557,112 157%
$ 8,848,561,852 154%
$ 9,420,224,291 164%
$ 9,555,039,113 167%
46 14%
93 29 %
132 41%
124 39%
269 84%
209 65%
112 35%
321 100%
300 109%
78 24%
277 —LL86%
122 38%
220 69%
328 102%
248 77%
176 55%
323 101%
437 136%
24,900 127 %
31,740 161%
30,860 157%
21,240 108%
40,500 206%
59,280 302%
28,850 _..__... 147%
19,660 100%
36,950 188%
50,680 258%
65,900 335%
23,950 122 %
41,260 210%
44,370 226%
36,030 183%
55,060 280%
96,350 490%
Mercer Island
Renton
King
King
Kent
Redmond
Kin
King
$ 12,083,477,559 211%
$ 15,035,333,726 262%
$ 16,335,686,545 285%
$ 18,631,080,894 325%
205 64%
540 168%
691 215 %
642 200%
EXHIBIT B.1
Values Dept }1ep'
$ 3,680,189,655 60%
3,784,529,975 61%
3,823,309,451 62°%
X
x
4,745,542,557 77%
5,666,549,214 92%
6,002,783,089 97%
6,165,328,557 100%
6,184,943,263 100%
6,272,081,312 101%
X
X
X
X
X
X
x
78,960 402%
6,385,711,481 103%
7,144,089,843 116 %
7,542,154,879 122%
9,107,284,679 147%
9,900,884,044 160%
X
X
x
x
X
24,210 123%
102,700 522%
127,100 646%
62,110 316%
10,152,241,433 164%
10,228,874,349 165 %
10,301,293,691 167%
10,600,014,202 171%
X
X
13,326,314,672 215%
16,909,050,051 273 %
18,597,339,729 301%
X
X
X
X
` WA State Department of Revenue D0R) data was used for the 2018 Market Survey. The most recent DDR data available at the time of survey is 2017 figures (data lags by one year.)
FTE = Full Time Equivalent Employees
County Assessed Values from County Assessor Data current 2018 values
Sorted by 2018 County Assessed Values
20,770,064,850 336%
X
X
EXHIBIT C
Surveyed 25 Puget Sound Cities below are the responses received.
Puget Sound Cities
Recruiting Incentives Offered
Comparison on Recruiting Incentives
Auburn
Bainbridge Island
Bremerton
Burien
Edmonds
None
None
Hiring Incentives Policy for difficult to fill positions. Bonus up to $5k
At times offer a bank of vacation hours (management positions)
None
Federal Way
Issaquah
Hiring bonus offered to lateral police officers; Director level positions receive 40 hours vac upon hire; have
paid up to $5k in relocation expenses when applicable
None
Kent
Kirkland
Lake Stevens
Lakewood
Lynnwood
Maple Valley
Mt. Lake Terrace
Mukilteo
Renton
SeaTac
Can offer vacation immediately upon hire; signing bonuses for PD; may advance to next salary step after 6
months instead of one year. Have paid for travel to and from for final interviews
Hiring bonus for police officer
May provide more vacation to non -reps at hire
Management, level non -reps may receive initial leave upon hire, and an on occasion a higher vacation accrual
rate
None
Managers & Directors may negotiate for additional vacation
Can offer higher vacation accruals and/or ability to use accrued vacation before 6 months
On occasion have offered higher management positions vacation (2-3 weeks) upfront
Hiring bonus to lateral police officers; on occasion have given lump sum vacation or accelerated vacation
accrual rate.
None
74
EXHIBIT D
Exhibit D
Structure Comparison: Max Comparisons
+75%/-50% AV
Market
Median
Market
Median
Hrly
Current Max
Max Based on
Regression
Results
% Diff
All
N/A
N/A
$27.12
$24.10
-11%
Al2
N/A
N/A
$29.30
$26.32
-10%
A13
N/A
N/A
$31.47
$28.54
-9%
B21
N/A
N/A
$33.65
$30.76
-9%
B22
N/A
N/A
$35.83
$32.98
-8%
B23
$6,307
$36.38
$38.00
$35.19
-7%
C41
#N/A
N/A
$46.26
$44.08
-5%
C42
$7,201
$41.54
$48.89
$46.29
-5%
C43
#N/A
N/A
$51.06
$48.51
-5%
C51
#N/A
N/A
$53.79
$51.29
-5%
C52
#N/A
N/A
$57.06
$54.62
-4%
D61
$9,739
$56.19
$58.04
$57.39
-1%
D62
#N/A
N/A
$59.07
$59.61
1%
D63
$11,333
$65.38
$61.15
$61.83
1%
D71
#N/A
N/A
$63.77
$64.60
1%
D72
$12,114
$69.89
$66.88
67.93
2%
E81
#N/A
N/A
$69.48
$70.71
2%
E82
$13,074
$75.43
$71.58
$72.93
2%
E83
$12,932
$74.61
$73.66
$75.14
2%
E91
$12,961
$74.78
$76.23
$77.92
2%
E92
#N/A
N/A
$79.40
$81.25
2%
F101
#N/A
N/A
$82.56
$84.58
2%
F102
$14,604
$84.25
$83.65
$87.91
5%
Negative % = leading market Positive % = lagging market
2018 data with proposed criteria for comparable cities with police departments: excludes
Burien, Seatac, Shorline, Maple Valley
75
76
NOTE: Shaded text in various locations reflects changes
made after review by the Finance Committee on
October 16 2018.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUKWILA, WASHINGTON, ESTABLISHING A
COMPENSATION POLICY FOR CITY OF TUKWILA
EMPLOYEES AND REPEALING RESOLUTION NO. 1796.
WHEREAS, the City believes that the purpose of a compensation program is to
facilitate recruiting, retention, development and productivity of employees; and
WHEREAS, the City desires to utilize standardized policies, procedures and
processes, wherever possible, for compensating all employee groups, both represented
and non -represented; and
WHEREAS, the City recognizes that current economic conditions and forecasts,
long-range City budget forecasts, and position rates for comparable jurisdictions, as
well as internal equity considerations, should assist in guiding the compensation of
employees; and
WHEREAS, the City has made a determination to, when economic conditions
allow, review and adjust non -represented employee salaries via a market analysis to
that of the average of comparable jurisdictions in even -numbered years, and to provide
a cost -of -living (COLA) allowance in odd -numbered years; and
WHEREAS, the City has made a determination to, when economic conditions and
negotiations allow, provide represented employees with salaries that reflect the average
of comparable jurisdictions; and
WHEREAS, the City has made a determination to, when economic conditions
allow, provide benefits to represented and non -represented employees that are slightly
above the average of comparable jurisdictions; and
WHEREAS, the City Council will participate in setting negotiation expectations and
reviewing and approving represented employee group contracts;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
W:\Word ProcessingReso utions\Compensation policy for City employees strike-thru 10-17-10 Page 1 of 3
77
Section 1. The following statements and processes are adopted for the purpose of
guiding compensation programs for employees of the City of Tukwila.
A. Information to be provided to the City Council.
1. For Represented Employees. A written presentation of current internal
and local external public agency salary and benefit trends, including a salary and
benefits market survey of comparable jurisdictions, as defined herein, will be provided
to the City Council. This presentation must be made to the Council prior to the
commencement of negotiations with the bargaining units regarding salary and benefits.
The City Council and Administration will discuss represented employee group
negotiation expectations, negotiating points, salary and benefit change floors and/or
ceilings prior to the beginning of, and at appropriate points during, negotiation sessions.
2. For Non -Represented Employees. A written presentation of current
internal and local external public agency salary and benefit trends, including a salary
and benefits market survey of comparable jurisdictions, as defined herein, will be
provided to the City Council by Administration every year by the end of the third quarter
that a non -represented salary increase is due. Relevant Association of Washington
Cities (AWC) data from the previous year's Washington City and County Employee
Salary and Benefit Survey, for the comparable jurisdictions, will be used in the salary
market survey.
3. It is the responsibility of the City Council Finance Committee (or successor)
to ensure that the written presentations described above arc delivered on schedule.
B. Compensation Policy.
1. All Puget Sound jurisdictions with +75/-50% of Tukwila's annual assessed
valuation based upon the Department of Revenue data using the most current data
from County Assessors, will be used to create the list of comparable jurisdictions for
evaluation of salary information. A second criteria to be used to refine comparable
jurisdictions is to onlv include cities with their own police department
population. It is desirable to use the same comparable jurisdictions for both
represented and non -represented employee groups.
2. For non -represented employees, the City desires to pay the average salary
for the particular pay scale, as derived from the comparable jurisdiction data described
in Section B.1. If the City's pay scale for any classification does not represent the
average of comparable salary ranges (+/-5%), written justification must be provided to
the City Council. For represented employees, the City desires to pay salaries that are
competitive to the City's comparable jurisdictions.
3. Positions that are 5% or more below the market and up to 10% above the
market are considered competitive with the market and will receive a market adjustment
the year the studysurvey is to occur. Those positions more than 10% above the market
will not receive an adjustment during the year the market adjustment is to occur and will
warrant further evaluation and possible reclassification. Documented justification of
potential reclassification will be provided to the City Council for review and approval. If
the documented justification results in reclassification, any adjustments
will be made in alignment with City policy
W:\Word Pro ssing \Resolutions \Compensation policy for City employees strike-thru 10-17-10
78
Page 2 of 3
43. The cost -of -living adjustment (COLA) in odd -numbered years for non -
represented employees shall be based upon 90% of the Seattle -Tacoma -Bellevue
BremertonConsumer Price Index (CPI-W) Average (June to June). It is desirable to
calculate represented cost -of -living adjustments the same way, unless a different
method is authorized by the Council. Considerations for cost -of -living adjustment for
odd -numbered years will be based upon internal equity with represented groups to
determine if an adjustment is warranted. Administration will inform provide a written
justification documenting that an adjustment is warranted for the City Council's review
and approval *c warranted prior to
implementation.
54. The goal of the City is to establish parity between represented and non -
represented employees' benefits. The City desires to provide employee benefits that
are competitive to the comparable cities described herein. The City will endeavor to
keep increases to annual health care costs under market averages. If costs exceed
market averages, adjustments will be made to reduce benefit costs.
64. The goal of the City is to mitigate or avoid salary compression issues
where possible. An example of salary compression is when there is only a small
difference in pay between employees regardless of their skills, level, seniority or
experience
earn less than those that he/she supervises due to contracted age increases.
Administration will provide a written justification
documenting that an adjustment is warranted for the City Council's review and ap rove!
prior to implementation.
76. The City Council shall review the compensation policy described herein on
an annual basis to assess efficacy and make adjustments if warranted. If the
Administration determines that a deviation from the above process (in its entirety or for
individual positions) is necessary, it will provide justification to the City Council for
review and approval prior to the adoption of any process change.
Section 2. Resolution No. 1796 is hereby repealed.
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:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Rachel B. Turpin, City Attorney
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79
80
Finance Committee Minutes March 20, 2018
B. Employee Compensation Policy
The current policy for compensation and benefits for City employees is directed in Resolution
1796, and the City Council has expressed intent to review and possibly update this policy in 2018.
Staff presented a proposed timeline for the Committee's review, culminating in final Council
decision making by June. Staff also suggested that policy considerations could include above
and below market adjustments, compression, comparability, and recruitment. Committee
members discussed the proposals and requested the following components be included in the
analysis and review process:
• An updated market study, as one has not been completed since 2015
• Input and recommendations from the non -represented employee group
Background and evaluation of decision band methodology
• Analysis on gender neutrality, desk audits and appeal process, performance
reviews, and merit pay
• Understanding of compression and when it has been an issue
The Committee would like to have a full Council workshop or Committee of the Whole session
devoted to the contents and background of Resolution 1796, past studies, and information about
benefits, compression, and decision band methodology. Chair Quinn stressed the importance of
providing high quality and comprehensive background information to educate all members of
the Council and to help the Committee arrive at a recommendation. The Committee indicated
that June may not be possible to arrive at a thoroughly vetted recommendation and would be
willing to carry this work into September so it us more in alignment with the 2019-2020 budget.
RETURN TO COMMITTEE.
III. MISCELLANEOUS
Adjourned at 6:55 p.m.
Committee Chair Approval
Summary by LH
81
City of Tukwila
City Council Finance Committee
2908
FINANCE COMMITTEE
Meeting Minutes
May 22, 2018 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: De'Sean Quinn, Chair; Dennis Robertson, Kate Kruller
Staff: David Cline, Stephanie Brown, Erika Eddins, Gail Labanara, Jay Wittwer, Vicky
Carlsen, Laura Crandall, Rachel Bianchi
Guest: Mohamed Ahmed, student
CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESS AGENDA
A. Compensation Policy Proposed Timeline
Staff updated the Committee on a proposed process and timeline for the review and potential
amendment to Resolution 1796, which sets the policy for compensation and benefits for
employees. At the March 20, 2018 meeting, the Finance Committee requested that the process
include an updated market study, input from non -represented employees, background on
decision band methodology, analysis on gender neutrality, desk audits, performance reviews,
appeals, merit pay and compression, and a full Council work session to understand the
background. The Committee agreed with the proposed timeline, which includes a June Council
work session, Committee review over July and August, and potential action in September. Staff
will work with the Chair on the work session agenda. DISCUSSION ONLY.
B. Preliminary Six -Year Financial Forecast/Public Safety Plan Financing
Staff presented the first preliminary six -year financial forecast using the new financial
modeling tool Whitebirch, which was previewed for the Committee at the last meeting. The
new tool provides greater predictive accuracy, monitors for structural deficits, and models
flexible scenarios. As before with "Attachment A," the projections show a decrease in the
third biennium, which the City addresses through course corrections each year via the
budget. The preliminary results show that 2018 is balanced and meets our financial policies.
As expected, ongoing revenues are not in alignment with ongoing expenses due to
decreasing sales tax and capital project. Staff included an unidentified new revenue source
beginning in 2019 to address the flattening sales tax and elimination of sales tax mitigation.
Committee members discussed the forecast and requested the following changes:
• Update the History of Six -Year Plan Forecasts vs. Actuals graph to include 2017.
• Expand the forecast to the next level of detail (for example, open the Business Tax line
to show the sub categories and amounts)
82
Finance Committee Minutes July 5, 2018
C. Compensation Policy
Committee members continued discussing the compensation policy for City employees. The
City Council held a work session on June 19, 2018 where there was consensus for the Finance
Committee to continue discussing COLA and market adjustments, compression, positions
above and below market, and new incentives. On July 2, the City Council received a letter from
a coalition of non -represented employees asking for reconsideration of comparable cities,
salary process, recruitment and retention, and compression. Chair Quinn asked for comment
from those in the room. Staff stated that the main concern for non -represented employees is
the comparable cities. Resolution No. 1796 currently states that comparable cities will be all
Puget Sound jurisdictions with +/- 500/0 of Tukwila's annual assessed valuation. However, cities
like Burien and Shoreline that appear on that list do not provide the same services, such as
police, fire, and utilities. Tukwila's staffing reflects service levels for the daytime population of
150k+. It may be more appropriate to compare salaries to cities with the same number of
employees and/or that offer the same levels of service. Many non -rep employees would also
like a full salary study and would like retention and incentives to be re-evaluated. Committee
members requested copies of the full Association of Washington Cities Salary and Benefit
Survey for both 2017 and 2018. Councilmember Kruller asked that the desired criteria for
comparable cities be provided in writing.
Staff presented the results of the 2017 market study for the positions of City Administrator,
Public Works Director, Police Chief, Parks Director, Deputy Police Chief, Deputy Public Works
Director, Deputy Finance Director, Building Official, Human Resources Analyst, Deputy City
Clerk, and Administrative Assistant. The regression analysis results show that the City is in
alignment overall and that COLA adjustments have kept salaries on pace. Councilmember
Robertson requested a column showing how the comparable cities classify jobs, be it decision
band methodology or something else. Councilmember Quinn commented on the delay in
doing the market study and stated that in the future they should be done on schedule per the
policy regardless of what else is going on. Although none of the comparable cities have a Fire
Chief, Councilmember Robertson asked that a column be added for that position, listing cities
that have it. He also asked that staff provide a list of jobs deemed not benchmarkable.
Councilmember Kruller asked that the salaries be listed in annual, not monthly, amounts. The
Committee also asked for more information on benefits that other cities provide for
recruitment, motivation, and retention. DISCUSSION ONLY.
D. 2018 15t Quarter Sales Tax and Miscellaneous Revenue Report
Staff presented the 2018 First Quarter Sales Tax and Miscellaneous Revenue Report, including
details on retail sales tax, gambling tax, and admissions tax revenues with sales tax broken out
by industry classifications. Total sales tax collections for the 1st quarter were $33,000, or 1%,
above those for the same period last year. Construction sales tax is up 150/0 compared with the
same period last year, and sales tax from other industries decreased by $17,000. It is possible
that the 2018 budget for sales tax revenue will not be met. Committee members discussed
concerns about flattening sales tax and asked that the full Council receive the report.
Councilmember Kruller stated that she has asked several times if Administration is aware of
other cities that have built as many construction projects in the same time frame as the Public
Safety Plan Projects, and staff will follow up. DISCUSSION ONLY.
83
Finance Committee Minutes July17, 2018
allocated budget by $506K and expenditures are below budget by $169K. There is strong
development activity, bringing in permit revenue. Committee members asked clarifying
questions and made comments. Because a large percentage of the departmental savings is in
labor costs due to retirements and transfers, the Council should be prepared to consider what
savings are planned and sustainable. FORWARD TO JULY 23, 2018 COMMITTEE OF THE
WHOLE.
c. Business & Occupation Tax Next Steps
Staff is seeking Committee direction on next steps for consideration of a Business & Occupation
(B&O) Tax. The Committee previously discussed this topic with regard to the Public Safety Plan
financing and decided to set it aside to potentially be part of the biennial budget discussions.
Because sales tax revenue is flattening and sales tax mitigation payments are ending, the City
is facing revenue shortfalls with a potential budget gap of more than $2 million. Of options
previously discussed, a B&O tax would provide the greatest additional revenue. B&O tax rates
are calculated on gross receipts and a city can provide an exemption threshold. 43 cities in
Washington State have a B&O tax with varying approaches, and varying costs associated with
staffing and implementation. Staff estimates that a B&O tax could provide revenue of $3 million
or more. Counci [member Robertson asked if there could be more business sector categories
than just retail, wholesale, manufacturing and service. He would also like more information
about the logic used by neighboring cities in setting their rates. He suggested that Finance and
Police/Fire collaborate to determine service impacts from different sectors. Councilmember
Seal stated that the City needs to be clear on why it is considering a B&O tax and howthe money
would fund City services. Chair Quinn stated that the Council needs to have enough
information in order to make a sound, data -driven, policy decision. The Committee agreed that
staff should bring forward additional research and a future budget work session should include
this item. DISCUSSION ONLY.
D. Compensation Policy Update
Staff is seeking Committee direction to finalize the scope of the review of the compensation
policy as formalized in Resolution 1796. The City Council had previously requested that
compression, above and below market adjustments, comparable cities, and recruitment
incentives be discussed. Non -represented employees asked the Committee to focus on
comparable cities, the process for setting non -represented position compensation,
compression, incentives, and direct staff to do a full market survey of all non -rep positions. The
Committee requested that staff bring at least 2-3 of these topics forward at a time at future
meetings. DISCUSSION ONLY.
84
Finance Committee Minutes August 21, 2018
B. Ordinance and Resolution: Updating Commercial Parking Tax
Staff is seeking Council approval of an ordinance and resolution to amend Tukwila Municipal
Code 3.48 to gradually increase the commercial parking tax from 50/0 to 150/0 and impose a late
penalty of 10% per month. The Committee of the Whole sent the legislation back to Committee,
asking for information on the legality of exempting nonprofits based upon public comment
received. Staff presented an option that would retain the 50/0 rate for nonprofits operating on
City property, which would currently apply only to Starfire Sports. Doing so would reduce
projected revenue by approximately $10K in 2019, $21K in 2020, and $36K in 2021. To offset this
revenue loss, the tax could be increased in two steps rather than three, going to 10% in 2019
and 15% in 2020. Councilmember Robertson spoke in favor of exempting Starfire with the two-
step increase. Councilmembers Quinn and Kruller supported exemptingStarfire with the three -
step increase. Staff will draft the ordinance reflecting this majority recommendation and
present it to the Committee of the Whole. MAJORITY APPROVAL. FORWARD TO AUGUST 27,
2018 COMMITTEE OF THE WHOLE.
C. Employee Compensation Policy
Staff presented policy recommendations in the areas of above and below market adjustments,
comparable cities, compression, recruitment incentives, and compensation review process for
non -represented employees. Staff also performed a market study with the newly released 2018
salary data from AWC and the results show that the City is still close to the market and
considered competitive. Councilmember Robertson requested that the table in Exhibit A be
updated to include cities +60% assessed valuation. He requested that the table in Exhibit B
include columns showing population and percentage change. Chair Quinn said these should
be additional tables not to replace those already in the Exhibits. DISCUSSION ONLY. RETURN
TO COMMITTEE
D. 2018 2nd Quarter Financial Report
Staff presented the Committee with the City's 2018 2nd Quarter Financial Report which captures
the general state of financial affairs and highlights significant items and trends. General Fund
results are positive with an increase in fund balance of $3.2 million, and revenues of $32.7
million coming in close to budget. Sales tax collected through May reflects a 40/0 year over year
increase, and admission tax and building permit fees are both strong. Departmental under
expenditures reached almost $2 million. Councilmember Robertson asked that the revenue
table on page 75 call out retail sales tax by itself in a new line or a footnote. Chair Quinn would
like a better understanding of the 3% departmental reductions to be discussed at the upcoming
budget work session. Committee members also asked for an explanation of the decline in utility
tax. DISCUSSION ONLY.
E. 2019-2020 Biennial Budget: City Council
Staff presented the proposal for the 2019-2020 City Council departmental budget, which
includes salaries and wages, benefits, supplies, and services. As the City is transitioning to
Priority Based Budgeting, staff defined the City Council's programs as "Community
Engagement and Events," "Governmental Affairs and Appointments," and "Legislative
Oversight." Budget Oversight may be pulled out into its own category for the purpose of scoring
accurately against the City's strategic goals. The proposed Council budget includes reductions
85
City of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
September 5, 2018 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: De'Sean Quinn, Chair; Dennis Robertson, Kate Kruller
Staff: David Cline, Brandon Miles, Rachel Bianchi, Leon Richardson, Jay Wittwer, Peggy
McCarthy, Vicky Carlsen, Aaron Williams, Wynetta Bivens, Richard Takechi, Jeff
Friend, Derek Speck, Olin Johansen, Anthony Murietta, Laurel Humphrey
Guest: Andrea Reay, Seattle Southside Chamber of Commerce
CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESS AGENDA
A. Ordinance: Amending Gambling Tax
Staff is proposing an amendment to the Tukwila Municipal Code to increase the gambling
activities tax on cardrooms from 10% to 11%. There are currently four cardrooms in Tukwila,
and there is a provision in the code that the rate would become 15% when more than five are
operating. Gamblingtaxes are used primarily for public safety, and state law caps the tax at 20%.
Jurisdictions vary on regulation of card rooms. Auburn has a rate of 40/0 and Redmond has 12%.
Kent and King County are at 11%. The proposed 10/0 increase would generate approximately
$350,000 in additional revenue. Committee members briefly discussed the proposal and
decided to forward the item for full Council discussion with no recommendation. NO
RECOMMENDATION. FORWARD TO SEPTEMBER 10, 2018 COMMITTEE OF THE WHOLE.
B. Employee Compensation Policy
Staff returned with policy recommendations in the areas of above and below market
adjustments, comparable cities, compression, recruitment incentives, and compensation
review process for non -represented employees. The committee discussed these items and
requested the policy return to committee with additional information as follows:
Market Competitiveness: No recommendation. The three proposals will be discussed at a future
meeting.
Compression: Retain current language in Resolution 1796.
Comparability: Prepare resolution showing both options 1 and 2 in context. Update Table B-1
with the following:
86
Finance Committee Minutes September 5, 2018
• Rename "State DOR Assessed Value 0/0" column to "Percent of Tukwila's A/V"
• Rename "Population Value %" column to "Percent of Tukwila's Population"
• Asterisk cities that do not have Police or Fire
Information to be Provided to the City Council: Add language to the draft resolution clarifying that it
is the responsibility of the Finance Committee to ensure the information specified in A(1) and A(2)
is received by staff on the expected schedule, unless a decision is made by a majority of the Council
to deviate from that schedule.
DISCUSSION ONLY. RETURN TO COMMITTEE
C. 2018 2nd Quarter Sales Tax and Miscellaneous Revenue Report
Staff presented the 2018 Second Quarter Sales Tax and Miscellaneous Revenue Report,
including details on retail sales tax, gambling tax, and admissions tax revenues with sales tax
broken out by industry classifications. Sales tax collections increased $584 thousand or 130/0
over the same period last year. Construction related sales tax accounted for 280/0 while all other
industries accounted for 120/0 when compared to the same period in 2017. DISCUSSION ONLY.
D. Interlocal Agreement: Transfer of Surface Water Billing to King County
Staff is seeking Council approval of an interlocal agreement with King County authorizing the
County to bill Tukwila property owners for the City's surface water services beginning in 2019.
Finance staff currently bills and maintains 5,286 accounts. Transferring the billing and
receipting to King County will allow staff to devote time add capacity to other existing and
potential work items. This could also be a convenience to property owners as they could pay
both surface water and property tax with one payment. In addition, King County's low income
and age threshold are broader than Tukwila's, so more customers will qualify. King County's
one-time setup fee and annual charge (based on number of accounts) will be paid by the
Surface Water Fund. Committee members expressed support but would like to know more
detail about the increased staff capacity created since the intent is not to reduce or eliminate
positions. UNANIMOUS APPROVAL. FORWARD TO SEPTEMBER 10, 2018 COMMITTEE OF THE
WHOLE.
E. 2019-2020 Biennial Budget
Staff presented the proposals for the Finance Department, Contingency Fund (105 Fund), Urban
Renewal (302 Fund), and General Improvements (303 Fund)
Finance
The proposed Finance Department budget reflects a decrease of 2.26^ for 2019 and a 2.840/0
increase for 2020, yielding a net biennial increase of less than 10/0. Staffing levels remain at 12,
and the additional capacity resulting from the transfer of business licenses to the State and the
potential transfer of surface water billing to King County will be redirected to other work as
discussed above. Reductions occurred in extra labor and claims and judgements based upon
actual usage.
87
City of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
September 18, 2018 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: De'Sean Quinn, Chair; Dennis Robertson, Kate Kruller
Staff: David Cline, Joseph Todd, Joel Bush, Jay Wittwer, Gail Labanara, Wynetta Bivens,
Christy O'Flaherty, Vicky Carlsen, Olin Johansen, Bill Kolden, Laurel Humphrey
CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
Bill Kolden, the City's interim Human Resources Director, introduced himself to the Committee.
II. BUSINESS AGENDA
A. Resolution: Employee Compensation Policy
Staff presented a draft resolution incorporating feedback given in previous Committee meetings and
containing policy items relating to timeliness, comparability, market ranking, and internal equity.
The draft also includes a change from the former Seattle -Tacoma -Bremerton CPI index to the
Seattle -Tacoma -Bellevue index introduced by the Bureau of Labor Statistics. Analysis shows that
raising the assessed value for comparable cities to +75% keeps all employees consistent with the
market. Mr. Kolden shared his perspective that Tukwila is to be commended for having a
methodology in place, and that he recommends keeping flexibility within the salary schedule so
there is discretion for market analysis. There are a lot of variables to consider with smaller
organizations as employees often have a broad range of duties that are difficult to compare with
other jurisdictions. Councilmember Robertson expressed concern with raising the market
competitiveness standard to include up to 10% above, as he believes the number of employees at
this level will increase. Chair Quinn noted that the Committee was tasked with addressing positions
significantly above market. Mr. Kolden again encouraged flexibility so that highly skilled people are
compensated fairly. Councilmember Kruller stated that Administration has a lot more flexibility with
positions than certain other cities, and that once budgets are approved the Council does not have a
lot of awareness of what goes on with positions. She would like the Council to have more awareness,
including when positions become obsolete or change titles. Committee discussion outcomes
include the following amendments and requests:
• Section 1(A)(1): "A written presentation of current internal and local external public agency
salary and benefit trends, including a salary and benefits market survey of comparable
jurisdictions, as defined herein, will be provided to the City Council by the Administration
every year by the end of the third quarter that a non -represented salary increase is due."
• Section 1(A)(2): remove sentence
88
Finance Committee Minutes September 18, 2018
• Section 1(B)(3): "Those positions more than 100/0 above the market will not receive an
adjustment during the year the market adjustment is to occur and will warrant further
evaluation and possible reclassification. If further analysis results in reclassification,
Documented justification of potential reclassification will be provided to the City Council for
review and approval. Ifthe documented justification results in reclassification, any
adjustments will be made in alignment with City policy.
Section 1(B)(4): Add language that strengthens the role of the City Council in
reclassifications.
• Section 1(B)(1): Add language further defining how the employee population of other cities
in relation to Tukwila will be used as a second criteria.
• Section 1(B)(6): Add language further defining compression.
• Section 1(B)(7): Add language requiring annual review by the City Council.
Non -represented employees in attendance were given the opportunity to address the Committee,
and the following comments were shared:
• Appreciates the A/V adjustment to +75%, but still concerned that the new language doesn't
capture the proper comparability. Second criteria regarding number of employees should
be more clearly defined. It may be worthwhile to call out cities with over 100 employees.
• Concerned about the number of non -represented employees whose pay will be frozen with
the proposed market competitiveness language. Represented employees will not be bound
by this policy and the internal inequity will get worse.
• Consider the consequences and impacts - certain positions will be frozen for 3 years or more.
Consider the distinction between classifications and positions.
• Would like opportunity to continue to submit comments to the Committee.
Chair Quinn recognized these concerns and stated that the Council intends to continuously review
the policy and its impacts. Councilmember Kruller stated that employees need to work with
Administration when they feel classifications are not accurate. Chair Quinn said employees are
always welcome to share with the Council how those conversations go. RETURN TO COMMITTEE.
B. 2019-2020 Biennial Budget: Technology & Innovation Services Department
Staff presented the proposed 2019-2020 budget for the Technology & Innovation Services
Department, including descriptions of the programs identified as part of the Priority -Based
Budgeting project. Proposed reductions are in the area of professional services, specifically
cancelling the Dimensional contract for City Council video recording services and reducing the Tier
1 help desk service contract by 50%. The Committee requested removing reference to a new City
Hall from the information memo, as no new City Hall is planned or budgeted. Councilmember
Kruller inquired about the travel budget. Staff said that budget is used to send staff to relevant
trainings and the department prioritizes local opportunities. FORWARD TO SEPTEMBER 24, 2018
COMMITTEE OF THE WHOLE.
89
Finance Committee Minutes October 2, 2018
C. Ordinance: Amending Business License Regulations
Staff is seeking Council approval of a code -amending ordinance that would be compliant with
the new State -required model licensing ordinance that includes a minimum threshold to
require a business license. Legislation passed by the State in 2017 requires cities to partner
with a combined licensing service or no longer issue licenses after December 2022. The City has
agreed in principle to partner with Washington State's Business Licensing Service and now
must amend Tukwila Municipal Code Title 5 with the model licensing language. UNANIMOUS
APPROVAL. FORWARD TO OCTOBER 8, 2018 COMMITTEE OF THE WHOLE.
D. Employee Compensation Policy
Staff returned with a draft resolution incorporating feedback given in previous Committee
meetings and containing policy items relating to timeliness, comparability, market ranking, and
internal equity. The draft now proposes a second criteria for comparability being whether or not
a city has its own police department, as that is a fairly predictable gauge of a city's service and
employee levels. The draft also proposes a new definition of compression, "when there is only a
small difference in pay between employees regardless of their skills, level, seniority or
experience." The Committee discussed the proposed revisions, focusing on how to treat
positions significantly under market. One possibility would be for the Finance Committee to
review all positions out of alignment on a regular schedule. The Committee requested the
resolution return to committee with additional information as follows:
Comparable Cities
• Return with results of the market study using the updated proposed criteria.
Market Competitiveness
• Correct typo in B(3): "Positions that are 5% or more below the market...".
Compression
• Add "Administration will provide a written justification for the City Council's review
documenting that an adjustment is warranted prior to implementation."
Non -represented employees in attendance addressed the Committee and comments included the
following:
• Changing B(3) to fixed dollar amounts instead of percentage would create a
depreciating band as you move up the position scale.
• Anything below 3% of market rate is probably not competitive. In labor negotiations,
3% is considered a significant move.
• Employees are not familiar with the methology used in the market study. Accuracy of
the market study will be extremely important if Council is considering a wage freeze
based upon its results.
• True comparability includes more than just base wage.
90
Finance Committee Minutes October 2, 2018
• There is a morale problem when non -rep and union are in the same decision band and
have different rates of pay. Compression exists between coworkers.
• Discrepancies between employees in the same band should be further researched.
Chair Quinn stated that the Committee is always open to these comments and he also stated that
Administration should communicate the methodology used in the market study to employees.
III. MISCELLANEOUS
Adjourned at 6:48 p.m.
Committee Chair Approval
Minutes by LH
91
Finance Committee Minutes October 16, 2018
C. Ordinance: Business License Fees
Staff is seeking Council approval of a resolution that would increase the business license fee
from $70 to $112 per full time employee and from $35 to $56 per part time employee, resulting
in a revenue increase of $1.5 million. The City is facing a budget shortfall due to flattening sales
tax and the loss of streamlined sales tax mitigation payments. The Mayor's proposed budget
includes $1.8 million in departmental reductions and additional revenues in the form of
increases to gambling tax and business license fees. The proposed resolution adopts a revised
business license fee schedule, changes outside contractors to a flat fee of $100, and will remove
reference to the archaic "panoram" category. Committee members discussed the proposal for
contractors based outside of Tukwila and decided the flat rate should be evaluated after one
year. Councilmember Kruller asked for rates for neighboring jurisdictions including whether
they have B&O tax. Chair Quinn stressed the importance of ongoing communication with the
business community, with consistent and clear messaging around why the City is considering
this change. Staff has already conducted business outreach and is working on a
communications plan in the event of Council passage. NO RECOMMENDATION. FORWARD TO
OCTOBER 22, 2018 COMMITTEE OF THE WHOLE.
D. Resolution: Employee Compensation Policy
Staff presented the draft resolution incorporating feedback given in previous Committee
meetings, which containing policy items relating to timeliness, comparability, market ranking,
and internal equity. Committee members discussed the current proposal and requested the
following changes:
• Amend B(1): "A second criteria to be used to refine comparable jurisdictions is to only
include cities with their own police department."
• Amend sentence at end of B(4:) "Administration will provide a written justification
documenting that an adjustment is warranted for the City Council's review and approval
prior to implementation."
• Amend sentence at end of B(5): "Administration will provide a written justification
documenting that an adjustment is warranted for the City Council's review and approval
prior to implementation."
Councilmember Robertson stated that he believes 10°/0 above is too high for market
competitiveness. The City should be paying the average of current comparables. Chair Quinn
and Councilmember Kruller noted that the policy revisions add more opportunities to review
anomalies as well as overall review of the policy itself. MAJORITY RECOMMENDATION.
FORWARD TO OCTOBER 22, 2018 COMMITTEE OF THE WHOLE.
E. Contract Amendment: Interim Human Resources Director
Staff is seeking an amendment to Contract 18-132 with Prothman Company for an additional
$40,000 to allow the interim Human Resources Director to remain through January. The City is
initiating a search for a new HR Director and anticipates having someone begin in January.
UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 5, 2018 REGULAR CONSENT AGENDA.
92
COUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's review
Council review
11/13/18
CO
ITEM INFORMATION
ITEM No.
4.F.
ST.\1,1- SPONSOR: RACHEL BIANCHI
ORIGINt\1, AGENDA DA'ri % J18
AGENDA 11'EM TITu. Continued Review of City Budget
*PLEASE BRING YOUR BUDGET BINDERS*
CA' GORY /1 Discussion
11/13/18
[ Motion
Mtg Date
Re"olattton
❑ Ordinance
AItg Date
❑ 131d Award
Alig Date
❑ Public Hearin;
Mtg Date
❑ Other
A1tg Date
rbltg Date
Mtg Date
SPONSOR QCounci/ ►1A4yor ❑HR ❑DCD •Finance Fire ❑1S CPe�R CPolice ❑PW ❑Court
SPONSOR'S Continued review of 2019-2020 proposed budget by department.
Su11M1,\RY
RE IBY
❑ C.O.W.
Mtg.
►i1
CDN Comm EI Finance
Comm.
Comm.
CHAIR:
►/ Public Safety Comm.
►/ Trans &Infrastructure
❑ Arts Comm. C Parks
COTIYTEE
❑ Planning Comm.
DATE:
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMITME
Each departmental budget has been reviewed in the applicable Cmte.
COST IMPACT / FUND SOURCE
EYP1:: NDII"URI. RI?`UIRi D AMOUNT BUDGETED APPROPRIATION REQUIRED
$
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
11/13/1$
MTG. DATE
ATTACHMENTS
11J13%18
Please bring your budget binders
93
94
COUNCIL AGENDA SYNOPSIS
nitirtld
eeting Date
Prepared by
Mayor' r review
Council re dew
11j13j18
RB
11/19118
RB
ITEP
NFORMATION
ITEM No.
4.G.
SF SPONSOR: RACHEL BIANCHI
OItIGIN t1I. AGENDA DXIE 11 j13 j 8
AGENDA I'is i TITLE 2019 State Legislative Agenda
C.1`I EUORY ►1 Discuhion
11/13/18
❑ Motion
MLltg Date
►1 Rej'olution
❑ Ordinance
1t1tg Date
❑ 13id Award
Altg Date
❑ Public Hearing
Altg Date
E Other
Mtg Date
zlltg Date
Altg Date 11/19/18
SPONSOR $Council ►1Mayor ❑HR EDCD C.Finance ❑Fire TS ❑P&R Police EPW ❑Court
SPONSOR'S Council is being asked to adopt the city's legislative agenda for the 2019 session.
SUMNI.\RY
RFvIEWI?D BY ❑ C.O.W. Mtg,
LI Trans &Infrastructure
DATE: 10/22
►1
CDN Comm Finance
Comm.
Comm:
CHAIR: MCLEOD
►1 Public Safety Comm,
❑ Arts Comm, LI Parks
& 10/23 COMMITTEE
❑ Planning Comm.
& KRULLER
RECOMMENDATIONS:
SPONSOR/AD.MIN.
CONII`IITI
Administrative Services
EE Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EX'b.NDIT`tJRE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
1/13/18
MTG. DATE
ATTACHMENTS
11/13j18
Informational Memorandum dated 10/2/18
Resolution
Proposed 2019 Legislative Agenda
Minutes from the Transportation and InfrastructureCom. of 10/22/18
Minutes from the Community Development & Neighborhoods Com. of 10/23/18
11j19j1$
95
96
City of Tukwila
Allan Ekberg, Mayor
INFOR ATIONAL E ORANDU
TO: Community Development and Neighborhoods Committee
Transportation and Infrastructure Committee
FROM: Rachel Bianchi, Deputy City Administrator
CC: Mayor Ekberg
DATE: October 2, 2018
SUBJECT: 2019 Legislative Agenda
ISSUE
The City of Tukwila develops an annual legislative agenda for use in Olympia during the
legislative session.
BACKGROUND
The City's Legislative Agenda provides direction to staff and consensus among the elected
officials as to what policy positions are taken on behalf of the City of Tukwila during the
legislative session.
RECOMMENDATION
The Council is being asked to approve the resolution and consider this item at the November 13
Committee of the Whole meeting and subsequent November 19 Regular Meeting. The City's
lobbyist, Jennifer Ziegler, will provide a legislative update at the November 19 meeting.
ATTACHMENTS
- Resolution in draft form
- Attachment A — Legislative Agenda
97
98
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, ADOPTING A LEGISLATIVE AGENDA FOR USE
DURING THE 2019 WASHINGTON STATE LEGISLATIVE SESSION.
WHEREAS, the City Council has agreed to pursue certain legislative issues for 2019;
and
WHEREAS, the City Council recognizes this agenda is not all encompassing, in that
certain additional items may arise during the legislative session that require support or
opposition; and
WHEREAS, a legislative agenda outlines the priority issues that elected officials may
discuss when speaking to members of the Washington State Legislature; and
WHEREAS, the City Council agreed to these priorities at the City Council Meeting on
November 19, 2018;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
The Tukwila City Council has identified priorities for the 2019 Washington State
Legislative Session that provide a framework for advocacy on behalf of the community.
The City of Tukwila 2019 Legislative Agenda is hereby incorporated by reference as
Attachment A.
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:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Rachel B. Turpin, City Attorney
Attachment A: City of Tukwila 2019 Legislative Agenda
W:\Word Processing\Resolutions\Legislative Agenda for 2019 10-11-18
RB:bjs
Page 1 of 1
99
ATTACHMENT
City of Tukwila 2019 Legislative Agenda
Transportation &|nfrastrucium;
* Join the US DOT, Freight Mobility Strategic Investment Boord, the cities of Renton and Tukwila
and other partners tVfund the StnanderExtension project to|nureasefnnightmPbi|itVand
remove 55.000Yehio|e5 a day from 1-405. 167 and other nearby roadways.
w Provide funding for critical |oC8| infnsst[uctDce, including the Allentown Bridge. which is
Structurally Deficient and Functionally Obsolete.
• Create mteb|m' reliable infrastructure assistance funding for cities to assist in repairing
roads, bridges and other public infrastructure that support economic development.
Housing 8&Human Services
* Fully fund the state Housing Trust Fund to provide resources for affordable housing.
• Create new and expand existing local options tngenerate revenue for housing and human
services and for capital construction of affordable housing.
• We strongly encourage the state to adequately fund human services programs for the health
of the safety net.
Shared Revenue
* The State must continue its role as a partner with oitieo, including reinstating funding for the
Public Works Assistance Account and Community Economic Revitalization Board.
* Reestablish the Streamlined Sales Tax Mitigation Payments to cities hard-hit by the change tO
destination based sales tax, which provides Tukwila oVer$1,2 million annually to replace |Uot
revenue, which was ended inthe 2O1Osession.
• In addition. the State must retain the local share ofliquor taxes to allow jurisdictions to
address innpactS, such as public safety, of privatized liquor in our cities.
Revenue Reform
° Allow cities the authority and flexibility to address the 'fact that growth inthe cost ofservices
continue to outstrip revenues.
° The state should amend the law that limits annual property tax growth to 1 percent and work
with cities to authorize additional funding flexibility and opportunities @t the local level.
Education
* Implement needs based funding for allocation of social emotional student support resources
and expand funding for learning opportunities for summer school students.
r Increase funding for homeless students and secondary ELL students.
• Incorporate early learning for low income students as a part of Basic Education.
Law Enforcement
* Increase funding for |avv enforcement training to ensure that all police offipona have access to
key resources that save lives.
w Change the day rate for Department DfCorrections inmates to ensure equitable
reimbursements for local facilities such as SCORE.
Preserve Lodging Tax Flexibility
* Ensure the definition of "tourist" in Washington State remains flexible to allow jurisdictions and
Lodging Tax Advisory Committees to distribute lodging tax dollars in a manner that best serves
100
Transportation & Infrastructure Committee Minutes October 22, 2018
C. Contract: 2019 Overlay & Repair Program
Staff is seeking Council approval of a contract with KPG, Inc. in the amount of $156,172.00
for design of the 2019 Overlay and Repair Program. Committee members and staff
discussed that design contracts differ from construction contracts in that they do not have
to be bid. Cities can choose the best qualified designer for a project and KPG was selected
due to their qualifications and experience with Tukwila. UNANIMOUS APPROVAL.
FORWARD TO NOVEMBER 5, 2018 REGULAR CONSENT AGENDA.
D. Resolution: 2019 Legislative Agenda
Staff is seeking Council approval of a resolution that would adopt a legislative agenda for
use in Olympia during the next session. The Legislative Agenda provides direction to staff
on policy positions. Tukwila's state lobbyist, Jennifer Ziegler, has notified the City she is
going to discontinue service and staff will return with a proposal for a replacement. The
draft Agenda includes relevant additions and deletions including reference to the
Allentown Bridge, reestablishing the Streamlined Sales Tax Mitigation payments, and
changing the day fate for inmates to ensure equitable reimbursements to facilities like
SCORE. Councilmember Quinn suggested adding language referencing the efforts of the
Streamlined Sales Tax mitigation tax force. Staff will prepare an amendment for the
Committee of the Whole. UNANIMOUS APPROVAL. FORWARD TO NOVEBMER 13, 2018
COMMITTEE OF THE WHOLE.
E. Interlocal Agreement: SeaTac International Airport Impact Study
Staff is seeking Council approval of an interlocal agreement with SeaTac, Normandy Park,
Burien, Federal Way, and Des Moines that outlines the local matching funds for the Sea-Tac
Airport Impact Study as required in the State's budget proviso. The City Council previously
approved Tukwila's share of $14,445.61. Since the last briefing, the Department of
Commerce has changed the format of the regular meetings of the six cities to include one
community representative from each and for the meetings to be open to the public.
Tukwila's representative will be former Mayor Jim Haggerton. UNANIMOUS APPROVAL.
FORWARD TO NOVEMBER 5, 2018 REGULAR CONSENT AGENDA.
II. SCATBd/RTC
III. MISCELLANEOUS
Councilmembers and staff discussed the project summary included in the packet as well as the
October 21, 2018 water main break on Andover Park East.
The Transportation Committee Meeting adjourned at 6:44 p.m.
Committee Chair Approval
Minutes by LH
101
Community Development&Neighborhoods Minutes 0ctobe 23,20l8
D. Resolution: Community Deveiopment&Public Works Fees
Staff is seeking Council approval of a resolution that would update the consolidated permit fee
schedule for Public Works and for Land Use The proposal maintains the 246 credit card fee
increases fiat land use fees at3.2%, and passes Hearing Examiner fees on to the applicant.
UNANIMOUS APPROVAL. FORWARD TO0OYYEMBERG,301@REGULAR CONSENT AGENDA.
E. Resolution: 2019 Legislative Agenda
Staff |sseeking Council approval nfaresolution that would adopt alegislative agendaforuseiO
Olympia during the next session. The Legislative Agenda provides direction tostaff 0npolicy
positions. TUkvviia's state lobbyist, Jennifer Ziegler, has notified the City she is going to
discontinue service and staff will return with a proposal for a replacement. The draft Agenda
includes relevant additions and deletions including reference to the Allentown Bridge'
reestablishing the Streamlined Sales Tax Mitigation payments, and changing the day fate for
inmates to ensure equitable reimbursements tofacilities like SCORE. The proposal was also in
the Transportation & Infrastructure Committee, which requested additional language
referencing the efforts of the Streamlined Sales Tax mitigation tax force. This proposed
amendment will be reflected in the resolution presented to the Committee of the Whole. Chair
KrUliernoted that the Sound Cities Association is also fiAaiiziOgits 2Ol9legislative agenda and
she is supporting language that would preserve cities' rights relating to future transportation
investment technologies. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13, 2018
COMMITTEE OF THE WHOLE.
Adjourned 6:20p�.
Committee Chair Approval
102
Upcoming Meetings & Events
November 2018
12th (Monday)
13th (Tuesday)
14th (Wednesday)
15th (Thursday)
16th (Friday)
17th (Saturday)
Veterans Day
Observed
City offices
& Contrttunity
Center closed
::«17-_,,,,
'
> Civil Service
Commission,
5:00 PM
(Human
Resources
Conference
Room)
D Transportation &
Infrastructure
Cinte.,
5:30 PM
(Hazelnut
Conference
Room)
D Tukwila
International
Boulevard
Action Cmte,
7:00 PM
(Valley View
Sewer Dist.,
3460 S 148th)
D City Council
Committee of
the Whole Mtg.,
700 PM
(Council
(hambers)
D Arts
Commission,1toeea4
5:00 PM
(Community
('enter)
D Community
Development &
Neighborhoods
Cmte.,
5:30 PM
(Hazelnut
Conference
Room)
D Park
Commission,
5:30 PM
(Community
Center)
D Tukwila
Society,
Open House on the
Public Safety Plan
1000 am — 12:00
Noon
(Valley View Sewer
Dist„ 3460 S. 148'
St)
See building designs,
get a status update,
and ask questions.
Green Tukwila
Partnership Work
Party at Duwamish
Hill Preserve
10:00 AM — 1.00 PM
(3800 S I 15th St.)
www.forterra.org/
events
SnackPack Stuff
the Bus Food Drive
10:00 AM — 2:00 Pm
(SAAR'S SUPER SAVER
FOODS, 3725 S. 1447ff
Si.)
Cancelled
D Action
Tukwila
Meeting
700 — 8:30 PM
(Valley View
Sewer Dist.,
3460 S. 148th
St)
19th (Monday)
20th (Tuesday)
21st (Wednesday)
22nd (Thursday)
23rd (Friday)
24th (Saturday)
D Public Safety
Cmte,
530 PM
(Hazelnut
Conference Room)
D City Council
Regular Mtg.,
700 PM
(Council
Chambers)
D Finance Cmte,
5:30 PM
(Hazelnut
Conference
Room)
Thanksgiving
Day
City offices and
Tukwila
Community
Center closed.
tSktsota,
N k.
' l'f
tlt,,r
City offices
and Tukwila
.
Community
Center
closed.
Tukwila Int'L Blvd.
Action Cmte's
Trash Pickup Day
9:00 — 10:00 AM
For location or
information contact
Sharon Mann
206-200-3616
D Arts Commission: 3rd Wed, 5:00 PM, Tukwila Community Center. Contact Tracy Gallaway at 206-767-2305.
.> Civil Service Commission: 2nd Mon., 5:00 PM, Human Resources Conf. Room. Contact Michelle Godyn at 206-431-2187.
>Community Development and Neighborhoods Committee: 2nd & 4th Tues., 5:30 PM, Hazelnut Conf. Room. Contact Laurel
Humphrey at 206-433-8993. (A) Discussion of letter opposing the proposed federal -public charge rule. (B) An ordinance renewing a
moratorium within the Tukwila International Boulevard study area.
> COPCAB (Community Oriented Policing Citizens Adv. Board): 2nd Thurs., 6.30 PM, Duwamish Conference Room.
Contact Chris Parttnan at 206-431-2197
Equity & Social Justice Commission: 1st Thurs., 5: I 5 PM, Hazelnut Conf Room. Contact Mta Navarro at 206-454-7564.
>Finance Committee: 1st & 3rd Tues., 5:30 Pm, Hazelnut Conf Room. Contact Laurel Humphrey at 206-433-8993.
Library Advisory Board: 1st Tues., 530 PM, Community Center Contact Stephanie Gardner at 206-767-2342,
> Park Commission: 2nd Wed., 5 30 PM, Community Center. Contact Robert Eaton at 206-767-2332.
> Planning Commission/Board of Architectural Review: 4'h Thurs., 6:30 PM, Council Chambers at City Hall. Contact Wynetta Bivens
at 206-431-3670.
3-Public Safety Committee: Ist & 3rd Mon., 530 PM, Hazelnut Conf. Room Contact Laurel Humphrey at 206-433-8993
>Transportation and Infrastructure Committee: 2nd & 4th Mon., 5:30 PM, Hazelnut Conf Room. Contact Laurel Humphrey at
206-433-8993. (A) S 140th Street/TIB Crosswalk update. (B) 20/7 Overlay and Repair Program Project Completion and Acceptance.
(C) Baker Blvd. Non -Motorized Improvements Project - Project Completion and Acceptance. (D) Sirander Blvd, Extension Phase 3
Project Update and Value Engineering Consultant Approval. (E) Neighborhood Traffic Calming Program Resolution for Adoption.
> Tukwila Historical Society: 3rd Thurs., 700 PM, Tukwila Heritage & Cultural Center, 14475 59'h Avenue S.
Contact Louise Jones -Brown at 206-244-4478.
Tukwila Intl. Blvd. Action Cmte: 2nd Tues., 700 PM, Valley View Sewer District. Contact Chief Linton at 206-433-1815.
103
November
Tentative
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See agenda packet
coversheetf0r
this week's agenda:
November 13,ZO18
Committee ofthe
Whole Meeting.
4� �
�-,
Unfinished Business:
'Aresolution adopting
the2O19 Legislative
Agenda.
-Tax Levy Legislation.
-A resolution adopting
updated policies
related tothe Financial
Planning Model and
other general financial
policies.
-A resolution
establishing a
compensation policy
for City employees and
repealing Resolution
No.1796.
'Aresolution repealing
Resolution No. 1g13
adopting arevised
Business License fee
104