HomeMy WebLinkAboutFIN 2019-11-12 COMPLETE AGENDA PACKETCity of Tukwila
Finance Committee
O Thomas McLeod, Chair
O Verna Seal
O De'Sean Quinn
AGENDA
Distribution:
T. McLeod
Mayor Ekberg
V. Seal
D. Cline
D. Quinn
R. Bianchi
K. Hougardy
C. O'Flaherty
D. Robertson
A. Youn
K. Kruller
L. Humphrey
Z. Idan
TUESDAY, NOVEMBER 12, 2019 — 5:30 PM
HAZELNUT CONFERENCE ROOM
(At east entrance of City Hall)
Item
Recommended Action
Page
1. PRESENTATION(S)
2. BUSINESS AGENDA
a. A resolution adopting a 2020 State Legislative Agenda.
a. Forward to 11/25 C.O.W.
Pg.1
Rachel B/anchf Deputy CltyAdministrator.
and 12/2 Regular Mtg.
b. 2019 3rd Quarter General Fund update.
b. Discussion only.
Pg.5
Jeff Friend, Fiscal Manager
c. An ordinance amending the 2019-2020 biennial budget.
c. Forward to 11/25 C.O.W.
Pg.11
Vicky Carlsen, Finance Director
and 12/2 Regular Mtg.
d. Marijuana retail zoning considerations.
d. Discussion only.
Pg.29
Laurel Humphrey, Council Analyst
3. MISCELLANEOUS
4. ANNOUNCEMENTS
Next Scheduled Meeting: Monday, November25, 2019
JG The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206-433-1800(TukwilaCityClerk(aTukwilaWA.gov) for assistance.
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Public Safety Committee
Finance Committee
FROM: Rachel Bianchi, Deputy City Administrator
CC: Mayor Ekberg
DATE: October 1, 2019
SUBJECT: 2020 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 Public Safety and Finance Committees are being asked to provide comment and feedback,
which will be incorporated into the agenda for discussion at the November 25, 2019 Committee
of the Whole meeting. The full Council is being asked to formally adopt the agenda at the
December 2 Regular Meeting. The City's lobbyist, David Foster, will provide a legislative
update at the December 2 meeting.
At the November 4, 2019 meetina of the Public Safetv Committee, the members asked that the
followina items be included in the leaislative aaenda: these edits are reflected in the attached
draft:
• Advancing racial equity
• Workforce development
• Combatting climate change
ATTACHMENTS
Resolution in draft form
Attachment A — Legislative Agenda
2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, ADOPTING A LEGISLATIVE AGENDA FOR USE
DURING THE 2020 WASHINGTON STATE LEGISLATIVE SESSION.
WHEREAS, the City Council has agreed to pursue certain legislative issues for 2020;
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
December 2, 2019;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
The Tukwila City Council has identified priorities for the 2020 Washington State
Legislative Session that provide a framework for advocacy on behalf of the community.
The City of Tukwila 2020 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 12019.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Attachment A: City of Tukwila 2020 Legislative Agenda
Kathy Hougardy, Council President
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
W:\Word Processing\Resolutions\Legislative Agenda for 2019 10-24-19
RB:bjs
Page 1 of 1 3
ATTACHMENT A
City of Tukwila 2020 Legislative Agenda
Transportation & Infrastructure
• Provide funding for critical local infrastructure, including the Allentown Bridge, which is
Structurally Deficient and Functionally Obsolete.
• Create stable, reliable infrastructure assistance funding for cities to assist in repairing
roads, bridges and other public infrastructure that support economic development.
Housing & Human Services
• Create new and expand existing local options to generate 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 cities, including reinstating funding for the
Public Works Assistance Account and Community Economic Revitalization Board.
• Ensure funding for Streamlined Sales Tax Mitigation payments brought back in the 2019
session remain funded and identify a longer -term funding strategy beyond the 2020/2021
biennium.
• In addition, the state must retain the local share of liquor taxes to allow jurisdictions to
address impacts, such as public safety, of privatized liquor in our cities.
Revenue Reform
Allow cities the authority and flexibility to address the fact that growth in the cost of services
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 at 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.
• Increase funding for homeless students and secondary ELL students.
• Incorporate early learning for low income students as a part of Basic Education.
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
each individual community.
Preparing for Our Future
• Enact policies to prepare to combat climate change, including adequately budgeting for its
effects and providing tools to cities to prepare and address the ramifications of flooding,
pollution and other key factors.
• Continue to invest in workforce education and iob training to ensure Washingtonians have
access to high -quality career and technical education opportunities.
Advancing Equity
• Develop and implement a racial equity toolkit for legislation, policies and programs to advance
racial equity in Washington.
11
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
CC: Mayor Ekberg
FROM: Vicky Carlsen, Finance Director
BY: Jeff Friend, Fiscal Manager
DATE: November 5, 2019
SUBJECT: 2019 3rd Quarter General Fund Update
The purpose of the 2019 3rd Quarter General Fund Update is to provide financial results and highlight
significant items or trends for the General Fund. The update is based on financial data available as of
November 3, 2019 for the reporting period ending September 30, 2019. As September 2019 sales tax data
is unknown as of the current date, a conservative estimate has been made.
Allocated budgets are calculated based on the patterns of revenue received and expenditures made in the
previous year with the current year budget allocated using the same patterns. Additional details can be
found in the attached financial reports.
General Fund
The General Fund is the City's largest fund and accounts for most City resources and services including
governance, public safety, and administration.
Revenues
Based on data available November 5t", 2019 (with sales tax for September estimated), Total Revenue
through September is $46.1 million; $175.7 thousand more than the allocated budget of $46.0 million.
5
INFORMATIONAL MEMO
Page 2
GENERAL FUND REVENUE
CITY OF TUKW ILA
YTD AS OF SEPTEMBER 30.2019
BUDGET
ACTUAL
%CHANGE
SUMMARY BY REVENUE TYPE
2019
2019
2019 ANNUAL
ANNUAL
ALLOCATED
2017
2018
2019
BDGT
%REC'D 2017/2018
2018/2019
PROPERTYTAX
15,923,442
8,923,566
8,136,439
8,545,729
9,012,233
88,667
57%
5%
5%
SALES TAX*
20,444,000
15,017,906
13,591,220
15,053,433
14,652,796
(365,111)
72%
11%
(3)%
ADMISSIONS TAX
850,000
615,770
565,003
776,570
733,392
117,622
86%
37%
(6)%
UTILITYTAX
4,338,200
3,324,225
3,218,288
3,051,981
2,844,000
(480,226)
66%
(5)%
(7)%
INTERFUND UTILITYTAX
2,373,000
1,985,471
1,877,158
1,947,248
1,980,909
(4,562)
83%
4%
2%
GAMBLING & EXCISE TAX
4,426,000
3,256,944
2,973,421
2,872,936
3,005,411
(251,532)
68%
(3)%
5%
TOTAL GENERAL REVENUE
48,354,642
33,123,883
30,361,529
32,247,897
32,228,741
(895,142)
67%
6%
(0)%
BUSINESS LICENSES
3,547,400
2,528,749
2,426,417
2,720,742
3,106,257
577,508
88%
12%
14%
RENTAL HOUSING
45,000
34,089
41,220
49,160
36,175
2,086
80%
19%
(26)%
BUILDING PERMITS
2,122,494
1,464,131
1,179,158
1,366,522
1,645,927
181,796
78%
16%
20%
TOTAL LICENSES AND PERMITS
5,714,894
4,026,969
3,646,795
4,136,424
4,788,359
761,390
84 %
13 %
16 %
SALES TAX MITIGATION
840,000
639,634
820,163
781,130
655,127
15,493
78%
(5)%
(16)%
FRANCHISE FEE
2,399,500
1,863,942
1,621,568
1,771,146
1,851,253
(12,689)
77%
9%
5%
GRANTREVENUE
907,940
511,178
566,843
357,306
523,611
12,433
58%
(37)%
47%
STATE ENTITLEMENTS
405,250
307,764
301,153
329,178
365,432
57,668
90%
9%
11%
INTERGOVERNMENTAL
576,754
473,274
479,583
533,099
550,586
77,312
95%
11%
3%
TOTAL INTERGOVERNMENTAL REVENUE
5,129,444
3,795,792
3,789,310
3,771,859
3,946,009
150,217
77%
(0)%
5%
GENERAL GOVERNMENT
57,532
44,796
38,984
22,878
43,646
(1,150)
76%
(41)%
91%
SECURITY
660,500
583,155
433,574
254,147
540,960
(42,195)
82%
(41)%
113%
TRANSPORTATION
79,000
221,471
21,527
840
221,241
(229)
280%
(96)%
26229%
PLAN CHECK AND REVIEW FEES
1,148,675
862,561
603,989
917,711
1,150,752
288,191
100%
52%
25%
CULTURE AND RECFEES
601,000
474,876
421,944
417,873
388,267
(86,609)
65%
(1)%
(7)%
TOTAL CHARGES FOR SERVICES
2,546,707
2,186,859
1,520,018
1,613,450
2,344,867
158,008
92 %
6 %
45 %
FINES & PENALTIES
329,218
242,057
221,116
208,221
153,810
(88,247)
47%
(6)%
(26)%
MISC
1,160,542
675,706
794,606
1,735,525
765,208
89,502
66%
118%
(56)%
INDIRECT COST ALLOCATION
2,545,645
1,909,234
1,709,294
1,744,232
1,909,233
(1)
75%
2%
9%
TOTAL OTHER INCOME
4,035,405
2,826,996
2,725,015
3,687,979
2,828,251
1,255
70%
35%
(23)%
TOTAL OPERATING REVENUE
65,781,092
45,960,499
42,042,667
45,457,607
46,136,226
175,727
70 %
8 %
1 %
TRANSFERSIN
200,000
-
-
-
-
-
0%
0%
0%
TOTAL REVENUE
65,981,092
45,960,499
42,042,667
45,457,607
46,136,226
175,727
70 %
0
0
Estimated
Percent of year 75%
9
INFORMATIONAL MEMO
Page 3
Expenditures
Unbudgeted, Unplanned Events
Code Violations
During the first quarter, it was discovered that a local business's production plant violated numerous building
codes. As a result, the City expects to receive a total of $79.7K for associated costs related to inspections,
reviews, and consulting.
Andover Park East Propane Leak
In June, faulty piping in a large propane tank on Andover Park East was discovered which required the safe
burn off of vapors remaining after the removal of the liquid gas. On August 16, the party responsible for the
propane system was billed $21,707 to reimburse the city for costs associated with the event.
Department Labor Benefits Materials
Total
Police
$ 1,532
$ 262
$ 1,666
$ 3,461
Fire
8,409
2,397
707
11,512
Street Maintenance
4,161
2,037
-
6,198
Water
436
100
536
Total
$ 14,538
$ 4,796
$ 2,373
$ 21,707
Snow Events
During the month of February, the City experienced two winter snowstorms. Unbudgeted costs related to
the snow events are as follows:
Department
Overtime and
Benefits
Materials
Combined
Police
$ 143
$ 143
Fire
30,313
285
30,598
Public Works
286
286
Park Maintenance
452
452
Street Maintenance
19,463
79,637
99,100
Total
I $ 49,7761
$ 80,803
$ 130,579
East Marginal Way Power Pole Accident
On April 5t", there was a large accident where numerous power poles fell over on East Marginal Way.
Current estimates for this incident are as follows:
Department
Overtime and
Benefits
Repairs and
Maintenance
Combined
Street Maintenance and Operations
$ 30,281
$ 280,416
$ 310,697
A claim totaling $310.7K has been initiated with the Washington Cities Insurance Authority (WCIA) for
reimbursement of the current estimated expenditures. A check was received in June for $178.9K (75%)
with the balance to be received later.
VA
INFORMATIONAL MEMO
Page 4
Year -to -Date Departmental Expenditures
GENERAL FUND
CITY OF TUKW ILA
GENERAL FUND EXPENDITURES
YTD AS OF SEPTEMBER 30, 2019
BUDGET
ACTUAL
COMPARISON OF RESULTS
ACTUAL
SUMMARY OF EXPENDITURES BY
DEPARTMENT
OVEPJ(UNDER)
% CHANGE
2019
ALLOCATED
2019 ANNUAL
ALLOCATED
2017
2018
2019
BDGT
B(PENDED 201712018 2018/2019
01 City Council
432,111
308,814
249,547
271,040
272,796
(36,018)
63%
9%
1 %
03 Mayor
2,595,514
1,794,969
1,701,538
1,913,455
1,783,577
(11,392)
69%
12%
(7)%
04 Administrative Services
2,111,509
1,588,172
1,386,088
1,454,382
1,408,765
(179,408)
67%
5%
(3)%
05 Finance
2,671,195
2,104,103
1,856,953
2,450,011
1,844,087
(260,016)
69%
32%
(25)%
06 Attorney
710,730
514,822
379,561
665,546
475,831
(38,991)
67 %
75%
(29) %
07 Recreation
3,294,138
2,472,884
2,347,060
2,336,622
2,472,207
(676)
75%
(0)%
6%
08 Community Development
3,511,558
2,590,677
2,415,559
2,496,334
2,641,432
50,755
75%
3%
6%
09 Municipal Court
1,298,228
969,389
905,443
964,604
958,382
(11,007)
74%
7%
(1)%
10 Police
19,427,613
14,444,807
13,089,242
13,255,256
14,003,004
(441,803)
72 %
1 %
6%
11 Fire
12,473,387
9,125,383
8,790,067
9,261,114
9,514,633
389,250
76%
5%
3%
12 Technology& Innovation Svcs
2,043,934
1,498,821
1,256,059
1,519,133
1,440,304
(58,517)
70%
21%
(5)%
13 Public Works
3,948,613
2,933,664
2,646,766
2,639,959
2,791,322
(142,342)
71%
(0)%
6%
15 Park Maintenance
1,630,586
1,275,735
1,075,979
1,134,680
1,273,950
(1,784)
78%
5%
12%
16 Street Maintenance & Operations
3,354,733
2,738,615
2,421,350
2,505,786
3,167,826
429,211
94 %
3%
26 %
59,503,849
44,360,855
40,521,212
42,867,921
44,048,117
(312,738)
74%
6%
3%
Subtotal
Transfers Out to,
Residential Street
1,300,000
1,300,000
-
-
1,300,000
100%
-
-
Arterial Street
450,000
-
-
-
ContingencyFund
58,568
-
-
-
-
-
Debt Service
4,033,861
2,746,490
2,014,503
3,486,589
2,746,490
68%
73%
(21)%
Land Acq., Rec and Park Dev
19,600
19,600
122,190
-
19,600
100 %
-
-
General Government Improvements
200,000
150,000
150,000
150,000
150,000
75%
0 %
0 %
Golf Course
300,000
225,000
225,000
225,000
225,000
75%
0 %
0 %
1 6,362,029
4,441,090
1 2,511,693
3,861,589
4,441,090
70%
54%
15%
Total Dept20 Transfers Out
Total Expenditures
1 65,865,878
48,801,945
1 43,032,905
46,729,510
48,489,206
1 (312,738)
74%
9%
4%
Percent of year completed 75%
Major variances were:
Community Development is $50.8K over allocated budget through September. Professional
Services expenditures ($171.4K over allocated budget) have been greater than anticipated in
the budget. The budget had assumed development activity would slow in 2019; however, this
has not been the case. Therefore, services directly related to development activity, such as
peer review, that are typically outsourced, are now over budget. It should be noted that a large
portion of Professional Services are revenue -backed. Repairs and Maintenance expenditures
have not been significantly incurred ($39.5K under allocated budget) while Miscellaneous
Expenditures ($32.9K under allocated budget) have also not been incurred at the level
anticipated.
Fire is $389.3K over budget. Salaries and benefits were $499.5K over budget resulting from
three retirement payouts in June ($53K), unbudgeted pipeline positions ($214.6K) as well as
overtime costs and related benefits that were over budget through September ($231.9K).
Services and supplies were under budget by about $110.7K partially offsetting the amount the
department was over budget on salaries and benefits. As of the May 28th Finance Committee
meeting, the Finance Committee began an ongoing analysis of options to address the Fire
operating budget issues. The topic was forwarded to the City Council of the Whole meeting on
September 9th
INFORMATIONAL MEMO
Page 5
Street Maintenance and Operations was $429K over budget through September primarily due
to overtime and supplies costs related to the snow events and the East Marginal Way power
pole event. Purchases of supplies to replenish street maintenance inventory also contributed
to the variance. This includes salt brine and sand ($37.2K), aluminum poles and luminaries
($25.4K), Malfunction Monitoring Units ($16K), pedestrian push buttons ($11.7K) and other
miscellaneous items ($21.5K).
Department
Overtime and
Benefits
Materials
Total
Snow
$ 19,463
$ 79,637
$ 99,100
Power Poles*
13,297
230,657
243,954
Total
$ 32,760
$ 310,294
$ 343,054
*Costs to be reimbursed by WCIA
9
10
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Vicky Carlsen, Finance Director
BY: Jeff Friend, Fiscal Manager
CC: Mayor Ekberg
DATE: November 6, 2019
SUBJECT: 2019 — 2020 budget amendment ordinance
ISSUE
Approve the administrative 2019-2020 mid -biennium budget amendments.
BACKGROUND
While amending the budget is only required when a fund, in total, is in danger of exceeding
budget, it is a best practice to adjust the budget to keep departments in the general fund from
exceeding budget as authorized through the biennial budget process. The reserve fund balance
policy is met, and exceeded, in both 2019 and 2020, after all amendments have been approved.
Many of the proposed budget amendments have been reviewed and approved by Council
Committee and/or Council process as noted below in the discussion. The proposed budget
amendments make the following types of modification to the current biennium:
• Housekeeping amendments such as adjusting budgeted beginning fund balance to actual
beginning fund balance,
• Adjustments specific to the Public Safety Plan,
• Reflect additional revenue -backed projects/expenditures,
• Providing budget for the unanticipated events that are not revenue -backed (snow event),
and
• Adjust 2019 budget for the Fire Department to true up budget to reflect current level of
service.
All budget amendments are detailed below with explanations provided for each amendment as
well as the effect on ending fund balance. Budget amendments are summarized by fund in the
tables attached to this memo.
DISCUSSION
General Fund
Adjust Beginning Fund Balance
A beginning fund balance adjustment of $1,470,276 to bring the budgeted beginning fund balance
in line with the actual beginning fund balance. Fiscal year 2018 ended the year with a fund balance
of $14.1 million, which exceeds the fund balance policy by $2.5 million.
11
INFORMATIONAL MEMO
Page 2
Amendments by Department
Dept.
Footnote
Description of Proposed Amendment
2019
2020
Revenue
E-penditure
Revenue
Expenditure
Council
8
Healthcare increase from 5% to 8% per new actuary report
1,747
Council Total
$
$
$
$ 1,747
Mayor Economic Demlo ment
1
Economic development grant Port of Seattle
19,800
19,800
Mayor Arts Commission
Artist Workshop for Teens grant
2,000
2,000
Mayor
8
Healthcare increase from 5% to 8% per new actuary report
8,216
Mayor Total
$ 21,800
$ 21,800
$
$ 8,216
Administrative Services
8
Healthcare increase from 5% to 8% per new actuary report
2,004
Administrative Services Total
$
$
$
$ 2,004
Finance
8
Healthcare increase from 5% to 8% per new actuary report
6,076
Finance Total
$
$
$
$ 6,076
Recreation
Green Tukwila grant
46,000
46,000
Recreation
10-Minute Walk grant
36,400
36,400
Recreation
Play and Learn grant
15,225
15,225
Recreation
Thunderbirds Youth Sports/KingSports/King County Youth Sports grant
7,000
7,000
Recreation
UW King County Sack Lunch/Waste Mgmt. -Youth Summer
Camp grant
3,425
3,425
Recreation
Carry over - King County Youth Sports grant. Funds received in
2018, ex enditures in 2019
4,000
Recreation
King County contract for senior needs assessment grant
90,000
90,000
Recreation
8
Healthcare increase from 5% to 8% per new actuary report
9,024
Recreation Total
$ 108,050
$ 112,050
$ 90,000
$ 99,024
Community Development
Increased development activity
202,030
202,030
Community Development
TDM grant
58,551
58,551
Community Development
Additional abatement projects
10,000
10,000
Community Development
8
Healthcare increase from 5% to 8% per new actuary report
10,935
Community Development Total
$ 270,581
$ 270,581
$
$ 10,935
Court
8
Healthcare increase from 5% to 8% per new actuary report
4,783
Court Total
$
$
$
$ 4,783
Police
Andover Park East propane leak*
3,460
3,460
Police
2
Reduction of SCORE costs
575,000
Police
8
Healthcare increase from 5% to 8% per new actuary report
53,090
Police Total
$ 3,4601
$ 3,460
$
$ 521,910
Fire
Add revenue budget for Fire false alarm fees
60,000
Fire
Add revenue bud at for contract with private ambulance company
60,000
Fire
4
Add revenue budget to reflect updated fire permit fees
100,000
Fire
Add expenditure budget specific to contract settlement
320,000
Fire
3
Add expenditure budget to true up overtime costs
213,000
Fire
3
Add expenditure budget for up to four recruits in the academy
160,000
Fire
3
Add expenditure budget for payouts related to retirements and
other separations
100,000
Fire
5
Add expenditure budget to reflect February snowstorm costs
38,400
Fire
5
Andover Park East propane leak*
11,500
11,500
Fire
8
Healthcare increase from 5% to 8% per new actuaryreport
36,501
Fire Total
$ 11,500
$ 522,900
$ 220,000
$ 356,501
T1S
8
Healthcare increase from 5% to 8% per new actuaryreport
5,122
TIS Total
$
$
$
$ 5,122
Public Works
8
Healthcare increase from 5% to 8% per new actuary report
15,777
Public Works Total
$
$
$
$ 15,777
Parks
8
Healthcare increase from 5% to 8% per new actuary report
4,488
ParksTotal
$
$
$
$ 4,488
Street Maintenance
5
East Marginal Way power pole accident
310,697
310,697
Street Maintenance
5
Add expenditure budget to reflect February snowstorm costs
99,100
Street Maintenance
6
10,0000 gallon salt brine storage tank
21,945
Street Maintenance
5
Andover Park East propane leak*
6,352
6,352
Street Maintenance
8
Healthcare increase from 5% to 8% per new actuary report
6,566
Street Maintenance Total
$ 317,049
$ 438,094
$
$ 6,566
12
INFORMATIONAL MEMO
Page 3
Dept.
Footnote
Description of Proposed Amendment
2019
2020
Revenue
I Expenditure
Revenue
Expenditure
Dept. 20 - Transfers Out
Transfer increase in solid waste tax to Residential Street fund
103
100,000
Dept. 20-Transfers Out
7
Use of budgeted fund balance surplus for Public Works Shops
Phase
1,850,000
Dept. 20 - Transfers Out
Adjust transfers to debt seNce funds associated with 2019
LTGO debt issue
322,068
50,000
Dept. 20 Transfers Total
$
$ 222,068
$
$ 1,900,000
General Revenue
Increase in solid waste tax from 6 % to 11 % , effective 11/1/2019
100,000
General Revenue
Increase property tax revenue
175,000
Total General Fund Amendments
$ 832,440
$ 1,146,817
$ 485,000
$ 1,899,329
*Costs for the Andover Park East propane leak totaled $21,312 which were allocated to Police ($3,460),Fire ($11,500)
and Street Maintenance ($6, 352).
1) Port of Seattle grant on July 8, 2019 Committee of the Whole meeting.
2) SCORE interlocal and finances discussed October 14, 2019 Committee of the Whole meeting.
3) Details of the fire department budget were discussed at several Finance committee meetings then at Committee
of the Whole September 9, 2019.
4) New fire fee schedule adopted by Council at September 16, 2019 Regular Meeting.
5) Updated information on snowstorm, propane leak, and power pole incident provided during Zd quarter financial
report on October 14, 2019 Committee of the Whole.
6) Purchase of 10, 000 gallon salt brine storage tank at Transportation and Infrastructure committee July 16, 2019,
Committee of the Whole July 22, 2019, and August 5, 2019 Regular Meeting.
7) Discussed at November 4, 2019 Regular Meeting.
8) Based on our previous experience and to maintain our 2.5 X IBNR, USI, our new healthcare broker, provided an
actuarial study based on best practices. The updated study recommends that funding for active employees be
increased from 5% to 8%.
Net Effect on Ending Fund Balance
The 2019 ending fund balance in the adopted budget for the General Fund was $12,672,631. As
a result of the proposed budget amendments, the 2019 ending fund balance in the revised budget
for the General Fund would be $13,828,530; an increase of $1,155,899 and exceeds reserve
policy by $2.3 million.
The 2020 ending fund balance in the adopted budget for the General Fund was $14,045,513. As
a result of the proposed budget amendments, the 2020 ending fund balance in the revised budget
for the General Fund would be $13,787,083; exceeding reserve policy by $1.7 million.
It should be noted that the original adopted budget for 2020 was drafted with a budget surplus of
$1.4 million and is being utilized to fund Phase I for PW Shops project.
13
INFORMATIONAL MEMO
Page 4
Other Funds
Included in the proposed budget amendments are amendments in other funds.
Fund
Footnote
Description of Proposed Amendment
2019
2020
Revenue
Expenditure
Revenue
Expenditure
Residential Street - Fund 103
Transfer in additional solid waste tax (transferred in from general
fund)
100,000
Residential Street - Fund 103
1
Redirect general fund transfer from Arterial Street fund (104) to
Residential Street fund 103
450,000
Residential Street - Fund 103
Adiust roadwav moiect budgets that will not be spent in 2019
2,000,000
Total Residential Street Amendments
$ 550,000
$ 2,000,000
$
$
Bridges & Arterial Street - Fund
104
Add budget for additional impact fee revenue collected
1,000,000
Bridges & Arterial Street - Fund
104
2
Redirect general fund transfer from Arterial Street fund (104) to
Residential Street fund 103
450,000
Bridges & Arterial Street - Fund
104
3
Redirect general fund transfer from Arterial Street fund (104) to
Public Safety Plan fund 305
1,000,000
Bridges & Arterial Street - Fund
104
4
Remove grants and expenditures related to Strander proqect
3,200,000
3,000,000
36,000,000
37,500,000
Total Bridges & Arterial Street Amendments
$ 2,650,000
$ 3,000,000
$ 37,000,000
$ 37,500,000
Land Acquisition, Rec., & Park
Dev. - Fund 301
5
CFT - Duwamish River habitat corridor land purchase - grant
funded
670,000
670,000
Land Acquisition, Rec., & Park
Dev. - Fund 301
5
CFT - Equitable access initial acquisition work - grant funded.
Funds received in 2019 and will be spent in 2020
25,000
25,000
Total Land Ac ., Rec., & Park Dev. Amendments
$ 695,000
$ 670,000
$
$ 25,000
General Gott. Improvement - Fund
303
Reallocate expenditure budget from 2019 to 2020 to fund a City
Hall campus needs stud
200,000
300,000
Total General Gott. Improvement Amendments
$
$ 200,000
$
$ 300,000
Fire Impact Fees - Fund 304
6
Add revenue budget to account for additional fire impact fees
collected
450,000
Fire Impact Fees - Fund 304
7
Transfer additional fire impact fees collected to Public Safety
Plan fund 305
600,000
Total Fire Impact Fees Amendments
$ 450,000
$ 600,000
$
$
Public Safety Plan - Fund 305
Transfer in additional fire impact fees collected in Fire Impact Fee
funds 304
600,000
Public Safety Plan - Fund 305
Sales tax mitigation funds
1,000,000
Total Public Safety Plan Amendments
$ 600,000
$
$ 1,000,000
$
City Facilities (PW Shops)- Fund
306
8
Transfer in from General Fund for Phase I Heiser
1,850,000
City Facilities (PW Shops)- Fund
306
8
Transfer in from Utilties for Phase Heiser
650,000
City Facilities (PW Shops)- Fund
306
Minkler interim improvement projects transfer from Sewer fund
500,000
500,000
City Facilities (PW Shops) - Fund
306
8
Redirect general fund transfer from Arterial Street fund (104) to
Public Safety Plan fund 305
1,000,000
City Facilities (PW Shops)- Fund
306
Adjust expenditure budget to reflect actual timing of expenditures
9,600,000
5,065,590
Total City Facilities PW Shops) Amendments
$
$ 9,600,000
$ 4,000,000
$ 5,565,590
Debt Service - Fund 2X0(
9
Adjust 2019 LTGO debt services transfers and debt payment
322,068
387,693
50,000
50,000
Total Debt Service Amendments
$ 322,068
$ 1387,693
$ 50,000
$ 50,000
Golf Course - Fund 411
10
Cost associated with break-ins and insurance recovery
40,000
33,000
Golf Course - Fund 411
11
Golf cart purchases in 2019
25,000
25,000
Golf Course - Fund 411
Correct salary and benefit budget
13,000
Golf Course - Fund 411
Correct expense budget for cart rentals, golf shop purchases,
extra labor
25,000
Golf Course - Fund 411
Healthcare increase from 5% to 8% per new actuary report
4,021
Total Golf Course Amendments
1 $
1 $ 103,000
$ 33,000
$ 20,979
14
INFORMATIONAL MEMO
Page 5
Fund
Footnote
Description of Proposed Amendment
2019
2020
Revenue
Expenditure
Revenue
Expenditure
Water- Fund 401
Transfer to City Facilities for PWS Phase I Heiser
221,000
Water- Fund 401
Healthcare increase from 5% to 8% per new actuary report
3,676
Total Water Amendments
$
$
$
$ 224,676
Sewer- Fund 402
Minkler interim improvement projects
500,000
Sewer - Fund 402
Transfer to City Facilities for PWS Phase I Heiser
123,500
Sewer - Fund 402
Healthcare increase from 5% to 8% per new actuary report
1,861
Total Sewer Amendments
$
$
$
$ 625,361
Surface Water- Fund 412
ITransfer to City Facilities for PWS Phase I Heiser
305,500
Surface Water- Fund 412
Healthcare increase from 5% to 8% per new actuary report
4,314
Total Surface Water Amendments
$
$ -
$
$ 309,814
Equipment Rental & Replacement
501
Healthcare increase from 5% to 8% per new actuary report
2,874
Total Equipment Rental & Replacement Amendments
$
$
$
$ 2,874
Insurance Fund 502
Healthcare increase from 5% to 8% per new actuary report
176,587
Total Insurance Fund Amendments
$
$
$ 176,587
$
1) Discussed at October 14, 2019 Committee of the Whole meeting.
2) Discussed at October 14, 2019 Committee of the Whole meeting.
3) Funding for Phase 1 for PW Shops approved at Regular Meeting on November 4, 2019.
4) Repayment of grant funds previously received for the Strander projects will occur over a two-year period.
5) Conservation Futures Trust (CFT) grant interlocal agreement for property acquisition and access projects
presented to Community Development & Neighborhoods committee October 29, 2019 and November 4, 2019
Regular Meeting.
6)Increase of fire impact revenue budget by $450,000 to reflect actual funds received to date. Additional funds
will be transferred to the Public Safety Plan.
7) Transfers out include fire impact fees collected late 2018.
8) Funding for Phase I was authorized at Regular Meeting on November 4, 2019.
9) Reduces 2019 debt service payments related to the 2019 LTGO bond issue. Total reduction in debt service is
$387, 693. Reduces the transfer in from the general fund by $322, 068.
10) Costs associated with break-ins at the golf course were incurred in 2019 but insurance proceeds aren't
expected to be received until 2020.
11) Community Development and Neighborhoods Committee 8127119, Regular Meeting 913119.
In addition to the budget amendments proposed for other funds, beginning fund balances in various funds are also
being adjusted to true up to actual beginning fund balances.
RECOMMENDATION
The Council is asked to approve the Budget Amendment ordinance and consider this item at the November
25, 2019 Committee of the Whole, and December 2, 2019 Regular Council Meeting.
ATTACHMENTS
Draft Ordinance
Proposed Budget Changes — Summary by Fund
Reconciliation of 2019-2020 Budget Summary to Ordinance
15
16
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NO.
2597, WHICH ADOPTED THE CITY OF TUKWILA'S BIENNIAL
BUDGET FOR THE 2019-2020 BIENNIUM, AND ORDINANCE
NO. 2602, WHICH AMENDED THAT BUDGET, TO ADOPT AN
AMENDED MID -BIENNIUM BUDGET; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on December 3, 2018, the City Council of the City of Tukwila adopted
Ordinance No. 2597, which adopted the 2019-2020 biennial budget of the City of Tukwila; and
WHEREAS, on February 14, 2019, the City Council of the City of Tukwila adopted
Ordinance No. 2602 amending Ordinance No. 2597, to correct a math error in the amounts
shown for the General Fund; and
WHEREAS, a mid -biennium budget amendment was presented to the City Council in a
timely manner for their review, in accordance with RCW 35A.34.130; and
WHEREAS, on October 28, 2019, the City Council gave direction for a budget proviso
relating to the General Fund appropriation to the Fire Department, included here as
Attachment 2; and
WHEREAS, on November 25, 2019, following required public notification, the City
Council conducted a public hearing on the proposed mid -biennium budget amendment;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Ordinance Amended. Tukwila Ordinance No. 2597 is hereby amended with
the City Council's adoption of the document entitled "Reconciliation of 2019-2020 Budget
Summary to Ordinance," included here as Attachment 1 and incorporated by this reference
as if fully set forth herein, in accordance with RCW 35A.33.075.
Section 2. Estimated Revenues and Appropriations. The totals of the estimated
revenues and appropriations for each separate fund and the aggregate totals are as follows:
FUND
EXPENDITURES
REVENUES
000 General
$145,733,333
$145,733,333
148 521,049
148,5 11,049
105 Contingency
$6,895,897
$
7,005,729
7,005,729
101 Lodging Tax
$2,QF�2
$2,°�_
3,198,625
3,198,625
103 Residential Streets
$12,539,621
$12,�c vw,6211
10, 378, 544
10, 378, 544
104 Bridges and Arterial Streets
$58,987 865
$ 5
17,6 99,425
17,6 99,425
2XX LTGO Debt Service
$11 'G2� cv ,282
$1 7R� co�2
9,743,157
9.743,157
301 Land Acquisition, Recreation & Park Dev.
$11 'R� cv4,2o2
$11,'� c 64,282
1,959,282
1,95%282
303 General Government Improvements
$1
$1
878,761
878,761
304 Fire Impact Fees
$1 nn�z
$1 nn, w�12
1,617,335
1,617,335
305 Public Safety Plan
$92,1vz '2—r36,54 J�A9
$92,136,549
85,931,018
85,931,018
306 City Facilities
$9 414 900
$tea
24,579,590
24 579 590
401 Water
$19,990,522
$19990 522
20,898,771
20,898,771
402 Sewer
$29,°�'8,4130
$'8�0
30,0 66,080
30 0 66,080
411 Foster Golf Course
$".'�T
$4,281,,9881
4,314,881
4,314,881
412 Surface Water
$17 814,383
$17,814,393
19,6 55,103
19,6 55,103
501 Equipment Rental
$10,'� 1�2
$10.715,532
11,135,535
11,1 55,535
502 Insurance Fund
$1f1 ,'�crrrvw32
$10,715,532
14,7 77,599
14,7 77,599
Section 3. Copies on File. A complete copy of the amended budget for 2019-2020, as
adopted, together with a copy of this amending 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 4. 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.
in
Section 5. 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 6. 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 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 12019.
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:
Attachment 1: Reconciliation of 2019-2020 Budget Summary to Ordinance
Attachment 2: Budget Proviso of the Tukwila City Council
19
20
City of Tukwila 2019-2020 Year -End Budget Amendment
Reconciliation of 2019-2020 Budget Summary to Ordinance
REVENUES
2019 Beginning
Fund Balance
2019
Revenues
2020
Revenues
Total
Revenues
Mid -Biennial
Amendment
Total
Revenues
Beg. Fund Balance
Adj.
2019
2020
000 General
5 12,590,576
$ 65.947,930
$ 67,194,827
$ 145,733,333
S 1,470,276
$ 832,440
$ 485,000
$ 148,521,049
101 Lodging Tax
1,370,302
778,000
803,000
2,951,302
247,323
3,198,625
103 Residential Street
2,826,621
4,002,000
5,711,000
12,539,621
(2,711.077)
550,000
10,378,544
104 Arterial Street
3,621,865
6,819.000
47,647.000
50,007,865
(745,440)
(2,650,000)
(37,000,000)
17,689,425
105 Contingency
6,447,329
148,568
300,000
6,895,897
109,832
7,005,729
109 Drug Seizure Fund
226,507
55,000
55,000
336,507
-
336,507
2XX LTGO Debt Service
387,669
4,979,262
4.590,311
9,957,242
57,983
(322,068)
50,000
9,743,157
206 LID Guaranty
685,037
300
300
685,637
-
685,637
213 UTGO Bonds
40,117
2,841,675
3,713,175
6,594,967
6,594,967
233 2013 LID
707,287
668,637
668,613
2,064.537
2,064,537
301 Land Acquisition, Recreation & Park Dev.
1,019,562
126,320
116,400
1,264,282
695,000
1,959,282
302 Urban Renewal
2,213,064
10,000
10,000
2,233,064
5.362,629
7,595,693
303 General Government Improvements
337,761
200,500
200,500
738,761
140,000
878,761
304 Fire Impact Fees
7,412
1 500.100
500,100
1,007,612
159,723
450,000
1,617,335
305 Public SafetyPlan
13,038,494
66,414,346
2,683,709
82,136,549
2.194,469
600,000
1,000,000
85,931,018
306 CityFacilities
1,914,000
7,500.000
9,414,000
11,165,590
-
4,000,000
24,579,590
401 Water
5,149,522
7.317,000
7,524.000
19,990,522
908,249
20,898,771
402 Sewer
9,174,430
9,912,000
9,912.000
28,990,430
1,037,650
30,036,080
411 Foster Golf Course
640,081
1,793,900
1,847,900
4,281,881
33,000
4,314,881
412 Surface Water
754,303
9,070,000
7,990,000
17,814,303
1,840,800
19,655,103
501 Equipment Rental
3,674,899
3,619,089
3,221,544
10,715,532
420,003
11,135,535
502 Insurance Fund
1,137,704
6,563,872
6,889,436
14,591,012
176,557
14,767,599
503 Insurance-LEOFFiFund
527,005
266,533
266,541
1,060,079
1,060,079
611 Firemen's Pensicn
1,449,856
74,000
74,000
1,597,856
-
-
1,597,856
Totall
$ 70,141,403 1
$ 199.630,032
$ 171,919.356
$ 441,690,791
$ 21,655,010
$ 155,372 $ (31,255,413)
$ 432,245,760
EXPENDITURES
2019
Expenditures
2020
Expenditures
2020 Ending
Fund Balance
Total
Expenditures
Mid -Biennial Amendment
Total
Expenditures
2019
2020
Net Effect on 2020
EndingFund
Balance
000 General
$ 65,865,875
$ 65,821,945
S 14,045.513
$ 145,733,333
S 1,146,817
$ 1,899,329
$ (258,430)
S 148,521,049
101 Lodging Tax
693,131
695,498
1,562,673
2,951,302
-
-
247,323
3,198,625
103 Residential Street
6,616,000
5,701,000
222,621
12,539,621
(2,000,000)
(161,077)
10,378,544
104 Medal Street
8,854,599
48,935.382
297,884
58,087,865
(3,000,000)
(37,500,000)
101,560
17,689,425
105 Contingency
6,895,897
6,895,897
109,832
7,005,729
109 Drug Seizure Fund
60,000
60,000
216,507
336,507
1
336,507
2XX LTGO Debt Service
4.979.263
4,589,893
388,086
9,957.242
(387,693)
50,000
123,608
9,743,157
206 LID Guaranty
685,637
685,637
685.637
213 UTGO Bonds
2,841,675
3,713,175
40,117
6,594,967
6,594.967
233 2013 LID
688,637
668,613
707,287
2,064,537
2.064,537
301 Land Acquisition, Recreation & Park Dev.
605,000
50,000
609,282
1,264,282
670,000
25,000
1.959,282
302 Urban Renewal
235,000
215,000
1,783,064
2,233,064
5,362,629
7,595,693
303 General Government improvements
353,094
358,015
27.652
738,761
(200,000)
300,000
40.000
878,761
304 Fire Improvements
500,000
500,000
7,612
1,007,612
600.000
9,723
1,617,335
305 Public Safety Plan
39,896.578
40.028,146
2,211,825
82.136,549
3.794,469
85,931,018
306 City Facilities
4,629.000
4.785,000
9,414,000
9,600,000
5.565,590
24,579,590
401 Water
7,650,901
9.000.238
3,339,383
19.990,522
224,676
663,573
20,898,771
402 Sewer
10,774,916
9,783,035
8,440,479
28,998,430
625,361
412,289
30,036,080
411 Foster Golf Course
1,765,345
1,610,408
706,128
4,281,861
103,000
(20,979)
(49,021)
4,314,881
412 Surface Water
8,933,224
7,302,426
1,578,653
17,814,303
309,814
1,530,986
19,655,103
501 Equipment Rental
4,435,204 1
3,777,658
2,502,670
10,715,532
2,874
417,129
11,135,535
502 Insurance Fund
6,904,662
7,412, 104
274,246
14,591,012
176,587
14,767,599
5031nsurance-LEOFF1 Fund
465,755
489,313
105,011
1,060,079
1,060,079
611 Firemen's Pension
69,991
69,991
1,457,874
1,597,856
1,597,656
Total
$ 177.817,850 1
$ 215,766.840 1
$ 48.106,101 1
$ 441,690,791 1
$ 6,532,124
$(28.518,335)1
$ 12,541,180 1
$432,245.760
21
22
Attachment 2
Budget Proviso of the Tukwila City Council
2019-2020 Mid -Biennium Budget Amendment
The following is hereby declared to be the legislative intent of the City Council regarding
the General Fund appropriation to the Fire Department:
1. The City Council approves the $522,900 amendment to the Fire Department's
2019 budget with the expectation that the following conditions be met in 2020:
a. The Fire Chief will deliver a 2019 Annual Report, per RCW 35A.92.030, to the
City Council by the end of the 1st Quarter.
b. The Fire Chief will deliver quarterly reports to the City Council discussing new
revenue implementation and budget status updates including overtime and
training.
c. The Mayor and/or City Administrator will deliver a mid -year report to the City
Council regarding budget status to date and projection for year-end.
d. The City will hire a third -party consultant to review the Fire Department
budgetary and management practices.
e. The Fire Department will implement additional revenue sources and
operational efficiencies while considering cost savings wherever appropriate.
2. It is expected that the Fire Department will operate within the adopted budget for
2020. If the above proviso conditions are met, the City Council may reconsider a
budget amendment following the mid -year report.
23
24
Proposed Budget Changes - Summary by Fund
2019
Beginning Fund Balance
Revenue
Expenditure
Ending Fund Balance
Fund
Adopted
Budget
Proposed
Amendment
s
Proposed
Revised
Budget
Adopted
Budget
Proposed
Amendments
Proposed
Revised
Budget
Adopted Budget
Proposed
Amendments
Proposed
Revised
Budget
Adopted Budget
Proposed
Amendment
s
Proposed
Revised
Budget
General Fund Depts.
Mayo,
-
$
D 21,800
$
$ 21,800
$
Recreation
108,050
112,050
Community Development
270,581
270,581
Police
3,460
3,460
Fire
11,500
522,900
Street Maintenance
317,049
438,094
Transfers
100.000
1222 06R)
Total General Fund
12,590,576
1,470,276
14,060,852
65,947,930
832,440
66,780,370
65,865,875
1,146,817
67,012,692
12,672,631
1,155,899
13,828,530
Special Revenue Funds:
Lodging Tax
1,370,302
247,323
1,617,625
778,000
-
778,000
693,131
-
693,131
1,455,171
247,323
1,702,494
Contingency
6,447,329
109,832
6,557,161
148,568
-
148,568
-
-
-
6,595,897
109,832
6,705,729
LTGO Debt Service Funds (2XX)
387,669
57,983
445,652
4,979,262
(322,068)
4,657,194
4,979,263
(387,693)
4,591,570
387,668
123,608
511,276
Capital Projects Funds:
Residential Streets
2,826,621
(2,711,077)
115,544
4,002,000
550,000
4,552,000
6,616,000
(2,000,000)
4,616,000
212,621
(161,077)
51,544
Bridges and Arterial Streets
3,621,865
(748,440)
2,873,425
6,819,000
(27650,000)
4,169,000
8,854,599
(37000,000)
5,854,599
1,586,266
(398,440)
1,187,826
Land Acquisition, Rec. and Park Dev.
1,019,562
-
1,019,562
128,320
6957000
823,320
6057000
670,000
1,275,000
542,882
25,000
567,882
General Government
337,761
140,000
477,761
200,500
-
200,500
353,094
(200,000)
153,094
185,167
340,000
525,167
Fire Impact Fees
7,412
159,723
167,135
500,100
450,000
950,100
500,000
600,000
1,100,000
7,512
9,723
17,235
Public Safety Plan
13,038,494
2,1947469
15,232,963
66,414,346
600,000
67,014,346
39,896,578
-
39,896,578
39,556,262
2,794,469
42,350,731
City Facilities (PW Shops)
1,914,000
11,165,590
13,079,590
7,500,000
-
7,500,000
4,629,000
9,600,000
14,229,000
4,785,000
1,565,590
6,350,590
Enterprise Funds:
Water
5,149,522
908,249
6,057,771
7,317,000
-
7,317,000
7,650,901
-
7,650,901
4,815,621
908,249
5,723,870
Sewer
9,174,430
1,037,650
10,212,080
9,912,000
-
9,912,000
10,774,916
-
10,774,916
8,311,514
1,037,650
9,349,164
Golf
640,081
-
640,081
1,793,900
-
1,793,900
1,765,345
103,000
1,868,345
668,636
(103,000)
565,636
Surface Water
754,303
1,840,800
2,595,103
9,070,000
-
9,070,000
8,933,224
-
8,933,224
891,079
1,840,800
2,731,879
Internal Service Funds:
Equipment Rental and Replacement
$ 3,874,899
$ 420,003
$ 4,294,902
$ 3,619,089
$ -
$ 3,619,089
$ 4,435,204
$ -
$ 4,435,204
$ 3,058,784
$ 420,003
1 $ 3,478,787
Employee Healthcare Plan
1 1,137,704
1 -
1 1,137,704
1 6,563,872
1 -
1 6,563,872
1 6,904,662
11
6,904,662
1 796,914
1 -
1 796.914
N
CP
N
O�
2020
Beginning Fund Balance
Revenue
Expenditure
Ending Fund Balance
Fund
Adopted
Budget
Proposed
Amendment
s
Proposed
Revised
Budget
Adopted
Budget
Proposed
Amendments
Proposed
Revised
Budget
Adopted Budget
Proposed
Amendments
Proposed
Revised
Budget
Adopted Budget
Proposed
Amendment
s
Proposed
Revised
Budget
General Fund Depts.
Council
1,141
Mayor
8,216
Administrative Services
2,004
Finance
6,076
Recreation
90,
99,024
Community Development
10,935
Court
4,783
Police
-
(521, 910)
Fire
220,006
356,501
TIS
5,122
Public Works
15,777
Parks
4,488
Street Maintenance
6,566
Transfers
-
1,900,000
Property Tax Revenue
175,000
-
Total General Fund
12,672,631
1,155,899
13,828,530
67,194,827
485,000
67,679,827
65,821,945
1,899,329
67,721,274
14,045,513
(258,430)
13,787,083
Special Revenue Funds:
Lodging Tax
1,455,171
247,323
1,702,494
803,000
-
803,000
695,498
-
695,498
1,562,673
247,323
1,809,996
Contingency
6,595,897
109,832
6,705,729
300,000
-
300,000
-
-
-
6,895,897
109,832
7,005,729
LTGO Debt Service Funds (2XX)
387,668
123,608
511,276
4,590,311
50,000
4,640,311
4,589,893
50,000
4,639,893
388,086
123,608
511,694
Capital Projects Funds:
Residential Streets
212,621
(161,077)
51,544
5,711,000
-
5,711,000
57701,000
-
5,701,000
222,621
(161,077)
61,544
Bridges and Arterial Streets
1,586,266
(398,440)
1,187,826
47,647,000
(37,000,000)
10,647,000
48,935,382
(37,500,000)
11,435,382
297,884
101,560
399,444
Land Acquisition, Rec. and Park Dev.
542,882
257000
567,882
116,400
-
116,400
507000
25,000
75,000
609,282
-
609,282
General Government
185,167
3407000
525,167
200,500
-
200,500
358,015
300,000
658,015
27,652
40,000
67,652
Fire Impact Fees
7,512
9,723
17,235
500,100
-
500,100
500,000
-
500,000
7,612
9,723
17,335
Public Safety Plan
39,556,262
2,7947469
42,350,731
2,683,709
1,0007000
3,683,709
40,028,146
-
40,028,146
2,211,825
3,794,469
6,006,294
City Facilities (PW Shops)
4,785,000
1,5657590
6,350,590
-
4,000,000
4,000,000
4,785,000
5,5657590
10,350,590
-
-
-
Enterprise Funds:
Water
4,815,621
9087249
5,723,870
7,524,000
-
7,524,000
9,000,238
2247676
9,224,914
3,339,383
683,573
4,022,956
Sewer
8,311,514
1,037,650
9,349,164
9,912,000
-
9,912,000
9,783,035
625,361
10,408,396
8,440,479
412,289
87852,768
Golf
668,636
(103,000)
565,636
1,847,900
33,000
1,880,900
17810,408
(20,979)
1,789,429
706,128
(49,021)
657,107
Surface Water
891,079
1,840,800
2,731,879
7,990,000
-
7,990,000
7,302,426
309,814
7,612,240
1,578,653
1,530,986
3,109,639
Internal Service Funds:
Equipment Rental and Replacement
$ 3,058,784
$ 420,003
1 $ 3,478,787
$ 3,221,544
$ -
$ 3,221,544
$ 3,777,658
$ 2,874
1 $ 3,780,532
$ 2,502,670
$ 417,129
$ 2,919,799
Employee Healthcare Plan
1 796,914
1 -
1 796,914
1 6,889,436
1 1767587
1 7,066,023
1 7,412,104
1 -
1 7,412,104
1 274,246
1 176,587
1 450,833
City of Tukwila 2019-2020 Mid -Biennium Budget Amendment
Reconciliation of 2019-2020 Budget Summary to Ordinance
REVENUES
2019
Beginning
Fund Balance
2019
Revenues
2020
Revenues
Total
Revenues
Mid -Biennial Amendment
Total
Revenues
Beg.Fund
Balance Adj.
2019
2020
000 General
$ 12,590,576
$ 65,947,930
$ 67,194,827
$ 145,733,333
$ 1,470,276
$ 832,440
$ 485,000
$148,521,049
101 Lodging Tax
1,370,302
778,000
803,000
2,951,302
247,323
-
-
3,198,625
103 Residential Street
2,826,621
4,002,000
5,711,000
12,539,621
(2,711,077)
550,000
-
10,378,544
104 Arterial Street
3,621,865
6,819,000
47,647,000
58,087,865
(748,440)
(2,650,000)
(37,000,000)
17,689,425
105 Contingency
6,447,329
148,568
300,000
6,895,897
109,832
7,005,729
109 Drug Seizure Fund
226,507
55,000
55,000
336,507
-
336,507
2XX LTGO Debt Service
387,669
4,979,262
4,590,311
9,957,242
57,983
(322,068)
50,000
9,743,157
206 LID Guaranty
685,037
300
300
685,637
-
685,637
213 UTGO Bonds
40,117
2,841,675
3,713,175
6,594,967
6,594,967
233 2013 LID
707,287
688,637
668,613
2,064,537
-
2,064,537
301 Land Acquisition, Recreation & Park Dev
1,019,562
128,320
116,400
1,264,282
695,000
1,959,282
302 Urban Renewal
2,213,064
10,000
10,000
2,233,064
-
2,233,064
303 General Government Improvements
337,761
200,500
200,500
738,761
140,000
-
878,761
304 Fire Impact Fees
7,412
500,100
500,100
1,007,612
159,723
450,000
1,617,335
305 Public Safety Plan
13,038,494
66,414,346
2,683,709
82,136,549
2,194,469
600,000
1,000,000
85,931,018
306 City Facilities
1,914,000
7,500,000
-
9,414,000
11,165,590
-
4,000,000
24,579,590
401 Water
5,149,522
7,317,000
7,524,000
19,990,522
908,249
-
20,898,771
402 Sewer
9,174,430
9,912,000
9,912,000
28,998,430
1,037,650
-
30,036,080
411 Foster Golf Course
640,081
1,793,900
1,847,900
4,281,881
-
33,000
4,314,881
412 Surface Water
754,303
9,070,000
7,990,000
17,814,303
1,840,800
-
19,655,103
501 Equipment Rental
3,874,899
3,619,089
3,221,544
10,715,532
420,003
-
11,135,535
502 Insurance Fund
1,137,704
6,563,872
6,889,436
14,591,012
-
176,587
14,767,599
503 Insurance - LEOFF 1 Fund
527,005
266,533
266,541
1,060,079
-
1,060,079
611 Firemen's Pension
1,449,856
74,000
74,000
1,597,856
1,597,856
Total
$ 70,141,403
$199,630,032
$171,919,356
$ 441,690,791
$ 16,292,381
$ 155,372 $(31,255,413)1
$426,883,131
EXPENDITURES
2019
Expenditures
2020
Expenditures
2020 Ending
Fund Balance
Total
Expenditures
Mid -Biennial Amendment
Total
Expenditures
Beg. Fund
Balance Adj.
2019
2020
000 General
$ 65,865,875
$ 65,821,945
$ 14,045,513
$ 145,733,333
$ 1,470,276
$ 832,440
$ 485,000
$148,521,049
101 Lodging Tax
693,131
695,498
1,562,673
2,951,302
247,323
-
-
3,198,625
103 Residential Street
6,616,000
5,701,000
222,621
12,539,621
(2,711,077)
550,000
-
10,378,544
104 Arterial Street
8,854,599
48,935,382
297,884
58,087,865
(748,440)
(2,650,000)
(37,000,000)
17,689,425
105 Contingency
-
-
6,895,897
6,895,897
109,832
7,005,729
109 Drug Seizure Fund
60,000
60,000
216,507
336,507
-
336,507
2XX LTGO Debt Service
4,979,263
4,589,893
388,086
9,957,242
57,983
(322,068)
50,000
9, 443,157
206 LID Guaranty
-
-
685,637
685,637
-
-
685,637
213 UTGO Bonds
2,841,675
3,713,175
40,117
6,594,967
6,594,967
233 2013 LID
688,637
668,613
707,287
2,064,537
-
2,064,537
301 Land Acquisition, Recreation & Park Dev
605,000
50,000
609,282
1,264,282
695,000
1,959,282
302 Urban Renewal
235,000
215,000
1,783,064
2,233,064
5,362,629
7,595,693
303 General Government Improvements
353,094
358,015
27,652
738,761
140,000
-
878,761
304 Fire Improvements
500,000
500,000
7,612
1,007,612
159,723
450,000
1,617,335
305 Public Safety Plan
39,896,578
40,028,146
2,211,825
82,136,549
2,194,469
600,000
1,000,000
85,931,018
306 City Facilities
4,629,000
4,785,000
-
9,414,000
11,165,590
-
4,000,000
24,579,590
401 Water
7,650,901
9,000,238
3,339,383
19,990,522
908,249
-
20,898,771
402 Sewer
10,774,916
9,783,035
8,440,479
28,998,430
1,037,650
-
30,036,080
411 Foster Golf Course
1,765,345
1,810,408
706,128
4,281,881
-
33,000
4,314,881
412 Surface Water
8,933,224
7,302,426
1,578,653
17,814,303
1,840,800
-
19,655,103
501 Equipment Rental
4,435,204
3,777,658
2,502,670
10,715,532
420,003
-
11,135,535
502 Insurance Fund
6,904,662
7,412,104
274,246
14,591,012
-
176,587
14,767,599
503 Insurance - LEOFF 1 Fund
465,755
489,313
105,011
1,060,079
-
1,060,079
611 Firemen's Pension
69,991
69,991
1 1,457,874
1 1,597,856
-
1,597,856
Total
$ 177,817,850
$215,766,840
1 $ 48,106,101
1 $ 441,690,791
1 $ 16,292,381
$ 5,518,001 $(31,255,413)1
$432,245.760
27
w
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Laurel Humphrey, Council Analyst
CC: Mayor Ekberg
DATE: September 12, 2019
SUBJECT: Marijuana Retail Zoning Considerations
ISSUE
Chair McLeod has requested the Committee review considerations around expanding opportunities
for marijuana retail establishments through zoning. After a preliminary discussion on February 25,
2019, information requested by Committee members includes other cities' experiences, public safety
concerns, financial impact, and changes to state law or implementation
BACKGROUND
Initiative 502 passed in November 2012 and created a comprehensive regulatory approach on
marijuana with state -licensed producers, processors and retailers. Through the rulemaking process
the Liquor and Cannabis Board adopted regulations on the number of retail store licenses for
jurisdictions, determining a maximum of 2 for Tukwila. The state has issued licenses for both: Mount
Baker Retail Partnership, LLC (12539 E Marginal way S) and Forbidden Flower (13003 Tukwila
International Boulevard).
On September 3, 2013, the City Council adopted Ordinance 2407 to implement Initiative 502, which
received a yes vote in all but one Tukwila precinct. In Tukwila, marijuana retailers, producers and
processors are permitted uses in Tukwila Valley South and Heavy Industrial Zones, subjectto the
1,000-foot exclusion rule. In 2015, 2SSB 5052 and HB 2136 allowed cities to reduce buffers from 1000
to 100 feet around all entities except elementary and secondary schools and public playgrounds. In
2017, the City Council received two separate requests to expand permitted marijuana retail zones but
denied both on February 13, 2017.
DISCUSSION
The state marijuana excise tax and its distributions has changed overtime and can be altered in any
future legislative session. The State currently taxes marijuana through a single excise tax of 37% at the
time of retail sale, in addition to the regular state and local sales tax, and $30M of that revenue is
shared with cities, towns and counties. There are two components to the distributions: 1) per capita
share to all jurisdictions that allow the siting of producers, processors and retailers; 2) retail share to
all jurisdictions where licensed retailers are physically located and in proportion to total statewide
retail sales. Tukwila does not have any marijuana businesses and therefore does not receive sales -
based revenue. Tukwila's per capita distribution has been:
Year*
Revenues
2019 (through June)
11,513.60
2018
30,275.81
2017
4,697.34
`City Fiscal Year Jan 1 - Dec 3
29
INFORMATIONAL MEMO
Page 2
It is difficult to estimate what Tukwila would receive for its retail share if the two state -issued licenses
were active businesses. The formula depends not only on population but also on marijuana retail
sales as a proportion of total retail sales, as well as the number/total population of cities and counties
that prohibit marijuana. MRSC used to offer an estimate calculator but discontinued it due to
complexity of the formula.
The chart below shows the 2018 marijuana excise revenue for neighboring cities:
City (number of locations)
Population
2018 Marijuana Excise Revenue*
Burien (2)
51,671
$79,698
Auburn (2)
80,776
$182,375
Des Moines (1)
31,238
$90,725
Renton (3)
101,379
$201,378
'State Fiscal Year: July 1 - June 30
Crime & Safety around Retail Locations
While the private recreational and medical use of marijuana is legal, police officers may arrest
individuals for driving under the influence of marijuana and they may issue citations for consuming
marijuana in public.
Earlier this year, Commander Harrison provided an analysis of crime reports from the other valley
cities that allow retail marijuana: Auburn (2 locations), Des Moines (1 location), and Renton (3
locations). Des Moines had the highest number of calls at the business address (52 from Jan 2018 -
Feb 2019). Of the 52 calls in Des Moines, only 21 were criminal in nature, while the other 31 were
service -type calls (alarms, disputes, welfare checks, fire assist, solicitor, unwanted and/or suspicious
subjects). The Des Moines location (23400 Pacific Highway South) would be an area that is high in foot
traffic and more likely to have the types of calls generated when there are many pedestrians in the
area.
From January 2017 to February 2019, the two Auburn locations had a total of 13 case reports each (.52
cases per month per location). Auburn did not provide their call types/volume. The Auburn totals
were as follows: 6 thefts, 8 trespasses, 3 burglaries, 5 alarms, 1 robbery, 1 auto theft.
From January 2017 to February 2019, the three Renton locations had a total of 25 case reports (.33
cases per month per location). Most of the Renton case reports were for theft (9 cases). They also had
a total of burglaries and 1 robbery at these locations. Renton did not provide any call information,
only case reports taken. The Renton totals are as follows: 9 thefts, 4 burglaries, 1 robbery, 2 assaults, 2
identity thefts, 2 warrant arrests, 2 recovery OSA stolen vehicles, 1 harassment, 1 vehicular assault, 1
suspicious person/situation.
A Liquor and Cannabis Board agent provided some additional information. Between January 2017 and
February 2019, of the 9 retail locations, there were 9 robberies. Six of the locations were robbed, 3
were robbed twice. All the robberies involved the use of a firearm. During one of the robberies, an
employee was shot, during another, an employee was "pistol-whipped." One of the businesses was
also the victim of an attempted burglary that involved the burglar shooting at the door locks in an
unsuccessful attempt to gain entry. It should be noted that the Liquor and Cannabis Board only has
information on felony crimes that occurred inside of the business; they don't track the misdemeanors
or anything that happened outside in the parking lot or surrounding areas.
30
INFORMATIONAL MEMO
Page 3
RECOMMENDATION
Staff is seeking Committee direction on next steps. If a majority of the City Council wishes to expand
the zoning for retail marijuana, it would require ordinance development and a public outreach and
hearing process that would need to be factored into the 2020 work plan.
ATTACHMENTS
Map
Marijuana Excise Tax Excerpt from Revenue Guide for Washington Cities & Towns
31
32
�J�.p11LA {yqs
O Z
J �
Q ~
1906
Zoning Districts
where Marijuana
Businesses are
Allowed
(with WA State Liquor
Control Board buffer
areas shown)
Legend
j HI Heavy Industrial
= TVS Tukwila Valey South
White Areas = Locations restricted by
WSLCB and zones where marijuana
businesses are not permitted
Date Saved: 03/14/2015 1:49,41 PM
33
34
Marijuana Excise Tax
Quick Summary
• A portion of the state's marijuana excise tax is distributed to cities and counties depending on
their marijuana policies.
• Two separate components:
o Per capita share distributed to all cities and counties that do not prohibit marijuana
businesses.
o Retail share distributed to cities and counties where marijuana retailers are located,
in proportion to statewide marijuana revenues.
No clear guidance on use of revenues, but stated intent of 1-502 is that marijuana legalization
will "[allow] law enforcement resources to be focused on violent and property crimes [and
generate] new state and local tax revenue for education, health care, research, and substance
abuse prevention."
RCW: 69.50.540(2)(g)
Initiative 502 (1-502), which was approved by voters in 2012, legalized recreational marijuana and
authorized marijuana excise taxes. Marijuana excise taxes are imposed and collected by the State of
Washington; as of 2018, the state imposes a 37% marijuana excise tax on the retail sale of marijuana,
marijuana concentrates, and marijuana -infused products (RCW 69.50.535 and WAC 314-55-089).
Cities and counties may not impose additional local excise taxes upon the sale of marijuana. However,
the state shares some of the excise tax revenues with cities and counties, as mandated by 1-502.61 The
actual revenues received by cities depend on legislative appropriations from the state budget. The
state legislature has previously attempted to reduce local marijuana excise tax distributions, and like all
shared revenues these distributions could be changed in future legislative sessions.
Marijuana excise tax distributions depend in significant part upon local marijuana policies and
regulations. The regulatory approach that each city adopts, as well as the number of local marijuana
retailers, will determine whether the city receives any marijuana excise tax revenue (and how much).
Eligibility and Distribution Formula
There are two separate components to marijuana excise tax distributions:
Per capita share: Distributed on a strictly per capita (population) basis to all cities, towns, and
counties that allow the siting of marijuana producers, processors, AND retailers. Any jurisdiction
that prohibits marijuana producers, processors, OR retailers is not eligible.
Retail share: Distributed to all cities, towns, and counties where licensed marijuana retailers are
physically located, and in proportional share to total statewide marijuana retail sales.
60 The intent of 1-502 states, among other things, that it will "[generate] new state and local tax revenue" [emphasis
added], although it does not specify how the revenue will be shared with local governments or how much will be shared.
Revenue Guide for Washington Cities and Towns I Last Updated February 2019 131
35
The different distribution formulas mean that some jurisdictions will receive both the per capita and
retail distributions, while others may receive only one or the other, and some jurisdictions will receive
neither. The chart below shows a few hypothetical scenarios to illustrate the differences.
Hypothetical Marijuana Excise Tax Distribution Scenarios Eligible for per Eligible for
capita share? retail share?
City allows marijuana production, processing, and retail and has at least
Yes
Yes
one retailer located within the jurisdiction.
City prohibits marijuana entirely and has no retailers located within the
No
No
jurisdiction.
Town took no action to prohibit marijuana, but is small enough that no
marijuana businesses can locate there under state law due to the buffer
Yes
No
requirements.
City prohibits marijuana producers and processors but allows retailers
No
Yes
and has at least one retailer located within the jurisdiction.
City currently prohibits new marijuana businesses but has existing retail-
No
Yes
ers that are grandfathered in.
City prohibits marijuana retail and has no retailers but allows marijuana
No
No
production and processing.
Each year by September 15, the LCB must provide the state treasurer with the annual distribution
amount for each county and city. For the most recent legislative appropriations and distribution
estimates, refer to our annual Budget Suggestions publication, released every year at the end of July.
Use of Revenues
The restrictions on the use of marijuana excise tax revenues are somewhat murky, as there is no
clear statute stating how the funds must be used. However, the notes in RCW 69.50.540 reference
RCW 69.50.101 and the stated intent of 1-502, which states that marijuana legalization will "[allow] law
enforcement resources to be focused on violent and property crimes [and generate] new state and
local tax revenue for education, health care, research, and substance abuse prevention."
Timing of Receipts
Payments are distributed quarterly on the last business day of March, June, September, and December.
The State Treasurer's Office distributes both the "per capita" and "retail" shares together in one
payment using the same BARS code.
Revenue Guide for Washington Cities and Towns I Last Updated February 2019
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