HomeMy WebLinkAboutFIN 2022-06-27 COMPLETE AGENDA PACKETCity of Tukwila
Finance and Governance
Committee
De'Sean Quinn, Chair
O Kate Kruller
O Cynthia Delostrinos Johnson
AGENDA
MONDAY, JUNE 27, 2022 — 5:30 PM
Distribution:
D. Quinn
K. Kruller
C. Delostrinos Johnson
T. McLeod
K. Hougardy
M. Abdi
T. Sharp
Mayor Ekberg
D. Cline
R. Bianchi
C. O'Flaherty
A. Youn
L. Humphrey
THIS MEETING WILL BE CONDUCTED BOTH ON-SITE AT TUKWILA CITY HALL AND ALSO VIRTUALLY.
ON-SITE PRESENCE WILL BE IN THE DUWAMISH CONFERENCE ROOM
(2ND FLOOR, 6300 SOUTHCENTER BOULEVARD)
THE PHONE NUMBER FOR THE PUBLIC TO PARTICIPATE IN THIS
MEETING IS: 1-253-292-9750, Access Code 49933731#
Click here to: Join Microsoft Teams Meeting
For Technical Support during the meeting call: 1-206-433-7155.
Item
Recommended Action
1. BUSINESS AGENDA
a. A two-year lease agreement with Sound Cities
a. Forward to 7/18 Regular
Pg.1
Association.
Meeting Consent Agenda.
Brandon Miles, Business Relations Manager
b. An update on the budget process.
b. Discussion only.
Pg.13
Vicky Carlsen, Finance Director
2. MISCELLANEOUS
Next Scheduled Meeting: July 11, 2022
SThe City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk@TukwilaWA.gov) for assistance.
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance and Governance
FROM: Brandon Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: June 3, 2022
SUBJECT: Sound Cities Association Lease Agreement
ISSUE
The current lease agreement for office space in the 6300 building with Sound Cities Association
(SCA) expires on December 31, 2022. Staff is proposing to enter into a new two-year lease
agreement with SCA.
BACKGROUND
SCA is a local non-profit corporation composed of member cities with a population of with
150,000 or fewer people that works locally and partners regionally to create livable, vital
communities through advocacy, education, leadership, mutual support and networking. The
City of Tukwila is a member of SCA. Since 2006 SCA has leased office space from the City in
the 6300 building. The current two-year lease with SCA expires at the end of the year.
DISCUSSION
Staff is proposing a two-year lease agreement from January 1, 2023 — December 31, 2024, to
coincide with the biennium budget cycle. The rent per square foot, per year, will increase 50
cent in 2023 and again in 2024. The total annual revenue for 2023 will be $27,010.00 and in
2024 the revenue will be $27,704.00. Under revised Code of Washington 35A.11.010 and
35A.11.020 all lease agreements must go before City Council for authorization, unless the City
Council has delegated its authority.
FINANCIAL IMPACT
Unless terminated, as permitted under the agreement, the lease agreement will generate
$54,714.00 in general fund revenue for the City.
RECOMMENDATION
The Committee is being asked to forward this item to the July 18 consent agenda for final
approval to authorize the Mayor to execute the new lease agreement.
ATTACHMENTS
• Draft lease agreement with Sound Cities Association for office space in the 6300 building.
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City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
Agreement Number:
DRAFT LEASE AGREEMENT
THIS LEASE AGREEMENT is made between the City of Tukwila ("the City" or "Lessor") and Sound
Cities Association ("Sound Cities Association" or "Lessee").
IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto
agree as follows:
1. Premises. Lessor is the owner of the commercial property located at 6300 Southcenter
Boulevard, Tukwila, Washington (the "Property"). Lessor does hereby agree to lease to
Lessee, a portion of the Property consisting of approximately 1,460 rentable square feet (the
"Premises"). The Premises do not include the exterior walls, roof, land beneath, pipes, ducts,
conduits, wires, fixtures and equipment above the suspended ceiling, or any other portion of
the Property or the buildings thereon. The City and Lessee agree that the Lessee's pro -rata
share of the Property that the Premises are a part of is 3.45%, based on the ratio of the agreed
rentable area of the Premises to the agreed rentable area of the entire Property as of the date
of this Lease.
2. Term. This Agreement shall be in full force and effect for a period commencing January 1,
2023 and ending December 31, 2024, unless sooner terminated under the provisions set forth
in Section 22. Upon termination of this Lease the Lessee shall surrender all keys and/or access
cards to the City.
3. Possession. Lessee shall be deemed to have accepted possession of the Premises in an "as -
is" condition. The City makes no representations to Lessee regarding the Premises including
the structural condition of the Premises and the condition of all mechanical, electrical and
other systems. Lessee shall be responsible for performing any work necessary to bring the
Premises into condition satisfactory to Lessee. Lessee shall not engage in any improvements
or alterations to the Premises without the express written consent of the City.
4. Rent. Base rent shall be set at $18.50 per square feet per year, or $27,010.00 per year, to be
paid in monthly installments of $2,250.83 for the period of January 1, 2023 - December 31,
2023 and $19.00 per square feet per year, or $27,740.00 per year, to be paid in monthly
installments of $2,311.67 for the period of January 1, 2024 - December 31, 2024. Rent shall
be due on the first day of each month. If payment is not received by the fifth day of each
month, Lessee shall be responsible for paying a late fee equivalent to five percent (5%) of the
delinquent amount in addition to the past due payment. All delinquent sums not paid within
thirty (30) days of the due date shall bear interest at the rate of twelve percent (12%) per
annum. Interest on all delinquent amounts shall be calculated from the original due date to
the date of payment. The City's acceptance of less than the full amount of any payment due
Sound Cities Association 2023-2024 Lease Agreement Page 1 of 9
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City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
Agreement Number:
from Lessee shall not be deemed an accordance and satisfaction or compromise of such
payment.
5. Leasehold Excise Tax. Lessee shall pay leasehold excise tax due pursuant to RCW 82.29A to
Lessor by the first day of each month at the rate of 12.84% of the base rent set forth in Section
4 herein, such amount being $289.00 per month for January 1, 2023 - December 31, 2023 and
$296.50 per month for January 1, 2024 - December 31, 2024. The leasehold excise tax shall
be paid in addition to the monthly rental payment and any other payments required under
this Lease. If the State of Washington changes the leasehold excise tax, the tax payable by
the Lessee each month under this Lease shall be correspondingly modified in compliance
with RCW 82.29A without further action by the parties.
6. Use of Premises by Lessee. Lessee shall use the Premises for general office use. The
Premises shall be used only for the uses specified herein and for not for any other business or
purpose without the prior written consent of the City. No act shall be done on or around the
Premises that is unlawful or that will increase the existing rate of insurance on the Premises
or cause the cancellation of any insurance on the Premises. Lessee shall not commit or allow
to be committed any waste upon the Premises or any public or private nuisance. Lessee shall
not do or permit anything to be done on the Premises which will obstruct, cause injury or
interfere with the rights of other tenants, or occupants of the Premises or their customers,
clients and visitors.
7. Lessee Maintenance and Repair Responsibility. Lessee shall, when and if needed, at
Lessee's sole expense, make repairs to the Premises and every part thereof; and Lessee shall
maintain the Premises in a neat, clean, sanitary condition. Lessee shall surrender the
Premises to the City in good condition upon the termination of this Lease, reasonable wear
and tear expected.
8. Signage. Lessee shall obtain the City's written consent before installing any signs on the
Premises and shall install any approved signage at Lessee's sole expense and in compliance
with all applicable laws. Lessee shall not damage or deface the Premises when installing or
removing signage and shall repair any damage to the Premises caused by such installation or
removal.
9. Utilities, Equipment and Services. The City shall provide the Premises with the following
services, the cost of which shall be included in the rent paid by Lessee: water, electricity, and
heating/cooling seven (7) days per week and janitorial services five (5) nights per week,
exclusive of holidays.
Sound Cities Association 2023-2024 Lease Agreement Page 2 of 9
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City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
Agreement Number:
The Lessee shall pay the City $110 per month for internet service, payable on the first of each
month along with rent.
The City's Technology Services department shall provide the Lessee with basic technology
support to maintain hardware equipment and software applications, such support being
performed during the City's regular, non -holiday business hours of 8:30 a.m. to 5:00 p.m. Any
after-hours emergency callouts or mutually agreed upon project work will be billed in one-
hour increments at a flat rate of $150/hour with a minimum charge of one hour. Charges will
be invoiced upon completion of the work and will be payable within 30 -days.
The City shall provide six (6) extensions to the City phone system for use by the Lessee and
will maintain the phone system at no additional cost to the Lessee. Lessee shall be
responsible for all costs associated with long distance and other toll calls which may be billed
separately by the City. Charges will be invoiced upon receipt of phone bill and will be payable
within 30 -days.
On an annual basis, the Lessee shall provide an inventory list to the City detailing hardware
equipment and software utilized by the Lessee. Any hardware equipment or software
requested for purchase by the City to update the Lessee's inventory will be billed to the Lessee
at actual cost. Any hardware equipment or software purchased by the Lessee shall be
reviewed by the City's Technology and Innovation Service Center for system compatibility
and supportability prior to purchase and installation.
Virus checking software and that has been approved by the City's Technology and Innovation
Service Center is mandatory on all Lessee computers, laptops and servers in use by the
Lessee. Any virus signature files released by the virus checking software company shall be set
to automatically update to keep the Lessee's software updated to the latest version available.
A data backup program approved by the City's Technology and Innovation Service Center is
mandatory and will be configured to automatically back up any of the Lessee's server -based
live, primary data. Data that is stored only locally (on computers, laptops, phones, tablets)
will NOT be backed up nor monitored at the Lessee's own risk. The performance of the
backup program will be monitored and tested on a quarterly basis by both parties.
10. Destruction of Premises. If the Premises are completely or partially destroyed by fire or
other casualty, of if they are damaged by an uninsured casualty, or by an insured casualty to
such an extent that the damage cannot be repaired within sixty (60) days of the occurrence,
the City shall have the option to restore the Premises or to terminate this Agreement on thirty
(30) days written notice, effective as of any date not more than sixty (60) days after the
occurrence. If this Section becomes applicable, the City shall advise the Lessee within thirty
Sound Cities Association 2023-2024 Lease Agreement Page 3 of 9
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City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
Agreement Number:
(30) days after such casualty whether the City elects to restore the Premises or to terminate
this Agreement. If the City elects to restore the Premises, it shall commence and complete
the restoration work with due diligence. For the period from the date of the casualty until
completion of the repairs (or the date of termination of this Agreement, if the City elects not
to restore the Premises) the monthly base rent shall be abated in the same proportion that
the untenantable portion of the Premises bears the whole thereof, unless the casualty results
from Lessee's negligence or its breach of obligations under this Agreement.
11. Hazardous Substances. Lessee shall not generate, release, spill, store, deposit, transport or
dispose of (collectively "Release") any hazardous substances, sewage, petroleum products,
radioactive substances, medicinal, bacteriological, or disease -producing substances,
hazardous materials, toxic substances or any pollutants or substances defined as hazardous
or toxic in accordance with applicable federal, state and local laws and regulations in any
reportable quantities (collectively "Hazardous Substances") in, on or about the Premises.
Lessee shall attach a separate list of Hazardous Substances they propose to store on site and
the City must accept the list in writing or Hazardous Substances cannot be stored on site. The
Lessee shall indemnify, hold harmless and defend the City from any and all claims, liabilities,
losses, damages, clean-up costs, response costs and expenses, including reasonable
attorneys' fees, arising out of or in any way related to the Release by the Lessee or any of its
agents, representatives or employees, or to the presence of such Hazardous Substances in,
on or about the Premises occurring at any time after the effective date of this Agreement to
the full extent of the Lessee's liability.
12. Alterations and Additions. After obtaining the prior written consent of the City, Lessee may
make, at its sole expense, such additional improvements or alterations to the Premises which
it may deem necessary or desirable. Any repairs or new construction done by Lessee shall be
done in conformity with plans and specifications approved by the City. All work performed
shall be done in a workmanlike manner and shall become the property of the City.
13. Liens. Lessee shall keep the Premises free from any liens arising out of any work performed,
materials furnished, or obligations incurred by Lessee.
14. Insurance. The Lessee shall procure and maintain for the duration of the Lease, insurance
against claims for injuries to persons or damage to property which may arise from or in
connection with the Lessee's operation and use of the leased Premises.
a. No Limitation
Sound Cities Association 2023-2024 Lease Agreement Page 4 of 9
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City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
Agreement Number:
The Lessee's maintenance of insurance as required by the Lease shall not be construed to
limit the liability of the Lessee to the coverage provided by such insurance, or otherwise
limit the City's recourse to any remedy available at law or in equity.
b. Minimum Scope of Insurance. The Lessee shall obtain insurance of the types described
below:
i. Commercial General Liability insurance shall be at least as broad as Insurance Services
Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability.
The City shall be named as additional an insured on Lessee's Commercial General
Liability insurance policy using ISO Additional Insured -Managers or Lessors of Premises
Form CG 2011 or a substitute endorsement providing at least as broad coverage.
ii. Property insurance shall be written on an all risk basis.
c. Minimum Amounts of Insurance. Lessee shall maintain the following insurance limits:
i. Commercial General Liability insurance shall be written with limits no less than
$2,000,000 each occurrence, $2,000,000 general aggregate.
ii. Property insurance shall be written covering the full value of the Lessee's property and
improvements with no coinsurance provisions.
c. Other Insurance Provisions. The Lessee's Commercial General Liability insurance policy or
policies are to contain or be endorsed to contain that they shall be primary insurance as
respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained
by the City shall be in excess of the Lessee's insurance and shall not contribute with it.
d. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M Best
rating of not less than A: VII.
e. Verification of Coverage. Lessee shall furnish the City with original certificates and a copy
of any applicable amendatory endorsements including, but not necessarily limited to, the
additional insured endorsement evidencing the insurance requirements of the Lessee.
f. Waiver of Subrogation. Lessee and the City hereby release and discharge each other from
all claims, losses, and liabilities arising from or caused by any hazard covered by property
insurance on or in connection with the Premises or said building. This release shall apply
only to the extent that such claim, loss or liability is covered by insurance.
g. City's Property Insurance. The City shall purchase and maintain during the term of this
Lease, all-risk property insurance covering the Building for full replacement value without
any coinsurance provisions.
Sound Cities Association 2023-2024 Lease Agreement Page 5 of 9
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City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
Agreement Number:
h. Notice of Cancellation. The Lessee shall provide the City with written notice of any policy
cancellation, within two (2) business days of receiving such notice.
i. Failure to Maintain Insurance. Failure on the part of the Lessee to maintain the required
insurance shall constitute a material breach of this Lease upon which the City may, after
giving five (5) business days notice to the Lessee to correct the breach, terminate this Lease
or, at its discretion, procure or renew such insurance and pay and all premiums in
connection therewith, with any sums so expended to be repaid to the City on demand.
J.
City Full Availability of Lessee Limits. If the Lessee maintains higher insurance limits than
the minimums shown above, the City shall be insured for the full available limits of
Commercial General and Excess or Umbrella liability maintained by the Lessee, irrespective
of whether such limits maintained by the Lessee are greater than those required by this
Lease or whether any certificate of insurance furnished to the City evidence limits of liability
lower than those maintained by the Lessee.
15. Indemnification and Hold Harmless. Lessee shall defend, indemnify, and hold harmless the
City, its officers, officials, employees and volunteers from and against any and all claims,
suits, actions, or liabilities for injury or death of any person, or for loss or damage to property,
which arises out of Lessee's use of Premises, or from the conduct of Lessee's business, or from
any activity, work or thing done, permitted, or suffered by Lessee in or about the Premises,
except only such injury or damage as shall have been occasioned by the sole negligence of
the City. It is further specifically and expressly understood that the indemnification provided
herein constitutes the Lessee's waiver of immunity under Industrial Insurance, Title 51 RCW,
solely for the purposes of this indemnification. This waiver has been mutually negotiated and
agreed to by the Lessee and City. The provisions of this section shall survive the expiration or
termination of this Lease.
16. Assignment and Subletting. Lessee shall not assign this Lease or sublet any portion of the
Premises. Any sublease or assignment made in violation of this provision shall be void.
17. Default. Failure by Lessee to observe or perform any of the covenants, conditions or
provisions of this Lease, where such failure shall continue for a period of ten (10) days after
written notice from the City to cure the default, shall constitute a default and breach of this
Lease. Lessee shall notify the City promptly of any default not by its nature necessarily known
to the City.
18. Access. After reasonable notice from the City (except in the cases of emergency where no
notice is required) the Lessee shall permit the City and its agents, employees and contractors
to enter the Premises at all reasonable times to make repairs, alterations, improvements or
Sound Cities Association 2023-2024 Lease Agreement Page 6 of 9
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City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
Agreement Number:
inspections. This section shall not impose any repair or other obligation upon the City not
expressly stated elsewhere in this Agreement.
19. Compliance with Laws, Rules and Regulations. Lessee shall, at its sole cost and expense,
promptly comply with all laws, statutes, ordinances and governmental rules, regulations or
requirements now in force or which may hereafter be in force relation to or affecting the
conditions, use, or occupancy of the leased premises. Lessee shall faithfully observe and
comply with City rules and regulations.
20. Permits. Lessee shall, at its sole cost and expense, be responsible for obtaining any required
permits and licenses necessary to perform the work and covenants of this Lease.
21. Notices. All notices under this Lease shall be in writing and shall be effective when mailed by
certified mail or delivered to the addresses listed below.
Notices to Lessor shall be sent to:
City of Tukwila
ATTN: Mayor's Office
6200 Southcenter Boulevard
Tukwila WA 98188
Notices to Lessee shall be sent to:
Sound Cities Association
ATTN: Executive Director
6300 Southcenter Blvd, Suite 206
Tukwila WA 98188
22. Termination. Either party may terminate this Agreement if the other party is in default as
outlined in Section 17 or at any time on or before the expiration of this Lease by providing a
minimum of thirty (30) days written notice to the other party.
23. Applicable Law; Venue: Attorneys' Fees. This Agreement shall be governed by and
construed in accordance with the laws of the State of Washington. In the event any suit,
arbitration, or other proceeding is instituted to enforce any term of this Agreement, the
parties specifically understand and agree that venue shall be in King County, Washington.
The prevailing party in any such action shall be entitled to its attorneys' fees and costs of suit.
24. Authority of Lessee. The Lessee and the individual executing this Lease on behalf of the
Lessee represent and warrant that s/he is duly authorized to execute and deliver this Lease
and upon execution this Lease is binding upon the Lessee in accordance with the terms
herein.
25. Waiver and Forbearance. No waiver by the City of any breach or default by the Lessee of any
of its obligations or covenants herein shall be deemed to be a waiver of any subsequent
breach or default of the same or any other obligation or covenant, nor shall forbearance by
Sound Cities Association 2023-2024 Lease Agreement Page 7 of 9
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City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
Agreement Number:
the City to seek remedy for any break or default of the Lessee be deemed a waiver by the City
of its rights and remedies with respect to such breach or default.
26. Entire Agreement - Modification. This Lease Agreement together with all exhibits or
addenda expressly incorporated herein by reference and attached hereto shall constitute the
whole agreement between the parties. There are no terms, obligations, covenants or
conditions other than those contained herein. Except as otherwise provided, no modification
or amendment of this Lease Agreement shall be valid or effective unless evidenced by an
agreement in writing signed by both parties.
27. Severability and Survival. If any term, condition or provision of this Lease is declared void
or unenforceable or limited in its application or effect, such event shall not affect any other
provisions hereof and all other provisions shall remain fully enforceable.
CITY OF TUKWILA SOUND CITIES ASSOCIATION
By: By:
Allan Ekberg
Mayor
Attest:
By:
Christy O'Flaherty, City Clerk
Approved as to form:
By:
City Attorney
Sound Cities Association 2023-2024 Lease Agreement Page 8 of 9
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City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
STATE OF WASHINGTON )
ss.
COUNTY OF KING )
Agreement Number:
I certify that I know or have satisfactory evidence that Allan Ekberg is the person who
appeared before me, and said person acknowledged that he signed this instrument, on oath stated
that he was authorized to execute the instrument and acknowledged it as the Mayor of the City of
Tukwila to be the free and voluntary act of such party for the uses and purposes mentioned in the
instrument.
Dated this ___ day of , 2022.
[Stamp or Seal]
STATE OF WASHINGTON )
ss.
COUNTY OF KING )
(Print Name)
Residing at
My appointment expires
I certify that I know or have satisfactory evidence that Deanna Dawson is the person who
appeared before me, and said person acknowledged that she signed this instrument, on oath stated
that she was authorized to execute the instrument and acknowledged it the Executive Director of
Sound Cities Association to be the free and voluntary act of such party for the uses and purposes
mentioned in the instrument.
Dated this ___ day of , 2022.
[Stamp or Seal]
Notary Public for Washington
(Printed or Stamped Name of Notary)
Residing at
My appointment expires:
Sound Cities Association 2023-2024 Lease Agreement Page 9 of 9
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of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance and Governance Committee
FROM: Vicky Carlsen, Finance Director
CC: Mayor Ekberg
DATE: January 18, 2022
SUBJECT: 2023 — 2024 Biennial Budget Process
Updated June 21, 2022
ISSUE
Review process associated with the development and adoption of the 2023 - 2024
biennial budget.
BACKGROUND and DISCUSSION
Activities to Date
As of January 1, we are live with Phase I of our new financial software system, Finance
Enterprise. Phase I includes general ledger, accounts payable, accounts receivable, and
cashiering. Staff will be able to utilize the new system for some, but not all budgeting
processes. The system will provide higher accuracy and better tracking of changes as the
budget is drafted. Until payroll is implemented, we will still need to calculate labor costs
using Excel.
We have also outlined several touch points with City Council in the first few months of the
year; prior to budget review session. The touch points are an opportunity to discuss
various aspects of the budget and budget process prior to formal review. The following
areas have been identified and staff is requesting input from the Committee on these
and/or other ideas for touch points.
- City structure from a budgeting perspective including existing policies, best
practices, bond rating, etc.
- City revenues including historical data, restrictions, limitations on growth, and how
each major revenue source is utilized
- Labor and other costs the City has little or no control over
- Capital projects overview including prioritization and funding options
- Proposed budget process and calendar
Public Outreach
The City Council and Administration both desire community engagement early in the
budget process so that community has the ability to participate and provide input before
decisions are made. Due to the ongoing effects of the pandemic, the current plan is for
online opportunities. If it is deemed safe to meet in-person at a later date, in-person
opportunities can always be added. Public outreach possibilities include:
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INFORMATIONAL MEMO
Page 2
- Online survey
- Virtual community meetings
- Mail -based outreach
- Feedback via the website, social media, and phone
Next Steps
Next steps include developing a budget calendar that incorporates Council Committee
touches on the budget, workshops with the full Council, and due dates for each element
of the budget process.
As a reminder, the budget must be adopted prior to the end of 2022 in order for the City
to have authority to meet financial obligations. The last City Council meeting of the year
is anticipated to be December 12, 2022.
New Information as of June 2022
Since the first touch with the Finance & Governance Committee in January, a number of
budget related activities have been completed and several are currently underway.
Budget Workshops
Three workshops and an outreach briefing have been conducted. A binder of all materials
from the workshops will be provided in the near future.
• March 7, 2022 — Structure of City Funds, Financial Policies, and Bond Rating
• May 2, 2022 — City Revenues
• May 16, 2022 — Budget Outreach Overview
• June 6, 2022 — Capital Projects
Community Outreach
Community outreach is currently underway. Staff is meeting with as many boards and
commissions as possible over the next several weeks. A Council -led Town Hall is also
planned for July. As part of the outreach efforts, a new tool, Balancing Act is being
introduced and everyone is encouraged to complete it. The tool provides the community
the ability to indicate their priorities for services and how they would like to see the budget
balanced: reducing lower priority services, adding a new revenue source or increasing an
existing revenue stream, or a combination. Staff has also implemented another tool for
in-person events that allows the community to provide input on their top five priority
services as well as thoughts on revenues or reduction in existing services. This will also
be available online to ensure there are multiple ways for community members to provide
input. This initial round of community outreach is planned to be wrapped up by the end
of July so that there will be time to review and consider how best to utilize the information.
However, we expect community engagement to continue throughout the budget process
through adoption.
ERP Budget Module and Program Budgeting
Configuration of the new budgeting module is underway and staff is testing the new
process now. Departments are starting to draft initial budget requests by program.
As part of configuring the new budget module, staff has reviewed and updated the list of
programs that will be used for priority -based budgeting purposes. Priority -based
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INFORMATIONAL MEMO
Page 3
budgeting (PBB) was first incorporated into the City's budget process with the 2019-2020
biennial budget. The City had the opportunity to utilize program budgets in 2020 when
the pandemic began. With a significant decline in revenue expected, the City was able
to use programs as one tool to reduce expenditures. the experience gained during 2020
has allowed the City to refine the programs so that they are more effective in
communicating city services. The updated program list will reflect services on a city-wide
perspective rather than by department only. The updated list will better show how
resources are allocated to programs and services that provide the greatest value to our
residents, which will also help better evaluate alignment with strategic and community
priorities. This perspective is a pathway to more strategic decision-making regarding
levels of service. Attachment A is the updated program catalogue that staff will be utilizing
to submit budget requests.
Roles and Responsibilities
With the 2023-2024 budget process well underway, it is a good time to review the roles
and responsibilities of staff, administration, and Council.
City Council has the role of setting policy and confirming that the budget meets the
direction of the policy by adopting the budget. City Council also has the role of monitoring
the budget to ensure that expenditures conform to the budget and desired results are
met.
The role of the Mayor is to propose the policy direction at the beginning of the process
and to oversee the organizational strategy to implement the policy.
Departments, including the Finance Department, develop the operational strategy to meet
policy direction set by Council. Departments also provide the services that have been
approved through the budget adoption process. Departments are also accountable for
the day-to-day operations of providing the services.
The Finance Department works with all departments to draft budgets within parameters
outlined by Council and Administration. The Finance Department manages and ensures
that the budget is balanced and adopted prior to the start of the new fiscal year.
Budget Calendar
Attachment B is an updated budget calendar for review. It includes the legally required
dates the City must meet in order to comply with State law as well as internal dates for
building the budget to ensure that the required dates are met.
RECOMMENDATION
upcoming budget cycle.
Discussion only at this time.
ATTACHMENTS
Attachment A: Updated Program Catalog
Attachment B: Updated 2023-2024 Biennial Budget Calendar
15
16
Program Name
Program Description
Accounts Payable
Process invoices for payment, review department coding and data input, issue 1099s. Review
and post purchase card transactions
Acct Rec/Misc Billing/LID/etc.
Tracks and reports outstanding balances owed to the City. Maintain Local Improvement District
#33 database and manage assessment billing
Administration
General functions for standard operations of the department, including purchasing, timecards,
budget development and oversight, culture and internal communications, recruiting and hiring,
employee supervision and performance evaluations.
Animal Control
The City contracts with King County Animal Control to provide these services
Benefit Plan Management
Managing health, retirement and other benefits. Claims processing
Boards/Commissions/
Committees
Staffing, participating and other support for the successful development and administration of
Board and Commission recruitment, trainings, and meetings. Also includes assisting with
appointments and monitoring terms of appointment and trainig requirements. Receive
applications and compiles memo for Mayor, schedule interviews, as requested, maintains a
roster with all appointees and expiration dates, send memos for approved appointment for city
council agenda, issue press releases, send thank you, regrets and/or congratulations letters to
residents
Budget/CIP Development
Facilitate development of the biennial budget, review, and file budget with State Auditor.
Process budget amendments. Plan and develop 6 -year CIP document addressing current and
future city-wide capital needs.
Business & Develpmt Attr/Rtntn
Attracting businesses and developments to Tukwila.
Building and maintaining relationships with businesses, including networking, providing general
assistance, and helping businesses resolve issues related to the City.
Business Application Svcs
Business application which include financial, asset management (fleet, facilities, parks, and city
infrastructure e.g. water, sewer, surface water and street), human resources support
Business License Admin
Provide customer service to both internal and external customers, review, and route applications
to other departments for review before issuing licenses
Business System Mgmt &
Support
Maintaining and supporting enterprise application relational databases to ensure integrity of
application data
Capital Asset Accounting
Monitor, review and update capital asset records and transactions in preparation of financial
reporting purposes including computation of depreciation
Case Management
The constellation of court rules, business practices, culture and governance, and staffing and
technology infractructure assembled to achieve the objectives of timely, cost-effective, and
procedural fairness.
City Attorney Services
Contracted City Attorney services
City Policy Development
Work on general City policies. Includes reviewing policy changes proposed by other
departments, participating on policy development teams, and recommending policy changes.
City Property Dev & Mngmnt
Coordinating management, development, and/or sale of select city owned properties including
the following: Healthpoint Health & Wellness Center, Newporter Site, Tukwila Village, George
Long Shops, Minkler Shops, Old Fire Station 51, and Longacres.
Civil Service Recruit & Hiring
Recruitment, testing and hiring for Police and Fire
Classification & Compensation
Job descriptions, rep and non -rep
Clubhouse Maintenance
Facility maintennace at Foster Golf Links Clubhouse
Code Enforcement
Compliance with the City?s laws and regulations for land use, zoning, building, housing,
landscaping and environmentally sensitive areas
Communications & Community
Eng
Fosters more inclusive public participation and relationship building.
Community Investment
Providing Tukwila community members with resources to improve quality of life and access to
opportunities.
Community Policing Team
The Community Policing Team (CPT) is a proactive team with the overarching goal of
establishing a relationship between the Tukwila Police, residents, and business owners, allowing
for a more proactive police role in the community. Patrolling on foot, bicycles, and via traditional
vehicles, the team partners with community groups to identify opportunities for cooperation and
increased safety
Community Risk Reduction
Fire Marshal Office processes, inspections, development review, CARES unit
Construction Permit Review &
Inspection
Review Building, Plumbing, Electrical, Energy, and Mechanical Permits for compliance with
State Building Code requirements
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Council Agenda/Meeting
Functns
Administration, agenda production, agenda review and long-term planning, meeting facilitation,
minutes, legislative history
Council Legislative Support
Oversees and coordinates with city staff in preparation for City Council meetings; Provides
information to Council for their deliberation. Supports and implements Council policy decisions.
Course Maintenance
Execute maintenance tasks on PGA -rated Foster Golf Links, including maintenance of cart
paths, course accessories, irrigation, landscape, sand bunkers, set course, turf, and equipment
necessary to care for the course
Court Interpreter Program
In compliance with RCW 2.43 the court provides AOC Certified Court Interpreters to all court
customers for criminal and non -criminal hearings, mitigation and contested hearings, front
counter assistance and Court Support Services.
Court Support Services
Court Support Services (known in the industry as Probation) is a multi -faceted program that
enhances public safety by providing supervision for people convicted of misdemeanor offenses
while increasing the chance of successful re-entry into the community through less -restrictive
alternatives to jail, support and guidance for clients working on meeting court conditions,
educational programming, provision of food, clothing, and hygiene items, and connections to
community resources.
Critical Incident Response
The Tukwila Police Department is an active member of Valley SWAT/Hostage Negotiator Team
and The Valley Civil Disturbance Unit, regional teams whose mission it is to support the
extraordinary law enforcement needs of the participating agencies through the use of
specialized tactics and techniques. The teams are highly trained and well-equipped to respond
to and effectively resolve a variety of high-risk and large-scale situations.
Current Planning
Review of land use permits such as SEPA, design review, rezones, conditional use permits etc.
Cyber Secrty/Busnss Continuity
Application of technologies, processes and controls to protect City systems, networks,
programs, devices and data from cyber attacks. ? Restore technology services to maintain
critical city services in the event of a natural disaster or cyber security attack..
Data Analytics
Provide quantitative management data of delivered city services by organizing, managing and
extracting insights from diverse systems and data sets. ?Proactively inform staff if services are
not meeting expected service levels.
Debt Management
Support judicious borrowing by the City within the framework of its written debt management
policy. Finance coordinates with bond attorneys, rating agencies and other financial
professionals and provides required reporting and disclosures to the State and investors
Deployments
Deployments out of jurisdiction that are reimbursed
Destination Development
Developing the City as a destination for tourism by investing in facilities and infrastructure.
Detention & Incarceration Svcs
This program covers all tasks and responsibilities associated with bringing offenders to justice,
including the management of our relationships with jails, courts, and all probation programs.
Includes monthly cost for SCORE.
Digital Records Center
Growth and development of system, microfilming and digitization, importing new record series,
GET -IT, policies, training, new initiatives, maintenance costs professional development.?
Ditches, Ponds, Bioswale
Staff time and supplies for maintenance of surface water ditches, ponds, and bioswales by the
Citv?s surface water crew
Emergency Application Services
Emergency service (Fire and Police) application support.?
Emergency Management
Program
A comprehensive Emergency Management program has responsibility for ensuring the City and
the community can mitigate against, prepare for, respond to, and recover from emergencies and
disasters. Emergency Management activities involve training all City departments and
engagement with the whole community. This program also works with the Police Department,
the City government as a whole, and with other area governments to provide for continuity of
operations to ensure essential services are maintained in the event of a large scale disaster.
Emergency Prep & Response
Emergency training, continuity of operations plans, developing backup systems.
EMS
Combine the RED / BLS, Core Services, Run Reviews, Supplies, CBT Training, CBT Instructor
etc.- grant funding from King County
End User Infrastructure Svcs
End-user hardware services; laptops, desk phones, PC, point of sale, first responder (rugged
tablets and cameras).
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Environmental Stewardship
Activities focused on environmental sustainability, such as Recycling, Transportation Demand
Management, and environmental stewardship. Activities to benefit City of Tukwila residents
include, community outreach and programs, grant -writing, and other supportive activities.
Equity
Implementation of City Equity policy, support for EPIC (Equity Policy Implementation
Commitee), equity training and regional/national partnerships with and memberships in equity-
focused organizations.
Essential Public Services
Preparation of correspondence, memos, presentations. Oversight of scheduling for Mayor and
City Administrator
Evidence and Property
Managmnt
Proper chain of custody is imperative to safeguarding the Department's property and evidence
system, creating better case integrity, and returning lost or stolen items to their lawful
owners.A Evidence and Property staff ensures the proper chain of custody and
evidencesecurity, storage and disposition for items taken in by the Tukwila Police Department.
Facility Management &
Improvmt
Staff time for maintenance and supplies for the City facilities. Staff time for
Improvements/additions and supplies for City Facilities. Includes using hired vendors and costs
for maintenance such as the HVAC system, roof, and other structural repairs.
Facility Rentals
Schedule use of over 20 rental facilities throughout the Parks and Recreation system: including
the Community Center, picnic shelters, ball fields, and rental services (equipment rental)
Fin Report/ACFR/Audit/GL
Admin
Preparation and review of annual comprehensive annual financial report, work with State
Auditor, continuing disclosure on EMMA
Fin Rept & Anlys for Depts
Assist departments with financial management needs, maintain general ledger, regular reporting
to Council and Council committees.
Fire Hydrants
Staff time and supplies for fire hydrant maintenance and replacement. Includes flushing the fire
hydrants as well as billable workorders after accidents
Fire Suppression and rescue
Response with training
Fleet Management
Maintenance of all carts, vehicles, and equipment necessary for golf course operations
GIS
Includes staff time and consultant services to maintain the geographic information system (GIS)
data necessary for customer inquiries, daily operations and infrastructure maintenance.
Golf Maint Operations Admin
General functions for standard operations of the golf course operatioons department at Foster
Golf Links, including purchasing, timecards, budget development and oversight, culture and
internal communications, recruiting and hiring, employee supervision and performance
evaluations.
Governmental Affairs
Liaise with other government and regional entities. Includes travel and registrations to regional,
state, and national boards
Grants Admin & Accounting
Preparation of grant related contracts; processing invoices for payment, reviewing department
coding and data input. Reviewing and posting change orders, pay estimates, retainage and
other transactions. Tracking and monitoring of grant funds spent and received.
Grounds Maint-City Facilities
Landscape maintenance of city hall campus, Tukwila Justice Center, and fire stations
Health &Safety
Accident prevention plan, safety plan. Employee injury/illness reports. Training related to health
and safety.?
Homeless Encampment
Response
Maintenance and cleanup of identified homeless encampment sites within the city
Indirect Cost Allocation Admin
Identify costs that should be shared or allocated among departments; design a methodology to
allocate these costs in compliance with Budgeting, Accounting, Reporting System (BARS) and
other authoritative guidance (GAAP). Ensure the costs are allocated each year
Invest/Cash Mngmnt/Reporting
Invstgtn of Felony and Juv Crm
This is our Major Crimes Unit, whose primary responsibility is to investigate a wide variety of
crimes, including homicide, robbery, burglary, felony assault, crimes against children and the
elderly, felony theft, fraud, forgery, sexual assault, missing persons, and matters relating to
registered sex offenders
Labor & Employee Relations
Contract/collective bargaining negotiations. Complaints, grievances, investigations, and contract
interpretation.
Legislative & Budget Oversight
Study information and attend meetings to provide policy direction and budget authority for City
services
Levees
Management of the City's 205 Levee and cooperation with FEMA and King County Flood Control
District.
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Lodging Tax Apllication
Oversight/Support
Administrative oversight of committee business including funding requests.
Logistics & Support Operations
Research, purchasing, delivery, management, and inventorying of supplies such as aid
equipment, station supplies, this will also include our aid runs, mail run. Rehab equipment,
supplies. Support Operations staff provides help to officers in the street (both Tukwila officers
as well as other agencies). This support includes: radio monitoring; holding area door security;
WACIC/NCIC entry; Spillman entry, attachments and review; dispositions; access card
management; building camera security and key access control.
Long -Range & Comprehensive
Pln
In compliance with state law, develop long range plans for Tukwila Land Use (i.e., City
Comprehensive and Subarea Plans) and functional plans such as Public Works plans (e.g.,
Stormwater, Transportation, Water, etc.), as well as Economic Development, Parks, Emergency
Management, etc.
Long -Range Fin Planning Model
Update long-range model to ensure sound financial decisions are made
Mandatory Training
Trainings required by Federal, State, Local laws and/or City of Tukwila organizational policy.
Manholes/Catchbasins
Staff time for maintenance and supplies for City?s manholes/catch basins. Includes using the
Vactor truck and costs for proper disposal of drainage waste
Meter Reading and Maintenance
Staff time for meter reading (majority are radio reads) and maintenance and replacement of
water meters
Minor Structural Repairs
Repair of minor structural issues with streets and roadways.
Mobility Services
Cell phones, in -car wireless, virtual private networks, iPads, loT (internet of things connected
smart devices).
Narcotics & Human Trafficing
Investigation
This program's primary responsibility is to investigate drug and prostitution related crimes that
affect the citizenry of Tukwila. The unit also addresses other crimes as assigned, often relying
on special equipment and undercover skills to conduct those investigations. Employees
assigned to this program also participate with a variety of local, State, and Federal investigators
in an effort to curb crime using combined resources
Network Infrastructure Svcs
Network design and support, maintenance.
Not Assigned to any program
This program code is to be used with budget items that are not part of a program
NPDES
Includes staff time and supplies to adhere to the requirements under Surface Water?s National
Pollutant Discharge Elimination System (NPDES) Permit. Includes annual reporting, public
education and outreach, staff training, and inspections of public and private systems. Includes
staff response to illicit discharge events in City?s right-of-way.
Older Adult Services and Prgms
Services and programs for senior adults ages 50 and above
Ordinance, Resolution & TMC
Dev
Legislation creation and review, amending and repealing documents, ongoing TMC
development, and significant department -led code changes.
Outfall/Flap Gates/Trash racks
Outfalls, Flap Gates, and Trash racks -Staff time and supplies for maintenance of surface water
outfalls, flap gates, and trash racks by the City?s surface water crew. Includes all staff time for
monitoring the Green/Duwamish River in high water events
Park Restrooms Contract
Contracted services for restroom closures at city parks
Parks Facility Maintenance
Facility maintenance at Tukwila Community Center
Parks Maintenance
Landscape maintenance at city parks
Payroll & Benefit Admin
Provide payroll preparation and processing to all City employees, administer LEOFF 1 pension
plan
Permit Intake, Issuance, Coord
Intake approximately 1,800 construction permits, manage review, and issue approval or denials
Police Patrol Services
Police Patrol Services is responsible for responding to the immediate needs of the Tukwila
community. Providing a constant presence, both during and between calls for service, and
building the trust of the community, the members of this program are the City's law enforcement
first responders. The employees assigned to this program are also tasked with nearly all facets
of police work, requiring a high-level of expertise and an ever-increasing amount training
Policy Development/Compliance
Duties related to the development of Human Resources policies as well as ensuring compliance.
Pothole and Litter Control
Roadside cleanup, repair and maintenance of asphalt and shoulders.
Preschool Services and
Program
Implement play -based preschool programming for ages 3 to 5
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Pro Shop Operations
Customer service, lessons and tournaments, management of play, and retail operations at
Foster Golf Links
Professional Dev & Training
Development of operational and strategic knowledge and skills to support staff development and
better outcomes for the community and organization.
Professional Standards
This program manages and maintains the Department's localized governing policies
Projects & Capital Impr Mgmnt
Planning and executing community infrastructure investments
Prosecution Services
Contracted Prosecuting Attorney services
Public Defense Program
Oversight of the Public Defense Program, processing invoices, reports, complaints. Prepares
annual program report. Applies for grant funds to support the program. Oversight of Office of
Public Defense Grant funds. Prepares reports as required
Public Record Req & Record
Mgt
Adherence to public records laws.
Public Safety Plan
Provide reporting, issue debt specific to the voter -approved public safety plan
Pump Station Monitor/Maint
Covers all work at the City?s surface water pump stations, which includes monitoring and
maintenance
Recruiting and Hiring
This program is tasked with finding, attracting, evaluating, and hiring top talent. Recruitment for
non -Police and Fire. Includes lifecycle of recruitment from vacancy to onboarding.
Rental Housing
Compliance with City?s Rental Housing Ordinance and inspection requirement
Reservoir/Water Supply Stns
Reservoir/ Water Supply Stations/ Pressure Reducing Stations
Covers all work at the City?s reservoir, supply stations, and includes CWA fees for purchased
water that supplies the City?s water district
Risk Management
Maintain adequate insurance coverage for liabilities, property, and employee errors & omissions.
Review claims and file reports as needed
Sales and Other Taxes
Track and research tax revenue ? sales tax, property tax, utility taxes, gambling tax, admissions
tax, parking tax, real estate excise tax and others ? to ensure amounts owed the City are
received by the City; analyze trends relative to economic activity to forecast future receipts.
Stay apprised of new developments and make recommendations for increases. Review and
update data in preparation of financial reporting purposes
School Zone Safety Cameras
Program created to reduce speeding in shool zones. Includes technology equipment,
processing, and staffing for Police & the Court
Service Desk
Tier 1/2 support and triage (Basic IT support and Training).? Advanced Troubleshooting, Device
Provisioning and Service Fulfilments.
Sewer Mains/Service Lines
Staff time and supplies for sewer main maintenance and replacement by the City?s sewer crew
Sidewalks
Staff time and supplies for sidewalk maintenance and replacement by the City?s crew.
Snow & Ice Control
Staff time and supplies for snow removal by the City?s crew.
Specialty Rescues
Street Cleaning
Street sweeping, tree removal, etc.
Street Lighting
Repair and maintenance of streetlight poles.
Streetscapes/Median
Landscape
Street landscaping.
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Surface Water Mains
Staff time for maintenance and supplies for City surface water mains
Surplus inventory/equipment
TIB Bus Stop/Streetscape
Bus stop cleanup, repair and maintenance.
Tourism Marketing
Program to attract daytime and overnight visitors.
Traffic Control Devices
Repair and maintenance of traffic signals, signage, and buttons.
Traffic Enf & Crash Invstgn Tm
This program houses the Police Department's Traffic Unit, which investigates serious traffic
incidents and is tasked with enforcing the City's roadway laws
Trail Maintenance
Landscape maintenance at city numbered trails, Green River Trail, and Interurban Trail
Utilities/Surface Water
Staff time and supplies for surface water main maintenance and replacement by the City?s
crew.
Utility Billing
Provides support to the water, sewer, and surface water management departments. Provides
all aspects of billing services, leak adjustments, financial reporting, etc
Valley Ind. Investigative Team
Video & Fiber
Staff time and supplies for video and fiber maintenance and replacement by the City?s crew.
Water Mains/Service Lines
Staff time and supplies for water main maintenance and replacement by the City?s water crew
Water Quality/Backflow Prey
Staff time and supplies for water quality maintenance and replacement. Includes a full-time
water employee to maintain backflow prevention records to meet City codes in order to protect
the water quality throughout the City?s water district
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Wellness & Adult Svcs &
Programs
Fitness memberships and classes offered for ages 13+ and adult sport activities
Youth & Teen Svcs and
Programs
Programming and activities for youth ages 5-18
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2023-2024 Biennial Budget Calendar
*Note* To make the best use of Council time, Workshops may take place during COW, Regular Meeting, or Special Work
Sessions, depending on schedules and other legislative items.
January 24
Process discussion at F&G Committee
February 5
Process/Calendar discussion at Council Retreat
March 7
Council workshop: Overview - Structure of City Funds, Financial Policies,
Bond Rating
April - June
Budget module in new ERP system configured and tested
May 2
Council workshop: Review of City revenues, revenue sources
May — June
Program list refined, programs rescored as needed
June - August
Department heads prepare budget estimates
• RCW: on or before the fourth Monday in September
May - July
Community outreach (includes Council Town Hall possibly in July)
June 6
Council workshop: Overview of Capital Projects - Prioritization, Funding,
Impacts to Ongoing Maintenance
Mid July
Consumer Price Index (CPI) published
July 15
City Council direction on contracting with Puget Sound Regional Fire
Authority
Early August
Council workshop: High-level general fund discussion
August -
September
Finance Department/Administration reviews departmental budgets;
community feedback evaluated
September 1
Contract negotiations with Puget Sound Regional Fire Authority must be
completed
September
Council review: any fund that is ready for review that is not impacted by
the general fund. Possible funds available for review: drug seizure,
lodging tax, contingency, debt service, LEOFF 1 retiree, firemen's pension
(Note: documents for review will be provided as early as possible to allow
Council adequate time to review materials prior to work sessions)
October 3
Draft Budget presented to Council by Mayor
• RCW: no later than the first Monday in October
(Note: complete 2023-2024 Biennial Budget Document and Capital
Improvement Program document will be provided as early as possible to
allow Council adequate to review materials prior to work sessions)
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Completed
In Progress
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October
Council workshop: General Fund Review
October
Council workshop: Capital Project Funds, Debt Service Funds
October
Council workshop: Utility Funds, Ancillary Funds
Early November
Council workshop(s): Council-led discussion
November 14
Budget legislation in F&G committee
November 14
Public Hearing on Budget & Property Tax Legislation
• RCW: Property tax legislation must be sent to the County by
December 1.
December 5 or 12
Budget adopted by Council
Completed
In Progress
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