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Home My WebLink AboutCOW 2022-11-14 Item 4B.1 / 4B.2 - Public Hearing - Ordinance on 2023-2024 Biennial Budget / Resolution on 2023-2028 Financial Planning Model and Capital Improvement ProgramCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/14/22 Vicky 11/21/22 Vicky ITEM INFORMATION ITEM No. 4.B. (1-2) & 5.B. (1-2) STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 11/14/22 AGENDA ITEM TITLE Ordinance adopting the 2023 - 2024 Biennial Budget and a resolution adopting the 2023 - 2028 Capital Improvement Program CATEGORY ® Discussion Mt Date 11/14/22 ❑ Motion Mtg Date ® Resolution Mtg Date 11/2/22 Ordinance Mtg Date 11/21/22 ❑ Bid Award Mtg Date 11 Public Hearing Mt' Date 11/14/22 ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ❑ P&R ❑ Police ❑ PIF SPONSOR'S SUMMARY City Council is being asked to approve an ordinance adopting the 2023 - 2024 Biennial Budget and a resolution adopting the 2023 - 2028 Capital Improvement Program. These items are scheduled for Council consideration at the 11/14/22 Committee of the Whole and 11/21/22 Regular Council meeting. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ® Finance & Governance ❑ Planning & Community Dev. DAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 10/24/22 COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONsoR/ADMIN. Finance COMMITTEE Forward to 11/14/22 C.O.W. COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/14/22 11/21/22 MTG. DATE ATTACHMENTS 11/14/22 Informational Memorandum dated 10/18/22 Draft Ordinance Draft Resolution Reconciliation of the 2023-2024 Budget Summary to Ordinance Minutes from the Finance & Governance Committee meeting 10/24/22 11/21/22 15 16 W i City of Tukwila INFORMATIONAL MEMORANDUM Allan Ekberg, Mayor TO: Finance & Governance Committee FROM: Vicky Carlsen, Finance Director CC: Mayor Ekberg DATE: October 18, 2022 SUBJECT: 2023 — 2024 Biennial Budget Ordinance 2023 — 2028 Financial Planning Model and Capital Improvement Program ISSUE Adopt the 2023 — 2024 biennial budget and the 2023 — 2028 Capital Improvement Program (CIP) by the end of December. BACKGROUND The proposed biennial budget for 2023 — 2024 and draft 2023 — 2028 CIP were presented to Council on October 3, 2022. Departments within the general fund and all other funds have been reviewed in Council Committees and at the Council Committee of the Whole. Additionally, Council held budget workshops on October 11 and October 13, 2022, to discuss both the budget and CIP. Additional workshops will be scheduled before final adoption. DISCUSSION At this time the proposed 2023 — 2024 biennial budget as well as the 2023 — 2028 CIP is being presented to the Finance & Governance Committee for review and discussion. The public hearing, another opportunity for community input, is scheduled for Tuesday, November 14, 2022. The ordinance and resolution are in draft form and will be updated prior to final adoption if any changes are made to either the proposed biennial budget or the CIP. RECOMMENDATION The Finance & Governance Committee is being asked to review the 2023 — 2024 biennial budget ordinance and the 2023 — 2028 Financial Planning Model and Capital Improvement Plan resolution and forward to the Committee of the Whole for the legally required Public Hearing on November 14, 2022. Final action on the budget legislation could occur at the November 21 Regular Meeting, or any Regular or Special meeting through the end of the year per the Council's preference. ATTACHMENTS Draft Budget Ordinance Reconciliation of 2023 — 2024 Budget Summary to Ordinance Draft CIP Resolution 17 18 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; ADOPTING THE BIENNIAL BUDGET OF THE CITY OF TUKWILA FOR THE 2023-2024 BIENNIUM; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the preliminary budget of the City of Tukwila for the 2023-2024 biennium was submitted to the City Council in a timely manner for their review; and WHEREAS, a Public Hearing on the proposed budget was advertised and held on November 14, 2022; and WHEREAS, as budget oversight is one of its key legislative responsibilities, the City Council conducted a thorough process to deliberate the proposed 2023-2024 Biennial Budget; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council hereby adopts the document entitled "City of Tukwila 2023- 2024 Biennial Budget," incorporated by this reference as if fully set forth herein, in accordance with RCW 35A.34.120. Section 2. Cost of living adjustments (COLAs) for non -represented employees shall be implemented per the City Council's Compensation Policy. Section 3. A market and compression study for non -represented employees, as included in the 2023-2024 Biennial Budget, is expected to be completed by the end of 2023 and upon completion of the study, compensation will be adjusted per the market study with an effective date of January 1, 2020. Adjustments will be for non -represented employees on staff when the market study is completed. Section 4. The totals of the estimated revenues and appropriations for each separate fund and the aggregate totals are as follows: CC:Legislative Development\Adopt 2023-2024 Biennial Budget 9-30-22 VC:AY Review and analysis by Andy Youn 19 Total Total Fund Expenditures Revenues 000 General $ 166,485,032 $ 166,485,032 105 Contingency 7,082,148 7,082,148 101 Hotel/Motel 3,530,201 3,530,201 103 City Street 9,326,503 9,326,503 104 Arterial Street 30,749,479 30,749,479 109 Drug Seizure Fund 666,515 666,515 2XX LTGO Debt Service Funds 11,815,404 11,815,404 213 Unlimited Tax G.O. Bonds 9,615,168 9,615,168 206 LID Guaranty 764,958 764,958 233 2013 LID 1,615,678 1,615,678 301 Land Acquisition, Recreation & Park Dev. 4,692,436 4,692,436 302 Facility Replacement 2,533,800 2,533,800 303 General Government Improvements 2,345,128 2,345,128 304 Fire Improvements 600,000 600,000 305 Public Safety Plan 2,738,557 2,738,557 306 City Facilities 6,256,324 6,256,324 401 Water 22,155, 562 22,155, 562 402 Sewer 34,034,242 34,034,242 411 Foster Golf Course 6,094,043 6,094,043 412 Surface Water 28,393,244 28,393,244 501 Equipment Rental 7,945,539 7,945,539 502 Insurance Fund 13,172,855 13,172,855 503 Insurance - LEOFF 1 Fund 959,737 959,737 611 Firemen's Pension 1,694,370 1,694,370 Total All Funds Combined $ 375,266,924 $ 375,266,924 Section 5. A complete copy of the final budget for 2023-2024, as adopted, together with a copy of this adopting ordinance, shall be kept on file electronically by the City Clerk and accessible from the City's website in accordance with Washington State records retention schedule requirements and City policy, and shall be made available to the public upon request. A complete copy of the final budget for 2023-2024, as adopted, together with a copy of this adopting ordinance, 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 6. 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. CC:Legislative Development\Adopt 2023-2024 Biennial Budget 9-30-22 VC:AY Review and analysis by Andy Youn 20 Section 7. 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 8. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: CC:Legislative Development\Adopt 2023-2024 Biennial Budget 9-30-22 VC:AY Review and analysis by Andy Youn 21 22 Reconciliation of 2023-2024 Budget Summary to Ordinance REVENUES 2023 Beginning Fund Balance 2023 Revenues 2024 Revenues Total Revenues 000 General $ 19,085,142 $ 71,839,634 $ 75,560,256 $ 166,485,032 101 Hotel/Motel 2,048,201 726,000 756,000 3,530,201 103 City Street 847,903 5,352,800 3,125,800 9,326,503 104 Arterial Street 6,570,879 4,873,800 19,304,800 30,749,479 105 Contingency 7,042,148 20,000 20,000 7,082,148 109 Drug Seizure Fund 435,515 115,500 115,500 666,515 200 LTGO Bona 392,475 389,375 781,85,. 208 LTGO Bonds - 2017 (Public Safety Plan) 1,532,700 1,534,450 3,067,150 209 LTGO Bonds - 2017 (Residential Street) 558,400 557,750 1,116,150 210 Limited Tax G.O. Refunding Bonds, 2003 - - - 211 Limited Tax G.O. Refunding Bonds, 2008 - - 212 Limited Tax G.O. Bonds, 2009A 376.87' 376,914 753.790 214 Limited Tax G.O. Bonds, 2010A 216 Limited Tax G.O. Refunding Bonds, Valley Comm 217 2011 Refunding Bonds 218 2014 MPD - 219 LTGO - PSP/PW Shops ',691,050 1,689,550 3,380,600 220 2020 Bonds - refunding 513,029 516,579 1,029,606 221 2021 Bonds - refunding / PW Shops '414.540 571.716 1.686, 25( 2XX LTGO Debt Service Funds - 6,179,070 5,636,334 11,815,404 213 UTGO Bonds 314,818 4,487,175 4,813,175 9,615,168 206 LID Guaranty 758,958 3,000 3,000 764,958 233 2013 LID 586,678 525,000 504,000 1,615,678 301 Land Acquisition, Recreation & Park Dev. 3,751,186 487,250 454,000 4,692,436 302 Facility Replacement 1,183,800 1,350,000 - 2,533,800 303 General Government Improvements 444,128 1,901,000 - 2,345,128 304 Fire Improvements - 300,000 300,000 600,000 305 Public Safety Plan 538,557 1,100,000 1,100,000 2,738,557 306 City Facilities 2,274,324 2,141,000 1,841,000 6,256,324 401 Water 4,690,562 7,728,000 9,737,000 22,155,562 402 Sewer 11,742,027 10,882,300 11,409,915 34,034,242 411 Foster Golf Course 1,505,043 2,294,500 2,294,500 6,094,043 412 Surface Water 5,944,369 11,367,500 11,081,375 28,393,244 501 Equipment Rental 4,322,760 2,237,991 1,384,788 7,945,539 502 Insurance Fund 764,171 6,204,342 6,204,342 13,172,855 503 Insurance - LEOFF 1 Fund 258,737 350,500 350,500 959,737 611 Firemen's Pension 1,543,370 75,500 75,500 1,694,370 Total $ 76,653,277 $ 142,541,862 $ 156,071,785 $ 375,266,924 23 EXPENDITURES 2023 Expenditures 2024 Expenditures 2024 Ending Fund Balance Total Expenditures 000 General $ 75,756,268 $ 77,992,440 $ 12,736,324 $ 166,485,032 101 Hotel/Motel 938,890 944,668 1,646,643 3,530,201 103 City Street 5,912,000 3,145,000 269,503 9,326,503 104 Arterial Street 6,149,662 19,209,451 5,390,366 30,749,479 105 Contingency -- 7,082,148 7,082,148 109 Drug Seizure Fund 266,008 279,297 121,211 666,515 200 LTGO Bonds 392,475 389,375 781,850 208 LTGO Bonds - 2017 (Public Safety Plan) 1,532, 700 1,534,450 3,067,150 209 LTGO Bonds - 2017 (Residential Street) 558,400 557,750 1,116,150 210 Limited Tax G.O. Refunding Bonds, 2003 - - 211 Limited Tax G.O. Refunding Bonds, 2008 - - - 212 Limited Tax G.O. Bonds, 2009A 376,876 376, 91,, 753,790 214 Limited Tax G.O. Bonds, 2010A - - - 216 Limited Tax G.O. Refunding Bonds, Valley Comm 217 2011 Refunding Bonds 218 2014 MPD - 219 LTGO - PSP/PW Shops 1,691,050 1,689,550 3,380,600 220 2020 Bonds - refunding 513,029 516,579 1,029,608 221 2021 Bonds-refunding/PW Shops 1,114,540 571,716 1,686,256 2XX LTGO Debt Service Funds 6,179,070 5,636,334 - 11,815,404 213 UTGO Bonds 4,485,975 4,811,975 317,218 9,615,168 206 LID Guaranty -- 764,958 764,958 233 2013 LID 525,000 504,000 586,678 1,615,678 301 Land Acquisition, Recreation & Park Dev. 931,250 1,179,000 2,582,186 4,692,436 302 Facility Replacement 300,000 200,000 2,033,800 2,533,800 303 General Government Improvements 2,345,128 - 2,345,128 304 Fire Improvements 300,000 300,000 - 600,000 305 Public Safety Plan 1,319,019 1,317,849 101,689 2,738,557 306 City Facilities 2,700,000 3,000,000 556,324 6,256,324 401 Water 9,191,362 9,852,599 3,111,601 22,155,562 402 Sewer 12,549,000 13,570,855 7,914,388 34,034,242 411 Foster Golf Course 2,312,871 2,441,024 1,340,148 6,094,043 412 Surface Water 12,409,424 11,792,110 4,191,711 28,393,244 501 Equipment Rental 3,210,844 3,076,219 1,658,476 7,945,539 502 Insurance Fund 6,060,861 6,506,054 605,940 13,172,855 503 Insurance - LEOFF 1 Fund 444,438 460,558 54,741 959,737 611 Firemen's Pension 62,000 62,000 1,570,370 1,694,370 Total $ 154,349,069 $ 166,281,432 $ 54,636,423 $ 375,266,924 24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE 2023- 2028 FINANCIAL PLANNING MODEL AND THE CAPITAL IMPROVEMENT PROGRAM FOR GENERAL GOVERNMENT AND THE CITY'S ENTERPRISE FUNDS. WHEREAS, when used in conjunction with the biennial City budget, the Capital Improvement Program (CIP) and the Financial Planning Model for the period of 2023- 2028 are resource documents to help plan directions the City will consider for the future; and WHEREAS, the Financial Planning Model and Capital Improvement Program are not permanent fixed plans, but are guidelines or tools to help reflect future goals and future resources at the time budgets are being planned; and WHEREAS, the commitment of funds and resources can only be made through the budget process; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City Council hereby adopts the 2023-2028 Financial Planning Model and accompanying Capital Improvement Program, incorporated by this reference as if fully set forth herein. Section 2. A copy of the 2023-2028 Financial Planning Model and accompanying Capital Improvement Program shall be kept on file electronically by the City Clerk and accessible from the City's website in accordance with Washington State records retention schedule requirements and City policy, and shall be made available to the public upon request. Section 3. The assumptions, revenues and expenditures will be reviewed and updated biennially, or as necessary, by the City Council. CC: Legislative Development\Financial Planning Model & CIP 10-03-22 GL:AY Review and analysis by Andy Youn Page 1 of 2 25 Section 4. The detail of Capital Improvement Program projects will be reflected in the published Financial Planning Model and Capital Improvement Program 2023-2028. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Thomas McLeod, Council President APPROVED AS TO FORM BY: Office of the City Attorney CC: Legislative Development\Financial Planning Model & CIP 10-03-22 GL:AY Review and analysis by Andy Youn 26 Filed with the City Clerk: Passed by the City Council: Resolution Number: Page 2of2 City of Tukwila City Council Finance & Governance Committee Meeting Minutes October24, 2022 - 5:30 p.m. - Hybrid Meeting; Duwamish Conference Room & MS Teams Councilmembers Present: Staff Present: De'Sean Quinn, Chair; Kate Kruller, Cynthia Delostrinos Johnson Vicky Carlsen, Rachel Bianchi, Tony Cullerton, Laurel Humphrey, Griffin Lerner, Brittany Robinson, David Cline, David Rosen I. BUSINESS AGENDA A. Tax Levy Legislation Staff is seeking approval of: 1. Ordinance levying the general taxes for 2023. 2. Ordinance increasing the regular tax levy for 2023. Committee Recommendation Unanimous approval. Forward to November 14, 2022 Committee of the Whole for Public Hearing. B. Resolution Authorizing an Interfund Loan for a Fire Engine Staff is seeking approval of a resolution authorizing a loan of up to $1,100,000 from the Sewer Fund to the General Fund, establishing interest rate and repayment schedule, to purchase a new fire engine. Committee Recommendation Unanimous approval. Forward to November 14, 2022 Committee of the Whole. C. Budget Legislation Staff is seeking Council approval of: 1. Ordinance adopting the 2023-2024 Biennial Budget 2. Resolution Adopting the 2023-2028 Financial Planning Model and Capital Improvement Program 3. Ordinance amending the 2021-2022 Biennial Budget Item(s) for follow-up: Provide information on how REET can be leveraged in the budget. Committee Recommendation Forward to November 14, 2022 Committee of the Whole for Public Hearings. D. Proposed Business & Occupation Tax Staff presented an overview of a proposed Business & Occupation Tax included in the Mayor's budget as a new revenue source to address maintenance of city services in the next biennium. 27