HomeMy WebLinkAboutFIN 2023-02-27 COMPLETE AGENDA PACKETCity of Tukwila
Finance and Governance
Committee
O Kate Kruller, Chair
O Kathy Hougardy
De'Sean Quinn
AGENDA
Distribution:
K. Kruller
K. Hougardy
D. Quinn
C. Delostrinos Johnson
T. McLeod
M. Abdi
T. Sharp
Mayor Ekberg
D. Cline
R. Bianchi
C. O'Flaherty
A. Youn
L. Humphrey
MONDAY, FEBRUARY 27, 2023 — 5:30 PM
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 LISTEN TO THIS
MEETING IS: 1-253-292-9750, Access Code 313004383#
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. Monthly General Fund update (December 2022).
Tony Cullerton, Deputy Finance Director
b. Capital facilities financing update.
Brandon Miles, Business Relations Manager
2. MISCELLANEOUS
a. Discussion only.
b. Discussion only.
Pg.1
Pg.7
Next Scheduled Meeting: March 13, 2023
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 & Governance Committee
FROM: Tony Cullerton, Deputy Finance Director
CC: Mayor Ekberg
DATE: February 27, 2023
SUBJECT: December 2022 General Fund Departmental (Preliminary) Budget -to -
Actuals Report
Summary
The purpose of the December 2022 General Fund Financial Report is to summarize for the City
Council the general state of departmental expenditures and to highlight significant items. The
following provides a high-level summary of the departmental financial performance.
The December 2022 report is based on financial data available as of February 16th, 2023, for the
period ending December 31, 2022. While this report includes the most recent financial activity,
the numbers are preliminary. Interfund activity, accruals, and general ledger clean up are part of
the year-end process and is currently being completed.
Expenditures
In past we have reported actual spending compared to the allocated budget. With this being the
final month of the year, our comparisons are with Actual Spending compared to the Annual
Budget.
General Fund departmental expenditures totaled $61.7 million through December, which is $3.9
million less than the annual budget of $65.6 million. Department 20, which is transfers to other
funds, totaled $10 million, which is $820,994 less than the annual budget. Transfers to capital
project funds are transferred to capital project funds as needed for cash flow purposes. Debt
service transfers are done quarterly. Department 20 is projected to end the year under budget
due to a handful of minor transactions. Examples include:
• Transfer to Fund 103 (Residential Streets) — General Governmental Improvements for
ARPA grant revenue was $82k under budget. This is due to less expenditures in fund 103
than expected.
• Transfer to Fund 104 (Arterial Streets) of $400k was not done since it was not necessary.
This was a budget transfer from the adopted budget, only required if the fund needed
additional resources.
• Transfer to and 305 Public Safety Plan was $167k less than budget. The cost of the
PSRFA engine wasn't known when budget amendments were completed.
1
INFORMATIONAL MEMO
Page 2
In total, the General Fund reported expenditures of $71.8 million, which is equivalent to 94% of
the annual budget at the completion of the year. All General Fund departments ended the year
below their YTD annual budget with the exception of Fire. As projected and previously reported,
Fire finished the year at 101.5% of budget resulting in an overage of $226,122.
Departmental Variances
Year to Date Department Expenditures Compared to Annual Budget Through December 2022:
2
BUDGET
ACTUAL
Allocated Budget
%
2022
2022
2020
2021
2022
vs Actual
Expended
EXPENDITURES BY DEPARTMENT
Annual
Allocated
OVER/(UNDER)
City Council
385,826
385,826
351,396
338,693
356,579
(29,247)
92.4%
Mayor's Office
2,565,927
2,565,927
2,280,110
2,152,513
2,181,540
(384,387)
85.0%
Administrative Services
5,869,141
5,869,141
4,751,297
5,005,893
4,775,222
(1,093,919)
81.4%
Finance Department
3,347,587
3,347,587
2,402,140
2,434,453
3,067,184
(280,403)
91.6%
Recreation Department / Parks Maintenance
5,083,108
5,083,108
4,273,655
4,225,108
4,821,837
(261,271)
94.9%
Community Development (DCD)
4,732,212
4,732,212
3,278,151
3,910,667
4,239,663
(492,549)
89.6%
Municipal Court
1,597,482
1,597,482
1,292,626
1,209,940
1,565,287
(32,195)
98.0%
Police Department
19,844,123
19,844,123
17,682,031
17,927,963
18,861,177
(982,946)
95.0%
Fire Department
14,772,033
14,772,033
12,850,658
13,471,379
14,998,155
226,122
101.5%
Public Works Dept / Street Maintenance
7,434,770
7,434,770
6,379,120
6,583,077
6,883,267
(551,503)
92.6%
Subtotal
65,632,209
65,632,209
55,541,184
57,259,686
61,749,909
(3,882,300)
94.1%
Non Departmental
10,885,754
10,885,754
4,862,449
5,644,523
10,064,760
(820,994)
92.5%
Total Expenditures
76,517,963
76,517,963
60,403,633
62,904,209
71,814,669
(4,703,294)
93.9%
% of Year 100.0%
2
INFORMATIONAL MEMO
Page 3
The graph below shows the Annual Budget to Actual Expenditures for the General Fund
departments.
City Council '
Mayor's Office MI
Administrative Services
Finance Department i
Recreation Department / Park Maintenance
Community Development (DCD) MEE
Municipal Court .
Police Department
Fire Department
Public Works Dept / Street Maintenance
0 3,000 6,000 9,000 12,000 15,000 18,000 21,000
Thousands
■ Actual Expenditures ■ Annual Budget
Per ordinance, the City adopts a biennial budget by fund. This is the required level of reporting
for external authoritative sources of oversight such as of the Washington State Auditor's office.
This level of reporting is also utilized for purposes of debt issuance and by other stake holders.
For managerial reporting and internal use, the City reports activity at the department level. This
provides more details and additional information used by decision makers within the city and those
charged with governess.
The table below reflects activity at the category level. While all five of the General Fund category
totals ended the year under budget, there were several line -item categories that finished the year
over budget. In an effort to provide an enhanced level of reporting, additional information is being
provided for category line items that ended the year with totals reflecting a budget overage of
more than 5% and $50,000.
3
INFORMATIONAL MEMO
Page 4
General Fund
City of Tukwila
General Fund Expenditures
Year -to Date as of Dec 31, 2022
% of Year
100.0%
Category: Overtime
Variance: 18.3% and $403,071
Explanation: We have been tracking Overtime throughout the year and projected this line item
to end the year over budget. The overage is offset by the reduction in Salaries. The relationship
can be explained by unfilled positions leading to a reduction in Salaries and resulting in increases
to Overtime due to existing staff maintaining service levels with reduced staff.
Category: Pension - LEOFF
Variance: 11.1% and $102,285
Explanation: The LEOFF Pension rate is a calculation of inputs shared between the State,
employer, and employee. The budget determination takes into consideration the calculated rate
with projected salaries. A primary contribution to the $69,381 overage was the reestablishment of
minimum staffing levels for Fire that was supported by ARPA funding, which took place after the
budget was established. Due to the Salaries & Benefit Category trending under budget, a budget
amendment was not considered for this line item.
4
BUDGET
ACTUAL
COMPARISON OF RESULTS
2022
Annual
2022
Allocated
2020
2021
2022
Allocated Budget
vs Actuals
OVER/(UNDER)
% Change
Expended
2020/2021
2021/2022
511 Salaries
32,902,451
32,902,451
28,119,885
27,887,462
30,114,781
(2,787,670)
91.5% 2,227,319
8.0%
512 Extra Labor
584,220
584,220
131,789
206,427
404,565
(179,655)
69.2% 198,138
96.0%
513 Overtime
2,200,115
2,200,115
1,367,623
2,274,124
2,603,186
403,071
118.3% 329,062
14.5%
515 Holiday Pay
515,500
515,500
443,224
429,309
490,172
(25,328)
95.1% 60,863
14.2%
521 FICA
2,276,955
2,276,955
1,739,528
1,774,345
1,917,780
(359,175)
84.2% 143,436
8.1%
522 Pension-LEOFF
920,517
920,517
1,020,215
953,421
1,022,802
102,285
111.1% 69,381
7.3%
523 Pension-PERS/PSERS
1,494,905
1,494,905
1,662,169
1,518,973
1,469,268
(25,637)
98.3% (49,704)
(3.3%)
524 Industrial Insurance
876,892
876,892
859,956
892,567
689,029
(187,863)
78.6% (203,538)
(22.8%)
525 Medical & Dental
7,551,216
7,551,216
6,486,004
6,901,878
7,312,010
(239,206)
96.8% 410,132
5.9%
526 Unemployment
0
0
93,070
45,019
37,205
37,205
- (7,813)
(17.4%)
528 Uniform/Clothing
8,525
8,525
4,734
6,732
9,085
560
106.6% 2,352
34.9%
Total Salaries & Benefits
49,331,296
49,331,296
41,928,197
42,890,258
46,069,884
(3,261,412)
93.4% 3,179,626
7.4%
531 Supplies
950,636
950,636
567,124
668,288
607,654
(342,982)
63.9% ($60,634)
(9.1%)
532 Repairs & Maint Supplies
299,025
299,025
313,144
254,967
382,733
83,708
128.0% $127,766
50.1%
534 Resale Supplies
10,000
10,000
235
0
859
(9,141)
8.6% $859
Null
535 Small Tools
41,250
41,250
133,261
107,173
175,409
134,159
425.2% $68,236
63.7%
536 Technology Supplies
13,000
13,000
52,295
70,391
96,274
83,274
740.6% $25,882
36.8%
537 Fleet Supplies
3,000
3,000
12,749
3,787
6,687
3,687
222.9% $2,900
76.6%
Total Supplies
1,316,911
1,316,911
1,078,807
1,104,606
1,269,615
(47,296)
96.4% $165,010
14.9%
541 Professional Services
7,575,918
7,575,918
6,228,735
6,683,905
6,697,140
(878,778)
88.4% $13,235
0.2%
542 Communications
458,739
458,739
481,591
448,927
515,745
57,006
112.4% 566,818
14.9%
543 Professional Development
252,921
252,921
404,980
394,404
390,831
137,910
154.5% ($3,573)
(0.9%)
544 Advertising
40,250
40,250
19,183
21,629
44,856
4,606
111.4% $23,227
107.4%
545 Rentals
478,484
478,484
549,703
426,952
320,578
(157,906)
67.0% ($106,374)
(24.9%)
546 Technology Services
348,291
348,291
783,678
888,918
807,405
459,114
231.8% ($81,512)
(9.2%)
547 Utilities
2,034,285
2,034,285
1,820,212
2,251,250
2,363,986
329,701
116.2% $112,735
5.0%
548 Repairs & Maint Services
2,185,367
2,185,367
1,801,240
1,768,899
2,348,284
162,917
107.5% 5579,385
32.8%
549 Miscellaneous
879,747
879,747
439,364
243,434
620,147
(259,600)
70.5% $376,713
154.7%
Total Services
14,254,002
14,254,002
12,528,686
13,128,317
14,108,972
(145,030)
99.0% 980,655
7.5%
561 Capital Outlay-Land0
0
0
0
893
893
- 0
-
563 Other Improvements
0
0
0
12,331
0
0
- 0
-
564 Machinery & Equipment
730,000
730,000
5,495
124,174
300,544
(429,456)
41.2% 176,370
142.0%
Total Capital Outlay
730,000
730,000
5,495
136,506
301,437
(428,563)
41.3% 164,932
120.8%
750 Transfers Out
10,885,754
10,885,754
4,862,449
5,644,523
10,064,760
(820,994)
92.5% 4,420,237
78.3%
Total Non Operating Expense
10,885,754
10,885,754
4,862,449
5,644,523
10,064,760
(820,994)
92.5% 4,420,237
78.3%
TOTAL EXPENDITURES
76,517,963
76,517,963
60,403,633
62,904,209
71,814,669
(4,703,294)
93.9% 8,910,460
14.2%
% of Year
100.0%
Category: Overtime
Variance: 18.3% and $403,071
Explanation: We have been tracking Overtime throughout the year and projected this line item
to end the year over budget. The overage is offset by the reduction in Salaries. The relationship
can be explained by unfilled positions leading to a reduction in Salaries and resulting in increases
to Overtime due to existing staff maintaining service levels with reduced staff.
Category: Pension - LEOFF
Variance: 11.1% and $102,285
Explanation: The LEOFF Pension rate is a calculation of inputs shared between the State,
employer, and employee. The budget determination takes into consideration the calculated rate
with projected salaries. A primary contribution to the $69,381 overage was the reestablishment of
minimum staffing levels for Fire that was supported by ARPA funding, which took place after the
budget was established. Due to the Salaries & Benefit Category trending under budget, a budget
amendment was not considered for this line item.
4
INFORMATIONAL MEMO
Page 5
Category: Total Supplies
Variance: Under budget
Explanation: The Total Supplies category ended the year under budget. Three accounts within
the Supplies category exceeded the budget by more than 5% and $50,000. This is due to the
classification of budget allocation. The three accounts that exceeded budget (Repairs &
Maintenance Supplies, Small Tools, & Technology Supplies) combined, totaled $298,075 over
budget. This is offset by Supplies (531) finishing the year $349,283 under budget, suggesting that
a portion of the three account's budget was allocated to Supplies.
Category: Total Services
Variance: Under budget
Explanation: The Total Services category ended the year under budget. Four accounts within
the Services category exceeded the budget by more than 5% and $50,000. This is attributed to a
budget classification allocation. The five accounts that exceeded budget (Communications,
Professional Development, Technology Services, Utilities, and Repairs & Maintenance Services)
combined, totaled $1,146,648 over budget. This is offset by Professional Services and
Miscellaneous ending the year $919,275 & $267,708 respectively, under budget, as a result of a
portion of the four account's budget being allocated to Professional Services and Miscellaneous.
5
6
W
i City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance and Governance
FROM: Brandon Miles, Business Relations Manager/Property Management Lead
Pete Mayer, Parks and Recreation Director
Vicky Carlsen, Finance Director
David Cline, City Administrator
CC: Mayor Ekberg
DATE: February 21, 2023
SUBJECT: Public Works Operations Campus Phase 2 and Future Capital Facilities
Planning
ISSUE
This informational memo provides a financing update on the implementation of the public safety
plan, including Public Works Shops Phase 2 (hereinafter "Public Works Phase 2") design
contract, and to inform the City Council on the next phases of city facilities planning.
The goal of this memo is to outline the funding that the City Council has budgeted for the design
of the Public Works Phase 2 and to discuss long term capital facilities planning.
BACKGROUND
The following provides a brief overview of the City's recent investment in public facilities over
the last 15 years.
Development of the Public Safety Plan
In 2008 the City completed a comprehensive seismic study of city buildings. This report found
that several buildings, including fire stations and public works shops, would be unusable after an
earthquake. It was this study that was the impetus for the City to begin examining how to invest
in upgraded facilities, specifically public safety buildings (fire stations, police, courts, emergency
management and public works functions). This seismic report was recently updated in 2022.
In 2015, after a two-year process, the City Council was presented a report entitled, "Investing in
Tukwila: Essential Governmental Services Facilities Plan 2015-2040." The plan recommended
the construction and/or replacement of several public safety buildings, including a new justice
center to house police, emergency management and courts; the replacement of three fire
stations; and a combined public works operations facility. The plan also included
recommendations for City Hall and the 6300 building.
At the end of 2015 the community Facilities Steering Committee presented its final report to the
City Council, which recommended a public safety facilities ballot measure. In 2016 the City
Council adopted the "Public Safety Plan" to prioritize the replacement of buildings for first
responders and fire apparatus, which included:
• the construction of three replacement fire stations,
• a new justice center (police, emergency management and court),
• a consolidated public works shop, and
• a funding plan for 20 years of fire apparatus and equipment.
In November 2016 Tukwila voters approved the public safety plan bond measure with 60.5%
approval. Funds from the bond measure would be used for the new fire stations, fire equipment
7
INFORMATIONAL MEMO
Page 2
and apparatus and the justice center. Funding for the public works facilities would come from a
variety of sources, including general fund and utility funds.
In 2018, this financing and expenditure plan was updated with the D-20 Model, discussed
further below.
In 2018 the City began to identify and acquire land for the public safety plan, based upon the
recommendations of the community Siting Advisory Committee. Existing city owned land was
used for two of the new fire stations; the City assembled land on Tukwila International Blvd for
the justice center; and the City acquired three parcels in the north end of the City for a
consolidated public works shop. Public Works Operations Campus Phase 1 (hereinafter "Public
Works Phase 1") entailed the construction of the west side of the property and moving the City's
fleet and facilities functions from George Long to the new site. Public Works Phase 2 will be the
work on the east side of the property and will eventually allow the City to move the street and
utilities functions from the Minkler Shops to the site.
In 2019 construction of the two replacement fire stations and the justice center commenced.
The City Council also adopted Phase 1 of the Public Works operations campus.
The Justice Center and Fire Station 51 went operational in 2020 and Fire Station 52 become
operational in 2021. The Fleet and Facilities building became operational in 2022 (Public Works
Phase 1). In 2022, the City Council authorized the test to fit work for the eastern portion of the
Public Works Operations Campus, which will be concluded in March of 2023. Funding for
design of the Public Works Operations Campus was adopted in the 2023-2024 Budget and
construction costs were included the 2023-2028 Capital Improvement Plan starting in 2025.
Financing the Public Safety Plan- the D-20 Model
In 2018, due to cost escalation from market conditions and initial estimates based on incomplete
data, the City created options for the public safety pan. Throughout the first half of 2018, the
City Council's Finance Committee, together with staff, deliberated on a variety of financing
options (A, B, 01, C2 and D) to support the Public Safety Plan. In June 2018, the City Council
adopted their recommendation of option D-20 which directed the:
• Construction of two new fire stations (51 & 52) and the Justice Center.
• Dedication of $30 million for land acquisition, building upgrades and master planning for
public works shops.
• Fire apparatus and equipment funding for ten years.
• Issuance of 20 -year bonds.
• Use of a variety of financial sources (e.g. Limited Term General Obligation Bonds
(LTGO), Fire impact fees, land sales and one-time funds, ongoing REET 1, General
Fund,)
8
INFORMATIONAL MEMO
Page 3
This long-range model (2018-2039) has been updated several times to reflect changing
revenues and expenditures.
1. All major projects in the D-20 model are now complete as originally anticipated in
2018. The following is a basic overview of the revenue and expenditures to date in the
D-20 Model. The work outlined below includes all land acquisition costs (Justice Center,
Fire Station 54, and Public Works Operations Campus) construction to date for Fire
Stations 51 and 52, Justice Center and Public Works phase 1 (fleet and facilities);
interim improvements on Minkler; planning and design for the Teen/Senior
Intergenerational Center; and planning and test to fit associated with Public Works
Phase2. The only remaining items are finishing the roof and siding updates for the
Public Works Phase 1 and the final payment for the 2022 fire engine, which is expected
in 2025.
2. The D-20 Model accounted for all financial aspects of these projects. Data
incorporated two capital project funds, 305 and 306 as well as all debt service funds and
other funds that contributed funding sources (general fund, 301, utility funds). Note,
revenues are forecasted to be higher than expenditures due to financing costs.
3. Other Changes. Sales Tax Mitigation funds were significantly reduced from 2019 to
2020 due to the loss of ongoing Sales Tax Mitigation payments. Council adopted
CARES funding for project costs associated with COVID supply chain delays and added
Teen/Senior Center planning. Additional general fund and utility fund payments were
adopted in 2022 to continue the public safety plan efforts for a consolidated public works
shop.
4. Assuming a successful annexation vote, capital acquisition responsibilities for
future fire equipment and apparatus will shift to PSRFA in 2025. The Fire Authority
would then use its fire benefit charge for future purchases to serve the Tukwila
community.
a. Portion of the proceeds from completed land sales (Travelers Choice and Health
Point) and approved (still pending) George Long sale are currently budgeted to
support remaining public safety plan financing requirements as well as Public
Works Phase 1 and 2.
b. The updated model (December, 2022) removes future land sales.
c. Future City Council direction will be needed on use of land revenue (e.g. lease or
sale) for capital facility planning.
9
INFORMATIONAL MEMO
Page 4
D-20 MODEL FINANCIAL SNAPSHOT 2018-2022
Original
Updated
Updated
Updated
June 2018
Dec 2019
Dec 2020
Dec 2022
EXPENDITURES
Fund 305: Public Safety Plan
$ 114,730,235
$ 122,627,139
$ 120,510,023
$ 109,804,786
Justice Center
$ 68,570,005
$ 66,864,711
$ 65,747,697
$ 65,995,940
Fire Stations
$ 30,334,435
$ 39,936,632
$ 38,936,530
$ 37,791,730
Fire Equipment/Apparatus/Financing
$ 15,825,796
$ 15,825,796
$ 15,825,796
6,017,117
Fund 306: City Facilities
$ 30,000,000
$ 35,700,000
$ 36,200,000
$ 43,150,491
PW Shops Phase I
$30,000,000
$35,700,000
$35,700,000
$36,405,462
Minkler Improvements
$500,000
$500,000
Teen/Senior Center
$395,030
PW Operations Campus Phase 2
$5,850,000
TOTAL
$144,730,235
$158,327,139
$156,710,023
" $152,955,277
REVENUES
Voted Bonds (UTGO)
$ 77,385,000
$ 77,997,026
$ 77,997,026
$ 77,997,026
Councilmanic Bonds (LTGO)
$ 40,000,000
$ 45,500,600
$ 45,500,600
$ 45,500,600
Fire Impact Fees (Tukwila South- FS 51)
$ 4,750,000
$ 4,750,000
$ 4,750,000
$ 4,750,000
Fire Impact Fee- ongoing
$ 8,517,000
$ 9,817,000
$ 9,497,000
$ 8,244,202
Fund 301 Transfer- REET Funds
$ 3,000,000
$ 3,000,000
$ 3,000,000
$ 3,500,000
Land Sales
$ 15,038,000
$ 13,053,090
$ 13,518,000
3,014,845
REET 1- Ongoing Support
$ 12,813,091
$ 12,813,091
$ 12,852,409
$ 11,000,000
Sales Tax Mitigation
$ 4,017,425
$ 665,909
$ 665,909
Cares Act
$ 300,000
$ 497,247
Investment Earning
$ 707,845
$ 1,480,824
$ 1,725,661
$ 1,626,356
Project Contribution (TeenSenior)
$ 600,000
Project Contribution (General Fund)
$ 141,854
$ 2,991,854
$ 2,991,854
$ 5,950,954
Project Contribution (Utility Fund)
$ 141,854
$ 3,791,854
$ 4,291,854
$ 7,791,854
TOTAL
$ 162,494,644
$ 179,212,764
$ 177,090,313
$ 171,138,993
Completing the Public Safety Plan — Design and Construction of Public Works Phase 2
The last remaining item in the Public Safety Plan is Public Works Phase 2 and to move city
operations from the Minkler Shops and the Longacres site. The City is still providing critical
public works activities at the Minkler Shops. As part of the Public Safety Plan the City identified
a goal to move all critical facilities out of flood prone areas. Minkler Shops is located directly
behind a levee that has significant maintenance concerns. There is a risk of levee failure in the
event of a high-water event or earthquake.
Public Works has moved from George Long into Public Works Phase 1. On November 1, 2023
the City takes ownership of the eastside of the property and the Council adopted a lease
agreement until March 1, 2025 with the current tenant. The City Council authorized the "test -to -
fit" work which developed design options for the entire combined public works site. The "test -to -
fit" will provide the City better cost estimates for the final phase of the project.
In March 2023, the "test -to -fit" will be completed and the City Council will be briefed on cost
estimates for the full buildout and completion of Public Works Phase 2. The City Council will be
asked to move forward with design. The 2023-2024 budget includes $5.85 million for the City to
complete the design work and permitting for Public Works Phase 2, with construction
anticipated to begin in May of 2025.
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The Council adopted "2023-2028 Financial Planning Model and Capital Improvement Program"
includes $54 million for construction costs, with a 50/50 split between the utility funds and
general fund.
Future Capital Facilities Planning Efforts
Over the last 15 years the City has made significant investments in its facilities and conducted
numerous studies and assessments. New facilities have replaced structures that were more
than 40 years old, and which had long exceeded their functional usefulness. Prior to the 2015
Facilities Plan, the City lacked an overall comprehensive strategy to address City facilities and
future facility planning. This reality has led to inefficient and, in some cases unsafe facilities.
The Public Safety Plan developed and executed in 2016 resulted in first responders moving into
new, efficient buildings that allow for the better provision of services for our community.
The next phase of capital facilities planning is getting underway that will include a new facilities
assessment and space utilization study, a facilities maintenance plan and a comprehensive real
estate strategy. With the critical public safety infrastructure needs being met through the
completion of the Public Safety Plan, this effort will focus on remaining public facilities that
include:
• 6300 Building
• City Hall
• Tukwila Community Center
• Parks Maintenance Shop, and
• Foster Golf Links Clubhouse.
Together, these actions will be reflected in an updated Capital Facilities Element, a component
of the City's Comprehensive Plan. This additional work occurring over the biennium will inform
the 2025-2026 budget development process and will have an impact on future capital facilities
decisions. The following is a list of planning efforts, most of which are funded in the 2023-2024
Budget:
1.
a. Updated Facilities Assessment and Space Needs (2023-2024)
Study will follow up on the 2013-2015 study to examine facilities and space
needs for city operations. The study will need to take into the account the
impacts of the pandemic and the ability of the City provide services in a hybrid
model.
b. Facilities Maintenance Plan (2023)
When maintenance is deferred or delayed it can increase the overall cost of
maintaining and operating facilities. Additionally, poorly maintained facilities and
their systems can have higher operating costs. The Facilities Maintenance Plan
will include a schedule for the maintenance and replacement of critical
components of facilities (HVAC, roof, etc.). This Plan will also allow the City to
make an annual budget reserve allowance for these future costs.
2023-2024 Budget: included in $350,000 in Fund 303
2. Comprehensive Plan Update (2023-2024)
The City has started the Comprehensive Plan Update, which includes a required Capital
Facilities Element. The City will need to update the Element that was included as part of
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the last Comprehensive Plan process. The Capital Facilities Element lays the
groundwork for the Capital Facilities Plan.
2023-2024 Budget: Several budgeted and grant funded programs across departments
including:
o $130,000 grant funded project for middle housing.
o $300, 000 + Transportation Element of Comprehensive Plan.
3. Financial Sustainability Plan (2023-2024)
The financial sustainability plan is intended to be a comprehensive review of all City
funding and needs across the City; including capital and operational needs. The goal is
to gain a better understanding of how to make policy decisions that set the City up for
long-term financial success. The plan is to complete this project in time for the 2025-
2026 biennial budget process so that the results of this study can be utilized as another
tool in the toolbox for decision making.
2023-2024 Budget: $200, 000 in the Finance Department budget.
4. Real Estate Strategy (2023-2024)
The City would benefit from a comprehensive understanding of its current and future real
estate needs. A real estate strategy can help to identify how the City can best utilize
existing land it owns, monetize its land to help funding city operations, and to identify
possible future long term real estate needs.
2023-2024 Budget: No funds budgeted.
DISCUSSION
There are some key takeaways from the past fifteen years of efforts around facility planning
which has created a good foundation for future planning.
• The 2008 Seismic Study (updated in 2022) began the city's facility assessment process.
• The 2015 Facility Plan laid the groundwork for a comprehensive facility planning effort.
• The 2016 Public Safety Plan and the D-20 Model (2018) has soundly guided the city to
provide safe, efficient buildings for first responders.
• In 2023 all major projects are complete as planned from the D-20 model.
This foundation has helped move the City to the next phase of facility planning efforts which
include:
• Public Works Shops Phase 2 is ready to move to design after the successful completion of
the "Test -to -Fit" phase. This effort is funded in the 2023-2024 Budget and planned for
Council action in March -April 2023.
• With the expected annexation to the PSRFA, acquisition of future fire apparatus will shift to
the PSRFA, which would free up future land sales for other public safety plan and facility
needs.
• Several significant planning efforts will be undertaken in 2023-2024 in preparation for the
2025-2026 Budget Process.
• The financing and tracking of what remains to be implemented as part of the Public Safety
Plan (Fund 305) can now be efficiently managed through the City's new Enterprise
Resource Program (ERP) financial system.
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• With the retiring of Fund 305 and the pending update to the City's Capital Facilities Plan,
future projects will be reflected in the 306 Fund- City Facilities with each project
independently accounted for.
Next Steps
Staff will be preparing a series of briefings and future actions for Committee and Council
consideration.
Public Works Shops Phase 2 Design
In March 2023, the council will be reviewing the 'test to fit' concept options for the entire
combined public works site with associated costs. Authorization will be sought to enter into a
design contract that will subsequently produce progressive stages of design for the project
(schematic design, design development, and construction documents)- each stage offering
Council an "off -ramp"- an opportunity to refine or modify their guidance.
Facility Planning Efforts and Long Term Capital Financing (2023-2024)
The City Council will be reviewing and authorizing contracts for the budgeted planning efforts in
2023, including the facility plan and financial sustainability plan. The next phases of capital
facilities and financial sustainability planning will inform the development of the 2025-26 budget.
As part of the 2025-26 budget process the City Council will need to decide on what to do
with land sale revenue.
FINANCIAL IMPACT
None at this time. Future decisions will include using budgeted resources for design and
planning efforts.
RECOMMENDATION
Discussion only.
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