HomeMy WebLinkAboutFSC 2023-11-07 Agenda PacketCITY OF TUKWILA
FINANCIAL SUSTAINABILITY PLAN
FINANCIAL SUSTAINABILITY COMMITTEE MEETING #1 1 NOVEMBER 7, 2023
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MEETING AGENDA
■ Welcome (10 mins)
■ Introductions (30 mins)
■ Project Overview (30 mins)
■ Community Context (40 mins)
■ Meeting Close (10 mins)
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INTRODUCTIONS
In no more than 2 minutes, please share:
• Your name and relationship to Tukwila.
• If you're a resident, how long have you
lived here? What neighborhood do you
live in and what communities do you feel
part of?
• If you're a business representative, what's
the name of the business? What does it
do and where is it located?
• Your motivation for joining the Financial
Sustainabilty Committee.
Committee Members
Arta Baharmast, General Manager, Westfield Southcenter
Randy Boyd, Resident
Phillip Combs, COO, Segale Properties
Jacob Halverson, Resident
Kathy Hougardy, Resident as of January
Annie McGrath, CEO, Seattle Southside Chamber
Krysteena Mann, Resident
Karin Masters, Resident
Amber Meza, Resident
Abdiwali Mohamed, Owner, Abdiwali Mohamed CPA
Diane Myers, Resident
David Puki, Resident
Verna Seal, Resident
Greg Sherlock, Resident
Alternate
Peggy McCarthy, Resident
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INTRODUCTIONS
Key City Staff
■ David Cline, City Administrator
■ Pete Mayer, Acting Deputy City Administrator and Parks &
Recreation Director
■ Vicky Carlsen, Finance Director
■ Laurel Humphrey, City Council Legislative Analyst
BERK Consulting (lead for Financial Sustainabilty Plan)
■ Brian Murphy, Project Manager
■ Katherine Goetz, Financial Sustainabilty Plan Lead
■ Ariel Hsieh, Analyst
FCS GROUP (lead for Utility Rate Study)
■ John Ghilarducci, Utility Rate Study Lead
■ Zechariah Hazel, Analyst
Tukwila City Council
■ Tosh Sharp, Position 1
■ Kathy Hougardy, Position 2
■ Thomas McLeod, Position 3
■ Cynthia Delostrinos Johnson, Position 4 and
Council President
■ Mohamed Abdi, Position 5
■ Kate Kruller, Position 6
■ De'Sean Quinn, Position 7
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PROJECT OVERVIEW
1. Project Purpose, Meeting Schedule, and
Report Outline
2. Committee Charge
3. Direction from City Council:
Process Guidance and Evaluative Criteria
4. Proposed Committee Agreements
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1. PROJECT PURPOSE
Key questions to be answered include:
• How can the City best use its limited financial resources to meet the priorities of the community? Is
the City using the right tools to achieve long-term financial sustainability?
• How should the City's programs and services be calibrated with the community members' desires
and willingness to pay?
• How can impacts to residents and businesses be most equitably balanced, including consideration of
the range of household wealth and business size present in Tukwila?
The City is implementing two interrelated planning processes to answer these questions and establish
the City's long-range financial strategy: a Financial Sustainability Plan and a Utility Rate Study.
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PROJECT PURPOSE
Community context
COVID-19 Pandemic: declining "Bridge Budget": use of
revenues and reduced service levels one-time funds
2020-2022
City strategies
Additional planning efforts
Economic recovery and additional Community growth and
property tax capacity service level adjustments
2023-2024 BUDGET 2025-2026 BUDGET
1
Adoption of Business
& Occupation Tax
FUTURE FORECAST
Annexation into Puget Sound Strategies for future financial
Regional Fire Authority
sustainability
Economic Golf Course and Capital Improvement Comprehensive Plan
Development Community Center Plan and Facility Periodic Update
strategy business planning Condition Assessment
PROJECT
PURPOSE
What does the
community desire?
What is the community
willing to pay?
How should programs
and services be
balanced with
community values?
Community
Values
Projected
Operating
and Capital
Needs
Financial
Sustainability
Plan
Impact on
Taxpayers
How can the City best
use its financial
resources?
J
Projected
Revenues
and
Revenue
Mix
How can impacts to
residents and
businesses be most
equitably balanced?
....]Is the City using the
right tools?
J
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ANTICIPATED MEETING SCHEDULE
• Meeting 1: Kickoff and Context (November)
• Meeting 2: City Programs and Services (December)
• Meeting 3: City Programs and Services, continued (January)
Update to City Council (mid -January)
• Meeting 4: Options Discussion (January/February)
4 Update to City Council
• Meeting 5: Recommendations Discussion (February/March)
4 Final delivery of recommendations to City Council (April)
Between Meeting 4 and Meeting 5,
the City could offer opportunities
for broader community
engagement and/or additional
business engagement, which would
shift the timeline for Meeting 5 and
conclusion of the work.
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ANTICIPATED REPORT OUTLINE
Introduction and Background
• Project purpose and current context in Tukwila that is impacting long-term financial sustainability.
About the Financial Sustainability Committee
• Committee charge and formation; summary of meeting schedule, materials, and discussion topics.
The City's Financial Condition
• General funding financial forecast, assumptions and major drivers; community needs and priorities; programs and services; capital
needs; short- and long-term financial challenges, with benchmarking.
Options
• Summary of options and evaluation.
• Recommendations and Next Steps
• Short- and long-term strategies for Council consideration, including both revenue- and cost -side strategies; description of how the
plan will be used in the future.
Appendices: Community Profile, Peer Benchmarking, and others to be determined.
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2. FINANCIAL SUSTAINABILITY COMMITTEE CHARGE
• Representatives of Tukwila's residential and business communities.
• Input of the Committee is intended to advise the consulting team and City Council.
Members of the Financial Sustainability Committee will:
• Review information about the City's financial condition and factors that will impact future revenues
and expenditures.
• Review options for enhancing the City's financial sustainability.
• Prepare recommendations for the Mayor and City Council.
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2. DIRECTION FROM CITY COUNCIL
Process Guidance
The process for developing the Financial
Sustainability Plan must be:
■ Inclusive.
Open, Accessible, and Fair.
• Tukwila -specific.
■ Analytically -based.
■ Transparent.
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Evaluative Criteria
Ensure that final recommendations balance the
City's financial sustainability, the provision of City
services that meet community expectations, and
equity in costs and services.
Options and strategies should be evaluated against at
least the following criteria:
■ Equity.
• Cost.
■ Magnitude
and Growth.
• Stability.
■ Sustainability.
■ Alignment with
Priorities.
• Feasibility.
• Impact to Other
Services.
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4. PROPOSED COMMITTEE AGREEMENTS:
A. Operating Guidelines
What would you
add or change?
■ Regular meeting time and schedule of dates.
■ Meetings will start and end on time, with a strong preference for in -person participation.
■ Meeting summaries, including a list of members present.
■ Email for Committee coordination and sharing materials in advance of meetings.
• Substantive issues discussed in meetings rather than through e-mail.
• Committee members will direct any media inquiries to City staff.
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4. PROPOSED COMMITTEE AGREEMENTS:
B. Committee Member Responsibilities
1
What would you
add or change?
Individual Committee members are expected to:
• Prioritize consistent meeting attendance and join in -person whenever possible.
• We hope to have everyone attend every meeting.
• While we understand that unavoidable conflicts may happen, Committee members may miss no more than 2 meetings.
• Understand and articulate the project purpose and the Committee's charge.
• Serve as a resource to other members of the community.
• Prepare for Committee meetings.
• Communicate questions, issues, and suggestions to the project management team.
• Be productive and creative contributors.
• Participate in conversations respectfully and productively.
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4. PROPOSED COMMITTEE AGREEMENTS:
C. Committee Member Discussion Guidelines
What would you
add or change?
• Commit to collaboration, teamwork, and compromise to seek consensus on recommendations.
• Assume good intentions, listen to understand, and create space for others.
• Proactively share insights and opinions.
• Respect and acknowledge both differences and similarities.
• Recognize the validity and value of different perspectives.
• Allow other participants to have changes of opinion.
• Build on points of agreement and expect that Committee members may disagree on some ideas.
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4. PROPOSED COMMITTEE AGREEMENTS:
D. Framework for Decision Making
What would you
add or change?
■ Options will be assessed based on Evaluative Criteria established by the City Council and endorsed
by the Committee.
■ Our goal is unanimous consensus, meaning that all Committee members understand and can
support, or live with, the guidance to be shared with the City, with the objective of achieving unity if
not complete unanimity.
• Recommendations may be made by majority option, with the report describing the range of
perspectives.
• Members may need to consult with their organizations or communities before making or endorsing
recommendations.
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COMMUNITY CONTEXT
A PREVIEW: COMMUNITY PROFILE HIGHLIGHTS
■ Tukwila is a growing community, with more diversity and younger residents than King County. Tukwila
School District has students that represent many cultures and speak more than 80 world languages.
■ Tukwila has a higher share of low-income households than King County, particularly among renters.
■ Tukwila residents identify as less healthy than residents in King County and Washington State.
■ Tukwila has a very high jobs to population ratio, with a strong commercial sector that includes retail sales
and manufacturing. Employment growth in Tukwila has been slower than peer cities, but jobs are projected
to grow over the next two decades.
■ Most businesses in Tukwila have 100 or fewer employees and most jobs are in the services, retail, and
manufacturing sectors. Most workers in Tukwila commute from outside the City. This influx of workers, along
with daytime visitors, may drive up the demand for public services.
■ More than half of Tukwila's General Fund revenues are from property and sales taxes. With the Southcenter
mall, a majority of Tukwila's taxable retail sales are attributed to consumer shopping.
■ Tukwila's largest General Fund expenditure is toward Police services, which is similar to peer cities.
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POPULATION
Tukwila is growing and
serves an outsized "daytime
population" of shoppers and
workers
■ Tukwila's population
estimated to grow from
22,780 residents in 2023 to
36,005 residents in 2044
■ About 150,000 additional
individuals come into the
City for work and shopping
■ Tukwila has grown faster
than peer cities
Total Population Growth
1 6%
14%
1 2%
10%
8%
6%
4%
2%
Annual Population Growth, Tukwila, Peer Cities, and King County, 2016-2023
2017 2018 2019 2020
Yea r
2021 2022
Tukwila: 15.0%
King County:7.9%
Kent: 8.6%
SeaTac: 8.2%
Burien: 5.7%
Renton: 4.7%
2023
Sources: Washington Office of Financial Management, 2023; PSRC, 2023.
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DEMOGRAPHICS
Tukwila is more racially
diverse and younger than
King County
■ 46% of Tukwila residents speak
a language other than English
at home; 29% in King County
■ Tukwila has a higher share of
residents in the 10-14 and 25-
29 age range than the County
overall
6%
19%
Tukwila
Racial Composition of Tukwila and King County, 2021
Two or more races
■ Some other race alone
■ Native Hawaiian and Other Pacific Islander alone
Asian alone
■ American Indian and Alaska Native alone
■ Black or African American alone
6%
King County
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates.
Note: Labels are suppressed for shares under 1%.
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HOUSEHOLDS
Tukwila households are
larger and more
multigenerational than King
County
• Tukwila has a higher share
of households with three or
more people
Percent of Households
40%
35%
30%
25%
20%
15%
10%
5%
0%
Household Profile by Number of People, Tukwila and King County, 2021
1-person 2-person 3-person 4-person 5-person 6-person 7+ person
household household household household household household household
■ King County - Tukwila
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates.
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HOUSING AND
INCOME
Tukwila has a higher share
of low-income households,
especially among renters,
than peer cities and King
County
• 70% of Tukwila households
have incomes below the
City's median family
income, compared to 46%
of County residents).
• 79% of Tukwila renters have
an income below the City's
median family income
Renter Households by Median Family Income, Tukwila, Peer Cities, and King County, 2020
15%
13%
27%
Tukwila
10%
25%
20%
Burien
12%
14%
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Kent
16%
18%
17%
r
9%
20%
20 %
22%
11%
18%
27%
1
39%
11%
14%
15%
Renton Lynnwood SeaTac King County
■ Above Median Income (> 100%)
Moderate Income (80-100%)
Low -Income (50-80%)
Very Low -Income (30-50%)
• Extremely Low -Income (<30% MFI)
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020.
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EMPLOYMENT
Tukwila is a regional job
center, attracting many
employees from the region
■ Jobs projected to grow
1.5% annually over next 20
years.
Covered Employment to Population Ratio, Tukwila, Peer Cities, and King County, 2000-2022
Covere l Empl. f Population Ratio
3.00
2.50
2.00
1.50
1.00
1150,
0.00
2000 200.E 20 0 20 5 2020
Tukwila 2.03
SecnTflc: 1 .17
Rents 0. b.0
Kent: 0-5 2
E urien: 0.24
Sources: PSRC Covered Employment, 2023; Washington Office of Financial Management, 2023.
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EMPLOYMENT
Most Tukwila workers
commute from outside the
City, while most Tukwila
residents commute to other
cities for work
• Only 1.9% of Tukwila
workers also reside in the
City
• Over 37%of Tukwila
residents who work do so in
Seattle.
Where do Tukwila workers live?
CAI
rd
ror.glgate
eom s�
White
Rerimanrl
Samntamish
Black Diamond
Green Sid
1,4
Where Tukwila Workers Live
Pot of workers
ors
i Gee..
A
4 Miles
J
Where do Tukwila residents work?
Sources: U.S. Census LEND, 2019; CAI, 2022.
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EMPLOYMENT
Tukwila has many jobs in
small businesses and in
service, retail, and
manufacturing.
Tukwila Businesses by Size, 2021
0.1 % (3 Firms)
(54 Firms)
a
10%
(234 Firms).
43%
(1,019
Firms)
44%
(1,034
Firms)
Under 5 Employees
5 to 24 Employees
25 to 99 Employees
100 to 499 Employees
Over 500 Employees
Sources: Esri/DataAxle (2021); ACS; CAI, 2022.
Tukwila Covered Employment by Major Sector, 2021
6%
11%
32%
16%
18%
Tukwila
8%
4%
aI=
Burien
11%
Kent
4%
12%
8%
37%
23%
3%
5%
Renton
6%
7%
8%
50%
12%
7%
5%
6%
Sea Tac King County
• Education
• Government
• Wholesale / Transportation / Utilities
• Services
• Retail
• Manufacturing
• Finance / Insurance / Real Estate
• Construction / Resource
Note: Covered employment refers to jobs "covered" under the state's Unemployment Insurance
Program, and constitutes 85-90% of total employment. Labels suppressed for shares under 3%.
Source: PSRC Covered Employment, 2021.
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TUKWILAGENERAL
FUND REVENUES
The City is dependent on
property and sales tax, as
are peer cities
• New business and
occupation tax (B&O)
generates about 4% of
General Fund revenues
■ 64% of taxable retail sales
is from consumer shopping
Tax Revenues as a Share of All General Fund Revenues, Tukwila and Peer Cities, 2023
Tukwila
25 %
ail
4% 6%
Burien 25% 34% 5%
Kent
Lynnwood
Renton
SeaTac
14%
8%
26%
Nino
45%
20%
30%
38%
10%
21%
10%
12%
14%
41%
• Property Tax • Sales Tax B&O Tax Utility Taxes
Sources: City of Burien, City of Kent, City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023; BERK, 2023.
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PROPERTY TAX
BREAKDOWN
22% of total property tax paid
goes to the City of Tukwila
Large portions of property tax
revenue go to the State and
the school district
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Property Tax Distribution
City of Tukwila
WA State
King County
King County Library
Port of Seattle
Emergency Medical Service
Tukwila School District
Flood Control
Other
Total
2023 Levy Rate Percent of Total
$2.45
$2.31
$1.08
$0.26
$0.09
$0.21
$3.70
$0.07
$0.31
$10.49
23%
22%
10%
2%
1%
2%
35%
1%
3%
100%
Notes: The above example represents a property owner in the Tukwila School District.
Property owners that qualify for a senior/disabled tax exemption do not pay excess levies, or voter -approved levies,
and Part 2 of the state school levy.
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SALES TAX
BREAKDOWN
8% of total sales tax paid goes
to the City of Tukwila
The largest share goes to the
State
Sales Tax Distribution
WA State
City of Tukwila
King County
King County Criminal Justice
Regional Transit Authority
King County Transportation Benefit Area
Total
2023 Percent Percent of Total
6.50%
0.85%
0.25%
0.10%
1.50%
0.90%
10.10%
64%
8%
2%
1%
15%
9%
100%
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CITY SERVICES
• Tukwila's large influx of daytime
non-residents may increase
demand for public services
• In 2025, Puget Sound Regional
Fire Authority will provide
services directly to Tukwila (no
longer through a contract)
• Peer cities all receive fire and
emergency services from
regional fire authority or fire
district
• Burien and SeaTac also contract
for police services
n
Services and Providers, Tukwila and Peer Cities
Service/Category
Tukwila
Burien
Kent
Lynnwood
on
SeaTac
Population (2023)
22,780
52,560
139,100
40,790
107,900
31,740
FTEs (General Fund)
246
89
745
290
651
156
Executive
Mayor/
Administrator
City Manager
Mayor/
Administrator
Mayor/
Administrator
Mayor/
Administrator
City Manager
City Council
✓
✓
✓
V
V
✓
Finance
✓
✓
✓
V
V
✓
Administration
V
✓
✓
V
✓
✓
Parks & Recreation
✓
✓
✓
✓
✓
✓
Community
Development
✓
✓
✓
✓
✓
✓
Municipal Court /
Legal
✓
✓
✓
✓
✓
✓
Police
,/
King County
Sheriff's Office
✓
✓
✓
King County
Sheriff's Office
Public Works
✓
✓
✓
✓
✓
✓
Fire
Regional Fire
Authority
Fire District
Regional Fire
Authority
Regional Fire
Authority
Fire Authority
Regional Fire
Authority
Water
✓
Local Districts
✓
✓
✓
Local Districts
Sewer
✓
Local Districts
✓
✓
✓
Local Districts
Surface Water
✓
✓
✓
✓
✓
✓
K-12 Public
Education
Local Districts
Local Districts
Local Districts
Local Districts
Local Districts
Local Districts
Note: Some properties in Tukwila, Kent, and Renton are serviced by other local utility providers.
Sources: City of Burien, City of Kent, City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023; BERK, 2023. 29
TUKWILAGENERAL
FUND EXPENDITURES
Public safety makes up a
large share of the City's
General Fund budget
■ Police Department has largest
number of full-time positions
■ Daytime visitors increase
demand for Tukwila police and
Parks & Recreation services
General Fund Expenditures Excluding Fire by Department in Tukwila and Peer Cities, 2023
Tukwila
Burien
Kent
Lynnwood
Renton
SeaTac
5% 18%
9%
42%
14%
19%
7% 14%
43 %
5% 10% 6%
22%
54%
13% 2% 6% 16%
42%
7%
5 % 6 %
4% 6% 14%
41%
14%
5% 9% 1 1 % 10% 16%
35%
13%
■ Council/Manager/Mayor/Clerk
■ Administrative/Finance/IT/HR
■ Community/EconDev/Human Services
■ Legal/Court
■ Parks and Recreation
■ Police
■ Public Works/Streets
Note: Some legal costs are included in the Mayor's Office in Tukwila. Labels suppressed for shares under 5%.
Sources: City of Burien, City of Kent, City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023; BERK2023.
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MEETING CLOSE
What would you
add or change?
IN REVIEW: COMMUNITY PROFILE HIGHLIGHTS
■ Tukwila is a growing community, with more diversity and younger residents than King County. Tukwila
School District has students that represent many cultures and speak more than 80 world languages.
■ Tukwila has a higher share of low-income households than King County, particularly among renters.
■ Tukwila residents identify as less healthy than residents in King County and Washington State.
■ Tukwila has a very high jobs to population ratio, with a strong commercial sector that includes retail sales
and manufacturing. Employment growth in Tukwila has been slower than peer cities, but jobs are projected
to grow over the next two decades.
■ Most businesses in Tukwila have 100 or fewer employees and most jobs are in the services, retail, and
manufacturing sectors. Most workers in Tukwila commute from outside the City. This influx of workers, along
with daytime visitors, may drive up the demand for public services.
■ More than half of Tukwila's General Fund revenues are from property and sales taxes. With the Southcenter
mall, a majority of Tukwila's taxable retail sales are attributed to consumer shopping.
■ Tukwila's largest General Fund expenditure is toward Police services, which is similar to peer cities.
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THANK YOU!
Focus of Next Meeting
• Fiscal Overview, continued
• Overview of taxes, rates, and fees: how they are collected and used.
• Comparison to peer communities.
• Review of how the cost burden is shared between residents,
including homeowners and renters, and businesses.
• Trends in revenue collections and City spending.
• Community needs and priorities, including major capital
needs.
■ City Programs and Services part 1
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City of Tukwila
Financial Sustainability Plan I Process Overview I October 31, 2023
Contents
Project Purpose and Committee Charge 2
Direction from City Council: Process Guidance and Evaluative Criteria 4
Proposed Committee Agreements 6
Anticipated Meeting Process 8
Sustainability Plan Outline 9
Project Purpose and Committee Charge
The City of Tukwila is planning for a financially sustainable future that balances the cost of City
programs, services, and infrastructure investments with equitable impacts to taxpayers and ratepayers.
As the City comes out of the pandemic, ongoing budget challenges remain. The City adopted strategies
to balance the 2023-2024 budget, including new revenue tools.
Key questions to be answered include:
■ How can the City best use its limited financial resources to meet the priorities of the community? Is the
City using the right tools to achieve long-term financial sustainability?
■ How should the City's programs and services be calibrated with the community members' desires and
willingness to pay?
■ How can impacts to residents and businesses be most equitably balanced, including consideration of the
range of household wealth and business size present in Tukwila?
The City is implementing two interrelated planning processes to answer these questions and establish the
City's long-range financial strategy.
A Financial Sustainability Plan will:
■ Reflect the Tukwila community's needs, values, and priorities.
■ Consider how programs and services may change as the community continues to grow and change.
■ Provide short-term and long-range strategies to maintain the City's financial stability, guiding both
operating and capital investments.
The Financial Sustainability Plan will be guided by a Financial Sustainability Committee and the Tukwila
City Council. It will be developed in collaboration with City staff and supported by BERK Consulting.
A Utility Rate Study will:
■ Help the City plan for financing major utility (water, sewer, and surface water) infrastructure
projects.
■ Include recommendations for rates that:
o Align with customer usage.
o Can be adjusted as the community grows.
o Are equitable in their treatment of different customer types and their ability to pay.
This utility rate study will be supported by staff of FCS GROUP who will work in collaboration with City
staff and in conjunction with the Financial Sustainability Committee and Tukwila City Council.
:iii City of Tukwila I Financial Sustainability Plan — Process Overview I October 31, 2023
2
Financial Sustainability Committee Charge
Representatives of Tukwila's residential and business communities will provide guidance and
feedback to the work of the consulting team as the Financial Sustainability Plan and Utility Rate
Study are developed. The input of the Committee is intended to advise the consulting team and City
Council; the Committee is not a decision -making body itself. Members of the Financial Sustainability
Committee will:
• Review information about the City's financial condition and factors that will impact future revenues
and expenditures.
• Review options for enhancing the City's financial sustainability.
• Prepare recommendations for the Mayor and City Council.
• ill City of Tukwila 1 Financial Sustainability Plan — Process Overview 1 October 31, 2023
3
Direction from City Council:
Process Guidance and Evaluative Criteria
[Introductory text will be similar to this: On October 2, 2023, the Tukwila City Council approved the
following guidance to inform the planning process and Financial Sustainability Committee's evaluation of
options. This guidance may be modified by a recommendation of the Financial Sustainability Committee if
subsequently approved by Council.]
Process Guidance
The process for developing the Financial Sustainability Plan must be:
• Inclusive. The planning process must be conducted in a way that is fully inclusive of Committee
member perspectives, providing members opportunities to voice their opinions in a way that is
comfortable for them. In addition, it is critical that supporting analysis and strategy development
fully considers the diverse range of residents and businesses that make up the Tukwila community.
• Open, Accessible, and Fair. Every effort must be made to eliminate barriers to participation in the
planning process, making it easy for Committee members to contribute effectively. This may include
consideration of financial and language barriers, as well as the provision of additional support
between meetings to make sure all Committee members have a full grasp of analytic materials
provided to them.
• Tukwila -specific. The Committee should be guided by Tukwila -specific values and context, including
an understanding of community demographics, Tukwila's particular revenue base, and the
importance of City services to community members.
• Analytically -based. Committee thinking and recommendations should be informed by expert
financial analysis, best practices, and benchmarking provided by City staff and the consulting team.
• Transparent. Meeting materials should be shared with Financial Sustainability Committee members in
advance of meetings. All meeting materials, including meeting summaries, should be posted on the
City's website for easy access by all members of the Tukwila community.
Evaluative Criteria
As the Committee develops its recommendations, options and strategies should be evaluated against at
least the following criteria to ensure that final recommendations balance the City's financial sustainability, the
provision of City services that meet community expectations, and equity in costs and services.
• Equity. Who will the strategy impact and how will that be different among different residential and
business groups? Who would be helped and who would be harmed, and how does that correspond
to historical and structural patterns?
• Cost. What is the cumulative impact of costs imposed by the City and other levels of government on
these groups? How can impact be best aligned with ability to pay? How can impact be best aligned
with benefit received, so there is a direct relationship between contribution and benefit?
• ill City of Tukwila 1 Financial Sustainability Plan — Process Overview 1 October 31, 2023
4
■ Magnitude and Growth. How meaningful will the impact of potential strategies be compared to the
City's overall budget? How will this magnitude change over time?
■ Stability. Is the strategy firm and steady or is it volatile and subject to large fluctuations?
■ Sustainability. Can the strategy continue into and be counted on in the future?
■ Alignment with Priorities. How well does the strategy align with the community priorities? Can
strategies adapt over time as community priorities change?
■ Feasibility. Can the City practically implement the strategy, with a reasonable level of effort and
within a reasonable period of time? How politically feasible is this strategy? What type of approval
does it need?
■ Impact to Other Services. If a strategy is implemented, how might it directly or indirectly impact the
provision of other services?
City of Tukwila Equity Policy
Tukwila's Equity Policy (Resolution 1921, adopted by the Tukwila City Council in 2017), will guide
both process and evaluation of recommendations. Equity is defined in the Policy as "Eliminating
systemic barriers and providing fair access to programs, services and opportunities to achieve social,
civic and economic justice within the City of Tukwila." The Resolution establishes six Policy Goals which
are listed here. These are listed below, with supporting text provided for those Policy Goals that are
particularly relevant to the Financial Sustainability planning process.
1. Our City workforce reflects our community.
2. Community outreach and engagement is relevant, intentional, inclusive, consistent and
ongoing.
3. All residents and visitors receive equitable delivery of City services.
The City will identify strategies that facilitate equitable access to current and future City services
and facilities, regardless of race/ethnicity, language, ability, gender, age, family status,
geography, and mode of transportation.
4. City government is committed to equity in the decision -making process.
The City will identify strategies to facilitate equitable access to decision -making, where the
decisions themselves -- and the process and context in which they are made -- are transparent.
equity serves as a core value for all long-term plans moving forward.
5. Equity serves as a core value for all long-term plans moving forward.
The City will apply its Equity Toolkit in its evaluation of outcomes and strategies.
6. The City will build capacity around equity within City government and the broader
community.
:1II City of Tukwila I Financial Sustainability Plan — Process Overview I October 31, 2023
Proposed Committee Agreements
The following proposed agreements will be reviewed and revised during the Committee's first meeting.
Operating Guidelines
• A regular meeting time and schedule of dates for meetings will be communicated at the first meeting
of the Committee.
• Meetings will start and end on time, with a strong preference for in -person participation.
• Meeting summaries will be prepared following each meeting, summarizing the issues discussed and
the decisions reached. A list of members present will be included in the meeting summary.
• Email will be used for Committee coordination and to share agendas and materials in advance of
meetings. Substantive issues will be discussed in the meetings rather than through e-mail dialogue.
■ Committee members will direct any media inquiries to City staff.
Committee Member Responsibilities and Discussion Guidelines
Individual Committee members are expected to:
• Prioritize consistent meeting attendance, joining Committee meetings in -person whenever possible.
We hope to have everyone attend every meeting.
▪ While we understand that unavoidable conflicts may happen, Committee members may miss no
more than 2 meetings.
• Understand and be able to articulate the project purpose and the Committee's charge.
■ Serve as a resource to other members of the community who want to learn more about this process.
• Prepare for Committee meetings by reviewing meeting content and providing any requested input in
advance.
• Communicate questions, issues, and suggestions to the project management team, who will coordinate
actions and responses.
• Be productive and creative contributors.
• Participate in conversations respectfully and productively by:
▪ Committing to collaboration, teamwork, and compromise to seek consensus on recommendations.
▪ Assuming good intentions and listening to understand, creating space for others to comfortably
contribute their ideas.
▪ Proactively sharing insights and opinions.
▪ Respecting and acknowledging both differences and similarities, recognizing the validity and
value of different perspectives.
▪ Allowing participants to have changes of opinion.
▪ Building on points of agreement and expecting that Committee members may disagree on some
ideas.
• ill City of Tukwila 1 Financial Sustainability Plan — Process Overview 1 October 31, 2023
6
Framework for Decision -Making
• Options will be assessed based on Evaluative Criteria established by the City Council and endorsed
by the Committee.
• Our goal is unanimous consensus, meaning that all Committee members understand and can
support, or live with, the guidance to be shared with the City, with the objective of achieving unity if
not complete unanimity.
• Recommendations may be made by majority option, with the report describing the range of
perspectives.
• Members may need to consult with their organizations or communities before making or endorsing
recommendations.
• ill City of Tukwila 1 Financial Sustainability Plan — Process Overview 1 October 31, 2023
7
Anticipated Meeting Process
The Financial Sustainability Committee will meet five to six times between November 2023 and March
2024. This page provides an overview of the content planned for each meeting. Detailed agendas,
presentations, and background materials will be prepared in advance of each meeting.
Meeting 1. Kickoff and Context (November)
Welcome and introductions, review of kickoff materials, overview of Tukwila community profile, and
overview of the City's financial history and forecast.
At the end of this meeting, members will have a shared understanding of the Committee's role, the goals of
this project, and context for future discussion.
Meeting 2. City Programs and Services (December)
Brief presentations from City staff describing City programs and services, priorities, needs, and funding
sources. Highlights from peer benchmarking and best practices research.
At the end of this meeting, members will understand the City's service priorities and needs and may identify
findings from peer benchmarking research that can be brought forward in the options discussion.
Meeting 3. City Programs and Services, continued (January)
Brief presentations from City staff describing City programs and
services, priorities, needs, and funding. Highlights from the Utility Rate
Study and how this work will impact the Financial Sustainability Plan.
At the end of this meeting, members will share their thoughts on service
priorities that will prepare for future discussion on options.
Meeting 4. Options Discussion (January/February)
Discussion of options to consider based on City values and the
Community Profile, service priorities, and peer benchmarking
information. The Committee will be presented with packages of options
for discussion and will determine how they measure against Evaluative
Criteria.
At the end of this meeting, members will share their initial preferences for
options.
[Between Meeting 4 and Meeting 5, the City could offer opportunities for broader community engagement
and/or additional business engagement, which would shift the timeline for Meeting 5 and conclusion of the
work.]
Following this meeting, the
consulting team will present
an update on the
Committee's findings and
discussion to City Council.
Following this meeting, the
consulting team will present
an update on the
Committee's findings and
discussion to City Council.
Meeting 5. Recommendations Discussion (February/March)
Discussion of recommendations based on preferred options.
At the end of this meeting, Committee members will agree on
recommendations. Another meeting may be necessary to finalize
recommendations.
Final recommendations will
inform Spring budgeting
process.
41I City of Tukwila 1 Financial Sustainability Plan — Process Overview 1 October 31, 2023
8
Sustainability Plan Outline
The outline below has been developed as a general guide for the work of the Committee and consulting
team. The final product may evolve from this starting point over the course of the planning process. The
final Financial Sustainability Plan will provide directional, strategy -level recommendations for
consideration by City Council. The Plan may include specific recommendations such as the
implementation of particular revenue tools but will not be at the same level of detail as the City's budget.
Introduction and Background
• A description of the purpose of this project and what is the City trying to achieve.
• A summary of the current context in Tukwila that is impacting long-term financial sustainability, such
as recent actions taken to increase revenue or reduce expenditures, citywide plans or initiatives, or
trends that will impact the City's program and service delivery.
About the Financial Sustainability Committee
• The role of the Committee — how the Committee was formed, its charge, how many times it met, what
materials it reviewed, and the meeting topics.
The City's Financial Condition
• An overview of the City's General Fund financial forecast, assumptions, and major revenue and
expenditure drivers.
• Community needs and priorities.
• An overview of programs and services the City provides and an overview of the City's capital needs.
• A description of short- and long-term financial challenges, which may include factors such as revenue
limitations or unfunded needs. This section may include comparisons to peer cities where relevant,
such as revenue mix, revenue tools used, and services provided.
Options
• A description of the packages of options considered by the Committee and the criteria used to
evaluate options.
Recommendations and Next Steps
• A list of short- and long-term strategies for consideration by the City Council and their impact on the
City's financial condition. These strategies will address operating and capital needs. Strategies may
include adjustments to revenues and costs.
• How this plan will be used in the future, such as describing processes to revisit and revise strategies
and this plan's alignment to the City's budget process.
Appendices
• Tukwila Community Profile, Peer benchmarking summary, and others to be determined.
• ill City of Tukwila 1 Financial Sustainability Plan — Process Overview 1 October 31, 2023
9
City of Tukwila Community Profile
and Peer Benchmarking
Tukwila Financial Sustainability Plan I October 2023
Contents
Overview 2
Summary of Key Findings 2
Community Characteristics 3
Population 3
Historical and Projected Growth 3
Race and Ethnicity 4
Languages Spoken 5
Age Distribution 6
Households 7
Housing and Income 9
Community Health 1 2
Local Economy 13
Historical and Projected Employment 1 3
Business Sizes and Sectors 15
Journey to Work 16
City Services and Finances 18
Tukwila and Peer City Services 1 8
General Fund Revenues 19
General Fund Expenditures 22
1
Overview
This document provides an overview of the Tukwila community and
comparisons to King County and peer cities in the region. These
peer cities are Burien, Kent, Renton, and SeaTac. These peer cities
were selected because they are neighbors in the region or have a
similar level of revenue collection to Tukwila. The City of
Lynnwood is also used as a comparison when looking at the City's
finances because it also has a large retail shopping center. The
information in this document can be used to guide the City's
Financial Sustainability Plan and provide a basis for
understanding how the City's services and funding may change as
the community grows.
Summary of Key Findings
• Tukwila is a growing and diverse community. Tukwila School
District has students that represent many cultures and speak
more than 80 world languages. In the past 8 years, Tukwila
has grown faster than peer cities. Tukwila is more racially
and linguistically diverse than King County as a whole.
Tukwila also has a larger share of younger people than King
County.
Exhibit 1: Tukwila and Peer Cities
mish
9
Edrnond s
h•tou MI ake
Terrace
Shorn rcre
v
Mil' Creek
Rorheli
K:rk!and Redmond Hill
r.•: r.'er Iglarri 7
Newcastle f •
White Cerl r 9•-,
East Per ion
S n ?rkrrila Rerfan----..u.nds
9-
Cascade -Pair -wood 1
Sarr
Sea lac
9
K9,
s:
Msp.l.
• Tukwila households tend to be larger and more multigenerational than in King County as a whole.
• Tukwila has a higher share of low-income households than King County, particularly among renters.
• Tukwila residents identify as less healthy than residents in King County and Washington State.
• Tukwila has a very high jobs to population ratio, with a strong commercial sector that includes retail
sales and manufacturing.
• Employment growth in Tukwila has been slower than peer cities, but jobs are projected to grow over
the next two decades.
• Most businesses in Tukwila have 100 or fewer employees. Most jobs are in the service, retail, and
manufacturing sectors.
• Most Tukwila workers commute from outside the City, while most Tukwila residents commute to other
cities for work.
• Tukwila sees a large influx of daytime non-residents who commute in for shopping and employment,
which likely increases the demand for public services.
• More than half of Tukwila's General Fund revenues are from property and sales taxes. With the
Southcenter mall, a majority of Tukwila's taxable retail sales are attributed to consumer shopping.
• Tukwila's largest General Fund expenditure is toward Police services, which is similar to peer cities.
.J11 10/31/23 City of Tukwila I Community Profile and Peer Benchmarking
2
Community Characteristics
Population
Tukwila is a growing and diverse community. In the past 8 years, Tukwila has grown faster than peer
cities. Tukwila is more racially and linguistically diverse than King County as a whole. Tukwila also
has a larger share of younger people than King County.
Historical and Projected Growth
Based on the City's population growth target, Tukwila's population is estimated to grow 2.2% annually
over the next 20 years (Exhibit 2). Growth targets are based on the region's plan for growth. The Puget
Sound Regional Council coordinates regional planning policies that provide a framework for cities and
counties to achieve shared regional goals. These policies identify the population and employment targets
for each city and county that must go into their local comprehensive plans.
In addition to the residential population, approximately 150,000 individuals commute into Tukwila daily
for work or shopping.' From 201 6 to 2023, Tukwila grew faster than King County and peer cities in the
region (Exhibit 3).
Exhibit 2: Tukwila Historical and Projected Residential Population, 1990-2044
= 40,000
0
a
a 35,000
a
0
a 30,000
2023 population: 22,780
25,000
20,000
15,000
10,000
5,000
2044 target: 36,005
(+2.2% per year)
0
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045
Year
Sources: Washington Office of Financial Management, 2023; PSRC, 2023.
I Source: City of Tukwila.
IuI
10/31/23 City of Tukwila I Community Profile and Peer Benchmarking
3
Exhibit 3: Annual Population Growth, Tukwila, Peer Cities, and King County, 2016-2023
16%
14%
Total Population Growth
12%
10%
8%
6%
4%
2%
0%
2016 2017 2018 2019 2020 2021 2022 2023
Year
Tukwila: 15.0%
King County: 7.9%
Kent: 8.6%
SeaTac: 8.2%
Burien: 5.7%
Renton: 4.7%
Sources: Washington Office of Financial Management, 2023; PSRC, 2023.
Race and Ethnicity
Compared to King County, a higher proportion of the Tukwila population are Black or African American,
American Indian and Alaska Native, Asian, Native Hawaiian and Other Pacific Islander, and Some other
race (Exhibit 4).
Exhibit 4: Racial Composition of Tukwila and King County, 2021
19%
33%
Tukwila
King Counfy
Two or more races
■ Some other race alone
■ Native Hawaiian and Other Pacific Islander alone
■ Asian alone
■ American Indian and Alaska Native alone
■ Black or African American alone
■ White alone
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates. Labels are suppressed for shares under 1 %.
:111 10/31 /23 City of Tukwila I Community Profile and Peer Benchmarking
4
Languages Spoken
Approximately 46% of the Tukwila population speaks a language other than English at home, which is
comparable to peer cities and higher than King County (Exhibit 5). Tukwila School District notes that it has
students that speak more than 80 world languages.
Exhibit 5: Language Spoken at Home, Tukwila, Peer Cities, and King County, 2021
46%
54 %
Tukwila
66 %
Burien
58%
Kent
37%
63 %
Renton
52%
29%
71%
SeaTac King County
■Only English Spoken at Home ■ Language Other than English Spoken at Home
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates.
.J11 10/31/23 City of Tukwila I Community Profile and Peer Benchmarking
5
Age Distribution
Compared to King County, Tukwila has a larger share of younger residents, particularly those in the 10-14
and 25-29 age ranges. (Exhibit 6).
Exhibit 6: Age Distribution in Tukwila and King County, 2021
Population by Age Range
2,500
2,000
1,500
1,000
500
1 o.5cc Tukwila
9.1%
8.5% 8.5%
7.2%
6.9 %
4.8% 150
\
3.3%%
2.7% 2.7%
1 "%II 1.6%
-- King County
0 ■
10 a, v o, v o, v 0, v a, v a, v o, v a, v +
1 N N C7 CO V ul ul ,0 ,0 N iti co un
N so 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 co
o so o 1.0 o 1.0 o Lo o so o Lo o 1.0 o
C — — N N M CO 10 10 ,0 -0 N A co
D
Age Cohort
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates.
:111 10/31 /23 City of Tukwila I Community Profile and Peer Benchmarking
6
Households
Tukwila households tend to be larger and more multigenerational than in King County as a whole.
Thirty percent of households in Tukwila have one or more people under 18 years old and 24% have one or
more people 65 years and over (Exhibit 7). These percentages are slightly higher than in King County.
Tukwila also has more large families compared to King County, with a higher percentage of households
with at least three people (Exhibit 8). Tukwila has a similar number of people per household compared to
all peer cities, but a slightly higher number than King County (Exhibit 9).
Exhibit 7: Household Profile by Age, Tukwila and King County, 2021
35%
Percent of Households
30% 28%
25%
20%
15%
10%
5%
0%
30%
23%
24%
Households with one or more people Households with one or more people
under 18 years 65 years and over
■ King County ■ Tukwila
Source: US Census Bureau, 2017-2021 American Community Survey 5- Year Estimates.
.J11 10/31/23 City of Tukwila I Community Profile and Peer Benchmarking
7
Exhibit 8: Household Profile by Number of People, Tukwila and King County, 2021
40%
35%
Percent of Households
30%
25%
20%
15%
10%
5%
0%
1 -person 2-person 3-person 4-person 5-person 6-person 7+ person
household household household household household household household
• King County A Tukwila
Source: US Census Bureau, 2017-2021 American Community Survey 5- Year Estimates.
Exhibit 9: Persons per Household, Tukwila, Peer Cities, and King County, 2020
3.0
2.9 2.9
2.8 ■
Persons per Household
2.7
2.6
2.5
2.4
2.3
2.2
2.6
2.6
2.6
2.7
2.4
1
Tukwila Burien Kent Renton SeaTac King County
Source: Washington Office of Financial Management, 2020.
`II 10/31/23 City of Tukwila I Community Profile and Peer Benchmarking
8
Housing and Income
Tukwila has a higher share of low-income households than King County, particularly among renters.
Seventy percent of Tukwila households have incomes below the median family income in Tukwila, compared
to 46% of King County households below the median family income in King County (Exhibit 10). Median
family income is a common measure used to understand housing affordability and is based on the whole
county. The "median" income is a benchmark that is right in the middle of the income range. Half of the
families in the range would make more than this, and the other half would make less. A household may
represent a single person, but a family represents related people in a household.
Tukwila has more renter -occupied households than do peer cities and King County (Exhibit 1 1). Seventy-
nine percent of Tukwila renters have an income below the median family income, compared to 56% of
Tukwila homeowners (Exhibit 12 and Exhibit 1 3).
Exhibit 10: Households by Median Family Income (MFI) in Area, Tukwila, Peer Cities, and King County, 2020
30°T
14%
18%
20%
Tukwila
38%
11%
16%
16%
38%
13%
14%
17%
43%
13%
16%
13%
34
11%
16%
15%
33%
13%
18%
21%
54%
Burien Kent Renton Lynnwood SeaTac King County
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020.
■ Above Median Income (>100%)
Moderate Income (80-1 00%)
Low -Income (50-80%)
Very Low -Income (30-50%)
■ Extremely Low -Income (<_30% MFI)
°J11 10/31/23 City of Tukwila I Community Profile and Peer Benchmarking
9
Exhibit 11: Renter and Owner -Occupied Households, Tukwila, Peer Cities, and King County, 2020
Renter -occupied
• Owner -occupied (no mortgage)
• Owner -occupied (with mortgage)
61%
25%
45 %
38%
45%
39%
47%
51%
17%
r
44%
16%
Tukwila Burien Kent Renton SeaTac King County
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020.
Exhibit 12: Renter Households by Median Family Income, Tukwila, Peer Cities, and King County, 2020
r w
21%
15%
13%
27
Tukwila
10%
25%
20%
21%
12%
14%
24%
28%
16%
18%
17%
9%
20%
20%
22
Itititititi - J
11%
18%
27
11%
14%
15%
Burien Kent Renton Lynnwood SeaTac King County
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020.
■ Above Median Income (>100%)
Moderate Income (80-100%)
Low -Income (50-80%)
Very Low -Income (30-50%)
• Extremely Low -Income (<_30% MFI)
:111 10/31 /23 City of Tukwila I Community Profile and Peer Benchmarking
10
Exhibit 13: Owner Households by Median Family Income, Tukwila, Peer Cities, and King County, 2020
m
44%
13%
26%
9%
Tukwila
M
57%
A
13%
pm!
52%
15%
15%
ii
57%
k._
11%
13%
12% 10%
12%
13%
11%
14%
18%
15%
9%
10%
8%
Burien Kent Renton Lynnwood SeaTac King County
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020.
• Above Median Income (>100%)
Moderate Income (80-100%)
Low -Income (50-80%)
Very Low -Income (30-50%)
• Extremely Low -Income (<_30% MFI)
'I 1 0/31 /23 City of Tukwila I Community Profile and Peer Benchmarking
11
Community Health
Tukwila residents identify as less healthy than residents in King County and Washington State.
Public Health — Seattle & King County tracks many indicators of health status and determinants of health in
cities and neighborhoods in King County. The data for Tukwila includes data for the City of SeaTac. As
shown in Exhibit 14, more Tukwila and SeaTac residents are in fair or poor health than in King County and
Washington State. More people in Tukwila and SeaTac are uninsured and do not have a primary care
provider. Adults over 65 have more unhealthy days than those in King County and the State.
Exhibit 14: Select Community Health Indicators, Tukwila, King County, and Washington State, 2021
40
35
30
25
20
15
10
5
0
11 ill I.. III III III Id
Fair or poor Frequent Unhealthy days Unhealthy clays Disability (%) No primary Uninsured age
health (%) mental clistress (18+) (days) (65+) (clays) care provider 18-64 (%)
(%) (%)
• SeaTac/Tukwila • King County • Washington State
Source: Public Health — Seattle & King County, City Profile Data, 2021.
:111 10/31 /23 City of Tukwila I Community Profile and Peer Benchmarking
12
Loca I Economy
Historical and Projected Employment
Employment growth in Tukwila has been slower than peer cities, but jobs are projected to grow over
the next two decades.
Tukwila has a higher employment to population ratio than peer cities and King County (Exhibit 15).
Employment in Tukwila declined by the greatest percentage among peers in 2021 and employment in
2022 has not yet recovered to the 201 6 level (Exhibit 1 6). However, jobs in Tukwila are projected to grow
1.5% annually through 2044 (Exhibit 17).
Exhibit 15: Covered Employment to Population Ratio, Tukwila, Peer Cities, and King County, 2000-2022
Covered Empl. / Population Ratio
3.00
2.50
2.00
1.50
1.00
0.50
0.00
Tukwila: 2.03
SeaTac: 1.17
King: 0.62
Renton: 0.60
Kent: 0.52
Burien: 0.24
2000 2005 2010 2015 2020
Sources: PSRC Covered Employment, 2023; Washington Office of Financial Management, 2023.
•10/31/23 City of Tukwila I Community Profile and Peer Benchmarking
13
Exhibit 16: Growth in Covered Employment, Tukwila, Peer Cities, and King County, 2023
30%
25%
Sea Tac: 21.1 %
Percent employment change from 2016
20%
15%
King County: 1 1 .0%
10%
5%
0%
-5%
-10%
-15%
2016
2017 2018
2019
Source: PSRC Covered Employment, 2023.
Exhibit 17: Covered Employment in Tukwila, 2000-2022
70,000
60,000
50,000 2022 employment: 45,825
Covered Employment
40,000
30,000
20,000
10,000
2020
2021
Renton: 4.0%
Burien: 1.9%
Kent: -0.3%
Tukwila: -3.1 %
2022
2023
2044 target: 63,074
(+1.5% per year) .,0
0
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045
Year
Note: Covered employment refers to jobs 'covered" under the state's Unemployment Insurance Program and constitutes 85-90% of
total employment.
Source: PSRC Covered Employment, 2023; King County, 2023.
:111 10/31 /23 City of Tukwila I Community Profile and Peer Benchmarking
14
Business Sizes and Sectors
Most businesses in Tukwila have 100 or fewer employees. Most jobs are in the service, retail, and
manufacturing sectors.
Out of 2,344 firms in Tukwila, over 97% have fewer than 100 employees (Exhibit 1 8). Services, retail, and
manufacturing comprise most Tukwila jobs, which is comparable to Burien, Kent, Renton, and King County
(Exhibit 19). Examples of sectors in the services category are healthcare, arts and entertainment, and
information technology. The retail category trade represents retail trade, or the sale of goods to
consumers. Examples of manufacturing include the manufacturing of food, materials, or equipment.
Exhibit 18: Tukwila Businesses by Size, 2021
0,1%(3 Firms)
a
r
Under 5 Employee,
nployi
•nplk
]00 TO 499 Employe
Over 500 Employees
Sources: Esri/DataAxle (2021); ACS; CAI, 2022.
Exhibit 19: Covered Employment by Major Sector, 2021
Tukwila
Burien
4%
4%
24%
25%
21%
11%
Kent
4%
12%
8%
Renton
14%
54%
22%
6%
7%
8%
Sea Tac King County
■ Education
■ Government
■ Wholesale / Transportation / Utilities
■ Services
■ Retail
■ Manufacturing
■ Finance / Insurance / Real Estate
■ Construction / Resource
Note: Covered employment refers to jobs 'covered" under the state's Unemployment Insurance Program, and constitutes 85-90% of
total employment. Labels suppressed for shares under 3%.
Source: PSRC Covered Employment, 2021.
10/31/23 City of Tukwila I Community Profile and Peer Benchmarking
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Journey to Work
Most Tukwila workers commute from outside the City, while most Tukwila residents commute to other
cities for work.
Exhibit 20 shows where workers in Tukwila live. Just less than 2% of Tukwila's approximately 46,000
workers, or approximately 880 workers, also reside in the City. Most employees in Tukwila come from
outside the City. The cities with the largest share of Tukwila workers are Seattle, Kent, and Renton.
Exhibit 20: Tukwila Employees' Places of Residence, 2019
'MCA
Bainbridge
: ianr'
rd
Manche
Stare '
s4 Sedgwitk kd
Olalla
Gig Her'
ale
Universi
Place
.acOom
vashon
Seallie
s Moms
'damn
Fife Edgewood
Waller
Kingsgate
eon ',bun s[
kland
Merce, ..
White
Redmond
Bellevue
2.4%
Newcastle ougar
MObntain rssaquah
Union Hiif
Sam mamish
enton
ds
SE 2J'It9 SI
Grand
Ridge
Sgeak West loge
Mountain. Mountain
Mapla Valley
M
Hobart
Ravensdale
slack Diamond
Green Riv
Gorge Sta
Park
Can_ rvat
' Area
`_'yt Where Tukwila Workers Live
Pct of Workers
o awn
Lake
rnpris Greater
Klng_Coun y_P Inary_Roads
Bonney Lake _
fl 2 4 Miles
l
Sources: U.S. Census LEHD, 2019; CAI, 2022.
:111 10/31 /23 City of Tukwila I Community Profile and Peer Benchmarking
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Exhibit 21 shows where Tukwila residents who are in the labor force work. Over 8% of Tukwila's residents
in the labor force, approximately 11,800 people, also work in Tukwila. Over 37% of Tukwila residents
who work do so in Seattle. Over 6% work in each of four nearby cities: SeaTac, Kent, Renton, and
Bellevue.
Exhibit 21: Tukwila Residents' Places of Employment, 2019
'CAI
rd
305
Bainbridge
I r
Manche
Stare
SE Sengwrck ad
Vashon
Olalla
eaHle
Kingsgate
ri St
Redmond
1.5%
t
Bellevue
6.6%
Mercer
Burien TukwalRenton
2.5% ' :�+'6.9%
_ SeaTacT /c
r'aak 6.7% 1"
Gig Hat' Adelaide
ale
IfnlversItya,
Place
I a4nwnnr1
Tacoma
1.8%
5 Moine
Federal Wav
'dllton
Fife Edgewoad
Waller r,e r
Puyallup
Kent
6.6%
5 3r
Auburn
2.2%l
hate
D,vell
Union Hit!
Sammamish
Mountain Issaquah
enton
ices
Grand
Rrdge
Squak Weer rrge
Mountain Mrreara:-11
r.
Maple Valley
Hobart
Ravensdale
Black Diamond
Green Riv
Gorge St
Park
Conservat
Area
Where Tukwila Residents Work
Pct of Commuters
Fewer
Lake -
rnous �
Greater
Bonney Lake
❑ 2 4 Miles
Sources: U.S. Census LEND, 2019; CAI, 2022.
:iii 10/31 /23 City of Tukwila I Community Profile and Peer Benchmarking
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City Services and Finances
Tukwila and Peer City Services
Tukwila sees a large influx of daytime non-residents who commute in for shopping and employment,
which likely increases the demand for public services.
The City of Tukwila provides most of the services to the community, except for fire and emergency services,
which are currently provided by Puget Sound Regional Fire Authority through a contract. In 2025, Puget
Sound Regional Fire Authority will provide service directly to Tukwila and the City will no longer pay for
this service through a contract. Demand for many City services, including Police and Parks & Recreation, is
increased by the large number of non-residents who come to the city during the daytime for shopping or
employment. Peer cities provide services to the community in a similar way to Tukwila, with all receiving fire
and emergency services from a regional fire authority directly or through a contract. The cities of Burien
and SeaTac contract for police services with King County.
Exhibit 22: Services and Providers, Tukwila and Peer Cities
Department
Tukwila
Burien
Kent
Lynnwood
Renton
SeaTac
Population (2023)
22,780
52,560
139,100
40,790
107,900
31,740
Full -Time Equivalent
Positions (General Fund)
246
89
745
290
651
156
Executive
Mayor/
Administrator
City Manager
Mayor/
Administrator
Mayor/
Administrator
Mayor/
Administrator
City Manager
City Council
V
V
V
V
V
V
Finance
✓
✓
✓
✓
✓
✓
Administration
✓
✓
✓
✓
✓
✓
Parks & Recreation
V
V
V
V
V
V
Community
Development
✓
✓
✓
✓
✓
✓
Municipal Court / Legal
✓
✓
✓
✓
✓
✓
Police
✓
King County
Sheriff's Office
✓
✓
✓
King County
Sheriff's Office
Public Works
✓
✓
✓
✓
✓
✓
Fire
Regional Fire
Authority
Fire District
Regional Fire
Authority
Regional Fire
Authority
Fire Authority
Regional Fire
Authority
Water
✓
Local Districts
✓
✓
✓
Local Districts
Sewer
✓
Local Districts
✓
✓
✓
Local Districts
Surface Water
✓
✓
✓
✓
✓
✓
K-1 2 Public Education
Local Districts
Local Districts
Local Districts
Local Districts
Local Districts
Local Districts
Note: Some properties in Tukwila, Kent, and Renton are serviced by other loco utility providers. Sources: City of Burien, City of Kent,
City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023; BERK, 2023.
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General Fund Revenues
More than half of Tukwila's General Fund revenues are from property and sales taxes. With the
Southcenter mall, a majority of Tukwila's taxable retail sales are attributed to consumer shopping.
Tukwila maintains several types of funds, with different purposes and restrictions. The General Fund is the
most flexible and collects revenues such as property tax and sales tax. The City also has funds dedicated
to paying for capital projects, debt service, internal services (such as vehicle maintenance), and utilities.
Utility funds are called Enterprise Funds. These are managed like a business and do not receive general
tax dollars —the revenues they generate can only be used to pay for their own expenses. Foster Golf Links,
an Enterprise Fund, does receive some support from the General Fund. Per current Council adopted policy,
1 8% of prior year ongoing revenues are held in General fund reserves and 10% of prior year ongoing
revenue are held in Contingency reserves (reserves set aside for emergency use) (Exhibit 23).
Exhibit 23: Tukwila Funds by Type, 2023
Internal Service
6%
Enterprise
22%
Debt Service
8%
Capital Projects
16%
Source: City of Tukwila, 2023.
Fiduciary
0%
Special Revenue
1%
General and Contingency
48%
Tukwila's General Fund is primarily funded by taxes, with smaller shares of revenue coming from license
and permit fees, grants, and charges for service (Exhibit 24). Taxes that contribute to the City's General
Fund can be broken down further into categories: property tax comprises 25% and sales tax comprises
28% of total revenues (Exhibit 26). Sixty-four percent of Tukwila's taxable retail sales are from consumer
shopping, which includes general merchandise, home furnishings/electronics, clothing & accessories,
restaurants, automotive/gas, and building materials (Exhibit 26).
As shown in Exhibit 25, Tukwila's new business and occupation tax is estimated to contribute 4% of total
revenues. Burien, Kent, and Renton also collect a business and occupation tax; these revenues make up a
larger share of total revenues in Kent and Renton. Tukwila's revenue composition is similar to that of
SeaTac, with property tax and sales tax making up a roughly equal share of total revenues, though these
make up a larger share in SeaTac.
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Exhibit 24: Tukwila General Fund Revenues by Source, 2023
Taxes
72%
Source: City of Tukwila, 2023.
Charges for Services
4%
Financing
6%
Fines and Penalties
1%
Grants
7%
Intergovernmental
2%
Licenses and Permits
8%
Miscellaneous
1%
Exhibit 25: Tax Revenues as a Share of All General Fund Revenues, Tukwila and Peer Cities, 2023
Tukwila
Burien
Kent
Lynnwood
Renton
SeaTac
25%
28%
4% 6%
25%
34%
14%
26%
17%
5% 10%
21%
8%
45%
10%
20%
30%
38%
12% 14%
41%
• Property Tax • Sales Tax B&O Tax Utility Taxes
Sources: City of Burien, City of Kent, City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023; BERK, 2023.
:111 10/31/23 City of Tukwila I Community Profile and Peer Benchmarking
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Exhibit 26: Tukwila Taxable Retail Sales, 2012-2022
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
2022 Retail
Trade Share
of Total: 64%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
—Retail Trade Tax Collections —Total Retail Sales Tax Collections
Sources: City of Tukwila, 2023; WA Department of Revenue, 2023.
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General Fund Expenditures
Tukwila's largest General Fund expenditure is toward Police services, which is similar to peer cities.
As shown in Exhibit 27, the largest share of Tukwila's General Fund expenditures goes to the Police
department. The next largest share is for Fire services. This will change in 2025, when the City no longer
contracts with Puget Sound Regional Fire Authority. Similarly, the General Fund department with the largest
number of full-time positions is Police, followed by Community Development, Public Works, and Parks and
Recreation (Exhibit 28).
Exhibit 27: Tukwila General Fund Expenditures by Department, 2023
Parks and Recreation
7%
Court
2%
Administrative
8%
Non -Departmental
1%
Fire
21%
Source: City of Tukwila, 2023.
Public Works
11%
Mayor's Office
4%
City Council
1%
Finance
6%
Community
Development
7%
Police
32%
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Exhibit 28: General Fund FTEs by Department, 2023
Department
Mayor's Office
2023 Full -Time Employees
4.50
City Council
8.00
Finance
14.00
Administration
22.04
Parks & Recreation
24.50
Community Development
28.25
Municipal Court
10.65
Police
100.00
Public Works
27.50
Note: Administration includes Human Resources, Information Technology, Community Services & Engagement, and City Clerk.
Source: City of Tukwila, 2023.
When excluding the budget for Fire services, over 40% of Tukwila's General Fund is dedicated to Police
services, followed by administrative services, public works/streets, and parks and recreation (Exhibit 29).
Peer city budgets dedicate a similar share for police services. Tukwila spends a smaller share on community
and economic development and parks and recreation than some peer cities. Kent and Burien use other
funds to pay for some or all public works expenses, which is not represented in the exhibit below.
When looking at budgeted General Fund spending compared to a city's total assessed value, Tukwila's
spending is comparable to peer cities. (Exhibit 30). The high police spending per assessed value in Tukwila
and Lynnwood likely reflects the large daytime population drawn by a mall and resulting need for
services.
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Exhibit 29: General Fund Expenditures Excluding Fire by Department in Tukwila and Peer Cities, 2023
Tukwila
Burien
Kent
Lynnwood
Renton
SeaTac
5% 18%
9% 9%
14%
19%
13% 7% 14%
43%
5% 10% 6% 22%
54%
13% 12°
6% 16%
42%
7%
5% 6% 14% 6% 14%
41%
14%
5% 9% 11% 10% 16%
35%
13%
• Council/Mana ger/Mayor/Clerk
• Administrative/Finance/IT/HR
• Community/EconDev/Human Services
• Legal/Court
• Parks and Recreation
• Police
• Public Works/Streets
Notes: The Mayor's Office in Tukwila includes funding for attorney services. This chart represents General Fund budgeted
expenditures only. Cities may pay for these services using other funds as well, which are not represented here. Labels
suppressed for shares under 5%.
Sources: City of Burien, City of Kent, City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023; BERK 2023.
Exhibit 30: General Fund Expenditures per $1,000 of Assessed Value, Tukwila and Peer Cities, 2023
$ 3.00
$2.50
$ 2.00
$1.50
$1.00
$0.50
$0.00
I I
Police budget per $1,000 assessed Parks budget per $1,000 assessecl Development budget per $1,000
value value
assessed value
■ Bu rien ■ Kent ■ Lynnwood ■ Renton ■ SeaTac ■ Tukwila
Note: This chart represents General Fund budgeted expenditures only. Cities may pay for these services using other funds as well,
which are not represented here.
Sources: City of Burien, City of Kent, City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023; BERK 2023.
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