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Home My WebLink AboutFSC 2024-02-07 Agenda PacketCITY OF TUKWILA FINANCIAL SUSTAINABILITY PLAN FINANCIAL SUSTAINABILITY COMMITTEE MEETING #4 1 FEBRUARY 7, 2024 :ill MEETING AGENDA ■ Welcome and Recap of Meeting 3 (10 mins) ■ Overview of Other Funds (20 mins) ■ Financial Plan Overview (30 mins) ■ Potential Committee Recommendations (45 mins) ■ Meeting Recap and Close (15 mins) II 2 PROJECT ARC Meeting 1 Meeting 2 Meeting 3 Meeting 4 Meeting 5 Meeting 6 Community Context Who lives here? What kind of businesses? What is the composition of the Tukwila economy? Community Values and Priorities Revenue Mix General Spending What does the community desire? What are the City's biggest costs? How do City revenue tools compare to others? City Programs and Services Gather Potential Principles and Recommendations in meetings 1-4 Identify themes and preferred strategies What are the City's greatest needs? How might efficiencies be gained? What programs and services best align with community priorities? Financial forecast Full Set of Recommendations How can we best balance the City's financial sustainability, the provision of City services that meet community expectations, and equity in costs and services? MEETING 3 RECAP CITY FINANCES AND SERVICES 1 City revenues are (mostly) paid for by residents and businesses through taxes, fees, and rates. Considerations • Revenue tools in use. • Rate compared to neighbors and peers. • Distribution of burden between residents and businesses. • Nexus between payment and benefit. City expenses are directly or indirectly incurred in delivering services to residents and businesses. Some services help residents and businesses do well, supporting their ability to contribute to City revenues. Considerations • Service mix and levels of service. • Inflation (labor and capital). • Capital needs. Financial ustainability A city can't run a deficit. One-time funds and levels of service adjustments are used to match revenues. There is almost always a gap in actual and desired services. This gap is not visible in the City's forecast. Considerations • Unmet operating needs and capital investments. Impacts of population growth and inflation. A city's fiscal sustainability depends on its land uses. The mix of commercial and residential property has an impact on both City revenues and City costs. It drives the revenue the City collects and demand for City services. Revenue and service mix that is sustainable and equitable. :ill 5 POSTER ACTIVITY Questions to consider: • How can we prioritize program and services that meet the Tukwila community's needs? See a reminder of the Tukwila Community Profile at right. • Looking at each category of services, where are opportunities for the City to provide: • more services? • the same level of service? • less service? We'II review a summary of your input under the Potential Committee Recommendations section of this meeting. Community Profile Highlights (from Meeting 1) • 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. The influx of workers and daytime visitors drives 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. OVERVIEW OF OTHER FUNDS CITY F Most of our focus so far has been here We want to share a bit about 1) capital projects... ...and 2) enterprise funds City of Tukwila Governmental Funds General Fund Special Revenue Funds Capital Projects Fund Debt Service Funds Proprietary Funds Enterprise Funds Water Fund Sewer Fund J Surface Water Fund Internal Service Funds Golf Course Fund CAPITAL PROJECTS OVERVIEW • The City develops a six -year Capital Improvement Program-(CIP), which identifies priority investments in infrastructure and facilities. This is a planning document and a companion to the operating budget. It is reviewed and updated every two years and is currently addressing 2023 to 2028. • Capital investments include arterial streets, bridges, parks, and City facilities. • The CIP is fiscally constrained: projects must have funding identified to be included in the CIP. Identified funding includes anticipated grant awards. The CIP is therefore not a comprehensive tally of the City's full capital need. • Capital projects are typically funded by grants, impact fees, taxes restricted to capital projects (e.g. Real Estate Excise Tax), and bond proceeds. Very little General Fund revenues (except for debt service repayment) are used to fund capital projects. City of Tukwila, Washington yFr 2023-2028, FINANCIAL PLANNING MODEL AND CAPITAL IMPROVEMENT -PROGRAM _ ti. Pubiic Works Ffeet& Facilities Building Opened 07/24/22 2022 Novemb No199 9 CAPITAL PROJECTS OVERVIEW Recently completed projects Planned or potential projects • Justice Center • 42nd Ave South Bridge • Fire Stations 51 and 52 ■ Public Works Shops Phase II • Public Works Shops Phase I • Annual investment in street overlays • S. 1 19th St. Bridge Raised Crosswalk & Safety • Pedestrian and other safety -related improvements Improvements • Improvements to park amenities and trails • S. 152nd St. Safe Routes to School • The full capital program can be found here: Allentown Truck Reroute Capital Improvement Program • Tukwila Community Center HVAC Replacement :ill 10 CAPITAL PROJECTS -CHALLENGES ■ The CIP or Operating Budget does not address the full backlog in infrastructure maintenance needs, including ADA projects (see text box). ■ Funding for ongoing projects, such as the arterial street overlay program or residential street traffic calming program, has increased, but not at the rate of inflation. The City has increased parking tax revenue and solid waste utility tax, which are both dedicated to capital projects. ■ The City could better use asset management approaches and tools to efficiently maintain capital assets, including facilities. ■ The City depends on grant revenue to pay for projects. ■ Funding to maintain new facilities or infrastructure is not consistently included in the Operating Budget. The Americans with Disabilities Act (ADA) was enacted on July 26, 1990, and provides comprehensive civil rights protections to persons with disabilities in the areas of employment, state and local government services, and access to public accommodations, transportation, and telecommunications. Cities and other government agencies are required to have an ADA self - assessment and transition plan when they grow beyond a threshold of 50 full- time equivalent employees Tukwila's CIP includes $100,000 for ADA improvements in 2023 and $50,000 per year between 2024 and 2028. Investments will continue until City facilities and infrastructure meet ADA requirements, including compliance by utilities and private companies. 11 ENTERPRISE FUNDS: FOSTER GOLF COURSE ■ The Golf Course operates as an enterprise fund. An enterprise fund collects revenue from users/customers and pays for its own operations and capital improvements. ■ In 2023 revenues for the Golf Course were $2.6 million, including an annual transfer of $80,000 (net) from the General Fund. ■ Other facilities and services, including the Tukwila Community Center, youth, teen and senior recreation programs, special events, arts and activities, are subsidized by the General Fund as well. ■ The City is currently reevaluating its cost -recovery framework and implementing a new business plan for the Golf Course. 12 ENTERPRISE FUNDS: UTILITY RATE STUDY UPDATE ■ In parallel with the work of the Financial Sustainabilty Committee, a consultant is conducting a utility rate study update. ■ The next few slides provide an overview of this work. 13 WHY ARE RATE STUDIES IMPORTANT? n Your Utility Is A Business ■ Revenues need to cover utility costs and capital related to the utility ■ Revenues dedicated to utility purpose ■ Quantifies policies, priorities, and initiatives ■ Tells the "true" cost of providing service ■ Revenues from the utilities cannot be used to subsidize general fund operations Public Accountability ■ Communicates impact of financial decisions ■ Public meetings •:;> FCS CROUP Solutions -Oriented Consulting COMPREHENSIVE RATE STUDY: START TO FINISH Communication Plan communication is needed? What level of L Do your rate tructures align with your objectives? n Financial Policy Evaluation Rate Study Components Rate Design Are you adequately protected against financial risks? Revenue Requirement Forecast Cost -of - Service Analysis Are your revenues sufficient to achieve full cost recovery? Are you charging your customers equitably? L .,• FCS GROUP Solutions -Oriented Consulting REVENUE REQUIREMENT INTRODUCTION ■ Utility rates are set to recover the cost of providing service ■ Financial policies ■ Operating costs (regular / ongoing) ■ Employee salaries and benefits ■ Routine inspections & maintenance ■ Professional services ■ Utilities (e.g. electricity) ■ Capital costs (periodic) ■ Infrastructure replacement ■ Facility expansions and upgrades :ill 1 I 1 Year 1 Year 2 Year 3 Year 4 Year 5 ■ Operating ❑ Capital • FCS GROUP Solutions -Oriented Consulting HOW MUCH REVENUE IS NEEDED? Financial Policy Impacts Forecasted Operating & Maintenance Costs Rate Funded Capital Existing & New Debt Service } Annual Revenue Needs .• �•;> FCS GROUP :ill Solutions -Oriented Consulting HOW WILL COSTS BE EQUITABLY DISTRIBUTED? Revenue Needs: How big is the pie? 1 Cost of Service: How should the pie be sliced? • Residential • Commercial/Industrial •:> FCS GROUP Solutions -Oriented Consulting POTENTIAL COMMITTEE GUIDANCE ON CAPITAL PROJECTS AND ENTERPRISE FUNDS ■ Consider the community return on investment when evaluating the need, purpose, and design for new facilities. ■ Consider the fiscal sustainability of ongoing maintenance needs when evaluating potential capital investments. ■ Calibrate user fees and program revenue goals with ability to pay and social return on investment. ■ Other? II 19 FINANCIAL PLAN OVERVIEW A REMINDER: PROGRAMS & SERVICES OVERVIEW HIGHLIGHTS ■ The City provides many services. Some services are required by federal, state, or local statute, and some are discretionary. ■ Service levels were reduced during the pandemic and not all services have been restored to pre - pandemic levels. ■ Costs and demand for City services ■ The demographic makeup of the Tukwila community necessitates a high level of service. ■ Population and employment growth drive staff workload and will increase demands on the City's infrastructure. ■ The cost of providing existing services is increasing due to factors such as inflation, minimum wage requirements, and technology and training needs. 21 A REMINDER: PROPERTY TAX IN WASHINGTON Illustrative Example Funding gaps ■ In Washington, a jurisdiction's property tax revenues can only increase by 1% annually, unless the public votes for a greater increase (a levy lid lift). This is the result of Legislative action following the passage of Initiative 747 in 2001. ■ Expenditures typically grow significantly more than 1% annually due to inflation, which creates a structural gap between property tax revenues and expenses. [ [ Year 1 Year 2 Year 3 Year 4 Year 5 ■ Property Tax (1% annual growth) ■ Expenditures (3% annual growth) :ill 22 COST AND REVENUE OPTIONS These are the cost levers we can adjust. Cost Tool Limit growth in baseline costs Change levels of service Deliver services differently Other? • Find efficiencies, such as streamlining processes • Add programs or eliminate programs • Increase or decrease levels of service • Partner with other entities to provide services • Identify opportunities for the private/non-profit sectors to deliver services II COST AND REVENUE OPTIONS These are the revenue levers we can adjust. Revenue Tool Options 1 Property tax revenue •Adjust the levy rate • Use banked levy capacity • Encourage new development to expand the tax base Dedicated funding for • Establish a dedicated funding stream for transportation infrastructure or parks User fee revenue Sales tax revenue Business taxes/fees • Establish cost recovery principles • Adjust the tax rate • Encourage commercial growth to expand the tax base • Adjust the business tax rate or business license fee • Encourage business growth Grant revenue • Seek to increase grant revenues Other? II MIM FINANCIAL PLAN OVERVIEW ■ The City develops a six -year financial plan for the General Fund to see the impact of financial policies and budget decisions. It helps answer questions such as: ■ What impact will this year's budget decisions have on the future? ■ What is the future impact of a potential policy decision? ■ Revenues and expenditures are projected based on economic factors, past trends, and known program or policy changes including: ■ Property tax growth limit ■ Debt service obligations ■ Contractually obligated cost increases ■ Trends in sales tax revenue II CURRENT GENERAL FUND FINANCIAL PLAN ■ The City's six -year plan restores services to pre-COVID levels and funds positions that had been frozen or funded by one-time revenues. ■ The plan adds a B&O tax and uses some property tax capacity created by fire annexation. ■ Overall, the City's property tax rate decreases. 4 Revenue growth is sufficient to fund planned expenditures and leave a margin of 1-3% of annual revenues $ 80,000,000 $75,000,000 $70,000,000 $65,000,000 $60,000,000 $55,000,000 $50,000,000 $45,000,000 $40,000,000 impcfct of fire cmnexcrtion 2023 2024 2025 2026 2027 2028 2029 2030 Total Revenues Total Expenditures II 26 ■ FINANCIAL PLAN AND OPTIONS ■ What questions do you have? ■ What observations do you have? Next meeting: What does the 6-year financial forecast look like if we incorporate the Committee's draft recommendations? 4 We will share a forecast scenario in Meeting 5 based on today's discussion. II 27 POTENTIAL COMMITTEE RECOMMENDATIONS • :ill 28 POTENTIAL COMMITTEE RECOMMENDATIONS We've identified themes based on the Committee's review of City programs, services, priorities, and needs in Meeting 3, as well as ideas raised in Meetings 1 and 2. ■ Tonight: gain additional Committee input (not decision making). ■ Meeting 5: see the impact these ideas would have on the City's financial forecast and work towards draft recommendations. ■ Meeting 6: finalize recommendations. Questions: ■ What themes should be high priority? Which should be lower priority? ■ Are there any themes you disagree with? Others you would add? 29 MEETING CLOSE UPCOMING MEETINGS • Update to City Council February 12 Committee of the Whole • Meeting 5: Options Discussion (March 5, Tuesday) • Utility Study Update with consultants from FCSG GROUP • Updated Financial Forecast and Recommendations • Options for Cost Savings • Options for Revenue Generation • Distribution of Burden across Businesses and Residents • Meeting 6: Recommendations Discussion (April 3, Wednesday) ? Would April 2, Tuesday, work for everyone? ■ Final delivery of recommendations to City Council (April) The City is developing strategies for community engagement for the upcoming budget development process. iii 31 ROUNDTABLE CLOSING COMMENTS Working Draft Content Emergent Themes Tukwila Financial Sustainability Plan I February 2024 Overview This document identifies themes based on the Financial Sustainability Committee's review of City programs, services, priorities, and needs in Meeting 3, as well as ideas raised in Meetings 1 and 2. With refinement and agreement, we can see the impact these ideas would have on the City's financial forecast and work towards draft recommendations. For each theme, it is noted if it has been raised by staff, the Committee, or both: Hi = identified AN00 by staff = identified by Committee Some themes could be recommended guiding principles the City should consider when developing future budgets. The financial impact may be difficult to quantify in the short-term, but it could have a long-term cost or revenue impact. Others, such as increasing or decreasing the level of service of a program, may have a known short-term financial impact. = financial impact � - = guiding principle There are notes included for some themes that provide additional context to help the Committee members determine how they would prioritize these themes. Questions to Consider • What themes should be high priority? Which should be lower priority? • Are there any themes you disagree with? Others you would add? :111 Working Draft Content Land Use Themes Staff / Committee Financial / Principle Notes Consider the fiscal implications (revenues and increased costs by program) when making land use decisions. Hi SiNSiNi? Encourage business growth and build on the existing strong commercial sector. Business growth could have a positive impact on City revenues. Depending on the type, growth has an on impact the demand for services as well. Promoting more housing options is also important, both for renters and owners. Hi 00110 Development could have a positive impact on City revenues. Depending on the type, growth has an on impact the demand for services as well. Support the development of walkable spaces that function well for residents and visitors. Overall and General Government Hi Themes Staff / Committee Financial / Principle Notes Conduct rolling program audits to find opportunities for greater efficiency and effectiveness. Hi MO There may be a potential cost associated with this cis staff will be needed to conduct audits. There may be long-term cost savings. Review and streamline processes to allow staff to keep up with workload or address additional tasks. Hi MO This may require up -front costs and may not achieve significant cost savings but could allow the current level of staffing to maintain service levels. Consider opportunities to shift positions to meet needs and dedicate time to cross - training to help staff meet workload demands with existing resources NON MN This may be a challenge because the City must work within the boundaries of union contracts. Add resources dedicated to grant administration to maximize potential grant revenue for the City )IIIIII OH S�NSiNSi The City added a grants analyst in Public Works within the last few years. ,I February 2, 2024 City of Tukwila I Financial Sustainabilty Plan Emergent Themes 2 Working Draft Content Themes Staff / Committee Financial / Principle Notes Other departments could benefit from a dedicated grant analyst. Invest in retaining quality staff, which is cheaper than the cost of turnover. NSIN S?N0N0 There may be a potential cost associated with this, as the City will need to invest in staff training. Invest in financial management. N0' NS?NS? The City recently invested in a new enterprise financial management system. Implementation is a multi -year process. Evaluate the return on investment for the Tukwila community. This cannot always be quantified. NRN 0100 Seek the most efficient and effective ways to provide services, including contracting, collaboration, and alternative staffing approaches. Hi 01010 Reduce resources dedicated to equity. 101 The City Council adopted an Equity Policy in 2017. Increase resources to support hiring and recruiting. $ This would have a new cost. Increase resources to support citywide data analysis. 1111111 $ This would have a new cost. Increase resources for information technology security and emergency preparedness. $ This would have a new cost. Community and Economic Development Themes Staff / Committee Financial / Principle Notes Review and streamline processes to allow staff to keep up with workload or address additional tasks. OHO This may require up -front costs and may not achieve significant cost savings but could allow the current level of staffing to maintain service levels. Invest in business and development attraction and retention activities. N 0' SIN�N0 The General Fund budget amount for this program is $1 18,000. rill February 2, 2024 City of Tukwila 1 Financial Sustainabilty Plan Emergent Themes 3 Working Draft Content Themes Staff / Committee Financial / Principle Notes Prioritize permitting and rental housing inspection functions. 101 01010 $ The General Fund budget amount for these programs is $860,000. Deprioritize long-range planning, as well as destination development and tourism marketing. Long-range planning is a state -mandated activity. Destination development and tourism marketing are funded by lodging tax revenues, which are restricted in their use. Increase resources for environmental planning. Community Engagement Themes Staff / Committee Financial / Principle Notes Seek efficiency (perhaps via electronic records) in responding to public records requests, which is a mandated function. 101 Responses to public records requests are largely digital and the City has been steadily digitizing old records as a priority. Public records requests require reviewing electronic documents. Reduce spending on community engagement or allocate resources to targeted engagement efforts. Build on existing engagement opportunities. 101 The current General Fund budget amount for this program across all departments is $2.3M. The Committee expressed interest in getting more input from the community to help make decisions. Review the charge and purpose of Boards and Commissions to ensure these entities are being utilized to their full potential. Hi Increase resources to support the growing volume and complexity of public records requests. �IIIIII( $ rill February 2, 2024 City of Tukwila I Financial Sustainabilty Plan Emergent Themes 4 Working Draft Content Culture and Recreation Themes Staff / Committee Financial / Principle Notes Add resources dedicated to grant administration to maximize potential grant revenue for the City. The City added a grants analyst in Public Works within the last few years. Other departments could benefit from a dedicated grant analyst. Review programs and services that were reduced during the pandemic and determine what to restore based on need and demand. HRH WOO This is part of the City's budget development process. Consider increasing programs and services for preschool kids and youth/teens. HRH The General Fund budget amount for these programs is $953,000. Parks is re -assessing and refining current programming to meet the community's needs. Explore opportunities to collaborate with other cities to meet housing and social services needs. HRH RHON Collaboration depends on the willingness and financial capacity of other cities. Evaluate the value of facility rentals. HRH Parks is assessing the current mix between providing programs at the Tukwila Community Center and providing rental opportunities. Increase resources to support environmental stewardship. Increase resources dedicated to long-term capital planning. Infrastructure Maintenance/Improvement Themes Staff / Committee Financial / Principle Notes Add resources dedicated to grant administration to maximize potential grant revenue for the City. The City added a grants analyst in Public Works within the last few years. Other departments could benefit from a dedicated grant analyst. Prioritize sidewalks, potholes, and litter control, TIB bus stop/streetscape, HRH OM The General Fund budget amount for these programs is $1.7M. :111 February 2, 2024 City of Tukwila 1 Financial Sustainabilty Plan Emergent Themes 5 Working Draft Content Themes Staff / Committee Financial / Principle Notes streetscapes/median landscape, park restrooms contract. Increase resources for facility maintenance. IIIIIIII Align funding for infrastructure maintenance with inflationary cost increases. $ Public Safety Themes Staff / Committee Financial / Principle Notes As a community, determine how to define "public safety". 00000 Consider focusing on restorative justice and programs for youth. $ Consider using non -uniform personnel for some duties. 000 This may be a challenge because the City must work within the boundaries of union contracts. Maintain funding for police patrol services. 0011 SIN�Ni? The current General Fund budget amount for this program is $9M. The City adopted the B&O tax to maintain the level of police services. Prioritize narcotics & human traffic investigations; investigation of felony and juvenile crimes; and professional development and training. 000 N0'�N0 The current General Fund budget amount for these programs is $3.8M. Assess the community return on investment for the school zone safety camera program. 000 0010 This program generates funds to offset the cost of operations. It has a positive public safety benefit. rill February 2, 2024 City of Tukwila I Financial Sustainabilty Plan Emergent Themes 6 Working Draft Content City of Tukwila Program Overview Financial Sustainability Plan I Committee Observations on Programs and Services 1/9/24 This document summarizes input provided on posters at the third meeting of the Financial Sustainability Committee, on January 9, 2024. The ideas contained here are not draft recommendations and are subject to significant additional discussion and refinement by the Committee. ■ This content should be taken as it was intended: as a rough, mid -process expression of observations and questions by Committee members. ■ Please do not circulate this material beyond Committee membership as it is work -in -progress. Summary 2 Land Use 2 Overall and General Government 2 Community and Economic Development 2 Community Engagement 3 Culture and Recreation 3 Infrastructure Maintenance/Improvement 3 Public Safety 3 Raw Input from Committee 3 Land Use 4 All Categories 5 Community and Economic Development 6 Community Engagement 8 Culture and Recreation 9 General Government 11 Infrastructure Maintenance and Improvement 14 Public Safety 16 Financial Sustainability Plan I Committee Observations on Programs and Services 1 /9/24 1 Working Draft Content Summary This Summary section was drafted by the consulting team. The input provided by the Committee is represented verbatim in the following section. Land Use • Consider the fiscal implications (revenues and increased costs by program) when making land use decisions. ■ Encourage business growth and build on the existing strong commercial sector. Businesses provide significant revenue for the City. Promoting more housing options is also important, both for renters and owners. Consider the inclusion of parking options for those who rely on a vehicle. • Support the development of walkable spaces that function well for residents and visitors. Overall and General Government ■ Investing in infrastructure and public safety are the highest priority categories. Encouraging economic development is also a priority because of the potential revenue impacts. ■ Administration is a large program in each category, and it is unclear what this function provides. • Conduct rolling program audits to find opportunities for greater efficiency and effectiveness. ■ Review and streamline processes to allow staff to keep up with workload or address additional tasks. ■ Consider opportunities to shift positions to meet needs and dedicate time to cross -training to help staff meet workload demands with existing resources. ■ Add resources dedicated to grant administration to maximize potential grant revenue for the City. ■ Invest in retaining quality staff, which is cheaper than the cost of turnover. ■ Invest in financial management. ■ Evaluate the return on investment for the Tukwila community. This cannot always be quantified. ■ Seek the most efficient and effective ways to provide services, including contracting, collaboration, and alternative staffing approaches. ■ Reduce resources dedicated to equity. ■ Generally, the same level of service in this category is preferred. Community and Economic Development ■ Review and streamline processes to allow staff to keep up with workload or address additional tasks. ■ Invest in business and development attraction and retention activities. ■ Prioritize permitting and rental housing inspection functions. ■ Deprioritize long-range planning, as well as destination development and tourism marketing. [Additional discussion is needed as planning is mandated and tourism marketing is funded by dedicated revenues that cannot be used for alternative uses.] Financial Sustainability Plan 1 Committee Observations on Programs and Services 1 /9/24 2 Working Draft Content Community Engagement ■ Seek efficiency (perhaps via electronic records) in responding to public records requests, which is a mandated function. ■ Reduce spending on community engagement or allocate resources to targeted engagement efforts. Build on existing engagement opportunities and explore options for gathering statistically valid input. ■ Review the charge and purpose of Boards and Commissions to ensure these entities are being utilized to their full potential. Culture and Recreation ■ Add resources dedicated to grant administration to maximize potential grant revenue for the City. ■ Review programs and services that were reduced during the pandemic and determine what to restore based on need and demand. • Consider increasing programs and service for preschool -aged children and youth/teens. ■ Explore opportunities to collaborate with other cities to meet housing and social services needs. ■ Evaluate the value of renting City spaces for public use. Infrastructure Maintenance/Improvement ■ Add resources dedicated to grant administration to maximize potential grant revenue for the City. ■ These programs should be a high priority: sidewalks, pothole, and litter control; TIB bus stop/streetscape; streetscapes/median landscaping; and park restrooms. Public Safety ■ As a community, determine how to define "public safety". ■ Consider focusing on restorative justice and programs for youth. • Consider using non -uniform personnel for some duties. ■ Maintain funding for police patrol services. ■ These programs should be a high priority: narcotics & human traffic investigations; investigation of felony and juvenile crimes; and professional development and training. ■ Assess the community return on investment for the school zone safety camera program. Raw Input from Committee The following pages contain the dots and post -it comments provided by Committee members. Financial Sustainability Plan 1 Committee Observations on Programs and Services 1 /9/24 3 Working Draft Content Land Use How should consideration of the fiscal impacts of development affect the City's approach to economic development and land use regulation? Comments from Committee members: ■ Incentivize desired development; encourage business growth (they already subsidize residents, build on that); avoid disincentives for value add (commerce) or essential services (health and housing) ■ Promote housing: Multi -family, missing middle, ADU/DADU ■ Do not promote more industrial uses ■ Lack of parking at apartments and public spaces disproportionately affects those with less options (marginalized) ■ Stop demonizing renters. There are many people and reasons who choose not to own a home. We need to encourage intergenerational housing and provide more housing types. ■ Tukwila has no parking! i.e., Bellwether, SHAG ■ Greater retail/restaurant in a pseudo downtown setting. Where can we create a "walkable community center" such as Downtown Enumclaw or Downtown Renton? ■ Investing large draw businesses such as a new ice complex ■ Middle housing support. How do we encourage ownership? Higher revenue and lower cost/use — condos, townhouse, duplex, OWNER OCCUPIED! ▪ Adjacent comment: Yes ▪ Adjacent comment: We need this type of housing to attract good grocery stores, local restaurants, drug store/pharmacy, etc. Financial Sustainability Plan Committee Observations on Programs and Services 1 /9/24 4 Working Draft Content All Categories Where are opportunities for the City to provide less service, the same level of service, or more service at the category level? Less Service e Service Infrastructure maintenance/improvement 3.5 Public safety Community and economic development Culture and recreation More Service 6.5 (Comment) Very important 1.5 1 0.5 5 (Comment) How do we as a community want to define public safety structures? 4 (Comment) With more economic development you can pay for more services. 3.5 Community engagement 3 General government 1.5 Note All tables in this section have been sorted to put categories that scored higher on "More Service" or "High Priority" at the top. Higher scores are shaded a pink color. 1 2.5 5 1. 3.5 3 1 Financial Sustainability Plan I Committee Observations on Programs and Services 1/9/24 5 Working Draft Content Community and Economic Development Priorities and Unfunded Needs Staff to support a higher level of environmental permitting. Bringing service levels back up to pre -pandemic levels. Investment in staff and succession planning to ensure the City can maintain service levels and retain high quality staff. Opportunities for Efficiencies s 2 2 Reviewing and streamlining processes to allow staff to keep up with workload or address additional tasks. 0 Potentially shifting positions to meet needs and dedicating time to cross -training to help staff meet workload demands with existing resources. 2 4 1 3 (Comment) x1000 (Comment) Also dept. audit for efficiencies 1 (Comment) *if unfreezing positions expedites the permitting process, then do it. 7 (Comment) Department audit by outside agency is critically needed (Comment) But expensive (Comment) Look at silos. 2 0 1 (Comment) Would cross training lower efficiency? Program Name 2024 Budget 2024 FTEs Program Mandate Less Service More Service Questions and Comments 1. Business & Development Attraction/Retention $1 36,714 0.5 N - Best Practice 2. Construction Permit Review & Inspection $1,241,580 7.6 Y - Federal/State 0.5 3. Permit Intake, Issuance, Coordination $689,749 4.9 Y - Federal/State 4. Code Enforcement $518,412 3.2 Y - City Code 5. Rental Housing $169,516 1.2 Y - City Code 2 . Mandatory Training $49,918 0.2 Y - Federal/State 2 0.5 4.5 4 4 1.5 (Comment) Same service (Comment) Same service 1 dot underneath (Comment) Same service Ditto marks underneath (Comment) Same service Financial Sustainability Plan Committee Observations on Programs and Services 1/9/24 6 Working Draft Content Program Name 2024 Budget 2024 FTEs Program Mandate NOM . Long -Range & Comprehensive Planning $382,649 1.6 Y - Federal/State . City Property Development & Management $86,915 0.4 N - No Mandate .............. 9. Professional Development & Training $157,785 1.0 Y - Ordinance Resolution 1 10. Current Planning $ 375,975 2.0 Y - Federal/State 2 11. Ordinance, Resolution and Code Development $145,831 0.8 Y - Federal/State 2 12. Business License Administration $24,255 0.2 Y - City Code 2 13. Community Investment $1,966,626 7.8 N - Best Practice 2 14. Lodging Tax Oversight/Support $72,096 0.2 Y - City Code 3 15. City Policy Development $19,166 0.1 Y - Federal/State 3 16. Destination Development $439,993 0.1 N - Best Practice 4 17. Tourism Marketing $399,965 0.3 N - Best Practice 18. Administration $462,304 2.5 Y - Federal/State More Service 1 Questions and Comments (Comment) Same service (Comment) Same service (Comment) Same service (Comment) Samc scrvicc 5 Financial Sustainability Plan Committee Observations on Programs and Services 1/9/24 7 Working Draft Content Community Engagement Priorities and Unfunded Needs Training for existing staff to maintain certifications/credentials and keep current on best practices and changes in regulations. 5 11 Staff to support the increase in the number and complexity of public records -- requests. r3 (Comment) As needed 1 don't know Program Name 2024 Budget 2024 FTEs Program Less More Questions Mandate Service Service and Comments 1. Digital Records Center 2. Boards/Commissions/Committees $182,968 1.0 $352,757 1.5 3. Public Records Requests & Records Management $1,192,875 8.8 4. Communications & Community Engagement $2,328,591 12.0 Y- Federal/State Y - City Code Y- Federal/State N - Best Practice 0.5 1.5 5 1 1.5 0.5 0 (Dot) Same (Comment) If we go fully digital, we can eliminate FTEs. Permits, law, Reports. (Dot) Same (Comment) How many boa rds/commissions/committees? (Comment) The change and purpose of each Board and Commission, with the exception of the Planning Commission, needs work. We have these entities but I don't think they are being utilized to their full and best potential. (Dot) Same (Comment) Same or less (Comment) Same Total $4,057,191 23.3 Financial Sustainability Plan I Committee Observations on Programs and Services 1 /9/24 8 Working Draft Content Culture and Recreation Priorities and Unfunded Needs Resources dedicated to grant administration to maximize potential grant revenue for the City Restoring service levels to pre -pandemic levels 2 Promoting and administering citywide volunteer opportunities, programs, and initiatives Resources dedicated to facility planning, maintenance, and operations Addressing physical and operational inequities, including enhanced language access services, ADA transition planning, and barrier elimination Opportunities for Efficiencies 2 3 2 5 • 3 (Comment) Depends on service 2 2 3 3 (Comment) How much staff currently does grant work? How is it currently prioritized? Low Priority Medium Priority High Priority 't Exploration of alternative service delivery methods, such as shared service delivery or joint efforts w/other organizations/neighboring cities. Program Name Preschool Services and Program 2. Youth & Teen Services & Programs 3. Professional Development & Training .................................................................................................................................................................................................. 4. Wellness & Adult Services & Programs .................................................................................................................................................................................................. 5. Older Adult Services and Programs 6. Mandatory Training 2024 Budget $82,715 $869,555 .............................................. $65,564 .............................................. $342,810 .............................................. $354,767 .............................................. $9,158 3 2024 FTEs Program Mandate 0.6 N - No Mandate 2.0 N - No Mandate 0.2 1.1 1.8 0.1 Less Service 3 Y - Ordinance/Resolution 1 ................................................................................. N - No Mandate ................................................................................. N - No Mandate .................................................................................. Y - Federal/State 3 (Comment) Teaming up with local cities for housing options More Service Questions and Comments 0 2 (Comment) (Comment) Maybe income/need based cost increase programs (Comment) Same (Comment) Same Financial Sustainability Plan Committee Observations on Programs and Services 1 /9/24 9 Working Draft Content Program Name 2024 Budget 2024 FTEs Program Mandate Less Service More Service Questions and Comments 7. Facility Rentals 8. Administration $147,477 $749,782 0.5 N - No Mandate 4.8 Y - Federal State 2 4 (Comment) What kind of facilities are rented? (Dot) Same (Comment) Agree — what facilities? — need — community led decisions (Comment) Cost -benefit to building our own facilities? (Comment) This is the 5th time I have seen a generic "Administration" — Details? What are they doing? Tota I MIEEITMEMI Financial Sustainability Plan I Committee Observations on Programs and Services 1 /9/24 10 Working Draft Content General Government Priorities and Unfunded Needs Low Priority Medium Priority High Priority 1 don't know Resources dedicated to grant administration to maximize potential grant revenue for the City 3 Investment in staff and succession planning to ensure the City can 2 maintain service levels and retain high quality staff. Operational support for capital investments, such as staff to implement and maintain new technology Opportunities for Efficiencies 4 Low Priority 3 • Medium Priority 6 2 (Comment) Hiring new staff is more expensive than retaining staff. Sustain staffing levels to save money. High Priority (Comment) What new tech? 1 don't know Potentially shifting positions to meet needs and dedicating time to cross -training to help staff meet workload demands with existing resources Reviewing and streamlining processes to allow staff to keep up with workload or address additional tasks. 2 4 6 5 Program Name 2024 Budget 2024 FTEs Program Mandate Less Service More Service Questions and Comments 1. Essential Public Services 2. Debt Management ................................................................................................................................................................................ 3. Cyber Security/Business Continuity 0.4 N - Best Practice 0.1 Y - Federal/State 0.9 N - Best Practice 4. Financial Reporting/Audit/Account Administration $369,822 1.0 Y - Federal/State 5. Long -Range Financial Planning Model $13,699 0.1 Y - City Code 6. Benefit Plan Management $91,047 0.4 Y - Federal/State 7. Business Application Services ................................................................................................................................................................................. 8. Grants Administration & Accounting ................................................................................................................................................................................. 9. Mobility Services 0.3 Y - Federal/State 0.7 Y - Federal/State .......................................................................................................................................... 0.4 N - Best Practice 10. Data Analytics $32,539 0.2 N - Best Practice 11. Emergency Application Services $31,921 0.2 N - Best Practice 0.5 3 3 ....2 1.5 1 1.. 1 ...................................................................... 1 (Dot) Same (Comment) Low cost high return? Financial Sustainability Plan Committee Observations on Programs and Services 1 /9/24 11 Working Draft Conten Program Name 2024 Budget 2024 FTEs Program Mandate Less More Service Questions ervice and Comments 12. Professional Development & Training $192,947 0.9 Y - 1 Ordinance/Resolution 13. Payroll & Benefit Administration $325,231 1.6 Y - Federal/State 14. Council Legislative Support $71,842 0.3 Y - Federal/State 15. Investments/Cash Management/Reporting $40,114 0.2 Ordinance/Resolution 16. Civil Service Recruiting & Hiring ................................................................................................................................................................................ 17. City Policy Development ................................................................................................................................................................................ 18. Council Agenda/Meeting Functions $158,249 $178,826 .............................................. $122,517 0.7 Y - Federal/State 0.7 Y - Federal/State .......................................................................................................................................... 0.8 Y - Federal/State 19. GIS (mapping) $83,457 0.3 Y - City Code 20. Ordinance, Resolution and Code Development $63,564 0.4 Y - Federal/State 21. Budget/CIP Development $109,042 0.6 Y - Federal/State 22. Labor & Employee Relations $96,626 0.4 Y - Federal/State 23. Financial Reporting/Analysis for Departments 24. Policy Development/Compliance ............................................................................................................................................................ 25. Classification & Compensation 0.5 Y - Federal/State 0.3 Y - Federal/State ........................................................................................................................................................... 0.2 Y - Ordinance/Resolution 26. Capital Asset Accounting $12,913 0.1 Y - Federal/State 27. Indirect Cost Allocation Admin $6,560 0.0 Y - City Code 28. Mandatory Training $2,718 0.0 Y - Federal/State 29. End -User Infrastructure Services $524,987 0.6 N - Best Practice 30. Service Desk $356,826 2.1 N - Best Practice 31. Network Infrastructure Services $196,988 0.5 N - Best Practice 32. Risk Management $861,572 0.1 Y - Federal/State 33. City Attorney Services $525,987 0.0 Y - Federal/State 34. Recruiting and Hiring $157,801 0.8 Y - City Code 35. Sales and Other Taxes $451,131 2.6 Y - Federal/State 36. Equity 0.5 I 0.5 0.5 10.5 0.5 I 0.5 1 2 2 2 2.5 $125,110 0.6 Y - 3 Ordinance/Resolution 37. Administration $3,942,031 8.2 Y - Federal/State 4 (Comment) Same .:............................................................................... (Dot) Same (Comment) Contract serv? 1 dot underneath 1.5 I (Comment) Depends on which taxes and total impact. :...................................................................:....................................................................................................................................... Financial Sustainability Plan Committee Observations on Programs and Services 1 /9/24 12 Working Draft Content Program Name 2024 Budget 2024 FTEs Program Mandate 38. Governmental & Regional Affairs $313,495 1.5 Y - Federal/State 39. Accounts Payable $288,772 1.7 Y - Federal/State 40. Legislative & Budget Oversight $263,281 6.0 Y - Federal/State 41. Accts Receivable/Misc Billing/LID/etc. $260,606 1.6 Y - Federal/State 42. Business System Management/Support $176,922 0.6 Y - Federal/State Less Service More Service Questions and Comments (Dot) Same (Dot) Same (Dot) Same 1 dot adjacent (Dot) Same 1 dot adjacent (Dot) Same Total Financial Sustainability Plan Committee Observations on Programs and Services 1 /9/24 13 Working Draft Content Infrastructure Maintenance and Improvement Priorities and Unfunded Needs Resources dedicated to grant administration to maximize potential grant revenue for the City 1 Investments in risk management and workplace health and safety Operational support for capital investments such as facility and park maintenance 1 Dedicated sources of funding for capital projects Resources dedicated to facility planning, maintenance and operations Addressing physical and operational inequities, including enhanced language access services, ADA transition planning, and barrier elimination 3 (Comment) This should be private development only not city (ADA). 2 4 2 1 5 1 1 (Comment) Need cap projects - how are they to be funded matters Program Name 2024 Budget 2024 FTEs Program Mandate Less Service More Servic Questions and Comments 1. TIB Bus Stop/Streetscape ............... 2. Pothole and Litter Control 3. Park Restrooms Contract $83,976 ..................................................................................................................................................................................................................................................................... 4. Graffiti, vandalism & garbage $223,223 ..................................................................................................................................................................................................................................................................... 5. Streetscapes/Median Landscape $92,400 ............... 6. Parks Maintenance ............... 7. Trail Maintenance 8. Parks Facility Maintenance $315,789 2.2 $1,155,174 0.4 0.0 1.5 0.8 $1,536,910 4.5 $274,310 $211,652 9. Grounds Maintenance -City Facilities $89,974 ......................................................................................................................................................................................................................................................................... 10. Sidewalks $77,422 ......................................................................................................................................................................................................................................................................... 11. Facility Management & Improvement $2,011,828 12. Traffic Control Devices 13. Street Cleaning 14. Snow & Ice Control 0.6 1.6 0.7 0.4 7.8 N - Best Practice .................................................................... N - Best Practice ................................................................ N - Best Practice .................................................................... N - Best Practice .................................................................... N - Best Practice N - Best Practice ...................................................................... N - Best Practice N - Best Practice N - No Mandate Y - City Code N - Best Practice 2.7 Y - Federal/State ............................................................................................ 0.8 Y - Ordinance/Resolution 1 1.0 Y - City Code 2.5 8.5 2 1.5 (Dot) Same :.......... ....................................... 8 I (Dot) Same ...5......................................................................... (Dot) Same 5 2 2.5 (Comment) Low cost - high return infrastructure (Dot) Same :................................................. (Dot) Same (Comment) Need more data on what's included in this. (Dot) Same (Dot) Same Financial Sustainability Plan Committee Observations on Programs and Services 1 /9/24 14 Working Draft Content Program Name 2024 Budget 2024 FTEs Program Mandate Less Service More Service Questions and Comments 15. Video & Fiber 16. Budget/CIP Development 17. Mandatory Training .............................................................................................................................................................................................................. 18. Grants Administration & Accounting ................................................................................................................................................................................................................ 19. Professional Development & Training ................................................................................................................................................................................................................ 20. Administration ................................................................................................................................................................................................................ 21. Environmental Stewardship 22. Street Lighting 23. Projects & Capital Improvement Management 24. Minor Structural Repairs $151,611 ...............__...__.............. $132,729 ...............__...__.............. $28,083 ................_...._................ $140,834 .._..................................... $23,383 0.9 0.7 0.1 0.8 0.1 $1,147,263 5.4 $880,566 $679,648 $40,329,210 $51,448 4.9 2.5 9.1 Y - City Code Y - Federal/State Y - Federal/State Y - Federal/State Y - Ordinance/Resolution 2 Y - Federal/State 2 Y - Ordinance/Resolution 2 Y - Ordinance/Resolution N - Best Practice 0.4 N - Best Practice 0.5 1 1 2 2 1 0.5 (Dot) Same (Dot) Same (Dot) Same (Comment) Need more data on what's included in this. (Dot) Same $50,787,534 49.7 Financial Sustainability Plan Committee Observations on Programs and Services 1 /9/24 15 Working Draft Content Public Safety Comments ■ How do we as a community want to define public safety? ■ We need restorative justice - programs for youth [2 dots on sticky note top corners] ■ State patrol should be on I-5/highway ■ Use of non -uniform personnel for some duties [1 dot plus additional comment "Yesl"] Program Name 2024 Budget 2024 FTEs Program Mandate Less Service More Service Questions and Comments 1. Narcotics & Human Traffic Investigations ...................................................................................................................................................................................................................... 2. Investigation of Felony and Juvenile Crimes 3. Community Risk Reduction 4. Professional Development & Training 5. Animal Control ............... 6. Homeless Encampment Response .............................................................................................................................................................................................. 7. Case Management .............................................................................................................................................................................................. 8. Emergency Preparedness & Response 9. Community Investment .............................................................................................................................................................................................. 10. Police Patrol Services 11. Court Support Services ................................................................................................................................................................................................... 1 2. Valley Independent Investigative Team 13. Public Safety Plan 14. Community Policing Team ................................................................................................................................................................................................... 15. Police Support Operations ................................................................................................................................................................................................... 16. Fire Services Contract 17. Evidence and Property Management $443,453 6.3 11.4 0.0 1.3 $125,142 0.0 $46,618 ....................................................... $414,622 ....................................................... $640,853 $162,297 ....................................................... $9,039,888 $209,797 .............................................. $98,805 .............................................. $18,138 $973,842 .............................................. $1,201,183 ............................................................. $14,202,720 (Comment) Wow! $332,542 0.2 2.3 1.1 1.0 36.1 1.4 0.5 0.1 0.0 N - Best Practice Y - City Code Ordinance/Resolution Y- Ordinance/Resolution Y - City Code ................................................................................................... N - Best Practice Y - Federal/State 1 Y - Federal/State 1 N - Best Practice 1 Y - City Code 1 Y - Federal/State ............................................................................ N - Best Practice Y - City Code ................................................................... N - Best Practice ........................................................................... N - Best Practice 1 ..................................................................... Not Applicable 2 2.2 Y - Federal/State 1 L • 3 13 ...................... 2 2 2 1 (Comment) Keep fully funded (Comment) I second that! (Comment) Same. (Comment) Keep. 1 dot (Comment) Need more on what this giant $ means? (Dot) Same Financial Sustainability Plan Committee Observations on Programs and Services 1 /9/24 16 Working Draft Content Program Name 2024 Budget 2024 FTEs Program Mandate Less Service More Service Questions and Comments 18. Professional Standards 19. Prosecution Services 20. Health & Safety 21. Court Interpreter Program .......................................................................................................................................... 22. Accounts Payable 23. Fire Retiree Benefits 24. Risk Management .......................................................................................................................................... 25. Mandatory Training 26. Public Defense Program 27. Critical Incident Response $323,553 ............................................... $155,231 $96,912 $73,864 ............................................... $1,000 ........................................ $309,500 .......................... $365,664 ............................................... $551,850 .............................................. $448,184 ............................................... $394,697 1.6 Y - Federal/State 0.0 Y - Federal/State 0.3 Y - Federal/State 0.3 Y - Federal/State 0.0 Y - Federal/State 0.0 Not Applicable 1 ...................................................................................................................................................................... 0.0 Y - Federal/State 1 2.3 Y - Federal/State 1 0.1 Y - Federal/State 1 1.7 N - Best Practice 28. Traffic Enforcement & Crash Investigation Team $913,639 4.5 .......................................................................................................................................................................... 29. Detention & Incarceration Services 30. Emergency Management Program 31. Civil Service Recruiting & Hiring .................................................................................................................................................................. 32. Administration 33. School Zone Safety Cameras $1,123,782 $412,537 0.3 2.0 Y - Federal/State ............................................................................. Y - Federal/State Y - Federal/State 1.3 Y - Federal/State .......................................................................................................................................... 4.6 Y - Federal/State 3.0 N - Best Practice 1 1 1.5 2 2 2 2.5 3 0.5 0.5 1 (Dot) Same (Dot) Same (Dot) Same 1 dot (Comment) 1 police or fire (Comment) Police response or fire? Who does this (Comment) Federal? FEMA? Grants? (Comment) 1 ROI (Comment) What is the return on investment for this? Financial Sustainability Plan Committee Observations on Programs and Services 1 /9/24 17