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HomeMy WebLinkAboutCOW 2024-03-25 Item 4C - Budget - 2025-2026 Biennial Budget Development Kick-OffCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 3/25/24 VC ITEM INFORMATION ITEM NO. 4.C. STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 3/25/24 AGENDA ITEM TITLE 2025-2026 Budget Development Kick Off CATEGORY ® Discussion Mtg Date 3/25/24 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Altg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY 2025-2026 Budget Development Kick Off and Discussion REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC DATE: ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. Finance COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 3/25/24 MTG. DATE ATTACHMENTS 3/25/24 Info Memo dated 3/25/24 Proposed Budget Calendar Power Point Presentation 45 46 City of Tukwila Thomas McLeod, Mayor Finance Department - Vicky Carlsen, Director INFORMATIONAL MEMORANDUM TO: Committee of the Whole CC: Mayor McLeod FROM: Vicky Carlsen, Finance Director BY: Tony Cullerton, Deputy Finance Director DATE: March 25, 2024 SUBJECT: 2025 — 2026 Budget Kickoff Meeting SUMMARY This presentation aims to apprise the council of the commencement of the 2024-2025 biennial budget preparation process. Finance will provide regular updates on budget information from now until budget adoption. Tonight's presentation marks the beginning of the 2025-2026 budget process. It will cover various aspects including the Budget Process, Roles, Council Touchpoints, Community Engagement Overview, and details on Priority Based Budgeting (PBB). ATTACHMENTS Proposed 2025-2026 Biennial Budget Calendar Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 47 48 City of Tukwila Proposed 2025-2026 Biennial Budget Calendar *Note* To make the best use of Council time, Workshops may take place during COW, Regular Meeting, or Special Work Sessions, depending on schedules and other legislative items. February March Budget Steering Committee convenes- Program list reviewed and refined. Programs rescored as necessary. Drafting of 2025-26 City Work Plan Launch Phase 1 Community Engagement Process- Balancing Act sorting budget buckets, priorities, trade-offs, etc. Council workshop: Budget Kick -Off, overview of Budget Process, critical path, community engagement plan, budget drivers/assumptions, Mayor's Goals/Priorities April Budget Call / Kick -Off w/ City Staff- budget worksheets sent to Departments Budget Steering Committee convenes Budget Liaison Group convenes- begins supporting Department budget development Council Workshop- Program Budgeting 101; Capital Budgeting 101 April 1-30 Launch Phase 2 Community Engagement Process- ETC statistically valid community survey and Boards/Commissions outreach Financial Sustainability Plan Recommendations Presentation: • Council guidance regarding Financial Sustainability Committee recommendations • Preliminary Council guidance/assumptions Budget Steering Committee convenes April 15— May 15 Launch Phase 3 Community Engagement Process- Balancing Act testing Financial Sustainability Committee recommendations Department Narratives Due to Finance May Draft budgets due for Finance, Debt, Fund 611 Firemen's Pension, Fund 302 Urban Renewal, Fund 303 General Improvements, Fund 304 Fire Improvements, Fund 305 Public Safety Plan, Fund 109 Drug Seizure Fund) Council Workshop • Results and recommendations from Community Engagement Process; • Utility Cost of Service Analysis • Department Goals and Objectives due Budget Steering Committee convenes Page I 1 49 May - July Department heads prepare budget estimates (on/before the 4th Monday in September) • Departments incorporate City Work Plan items into Department Work Plans June Department Head meetings w/City Administrator & Finance Director to review budget proposals & work plans Department Accomplishments Due Department Year -End Projections Due Draft budgets due for: Finance- Fund 502- Employee Healthcare, Finance- Fund 503- LEOFF 2 Healthcare, Fund 301- Parks, Trails & Open Space, Fund 103- Residential Streets, Fund 104- Bridges & Arterial Streets, Fund 401- Water, Fund 402- Sewer, Fund 412- Surface Water July Department Head meetings w/City Administrator & Finance Director to review budget proposals CPI-W released by DOR Council Workshop • Overview of Capital Improvement Program (CIP) including: capital (Residential Street, Bridges & Arterial Streets, Parks, Trails & Open Space, City Facilities)project funds, utility funds (Water, Sewer, Surface Water), and golf course Finance provides Departments salary/benefits information Draft budgets due for: City Council, Mayor's Office, Mayor's Office- Economic Development, Mayor's Office- Lodging Tax, Administrative Services- Human Resources, Administrative Services- Information Technology, Administrative Services- City Clerk, Administrative Services- Human Services, Administrative Services - Communications, Finance, Parks and Recreation- Parks, Rec and Golf, DCD, Court, Police, Public Works, Public Works -Streets August 2023-24 Budget Amendments due to Finance 2025-26 Work Plan Draft finalized Finance reconciles and builds 2025-26 Preliminary Draft Operating and Capital Budget Finance presents 2025-26 Preliminary Draft Operating and Capital Budget (no later than first Monday in October per RCW) Council Workshop- Overview of Funds Special Revenue (Drug Seizure, Lodging Tax), General (Contingency), Debt Service (LTGO, UTGO, LID #33, Guaranty), Internal Service (ER&R, Self -Insured Healthcare, LEOFF 1 Retiree, Firemen's Pension) September Council Workshop- Presentation of Preliminary 2025-26 Budget Page 12 50 Council Workshops- Program Presentations- Aligned & Innovative Services, Strategic & Responsive Engagement, Connected & Vital Infrastructure, Accessible Mobile Networks October Council Workshops- Program Presentations (Healthy & Sustainable Community, Integrated Operations, Safe & Resilient and Capital Improvement Program Council Workshop & Public Hearing Council Workshops- guidance, deliberations, and direction on finalizing budget proposal Revised 2025-26 Proposed Operating and Capital Budget Released November Council Workshop(s) & Public Hearings • Tax Levy Legislation (property tax legislation must be sent to the County by November 30) • Budget Legislation- 2023-24: Ordinance amending 2023-24 Budget • Budget Legislation -2025-26: Ordinance adopting 2025-26 Budget • Fire and Park Impact Fees • Consolidated Fee Schedule Council Meeting • Adoption of 2025-25 Biennial Operating and Capital Budget (must be adopted by December 31, 2024 December Final 2025-26 Adopted Operating and Capital Budget + Budget Brief Released Page 13 51 52 CITY OF TUKWILA 2025-26 1 1 1.1.1b BUDGE DEVELOPMENT PROCESS I March 25, 2024- City Council Meeting The City of opportunity, the community of choice. Budget Kick -Off Presentation 01 CA) 01 Marty Wine Interim City Administrator Vicky Carlsen Finance Director Tony Cullerton Deputy Finance Director Today's Briefing • Budget Process, Roles & Council Touch Points • Community Engagement Overview • About Priority Based Budgeting ICity of Tukwila 2025-26 Budget Development 2 I Budget Process per State Law The City of Tukwila's budget procedures are mandated by RCW 35A.33 • October 2-Mayor submits a proposed budget to the City Council • November- City Council conducts public hearings on the proposed budget • By December 31- Council makes any adjustments and adopts by ordinance • January- Final adopted budget published & distributed Source: City of Tukwila, WA 2023-2024 Biennial Budget, P. 18. City of Tukwila 2025-26 Budget Development 3 01 07 Tukwila Budget Process • The City Council, Mayor, City Administrator, Department Directors, City staff and residents all participate in the budget process • Budget planning includes reviews of • City Strategic Plan • Policy Priorities for the next biennium • City Financial Policies • Final estimates of revenues, expenditures and capital improvement investments • The six -year capital improvement program is developed in conjunction with the biennial budget. • The preliminary budget is presented to the Council and the final budget is adopted in late November or early December. Source: City of Tukwila, WA 2023-2024 Biennial Budget, P. 18. City of Tukwila 2025-26 Budget Development 4 Tukwila Budget Process- cont'd • The adopted biennial budget takes effect on January 1st of odd numbered years. • Biennial budgeting vs. annual budgeting • Mid -Biennium Reviews • Occurs in both budget years. • The City Council authorizes transfers within funds and must approve by ordinance any amendments that increase the total for the fund. Source: City of Tukwila, WA 2023-2024 Biennial Budget, P. 18 - " City of Tukwila 2025-26 Budget Development 5 U7 v 01 00 Financial Structure of the City Budget GOVERNMENTAL FUND TYPES General Fund: Supports general operations of the City. Taxes are the principal source. Accounts for all City resources except those required to be accounted for in a different fund. Special Revenue Funds: Revenues which are legally or administratively restricted for special purposes. Debt Service Funds: Account for resources necessary to pay principal and interest on general long-term debt. Capital Projects Funds: Accounts for financial resources to be used for the acquisition or construction of capital items, facilities, or infrastructure. Not to be used for maintenance or repairs. Source: City of Tukwila, WA 2023-2024 Biennial Budget, P. 25. PROPRIETARY FUND TYPES Enterprise Funds: Accounts for operations that are financed and operated in a manner similar to business enterprises. Internal Service Funds: Used to account for operations or services to other departments on a cost reimbursement basis. FIDUCIARY FUNDS Account for assets held by the City in a trustee capacity and cannot be used to support the City's own programs. City of Tukwila 2025-26 Budget Development 6 Budget Inputs System Plans Transportation; Parks; Water; Sewer; Stormwater Utility Rate Stu +ie� Council & Community Engagement Facilities Studies & Recommendations Mayor's Priorities City Strategic Plan City Comp Plan Update City Work Plan 6-Year Financial Forecast Statistically Valid Polling Results Business & Strategic Plans Financial Sustainability Committee ,commPrictlions Operating and Capital Budget Proposal City of Tukwila 2025-26 Budget Development 7 U1 CD O Strategic Foundation City Strategic Plan Goals • Acommunityof inviting Neighborhoods and Vibrant Business Districts • A solid foundation for all Tukwila residents • A diverse & regionally competitive economy • A high performing & effective organization • A positive community identify & image City Comprehensive Plan Land Use • Housing Element • Economic Development • Natural Environment • Parks, Recreation & Open Space • Regional Centers • Utilities • Capital Facilities City of Tukwila 2025-26 Budget Development 8 Critical Milestones MARCH BUDGET KICK-OFF JULY Dep't Budget Submittals 6 Year Financial Forecast & Town Hall NOVEMBER Public Hearings & Final Budget Adoption APRIL-MAY Community Engagement & Feedback AUGUST Budget Document Prep DECEMBER Final Adopted Budget Distributed APRIL-MAY Policy Review & Council Guidance SEPTEMBER Preliminary Budget Proposal Program Presentations JUNE Capital& Transportation Plans OCTOBER Program Presentations Revised Proposed Budget City of Tukwila 2025-26 Budget Development 9 a, 0) Ni Budget Development Roles Mayor • Sets Priorities and Goals Council • Establishes strategic goals & priorities to provide framework for budget • Sets policy and adopts the final budget Staff • Informs and develops the budget Community • Financial Sustainability Committee • Boards/Commissions • Community Members ICity of Tukwila 2025-26 Budget Development 10 I Budget Outreach & Engagement Seeking community priorities: • uommunity Survey (ETC Institute - statistically valid sample) • Balancing Act tool • Board/Commissions outreach • Council Town Hall City of Tukwila 2025-26 Budget Development 11 a) W CD Budget Outreach & Engagement Phase 1- Community Feedback • Program Based Budgeting • Budget Priorities & Trade-offs Phase 3- Boards & Commissions • Program Based Budgeting • Budget Priorities & Trade-offs Phase 2- Statistically Valid Survey • Needs and Priorities Phase 4- City Staff & Council • Program Based Budgeting • Budget Priorities & Trade-offs City of Tukwila 2025-26 Budget Development 12 Foundations of Priority � Based Budgeting • • Prioritize services • Do the important things well • Question past patterns of spending • Know the true cost of doing business • Provide transparency of community priorities • Provide transparency of service impact: • Demand accountability for results • Evaluating programs based on their influence in achieving the Strategic Goals Source: City of Tukwila, WA 2023-2024 Biennial Budget, P. 30 ICity of Tukwila 2025-26 Budget Development 13 6) 01 CD 0) Priority Based Budgeting (PBB) A priority -driven budgeting process that demonstrates how resources are allocated to the programs and services that provide the greatest value to our residents. PBB • Drives alignment between the City Strategic Plan and community priorities • Encourages strategic decision -making regarding funding, adding and/or eliminating programs and services Source: City of Tukwila, WA 2023-2024 Biennial Budget, P. 30. City of Tukwila 2025-26 Budget Development 14 Program Alignment & Categorization Aligned & Innovative Strategic & Responsive Services Accessible Mobile Networks Engagement Healthy & Sustainable Community y Connected & Vital Infrastructure Integrated Operations Safe & Resilient "W- ICity of Tukwila 2025-26 Budget Development 15 6) CD 00 Program Alignment and Categorization Aligned & Innovative Services E4 Strategic & Responsive Engagement Prioritizes timely and reliable solutions efficiently and effectively across internal programs and services Endeavors to foster an inclusive community characterized by open communication, transparency and equitable access to municipal services for all residents g g Strategically allocates resources to enhance assets and infrastructure and ensures the 88� provision of safe and sustainable utilities for both residential and commercial Connected&Vital communities Infrastructure Accessible Mobile Networks Prioritizes investments in mobility and well -maintained transportation routes throughout the city, encompassing streets, sidewalks, and trails, to facilitate safe, accessible and efficient travel for both residents and visitors City of Tukwila 2025-26 Budget Development 16 Program Alignment and Categorization Healthy & Sustainable Community Integrated Operations Naha owe .. Safe & Resilient Values a healthy environment and exemplifies a well planned and structurally sound city, offering a diverse array of cultural and recreational amenities that supports an active community. Offers comprehensive support in financial management, technology integration, and policy development to various program areas within the city. Committed to fostering a structurally sound community, ensuring both residents and visitors feel safe and secure. City of Tukwila 2025-26 Budget Development 17 O, CO v O Next Steps • Program list refined and programs re -scored as needed • Public outreach to gather budget input & feedback • Department heads prepare budget estimates • Council Budget Workshop — Overview of capital projects • City Council Town Hall • Finance & Administration review department budgets; community feedback evaluated • Mayor presents draft budget to Council ICity of Tukwila 2025-26 Budget Development 18 CITY OF TUKWILA 2025-26 x 1 1 BUDGE DEVELOPMENT PROCESS te41 Ana it The City of opportunity, the community of choice.