HomeMy WebLinkAboutCOW 2024-04-22 Item 4A - Discussion - Financial Sustainability PlanCOUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's review
Council review
4/22/24
LH
ITEM INFORMATION
ITEM NO.
4.A.
STAFF SPONSOR: VICKY CARLSEN
ORIGINAL AGENDA DATE: 4/22/24
AGENDA ITEM TITLE City of Tukwila Financial Sustainability Plan
CATEGORY ® Discussion
Mtg Date 4/22/24
❑ Motion
Mtg Date
❑ Resolution
Mtg Date
❑ Ordinance
Mtg Date
❑ Bid Award
Mtg Date
❑ Public Hearing
Mtg Date
❑ Other
Mtg Date
SPONSOR ® Council ® Mayor ❑ Admin Svcs ❑ DCD
Finance ❑ Fire ❑ P&R ❑ Police ❑ PW
SPONSOR'S
SUMMARY
The City contracted with Berk Consulting on the creation of a Financial Sustainability Plan,
including the creation of a Financial Sustainability Committee that met 6 times between
November 2023 and April 2024. The work is complete and this is the Report to the City
Council.
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.
COMMITTEE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
AMOUNT BUDGETED
APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
4/22/24
MTG. DATE
ATTACHMENTS
4/22/24
Presentation
Final Draft Report
Technical Appendix
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Southrenter
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+ Tukwila Pond Park
4
City of Tukwila Financial
Sustainability Plan
April 2024 I Final Draft Report
3.3
Financial Sustainability Committee
Arta Baharmast
Phillip Combs
Jacob Halverson
Kathy Hougardy
Krysteena Mann
Karin Masters
Peggy McCarthy
Annie McGrath
Amber Meza
Abdiwali Mohamed
Diane Myers
David Puki
Verna Seal
Greg Sherlock
Project Team Leadership
Vicky Carlsen, City of Tukwila Finance Director
Laurel Humphrey, City of Tukwila Council Legislative Analyst
Pete Mayer, City of Tukwila Parks and Recreation Director
Marty Wine, City of Tukwila Acting City Administrator
:ill BERK
STRATEGY 11 ANALYSIS 11 COMMUNICATIONS
2200 Sixth Avenue, Suite 1000
Seattle, Washington 98121
P (206) 324-8760
www.berkconsulting.com
"Helping Communities and Organizations Create Their Best Futures"
Founded in 1988, we are an interdisciplinary strategy and analysis firm providing integrated, creative and
analytically rigorous approaches to complex policy and planning decisions. Our team of strategic planners, policy
and financial analysts, economists, cartographers, information designers and facilitators work together to bring
new ideas, clarity, and robust frameworks to the development of analytically -based and action -oriented plans.
Project Team
Brian Murphy • Project Manager
Katherine Goetz • Plan Lead
Ariel Hsieh - Analyst
DRAFT APRIL 2024
34
Executive Summary
Like many communities in Washington, the City of Tukwila (the City) faces an ongoing structural budget
deficit and was significantly impacted by the pandemic and resulting economic slowdown. At the same
time, the City strives to maintain services to the community, respond as the community's needs change, and
meet external mandates. Because of recent financial challenges, the City is making a concerted effort to
work toward a more financially sustainable future. Being financially sustainable means balancing the cost
of programs, services, and infrastructure investments with affordable and equitable impacts to taxpayers
and ratepayers. It means being able to provide community -valued programs, services, and investments
over the long-term.
The development of the Financial Sustainability Plan was guided by a Financial Sustainability Committee
(FSC) made up of Tukwila residents, business owners, and nonprofit leaders. The Financial Sustainability
Committee served in an advisory role to City staff, the Mayor, and City Council and developed
recommendations after reviewing the City's financial forecast, programs and services, and community
makeup. The Committee emphasized ways the City could effectively use existing resources to deliver
quality City services to residents and businesses and to achieve long-term financial sustainability.
The Committee's recommendations fall under the following three categories:
0 Be Good Stewards of Public Resources. Build a culture of continuous improvement and �
implement approaches and tools to improve the City's efficiency and effectiveness.
0
o Invest in the Tukwila Community's Highest Priorities. Align services with community priorities
o and prudently manage the tax burden on residents and businesses.
0
Invest in Tukwila's Future. Make targeted investments to achieve long-term cost savings and
improved outcomes for the Tukwila community.
Many municipal financial sustainability efforts focus on how to increase revenues to pay for everything a
city wants to do. Another sustainability strategy is to "bend the cost curve" to ensure expenditures can
align more closely with ongoing revenues. The FSC focused on opportunities to "bend the cost curve" or
employ efforts to use existing resources efficiently and slow growth in costs over time. The FSC's
recommendations are grounded in its sense of the Tukwila's community ability to pay.
The FSC suggests that the City of Tukwila takes the following phased approach to implementing the
guidance contained in this Plan.
1. Implement recommendations that advance the City's financial management, resource
effectiveness, and cost containment abilities.
2. Make deeper investments in efficiency and effectiveness.
3. Over the long-term, communicate openly and honestly with the Tukwila community about demands
for City services and the City's performance, including efficiency gains.
Some of the recommendations would require up -front investment. The City's adopted 6-year financial
plan has sufficient revenues to fund these investments.
FINAL DRAFT APRIL 2024
35
Working Toward a Financially Sustainable Future
Developing a Financial Sustainability Plan
Contents
City of Tukwila Financial Sustainability Plan 1
Introduction 2
2
2
Context 4
Community Vision, Values, and Planning 5
Makeup of the Tukwila Community 6
Tukwila's Financial Condition 9
Budget History and Choices Going Forward 15
Committee Recommendations 16
Phased Implementation 21
Financial Strategy 23
Financial Forecast with Committee Recommendations 25
Conclusion and Next Steps 27
FINAL DRAFT APRIL 2024
36
Introduction
Working Toward a Financially Sustainable Future
The City of Tukwila faces an ongoing structural budget deficit and was significantly impacted by the
pandemic and resultant economic slowdown. At the same time, the City strives to maintain quality services
for the Tukwila community, respond as the community's needs change, and meet external mandates.
The City is making a concerted effort to work toward a more financially sustainable future. Being
financially sustainable means balancing the cost of programs, services, and infrastructure investments with
affordable and equitable demands on taxpayers and ratepayers. It means being able to provide
community -valued programs, services, and investments over the long-term. Being financially sustainable
does not necessarily mean that the process of setting a budget will be easy; there may still be choices to
make about the levels of service to provide and how best to fund them.
The current City budget incorporates two significant changes that present opportunities: the adoption of a
new revenue stream and a significant change in service delivery. The City adopted a Business &
Occupation Tax, which begins in 2024, and began paying the Puget Sound Regional Fire Authority (RFA)
for service instead of having a City fire department. In 2025, Tukwila will become part of the Puget
Sound Regional Fire Authority (RFA) so the City will no longer pay for fire and emergency services and
no longer collect the corresponding property tax revenue. These actions — diversifying revenue sources
and reducing ongoing expenditures — are important elements that can enhance the City's long-term
financial sustainability. It is also important to consider that while the City no longer collects revenues for
the provision of fire service, taxpayers continue to bear this cost, with payments directed towards the
RFA.
Developing a Financial Sustainability Plan
Cities and counties across Washington are challenged to establish a financially sustainable future in the
face of structural fiscal challenges. The work that went into developing this report incorporates
information and perspectives unique to Tukwila in order to have a Tukwila -specific plan.
The development of the Financial Sustainability Plan was guided by a Financial Sustainability Committee
(FSC) made up of fourteen Tukwila residents, business owners, and nonprofit leaders. The FSC served in
an advisory role to City staff, the Mayor, and City Council. The plan was developed in collaboration with
City staff and supported by a consulting team. The consulting team presented contextual information to
the FSC and facilitated discussions about options to enhance financial sustainability.
The FSC met six times in person between November 2023 and April 2024 and discussed the following:
■ Community context. Information about Tukwila's demographics and employment profile in
comparison to select peer cities.
: ill FINAL DRAFT APRIL 2024 2
3,
City of Tukwila Financial Sustainability Plan
Introduction
■ Community vision and priorities. The City's priorities as identified in adopted plans and prior
public engagement conducted in 2021 in preparation for development of the next biennial budget.
■ City revenues and expenditures. Information about the City's primary revenue sources and
expenditure categories with a focus on the General Fund, the City's largest and most flexible fund.
■ City programs and services. The City's programs, services, and departmental priorities. The FSC
indicated which should be a high priority and which should be a lower priority.
■ Financial impact of recommendations. The estimated financial impact of preliminary FSC
recommendations based on the City's adopted financial forecast.
■ Recommendations for long-term financial sustainability. Draft guidance based on discussions
among the FSC and recommendations from individual members. The FSC then finalized
recommendations for the City, which are described in Committee Recommendations.
A separate Technical Appendix provides the full suite of information that was shared with the Committee
for discussion.
:ill
38
FINAL DRAFT APRIL 2024 3
Context
This section presents context that is essential to understanding Tukwila's financial position and the
opportunities and challenges it faces in seeking to achieve fiscal sustainability, including:
■ Community Vision, Values, and Planning
■ Makeup of the Tukwila Community
■ Tukwila's Financial Condition
■ Budget History and Choices Going Forward
:ill FINAL DRAFT APRIL 2024 4
39
City of Tukwila Financial Sustainability Plan
Context
Community Vision, Values, and Planning
The following planning documents were informed by significant community engagement and have been
adopted by Council. They serve as foundational guidance for City efforts and informed the development
of this Financial Sustainability Plan.
• Strategic Plan
• Comprehensive Plan
■ Parks, Recreation, and Open Space Plan
■ Economic Development Strategy
■ Resolution 1921: Tukwila's Equity Policy
Common themes across these guiding documents describe the Tukwila community's desire for:
• Great neighborhoods and quality public spaces.
■ A vibrant and diverse economy.
■ A positive community identity.
• Opportunity for all Tukwila residents.
From the City of Tukwila
Strategic Plan
COMMUNITY VISION
The city of opportunity,
the community of choice.
CITY MISSION
To provide superior services
that support a safe, inviting
and healthy environment for our
residents, businesses and guests.
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40
FINAL DRAFT APRIL 2024 5
City of Tukwila Financial Sustainability Plan
Context
Makeup of the Tukwila Community
The demographics of the Tukwila community had a significant impact on the recommendations of
the Financial Sustainability Committee. Several of these recommendations remind policy makers and
staff to be mindful of the Tukwila community's particular service needs and to ensure that City services
and facilities are designed with the Tukwila community in mind.
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 1). Almost 20% of the Tukwila population identifies as Hispanic or Latino, which is nearly
double the King County average (Exhibit 2). Tukwila has a larger share of renter -occupied households
than peer cities and King County as a whole (Exhibit 3). Tukwila has a higher share of low-income
households than King County, particularly among renters (Exhibit 4). Tukwila residents identify as less
healthy than residents in King County and Washington State (Exhibit 5).
Exhibit 1: Racial Composition of Tukwila and King County, 2021
13%
19%
33%
Tukwila
9%
4%
6%
61%
King County
■ 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
Note: Labels are suppressed for shares under 1 %.
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates; BERK, 2023.
:l11 FINAL DRAFT APRIL 2024 6
41-
City of Tukwila Financial Sustainability Plan
Context
Exhibit 2: Hispanic or Latino Composition of Tukwila and King County, 2021
82%
Tukwila
90%
King County
Hispanic or Latino
• Not Hispanic or Latino
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates; BERK, 2023.
Exhibit 3: 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%
45%
47%
37%
51%
32%
44
40%
Tukwila Burien Kent Renton SeaTac King County
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020; BERK, 2023.
:III FINAL DRAFT APRIL 2024 7
42
City of Tukwila Financial Sustainability Plan
Context
Exhibit 4: Renter Households by Median Family Income, Tukwila, Peer Cities, and King County, 2020
21%
15%
13%
27%
Tukwila
w
10%
25%
20%
12%
14%
24
28
16%
18%
17%
9%
20%
20%
22%
11%
18%
27%
39°
11%
14%
15%
Burien Kent 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)
Note: Median family income refers to the HUD Area Median Family Income for the Seattle -Tacoma -Bellevue Metropolitan
Statistical Area, which is adjusted based on household size.
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020; BERK, 2023.
Exhibit 5: Select Community Health Indicators, Tukwila, King County, and Washington State, 2021
40
35
30
25
20
15
10
5
0
Fair or poor Frequent Unhealthy days Unhealthy days Disability (%) No primary Uninsured age
health (°I°) mental distress (18+) (days) (65+) (days) care provider 18-64 (%)
(%) (%)
■ SeaTac/Tukwila ■ King County ■ Washington State
Source: Public Health — Seattle & King County, City Profile Data, 2021; BERK, 2023.
:11 FINAL DRAFT APRIL 2024 8
43
City of Tukwila Financial Sustainability Plan
Context
Tukwila's Financial Condition
Tukwila has significant assets and real challenges to fiscal sustainability, some of which are common to
local governments in Washington, and some of which are unique to Tukwila. The following forces are
explained on the following pages:
• Inflation is Outpacing Growth of Core Revenues
• Demand for City Services is Increasing
• Tukwila's Role in the Regional Economy Comes with Benefits and Challenges
Inflation is Outpacing Growth of Core Revenues
One factor that impacts every city and county in Washington is the
limit on annual property tax growth. 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)1. A city's baseline
expenditures typically grow more than 1 % annually due to inflation,
creating a structural funding gap as shown at right. If the community
requests additional services, this can increase costs even more. When
property tax comprises a large share of a city's ongoing revenues,
which it does in Tukwila, it contributes to a growing gap between
revenues and expenses.
New construction is not subject to the 1 % limit on the total property
tax a city can collect, so taxes levied on new construction provide a
one-year bump to property tax revenue. This creates a financial
incentive for cities to grow. While this growth provides additional revenue, in property tax revenue and
other revenues associated with construction and future uses of the property, it creates an additional
service need for a city as well. More residents and/or employees mean greater use of infrastructure like
the road network and services like permitting or law enforcement.
Illustration of Structural
Funding Gap Created by
Property Tax Cap
I
Funding gaps
di
Year 1 Year 2 Year 3 Year 4 Year 5
• Property Tax (1% annual growth)
• Expenditures (3%annual growth)
The regional labor market is putting pressure on employee costs, which comprise a large share of
city budgets. Most services that the City provides to Tukwila residents, businesses, and visitors are labor-
intensive and the City spends the largest percentage of General Fund expenditures on salaries and
benefits. As cities in the region compete for new employees and seek to retain current employees, many
are increasing wages. Tukwila's employee compensation is guided by a City Council -adopted
compensation policy and philosophy. The policy states that the City will seek to set salaries at the market
average for non -represented positions and at a "competitive" level for represented employees.
Other costs of providing existing services are increasing. This will impact the City's ability to provide
the same level of services over time. Some costs are outside of a department's control, such as the impact
of inflation on supplies or services or participation in mandated training. The City has also made
significant investments in infrastructure and systems. These investments need ongoing operational support.
1 This is the result of Legislative action following the passage of Initiative 747 in 2001.
▪ 111 FINAL DRAFT APRIL 2024
44
9
City of Tukwila Financial Sustainability Plan
Context
Exhibit 6 and Exhibit 7 show Tukwila's ongoing revenues and expenditures compared to the annual
Consumer Price Index for Urban consumers (CPI-U) for Seattle -Tacoma -Bellevue. In these exhibits, the
revenue and expenditures associated with fire and emergency medical services have been taken out to
provide consistent information over time. Prior to 2023, the City had a Fire Department. In 2023 and
2024, the City is paying the Puget Sound Regional Fire Authority (RFA) for service as it transitions to
Tukwila receiving service directly from the RFA in 2025.
Exhibit 6 shows that ongoing revenue growth has on average been lower with inflation. Over half of
Tukwila's ongoing revenue comes from property tax and sales tax. Property tax grows more slowly than
inflation, as mentioned above, and sales tax is subject to economic conditions, which have been unusually
volatile due to the pandemic. Exhibit 7 shows that ongoing expenditure growth has on average been in
line with inflation.
Exhibit 6: Tukwila's Ongoing Revenues and Annual CPI-U, 2016-2028
t S80,000,000 450
o Revenue impact
570,000,000 ] 400
$60,000,000
$50,000,000
$40,000,000
$30,000,000
520,000,000
S 10,000,000
350
300
250
200
150
100
50
$0 0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Revenues w/o Fire Annual CPI-U
--- Linear (Revenues w/o Fire) .' - Linear (Annual CPI-u)
Annual CPI-U
Note: Ongoing revenues to support Fire and EMS services have been removed to allow for easier comparison between the
periods before and after annexation into the Regional Fire Authority.
Sources: City of Tukwila budgets; Bureau of Labor Statistics, 2024; BERK, 2024.
:ill FINAL DRAFT APRIL 2024 10
45
City of Tukwila Financial Sustainability Plan
Context
Exhibit 7: Tukwila's Ongoing Expenditures and Annual CPI-U, 2016-2028
t 580,000,000
0
a $70,000,000
560,000,000
$50,000,000
$40,000,000
530,000,000
$20,000,000
510,000,000
50
2016 2017 2018 2014 2020 2021 2022 2023 2024 2025 2026 2027 2028
Expenditures w/o Fire Annual CPI-U
— Linear {Expenditures w/o Fire) — t Linear (Annual CPI-U)
450
400
350
300
250
20❑
15❑
100
50
0
Annual CPI-U
Note: Ongoing expenditures to support Fire and EMS services have been removed to allow for easier comparison between the
periods before and after annexation into the Regional Fire Authority.
Sources: City of Tukwila budgets; Bureau of Labor Statistics, 2024; BERK, 2024.
Demand for City Services is Increasing
While the impacts of the property tax cap and inflation as described above make it difficult for Tukwila
to retain current service levels, several factors are contributing to an increase in demand for City services.
The Tukwila community benefits from a high level of service. The City has various social service needs.
There are many new residents, including refugees and people seeking asylum. The consumers of City
services may need individualized support. City staffing levels are higher than the size of the residential
population would require; departments must have staff to support the high number of daytime visitors.
Tukwila must plan for additional residents and jobs over the next 20 years. Based on state law and
the region's plan for growth, the City must plan for 1 3,000 (58%) more residents and 17,000 (38%)
additional jobs by 2044 (Exhibit 8 and Exhibit 9). This growth will impact staff workload and will
increase demands on the City's infrastructure.
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FINAL DRAFT APRIL 2024 11
City of Tukwila Financial Sustainability Plan
Context
Exhibit 8: Tukwila Historical and Projected Residential Population, 1990-2044
c
0
a
a.
0
a.
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
2023 population: 22,780
2044 target: 36,005
(+2.2% per year) , o
0
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045
Year
Sources: Washington Office of Financial Management, 2023; Puget Sound Regional Council, 2023.
Exhibit 9: Covered Employment in Tukwila, 2000-2045
Covered Employment
70,000
60,000
50,000
40,000
30,000
20,000
10,000
2022 employment: 45,825
2044 target: 63,074
(+1.5% per year) ___o
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.
Population and employment growth are drivers of staff workload and will increase demands on the
City's infrastructure and services. As the City grows in residential population and employment, it will
likely implement new projects and add new employees, which adds to the workload of internal service
departments. With more residents, jobs, and daytime visitors, some departments will need to add staff to
provide the same level of service.
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12
4,
City of Tukwila Financial Sustainability Plan
Context
1
Total City staffing per 1,000 residents has decreased slightly since 2016, during which time the
City's population has continued to grow. While City staffing does not have to track with
population, population tends to be a driver of demand for services.
Tukwila Population and Full-time Equivalent Positions per 1,000 Residents, 2016-2023
Tukwila Population
25,000
15,000
10,000
5,000
0
2016 2017 2018 2019 2020 2021 2022 2023
Tukwila Population — — — FTEs per 1,000 residents (without Fire)
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
FTEs per 1,000 residents, without Fire
Sources: City of Tukwila budgets; Washington Office of Financial Management, 2024; BERK, 2024.
Tukwila's Role in the Regional Economy Comes with Benefits and Challenges
Tukwila has an outsized commercial sector that includes a regional retail center and a large regional
employment base. While most Tukwila businesses have 100 or fewer employees, Tukwila is also a
regional shopping destination with Southcenter Mall and significant adjacent retail that draws shoppers
into the community. Tukwila is also a regional employment center with approximately 45,800 jobs, or
2.03 jobs for every resident. Most jobs are in the service, retail, and manufacturing sectors and most
workers commute from outside the City. Jobs in Tukwila are projected to grow over the next two
decades. Tukwila sees approximately 150,000 daytime non-residents who commute in for shopping and
employment. This increases the demand for public services and increases City revenues, as described in
the following section.
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FINAL DRAFT APRIL 2024 1 3
City of Tukwila Financial Sustainability Plan
Context
Tukwila's strong commercial sector provides a financial benefit for the City, but also brings
significant costs. Over 25% of Tukwila's General Fund revenues are from sales taxes. With the
Southcenter Mall, a majority of Tukwila's taxable retail sales are attributed to consumer shopping.
Having a strong commercial sector and associated sales tax revenue means Tukwila is not as reliant on
property tax revenue as many other cities, but the commercial sector has an impact on costs as well. The
Police Department is one department that tracks data based on location. The Department found that of
police case reports that we know are for either business or residential properties, approximately 82%
are associated with business. The cost to provide services to residents and businesses is difficult to
measure for all City services as departments may not track their workload data by location or customer
type. Going forward, the FSC recommends the City better track and communicate key performance
indicators, including measures of demand for City services.
By estimating the share of City revenues generated by residential and commercial properties, we found
that Tukwila's residential population contributes approximately 18% of total revenues and the
commercial sector contributes approximately 82%, as shown in Exhibit 10. This split aligns with the
Police Department case report data. In this analysis, property tax and utility taxes are split based on the
current share of property tax revenue from each sector, which is 67% from commercial properties and
33% from residential properties. Sales tax is split based on the share of residents and share of estimated
daytime visitors, assuming 22,780 residents and 150,000 daytime visitors. B&O tax, business license fee
revenue, and gambling/admission taxes are attributed all to commercial sources.
Exhibit 10: Tukwila Major General Fund Revenues and Residential/Commercial Split, 2023
Property Tax
Sales B&O Business Utility Gambling/ Share of
Tax Tax License Taxes Admissions Total
Fees Taxes
2023
Budget
................................
Residential $5,835,000 $2,687,000 $1,419,000
$17,682,000 $20,378,000 $3,000,000 $3,230,000 $4,300,000 $5,516,000
Commercial $11,847,000 $17,691,000 $3,000,000 $3,230,000 $2,881,000 $5,516,000
18%
82%
Notes: Amounts have been rounded to the nearest $1,000.
Source: City of Tukwila, 2023; BERK 2024.
AI FINAL DRAFT APRIL 2024 14
49
City of Tukwila Financial Sustainability Plan
Context
Budget History and Choices Going Forward
Before 2020, the City balanced its budget and aligned expenditures with available revenues. Ongoing
revenues have grown more slowly than expenditures, putting the City's budget in a structural deficit. With
a structural deficit, cities must make choices about the level of service it provides to its community that
align with available revenues. In 2020, Tukwila was hit hard by the pandemic. Total General Fund
revenues declined by 7% in 2020, as retail establishments closed, and many people moved their
shopping online. This structural deficit required reduced service levels that aligned with what the lower
revenues could support.
Luckily, Tukwila and other cities received federal American Rescue Plan Act (ARPA) funds to offset the loss
of local revenue and support greater service needs for the community. From 2021 to 2024, the City used
one-time federal revenues to reinstate key positions and restore some services, however, this funding will
lapse at the end of 2024, which means Tukwila must identify alternative revenue sources going forward.
The City adopted a new Business & Occupation tax, to begin in 2024, to fully fund the Police
Department. This new revenue source also further diversifies the City's revenue streams. The City will
annex into the Puget Sound Regional Fire Authority in 2025, which will reduce a large expenditure for
the City and create flexibility in the City's general property tax levy capacity.
The City's adopted 6-year General Fund Financial Plan assumes use of about half of the property tax
capacity created with annexation into the RFA, starting in 2025. This revenue will continue funding
services that were restored in the 2023-2024 budget and fund all remaining services that were
reduced during the pandemic.
Exhibit 11 shows the City's revenues and expenditures over time and highlights the use of one-time
revenues and potential property tax capacity in 2025-2028.
Exhibit 11: Tukwila Revenues and Expenditures and Annual CPI-U, 2016-2028
$80,000,000
$70,000,000
S60,000,000
$50,000,000
$40,000.000
$30,000,000
S20,000,000
S 10,000,000
50
2016 2017 2018 2019
2020 2021 2022
i
2023
Revenues we) Fire One-tiirrefederal revenues =Proposed property tax capacity -Expenditures w/o Fire
2025
2026
2027
2028
Annual CPI•ll (Seattle -Tacoma -Bellevue)
Note: Ongoing revenues and expenditures to support Fire and EMS services have been removed to allow for easier
comparison between the periods before and after annexation into the Regional Fire Authority.
Sources: City of Tukwila budgets; Bureau of Labor Statistics, 2024; BERK, 2024.
450
400u
350
300
250
200
150
- 100
50
0
50
FINAL DRAFT APRIL 2024 15
Committee
Recommendations
The Financial Sustainability Committee developed the following recommendations after reviewing the
City's financial forecast, programs and services, and community makeup. The Committee emphasized
ways the City could effectively use existing resources to deliver quality City services to residents and
businesses and to achieve long-term financial sustainability.
The Committee's recommendations are organized in three categories:
Q:0 1. Be Good Stewards of Public Resources. Build a culture of continuous improvement and
implement approaches and tools to improve the City's efficiency and effectiveness2.
0
0 2. Invest in the Tukwila Community's Highest Priorities. Align services with community
0
o6
priorities and prudently manage the tax burden on residents and businesses.
3. Invest in Tukwila's Future. Make targeted investments to achieve long-term cost
savings and improved outcomes for the Tukwila community.
Each of these areas of focus are described in more detail on the following pages. A dollar sign ($) is
used to designate strategies that will require investment of City resources to implement and the
Committee's recommendations for phased implementation are presented on page 21.
2 "Investment" icon by Mahmure Alp from https://thenounproject.com/icon/investment-1033156/
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16
City of Tukwila Financial Sustainability Plan
Committee Recommendations
Q40 1. Be Good Stewards of Public Resources
a. Build a culture and City processes that focus on quality and continuous improvement.
■ Instill a dedication to public service that centers resource stewardship and the
provision of high -quality services to Tukwila residents and businesses. This could
include recognition or performance awards for staff who identify ways to enhance
effectiveness, reduce costs, enhance revenue, or otherwise advance the City's goals.
■ Implement comprehensive continuous improvement and quality control efforts. Use
consultants and internal expertise to systematically refine service delivery by
streamlining processes, reducing waste, and maximizing customer benefits. This could
include increasing procurement limits and reducing the number of approval steps. $
■ Conduct rolling performance audits of large or impactful programs. Review programs
to identify opportunities for achieving greater efficiency and effectiveness. Use
independent consultants to conduct performance audits in key programmatic areas. $
■ Track program -specific key performance indicators (KPIs) to capture demands for
service and program performance. Use this information to report on the City's ability to
meet community needs and its resource efficiency (costs for service delivery) over time.
b. Implement efficient and effective service delivery models.
■ Identify opportunities to increase staff productivity. Enhance systems for performance
management and accountability. Consider opportunities to shift positions to meet needs
and dedicate time to cross -training to help staff meet workload demands with existing
resources. Conduct a review of the City's remote -work policies and practices.
■ Ensure leaders have the skills and capacity they need to manage staff effectively.
Also identify opportunities to establish "working manager" roles where managers
provide service delivery capacity as well as supervising others' work.
■ Be smart about the use of consultants. Seek the most efficient and effective balance of
staff capacity and costs, consultant costs, and aggressiveness of the City's work plan.
Leverage consultant contracts to build durable tools and enhance staff capacity. Review
consultant engagements to identify lessons learned.
c. Carefully manage City staff: Tukwila's greatest asset and most significant expenditure.
■ Conduct a third -party review of the City's employment positions, salaries, and
benefits to ensure the City has an optimal staffing structure given the service needs
of the Tukwila community. Thereafter, continue to conduct total cost of compensation
studies on a regular basis. Use robust vetting process and place new hires at
appropriate paygrade and position level. $
■ Streamline management staffing capacity with the transition of fire services to the Puget
Sound Regional Fire Authority. Take advantage of this reduction in City staff numbers and
management complexity by looking for opportunities to more fully use or consolidate existing
executive level staff.
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FINAL DRAFT APRIL 2024 17
City of Tukwila Financial Sustainability Plan
Committee Recommendations
• Explore creative opportunities for efficient staffing within the bounds of labor
agreements. This could include deploying non -uniform personnel to deliver some
appropriate public safety services, redeploying seasonal employees during periods of
low demand to other work areas, contracting, and considering tiered employment
positions and apprenticeships that allow new employees to gain knowledge and
experience. This may attract younger Tukwila residents to apply. The City could raise
awareness of job openings among high school students and others via Tukwila media,
social media, and community networks.
■ Include consideration of non -salary benefits (insurance, pensions, paid time off, etc.)
when benchmarking staff compensation. Recognize that compensation will vary by
jurisdiction and choose benchmark cities appropriately.
d. Closely manage the City's capital investments and assets.
■ Make capital investments that provide the best return on investment for the
community. Consider the City's ability to pay for ongoing maintenance and capital
replacement needs when considering potential new capital investments.
■ Calibrate the design of new facilities to a Tukwila -appropriate standard. Invest
appropriately by considering design, amenities, and likely future use by the community.
Focus on the fit, form, and function and be practical and efficient with the programming
of a facility. Involve those who will use a facility in the design process.
• Avoid cost overruns in future capital investments by implementing strong project
management tools and practices. Seek to use experienced capital project managers to
ensure projects remain within budget. $
e. Review the City's reserve policy. List specific events for which the City's reserve funds will
be used and give guidance on how much should be used. In future economic downturns,
consider using reserves to supplement essential public services rather than reducing services.
f. Proactively and transparently share information about the City's financial health and
intended financial strategies to build trust with the Tukwila community.
■ Transparently communicate the City's performance and financial needs and
strategies in the face of inflation and changes in demands for service. The KPIs
generated in 1 a. should be incorporated in this reporting.
■ Continue to publish full quarterly financial reports of all funds. This will provide the
community with valuable information without their need to submit a Public Records
Request.
■ Provide regular reporting on implementation of this study's recommendations as
described in the Implementation section below.
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53
City of Tukwila Financial Sustainability Plan
Committee Recommendations
0
0 2. Invest in the Tukwila Community's Highest Priorities
a. Use a lens of the expected return on investment for the Tukwila community to evaluate
City service and capital expenditures. Tukwila's population is younger, more mobile, more
diverse, lower income, and less healthy than King County overall. Consider Tukwila's unique
community makeup when prioritizing and tailoring City services and capital investments,
recognizing that return on investment may not always be quantifiable.
■ Regularly conduct a statistically valid survey of Tukwila residents and businesses to
determine needs and priorities. Ensure this survey accurately reflects Tukwila's cultural and
linguistic diversity. Use this information in budget setting and service design. $
■ Prioritize investments in 1) public safety and 2) maintaining existing assets. See 3) Invest
in Tukwila's Future, below.
• Use the City's established Priority -Based Budgeting process to direct resources to
programs and services that best meet community needs.
b. Balance service needs and the use of property tax capacity in the next budget cycle. Use
surveys of residents and businesses to evaluate the community's priorities and service level
expectations. Be transparent with the community about what level of service can be
provided. Consider the net burden when setting policy for property tax levels and other tax
or rate adjustments, seeking to balance revenue generation needed to provide quality City
services with maintaining affordability for lower income households and smaller businesses.
c. Provide excellent customer service to Tukwila residents and businesses. $
■ Reduce silos across City departments to enhance customer service and efficiency of
service delivery.
■ Evaluate cost-effective ways community members can access in -person and online
services, such as kiosks at other City facilities or expanded operating hours at City Hall.
• Use tools such as See -Click -Fix to effectively monitor and respond to community requests
or needs. Analyze the data received to identify and proactively address trends and
patterns. Assess community satisfaction of service delivered.
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19
City of Tukwila Financial Sustainability Plan
Committee Recommendations
0 3. Invest in Tukwila's Future
a. Plan for future land uses that will strengthen the City's fiscal position and the
sustainability of high -quality City services. Increase growth and development in a targeted
way to create new revenue and create future revenue streams.
b. Encourage business growth and investment in the Tukwila economy. Foster opportunities
for business and take care of established businesses to create a healthy economy, which will
ultimately generate revenues for the City. $
■ Fund the City's economic development function and implement the City's Economic
Development Strategy. Share progress on the implementation of the Economic Development
Strategy.
■ Leverage economic development strategies such as the Multifamily Tax Exemption, Tax
Increment Financing, and other tools.
■ Maintain competitiveness in taxes and fees with neighboring jurisdictions. Consider having
either the B&O tax or the business license fee, not both. $
c. Involve the community in defining Tukwila's approach to public safety. Safety is an
essential human need and "public safety" will typically rate very highly in community priority
surveys, but a more nuanced understanding is needed to clarify what we mean by the term
and what kinds of investments we'll make to enhance public safety, including consideration of
preventative and reactive policing, as well as investments in recreation programming for
youth, considering public safety in land use planning and development, and investments in
maintaining and enhancing physical infrastructure. $
d. Invest in the City's existing assets: Tukwila's staff and infrastructure. Embrace an
understanding that we make the most efficient use of existing resources and avoid long-term
costs by investing in our people and maintaining physical assets in a state of good repair. $
■ Invest in retaining quality staff, which is less expensive than the cost of turnover and
provides more consistent, high -quality services for residents. Retention efforts should
be balanced with clear performance requirements and recognition that a healthy level
of turnover should be seen as an opportunity to enhance the City's skilled staff and bring
its compensation structure into line.
■ Develop a plan and asset management model for the City's assets. Develop a lifecycle
replacement plan for City facilities and systems. Assess the City's properties and identify their
best use. Sell properties with no future City use identified.
■ Maintain street and sidewalk infrastructure in a state of good repair to avoid more
expensive long-term costs.
e. Invest in the City's expertise and capacity in functions that are critical for financial
sustainability. $
■ Strengthen the City's financial management, human resources management, and capital
project management.
■ Strengthen grant administration to enhance service delivery via grant awards.
Opportunity areas include infrastructure, parks and recreation, and public safety.
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55
Phased Implementation
The Committee suggests that the City of Tukwila takes the following phased approach to implementing
the guidance contained in this Plan.
First, implement recommendations that advance the City's financial management, resource
effectiveness, and cost containment abilities.
Specific recommendations that fall in this immediate call to action include:
1 a. Build a culture and City processes that focus on quality and continuous improvement.
1 f. Proactively and transparently share information about the City's financial status.
2a. Use a lens of the expected return on investment for the Tukwila community to evaluate City service
and capital expenditures.
2b. Balance service needs and the use of property tax capacity in the next budget cycle.
3e. Invest in the City's expertise and capacity in functions that are critical for financial sustainability.
Second, make deeper investments in efficiency and effectiveness.
Related recommendations include:
1 b. Implement efficient and effective service delivery models.
1 c. Carefully manage City staff: Tukwila's greatest asset and most significant expenditure.
1 d. Closely manage the City's capital investments and assets.
1 e. Review the City's reserve policy.
2c. Provide excellent customer service to Tukwila residents and businesses.
3a. Plan for future land uses that will strengthen the City's fiscal position and the sustainability of high -
quality City services.
3b. Encourage business growth and investment in the Tukwila economy.
3c. Involve the community in defining Tukwila's approach to public safety.
3d. Invest in the City's existing assets: Tukwila's staff and infrastructure.
Over the long-term, communicate openly and honestly with the Tukwila community about demands
for City services and the City's performance, including efficiency gains.
Several strategies described in the preceding section are designed to position the City in a trusted
relationship with the community it serves and is dependent on for revenues. By tracking program -specific
key performance indicators, capturing demands for service and program performance (Strategy 1 a) and
proactively and transparently sharing information about the City's financial health and financial
strategies (Strategy 1 c), the City will be seen as a trusted steward of public resources and as a provider
of services that are essential to the well-being and prosperity of the whole Tukwila community. Both
residential and commercial tax payors will be more informed and more open to conversations about City
services and revenue requirements.
56
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City of Tukwila Financial Sustainability Plan
Phased Implementation
Over time, inflation, increasing demand for services, and other factors will erode the City's ability to
provide the desired services to the Tukwila community. At this point, the City may reconstitute a Financial
Sustainability Committee or otherwise strategize for how to engage tax payors in discussion about their
willingness to pay for desired service levels. The City's efforts to achieve cost efficiencies and
transparently communicate with its community will have placed it in a trusted position to engage in this
conversation and potentially ask for additional resources.
:ill FINAL DRAFT APRIL 2024 22
5,
Financial Strategy
The Financial Sustainability Committee emphasized ways the City could effectively use existing resources
to deliver quality City services to residents and businesses and to achieve long-term financial
sustainability. The Committee did not explore options for additional revenue beyond what is in the City's
adopted 6-year Financial Plan and does not recommend adopting new revenue tools at this time.
Many financial sustainability efforts focus on how to increase revenues to pay for everything a city wants
to do. But revenue is one side of the equation. Cost is the other side of the equation, and another
sustainability strategy is to "bend the cost curve" to ensure expenditures can align more closely with
ongoing revenues. The FSC focused on opportunities to "bend the cost curve" or employ efforts to use
existing resources efficiently and slow growth in costs over time. The FSC's recommendations are
grounded by the Tukwila community's ability to pay.
The FSC reviewed the City's adopted 6-year Financial Plan and its assumptions, which include the
continuation of the B&O tax and use of about half of the property tax capacity created with annexation
into the RFA. This property tax revenue will continue funding services that were restored in the 2023-
2024 budget and fund all remaining services that were reduced during the pandemic. The FSC
considered the net impact of:
■ City property taxes. These were assumed at the levy rate of $1.1 2 per $1,000 of assessed value in
2025 as assumed in the adopted Financial Plan.
■ City's utility fees. The City is conducting a utility rate study which has identified revenue needs for
City -owned utilities based on required capital and operating investments. Estimated future rates for
example residential and commercial customers were provided to see the total estimated impact. This
analysis assumes that the existing rate structure for residential and commercial customers would be
maintained. This policy choice will be evaluated by the City Council in the near future.
■ The RFA's property taxes and fire benefit charge.
The results of exploratory analysis are shown in Exhibit 12 for residents and Exhibit 13 for a variety of
example business types. Both exhibits show that while taxes related to the City's property tax will go
down, overall payments, inclusive of City property taxes and utility fees, as well as the RFA's property
taxes and fire benefits charge, will go up. This generated concern among some Committee members
recognizing the financial challenges this may create for some. This balance of service delivery/revenue
requirements and tax burden will continue to be a challenge for Tukwila and other communities.
The FSC's suggestions related to future revenues are to:
■ Maintain competitiveness in taxes and fees with neighboring jurisdictions as additional investment in
Tukwila's economy will generate long-term financial returns and supplement revenues generated
from the residential community.
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FINAL DRAFT APRIL 2024 23
City of Tukwila Financial Sustainability Plan
Financial Strategy
■ Consider the net burden when setting policy for property tax levels and other tax or rate
adjustments, seeking to balance revenue generation needed to provide quality City services with
maintaining affordability for lower -income households and smaller businesses.
Exhibit 12: Estimated Annual Tax and Utility Fee Impact on Average Residential Property
Year
RFA - annual
City - annual City - annual RFA - annual Fire Benefit Annual
property tax utility fees property tax Charge Total
2024 $1,225 $1,236 Not applicable Not applicable
2025
Increase
(Decrease)
$715
($510)
$1,320
$84
$459
$459
$290
$290
$2,461
$2,784
$323
Notes: The 2023 median residential assessed value is $510,000. The square footage of this example property is 2,060.
Utility fees reflect winter rates for water, sewer, and surface water.
Sources: City of Tukwila 2023; King County Assessor, 2024; BERK 2024; FCS Group, 2024.
Exhibit 13: Estimated Annual Tax and Utility Fee Impact on Example Businesses
City - RFA -
City - City - annual RFA - annual Fire
Type of annual annual business annual Benefit Annual
Business Year property tax utility fees charges property tax Charge Total
Small
retail
2024
2025
$649
$379
$ 2,364
$2,508
Increase
(Decrease) ($270) $144
Not
$448 applicable
$448
$0
$243
Not
applicable
$295
$3,461
$3,873
$243 $295 $412
Large retail
2024 $51,457
............................................................................................
2025 $30,034
Increase
(Decrease) ($21,423) $1,836
Not
applicable
$19,281
Not
applicable
$125,923
$22,338 $147,955
$0 $19,281 $22,338 $22,032
Restaurant
2024 $5,349
...........................................................................................
2025 $3,122
Increase
(Decrease) ($2,227) $1,404
Not
$7,936 applicable
$7,936
$ 2,004
Not
applicable
$1,298
$0 $2,004 $1,298 $2,479
Note: Utility fees reflect winter rates for water, sewer, and surface water. The example small retail property is approximately
1,500 square feet; the example large retail property is approximately 150,000 square feet; the example restaurant
property is approximately 8,800 square feet.
Sources: City of Tukwila 2023; King County Assessor, 2024; BERK 2024; FCS Group, 2024.
:111 FINAL DRAFT APRIL 2024 24
59
City of Tukwila Financial Sustainability Plan
Financial Strategy
Financial Forecast with Committee Recommendations
The financial forecast that incorporates the FSC's recommendations is shown in Exhibit 14 and Exhibit 15.
Revenues in the financial forecast are sufficient to fund the FSC's recommendations. The forecast includes
the following expenditure assumptions tied to Committee recommendations:
1. Be Good Stewards of Public Resources
1 a. Use of performance audits and continuous improvement to achieve efficiency and
effectiveness in the City's operations. There may be an initial cost to conduct
audits or train staff on process improvement.
1 b. Workforce development initiatives (performance management, leadership
development, recruitment, and retention). There may be an initial cost to
implement a performance management system or other tools to support staff
development.
1 c. A third -party review of the City's employment positions, salaries, and benefits.
The City currently conducts a third -party compensation study; expanding the
scope of this study may increase the cost.
1 d. Implementation of strong project management tools and practices. There may be
an initial cost to adopt software tools or training.
i i=1
0 2. Invest in the Tukwila Community's Highest Priorities
0
ov
2a. Prioritization of investments in 1) public safety; and 2) maintaining existing assets.
This recommendation may increase costs or redirect existing resources to these
priorities.
2a. Funding for a statistically valid survey (planned in 2024 using budgeted funds).
2c. Funding for the City's SeeClickFix program (currently funded with federal funds,
$17,500)
2c. Funding for document scanning in the City Clerk's Office ($10,000).
2c. Restoration of City Hall operating hours (no additional cost).
3. Invest in Tukwila's Future
3d. Funding to support capital asset management and maintenance of existing assets
(1-2 FTEs, $120,000-$240,000).
3e. Funding for citywide grant application and administration. (1-1.5 FTEs, $90,000-
$1 35,000). Additional grant revenue to support capital projects is not shown in
the General Fund financial forecast but will increase capacity in the Capital
Projects Fund.
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FINAL DRAFT APRIL 2024 25
City of Tukwila Financial Sustainability Plan
Financial Strategy
Exhibit 14. Projected Revenues and Expenditures with Recommendations, 2023-2028
$ 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
2023 2024 2025 2026 202- 2028
Revenues Expenditures -Adopted — — ^ Expenditures-CommitteE
Source: City of Tukwila, 2023; BERK 2024.
Exhibit 15. Projected Revenues and Expenditures with Recommendations, 2025-2028
Category Projected Projecte• Projected Projected
2025 • 2027
$66,814,000 $68,258,000 $69,792,000 $71,551,000
..............................................................................................................................................................................................................................................................................
$66,733,000 $68,107,000 $69,428,000 $70,784,000
..............................................................................................................................................................................................................................................................................
$81,000 $151,000 $364,000 $767,000
Note: Amounts have been rounded to the nearest $1,000. The expenditures represent the higher end of the range of costs.
Source: City of Tukwila, 2023; BERK 2024.
111 FINAL DRAFT APRIL 2024 26
61-
Conclusion and Next Steps
This plan can be a tool the City Council can use to inform policy setting and budget development for the
upcoming budget cycle and in future cycles. The plan's guidance can be used as a framework for
upcoming City Council discussions about budget priorities and the use of revenue tools. The City Council
has choices ahead of it that are discussed in this plan, such as setting tax rates and utility rates.
The plan can also inform ongoing operations and decision -making at the City staff level. The Committte's
recommendations include some specific tactics for the City to consider implementing in the next budget or
future budgets.
This plan represents the input from an engaged community and a committed staff team. The Financial
Sustainability Committee members and others in the community can continue to be partners in addressing
Tukwila's fiscal challenges. One of the plan's recommendations is to provide regular reporting on
implementation. As mentioned in the Implementation section, the City's efforts to achieve cost efficiencies
and transparently communicate with its community will place it in a trusted position to have conversations
about balancing the desire for services and the funding needed to provide them.
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62
City of Tukwila Financial
Sustainability Plan
Technical Appendix I DRAFT April 2024
Contents
Appendix A: Community Profile 2
Appendix B. City Services and Budget Overview 20
Appendix C. Financial Overview 27
Appendix D. Community Priorities 39
Appendix E. City Programs and Services 43
Appendix F: Service Level Adjustments 55
Appendix G: Adopted Financial Forecast 57
1 63
Appendix A: Community Profile
This profile 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.
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.
• 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
Exhibit 1: Tukwila and Peer Cities
e
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and
9
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Redmond /id
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5
East Ren!oe
tar .e.a'ighlanCs
Sea'fac Cascade -Fanwood I,
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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.
64111 DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
i2
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 (). 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 2016 to 2023, Tukwila grew faster than King County and peer cities in the
region (Exhibit 2).
Exhibit 2: Tukwila Historical and Projected Residential Population, 1990-2044
c 40,000
0
.`a
35,000
a
0
30,000
25,000
20,000
15,000
10,000
5,000
2023 population: 22,780
2044 target: 36,005
(+2.2% per year) ,o
,
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.
:iII DRAFT 4/1 6/2024 City of Tukwila 1 Financial Sustainability Plan Technical Appendix
365
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). Almost 20% of the Tukwila population identifies as Hispanic or Latino, which is nearly
double the King County average (Exhibit 5).
Exhibit 4: Racial Composition of Tukwila and King County, 2021
13%
19%
33%
Tukwila
9%
4%
6%
King County
Note: Labels are suppressed for shares under 1 %.
■ 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.
6111 DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
4
Exhibit 5: Hispanic or Latino Composition of Tukwila and King County, 2021
82%
Tukwila
10%
King County
Hispanic or Latino
Not Hispanic or Latino
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates.
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 6). The top three language groups spoken
at home in Tukwila are English, Asian and Pacific languages, and Spanish. The City generally translates
written materials for the community into Somali, Spanish, and Vietnamese. Tukwila School District notes that
it has students that speak more than 80 world languages.
Exhibit 6: Language Spoken at Home, Tukwila, Peer Cities, and King County, 2021
54 %
Tukwila
Burien
58%
Kent
M
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.
:111 DRAFT 4/1 6/2024 City of Tukwila 1 Financial Sustainability Plan Technical Appendix
567
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 7).
Exhibit 7: Age Distribution in Tukwila and King County, 2021
Population by Age Range
2,500
2,000
1,500
1,000
500
0
10.5%
6.7%
9.1%
6.9%
,1 Tukwila
— — — King County
In a v a v a v a v a v a v a v o• v {.
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o I 7 I I I I i I I I I I I I I co
r
- C3 in ❑ Le) Q to 0 In 0 In Q in 0 In 0
C — — ry ry 07 C) v v 10 LI) ,o '0 N. N. CO
Age Cohort
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates.
68:11I DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
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 8). 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 9). Tukwila has a similar number of people per household compared to
all peer cities, but a slightly higher number than King County (Exhibit 10).
Exhibit 8: Household Profile by Age, Tukwila and King County, 2021
Percent of Households
35%
30%
25%
20%
15%
10%
5%
0%
28%
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.
.�1I DRAFT 4/1 6/2024 City of Tukwila 1 Financial Sustainability Plan Technical Appendix
769
Exhibit 9: 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
household household household household
• King County R Tukwila
5-person 6-person 7+ person
household household household
Source: US Census Bureau, 2017-2021 American Community Survey 5-Year Estimates.
Exhibit 10: Persons per Household, Tukwila, Peer Cities, and King County, 2020
3.0
2.9 2.9
2.8
2.7 I
Persons per Household
2.6
2.5
2.4
2.3
2.2
2.6
2.6
2.6
2.7
2.4
Tukwila Burien Kent Renton SeaTac King County
Source: Washington Office of Financial Management, 2020.
76,11I DRAFT 4/1 6/2024 City of Tukwila 1 Financial Sustainability Plan Technical Appendix
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 area median family income, compared to
46% of King County households (Exhibit 11). Median family income is a common measure used to
understand housing affordability. 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 12). Seventy-
nine percent of Tukwila renters have an income below the area median family income, compared to 56%
of Tukwila homeowners (Exhibit 13 and Exhibit 14).
Exhibit 11: Households by Median Family Income (MFI), Tukwila, Peer Cities, and King County, 2020
30%
14%
18%
20%
Tukwila
11%
16%
16%
13%
14%
17%
F-1
43%
13%
16%
13%
34%
11%
16%
15%
33
13%
18%
21%
54°
Burien Kent 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)
Note: Median family income refers to the HUD Area Median Family Income for the Seattle -Tacoma -Bellevue Metropolitan
Statistical Area, which is adjusted based on household size.
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020.
:III DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
971
Exhibit 12: Renter and Owner -Occupied Households, Tukwila, Peer Cities, and King County, 2020
Renter -occupied
■ Owner -occupied (no mortgage)
■ Owner -occupied (with mortgage)
61%
In
25%
45%
38%
45%
47%
37%
51%
S
32%
44%
40%
Tukwila Burien Kent Renton SeaTac King County
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020.
Exhibit 13: Renter Households by Median Family Income, Tukwila, Peer Cities, and King County, 2020
r
21%
i
15%
13%
27%
Tukwila
16%
10%
25%
20%
Burien
12%
14%
24%
Kent
28
16%
18%
17%
p
13%
9%
20%
20%
i
22%
a
11%
18%
27%
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)
Note: Median family income refers to the HUD Area Median Family Income for the Seattle -Tacoma -Bellevue Metropolitan
Statistical Area, which is adjusted based on household size.
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020.
7;11I DRAFT 4/1 6/2024 City of Tukwila 1 Financial Sustainability Plan Technical Appendix
Exhibit 14: Owner Households by Median Family Income, Tukwila, Peer Cities, and King County, 2020
4%
13%
26%
9%
Tukwila
n
57%
L�
11%
9%
13%
PEI
52%
15%
15%
57%
11%
13%
12% 10%
12%
13%
11%
14%
18%
15%
10%
8%
Burien Kent 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)
Note: Median family income refers to the HUD Area Median Family Income for the Seattle -Tacoma -Bellevue Metropolitan
Statistical Area, which is adjusted based on household size.
Source: US HUD Comprehensive Housing Affordability Strategy (CHAS) data, 2016-2020.
.III DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
'73
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 15, 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 15: Select Community Health Indicators, Tukwila, King County, and Washington State, 2021
40
as
30
25
20
15
10
5
0
Fair or poor Frequent Unhealthy days Unhealthy days Disability (%) No primary Uninsured age
health (%) mental distress (18+) (days) (65+) (days) care provider 18-64 (%)
(%) (%)
■ SeaTac/Tukwila ■ King County ■ Washington State
Source: Public Health — Seattle & King County, City Profile Data, 2021.
74111
DRAFT 4/16/2024 City of Tukwila Financial Sustainability Plan Technical Appendix 0 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 16).
Employment in Tukwila declined by the greatest percentage among peers in 2021 and employment growth
in 2022 has not yet recovered to the 2016 level (Exhibit 17). However, jobs in Tukwila are projected to
grow 1.5% annually through 2044 (Exhibit 1 8).
Exhibit 16: 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
2000 2005 2010 2015 2020
Sources: PSRC Covered Employment, 2023; Washington Office of Financial Management, 2023.
Tukwila: 2.03
SeaTac: 1.17
King: 0.62
Renton: 0.60
Kent: 0.52
Burien: 0.24
:III DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
1 375
Exhibit 17: Growth in Covered Employment, Tukwila, Peer Cities, and King County, 2023
30%
25%
Sea Tac: 21.1%
Percent employment change from 2016
20%
15%
10% / King County: 11.0%
5%
0%
-5%
-1 0%
-15%
2016
2017 2018
2019
Source: PSRC Covered Employment, 2023.
Exhibit 18: Covered Employment in Tukwila, 2000-2045
70,000
60,000
50,000
40,000
30,000
20,000
10,000
Covered Employment
2022 employment: 45,825
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
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.
7�11� DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
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 19). Services, retail, and
manufacturing comprise most Tukwila jobs, which is comparable to Burien, Kent, Renton, and King County
(Exhibit 20 and Exhibit 21). 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.
In 2021, approximately one-third of those working in Tukwila made less than $3,333 per month, which
corresponds to a wage of $20.83 an hour or less (Exhibit 22). For context, the City's minimum wage has
increased from $1 3.69 per hour in 2021 (per the statewide minimum wage) to $16.99 per hour for mid-
size employers and $18.99 per hour for large employers in 2023 (following a voter -approved ordinance).
Exhibit 19: Tukwila Businesses by Size, 2021
0.1 % (3 Firms)
0
Sources : Esri/DataAxle (2021); ACS ; CAI, 2022.
Under 5 Employees
5 to 24 Employees
25 to 99 Employees
100 to 499 Employees
Over 500 Employees
.III DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
1577
Exhibit 20: Covered Employment by Major Sector, Tukwila, Peer Cities, and King County, 2021
6%
11%
32%
Tukwila
52%
3%
9%
Burien
4%
4%
24%
25%
21%
11%
Kent
4%
12%
8%
37%
Renton
14%
54%
22%
6%
7%
8%
50%
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.
Exhibit 21: Covered Employment Job Count by Major Sector, Tukwila, Peer Cities, and King County, 2021
Major Sector
Tukwila
Burien
Kent
Renton
Sea Tac
King County
Construction / Resource
2,948
1,030
7,899
2,739
710
76,866
Finance / Insurance / Real Estate
3,030
312
1,679
2,1 10
647
68,823
Manufacturing
7,634
127
14,514
13,851
422
87,605
Retail
6,718
2,280
5,869
5,402
501
166,855
Services
13,462
6,097
17,749
22,269
7,096
668,004
Wholesale / Transportation / Utilities
4,671
348
16,688
4,754
17,068
106,364
Government
2,614
503
3,138
7,406
4,466
93,135
Education
462
981
2,565
2,191
629
73,942
Total
41,538
11,678
70,101
60,723
31,539
1,341,594
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.
78:11I DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
16
Exhibit 22: Tukwila Employment Shares by Earnings Category, 2021
■ $1,250 per month or less
■ $1,251 to $3,333 per month
■ More than $3,333 per month
Note: Employment refers to jobs with positive earnings in 2021 Q2 (April to June).
Source: U.S. Census LEND, 2021.
.III DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
'779
Journey to Work
Most Tukwila workers commute from outside the City, while most Tukwila residents commute to other
cities for work.
Exhibit 23 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 23: Tukwila Employees' Places of Residence, 2019
to
Gig Hari
ale
.acoom
Bainbridge
_ lanr
M,onche
State
Ole lie
University
Place
Vash on
Tacoma
4.2%
I alrownnrl .
�- B eVaEl
Beattie
12.6%v
s Moine
'di lion
Fite Edgewood
Wailer
Mercer
a
iiy4re r
rnner
Payal lup
Kings ga le
kland
Redmond
Bellevue
2.4%
While
Newcastle ou gar
Mountarn Issaquah
Lake
rapes
Bonney Lake
Union Hrif
Sam ma mish
ton
ds
SE Both <•
gear
Ravensdale
Grand
Ridge
Squak West •Tige
Mountarnri Mouniarn
Maple Valley
M
Hobart
Black Btamond
Green Riy
Gorge Sea
P. rk
Con=ievat
Area
Where Tukwila Workers Live
Put of Workers
O Fewer
0
Krng_,Counry Prlmaty_Roads
0 2 4 Mlles
I 1 �
Sources: U.S. Census LEND, 2019; CAI, 2022.
8aI1I DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
Exhibit 24 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 b% work in each of four nearby cities: SeaTac, Kent, Renton, and
Bellevue.
Exhibit 24: Tukwila Residents' Places of Employment, 2019
'.CAI
rd
305
Bainbridge
-rani'
Maurine
Slate
Istrrh
SE Seugwr.l: .0.1
Olslla
Gig Nor'
ale
Vashon
eattle
Kingsgate
Sr
Redmond
1.5%
Mercer
Burien f Tu k+w I Renton
2.5% (I Lra 6.9%
1 +
ar� SeaTac
Perkl f 6.7%
sdelalde
Federal War
ast
Tacoma
1.8% Milton
Flfe Edgewocd
Waller
Puyallup
Kent
6.6%
6
Auburn /
2.2%
Sumner
Enron
!be
0
Duval I
Union Nell
Sammamish
Brand
Ridge
Issaquah
Speak West 1rge
Moostalo r Meedtar
Maple- Valley
kn
Hobart
I
Ravensdale
Black D i a and
Green
Rh!
Gorge Si
Park
Conserver
Area
L,
Where Tukwila Residents Work
Pet of Commuters
I —I Fewer
[Eke ilk
roprr -
- Greater
Bonney Lake
0 2 4 Miles
l I
Sources: U.S. Census LEND, 2019; CAI, 2022.
.11I DRAFT 4/16/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
Appendix B. City Services and Budget Overview
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 25: 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
V
V
V
V
V
V
Administration
V
V
V
V
V
V
Parks & Recreation
V
V
V
V
V
V
Community
Development
V
V
V
V
V
V
Municipal Court / Legal
V
V
V
V
V
V
Police
V
King County
Sheriff's Office
V
V
V
King County
Sheriff's Office
Public Works
V
V
V
V
V
V
Fire
Regional Fire
Authority
Fire District
Regional Fire
Authority
Regional Fire
Authority
Fire Authority
Regional Fire
Authority
Water
V
Local Districts
V
V
V
Local Districts
Sewer
V
Local Districts
V
V
V
Local Districts
Surface Water
V
V
V
V
V
V
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 loca utility providers. Sources: City of Burien, City of Kent,
City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023; BERK, 2023.
8 h11 DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
i2o
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,
18% 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 26).
Exhibit 26: Tukwila Funds by Type, 2023
Internal Service Fiduciary
6% 0%
Enterprise
22%
Debt Service
8%
Capital Projects
16%
Source: City of Tukwila, 2023.
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 27). 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 28). 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 29).
As shown in Exhibit 28, 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.
:111 DRAFT 4/1 6/2024 City of Tukwila 1 Financial Sustainability Plan Technical Appendix
2183
Exhibit 27: 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 28: Tax Revenues as a Share of All General Fund Revenues, Tukwila and Peer Cities, 2023
Tukwila
Burien
Kent
Lynnwood
Renton
SeaTac
25%
28%
25%
14%
8%
4% 6%
34%
26%
17%
45%
5%
10%
21%
10%
20%
30%
12%
14%
38%
41%
• Property Tax • Sales Tax B&O Tax Utility Taxes
Sources: BERK, 2023; City of Burien, City of Kent, City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023.
84111 DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix 0 22
Exhibit 29: Tukwila Taxable Retail Sales, 2012-2022
$ 25,0 00,000
$ 20,0 00,000
$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; Washington State Department of Revenue, 2023.
:III DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
2435
General Fund Expenditures
Tukwila's largest General Fund expenditure is toward Police services, which is similar to peer cities.
As shown in Exhibit 30, 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 31).
Exhibit 30: Tukwila General Fund Expenditures by Department, 2023
Parks and Recreation
7%
Court
2%
Administrative
8%
Non -Departmental
1%
F ire
21%
Public Works
11%
Source: City of Tukwila, 2023.
Exhibit 31: FTEs by Department, 2023
Mayors Office
4%
Department
2023 Full -Time Employees
Mayor's Office
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
City Council
1%
Finance
6%
Community
Development
7%
Source: City of Tukwila, 2023.
8€ 11 DRAFT 4/1 6/2024 City of Tukwila 1 Financial Sustainability Plan Technical Appendix
24
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 32).
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 33). 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.
Exhibit 32: General Fund Expenditures Excluding Fire by Department in Tukwila and Peer Cities, 2023
Tukwila
Burien
Kent
Lynnwood
Renton
SeaTac
22%
54%
5% 6% 14% 6% 14%
41%
14%
5% 9% 11% 10% 16%
35%
13%
Note: Labels suppressed for shares under 5%.
■ Council/Manager/Mayor/Clerk
■ Administrative/Finance/IT/HR
■ Community/EconDev/Human Services
■ Legal/Court
■ Parks and Recreation
■ Police
■ Public Works/Streets
Sources: BERK, 2023; City of Burien, City of Kent, City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023.
.11I DRAFT 4/16/2024 City of Tukwila I Financial Sustainability Plan Technical Appendix
2587
Exhibit 33: General Fund Expenditures per $1,000 of Assessed Value, Tukwila and Peer Cities, 2023
$3.00
$2.50
52.00
$1.50
$0.50
$0.00
11111 uiluli AM
Police budget per S1,000 assessed Parks budget per S1,000 assessed Development budget per S1,000
value va Iue assessed value
■ Burien ■ Kent ■ Lynnwood ;w Renton s 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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Appendix C. Financial Overview
Overview
This document provides an overview of the City of Tukwila's revenue tools, comparisons to revenue tools in
peer cities, General Fund budget trends, and staffing levels. This information can be used to provide a
basis for understanding the City's financial status and to guide the City's financial sustainability plan.
Key Points
■ The City collects different types of revenues from different groups, such as residents and businesses.
■ Tukwila's total property tax rate is similar to peer cities in King County. Compared to peer cities,
Tukwila has a lower business and occupation tax rate.
■ The cities of Burien and Lynnwood collect additional revenues from transportation benefit district
charges, which are not currently used by Tukwila.
■ General Fund revenues decreased significantly at the onset of the pandemic and increased as the
economy began to recover. As part of the budget and budget amendment processes, the City aligns
service levels to match expenditures with available revenues.
■ As a service provider, the City spends the largest percentage of General Fund expenditures on salaries
and benefits. Labor costs are driven by the regional employment market and City policies.
■ Total City staffing has decreased slightly since 2016, during which time the City's population has
continued to grow.
■ Increased service needs and the growing cost of providing existing services will impact the City's
financial forecast.
Revenue Tools
Exhibit 34 shows the City's budgeted revenue mix across all funds in 2023 and 2024. Taxes are the
largest category of revenue, followed by fees which include charges for service, licenses, permits, fines,
and penalties. The City also receives intergovernmental revenues, such as state and federal grants, and
other financing, such as sale of capital assets and internal fund transfers.
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Exhibit 34: Tukwila Revenue Mix for All Funds, 2023-2024
1%
2023 Revenue
$142.5 million
Sources: BERK, 2023; City of Tukwila, 2023.
• Taxes
• Licenses & Permits
• Intergovernmental
Charges for Services
• Fines and Penalties
• Miscellaneous
• Other Financing
0.5%
2024 Revenue
$156.1 million
Most taxes support all government functions and are not tied to a particular service. Some taxes are
collected for a specific purpose or are restricted by State law. Fees are related to the cost of the service
provided and are paid by the person using the service. To illustrate the difference, all property owners
pay property tax, and the amount does not depend on how much a resident uses City services. Property
owners only pay permit fees if applying for a permit and the fee is intended to offset all or a portion of
the cost of providing the service. Utility rates, which are categorized as a charge for service, support
operating and capital needs for the utility. These are paid by customers of the utility and may be based
the type of customer or consumption.
Exhibit 35 lists examples of the City's major revenue collections, who pays them, how they are used, and
the 2024 budgeted amount from all funds. Some revenues are collected from multiple groups, such as
residents and businesses, and some are collected from only one group, such as users of a service or just
businesses. The revenues listed do not include all revenues collected by the City but include the City's
largest sources or the most common taxes, fees, and rates paid by members of the community.
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Exhibit 35: Examples of Tukwila Major Revenue Sources with Groups Impacted and Uses
Revenue Source
Received From
Use of Revenue
2024 Budget
Taxes
Property Tax Residents, businesses
General operations
$23.1 million
Retail Sales Tax Residents, visitors
General operations
$21.4 million
Utility Tax Private utility providers
General operations, though a
portion of solid waste tax revenue
is dedicated to streets projects
$5.6 million
Business & Businesses General operations $3 million
Occupation Tax
Gambling and
Admissions Tax
Visitors to gambling/
Gambling tax must first be used $5.4 million
entertainment venues for public safety
Commercial Parking
Businesses that charge a Transportation purposes
Tax fee for parking
$600,000
Fees
Business License Fees Businesses
General operations
$3.2 million
Impact Fees Developers
Capital improvements
$900,000
Parks & Recreation Users of parks &
Activity Fees recreation programs
General operations
$1.6 million
Building Permit Fees
Residents, organizations, General operations
businesses
$1.7 million
Utility Rates
Water Utility
Charges
Residents, businesses
Water operations and capital;
cannot be used for general fund
operations
$8.2 million
Sewer Utility
Charges
Residents, businesses
Sewer operations and capital;
cannot be used for general fund
operations
$11.1 million
Surface Water
Utility Charges
Residents, businesses
Surface water operations and
capital; cannot be used for
general fund operations
$8.1 million
Note: 2024 budgeted revenue amounts are from all City funds. The City dedicated some of the Business & Occupation tax to
restoring police positions that had been frozen during the pandemic.
Sources: BERK, 2023; City of Tukwila, 2023.
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Property tax is a large source of revenue for the City. Over two-thirds of the City's property tax revenue
comes from commercial property and one quarter comes from residential property (Exhibit 36). This
accounts for exemptions or properties paying reduced or no property taxes. Exemptions distribute the
burden of tax payments differently than would be without exempt property.
Exhibit 36: Property Tax Revenue by Property Type, 2023
Residential, 25%
Apartments and
Mobile Homes
go/
Commercial,
67%
Notes: Limited to commercial and residential property types. Commercial properties with non -zero residential units are classified as
apartments and mobile homes.
Source: BERK, 2023; King County Assessor's Office, 2023.
Comparison to peer cities
Exhibit 37 compares property tax rates for Tukwila and peer cities. The total property tax is similar for
Tukwila and peer cities in King County. Tukwila and SeaTac both pay for fire services through a contract,
so use local property tax revenue to pay for this and have a higher city levy rate. The other cities are
annexed into a fire district, so do not collect property tax revenue to pay for fire service. Across all peer
cities, a large share of property tax goes to other taxing districts.
Exhibit 38 and Exhibit 39 compare the business and occupation tax rate and business license fee in Tukwila
and peer cities. Tukwila has the lowest business and occupation tax rate. Tukwila's business license fee is
per full-time employee. Lynnwood also assesses a per employee fee in addition to a base fee.
92
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Exhibit 37: Property Tax Levy Rate for Tukwila and Peer Cities, 2023
Tukwila
SeaTac
Burien
Kent
Renton
Lynnwood
$2.31
$2.31
$1.40
$2.31
$2.31
$2.31
$0.5
0.5
$1.55 $1.40
•
.61 $1.70
$7.35
$10.49
$10.47
$10.60
$ 9.94
$9.20
■ State Schools =City Schools ■City Regular ill County Regular ■ Fire ■ Other
Note: "Other" includes other taxing districts and excess city levies.
Sources: BERK, 2023; King County Assessor's Office, 2023; Snohomish County Assessor's Office, 2023.
Exhibit 38: Business and Occupation Tax Rate for Tukwila and Peer Cities, 2023
Kent
Renton
Burien
Tukwila
0.121%
0.100%
0.085%
0.200%
Cities that
contract for
fire service
Cities that are
part of a fire
authority
Notes: Tukwila's Business and Occupation Tax begin January 1, 2024. These rates represent the highest rate levied if the city has a
range depending on the type of business activity.
Sources: BERK, 2023; City of Burien, City of Kent, City of Renton, City of Tukwila, 2023.
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Exhibit 39: Business License Fee for Tukwila and Peer Cities, 2023
Kent
Burien
Renton
Lynnwood
SeaTac
Tukwila
$281
$180
$150
$125
$100
■ Business License Fee (base) ■ Business License Fee (per FTE)
Note: Burien, Kent, and SeaTac have a different base rate based on the number of employees.
Sources: BERK, 2023; City of Burien, City of Kent, City of Lynnwood, City of Renton, City of SeaTac, City of Tukwila, 2023.
Other revenue tools that are commonly used by cities include a transportation benefit district fee or tax,
which pays for street maintenance, or impact fees, which pay for capital improvement projects. Exhibit 40
shows these tools and which peer cities currently use them. Tukwila assesses a lodging tax, along with most
other cities. Tukwila also assesses impact fees, which are below some rates of peer cities. Only two cities in
this group charge fees for a transportation benefit district.
Exhibit 40: Other Revenue Tools and Current Rates for Tukwila and Peer Cities, 2023
Transportation
City Lodging Tax Benefit District Fee
Transportation Benefit Transportation Parks
District Sales Tax
Impact Fees Impact Fees
Burien Not used $20
Not used
$948 Not used
Kent 1.0% Not used Not used $8,979 Not used
Lynnwood 2.0% $40 0.10% $6,525 $5,899
Renton 1.0% Not used Not used
$12,209 $3,276
SeaTac 1.0% Not used Not used $3,733 Not used
Tukwila 1.0%
Not used Not used
$3,726 $3,629
Sources: BERK, 2023; Municipal Research and Services Center, 2023; Washington State Department of Revenue, 2023.
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General Fund Budget and Staffing Trends
The General Fund is the City's largest and most flexible fund. Exhibit 41 shows that prior to the pandemic,
between 2017 and 2019, revenues and expenditures grew in line with inflation. The City aligned service
levels and expenditures with available revenues. Revenues declined during the pandemic, in 2020, and
expenditures decreased to match. Revenues grew after the pandemic, in 2021 and 2022, as the economy
began to recover during the pandemic. Expenditures grew during 2021 and 2022 as well, though at a
slower rate in 2021.
In response to the decrease in revenues in 2020, the City froze positions, implemented employee furloughs,
and reduced service levels in areas such as street maintenance and recreation. In the 2021-2022 biennium,
federal funds allowed the City to reinstate key positions in Parks and Recreation, Community Development,
and the Streets Division to continue to provide services in these areas. However, this did not return the City
to previous service levels as several positions continue to be frozen. Exhibit 42 depicts the impact to the
City's total position count, which declined between 2016 and 2023.
Exhibit 41: Tukwila General Fund Revenue and Expenditure Annual Growth Compared to Inflation, 2017-2023
20%
15%
Annual Percent Growth
10%
5%
0%
- 5%
-10%
2017 2018 2019 2020 2021 2022 2023
—.GE Revenues GE Expenditures Inflation
Note: Inflation is based on the annual Consumer Price Index for Seattle -Bellevue -Tacoma.
Sources: BERK, 2023; City of Tukwila, 2023; US Bureau of Labor Statistics, 2023.
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The City's General Fund expenditures are made up of the following categories:
• Salaries and benefits include overtime, extra labor, holiday pay, insurance, pensions, uniforms, and
unemployment compensation.
• Operations include supplies, professional development, communication, advertising, rentals, leases,
technology services, public utilities, repairs, and maintenance.
• Debt service and transfers include principal and interest payments on debt and internal transfers from
the General Fund to other City funds.
Exhibit 42 shows that approximately 70% of General Fund expenditures are spent on salaries and
benefits. A city provides services to the community, which require employees to deliver, so it is standard
that most of a city's budget is spent on salaries and benefits. In 2023, the City changed its fire and
emergency services model to contract for service instead of providing the service. This resulted in a drop in
salaries and benefits and FTEs and an increase in operational expenditures. Exhibit 42 also shows the
number of full-time positions over this period. The total number of positions has been consistent, though
there was a decline in 2020 as the City reduced service levels.
Exhibit 42: Tukwila General Fund Expenditures by Category and Total FTEs, 2016-2023
N $80M
2
$70M
d
a
ux, $60M
$50M
$40M
$ 30M
$ 20M
$10M
$0M
6%
24%
69%
25%
69%
6%
27%
67%
7%
25%
68%
6%
23%
71%
23%
E
71%
•23%
66%
6%
42%
52%
2016 2017 2018 2019 2020 2021 2022 2023
Salaries and Benefits Operations
Debt Service and Transfers —Total FTE
Note: The City had a large one-time debt service payment in 2022.
Sources: BERK, 2023; City of Tukwila, 2023.
Staffing and Services Over Time
400
LIS
U-
350 a
300
250
200
150
100
50
0
The City has seen a slight reduction in City staffing per population between 2016 and 2023 (Exhibit 43).
Over the same period, demand has varied for different services. For many services, demand decreased
during the pandemic but has rebounded or begun to rebound.
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Exhibit 43: City Population and FTEs per 1,000 Residents, 2016-2023
2 25,000
a
a
m
20,000
3
4-
15,000
10,009
5,000
0
2016 2017 2018 2019 2020 2021 2022 2023
•Tukwila Population —FTEs per 1,000 residents (without Fire)
Sources: City of Tukwila, 2023; WA Office of Financial Management, 2024; BERK, 2023.
Exhibit 44: Police Calls for Service, 2016-2022
35,000
34,229 34,345
34,000
33,288
33,000 33,123
32,465
32,000
3 T,338
31,000
30,000 30,079
29,000
28,000
27,000
2016 2017 2018 2019 2020 2021 2022
Sources: City of Tukwila, 2023; BERK, 2023.
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
FrEs per 1,000 residents, without Fire
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Exhibit 45: Number of Records Requests and Number of Staff Hours Annually, 2016-2021
1,800
1,689
1,600
1,200
1,139
1,000
800
600
400
200
0
587
571
131 131
112
1,463
1,400
155
982
118
2016 2017 2018 2019 2020 2021
130
Number of Records Requests -Number of Staff Hours
Sources: City of Tukwila, 2023; BERK, 2023.
Exhibit 46: Number of Recreation Class Participants and Community Center Admissions, 2016-2022
200,000
1 80,000
160,000
140,000
1 20,000
100,000
80,000
60,000
40,000
20,000
0
2016 2017 2018 2019 2020 2021
-Recreation Class Participants -Community Center Admissions
Sources: City of Tukwila, 2023; BERK, 2023.
38,407
38,507
2022
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Exhibit 47: Number and Total Value of Permits Issued by Community Development, 2018-2023
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
,757
2018
1,664
2019
2020
2021
2022
1,840
Total dumber of Permits -Total Value of Permits
Sources: City of Tukwila, 2023; BERK, 2023.
Note: Includes building, mechanical, electrical, and plumbing permits.
2023
$30❑
r
0
$250
$200
$150
$100
$50
$0
City Staff Compensation
The bulk of the City's activities are in service provision. These services are principally delivered by City
staff and labor costs make up nearly 70% of the City's General Fund budget. As this is such a large cost
driver, additional information is provided on employee compensation.
Salaries and benefits are guided by a City Council -adopted compensation policy and philosophy. The
policy was adopted to address issues such as parity between represented and non -represented
employees, internal equity between functions, salary compression, and how compensation can support
recruitment and retention of employees in the local labor market.
The policy guides compensation by identifying comparable cities. It states that the City will seek to set
salaries at the market average for non -represented positions and at a "competitive" level for represented
employees. It grants adjustments when salaries are outside of the market range. The policy also states that
when economic conditions allow, the City should provide benefits to represented and non -represented
employees that are slightly above average of comparable jurisdictions. The City aims for cost -of -living
adjustments (COLA) based on 90% of Consumer Price Index- Clerical Workers (CPI-W) and parity
between represented and non -represented employees' COLA and benefits.
Represented Employees
87% of the City's workforce is represented by a union. Salaries and benefits for represented employees
are negotiated through agreements between cities and their labor organizations and dictated by collective
bargaining rules as well as federal and state labor laws. Collective bargaining agreements are contracts
ratified by labor groups and approved by City Council that govern specific aspects of employment.
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Non -represented Employees
The McGrath Human Resources Group completed a market study of non -represented positions in 2023
which found that salaries for non -represented Tukwila staff were competitive with the market average.
The study includes recommendations for position movement to better align with the market and the
following additional recommendations:
1. Maintain the compensation philosophy of market average compensation. Consider looking at
comparable cities based on geography instead of assessed value.
2. Complete market studies every three to four years and include a total compensation review.
3. Evaluate moving to merit/performance-based pay for higher steps.
McGrath also noted that following the pandemic, all industries, both public and private, are competing for
already limited staff. In addition, state minimum wage laws are pushing non -skilled wages higher and
bargained agreements around compensation among represented workers often lead to upward pressure
on compensation for non -represented staff as well. These forces have caused many employers to increase
wages to help recruit and retain talent, with nearly every employer in both the public and private sector
experiencing recruitment and retention challenges.
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Appendix D. Community Priorities
This document provides an overview of the Tukwila community's values and priorities as expressed in City
documents and plans. This information provides context for understanding what the community's priorities
are and how they inform City priorities and service delivery. Common themes reflect the community's desire
to have:
• great neighborhoods and quality public spaces,
• a vibrant and diverse economy,
• a positive community identity,
• and opportunity for all Tukwila residents.
Strategic Plan
The City's budget document references the City's strategic priorities, which were articulated in the Tukwila
Strategic Plan. These priorities are used to align resources so that the City funds programs and services that
align with community desires. The Strategic Plan establishes the City's Vision and Mission:
COMMUNITY VISION
The city of opportunity,
the community of choice.
CITY MISSION
To provide superior services
that support a safe, inviting
and healthy environment for our
residents, businesses and guests.
The Strategic Plan's five Goals that inform budget priorities are:
• A community of inviting neighborhoods and vibrant business districts.
• A solid foundation for all Tukwila residents.
• A diverse and regionally competitive economy.
• A high performing and effective organization.
• A positive community identity and image.
Economic Development Strategy
The City has developed an Economic Development Strategy to guide its efforts to strengthen Tukwila's
economic future. The primary purpose of the Economic Development Strategy is to describe Tukwila's vision
for sustainable and inclusive economic prosperity and to identify strategies and actions to achieve that
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vision. The vision in the strategy is: "Tukwila is a vibrant community with a strong and sustainable
economy that celebrates and empowers its diversity, supports economic prosperity for all residents,
and sustains a foundation for businesses of all sizes."
The Economic Development Strategy's Goals are:
• A vibrant, diverse, and resilient economy.
• A safe and desirable community with a positive identity.
• Prosperity and opportunity for businesses, workers, and residents.
• A supportive environment for small business and entrepreneurs.
• A community that celebrates and invites diversity.
Parks, Recreation and Open Space Plan
Another planning document that incorporates the community's priorities is the City's Parks, Recreation and
Open Space Plan (PROS Plan), which was adopted in 2020. This PROS Plan guides future investments for
the City's parks and recreation system. Plan recommendations address priorities and key needs identified
during the planning process:
• Close interaction with nature.
• Cultural heritage inspiration.
• Vibrant urban water centerpiece.
• Lively park -adjacent commerce.
• Expanded parks/preserved open space.
• Reinvigorated quality of existing parks and facilities.
• Fun fitness opportunities.
• Affordable, stimulating experiences for all ages.
• Convenient, accessible system.
• Safe, family -friendly places.
The Plan's Goals are focused as follows:
• Safe, convenient, and connected system.
• A network of green spaces.
• A sense of community.
• Opportunities for all.
• Safe, inviting, and affordable.
• Healthy people and places.
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Budget Engagement
The City engaged with community members in 2022 to gather feedback on priorities and ideas for the
2023-2024 biennial budget. Staff attended meetings, events, and gatherings to listen to community
members. Staff met with the City's advisory boards and commissions, attended the farmers' market and
park events, and held community stakeholder meetings with seniors, Black community members, and high
school students. Staff also offered an online survey and an online budget tool that allowed individuals to
propose ways to balance the budget.
Community members who participated in engagement placed a high priority on:
• public safety,
• infrastructure maintenance,
• and social services such as youth and senior activities.
Regarding service levels, participating community members preferred to increase existing tax rates, such
as the gambling tax or property tax, or add a business and occupation tax, to maintain existing services
rather than reduce services.
Service Priorities
During community events and meetings, community members reviewed information on City services and
revenue options prepared by staff and identified their service priorities and revenue ideas in a dot
exercise. Listed below are the expenditure priorities in order with the total number of dots:
Youth Activities
Police Services & Public Safety
Human Services & Rental Assistance
City Future Planning
Economic Development Activity
Park & Trail Maintenance
Street Surface Maintenance
Public Records Accessibility
Foster Golf Course Operations
Building Permit Issuance
Middle School Programs
Expenditure Priorities: Dots
0 5 10 15 20 25 30 35 40 45 50
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The City received 65 responses to the online survey. Individuals who participated in the online survey also
identified service priorities. Listed below are the rank of service priorities from the online survey.
Service Priorities: Scores from 65 Respondents
Police services and public safety
Fire and emergency medical services
Utility infrastructure maintenance
Street surface maintenance
Sidewalk and crosswalk maintenance
Park and trail maintenance
Human services and rental assistance
Economic development activity
Community emergency preparedness
Code enforcement activity
Youth activities
City future planning
Communications/community outreach
Building permit issuance
Traffic calming measures
Municipal court services
Senior activities
Foster Golf Course operations
Public records accessibility
Revenue Ideas
0 50 100 150 200 250 300 350
During community events and meetings, community members identified their top ideas for revenues through
a dot exercise. Listed below are the revenue ideas in order with total number of dots:
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Appendix E. City Programs and Services
This document provides an overview of the programs and services provided by the City. This document also
describes factors that impact the cost of these programs and services, recent changes in levels of service,
priorities and unfunded needs, and opportunities for efficiencies. The information is this overview provides
context for future discussion about levels of service and priorities in different program areas. All
information provided in this overview is from the City's 2023-2024 Adopted Budget.
Program Budgeting
Tukwila uses a budgeting approach called "Priority -Based Budgeting", which shows how resources are
allocated to the programs and services that provide the greatest value to residents. The City established a
program inventory that encompassed all the activities the City performs. Costs and positions were then
assigned to each program. Programs are identified as mandated — meaning the program meets a federal,
state, or local requirement — or non -mandated — meaning the program is not required but is a best practice
or a program desired by the community.
For this overview, programs are grouped into several categories:
• Community and economic development
• Community engagement
• Culture and recreation
• General government
• Infrastructure maintenance/improvement
• Public safety
These categories are used instead of departments so that programs that support the same priority or
function can be viewed together. For example, a department may provide programs that support public
safety and community engagement. This overview provides a list of all programs for each category and
the 2024 total budget and positions for each program. This overview includes programs in the General
Fund, capital funds, and other operating funds. It does not include Debt Service Funds or Enterprise Funds,
which are utilities and Foster Golf Course.
Budget and Positions by Category
Exhibit 48 shows the City's total budget by category and what percent of each category is dedicated to
mandated programs. Over 80% of general government programs are mandated and over 50% of
programs in the public safety and community and economic development categories are mandated. As
shown in Exhibit 48 below, the largest categories of the 2024 budget are infrastructure maintenance and
improvement and public safety. Infrastructure maintenance and improvement includes spending on capital
projects.
Exhibit 49 shows the number of full-time positions in each category and what percent of each category is
dedicated to mandated programs. The category with the largest number of positions is public safety. The
second largest is general government, which has a smaller share of the total budget than other categories.
The budget for general government is primarily dedicated to staff, while in categories like public safety or
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infrastructure maintenance and improvement there is a higher level of non -personnel expenditures like
contracts or supplies.
Exhibit 48: City of Tukwila 2024 Total Budget by Category, Operating and Capital Funds
Infrastructure maintenance/improvement 9%
Public safety 52%
General government 86% $11.4M
Community and economic development 59°/$7.3M
Community engagement 43 $4.1M
Culture and recreation3ll $ZMM
Source: City of Tukwila, 2023; BERK 2023.
$40.5M
$50.8M
❑Mandated
• Not mandated
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Exhibit 49: City of Tukwila 2024 FTE Count by Category, Operating and Capital Funds
Public safety 73%
Infrastructure maintenance/improvement
General government
Community and economic development
Community engagement
41%
87% 1
74%
Culture and recreation 411.1
Source: City of Tukwila, 2023; BERK 2023.
23.3
39.6
34.4
49.7
99.3
❑Mandated
• Not mandated
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Community and Economic Development Summary
Community and Economic Development includes programs to support City businesses, attract and grow new
businesses, manage development, and conduct long-range planning.
Changes in Levels of Service
■ Increase in permit review timelines due to high levels of permit activity and frozen staff positions.
■ Increase in service levels per Council direction.
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
■ Reviewing and streamlining processes to allow staff to keep up with workload or address additional
tasks.
■ Potentially shifting positions to meet needs and dedicating time to cross -training to help staff meet
workload demands with existing resources.
Program Name
2024 Budget
2024 FTE Count
Program Mandate
Construction Permit Review & Inspection
$1,241,580
7.6 Y - Federal/State
Permit Intake, Issuance, Coordination
$689,749
4.9 Y - Federal/State
Code Enforcement
$518,412
3.2
Y - City Code
Administration
$462,304
2.5 Y - Federal/State
Long -Range & Comprehensive Planning
$382,649
1.6 Y - Federal/State
Current Planning
$ 375,975
2.0 Y - Federal/State
Rental Housing
$169,516
1.2
Y - City Code
Professional Development & Training
$157,785
1.0 Y - Ordinance/Resolution
Ordinance, Resolution and Code Development
$145,831
0.8 Y - Federal/State
Lodging Tax Oversight/Support
$72,096
0.2
Y - City Code
Mandatory Training
$49,918
0.2 Y - Federal/State
Business License Administration
$24,255
0.2
Y - City Code
City Policy Development
$19,166
0.1 Y - Federal/State
Community Investment
$1,966,626
7.8
N - Best Practice
Destination Development
$439,993
0.1 N - Best Practice
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Program Name
2024 Budget
2024 FTE Count
Program Mandate
Tourism Marketing
$399,965
0.3 N - Best Practice
Business & Development Attraction/Retention
$136,714
0.5 N - Best Practice
City Property Development & Management
$86,915
0.4 N - No Mandate
Total
$7,339,448
34.4
Community Engagement
Community Engagement includes programs to share information with the community, learn from community
members, manage public records requests, and support the City's boards, commissions, and advisory
bodies.
Cost Drivers
• Required participation in mandated training or adoption of new processes from updated state
legislation.
Priorities and Unfunded Needs
• Staff to support the increase in the number and complexity of public records requests.
• Training for existing staff to maintain certifications/credentials and keep current on best practices and
changes in regulations.
Program Name
2024 Budget
2024 FTE Count Program Mandate
Public Records Requests & Records Management
$1,192,875
8.8 Y - Federal/State
Boards/Commissions/Committees
$ 352,757
1.5
Y - City Code
Digital Records Center
$182,968
1.0 Y - Federal/State
Communications & Community Engagement
Total
$2,328,591
$4,057,191
12.0
23.3
N - Best Practice
a DRAFT 4/1 6/2024 City of Tukwila I Financial Sustainability Plan Technical Appendix
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Culture and Recreation
Culture and Recreation includes recreation and wellness programs designed for community members of all
ages.
Cost Drivers
■ Minimum wage requirements that impact the cost of labor.
■ Increase in service levels per Council direction.
Changes in Levels of Service
■ Elimination of some recreation programs and services and reduction in the days and hours of facility
operations. Some reductions to recreation programs were restored with one-time funding from Federal
American Rescue Plan Act (ARPA) funds. To maintain these restored services, ongoing funding will need
to be identified.
Priorities and Unfunded Needs
■ Restoring service levels to pre -pandemic levels.
■ Resources dedicated to facility planning, maintenance, and operations.
■ Resources dedicated to grant administration to maximize potential grant revenue for the City.
• Promoting and administering citywide volunteer opportunities, programs, and initiatives.
• Addressing physical and operational inequities, including enhanced language access services, ADA
transition planning, and barrier elimination.
Opportunities for Efficiencies
■ Exploration of alternative service delivery methods, such as shared service delivery or joint efforts with
other organizations or neighboring cities.
Program Name
2024 Budget 2024 FTE Count Program Mandate
Administration
$749,782
4.8 Y - Federal/State
Professional Development & Training
$65,564
0.2 Y - Ordinance/Resolution
Mandatory Training
$9,158
0.1 Y - Federal/State
Youth & Teen Services & Programs
$869,555
2.0 N - No Mandate
Older Adult Services and Programs
$354,767
1.8 N - No Mandate
Wellness & Adult Services & Programs
$342,810
N - No Mandate
Facility Rentals
$147,477
0.5 N - No Mandate
Preschool Services and Program
$82,715
0.6 N - No Mandate
Total $2,621,827
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General Government
General Government programs include the central services that support all other departments, such as
financial processing and reporting, personnel management, and City policy management.
Cost Drivers
• Required participation in mandated training or adoption of new processes from updated state
legislation.
• Administration of City policies such as a new minimum wage ordinance.
Priorities and Unfunded Needs
• Investment in staff and succession planning to ensure the City can maintain service levels and retain
high quality staff.
• Resources dedicated to grant administration to maximize potential grant revenue for the City.
• Operational support for capital investments, such as staff to implement and maintain new technology.
Opportunities for Efficiencies
• Reviewing and streamlining processes to allow staff to keep up with workload or address additional
tasks.
• Potentially shifting positions to meet needs and dedicating time to cross -training to help staff meet
workload demands with existing resources.
Program Name
2024 Budget 2024 FTE Count Program Mandate
Administration
$3,942,031 mom 8.2A Y - Federal/State
Risk Management
$861,572
0.1 Y - Federal/State
City Attorney Services
$525,987
0.0 Y - Federal/State
Sales and Other Taxes
$451,131
2.6 Y - Federal/State
Financial Reporting/Audit/Account
Administration
$369,822
1.0 Y - Federal/State
Payroll & Benefit Administration
$325,231
1.6 Y - Federal/State
Governmental & Regional Affairs
$313,495
1.5 Y - Federal/State
Accounts Payable
$288,772
1.7 Y - Federal/State
Legislative & Budget Oversight
$263,281
6.0 Y - Federal/State
Accts Receivable/Misc Billing/LID/etc.
$260,606
1.6 Y - Federal/State
Professional Development & Training
$192,947
0.9 Y - Ordinance/Resolution
City Policy Development
$178,826
0.7 Y - Federal/State
Business System Management/Support
$176,922
0.6 Y - Federal/State
Civil Service Recruiting & Hiring
$158,249
0.7 Y - Federal/State
III DRAFT 4/1 6/2024 City of Tukwila I Financial Sustainability Plan Technical Appendix
AEI
Program Name
2024 Budget 2024 FTE Count Program Mandate
Recruiting and Hiring
$157,801
0.8
Y - City Code
Equity
$125,110
0.6 Y - Ordinance/Resolution
Council Agenda/Meeting Functions
$122,517
0.8 Y - Federal/State
Grants Administration & Accounting
$115,065
0.7 Y - Federal/State
Business Application Services
$109,548
0.3 Y - Federal/State
Budget/CIP Development
$109,042
0.6 Y - Federal/State
Labor & Employee Relations
$96,626
0.4 Y - Federal/State
Financial Reporting/Analysis for
Departments
$93,069
0.5 Y - Federal/State
Benefit Plan Management
$91,047
0.4 Y - Federal/State
GIS (mapping)
$83,457
0.3
Y - City Code
Council Legislative Support
$71,842
0.3 Y - Federal/State
Ordinance, Resolution and Code
Development
$63,564
0.4 Y - Federal/State
Policy Development/Compliance
$57,578
0.3 Y - Federal/State
Classification & Compensation
$44,915
0.2 Y - Ordinance/Resolution
Investments/Cash Management/Reporting
$40,114
0.2 Y - Ordinance/Resolution
Debt Management
$19,236
0.1 Y - Federal/State
Long -Range Financial Planning Model
$13,699
0.1
Y - City Code
Capital Asset Accounting
$12,913
0.1 Y - Federal/State
Indirect Cost Allocation Admin
$6,560
0.0
Y - City Code
Mandatory Training
$2,718
0.0 Y - Federal/State
End -User Infrastructure Services
$524,987
0.6
N - Best Practice
Service Desk
$356,826
2.1 N - Best Practice
Essential Public Services
$220,251
0.4 N - Best Practice
Network Infrastructure Services
$196,988
0.5 N - Best Practice
Cyber Security/Business Continuity
$190,923
0.9
N - Best Practice
Mobility Services
$66,235
0.4 N - Best Practice
Data Analytics
$32,539
0.2 N - Best Practice
Emergency Application Services
$31,921
0.2 N - Best Practice
Total
$11,365,963
39.6
1'ZIII DRAFT 4/1 6/2024 City of Tukwila I Financial Sustainability Plan Technical Appendix
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Infrastructure Maintenance and Improvement
Cost Drivers
• Minimum wage requirements that impact the cost of labor.
• Inflationary increases in the cost of supplies, fuel, and contracts.
• Maintenance and operational costs for new facilities and newly acquired properties and lands.
• Increase in service levels per Council direction.
• Unforeseen events that occur after the budget is adopted such as weather events or damage to City -
owned property.
Changes in Levels of Service
• Some reductions such as maintenance of parks, trails, bus stops, and medians, were restored with one-
time funding from Federal American Rescue Plan Act (AR PA) funds. To maintain these restored services,
ongoing funding will need to be identified.
Priorities and Unfunded Needs
• Resources dedicated to facility planning, maintenance and operations.
• Resources dedicated to grant administration to maximize potential grant revenue for the City.
• Dedicated sources of funding for capital projects.
• Operational support for capital investments such as facility and park maintenance.
• Investments in risk management and workplace health and safety.
• Addressing physical and operational inequities, including enhanced language access services, ADA
transition planning, and barrier elimination.
Program Name
2024 Budget 2024 FTE Count Program Mandate
Administration
$1,147,263
5.4 Y - Federal/State
Environmental Stewardship
$880,566
4.9 Y - Ordinance/Resolution
Street Lighting
$679,648
2.5 Y - Ordinance/Resolution
Traffic Control Devices
$580,799
2.7 Y - Federal/State
Street Cleaning
$425,982
0.8 Y - Ordinance/Resolution
Video & Fiber
$151,611
0.9
Y - City Code
Snow & Ice Control
$143,321
1.0
Y - City Code
Grants Administration & Accounting
$140,834
0.8 Y - Federal/State
Budget/CIP Development
$132,729
0.7 Y - Federal/State
Sidewalks
$77,422
0.4
Y - City Code
O 16111 DRAFT 4/1 6/2024 City of Tukwila I Financial Sustainability Plan Technical Appendix
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Program Name
2024 Budget 2024 FTE Count Program Mandate
Mandatory Training
$28,083
0.1 Y - Federal/State
Professional Development & Training
$23,383
0.1 Y - Ordinance/Resolution
Projects & Capital Improvement
Management
$40,329,210
9.1 N - Best Practice
Facility Management & Improvement $2,011,828
7.8
N - Best Practice
Parks Maintenance
$1,536,910
4.5
N - Best Practice
Pothole and Litter Control
$1,155,174
0.4 N - Best Practice
TIB Bus Stop/Streetscape
$315,789
2.2 N - Best Practice
Trail Maintenance
$274,310
0.6 N - Best Practice
Graffiti, vandalism & garbage
$223,223
1.5 N - Best Practice
Parks Facility Maintenance
$211,652
1.6 N - Best Practice
Streetscapes/Median Landscape
$92,400
0.8 N - Best Practice
Grounds Maintenance -City Facilities
$89,974
0.7
N - No Mandate
Park Restrooms Contract
$83,976
0.0
N - Best Practice
Minor Structural Repairs
Total
$51,448
$50,787,534
0.4 N - Best Practice
49.7
1 fig' DRAFT 4/1 6/2024 City of Tukwila I Financial Sustainability Plan Technical Appendix
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Public Safety
Cost Drivers
• Inflationary increases in the cost of supplies, fuel, and contracts.
• Staff participation in mandated training or adoption of new processes from updated state legislation.
• Increase in service levels per Council direction.
• Unforeseen events that occur after the budget is adopted such as humanitarian crises.
• Growth in residential and daytime population may increase the number of incidents and the need for
police services.
Changes in Levels of Service
• The Police Department was fully funded in the 2023-2024 budget and the department was able to fill
previously frozen positions. The Police Department created new positions to focus on community
engagement and emergency management.
Program Name
2024 Budget 2024 FTE Count
Program Mandate
Police Patrol Services
$9,039,888
36.1
Y - City Code
Investigation of Felony and Juvenile
Crimes
$2,276,505
11.4
Y - City Code
Administration
$2,155,129
4.6 Y - Federal/State
Detention & Incarceration Services
$1,123,782
0.3 Y - Federal/State
Traffic Enforcement & Crash Investigation
Team
$913,639
4.5 Y - Federal/State
Community Risk Reduction
$723,800
0.0 Y - Ordinance/Resolution
Emergency Preparedness & Response
$640,853
1.1
Y - Federal/State
Mandatory Training
$551,850
2.3 Y - Federal/State
Public Defense Program
$448,184
0.1 Y - Federal/State
Professional Development & Training
$443,453
1.3 Y - Ordinance/Resolution
Case Management
$414,622
2.3 Y - Federal/State
Emergency Management Program
$412,537
2.0 Y - Federal/State
Civil Service Recruiting & Hiring
$402,963
1.3 Y - Federal/State
Risk Management
$ 365,664
0.0 Y - Federal/State
Evidence and Property Management
$332,542
2.2 Y - Federal/State
Professional Standards
$323,553
1.6 Y - Federal/State
Court Support Services
$209,797
1.4 Y - Federal/State
■��I DRAFT 4/1 6/2024 City of Tukwila I Financial Sustainability Plan Technical Appendix
Program Name
2024 Budget 2024 FTE Count
Program Mandate
Prosecution Services
$155,231
0.0 Y - Federal/State
Animal Control
$125,142
0.0
Y - City Code
Health & Safety
$96,912
0.3 Y - Federal/State
Court Interpreter Program
$73,864
0.3 Y - Federal/State
Public Safety Plan
$18,138
0.1
Y - City Code
Accounts Payable
$1,000
0.0 Y - Federal/State
Narcotics & Human Traffic Investigations
$1,346,478
6.3 N - Best Practice
Police Support Operations
$1,201,183
8.8 N - Best Practice
Community Policing Team
$973,842
4.9
N - Best Practice
School Zone Safety Cameras
$504,279
3.0 N - Best Practice
Critical Incident Response
$394,697
1.7 N - Best Practice
Community Investment
$162,297
1.0 N - Best Practice
Valley Independent Investigative Team
$98,805
0.5 N - Best Practice
Homeless Encampment Response
$46,618
0.2 N - Best Practice
Fire Services Contract
$14,202,720
0.0
Not Applicable
Fire Retiree Benefits
$309,500
0.0
Not Applicable
Total $40,489,467
99.3
.r64pr DRAFT 4/1 6/2024 City of Tukwila I Financial Sustainability Plan Technical Appendix
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Appendix F: Service Level Adjustments
In response to the COVID-19 pandemic, the City reduced service levels and expenditures to align with
reduced revenues. The City restored some services using new revenue and some one-time funding in the
2023-2024 "bridge budget." A description of those service level adjustments is provided in Exhibit 50
below. The City's adopted 6-year Financial Plan assumes that services reduced in the pandemic will be
restored to pre -pandemic levels.
Exhibit 50: Summary of Tukwila's Recent Service Level Adjustments
Category
2021-2022 Adopted Budget 2023-2024 Adopted Budget
Community and Economic
Development
4. Longer response time to customer
inquiries (1 -2 days to 4+ days) and
longer processing time for permits (4-
6 weeks to 8-12 weeks).
5. Less staff time spent on housing and
regional planning issues.
6. Restored funding for 2 positions with
Federal American Rescue Plan Act
(ARPA) funds.
Community Engagement
7. Elimination of the Community
Connections program.
8. Prohibitions on public gatherings
impeded the ability to adequately
gather public input on City initiatives.
9. The Community Connectors Program,
renamed the Tukwila Community
Leadership Initiative, has been
restored with ARPA funds.
Culture and Recreation
10. Reduction in the number of recreation 13
programs and services offered.
1 1. Reduction in funding for seasonal
staff.
1 2. Reductions in park maintenance
service levels: longer intervals
between mowing, tree trimming, and
weed removal; longer response times
for graffiti removal and emergency
repairs; and scheduled maintenance
items, like painting benches are
delayed or eliminated.
14
. Restored funding for part-time labor
and program supplies for teen and
youth programs with ARPA funds.
. Restored 2 part-time positions for
Parks with ARPA funds.
General Government
15. Reductions in travel and training
budgets.
16. Elimination of the SeeClickFix
contract, Commute Trip Reduction
incentives (including ORCA cards), and
Employee Recognition Program.
17. Reductions in City Attorney contract
hours.
19. The SeeClickFix contract was restored
with the use of Federal American
Rescue Plan Act (ARPA) funds, as well
as partial restoration of the Commute
Trip Reduction and Employee
Recognition programs.
20. The City Clerk's extra labor position
that works on public records requests
was restored.
.1111 DRAFT 4/16/2024 City of Tukwila 1 Financial Sustainability Plan Technical Appendix
1517
Category 2021-2022 Adopted Budget
2023-2024 Adopted Budget
1 8. Longer response time to review
contracts and internal documents and
provide support on financial tasks.
21. The Human Resources Director position
in the previous biennium was changed
to a Deputy Director Admin. Services
& Chief People Officer.
22. Addition of 2 FTEs to support
implementation and management of
the new B&O tax program.
Infrastructure
Maintenance/
Improvement
23. Deferred maintenance on various City
facilities.
24. Elimination of street sweeping and
sidewalk cleaning.
25. Deferred maintenance for traffic
signals and signal cable upgrades.
26. Rather than frontloading snow and ice
response material purchases, if a snow
and/or ice event occurs, staff will
purchase required materials and
maintain the roads. Such expenditures
will be covered via a budget
amendment later in the year
27. Restored funding for 2 positions with
Federal American Rescue Plan Act
(ARPA) funds.
28. The City hired a contract Project
Manager to lead the Environmental
Impact Statement for the Allentown
Neighborhood
Truck Reroute Project.
Public Safety
29. Reductions in Court staffing but ability
to maintain service levels due to
increased use of technology.
30. Reductions in Police staff time on
refugee/homeless outreach, drug and
human trafficking investigations, and
felony investigations.
31. Freezing of K9 Program.
32. Temporary re -assignment of School
Resource Officers.
33. Increase in Court overtime budget to
respond to new state requirements
and manage traffic filings associated
with red light cameras.
34. Police positions that were frozen were
fully funded through the B&O tax.
35. Police created new positions: a
Community Engagement Coordinator,
an Emergency Management
Coordinator, and a Public Disclosure
Records Specialist.
Sources: City of Tukwila 2021-2022 Adopted Budget and 2023-2024 Adopted Budget; BERK 2024.
1 ;glll DRAFT 4/1 6/2024 City of Tukwila Financial Sustainability Plan Technical Appendix
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Appendix G: Adopted Financial Forecast
The City develops a six -year financial plan for the General Fund to see the impact of financial policies and
budget decisions. Revenues and expenditures are projected based on economic factors, past trends, and
known program or policy changes.
The City's adopted 6-year Financial Plan (Exhibit 51) (found within the City's budget document) funds
current programs and services, as well as those programs and services that were reduced during the
pandemic and have not yet been restored. The 6-year plan calls for restoring all remaining reductions from
the pandemic and using ongoing revenue to support these programs beginning in 2025.
The adopted Financial Plan includes the following revenue assumptions:
■ Use of about half of the property tax capacity created with annexation into the Puget Sound Regional
Fire Authority (PSRFA), starting in 2025.
■ Addition of the Business & Occupation Tax starting in 2024.
■ Reduction in some fire department revenues, as they will transfer to PSRFA, starting in 2025.
■ The Plan includes the following expenditure assumptions:
■ Reduction in contract expenditures with PSRFA, starting in 2025.
■ Funding of 8 FTE positions that were frozen in the 2023-2024 budget, starting in 2025.
■ No other increase in staffing.
■ Less than 2% annual increase in budgets for salaries and benefits.
■ No increase in budgets for operational expenses like supplies, technology, and professional
development.
■ Funding of planned debt service payments.
In the adopted 6-year Financial Plan, the General Fund meets minimum fund balance requirements. The
City's reserve policy, as revised in 2015, requires a General Fund minimum fund balance of 18% as
calculated on the prior year ongoing General Fund revenue. A new discretionary reserve was added to the
policy. Under this section, 10% of one-time revenue realized in the previous year will be set aside as a
one-time revenue reserve, to the extent doing so does not negatively impact compliance with the General
Fund minimum fund balance requirement.
Reserve funds are set aside to mitigate current and future risks, such as revenue shortfalls or unanticipated
expenditures. Examples include responding to weather events or unforeseen human services needs.
Since revenues will decrease due to the annexation into PSRFA, the reserve policy allows reserves to
decrease as well. In the adopted 6-year Financial Plan, the City chose to hold reserves at the current level
until such time as revenues rebound. This conservative approach is how the reserve policy was implemented
during the COVID-19 pandemic, and the recommendation from staff is to continue this approach in the
future.
:111 DRAFT 4/1 6/2024 City of Tukwila 1 Financial Sustainability Plan Technical Appendix
In the adopted 6-year Financial Plan, revenue growth is projected to be higher than expenditure growth, which
would provide for modest capacity for either additional expenditures or a reduction in revenues (detailed in
Exhibit 52). The projected variance between revenues and expenditures is approximately 1 % of total revenues.
Exhibit 51. Revenues and Expenditures in Adopted 6-year General Fund Financial Plan, 2023-2028
$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
Budget
Projected
2023 2024 2025 2026 2027 2028
•Total Revenues —Total Expenditures
Source: City of Tukwila, 2023; BERK 2024.
Exhibit 52: Projected Revenues and Expenditures in Adopted 6-Year General Fund Financial Plan, 2025-2028
Projected Projected Projected Projected
2025 2026 2027 2028
Revenues $66,814,000 $68,258,000 $69,792,000 $71,551,000
Expenditures $66,331,000 $67,696,000 $69,009,000 $70,357,000
Variance $483,000 $562,000 $783,000 $1,194,000
Note: Amounts have been rounded to the nearest $7,000.
Source: City of Tukwila, 2023; BERK 2024.
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