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HomeMy WebLinkAboutReg 2024-06-03 Item 6 - Budget - Process and ConsiderationsCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 6/3/24 LH ITEM INFORMATION ITEM NO. 6 STAFF SPONSOR: LAUREL HUMPHREY ORIGINAL AGENDA DATE: 6/3/24 AGENDA ITEM TITLE Budget Process and Key Considerations CATEGORY ® Discussion Mtg Date 6/3/24 ❑ 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 Brian Murphy and Katherine Goetz will facilitate a City Council discussion on budget considerations and themes. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 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 6/3/24 MTG. DATE ATTACHMENTS 6/3/24 PowerPoint 177 178 CITY OF TUKWILA 2025-26 x 1 1 BUDGE DEVELOPMENT PROCESS te41 Ana it The City of opportunity, the community of choice. CO CO O 2025-2026 Budget Development - Council check -in Tonight's purpose • Preview elements of early 2025-2026 budget development • Hear Council's perspective on what is important to consider as the Mayor and staff develop the proposed budget ICity of Tukwila 2025-26 Budget Development 2 Budget Development Process Steps April -June • System plans and projects are being updated • Annual Overlay Program • Neighborhood Traffic Calming • Intro to TIP • Surface Water Comp Plan • Financial Sustainability Plan was presented to Council • Utility Rate Study was presented to Council • City Comprehensive Plan Updates • Community Outreach • Department & Program Budget Development is underway • Current level of service • New initiatives/investments July - September • Overview of Proposed 2025-26 CIP will be presented to Council • City Comp Plan Updates • Overview of Funds will be presented to Council • Preliminary 2025-26 Operating and Capital Budget will be presented to Council • Priority Based Budgeting Presentations to Council City of Tukwila 2025-26 Budget Development 3 00 CO lV Key Milestones MARCH BUDGET KICK-OFF JULY Capital Improvement Program Briefing; City Comp Plan Briefings NOVEMBER Public Hearings & Final Budget Adoption APRIL-MAY Financial Sustainability Plan Recommendations; Community outreach AUGUST 6 Year Financial Forecast; Budget Document Prep; City Comp Plan Briefings DECEMBER Final Adopted Budget Distributed APRIL-MAY Policy Reviews; Utility cost of service; Council Check -In SEPTEMBER Preliminary Budget Proposal Program Presentations; City Comp Plan Briefings MAY-JUNE City Comp Plan Briefings; Community Outreach Update OCTOBER Program Presentations Revised Proposed Budget City of Tukwila 2025-26 Budget Development 4 Context: 2023-24 Served as a "Bridge" Budget • The City faced unprecedented times: COVID-19 and revenue losses • The City balanced the budget using three strategies: 1. Use of one-time funds/reserve balances 2. New revenue via B&O tax 3. Budget reductions through attrition and vacancies City of Tukwila 2025-26 Budget Development 5 2025-26 Early Budget Development The Mayor and staff are focused on these themes as they develop a proposed budget: • Restoring services to the community that were reduced in the pandemic • This will be done by unfreezing positions and operational funding • Funding select new initiatives or enhancements to existing programs to meet community needs • Streamlining efforts where possible • Using half of property tax revenue capacity from the annexation to PSRFA to fund services ($6M) City of Tukwila 2025-26 Budget Development 6 Discussion Format • Input from all Council members, with questions and dialogue • Staff can answer questions and clarify facts Tonight's Council Check -In 1. What are your thoughts on the themes underlying the proposed budget that the Mayor is developing? See slide 6. 2. Are there other areas we should focus on for the upcoming budget? Examples of budget categories: • Community and economic development • Community engagement • Culture and recreation • General government • Infrastructure maintenance/improvement • Public safety ICity of Tukwila 2025-26 Budget Development 7 00 01 Next Steps MARCH BUDGET KICK-OFF JULY Capital Improvement Program Briefing; City Comp Plan Briefings NOVEMBER Public Hearings & Final Budget Adoption APRIL-MAY Financial Sustainability Plan Recommendations; Community outreach AUGUST 6 Year Financial Forecast; Budget Document Prep; City Comp Plan Briefings DECEMBER Final Adopted Budget Distributed APRIL-MAY Policy Reviews; Utility cost of service; Council Check -In SEPTEMBER Preliminary Budget Proposal Program Presentations; City Comp Plan Briefings City Comp Plan Briefings; Community Outreach Update OCTOBER Program Presentations Revised Proposed Budget City of Tukwila 2025-26 Budget Development 8