HomeMy WebLinkAboutCOW 2024-06-24 COMPLETE AGENDA PACKETTukwila City Council Agenda
COMMITTEE OF THE WHOLE
Thomas McLeod, Mayor Councilmembers: De’Sean Quinn Tosh Sharp
Marty Wine, Interim City Administrator Armen Papyan Jovita McConnell
Mohamed Abdi, Council President Dennis Martinez Hannah Hedrick
ON-SITE PRESENCE:
TUKWILA CITY HALL
COUNCIL CHAMBERS
6200 SOUTHCENTER BOULEVARD
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Monday, June 24, 2024; 7:00 PM Ord #2731 Res #2098
1.CALL TO ORDER / PLEDGE OF ALLEGIANCE
2.LAND
ACKNOWLEDGEMENT
The City of Tukwila is located on the ancestral lands of the Coast Salish people.
We acknowledge their continuing connections to land, waters and culture.
We pay our respects to their elders past, present and emerging.
3.PUBLIC COMMENTS
including comment
on items both on and
not on the meeting agenda
Those wishing to provide public comments may verbally address the City Council both
on-site at Tukwila City Hall or via phone or Microsoft Teams for up to
5 minutes for items both on and not on the meeting agenda.
To provide comment via phone or Microsoft Teams, please email
citycouncil@tukwilawa.gov with your name and topic by 5:00 PM on the meeting date.
Please clearly indicate that your message is for public comment during the meeting,
and you will receive further instructions.
4.SPECIAL ISSUES a. 2024 City Council meeting schedule.
b. 2023 Year-end financial report.
c. Business & Occupation Tax quarterly report.
Pg.1
Pg.5
Pg.73
5.REPORTS a. Mayor
b. City Council
c. Staff
6.MISCELLANEOUS
7.EXECUTIVE SESSION
8.ADJOURNMENT
This agenda is available at www.tukwilawa.gov, and in alternate formats with advance notice for those with disabilities. Remote Tukwila Council meetings are audio taped (and video taped as of 9/14/20). Available at www.tukwilawa.gov)
If you are in need of translation or interpretation services at a Council meeting,
please contact us at 206-433-1800 by 12:00 p.m. on the meeting date.
WELCOME TO THE TUKWILA CITY COUNCIL MEETING
The Tukwila City Council encourages community participation in the local government process and welcomes attendance and public comment at its meetings.
MEETING SCHEDULE
Regular Meetings are held at 7:00 p.m. on the 1st and 3rd Mondays of each month. The City Council takes formal action in the form of motions, resolutions and ordinances at Regular Meetings.
Committee of the Whole Meetings are held at 7:00 p.m. on the 2nd and 4th Mondays of each month. The City Council considers current issues, discusses policy matters in detail, and coordinates the work of the Council at Committee of the Whole meetings.
PUBLIC COMMENTS
Members of the public are given the opportunity to address the Council for up to 5 minutes on items both on and not on the meeting agenda during Public Comments. The City Council will also accept comments on an
agenda item when the item is presented in the agenda, but speakers are limited to commenting once per item each meeting.
When recognized by the Presiding Officer, please go to the podium if on-site or turn on your microphone if attending virtually and state your name clearly for the record. The City Council appreciates hearing from you but may not respond or answer questions during the meeting. Members of the City Council or City staff may follow up with you following the meeting.
PUBLIC HEARINGS
Public Hearings are required by law before the Council can take action on matters affecting the public interest such as land-use laws, annexations, rezone requests, public safety issues, etc. The City Council
Rules of Procedure provide the following guidelines for Public Hearings:
1.City staff will provide a report summarizing and providing context to the issue at hand.
2.City staff shall speak first and be allowed 15 minutes to make a presentation.
3. The applicant is then allowed 15 minutes to make a presentation.
4.Each side is then allowed 5 minutes for rebuttal.
5.After City staff and the applicant have used their speaking time, the Council may ask furtherclarifying questions of the speakers.
6.Members of the public who wish to address the Council on the hearing topic may speak for 5minutes each.
7.Speakers are asked to sign in on forms provided by the City Clerk.
8.The Council may ask clarifying questions of speakers and the speakers may respond.
9.Speakers should address their comments to the City Council.
10.If a large number of people wish to speak to the issue, the Council may limit the total amount ofcomment time dedicated to the Public Hearing.
11.Once the Presiding Officer closes the public hearing, no further comments will be accepted, and theissue is open for Councilmember discussion.
12.Any hearing being held or ordered to be held by the City Council may be continued in the manner as
set forth by RCW 42.30.100.
For more information about the City Council, including its complete Rules of
Procedure, please visit: https://www.tukwilawa.gov/departments/city-council/
ITEM INFORMATION
STAFF SPONSOR: LAUREL HUMPHREY ORIGINAL AGENDA DATE: 6/24/24
AGENDA ITEM TITLE 2024 Council Meeting Schedule
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 6/24/24 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW
SPONSOR’S
SUMMARY Resolution No. 2091 established a pilot meeting schedule for monthly Council Committee
meetings and full Council work sessions prior to Regular Meetings, and calls for the City
Council to reevaluate the pilot meeting schedule framework no later than July 1, 2024.
REVIEWED BY Trans&Infrastructure Svcs Community Svcs/Safety Finance & Governance Planning & Community Dev.
LTAC Arts Comm. Parks Comm. Planning Comm.
DATE: COMMITTEE CHAIR: N/A
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMITTEE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
6/24/24
MTG. DATE ATTACHMENTS
6/24/24 Informational Memorandum
COUNCIL AGENDA SYNOPSIS
----------------------------------Initials --------------------------------- ITEM NO.
Meeting Date Prepared by Mayor’s review Council review
6/24/24 AY 4.A
1
2
City of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: Committee of the Whole
FROM: Laurel Humphrey, Legislative Analyst
DATE: June 18, 2024
SUBJECT: 2024 City Council Meeting Schedule
BACKGROUND
Resolution No. 2091 established a pilot meeting schedule to reduce Committee meetings to
once per month and hold full Council work sessions prior to Regular Meetings twice per
month. The resolution also called for the City Council to reevaluate the pilot meeting
schedule framework no later than July 1, 2024. The current schedule is as follows:
5:30 p.m. 7:00 p.m.
1st Monday Work Session Regular Meeting
2nd Monday Community Services & Safety Committee
Planning & Community Development Committee
Committee of the
Whole
3rd Monday Work Session Regular Meeting
4th Monday Finance & Governance Committee
Transportation & Infrastructure Services Committee
Committee of the
Whole
Due to the turnover on the City Council this year, the work session meetings were intended to
provide opportunities for Councilmembers to get up to speed on big topics, to foster full
group collaboration, and to present significant information to all members at the same time.
Six months in, committees have been operating successfully within the monthly schedule and
work sessions have been held on topics including risk management, Capital Improvement
Program, Robert’s Rules, biennial budget, and Comprehensive Plan.
Staff recommends continuing with this meeting schedule for the remainder of the year and
reevaluating in early 2025. Work sessions are currently being planned for Council discussion
on Tukwila South Development Agreement, Public Works Shops Phase 2, Comprehensive
Plan, Budget, and tenant protections.
RECOMMENDATION
Discussion only.
3
4
ITEM INFORMATION
STAFF SPONSOR: TONY ORIGINAL AGENDA DATE: 6/24/24
AGENDA ITEM TITLE 2023 Year-End Financial Presentation
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 6/24/24 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW
SPONSOR’S
SUMMARY Finance will be presenting the 2023 Year-End Financial Summary.
REVIEWED BY Trans&Infrastructure Svcs Community Svcs/Safety Finance & Governance Planning & Community Dev.
LTAC Arts Comm. Parks Comm. Planning Comm.
DATE: COMMITTEE CHAIR: N/A
RECOMMENDATIONS:
SPONSOR/ADMIN. Finance Department
COMMITTEE Discussion only
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
MTG. DATE ATTACHMENTS
6/24/24 Informational Memorandum
Year-End Report
PowerPoint
COUNCIL AGENDA SYNOPSIS
----------------------------------Initials --------------------------------- ITEM NO.
Meeting Date Prepared by Mayor’s review Council review
6/24/24 Tony 4.B
5
6
City of Tukwila Tom McLeod, Mayor
Finance Department
INFORMATIONAL MEMORANDUM
TO:
CC:
FROM:
DATE:
SUBJECT:
Tukwila City Council
Mayor McLeod
Tony Cullerton, Interim Finance Director
June 24, 2024
2023 Year-End Report
ISSUE
This report summarizes the citywide financial results and highlights significant items or trends through the
end of 2023. The primary emphasis of the report is on the General Fund activities. Although the report
includes financial information about all City funds, the discretionary activity in the other funds is
constrained by statutory restrictions, unlike the General Fund.
General Fund revenues ended the year 5.4% over budget. Expenditures came in at 1.4% under budget.
Increased revenues were primarily a result of inflationary prices tied to high ahigh CPI. The delayed
implementation of anticipated wage and benefit adjustments associated with collective bargaining have
yielded reductions in expenditures. These expenses are expected to be paid in August 2024. The City met
its fund balance policy requirements and fund balance increased by approximately $1.6 million.
Additional details can be found in the attached financial reports.
DISCUSSION
2023 Highlights
General Fund
Unassigned beginning fund balance was $17.2 million and exceeded the fund balance policy
requirements. Ending fund balance is higher than expected due to the delay in finalizing labor
contracts.
Revenue came in at $78 million, which is 5.4% above budget of $74.5 million. Major revenue
performers were sales tax, gambling tax, and building permits.
Salaries and benefits were lower than budget due to ongoing collective bargaining with Teamsters
Local 763. A retroactive payment will be made in 2024.
General Fund departmental expenditures ended the year at $67.2 million and transfers out are at $9.7
million for a total general fund expenditures of $76.9 million.
Total general fund expenditures are below allocated budget by $1.1 million. As previously noted, this
is largely due to one-time savings generated from staff vacancies and pending wage and benefit
adjustments associated with collective bargaining.
Other Funds
Several capital projects are in process including.
S 152nd Safe Routes to School and S 119th Bridge Safety improvements in the residential street fund
42nd Ave S Bridge Replacement, Allentown Truck Reroute, and W Valley Highway projects in the
arterial street fund
7
The Levee Certification/Green River Corridor project involved ongoing collaboration with the ArmyCorps of Engineers.Gilliam Creek Fish Barrier Removal and Nelsen Side Channel projects advanced with ongoing design
work.
PW Shops Phase 2 under way
ATTACHMENTS
Year-End Financial Report
Year-End PowerPoint slides
Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov
8
1
CITY OF TUKWILA
2023 YEAR-END FINANCIAL
REPORT
HIGHLIGHTS
9
2
This report presents a comprehensive overview of the City’s income and expenditure
activities for 2023, with a particular focus on General Fund operations. While it includes
financial data on all City funds, it should be noted that discretionary activities in the other
funds are limited by statutory restrictions, unlike the General Fund.
By year-end, revenues amounted to $78.4 million, meeting projections and exceeding the
budget by 5.4%. Expenditures totaled $76.9 million, which was 1.4% below the budgeted
amount.
2023
Budget
2023
Actual $ Diff % Diff
Revenues 74,492,245 78,480,106 3,987,861 5.4%
Expenditures 77,944,031 76,888,720 (1,055,311) -1.4%
Although the year ended with operating expenditures below budget, it is important to
recognize that this reduction does not constitute actual savings due to ongoing labor
negotiations.
74,492,245
77,944,031
78,480,106
76,888,720
72,000,000
73,000,000
74,000,000
75,000,000
76,000,000
77,000,000
78,000,000
79,000,000
Revenues Expenditures
2023 Budget 2023 Actual
10
3
Over the past three years, revenues in 2023 have increased by 9.2% compared to 2022
and by 17% compared to 2021. Despite this upward trend in revenues, Expenditures have
also increased significantly due to inflation.
2023 reported slimmest margin between revenues and expenses over the past five
years.
67,008
71,844
78,480
60,000
65,000
70,000
75,000
80,000
2021 2022 2023
Th
o
u
s
a
n
d
s
Total Revenue
2021 - 2023
61,823
56,648
62,468 66,259
78,480
56,269 52,904 54,598
59,597
76,889
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2019 2020 2021 2022 2023
Th
o
u
s
a
n
d
s
Rev/Exp 5 yr. Trend
Rev Exp
11
4
Year Rev Exp Diff
2023 78,480,106 76,888,720 1,591,386
2022 66,259,176 59,597,232 6,661,944
2021 62,468,243 54,598,304 7,869,939
2020 56,648,351 52,903,895 3,744,456
2019 61,822,870 56,269,134 5,553,736
Fund Balance
General Fund
The fund balance policy states that the fund balance in the General Fund shall equal or
exceed 18% of the previous year’s general fund revenue, exclusive of significant non-
operation, non-recurring revenue. The General Fund ended 2023 with $17.2 million
unreserved fund balance and exceeds reserve policy by $4.7 million.
The fund balance policy states that fund balance in the Contingency Fund shall equal or
exceed 10% of the previous year’s general fund revenue, exclusive of significant non-
operating, non-recurring revenue. The Contingency Fund ended the year with a fund
balance of $7.1million, which meets the fund balance policy requirement by $189,474.
The fund balance policy states that the unrestricted balances of the Enterprise Fuds shall
equal or exceed 20% of the previous year revenue, exclusive of significant non-operating,
non-recurring revenues. Each of the Utility Funds met the fund balance requirements.
General Fund
2022 Ongoing Revenues 69,493,267
18% of 2022 Ongoing Revenues 12,508,788
2023 GF Unassigned FB 17,220,806
Amount Over/(Under)4,712,018
Contingency Fund
10% of 2022 Ongonig Revenues 1,349,355
Contingency Fund 7,138,801
Amount Over/(Under)5,789,446
12
5
Utility Funds
Unrestricted FB 401 Water 402 Sewer 411 Golf 412 Surface Water
Unrestricted FB 5,170,176 12,278,125 1,468,130 7,140,321
Prior Yr Rev 6,780,905 9,422,525 2,267,965 7,021,365
20% of PR Rev 1,356,181 1,884,505 453,593 1,404,273
Amount Over/(Under)3,813,995 10,393,620 1,014,537 5,736,048
13
6
General Fund Revenue
City of Tukwila
Allocated Budget %
2023 2022 2023 vs Actuals Received $%
Annual OVER/(UNDER)2022/2023 2022/2023
Property Tax 17,682,000 17,233,512 17,536,670 (145,330) 99%303,158 1.8%
Sales Taxes-Retail 21,378,000 21,023,287 21,881,507 503,507 102%858,220 4.1%
Use Taxes 905,000 953,890 970,202 65,202 107%16,312 1.7%
Admission Taxes 850,000 819,932 842,387 (7,613) 99%22,455 2.7%
Utility Taxes 4,300,000 3,949,799 4,125,408 (174,592) 96%175,609 4.4%
Interfund Utility Taxes 2,634,980 2,404,685 2,567,243 (67,737) 97%162,558 6.8%
Gambling & Excise Taxes 4,665,700 4,964,964 4,464,521 (201,179) 96%(500,443) -10.1%
Total Tax Revenue 52,415,680 51,350,070 52,387,938 (27,742) 100%1,037,868 2.0%
Business Licenses 3,230,000 2,939,066 3,243,556 13,556 100%304,490 10.4%
Rental Housing permits 41,000 64,605 57,751 16,751 141%(6,854) -10.6%
Building Permits 1,739,660 1,799,493 2,430,331 690,671 140%630,838 35.1%
Franchise fees 508,000 573,391 589,509 81,509 116%16,118 2.8%
Total Licenses and Permits 5,518,660 5,376,555 6,321,147 802,487 115%944,592 17.6%
Sales Tax Mitigation payments 635,470 794,337 635,470 0 100%(158,867) -20.0%
SCL Agreement 2,300,000 2,416,079 2,651,351 351,351 115%235,272 9.7%
Grant Revenues 4,319,003 2,882,099 3,668,912 (650,091) 85%786,813 27.3%
State Entitlements 505,500 503,242 661,534 156,034 131%158,292 31.5%
Intergovernmental Revenue 628,804 566,979 704,493 75,689 112%137,514 24.3%
Total Intergovernmental Revenue 8,388,777 7,162,736 8,321,760 (67,017) 99%1,159,024 16.2%
General Government Revenue 16,620 26,040 22,703 6,083 137%(3,337) -12.8%
Security revenue 1,338,900 978,782 1,179,543 (159,357) 88%200,761 20.5%
Transportation Revenue 20,000 1,961 288 (19,712) 1%(1,673) -85.3%
Plan Check and Review fees 794,268 834,728 1,258,163 463,895 158%423,435 50.7%
Culture and Recreation fees 181,200 143,197 166,621 (14,579) 92%23,424 16.4%
Fines and Penalties 760,475 480,632 311,630 (448,845) 41%(169,002) -35.2%
Other Income 295,551 450,568 566,570 271,019 192%116,002 25.7%
Total Charges for Services 3,407,014 2,915,909 3,505,518 98,504 103%589,609 20.2%
TOTAL OPERATING REVENUE 69,730,131 66,805,270 70,536,363 806,232 101%3,731,093 5.6%
Indirect Cost Allocation 2,822,397 2,687,997 2,822,397 0 100%134,400 5.0%
Investment Earnings 100,000 (494,257)770,383 520,383 770%1,264,640 -255.9%
Rent & Concessions 335,570 192,355 466,505 130,935 139%274,150 142.5%
Transfers In 1,624,147 2,553,951 1,323,249 (30,898) 81%(1,230,702) -48.2%
Bond Proceeds 0 98,699 2,561,209 2,561,209 N/A N/A N/A
Sale of Capital Assets 0 0 0 65,202 0%(58,178) -2.0%
Total Non-Operating Revenue 4,882,114 5,038,744 7,943,743 3,181,629 163%2,904,999 57.7%
TOTAL REVENUE 74,612,245 71,844,015 78,480,106 3,987,861 105%6,636,091 9.2%
SUMMARY BY REVENUE TYPE
Year-to-Date as of December 31, 2023
Change
BUDGET ACTUAL COMPARISON OF RESULTS
14
7
Property Tax
2023
Budget
2021
Actual
2022
Actual
2023
Actual
Actual
less
Budget
2023 YTD vs
2022 YTD $
Diff
%
Diff
17,682,000 17,124,167 17,233,512 17,536,670 (145,330) 303,158 1.8%
Property Tax increased 1.8% over the same period last year. Property Tax is stable with
large variances usually attributed to timing differences of receipt of tax payments.
17,124,167
17,233,512
17,536,670
16,900,000
17,000,000
17,100,000
17,200,000
17,300,000
17,400,000
17,500,000
17,600,000
2021 Actual 2022 Actual 2023 Actual
Property Tax
Jan -Dec
2021 - 2023
15
8
Sales Tax
2023
Budget
2021
Actual 2022 Actual
2023
Actual
Actual
less
Budget
2023 YTD
vs 2022
YTD $ Diff % Diff
22,283,000 20,148,103 21,977,177 22,851,709 568,709 874,532 4.0%
Sales Tax ended the year $874,532 (4.0%) higher compared to last year. Sales tax
revenue continues to improve year over year. The increase in inflation is a strong driver
for the overall increase in sales tax revenue.
20,148,103
21,977,177
22,851,709
18,500,000
19,000,000
19,500,000
20,000,000
20,500,000
21,000,000
21,500,000
22,000,000
22,500,000
23,000,000
23,500,000
2021 Actual 2022 Actual 2023 Actual
Sales Tax
Jan - Dec
2021 - 2023
16
9
The City of Tukwila relies heavily on sales tax revenue. Although overall tax revenue has
increased annually, the Retail Trade sector, the largest contributor, is experiencing a
decline. Conversely, the Service and Construction sectors are the top performers. The
robust performance in the Construction sector is further evidenced by the significant rise
in Building Permit revenues.
Sector 2022 2023 YTD Change % Change
% of
Total
Construction $1,704,700 $2,239,350 534,650 31.4% 63%
Manufacturing $223,090 $228,453 5,363 2.4% 1%
Transp / Warehousing $232,550 $222,522 (10,028) -4.3% -1%
Wholesale Trade $1,355,511 $1,404,809 49,298 3.6% 6%
Automotive $762,329 $563,326 (199,003) -26.1% -24%
Retail Trade $10,106,924 $9,841,093 (265,831) -2.6% -32%
Services $6,278,645 $6,993,518 714,873 11.4% 85%
Miscellaneous $186,564 $200,438 13,874 7.4% 2%
Total 20,850,313 21,693,509 843,196 4.0% 100%
17
10
Utility Tax
2023
Budget
2021
Actual
2022
Actual
2023
Actual
Actual less
Budget
2023 YTD vs
2022 YTD $
Diff % Diff
4,300,000 3,605,314 3,949,799 4,125,408 (174,592) $175,609 4.4%
Utility tax revenue was slightly below budget projections but showed a 4.4% increase
compared to the previous year. A consistent trend observed is the decline in cable
subscribers coupled with an increase in solid waste costs. The utility tax comprises the
following utilities:
2021 2022 2023
$
Change % Change
Cable 244,274 241,837 221,303 (20,534) -8.5%
Electric 1,526,773 1,684,880 1,744,022 59,142 3.5%
Gas 527,832 641,167 659,837 18,670 2.9%
Telecommunications 678,221 669,210 714,889 45,679 6.8%
Solid Waste 628,214 712,704 785,009 72,305 10.1%
Total 3,605,314 3,949,798 4,125,060 175,262 4.44%
3,605,314
3,949,799
4,125,408
3,300,000
3,400,000
3,500,000
3,600,000
3,700,000
3,800,000
3,900,000
4,000,000
4,100,000
4,200,000
2021 Actual 2022 Actual 2023 Actual
Utility Tax
Jan - Dec
2021 - 2023
18
11
Interfund Utility Tax
2023
Budget
2021
Actual
2022
Actual
2023
Actual
Actual
less
Budget
2023 vs
2022 $ Diff % Diff
2,634,980 2,322,420 2,404,685 2,567,243 (67,737) 162,558 6.8%
Interfund Utility Tax finished the year slightly under budget but almost 7% over the prior
year. Interfund Utility Tax is the tax the City imposes on itself for the use of utilities. All
three utilities saw an increase greater than 5% over the prior year.
2022 2023 $ Chg.
%
Chg.
Water 722,511 784,612 62,101 8.6%
Sewer 942,949 1,005,699 62,750 6.7%
Surface Water 739,225 776,932 37,707 5.1%
2,322,420
2,404,685
2,567,243
2,200,000
2,250,000
2,300,000
2,350,000
2,400,000
2,450,000
2,500,000
2,550,000
2,600,000
2021 Actual 2022 Actual 2023 Actual
Interfund Utility Tax
Jan - Dec
2021 - 2023
19
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Gambling Tax
2023
Budget
2021
Actual
2022
Actual
2023
Actual
Actual less
Budget
2023 YTD vs
2022 YTD $
Diff % Diff
4,665,700 4,367,189 4,964,964 4,464,521 (201,179) (500,443) -10.1%
Gambling Tax declined in 2023 after a strong rebound in the prior year. Gambling Tax is
down $201,179 from the prior year and finished the year -10.1% under budget.
4,367,189
4,964,964
4,464,521
4,000,000
4,100,000
4,200,000
4,300,000
4,400,000
4,500,000
4,600,000
4,700,000
4,800,000
4,900,000
5,000,000
5,100,000
2021 Actual 2022 Actual 2023 Actual
Gambling Tax
Jan - Dec
2021 - 2023
20
13
Admission Tax
Admission tax reported revenues slightly above the prior year but came in slightly under
budget. Admission Tax appears to be leveling out since the sharp decline during the
pandemic.
2023
Budget
2021
Actual
2022
Actual
2023
Actual
Actual
less
Budget
2023 YTD
vs 2022
YTD $ Diff % Diff
850,000 539,690 819,932 842,387 (7,613) 22,455 2.7%
539,690
819,932 842,387
0
200,000
400,000
600,000
800,000
1,000,000
2021 Actual 2022 Actual 2023 Actual
Admission Tax
Jan - Dec
2021 - 2023
21
14
Business Licenses
Business licenses finished the year 10.4% over the same period last year. The number
of business licenses has increased both within Tukwila and in the non-residential
category.
2023
Budget
2021
Actual
2022
Actual
2023
Actual
Actual
less
Budget
2023 YTD
vs 2022
YTD $ Diff % Diff
3,230,000 3,204,915 2,939,066 3,243,556 13,556 304,490 10.4%
2022 2023 # Change % Change
Tukwila Businesses 2,322 2,338 16 0.7%
Non-Residential Business Licenses 2,719 3,004 285 10.5%
Total Business Licenses 5,041 5,342 301 6.0%
3,204,915
2,939,066
3,243,556
2,750,000
2,800,000
2,850,000
2,900,000
2,950,000
3,000,000
3,050,000
3,100,000
3,150,000
3,200,000
3,250,000
3,300,000
2021 Actual 2022 Actual 2023 Actual
Business Licenses
Jan - Dec
2021 - 2023
22
15
Building Permits
2023
Allocated
Budget
2021
Actual
2022
Actual
2023
Actual
Actual
less
Budget
2023 vs
2022 $ Diff % Diff
1,739,660 1,717,081 1,799,493 2,430,331 690,671 630,838 35.1%
Building permits have been showing steady growth over the past three years.
Building permits have increased in both volume and valuation. YTD the number of permits
issues has increased by over 30%. Building Permits is a volatile revenue stream that is
difficult to predict with any amount of certainty.
1,717,081 1,799,493
2,430,331
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2021 Actual 2022 Actual 2023 Actual
Building Permits
Jan - Dec
2021 - 2023
23
16
EXPENDITURES
General Fund expenditures totaled $76.8 million, which is $1.1 million below the allocated
budget of $77.9 million. However, due to ongoing labor negotiations, the $1.1 million
under budget does not represent savings.
All General Fund departments ended the year within budget. The increase to the Non-
Departmental was attributed to new 2023 Governmental Accounting Standards Board
(GASB), GASB 96 Subscription-Based IT Arrangements (SBITA).
BUDGET
Allocated Budget %
2023 2022 2023 vs Actual Expended $ Change % Change
DEPARTMENT OVER/(UNDER)
City Council 384,889 356,579 366,378 (18,512) 95.2% 9,799 2.7%
Mayor's Office 2,405,667 2,176,819 2,308,617 (97,050) 96.0% 131,798 6.1%
Administrative Services 6,897,844 4,873,710 6,491,702 (406,142) 94.1% 1,617,992 33.2%
Finance Department 3,498,642 3,065,214 3,177,417 (321,225) 90.8% 112,203 3.7%
Rec Dept / Parks Maint 5,324,885 4,846,653 5,110,670 (214,215) 96.0% 264,017 5.4%
Community Dev 5,018,180 4,273,322 4,582,457 (435,724) 91.3% 309,134 7.2%
Municipal Court 1,741,340 1,565,412 1,623,823 (117,517) 93.3% 58,412 3.7%
Police Department 22,767,943 18,868,518 21,267,400 (1,500,543) 93.4% 2,398,882 12.7%
Fire Department 15,518,620 15,158,419 15,087,708 (430,912) 97.2% (70,711) -0.5%
PW Dept / Street Maint 7,574,986 7,000,206 7,171,066 (403,920) 94.7% 170,860 2.4%
Subtotal 71,132,998 62,184,851 67,187,238 (3,945,760) 94.5% 5,002,386 8.0%
Non Departmental 6,811,032 10,331,601 9,701,481 2,890,449 142.4% (630,120) -6.1%
Total Expenditures 77,944,030 72,516,452 76,888,719 (1,055,311) 98.6% 4,372,266 6.0%
ACTUAL
2022/2023
Actual Year-Over-Year
24
17
General Fund
City of Tukwila
General Fund Expenditures
Allocated Budget %
2023 2022 2023 vs Actuals Expended $ Change % Change
Annual OVER/(UNDER) 2022/2023 2022/2023
Salaries & Wages 27,561,307 33,612,705 26,134,968 (1,426,339) 94.8% (7,477,737) -22.2%
Benefits 10,908,318 12,457,179 9,892,228 (1,016,090) 90.7% (2,564,951) -20.6%
Supplies 769,214 612,325 547,604 (221,610) 71.2% (64,720) -10.6%
Repair & Maintenance Supplies 450,010 383,135 461,096 11,086 102.5% 77,961 20.3%
Resale Supplies 2,500 859 0 (2,500) 0.0% (859) -100.0%
Small Tools 213,203 179,442 270,919 57,716 127.1% 91,477 51.0%
Technology Supplies 343,214 96,274 323,566 (19,648) 94.3% 227,292 236.1%
Fleet Supplies 7,000 6,687 7,738 738 110.5% 1,051 15.7%
Professional Services 23,007,332 6,904,463 22,255,045 (752,287) 96.7% 15,350,582 222.3%
Communications 440,528 515,789 473,134 32,606 0.0% (42,655) -8.3%
Professional Development 571,050 395,311 452,144 (118,906) 79.2% 56,833 14.4%
Advertising 66,300 44,856 46,861 (19,439) 70.7% 2,005 4.5%
Rentals 1,298,060 188,473 1,003,426 (294,634) 77.3% 814,953 432.4%
Technology Services 1,031,264 786,143 610,245 (421,019) 59.2% (175,898) -22.4%
Utilities 2,244,354 2,366,955 2,345,382 101,028 104.5% (21,573) 0.0%
Repairs & Maintenance Services 1,286,418 2,567,904 1,535,753 249,335 119.4% (1,032,152) -40.2%
Other Expenditures 687,899 626,722 472,941 (214,958) 68.8% (153,781) -24.5%
Total Operating Expenditure 70,887,971 61,745,222 66,833,049 (4,054,922)94.3% 5,087,827 8.2%
Capital-Land - 98,699 2,561,209 (4,635,171) N/A 2,462,511 2495.0%
Other Capital Improvements - - - - -
Machinery & Equipment 1,227,831 289,145 1,093,290 (134,541) 89.0% 804,145 278.1%
Principal 0 140,106 776,163 776,163 N/A 636,056 454.0%
Interest Expense 0 12,058 78,855 78,855 N/A 66,798 554.0%
Transfers Out 5,828,229 10,231,223 5,546,153 (282,076) 95.2% (4,685,070) -45.8%
Total Non-Operating Expenditures 7,056,060 10,771,231 10,055,670 2,999,610 142.5% (715,560) -6.6%
Total Expenditures 77,944,031 72,516,452 76,888,719 (1,055,312) 98.6% 4,372,266 6.0%
Change
Year-to Date as of December 31, 2023
BUDGET ACTUAL COMPARISON OF RESULTS
25
18
ARPA
Recap of ARPA to Date
On March 10, 2021, a $1.9 trillion relief package, known as the American Rescue Plan Act, was
approved and provided funding in several areas including state and local aid, education, rental
assistance, and transit. The City was allocated $5.68 million with the first half received in June of
2021 and the second half received in July of 2022. Funds must be spent or contractually
committed by December 31, 2024
This chart shows the flow of ARPA funds after three years of council-approved expenditures.
Unallocated funds are due to expenditures that have underspend their budget allocation. More to
come regarding spending recommendations for unallocated total.
Per US Treasury ARPA requirements, Cities must contractually obligate all funds by 12/31/2024
and expend funds by 12/31/26. Council-approved allocations are expected to fully expend ARPA
funds by 12/31/24. A plan will be forthcoming on how best to utilize the remaining ARPA funds.
Total ARPA Grant (Beginning Balance)5,685,000$
2021 Actual Spent 817,307
2021 Ending Balance 4,867,693
2022 Beginning Balance 4,867,693
2022 Actual Spent 1,894,357
2022 Ending Balance 2,973,336
2023 Beginning Balance 2,973,336
2023 Actual Spent 1,243,371
2023 Ending Balance 1,729,965
2024 Beginning Balance 1,729,965
2024 Budget Allocation 1,496,418
Unallocated Amount for 2024 233,547$
26
19
Cash & Investment Year-End Report
The City’s investment portfolio provided approximately $3.2 million in cash flow during
2023. The City has benefited from historically high interest rates, with money markets
paying over 5% at year end. Most of the longer-term bond investments in the portfolio
are currently callable, but with interest rates remaining high, few are expected to be
called. Two new bonds were purchased, and two bonds were matured/called during the
year; so, the City’s total bond investments were unchanged during the year.
27
20
28
21
29
22
CITY OF TUKWILA
2023 Year-End FINANCIAL REPORT
OTHER FUNDS FINANCIAL REPORT
Other Funds
The fund balance policy states that the unrestricted balances of the Enterprise Funds
shall equal or exceed 20% of the previous year’s revenue. All Enterprise Funds meet the
Fund Balance Policy requirements.
Water Sewer Golf Surf Wat
401 402 411 412
Fund Bal 4,451,780 13,493,554 1,966,037 10,151,178
Previous Yr. Rev 7,263,546 9,418,274 2,186,710 7,378,246
20% of Rev 1,452,709 1,883,655 437,342 1,475,649
Over / (Under) 2,999,071 11,609,899 1,528,695 8,675,529
Capital Projects
The Allentown Truck Reroute project recommended alternatives for further consideration.
The Transportation Element Comp Plan incorporated community input into draft
transportation networks. West Valley Highway (I405 to Strander) Project completed
significant work, including stripping and installations. Construction progressed on Overlay
& Repair, and Foster Point Repairs were completed in Bridge Inspections. S 152nd Safe
Routes to School moved forward with design, and ADA improvements were embedded
into ongoing projects. Public Works Shops Phase 1 and Phase 2 advanced with roofing
and painting updates.
Utility Funds
Utility projects achieved significant milestones. The Levee Certification/Green River
Corridor project involved ongoing collaboration with the Army Corps of Engineers.
Regulatory reviews continued for the Surface Water, Water & Sewer Comprehensive
Plans, while the Surface Water Comp Plan was actively developed. The GIS Utilities
Inventory project, now nearing completion, benefited from the hired GIS Field Technician's
30
23
contributions. Construction progressed for the S 152nd Waterline Extension. Gilliam
Creek Fish Barrier Removal and Nelsen Side Channel projects advanced with ongoing
design work. Stormwater Quality Retrofit reached the 90% design stage, and the City
pursued wetland delineation for S 131st Drainage Improvements. The Annual Small
Drainage Program secured a design consultant, and NPDES Program compliance was
ensured through the successful hiring of new inspectors. The Green the Green project,
involving grants and vegetation management, continued, and the Chinook Wind Public
Access/Extension project received a grant of $280,000 for design activities.
Foster Golf Course
Foster Golf Course entered into a strategic partnership with GolfNow, a prominent player
in the online tee time booking service sector. This business arrangement has not only
facilitated an upgraded website for Foster Golf Course but has also resulted in increased
online visibility, amplifying the course's presence during customer searches for golf
facilities. Leveraging these enhancements, the department management successfully
justified a modest adjustment in Green Fees, aligning the cost of a round of golf with that
of other municipal golf courses in the city.
Equipment Rental
The Equipment Rental Fund has strategically leveraged the Enterprise Fleet Leasing
program by adding twelve new patrol vehicles into its fleet, thereby completing the
implementation of the Police Department's take-home vehicle program. This initiative not
only enhances response times but also strengthens the Police Department's competitive
edge in attracting new officers and recruits.
Additionally, the utilization of the fleet leasing program has enabled the Equipment Rental
department to capitalize on surplus vehicles during opportune periods, leading to elevated
resale values. The department has realized a noteworthy sum of $326,067 from the Sale
of Capital Assets, surpassing the budget by $164,317 (201.6%). This financial
achievement underscores the effective management and optimization of resources within
the department.
Lodging Tax
Lodging tax revenue is on pace to meet and exceed budget. Lodging tax revenue through
September is $787k and exceeds allocated budget by $61k.
Drug Seizure
The seizure fund brought in $79,010 through the Dept of Justice’s Equitable Sharing
program and $63,433 of funds spent from these Seizure Funds was reimbursed by the
Associated of Washington Cities via their Alternative Response Team Grant (this is the
program that partially funds the Police Department’s Mental Health Co-Responder
program).
31
24
On the expenditure side, the Police Department sent $82,322 to Sound Mental Health as
contracted compensation for our two Mental Health Co-Responders (a portion of these
expenditures will be returned to us via the grant). The Police Department also spent
$11,423 of these Seizure Funds to replace our Special Response Team’s (SWAT)
ballasted-rated helmets and $6,716 on a software program used by our detectives to aid
them in solving felony crimes.
Debt Service Funds
Debt Service is funded by budgetary approved interfund transfers. All long-term debt
obligations are paid timely and in accordance with the debt schedule.
Insurance – Active Employees / Insurance LEOFF 1 Retirees Funds
The Insurance funds are trending as anticipated. The funds are adequately funded, and
Program Cost expenditures are slightly under budget. Both funds are stable and well
positioned heading into 2024.
32
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33
26
34
27
35
28
36
29
37
30
38
31
39
32
40
33
41
34
42
35
43
36
44
37
45
38
46
39
47
40
48
CITY OF TUKWILA
2023 YEAR-END FINANCIAL REPORT
HIGHLIGHTS
4
9
General Fund
2023 Revenues & Expenditures
Budget vs Actuals
% Diff$ Diff2023 Actual2023 Budget
5.4%3,987,8612 78,480,106 74,492,245 Revenues
-1.4%(1,055,312)76,888,720 77,944,031 Expenditures
74,492,245
77,944,031
78,480,106
76,888,720
72,000,000
73,000,000
74,000,000
75,000,000
76,000,000
77,000,000
78,000,000
79,000,000
Revenues Expenditures
2023 Budget 2023 Actual
5
0
Three Year General Fund Revenue Trend
67,008
71,844
78,480
60,000
62,000
64,000
66,000
68,000
70,000
72,000
74,000
76,000
78,000
80,000
2021 2022 2023
Th
o
u
s
a
n
d
s
Total Revenue
2021 - 2023
5
1
Three Year General Fund Expenditure
54,598,304
59,597,232
76,888,720
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
2021 2022 2023
Total Expenditures 2021 -2023
% Diff$ Diff202320222021
29.0%17,291,488 76,888,720 59,597,232 54,598,304
5
2
Change in Fund Balance
15,852,564 Beginning Fund Balance
1,591,280Change in Fund Balance
17,443,844Ending Fund Balance
5
3
Fund Balance Policy
69,493,267 2022 Ongoing Revenues
12,508,788 18% of 2022 Ongoing Revenues
17,220,806 2023 GF Unassigned FB
4,712,018 Amount Over/(Under)
6,949,327 10% of 2022 Ongoing Revenues
7,138,801 Contingency Fund
189,474 Amount Over/(Under)
5
4
Utility Fund Balance Policy
412 Surface
Water411 Golf402 Sewer401 Water
7,140,321 1,468,130 12,278,125 5,170,176 Unrestricted FB
7,021,365 2,267,965 9,422,525 6,780,905 Prior Yr Rev
1,404,273 453,593 1,884,505 1,356,181 20% of PR Rev
5,736,048 1,014,537 10,393,620 3,813,995 Over/(Under)
5
5
CITY’S MAJOR TAX
REVENUES
5
6
Property Tax
% Diff
2023 YTD vs
2022 YTD $
Diff
Actual less
Budget2023 Actual2022 Actual2021 Actual2023 Budget
1.6%303,158 (145,330)17,536,670 17,233,512 17,124,167 17,682,000
17,124,167
17,233,512
17,536,670
16,800,000
17,000,000
17,200,000
17,400,000
17,600,000
2021 Actual 2022 Actual 2023 Actual
Property Tax
Jan -Dec
2021 - 2023
5
7
Sales Tax
% Diff
2023 YTD vs
2022 YTD $
Diff
Actual less
Budget2023 Actual2022 Actual2021 Actual2023 Budget
4.0%874,532568,70922,851,709 21,977,17720,148,103 22,283,000
20,148,103
21,977,177
22,851,709
18,500,000
19,000,000
19,500,000
20,000,000
20,500,000
21,000,000
21,500,000
22,000,000
22,500,000
23,000,000
23,500,000
2021 Actual 2022 Actual 2023 Actual
Sales Tax
Jan - Dec
2021 -2023
5
8
Sales Tax Sectors
% ChangeYTD Change2023 2022 Sector
31.4%534,650 $2,239,350 $1,704,700 Construction
2.4%5,363 $228,453 $223,090 Manufacturing
-4.3%(10,028)$222,522 $232,550 Transp / Warehousing
3.6%49,298 $1,404,809 $1,355,511 Wholesale Trade
-26.1%(199,003)$563,326 $762,329 Automotive
-2.6%(265,831)$9,841,093 $10,106,924 Retail Trade
11.4%714,873 $6,993,518 $6,278,645 Services
7.4%13,874 $200,438 $186,564 Miscellaneous
4.0%843,196 21,693,509 20,850,313 Total
5
9
Utility Tax
% Diff
2023 YTD vs
2022 YTD $
Diff
Actual less
Budget2023 Actual2022 Actual2021 Actual2023 Budget
4.4%175,609 (174,592)4,125,408 3,949,7993,605,314 4,300,000
3,605,314
3,949,799
4,125,408
3,200,000
3,400,000
3,600,000
3,800,000
4,000,000
4,200,000
2021 Actual 2022 Actual 2023 Actual
Utility Tax
Jan -Dec
2021 -2023
6
0
Interfund Utility Tax
% Diff
2023 YTD vs
2022 YTD $
Diff
Actual less
Budget2023 Actual2022 Actual2021 Actual2023 Budget
6.8%162,558(67,737)2,567,243 2,404,6852,322,4202,634,980
2,322,420
2,404,685
2,567,243
2,200,000
2,300,000
2,400,000
2,500,000
2,600,000
2021 Actual 2022 Actual 2023 Actual
Interfund Utility Tax
Jan - Dec
2021 - 2023
6
1
Gambling Tax
% Diff
2023 YTD vs
2022 YTD $
Diff
Actual less
Budget2023 Actual2022 Actual2021 Actual2023 Budget
-10.1%(500,443) (201,179)4,4,64,521 4,964,9644,367,189 4,665,700
4,367,189
4,964,964
4,464,521
4,000,000
4,200,000
4,400,000
4,600,000
4,800,000
5,000,000
5,200,000
2021 Actual 2022 Actual 2023 Actual
Gambling Tax
Jan -Dec
2021 -2023
6
2
Gambling Tax cont…
20232022202120202019
4,464,521 4,964,964 4,367,189 2,682,681 4,793,992
4,793,992
2,682,681
4,367,189
4,964,964
4,464,521
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2019 2020 2021 2022 2023
Gambling Tax 5yr Trend
6
3
Admission Tax
% Diff
2023 YTD vs
2022 YTD $
Diff
Actual less
Budget2023 Actual2022 Actual2021 Actual2023 Budget
2.7%22,455 (7,613)842,387 819,932539,690 850,000
539,690
819,932 842,387
0
200,000
400,000
600,000
800,000
1,000,000
2021 Actual 2022 Actual 2023 Actual
Admission Tax
Jan -Dec
2021 -2023
6
4
Business Licenses Tax
% Diff
2023 YTD vs
2022 YTD $
Diff
Actual less
Budget2023 Actual2022 Actual2021 Actual2023 Budget
10.4%304,49013,5563,243,5562,939,0663,204,9153,230,000
3,204,915
2,939,066
3,243,556
2,700,000
2,800,000
2,900,000
3,000,000
3,100,000
3,200,000
3,300,000
2021 Actual 2022 Actual 2023 Actual
Business Licenses
Jan -Dec
2021 -2023
6
5
Building Permits
% Diff
2023 YTD vs
2022 YTD $
Diff
Actual less
Budget2023 Actual2022 Actual2021 Actual2023 Budget
35.1%630,838690,6712,430,3311,799,4931,717,0811,739,660
1,717,081 1,799,493
2,430,331
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2021 Actual 2022 Actual 2023 Actual
Building Permits
Jan -Dec
2021 -2023
6
6
General Fund
Expenditures
6
7
General Fund by Department
ACTUALBUDGET
Actual Year-Over-Year %Allocated Budget
% Change$ ChangeExpendedvs Actual202320222023
2022/2023OVER/(UNDER)DEPARTMENT
2.7%9,79995.2%(18,512)366,378356,579384,889City Council
6.1%131,79896.0%(97,050)2,308,6172,176,8192,405,667Mayor's Office
33.2%1,617,99294.1%(406,142)6,491,7024,873,7106,897,844Administrative Services
3.7%112,20390.8%(321,225)3,177,4173,065,2143,498,642Finance Department
5.4%264,01796.0%(214,215)5,110,6704,846,6535,324,885Rec Dept / Parks Maint
7.2%309,13491.3%(435,724)4,582,4574,273,3225,018,180Community Dev
3.7%58,41293.3%(117,517)1,623,8231,565,4121,741,340Municipal Court
12.7%2,398,88293.4%(1,500,543)21,267,40018,868,51822,767,943Police Department
-0.5%(70,711)97.2%(430,912)15,087,70815,158,41915,518,620Fire Department
2.4%170,86094.7%(403,920)7,171,0667,000,2067,574,986PW Dept / Street Maint
8.0%5,002,38694.5%(3,945,760)67,187,23862,184,85171,132,998Subtotal
-6.1%(630,120)142.4%2,890,449 9,701,48110,331,6016,811,032Non-Departmental
6.0%4,372,26698.6%(1,055,311)76,888,71972,516,45277,944,030Total Expenditures
100.0%% of Year
6
8
General Fund by Category
Allocated Budget %
2023 2022 2023 vs Actuals Expended $ Change % Change
Annual OVER/(UNDER) 2022/2023 2022/2023
Salaries & Wages 27,561,307 33,612,705 26,134,968 (1,426,339) 94.8% (7,477,737) -22.2%
Benefits 10,908,318 12,457,179 9,892,228 (1,016,090) 90.7% (2,564,951) -20.6%
Supplies 769,214 612,325 547,604 (221,610) 71.2% (64,720) -10.6%
Repair & Maintenance Supplies 450,010 383,135 461,096 11,086 102.5% 77,961 20.3%
Resale Supplies 2,500 859 0 (2,500) 0.0% (859) -100.0%
Small Tools 213,203 179,442 270,919 57,716 127.1% 91,477 51.0%
Technology Supplies 343,214 96,274 323,566 (19,648) 94.3% 227,292 236.1%
Fleet Supplies 7,000 6,687 7,738 738 110.5% 1,051 15.7%
Professional Services 23,007,332 6,904,463 22,255,045 (752,287) 96.7% 15,350,582 222.3%
Communications 440,528 515,789 473,134 32,606 0.0% (42,655) -8.3%
Professional Development 571,050 395,311 452,144 (118,906) 79.2% 56,833 14.4%
Advertising 66,300 44,856 46,861 (19,439) 70.7% 2,005 4.5%
Rentals 1,298,060 188,473 1,003,426 (294,634) 77.3% 814,953 432.4%
Technology Services 1,031,264 786,143 610,245 (421,019) 59.2% (175,898) -22.4%
Utilities 2,244,354 2,366,955 2,345,382 101,028 104.5% (21,573) 0.0%
Repairs & Maintenance Services 1,286,418 2,567,904 1,535,753 249,335 119.4% (1,032,152) -40.2%
Other Expenditures 687,899 626,722 472,941 (214,958) 68.8% (153,781) -24.5%
Total Operating Expenditure 70,887,971 61,745,222 66,833,049 (4,054,922)94.3% 5,087,827 8.2%
Capital-Land - 98,699 2,561,209 (4,635,171) N/A 2,462,511 2495.0%
Other Capital Improvements - - - - -
Machinery & Equipment 1,227,831 289,145 1,093,290 (134,541) 89.0% 804,145 278.1%
Principal 0 140,106 776,163 776,163 N/A 636,056 454.0%
Interest Expense 0 12,058 78,855 78,855 N/A 66,798 554.0%
Transfers Out 5,828,229 10,231,223 5,546,153 (282,076) 95.2% (4,685,070) -45.8%
Total Non-Operating Expenditures 7,056,060 10,771,231 10,055,670 2,999,610 142.5% (715,560) -6.6%
Total Expenditures 77,944,031 72,516,452 76,888,719 (1,055,312) 98.6% 4,372,266 6.0%
Change
BUDGET ACTUAL COMPARISON OF RESULTS
6
9
Revenue / Expenditure 5 Year Trend
DiffExpRevYear
1,591,386 76,888,720 78,480,106 2023
6,661,944 59,597,232 66,259,176 2022
7,869,939 54,598,304 62,468,243 2021
3,744,456 52,903,895 56,648,351 2020
5,553,736 56,269,134 61,822,870 2019
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2019 2020 2021 2022 2023
Th
o
u
s
a
n
d
s
Rev/Exp 5 yr. Trend
Rev Exp
7
0
Looking Ahead
Unbudgeted retro pay in August 2024
B&O Tax revenue under target in 2024
No more ARPA funding in 2025
B&O Year-end filers revenue will be in 2025
7
1
7
2
ITEM INFORMATION
STAFF SPONSOR: ADAM SCHIERENBECK ORIGINAL AGENDA DATE: 6/24/24
AGENDA ITEM TITLE Quarterly B&O Tax Report
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 6/24/24 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Admin Svcs DCD Finance Fire P&R Police PW
SPONSOR’S
SUMMARY A quarterly report is being provided to the city council in accordance with TMC 3.27.170(B)
on public safety funding associated with the Business and Occupation Tax.
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. Finance Department
COMMITTEE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
6/24/24
MTG. DATE ATTACHMENTS
6/24/24 Informational Memorandum dated 6/17/24
COUNCIL AGENDA SYNOPSIS
----------------------------------Initials --------------------------------- ITEM NO.
Meeting Date Prepared by Mayor’s review Council review
6/24/24 AJS 4.C
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TO: Committee of the Whole FROM: Tony Cullerton, Interim Finance Director BY: Adam Schierenbeck, Senior Fiscal Coordinator CC: Mayor McLeod
DATE: June 17, 2024
SUBJECT: Quarterly B&O Tax Report ISSUE
The Finance Department is hereby providing a quarterly report to the city council on public safety funding associated with the Business and Occupation Tax. BACKGROUND On November 28, 2022, the City Council passed Ordinance No. 2689, establishing a B&O tax on business activities within the City. The tax was implemented to fund public safety positions with the Police Department, with revenues being allocated to the City’s general fund. At the time, the annual amount of revenue projected for B&O tax was $3 million based on estimates. Ordinance No. 2689 requires the Finance Director to provide a quarterly report to City Council on public safety funding associated with the B&O tax, as codified in TMC 3.27.170(B). DISCUSSION The total B&O tax revenue collected as of June 12, 2024 is $336,096.20. This amount was paid
by 400 businesses in aggregate for the Quarter 1, 2024 reporting period. A total of 553 businesses are assigned to a quarterly filing frequency. Thus, the compliance rate
for quarterly filers is 72 percent. This increased from a 65 percent compliance rate after the Tax Division mailed delinquent notices to businesses that had not filed a return.
Tax Division staff continue to work on compliance efforts to collect any remaining unfiled quarterly returns and to identify additional unlicensed businesses which may owe B&O tax. A total of 67 unlicensed businesses have been contacted regarding their need to obtain a license, and thereby register for the B&O tax, with a compliance rate of 30 percent. The aforementioned information is based on data available as of June 12, 2024. Filing Frequency 553 businesses are assigned to a quarterly B&O tax filing frequency. An additional 1,239 businesses are assigned to file returns annually. Annual filing is assigned to businesses with an anticipated annual B&O tax liability ranging from $0 to a maximum of $1,275.
Much of the revenue associated with Annual 2024 B&O tax returns may be recognized in the 2025 fiscal year as a result of the April 30, 2025 annual filing due date.
FINANCIAL IMPACT 75
Initial B&O tax budget estimates were based on limited information that was available to the City at the time. Based on actual returns filed for Quarter 1, 2024, the annual B&O tax revenue is
expected to be $2.434 million, resulting in a $566,000 difference compared to original estimates. This revised estimate assumes a 100 percent compliance rate and is based on projections using the limited business income information that is available. Of the $2.434 million annual estimated B&O tax revenue, $434,000 is anticipated to be received from annual filers in the 2025 fiscal year, thus bringing the 2024 revenue estimate to $2 million. RECOMMENDATION n/a ATTACHMENTS
n/a
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UPCOMING MEETINGS AND EVENTS
JUNE AND JULY 2024 City Council meetings and Council Committee meetings will be conducted in a hybrid model, with in-person and virtual attendance available.
JUNE 24 MON JUNE 25 TUE JUNE 26 WED JUNE 27 THU JUNE 28 FRI JUN 29 SAT
Finance and Governance Committee Meeting
5:30 PM City Hall – Hazelnut Room Hybrid Meeting
Transportation
Infrastructure Services
Meeting 5:30 PM
6300 Building – 2nd Floor
Duwamish Conference Hybrid Meeting
City Council Committee of the
Whole Meeting 7:00 PM City Hall Council
Chambers Hybrid Meeting
Special Arts Commission 6:00 PM
Hybrid Meeting
Come buy fresh produce grown by refugees and immigrants in our community. EBT accepted.
3:00 PM – 6:00 PM Tukwila Village Plaza
14350 Tukwila Intl Blvd
Planning Commission 6:30 PM
Hybrid Meeting
URGENT NEED! DONATE
AND ENTER TO WIN A BOTE INFLATABLE PADDLE BOARD AND LIFE
VEST! It takes 1,000 donors a day to sustain a blood supply for
patients in our community.
Click here to schedule an appointment.
Or call 1-800-398-7888.
You can also donate umbilical cord blood after the birth of your baby to
save a life.
Click here for information.
PET LICENSE LATE
FEES WAIVED THRU JUNE 30! Your license helps fund
vital, life-saving work.
8:30 AM – 4:00 PM
Mondays – Thursdays
Tukwila City Hall6200 Southcenter Blvd
Or license online here.
Or call 206-296-2712.
JULY 1 MON JULY 2 TUE JULY 3 WED JULY 4 THU JULY 5 FRI JULY 6 SAT
Work Session
5:30 PM City Hall Council Chambers
Hybrid Meeting
City Council
Regular Meeting 7:00 PM
City Hall Council
Chambers Hybrid Meeting
Library Advisory Board
*Cancelled*
Come buy fresh produce grown
by refugees and immigrants in our community. EBT accepted. 3:00 PM – 6:00 PM Tukwila Village Plaza 14350 Tukwila Intl Blvd
COMMUNITY BOOK CLUB Join us for our 1st annual Tukwila Parks & Recreation
Book Club.
6:00 PM – 7:30 PM
Tukwila Community Center
Meeting Room A 112424 42nd Ave S
Click here for information.
City offices and Community
Center closed.
PICKLEBALL EVENT
Join us for a day of pickleball skills camps, games, scrambles and festivities as
we celebrate Independence Day with a day of good ol’ fun!
9:00 AM – 2:00 PM
Click here for information.
CITY HALL & 6300 BUILDINGS ARE OPEN TO THE PUBLIC MONDAYS THRU THURSDAYS 8:30 AM – 4:00 PM
JUL 3 - COMMUNITY BOOK CLUB 6:00 PM – 7:30 PM TUKWILA COMMUNITY CENTER Join us for our 1st annual Tukwila Parks & Recreation Book Club. Click here for more information.
JUL 4 - PICKLEBALL EVENT 9:00 AM – 2:00 PM Free event for all ages. Location to be determined. Click here for more information.
JUL 11 & AUG 8 - PUZZLE PARTY SOCIALS 6:00 PM – 8:00 PM TUKWILA COMMUNITY CENTER Free event for ages 8 and up. See above for more information.
AUG 6 - NATIONAL NIGHT OUT SIGN-UP YOUR NEIGHBORHOOD BBQ!
City leaders and staff, police officers and firefighters will stop by your gathering for food, fun and conversation on August 6. Click here for more information.
NOW THRU AUG 29 - TREE GIVEAWAYS! Tukwila residents can apply for FREE trees. Must apply by Aug 29. Click here for more information.
SPRAY PARK IS OPEN FOR THE SUMMER! 10:00 AM - 8:00 PM DAILY TUKWILA COMMUNITY CENTER – 12424 42ND AVE S
Free aquatic playground for families. Have a picnic while your children have fun at the Spray Park!
JOIN US FOR MANY FUN AND FREE SUMMER EVENTS!
There’s something for everyone. Live music and dance, movies, games and food trucks! Click here for more information.
NEIGHBORHOOD WATCH GROUP HELP Police Community Engagement Coordinator can help to create a neighborhood watch group in your neighborhood and apartments. Click here to email Brooke Lamothe.
FREE CRIME PREVENTION SURVEY FOR BUSINESSES TO ENHANCE SECURITY Police Community Engagement Coordinator will visit your business to conduct a security assessment and recommend making your business more secure. Allow up to 2
weeks for an appointment date confirmation. Click here to make an appointment.
FOOD BANK OPENS: TUESDAYS, THURSDAYS AND SATURDAYS 10:00 AM – 2:30 PM 3118 S 140TH ST, TUKWILA
VOLUNTEERS – In need of volunteers for food packaging or food distributions. To volunteer, click here to sign up.
DONORS – Please donate at tukwilapantry.org/please-donate/. Donations can be dropped off on Tuesday-Saturday from 8 AM – 11 AM or by appointment. Click here for a current list of items in need.
FUN ACTIVITIES AND OTHER EVENTS AT TUKWILA LIBRARY Click here for information.
FREE EMPLOYMENT SERVICES AND SKILLS TRAINING PROGRAMS
This is a monthly event hosted by Puget Sound Training Center. Reasonable accommodation for people with disabilities is available by request. Click here for
information.
SCHEDULE YOUR FREE BULK ITEM PICKUP!
Tukwila residents can schedule a pickup of up to 4 free non-appliance bulky items, plus extra trash and smaller items. Click here for information. To schedule
pickup, call 206-944-3900 or email Tukwila@recology.com.
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sdfsdfsdfsdfsdfsTentative Agenda Schedule
MEETING 1 –
REGULAR
MEETING 2 –
C.O.W.
MEETING 3 –
REGULAR
MEETING 4 –
C.O.W.
JUNE 3
See below links for the agenda packets to view the agenda items:
June 3, 2024
Work Session
June 3, 2024
Regular Meeting
JUNE 10
See below links for the agenda packets to view the agenda items:
June 10, 2024
Committee of the Whole Meeting
JUNE 17
See below links for the agenda packets to view the agenda items:
June 17, 2024
Work Session
*cancelled*
June 17, 2024
Regular Meeting
JUNE 24
See below links for the
agenda packets to view the agenda items:
June 24, 2024
Committee of the Whole Meeting
MEETING 1 – REGULAR MEETING 2 – C.O.W. MEETING 3 – REGULAR MEETING 4 – C.O.W.
JULY 1
WORK SESSION Tukwila South Development Agreement
update.
REGULAR MEETING
PRESENTATION
Promotional Swearing in of Police Commander Phil Glover. CONSENT AGENDA
- Application for Lodging Tax Funds from
Explore Seattle, Southside for World Cup Station Domination, in the amount of $119,275.00
NEW BUSINESS
- Briefing on funding options for City’s response to asylum seekers.
JULY 8
JULY 15
WORK SESSION 2023-2024 Tukwila Comprehensive Plan
Update: Review of Individual Elements (Part 1 of 2). REGULAR MEETING CONSENT AGENDA
- Authorize the Mayor to sign contract amendment with Foster Garvey. UNFINISHED BUSINESS - Authorize the Mayor to sign a grant
agreement with King County for the
2024 Veterans, Seniors and Human Services Levy, in the amount of $229,500.00. - Discussion on 2025-2026 Biennial
Budget: 1) Capital Improvement
Program 2) All Funds and Projects.
JULY 22
PRESENTATION Update from Recology.
PUBLIC HEARINGS
Ordinance updating ADU regulations.
SPECIAL ISSUES
- Ordinance updating ADU
regulations. - Ordinance amending tiny home village regulations. - Quarterly finance report.
Special Meeting to follow
Committee of the Whole Meeting.
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