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HomeMy WebLinkAboutReg 2024-09-16 Item 6 - Handout Distributed at the Meeting - PowerPointSeptember 16th Regular City Council Meeting Tonight’s Agenda •Mayor’s Message •About Developing the 2025-26 Budget •The Headlines •Schedule and Next Steps •Questions and Discussion City of Tukwila 2025-26 Budget Development 2 Regular Council Meeting September 16, 2024 City of Tukwila 2025-26 Budget Development 3 •Community safety and security (Public Safety) •Celebrate Tukwila’s diversity, community connections and tourism potential •Greater organizational accountability and efficiency •Establish greater fiscal constraints and spending controls •Leverage opportunities to deliver “next level” customer service •Re-examine our commitment to capital projects with an aging city infrastructure •Continue to invest in city staff with necessary tools and support •Create more housing opportunities, both affordable and market rate Mayor’s Priorities 2025-26 Budget Key Focus Areas City of Tukwila 2025-26 Budget Development 4 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. 2.Invest in the Tukwila Community’s Highest Priorities. Align services with community 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. Informing the 2025-26 Budget-Financial Sustainability Plan How & Why We’re Developing the Budget Differently This Year…. •Post pandemic reconciliations •Collective Bargaining Agreements •Salaries and Wages - remaining competitive •ARPA •B&O Tax •Minimum Wage •Puget Sound Regional Fire Authority transition •Equity lens - ensuring all voices heard •Multi-faceted community outreach City of Tukwila 2025-26 Budget Development 5 •2023-24 Bridge Budget - “3-legged stool” 1)Use of One-Time Funds 2)New revenues - B&O Tax; Contingency Fund - one time use 3)Attrition and vacancies - held open positions (frozen) •Staff Turnover & Transitions •Inflationary forces “The Headlines” Revenues •Sales Tax Mitigation Payments conclude •ARPA funding concludes •B&O Tax set at minimum level •Reduced grant levels Expenses •Labor & Personnel Costs •Inflation •Fleet reform •Increased insurance liability City of Tukwila 2025-26 Budget Development 6 Returning tax capacity to Tukwila taxpayers, while retaining necessary resources to mitigate the City’s structural imbalance and investing in key service level enhancements benefiting the community. Major Issues Driving Fiscal Policy Decisions •Public Safety Investments•Southcenter Mall Officers•Mental Health Co-Responders•Neighborhood Safety •Repair & Replacement of Critical City Infrastructure•Public Works Shop•Other City Facilities and Infrastructure •Organizational Efficiencies & Financial Sustainability•Increased fiscal responsibility & accountability City of Tukwila 2025-26 Budget Development 7 Budget Calendar & Next Steps City of Tukwila 2025-26 Budget Development 8 Budget Calendar (Sept-Oct) City of Tukwila 2025-26 Budget Development 9 September 23 Committee of the Whole & Special Meeting- Overview of Public Engagement & Outreach Results: Community liaisons presentation; community survey results; Financial Sustainability Committee recommendations; Community events & advisory committee meetings Presentation of Other Funds Part 1: (Special Revenues: Fund 109- Drug Seizure Fund; Fund 101- Lodging Tax); (Debt Service: Fund 2XX LTGO Debt Service Fund; Fund 213- UTGO Bonds; Fund 206- LID Guaranty; Fund 233- 2013 Local Improvement District); (Internal Service: Fund 502- Employee Healthcare Insurance Fund; Fund 503- LEOFF 1 Retiree; Fund 611- Firemen’s Pension); Fund 302 Urban Renewal*; Fund 305 Public Safety Fund*; October 1 Estimates filed by department heads with complete financial program (RCW 35A.33) Tentative/Optional -Special Meeting- Presentation of Other Funds Part 2: (Internal Service: Fund 501- Equipment Rental) (Proprietary Funds: Fund 401- Water; Fund 402 Sewer; Fund 412 Surface Water; Fund 411 Foster Golf Course) Budget Calendar (Oct) City of Tukwila 2025-26 Budget Development 10 October 7 Mayor provides council with estimates of revenues from all sources for consideration of setting property tax levy (RCW 35A.33) Work Session Overview of General and Contingency Funds (Fund 000- General Fund)- revenue and expense history; 6 year financial forecast; revenue and expenditure drivers (Fund 105- Contingency Fund)- policy levels and triggers Department Snapshots (Part 1)- overview of revenue and expenses, and work plan highlights Regular Meeting Department Snapshots (Part 2)- overview of revenue and expenses and work plan highlights Preliminary Council Questions/Discussion/Deliberations Budget Calendar (Oct) City of Tukwila 2025-26 Budget Development 11 October 14 Estimates filed by department heads with complete financial program (RCW 35A.33) Committee of the Whole Capital Budget Overview (Fund 301 Parks, Trails & Open Space; Fund 103 Residential Streets; Fund 104- Bridges & Arterial Streets; Fund 401- Water; Fund 402 Sewer; Fund 412 Surface Water; Fund 303 General Improvements; Fund 304 Fire Improvements) October 21 Work Session Council Deliberations and Policy Discussions Regular Meeting Mid-October to mid-November (approx.) Public hearing on revenue sources including possible changes in property tax (RCW 35A.33) Budget Calendar (Oct-Nov) City of Tukwila 2025-26 Budget Development 12 October 28 Committee of the Whole Public Hearing- Tax Levy Legislation: ordinance increasing regular levy; ordinance levying general taxes. Special Issues- Tax Levy Legislation: ordinance increasing regular levy; ordinance levying general taxes; Resolution adopting PW Consolidated Fee Schedule; Ordinance adopting Park and Fire Impact Fees November 2 Mayor prepares preliminary budget, budget messages, files with clerk and council (RCW 35A.33) Nov. 1 -18 (approx.)Publication notice of preliminary budget and final hearing (RCW 35A.33) Nov. 1 -25 (approx.)Public hearing(s) on preliminary budget (RCW 35A.33) Budget Calendar (Nov) City of Tukwila 2025-26 Budget Development 13 November 4 Work Session Regular Meeting Public Hearing: 2025-26 Biennial Budget: Ordinance adopting 2025- 26 Budget; Ordinance amending 2023-24 Budget Unfinished Business: 2025-26 Biennial Budget: Ordinance adopting 2025-26 Budget; Ordinance amending 2023-24 Budget; Tax Levy Legislation- ordinance increasing regular levy; ordinance levying general taxes. November 18 Work Session Regular Meeting Unfinished Business: 2025-26 Biennial Budget: Ordinance adopting 2025-26 Budget & Financial Planning Model & CIP; Ordinance amending 2023-24 Budget Budget Calendar (Nov-Dec) City of Tukwila 2025-26 Budget Development 14 November 21 Copies of the Budget available to the public (RCW 35A.33) November 25 Committee of the Whole November 30 Property tax levies set by ordinance and filed with county (RCW 35A.33) December 2 Final budget hearing (RCW 35A.33) Regular Meeting December 9 Committee of the Whole & Special Meeting December 16 Work Session Regular Meeting December 31 Budget adoption deadline (RCW 35A.33) Questions & Discussion City of Tukwila 2025-26 Budget Development 15