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HomeMy WebLinkAboutReg 2024-10-07 Item 5A - Budget - 2025-2026 Biennial Budget: Mayor's Budget Message / Presentation of Funds / Q & A / Budget CalendarCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 10/07/24 Tony ITEM INFORMATION ITEM NO. 5.A. STAFF SPONSOR: PETE ORIGINAL AGENDA DATE: 10/07/24 AGENDA ITEM TITLE 2025 - 2026 Budget Development Process Continuation CATEGORY ® Discussion Mtg Date 10/7/24 ❑ 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 Leadership will be continuing the 2025-26 Budget Development discussion. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. ❑ LTAC DATE: ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: N/A RECOMMENDATIONS: SPONSOR/ADMIN. Finance Report COMMITTEE Discussion only COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 9/16/24 Discussion & Introduction to Budget 9/23/24 Continued budget discussions MTG. DATE ATTACHMENTS 10/07/24 PowerPoint (Mayor's Budget, Budget Sheets Fund 105, 502, 503, 2xx, 411, 501 ) Proposed 2025 - 2026 Budget Documents (link) 149 150 City Council Regular Meeting October 7, 2024 CITY OF TUKWILA 2025-26 DEVELOPMENT PROCESS 1 The City of opportunity, the community of choice. Tonight's Agenda Work Session • Continued presentation of the 2025- 26 Proposed Budget • Revenues • Expenses • Financial Policies & Reserves • Factors Informing Budget Balancing Regular Meeting • Continued Presentation of the 2025- 26 Proposed Budget • Mayor's Budget Message • Fund 105 Contingency • Fund 502 Healthcare • Fund 503 Law Enforcement Officers & Fire Fighters (LEOFF) 1 Retirement • Fund 2XX Debt Service • Fund 411 Foster Golf Links • Fund 501 Equipment Rental & Replacement • Next Steps / Budget Calendar • Public Works Shop Phase 2 Update City of Tukwila 2025-26 Budget Development 2 Mayor's Budget Message 2025-26 Proposed Budget City of Tukwila 2025-26 Budget Development 3 01 Mayor's Priorities 2025-26 Budget Key Focus Areas • 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 City of Tukwila 2025-26 Budget Development 4 iiiriUuijj =MINN wa...mor milM1,111111111 116#114 '4"PlaW :04 • .W411 o I • • • IL City of Tukwila 2025-26 Budget Development 5 "The Headlines"- Charting Our Path 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. • Returning $6 million to Tukwila Taxpayers • Rescoping Public Works Shops Phase 2 • Investments in Public Safety City of Tukwila 2025-26 Budget Development 6 Charting Our Path- 2025-26 Mayor's Proposed Budget • Tax Relief- return $6 million in taxes • Communications and Engagement • People's Project • Public Safety • 2 new Police Officers supporting Westfield Southcenter vicinity • Park Safety • 1 new Park Ranger providing park security and outreach • Infrastructure Maintenance & Stewardship • Facilities Maintenance & Custodial Staffing & Repairs • Vegetation Management & Stewardship • Technology Enhancements • System Upgrades and Security Protections • Capital Investments • Water System Planning • Fish Passage and Levee Protections • Traffic Calming • World Cup Ready- preparing to help host 750,000 Unfunded Decision Points • Mental Health Co -Responders • Public Works- Shops Phase 2- Rescopi ng Significant Trade -Offs • Use of One Time Funds • Ongoing Lean Staffing Model • No New Revenue City of Tukwila 2025-26 Budget Development 7 Fund Presentations (continued) 2025-26 Preliminary Proposed Biennial Budget City of Tukwila 2025-26 Budget Development 8 Financial Structure of the City Budget *Presented tonight *Presented previously GOVERNMENTAL FUND TYPES PROPRIETARY FUND TYPES General Fund: Supports general operations of the City. Taxes are the principal source. Accounts for all City resources except those required to be accounted for in a different fund. Special Revenue Funds: Revenues which are legally or administratively restricted for special purposes. Fund 101, 105, 40-9 Debt Service Funds: Account for resources necessary to pay principal and interest on general long-term debt. Fund 2XX Capital Projects Funds: Accounts for financial resources to be used for the acquisition or construction of capital items, facilities, or infrastructure. Not to be used for maintenance or repairs. Fund 103, 104, 304, 302, 303, 304, 305, 306 Enterprise Funds: Accounts for operations that are financed and operated in a manner similar to business enterprises. Fund 401, 402, 411, 412 Internal Service Funds: Used to account for operations or services to other departments on a cost reimbursement basis. Fund 501, 502, 503 FIDUCIARY FUNDS Account for assets held by the City in a trustee capacity and cannot be used to support the City's own programs. Fund 611 Source: City of Tukwila, WA 2023-2024 Biennial Budget, P. 25. City of Tukwila 2025-26 Budget Development 9 O O GOV'T / SPECIAL REVENUE FUND Fund 105 — Contingency Fund Purpose • Sufficient fund balances and reserve levels are important for the long-term financial stability of the City. • This fund provides for a reserve fund balance equal to or greater than 10% of the previous year's General Fund ongoing revenue, exclusive of significant non -operating, non -recurring revenues such as real estate sales, or transfers in from other funds. • Amounts held in this fund can be used for more restrictive, emergency -type purposes. All expenditures from this fund require Council approval. • This fund is reported as a sub -fund of the general fund in the City's Annual Comprehensive Financial Report (ACFR). Recommendation • Continue to manage the fund in accordance with Tukwila Municipal Code (TMC) City of Tukwila 2025-26 Budget Development 10 GOV'T / DEBT SERVICE FUNDS Fund 2XX —Various Debt Service • Purpose • Records the payment of principal and interest for the City's outstanding limited tax general obligation bonds, unlimited tax general obligation bonds and bonds associated with the City's Local Improvement District #33. • What's Happening in 2025-26 • No planned new debt issuances in 2025-26 • Recommendation • Manage in accordance with Debt Policy — Resolution 1840 City of Tukwila 2025-26 Budget Development 11 PROPRIETARY / ENTERPRISE FUND Fund 411 — Foster Golf Links Purpose • Management of all day-to-day and capital operations of the Foster Golf Links including customer service, course maintenance, and fleet management. What's Happening in 2025-26 • Continued operations with enhancements to marketing, programmatic offerings, and special events. Recommendation • Ensure fiscal sustainability of fund • Maintain General Fund subsidy while continuing to optimize revenue and control expenditures. City of Tukwila 2025-26 Budget Development 12 PROPRIETARY / INTERNAL SERVICE FUND Fund 501 — Equipment Rental and Replacement Purpose • Internal Service Fund designed to provide and maintain a fleet of vehicles and equipment for City use; manage a replacement program that ensures timely replacement of vehicles and equipment What's Happening in 2025-26 • Return to replacement model after bridge budget spent down fund balance • Implement efficiency strategies as outlined in lean study Recommendation • Ensure fiscal sustainability of fund • Evaluate proper size and scope of leasing model moving forward City of Tukwila 2025-26 Budget Development 13 PROPRIETARY / INTERNAL SERVICE FUND Fund 502 — Employee Healthcare Plan • Purpose • Accounts for self -insured active employee health insurance plan. Claims, administration and wellness program are expensed in this fund. • What's Happening in 2025-26 • Monitor fund balance; maintain reserves • Recommendation • Balance employee health insurance costs, manage claims, with maintaining reserves City of Tukwila 2025-26 Budget Development 14 PROPRIETARY / INTERNAL SERVICE FUND Fund 503 — Law Enforcement & Fire Fighters (LEOFF 1) Retiree Self -Insured Healthcare Plan Fund • Purpose • Receive contributions and manage claims on behalf of Law Enforcement Officers & Firefighters (LEOFF) retirees • What's Happening in 2025-26 • Annual meeting with participants (7) to present account activity • Goal: smooth and predictable premium trend • Recommendation • Required participation by statute City of Tukwila 2025-26 Budget Development 15 Budget Calendar & Next Steps 2025-26 Preliminary Proposed Biennial Budget City of Tukwila 2025-26 Budget Development 16 Budget Calendar (Sept -Oct) 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);; Fund 302 Urban Renewal*; Fund 305 Public Safety Fund*; (Capital Budget Preview: Fund 301 Parks, Trails & Open Space; Fund 103 Residential Streets; Fund 104- Bridges & Arterial Streets; Fund 303 General Improvements; October 1 Estimates filed by department heads with complete financial program (RCW 35A.33) October 7 Mayor provides council with estimates of revenues from all sources for consideration of setting property tax levy (RCW 35A.33) City of Tukwila 2025-26 Budget Development 17 Budget Calendar (Oct) October 7 Work Session Overview of General Fund Revenues and Expenditures (General Fund 000) Revenues & Expenses; Rev & Exp. History & Financial Forecast, Revenue and Expenditure Drivers; Financial and Reserve Policies Regular Meeting Mayor's Budget Message & Priorities Presentation of Other Funds- Part 2: (Proprietary/Internal Service Funds: Fund 501- Equipment Rental; Fund 502- Employee Healthcare Insurance Fund; Fund 503- LEOFF 1 Retiree; Fund 611- Firemen's Pension) (Debt Service: Fund 2XX LTGO Debt Service Fund; Fund 213- UTGO Bonds; Fund 206- LID Guaranty; Fund 233- 2013 Local Improvement District); (Special Revenues: Fund 105- Contingency Fund); (Proprietary/Enterprise Funds: Fund 411 Foster Golf Course). Public Works Shop Phase 2- Update and Rescoping City of Tukwila 2025-26 Budget Development 18 Budget Calendar (Oct) October 14 Estimates filed by department heads with complete financial program (RCW 35A.33) Committee of the Whole Department Presentations: (Department Overview: 1) Functional Org. Chart; 2) Mission; 3) Description of Major Services/Programs); (Performance: 1) 2023-24 Accomplishments; 2) 2025-26 Objective;) (Budget Overview: Revenue/Expenses & Staffing) Preliminary Council Questions/Discussion/Deliberations October 21 Work Session Capital Budget Overview (Fund 301 Parks, Trails & Open Space; Fund 103 Residential Streets; Fund 104- Bridges &Arterial Streets; Fund 306: City Facilities; Fund 303 General Improvements; Fund 304 Fire Improvements; (Proprietary/Enterprise Funds): Fund 401- Water; Fund 402 Sewer; Fund 412 Surface Water) City of Tukwila 2025-26 Budget Development 19 Budget Calendar (Oct) Mid -October to mid -November (approx.) Public hearing on revenue sources including possible changes in property tax (RCW 35A.33) October 21 Regular Meeting Property Taxes 101- Levies, Levy Rates & Banked Capacity Budget Balancing/Reconciliation; Policy Discussion & Decisions City of Tukwila 2025-26 Budget Development 20 Budget Calendar (Oct -Nov) 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 November2 Mayor prepares preliminary budget, budget messages, files with clerk pnr-1 council (RCW35A.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) City of Tukwila 2025-26 Budget Development 21 Budget Calendar (Nov) Work Session Council Questions/Discussion/Deliberations Regular Meeting November 4 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. Tentative Work Session Budget Adoption November 18 Regular Meeting Unfinished Business: 2025-26 Biennial Budget: Ordinance adopting 2025-26 Budget & Financial Planning Model & CIP; Ordinance amending 2023-24 Budget City of Tukwila 2025-26 Budget Development 22 Budget Calendar (Nov -Dec) November21 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) City of Tukwila 2025-26 Budget Development 23 Questions and Discussion 2025-26 Preliminary Proposed Biennial Budget City of Tukwila 2025-26 Budget Development 24