HomeMy WebLinkAboutReg 2024-11-04 Item 6B.1 / 7B.1 - Public Hearing - 2025-2026 Biennial Budget / 2025-2030 Financial Planning Model and Capital Improvement ProgramCOUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's review
Council review
11/4/24
Tony
ITEM INFORMATION
ITEM No.
6.B.(1)
7.B. (1)
STAFF SPONSOR: TONY CULLERTON
ORIGINAL AGENDA DATE: 11/4/24
AGENDA ITEM TITLE Biennial Budget: Ordinance adopting the 2025-2026 Biennial Budget and
2025-2030 Capital Improvement Program
CATEGORY ® Discussion
Mtg Date 11/4/24
❑ Motion
Mtg Date
❑ Resolution
Mtg Date
® Ordinance
Mtg Date 11/25/24
❑ Bid Award
Mtg Date
® Public Hearing
Altg Date 11/4
❑ Other
/Virg Date
SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ❑ PdaR ❑ Police ❑ PW
SPONSOR'S
SUMMARY
Staff will be presenting an ordinance adopting the preliminary 2025-2026 Biennial Budget
and 2025-2030 Capital Improvement Program at the 11/4 Public Hearing. A final Public
Hearing will be held on November 18th .The City Council is being asked to approve the
budget legislation at the November 25th Special Meeting.
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
COMMITTEE N/A
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
AMOUNT BUDGETED
APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
11/4/24
MTG. DATE
ATTACHMENTS
11/4/24
Informational Memorandum
Draft ordinance
Preliminary 2025-2026 Budget Presentation
163
164
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF TUKWILA, WASHINGTON;
ADOPTING THE BIENNIAL BUDGET OF THE
CITY OF TUKWILA FOR THW 2025-2026
BIENNIUM; ADOPTING THEW 2025-2030
FINANCIAL PLANNING MODEL AND
ACCOMPANYING CAPITAL IMP OVEMENT
PROGRAM; PROVIDING FOR RABILITY;
AND ESTABLISHING AN EFF IVE DATE.
WHEREAS, the preliminary budget of th City of T wila for the 2025-2026 biennium
was submitted to the City Council in a timely manner for their review; and
WHEREAS, a Public Hearing on the proposed budget was advertised and held on
November 4, 2024 and November 18, 2024; and
WHEREAS, as budget oversight is one of its key legislative responsibilities, the City
Council conducted a thorough process to deliberate the proposed 2025-2026 Biennial
Budget;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. The City Council hereby adopts the document entitled "City of Tukwila 2025-
2026 Biennial Budget," incorporated by this reference as if fully set forth herein, in
accordance with RCW 35A.34.120.
Section 2. The City Council hereby adopts the document entitled "2025-2030 Financial
Planning Model and accompanying Capital Improvement Program" incorporated by this
reference as if fully set forth herein.
Section 3. The totals of the estimated revenues and appropriations for each separate
fund and the aggregate totals are as follows:
2024 Legislation: 2025-2026 Biennial Budget
Version: 10/31/24
Staff: T. Cullerton
Page 1 of 3
165
000 General
101 Hotel/Motel
103 City Street
104 Arterial Street
105 Contingency
109 Drug Seizure Fund
2XX LTGO Debt Service Funds
213 UTGO Bonds
206 LID Guaranty
233 2013 LID
301 Land Acquisition, Recreation & Park Dev.
303 General Government Improvements
304 Fire Improvements
305 Public Safety Plan
306 City Facilities
401 Water
402 Sewer
411 Foster Golf Course
412 Surface Water
501 Equipment Rental
502 Insurance Fund
503 Insurance - LEO
611 Firemen's Pensio
Total
Total
Expenditures
$169,856,549
5,356,370
7,857,573
21,906,836
7,775,600
500,762
9,481,650
10,089,708
815,243
1,451,499
13 7,427
64,512
00,000
3, 73
3,116,
25,770,893
35,939,213
7,599,196
40,587,553
14,115,887
20,405,276
1,102,194
2,032,466
Total
Revenues
$169,856,549
5,356,370
7,857,573
21, 906, 836
7,775,600
500,762
9,481,650
10,089,708
815,243
1,451,499
13,137,427
1,164, 512
1,200,000
3,286,573
3,116,686
25, 770, 893
35, 939, 213
7,599,196
40, 587, 553
14,115, 887
20,405,276
1,102,194
2,032,466
$404, 549, 666 $404, 549, 666
Section 4. A co -te co• of the final budget for 2025-2026, as adopted, together
with a copy of this adop o- ance, shall be kept on file electronically by the City Clerk
and accessible from the 's website in accordance with Washington State records
retention schedule requirements and City policy, and shall be made available to the public
upon request. A complete copy of the final budget for 2025-2026, as adopted, together
with a copy of this adopting ordinance, shall be transmitted by the City Clerk to the
Division of Municipal Corporations of the Office of the State Auditor and to the Association
of Washington Cities.
Section 5. A complete copy of the 2025-2030 Financial Planning Model and
accompanying Capital Improvement Program shall be kept on file electronically by the
City Clerk and shall be accessible from the City's website in accordance with Washington
State records retention schedule requirements and City policy and shall be made
available to the public upon request.
2024 Legislation: 2025-2026 Biennial Budget
Version: 10/31/24
Staff: T. Cullerton
Page 2 of 3
166
Section 6. The assumptions, revenues and expenditures within the 2025-2030
Financial Planning Model and accompanying Capital Improvement Program will be
reviewed and updated biennially, or as necessary, by the City Council.
Section 7. The detail of Capital Improvement Program projects shall be reflected in
the published 2025-2030 Financial Planning Model and accompanying Capital
Improvement Program.
Section 8. Corrections by City Clerk or Code Reviser Authorized. Upon
approval of the City Attorney, the City Clerk and the code reviser are authorized to make
necessary corrections to this ordinance, including the correction of clerical errors;
references to other local, state or federal laws, codes, rules, or regulations; or ordinance
numbering and section/subsection numbering.
Section 9. Severability. If any section, subsection, • graph, sentence, clause or
phrase of this ordinance or its application to any perso tuation should be held to be
invalid or unconstitutional for any reason by a c of . petent jurisdiction, such
invalidity or unconstitutionality shall not affect validity onstitutionality of the
remaining portions of this ordinance or its appli on tny othe •erson or situation.
Section 10. Effective Date. This ordinance ummary thereof shall be published
in the official newspaper of the City, a ' . II take ect and be in full force five days
after passage and publication as provide
PASSED BY THE CITY CO OF E CITY OF TUKWILA, WASHINGTON, at
a Special Meeting thereof thi day , , 2024.
ATTEST/AUTHENTICATED:
Andy Youn, CMC, City CI% " Thomas McLeod, Mayor
APPROVED AS TO FORM BY:
Office of the City Attorney
2024 Legislation: 2025-2026 Biennial Budget
Version: 10/31/24
Staff: T. Cullerton
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Page 3 of 3
167
168
CITY OF TUKWILA 2025-26
1
1 1.1.1b BUDGE
DEVELOPMENT PROCESS
I
November 4, 2024 - City Council
Meeting- Budget Public Hearing
The City of opportunity, the community of choice.
Council Budget Process: Meetings/Topics to
Date
• October 7 - Mayor Budget Presentation, discussion of revenues
and expenses, balancing & non -General Fund operating budgets.
• October 14-General Fund department presentations, Council
budget Q&A.
• October 21 -General Fund department presentations concluded,
Council budget Q&A.
• October 28 -Assumptions, trade-offs, six -year forecast, property
tax presentation, Public Hearing on property tax, Council budget
Q&A.
• November4-Six-yearClP, staffing, 1st Public Hearing on budget,
2025 Levy Ordinances, Council questions/discussion/deliberation
City of Tukwila 2025-26 Budget Development 2
Council Budget Process: Today's Schedule
• November 4:
• Work Session:
• Six -Year CIP
• Council Deliberations & Discussion on Trade-offs
• Regular Meeting:
• Public Hearing: 2025/2026 Biennial Budget, Capital Improvement Program, and
2023/2024 Budget Amendment
• Consideration of 2025/2026 Budget & CIP Ordinances, 2023/2024 Budget
Amendment Ordinance
• 2025 Levy Ordinances
City of Tukwila 2025-26 Budget Development 3
Council Budget Process: Upcoming Schedule
• November 18:
• Work Session:
• Council questions/discussion/deliberations
• Puget Sound Fire Q&A with Chief Carson
• Regular Meeting:
• 2nd Public Hearing on 2025/2026 Budget
• Final Fee Recommendations (part 2)
• Budget Ordinance
• Levy Ordinance (if forwarded from November 4th meeting)
• Note: State law requires the City's property tax levy for 2025
collections be filed with the County Assessor by November 30th.
City of Tukwila 2025-26 Budget Development 4
Council Budget Process: Upcoming Schedule
• November25:
• Special Meeting:
• Resolution adopting the consolidated fee schedule
• Ordinance adopting the 2025/2026 Biennial Budget
• Resolution adopting the Financial Planning Model and six -year CIP
• Ordinance amending the 2023/2024 Biennial Budget
• Note: State law requires the City to adopt a budget for the next
year's operations by December 31 St.
City of Tukwila 2025-26 Budget Development 5
v
25/26 Budget - GF Revenue by Type
General Fund Revenues
2024
Adopted
2025
Proposed
2026
Proposed
Taxes
56, 404, 000
51, 976, 379
53, 854, 765
Licenses & Permits
5,088,743
5,430,700
5,541,455
Intergovernmental
7,432,484
5,313,474
5,232,020
Charges for Services
2,841,121
2,612,121
2,461,020
Miscellaneous
2,165, 495
1,448,363
1,428,954
IndirectAllocation
2,963,517
3,111, 694
3,267,278
Transfers In
1,787,849
1,494,619
1,419,637
Land Sale
4,700,000
5,000,000
Total GF Revenue
78,683,209
76,087,350
78,205,129
Section 2, page 12
City of Tukwila 2025-26 Budget Development 6
25/26 Biennium Budget
Transfers In
1.9%
Indirect Allocation
4.1%
Miscellaneous
1.9%
Charges for
Services
3.3%
Intergovernmental
6.8%
Licenses & Permits
7.1%
Section 2, page 12
Land
Sales
6.3%
GF Revenue by Type
City of Tukwila 2025-26 Budget Development 7
25/26 Budget — GF Tax Revenue by Type
General Fund Taxes
2024
Adopted
2025
Proposed
2026
Proposed
Property Tax
18,124, 000
11, 999, 227
12, 215, 213
Sales & Use Tax
22,655,000
24,446,986
25,538,915
Utility Tax (Private)
4,300,000
4,493,702
4,702,390
Utility Tax (Internal)
2,784,300
3,167,729
3,364,735
Gambling & excise tax
4,665,700
4,609,500
4,724,500
Admissions tax
875,000
859,235
885,012
B&O Tax
3,000,000
2,400,000
2,424,000
Total Tax
56,404,000
51,976,379
53,854,765
Section 2, page 13
City of Tukwila 2025-26 Budget Development 8
25/26 Biennium Budget — GF Tax Revenue by Type
Gambling & Excise Tax, 8.9°/°
Utility Tax (Internal)
6.1%
Utility Tax
(Private)
8.6%
Section 2, page 14
Property Tax
23.1%
Sales 8 Use Tax
47.0%
B8O Tax
4.6%
Admissions Tax
1.7%
City of Tukwila 2025-26 Budget Development 9
25/26 Budget — GF Expense by Department
DEPARTMENT
2024 Adopted 2025 Proposed 2026 Proposed
City Council
Mayor's Office
$ 393,067
2,828,050
$ 400,093
9,577,599
$ 431,254
9,830,590
Administrative Services
5,621,624 -
Finance Department
4,625,307
4,343,230
4,429,561
Parks & Recreation Department
5,808,439
6,769,151
7,050,622
Community Development
5,063,237
5,732,921
5,978,627
Municipal Court
1,859,399
2,264,525
2,378,206
Police Department
23,790,337
28,354,527
29,600,130
Fire Department
15,605,441
1,398,192
1,410,125
Public Works Dept
8,002,142
9,738,964
10,205,851
Non -Departmental
1,362,046
2,362,046
Total Department Expenditures
$ 73,597,044
$ 69,941,248
$ 73,677,013
Transfers
$ 5,865,345
$ 4,663,479
$ 4,486,797
Total Expenditures
$ 79,462,388
$ 74,604,727
$ 78,163,810
Section 2,page 20
City of Tukwila 2025-26 Budget Development
10
GF Expense by Department — 25/26 Biennium
Public Works
13%
Transfers Out
6°/0
Community
Development
8%
Non Departmental
2%
Section 2, page 21
Police
38%
Mayor's Office
13%
Fire
2%
Finance
6%
Parks & Recreation
9%
Court
3%
City Council
0.5%
City of Tukwila 2025-26 Budget Development 11
2025/2026 Biennial Budget By Fund Type
Fund
2025
Beginning
Fund Balance
25/26
Resources
25/26
Expenditures
2026
Ending
Fund Balance
Total General & Contingency
$ 22,869,030
$ 154,763,118
$ 152,768,537
$ 24,863,612
Total Special Revenue Funds
3,715,432
2,141,700
2,423,822
3,433,311
Total Debt Service Funds
1,792,449
20,045,650
20,409,850
1,428,249
Total Capital Projects Funds
13,071,740
38,597,866
40,801,129
10,868,478
Total Enterprise Funds
27,375,924
82,520,931
96,054,457
13,842,399
Total Internal Service Funds
5,239,005
30,384,352
25,766,819
9,856,538
Total Fiduciary Funds
1,722,466
310,000
164,000
1,868,466
TOTAL BUDGET
$75,786,047
$328,763,617
$338,388,614
$66,161,053
Section 1, pages 4 & 5
City of Tukwila 2025-26 Budget Development 12
2025 - 2026 Biennium Staffing Summary
DEPARTMENT / FUND
City Council
Current
Proposed
Proposed
Change
2024-2025
Change
2025-2026
2024
2025
2026
8
8
8
0
0
Mayor's Office
29.29
29.29
29.29
0
0
Lodging Tax Fund
0.25
0.25
0.25
0
0
Finance Department
15
15
15
0
0
Parks & Recreation
24.5
25.75
25.75
1.25
0
Community Development
28.75
28.75
28.75
0
0
Municipal Court
11.9
11.9
11.9
0
0
Police Department
98
100
100
2
0
Fire
0
0
0
0
0
Public Works
28
29.75
29.75
1.75
0
Water Fund
7.98
8.56
8.56
0.58
0
Sewer Fund
8.49
5.87
5.87
-2.62
0
Surface Water Fund
15.49
18.28
18.28
2.79
0
Fleet Fund
5
5
5
0
0
Arterial Streets Fund
4.6
6.1
5.5
1.5
-0.6
Golf Course Fund
10.75
10.5
10.5
-0.25
0
TOTAL
296
303
302.4
7
-0.6
New table
City of Tukwila 2025-26 Budget Development 13
Wrap Up/Q&A
ICity of Tukwila 2025-26 Budget Development 14