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Home My WebLink AboutReg 2024-11-04 Item 6B.2 / 7B.2 - Public Hearing - Ordinance Amending 2023-2024 Biennial BudgetCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/4/24 Tony ITEM INFORMATION ITEM NO. 6.B.(2) 7.B.(2) STAFF SPONSOR: TONY CULLERTON ORIGINAL AGENDA DATE: 11/4/24 AGENDA ITEM TITLE Biennial Budget: Ordinance amending the 2023-2024 year-end budget 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 Mtg Date 11/4 ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY Staff will be presenting an ordinance amending the 2023-2024 Biennial Budget 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 Proposed budget changes - Summary by fund 183 184 City of Tukwila Thomas McLeod, Mayor Finance Department -Aaron BeMiller, Director TO: City Council CC: Mayor McLeod FROM: Aaron BeMiller, Finance Director BY: Tony Cullerton, Deputy Finance Director CC: Mayor McLeod DATE: November 4, 2024 SUBJECT: 2023-2024 Biennium Budget Amendment Ordinance ISSUE Approval of Administrative Budget Amendments. BACKGROUND A budget amendment is necessary only when a fund as a whole risks exceeding its approved allocation. Budget amendments provide organizations the opportunity to incorporate best practices, adjust to substantial changes in financial plans or policy decisions, and enhance transparency for key decisions. The proposed amendments will make the following adjustments to the General Fund for the current biennium: • Account for the retroactive pay associated with the 2023 Teamsters contract in Non - Departmental (Dept. 20), while reimbursing General Fund departments for initially covering these contractual costs. • Align the contractual costs for the Regional Fire Authority (RFA). DISCUSSION The contract with Teamsters Local 763 expired on December 31, 2023; however, labor negotiations extended into 2024. Following ratification, employees represented by Teamsters 763 received pay increases and a one-time retroactive payment, effective from January 1, 2023. The pay increases were budgeted by the individual departments for 2024, but it was decided that the retroactive payments for 2023 would be funded by Non -Departmental (Dept. 20). The retroactive department payout totaled $1, 401, 311. Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 185 Additionally, in 2024, the City entered into a service contract with the Regional Fire Authority. As of the end of September, the budget for this contract has been exceeded by approximately $720,000, with a projected year-end overrun of $914,101 due to increased insurance liability costs, overtime work, and a higher -than -anticipated volume of fire callouts. The Fire Department amendment is rounded up to $1,000,000. The total year-end budget amendment is $2,401,311. Fund 000 General 105 Contingency 101 Lodging Tax 103 Residential Streets 104 Bridges and Arterial Streets 109 Drug Seizure 2XX LTGO Debt Service 206 LID Guaranty 213 UTGO Bonds 233 2013 LID 301 Land Acquisition, Recreation & Park Dev. 302 Urban Renewal 303 General Government Improvements 304 Fire Impact Fees 305 Public Safety Plan 306 City Facilities 401 Water 402 Sewer 411 Foster Golf Course 412 Surface Water 501 Equipment Rental and Replacement 502 Employe Healthcare Plan 503 LEOFF 1 Retiree Healthcare Plan 611 Firemen's Pension Total All Funds Combined Adopted Total Expenditues $171,020,334 $7,156,945 $3,824,319 $9,213,007 $29,913,093 $586,220 $11,815,404 $9,702,980 $756,347 $1,611,452 $4,204,734 $2,754,242 $2,454,386 $1,050,000 $3,641,865 $6,941,366 $22,635,176 $34,570,340 $6,490,130 $29,589,196 $7,845,136 $14,780,381 $975,554 $1,717,108 Adopted Total Amended Amended Total Total Revenues Expenditues Revenues Expenditures Revenues $2,401,311 $2,401,311.00 $173,421,645 $173,421,645 $0.00 $0.00 $7,156,945 $7,156,945 $0.00 $0.00 $3,824,319 $3,824,319 $0.00 $0.00 $9,213,007 $9,213,007 $0.00 $0.00 $29,913,093 $29,913,093 $0.00 $0.00 $586,220 $586,220 $0.00 $0.00 $11,815,404 $11,815,404 $0.00 $0.00 $9,702,980 $9,702,980 $0.00 $0.00 $756,347 $756,347 $0.00 $0.00 $1,611,452 $1,611,452 $0.00 $0.00 $4,204,734 $4,204,734 $0.00 $0.00 $2,754,242 $2,754,242 $0.00 $0.00 $2,454,386 $2,454,386 $0.00 $0.00 $1,050,000 $1,050,000 $0.00 $0.00 $3,641,865 $3,641,865 $0.00 $0.00 $6,941,366 $6,941,366 $0.00 $0.00 $22,635,176 $22,635,176 $0.00 $0.00 $34,570,340 $34,570,340 $0.00 $0.00 $6,490,130 $6,490,130 $0.00 $0.00 $29,589,196 $29,589,196 $0.00 $0.00 $7,845,136 $7,845,136 $0.00 $0.00 $14,780,381 $14,780,381 $0.00 $0.00 $975,554 $975,554 $0.00 $0.00 $1,717,108 $1,717,108 $2,401,311 $2,401,311 $387,651,026 $387,651,026 $171,020,334 $7,156,945 $3,824,319 $9,213,007 $29,913,093 $586,220 $11,815,404 $9,702,980 $756,347 $1,611,452 $4,204,734 $2,754,242 $2,454,386 $1,050,000 $3,641,865 $6,941,366 $22,635,176 $34,570,340 $6,490,130 $29,589,196 $7,845,136 $14,780,381 $975,554 $1,717,108 $385,249,715 $385,249,715 RECOMMENDATION Approve the Budget Amendment Ordinance Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 186 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDNANCE NOS. 2688 AND 2733, WHICH ADOPTED AND AJIENDED THE CITY OF TUKWILA'S BIENNIAL BUDG r)R THE 2023- 2024 BIENNIUM, TO ADOPT AN DEL YEAR-END BUDGET; PROVIDING FOR ERABIL v; AND ESTABLISHING AN EFFECTIVE WHEREAS, on November 28, 2022, the Cit Ordinance No. 2688, which adopted the ' . '`'-2024 and WHEREAS, on November which adopted a mid-bie 35A.34.130; and uncil of the City of Tukwila adopted vial budget of the City of Tukwila; ity Council adopted Ordinance No. 2722, endment, in accordance with RCW WHEREAS, the • . mined a need to amend the 2023-2024 Biennial Budget before fisc WHEREAS, on embe' , 2024, following required public notification, the City Council conducted a pu• ing on the proposed year-end budget amendment; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance Amended. Tukwila Ordinance Nos. 2688 and 2722 are hereby amended with the City Council's adoption of the document entitled "City of Tukwila 2023-2024 Year -End Budget Amendment," attached hereto and incorporated by this reference as if fully set forth herein, in accordance with RCW 35A.34.200. Section 2. Purpose. Market rate adjustments and retroactive payouts for Teamsters 763 employees shall be implemented per the Teamsters collective bargaining contract. Further, adjustments to the Puget Sound Regional Fire Authority payments shall be implemented in alignment with contract stipulations. 2024 Legislation: 2023-2024 Year -End Budget Amdt Version: 10/28/24 Staff: T. Cullerton Page 1 of 4 187 Section 3. Estimated Revenues and Appropriations. The totals of the estimated revenues and appropriations for the General Fund and the aggregate totals are as follows: Fund 000 General 105 Contingency 101 Lodging Tax 103 Residential Streets 104 Bridges and Arterial Streets 109 Drug Seizure 2XX LTGO Debt Service 206 LID Guaranty 213 UTGO Bonds 233 2013 LID 301 Land Acquisition, Recreation & Park Dev. 302 Urban Renewal 303 General Govemment Improvements 304 Fire Impact Fees 305 Public Safety Plan 306 City Facilities 401 Water 402 Sewer 411 Foster Golf Course 412 Surface Water 501 Equipment Rental and Replacement 502 Employe Healthcare Plan 503 LEOFF 1 Retiree Healthcare Plan 611 Firemen's Pension Total All Funds Combined Section 4. Copies on as adopted, together with electronically by the Ci Washington State r made available to as adopted, together City Clerk to the Divisio to the Association of Was Adopted Total Adopted Total Amended Amended Total Total Expenditues Revenues Expenditues Revenues Expenditures Revenues $171,020,334 $171,020,334 $2,401,311 $2,401,311.00 $173,421,645 $173,421,645 $7,156,945 $7,156,945 $0.00 $0.00 $7,156,945 $7,156,945 $3,824,319 $3,824,319 $0.00 $0.00 $3,824,319 $3,824,319 $9,213,007 $9,213,007 $0.00 $0.00 $9,213,007 $9,213,007 $29,913,093 $29,913,093 $0.00 $0.00 $29,913,093 $29,913,093 $586,220 $586,220 $0.00 $0.00 $586,220 $586,220 $11,815,404 $11,815,404 $0.00 $0.00 $11,815,404 $11,815,404 $9,702,980 $9,702,980 $0.00 $0.00 $9,702,980 $9,702,980 $756,347 $756,347 $0.00 $0.00 $756,347 $756,347 $1,611,452 $1,611,452 $0.00 $0.00 $1,611,452 $1,611,452 $4,204,734 $4,204,734 $0.00 $0.00 $4,204,734 $4,204,734 $2,754,242 $2,754,242 $0.00 $0.00 $2,754,242 $2,754,242 $2,454,386 $2,454,386 $0.00 $0.00 $2,454,386 $2,454,386 $1,050,000 $1,050,000 $s $0.00 $1,050,000 $1,050,000 $3,641,865 $3,641,865 '0 $0.00 $3,641,865 $3,641,865 $6,941,366 $6,941,366 '.0.00 $0.00 $6,941,366 $6,941,366 $22,635,176 $22,635,176 $0.00 0.00 $22,635,176 $22,635,176 $34,570,340 $34,570, $i 10 '.00 $34,570,340 $34,570,340 $6,490,130 $6,490, .00 $0.00 $6,490,130 $6,490,130 $29,589,196 $29,589,19 $0.00 $0.00 $29,589,196 $29,589,196 $7,845,136 $7,845,136 $0.00 $0.00 $7,845,136 $7,845,136 $14,780,381 81 00 $0.00 $14,780,381 $14,780,381 $975,554 $9 ;.10 $0.00 $975,554 $975,554 $1,717,108 717 . $0.00 $0.00 $1,717,108 $1,717,108 $385, 15 $2,401,311 $2,401,311 $387,651,026 $387,651,026 py of the amended budget for 2023-2024, o mending ordinance, shall be kept on file ccessible from the City's website in accordance with hedule requirements and City policy, and shall be request. A copy of the amended budget for 2023-2024, of this amending ordinance, shall be transmitted by the icipal Corporations of the Office of the State Auditor and on Cities. Section 5. 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 6. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. 188 2024 Legislation: 2023-2024 Year -End Budget Amdt Version: 10/28/24 Staff: T. Cullerton Page 2 of 4 Section 7. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City and shall take effect and be in full force and effect five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Special Meeting thereof this day of , 2024. ATTEST/AUTHENTICATED: Andy Youn, CMC, City Clerk Thomas McLeod, Mayor APPROVED AS TO FORM BY: Filed with thr .;ity Clerk: Passed b City Council: Publish: Office of the City Attorney Effe e Date: 0 ance Number. Attachment: City of Tukwila 2024 Yearudgeiendment NNW 2024 Legislation: 2023-2024 Year -End Budget Amdt Version: 10/28/24 Staff: T. Cullerton Page 3 of 4 189 190 City of Tukwila 2024 Year -End Budget Amendment Reconciliation of Budget Summary to Ordinance Dept. Note Description of Proposed Amendment 2024 Revenue Expenditure Council 0 0 Council Total $- $- Mayor 0 0 Mayor Total $- $- Administrative Services 2023 Retro Pay 91,617 0 Administrative Services Total $91,617 $- Finance 2023 Retro Pay 99,204 Finance Total $99,204 $- Recreation -Parks 2023 Retro Pay 98,845 Recreation 2023 Retro Pay 571,462 Recreation Total $670,307 $- Community Development 2023 Retro Pay 191,100 Community Development Total $191,100 $- Court 2023 Retro Pay 64,283 Court Total $64,283 $- Police 2023 Retro Pay 31,791 Police Total $31,791 $- Fire Contract Rate Adjustment 1,000,000 Fire Department Total $1,000,000 $- Public Works 2023 Retro Pay 177,022 Public Works -Facilities 2023 Retro Pay 75,988 Public Works Total $253,010 $- Dept. Dept. 20 - Transfers Out Note Description of Proposed Amendment 2023 Retro Pay 2024 Revenue Expenditure 1,401,311 Dept. 20 Transfers Total $- $1,401,311 General Revenue Dept. Note Description of Proposed Amendment 2024 Revenue Expenditure 0 0 Total General Revenue Amendments $- $- Total General Fund 2,401,312.00 1,401,311.00