HomeMy WebLinkAboutSpecial 2024-11-25 Item 2B.1 - Budget - 2025-2026 Biennial Budget / 2025-2030 Financial Planning Model and Capital Improvement ProgramCOUNCIL AGENDA SYNOPSIS
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Afeetang Date
Prepared f .
Mayor's review
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11/4/24
Tony
11/18/24
Tony
11/25/24
Tony
ITEM INFORMATION
ITEM No.
4.B. (1)
Spec 2.B. (1)
STAFF SPONSOR: TONY CULLERTON
ORIGINAL AGENDA DATE: 11/4/24
AGENDA ITEMTr1LE Biennial Budget: Ordinance adopting the 2025-2026 Biennial Budget and
2025-2030 Capital Improvement Program
CATEGORY
Discussion
Mt Date 11/18/24
Motion
Mt Date
Resolution
Aft Date
® Ordinance
Mt Date 11/25/24
Bid Award
Mt Date
® Public Dearing Other
Mt Date 11/4 Mtg Dak
SPONSOR ❑ Council
Mayor ❑ Adman Svcs ❑ DCD
Finance ❑ Fire ❑ P&R ❑ 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&Infrastnzcture Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev.
❑ LTAC
DATE:
❑ Arts Comm.
❑ Parks Comm. ❑ Planning Comm.
COMMT1'I'EE CHAIR N/A
RECOMMENDATIONS:
SPONSOR/ADI,UN. Finance
COMMI1`1'RE N / A
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
AMOUNT BUDGETED
APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG DATE
11/4/24
RECORD OF COUNCIL ACTION
Forwarded to next regular meeting
11/18/24
Forwarded to next regular meeting
11/25/24
MTG. DATE
ATTACHMENTS
11/18/24
Draft Ordinance (revised after 11/4 Regular Meeting)
11/25/24
Draft Ordinance (revised after 11/18 Regular Meeting)
Summary of Changes
21
22
NOTE: Shaded text denotes changes made after the
Regular Meeting packet of November 18, 2024.
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF TUKWILA, WASHINGTON;
ADOPTING THE BIENNIAL BUDGET OF THE
CITY OF TUKWILA FOR THE 2025-2026
BIENNIUM; ADOPTING THE 2025-2030
FINANCIAL PLANNING MODEL AND
ACCOMPANYING CAPITAL IMPROVEMENT
PROGRAM; PROVIDING FOR SEVERABILITY;
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the preliminary budget of the City of Tukwila 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 continued to 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;
WHEREAS, the City Council desires to modify the Mayor's proposed 2025-2026 budget
in Ft'n,r 000, General Fund; 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 . ,ereby amends the Mayor's proposal and adopts the
document entitled "City of Tukwila 2025 -2026 Biennial Budget," and its exhibit A, "Summary
of Changes from Mayor's Proposed Budget,' incorporated by this reference as if fully set
forth herein, in accordance with RCW 35A.34.120.
2024 Legislation: 2025-2026 Biennial Budget
Version: 11/20/24
Staff: T. Cullerton
Page 1 of 4
23
Section 2. Staff will identify opportunities to enhance existing revenue streams and
implement new revenue sources and return to the City Council with a report on all revenue
options to safeguard the City's fiscal health and mitigate the impact of rising expenditures
no later than mid -year 2025.
Section 3. 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 4. The totals of the estimated revenues and appropriations for each separate
fund and the aggregate totals are as shown in the chart below:
Fund
csiiinaieu
Budgeted
Budgeted
Estimated
Beginning Fund
Ending Fund
Balance
Revenues
Expenditures
Balance
000
General
15.564.070
154,292,479
153,573,762
16,282,787
101
Hotel/Motel
3.410.870
1,945.500
2.677.E
2.678,548
103
City Street
1,858.573
5.999.000
5.803.000
2.054,573
104
Arterial Street
5.278.834
16.628,002
18.077 377
3.829,459
105
Contingency
7,304,961
470,639
0
7.775,600
109
Drug Seizure Fund
304.562
196.200
14�
354.762
2xx
LTGO Debt Service Funds
0
9.481.650
9.481.650
0
213
UTGO Bonds
479.708
9.610.000
9.991.200
98.508
206
LID Guaranty
799.243
16,000
0
815,243
233
2013 LID
513.499
938,000
937.000
514,499
301
Land Acquisition, Recreation &
4.130.437
9.006.990
10.320,841
2.816.586
Park Dev.
303
General Government
324.512
840,000
938.000
226,512
Improvements
304
Fire Improvements
0
1,200,000
1,200,000
0
305
Public Safety Plan
1.056.573
2.230.000
2.636.673
649,900
306
City Facilities
422.811
2.693,874
1,825.238
1.291,447
401
Water
4.174.701
21.596,192
23.117,822
2.653,071
402
Sewer
10.310.151
25.629,062
33.381,410
2,557,803
411
Foster Golf Course
2.024.196
5,575,000
6.262.E
1,337,147
412
Surface Water
10.866.876
29.720,677
33.868,024
6,719,529
501
Equipment Rental
1.808.659
12.307,228
11.104,567
3,011,320
502
Insurance Fund
3.393.651
17.257,744
13.640,396
7,010,999
503
Insurance - LEOFF 1 Fund
36.695
1.065.499
1.021.856
80.338
611
Firemen's Pension
1.722.466
310,000
164.000
1.868,466
Total
$75,786,048
$329,009,736
$340,168,687
$64,627,097
2024 Legislation: 2025-2026 Biennial Budget
Version: 11/20/24
Staff: T. Cullerton
Page 2 of 4
24
Estimated
Beginning
Fund
Budgeted
Revenues
Budget
Expenditures
Estimated
Ending -Fund
Balance
00A-General
152,768,537
105 Contingency 3410,870
1 945.500
2,277,822
3.078.548
101 Lodoino T
5,803,000
103 Rl Streets 5 278.834
16 628.002
18, 077, 377
3.829.4159
109 Drug Seizure 30'1,562
196.200
146,000
354 762
2XX LTGO Debt Service
9,481,660
206 LID Guaranty 479,708
9,991,200
213 UTGO Bond
233 2013 LID 513499
937,000
301 Land Acquisition, Recreation & Park
Dev.
303 General Government 1
P
32'1.512
8410.000
938,000
226.512
30'1 Fire Impact Fees 8
1,200,000
305 Public Safety Plan 1 056,573
2,636,673
306 City Faciliti
1,826,238
'101 Water 417'1,701
23,117, 822
4102 S
33, 381,410
'I 11 Foster Golf Course 2 024.196
6,262,049
412 Surface W
33,293,176
11,104,567
3.011.320
13, 640, 396
5
hcare Plan 36,695
1.065.499
1,021,856
80.338
611 Firomon'c Pon,,ion
164,000
$328,763,617
$338, 3 4
Section 5. A complete copy of the final budget for 2025-2026, as adopted, together
with a copy of this adopting ordinance, shall be kept on file electronically by the City Clerk
and 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. 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 6. 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
2024 Legislation: 2025-2026 Biennial Budget
Version: 11/20/24
Staff: T. Cullerton
Page 3 of 4
25
State records retention schedule requirements and City policy and shall be made
available to the public upon request.
Section 7. 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 8. The detail of Capital Improvement Program projects shall be reflected in
the published 2025-2030 Financial Planning Model and accompanying Capital
Improvement Program.
Section 9. 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 10. 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.
Section 11. 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 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 the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Office of the City Attorney
2024 Legislation: 2025-2026 Biennial Budget
Version: 11/20/24
Staff: T. Cullerton
Ordinance Number:
Page 4 of 4
26
EXHIBIT A
2025 — 2026 BUDGET ORDINANCE
Summary of Changes from Mayor's Proposed Budget
Fund
2025
2026
Total
EXPENDITURES
General Fund
Technology & Innovation Services
170,619
185,297
355,916
Municipal Court
65,000
67,752
132,752
Police Dept
56,804
59,754
116,558
Non Dept (20)
65,000
135,000
200,000
General Fund Total
357,423
447,803
805,226
Hotel / Motel
(50,000)
450,000
400,000
Surface Water Fund
275,265
299,583
574,848
Total Expenditures
582,688
1,197,386
1,780,074
REVENUES
Employee Healthcare Fund
77,582
83,789
161,371
Expenditures
General Fund
Technology & Innovation Services
Propose the addition of one full-time equivalent (FTE) position to mitigate single points of
failure within the organization. This role would also support succession planning for
security and IT system architecture, ensuring critical knowledge transfer and continuity
as staff advance or transition to other opportunities. The projected costs for this position
are $170,619 in 2025 and $185,297 in 2026, resulting in a total biennial expenditure of
$355,916.
Municipal Court
To advance the Courts commitment to delivering innovative services and enhancing
customer operations, this initiative incorporates a strategic succession planning model
and a departmental reorganization. Implementing these efforts will necessitate additional
labor costs, estimated at $65,000 for 2025 and $67,752 for 2026, for a total biennial
expenditure of $132,752.
27
Police Department
This is an amendment to add premium pay for Officers when they are serving as the
dedicated Corporal on Shift. The estimated costs are $56,804 in 2025 and $59,754 in
2026 for a total biennial cost of $116,557.
Non -Departmental
Tukwila Promise. The City would be a funding contributor to a partnership program led by
Tukwila School District and Highline College, and State of Washington to provide free
college tuition to qualifying students. The City's program contribution is projected to cost
$65,000 in 2025 and $135,000 in 2026, for a total biennial investment of $200,000.
Special Revenue Funds
Hotel / Motel
The purpose of this amendment is to align the capital project expenditure to be in
alignment with the Capital Improvement Plan. The financial impact is a reduction of
$50,000 in 2025 and an increase of $450,000 in 2026, for a net biennial impact of
$400,000.
Enterprise Fund
Surface Water Fund (Fund 412)
During the budget preparation process, it was identified that a couple new positions were
inadvertently excluded from the initial position budget worksheet. These positions include
one Full -Time Equivalent (FTE) Maintenance & Operations Specialist and one FTE Green
Infrastructure Coordinator. The estimated costs for these additions are $275,265 in 2025
and $299,583 in 2026, resulting in a total biennial expenditure of $574,848.
Revenues
Employee Healthcare Fund (Fund502)
As part of the budget process, management conducts a comprehensive analysis of each
City fund. Through this evaluation, it was determined that additional revenue will be
realized through contributions from both employees and employers. Additional
anticipated revenues will be $40,744 in 2025 and $44,004 in 2026, for a total biennial
increase of $80,748.
Council Proviso
Throughout the rigorous biennial budget process, it has become clear that the City cannot
depend exclusively on cost-cutting measures to address future budget deficits. To ensure
long-term financial stability, it will be imperative to identify new revenue sources and
strengthen existing revenue streams. The City Council has directed the Finance
Department to return midyear to present and discuss potential additional revenue options.
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