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HomeMy WebLinkAboutOrd 2749 - 2025-2026 Biennium Budget / 2025-2030 Financial Planning Model and Capital Improvement ProgramWashington Cover page to Ordinance 2749 The full text of the ordinance follows this cover page. 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. Ordinance 2749 was amended or repealed by the following ordinances. Se AMENDED ions) Amended A ended by Ord # 2772 2773 REPEALED Section(s) Repeal Repealed by Ord # Washington Ordinance No, '12 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; ADOPTING THE BIENNIAL BUDGET OF THE CITY OF TUKWILA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 Fund 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 hereby 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 Bienria Budget Version: 11/20/24 Staff T. Culierton Page 1 of 4 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: 000 0 103 04 05 109 2 3 206 303 304 305 306 401 402 411 412 501 502 503 611 Fund Gener Hotel! City Street Arterial Street Contingency Drug Seizure Fund LTGO Debt Service Funds UTGO Bonds LID Guaranty 2013 LID Land Acquisition, Recreation & Park Dev, ,General Government Improvements Fire Improvements Public Safety Plan Water Sewer Foster Golf Course Surface Water Equipment Rental Insurance Fund Insurance - LEOFF 1 Fund Firemen's Pension Total 2024 Legislation: 2025-2026 Biennial Budget Version: 11/20/24 Staff: T. Cullertion Estimated Beginning Fund Balance 15,564,070 3,410,870 1,858,573 5,278,834 7,304,961 304,562 0 479,708 799,243 513,499 4,130,437 324,512 0 1,056,573 422,811 4,174,701 10,310,151 2,024,196 10,866,876 1,808,659 3 93,651 36,695 1,722,466 $75,786,048 Budgeted Revenues 154,292,479 1,945,500 5,999,000 16,628,002 470,639 196,200 9,481,650 9,610,000 16,000 938,000 9,006,990 840,000 1,200,000 2,230,000 2,693,874 21,596,192 25,629,062 5,575,000 29,720,677 12,307,228 17,257,744 1,065,499 310,000 329,009,736 Budgeted Expenditures 153,573,762 2,677,822 5,803,000 18,077,377 0 146,000 9,481,650 9,991,200 937,000 10,320,841 938,000 1,200,000 2,636,673 1,825,238 23,117,822 33,381,410 6,262,049 33,868,024 11,104,567 13,640,396 1,021,856 164,000 340,168,687 Estimated Ending Fund Balance 16,282,787 2,678,548 2,054,573 3,829,459 7,775,600 354,762 0 98,508 815,243 514,499 226,512 0 649,900 1,291,447 2,653,071 2,557,803 1,337,147 6,719,529 3,0 1,320 7,010,999 80,338 1,868,466 64,627,097 Page 2 of 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 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 Mod& 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 lt:k day of '9,),,/ t,40 \OCAr 2024, 2024 Legislation: 2025-2026 Biennial Budget Version: 11/20/24 Staff: T. Cullerton Page 3 of 4 ATTEST/AUTHENTICATED: Andy Youn, CMC. City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Cl'homas McLeod, May Filled with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Nurnbe : Attachment: 2025-2026 Budget: Summary of Changes from Mayor's Proposed Budget 2024 Legiseaton 20'25-2026 BenraiBiennial Budget 11/20/24 Staff, T. CuMenton Page 4 of 4 EXHIBIT A 2025 — 2026 BUDGET ORDINANCE Summary of Changes from Mayor's Proposed Budget Fund EXPENDITURES General Fund Technolo & Innovation Services General Fund Tota Surface Water Fund 2025 170,619 2026 Total 185,297 355,916 65,000 56,804 65,000 357,423 L50,000) 275,265 67,752 59,754 135,000 447,803 450,000 299,583 132,752 116,558 200,000 805,226 400,000 574,848 Total Expenditures 582,68fil 1,197,3861 ,780,074 REVENUES mployee Healthcare Fund Expenditures General Fund 83,789 161,371 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 Court's 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. 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. City of Tukwila Public Notice of Ordinance Adoption for Ordinances 2749-2750. On November 25, 2024, the City Council of the City of Tukwila, Washington, adopted the following ordinances, the main points of which are summarized by title as follows: ORDINANCE 2749: 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 ESTAHILISHING AN EFFECTIVE DATE. ORDINANCE,2759: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON. AMENDING ORDINANCE NOS. 2688 AND 2733, WHICH ADOPTED AND AMENDED THE CITY OF TUKWILA'S BIENNIAL BUDGET FOR THE 2023-2024 BIENNIUM, TO ADOPT AN AMENDED YEAR-END BUDGET; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. lhe full text of these ordinances will be provided upon request. Andy Youn, ecords Governance Manager/City Clerk Published Seattle Times: November 28,, 2024