HomeMy WebLinkAboutFIN 2025-06-23 COMPLETE AGENDA PACKETCity of Tukwila
Finance and Governance
Committee
O Armen Papyan, Chair
O Dennis Martinez
O Verna Seal
AGENDA
MONDAY, TUNE 23, 2025 — 5:30 PM
Distribution:
A. Papyan
D. Martinez
V. Seal
T. Sharp
J. McConnell
Mayor McLeod
M. Wine
A. Youn
L. Humphrey
ON -SITE PRESENCE:
TUKWILA CITY HALL
HAZELNUT CONFERENCE Room
6200 SOUTHCENTER BOULEVARD
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Item
Recommended Action
Page
1.
BUSINESS AGENDA
a. Resolutions adopting City Investment and Debt
a.
Forward to 7/14 C.O.W. &
Pg.1
Policies. (Tony 10 min)
7/21 Regular Meeting
Tony Cullerton, Deputy Finance Director
Consent Agenda.
b. May 2025 Financial Report. (Tony 10 min)
b.
Discussion only
Pg.35
Tony Cullerton, Deputy Finance Director
2.
MISCELLANEOUS
Next Scheduled Meeting: July28, 2025
S. The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's office at 206-433-1800 (TukwilaCityClerk@TukwilaWA.gov) for assistance.
City of Tukwila
Tom McLeod, Mayor
Finance Department —Aaron BeMiller, Director
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
CC: Mayor McLeod
FROM: Aaron BeMiller, Finance Director
By: Tony Cullerton, Deputy Finance Director
DATE: June 23, 2025
SUBJECT: City Investment & Debt Policies
ISSUE
Finance is recommending the repeal and replacement of the City's current Investment and Debt
Policies. The updated policies reflect best practices by better aligning with industry standards,
expanding on roles and responsibilities, and supporting the City's broader financial strategy,
including capital planning and passive revenue development.
BACKGROUND
As part of the Council's Revenue Proviso, the Finance Department is conducting a
comprehensive review of the City's financial policies to strengthen fiscal sustainability and
strategic planning. The current Investment and Debt Policies were last significantly updated in
2021 and 2023, respectively. Since then, best practices and the City's financial priorities have
evolved.
The revised policies were prepared to align with the standards set by the Washington Public
Treasurers Association (WPTA) and have been submitted for consideration under their Certificate
of Excellence program. The revisions aim to support:
• A more integrated approach to the Capital Improvement Program (CIP)
• Transparent delineation of roles, responsibilities, and reporting
• The use of professional advisory services for complex transactions
• Enhanced diversification, risk management, and performance benchmarking
Investment Policy Updates:
The new Investment Policy offers a substantial update in both structure and content. Key
improvements include:
• Enhanced definitions of safety, liquidity, and return objectives, with detailed risk mitigation
strategies
• Expanded list of permitted investments, including supranational bonds and investment -
grade corporate notes
• Clearer delineation of delegated authority, reporting responsibilities, and training
requirements
• Prohibition of higher -risk instruments, such as mortgage -backed securities and
cryptocurrency
• Emphasis on benchmarking, including use of Treasury indices and quarterly compliance
reporting
Debt Policy Updates:
Similarly, the revised Debt Policy strengthens the City's framework for responsibly managing
long-term obligations:
• Aligns debt issuance with long-range financial and capital planning
• Clarifies use of professional advisors and underwriters
• Establishes standards for debt affordability, structuring, and refunding
• Enhances transparency and ongoing debt performance reporting
FINANCIAL IMPACT
There is no direct financial impact from the adoption of these revised policies. However, the
improved framework is expected to contribute to long-term cost savings, better investment
performance, and stronger credit management.
RECOMMENDATION
Forward the resolutions to the 07/14 Committee of the Whole Meeting for discussion and
subsequently to the 07/21 Regular Meeting consent agenda in order to repeal and replace both
the Investment and Debt Policies for the City.
ATTACHMENTS
A. Draft Resolution Adopting Investment Policy (2025)
B. Draft Resolution Adopting Debt Policy (2025)
2
Attachment A
DRAFT
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING AN INVESTMENT
POLICY; AND REPEALING RESOLUTION NO. 2034
WHEREAS, the investment of public funds must comply with all applicable state and
local requirements; and
WHEREAS, a comprehensive investment policy ensures that public funds are
invested in a manner that will provide maximum security with the highest investment
return while meeting daily cash flow demands; and
WHEREAS, on December 6, 2021, the City Council adopted Resolution No. 2034
adopting an investment policy; and
WHEREAS, the City Council desires to strengthen and align the policy with prudent
and contemporary financial investment practices; and
WHEREAS, the City Council desires to implement an Environmental, Social, and
Governance (ESG) investment strategy utilizing ethical investing as a guiding principle;
and
WHEREAS, the City Council desires to incorporate climate change as a factor in
investment risk and strategy, aligning with broader sustainability goals.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Repealer. Resolution No. 2034 is hereby repealed.
Section 2. Findings Incorporated and Adoption. The above "whereas" recitals are
adopted as findings in support of this resolution, and the City of Tukwila Investment Policy
attached hereto as Exhibit A is adopted.
Legislation: Investment Policy
Version: 6/16/2025
Staff: T. Cullerton
Page 1 of 2
3
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2025.
ATTEST/AUTHENTICATED:
Andy Youn-Barnett, CMC, City Clerk Tosh Sharp, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Office of the City Attorney
Attachment: Exhibit A— City of Tukwila Investment Policy - 2025
Legislation: Investment Policy
Version: 6/16/2025
Staff: T. Cullerton
Page 2of2
4
City of Tukwila
Investment Policy
2025
Table of Contents
1. Introduction 3
2. Governing Authority 3
3. Policy Statement 3
4. Scope 3
5. Objectives 3
A. Safety 4
B. Liquidity 4
C. Return on Investment 5
6. Standards of Care 5
A. Delegation of Authority and Responsibilities 5
B. Prudence 6
C. Ethics and Conflicts of Interest 6
7. Safekeeping, Custody and Controls 6
A. Delivery vs. Payment 6
B. Third -Party Safekeeping 7
8. Authorized Financial Dealers 8
A. Broker/Dealers 8
B. Investment Advisors 8
C. Depositories 9
D. Competitive Transactions 9
9. Authorized and Suitable Investments 9
A. Authorized Investments 9
B. Suitable Investments 10
C. Bank Collateralization 11
D. Prohibited Investments 11
10. Investment Parameters 12
A. Diversification 12
B. Investment Maturity 12
C. Strategic Philosophy 13
11. Reporting Requirements 14
12. Policy Adoption 15
Glossary of Terms 16
City of Tukwila Investment Policy 2025 Page 2 of 18
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1. Introduction
This Investment Policy defines the parameters within which funds are to be invested by the City
of Tukwila ("City"). This policy also formalizes the framework of the City's Policy and Procedures
to provide the authority and constraints for the City to maintain an effective and judicious
management of funds within the scope of this policy.
These policies are intended to be broad enough to allow the Finance Director or authorized
designee to function properly within the parameters of responsibility and authority, yet specific
enough to adequately safeguard the investment assets.
2. Governing Authority
The City of Tukwila's investment authority is derived from RCW 35A.40.050 and 35.39.032. The
investment program shall be operated in conformance with Washington Revised Statutes and
applicable Federal Law. All funds within the scope of this policy are subject to regulations
established by the State of Washington.
3. Policy Statement
This policy establishes standards and guidelines for the direction, management and oversight for
all of the City of Tukwila's investable cash and funds. Funds must be invested prudently to assure
preservation of principal, provide needed liquidity for daily cash requirements, and provide a
market rate of return. All investments must conform to federal, state, and local statutes governing
the investment of public funds.
4. Scope
This policy applies to activities of the City of Tukwila with regard to investing the financial assets
of the City. The City commingles its funds to maximize investment earnings and to increase
efficiencies with regard to investment pricing, safekeeping, and administration. Investment
income will be allocated to the various funds based on their respective participation and in
accordance with generally accepted accounting principles (GAAP). Principal and interest is
apportioned for the benefit of the various participating funds or for the benefit of the general fund.
(RCW 35.39.034) The city maintains the right to separate certain funds and exclude them from
the scope of this policy. Should bond covenants be more restrictive than this policy, funds shall
be invested in full compliance with those restrictions.
5. Objectives
All funds will be invested in a manner that is in conformance with federal, state and other legal
requirements. In addition, the objectives, in order of priority, of the investment activities will be as
follows:
City of Tukwila Investment Policy 2025 Page 3 of 18
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A. Safety
Safety of principal is the primary objective of the City. To mitigate credit and interest rate
risk, investment decisions shall be undertaken in a manner that seeks to ensure
preservation of capital in the overall portfolio. To obtain this objective, the following steps
will be taken:
i. Credit risk. This is the risk of loss due to the financial failure of the security issuer or
backer. The city will minimize credit risk by:
1. Limiting exposure to poor credits and concentrating the investments in the
safest types of securities.
2. Diversifying the investment portfolio so that potential losses on individual
securities will be minimized; and
3. Actively monitoring the investment portfolio holdings for rating changes,
changing economic market conditions, etc.
4. Credit rating downgrade. If the credit rating of a security is subsequently
downgraded below the minimum rating level for a new investment of that
security, the Finance Director shall evaluate the downgrade on a case -by -case
basis in order to determine if the security should be held or sold after further
analysis of the credit rating on an ongoing basis. The Finance Director will
apply the general objectives of safety, liquidity, and return to make the decision.
ii. Interest rate risk. This is the risk that the market value of securities in the portfolio will
fall due to increases in general interest rates. The city will mitigate the interest rate risk
by:
1. Structuring the investment portfolio so that securities mature to meet cash
requirements, when known, for ongoing operations, thereby avoiding the need
to sell securities on the open market prior to maturity;
2. Investing liquidity funds primarily in short-term instruments (i.e., investments
maturing in less than one year); and
3. Investing excess liquidity funds in a manner that is consistent with the
established risk/return objectives of this policy within the stated maximum
weighted average maturity constraint.
B. Liquidity
The investment portfolio will be structured to meet all expected obligations in a timely
manner, to avoid premature sale of an investment at a loss of principal. The investment
portfolio will provide liquidity sufficient to enable the City to meet all cash requirements
that might reasonably be anticipated. This will be accomplished by either maintaining a
portion of the portfolio in investment vehicles offering daily liquidity at face value, such as
the Washington State Local Government Investment Pool (LGIP) or structuring the
portfolio so that securities mature concurrently with cash needs to meet anticipated
demands. Because all possible cash demands cannot be anticipated, the portfolio should
consist largely of securities with active secondary or resale markets.
City of Tukwila Investment Policy 2025 Page 4 of 18
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C. Return on Investment
The investment portfolio will be structured with the objective of attaining a market rate of
return throughout economic cycles, commensurate with the investment risk parameters
and the cash flow characteristics of the portfolio.
D. Legality
The investment portfolio will be invested in a manner that meets RCW statutes and all
legal requirements of the City.
6. Standards of Care
A. Delegation of Authority and Responsibilities
i. Governing Body
The City Council, as the governing body of the City, will retain ultimate fiduciary
responsibility for the portfolio. The Council will designate an investment officer to
manage the investment program in accordance with RCW sections 35A.40.050,
35.39.032, 36.29.020 and City policy and will review and adopt any changes to the
investment policy.
ii. Delegation of Authority
The City Council designates the City's Finance Director, or their designee, as the
Investment Officer of the City. No person may initiate investment transactions on
behalf of the Investment Officer without the express written consent of the Investment
Officer. Both the City and the investment advisor shall maintain record of individuals
granted consent to initiate transactions by the Investment Officer.
iii. Training: Such procedures shall include explicit delegation of authority to persons
responsible for investment transactions to provide adequate redundancy by properly
trained and informed staff. All staff engaging in investment transactions shall attend
public investment training. Staff shall not engage in any allowable investment
transaction for which they cannot articulate a rationale for having done so.
iv. Finance Committee:
The Finance & Governance Committee shall meet at least annually to receive a report
on investment performance and investment compliance.
v. Registered Investment Advisor
The City may engage the services of an external registered investment adviser to
assist with the management of the City's investment portfolio in a manner that is
consistent with the City's objectives and this policy. Such advisers shall provide
recommendation and advice regarding the City investment program including but not
City of Tukwila Investment Policy 2025 Page 5 of 18
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limited to advice related to the purchase and sale of investments in accordance with
this Investment Policy. Such advisers must be registered under the Investment
Advisers Act of 1940.
B. Prudence
The standard of prudence to be used by the Finance Director or any designees in the
context of managing the overall portfolio is the prudent person rule enacted by State
Statute (RCW 11.100.020) which states:
Investments will be made with judgment and care, under circumstances then
prevailing, which persons of prudence, discretion and intelligence exercise in the
management of their own affairs not in regard to speculation but in regard to the
permanent disposition of the funds considering the probable income as well as the
probable safety of the capital.
The Finance Director and authorized investment officers and employees who act in
accordance with the Finance Director's written procedures and the City's Investment
Policy, and who exercise due diligence, shall be relieved of personal responsibility for the
credit risk or market price change of an investment, provided deviations from expectations
are reported in a timely fashion and appropriate action is taken to control adverse
developments.
C. Ethics and Conflicts of Interest
Officers and designated employees involved in the investment process shall refrain from
personal business activity that could conflict with the proper execution of the investment
program, or which could impair their ability to make impartial investment decisions.
Employees and investment officials shall disclose to the City Manager in writing any
material financial interests in financial institutions that conduct business within this
jurisdiction, and they shall further disclose any large personal financial/investment
positions that could be related to the performance of the City's portfolio. Employees and
officers shall subordinate their personal investment transactions to those of the City of
Tukwila, particularly with regard to the time of purchases and sales.
Persons authorized to invest shall not accept gifts form the institutions with which the City
places investments. Occasional business meals are acceptable and must be reported to
the Finance Director and Finance Committee.
7. Safekeeping, Custody and Controls
A. Delivery vs. Payment
All trades of marketable securities will be executed (cleared and settled) on a delivery vs.
payment (DVP) basis to ensure that securities are deposited in the City's safekeeping
institution prior to the release of funds.
City of Tukwila Investment Policy 2025 Page 6 of 18
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B. Third -Party Safekeeping
Prudent treasury management requires that all purchased securities be bought on a
delivery versus payment (DVP) basis and be held in safekeeping by the City, an
independent third -party financial institution, or the City's designated depository.
The City's Finance Director shall designate all safekeeping arrangements and an
agreement of the terms executed in writing. All securities will be receipted and recorded
based on the terms in the custodial contract. The third -party custodian shall be required
to provide a monthly statement to the City listing at a minimum each specific security, book
yield, description, maturity date, market value, par value, purchase date, and CUSIP
number. The City will have online access through the safekeeping bank for verification of
the account holdings and transactions.
All collateral securities pledged to the City for certificates of deposit or demand shall be
held in a segregated account at the issuing financial institution that is reporting to the
State's Public Deposit Protection Commission (PDPC).
C. Performance Standards / Benchmark
The investment portfolio is expected to provide similar returns to the benchmark over
interest rate cycles but may underperform or outperform in certain periods. The City's cash
management portfolio shall be managed using as comparison for market yield of [Name
a specific benchmark, i.e. 3-Year Constant Maturity US Treasury Index, 0-3 year Treasury
Index, etc.].
D. Downgraded Securities
The City may, from time to time, be invested in a security whose rating is downgraded. In
the event a rating drops below the minimum allowed by this policy, the Finance Director
will review and recommend an appropriate plan of action to the Council via the Finance
Committee. If the City utilizes an Investment Advisor, that Investment Advisor shall notify
the Finance Director and recommend a plan of action within one month. The City may
continue to hold a downgraded investment to maturity if a probable outcome is the
eventual realization of full value, rather than a realized loss if divested prior to maturity.
E. Internal Controls
The Finance Director is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the City are protected from loss, theft or
misuse. Specifics for the internal controls shall be documented in an investment
procedures manual.
The internal control structure shall be designed to provide reasonable assurance that
these objectives are met. The concept of reasonable assurance recognizes that the cost
of a control should not exceed the benefits likely to be derived and the valuation of costs
and benefits requires estimates and judgments by management. The internal controls
shall address the following points at a minimum:
City of Tukwila Investment Policy 2025 Page 7 of 18
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i. Control of collusion
ii. Separation of transaction authority from accounting and recordkeeping
iii. Custodial safekeeping
iv. Avoidance of physical delivery securities of marketable securities
v. Clear delegation of authority to subordinate staff members
vi. Written confirmation of transactions for investments and wire transfers
vii. Dual authorizations of wire transfers
viii. Staff training and
ix. Review, maintenance and monitoring of security procedures both manual and
automated.
F. External Controls
The Office of the State Auditor requires that in accordance with Revised Code of
Washington 43.09.260, the City must undergo annual financial examinations performed
by State Examiners. Investment management is to be included as part of the annual
independent audit to assure compliance with this investment policy.
8. Authorized Financial Dealers
A. Broker/Dealers
The Finance Director or designee shall maintain and review annually a list of all authorized
financial institutions and broker/dealers that are approved to transact with the City for
investment purposes. Any firm is eligible to make an application to the City. Additions
and deletions to the list will be made at the City's discretion. All broker/dealers and
financial institutions who desire to do business with the City must supply the Finance
Director with the following:
i. Annual audited financial statements.
ii. Proof of FINRA (Financial Industry Regulatory Authority) certification.
iii. Proof of registration with the State of Washington.
iv. A completed Broker/Dealer questionnaire and a certification of having read the
City Investment Policy.
B. Investment Advisors
The City may contract with an external investment advisor to assist with the management
of the City's investment portfolio in a manner that is consistent with the City's objectives
and this policy. Advisors must be registered under the Investment Advisers Act of 1940
and must act in a non -discretionary capacity, requiring approval from the City prior to all
transactions.
The Finance Director or designee may utilize the investment advisor's approved
broker/dealer list in lieu of the City's own approved list. The advisor must submit the
approved list to the City annually and provide updates throughout the year as they occur.
The advisor must maintain documentation of appropriate license and professional
credentials of broker/dealers on the list. The annual investment advisor broker/dealer
review procedures include:
City of Tukwila Investment Policy 2025 Page 8 of 18
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i. FINRA Certification check
- Firm Profile
- Firm History
- Firm Operations
- Disclosures of Arbitration Awards, Disciplinary and Regulatory Events
- State Registration Verification
ii. Financial review of acceptable FINRA capital requirements or letter of credit for
clearing settlements.
The advisor may be authorized through the contracted agreement to open accounts on
behalf of the City with the broker/dealers on the approved broker/dealer list. The City will
receive documentation directly from the brokers for account verification and regulatory
requirements.
C. Depositories
The City will only place funds exceeding the current FDIC insurance limits with banks
who are currently participating in the Washington State PDPC program.
Compliance/listing with the PDPC will be verified by the Finance Director or designee
annually.
D. Competitive Transactions
Transactions must be executed on a competitive basis and documented, excluding
securities and interfund loans issued by the City of Tukwila. Competitive prices should be
provided from at least three separate brokers, financial institutions or through a national
electronic trading platform. If the purchased security is only offered by one broker, then
other securities with similar structure may be used for documentation purposes. If an
Advisor handles trade executions, then they must provide the competitive documentation
as requested.
9. Authorized and Suitable Investments
A. Authorized Investments
All investments of the City are limited by RCW, principally RCW 35A.40.050 and
39.59.020.
Additional Specifications:
• This policy recognizes S&P, Moody's and Fitch as the major Nationally Recognized
Statistical Ratings Organizations (NRSRO).
• Minimum credit ratings and percentage limitations apply to the time of purchase.
• All securities must be purchased on the secondary market and may not be purchased
directly from the issuer.
• Securities rated in the broad single -A category with a negative outlook may not be
purchased. Portfolio holdings of corporate notes downgraded to below single A and
portfolio holdings of securities rated single A with their outlooks changed to negative
may continue to be held. No additional purchases are permitted.
City of Tukwila Investment Policy 2025 Page 9 of 18
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B. Suitable Investments
U. S Treasury Obligations: Direct obligations of the United States Treasury.
US Agency Obligations: US Government Agency Obligations and US Government
Sponsored Enterprises (GSEs) which may include, but are not limited to the following:
Federal Farm Credit Banks Funding Corporation (FFCB), Federal Home Loan Bank
(FHLB), Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage
Corporation (FHLMC), and Tennessee Valley Authority (TVA).
Supranational Bonds: United States dollar denominated bonds, notes or other
obligations that are issued or guaranteed by supranational institutions, provided, that at
the time of investment, the institution has the United States as its largest shareholder.
These include: International Bank for Reconstruction and Development (IBRD or World
Bank); the International Finance Corporation (IFC); the Asian Development Bank (ADB)
and the Inter -American Development Bank (IADB).
Municipal Debt Obligations: Bonds of the State of Washington, any local government in
the State of Washington, General Obligation bonds outside the State of Washington; at
the time of investment the bonds must have one of the three highest credit ratings of a
nationally recognized rating agency. Debt of the City of Tukwila is not required to be rated.
Corporate Notes: Unsecured debt obligations purchased in accordance with the
investment policies and procedures adopted by the State Investment Board. Corporate
notes must be rated at least weak single A (A-) or better by all the major rating agencies
that rate the note at the time of purchase for inclusion in the corporate note portfolio. The
maturity must not exceed 5.5 years and the maximum duration of the corporate note
portfolio cannot exceed 3 years. The percentage of corporate notes that may be
purchased from any single issuer rated AA- or better by all major rating agencies that rate
the note is 3% of the assets of the total portfolio. The percentage of corporate notes that
may be purchased from any single issuer rated in the broad single A (A-) category from
all the major rating agencies that rate the security is 2% of the total portfolio. The individual
country limit of non-U.S. and non -Canadian exposure is 2% of the total portfolio. The
exposure is determined by the country of domicile of the issuers of portfolio securities.
Commercial Paper: Commercial paper must be rated with the highest short-term credit
rating category of any two major Nationally Recognized Statistical Rating Organizations
(NRSROs) at the time of purchase. If the commercial paper is rated by more than two
major NRSROs, it must have the highest rating from all of them. Commercial paper
holdings may not have maturities exceeding 270 days. Any commercial paper purchased
with a maturity longer than 100 days must also have an underlying long-term credit rating
at the time of purchase in one of the three highest rating categories of an NRSRO. The
percentage of commercial paper that may be purchased from any one issuer is 3% of the
market value of the total portfolio. Issuer constraints will apply to the combined holdings
of corporate notes and commercial paper holdings.
Certificates of Deposit: Non-negotiable Certificates of Deposit of financial institutions
which are qualified public depositories as defined by RCW 39.58.010(2) and in
accordance with the restrictions therein.
City of Tukwila Investment Policy 2025 Page 10 of 18
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Bank Time Deposits and Savings Accounts: Deposits in PDPC approved banks.
Local Government Investment Pool: Investment Pool managed by the Washington
State Treasury Office.
C. Bank Collateralization
The PDPC makes and enforces regulations and administers a program to ensure public
funds deposited in banks and thrifts are protected if a financial institution becomes
insolvent. The PDPC approves which banks and thrifts can hold state and local
government deposits and monitors collateral pledged to secure uninsured public deposits.
Under the act, all public treasurers and other custodians of public funds are relieved of the
responsibility of executing tri-party agreements, reviewing pledged securities, and
authorizing additions, withdrawals, and exchanges of collateral.
D. Prohibited Investments
i. The City shall not lend securities nor directly participate in a securities lending or
reverse repurchase program.
ii. The City shall not invest in mortgage -backed securities.
iii. The City shall not invest in Equities
iv. The City shall not invest in Cryptocurrency
City of Tukwila Investment Policy 2025 Page 11 of 18
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10. Investment Parameters
A. Diversification
The City will diversify the investment of all funds by adhering to the constraints listed in
the following table. Investments in securities shall not exceed the following percentages
of the total portfolio at the time of purchase.
Total Portfolio Diversification Constraints
Ratings, S&P,
Issue Type Maximum % Maximum % Moody's, or Maximum
Holdings per Issuer Equivalent Maturity
NR SRO
USTreasuryObligations 100% None N/A 10years
USAgencyObligations 100% 35% N/A 10years
SupranationalAgency Notes 10% 5% AA-/Az3 10years
Municipal Bonds (GO Outside WA 30% 5% A-/A3 Short Term 10 years
City of Tukwila Debt Obligations 15% None N/A N/A
3%for AA-
2% for A-,
Corporate Notes 25% AA+ A-/A3ShortTerm 5.5year
A1{1 Long Term A -
Commercial Paper 25% 3% /A3 270 days
Deposits in
PDPC a pproved
Bank Time Deposits/Savings 20% 10% banks N/A
Deposits in
PDPC a pproved
Certificates of Deposit 25% 10% banks 5years
State LGIP 100% None N/A N/a
Issuer constraints apply to the combined issues in corporate and commercial paper holdings.
Sort Term Ratings: Moody's - P1MIG1/VMIG1, S&P - A-1/SP-1, Fitch - F1
Note: Individual country limit of non-US/non-Canadian exposure is 2%oftotal portfolio
B. Investment Maturity
i. Liquidity Funds — Tier 1
City of Tukwila Investment Policy 2025
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Page 12 of 18
Liquidity funds will be defined as those funds that are in the State LGIP City, bank
deposits, bank certificates of deposits or money market instruments and will be
available for immediate use.
ii. Investment Core Funds — Tier 2
Investment funds will be defined as the funds in excess of liquidity requirements and
invested in authorized investments and maturity structure listed below.
iii. Total Portfolio Maturity Constraints:
Maturity Constraints
Minimum % of
Total Portfolio
Under 30 days
10%
Under 1 year
25%
Under 5 years
90%
Under 10 years
100%
Maturity Constraints
Total Portfolio
Maximum
Weighted Average Maturity
2.0 years
Duration of Corporate Note Portfolio
3.0 years
Security Structure Constraint
Maximum % of
Total Portfolio
Callable Agency Securities
25%
C. Strategic Philosophy
The primary investment philosophy of the City is to match investment maturities with
expected cash outflows. Securities shall generally be held until maturity, with the following
exceptions:
i. A security with a declining credit may be sold early to protect the principal value
of the portfolio.
ii. The portfolio duration or maturity buckets should be adjusted to better reflect
the structure of the underlying benchmark portfolio.
iii. A security exchange that would improve the quality, yield and target maturity
of the portfolio based on market conditions.
iv. A sell of a security to provide for unforeseen liquidity needs.
City of Tukwila Investment Policy 2025 Page 13 of 18
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11. Reporting Requirements
A. Reporting
The Finance Director or designee shall be responsible for investment reporting. At a
minimum, monthly reporting (RCW 35.39.032) shall be made available providing detailed
information on the investment portfolio.
Specific Requirements:
• Book Yield
• Holdings Report including mark to market and security description
• Transactions Report
• Weighted Average Maturity or Duration
B. Performance Standards/Evaluation
i. The portfolio shall be managed to obtain a fair rate of return and earnings rate that
incorporates the primary objectives of protecting the City's capital and assuring
adequate liquidity to meet cash flow needs.
ii. The investment portfolio will be invested into a predetermined structure that will be
measured against a selected benchmark portfolio. The structure will be based upon a
chosen minimum and maximum duration (average maturity) and will have the objective
to achieve market rates of returns over long investment horizons. The purpose of a
benchmark is to appropriately manage the risk in the portfolio through interest rate
cycles. The investment portfolio is expected to provide similar returns to the
benchmark over interest rate cycles but may underperform or outperform in certain
periods. The portfolio will be positioned to first protect principal and then achieve
market rates of return. The benchmark used will be the US treasury 0-3-year index or
US treasury 0-5-year index and comparisons will be calculated monthly and reported
quarterly.
iii. The liquidity component yield will be compared quarterly to the LGIP average yield.
C. Compliance Report
A quarterly compliance report will be generated comparing the portfolio positions to this
investment policy.
The Investment Policy sets forth concentration constraints and minimum credit ratings for
each type of security. These limits apply to the initial purchase of a security and do not
automatically trigger the sale of a security as the portfolio value fluctuates or in the event
of credit rating downgrade. Due to fluctuations in the aggregate surplus funds balance,
maximum percentages for a particular issuer or investment type may be exceeded at a
point in time. Securities need not be liquidated to realign the portfolio; however,
consideration should be given to this matter when future purchases are made to ensure
that appropriate diversification is maintained.
City of Tukwila Investment Policy 2025 Page 14 of 18
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D. Accounting Method
The City shall comply with all required legal provisions and Generally Accepted
Accounting Principles (GAAP). The accounting principles are those contained in the
pronouncements of authoritative bodies including, but not necessarily limited to, the
Governmental Accounting Standards Board (GASB).
Pooling of Funds: Except for cash in certain restricted and special funds, the City will
consolidate balances from all funds to maximize investment earnings. Investment income
will be allocated to the various funds based on their respective participation in the
investment program and in accordance with generally accepted accounting principles.
12. Policy Adoption
The City's Investment Policy shall be adopted by the City Council and reviewed by the Council
Finance Committed as needed but not less than every two years. This Policy has been adopted
by the City Council on , 2025.
City of Tukwila Investment Policy 2025 Page 15 of 18
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Glossary of Terms
Agency Securities: Government sponsored enterprises of the US Government.
Bankers Acceptances: A time draft accepted (endorsed) by a bank or trust company. The
accepting institution guarantees payment of the bill, as well as the issuer. BAs are short-term
non -interest -bearing notes sold at a discount and redeemed by the accepting bank at maturity for
full face value.
Bond: An interest -bearing security issued by a corporation, government, governmental agency,
or other body. It is a form of debt with an interest rate, maturity, and face value, and specific
assets sometimes secure it. Most bonds have a maturity of greater than one year and generally
pay interest semiannually. See Debenture.
Broker: An intermediary who brings buyers and sellers together and handles their orders,
generally charging a commission for this service. In contrast to a principal or a dealer, the broker
does not own or take a position in securities.
Collateral: Securities or other property that a borrower pledges as security for the repayment of
a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
Commercial Paper: Short-term, unsecured, negotiable promissory notes issued by
corporations.
Current Maturity: The amount of time left until an obligation matures. For example, a one-year
bill issued nine months ago has a current maturity of three months.
CUSIP: A CUSIP number identifies securities. CUSIP stands for Committee on Uniform Security
Identification Procedures, which was established under the auspices of the American Bankers
Association to develop a uniform method of identifying municipal, U.S. government, and corporate
securities.
Dealer: An individual or firm that ordinarily acts as a principal in security transactions. Typically,
dealers buy for their own account and sell to a customer from their inventory. The dealer's profit
is determined by the difference between the price paid and the price received.
Debenture: Unsecured debt backed only by the integrity of the borrower, not by collateral, and
documented by an agreement called an indenture.
Delivery: Either of two methods of delivering securities: delivery vs. payment and delivery vs.
receipt (also called "free"). Delivery vs. payment is delivery of securities with an exchange of
money for the securities.
Duration: A measure used to calculate the price sensitivity of a bond or portfolio of bonds to
changes in interest rates. This equals the sum of the present value of future cash flows.
Full Faith and Credit: Indicator that the unconditional guarantee of the United States government
backs the repayment of a debt.
General Obligation Bonds (GOs): Bonds secured by the pledge of the municipal issuer's full
faith and credit, which usually includes unlimited taxing power.
Government Bonds: Securities issued by the federal government; they are obligations of the
U.S. Treasury; also known as "governments."
Interest: Compensation paid or to be paid for the use of money. The rate of interest is generally
expressed as an annual percentage.
Investment Funds: Core funds are defined as operating fund balance, which exceeds the City's
daily liquidity needs. Core funds are invested out the yield curve to diversify maturity structure in
City of Tukwila Investment Policy 2025 Page 16 of 18
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the overall portfolio. Having longer term investments in a portfolio will stabilize the overall portfolio
interest earnings over interest rate cycles.
Investment Securities: Securities purchased for an investment portfolio, as opposed to those
purchased for resale to customers.
Liquidity: The ease at which a security can be bought or sold (converted to cash) in the market.
A large number of buyers and sellers and a high volume of trading activity are important
components of liquidity.
Liquidity Component: A percentage of the total portfolio that is dedicated to providing liquidity
needs for the City.
LGIP: Local Government Investment Pool run by the State of Washington Treasurer's office
established to help cities with short term investments.
Mark to Market: Adjustment of an account or portfolio to reflect actual market price rather than
book price, purchase price or some other valuation.
Municipals: Securities, usually bonds, issued by a state, its agencies, by cities or other municipal
entities. The interest on "munis" is usually exempt from federal income taxes and state and local
income taxes in the state of issuance. Municipal securities may or may not be backed by the
issuing agency's taxation powers.
Par Value: The value of a security expressed as a specific dollar amount marked on the face of
the security or the amount of money due at maturity. Par value should not be confused with
market value.
Portfolio: A collection of securities held by an individual or institution.
Prudent Person Rule: A long-standing common-law rule that requires a trustee who is investing
for another to behave in the same way as a prudent individual of reasonable discretion and
intelligence who is seeking a reasonable income and preservation of capital.
Quotation or Quote: A bid to buy or the lowest offer to sell a security in any market at a particular
time.
Repurchase Agreement: Range in maturity from overnight to fixed time to open end. Repos
involve a simultaneous sale of securities by a bank or government securities dealer to an investor
with an agreement for the bank or government securities dealer to repurchase the securities at a
fixed date at a specified rate of interest.
Treasury Bill (T-Bill): An obligation of the U.S. government with a maturity of one year or less.
T-bills bear no interest but are sold at a discount.
Treasury Bonds and Notes: Obligations of the U.S. government that bear interest. Notes have
maturities of one to ten years; bonds have longer maturities.
Yield: The annual rate of return on an investment, expressed as a percentage of the investment.
Income yield is obtained by dividing the current dollar income by the current market price for the
security. Net yield, or yield to maturity, is the current income yield minus any premium above par
or plus any discount from par in the purchase price, with the adjustment spread over the period
from the date of purchase to the date of maturity of the bond.
Yield to Maturity: The average annual yield on a security, assuming it is held to maturity; equals
to the rate at which all principal and interest payments would be discounted to produce a present
value equal to the purchase price of the bond.
City of Tukwila Investment Policy 2025 Page 17 of 18
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Ratings Table — Long -Term
Three Highest
Rating
Categories
S&P
Moody's
Fitch
Definition
AAA
Aaa
AAA
Highest credit quality
AA+, AA, AA-
Aa1, Aa2, Aa3
AA+, AA, AA-
Very high credit quality
A+, A, A-
Al, A2, A3
A+, A, A-
High credit quality
BBB+, BBB, BBB-
Baal, Baa2, Baa3
BBB+, BBB, BBB-
Good credit quality
BB+, BB, BB-
Bal, Ba2, Ba3
BB+, BB, BB-
Non -investment grade
Ratings Table — Short -Term
Highest Rating
Category
S&P
Moody's
Fitch
Definition
Al+, Al
P1+, P1
F1+, F1
Highest credit quality
Municipal Commercial Paper
A-1, A-1+, SP-1+, SP-1
P1, MIG1, VMIG1
F1+, F1
Highest credit quality
City of Tukwila Investment Policy 2025 Page 18 of 18
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Attachment B
DRAFT
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING A DEBT POLICY;
AND REPEALING RESOLUTION NO. 1840
WHEREAS, on September 2, 2014, the City Council adopted Resolution No. 1840
adopting a debt policy; and
WHEREAS, a debt policy and appropriate management of debt issued by the City is
an important factor in measuring the City's financial performance and condition; and
WHEREAS, the proper management of borrowing can yield significant advantages;
and
WHEREAS, debt issuance planning with the City's Capital Improvement Program
(CIP), will ensure alignment between financing strategies and long-term capital priorities;
and
WHEREAS, the use of long-term debt for operating or maintenance costs, except in
declared emergencies authorized by the City Council, promotes fiscal discipline and
responsible debt management; and
WHEREAS, clear delineation of the roles and responsibilities of the City Council and
Finance Director, including authority over interfund loans, delegation of bond issuance
approvals, and oversight of post -issuance compliance activities, will ensure appropriate
checks and balances; and
WHEREAS, expanding the range of eligible financing tools and debt instruments,
including interfund loans, state and federal loan programs, and other legal financing
contracts, provides the City with greater flexibility and cost-effective funding options; and
WHEREAS, enhancing compliance with federal and state laws by establishing
comprehensive procedures for continuing disclosure, arbitrage rebate monitoring, and
Legislation: Debt Policy
Version: 6/16/2025
Staff: T. Cullerton
Page 1 of 2
23
post -issuance compliance with IRS and SEC regulations, thereby safeguards the City's
credit standing and legal obligations.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Repealer. Resolution No. 1840 is hereby repealed.
Section 2. Findings Incorporated and Adoption. The above "whereas" recitals are
adopted as findings in support of this resolution, and the City of Tukwila Debt Policy
attached hereto as Exhibit A is adopted.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2025.
ATTEST/AUTHENTICATED:
Andy Youn-Barnett, CMC, City Clerk Tosh Sharp, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Office of the City Attorney
Attachment: Exhibit A— City of Tukwila Debt Policy - 2025
Legislation: Debt Policy
Version: 6/16/2025
Staff: T. Cullerton
Page 2of2
24
CITY OF TUKWILA
DEBT POLICY
ADOPTED [DATE]
City of Tukwila Debt Policy Page 1 of 10
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TABLE OF CONTENTS
SECTION I. INTRODUCTION 3
SECTION II. GOVERNING PRINCIPLES 3
SECTION III. ROLES AND RESPONSIBILITIES 4
SECTION IV. PROFESSIONAL SERVICES 5
SECTION V. TRANSACTION -SPECIFIC POLICIES 6
SECTION VI. COMPLIANCE POLICIES 9
SECTION VII. OTHER POLICIES 10
City of Tukwila Debt Policy Page 2 of 10
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Section I. Introduction
Purpose and Overview
The objective of this policy is to provide general guidance for the issuance and management of all City of
Tukwila (the City) debt. Further, this policy establishes criteria to protect the City's financial integrity while
providing a mechanism to fund the City's capital needs prudently and cost effectively. Adherence to this
policy is essential to ensure that the City Council (Council) maintains a debt position which allows the
Council to protect the City, its functionality, and the credit quality of its obligations.
The City's Finance Department is charged with ensuring compliance with all debt policy requirements.
Capital Planning
The City shall integrate its debt issuance with its Capital Improvement Program (referred to herein as CIP
or Capital Facilities Plan) spending to ensure that planned financing conforms to policy targets regarding
the level and composition of outstanding debt. This planning considers the long-term horizon, paying
particular attention to financing priorities, capital outlays and competing projects.
Long-term borrowing shall be confined to the acquisition and/or construction of capital improvements
and shall not be used to fund operating or maintenance costs. The issuance of debt to fund operating
deficits is not permitted except in emergencies as adopted by formal action by the City Council. For all
capital projects under consideration, the City shall budget and set aside sufficient revenue from
operations to fund ongoing maintenance needs and to provide reserves for periodic replacement and
renewal. The source of funds for the project should reflect the intended use of bond financing.
Section II. Governing Principles
In the issuance and management of debt, the City shall comply with the State of Washington (State)
constitution and with all other legal requirements imposed by federal, State, and local rules and
regulations, as applicable. The following section highlights the legal framework for debt issuance.
Governing Law
State Statutes. The City issues debt in accordance with the Revised Code of Washington (RCW), in
particular chapters 39.36, 39.46, and 39.53, the State constitution along with all other City, State, and
federal laws, rules, and regulations.
Federal Rules and Regulations. The City shall issue and manage debt in accordance with the limitations
and constraints imposed by federal rules and regulations, including but not limited to, Internal Revenue
Code of 1986, as amended, and Treasury Department Regulations thereunder (Tax Law), and the
Securities Acts of 1933 and 1934 (Securities Law).
Local Rules and Regulations. The City shall issue and sell debt in accordance with the limitations and
constraints imposed by the Tukwila Municipal Code (TMC), including but not limited to Title 3 (Revenue
and Finance) and City ordinances, resolutions, policies, procedures, and bond covenants.
City of Tukwila Debt Policy Page 3 of 10
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Legal Debt Limits for GO Debt
State law (RCW 39.36.020) allows for the issuance of general obligation (GO) debt, through a public vote,
of up to 7.5% of the City's assessed property valuation. The limit of 7.5% of assessed valuation for GO
debt is divided between three different use types: 1) 2.5% for municipally owned water, sewer, or electric
facilities; 2) 2.5% for open space and parks; and 3) 2.5% for general government purposes. Within the
2.5% limit for general government purposes, State law allows the Council to issue debt without a vote of
the people. This non -voted debt (also called councilmanic debt) cannot be greater than 1.5% of the
assessed property valuation of the City.
Section III. Roles and Responsibilities
Responsibilities of City Council
• Approve this policy and any updates/changes to this policy to help ensure compliance with all
applicable rules and regulations for debt issuance.
• Approve projects to be financed as part of the City Capital Facilities Plan.
• Adopt an ordinance authorizing the issuance and sale of debt, and, as applicable, setting forth the
delegation requirements provided for in RCW 39.46.040 when appointing a designated
representative, the City Finance Director or their designee, to approve the final terms of the debt.
• Approve budgets sufficient to provide for the timely payment of principal and interest on all debt.
Responsibilities of the Finance Director
• Apply and promote prudent fiscal practices.
• Oversee any debt issuance including sale of bonds and review and approval of disclosure
documents.
• Approve the issuance of debt at the lowest acceptable cost and risk within the parameters
authorized by City Council in the bond ordinance.
• Provide for the timely payment of principal and interest payment on all debt and ensure the fiscal
agent receives funds for payment of debt service on or prior to the payment date.
• Ensure compliance with all Tax Laws, Securities Laws, contractual requirements, and other rules
and regulations governing the issuance of debt.
• Ensure compliance with all terms, conditions, post -issuance requirements, and Tax Law
requirements imposed by law and/or the legal documents governing the debt issued.
• Ensure any annual disclosure reports and notices regarding the occurrence of certain events are
timely posted to the EMMA (Electronic Municipal Market Access) system in accordance with
continuing disclosure undertakings of the City pursuant to Securities Law.
• Maintain records for all outstanding debt.
• Oversee all aspects of debt management.
• Solicit and select professional services providers as necessary, to administer debt financing.
• Consult with the City's contracted municipal advisor to determine the method of sale best suited
for each issue of debt (competitive sale, negotiated sale, or bank/direct placement).
• Select the manner of sale of debt.
• Monitor opportunities to refund debt and recommend such refunding as appropriate.
City of Tukwila Debt Policy Page 4 of 10
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• Provide pertinent information to credit rating agencies when issuing debt and as routine credit
reviews occur.
IV. Professional Services
The City's Finance Director will be responsible for the solicitation and selection of professional services as
necessary to administer the City's debt program. Professional service providers necessary to issue debt
may include, but are not limited to bond counsel, disclosure counsel (which may be bond counsel),
municipal advisor, underwriters, banks, rating agencies, and fiscal agent. Selection of the service providers
will consider availability, professional knowledge, accountability, cost, as well as successful partnerships
in previous debt issuances. The City will issue debt considering cost and associated risk.
Professional Service Providers
Bond Counsel — Debt issued by the City will generally include a written opinion by bond counsel affirming
that the City is legally authorized to issue the proposed debt. The opinion shall provide that the obligation
is legal, valid and binding, and enforceable against the City. In the case of tax exempt financing, the legal
opinion will address the treatment of interest for purposes of Tax Law.
Municipal Advisor — A Municipal Advisor may be used to assist in the issuance of the City's debt. The
Municipal Advisor will provide the City with objective advice and analysis on debt issuance. This includes,
but is not limited to, coordinating of finance team, monitoring of market opportunities, structuring and
pricing of debt, competitive sale execution, and reviewing the preliminary and final official statements.
Disclosure Counsel - The Disclosure Counsel (which may be bond counsel) plays a critical role in ensuring
that the City's preliminary and final official statements comply with Securities Laws and disclosure
requirements. Disclosure Counsel provides legal guidance on the accuracy, completeness, and
transparency of the information presented to investors, helping to mitigate the risk of material
misstatements or omissions. Working closely with the City's finance team, bond counsel, and municipal
advisor, Disclosure Counsel reviews financial and operational disclosures, drafts legal sections of the
official statements, and provides legal advice in connection with the City's obligations under SEC Rule
15c2-12 and other applicable regulations. Their expertise helps protect the City from potential legal and
regulatory risks while maintaining investor confidence in the bond issuance process.
Underwriters — An Underwriter will be selected in advance for all debt issued in a negotiated sale method.
The Underwriter is responsible for purchasing debt and reselling the debt to investors.
Arbitrage Rebate Consultant — As necessary, the City may engage with an arbitrage rebate consultant to
ensure the City is compliant with Tax Law on tax-exempt bonds by calculating potential arbitrage rebate
liabilities. The consultant will analyze investment earnings, determine rebate amounts owed under IRS
Code 148(f), and assist with documentation, deadlines, and best practices to minimize exposure and avoid
penalties.
City of Tukwila Debt Policy Page 5 of 10
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Fiscal Agent —A fiscal agent may be used to provide accurate and timely securities processing and payment
to bondholders. As provided under RCW 43.80, the City will work with the Fiscal Agent that is determined
by the State.
Section V. Transaction -Specific Policies
For any City project planned to be funded through debt, an analysis will be done to consider: (a) other
potential ways to finance the project; (b) future operating and maintenance costs, including debt
repayment; (c) expected cash inflows that could help offset the amount borrowed; and (d) anticipated
cash outflows for construction or equipment to ensure compliance with arbitrage rules.
Method of Sale
The Finance Director, in consultation with the City's municipal advisor, will determine the method of sale
best suited for each issue of debt (competitive sale, negotiated sale, or bank/direct placement). The type
of debt to be issued and manners of the sale will be submitted to the City Council for approval in the bond
ordinance. The bond ordinance will authorize the issuance and sale of debt, and, as applicable, set forth
the delegation requirements provided for in RCW 39.46.040 when appointing a designated
representative, the City Finance Director or their designee, to approve the final terms of the debt.
Bond Insurance
For each issue, the City, in conjunction with its municipal advisor, will evaluate the costs and benefits of
bond insurance or other credit enhancements. Any credit enhancement purchases by the City must be
competitively procured in a manner deemed reasonable by the City Finance Director.
Bond Ballot Measures
Prior to any unlimited tax general obligation bond (described below) proposition being placed before the
voters, the capital project under consideration must, unless otherwise justified and have found to be in
the best interest of the City, have been included in the City's Capital Facilities Plan. The source of funds
for the project should reflect the intended use of bond financing.
Investor and Rating Agency Relations
The City will maintain good communications with bond rating agencies and investors about its fiscal
condition. The City will provide full, accurate and complete disclosure on financial reports and in disclosure
documents to comply with the anti -fraud requirements of Securities Laws.
Short-term debt
The City may use short-term debt, defined as a period not to exceed three years, to fund cash flow needs,
which may be caused by a delay in receipting tax revenues or issuing long-term debt. The City will not
issue short-term debt for current operations, except in the event of an emergency.
The City may issue interfund loans rather than issuing outside debt to meet short-term cash flow needs.
The issuance of an interfund loan will be permissible only after an analysis of the loaning fund(s) indicate(s)
that excess funds are available, and the use of these funds will not impact the loaning fund(s) current
City of Tukwila Debt Policy Page 6 of 10
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operations or constitute a permanent diversion of funds. All interfund borrowing will bear interest based
upon at least the prevailing LGIP (Local Government Investment Pool) rate.
Council authorizes the City's Finance Director to approve short-term interfund loans for a period not to
exceed three calendar months and the City Administrator to approve short-term interfund loans for a
period not to exceed 12 calendar months. See long-term debt section below for policy on loans exceeding
12 calendar months. The Finance Director shall notify the Finance & Governance Committee and/or City
Council of any use of directorial or administrator approved interfund loans at the first reasonable
opportunity.
Interfund loans are not considered "debt" for purposes of State law, Securities Law, or Tax Law.
Long-term debt
The City will issue long-term debt, defined as a period greater than three years, for capital projects which
cannot reasonably be financed on a pay-as-you-go funding strategy from anticipated cash flows.
Acceptable uses of bond proceeds are one-time capital projects that can be capitalized and depreciated
in accordance with the City's accounting principles. (Refunding debt is also an acceptable use. See
refunding debt section below.)
The City Council may issue long-term interfund loans rather than issuing outside debt instruments as a
means of financing capital improvements. The issuance of an interfund loan will be permissible only after
an analysis of the loaning fund(s) indicate that excess funds are available, and the use of these funds will
not impact the loaning fund(s) current operations or constitute a permanent diversion of funds. All
interfund borrowing will bear interest based upon at least the prevailing LGIP (Local Government
Investment Pool) rate.
The decision to use an interfund loan rather than outside debt to fund capital projects will be based on
which is deemed to be the most cost-effective approach to meet City capital needs. The City's Finance
Department is responsible for making such an assessment. Interfund loans are not considered "debt" for
purposes of State law, Securities Law, or Tax Law.
The City will not issue long-term debt for current operational needs, except in the event of an emergency.
Types of long-term debt the City may issue:
Limited Tax General Obligation (LTGO) Bonds: LTGO debt is secured by a pledge of the full faith and credit
of the City and is payable from regular property taxes and other legally available funds. These bonds can
be issued without a vote of registered voters but are limited in that debt service payments must be paid
from legally available City revenue sources. The amount of LTGO outstanding debt cannot exceed the
threshold stated above.
Unlimited Tax General Obligation (UTGO) Bonds: UTGO debt is secured by a pledge of the full faith and
credit of the City and is payable from excess property taxes and other legally available funds. These bonds
can only be issued when authorized by a 60% majority vote of registered voters (meeting the minimum
voter turnout requirement). As part of the ballot proposition, voters will approve the issuance of the UTGO
debt and an excess property tax levy, as a completely new and dedicated source of revenue, to pay the
debt service. The amount of UTGO debt cannot exceed the thresholds stated above. Proceeds of UTGO
debt are limited to capital purposes only and not the replacement of equipment.
City of Tukwila Debt Policy Page 7 of 10
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Revenue Bonds: Revenue bonds are used to finance construction of and/or improvements to facilities of
enterprise systems operated by the City in accordance with the Capital Facilities Plan and are payable
from and secured by a pledge of revenue of the enterprise. No taxing power or general fund pledge is
provided as security, with the exception of double -barrel bonds. Double -barrel bonds are a type of
municipal bond that are backed by enterprise funds and the full faith and credit of the City. Unlike general
obligation bonds, revenue bonds are not subject to the City's statutory debt limitation nor is voter
approval required. Revenue bonds may contain certain covenants and obligations of the City, including
but not limited to, future parity bond tests, annual debt service coverage requirements, restrictions on
disposal of the enterprise facility/utility, and other terms to protect the stream of revenue pledged to the
repayment of the revenue bonds.
Reserve accounts may be created on a transaction -by -transaction basis. Any reserve account created shall
be maintained and funded as required by bond ordinances and as deemed advisable by the City Council
or the designated representative on behalf of the City. The City shall structure any debt service reserve
fund to not violate the Tax Code.
The City will strive for annual revenue bond debt coverage of at least 1.5 times the annual debt service
paid in such year. Additional bonds issued may be subject to additional bonds tests as described in bond
ordinances.
Special Assessment Bonds: Also referred to as Local Improvement District (LID) bonds, this type of debt is
used to finance capital improvements that benefit property owners within the LID. LID debt is repaid from
annual assessments paid to the City by property owners within the LID. LIDs are formed by City Council
following the process outlined in State statutes and chapter 13.04 TMC. The cost is borne only by those
who receive a special benefit from the improvements. LID debt is not part of the debt capacity calculation.
Other Debt Instruments: Instruments such as Public Works Trust Fund loans or other financing contracts
issued through the State of Washington, federal grant loans, bond anticipation notes (BAN), tax
anticipation notes (TAN), bank loans, and/or other legal debt issues may be incurred as allowed by law.
Refunding Debt
Refunding debt may be issued by the City in accordance with chapter 39.53 RCW. Refunding debt is
typically issued to take advantage of lower interest rates for overall cost savings, restructure debt, or
modify bond covenants. Refunding bonds are an acceptable use of bond proceeds provided that, and
unless otherwise justified and found to be in the best interest of the City, a) the net present value (NPV)
of the overall savings (not by maturity) is at least 3% and b) the final maturity date of the obligation is not
extended.
Other Considerations
The following terms shall be applied to the City's debt transactions, as appropriate. Individual terms may
change as dictated by the marketplace or the unique qualities of the transaction.
City of Tukwila Debt Policy Page 8 of 10
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• Maturity —The City shall issue debt with an average life less than or equal to the average life of
the assets being financed. Unless otherwise stated in law, the final maturity of the debt shall be
no longer than 40 years (RCW 39.46.110).
• Debt Service Structure — Unless otherwise justified, debt service should be structured on a level
basis (i.e., level annual payments). Refunding bonds should be structured to produce equal
savings by fiscal year. Unless otherwise justified, debt shall not have capitalized interest. If
appropriate, debt service reserve funds may be used for revenue bonds.
• Price Structure — The City's long-term debt may include par, discount, and premium bonds. Call
Provisions — For each transaction, the City shall evaluate the costs and benefits of call provisions.
In general, the City shall opt for a call date no later than 10 %2 years from the date of the bonds.
• Tax -exemption — Unless otherwise justified and deemed necessary, the City shall issue its debt on
a tax-exempt basis.
• Reimbursement declaration — Must be made prior to bond issuance if the City intends to be
reimbursed out of tax exempt bond proceeds for capital costs paid prior to the closing date.
• The City will not use derivatives in connection with any new financings.
• The City will not become obligated for any new City debt or otherwise be involved in any new
financing that would include a variable rate of interest or variable debt service (excluding of any
additional rent payable under a financing lease or other obligation for ongoing transaction fees).
Section VI. Compliance Policies
The City will comply with all federal, State, contractual restrictions and City policies regarding the
investment of bond proceeds and associated funds subject to debt -related investment limitations. Such
requirements may include restrictions on the type of securities allowed the yield on such securities, and
the length of time that such proceeds and funds may be invested.
For refunding escrows, the City may invest funds in State and Local Government Series (SLGS) securities
issued by the U.S. Treasury, or, after satisfying requirements of Tax Law and if determined advisable after
consultation with the City's municipal advisor and bond counsel, in open -market securities as permitted
under State law and relevant bond covenants.
The City will maintain a system for tracking bond proceeds, including how proceeds are invested, when
they are spent, and for what purpose. Bond proceeds shall, unless otherwise permitted, be tracked
separately from other City funds and on an issue by issue basis.
The City shall maintain records related to the bonds for the life of the bonds (plus any refunding bonds)
plus three years.
The City will, unless otherwise permitted, spend at least 85% of tax-exempt bond proceeds within three
years from the date of issuance pursuant to Tax Law, and take such steps as necessary to avoid or manage
arbitrage. The City will maintain a system of recordkeeping and reporting to meet the arbitrage rebate
compliance requirement of the IRS (Internal Revenue Service, IRC 148) regulation. For each bond issue,
the recordkeeping will include tracking the yield and investment earnings on bond proceeds, calculating
rebate payments, and remitting any rebate earnings to the federal government in a timely manner to
preserve the tax-exempt status of the outstanding debt obligation. Any bond proceeds invested will
comply with the City's investment policy and strategies, unless further restricted by bond covenant. The
City of Tukwila Debt Policy Page 9 of 10
33
City may, when determined to be in the best interest of the City or required, contract with an arbitrage
rebate consultant to assist with the arbitrage rebate calculation.
The City will repay principal plus interest in accordance with the payment terms of the bond or contract.
Furthermore, the City will comply with all bond or contract covenants. This includes, but is not limited to,
any undertakings to provide ongoing disclosure and notice of certain listed events under Securities Laws.
Annual disclosure will take the form of the City's audited annual financial statements as well as other
information required by the bond or contract that is not reasonably contained in the annual report. The
City Finance Director will develop and comply with all post -issuance compliance policies and procedures
related to Tax Law and policies and procedures relating to initial and ongoing disclosure under Securities
Laws.
The Finance Director and bond counsel will coordinate their activities and review all debt issuance to
ensure that all securities are issued in compliance with State and federal legal and regulatory
requirements by the State law, Tax Law, Securities Law, rules and regulations.
The Finance Director may institute procedures to implement this policy and other bond covenants and
provisions related to State law, Tax Law, Securities Law, rules and regulations applicable to the City's debt.
No derivative products shall be used in connection with City debt.
Section VII. Other Policies
Periodic Review
This debt policy must be adopted by Council. The policy will be reviewed at least every four years by the
Finance Department and modifications must be submitted to and approved by the Council.
City of Tukwila Debt Policy Page 10 of 10
34
City of Tukwila
Tom McLeod, Mayor
Finance Department
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
CC: Mayor McLeod
FROM: Tony Cullerton, Deputy Finance Director
DATE: June 23, 2025
SUBJECT: May 2025 Financial Report
Financial Overview Through May 2025
As of the end of May 2025, we have completed 41.7% of the fiscal year. Overall, the City's financial position
remains stable, with both General Fund revenues and expenditures tracking close to expectations. General
Fund revenues are at 45.1% of the annual budget, while expenditures are slightly lower at 40.2%. These
levels suggest the City is on track to meet its annual financial targets, although there are some notable
variances compared to the prior year that warrant additional explanations.
General Fund Revenues
General Fund revenues through May total $34.5 million (P. 2 of the Report), representing a slight year -over -
year decrease of 3.8% or approximately $1.38 million (P.4) compared to 2024. This decline is largely
attributed to a reduction in property tax collections, which are down 25.2% or $2.4 million (P.4) compared
to the same period last year. This is due to the intentional decision to collect $6 million less in property tax
than in the prior year. Offsetting this decline are several strong revenue categories. Business & Occupation
Taxes are new revenues in which there were no collections as of May in 2024. Permitting revenue also
continues to perform well; Building Permits and Rental Housing Permits have risen 30.3% (P.4) year -over -
year, reflecting sustained development activity in the City.
Additionally, Charges for Services have increased by 47.3% (P.4) compared to last year, with Plan Check and
Review fees and Security revenue showing the largest increases. Admission Taxes are up 39% (P.4),
suggesting strong public engagement and use of local services and facilities. However, other areas such as
Intergovernmental Payments and Gambling Taxes have declined by 19.5% and 17.6% (P.4), respectively.
Intergovernmental Payment reductions are a result of the elimination of ARPA grant funding and Fire
moving to the RFA. The decline in gambling tax revenue is attributed to a long-term renovation project,
which resulted in the extended closure of one cardroom.
1
35
General Fund Expenditures
On the expenditure side, the City has spent $30.1 million through May (P.6), representing 40.2% of the
budget and reflecting a 12% decrease, or about $4 million (P.8), compared to the prior year. This decrease
is largely the result of the Fire Department's expenses falling by nearly $8 million, or 96.9% (P.8). Vehicle
lease expenses are now recorded in Non -Departmental rather than in the department -specific line items.
As a result, Non -Departmental expenditures show a sharp increase of 194.7%, or $549,000 (P.8).
Other departments experiencing notable increases in expenditures include the Police Department, which
spent $1.5 million more than in the same period last year, an increase of 15.1% (P.8). Causes of the increase
are Fleet Vehicles and Dispatch Services. Finance Department expenses are up 18.5%, or nearly $400,000
(P.8). Increases are to software costs and Insurance Liability increase, Street and Park Maintenance also
show increases of 15.1% and 24.4% (P.8), respectively. These increases reflect both inflationary increases
Project Costs (EarthCorps - Southgate Park Ecological Restoration).
Special Revenue and Capital Funds
Outside of the General Fund, Special Revenue and Capital funds reported variances. In the Hotel/Motel
Fund, revenues are down 13.6%, primarily due to lower investment earnings, while expenditures have
decreased by 16.4% (P.14). The Residential Street Fund has seen a significant 51.2% (P.16) decline in
revenue compared to last year, due largely to the absence of anticipated grant funding and reduced state
entitlements. Similarly, expenditures in that fund are down nearly 50% (P.16).
The Arterial Street Fund reported an 18.9% drop in revenue, with grant revenue down more than 80%, and
capital expenditures lower by 39.7% (P.20) compared to last year. These figures reflect project scheduling
and are not unexpected at this time of year.
Enterprise Funds and Other Operations
The City's Enterprise Utility Funds continue to perform steadily. In the Water Utility Fund, revenues are up
8.4%, driven by a 10% (P.40) increase in water service. Expenditures rose by nearly 9% (P.40), primarily due
to increased spending on capital and personnel. The Sewer Utility Fund saw a 6.1% (P.43) increase in
revenue, alongside a 28.6% (P.43) increase in expenditures, largely due to capital outlays (2023 Central
Business District Sanitary Sewer Rehabilitation Phase 4B) and internal cost allocations (budgetary increase
of interfund transfer from Sewer to City Facilities Capital Project Fund).
Finally, the Foster Golf Course Fund continues to see improved performance. Revenues increased 31.4%
year -over -year, supported by strong greens fees, which increased by 21% (P.44), and an up -tick in other
income. Expenditures are down slightly, indicating that operations remain well -managed despite increased
use.
In summary, the City's financial condition through the first five months of 2025 remains sound. Revenues
are keeping pace with the budget, and expenditures are being carefully managed. Staff will continue to
monitor revenue collection trends, particularly those impacted by timing or external variables such as
grants and intergovernmental transfers and will provide updates as conditions evolve.
2
36
Summary at Glance
General Fund Performance Summary:
Revenues:
Year-to-date (YTD) General Fund revenues total $34.5 million, or 45.1% of the annual budget. This is a
3.8% decrease ($1.38 million) from the same period in 2024. Notable changes include:
• Business & Occupation Taxes 1` 343.9% (+$1.07 million) - Due to prior -year under
collection or updated filings.
• Building Permits & Rental Housing Permits 'i` 30.3% (+$245K) - reflects strong
construction activity.
• Charges for Services 1` 47.3% (+$411K) - indicates higher demand for city services.
• Admission Taxes '1` 39.0% (+$124K).
• Intergovernmental Payments 1, 19.5% (-$824K).
• Gambling Taxes 1, 17.6% (-$381K).
• Property Taxes 1, 25.2% (-$2.4 million) - likely due to timing or distribution delays.
Expenditures:
YTD expenditures total $30.1 million, or 40.2% of the annual budget, showing a 12% decrease (-$4.04
million) from 2024. Key variances:
• Non -Departmental Expenses 'j` 194.7% (+$549K) - includes vehicle lease costs that
were previously in Fleet Fund.
• Finance Department 1` 18.5% (+$397K).
• Mayor's Office I` 14.9% (+$486K).
• Police Department '1` 15.1% (+$1.51 million).
• Street Maintenance'` 15.1% (+$315K).
• Park Maintenance 1` 24.4% (+$231K).
• Fire Department J, 96.9% (-$8.0 million) - reflects reallocation or accounting change.
• Services (excluding PSRFA) 1` 14.8% (+$1.3 million).
• Transfers Out to Other Funds'j` 125% (+$102K).
3
37
Key Funds of Interest — Notable Variances >5% and $50K:
Hotel/Motel Fund (101):
• Revenues 4, 13.6% (-$50.6K), driven by lower investment earnings.
• Expenditures ,l, 16.4% (-$37K) due to lower services spending.
Residential Street Fund (103):
• Revenues 4, 51.2% (-$108.6K), mainly due to timing or absence of grants and state
entitlements.
• Expenditures 4, 49.9% (-$47K).
Arterial Street Fund (104):
• Revenues 4, 18.9% (-$491K), particularly in grant revenue (-80.9%) and REET (-36.8%).
• Expenditures 4, 39.7% (-$588K), mainly from reduced capital spending.
• Water Utility Fund (401):
• Revenues 1` 8.4% (+$250K), driven by a 10% increase in water sales.
• Expenditures'` 8.9% (+$289K), due to increased spending on capital assets and personnel.
• Sewer Utility Fund (402):
• Revenues 1` 6.1% (+$270K), from higher sewer sales.
• Expenditures 'j` 28.6% (+$1.25 million), driven by new capital investment and internal charges.
• Foster Golf Course (411):
• Revenues''` 31.4% (+$209K), driven by greens fees (+21.1%) and other income (+301%).
Expenditures 4, 2.5% (-$28.7K), showing controlled spending despite increased operations.
38
General Fund
Overview
2025 Actuals through May
Revenues
Transfers In
Expenditures
Transfers Out
$
2025 Total Bud • et
Budget Variance
of Annual Budget
32,865,866 $
1,626,244
29,016,179
1,107,599
71,601,037
4,836,952
70,298,671
4,663,479
45.9%
33.6%
41.3%
23.8%
Net Revenues Less Expenditures
4,368,332 1,475,839
General Fund figures include General Fund and Contingency Fund, a Sub -Fund of the General Fund
$80
0
$70
$60
$50
$40
$30
$20
$10
5-
General Fund Overview
•
% of Year Complete
41.7%
•
Revenues Transfers In Expenditures Transfers Out
■ Year to Date • Budget
City of Tukwila Monthly Finance Report
1 39
General Fund Overview - Revenues and Transfers In by Category
Categ
2025 Total 2025 Revenues
Budget through May
Taxes:
Property Tax 11,999,227
Sales & Use Tax 23,283,886
Other Sales Taxes 1,163,100
Gambling Taxes 4,349,500
Business & Occupation Taxes 2,400,000
Utility Taxes 4,493,702
Interfund Utility Taxes 3,167,729
Admission Taxes 859,235
Leasehold Excise Tax 260,000
Business Licenses 3,445,500
Building Permits & Rental Housing Permits 1,985,200
Intergovernmental Payments 5,313,474
Charges for Services 2,612,121
Miscellaneous Revenue 1,568,363
Transfers In - Indirect Cost Allocation 3,111,694
Transfers In From Other Funds 1,725,258
Sale of Capital Assets 4,700,000
7,133,697
9,719,557
457,186
1,781,450
1,386,566
2,133,373
1,628,676
441,476
136,726
1,063,273
1,056,968
3,404,766
1,279,808
1,242,343
1,296,538
329,706
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
4,865,530
13,564,329
705,914
2,568,050
1,013,434
2,360,329
1,539,053
417,759
123,274
2,382,227
928,232
1,908,708
1,332,313
326,020
1,815,156
1,395,552
4,700,000
59.5%
41.7%
39.3%
41.0%
57.8%
47.5%
51.4%
51.4%
52.6%
30.9%
53.2%
64.1%
49.0%
79.2%
41.7%
19.1%
0.0%
Total
76,437,989 34,492,109
45, 512, 921 45.1%
Percent of Year Complete: 41.7%
City of Tukwila Monthly Finance Report 2
General Fund Major Revenues
Property Tax
Sales & Use Tax
Gambling Taxes
Business & Occupation Taxes Mm
Utility Taxes
Interfund Utility Taxes
Business Licenses
Building Permits & Rental Housing Permits
Intergovernmental Payments
Charges for Services
Miscellaneous Revenue Mi
Transfers In - Indirect Cost Allocation
Transfers In From Other Funds =
Sale of Capital Assets
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Millions
■ Revenues and Transfers In YTD ■ Total Budget
City of Tukwila Monthly Finance Report 3
General Fund: Year -to -Year Revenues and Transfers In
Category
2023 Revenues
Through May
2024 Revenues
Through May
2025 Revenues
through May
Taxes:
Property Tax
Sales & Use Tax
Other Sales Taxes
Gambling Taxes
Business & Occupation Taxes
Utility Taxes
Interfund Utility Taxes
Admission Taxes
Leasehold Excise Tax
Business Licenses
Building Permits & Rental Housing Permits
Intergovernmental Payments
Charges for Services
Miscellaneous Revenue
Transfers In - Indirect Cost Allocation
Transfers In From Other Funds
Sale of Capital Assets
9,317,801
8,952,577
509,043
2,334,179
1,968,340
1,456,338
401,170
121,273
1,165,603
887,759
2,203,157
1,107,093
601,870
1,176,005
9,539,911
9,909,767
463,970
2,162,616
312,351
2,029,887
1,518,717
317,701
127,562
1,095,007
811,205
4,228,945
868,716
1,070,986
1,234,804
176,392
7,133,697 (2,406,214)
9,719,557 (190,210)
457,186 (6,784)
1,781,450 (381,166)
1,386,566 1,074,215
2,133,373 103,486
1,628,676 109,959
441,476 123,775
136,726 9,164
1,063,273 (31,734)
1,056,968 245,763
3,404,766 (824,179)
1,279,808 411,092
1,242,343 171,357
1,296,538 61,734
329,706 153,314
-25.2%
-1.9%
-1.5%
-17.6%
+343.9%
+5.1 %
+7.2%
+39.0%
+7.2%
-2.9%
+30.3%
-19.5%
+47.3%
+16.0%
+5.0%
+86.9%
Total
32,202,208 35,868,537
34,492,109 (1,376,428) -3.8%
City of Tukwila Monthly Finance Report 4
General Fund Major Revenues Prior Year Comparisons YTD
Property Tax
Sales & Use Tax
Gambling Taxes
Business & Occupation Taxes
Utility Taxes
Interfund Utility Taxes
Business Licenses
Building Permits & Rental Housing Permits
Intergovernmental Payments
Charges for Services
Miscellaneous Revenue
Transfers In - Indirect Cost Allocation
Transfers In From Other Funds
Sale of Capital Assets
0
1 2 3 4 5 6 7 8 9 10 11
Millions
2023 2024 ■ 2025
CA) City of Tukwila Monthly Finance Report 5
Overview - Expenditures & Transfers Out by Department
Department 2025 Total Budget
2025 Expenses through
May
City Council
Mayor's Office
Administrative Services
Finance Department
Community Development (DCD)
Municipal Court
Police Department
Fire Department
Recreation Department
Park Maintenance Dept
Public Works Dept
Street Maintenance Dept
Non -Departmental
Expenses
Transfers Out - Debt Service
Transfers Out to Other Funds
Total
400,093 $
9,748,218
4,343,230
5,732,921
2,329,525
28,411,330
1,398,192
4,110,113
2,659,037
4,977,693
4,761,271
1,427,046
3,692,390
971,089
74,962,148
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
153,682 $
3,759,047
2,538,865
2,108,821
899,377
11,534,789
256,730
1,356,424
1,178, 638
2,000,303
2,397,868
831,635
923,099
184,500
30,123,778
246,411
5,989,171
1,804,365
3,624,100
1,430,148
16,876,541
1,141,462
2,753,689
1,480, 399
2,977,390
2,363,403
595,411
2,769,291
786,589
38.4%
38.6%
58.5%
36.8%
38.6%
40.6%
18.4%
33.0%
44.3%
40.2%
50.4%
58.3%
25.0%
19.0%
44,838,370 40.2%
Percent of Year Complete: 41.7%
General Fund Expenditures and Transfers Out by Department
City of Tukwila Monthly Finance Report
6
Thousands
30,000
25,000
20,000
15,000
10,000
5,000
,1
0\°e
G°acG\ 5
o/
•�\aacoe Oc9 Q°\`oe ce o a�\oo �aoe �5 ,co
+Qeaee e\oe J�aS
Qa� 5�ee�°a J,�o
at` O
O0Q �e�y
• Expenditures and Transfers Out YTD Total Budget
City of Tukwila Monthly Finance Report
7
General Fund Overview - Year -to -Year Expenditures & Transfers Out by Department
Category
2023 Expenses through
May
2024 Expenses through
May
City Council $ 155,690 $
Mayor's Office 2,926,438
Finance Department 1,448,069
Community Development (DCD) 1,801,921
Municipal Court 658,813
Police Department 8,701,483
Fire Department 7,480,438
Recreation Department 1,119,104
Park Maintenance Dept 842,480
Public Works Dept 1,819,001
Street Maintenance Dept 1,834,614
Non -Departmental
Expenses 245,701 282,181
Transfers Out - Debt Service 1,187,457 1,051,586
Transfers Out to Other Funds 75,000 82,017
2025 Expenses through
May
169,346 $
3,272,907
2,141, 906
1,899,405
811,361
10,021,213
8,274,695
1,246,409
947,229
1,885,037
2,082,618
2025 vs 2024
153,682 $
3,759,047
2,538,865
2,108,821
899,377
11,534,789
256,730
1,356,424
1,178,638
2,000,303
2,397,868
(15,664)
486,140
396,959
209,416
88,016
1,513,576
(8,017,965)
110,015
231,409
115,266
315,250
-9.2%
+14.9%
+18.5%
+11.0%
+10.8%
+15.1%
-96.9%
+8.8%
+24.4%
+6.1 %
+15.1%
831,635 549,454 +194.7%
923,099 (128,487) -12.2%
184,500 102,483 +125.0%
Total 30,296,209 34,167,909 30,123,778
Notes:
'In 2025, vehicle leases across the General Fund are now Non -Departmental exenses. From 2023-2024, these expenses were paid from savings accumulated in the Fleet Fund
(4,044,131) -12%
City of Tukwila Monthly Finance Report 8
N 14,000
0
0
L
H
12,000
10,000
8,000
6,000
4,000
2,000
General Fund Expenditures by Department Prior Year Comparions YTD
_._ 111 "JI' I I I
oJc6 (Pc'
`oo \cacoe, OGO Go.> Qo4'e' �\�a aa`oc earn°
G t5 F arc �a
,ado Q-1 \\a.
Q
a'
2023 2024 ■2025
•0
�acacoa Qacyay
5\aa��a\c �ac�a\O
Oa
City of Tukwila Monthly Finance Report
9
=General Fund Overview - Expenditures by Category
Category
2025 Total Budget 2025 Expenses through May
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Land, Structures, Machinery, Equipment
Other Expenditures
Transfers Out - Debt Service
Transfers Out to Other Funds
33,466,376
12,851,718
1,640,914
22,109,457
200,000
30,205
3,692,390
971,089
13,143,313
4,891,822
504,372
10,187,016
289,656
923,099
184,500
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
20,323,063
7,959,896
1,136,542
11,922,441
(89,656)
30,205
2,769,291
786,589
39.3%
38.1%
30.7%
46.1 %
144.8%
0.0%
25.0%
19.0%
Total
N 40,000
-o
2 35,000
0
L
F- 30,000
25,000
20,000
15,000
10,000
5,000
Salaries, Wages, &
Overtime
74,962,149 30,123,778 44,838,371
Percent of Year Complete:
General Fund Expenditures and Transfers Out by Category
Benefits Supplies
Services
40.2%
41.7%
■
Land, Structures, Other Expenditures Transfers Out - Debt Transfers Out to Other
Machinery, Equipment
• Expenditures and Transfers Out YTD ■ 2025 Total Budget
Service Funds
City of Tukwila Monthly Finance Report 10
General Fund: Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses through
May
2024 Expenses through
May
Salaries, Wages, & Overtime 10,389,063 11,773,010
Benefits 4,123, 554 4,423,058
Supplies 352,386 505,673
Services 14,168,749 16,106,675
Services excluding PSRFA Fire Contract 7,624,398 8,874,041
Land, Structures, Machinery, Equipment 225,891
Other Expenditures
Transfers Out - Debt Service 1,187,457 1,051,586
Transfers Out to Other Funds 75,000 82,017
2025 Expenses through
May
13,143, 313
4,891,822
504,372
10,187,016
10,187,016
289,656
923,099
184,500
2025 vs 2024
1,370,303
468,764
(1,301)
(5,919,659)
1,312,975
63,765
(128,487)
102,483
+11.6%
+10.6%
-0.3%
-36.8%
+14.8%
+28.2%
-12.2%
+125.0%
Total
u 18,000
O 16,000
0
0
- 14,000
12,000
10,000
8,000
6,000
4,000
2,000
1
Salaries, Wages, &
30,296,209
34,167,910 30,123,778
General Fund Expenditures by Category Prior Year Comparions YTD
(4,044,132) -11.8%
Benefits Supplies Services Services excluding Land, Structures, Other Expenditures Transfers Out - Debt Transfers Out to Other
Overtime PSRFA Fire Contract Machinery, Equipment Service Funds
2023 2024 ■2025
City of Tukwila Monthly Finance Report 11
Fund 101 Hotel/Motel Special Revenue Fund
Overview
2025 through May
Revenues
Expenditures
Transfers Out
2025 Total Budget
Budget Variance
% of Annual Budget
320,130 $
178,605
12,171
897,750
992,204
29,209
35.7%
18.0%
41.7%
Net Revenues Less Expenditures
129,354 (123,663)
% of Year Complete
41.7%
50 City of Tukwila Monthly Finance Report 12
Fund 101 Hotel/Motel Special Revenue Fund
Expenditures and Transfers Out by Category
Category 2025 Total Budget
2025 Expenses
through May
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Transfers Out - Internal Cost Allocation
51,393
20,561
3,000
917,250
29,209
21,606
4,792
152,207
12,171
udget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
29,787
15,769
3,000
765,043
17,038
42.0%
23.3%
0.0%
16.6%
41.7%
Total
Thousands
1,200
1,000
800
600
400
200
1,021,413 190,776
Fund 101 Expenditures
2025 Expenditures YTD
2025 Total Budget
830,637 18.7%
% of Year Complete
41.7%
Revenues and Transfers In by Category
Category 2025 Total Budget
2025 Revenues
through Ma
Hotel/Motel Tax
Investment Earnings
Total
1,000
o
c
c
900
0
0
s
H 800
700
600
500
400
300
200
100
850,000
47,750
897,750
Fund 101 Revenues
285,586
34,544
320,130
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
2025 Revenues YTD 2025 Total Budget
(564,414)
(13,206)
(577,620)
33.6%
72.3%
35.7%
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report
13 51
Fund 101 Hotel/Motel Special Revenue Fund
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
$ %
Salaries, Wages, & Overtime
Benefits
Services
Transfers Out - Internal Cost Allocation
$
29,398 $
7,386
112,630
11,040
37,956 $
8,844
169,754
11,592
21,606 $ (16,350)
4,792 (4,052)
152,207 (17,547)
12,171 579
-43.1
-45.8%
-10.3%
+5.0%
Total
160,608
228,146 190,776
(37,370) -16.4%
Fund 101 Hotel/Motel Special Revenue Fund
Year -to -Year Revenues and Transfers In by Category
Hotel/Motel Tax
Investment Earnings
2023 Revenues
through May
314,102
2024 Revenues
through May
2025 Revenues
through May
305,853 285,586
44,765 64,856
34,544
2025 vs 2024
$ %
(20,267)
-6.6%
(30,312) -46.7%
Total
Expenditures and Transfers Out
Revenues and Transfers In
358,867
370,709 320,130
Fund 101 Prior Year Comparisons YTD
a
(50,579) -13.6%
50 100 150 200 250 300 350 400
Thousands
■ 2023
2024
■ 2025
52 City of Tukwila Monthly Finance Report 14
Fund 103 Residential Street Fund
Overview
2025 through May
Revenues
Expenditures
2025 Total Budget
Budget Variance
% of Annual Budget
103,572 $
47,228
1,130,000
850,000
9.2%
5.6%
Net Revenues Less Expenditures
56,344
280,000
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report
15 53
Fund 103 Residential Street Fund
Expenditures and Transfers Out by Category
Category 2025 Total Budget
2025 Expenses
through May
Supplies
Services
850,000
5,266
41,962
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
(5,266)
808,038
4.9%
Total
Thousands
900
800
700
600
500
400
300
200
100
850,000
Fund 103 Expenditures
2025 Expenditures YTD
47,228
2025 Total Budget
802,772
5.6%
% of Year Complete
41.7%
Revenues and Transfers In by Category
Category 2025 Total Budget
2025 Revenues
through Ma
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
Utility Taxes
Grant Revenues
State Entitlements
Investment Earnings
Total
1,200
a
c
m
1,000
H
800
600
400
200
100,000
724,000
280,000
78,482
(100,000)
(724,000)
(201,518)
26,000 25,091 (909)
1,130,000 103,572 (1,026,428)
Fund 103 Revenues
2025 Revenues YTD 2025 Total Budget
0.0%
0.0%
28.0%
96.5%
9.2%
% of Year Complete
41.7%
54 City of Tukwila Monthly Finance Report 16
Fund 103 Residential Street Fund
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
$ %
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Land, Structures, Machinery, Equipment
$
7,544 $
4,769
256,995
1,935 $
868
12,902
50,818
27,762
- $ (1,935)
- (868)
5,266 (7,636)
41,962 (8,856)
(27,762)
-100.0%
-100.0%
-59.2%
-17.4%
-100.0%
Total
269,308 94,285 47,228 (47,057) -49.9%
Fund 103 Residential Street Fund
Year -to -Year Revenues and Transfers In by Category
Category
Grant Revenues
State Entitlements
Investment Earnings
Transfers In
2023 Revenues
through May
2024 Revenues
through May
2025 Revenues
through May
2025 vs 2024
$ %
70,797 - (70,797)
110,560 107,428 78,482 (28,946)
11,379 26,956 25,091 (1,865)
7,017 - (7,017)
-100.0%
-26.9%
-6.9%
-100.0%
Total
Expenditures and Transfers Out
Revenues and Transfers In
121,939
212,198 103,573
Fund 103 Prior Year Comparisons YTD
K.
(108,625) -51.2%
50 100 150 200 250 300
Thousands
2023
2024
■ 2025
City of Tukwila Monthly Finance Report
17 55
Fund 104 Arterial Street Fund
Overview
Revenues
Expenditures
25 through May
2025 Total Budget
Budget Variance
% of Annual Budget
2,105,658 $
891,860
5,586,001
7,636,726
37.7%
11.7%
Net Revenues Less Expenditures
1,213,798 (2,050,725)
% of Year Complete
41.7%
56 City of Tukwila Monthly Finance Report 18
Fund 104 Arterial Street Fund
Expenditures and Transfers Out by Category
Category 2025 Total Budget
2025 Expenses
through May
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Land, Structures, Machinery, Equipment
$
793,142
312,185
23,200
6,508,200
$
267,007
92,939
45,136
313,788
172,991
udget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
$
526,135
219,246
(21,936)
6,194,412
(172,991)
34%
30%
194.6%
4.8%
Total
0
m
'o
r
H
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
7,636,727 891,861
Fund 104 Expenditures
2025 Expenditures YTD
2025 Total Budget
6,744,866 11.7%
% of Year Complete
41.7%
Revenues and Transfers In by Category
Category 2025 Total Budget
2025 Revenues
through Ma
Utility Taxes
Parking Tax
Real Estate Excise Tax (REET)
Permits
Franchise Fees
Grant Revenues
State Entitlements
General Government Revenue
$
1,320,000 $
800,000
500,000
1
450,000
2,026,000
135,000
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
654,335 $
331,313
212,110
194,050
144,889
(665,665)
(468,687)
(287,890)
(1)
(255,950)
(1,881,111)
39,868 (95,132)
360 360
49.6%
41.4%
42.4%
0.0%
43.1%
7.2%
29.5%
Traffic Impact Fees 200,000 301,959 101,959 151.0%
Fines and Penalties 2,000 562 (1,438) 28.1%
Other Income 80,000 110,200 30,200 137.8%
Investment Earnings 73,000 116,012 43,012 158.9%
Total 5,586,001 2,105,658 (3,480,343) 37.7%
N 6,000
a
v( i 5,000
0
0
t
1- 4,000
3,000
2,000
1,000
Fund 104 Revenues
2025 Revenues YTD 2025 Total Budget
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report
19 57
Fund 104 Arterial Street Fund
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Land, Structures, Machinery, Equipment
159,348 $
56,452
86,680
407,667
780,878
207,901
71,077
749
479,307
720,968
267,007 $ 59,106
92,939 21,862
45,136 44,387
313,788 (165,519)
172,991 (547,977)
+28.4%
+30.8%
+5926.2%
-34.5%
-76.0%
Total
1,491,025 1,480,002
891,861 (588,141) -39.7%
Fund 104 Arterial Street Fund
Year -to -Year Revenues and Transfers In by Category
Category
f 2023 Revenues 1
through May
2024 Revenues
through May
2025 Revenues
through May
2025 vs 2024
$
Utility Taxes
Parking Tax
Real Estate Excise Tax (REET)
Permits
Franchise Fees
Grant Revenues
State Entitlements
General Government Revenue
Traffic Impact Fees
Fines and Penalties
Other Income
Investment Earnings
528,080 $
330,186
104,999
443
653,569 $
360,033
335,387
2
136,376
55,049 758,800
54,997 53,507
20
132,793 127,654
10,655 825
95,300 39,500
98,809 131,443
654,335 $
331,313
212,110
766 +0%
(28,720) -8.0%
(123,277) -36.8%
(2)-100.0%
194,050 57,674 +42.3%
144,889 (613,911) -80.9%
39,868 (13,639) -25.5%
360 340 +1700.0%
301,959 174,305 +136.5%
562 (263) -31.9%
110,200 70,700 +179.0%
116,012 (15,431) -11.7%
Total 1,411,311 2,597,116 2,105,658 (491,458) -18.9%
Expenditures and Transfers Out
Revenues and Transfers In
Fund 104 Prior Year Comparisons YTD
L ■
•
•
500 1,000 1,500 2,000 2,500 3,000
Thousands
■ 2023
2024
■ 2025
58 City of Tukwila Monthly Finance Report 20
Fund 109 Drug Seizure Fund
Overview
Revenues
Expenditures
25 through May
2025 Total Budget
Budget Variance
% of Annual Budget
- $
49,607
98,100
73,000
0.0%
68.0%
Net Revenues Less Expenditures (49,607)
25,100
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report
21 59
Fund 109 Drug Seizure Fund
Expenditures and Transfers Out by Category
Category 2025 Total Budget
2025 Expenses
through May
Supplies
Services
36,000
37,000
31,965
17,642
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
4,035
19,358
88.8%
47.7%
Total
80
w
c
c
w 70
0
0
H 60
50
40
30
20
10
73,000
Fund 109 Expenditures
2025 Expenditures YTD
49,607
2025 Total Budget
23,393
68.0%
% of Year Complete
41.7%
Revenues and Transfers In by Category
Category 2025 Total Budget
2025 Revenues
through Ma
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
Intergovernmental Revenue
Other Income
Investment Earnings
Total
80
60
40
20
35,000
60,000
3,100
98,100
Fund 109 Revenues
2025 Revenues YTD 2025 Total Budget
(35,000)
(60,000)
(3,100)
(98,100)
0.0%
0.0%
0.0%
0.0%
% of Year Complete
41.7%
60 City of Tukwila Monthly Finance Report
22
Fund 109 Drug Seizure Fund
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
$ %
Supplies
Services
11,423
10,483
4,570
17,149
31,965
17,642
27,395
493
+599.5%
+2.9%
Total
21,906
21,719
49,607
27,888
+128.4%
Fund 109 Drug Seizure Fund
Year -to -Year Revenues and Transfers In by Category
Category
2023 Revenues
through May
2024 Revenues
through May
2025 Revenues
through May
2025 vs 2024
$ %
Grant Revenues
Intergovernmental Revenue
Other Income
Investment Earnings
77,060
Total
Expenditures and Transfers Out
Revenues and Transfers In
77,060
Fund 109 Prior Year Comparisons YTD
a
10 20 30 40 50 60 70 80 90
Thousands
■ 2023
2024
■ 2025
City of Tukwila Monthly Finance Report
23 61
Fund 301 Land Acq., Rec. & Park Development
Overview
2025 through May
Revenues
Expenditures
Transfers Out
2025 Total Budget
Budget Variance
% of Annual Budget
724,285 $
175,973
2,841,300
2,431,000
652,605
25.5%
7.2%
0.0%
Net Revenues Less Expenditures
548,312 (242,305)
% of Year Complete
41.7%
62 City of Tukwila Monthly Finance Report 24
Fund 301 Land Acq., Rec. & Park Development
Expenditures and Transfers Out by Category
Category 2025 Total Budget
2025 Expenses
through May
Supplies
Services
Land, Structures, Machinery, Equipment
Transfers Out to Other Funds
30,000
1,876,000
525,000
652,605
172,063
3,910
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
30,000
1,703,937
521,090
652,605
0.0%
9.2%
1%
0%
Total
w 3,500
c
c
S 3,000
0
1-
H
2,500
2,000
1,500
1,000
500
3,083,605 175,973
Fund 301 Expenditures
2025 Expenditures YTD
2025 Total Budget
2,907,632 5.7%
% of Year Complete
41.7%
Revenues and Transfers In by Category
Category 2025 Total Budget
2025 Revenues
through May
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
Property Tax
Real Estate Excise Tax (REET)
Grant Revenues
Park Impact Fees
Investment Earnings
Total
u 3,000
a
c
m
ur
3
2,500
H
2,000
1,500
1,000
500
207,800
500,000
1,976,000
100,000
138,193
500,000
17,515
(69,607)
(500,000)
(1,476,000)
(82,485)
57,500 68,577 11,077
2,841,300 724,285 (2,117,015)
Fund 301 Revenues
2025 Revenues YTD 2025 Total Budget
66.5%
0.0%
25.3%
17.5%
119.3%
25.5%
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report
25 63
Fund 301 Land Acq., Rec. & Park Development
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
$ %
Services
Land, Structures, Machinery, Equipment
74,481
228,384
172,063
3,910
(56,321)
3,910
-24.7%
Total
96,110 228,384
175,973
(52,411) -22.9%
a
ilk a
Fund 301 Land Acq., Rec. & Park Developmentli jiff
Year -to -Year Revenues and Transfers In by Category
Category
Property Tax
Real Estate Excise Tax (REET)
Grant Revenues
Park Impact Fees
Investment Earnings
Transfers In
2023 Revenues
through May
36,224
2024 Revenues
through May
2025 Revenues
through May
133,701 138,193
2025 vs 2024
$ %
4,492
500,000 500,000
+3%
30,104 17,522 17,515 (7) -0.0%
60,888 92,217 68,577 (23,640) -26%
Total
Expenditures and Transfers Out
Revenues and Transfers In
127,216
243,440 724,285
Fund 301 Prior Year Comparisons YTD
480,845 +197.5%
100 200 300 400 500 600 700 800
Thousands
■ 2023
2024
■ 2025
City of Tukwila Monthly Finance Report 26
64
Fund 303 General Government Improvements
Overview
2025 through May
Revenues
Transfers In
Expenditures
2025 Total Budget
Budget Variance
% of Annual Budget
5,454 $
109,500
1,000
438,000
538,000
545.4%
25.0%
0.0%
Net Revenues Less Expenditures
114,954
(99,000)
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report
27 65
Fund 303 General Government Improvements
Expenditures and Transfers Out by Category
Category
2025 Total Budget
2025 Expenses
through May
Services
538,000
Budget Variance
(Unfavorable) / Favorable
Budget Variance
% of Annual Budget
538,000
0.0%
Total
600
c
C
0 500
s
400
300
200
100
538,000
Fund 303 Expenditures
2025 Expenditures YTD
2025 Total Budget
538,000
0.0%
% of Year Complete
41.7%
Revenues and Transfers In by Category
Category
2025 Total Budget
2025 Revenues
through Ma
Investment Earnings
Transfer In From General Fund
Total
ur
500
a
c
y 450
3
O
r
H 400
350
300
250
200
150
100
50
1,000
438,000
439,000
Fund 303 Revenues
2025 Revenues YTD
5,454
109,500
114,954
Budget Variance
(Unfavorable) / Favorable
Budget Variance
% of Annual Budget
2025 Total Budget
4,454
(328,500)
(324,046)
545.4%
25%
26.2%
% of Year Complete
41.7%
66 City of Tukwila Monthly Finance Report 28
Fund 303 General Government Improvements
Year -to -Year Expenditures & Transfers Out by Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
$ %
Services
133,850
1,146
(1,146)
-100.0%
Total
133,850
1,146
(1,146) -100.0%
Fund 303 General Government Improvements
Year -to -Year Revenues and Transfers In by Category
MIZE_
Grant Revenues
Investment Earnings
Transfer In From General Fund
2023 Revenues
through May
2024 Revenues
through May
2025 Revenues
through May
2025 vs 2024
$ %
10,001 9,676 5,454 (4,222)
109,500 109,500
-44%
Total 10,001 9,676 114,954 105,278 +1088.0%
Fund 303 Prior Year Comparisons YTD
L
Expenditures and Transfers Out
s
Revenues and Transfers In
20 40 60 80 100 120 140 160
Thousands
■ 2023
2024
■ 2025
City of Tukwila Monthly Finance Report
29 67
Fund 304 Fire Improvements
Overview
Revenues
Transfers Out
25 through May
2025 Total Budget
Budget Variance
% of Annual Budget
$ 16,592 $
600,000
600,000
2.8°A)
0.0%
Net Revenues Less Expenditures
16,592
% of Year Complete
41.7%
68 City of Tukwila Monthly Finance Report 30
Fund 304 Fire Improvements
Transfers Out
Category 2025 Total Budget
2025 Transfers Out
through May
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
Transfers Out to Other Funds
600,000
600,000
0%
Total
700
c
C
S 600
O
L
H
500
400
300
200
100
600,000
Fund 304 Transfers Out
2025 Expenditures YTD
2025 Total Budget
600,000
0.0%
% of Year Complete
41.7%
w
Category 2025 Total Budget
2025 Revenues
through Ma
Fire Impact Fees
Total
700
o
C
(0
to
p 600
r
1-
500
400
300
200
100
600,000
600,000
Fund 304 Revenues
16,592
16,592
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
2025 Revenues YTD 2025 Total Budget
(583,408)
(583,408)
2.8%
2.8%
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report
31 69
Fund 304 Fire Improvements
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
$ %
Transfers Out to Other Funds
Total
Fund 304 Fire Improvements
Year -to -Year Revenues and Transfers In by Category
Category
Fire Impact Fees
2023 Revenues
through May
2024 Revenues
through May
17,716 10,313
2025 Revenues
through May
16,592
2025 vs 2024
$
6,279
+60.9%
Total
Expenditures and Transfers Out
Revenues and Transfers In
17,716 10,313
Fund 304 Prior Year Comparisons YTD
16,592
7
6,279
2 4 6 8 10 12 14 16 18 20
Thousands
+60.9%
■ 2023
2024
■ 2025
70 City of Tukwila Monthly Finance Report 32
Fund 305 Public Safety Plan
Overview
2025 through May
Revenues
Transfers In
Transfers Out
2025 Total Budget
Budget Variance
% of Annual Budget
235,377 $
329,706
15,000
1,100,000
1,318,824
1569.2%
0.0%
25.0%
Net Revenues Less Expenditures
(94,329) (203,824)
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report
33 71
Fund 305 Public Safety Plan
Expenditures and Transfers Out by Category
Category
2025 Total Budget
2025 Expenses
through May
Transfers Out to Other Funds
1,318,824
329,706
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
989,118
25%
Total
Thousands
1,400
1,200
1,000
800
600
400
200
1,318,824
Fund 305 Expenditures
2025 Expenditures YTD
329,706
2025 Total Budget
989,118
25.0%
% of Year Complete
41.7%
Revenues and Transfers In by Category
Category
2025 Total Budget
2025 Revenues
through Ma
Real Estate Excise Tax (REET)
Investment Earnings
Transfers In
Total
ur
1,200
a
c
800
600
400
200
15,000
1,100,000
1,115,000
Fund 305 Revenues
212,110
23,267
235,377
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
2025 Revenues YTD 2025 Total Budget
212,110
8,267
(1,100,000)
(879,623)
155.1%
0%
21.1%
% of Year Complete
41.7%
72 City of Tukwila Monthly Finance Report
34
Fund 305 Public Safety Plan
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
$ %
Transfers Out to Other Funds
329,706
329,706
Total
329,706 329,706
Fund 305 Public Safety Plan
Year -to -Year Revenues and Transfers In by Category
Category
Real Estate Excise Tax (REET)
Fire Impact Fees
Investment Earnings
Transfers In
2023 Revenues
through May
68,776
2024 Revenues
through May
335,387
19,311 25,688
2025 Revenues
through May
212,110
2025 vs 2024
$ %
(123,277)
-36.8%
23,267 (2,421) -9%
Total
Expenditures and Transfers Out
Revenues and Transfers In
88,087
361,075 235,377
Fund 305 Prior Year Comparisons YTD
(125,698) -34.8%
50 100 150 200 250 300 350 400
Thousands
■ 2023
2024
■ 2025
City of Tukwila Monthly Finance Report
35 73
Fund 306 City Facilities
Overview
2025 through May
Revenues
Transfers In
Expenditures
2025 Total Budget
Budget Variance
% of Annual Budget
- $
250,002
46,185
846,937
1,000,000
1,000,000
0.0%
25.0%
4.6%
Net Revenues Less Expenditures
203,817 846,937
% of Year Complete
41.7%
74 City of Tukwila Monthly Finance Report 36
Fund 306 City Facilities
Expenditures and Transfers Out by Category
Category
2025 Total Budget
2025 Expenses
through May
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
Services
1,000,000
46,185
953,815
4.6%
Total
Thousands
1,200
1,000
800
600
400
200
1,000,000
Fund 306 Expenditures
2025 Expenditures YTD
46,185
2025 Total Budget
953,815
4.6%
% of Year Complete
41.7%
Revenues and Transfers In by Category
Category
2025 Total Budget
2025 Revenues
through Ma
Investment Earnings
Rent & Concessions
Transfers In
Total
2,000
a
c
y 1,800
3
O
r
H 1,600
1,400
1,200
1,000
800
600
400
200
5,000
841,937
1,000,000
1,846,937
Fund 306 Revenues
250,002
250,002
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
2025 Revenues YTD 2025 Total Budget
(5,000)
(841,937)
(749,998)
(1,596,935)
0.0%
0.0%
25%
13.5%
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report
37 75
Fund 306 City Facilities
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
$ %
Services
Land, Structures, Machinery, Equipment
70,890
1,171,042
963,796
808
46,185
(917, 611)
-95.2%
(808)-100.0%
Total
1,249,842
964,604
46,185 (918,419)
-95.2%
Fund 306 City Facilities
Year -to -Year Revenues and Transfers In by Category
Category
Investment Earnings
Rent & Concessions
Transfers In
2023 Revenues
through May
21,993
2024 Revenues
through May
11,521
250,000
2025 Revenues
through May
250,002
2025 vs 2024
$ %
(11,521)
2
-100.0%
+0%
Total
Expenditures and Transfers Out
Revenues and Transfers In
21,993
261,521
Fund 306 Prior Year Comparisons YTD
250,002
at
200 400 600 800
1,000
(11,519)
1,200 1,400
Thousands
-4.4%
■ 2023
2024
■ 2025
76 City of Tukwila Monthly Finance Report 38
Fund 401 Water Utility Fund
Overview
2025 through May
Revenues
Expenditures
Transfers Out
2025 Total Budget
Budget Variance
% of Annual Budget
3,239,409 $
3,040,522
512,944
11,341,356
10,493,596
1,507,615
28.6%
29.0%
34.0%
Net Revenues Less Expenditures
(314,057) (659,855)
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report 39
77
Fund 401 Water Utility Fund
Expenditures and Transfers Out by Category
Category
2025 Total Budget
2025 Expenses
through May
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Land, Structures, Machinery, Equipment
Other Expenditures
Transfers Out - Internal Cost Allocation
Transfers Out - Debt Service
Transfers Out to Other Funds
957,112
538,827
3,105,196
5,677,288
215,173
816,232
358,050
333,333
357,872
153,618
1,488,179
761,541
279,312
340,099
89,511
83,334
599,240
385,209
1,617,017
4,915,747
(279,312)
215,173
476,133
268,539
249,999
37%
29%
47.9%
13.4%
0%
42%
25%
25%
Total
0 14,000
c
c
w 12,000
0
0
s
H 10,000
8,000
6,000
4,000
2,000
12,001,211 3,553,466
Fund 401 Expenditures and Transfers Out
2025 Expenditures YTD
2025 Total Budget
8,447,745 29.6%
% of Year Complete
41.7%
Revenues and Transfers In by Category
Category 2025 Total Budget
2025 Revenues
through May
Water Sales
Security Revenue
Other Income
Investment Earnings
Bond Proceeds
Total
u 12,000
a
0
L
H
10,000
8,000
6,000
4,000
2,000
9,239,856
1,500
100,000
2,000,000
11,341,356
Fund 401 Revenues
3,207,190
(14,846)
8,549
38,517
3,239,410
Budget Variance Budget Varianc
(Unfavorable) / Favorable % of Annual Budget
2025 Revenues YTD 2025 Total Budget
(6,032,666)
(14,846)
7,049
(61,483)
(2,000,000)
(8,101,946)
34.7%
569.9%
38.5%
0%
28.6%
% of Year Complete
41.7%
78 City of Tukwila Monthly Finance Report 40
Fund 401 Water Utility Fund
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Land, Structures, Machinery, Equipment
Other Expenditures
Transfers Out - Internal Cost Allocation
Transfers Out - Debt Service
Transfers Out to Other Funds
278,234 $
124,208
1,700,236
938,782
320,753 $
154,586
1,406, 798
746,502
56,065
81,432 81,029
308,480 323,904
89,511 89,511
(60) 85,000
357,872 $ 37,119
153,618 (968)
1,488,179 81,381
761,541 15,039 +2.0%
279,312 223,247 +398.2%
(81,029) -100%
340,099 16,195
89,511 0%
83,334 (1,666) -2%
+11.6%
-0.6%
+5.8%
+5%
Total
3,520,823
3,264,148 3,553,466
289,318 +8.9%
Fund 401 Water Utility Fund
Year -to -Year Revenues and Transfers In by Category
Category
2023 Revenues
through May
2024 Revenues
through May
Water Sales 2,683,663 2,907,530
Grant Revenues
Security Revenue
Other Income
Investment Earnings
Bond Proceeds
2025 Revenues
through May
3,207,190
2025 vs 2024
299,660
+10%
5,677 5,609 (14,846) (20,455) -364.7%
3,136 4,995 8,549 3,554 +71.2%
75,020 71,391 38,517 (32,874) -46%
Total
Expenditures and Transfers Out
Revenues and Transfers In
2,767,496 2,989,525
Fund 401 Prior Year Comparisons YTD
•
3,239,410
249,885 +8.4%
500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Thousands
■ 2023
2024
■ 2025
City of Tukwila Monthly Finance Report
41 79
Fund 402 Sewer Utility Fund
2025 through May
Revenues
Transfers In
Expenditures
Transfers Out
2025 Total Budget
Budget Variance
% of Annual Budget
4,677,169 $
5,197,616
419,882
12,527,105
16,129, 584
1,221,086
37.3%
32.2%
34.4%
Net Revenues Less Expenditures
(940,329) (4,823, 565)
% of Year Complete
41.7%
80 City of Tukwila Monthly Finance Report 42
Category 2025 Total Budget
2025 Expenses
through May
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Land, Structures, Machinery, Equipment
Other Expenditures
Transfers Out - Internal Cost Allocation
Transfers Out - Debt Service
Transfers Out to Other Funds
666,584
482,884
6,214,355
8,611,358
154,403
687,666
200,087
333,333
285,832
131,191
2,362,271
848,141
1,527,359
41,175
286,524
50,024
83,334
380,752
351,693
3,852,084
7,763,217
(1,527,359)
113,228 27%
401,142 42%
150,063 25%
249,999 25%
43%
27%
38.0%
9.8%
Total
Thousands
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
17,350,670 5,615,851
Fund 402 Expenditures and Transfers Out
2025 Expenditures YTD
2025 Total Budget
11,734,819 32.4%
% of Year Complete
41.7%
Category 2025 Total Budget
2025 Revenues
through Ma
Sewer Sales
Other Income
Investment Earnings
Total
u, 14,000
12,000
r
10,000
8,000
6,000
4,000
2,000
12,127,105
400,000
12, 527,105
Fund 402 Revenues
4,499,055
43,211
134,902
4,677,168
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
2025 Revenues YTD 2025 Total Budget
(7,628,050)
43,211
(265,098)
(7,849,937)
37.1%
33.7%
37.3%
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report
43 81
Fund 402 Sewer Utility Fund
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Land, Structures, Machinery, Equipment
Other Expenditures
Transfers Out - Internal Cost Allocation
Transfers Out - Debt Service
Transfers Out to Other Funds
349,929
149,906
1,653,119
714,151
237,417
259,890
50,021
(34)
$ 459,365 $ 285,832
191,961 131,191
2,196,275 2,362,271
914,904 848,141
1,527,359
236,250 42,822
272,881 286,524
50,021 50,024
47,500 83,334
$ (173,533) -37.8%
(60,770) -31.7%
165,996 +7.6%
(66,763) -7.3%
1,527,359 -
(193,428) -82%
13,643 +5%
3 +0%
35,834 +75%
Total 3,414,399 4,369,157 5,617,498 1,248,341 +28.6%
Fund 402 Sewer Utility Fund
Year -to -Year Revenues and Transfers In by Category
MEM
2023 Revenues
through May
2024 Revenues
through May
Sewer Sales 4,101,126 4,185,927
Other Income 22,922 4,130
Investment Earnings 193,227 217,345
2025 Revenues
through May
4,499,055
43,211
134,902
2025 vs 2024
$
313,128
39,081
(82,443)
+7%
+946.3%
-37.9%
Total 4,317,275 4,407,402 4,677,168 269,766 +6.1%
Expenditures and Transfers Out
Revenues and Transfers In
Fund 402 Prior Year Comparisons YTD
1,000 2,000
3,000 4,000
5,000 6,000
Thousands
■ 2023
2024
■ 2025
82 City of Tukwila Monthly Finance Report 44
Fund 411 Foster Golf Course
Overview
2025 through May
Revenues
Transfers In
Expenditures
Transfers Out
2025 Total Budget
Budget Variance
% of Annual Budget
800,760 $
75,000
1,010,261
100,745
2,487,500
300,000
2,719,666
241,788
32.2%
25.0%
37.1%
41.7%
Net Revenues Less Expenditures
(235,246) (173,954)
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report
45 83
Fund 411 Foster Golf Course
Expenditures and Transfers Out by Category
Category
2025 Total Budget
2025 Expenses
through May
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Land, Structures, Machinery, Equipment
Transfers Out - Internal Cost Allocation
1,077,911
395,385
362,145
360,225
524,000
241,788
429,050
170,094
156,819
203,967
50,330
100,745
648,861
225,291
205,326
156,258
473,670
141,043
40%
43%
43.3%
56.6%
10%
42%
Total
w 3,500
-a
c
w 3,000
0
0
H 2,500
2,000
1,500
1,000
500
2,961,454 1,111,005
Fund 411 Expenditures and Transfers Out
2025 Expenditures YTD
2025 Total Budget
1,850,449 37.5%
% of Year Complete
41.7%
Revenues and Transfers In by Category
Category
2025 Total Budget
2025 Revenues
through May
Gambling & Excise Taxes
Greens Fees
General Government Revenue
Culture and Recreation Fees
Other Income
Investment Earnings
Rent & Concessions
Transfer In From General Fund
Total
in 3,000
-a
c
m
S' 2,500
0
r
H
2,000
1,500
1,000
500
3,000
1,610,000
165,000
5,000
11,000
60,000
579,718
67,521
1,300
16,384
23,586
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
(3,000)
(1,030,282)
(97,479)
(3,700)
0.0%
36.0%
40.9%
26.0%
5,384 148.9%
(36,414) 39.3%
633,500 112,251 (521, 249) 17.7%
300,000 75,000 (225,000) 25%
2,787,500 875,760 (1,911,740) 31.4%
Fund 411 Revenues and Transfers In
2025 Revenues YTD 2025 Total Budget
% of Year Complete
41.7%
84 City of Tukwila Monthly Finance Report 46
Fund 411 Foster Golf Course
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Land, Structures, Machinery, Equipment
Transfers Out - Internal Cost Allocation
330,189 $
150,409
204,757
250,139
91,380
380,504 $
158,567
128,085
324,986
51,632
95,944
429,050 $ 48,546
170,094 11,527
156,819 28,734
203,967 (121,019)
50,330 (1,302)
100,745 4,801
+12.8%
+7.3%
+22.4%
-37.2%
-2.5%
+5%
Total
1,026,874
1,139,718 1,111,005
(28,713) -2.5%
Fund 411 Foster Golf Course
Year -to -Year Revenues and Transfers In by Category
Category
Greens Fees
General Government Revenue
Culture and Recreation Fees
Other Income
Investment Earnings
Rent & Concessions
Sale of Capital Assets
Transfer In From General Fund
r2023 Revenue
through May
565,596
64,702
49
3,470
27,507
134,543
12,800
75,000
2024 Revenues
through May
478,842
50,401
278
4,083
38,177
122,811
4,000
75,000
2025 Revenues
through May
579,718
67,521
1,300
16,384
23,586
112,251
75,000
2025 vs 2024
100,876
17,120
1,022
12,301
(14,591)
(10,560)
(4,000)
+21.1%
+34.0%
+367.6%
+301%
Total
Expenditures and Transfers Out
Revenues and Transfers In
883,667
773,592 875,760
Fund 411 Prior Year Comparisons YTD
102,168 +13.2%
200 400 600 800 1,000 1,200
Thousands
■ 2023
2024
■ 2025
City of Tukwila Monthly Finance Report
47 85
Fund 412 Surface Water Utility Fund
Overview
2025 through May
Revenues
Expenditures
Transfers Out
2025 Total Budget
Budget Variance
% of Annual Budget
9,232,750 $
2,607,727
510,186
14, 742, 267
15,103, 982
1,555,760
62.6%
17.3%
32.8%
Net Revenues Less Expenditures
6,114,837 (1,917,475)
% of Year Complete
41.7%
86 City of Tukwila Monthly Finance Report 48
Fund 412 Surface Water Utility Fund
Expenditures and Transfers Out by Category
Category
2025 Total Budget
2025 Expenses
through May
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Land, Structures, Machinery, Equipment
Other Expenditures
Transfers Out - Internal Cost Allocation
Transfers Out - Debt Service
Transfers Out to Other Funds
2,028,653
1,023, 526
72,665
11,957,541
609,052 1,419, 601
264,246 759,280
16,780 55,885
1,609,351 10,348,190
108,298 (108,298)
21,597 - 21,597
727,476 303,115 424,361
494,951 123,737 371,214
333,333 83,334 249,999
30%
26%
23.1%
13.5%
0%
42%
25%
25%
Total
Thousands
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
16,659,742 3,117,913
Fund 412 Expenditures and Transfers Out
2025 Expenditures YTD
2025 Total Budget
13,541,829 18.7%
% of Year Complete
41.7%
Revenues and Transfers In by Category
Category
2025 Total Budget
2025 Revenues
throu • h Ma
Surface Water Sales
Permits
Grant Revenues
Other Income
Investment Earnings
Total
a
c
m
m
0
-c
t-
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
8,477,267
3,322,000
2,643,000
300,000
14,742,267
Fund 412 Revenues
8,571,054
(17)
287,055
209,201
165,458
9,232,751
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
2025 Revenues YTD 2025 Total Budget
93,787
(17)
(3,034,945)
(2,433,799)
(134,542)
(5,509,516)
101.1%
8.6%
7.9%
55.2%
62.6%
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report
49 87
Fund 412 Surface Water Utility Fund
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Land, Structures, Machinery, Equipment
Other Expenditures
Transfers Out - Internal Cost Allocation
Transfers Out - Debt Service
Transfers Out to Other Funds
504,437 $
238,801
19,140
1,169,165
261,949
274,935
123,736
(83)
644,727 $
270,052
40,044
1,317,934
92,320
260,653
288,682
123,736
117,500
609,052 $ (35,675)
264,246 (5,806)
16,780 (23,264)
1,609,351 291,417
108,298 15,978
(260,653)
303,115 14,433
123,737 1
83,334 (34,166)
-5.5%
-2.1%
-58.1 %
+22.1%
+17.3%
-100%
+5%
+0%
-29%
Total
2,592,080
3,155,648
3,117,913 (37,735)
-1.2%
Fund 412 Surface Water Utility Fund
Year -to -Year Revenues and Transfers In by Category
e
2023 Revenues
through May
2024 Revenues
through May
2025 Revenues
through May
2025 vs 2024
Surface Water Sales
Permits
Grant Revenues
Other Income
Investment Earnings
7,767,167 8,091,932 8,571,054 479,122
(17) (17)
4,349 287,055 282,706 +6500.5%
(63,621) 761,223 209,201 (552,022) -72.5%
91,920 196,886 165,458 (31,428) -16%
+6%
Total
Expenditures and Transfers Out
Revenues and Transfers In
7,795,466
9,054,390 9,232,751
Fund 412 Prior Year Comparisons YTD
178,361 +2.0%
1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000
Thousands
■ 2023
2024
■ 2025
88 City of Tukwila Monthly Finance Report 50
Fund 501 Equipment Rental
Overview
Revenues
Expenditures
Transfers Out
25 through May
2025 Total Budget
Budget Variance
% of Annual Budget
2,062,461 $
1,785,898
160,964
6,223,147
5,749,503
386,308
33.1%
31.1%
41.7%
Net Revenues Less Expenditures
115,599 87,336
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report
51 89
Fund 501 Equipment Rental
Expenditures and Transfers Out by Category
Category 2025 Total Budget
2025 Expenses
through May
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Land, Structures, Machinery, Equipment
Transfers Out - Internal Cost Allocation
519,798
237,888
790,900
1,903,717
2,297,200
386,308
190,518
92,975
375,163
747,637
379,605
160,964
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
329,280
144,913
415,737
1,156, 080
1,917,595
225,344
37%
39%
47.4%
39.3%
17%
42%
Total
o 7,000
-a
C
S 6,000
O
L
H
5,000
4,000
3,000
2,000
1,000
6,135,811 1,946,862
Fund 501 Expenditures and Transfers Out
2025 Expenditures YTD
2025 Total Budget
4,188,949 31.7%
% of Year Complete
41.7%
1
Revenues and Transfers In by Category
Category 2025 Total Budget
2025 Revenues
through Ma
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
Fleet Replacement Charges
Fleet Lease Charges
Fleet Repair Charges
Other Income
Investment Earnings
Sale of Capital Assets
Total
u 7,000
-o
c
ci 6,000
r
5,000
4,000
3,000
2,000
1,000
2,294,324
3,526,723
200,000
2,100
955,958
881,673
46,740
2,863
(1,338,366)
(2,645,050)
(153,260)
763
41.7%
25.0%
23.4%
136.3%
40,000 30,195 (9,805) 75.5%
160,000 145,032 (14,968) 90.6%
6,223,147 2,062,461 (4,160,686) 33.1%
Fund 501 Revenues
2025 Revenues YTD 2025 Total Budget
% of Year Complete
41.7%
90 City of Tukwila Monthly Finance Report 52
Fund 501 Equipment Rental
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
Salaries, Wages, & Overtime
Benefits
Supplies
Services
Land, Structures, Machinery, Equipment
Transfers Out - Internal Cost Allocation
123,805 $
63,599
249,946
297,217
12,736
145,995
165,887
82,700
298,786
623,407
130,376
153,299
190,518 $ 24,631
92,975 10,275
375,163 76,377
747,637 124,230
379,605 249,229
160,964 7,665
+14.8%
+12.4%
+25.6%
+19.9%
+191.2%
+5%
Total
893,298
1,454,455 1,946,862
492,407 +33.9%
Fund 501 Equipment Rental
Year -to -Year Revenues and Transfers In by Category
ler
Category
2023 Revenues
through May
2024 Revenues
through May
2025 Revenues
through May
2025 vs 2024
$
Fleet Replacement Charges
Fleet Lease Charges
Fleet Repair Charges
Other Income
Investment Earnings
Sale of Capital Assets
437,707 $
251,430
85
79,974
153,389
516,976 $
53,432
81,923
36,480
955,958 $ 438,982
881,673 881,673
46,740 (6,692) -12.5%
2,863 2,863
30,195 (51,728) -63%
145,032 108,552 +298%
+85%
Total
Expenditures and Transfers Out
Revenues and Transfers In
922,585 688,811
Fund 501 Prior Year Comparisons YTD
2,062,461 1,373,650 +199.4%
500 1,000
1,500
2,000
2,500
Thousands
■ 2023
2024
■ 2025
City of Tukwila Monthly Finance Report
53 91
Fund 502 Insurance - Active Employees
Expenditures and Transfers Out by Category
Category 2025 Total Budget
2025 Expenses
through May
Self Insurance Medical Claims
Dental Claims
Prescription Claims
Vision Claims
Stop Loss Reimbursements
TPA Admin Fees
Excess Loss Prem
Contracted Services
Employee Wellness Services
Transfers Out - Internal Cost Allocation
$
4,108,327 $
413,306
1,158, 759
21,641
155,034
621,372
100,000
18,000
209,077
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
1,404,265 $
164,454
408,607
9,805
(104,141)
79,269
286,433
27,592
4,945
87,116
2,704,062
248,852
750,152
11,836
104,141
75,765
334,939
72,408
13,055
121,961
34%
40%
35.3%
45.3%
51%
46%
28%
27%
42%
Total
Thousands
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
6,805,516 2,368,345
Fund 502 Expenditures and Transfers Out
2025 Expenditures YTD
2025 Total Budget
4,437,171 34.8%
% of Year Complete
41.7%
Revenues and Transfers In by Category
Category 2025 Total Budget
2025 Revenues
through May
Budget Variance Budget Variance
(Unfavorable) / Favorable % of Annual Budget
Employer Trust Contributions
Employee Voluntary Contributions
Employee Mandatory Contributions
Employee Benefit Program Services
Investment Inerest
Total
ur
2
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
7,943,114
311,980
2,699,074
21,911
138,578
22
(5,244,040)
21,911
(173,402)
22
47,500 82,270 34,770
8,302,594 2,941,855 (5,360,739)
Fund 502 Revenues
2025 Revenues YTD 2025 Total Budget
34.0%
44.4%
173.2%
35.4%
% of Year Complete
41.7%
92 City of Tukwila Monthly Finance Report
54
Fund 502 Insurance - Active Employees
Overview
2025 through May
Revenues
Expenditures
Transfers Out
2025 Total Budget
Budget Variance
% of Annual Budget
2,941,855 $
2,281,228
87,116
8,302,594
6,599,439
209,077
35.4%
34.6%
41.7%
Net Revenues Less Expenditures
573,511 1,494,078
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report 55
93
Fund 502 Insurance - Active Employees
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
Self Insurance Medical Claims
Dental Claims
Prescription Claims
Vision Claims
Stop Loss Reimbursements
TPA Admin Fees
Excess Loss Prem
Employee Wellness Supplies
Contracted Services
Employee Wellness Services
Transfers Out - Internal Cost Allocation
1,475,168 $
181,680
385,197
8,469
1,595,392 $
166,473
476,341
9,134
(119,788)
57,118 55,520
100,626 167,926
250 75
26,935 27,482
132
79,015 82,970
1,404,265 $ (191,127)
164,454 (2,019)
408,607 (67,734)
9,805 671
(104,141) 15,647
79,269 23,749
286,433 118,507
(75)
27,592 110
4,945 4,813
87,116 4,146
-12.0%
-1.2%
-14.2%
+7.3%
-13.1%
+42.8%
+70.6%
-100%
+0%
+3646%
+5%
Total
2,314,458
2,461,657 2,368,345
(93,312) -3.8%
Fund 502 Insurance - Active Employees
Year -to -Year Revenues and Transfers In by Category
Employer Trust Contributions
Employee Voluntary Contributions
Employee Mandatory Contributions
Employee Benefit Program Services
Investment Inerest
2023 Revenues
through May
2024 Revenues
through May
$ 2,328,382 $
35,201
36,243
78,545
2025 Revenues
through May
2,594,586 $
11,501
37,314
94,151
2025 vs 2024
$ %
2,699,074 $ 104,488
21,911 10,410
138,578 101,264
22 22
82,270 (11,881) -13%
+4%
+90.5%
+271.4%
Total
Expenditures and Transfers Out
Revenues and Transfers In
2,478,371
2,737,552 2,941,855
Fund 502 Prior Year Comparisons YTD
500 1.000 1,500
2,000 2,500
204,303 +7.5%
3,000 3,500
Thousands
■ 2023
2024
■ 2025
94 City of Tukwila Monthly Finance Report 56
Fund 503 Insurance - LEOFF I Retirees
Overview
2025 through May
Revenues
Expenditures
Transfers Out
2025 Total Budget
Budget Variance
% of Annual Budget
170,975 $
180,086
5,804
546,347
488,766
13,938
31.3%
36.8%
41.6%
Net Revenues Less Expenditures
(14,915) 43,643
% of Year Complete
41.7%
City of Tukwila Monthly Finance Report 57
95
Fund 503 Insurance - LEOFF I Retirees
Expenditures and Transfers Out by Category
Category
2025 Total Budget
2025 Expenses
through May
Budget Variance
(Unfavorable) / Favorable
Budget Variance
% of Annual Budget
Self Insurance Medical Claims
Dental Claims
Prescription Claims
Vision Claims
TPA Admin Fees
Excess Loss Premium
Long Term Care
Out of Pocket
Medicare Plan B
Contracted Services
Transfers Out - Internal Cost Allocation
$
150,000 $
32,931
169,644
4,419
12,612
24,160
15,000
75,000
5,000
13,938
27,991
12,208
63,880
1,354
7,313
11,868
41,960
805
12,707
5,804
122,009
20,723
105,764
3,065
5,299
12,292
(26,960)
74,195
(12,707)
5,000
8,134
19%
37%
37.7%
30.6%
58%
49%
280%
1%
0%
42%
Total
600
c
C
0 500
s
400
300
200
100
502,704
Fund 503 Expenditures and Transfers Out
2025 Expenditures YTD
185,890
2025 Total Budget
316,814
37.0%
% of Year Complete
41.7%
Revenues and Transfers In by Category
Category
2025 Total Budget
2025 Revenues
through May
Budget Variance
(Unfavorable) / Favorable
Budget Variance
% of Annual Budget
Employer Trust Contributions
Investment Inerest
Total
ur
600
a
c
m
2 500
0
r
H
400
300
200
100
545,833
514
546,347
Fund 503 Revenues
2025 Revenues YTD
170,780
194
170,974
2025 Total Budget
(375,053)
(320)
(375,373)
31.3%
37.7%
31.3%
% of Year Complete
41.7%
96 City of Tukwila Monthly Finance Report
58
Fund 503 Insurance - LEOFF I Retirees
Year -to -Year Expenditures & Transfers Out by Category
Category
2023 Expenses
through May
2024 Expenses
through May
2025 Expenses
through May
2025 vs 2024
Self Insurance Medical Claims
Dental Claims
Prescription Claims
Vision Claims
TPA Admin Fees
Excess Loss Premium
Long Term Care
Out of Pocket
Medicare Plan B
Contracted Services
Transfers Out - Internal Cost Allocation
27,163
12,036
65,842
903
6,630
40,186
39,552
1,131
25,264
5,270
31,222 $
7,916
65,872
9,590
6,290
6,967
50,929
2,061
17,998
2,000
5,532
27,991 $ (3,231)
12,208 4,292
63,880 (1,992)
1,354 (8,236)
7,313 1,023
11,868 4,901
41,960 (8,969)
805 (1,256)
12,707 (5,291)
(2,000)
5,804 272
-10.3%
+54.2%
-3.0%
-85.9%
+16.3%
+70.3%
-17.6%
-61%
-29%
-100%
+5%
Total
223,977
206,377
185,890 (20,487)
-9.9%
Fund 503 Insurance - LEOFF I Retirees
Year -to -Year Revenues and Transfers In by Category
Category
Employer Trust Contributions
Investment Inerest
2023 Revenues
through May
2024 Revenues
through May
133,188 $
2,944
139,140 $
2,296
2025 Revenues
through May
170,780 $
194
2025 vs 2024
0
31,640
+23%
(2,102) -91.6%
Total
Expenditures and Transfers Out
Revenues and Transfers In
136,132 141,436
Fund 503 Prior Year Comparisons YTD
170,974
50
29,538 +20.9%
100 150 200 250
Thousands
■ 2023
■ 2024
■ 2025
City of Tukwila Monthly Finance Report
59 97