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HomeMy WebLinkAboutFIN 2025-07-28 COMPLETE AGENDA PACKET 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 Finance and Governance Committee  Armen Papyan, Chair  Dennis Martinez  Verna Seal Distribution: A. Papyan D. Martinez V. Seal T. Sharp J. McConnell Mayor McLeod M. Wine A. Youn L. Humphrey AGENDA MONDAY, JULY 28, 2025 – 5:30 PM ON-SITE PRESENCE: TUKWILA CITY HALL HAZELNUT CONFERENCE ROOM 6200 SOUTHCENTER BOULEVARD REMOTE PARTICIPATION FOR THE PUBLIC: 1-253-292-9750, ACCESS CODE: 441656166# Click here to: Join Microsoft Teams Meeting For Technical Support: 1-206-433-7155 Item Recommended Action Page 1. BUSINESS AGENDA a. Ordinance Amending Business License Regulations Adam Schierenbeck, Acting Fiscal Manager b. Compensation Policy Discussion TC Croone, Chief People Officer c. 2026 Budget Adjustment Process Discussion Aaron Be Miller, Finance Director d. 2025 2nd Quarter Financial Report Tony Cullerton, Deputy Finance Director a. Forward to 8/11 C.O.W. & 08/18 Regular Consent b. Return to 8/25 Committee c. Discussion only d. Discussion only Pg.1 Pg.23 Pg.41 Pg.43 2. MISCELLANEOUS Next Scheduled Meeting: August 25, 2025 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Aaron BeMiller, Finance Director BY: Adam Schierenbeck, Acting Fiscal Manager CC: Thomas McLeod DATE: July 22, 2025 SUBJECT: Business Licensing – Amendments to Chapter 5.04 TMC ISSUE The Finance Department is recommending amendments to Chapter 5.04 of the Tukwila Municipal Code (TMC) concerning business licensing. The amendments will align the code with current practice and state law, create administrative efficiencies, and strengthen enforcement of the City’s business licensing requirements. BACKGROUND In 2019, the City joined into a partnership with the Washington State Department of Revenue (DOR) for administering City business license applications and issuing City business license endorsements. Staff have identified the need to align the TMC with current practice as it relates to DOR’s administration of business licenses, in addition to improving other areas of the code. Also, RCW 35.90.080 requires the City to adopt the mandatory provisions of the model ordinance developed by Washington cities when imposing a general business license requirement. Effective January 1, 2026, the minimum threshold under which a nonresident business is exempt from paying a business license fee will increase from $2,000 to $4,000, per the model ordinance. DISCUSSION Staff are proposing the following amendments to administer business licensing. An amendment to the minimum threshold is required by state law. Definition Changes Certain definition changes are recommended based upon definitions that have been adopted by other Washington cities. The new definitions add clarity and do not otherwise alter the City’s business licensing requirements. Purpose of Business License Regulations The business licensing provisions are deemed an exercise of the power of the City to license for regulation and for revenue. Ensuring the legality of businesses and compliance with other sections of the TMC, for which separate code enforcement provisions already exist, is secondary and distinct from issuance of a general business license. It is recommended that the purpose statement be amended accordingly, and that a new section be added to clarify that the issuance of a business license does not indicate the legality of the business. Minimum threshold The Washington State business license model ordinance provides that if the annual gross income derived by a nonresident within Tukwila does not exceed $2,000 per calendar year, then the business license fee is waived. This threshold amount will increase to $4,000 effective January 1, 2026, and will subsequently be adjusted every 48 months based on the Consumer 1 INFORMATIONAL MEMO Page 2 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/2025 AGENDAS/2025 Agenda Packets/2025 FIN - Agenda Packets/07-28-25 FIN/Originals/1b - Ordinance BL Regulations/Informational Memorandum (Info Memo).docx Price Index for each of the preceding four years. This change is required by state law. Businesses with gross income under the threshold are still required to apply for and obtain a City business license. Enforcement New and amended enforcement provisions are recommended to more effectively administer and enforce the City’s business licensing requirements. These include: • A more efficient means for staff to assess underpaid license fees, including the right to estimate the license fee due if the business has not kept or does not provide requested information to substantiate the proper amount due. • Stronger enforcement tools for failure to follow the business licensing requirements, including the possibility of issuing a criminal violation or injunction. • Specific language stating that the Finance Director and staff have the right to inspect documentation or places of business to ensure compliance with business license regulations and may call upon other city departments to ensure compliance. FINANCIAL IMPACT The code changes are not anticipated to have a significant financial impact on business license fee revenues. The change to the minimum threshold may result in reduced business license fee revenue from nonresident businesses. However, this amount will likely be offset by a greater ability to assess and enforce past due or underpaid license fees. RECOMMENDATION The Council is being asked to approve the ordinance and consider this item at the August 11, 2025 Committee of the Whole Meeting and subsequent August 18, 2025 Regular Meeting. ATTACHMENTS A. Draft Business License Ordinance B. 2026 Business License Model Threshold Update (from AWC) 2 2025 Legislation: Business Licensing Fees Page 1 of 16 Version: 7/22/25 Staff: A. Schierenbeck AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; AMENDING VARIOUS ORDINANCES AS CODIFIED THROUGHOUT TUKWILA MUNICIPAL CODE (TMC) CHAPTER 5.04, “BUSINESS LICENSES & REGULATIONS, LICENSES GENERALLY”; REPEALING TMC SECTIONS 5.04.050, 5.04.080, AND 5.04.105; ESTABLISHING TMC SECTIONS 5.04.140 AND 5.04.150; TO AMEND THE BUSINESS LICENSE FEES, MINIMUM THRESHOLD AND ADMINISTRATIVE PROVISIONS RELATED TO BUSINESS LICENSING; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, in 2019, the City joined into a partnership with the Washington State Department of Revenue (DOR) for administering City business license applications and issuing City business license endorsements; and WHEREAS, RCW 35.90.080 requires the City to adopt the mandatory provisions of the model ordinance developed by Washington cities when imposing a general business license requirement, including a minimum threshold under which a nonresident business is relieved of the requirement to pay the business license fee, which will be amended effective January 1, 2026; and WHEREAS, additional amendments to the City’s business licensing code will align the code with current practice, create administrative efficiencies, and strengthen enforcement of the City’s business licensing requirements; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 5.04.010 Amended. Ordinance Nos. 2315 §1 (part), 2333 §1, 2356 §1, 2381 §1, 2496 §1, 2544 §2, and 2588 §2, as codified at TMC Section 5.04.010, “Definitions,” are hereby amended to read as follows: 5.04.010 Definitions For the purpose of this chapter, the following definitions shall apply: DRAFT 3 2025 Legislation: Business Licensing Fees Page 2 of 16 Version: 7/22/25 Staff: A. Schierenbeck 1. “Business,” means and includes all activities, occupations, trades, pursuits, or professions located and/or engaged in within the City, that involves the manufacturing or processing of materials of any type; the sale of goods, wares or merchandise; the rendition of services or the repair of goods, wares or merchandise for any consideration with the object of gain, benefit or advantage to the person engaging in the same or to any other person or class, directly or indirectly, and includes nonprofit enterprises, whether or not an office or physical location for the business lies within the City limits. 2. “Department,” means Finance Department. 3. “Director,” means the Finance Director or his or her designee. 4. “Engaging in business” means commencing, conducting, or continuing in business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business. a. This section sets forth examples of activities that constitute engaging in business in the City and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimus business activities in the City without having to pay a business license fee. The activities listed in this section are illustrative only and are not intended to narrow the definition of "engaging in business" as defined above. If an activity is not listed, whether it constitutes engaging in business in the City shall be determined by considering all the facts and circumstances and applicable law. b. Without being all inclusive, any one of the following activities conducted within the City by a person, or its employee, agent, representative, independent contractor, broker or another acting on its behalf constitutes engaging in business and requires a person to register and obtain a business license: (1) Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the City. (2) Owning, renting, leasing, using, or maintaining, an office, place of business, or other establishment in the City. (3) Soliciting sales. (4) Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance. (5) Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf. (6) Installing, constructing, or supervising installation or construction of, real or tangible personal property. (7) Soliciting, negotiating, or approving franchise, license, or other similar agreements. (8) Collecting current or delinquent accounts. 4 2025 Legislation: Business Licensing Fees Page 3 of 16 Version: 7/22/25 Staff: A. Schierenbeck (9) Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials. (10) Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system services, surveying, and real estate services including the listing of homes and managing real property. (11) Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians. (12) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings. (13) Training or recruiting agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the City, acting on its behalf, or for customers or potential customers. (14) Investigating, resolving, or otherwise assisting in resolving customer complaints. (15) In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place. (16) Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf. c. If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person’s behalf, engages in no other activities in or with the City but the following, it need not register and obtain a business license. (1) Meeting with suppliers of goods and services as a customer. (2) Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions. (3) Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf. This provision does not apply to any board of director member or attendee engaging in business such as a member of a board of directors who attends a board meeting. (4) Renting tangible or intangible property as a customer when the property is not used in the City. (5) Attending, but not participating in a "trade show" or "multiple vendor events". Persons participating at a trade show shall review the City's trade show or multiple vendor event ordinances. (6) Conducting advertising through the mail. 5 2025 Legislation: Business Licensing Fees Page 4 of 16 Version: 7/22/25 Staff: A. Schierenbeck (7) Soliciting sales by phone from a location outside the City. d. A seller located outside the City merely delivering goods into the City by means of common carrier is not required to register and obtain a business license, provided that it engages in no other business activities in the City. Such activities do not include those in subsection 5.04.010(4)(c). e. The City expressly intends that engaging in business include any activity sufficient to establish nexus for purposes of applying the license fee under the law and the constitutions of the United States and the State of Washington. Nexus is presumed to continue as long as the taxpayer benefits from the activity that constituted the original nexus generating contact or subsequent contacts. 5. “License or licensee,” as used generally in this chapter, means and includes respectively the words “permit” or “permittee” or the holder for any use or period of time of any similar privilege, wherever relevant to any provision of this chapter or other law or ordinance means any business that applies for or is granted a business license. The term shall also mean the person who submits a business license application for approval, the owner or operator of a business, and any corporation, partnership, nonprofit, or organization which owns or operates the business. 6. “Nonprofit organization” includes individual person(s), partnerships, joint ventures, societies, associations, churches, clubs, trustees, trusts or corporations; or any officers, agents, employees, factors or any kind of personal representatives of any thereof, in any capacity, acting either for himself or any other person under either personal appointment or pursuant to law who qualifies under definition of and certification by the Internal Revenue Service as nonprofit. 76. “Person,” means any individual, receiver, agent, trustee in bankruptcy, trust, estate, firm, co-partnership, joint venture, company, joint stock company, business trust, corporation, society, or group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise. 87. “Person engaged in business” means the owner or one primarily beneficially interested in lawful business for profit and not employees. 98. “Home occupation” means any business conducted in a residence within the corporate city limits of Tukwila, such business being subject to the requirements set forth in TMC Chapter 18.06, “Definitions,” in the section entitled “Home Occupation.” 109. “Employee” means any individual employed at any business who performs any part of their duties within the City of Tukwila including all full-time, part-time, and temporary employees or workers. The term includes self-employed persons, sole proprietors, owners, officers, managers, and partners. An independent contractor is not an employee. and includes each of the following persons who are not required by the City to have his/her/its own separate City of Tukwila business license: a. Any person employed at any business who performs any part of their duties within the City of Tukwila or reports from a location within the City’s corporate limits; and 6 2025 Legislation: Business Licensing Fees Page 5 of 16 Version: 7/22/25 Staff: A. Schierenbeck b. Any person who is on the business’s payroll, andincludes all full-time, part-time, and temporary employees or workers ; and c. Owners, officers, managers, and partners; and d. Any other person who performs work, services or labor at the business including, but not limited to, family members, regardless of whether they receive a wage from the business. e. Self-employed persons, sole proprietors, owners, officers, managers, and partners; and f. Any other person who performs work, services or labor at the business, including an independent contractor who may be exempt from requirements to have a separate City of Tukwila business license. Employee is a unit of measure used to determine the Business License fee. 10. “Business Licensing Service” or “BLS” means the office within the Washington State Department of Revenue providing business licensing services to the City. 11. “Business license” means a license issued by the City authorizing a person to engage in business within the City. “Business license” also means the licensing document produced by the Business Licensing Service upon which the City-issued business license appears as an endorsement. 12. “City” means the City of Tukwila. 13. “Place of business” means a temporary or permanent physical location within City limits where business is conducted or is intended to be conducted. Section 2. TMC Section 5.04.012 Amended. Ordinance No. 2315 §1 (part), as codified at TMC Section 5.04.012, “Purpose,” is hereby amended to read as follows: 5.04.012 Purpose The purpose provisions of this chapter shall be deemed an exercise of the power of the City to license for regulation and for revenue. is to regulate and insure the legal conduct of businesses, assist in the effective administration of health, fire, building, zoning and other codes of the City, to impose fees for revenue purposes, and to provide a means for obtaining public information and compiling statistical information on existing and new businesses in the City. Section 3. TMC Section 5.04.020 Amended. Ordinance Nos. 2315 §1 (part), 2333 §3, 2356 §2, 2381 §3, 2496 §2, 2544 §3, and 2588 §4, as codified at TMC Section 5.04.020, “Applications and fees required,” is hereby amended to read as follows: 5.04.020 Applications and fees required A. Application Required. Any person desiring to establish or conduct any business enterprise or undertaking within the corporate limits of the City shall first file a master business license application through the BLSWashington State Department of Licensing Master License Service in coordination with the City of Tukwila Finance Department for a license to conduct such business. The application shall be upon a form furnished by the BLS Washington State Department of Licensing Master License Service on which the 7 2025 Legislation: Business Licensing Fees Page 6 of 16 Version: 7/22/25 Staff: A. Schierenbeck applicant shall state the company name and address; the nature of the business activity or activities in which he/she desires to engage; the place where the business will be conducted; the number of employees, whether full or part-time, on the payroll as of January 1, or, if a new business, the number to be employed on the opening date; the Washington State Unified Business Identifier (UBI) number; and other information pertaining to the business as required by the City or BLS. The applicant shall be required to provide all information requested on said form and failure to do so shall be grounds for refusing to issue the business license. If a person maintains more than one place of business within the City, a separate general business license registration is required for each business. Owners of residential rental property are not subject to the application requirements in this chapter but shall adhere to the application rental business license and inspection program requirements in TMC Chapter 5.06. B. Fee – General. 1. The application must be accompanied by the appropriate application business license fee in accordance with the fee schedule as adopted by separate resolution of the City Council, as well as the Master License ServiceBLS handling fee required by RCW 19.02.075. For persons with a place of business in Tukwilathe City, other than a home occupation,T the business license fee for the annual license (Business License fee) issued under this chapter shall be determined based on the total number of employees. The business license fee shall be determined by multiplying the appropriate Business License fee by the number of employees working at or reporting from a location within the City’s corporate limits, in accordance with the fee schedule adopted by resolution of the City Council. In no event shall the Business License fee be less than the minimum fee set forth in this chapter. If the number of employees is not known at the time of application or renewal of the license, the business shall estimate the maximum number of employees they anticipate working any time during the 12-month period subject to licensure and remit the associated business license fee. 2. It will be the responsibility of the business to determine the total number of employees and, if required, demonstrate to the satisfaction of the Finance Director that the information pertaining to the Bbusiness Llicense fee is accurate. Businesses without a full year of operating history shall estimate the number of employees that will be employed in a 12-month period. C. Minimum ThresholdFee.There shall be an annual minimum fee for a Business License in accordance with the fee schedule adopted by resolution of the City Council. 1. For purposes of the license by this chapter, any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the City is equal to or less than the threshold amount provided in this subsection $2,000 and who does not maintain a place of business within the City, shall submit a business license registration to the Finance Director or designee but is exempt from the business license fee requirement as provided in this chapter. The threshold does not apply to regulatory license requirements or activities that require a specialized permit. 1. Prior to January 1, 2026, the threshold amount is $2,000 per calendar year. 2. Beginning January 1, 2026, the threshold amount is $4,000 per calendar year. The threshold amount will be adjusted every forty-eight months on January 1, by an 8 2025 Legislation: Business Licensing Fees Page 7 of 16 Version: 7/22/25 Staff: A. Schierenbeck amount equal to the increase in the Consumer Price Index (“CPI”) for “West Urban, All Urban Consumers” (CPI-U) for each 12-month period ending on June 30 as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate this adjustment, the current rate will be multiplied by one plus the cumulative four- year (forty-eight-month) CPI increase using each 12-month period ending on June 30 of each prior year and rounded to the nearest $100. However, if any of the annual CPI increases are more than five (5) percent, a five (5) percent increase will be used in computing the annual basis, and if any of the annual CPI decreased during the forty-eight- month period, a zero (0) percent increase will be used in computing the annual basis. 2. Businesses doing business in the City that have no employees physically working within the City’s corporate limits shall pay the minimum fee required under this chapter. 3. An entity subject to exemption pursuant to TMC Section 5.04.090 need not pay a Business License fee. An entity engaging in some activities or functions that are exempt from the Business License fee and some that are not exempt shall pay a Business License fee based on the number of employees involved in the functions or activities that are not exempt. D. New Businesses. The Business License fee for a new business shall be based on the estimated number of employees that will work in Tukwila for a 12-month period. If, during the first license year for a new business, the City determines the actual number of employees is significantly different than the estimated number identified by the business owner, the amount of the Business License fee will be recalculated for the new business. If the revised Business License fee is higher than the original Business License fee paid by the business owner for the first license year, the business owner must pay the difference to the City within 30 days after written notice of the amount owed is sent to the business owner by the City. ED. Over-reporting of Employees. In the event the licensee business owner miscounted overreported the number of employees, by an error factor of more than 15% and paid an excess Bresulting in an overpayment of the business Llicense fee as a result, a business the licensee may request that the City refund the overpayment. The request must be made in writing to the Finance Department, and the City must receive the refund request and all supporting documentation no later than 60 days after the end of the calendar year in which the error overpayment was made. If the City is satisfied the business owner licensee paid an excess Bbusiness Llicense fee, the City will refund the excess amount paid to the business owner. FE. Under-reporting of Employees. If, at the time of license renewal, the City determines the business owner under-reported the number of employees for the preceding year license period or has otherwise underpaid the business license fee properly dueby an error factor of more than 15%, the business shall pay the balance of the corrected Bbusiness Llicense fee (calculated as the difference between the paid Business License fee and the corrected Business License fee). The Finance Director shall mail written notice of the balance due to the business owner, and the business shall pay the balance due to the City within 30 days of the date the written notice is mailed by the City. A penalty of 20% of the balance due will be applied if payment is not received 9 2025 Legislation: Business Licensing Fees Page 8 of 16 Version: 7/22/25 Staff: A. Schierenbeck within 30 days. An additional penalty as adopted by separate resolution of the City Council shall be assessed if payment is not received by the notice due date or any extension thereof. G. Payment by Draft or Check. Payment made by draft or check shall not be deemed a payment of the Business License fee unless and until the same has been honored in the usual course of business, nor shall acceptance of any such check or draft operate as a quittance or discharge of the Business License fee unless and until the check or draft is honored. Any person who submits a Business License fee payment by check to the Washington State Department of Licensing Master License Service or City, pursuant to the provisions of this chapter, shall be assessed an NSF fee set by the Finance Director if the check is returned unpaid by a bank or other financial institution for insufficient funds in the account or for any other reason. Section 4. TMC Section 5.04.030 Amended. Ordinance Nos. 2315 §1 (part) and 2588 §5, as codified at TMC Section 5.04.030, “Issuance of a license and annual renewal,” is hereby amended to read as follows: 5.04.030 Issuance of a license and annual renewal A. Upon review and approval of the a business license application by the City, the BLS Washington State Department of Licensing Master License Service or the Finance Director or designee shall issue a business license to the applicant. The license shall grant to the applicant the privilege to conduct such business at a designated location in the City for the license period set forth in TMC Section 5.04.040. B. Persons continuing to engage in business within the City shall renew their business license(s) each year. Businesses must pay a renewal fee, as well as the BLSMaster License Service handling fee required by RCW 19.02.075. The annual business license renewal fee shall be in accordance with the fee schedule adopted by resolution of the City Council. The annual fee may be prorated in order to conform the license expiration date with the expiration date established by the Master License Service.Persons who do not renewing their business license by the expiration date may be subject to a late renewal penalty charged by the Master License ServiceBLS as provided in RCW 19.02.085. C. Failure to renew the a business license within one hundred twenty (120) days of expiration will result in the cancellation of the business license and will requires a new application for a business license to engage in business in the City. Section 5. TMC Section 5.04.040 Amended. Ordinance Nos. 2315 §1 (part), 2333 §4, and 2356 §3, as codified at TMC Section 5.04.040, “Prorating fee,” is hereby amended to read as follows: 5.04.040 License periodProrating fee The license fee set forth in this chapter for new business license applications shall be for the calendar period beginning the date the business license application is submitted by the licensee through the last day of the same month in the following year. The license fee for business license renewals shall be for one year following the date of the prior 10 2025 Legislation: Business Licensing Fees Page 9 of 16 Version: 7/22/25 Staff: A. Schierenbeck business license expiration date. , and each person engaged in business must pay the full license fee for the current year. License fees are notn refundable and are not prorated, except as provided in TMC Section 5.04.100, regardless of whether the business operates for the entire license period calendar year, or whether the business license is denied, revoked, withdrawn or suspended with cause. Section 6. Repealer. Ordinance Nos. 2315 §1 (part), 2333 §5, 2356 §, 2381 §4, 2496 §3, and 2544 §4, as codified at TMC Section 5.04.050, “Late acquisition or renewal”, are hereby repealed, thereby eliminating this section: 5.04.050 Late acquisition or renewal A. Penalty. For new businesses, failure to pay the Business License fee by the first day of commencing business operations pursuant to TMC Section 5.04.020 will result in a late acquisition penalty in accordance with the fee schedule adopted by resolution of the City Council. For renewing businesses, failure to pay the Business License renewal fee by January 31st shall constitute delinquency and shall result in a penalty in accordance with the fee schedule adopted by resolution of the City Council. No business license and/or renewal for the current period shall be granted until all delinquent fees, together with penalties, have been paid in full. The Finance Director or his/her designee is authorized, but not obligated, to waive all or any portion of the penalties and interest provided herein in the event the Finance Director determines that the late payment was the result of excusable neglect or extreme hardship. B. Collection of Fees and Penalties. Any license fee due and unpaid under this chapter, and all penalties thereon, shall constitute a debt to the City and may be collected in court proceedings in the same manner as any other debt in like amount, which remedy shall be in addition to any and all other existing remedies. C. Revocation of License. The Finance Director may revoke any business license issued pursuant to this chapter to any business or other person who is in default in payment of any license fee hereunder, or who shall otherwise fail to comply with any of the provisions of this chapter. Notice of such revocation shall be issued pursuant to TMC Section 5.04.110.D. On and after the date of the notice of revocation, any business subject thereto that continues to engage in business shall be deemed to be operating without a license, and shall be subject to any and all penalties herein provided. D. There shall be a penalty to reinstate any business license revoked through nonpayment of the Business License fee. The penalty shall be identified in the fee schedule adopted by resolution of the City Council. Section 7. TMC Section 5.04.060 Amended. Ordinance No. 2315 §1 (part), as codified at TMC Section 5.04.060, “Transferability,” is hereby amended to read as follows: 5.04.060 Transferability The license granted in pursuance hereof shall be personal to the licensee and it shall not be assignable or transferable to any other person. A change in the Unified Business Identifier issued by the Washington State Department of Revenue will require the 11 2025 Legislation: Business Licensing Fees Page 10 of 16 Version: 7/22/25 Staff: A. Schierenbeck submission of a new business license application and payment of the applicable business license fee as set forth in this chapter. Section 8. TMC Section 5.04.070 Amended. Ordinance Nos. 2315 §1 (part), 2333 §6, 2356 §5, 2381 §5, and 2496 §4, as codified at TMC Section 5.04.070, “Change in UBI #, ownership, physical location or nature of business,” is hereby amended to read as follows: 5.04.070 Change in UBI #, ownership, physical location or nature of business The license granted pursuant hereto shall be used to conduct the particular business or type of business at the designated address for which such license is issued. Any license holder with a change in the nature of the business, a change in the Unified Business Identifier (UBI) issued by the Washington State Department of Licensing, or a change in the physical location of the business, and/or a change in ownership of the business shall immediately submit an newapplication for licensure to the BLSFinance Department documenting the relevant change(s). A change in the UBI or a change in ownership for the business will require payment of the applicable license fee set forth in the fee schedule adopted by resolution of the City Council, in addition to the submission of a new application. Section 9. Repealer. Ordinance No. 2315 §1 (part), as codified at TMC Section 5.04.080, “Required – Display,” is hereby repealed, thereby eliminating this section: 5.04.080 Required – Display It is unlawful for any person to engage in or carry on any business activity in the City without first procuring a license as provided in this chapter. The license shall thereafter be prominently displayed in the place of business of the applicant. Section 10. TMC Section 5.04.090 Amended. Ordinance Nos.2315 §1 (part), 2333 §7, 2356 §6, 2544 §5, 2588 §6, and 2593 §2, as codified at TMC Section 5.04.090, “Exemption,” is hereby amended to read as follows: 5.04.090 Exemptions A. Exemptions. The following persons entities may claim an exemption are exempt from the Bbusiness Llicense fee, but if exempt under this subsection such persons entities shall still register apply for and obtain a business license under this chapter: 1. Certain Organizations exempt from federal income tax under a provision of 26 USC Section 501(c). An Such organization that files with the City a copy of its current IRS 501(c)(3) exemption determination letter issued by the must be able to show satisfactory proof from the Internal Revenue Service (IRS) of its tax exempt status, except in the case of religious organizations which are assumed by the IRS of being exempt from taxes under 26 USC Section 501(c)(3) without application for or issuance of a determination letter by the IRS. 12 2025 Legislation: Business Licensing Fees Page 11 of 16 Version: 7/22/25 Staff: A. Schierenbeck 2. A governmental entity that engages solely in the exercise of governmental functions. Activities that are not exclusively governmental, such as some of the activities of a hospital or medical clinic, are not exempt under this chapter. 3. A nonprofit business operated exclusively for a religious purpose, upon furnishing proof to the Finance Director of its nonprofit status. For the purposes of this chapter, the activities that are not part of the core religious functions are not exempt. 4. A civic group, service club, or social organization that is not engaged in any profession, trade, or occupation, but is organized to provide civic, service, or social activities in the City. a. Examples of such organizations include but are not limited to: Soroptomists, Kiwanis, Lions’ Rotary, American Legion, children’s and adults’ athletic leagues and similar types of groups, clubs or organizations. 53. A court interpreter who provides an oral translation between speakers who speak different languages, and who is either a certified interpreter, qualified interpreter, or registered interpreter, and who makes less than $12,000 in gross annual revenue in Tukwila, Washington. Certified, qualified and registered interpreters are defined as follows: a. "Certified interpreter" means an interpreter who is certified by the administrative office of the courts. b. "Qualified interpreter" means a person who is readily able to interpret or translate spoken and written English for non-English-speaking persons and to interpret or translate oral or written statements of non-English-speaking persons into spoken English. c. "Registered interpreter" means an interpreter who is registered by the administrative office of the courts. 64. A public card room (also known as a social card room) with a house-banked license. B. Nothing in this chapter shall be construed to require a license for any farmer solely engaged in the business of, gardener, or other person to selling, delivering or peddlinge any fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats or any farm produce or ediblesother agricultural product that is raised, caught, produced or manufactured by such person in any place within the State. “Agricultural product” does not include cannabis or cannabis products as defined in RCW 69.50.101. Section 11. TMC Section 5.04.100 Amended. Ordinance Nos. 2315 §1 (part) and 2588 §7, as codified at TMC Section 5.04.100, “Failure to Pay Fee,” is hereby amended to read as follows: 5.04.100 Failure to Pay Fee A. If any person engaged in business fails or refuses to pay the required license fee for any yearperiod of time as herein provided, they shall not be granted a license for the 13 2025 Legislation: Business Licensing Fees Page 12 of 16 Version: 7/22/25 Staff: A. Schierenbeck current year until such delinquent license fees in accordance with the fee schedule adopted by resolution of the City Council have been paid, in addition to the current years’ required fee(s)the Director shall assess all license fee amounts that should have been paid for the last four years, as determined by the Director, plus a penalty as adopted by separate resolution of the City Council. Such fees may be prorated as the City deems necessary if the assessment period is less than a 12-month license period. Such fees may be collected by the City by proper legal action brought for that purpose if any person engaged in business fails or refuses to pay the license fee. This remedy is cumulative and not exclusive. B. If a person fails or refuses a Department request to provide or make available records to determine the amount of the license fee due under this chapter, the Director is authorized to determine the amount of the license fee payable by obtaining facts and information upon which to base the estimate of the fees due. Such fee assessment shall be deemed prima facie correct and shall be the amount of the business license fee owing to the City by the person. C. The balance of the business license fee shall be due within 30 days of the date the written notice is mailed by the City. An additional penalty as adopted by separate resolution of the City Council shall be assessed if payment is not received by the notice due date or any extension thereof. Business license fees may be collected by the City by proper legal action brought for that purpose if any person engaged in business fails or refuses to pay the license fee. This remedy is cumulative and not exclusive. Section 12. Repealer. Ordinance Nos. 2315 §1 (part) and 2588 §8, as codified at TMC Section 5.04.105, “Additional Requirements for Issuance of Business License,” is hereby repealed, thereby eliminating this section: 5.04.105 Additional Requirements for Issuance of Business License A. A business license will only be issued provided the building, structure, operation or location of the business for which the license is sought complies with the requirements or standards of the Tukwila Municipal Code. B. In any case where an applicant seeks a business license for a business to be located in a building or structure for which a building or land use permit is required to operate the business as proposed, whether as a newly constructed building or structure or a remodeled building or structure, the permit process, including final inspections/issuance of occupancy permits, shall be completed prior to issuance of a business license. C. In any case where an applicant seeks a business license for a business to be located in a building or structure for which no building or land use permit is required to operate the business as proposed, the building department may require the business premises to be inspected for compliance with life and safety codes. If the inspection reveals outstanding code violations, the business license will not be issued until all life and safety code violations are resolved. 14 2025 Legislation: Business Licensing Fees Page 13 of 16 Version: 7/22/25 Staff: A. Schierenbeck Section 13. TMC Section 5.04.110 Amended. Ordinance Nos. 2315 §1 (part), 2333 §8, 2352 §2, 2496 §5, and 2588 §9, as codified at TMC Section 5.04.110, “Denial, Suspension, Revocation,” is hereby amended to read as follows: 5.04.110 Denial, Suspension, Revocation A. The Finance Director may deny any business license application pursuant to TMC Section 5.04.105. B. A. The Finance Director may deny, suspend or revoke any business license under this chapter where one or more of the following conditions exist: 1. The licensee is in default of any fee, chargestax or amounts due and payable to the City of Tukwila, as outlined in the Tukwila Municipal Code or City policy. 2. The license was procured by fraud or by a false or misleading representation of fact in the application, or in any report or record required to be filed with the Finance Department. 3. The building, structure, equipment, operation or location of the business for which the license was issued does not comply with the requirements or standards of the Tukwila Municipal Code. 4. The license holder, his or her employee, agent, partner, director, officer or manager has knowingly violated any provisions of any chapter of the Tukwila Municipal Code, or has knowingly permitted, failed to prevent, or has otherwise allowed a violation of any of the provisions of any chapter of the Tukwila Municipal Code to occur on his or her business premises. 5. The license holder, his or her employee, agent, partner, director, officer or manager has repeatedly violated any provision of City policies or the Tukwila Municipal Code after having received notice of such violation. 6. Conduct of the business would be in violation of any local, state or federal law, rule or regulation prohibiting the conduct of that type of business. 7. The property at which the business is located has been determined by a court to be a chronic nuisance property, a Violation Notice and Order for a chronic nuisance property has been issued and not timely remedied or appealed, or the Hearing Examiner has determined the property to be a chronic nuisance property, as provided in TMC Chapter 8.27. 8. The building or structure for which the licensee seeks a business license requires a building or land use permit under any provision of City policies or the Tukwila Municipal Code for which the permit process, including final inspections and/or issuance of occupancy permits, has not been completed. 9. The building or structure for which the licensee seeks a business license has not been inspected for compliance with life and safety codes, if such are required under any provision of City policies or the Tukwila Municipal Code, or if such inspection reveals outstanding code violations. 15 2025 Legislation: Business Licensing Fees Page 14 of 16 Version: 7/22/25 Staff: A. Schierenbeck CB. Upon determination that grounds for denial, suspension or revocation of a license exist, the Finance Director shall send the licenseeapplicant or license holder a Notice of Denial, Suspension or Revocation. The Notice of Denial, Suspension or Revocation shall set forth the grounds for and terms of the denial, suspension or revocation, and a statement advising the applicant or license holder that he/she may appeal the Notice of Denial, Suspension or Revocation in accordance with the provisions of TMC Section 5.04.112. The filing of such appeal shall stay the action of the Finance Director pending decision on the appeal by the City Hearing Examiner or other hearing body pursuant to TMC Section 5.04.112. DC. Receipt of the Notice of Denial, Suspension or Revocation. The Notice of Denial, Suspension or Revocation shall be: (1) sent to the licenseeapplicant or license holder by registered mail at the address provided on the license application; (2) hand delivered to the address provided on the license application; or (3) posted upon the premises where such licenseeapplicant or license holder conducts the business that is the subject of the denied, suspended or revoked license. Notice shall be deemed received by the licenseeapplicant or license holder upon posting, hand delivery, or 3 business days after mailing, whichever occurs first. D. Ten (10) calendar days after receipt of the notice of denial, suspension, or revocation, any business subject thereto that continues to engage in business shall be deemed to be operating without a license and shall be subject to penalties and enforcement as provided in TMC Section 5.04.115, unless an appeal has been filed pursuant to TMC Section 5.04.112 for which a written decision has not been issued. E. There shall be assessed a penalty to reinstate any business license that has been revoked or suspended under this subsection, as adopted by separate resolution of the City Council. Section 14. TMC Section 5.04.115 Amended. Ordinance Nos. 2315 §1 (part) and 2549 §2, as codified at TMC Section 5.04.115, “Penalties,” is hereby amended to read as follows: 5.04.115 Violations and Enforcement Penalties Any violation of this chapter, or failure to comply with any of the requirements of this chapter, may be enforced as provided for in this section. Each separate date, or portion thereof, during which any violation occurs shall constitute a separate violationshall be subject to enforcement and penalties as prescribed in TMC Chapter 8.45 and the issuance of a Notice of Violation in accordance with TMC Section 8.45.070. A. Civil infraction. A business, licensee, or person who violates any provision of this chapter commits a Class 1 civil infraction as set forth in RCW 7.80.120(1)(a), as currently enacted or hereafter amended. An infraction issued pursuant to this section shall be issued by code enforcement officers, filed in the Tukwila Municipal Court and processed in the same manner as other infractions filed in the Tukwila Municipal Court. If a business, licensee, or person cited for failure to obtain a business license appears before the Tukwila Municipal Court and provides written evidence that he or she obtained 16 2025 Legislation: Business Licensing Fees Page 15 of 16 Version: 7/22/25 Staff: A. Schierenbeck a business license prior to adjudication of the infraction, the monetary penalty shall be reduced to $150. B. Civil code enforcement. A civil code enforcement action may be instituted pursuant to Chapter 8.45 TMC to effectuate the abatement or corrective action required as a result of a violation of this chapter. Failure to timely abate the violation or take corrective action, as required by an issued Notice of Violation, may result in the imposition of a fine in accordance with TMC 8.45.120(A)(2) and 8.45.080(C). C. Criminal violation. A person who knowingly violates a provision of this chapter, or commits a repeat violation of this chapter, is guilty of a misdemeanor, punishable by up to the maximum penalty established in RCW 9A.20.021(3), as now enacted or hereafter amended. For purposes of this section, repeat violation means either a prior committed finding by the Tukwila municipal court of an infraction issued under this chapter, or a committed finding by the hearing examiner of a notice of violation issued under Chapter 8.45 TMC, has occurred or has been committed by the same business, licensee, or person within a five-year period. To constitute a repeat violation, the violation need not be the same violation as the prior violation. D. Injunction. In addition to or as an alternative to any other enforcement or penalty provided for in this chapter, and because a violation constitutes an actual injury to the community, the City may seek injunctive or other equitable relief to prevent any activity in violation of this chapter. E. Any license fee or penalty due, unpaid, and delinquent under this chapter shall constitute a debt to the City. The City may, pursuant to Chapter 19.16 RCW, use a collection agency to collect unpaid license fees or penalties, or it may seek collection by court proceedings, which remedies shall be in addition to all other remedies. Section 15. Regulations Established. A new TMC section 5.04.140 is hereby established to read as follows: 5.04.140 License Does Not Indicate Legality of Business The issuance of a license pursuant to this chapter shall not be evidence of the legality of a business or that such business is conducted in conformity with any laws or regulations of the City of Tukwila, the State of Washington, or the United States. The issuance of a business license shall not prevent the City, the State of Washington, or the United States from taking any action relating to the conduct of the business or the licensee, including but not limited to an action to revoke the license or deny an application for a future license, an action to cause the cessation of the business, or any action set forth in this chapter. Section 16. Regulations Established. A new TMC section 5.04.150 is hereby established to read as follows: 5.04.150 Administration A. The Director shall have general charge of, and supervision over, the administration and enforcement of this chapter. 17 2025 Legislation: Business Licensing Fees Page 16 of 16 Version: 7/22/25 Staff: A. Schierenbeck B. The Director may call upon other City departments to aid in the enforcement of this chapter. C. The licensee shall, upon reasonable request, provide or allow the Director to inspect relevant documentation and/or to inspect places of business for verification of the requirements of this chapter. Section 17. Corrections by City Clerk or Code Reviser Authorized. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/ subsection numbering. Section 18. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 19. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City and shall take effect and be in full force within five days after passage and publication as provided by law. 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 Thomas McLeod, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Office of the City Attorney 18 2026 City Business License Model Threshold update Effective January 1, 2026 What are the main changes to the model threshold? The main change in the update would make a one- time increase to a higher threshold to $4000 for out- of-city businesses from the current $2,000 threshold, effective January 1, 2026. Other changes include: • Every four years thereafter, the threshold would have an automatic periodic increase based on cumulative inflation. • The rates of inflation would be calculated using the Consumer Price Index-U (CPI-U) Western for June of each year compared to the previous year for the previous four years. • The rate of inflation would be calculated as zero in any year in which inflation was negative and capped at 5% per year or 20% over four years if inflation exceeded those amounts. • To make the threshold easier to administer, the cumulative inflation amount would be rounded to the nearest $100. Could my city still require a no fee registration for out-of-city businesses below the threshold? Cities retain the local option of requiring a no-fee registration for out-of-city businesses below the threshold. Was the definition of “engaging in business” changed? No, the definition of engaging in business has not changed since the 2018 model was adopted. What are the deadlines for all cities with business licenses to adopt the 2026 model threshold? Cities with a business license must adopt the model by January 1, 2026. However, cities that currently partner with the state’s Business Licensing Service (BLS) for business licensing administration must adopt it by mid-October 2025, because they must provide BLS 75-day notice of any changes to their business licenses, including this mandatory change. What if my city has a higher threshold? Cities can choose to enact a higher threshold. The $4,000 city threshold for out-of-city businesses is the minimum level that every city must enact. What if my city wants to have a threshold that applies to in-city businesses in addition to the out-of-city business threshold? The $4,000 threshold level for out-of-city businesses is a mandatory minimum threshold that every city business license city must adopt, but the law does not impact the city’s authority to have exemptions or other thresholds. Cities can continue to require a license for businesses located in the city without regard to the threshold (unless the city chose to exempt these businesses). Cities can also choose to enact a separate threshold exemption that applies to in-city businesses. Who should my city notify when the model is adopted? BLS partner cities: Send a completed Change Request Form to BLS notifying them of the update All other cities: Email Sheila Gall, AWC (sheilag@awcnet.org) so we can track updates. How will businesses find out about the changes? Consider providing information on changes to your business license by adding information to your license renewal letter, sending a letter to your potentially impacted businesses, updating information on your city’s website or presenting to your local chamber. Background on the 2018 model threshold In the 2017 session, EHB 2005 (RCW 35.90) passed requiring three actions by cities with business licenses and local B&O taxes. The law required cities to make changes to business licensing, including requiring cities with business licenses to establish a workgroup to create a model business license threshold by July 2018 for adoption by all business license cities by January 1, 2019. 19 2018 model ordinance for local business licenses – minimum threshold The 2018 model included a mandatory definition of “engaging in business” and a $2000 minimum threshold (or occasional sale) exemption to establish when out-of-town or transient businesses are required to be licensed. All business license cities adopted the model by January 1, 2019 (RCW 35.90.080). Contact Sheila Gall General Counsel sheilag@awcnet.org wacities.org 20 City Business License Model Ordinance 1. Outline of Changes to Business License Model Ordinance • Effective date to January 1, 2026. • One-time increase to a higher threshold to $4,000 for out-of-city businesses. • Combined with an automatic periodic increase four years later based on cumulative inflation. The rate of inflation would be calculated as zero in any year in which inflation was negative and capped at 5% per year or 20% over four years if inflation exceeded those amounts. • The rates of inflation would be calculated using the Consumer Price Index-U (CPI-U) Western for June of each year compared to the previous year for the previous four years. • To make the threshold easier to administer, the cumulative inflation amount would be rounded to the nearest $100. • Cities that partner with the state’s Business License Service would need to update their ordinance in time to provide 75-days' notice to the Department of Revenue of the change. Cities that partner with File local would need to notify them of an expected system change by August. • Cities would retain the local option of requiring a no-fee registration for out-of-city businesses below the threshold and the local option of imposing a higher threshold than the model minimum threshold. 2. Changes to Model Threshold The 2018 model is amended to include the threshold change effective January 1, 2026. Model business license threshold options: (cities would adopt one of the options effective January 1, 2026) 1. Threshold Exemption Option: To the extent set forth in this section, the following persons and businesses shall be exempt from the registration, license and/or license fee requirements as outlined in this chapter: (1) Any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the city is equal to or less than $2,000 [or higher threshold as determined by city] and who does not maintain a place of business within the city shall be exempt from the general business license requirements in this chapter. The exemption does not apply to regulatory license requirements or activities that require a specialized permit. Beginning January 1, 2026, the threshold amount is $4000 [or higher threshold as determined by city]. The threshold amount will be adjusted every forty-eight months on January 1, by an amount equal to the increase in the Consumer Price Index (“CPI”) for “West Urban, All Urban Consumers” (CPI-U) for each 12-month period ending on June 30 as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate this adjustment, the current rate will be multiplied by one plus the cumulative four-year (forty-eight month) CPI increase using each 12-month period ending on June 30 of each prior year, and rounded to the nearest $100. However, if any of the annual CPI increases are more than five (5) percent, a five (5) percent increase will be used in computing the annual basis and if any of the annual CPI decreased during the forty-eight-month period, a zero (0) percent increase will be used in computing the annual basis. 2. Threshold with Fee-free License/Registration-only Option: For purposes of the license by this chapter, any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the city is equal to or less than $2,000 [or higher threshold as determined by city] and who does not maintain a place of business within the city, shall submit a business license registration to the Director or designee. The threshold does not apply to regulatory license requirements or activities that require a specialized permit. 21 Beginning January 1, 2026, the threshold amount is $4000 [or higher threshold as determined by city]. The threshold amount will be adjusted every forty-eight months on January 1, by an amount equal to the increase in the Consumer Price Index (“CPI”) for “West Urban, All Urban Consumers” (CPI-U) for each 12-month period ending on June 30 as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate this adjustment, the current rate will be multiplied by one plus the cumulative four-year (forty-eight month) CPI increase using each 12-month period ending on June 30 of each prior year, and rounded to the nearest $100. However, if any of the annual CPI increases are more than five (5) percent, a five (5) percent increase will be used in computing the annual basis and if any of the annual CPI decreased during the forty-eight-month period, a zero (0) percent increase will be used in computing the annual basis. [Note: City would list this fee-free license in its business license rates section as $0 or no fee.] 3. Background Information • Model threshold was required by 2017 legislation (RCW 35.90.080: Adoption of model ordinance) to address out-of-city licensing/delivery concerns. • 2018 final recommendation was $2000 for out-of-city businesses, with option to require no-fee registration only requirement below threshold. • Changes must be adopted by cities with same effective date (RCW 35.90.080(1)(c)). • Model cannot be updated more frequently than every 4 years. 22 INFORMATIONAL MEMORANDUM To: Finance and Governance Committee From: TC Croone, Chief People Officer CC: Mayor Thomas McLeod Date: July 28, 2025 Subject: Compensation Policy presentation follow-up Purpose As a follow-up to the presentation provided to the full City Council on July 14, 2025, I will be presenting additional information and responding to Councilmember questions regarding Resolution 1951 at the upcoming Finance and Governance Committee meeting on July 28. Background During the July 14 Council meeting, I provided an overview of the City's current Compensation Policy under Resolution 1951. The presentation highlighted challenges with the assessed value (AV) benchmark, internal equity concerns, and insights gained through recent labor negotiations and the 2023 compensation study. Council requested further discussion on potential revisions to the resolution to ensure it remains a useful and practical tool for guiding compensation policy. This follow-up presentation will build on the feedback received and offer options for modernizing the resolution to better reflect the City’s goals and labor market realities. Next Steps During the July 28 Finance and Governance Committee meeting, I will: •Recap key points from the July 14 Council presentation •Address follow-up questions •Request guidance on next steps for potential policy updates Attachments A. Resolution 1951 - Compensation Policy B. PowerPoint Presentation 23 24 25 26 JULY 14, 2025 Tukwila’s Compensation Policy Resolution 1951 27 Tonight’s Presentation: Introduction Overview: Resolution 1951 and its intent Policy & Practice Our Experience: 2023 Class & Comp study, Application of Res. 1951 Managing Salary Compression and Internal Salary Equity Future: Consider Policy Changes Council Review & Discussion28 Tukwila’s Employees & Classifications: 243 Represented, 37 Non-Represented3 Unions, 8 Bargaining Units Police Non-commissioned •Police Records staff •Represented by USW Commissioned •Officers, Sergeants, Commanders •Represented by Teamsters 117 Program Managers •Courts •Public Works •Emergency Management Represented by Teamsters 763 Administrative/Technical •Court operations and support staff •DCD inspections & permits •Finance support •Parks & Recreation staff •Administrative support staff •Represented by Teamsters 763 Maintenance/Trades •Facilities Custodians & Techs •Maintenance & Operations staff (Utilities) •Fleet & Facilities staff •Represented by Teamsters 763 Professional/Supervisory •TIS, DCD professional staff •Courts, Emergency Management •Public Works Project & Program management •Parks & Rec, Finance/Payroll Project & Program management •Represented by Teamsters 763 Non-Represented •Confidential administrative support •Analysts •Managers •Directors & Deputy Directors •Deputy City Administrator •Police Chief and Deputy Police Chief 29 Res 1951: What’s in the Policy •Comparable jurisdictions to evaluate pay: Puget Sound, +75/-50% of Tukwila’s assessed valuation (AV), cities with police department •Compensation Goals: Non-represented -average of comparable jurisdictions or justify to Council; Represented -competitive to comparable jurisdictions. Avoid compression. •Competitive: market adjustment for -5% market and up to 10% above market •COLA: odd years (non-rep), 90% of CPI-W Average. Parity between represented and non- rep, consider internal equity; justify to Council. •Benefits: goal is parity between represented and non-rep employees, competitive with comparables, keep increases below market average. •Information for Council: benefit trends, market survey of comparables, negotiation expectations, updates (for Represented Employees, before negotiations; Non-Rep Employees, each year 3rd quarter) •Annual City Council policy review30 Res. 1951: Intent of Comp Policy Help recruit, retain, and develop productive employees Use standard approaches to compensate all employees (parity) Informed by economics; budget forecast; comparables; internal equity Adjust non-rep pay with market analysis (even years), COLA (odd years) Provide represented employees with pay at average of comparables as economic conditions and negotiations allow Provide non-rep employees with benefits above average of comparables Council participation: set negotiation expectations, review CBAs 31 Policy and Practice Last Class & Comp Study (Non-Rep) •Planned for 2020 •Postponed due to COVID and HR turnover •Completed & Implemented in 2023 Interest Arbitration (Police) •Why Assessed Value is important •Objective benchmarks •Indicator of what a city can afford •Signals stability Administration Policy 02.05.21 •Defines Administration and Council responsibility •Procedure for new hires, transfers, promotions, reclassifications32 Our Experience 2023 •Completed & Implemented Class and Comp Study for non-reps only 2024 •Negotiated 7 of 8 contracts •Used AWC data for market compensation benchmarks •Presented to council via Closed Sessions to get authority 2025 •Negotiation for 1 contract pending •Potential rollover to 2026 of 4 contracts –Teamsters 763 •Class & Comp studies for Non-Rep and Teamsters 763 will begin, per Res. 1951 33 Our Experience –2023 Class & Comp Study Study was for non-represented employees Delayed from 2020 due to COVID and HR turnover Goals: Ensure that salaries aligned with market competitors; eliminate the Decision Band Method (DBM) of determining salaries and pay grades Implemented salary changes in Dec. 2023, funded with mid-biennium budget adjustment Study recommendations: 7-step compensation schedule, point factor system, built from average of market, don’t use AV, designed to minimize compression, separate schedule for Deputy Chief, Chief, City Administrator34 Our Experience –Pros & Cons of Res. 1951 What has worked well -Authorization from council prior to negotiations gives clarity and guidance -Benchmarking both AV cities based upon Res. 1951 and Valley cities Challenges -Using only AV cities based upon Res. 1951 -Required frequency of comp studies -Updating outdated job classifications, descriptions, together with conducting compensation studies -Adhering to Policy 02.05.21 for new hires -Salary compression, internal equity is still unbalanced -Calculating comps manually -Transparency to Council 35 Salary Compression Salary Compression – Employees at pay rates close to, or sometimes higher than, what long- term employees or supervisors earn. How do we manage it? Regularly review and adjust compensation structure to keep pay equitable across roles and experience levels. 36 Internal Salary Equity What is it? •Employees are paid fairly compared to others based on job responsibilities, experience, and performance. •Similar pay for similar work How do we manage it? Regularly review pay across roles to ensure employees in similar positions with comparable experience and performance are compensated fairly. Needs clear job descriptions, consistent evaluation, structured pay ranges, management accountability. 37 Comparable Jurisdictions Edmonds Lakewood Lynnwood Marysville Mukilteo Mill Creek Lake Stevens Issaquah Bothell Puyallup Comparable jurisdictions based upon Assessed Value (AV) Valley Cities that are geographically near Tukwila Auburn Des Moines Federal Way Kent Renton38 Potential Policy Changes •Remove Council reclassification approval - align with City policy •Challenges meeting current policy: frequency of/time needed for market studies, timing for council reports and COLA •Compensation data always a year behind •Total cost of compensation vs. pay •Update comparable cities: expand criteria beyond AV, include geography of neighbors (surrounding/Valley Cities) •Better job classifications for comparison and job matching •What would be part of an ideal policy? •Council Discussion & Questions 39 40 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: City Council FROM: Aaron BeMiller, Finance Director CC: Thomas McLeod, Mayor & Marty Wine, City Administrator DATE: July 28, 2025 SUBJECT: Mid-Biennium Adjustment ISSUE The kickoff for the 2026 mid-biennium adjustment took place on July 15. Finance team staff provided an update on the process and timing for adjustments to the 2026 budget. BACKGROUND The City is legally required to adopt a balanced budget where resources are at least equal to budgeted expenses. The mid-biennium adjustment provides an opportunity for the City to update our assumptions made in the summer of 2024. Generally, the mid-biennium adjustment provides an opportunity to better refine revenue and expenditure estimates which were generated in the summer of 2024 for the 2026 fiscal year. We now have data available for 2026 which wasn’t available in August/September 2024. Typical adjustments include updating the assumptions for COLA, healthcare benefits, and retirement rates, budgeting for any approved initiatives in 2025 that continue into 2026, and other items. The Council’s role in the mid-biennium adjustment is the same as during a regular biennial budget process. The Mayor will provide his recommendations for changes to the adopted 2026 budget and Council will hold deliberations on the Mayor’s budget and ultimately vote on a) the updated 2026 budget and, b) the 2026 property tax levy. DISCUSSION This is a discussion item only, no Committee action is required. Staff will be available to answer any questions/clarifications from Committee members. FINANCIAL IMPACT Discussion item only. There is no financial impact associated with this agenda item. RECOMMENDATION Discussion item only. There is no recommendation currently for future action. ATTACHMENTS None. 41 42 1 City of Tukwila Tom McLeod, Mayor Finance Department INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee CC: Mayor McLeod FROM: Tony Cullerton, Deputy Finance Director DATE: July 28, 2025 SUBJECT: June 2025 Financial Report Financial Overview Through June 2025 As of the end of June 2025, the City has completed 50% of the fiscal year. Overall, the City's financial condition remains strong, with General Fund revenues and expenditures tracking close to expectations. General Fund revenues are at 58.8% of the annual budget, while expenditures are at 50.7%. Notable year-over-year variances exceed 5% and $50,000 and are described below. General Fund Revenues General Fund revenues and transfers-in through June total $44.96 million, which is 12.2% higher than the same period in 2024 (an increase of $4.87 million). Business & Occupation Taxes increased 316.7% (+$1.11 million) due to full-year implementation and updated filings. Intergovernmental Payments rose 24.0% (+$1.13 million), reflecting an increase is state grants. Charges for Services increased 44.9% (+$457K), due to increases in Public Safety (Mall security) and fire Admin/Protective Inspections. Admission Taxes rose 42.9% (+$163.6K), indicating strong performance in entertainment and venue-related activity (K1 Speed inc, Fandango Skygroup, Seattle Rugby). Building Permits & Rental Housing Permits rose 18.8% (+$183K), signaling continued development activity. Gambling Taxes declined 17.6% (-$381K), due to extended facility closures and reduced activity. Business Licenses also decreased 7.5% (-$97.5K), potentially reflecting timing or economic shifts. 43 2 Fund Expenditures Through June, General Fund expenditures and transfers-out total $38.0 million, which is 5.0% lower than the same period in 2024. Non-Departmental Expenses increased 625.1% (+$1.76 million), related to the shift of vehicle lease costs into this category. Police Department expenditures increased 16.3% (+$1.94 million), due to fleet and dispatch service costs. Finance Department increased 20.1% (+$480K), related to insurance and software expenses. Street Maintenance Department increased 19.8% (+$457K), and Park Maintenance increased 32.7% (+$373K), primarily due to a Tree/Landscaping Maintenance and Contracted Services (lighting project at Crystal Springs). Public Works and Community Development also showed increases of 11.6% and 9.3%, respectively. Overall General Fund Expenditure decreases are mainly due to the Fire Department, which dropped 93.7% (-$7.77 million), related to the full transition to PSRFA . OTHER FUNDS Special Revenue and Capital Funds The Hotel/Motel Fund saw revenues decrease 15.6% (-$71K), primarily due to a 55.9% decline in investment earnings. Expenditures in the fund decreased 22.1% (-$61K), driven by reduced labor costs and service costs. The Residential Street Fund reported a 44.4% decrease in revenues (-$126K), largely due to the reduction in grants. and state entitlements. Expenditures were also down 47.9% (-$47K) due to reduced capital outlay. The Arterial Street Fund experienced a 6.8% decrease in revenues (-$198K), with reductions in grant revenue (-60.6%) and REET (-20.5%). Expenditures declined 11.5% (-$203K), as a result of reduced capital outlays. Enterprise Funds and Other Operations The Water Utility Fund reported revenue increases of 9.9% (+$365K), driven by a 9% rate increase that was supported by the city’s utility rate study. Expenditures rose 12.6% (+$517K), resulting from capital costs and wage growth. The Sewer Utility Fund’s revenues increased 9.6% (+$540K), while expenditures rose 26.3% (+1.44 million), primarily due to capital investments. The Foster Golf Course Fund reported a strong quarter, with revenues up 31.4% (+$209K), due to higher greens fees and other income (Pro Shop sales), while expenditures decreased 2.5% (- $29K), indicating efficient operations. 44 3 Summary at a Glance General Fund revenues totaled $44.96 million or 58.8% of the annual budget, up 12.2% from 2024. Business & Occupation Taxes, Charges for Services, and Admission Taxes showed strong growth. General Fund expenditures totaled $38.0 million or 50.7% of the annual budget, down 5.0% from the prior year. Key increases were seen in Police, Finance, and Non -Departmental costs, while the Fire Department saw a substantial decrease. Special Revenue Funds experienced timing-related revenue shortfalls and expenditure reductions. Utility funds continue to have a stable performance, and Foster Golf Course reported notable gains. Summary at a Glance General Fund Performance Summary: Revenues: • Total: $44.96 million (58.8% of budget), up 12.2% (+$4.87 million) from 2024. • Business & Occupation Taxes up 316.7% (+$1.11 million) • Intergovernmental Payments up 24.0% (+$1.13 million) • Charges for Services up 44.9% (+$457K) • Admission Taxes up 42.9% (+$163.6K) • Building Permits & Rental Housing Permits up 18.8% (+$183K) • Sale of Capital Assets: $4.51 million (new in 2025) • Gambling Taxes down 17.6% (-$381K) • Business Licenses down 7.5% (-$97.5K) Expenditures: • Total: $38.0 million (50.7% of budget), down 5.0% (-$1.99 million) from 2024. • Non-Departmental Expenses up 625.1% (+$1.76 million) • Police Department up 16.3% (+$1.94 million) • Finance Department up 20.1% (+$480K) • Street Maintenance up 19.8% (+$457K) • Park Maintenance up 32.7% (+$373K) • Fire Department down 93.7% (-$7.77 million) Other Key Funds of Interest – Notable Variances >5% and $50,000: Hotel/Motel Fund (101): • Revenues down 15.6% (-$71K) • Expenditures down 22.1% (-$61K) Residential Street Fund (103): • Revenues down 44.4% (-$126K) • Expenditures down 47.9% (-$47K) 45 4 Arterial Street Fund (104): • Revenues down 6.8% (-$198K) • Expenditures down 11.5% (-$203K) Water Utility Fund (401): • Revenues up 9.9% (+$365K) • Expenditures up 12.6% (+$517K) Sewer Utility Fund (402): • Revenues up 9.6% (+$540K) • Expenditures up 26.3% (+$1.44 million) Foster Golf Course (411): • Revenues up 31.4% (+$209K) • Expenditures down 2.5% (-$29K) Attachments: • 2nd Quarter Report • June Cash & Investment Data 46 Revenues 42,748,682$ 71,601,037$ 59.7% Transfers In 2,215,258 4,836,952 45.8% Expenditures 35,799,106 70,298,671 50.9% Transfers Out 2,215,196 4,663,479 47.5% Net Revenues Less Expenditures 6,949,638$ 1,475,839$ % of Year Complete 50.0% General Fund figures include General Fund and Contingency Fund, a Sub-Fund of the General Fund Budget Variance % of Annual Budget General Fund Overview 2025 Actuals through June 2025 Total Budget $- $10 $20 $30 $40 $50 $60 $70 $80 Revenues Transfers In Expenditures Transfers OutMillionsGeneral Fund Overview Year to Date Budget City of Tukwila Monthly Finance Report 1 47 Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Taxes: Property Tax 11,999,227$ 6,749,595$ (5,249,632)$ 56.3% Sales & Use Tax 23,283,886 11,564,090 (11,719,796) 49.7% Other Sales Taxes 1,163,100 532,795 (630,305) 45.8% Gambling Taxes 4,349,500 1,781,450 (2,568,050) 41.0% Business & Occupation Taxes 2,400,000 1,455,555 (944,445) 60.6% Utility Taxes 4,493,702 2,475,342 (2,018,360) 55.1% Interfund Utility Taxes 3,167,729 1,805,010 (1,362,719) 57.0% Admission Taxes 859,235 545,274 (313,961) 63.5% Leasehold Excise Tax 260,000 136,726 (123,274) 52.6% Business Licenses 3,445,500 1,204,450 (2,241,050) 35.0% Building Permits & Rental Housing Permits 1,985,200 1,160,829 (824,371) 58.5% Intergovernmental Payments 5,313,474 5,846,663 533,189 110.0% Charges for Services 2,612,121 1,474,373 (1,137,748) 56.4% Miscellaneous Revenue 1,568,363 1,505,094 (63,269) 96.0% Transfers In - Indirect Cost Allocation 3,111,694 1,555,846 (1,555,848) 50.0% Transfers In From Other Funds 1,725,258 659,412 (1,065,846) 38.2% Sale of Capital Assets 4,700,000 4,511,436 (188,564) 96.0% Total 76,437,989$ 44,963,940$ (32,141,877)$ 58.8% Percent of Year Complete:50.0% General Fund Overview - Revenues and Transfers In by Category City of Tukwila Monthly Finance Report 248 $- $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 Sale of Capital Assets Transfers In From Other Funds Transfers In - Indirect Cost Allocation Miscellaneous Revenue Charges for Services Intergovernmental Payments Building Permits & Rental Housing Permits Business Licenses Interfund Utility Taxes Utility Taxes Business & Occupation Taxes Gambling Taxes Sales & Use Tax Property Tax Millions General Fund Major Revenues Revenues and Transfers In YTD Total Budget City of Tukwila Monthly Finance Report 349 $% Taxes: Property Tax 9,376,326$ 9,683,846$ 6,749,595$ (2,934,251)$ -30.3% Sales & Use Tax 10,620,212 11,598,122 11,564,090 (34,032) -0.3% Other Sales Taxes 585,459 535,463 532,795 (2,668) -0.5% Gambling Taxes 2,334,179 2,162,616 1,781,450 (381,166) -17.6% Business & Occupation Taxes - 349,284 1,455,555 1,106,271 +316.7% Utility Taxes 2,288,456 2,360,365 2,475,342 114,977 +4.9% Interfund Utility Taxes 1,608,724 1,672,580 1,805,010 132,430 +7.9% Admission Taxes 444,385 381,681 545,274 163,593 +42.9% Leasehold Excise Tax 121,273 128,894 136,726 7,832 +6.1% Business Licenses 1,339,496 1,301,930 1,204,450 (97,480) -7.5% Building Permits & Rental Housing Permits 1,130,249 977,405 1,160,829 183,424 +18.8% Intergovernmental Payments 2,858,673 4,716,396 5,846,663 1,130,267 +24.0% Charges for Services 1,295,313 1,017,801 1,474,373 456,572 +44.9% Miscellaneous Revenue 800,202 1,497,507 1,505,094 7,587 +0.5% Transfers In - Indirect Cost Allocation 1,411,206 1,481,763 1,555,846 74,083 +5.0% Transfers In From Other Funds - 225,891 659,412 433,521 +191.9% Sale of Capital Assets - - 4,511,436 4,511,436 - Total 36,214,153$ 40,091,544$ 44,963,940$ 4,872,396$ +12.2% General Fund: Year-to-Year Revenues and Transfers In 2025 vs 20242024 Revenues Through June 2025 Revenues through JuneCategory2023 Revenues Through June City of Tukwila Monthly Finance Report 450 $- $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 Sale of Capital Assets Transfers In From Other Funds Transfers In - Indirect Cost Allocation Miscellaneous Revenue Charges for Services Intergovernmental Payments Building Permits & Rental Housing Permits Business Licenses Interfund Utility Taxes Utility Taxes Business & Occupation Taxes Gambling Taxes Sales & Use Tax Property Tax Millions General Fund Major Revenues Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 551 Department 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget City Council 400,093$ 185,339$ 214,754$ 46.3% Mayor's Office 9,748,218 4,356,475 5,391,743 44.7% Finance Department 4,343,230 2,864,900 1,478,330 66.0% Community Development (DCD)5,732,921 2,559,532 3,173,389 44.6% Municipal Court 2,329,525 1,084,097 1,245,428 46.5% Police Department 28,411,330 13,902,343 14,508,987 48.9% Fire Department 1,398,192 523,740 874,452 37.5% Recreation Department 4,110,113 1,613,058 2,497,055 39.2% Park Maintenance Dept 2,659,037 1,512,459 1,146,578 56.9% Public Works Dept 4,977,693 2,386,638 2,591,055 47.9% Street Maintenance Dept 4,761,271 2,763,290 1,997,981 58.0% Non-Departmental Expenses 1,427,046 2,047,235 (620,189) 143.5% Transfers Out - Debt Service 3,692,390 1,846,196 1,846,194 50.0% Transfers Out to Other Funds 971,089 369,000 602,089 38.0% Total 74,962,148$ 38,014,302$ 36,947,846$ 50.7% Percent of Year Complete:50.0% General Fund Overview - Expenditures & Transfers Out by Department City of Tukwila Monthly Finance Report 652 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 ThousandsGeneral Fund Expenditures and Transfers Out by Department Expenditures and Transfers Out YTD Total Budget City of Tukwila Monthly Finance Report 753 $% City Council 187,650$ 198,798$ 185,339$ (13,459)$ -6.8% Mayor's Office 3,772,250 4,143,728 4,356,475 212,747 +5.1% Finance Department 1,694,394 2,384,934 2,864,900 479,966 +20.1% Community Development (DCD)2,174,326 2,341,460 2,559,532 218,072 +9.3% Municipal Court 821,248 1,006,528 1,084,097 77,569 +7.7% Police Department 10,260,103 11,958,169 13,902,343 1,944,174 +16.3% Fire Department 7,518,435 8,291,980 523,740 (7,768,240) -93.7% Recreation Department 1,388,171 1,511,118 1,613,058 101,940 +6.7% Park Maintenance Dept 999,112 1,139,733 1,512,459 372,726 +32.7% Public Works Dept 2,086,555 2,137,880 2,386,638 248,758 +11.6% Street Maintenance Dept 2,063,666 2,305,904 2,763,290 457,386 +19.8% Non-Departmental Expenses1 491,402 282,321 2,047,235 1,764,914 +625.1% Transfers Out - Debt Service 2,374,914 2,103,172 1,846,196 (256,976) -12.2% Transfers Out to Other Funds 150,000 194,660 369,000 174,340 +89.6% Total 35,982,226$ 40,000,385$ 38,014,302$ (1,986,083)$ -5% Notes: 1In 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 General Fund Overview - Year-to-Year Expenditures & Transfers Out by Department 2024 Expenses through June 2025 Expenses through JuneCategory 2025 vs 20242023 Expenses through June City of Tukwila Monthly Finance Report 854 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 ThousandsGeneral Fund Expenditures by Department Prior Year Comparions YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 955 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Salaries, Wages, & Overtime 33,466,376$ 15,900,942$ 17,565,434$ 47.5% Benefits 12,851,718 5,879,419 6,972,299 45.7% Supplies 1,640,914 670,031 970,883 40.8% Services 22,109,457 12,629,199 9,480,258 57.1% Land, Structures, Machinery, Equipment 200,000 719,514 (519,514) 359.8% Other Expenditures 30,205 - 30,205 0.0% Transfers Out - Debt Service 3,692,390 1,846,196 1,846,194 50.0% Transfers Out to Other Funds 971,089 369,000 602,089 38.0% Total 74,962,149$ 38,014,301$ $36,947,848 50.7% Percent of Year Complete:50.0% General Fund Overview - Expenditures by Category $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Other Expenditures Transfers Out - Debt Service Transfers Out to Other FundsThousandsGeneral Fund Expenditures and Transfers Out by Category Expenditures and Transfers Out YTD 2025 Total Budget City of Tukwila Monthly Finance Report 1056 $% Salaries, Wages, & Overtime 12,552,264$ 14,419,283$ 15,900,942$ 1,481,659$ +10.3% Benefits 4,936,374 5,335,668 5,879,419 543,751 +10.2% Supplies 686,663 615,379 670,031 54,652 +8.9% Services 15,277,782 17,106,330 12,629,199 (4,477,131) -26.2% Services excluding PSRFA Fire Contract 8,715,483 9,873,696 12,629,199 2,755,503 +27.9% Land, Structures, Machinery, Equipment 4,230 225,891 719,514 493,623 +218.5% Other Expenditures - - - - - Transfers Out - Debt Service 2,374,914 2,103,172 1,846,196 (256,976) -12.2% Transfers Out to Other Funds 150,000 194,660 369,000 174,340 +89.6% Total 35,982,227$ 40,000,383$ 38,014,301$ (1,986,082)$ -5.0% General Fund: Year-to-Year Expenditures & Transfers Out by Category Category 2024 Expenses through June 2025 Expenses through June 2025 vs 20242023 Expenses through June $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 Salaries, Wages, & Overtime Benefits Supplies Services Services excluding PSRFA Fire Contract Land, Structures, Machinery, Equipment Other Expenditures Transfers Out - Debt Service Transfers Out to Other FundsThousandsGeneral Fund Expenditures by Category Prior Year Comparions YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 1157 Revenues 384,330$ 897,750$ 42.8% Expenditures 200,374 992,204 20.2% Transfers Out 14,605 29,209 50.0% Net Revenues Less Expenditures 169,351$ (123,663)$ % of Year Complete 50.0% Fund 101 Hotel/Motel Special Revenue Fund Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 1258 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Salaries, Wages, & Overtime 51,393$ 25,957$ 25,436$ 50.5% Benefits 20,561 5,775 14,786 28.1% Supplies 3,000 - 3,000 0.0% Services 917,250 168,642 748,608 18.4% Transfers Out - Internal Cost Allocation 29,209 14,605 14,604 50.0% Total 1,021,413$ 214,979$ $806,434 21.0% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Hotel/Motel Tax 850,000$ 349,786$ (500,214)$ 41.2% Investment Earnings 47,750 34,544 (13,206) 72.3% Total 897,750$ 384,330$ (513,420)$ 42.8% % of Year Complete 50.0% Fund 101 Hotel/Motel Special Revenue Fund Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $200 $400 $600 $800 $1,000 $1,200 2025 Expenditures YTD 2025 Total BudgetThousandsFund 101 Expenditures $- $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2025 Revenues YTD 2025 Total BudgetThousandsFund 101 Revenues City of Tukwila Monthly Finance Report 13 59 $% Salaries, Wages, & Overtime 35,129$ 45,962$ 25,957$ (20,005)$ -43.5% Benefits 8,863 10,715 5,775 (4,940) -46.1% Services 130,497 205,262 168,642 (36,620) -17.8% Transfers Out - Internal Cost Allocation 13,248 13,910 14,605 695 +5.0% Total 187,891$ 275,849$ 214,979$ (60,870)$ -22.1% $% Hotel/Motel Tax 384,699$ 377,063$ 349,786$ (27,277)$ -7.2% Investment Earnings 54,688 78,348 34,544 (43,804) -55.9% Total 439,387$ 455,411$ 384,330$ (71,081)$ -15.6% Fund 101 Hotel/Motel Special Revenue Fund Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 Fund 101 Hotel/Motel Special Revenue Fund Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 101 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 1460 Revenues 158,403$ 1,130,000$ 14.0% Expenditures 51,098 850,000 6.0% Net Revenues Less Expenditures 107,305$ 280,000$ % of Year Complete 50.0% Budget Variance % of Annual Budget Fund 103 Residential Street Fund Overview 2025 through June 2025 Total Budget City of Tukwila Monthly Finance Report 15 61 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Supplies -$ 5,266$ (5,266)$ - Services 850,000 45,832 804,168 5.4% Total 850,000$ 51,098$ 798,902$ 6.0% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Utility Taxes 100,000$ -$ (100,000)$ 0.0% Grant Revenues 724,000 - (724,000) 0.0% State Entitlements 280,000 128,302 (151,698) 45.8% Investment Earnings 26,000 30,101 4,101 115.8% Total 1,130,000$ 158,403$ (971,597)$ 14.0% % of Year Complete 50.0% Fund 103 Residential Street Fund Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $100 $200 $300 $400 $500 $600 $700 $800 $900 2025 Expenditures YTD 2025 Total BudgetThousandsFund 103 Expenditures $- $200 $400 $600 $800 $1,000 $1,200 2025 Revenues YTD 2025 Total BudgetThousandsFund 103 Revenues City of Tukwila Monthly Finance Report 1662 $% Salaries, Wages, & Overtime 7,715$ 1,935$ -$ (1,935)$ -100.0% Benefits 4,892 868 - (868) -100.0% Supplies - 14,528 5,266 (9,262) -63.8% Services 267,501 52,939 45,832 (7,107) -13.4% Land, Structures, Machinery, Equipment - 27,762 - (27,762) -100.0% Total 280,108$ 98,032$ 51,098$ (46,934)$ -47.9% $% Grant Revenues -$ 70,797$ -$ (70,797)$ -100.0% State Entitlements 139,661 136,516 128,302 (8,214) -6.0% Investment Earnings 13,828 32,843 30,101 (2,742) -8.3% Transfers In - 44,660 - (44,660) -100.0% Total 153,489$ 284,816$ 158,403$ (126,413)$ -44.4% Fund 103 Residential Street Fund Year-to-Year Revenues and Transfers In by Category Category 2024 Revenues through June 2025 Revenues through June 2025 vs 20242023 Revenues through June Fund 103 Residential Street Fund Year-to-Year Expenditures & Transfers Out by Category Category 2024 Expenses through June 2025 Expenses through June 2025 vs 20242023 Expenses through June $- $50 $100 $150 $200 $250 $300 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 103 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 17 63 Revenues 2,729,087$ 5,586,001$ 48.9% Expenditures 1,563,642 7,636,726 20.5% Net Revenues Less Expenditures 1,165,445$ (2,050,725)$ % of Year Complete 50.0% Fund 104 Arterial Street Fund Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 1864 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Salaries, Wages, & Overtime 793,142$ 320,458$ 472,684$ 40% Benefits 312,185 111,656 200,529 36% Supplies 23,200 63,558 (40,358) 274.0% Services 6,508,200 630,244 5,877,956 9.7% Land, Structures, Machinery, Equipment - 437,726 (437,726) - Total 7,636,727$ 1,563,642$ 6,073,085$ 20.5% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Utility Taxes 1,320,000$ 776,873$ (543,127)$ 58.9% Parking Tax 800,000 411,112 (388,888) 51.4% Real Estate Excise Tax (REET)500,000 296,288 (203,712) 59.3% Permits 1 - (1) 0.0% Franchise Fees 450,000 235,241 (214,759) 52.3% Grant Revenues 2,026,000 299,270 (1,726,730) 14.8% State Entitlements 135,000 66,248 (68,752) 49.1% General Government Revenue - 360 360 - Traffic Impact Fees 200,000 390,734 190,734 195.4% Fines and Penalties 2,000 562 (1,438) 28.1% Other Income 80,000 113,200 33,200 141.5% Investment Earnings 73,000 139,199 66,199 190.7% Total 5,586,001$ 2,729,087$ (2,856,914)$ 48.9% % of Year Complete 50.0% Fund 104 Arterial Street Fund Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 2025 Expenditures YTD 2025 Total BudgetThousandsFund 104 Expenditures $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2025 Revenues YTD 2025 Total BudgetThousandsFund 104 Revenues City of Tukwila Monthly Finance Report 19 65 $% Salaries, Wages, & Overtime 189,193$ 249,979$ 320,458$ 70,479$ +28.2% Benefits 67,098 85,565 111,656 26,091 +30.5% Supplies 86,680 749 63,558 62,809 +8385.7% Services 437,658 561,649 630,244 68,595 +12.2% Land, Structures, Machinery, Equipment 1,161,096 868,390 437,726 (430,664) -49.6% Total 1,941,725$ 1,766,332$ 1,563,642$ (202,690)$ -11.5% $% Utility Taxes 632,612$ 778,550$ 776,873$ (1,677)$ -0% Parking Tax 386,269 432,912 411,112 (21,800) -5.0% Real Estate Excise Tax (REET)107,072 372,709 296,288 (76,421) -20.5% Permits 797 2 - (2) -100.0% Franchise Fees - 177,890 235,241 57,351 +32.2% Grant Revenues 55,049 758,800 299,270 (459,530) -60.6% State Entitlements 71,662 70,148 66,248 (3,900) -5.6% General Government Revenue - 140 360 220 +157.1% Traffic Impact Fees 145,581 132,114 390,734 258,620 +195.8% Fines and Penalties 10,655 1,119 562 (557) -49.8% Other Income 115,334 44,600 113,200 68,600 +153.8% Investment Earnings 121,669 158,566 139,199 (19,367) -12.2% Total 1,646,700$ 2,927,550$ 2,729,087$ (198,463)$ -6.8% Fund 104 Arterial Street Fund Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 Fund 104 Arterial Street Fund Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 104 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 2066 Revenues 8,794$ 98,100$ 9.0% Expenditures 52,798 73,000 72.3% Net Revenues Less Expenditures (44,004)$ 25,100$ % of Year Complete 50.0% Fund 109 Drug Seizure Fund Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 21 67 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Supplies 36,000$ 32,968$ 3,032$ 91.6% Services 37,000 19,830 17,170 53.6% Total 73,000$ 52,798$ 20,202$ 72.3% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Intergovernmental Revenue 35,000$ 8,794$ (26,206)$ 25.1% Other Income 60,000 - (60,000) 0.0% Investment Earnings 3,100 - (3,100) 0.0% Total 98,100$ 8,794$ (89,306)$ 9.0% % of Year Complete 50.0% Fund 109 Drug Seizure Fund Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $10 $20 $30 $40 $50 $60 $70 $80 2025 Expenditures YTD 2025 Total BudgetThousandsFund 109 Expenditures $- $20 $40 $60 $80 $100 $120 2025 Revenues YTD 2025 Total BudgetThousandsFund 109 Revenues City of Tukwila Monthly Finance Report 2268 $% Supplies 11,423$ 4,570$ 32,968$ 28,398$ +621.4% Services 22,822 17,149 19,830 2,681 +15.6% Total 34,245$ 21,719$ 52,798$ 31,079$ +143.1% $% Intergovernmental Revenue 77,060$ -$ 8,794$ 8,794$ - Total 77,060$ -$ 8,794$ 8,794$ - Fund 109 Drug Seizure Fund Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 Fund 109 Drug Seizure Fund Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 - 10 20 30 40 50 60 70 80 90 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 109 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 23 69 Revenues 1,491,571$ 2,841,300$ 52.5% Expenditures 378,169 2,431,000 15.6% Transfers Out - 652,605 0.0% Net Revenues Less Expenditures 1,113,402$ (242,305)$ % of Year Complete 50.0% Fund 301 Land Acq., Rec. & Park Development Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 2470 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Supplies 30,000$ -$ 30,000$ 0.0% Services 1,876,000 374,259 1,501,741 19.9% Land, Structures, Machinery, Equipment 525,000 3,910 521,090 1% Transfers Out to Other Funds 652,605 - 652,605 0% Total 3,083,605$ 378,169$ 2,705,436$ 12.3% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Property Tax 207,800$ 138,193$ (69,607)$ 66.5% Real Estate Excise Tax (REET)500,000 - (500,000) 0.0% Grant Revenues 1,976,000 1,249,810 (726,190) 63.2% Park Impact Fees 100,000 17,515 (82,485) 17.5% Investment Earnings 57,500 86,053 28,553 149.7% Total 2,841,300$ 1,491,571$ (1,349,729)$ 52.5% % of Year Complete 50.0% Fund 301 Land Acq., Rec. & Park Development Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2025 Expenditures YTD 2025 Total BudgetThousandsFund 301 Expenditures $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 2025 Revenues YTD 2025 Total BudgetThousandsFund 301 Revenues City of Tukwila Monthly Finance Report 25 71 $% Services 82,680$ 352,472$ 374,259$ 21,787$ +6.2% Land, Structures, Machinery, Equipment - - 3,910 3,910 - Total 129,250$ 352,472$ 378,169$ 25,697$ +7.3% $% Property Tax 128,923$ 133,701$ 138,193$ 4,492$ +3% Real Estate Excise Tax (REET)36,224 - - - - Grant Revenues - - 1,249,810 1,249,810 - Park Impact Fees 33,733 24,924 17,515 (7,409) -29.7% Investment Earnings 74,344 110,436 86,053 (24,383) -22% Total 273,224$ 269,061$ 1,491,571$ 1,222,510$ +454.4% Fund 301 Land Acq., Rec. & Park Development Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 Fund 301 Land Acq., Rec. & Park Development Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 301 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 2672 Revenues 5,711$ 1,000$ 571.1% Transfers In 219,000 438,000 50.0% Expenditures - 538,000 0.0% Net Revenues Less Expenditures 224,711$ (99,000)$ % of Year Complete 50.0% Fund 303 General Government Improvements Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 27 73 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Services 538,000$ - 538,000$ 0.0% Total 538,000$ - $538,000 0.0% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Investment Earnings 1,000$ 5,711$ 4,711$ 571.1% Transfer In From General Fund 438,000 219,000 (219,000) 50% Total 439,000$ 224,711$ $(214,289)51.2% % of Year Complete 50.0% Fund 303 General Government Improvements Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $100 $200 $300 $400 $500 $600 2025 Expenditures YTD 2025 Total BudgetThousandsFund 303 Expenditures $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 2025 Revenues YTD 2025 Total BudgetThousandsFund 303 Revenues City of Tukwila Monthly Finance Report 2874 $% Services 133,850$ 1,146$ -$ (1,146)$ -100.0% Total 133,850$ 1,146$ -$ (1,146)$ -100.0% $% Investment Earnings 11,781$ 11,610$ 5,711$ (5,899)$ -51% Transfer In From General Fund - - 219,000 219,000 - Total 11,781$ 11,610$ 224,711$ 213,101$ +1835.5% Fund 303 General Government Improvements Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 Fund 303 General Government Improvements Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 $- $50 $100 $150 $200 $250 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 303 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 29 75 Revenues 16,592$ 600,000$ 2.8% Transfers Out - 600,000 0.0% Net Revenues Less Expenditures 16,592$ -$ % of Year Complete 50.0% Fund 304 Fire Improvements Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 3076 Category 2025 Total Budget 2025 Transfers Out through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Transfers Out to Other Funds 600,000$ -$ 600,000$ 0% Total 600,000$ -$ $600,000 0.0% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Fire Impact Fees 600,000$ 16,592$ (583,408)$ 2.8% Total 600,000$ 16,592$ $(583,408)2.8% % of Year Complete 50.0% Fund 304 Fire Improvements Transfers Out Revenues and Transfers In by Category $- $100 $200 $300 $400 $500 $600 $700 2025 Expenditures YTD 2025 Total BudgetThousandsFund 304 Transfers Out $- $100 $200 $300 $400 $500 $600 $700 2025 Revenues YTD 2025 Total BudgetThousandsFund 304 Revenues City of Tukwila Monthly Finance Report 31 77 $% Transfers Out to Other Funds -$ -$ -$ -$ - Total -$ -$ -$ -$ - $% Fire Impact Fees 19,852$ 14,812$ 16,592$ 1,780$ +12.0% Total 19,852$ 14,812$ 16,592$ 1,780$ +12.0% Fund 304 Fire Improvements Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 Fund 304 Fire Improvements Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 $- $5 $10 $15 $20 $25 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 304 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 3278 Revenues 323,481$ 15,000$ 2156.5% Transfers In - 1,100,000 0.0% Transfers Out 659,412 1,318,824 50.0% Net Revenues Less Expenditures (335,931)$ (203,824)$ % of Year Complete 50.0% Fund 305 Public Safety Plan Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 33 79 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Transfers Out to Other Funds 1,318,824$ 659,412$ 659,412$ 50% Total 1,318,824$ 659,412$ $659,412 50% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Real Estate Excise Tax (REET)-$ 296,288$ 296,288$ - Investment Earnings 15,000 27,193 12,193 181.3% Transfers In 1,100,000 - (1,100,000) 0% Total 1,115,000$ 323,481$ $(791,519)29.0% % of Year Complete 50.0% Fund 305 Public Safety Plan Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $200 $400 $600 $800 $1,000 $1,200 $1,400 2025 Expenditures YTD 2025 Total BudgetThousandsFund 305 Expenditures $- $200 $400 $600 $800 $1,000 $1,200 2025 Revenues YTD 2025 Total BudgetThousandsFund 305 Revenues City of Tukwila Monthly Finance Report 3480 $% Transfers Out to Other Funds -$ -$ 659,412$ 659,412 - Total -$ -$ 659,412$ 659,412 - $% Real Estate Excise Tax (REET)70,848$ 372,709$ 296,288$ (76,421)$ -20.5% Investment Earnings 23,468 31,148 27,193 (3,955) -13% Total 94,316$ 403,857$ 323,481$ (80,376)$ -19.9% Fund 305 Public Safety Plan Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 Fund 305 Public Safety Plan Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 $- $100 $200 $300 $400 $500 $600 $700 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 305 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 35 81 Revenues -$ 846,937$ 0.0% Transfers In 500,001 1,000,000 50.0% Expenditures 48,122 1,000,000 4.8% Net Revenues Less Expenditures 451,879$ 846,937$ % of Year Complete 50.0% Fund 306 City Facilities Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 3682 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Services 1,000,000$ 48,122$ 951,878$ 4.8% Total 1,000,000$ 48,122$ $951,878 4.8% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Investment Earnings 5,000$ -$ (5,000)$ 0.0% Rent & Concessions 841,937 - (841,937) 0.0% Transfers In 1,000,000 500,001 (499,999) 50% Total 1,846,937$ 500,001$ $ (1,346,936)27.1% % of Year Complete 50.0% Fund 306 City Facilities Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $200 $400 $600 $800 $1,000 $1,200 2025 Expenditures YTD 2025 Total BudgetThousandsFund 306 Expenditures $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 2025 Revenues YTD 2025 Total BudgetThousandsFund 306 Revenues City of Tukwila Monthly Finance Report 37 83 $% Services 82,434$ 1,238,872$ 48,122$ (1,190,750)$ -96.1% Land, Structures, Machinery, Equipment 1,320,579 808 - (808) -100.0% Total 1,410,923$ 1,239,680$ 48,122$ (1,191,558)$ -96.1% $% Investment Earnings 24,163$ 13,602$ -$ (13,602)$ -100.0% Rent & Concessions - - - - - Transfers In - 500,000 500,001 1 +0% Total 24,163$ 598,352$ 500,001$ (98,351)$ -16.4% Fund 306 City Facilities Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 Fund 306 City Facilities Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 306 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 3884 Revenues 4,062,967$ 11,341,356$ 35.8% Expenditures 3,871,458 10,493,596 36.9% Transfers Out 753,809 1,507,615 50.0% Net Revenues Less Expenditures (562,300)$ (659,855)$ % of Year Complete 50.0% Fund 401 Water Utility Fund Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 39 85 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Salaries, Wages, & Overtime 957,112$ 445,345$ 511,767$ 47% Benefits 538,827 188,129 350,698 35% Supplies 3,105,196 1,815,951 1,289,245 58.5% Services 5,677,288 967,576 4,709,712 17.0% Land, Structures, Machinery, Equipment - 453,399 (453,399) - Other Expenditures 215,173 1,058 214,115 0.5% Transfers Out - Internal Cost Allocation 816,232 408,118 408,114 50% Transfers Out - Debt Service 358,050 179,024 179,026 50% Transfers Out to Other Funds 333,333 166,667 166,666 50% Total 12,001,211$ 4,625,267$ $7,375,944 38.5% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Water Sales 9,239,856$ 4,023,112$ (5,216,744)$ 43.5% Security Revenue - (13,854) (13,854) - Other Income 1,500 10,139 8,639 675.9% Investment Earnings 100,000 43,570 (56,430) 43.6% Bond Proceeds 2,000,000 - (2,000,000) 0% Total 11,341,356$ 4,062,967$ $ (7,278,389)35.8% % of Year Complete 50.0% Fund 401 Water Utility Fund Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 2025 Expenditures YTD 2025 Total BudgetThousandsFund 401 Expenditures and Transfers Out $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2025 Revenues YTD 2025 Total BudgetThousandsFund 401 Revenues City of Tukwila Monthly Finance Report 4186 $% Salaries, Wages, & Overtime 347,413$ 386,756$ 445,345$ 58,589$ +15.1% Benefits 155,331 186,610 188,129 1,519 +0.8% Supplies 1,707,060 1,741,261 1,815,951 74,690 +4.3% Services 1,073,189 917,014 967,576 50,562 +5.5% Land, Structures, Machinery, Equipment - 56,065 453,399 397,334 +708.7% Other Expenditures 83,493 82,596 1,058 (81,538) -99% Transfers Out - Internal Cost Allocation 370,176 388,684 408,118 19,434 +5% Transfers Out - Debt Service 179,023 179,023 179,024 1 +0% Transfers Out to Other Funds (121) 170,000 166,667 (3,333) -2% Total 3,915,564$ 4,108,009$ 4,625,267$ 517,258$ +12.6% $% Water Sales 3,446,861$ 3,602,100$ 4,023,112$ 421,012$ +12% Security Revenue 6,149 6,243 (13,854) (20,097) -321.9% Other Income 5,491 5,563 10,139 4,576 +82.3% Investment Earnings 88,769 83,683 43,570 (40,113) -48% Total 3,547,270$ 3,697,589$ 4,062,967$ 365,378$ +9.9% Fund 401 Water Utility Fund Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 Fund 401 Water Utility Fund Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 401 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 41 87 Revenues 5,636,169$ 12,527,105$ 45.0% Expenditures 6,501,591 16,129,584 40.3% Transfers Out 610,542 1,221,086 50.0% Net Revenues Less Expenditures (1,475,964)$ (4,823,565)$ % of Year Complete 50.0% Fund 402 Sewer Utility Fund Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 4288 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Salaries, Wages, & Overtime 666,584$ 373,652$ 292,932$ 56% Benefits 482,884 163,136 319,748 34% Supplies 6,214,355 2,830,737 3,383,618 45.6% Services 8,611,358 1,087,071 7,524,287 12.6% Land, Structures, Machinery, Equipment - 2,001,650 (2,001,650) - Other Expenditures 154,403 45,345 109,058 29% Transfers Out - Internal Cost Allocation 687,666 343,830 343,836 50% Transfers Out - Debt Service 200,087 100,045 100,042 50% Transfers Out to Other Funds 333,333 166,667 166,666 50% Total 17,350,670$ 7,112,133$ $ 10,238,537 41.0% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Sewer Sales 12,127,105$ 5,443,217$ (6,683,888)$ 44.9% Other Income - 43,869 43,869 - Investment Earnings 400,000 149,083 (250,917) 37.3% Total 12,527,105$ 5,636,169$ $ (6,890,936)45.0% % of Year Complete 50.0% Fund 402 Sewer Utility Fund Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 2025 Expenditures YTD 2025 Total BudgetThousandsFund 402 Expenditures and Transfers Out $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 2025 Revenues YTD 2025 Total BudgetThousandsFund 402 Revenues City of Tukwila Monthly Finance Report 43 89 $% Salaries, Wages, & Overtime 419,811$ 550,189$ 373,652$ (176,537)$ -32.1% Benefits 182,191 230,558 163,136 (67,422) -29.2% Supplies 2,056,672 2,635,651 2,830,737 195,086 +7.4% Services 860,570 1,139,209 1,087,071 (52,138) -4.6% Land, Structures, Machinery, Equipment - - 2,001,650 2,001,650 - Other Expenditures 242,333 239,987 45,345 (194,642) -81% Transfers Out - Internal Cost Allocation 311,868 327,458 343,830 16,372 +5% Transfers Out - Debt Service 100,042 100,042 100,045 3 +0% Transfers Out to Other Funds (67) 95,000 166,667 71,667 +75% Total 4,173,420$ 5,318,094$ 7,112,133$ 1,794,039$ +33.7% $% Sewer Sales 4,859,923$ 5,028,180$ 5,443,217$ 415,037$ +8% Other Income 23,391 4,667 43,869 39,202 +840.0% Investment Earnings 229,411 250,107 149,083 (101,024) -40.4% Total 5,112,725$ 5,282,954$ 5,636,169$ 353,215$ +6.7% Fund 402 Sewer Utility Fund Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 Fund 402 Sewer Utility Fund Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 402 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 4490 Revenues 1,235,279$ 2,487,500$ 49.7% Transfers In 150,000 300,000 50.0% Expenditures 1,264,602 2,719,666 46.5% Transfers Out 120,894 241,788 50.0% Net Revenues Less Expenditures (217)$ (173,954)$ % of Year Complete 50.0% Fund 411 Foster Golf Course Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 45 91 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Salaries, Wages, & Overtime 1,077,911$ 520,469$ 557,442$ 48% Benefits 395,385 205,123 190,262 52% Supplies 362,145 261,318 100,827 72.2% Services 360,225 227,362 132,863 63.1% Land, Structures, Machinery, Equipment 524,000 50,330 473,670 10% Transfers Out - Internal Cost Allocation 241,788 120,894 120,894 50% Total 2,961,454$ 1,385,496$ $1,575,958 46.8% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Gambling & Excise Taxes 3,000$ -$ (3,000)$ 0.0% Greens Fees 1,610,000 906,427 (703,573) 56.3% General Government Revenue 165,000 97,161 (67,839) 58.9% Culture and Recreation Fees 5,000 2,197 (2,803) 43.9% Other Income 11,000 18,474 7,474 167.9% Investment Earnings 60,000 27,165 (32,835) 45.3% Rent & Concessions 633,500 183,855 (449,645) 29.0% Transfer In From General Fund 300,000 150,000 (150,000) 50% Total 2,787,500$ 1,385,279$ $ (1,402,221)49.7% % of Year Complete 50.0% Fund 411 Foster Golf Course Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2025 Expenditures YTD 2025 Total BudgetThousandsFund 411 Expenditures and Transfers Out $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 2025 Revenues YTD 2025 Total BudgetThousandsFund 411 Revenues and Transfers In City of Tukwila Monthly Finance Report 4692 $% Salaries, Wages, & Overtime 402,594$ 459,984$ 520,469$ 60,485$ +13.1% Benefits 181,133 188,739 205,123 16,384 +8.7% Supplies 260,262 172,078 261,318 89,240 +51.9% Services 285,830 346,394 227,362 (119,032) -34.4% Land, Structures, Machinery, Equipment - 51,632 50,330 (1,302) -2.5% Transfers Out - Internal Cost Allocation 109,656 115,134 120,894 5,760 +5% Total 1,239,475$ 1,333,961$ 1,385,496$ 51,535$ +3.9% $% Greens Fees 836,484$ 771,868$ 906,427$ 134,559$ +17.4% General Government Revenue 89,247 71,377 97,161 25,784 +36.1% Culture and Recreation Fees 197 754 2,197 1,443 +191.4% Other Income 21,025 5,684 18,474 12,790 +225% Investment Earnings 33,269 45,193 27,165 (18,028) -40% Rent & Concessions 205,280 188,778 183,855 (4,923) -3% Sale of Capital Assets 12,800 4,000 - (4,000) -100% Transfer In From General Fund 150,000 150,000 150,000 - 0% Total 1,348,302$ 1,237,654$ 1,385,279$ 147,625$ +11.9% Fund 411 Foster Golf Course Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 Fund 411 Foster Golf Course Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 $1,150 $1,200 $1,250 $1,300 $1,350 $1,400 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 411 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 47 93 Revenues 9,286,239$ 14,742,267$ 63.0% Expenditures 3,506,135 15,103,982 23.2% Transfers Out 777,880 1,555,760 50.0% Net Revenues Less Expenditures 5,002,224$ (1,917,475)$ % of Year Complete 50.0% Fund 412 Surface Water Utility Fund Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 4894 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Salaries, Wages, & Overtime 2,028,653$ 834,922$ 1,193,731$ 41% Benefits 1,023,526 334,674 688,852 33% Supplies 72,665 21,891 50,774 30.1% Services 11,957,541 2,202,556 9,754,985 18.4% Land, Structures, Machinery, Equipment - 111,604 (111,604) - Other Expenditures 21,597 488 21,109 2% Transfers Out - Internal Cost Allocation 727,476 363,738 363,738 50% Transfers Out - Debt Service 494,951 247,475 247,476 50% Transfers Out to Other Funds 333,333 166,667 166,666 50% Total 16,659,742$ 4,284,015$ $ 12,375,727 25.7% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Surface Water Sales 8,477,267$ 8,571,054$ 93,787$ 101.1% Permits - (17) (17) - Grant Revenues 3,322,000 290,647 (3,031,353) 8.7% Other Income 2,643,000 211,268 (2,431,732) 8.0% Investment Earnings 300,000 213,287 (86,713) 71.1% Total 14,742,267$ 9,286,239$ $ (5,456,028)63.0% % of Year Complete 50.0% Fund 412 Surface Water Utility Fund Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 2025 Expenditures YTD 2025 Total BudgetThousandsFund 412 Expenditures and Transfers Out $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 2025 Revenues YTD 2025 Total BudgetThousandsFund 412 Revenues City of Tukwila Monthly Finance Report 49 95 $% Salaries, Wages, & Overtime 598,988$ 764,249$ 834,922$ 70,673$ +9.2% Benefits 281,075 323,721 334,674 10,953 +3.4% Supplies 27,254 57,802 21,891 (35,911) -62.1% Services 1,229,325 1,466,331 2,202,556 736,225 +50.2% Land, Structures, Machinery, Equipment - 92,320 111,604 19,284 +20.9% Other Expenditures 262,901 261,376 488 (260,888) -100% Transfers Out - Internal Cost Allocation 329,922 346,418 363,738 17,320 +5% Transfers Out - Debt Service 247,473 247,473 247,475 2 +0% Transfers Out to Other Funds (167) 235,000 166,667 (68,333) -29% Total 2,976,771$ 3,794,690$ 4,284,015$ 489,325$ +12.9% $% Surface Water Sales 7,767,059$ 8,091,932$ 8,571,054$ 479,122$ +6% Permits - - (17) (17) - Grant Revenues 44,631 5,033 290,647 285,614 +5674.8% Other Income (56,081) 762,109 211,268 (550,841) -72.3% Investment Earnings 134,650 226,910 213,287 (13,623) -6% Total 7,890,259$ 9,085,984$ 9,286,239$ 200,255$ +2.2% Fund 412 Surface Water Utility Fund Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 Fund 412 Surface Water Utility Fund Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 412 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 5096 Revenues 3,168,288$ 6,223,147$ 50.9% Expenditures 2,294,544 5,749,503 39.9% Transfers Out 193,156 386,308 50.0% Net Revenues Less Expenditures 680,588$ 87,336$ % of Year Complete 50.0% Fund 501 Equipment Rental Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 51 97 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Salaries, Wages, & Overtime 519,798$ 254,871$ 264,927$ 49% Benefits 237,888 116,296 121,592 49% Supplies 790,900 453,591 337,309 57.4% Services 1,903,717 901,264 1,002,453 47.3% Land, Structures, Machinery, Equipment 2,297,200 568,522 1,728,678 25% Transfers Out - Internal Cost Allocation 386,308 193,156 193,152 50% Total 6,135,811$ 2,487,700$ $3,648,111 40.5% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Fleet Replacement Charges 2,294,324$ 1,147,153$ (1,147,171)$ 50.0% Fleet Lease Charges 3,526,723 1,763,356 (1,763,367) 50.0% Fleet Repair Charges 200,000 65,526 (134,474) 32.8% Other Income 2,100 2,863 763 136.3% Investment Earnings 40,000 36,132 (3,868) 90.3% Sale of Capital Assets 160,000 153,258 (6,742) 95.8% Total 6,223,147$ 3,168,288$ $ (3,054,859)50.9% % of Year Complete 50.0% Fund 501 Equipment Rental Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 2025 Expenditures YTD 2025 Total BudgetThousandsFund 501 Expenditures and Transfers Out $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 2025 Revenues YTD 2025 Total BudgetThousandsFund 501 Revenues City of Tukwila Monthly Finance Report 5298 $% Salaries, Wages, & Overtime 151,858$ 199,733$ 254,871$ 55,138$ +27.6% Benefits 78,605 100,151 116,296 16,145 +16.1% Supplies 321,012 347,300 453,591 106,291 +30.6% Services 366,655 728,876 901,264 172,388 +23.7% Land, Structures, Machinery, Equipment 12,868 130,376 568,522 438,146 +336.1% Transfers Out - Internal Cost Allocation 175,194 183,958 193,156 9,198 +5% Total 1,106,192$ 1,690,394$ 2,487,700$ 797,306$ +47.2% $% Fleet Replacement Charges 525,252$ 620,372$ 1,147,153$ 526,781$ +85% Fleet Lease Charges 502,860 - 1,763,356 1,763,356 - Fleet Repair Charges - 74,119 65,526 (8,593) -11.6% Other Income 85 - 2,863 2,863 - Investment Earnings 97,797 96,850 36,132 (60,718) -63% Sale of Capital Assets 214,403 36,480 153,258 116,778 +320% Total 1,340,397$ 827,821$ 3,168,288$ 2,340,467$ +282.7% Fund 501 Equipment Rental Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 Fund 501 Equipment Rental Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 501 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 53 99 Revenues 3,530,269$ 8,302,594$ 42.5% Expenditures 2,812,978 6,599,439 42.6% Transfers Out 104,539 209,077 50.0% Net Revenues Less Expenditures 612,752$ 1,494,078$ % of Year Complete 50.0% Fund 502 Insurance - Active Employees Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 54100 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Self Insurance Medical Claims 4,108,327$ 1,793,063$ 2,315,264$ 44% Dental Claims 413,306 196,441 216,865 48% Prescription Claims 1,158,759 493,676 665,083 42.6% Vision Claims 21,641 11,651 9,990 53.8% Stop Loss Reimbursements - (146,230) 146,230 - TPA Admin Fees 155,034 92,803 62,231 60% Excess Loss Prem 621,372 334,641 286,731 54% Contracted Services 100,000 31,988 68,012 32% Employee Wellness Services 18,000 4,945 13,055 27% Transfers Out - Internal Cost Allocation 209,077 104,539 104,538 50% Total 6,805,516$ 2,917,517$ $3,887,999 42.9% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Employer Trust Contributions 7,943,114$ 3,237,097$ (4,706,017)$ 40.8% Employee Voluntary Contributions - 26,347 26,347 - Employee Mandatory Contributions 311,980 166,488 (145,492) 53.4% Employee Benefit Program Services - 43 43 - Investment Earnings 47,500 100,294 52,794 211.1% Total 8,302,594$ 3,530,269$ $ (4,772,325)42.5% % of Year Complete 50.0% Fund 502 Insurance - Active Employees Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2025 Expenditures YTD 2025 Total BudgetThousandsFund 502 Expenditures and Transfers Out $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 2025 Revenues YTD 2025 Total BudgetThousandsFund 502 Revenues City of Tukwila Monthly Finance Report 55101 $% Self Insurance Medical Claims 1,844,211$ 1,822,864$ 1,793,063$ (29,801)$ -1.6% Dental Claims 223,932 191,054 196,441 5,387 +2.8% Prescription Claims 458,282 476,341 493,676 17,335 +3.6% Vision Claims 9,789 9,831 11,651 1,820 +18.5% Stop Loss Reimbursements - (125,060) (146,230) (21,170) +16.9% TPA Admin Fees 68,627 64,775 92,803 28,028 +43.3% Excess Loss Prem 127,785 199,384 334,641 135,257 +67.8% Employee Wellness Supplies 303 250 - (250) -100% Contracted Services 31,331 31,878 31,988 110 +0% Employee Wellness Services - 132 4,945 4,813 +3646% Transfers Out - Internal Cost Allocation 94,818 99,563 104,539 4,976 +5% Total 2,859,078$ 2,771,012$ 2,917,517$ 146,505$ +5.3% $% Employer Trust Contributions 2,795,102$ 3,107,376$ 3,237,097$ 129,721$ +4% Employee Voluntary Contributions 41,150 13,539 26,347 12,808 +94.6% Employee Mandatory Contributions 43,192 44,565 166,488 121,923 +273.6% Employee Benefit Program Services - - 43 43 - Investment Earnings 95,486 112,969 100,294 (12,675) -11% Total 2,974,930$ 3,278,449$ 3,530,269$ 251,820$ +7.7% Fund 502 Insurance - Active Employees Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 Fund 502 Insurance - Active Employees Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 502 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 56102 Revenues 205,152$ 546,347$ 37.5% Expenditures 222,001 488,766 45.4% Transfers Out 6,966 13,938 50.0% Net Revenues Less Expenditures (23,815)$ 43,643$ % of Year Complete 50.0% Fund 503 Insurance - LEOFF I Retirees Overview 2025 through June 2025 Total Budget Budget Variance % of Annual Budget City of Tukwila Monthly Finance Report 57103 Category 2025 Total Budget 2025 Expenses through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Self Insurance Medical Claims 150,000$ 30,865$ 119,135$ 21% Dental Claims 32,931 13,416 19,515 41% Prescription Claims 169,644 89,610 80,034 52.8% Vision Claims 4,419 1,512 2,907 34.2% TPA Admin Fees 12,612 8,532 4,080 68% Excess Loss Premium 24,160 13,846 10,314 57% Long Term Care 15,000 48,370 (33,370) 322% Out of Pocket 75,000 923 74,077 1% Medicare Plan B - 14,927 (14,927) - Contracted Services 5,000 - 5,000 0% Transfers Out - Internal Cost Allocation 13,938 6,966 6,972 50% Total 502,704$ 228,967$ $273,737 45.5% % of Year Complete 50.0% Category 2025 Total Budget 2025 Revenues through June Budget Variance (Unfavorable) / Favorable Budget Variance % of Annual Budget Employer Trust Contributions 545,833$ 204,936$ (340,897)$ 37.5% Investment Earnings 514 194 (320) 37.7% Employee Benefit Program Services - 22 22 - Total 546,347$ 205,152$ $(341,195)37.5% % of Year Complete 50.0% Fund 503 Insurance - LEOFF I Retirees Expenditures and Transfers Out by Category Revenues and Transfers In by Category $- $100 $200 $300 $400 $500 $600 2025 Expenditures YTD 2025 Total BudgetThousandsFund 503 Expenditures and Transfers Out $- $100 $200 $300 $400 $500 $600 2025 Revenues YTD 2025 Total BudgetThousandsFund 503 Revenues City of Tukwila Monthly Finance Report 58104 $% Self Insurance Medical Claims 35,751$ 34,508$ 30,865$ (3,643)$ -10.6% Dental Claims 13,267 11,589 13,416 1,827 +15.8% Prescription Claims 75,995 65,872 89,610 23,738 +36.0% Vision Claims 903 10,244 1,512 (8,732) -85.2% TPA Admin Fees 7,956 7,519 8,532 1,013 +13.5% Excess Loss Premium 41,464 8,326 13,846 5,520 +66.3% Long Term Care 45,384 57,043 48,370 (8,673) -15.2% Out of Pocket 1,131 2,061 923 (1,138) -55% Medicare Plan B 27,243 20,094 14,927 (5,167) -26% Contracted Services - 2,000 - (2,000) -100% Transfers Out - Internal Cost Allocation 6,324 6,638 6,966 328 +5% Total 255,418$ 225,894$ 228,967$ 3,073$ +1.4% $% Employer Trust Contributions 159,825$ 165,414$ 204,936$ 39,522$ +24% Investment Earnings 3,577 2,539 194 (2,345) -92.4% Employee Benefit Program Services - - 22 22 - Total 163,402$ 167,953$ 205,152$ 37,199$ +22.1% Fund 503 Insurance - LEOFF I Retirees Year-to-Year Revenues and Transfers In by Category Category 2023 Revenues through June 2024 Revenues through June 2025 Revenues through June 2025 vs 2024 Fund 503 Insurance - LEOFF I Retirees Year-to-Year Expenditures & Transfers Out by Category Category 2023 Expenses through June 2024 Expenses through June 2025 Expenses through June 2025 vs 2024 $- $50 $100 $150 $200 $250 $300 Revenues and Transfers In Expenditures and Transfers Out Thousands Fund 503 Prior Year Comparisons YTD 2023 2024 2025 City of Tukwila Monthly Finance Report 59105 (d) Depository Investment Type Maturity Date Balance Current Rate Annualized Return CASH & CASH EQUIVALENTS US Bank Operating Cash Depository (b)30,505,586 0.60%183,034 (e) Washington State Treasurer LGIP Investment Pool (b)35,797,236 4.38%1,569,029 (f) Umpquah Interest Checking (b)17,466,969 4.62%806,974 (f) Total Cash & Cash Equivalents 83,769,790 3.05%2,559,036 (g) (a)(c) Agency / Issuer Rating Investment Type Purchase Date Maturity Date Term Yrs.Face Value Yield to Maturity Annualized Return INVESTMENTS Agencies Federal Home Loan Bank Aaa US agency 02/2021 02/2026 0.6 1,000,000 0.63%6,250 Federal Farm Credit Bank Aaa US agency 06/2021 06/2026 0.9 1,000,000 0.90%9,000 Federal Home Loan Bank Aaa US agency 11/2021 11/2026 1.4 2,000,000 1.46%29,200 Federal Farm Credit Bank Aaa US agency 03/2022 12/2025 0.4 1,000,000 2.00%20,000 Federal Home Loan Bank Aaa US agency 05/2022 05/2027 1.8 1,000,000 3.96%40,000 Federal Home Loan Bank Aaa US agency 05/2022 05/2026 0.8 1,000,000 3.38%33,750 Federal Home Loan Bank Aaa US agency 06/2022 06/2027 1.9 1,000,000 3.59%35,900 Federal Farm Credit Bank Aaa US agency 06/2022 06/2027 2.0 1,000,000 4.00%40,000 Federal Home Loan Bank Aaa US agency 12/2022 10/2025 0.3 1,000,000 4.35%6,000 TOTAL AGENCIES 10,000,000 2.20%220,100 Taxable Municipal Bonds Metro Oregon GO Taxable AAA LTGO 06/2021 06/2026 0.9 1,000,000 0.83%32,500 King County WA GO Taxable 03/2022 12/2026 1.4 1,000,000 2.33%14,000 Bellevue WA GO Taxable 04/2022 12/2026 1.4 1,000,000 3.12%14,370 TOTAL MUNICIPAL BONDS 3,000,000 2.03%60,870 Total Investments 13,000,000 2.16%280,970 TOTAL PROJECTED CASH, CASH EQUIVALENTS & INVESTMENTS 96,769,790$ 2.93%2,840,006$ Current Portfolio Yield (a) Term is calculated to final maturity or call date if bond has been called. (b) No fixed maturity, funds are available within one day. (c) Yield to Maturity represents average rate for the year for various investment vehicles. (d) Annualized return represents annual earnings at current rate. (e) Represents earning credit from US Bank. City earned interest up to the amount of fees. (f) Current rate reflects most recent interest rate for each depository account. (g) Represents annual earnings, assuming no changes in the Market. Actual earnings to date are $1,388,779 CITY OF TUKWILA CASH & INVESTMENT REPORT June 30, 2025 Cash and Investment Details Cash, 32% LGIP, 37% Money Market, 18% Agencies, 10% Municipal Bonds, 3% Current Portfolio Allocation 106 Cash & Investments Portfolio Amount Available Within 1 Year Available Within 5 Years Funds immediately available - US Bank, State LGIP, Money market 83,769,790$ 83,769,790$ 83,769,790$ Fixed Maturity Investments, maturing in: 0-90 days after Report Date 1,000,000 91-180 days after Report Date 1,000,000 181-270 days after Report Date 1,000,000 271-360 days after Report Date 3,000,000 Total Investments maturing in 1 year or less 6,000,000 6,000,000 6,000,000 Investments maturing in more than 1 year and less than 10 years.7,000,000 7,000,000 Total Cash & Investments 96,769,790$ 89,769,790$ 96,769,790$ 93%100% Portfolio POLICY Policy Financial Institution Diversification Amount % of Total MAXIMUM Met? US Bank 30,505,586$ 31.5%insured by PDPC Yes Umpquah Bank 17,466,969 18.1%20%Yes State LGIP 35,797,236 37.0%100.0%Yes Investments in US Government and other non- financial institutions 13,000,000 13.4%varies see below Yes Total 96,769,790$ 100.0% Portfolio POLICY Policy Investment Mix Amount % of Total MAXIMUM Met? Depository (USBank)30,505,586 31.5%insured by PDPC Yes State Investment Pool 35,797,236 37.0%100%Yes Umpquah 17,466,969 18.1%insured by PDPC Yes US Agency 10,000,000 10.3%100%Yes Municipal Bonds 3,000,000 3.1%30%Yes Total 96,769,790 100.0% Weighted Average Maturities:Years Performance Analysis Funds Immediately Available 0.0 Current portfolio yield 2.93% Government Agency bonds 1.2 Municipal bonds 1.3 Benchmarks: Total WAM 0.2 2 year treasury 3.723% 3 year treasury 3.693% POLICY MAXIMUM 2.0 5 year treasury 3.809% Policy Met?Yes Note: Funds immediately available are not factored into the Portfolio Investments weighted average maturity. CITY OF TUKWILA Policy Compliance & Liquidity Analysis CASH & INVESTMENT REPORT June 30, 2025 As of Report Date 107