HomeMy WebLinkAbout2025 Financial Report - Quarter 1 General Fund1
City of Tukwila
Quarter 1 Financial Report
January – March
2025
General Fund Overview
2
General Fund
2025 Budget 2025 Actual % of Budget $ Diff
Revenues 76,087,350 17,955,453 23.6%($1,066,384)
Expenditures 74,931,244 18,691,567 24.9%(412)
Net 1,156,106 (736,113)
2025 Beginning Fund Balance 24,121,326
2025 Projected Ending Fund Balance 23,385,213
General Fund - Required Ending Fund Balance Calculation
2025 Ongoing Revenues 15,561,646
18% of Ongoing Revenues 2,801,096
2025 GF Budgeted Unassigned FB 23,385,213
Amount Over/(Under)$20,584,116
Contingency Fund - Required Ending Fund Balance Calculation
10% of 2025 Ongonig Revenues 1,556,165
Budgeted Contingency Fund 7,154,961
Amount Over/(Under)$5,598,796
3
2025 Quarter 1 (Q1) Financial Overview
For Q1 2025, General Fund revenues are trailing the 2025 expectations by $1.1 million (5.6%), due to the
timing of Property Tax collections, which are received in April. Q1 expenditures are on track, trending at
0.2% under budget.
76,087 74,931
17,955 18,692
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Revenues Expenditures
ThousandsGeneral Fund
2025 Q1 Revenues & Expenditures
Budget vs Actual
2025 Budget 2025 Actual
4
Revenue Analysis
Taxes remain the primary revenue classification, comprising 69% of Q1 revenue. The remaining 31%
consists of other revenue classifications, which are relatively evenly distributed.
Revenue Classification Amount %
Tax 12,386,918 69.0%
Licenses and Permits 1,746,501 9.7%
Intergovernmental 1,279,584 7.1%
Charges for Services 1,038,393 5.8%
Non-Operating Income 1,504,058 8.4%
Total 17,955,453 100.0%
69.0%
9.7%
7.1%
5.8%
8.4%
2025 Q1 Revenues
Tax Licenses and Permits Intergovernmental
Charges for Services Non-Operating Income
5
Taking a closer look at taxes, Sales Tax leads the category. Property Tax is substantially collected twice a
year in April and October. We will see an increase in the Property Tax received in May, after the April
payments are recorded.
Taxes Amount %
Sales Taxes-Retail $6,078,625 54%
Property Tax $1,075,573 9%
Utility Taxes $1,340,344 12%
Gambling & Excise Taxes $421,492 4%
Interfund Utility Taxes $1,313,835 12%
Business & Occupation Tax $591,219 5%
Admission Taxes $273,902 2%
Use Taxes $246,712 2%
Total Taxes $11,341,701 100%
6
General Fund Overview - Revenues by Category
Below are General Fund revenues by category. Variances from the prior quarter that are greater than
10% AND $250k are further explained in the report.
Year-to-Date as of March 31, 2025
BUDGET ACTUAL COMPARISON OF RESULTS
SUMMARY BY REVENUE TYPE YTD Budget % Change
2025 2023 2024 2025 vs Actuals Received $%
Budget OVER/(UNDER) 2024/2025 2024/2025
Property Tax 11,999,227 677,329 752,544 1,075,573 (1,924,234)9%323,029 42.9%
Sales Taxes-Retail 23,447,886 5,642,125 5,700,244 6,078,625 216,653 26%378,381 6.6%
Use Taxes 999,100 278,367 242,205 246,712 (3,063)25%4,507 1.9%
Admission Taxes 859,235 213,217 176,122 273,902 59,094 32%97,781 55.5%
Utility Taxes 4,493,702 1,208,533 1,267,384 1,361,361 237,935 30%93,976 7.4%
Interfund Utility Taxes 3,167,729 1,178,350 1,221,373 1,313,835 521,902 41%92,462 7.6%
Gambling & Excise Taxes 4,609,500 1,306,159 1,060,091 1,317,791 165,416 29%257,700 24.3%
Business & Occupation Tax 2,400,000 0 0 719,121 119,121 30%719,121 0.0%
Total Tax Revenue 51,976,379 10,504,081 10,419,962 12,386,918 (607,177)24%$1,966,956 18.9%
Business Licenses 3,445,500 768,245 674,595 593,444 (267,931)17%(81,151)-12.0%
Rental Housing permits 44,700 36,012 37,110 47,329 36,154 106%10,219 27.5%
Building Permits 1,940,500 540,508 405,062 758,975 273,850 39%353,913 87.4%
Franchise Fees 651,372 123,683 131,962 346,752 183,909 53%214,790 162.8%
Total Licenses and Permits 6,082,072 1,468,448 1,248,729 1,746,501 225,983 29%$497,771 39.9%
Sales Tax Mitigation Pyments 406,700 176,519 141,216 112,972 11,297 28%(28,243)-20.0%
SCL Agreement 2,687,700 737,591 805,135 885,416 213,491 33%80,282 10.0%
Grant Revenues 877,372 212,243 1,275,786 157,667 (61,676)18%(1,118,119)-87.6%
State Entitlements 690,330 106,053 154,524 142,161 (30,422)21%(12,363)-8.0%
Intergovernmental Revenue 0 6,378 737,381 (18,633)(18,633)0%(756,014)-102.5%
Total Intergovernmental Revenue 4,662,102 1,238,784 3,114,041 1,279,584 114,058 27%($1,834,458)-58.9%
General Government Revenue 9,620 6,797 2,981 7,562 5,157 79%4,582 153.7%
Security revenue 1,139,456 163,730 279,271 317,223 32,359 28%37,952 13.6%
Transportation Revenue 20,000 288 0 0 (5,000)0%0 0.0%
Plan Check and Review Fees 662,000 249,756 158,748 326,535 161,035 49%167,787 105.7%
Culture and Recreation Fees 781,045 37,184 65,958 79,845 (115,416)10%13,888 21.1%
Fines and Penalties 404,505 87,967 78,791 250,985 149,859 62%172,194 218.5%
OTHER INCOME 190,075 137,246 193,165 56,242 8,723 30%(136,923)-70.9%
Total Charges for Services 3,206,701 682,969 778,913 1,038,393 78,135 32%$259,480 33.3%
TOTAL OPERATING REVENUE 65,927,254 13,894,281 15,561,646 16,451,395 (49,475,859)25%$889,750 5.7%
Indirect Cost Allocation 3,111,694 705,603 740,886 777,922 (2)25%37,036 5.0%
Investment Earnings 470,000 67,107 66,806 97,706 (19,794)21%30,900 46.3%
Rent & Concessions 383,783 35,493 293,816 298,724 202,778 78%4,909 1.7%
Transfers In 1,494,619 0 176,392 329,706 (43,949)22%153,314 86.9%
Sale of Capital Assets 4,700,000 0 0 0 (1,175,000)0%0%0.0%
Total Non Operating Revenue 10,160,096 808,203 1,277,899 1,504,058 (1,035,966)15%$226,159 17.7%
TOTAL REVENUE 76,087,350 14,702,484 16,839,545 17,955,453 (1,066,384)24%$1,115,908 6.6%
% of Year 25%
7
Significant Changes
Property Tax – First half payment is made in April. The increase of $323,029 is a representation of early
first ½ payments.
Gambling Tax – The Increase is due to the collection of past due gambling tax revenue.
Business & Occupation Tax – Business & Occupation Tax: The City implemented the B&O Tax on
January 1, 2024. Q1 2025 revenues, remitted in April, are not reflected in this report.
Building Permits are a volatile revenue stream that is difficult to predict. At 25% of the year, the City has
received 39% of the anticipated budget amount.
Grant Revenues are down compared to the prior year is primarily due to the expiration of Federal ARPA
grant funding as of December 31, 2024.
Intergovernmental Revenue reported A notable decline is due to the absence of Basic Life Services
(BLS) training funding in 2025, which contributed over $700,000 in revenue in 2024. Additionally,
approximately $22,000 in invoiced revenue was reversed.
8
General Fund Revenue Charts
Property Tax
2023
Actual
2024
Actual
2025
Actual
2025 vs
2024 $ Diff % Diff
677,329 752,544 1,075,573 323,029 42.9%
Property Tax is primarily collected twice a year. This revenue will increase in April & May once payments
are recorded. Q1 reflects early payments totaling $323,029. The 42% year-over-year increase is due to
these early remittances.
677,329
752,544
1,075,573
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2023 Actual 2024 Actual 2025 Actual
Property Tax
Jan -Mar
2023 -2025
9
Sales Tax
2023
Actual 2024 Actual 2025 Actual
2025 vs
2024 $ Diff % Diff
5,920,492 5,942,449 6,325,337 382,888 6.4%
Sales Tax leads all tax categories and has increased 6.4% compared to the same period in 2024. The
growth is attributed to heightened economic activity.
5,920,492 5,942,449
6,325,337
5,700,000
5,800,000
5,900,000
6,000,000
6,100,000
6,200,000
6,300,000
6,400,000
2023 Actual 2024 Actual 2025 Actual
Sales Tax
Jan -Mar
2023 -2025
10
Utility Tax
2023
Actual
2024
Actual
2025
Actual
2025 vs
2024 $ Diff % Diff
1,208,533 1,267,384 1,361,361 93,976 7.4%
Utility Tax revenue rose by 7.4% over the prior year. Notable increases were observed in Gas, while Solid
Waste reported a decrease due to an unprocessed March payment at the time of reporting.
Utility 2023 2024 2025
$
Change
%
Change
Cable $58,211.04 $67,885.92 $62,544.56 (5,341) -7.9%
Electric $480,434.58 $518,081.02 $552,524.24 34,443 6.6%
Gas $288,501.03 $256,465.15 $328,508.68 72,044 28.1%
Telecommunications $193,172.03 $167,184.57 $184,202.41 17,018 10.2%
Solid Waste General $188,214.51 $257,767.53 $233,580.76 (24,187) -9.4%
Total 1,208,533 1,267,384 1,361,361 93,976 7.41%
1,208,533
1,267,384
1,361,361
1,100,000
1,150,000
1,200,000
1,250,000
1,300,000
1,350,000
1,400,000
2023 Actual 2024 Actual 2025 Actual
Utility Tax
Jan -Mar
2023 -2025
11
Interfund Utility Tax
2023
Actual
2024
Actual
2025
Actual
2025 vs 2024
$ Diff % Diff
1,178,350 1,221,373 1,313,835 92,462 7.6%
Interfund Utility Tax revenue increased by 7.6% year-over-year, reflecting a $92,462 year-over-year rise.
This tax represents the City's utility usage.
1,178,350
1,221,373
1,313,835
1,100,000
1,150,000
1,200,000
1,250,000
1,300,000
1,350,000
2023 Actual 2024 Actual 2025 Actual
Interfund Utility Tax
Jan -Mar
2023 -2025
12
Gambling Tax
2023 Actual
2024
Actual 2025 Actual
2025 vs 2024
$ Diff % Diff
1,306,159 1,060,091 1,317,791 257,700 24.3%
Gambling Tax increase is attributed to the collection of past due revenues.
1,306,159
1,060,091
1,317,791
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2023 Actual 2024 Actual 2025 Actual
Gambling Tax
Jan -Mar
2023 -2025
13
Admission Tax
2023
Actual
2024
Actual
2025
Actual
2025 vs 2024
$ Diff % Diff
213,217 176,122 273,902 97,781 55.5%
Admission Tax revenue saw a significant 56% increase compared to the prior year, exceeding budget by
$59,094, largely due to heightened economic activity.
213,217
176,122
273,902
0
50,000
100,000
150,000
200,000
250,000
300,000
2023 Actual 2024 Actual 2025 Actual
Admission Tax
Jan -Mar
2023 -2025
14
Business Licenses
2023
Actual
2024
Actual
2025
Actual
2025 vs
2024 $ Diff % Diff
768,245 674,595 593,444 (81,151) -12.0%
Business Licenses reported a decline in revenue and is linked to reduced employee counts reported by
businesses.
768,245
674,595
593,444
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2023 Actual 2024 Actual 2025 Actual
Business Licenses
Jan -Mar
2023 -2025
15
Building Permits
2023
Actual
2024
Actual
2025
Actual
2025 vs 2024
$ Diff % Diff
540,508 405,062 758,975 353,913 87.4%
Building Permits, a volatile revenue source, are challenging to forecast. At 25% into the year, the City has
received 39% of the anticipated budget, representing an 87.4% increase year-over-year.
540,508
405,062
758,975
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2023 Actual 2024 Actual 2025 Actual
Building Permits
Jan -Mar
2023 -2025
16
General Fund Overview – Expenditures by Department
General Fund expenditures ended the quarter 0.2% under budget. All General Fund departments are in
good shape at the end of Q1.
• No departments reported exceeding their budgets in Q1 2025. The increase over budget for
Finance and Police reflects annual insurance payments. If the insurance payment was annualized,
both departments would be reflected as under budget.
• Police: Additional costs are associated with Fleet Dispatch Services and SCORE Jail.
• Fire: A significant decline is due to the termination of the City’s contract with the RFA as of
December 31, 2024.
• Street Maintenance: Reduced expenditures in anticipation of an annual payment to King County for
Storm Water payment.
• Non-Departmental: Increased costs are attributed to temporary housing for asylum seekers.
Actual Year-Over-Year
Budget %
2025 2025 2023 2024 2025 vs Actual Expended $ Change % Change
DEPARTMENT Budget YTD (OVER)/UNDER
City Council 400,093 100,023 96,072 97,391 93,126 6,897 23.3%(4,264)-4.4%
Mayor's Office 9,748,218 2,437,054 1,774,748 1,942,520 2,186,489 250,565 22.4%243,970 12.6%
Finance Department 4,343,230 1,085,808 1,067,540 1,605,401 1,630,839 (545,031)37.5%25,438 1.6%
Rec Dept / Parks Maint 6,768,451 1,692,113 1,207,525 1,399,744 1,445,419 246,693 21.4%45,675 3.3%
Community Dev 5,732,921 1,433,230 1,022,598 1,141,190 1,261,467 171,764 22.0%120,277 10.5%
Municipal Court 2,329,525 582,381 401,318 488,704 533,182 49,199 22.9%44,478 9.1%
Police Department 28,411,330 7,102,833 5,485,672 6,277,623 7,453,580 (350,747)26.2%1,175,957 18.7%
Fire Department 1,398,192 349,548 4,003,969 4,364,426 214,788 134,760 15.4%(4,149,639)-95.1%
PW Dept / Street Maint 9,738,964 2,434,741 2,666,068 3,031,939 2,111,807 322,934 21.7%(920,131)-30.3%
Subtotal 68,870,925 17,217,731 17,725,510 20,348,937 16,930,697 287,034 24.6%(3,418,240)-16.8%
Non Departmental 6,060,319 1,515,080 1,508,158 1,207,487 1,760,870 245,790 29.1%553,383 45.8%
Total Expenditures 74,931,244 18,732,811 19,233,668 21,556,424 18,691,567 532,824 24.9%(2,864,857)-13.3%
% of Year 25.0%
BUDGET ACTUAL
2024/2025
17
General Fund Overview – Expenditures by Category
Salaries: Higher salary expenditures compared to the prior year are due to retroactive labor negotiation
payments made in August 2024.
Professional Services: Lower expenditures correspond to the termination of the Fire contract as of
December 31, 2024.
Rentals: Increased costs are related to fleet expenses.
Utilities do not reflect annual Surface Water payment to KC.
Year-to-Date as of March 31, 2025
BUDGET
%$ Change % Change
2025 2023 2024 2025 Expended
Annual 2024/2025 2024/2025
Salaries 30,318,363 5,768,477 6,472,190 7,308,638 24.1%836,449 12.9%
Extra Labor 1,176,493 85,173 117,528 142,978 12.2%25,450 21.7%
Overtime 1,648,520 395,104 427,596 433,416 26.3%5,820 1.4%
Holiday Pay 323,000 1,935 11,658 7,350 2.3%(4,308)(37.0%)
FICA 2,570,059 471,530 530,681 589,658 22.9%58,976 11.1%
Pension-LEOFF 690,278 128,764 148,751 165,326 24.0%16,575 11.1%
Pension-PERS/PSERS 1,778,634 381,460 384,165 414,604 23.3%30,439 7.9%
Industrial Insurance 583,512 98,829 108,726 155,311 26.6%46,584 42.8%
Medical & Dental 7,184,514 1,342,590 1,480,011 1,611,353 22.4%131,342 8.9%
Uniform/Clothing 44,721 470 1,090 795 1.8%(295)(27.1%)
Total Salaries & Benefits 46,318,094 8,674,331 9,682,397 10,829,429 23.4%1,147,032 11.8%
Supplies 697,785 67,836 100,592 137,268 19.7%36,676 36.5%
Repairs & Maint Supplies 506,030 57,508 197,591 77,317 15.3%(120,274)(60.9%)
Small Tools 340,445 21,421 34,337 57,662 16.9%23,324 67.9%
Technology Supplies 86,454 2,764 18,874 3,973 4.6%(14,900)(78.9%)
Fleet Supplies 9,500 1,004 3,113 632 6.7%(2,481)(79.7%)
Total Supplies 1,640,214 150,533 354,507 276,853 16.9%(77,655)(21.9%)
Professional Services 9,810,795 6,531,930 7,503,563 3,860,056 39.3%(3,643,508)(48.6%)
Communications 584,227 71,665 115,665 142,622 24.4%26,957 23.3%
Professional Development 884,823 175,169 207,374 196,302 22.2%(11,072)(5.3%)
Advertising 45,416 1,750 9,754 2,174 4.8%(7,581)(77.7%)
Rentals 3,468,463 261,690 28,614 805,118 23.2%776,503 2,713.7%
Technology Services 1,320,046 355,823 400,141 568,893 43.1%168,752 42.2%
Utilities 2,571,089 1,351,216 1,424,436 245,592 9.6%(1,178,844)(82.8%)
Repairs & Maint Services 2,597,922 300,744 455,140 573,070 22.1%117,930 25.9%
Miscellaneous 826,676 96,361 64,836 82,940 10.0%18,105 27.9%
Total Services 22,109,457 9,146,347 10,209,524 6,476,766 29.3%(3,732,758)(36.6%)
Machinery & Equipment 200,000 0 176,392 920 0.5%(175,472)(99.5%)
Total Capital Outlay 200,000 0 176,392 920 0.5%(175,472)(99.5%)
Transfers Out 4,663,479 1,262,457 1,133,603 1,107,599 23.8%(26,004)(2.3%)
Total Non Operating Expense 4,663,479 1,262,457 1,133,603 1,107,599 23.8%(26,004)(2.3%)
Total Expenditures 74,931,244 19,233,668 21,556,424 18,691,567 24.9%(2,864,857)(13.3%)
25.0%
ACTUAL COMPARISON OF RESULTS
18
Q1 expenditures concluded at 24.9% of the annual budget, aligning with expectations.
General Fund Category Table and Chart
Salaries & Benefits
Salaries & Benefits 10,829,429 58%
Supplies 276,853 1%
Services 6,476,766 35%
Capital Outlay 920 0%
Transfers Out 1,107,599 6%
Total Expenses 18,691,567 100.0%
58%
1%
35%
0%6%
Q1 Expenditures by Category
Salaries & Benefits Supplies Services Capital Outlay Transfers Out
19
Services
Professional Services 3,860,056 59.6%
Communications 142,622 2.2%
Professional Development 196,302 3.0%
Advertising 2,174 0.0%
Rentals 805,118 12.4%
Technology Services 568,893 8.8%
Utilities 245,592 3.8%
Repairs & Manit Services 573,070 8.8%
Miscellaneous 82,940 1.3%
Total Services 6,476,766 100.0%
20
Professional Services
Insurance-Liability 1,432,354 37.1%
Dispatch 495,449 12.8%
Insurance-Property 492,575 12.8%
Contracted Services 423,326 11.0%
Miscellaneous Prof Services 200,559 5.2%
Jail Services 187,389 4.9%
Consulting Services 154,224 4.0%
Public Defense 101,100 2.6%
Attorney Services 86,815 2.2%
Security/Safety Svcs 53,628 1.4%
Prosecution Services 43,350 1.1%
V SWAT 40,000 1.0%
Government Affairs 30,000 0.8%
Revenue Backed Services 21,813 0.6%
Translation & Interpretation 21,131 0.5%
Human Services Contracts 20,761 0.5%
Instructors 13,299 0.3%
Special Matters (legal)11,914 0.3%
Inspection Services & Permits 11,255 0.3%
Contracted Towing Services 10,379 0.3%
ProTem Judges 4,160 0.1%
Hearing Examiners 1,275 0.0%
Employee screening/testing 1,130 0.0%
Employee Assistance Prg EAP 1,104 0.0%
Recruitment 615 0.0%
Performers/Entertainment Svcs 450 0.0%
Grand Total 3,860,056 100%