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HomeMy WebLinkAboutWS 2025-08-18 COMPLETE AGENDA PACKET2 Tukwila City Council Agenda ❖ WORK SESSION ❖ ILa-y,,;s 90 Thomas McLeod, Mayor Councilmembers •:• Mohamed Abdi •:• Armen Papyan Marty Wine, City Administrator •:• Jovita McConnell •:• Dennis Martinez Tosh Sharp, CounciiPresident •:• Hannah Hedrick •:• Verna Seal ON -SITE PRESENCE: TUKWILA CITY HALL COUNCIL CHAMBERS 6200 SOUTHCENTER BOULEVARD REMOTE PARTICIPATION FOR THE PUBLIC: 1-253-292-9750, ACCESS CODE: 56095437# Click here to:.11 iti Mien s it t. Teams MeeI:IiriU.i. For Technical Support: 1-206-433-7155 Monday, August 18, 2025; 5:30 PM 1. CALL TO ORDER 2. PUBLIC COMMENTS Those wishing to provide public comments may verbally address Council both on -site at Tukwila City Hall or via phone or Microsoft Teams up to 5 minutes for items both on and not on the meeting agenda. To provide comment via phone or Microsoft Teams, please email citycouncil@tukwilawa.gov with your name and topic by 5:00 PM on the City for the meeting date. Please clearly indicate that your message is for public comment during the meeting, and you will receive further instructions. 3. PRESENTATIONS a. Update on the Tiny Home Village at Church by the Side of the Road (CBSR) Brandon Miles, Strategic Initiatives & Government Relations Director b. Budget Sustainability Project: Follow-up on Revenue Proviso Report Marty Wine, City Administrator & Aaron BeMilier, Finance Director Pg.1 Pg.33 4. ADJOURNMENT This agenda is available at www.tukwilawa.gov, and in alternate formats with advance notice for those with disabilities. and available at www.tukwilawa.gov Tukwila Council meetings are audio/video taped, If you are in need of translation or interpretation please contact us at 206-433-1800 services at a Council meeting, by 12:00 p.m. on the meeting date. City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Tukwila City Council FROM: Brandon Miles, Mayor's Office CC: Thomas McLeod DATE: August 12, 2025 SUBJECT: Tiny Home Village at Church by the Side of the Road ISSUE Update on the City's partnership with the Church by the Side of the Road (CBSR) to establish a new tiny home village on church property at Tukwila International Blvd. BACKGROUND CBSR has expressed interest in developing a tiny home village on its property. Similar villages are used across the Puget Sound region and nationwide to provide transitional housing for unhoused individuals. Tukwila currently hosts two such villages —one on Interurban Ave South and one at Riverton Park United Methodist Church —both operated by the Low Income Housing Institute (LIHI). A tiny home village typically consists of small, individual shelters plus shared facilities such as restrooms, kitchens, and offices. Benefits include stability, community connection, financial flexibility, and reduced environmental impact compared to other temporary housing. Villages generally include on -site services, such as case management, and are intended as short-term housing that leads to more permanent placements. CBSR TINY HOME VILLAGE • Size: 30 tiny homes plus supporting structures (office space, hygiene trailer, etc.). • Population Served: Primarily unhoused individuals or couples who are employed or actively seeking employment, including asylum seekers. • Services: Tailored to working -age residents; focus on pathways to employment and housing stability. COST AND FUNDING Total Design & Construction Cost: $1,096,232 The City is working with LIHI, which has extensive experience in setting up and operating tiny home villages. CBSR is also interested in partnering with LIHI for implementation. Two grants have been secured to fund capital costs —no City general funds are proposed for construction. INFORMATIONAL MEMO Page 2 Cost Item Pre -purchase of homes, hygiene trailer, etc. (Contract 25-202) Delivery of homes (Contract 25-202) Survey, engineering, planning (Contract 25-238) Credit (Contract 25-202) Total Pre -Payments & Credits Remaining Costs PERMITTING AND APPROVALS Amount Funding Source ($387,3531 State Commerce Grant ($5,462) King County Grant ($46,575) King County Grant ($66,000) N/A ($505,390) — $590,842 King County Grant Under TMC 18.50.270, the operator must execute a Memorandum of Agreement (MOA) with the City. As the primary funder of development, the City will also have influence over operations through the MOA and other agreements. OPERATIONAL FUNDING & ENTITY • Estimated annual operating cost: $600,000—$1 million. • No operator or operational funding source has been identified to date. • King County grant includes operational funds, but the village will likely not be completed in time to access them. • City staff are contacting potential funders. The City is not proposing to fund operations directly. • The operating entity will be selected through a competitive process jointly by the City and CBSR after construction. LONG-TERM PLANS CBSR may pursue permanent housing development on this site in the future. The tiny home village will allow CBSR to gain operational experience with housing on its property. DISCUSSION To use County funds, the village must be completed by year-end. Staff recommends proceeding with construction while funding and operator searches continue. • Tiny homes have already been purchased and are being stored on City property. • LIHI has Mayor -authorized contracts for design and preconstruction. 2 INFORMATIONAL MEMO Page 3 NEXT STEPS Date Task Q3 2025 Q4 2025 - Q 1 2026 Q1 2026 Present draft agreement to Council authorizing LIHI to construct the village. Select operator; execute MOA (Council approval required). Village opens. KEY CONSIDERATIONS 1. If operational funding is not secured -Village could remain vacant until funding is found. City is not offering to cover the operating costs. 2. Ownership after construction - Village ownership would transfer to CBSR or the selected operator, with City retaining rights for a set period to ensure continued use for community benefit. 3. City controls after transfer - MOA and transfer agreement will outline operational and use requirements. 4. Public outreach - LIHI will conduct outreach in fall 2025 during development. RECOMMENDATION Information only - no action requested at this time. ATTACHMENTS A. Conceptual site plan (note: shows 40 units; final project will have 30 units). B. Proposed Capital Budget (July 10, 2025) C. Photos of Tiny Homes D. Example MOU for Riverton Park United Methodist Church tiny home village. 3 CBSR Village - Concept Site Plan R3 14820 Military Rd S Tukwila, WA 98168 (45) Tiny Houses (3) Staff Offices (1) Security Office (1) Kitchen Tent (1) Hygiene Trailer (1) Laundry Room (1) Storage Container ����\\�-_ Attachment Ak\N: Attachment B Low Income Housing Institute - THV Budget R4 Site Name: Site Address: Jurisdiction: Date: Site SF: Tiny Houses: Church By the Side of the Road 14820 Military Rd S Tukwila 7/10/2025 23,000 30 Budget Item Projected Cost Notes 01-000 Pre -Construction $ i 35,000.00 01-100 Feasibility & Startup $ 8,000.00 Site survey 11R G 01-120 - o - o o - ggs 1-1 sse v`g s 01-200 Design $ 11,000.00 Site planner and civil engineer 01-300 Permitting $ 15,000.00 Public works permit and over-the-counter MEP permits 01-400 Community Outreach $ 1,000.00 02-000 Construction $ 918, 245.00 02-100 Mobilization, Site Services, & Rent $ 5,500.00 Garbage, sanitary services, and temporary fencing 02-200 Earthwork $ 150,000.00 Grading, gravel, utility trenching, and ADA asphalt 02-300 Demolition $ - 02-400 Utilities $ 190,000.00 Electrical, water, and side sewer 02-500 Tiny Houses and Offices $ 301,000.00 (30) tiny homes and (3) offices at $8,000/each plus delivery and finishing. 02-600 Common Buildings $ 145,000.00 Kitchen tent, 4-bay hygiene trailer, laundry room, and security office 02-700 Site Furnishing & Other $ 100,000.00 Decking, fencing, security system, and outdoor furnishings 02-800 Miscellaneous Construction Costs $ - 02-900 Construction Contingency [1] $ 26,745.00 3% 03-000 $ 142,986.75 LIHI Project Management 03-100 Project Management Fee [2] $ 142,986.75 15% TOTAL PROPOSED BUDGET: $ 1,096,231.75 Cost Per SF: $ 47.66 0) Low Income Housing Institute - THV Budget R4 Site Name: Site Address: Jurisdiction: Date: Site SF: Tiny Houses: Church By the Side of the Road 14820 Military Rd S Tukwila 7/10/2025 23,000 30 Cost Per Tiny House: $ 36,541.06 Alternates Description Cost Notes 1 Early purchase of (30) tiny houses, (3) staff offices, and (1) 4-bay hygiene trailer. $ (397 353.00) Amount equal to Invoice #2 provided to Tukwila on 6/25/25. Includes $10,000 allowance for delivery. [1] 02-900 Construction Contingency covers all required unforeseen construction labor and materials. This may be triggered by unforeseen site conditions, design changes, etc. [2] 03-100 Project Management Fee covers all direct LIHI management and labor hours, reimbursable costs, and overhead. 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Jackson St. Suite A, Seattle, WA, 98144, a Memorandum of Agreement ("MOA") for the operation of a Tiny House Village for and in consideration of LIHI's compliance with the conditions set forth herein. The City and LIHI hereby agree as follows: 1. Site. The site is located at 13834 Military Road S., Tukwila, WA 98168 on real property owned by the Riverton Park United Methodist Church ("Riverton Park UMC"). 2. Term. The initial term of this MOA will be from August 1, 2022 to December 31, 2022, and may be automatically renewed annually for successive calendar years. Either party may sooner terminate this MOA with 60 days written notice and/or termination of funding or in the event of default by LIHI as described in Section 14 of this MOA. 3. Use. Once the site is fully operational, LIHI may use the site only for the operation and management of a Tiny House Village to be known as the Riverton Park Village to serve homeless guests in a maximum of twenty-two (22) Tiny Houses (collectively, "Tiny Houses") with daily services, including, but not limited to, bathrooms, drinking water, food handling facilities, garbage services, social and health services and overnight shelter. Tiny House footprints shall be one hundred and twenty square feet or less. Each Tiny House shall be limited to no more than two Guests at one time, and LIHI shall limit the total number of Guests to 40 maximum. Tiny Houses shall not be plumbed with water or sewer. LIHI agrees to keep the site in a neat and clean condition. LIHI shall not use or permit the site to be used in violation of any municipal, county, state or federal law, ordinance, rule or regulation, or in any manner that may create a nuisance. Firearms and/or other weapons are prohibited. Registered sex offenders and people who are required to register as a sex offender shall be prohibited from the site. 4. Staffing. LIHI shall uphold the staffing plan identified in the Management Plan in Attachment B. Failure to provide 24/7 staffing, which may include Village Organizers, Village Operations Manager (one fulltime FTE) or Case Manager (one fulltime FTE, minimum, dedicated to this site) shall constitute default by LIHI under Section 14 of this MOA, with LIHI having three business days to cure prior to the City initiating termination under Section 2 of this MOA. 1 11 5. Good Neighbor Agreement. LIHI shall uphold policies and procedures to ensure compliance with TMC 18.50.270. In the event of a conflict between the TMC and this MOA, the terms of the MOA shall control. a. Quiet Hours. These shall be defined in the Code of Conduct; see Attachment A. b. Smoking areas. These shall be defined in the Management Plan; see Attachment B. c. Security & Screening procedures. These shall be defined in the Management Plan; see Attachment B. d. Litter, including confirmed impacts adjacent to the Tiny House Village. These shall be defined in the Management Plan; see Attachment B. e. Any required landscaping and fencing shall be established on the approved site plan; See Attachment D. This attachment is an interim plan subject to change that may be required from city department input or site survey data. 6. Code of Conduct a. Each Tiny House Village Guest shall be informed of the Code of Conduct and agree to abide by its terms as a condition of enrollment; see Attachment A. 7. Parking Plan. All Guests, visitors, and staff agree to comply with the parking policy; see Attachment C. 8. Fire & Police Coordination Plan. LIHI agrees that if semi-annual calls for Police service exceed .25 per tiny house the Village Operations Manager and LIHI representatives shall meet with Tukwila Police Department and City representatives to form a plan to reduce law enforcement calls below the threshold level. If semi-annual calls for Police service exceed 1 per tiny house, the site may be subject to TMC Chapter 8.27 Chronic Nuisance Properties. Where LIHI staff initiates the call to the Police and Fire department to collaborate toward a remedy it will not count towards the threshold level. 9. Reporting. LIHI agrees to track performance metrics, such as placements of Guests into permanent housing or referral to addiction treatment programs, as well as any deviations from the terms of this MOA. This data is to be provided by LIHI to the City on a quarterly basis. Starting from the time the first Guests arrive, LIHI and City staff shall hold coordination meetings every two weeks for the first three months of the site's operation to stay ahead of any issues that may arise. After that time, upon mutual agreement of the parties, those meetings may become less frequent, though no less often than quarterly. See Management Plan; Attachment B. 10. LIHI's Responsibilities. It shall be LIHI's sole responsibility to operate the Tiny House Village, including, among other requirements: a. A LIHI staff member must be physically present at the site at all times. b. LIHI shall ensure that any damage to any Tiny House caused by Guests through either negligence, intentional abuse, or accident beyond normal use is repaired in a timely manner. 2 12 c. LIHI staff, Guests and Visitors shall comply with all health and safety regulations promulgated by local, state, or federal authorities, specifically including but not limited to all COVID-related gathering limits and mask mandates. d. At no time shall LIHI staff, Guests, or Visitors, park overnight outside of the site boundaries. 11. No Disposal of Wastewater. Under no circumstances may wastewater be discharged directly to the ground or into a storm water conveyance. All wastewater shall be discharged to the greywater discharge point provided on the site or into an approved sewer line. 12. Indemnification. LIHI shall indemnify, hold harmless and defend the City, its officers, agents and employees, from and against any and all loss, claims, expense and liability whatsoever arising out of, or in connection with LIHI's exercise of rights hereunder, except for those losses and claims arising solely from the City's negligence. This indemnity includes, but is not limited to, all expenses incurred by or for the City, or its officers, agents or employees, including but not limited to judgments, settlements, costs, investigation, expenses and attorney fees, including any and all costs associated with the release of environmental contamination on or near the site. The parties hereto agree that the City shall not be responsible to LIHI for any property loss or damage done to the site, whether real, personal or mixed, occasioned by reason of any fire, storm, natural disaster, or other casualty whatsoever. It shall be LIHI's responsibility to provide its own protection against casualty losses of whatsoever kind or nature, regardless of whether or not such loss is occasioned by the acts or omissions of the City, LIHI, third party, or act of nature. 13. Insurance. LIHI agrees to maintain in force during the operation of the Tiny House Village and the entire term of this MOA, the following types and coverage limits of insurance, and as to which the City shall be named as an additional insured (with any endorsement required by the policy): Workers Compensation: Statutory Amount Broad Form Comprehensive $1,000,000 per occurrence General Liability: $2,000,000 aggregate Automobile Liability: $1,000,000 Said insurance shall be primary and noncontributory with any other insurance for which the City is a named insured. All insurance coverages required under this Agreement shall include a waiver of subrogation against the City for losses arising from work performed by LIHI. An insurance certificate and all endorsements showing the coverage required under this section shall be submitted to the City for approval at least annually. 14. Default. Should either party hereto believe that the other has failed to perform an obligation under this Agreement, it shall deliver written notice to that effect to the other, specifying the alleged default and giving the other party thirty (30) days to cure such default, unless a shorter time is specified in this MOA. Thereafter, should the default not be remedied to the satisfaction of the non -defaulting party, this Agreement may be terminated upon thirty 3 13 (30) days written notice (delivered by certified mail). Within thirty (30) days of termination of this MOA, the site shall be vacated of occupants. Within thirty (30) days after the site has been vacated, all Tiny House Village site improvements shall be removed from the site, including but not limited to Tiny Houses, tents, hygiene trailers, temporary office structures, and all other real and personal property on the site; in addition, utilities must be capped. 15. Project Managers. The following individuals are hereby designated as Project Managers and shall be contacted during regular business hours regarding any issues arising under this MOA: For LIHI: Ralph Neis, Director of Special Projects & Operations, Low Income Housing Institute, 1253 S. Jackson St. Suite A, Seattle, WA, 98144, rneis@lihi.org (206) 957-8043. 16. No Assignment. Nonprofit is prohibited from either assigning or subletting all or any portion of the site. Should the current property owner sell or convey the site, this MOA shall terminate within 30 days of such sale or conveyance. 17. Notices. All notices required or permitted hereunder shall be in writing and shall be delivered personally or sent by certified mail to the person named in Section 15 at the addresses set forth above or to such other address as LIHI shall notify the City of in writing. 18. No Waiver. No waiver of any provision of this MOA will be valid unless in writing and signed by the person against whom such waiver is sought to be enforced, nor will failure to enforce any right hereunder constitute a continuing waiver of the same or a waiver of any other right hereunder. 19. Complete Agreement. This MOA and attachments thereto set forth the complete agreement of the parties with respect to the site and the Tiny House Village, and it shall not be amended or modified except by a further written agreement signed by the parties. This MOA shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. SIGNATURES: 8/11/22 08/27/2022 Sharon Lee Date Allan Ekberg Date LIHI Executive Director Mayor, City of Tukwila APPROVED AS TO FORM 14 Office of the City Attorney 4 Attachments A. Code of Conduct B. Management Plan C. Village and Shelter Parking Policy D. Park Village Site Plan 5 15 Attachment A Code of Conduct Tiny House Village and Shelter Program The people of the Low Income Housing Institute, in order to keep a more harmonious community, ask that you observe the following Code of Conduct: VIOLENCE/THREATENING BEHAVIORS 1. Violence and nuisance that offend decency or annoy, injure, or endanger the safety, health, comfort, or repose of the community will not be tolerated. Please attempt to resolve any conflict in a peaceful manner. For resolution or if further assistance is needed, please see Village staff. 2. The use of profane, racist, or sexist language will not be tolerated. 3. Assault, verbal abuse, retaliation, intimidation, or threatening behavior will not be tolerated. 4. Weapons are not allowed in the Village. DRUGS AND ALCOHOL 1. No alcohol, drugs (including marijuana) are allowed in any public spaces within the Village, or the surrounding area. Possession of an open container of alcohol will be sufficient proof of public drinking. GENERAL 1. All participants must follow all village, City, and State regulations and policies which include but are not limited to the Pet Policy, Parking Policy, Public Health Codes, Fire Codes, and other rules and regulations posted in the village. 2. Participants are limited to a six-month stay, with an option of extension up to one year if further housing barriers exist and there is a continued commitment to engagement with case management. 3. Visiting hours are posted in the security office and must be done in the community area only. Per our current COVID-19 Policy, we are not allowing guests and/or visitors in the village at this time. 4. Every member of the community is required to contribute to the village with hours of service which will be assigned by village staff each week and will rotate between each tiny house section. 5. You must respect the peace, comfort, and enjoyment of other villagers. Loud voices, music, musical instruments, radios, TVs, players, etc. shall be played only during reasonable hours 6 16 between 8:00 am and 10:00 pm. If staff and/or other villagers are disturbed by the volume, it is too loud. 6. Participants are responsible for the actions of all their household members, guests and pets. 7. Attendance in weekly community meetings are required. Please communicate with staff if you are unable to attend. 8. Theft is strictly prohibited. Program Participants assumes any and all responsibility for protecting their belongings from theft which includes keeping their units locked and belongings secured inside the units. LIHI shall not be responsible for lost or stolen property from the premises or the common areas. 9. Your unit at the Village must be your primary place to stay while enrolled in the Tiny House Village program. Using your unit for storage while staying elsewhere will result in a permanent exit. 10. You must sign in at the security office daily. Three days without signing in will result in your receipt of an Abandonment Notice and your unit will be cleared of your belongings. SAFETY 1. Smoke alarms and carbon monoxide alarms have been installed in each unit. Do not tamper with nor disable. 2. No open flames are permitted in the tiny house units. 3. Smoking must be done in designated smoking areas. No smoking of any kind inside the tiny house units. 4. No microwaves, propane tanks, unauthorized heaters or big appliances are allowed in any tiny house unit. 5. For the first month, you will have weekly inspections — and monthly inspections thereafter. A 48 hour notice will be given to each participants prior to the inspection. If Staff believe a potential health risk exist, LIHI reserves the right to enter your unit to assist or help you to safety. 6. For the safety of the village, an immediate inspection may be required if a maintenance or safety risk has been identified. 7. You must follow all village, City, and State COVID-19 regulations and policies. Updated COVID-19 policies are posted in the security office. 8. You cannot make any changes to any fixture, wiring, locks, or any other part of the tiny house unit. CLEANLINESS 1. Do not store personal belongings or furnishings on decks, porches, or other public areas. No storage of any kind is allowed outside the Village on adjacent properties. All personal belongings must be stored inside your designated tiny house unit. 2. Keep your tiny house unit clean at all times 3. Do not place anything behind your front door which will prevent it from opening fully. Staff will be checking this during monthly inspections. 4. No food is allowed in any of the units unless it is packaged in an air sealed container and disposed of when finished. 7 17 5. Keep your food labeled and stored in designated space within the refrigerator. 6. One bicycle per person and it must be stored in a designated bike area. 7. All recycling, trash, and compostable/food must be separated and properly disposed of. 8. Use the designated restrooms. Please see your Case Manager if further resources are needed. 9. Tiny House units must be maintained in good order, and any repair problems should be reported promptly. Pest and bed bug infestation must be reported immediately. CASE MANAGEMENT 1. Case management participation is required. Please be sure to meet with your case manager at least two times per month at a minimum. 2. The Case Manager will do Homeless Management Information System (HMIS) surveying and data entry — in an informed -consent fashion. Within seven days of intake into the Village, new participants are required to check in with the Case Manager and complete the HMIS Informed Consent and Demographics forms. HMIS data collection is a requirement our funders. 3. Turning down a viable housing opportunity is a violation of the Service agreement unless it is determined that the housing opportunity could pose a health, safety or traumatic occurrence to your household. 4. A Housing Service Plan will be completed as part of your case management requirement. OTHER 1. All animals must be on a leash when being walked and owners must pick up their animal's waste. Participants must show proof of up-to-date vaccinations, spay/neutering documentation within 30 days of intake/move in date. Please refer to the Pet Policy for more information. 2. There will be no feeding of stray animals. Feeding strays will be considered keeping a pet without permission. 3. No loitering or disturbing neighbors- no trespassing on private property. 4. Participants must use the main entrance for entry and exit. IF THESE RULES ARE NOT RESPECTED AND ENFORCED, DISCIPLINARY ACTION WILL BE TAKEN, AND MAY LEAD TO BEING EXITED FROM THE VILLAGE. 18 8 Attachment B Management Plan Riverton Park Village Background The Low Income Housing Institute (LIHI) develops and manages housing for people who are low-income and/or homeless, provides technical assistance to communities and other non -profits, and advocates for housing for all. LIHI provides thousands affordable apartments in the Puget Sound region. The majority of LIHI housing serves formerly homeless people below 30% of the area median income. LIHI sponsors over a dozen tiny house villages and multiple enhanced shelters open 24/7 for homeless people as a crisis response to homelessness. We provide supportive services to move people into long-term housing and access to healthcare, employment, and education. LIHI is partnering with King County Department of Human Services and the City of Tukwila to operate a Tiny House Village at 13834 Military Road S., Tukwila, WA 98168. Riverton Park Village is located on property owned by the Riverton Park United Methodist Church ("Riverton Park UMC")This site will shelter adults 18 and over in tiny house units that are insulated, heated, and have a footprint of 8' x 12'. Facilities such as community kitchen, case management office, and hygiene facility are provided on -site. LIHI will provide case management, housing navigation, and other supportive services. A certain percentage of individuals may be frail, chronically homeless, experience mental illness, be chemically dependent, or living with developmental and physical disabilities. Staff will be present 24/7 to enforce a code of conduct and provide security, a sense of community, and ensure the well-being of the site and its relationship with the surrounding community. Village Management Day-to-day oversight of operations of the site is done by a team of LIHI staff. This includes a Village Operations Manager (VOM) and Village Organizers. Staff will be on duty at all times and will assure the village and its members are safe, accountable, and responsive. Village Organizers: 24/7 staff presence will be maintained on -site. Village Organizers will be present during evenings, overnight, and on weekends when the Village Operations Manager and Case Managers are not working. This includes up to 5 staff working full and part-time. They will be responsible for ensuring the peace, controlling the entrance to keep the village safe, preventing unwanted visitors, keeping the village organized, responding to emergencies, serving as a point for community contact 9 19 during their shifts, and other duties. They will do perimeter checks and patrol the area at least every hour during their shifts. Village Operations Manager: One FTE Village Operations Manager will be assigned to manage operations and supervise staff at the site. The Village Operations Manager provides management oversight and program supervision and ensures that procedures and policies are followed. The position works with program participants and staff to maintain the site in a clean and organized state. The Village Operations Manager will also conduct inventory, order supplies, inspect the site, establish relationships with the community, and hire, train, and supervise on -site LIHI staff. The Village Operations Manager will be supervised by LIHI Upper Management. The Village Operations Manager will work collaboratively with LIHI's supportive services team to provide case management, housing search, employment, behavioral health, and other services. Case Managers: The Case Managers are responsible for establishing relationships with the community resources, providing informal counseling, providing information and referral assistance to clients, and coordinating community -building activities. The Case Managers will be working and problem -solving with the clients of the Village daily. One FTE Case Manager will be dedicated to the Tiny House Village site. The focus will be moving the clients into permanent housing and providing supportive services. See Supportive Services Plan. Basic Rules/Code of Conduct Riverton Park Village has an initial and basic set of rules which are part of an Intake Form. One copy of this form is given to all new program participants to read and retain, while a second copy is kept by management as a record of the intake and agreements made at that time. For guests with limited English proficiency and/or literacy limitations, LIHI staff will arrange for appropriate translation and/or interpretation services to ensure the guests fully understands the code of conduct within three days of the initial intake. This intake packet, the basic rules it establishes, and many of the policies and procedures already created are available upon request from the LIHI management team. Program Participant Rights No program participant will be discriminated against for belonging to a class of citizen protected by the City, State, or Federal government. All program participants have the right to speak freely and pursue established rights to appeal without fear of retaliation. Screening The Manager conducts a National Sex Offender Registry and WA Sex Offender search to determine if the client can be admitted. After it is determined that the client is not a sex offender, the manager assesses the client's mental health status, physical health status, and drug and alcohol dependency based on the client's self -assessment. If the manager feels that the client can be successful in the village, the two 10 20 complete an intake and the client is walked to their house, given the key, presented with a hygiene kit and welcomed home. There is the expectation that each client will complete a daily chore, meet twice a month with a Housing Case Manager with the intention of pursuing permanent housing, sign in daily at the front desk and attend community meetings when it is safe to do so Intake Process The Village Operations Manager will complete the intake process and assist in filling out intake forms with new program participants who are referred to the village. Staff will provide orientation to new participants. Visitor Policy Prearranged tours, drop-offs of donations, and food deliveries are very welcome. Program participants may only have guests or personal visitors in the common areas between the hours of 9:00 am and 7:00 pm. All visitors will be required to sign in and out of the village. Per our current COVID-19 Policy, we are not allowing guests and/or visitors at the village at this time. Tours Tours of the village should be arranged with the LIHI Management Team. LIHI Management Team will contact the Village Operations Manager for the site to ensure that planned tours are occurring at an acceptable time and that LIHI staff will be available to assist. Media Media is not allowed in the Village. Any media inquiries regarding the Village should be directed to the LIHI Management Team. Village Security At least one LIHI staff will be on -site at any one time, with shifts operating 24 hours a day. The community and villagers are given phone and email contact info to reach on -site staff. The VOM and Village Organizers are key to keeping the village safe. While the goal of this program is to not exit participants to homelessness, if anyone on the premises is violating rules that the Village Operations Manager or Village Organizer can reasonably conclude brings immediate danger to other program participants, they must be required to leave the village. Efforts will be made to find a suitable place for the person to move to if they are exited from the village. Progressive discipline will be employed as appropriate for minor infractions. Serious violations of the Code of Conduct may lead to exits. Individuals who are exited from the village must leave the village as directed. 11 21 Violations of a serious nature may include calling the police to take immediate action. This includes those who are committing or threatening to commit acts of violence that will require a call to the police. Village Organizers and/or the Village Operations Manager will escort offenders and those at risk of violent behavior out of the village if it can be safely done. Staff will report to 911 exited program participants who are loitering or trespassing. The Case Managers will be notified of the steps management will take as part of the progressive discipline process. If ultimately an exit is in order, the exit should not start in the evenings or weekends unless needed for the immediate safety of other Village residents or the surrounding community —as it will be difficult for the individual(s) to secure shelter unless if there is an immediate need to issue an exit. LIHI staff have access to cell phones and are authorized to call 911 for police or fire assistance. No one is prevented from calling 911 when needed. LIHI staff will notify the LIHI Management Team of any safety incidents involving: • Any situation requiring emergency services (Police or Fire Transport) • Assault on staff • Staff injury on the job • Program Participant injury Within one business day of the incident occurrence. Program Participants may make limited local calls for work, services, or family using the village phone located at the security office. Incoming calls for participants will usually require LIHI staff to take names and numbers to pass on later to the participant. Village Organizers will stay on their post until their replacement has arrived or a member of the LIHI Management Team has been informed. In the event of an emergent issue where a staff member is unable to wait for a replacement, LIHI Management Team will have someone on site within two hours in order to ensure 24/7 staffing. Security Design The Security Office at the entrance will provide visibility inside the village and out. Security cameras will be installed. An emergency exit is provided at the side of the village. Community Self -Help Program participants will be asked to contribute a certain number of hours per week for the benefit of the village. This includes tasks such as kitchen duty, recycling, sorting donations, litter pick-up, yard 12 22 work, and trips to the food bank, gardening, etc. Reasonable accommodation will be made for those who are too frail or sick. Program participants are asked to attend weekly meetings in the community space to discuss how the village is operating and to develop a sense of community. Problems, solutions, announcements, and community activities will be discussed. Health and Public Health LIHI will be using the Sanctioned Homeless Encampments Initial Planning and Management Checklist as a guide during the initial setup and management of the village. We will schedule and participate in walkthroughs by Public Health Department workers upon request. Our management team has extensive knowledge and experience in ensuring the health and safety of the clients which will be applied to the site. All kitchen items and foods will be stored in rodent -proof containers. LIHI staff will conduct daily site inspections to ensure that everything is clean and well -organized. Program participants will be responsible for keeping the kitchen, the dumpster area, toilets, and community areas clean at all times. In addition: • Bait stations will be maintained on a regular schedule through a contact with a pest control company. • Drinking water will be available in the kitchen. • LIHI staff will ensure that all food and perishable goods are stored properly. • LIHI staff will conduct weekly site inspections and monthly unit inspections to ensure that best practices and expectations are met. Village Organizers at the site will cover not only the security obligations described above, but additional assistance with village clean-up, unit turns, bag and tags, emptying trash cans, and other duties. The Village Organizers will also ensure that the perimeter of the site is clear of any litter at all times. The Village Organizers will ensure that any litter or refuse piles adjacent to or in the area of the Village with a proven nexus to the Village will be addressed and removed within two days of being notified by the City. Fire Department —City and Fire Department employees have been, and will continue to be, welcome to enter the Village to observe fire safety issues and offer advice and suggestions on how to prevent fire hazards. The village will have fire extinguishers placed throughout the site and will also have a designated smoking area. The tiny house units will have smoke detectors and carbon monoxide detectors which will be inspected by management monthly. A first aid kit will be stored on site. Coordination and Communication: LIHI Management Team determines policies, rules, and operating principles, and takes responsibility for running the site. LIHI and village staff will hold a meeting at least once every two weeks to discuss problems, act on solutions, and share information. For issues that require immediate actions, LIHI Management will approve solutions and meet on -site (if needed) to take necessary actions within 24 hours. 13 23 All participants are expected to report all issues and problems on -site to the Village Organizers/Village Operations Manager. The Village Organizers will report all issues and concerns to the Village Operations Manager who will make sure that all issues are resolved in a timely manner. Services, Case Management and Data Collection LIHI maintains streamlined access to housing resources that are available to those who qualify. LIHI will provide Case Managers who have experience working with the homeless population including the chronically homeless and people living with drug/alcohol problems. The Case Managers will provide on - site information and referral services, employment counseling, and will assist in applying for housing and services. LIHI will provide a count of program participants in the site to funders as requested. This list will also account for any exits from the site with an explanation of the exit (ie, into housing, return to homelessness, etc.) HMIS Protocols The LIHI Case Managers will do HMIS surveying and data entry —in an informed -consent fashion —with all program participants. Within seven days of intake into the village, new participants will check in with the Case Managers and complete the HMIS Informed Consent and Demographics forms. All data entry will be done by LIHI. Amenities Faith -based and community groups will be invited to prepare and serve meals on a weekly schedule. Other amenities will include the kitchen and food preparation area, toilets, showers, laundry, outside smoking area, and community space. The kitchen area will be furnished with equipment and appliances which includes refrigerators, freezer, sink, coffee maker, and microwave. Outdoor grills will be provided. A supply of cutlery, plates, bowls, food, and cups will be available. They will be disposable products. Simple food staples such as peanut butter, salt, and bread will be available. Tinv Houses (sleeping structures) Tiny Houses purchased, built, or donated to LIHI are the property of LIHI. Program participants are to keep the tiny houses habitable, clean, and safe. Each tiny house will have a heater/fan, smoke/CO2 detector, outlet, and light. No smoking of any kind, candles, cooking or fires, hairdryers, food, and appliances (other than the heater that we provide) are allowed in the tiny house units. No hoarding is allowed. No storage of personal belongings is allowed outside the tiny house units. 24 14 Community Relations & Grievances LIHI provides clear contact information for neighbors. Communication with LIHI starts with contacting the Village Organizers or Village Operations Manager. Complaints are received by Village Operations Manager who must record all pertinent information received. Upon request, the complainant will be informed of any resolution of the complaint. The Village Operations Manager will retain a log of any complaints, including any proposed, pending or resolution to each complaint and share them with the City at the regular coordination meetings. If an immediate solution cannot be provided simply by the Village Organizers or the Village Operations Manager, it is taken to the LIHI Upper Management to resolve. Internal Grievance Process —The Low Income Housing Institute has an established internal grievance process. The grievance policy will be posted in the common area and additional copies will be available upon request. This will ensure that every member of our community is aware of the grievance process. LIHI staff will also provide information to all program participants on the grievance process. LIHI Management Team will discuss all issues, complaints, and grievances in a timely manner. All program participants are expected to report issues and problems to the Village Organizers or the Village Operations Manager. Village Organizers will report all issues and concerns to the Village Operations Manager who will make sure that all issues are resolved in a timely manner. Program participants should discuss their concerns with the Village Organizers or with the Village Operations Manager. We encourage everyone to put their concerns in writing so LIHI Management can address them effectively. Staff will investigate the complaint to determine the factual elements and make a determination as to the best approach to deal with the issue. Staff will review the grievance and clarify any missing or ambiguous issues with the program participants. Similar to external complaints discussed above, the Village Operations Manager will retain a log of any grievances, including proposed, pending or resolution to each grievance and share them with the city at the regular coordination meeting. If the complainant is not satisfied with the decision or outcome of the resolution by staff, or if the grievance or issue involves site staff, they may contact LIHI Management Staff. LIHI Management Staff actions or decisions can be appealed by writing to the Director of Special Projects & Operations; Ralph Neis, Low Income Housing Institute, 1253 S Jackson St Suite A, Seattle, WA 98144. Community Advisory Committee The Community Advisory Committee (CAC) will be formed to bring LIHI staff together with neighbors and local businesses representatives who are invested in the success of the program. The City will designate a primary and alternative staff member to serve on the CAC. Each month, The LIHI 15 25 Management Team will present statistics relating to current occupancy and talk about success stories and various projects they are working on to enhance the experience of the community. If necessary, CAC members and other community members will be given an opportunity to present concerns; LIHI will acknowledge problems that may have arisen and discuss solutions. If the CAC and LIHI are unable to agree on remediation efforts for such concerns, LIHI will engage a dispute resolution resource to facilitate resolution. Committee members also discuss ways in which they can support the staff and participants of the village. Maintenance and Repairs Program participants must inform the Village Organizers or the Village Operations Manager of any issues regarding repair and maintenance. The On -site staff will fix or resolve basic work orders and other maintenance and repairs are completed by LIHI Staff members dispatched from the LIHI Main Office. The Village Operations Manager submits a Maintenance Request and it then gets routed to an appropriate technician. Requests are prioritized and completed in a timely manner based on the severity of the problem. Donations Donations of household items (bedding, towels, coats, etc.) are accepted anytime at the on -site security office of the village. To comply with the Public Health, some kitchen items such as dishware, silverware, and other reusable ceramic tableware are not accepted in the village. All monetary donations must go through the LIHI Main Office located at 1253 S Jackson St Suite A, Seattle, WA 98144 or online at www.lihi.org. 16 26 Attachment C THV and Shelter Parking Policy As a Program participant of the LIHI Tiny House Village and Shelter Program, I understand that the Permit Parking Policy will be enforced effective May 15, 2022. This means that only Program participants' registered vehicles are allowed to park in the property. This policy includes Program participants as well as guests, visitors, other family members, and outside service providers. Vehicle Information: Unit Number: Phone Number: License Plate #: Make/Model/Year: Color: Is the vehicle registration current? Y or N Is the vehicle registered in your name? Y or N If not, who is the legal owner of the vehicle? Legal Owner Phone: Legal Owner Email: Parking Rules and Regulations: 1. Program participants are allowed one (1) vehicle per person. 2. All vehicles must be registered with the Village/Shelter Operations Manager (VOM). 3. All vehicles must be inside the parking lot perimeter and MUST have a valid parking sticker. 4. The sticker is non -transferable to a different vehicle. It can only be used for the vehicle for which it was assigned. A new sticker will be issued for a vehicle change, after it is registered with the VOM. 5. Program participants may not receive or save parking spots. 6. You may NOT park on any curb, fire lane, sidewalk, or spot assigned with reserved parking. You must park in the designated parking lot only. 7. You may not double park perpendicularly or diagonally behind any other vehicle. 8. There is no overnight sleeping in vehicles, by anyone, regardless of their registration with the VOM. 9. All vehicles must be in proper working order, or they will be removed from the property. 10. All vehicles must be licensed and registered per State of Washington rules and regulations. 17 27 11. No car repairs are to be made on the premises including minor maintenance. 12. Program participants shall not allow an inoperable vehicle to remain on the property for more than 48 hours. 13. Recreational vehicles and campers are not permitted to park in the parking area. 14. If your vehicle is towed, due to non-compliance with this Permit Parking Policy, you are 100% responsible for the cost to recover the vehicle. Bicycle Policy: 1) Program participants are allowed to have only one bicycle per person. 2) All bicycles must be stored in the community bike rack. Program Participant Name: Operations Manager Signature Program Participant Signature: Date Date 28 18 Attachment D This attachment is an interim site plan subject to change that may be required from city department input or site survey data. 19 29 111,11.100,1411,1 ovoi„,11,0 ,„11Ni,„„'„„,„„„„1„1„1„1„1„„r 1d1000111j\ 11111111111111111111111111,11,1111111111111„ 1,1100000„,,,,, „„,,,,,,i))„„„filorolig,1100Alr100„1„ 1,,p001 ni 000111,0„..„.„1,11111„11, .1111111 111111111„,,,1„11,1111111111111111101111111111111111111 11 ,11111 1 111 d 11,,,,11111 1 I 111 l'I'1111111111111'11'111'1'11111111111'11111111110111111111,1,1,1,1,1:0?,111, 1 1 1011111010111,11,100,11,11,11010'001,001,00d10111 11 1 111/11111111111111111111i1111 111111111111111,1,1,0111111111111111111111,11111111 11111 001,11111111010101100 1„1 11110'11'd '11,1111111;11111111111111 , 11 11111'111 1 11111 .,11111.21...t!."111,d1111;„111111iiddill'illuiligiii1011„,..111 1111,1,11111111111111 41' 1111S. i'110 10Z , II 0 i li qi 1 11 ' 'Ilfi i 11„ l' 1 11,11 11 ' 11 p 1 ,„,•11,,' ,„1,0111114rr ,ou 1 11411117WSP)1 14,,,i11, 1111111 ,11,11 11 on, 1,1s 1 4 111,11111111111111111111111111111111 111,111111011 1111111111' '11111k , 1111,1,11,11'1111111111,111i,opil‘111011111,11 111 1 , "111'1110 k iiii,,,00'11,1iid#1,1111,0 '11 111111 1,1 ' 1,111, ,1111,1111 11,111, ,1 II 1,11111111' 11, po ,111, 11111111' I 1 1 1111111111 1111 ,1,1111i1,1„0"', 111 1110,1,,,0 11,„$e„l!P1, I 11,111111,11110'111q,,,,111 111111iL'il' ii1111,11A 1r11 11111 1111,1, ;;;;',I, 111/1„1„11 „111 ,111 '1111111 ,1,11114 1111 ,1111111,,,,, 1 111111111111111111111111111111111y 1110011111,1110, 1111111111111111111111 1111 111111111" 110 „1111111 11111001001111111111111110001111111011111111100000111111 #11 '1V111111111111111111111111111111111;"',"',111111111111111111P1111'1 1111 1111111111 r# 11' 1111 111M11 ,11 11111111111111111111111111111111111111111 11,00,1111 111111I11111111111!Iihihihihihihill1111111111111 0 1, 11,01110 111111i011 01110111111 1'1111111111111 1V1 '4111111111111111Hr 1,11 '111100000000111111111111111111111„11111111111111111111u 111111;7111111111„,, 11111111 1 11111111 11,1111 111 ) q6411.rf, 0111111111114 1, 1111111111111111111111111111111 m • —I ALIGN I , PROPOSED NEW PAVING 111,1111111111111111111,1g;,,,,„„ Icalno;;;;41;;;;;unniumvmouniawah,inalo.unto 1;,...1,1.g..;(11,1)1;„1,11.1.11.11;;;;;;;;;.i. ',11,1,11,111111 111..i!„1„1„„„,„.„1„111,111,11,1,1:11111111, :',1,..1.11."'""111111111,111111 '1'111 1 ,i(111101111111111111111111111 "°,1I11111111111 ..""1•1'111111111111000llo1100011111111111111111111111 jltv11111111111111111111111111.1.1.111111.111 1,1)),1,1,1,1,1,1,11111,1,1,11,1,110000011 0 x m z 31 .1P1'111111111(lipPli..P1Pilipp,,,P,3p:pi.„ppppplipplippploppappoppippoplAppag6plip""°11'1111101111111PIP1101 1 1, NSITV 41 z Z. 1-1-1 0 LL ›— <0 > 1-1 cr 0 v v z 3 ° v 2/1. 9 - .6 1 I" ii111.11,1101111111,111.1111111111,11„on ollomporpovvvvvvvv,(1,1,1iiiiiii000 , 11,0, II 11111111111,1111111111111ppopip,„, 11111 !0,1110, ,V 10011111 "' 111111111111"1"111,1'1.1.,1.10,11,"1." 1110,0i1,0100.01I1011.1011,1,00,11v1100001!V.111111111111110011,111i1111111„'.1 1111,1110;!,1,111vV,',,01111,00.,,,,0,114,1,),101,0)c11.10,1c,„[,!, 1.111!1!1111°V111111,111 11111 1111 d110 ill, lir 1111.11111y,,,dvill1111111011 ,11111,1111111111111111111111111111,10,0000000;ovolop000looroomoloolloill., 11,0010 01,0010000rvolou 11111111111111, 11111111 1111111111111 10001 0 01101111,01 1111111 1111111101111111111 1111 III II 1111111111111111111111 1 V 10111011111010 1111111111111..111,, 1 ,1111111 1 1 1111111 1111,11„11111„1111 1P1 11 P r 1111111111111 1,1,111 01111111111111 111111111 - .9 1000 0,00010001d0000100 v 11110.1,P1.vr10.1d101!„. 11411,LpIPIPPIP1PEP ILBA 1!0 0111111,01011101.0111010 polopPplp ol!opop pPIPIroo" '11'11111,111,111111111i i1,11,11J11,11111111111"1' 11111111111111'11111'1111 1,111 1111'111 0111100000,1 1 111111111110000 0 000 1PUflr, (1000 1111111111111111111111111111111111111111 10011110111111 I CO 111111 IP010100000100111111111011010101010101010101011111111000 ,,,,,,,, 11111111111111 111111111111011111111111101111111111 ,11,1,11,1,1,11,1, "11,11,11,11,1" ,1 1 11111111,1„1,1 pp1111,11 !, I ill III 10 . 11100 0 1111111111111111111111111111111111011111111111111 vooloolowoolo..1.1 P 11'1'1111 1111111111 00000 000000 111111 Q 1— loolu i010,000011100000000000000000000d00 0000000000000000000000010010010000011 01111111111111111111111111111111 101010100010101110101010101011111 o 000000000000000000000000000000000000000000000000 I i or 11111111111111111111111111111111111111 00001000010011000000000.0....1111111 1111111111111111, 000010!000001101101110010000000,000000000000.0 0!00,000.0,00,00.00r 0.01,10,1000,01.0,,' ,„1,111,111111 1.0 " 1 '011,101111111,1111111111111111110101011111001111,0111111111111100000001101011110110001111110100000000000 1111111111111111111,1i „1,.1„v,v,v,v,I111110001VVVVVV0111101111001000101V00001V11111V1010101111111111111111111111111111111111111 111111IIII11111111 PIPPP, 1P" 111111111111111111111111111 11111pp 11111111 ""1111111111111111111111111111111111"11101 11111 111111111111111111111111111 110.0000,1111101111111111111 '11111111111111111111111111111111 11111111111111111111111111111111111111111111111111111111111111 1,1111111110101011111111111111111111110010000000000001111110001011010000101000000001101.0I00000010000 1011101111111111 1:11:111111111110111111101010110110000000 IIIII1U000000000000,0i„„!.,0000,.,.„,„„„,„,,„0„ 00000, 111111111111111111111111111111111111111111111111111111?11111illovoov000000000l000rl000vvoy0000000000lol 1111111 TO: City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM Tukwila City Council FROM: Marty Wine, City Administrator Aaron BeMiller, Finance Director CC: Thomas McLeod, Mayor DATE: August 18, 2025 SUBJECT: Budget Sustainability Project and Follow-up from Revenue Proviso Report ISSUE During the development of the City's 2025 — 2026 budget, the Mayor's stated priority for his team in 2025 was to complete a formal review of current operating expenses and revenue generation to provide options for creating a sustainable budget in preparation of the 2027 — 2028 budget process. The purpose of this briefing is to inform the City Council about efforts underway to develop and propose a more sustainable 2027-28 Biennial Budget and 6-Year Financial Plan. BACKGROUND The City is legally required to adopt a balanced budget where resources are at least equal to budgeted expenses. However, adopting a balanced budget does not necessarily mean the budget is sustainable. A sustainable budget exists when normally occurring operational revenues are equal to normally occurring and ongoing expenses and where extraordinary resources are used for one-time expenditures. The City maintains a six -year financial forecast for the General Fund. Forecasting is a long- term planning tool that encourages strategic thinking and provides decision -makers with tools to allow for making more informed business decisions by focusing on long-term objectives and the future impact of current decisions. The most current forecast was developed in the fall of 2024 and was discussed with Council as part of the 25/26 budget process. Like most government entities, the City is experiencing a budget sustainability challenge where recurring operational expenses increase each year at a rate that exceeds the growth of recurring resources. Forecasted recurring revenues for 2027 — 2030 increase by an average of 2.7% annually while recurring expenses for the same period increase by 3.6%. This structural imbalance demonstrates that without a new revenue source, an increase in current revenues, a decrease in expenses, or a combination of those things, the City will need to continue to balance its budget over time using one-time resources. This budget model is not sustainable over more than just a few years. DISCUSSION The Budget Sustainability effort includes five (5) workgroups. Each workgroup is made up of a cross -departmental and cross -functional team of City employees tasked with developing revenue and expense options toward budget sustainability. The five workgroups are charged with reviewing all city services and programs and creating options aimed at efficiencies, cost reductions, or revenue generation. The five workgroups are: • Immediate Changes, Efficiency Improvements, Out of the Box • Revenue Options (Revenue Proviso) • Salary and Benefits Policies 33 INFORMATIONAL MEMO Page 2 • Operating Expenditures • Capital & Utilities Maintenance & Improvement Expenditures Administration began early this year to take up the challenge of working on solutions to achieve a sustainable budget beginning with the 2027/2028 biennium. The Revenue Proviso required the revenue options team to provide their report mid -year and that report was provided to Council on July 21st. The expenditure options are currently under critical review by the Budget Sustainability Leads Team, comprised of the Mayor, City Administrator, Deputy City Administrator, Police Chief, Community Development Director, Deputy Parks & Recreation Director, Public Works Director, Strategic Initiatives Director, Chief People Officer, and Finance Director. Other City team members, many of whom participated in the workgroups, provide important information as subject matter experts and are instrumental in helping clarify and analyze the options. Difficult choices will need to be made about ongoing City services and operations. The Mayor's and Council's priorities and the City's strategic plan will be used to guide those conversations. This briefing will update the City Council on the status of the current work toward the expense side of the budget sustainability effort as well as provide another opportunity for Council to provide feedback or ask questions on the revenue options provided last month. FINANCIAL IMPACT Discussion item only. There is no financial impact associated with this agenda item. However, decisions will be made on the information developed through the budget sustainability effort and recommended to the City Council for inclusion in the 2027-28 Proposed Budget. RECOMMENDATION Information Only. There is no recommendation currently for future action. The Council is being asked to identify questions, concerns, and issues to be considered as part of the budget sustainability work. ATTACHMENTS Powerpoint presentation 34 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/2025 AGENDAS/2025 Agenda Packets/2025 COUNCIL - Agenda Packets/08-18-25 Work Session & Regular/Work Session/Info Memo 08182025_v2.docx BUDGET SUSTAINABILITY PROJECT City Council Work Session August 18, 2025 The City of opportunity, the community of choice. The Challenge • Like most cities, normally occurring expense growth outpaces normally occurring revenue growth; main tax revenues (sales & property) do not keep up with inflation. • City must follow financial policies and adopt a balanced budget • Past: revenues increase avg 2.7%. Expenses increase by 3.6%. • 2025-26 budget used one-time revenues to cover operational expenses. The City's General Fund would have been out of balance with a forecasted gap, increasing by about $1.0M annually • Not sustainable over more than just a few years. • Acknowledged need to stop erosion with increased revenue, reduced expenses, or a combination. Tukwila's 2025-2023 Forecast Expenditures Exceed Revenues — Includes Property Sales eve ue $90 _ — Q e first two years is the c ore D get Forw r - ooIdrg to e`r to Lorg-term sustaii $85 * on status uo© e at©rs $80 $75 $70 $65 2025 Expenses or revenue ci es n L ne w t ore` iou years' acLLaLs and known changes 2026 $6M 2027 e Excess of Revenues $6M 2028 $7M 2029 $7M 2030 Commitments for Future Budgets What we did: 2025-26 Adopted Budget • Reduced Property Tax collections by $6 million • No new rate increases • Met financial and reserve policies • Budget enhancements limited to available resources • No planned debt issuance • Fleet fund management returned to replacement cost model • Deferred GF transfers to capital for 2025/26 • Used one-time funds (land sales) to balance budget Commitments to Review Issues in 2025 • Avoid use of one-time revenues for ongoing expenses • Council Revenue Proviso: bring new/expanded revenue options • Review all city services and programs • Describe trade-offs: service levels and new investment • Financial policy, indirect cost allocation model • Review compensation policy (Res 1951) What's the Budget Sustainability Project? • Develop a budget we can maintain into the future • Develop Mayor's Proposed 2027-28 Budget including a 6-year plan through 2032 so that: • City recurring general fund revenues exceed ongoing spending each year through 2032 • Yearly cost savings or net new revenues is about $6M Budget Sustainability Expenditures AND Revenues Examples of Expenditure Changes • Changes or reductions to programs or services • Cost of Service & Fee studies • Efficiencies • Review of salary and benefit policies • Other ideas: what would control costs, N Examples of Revenue Changes • Revenue Proviso Report (July) • B & O Tax Changes • Sales Tax: Transportation Benefit District • Sales Tax: Criminal Justice (HB 2015) • 12 others Unlikely to Recommend • Property tax changes Revenue Options (Proviso Report) Salary Et Benefit Policies Capital Et Utilities (GF OEtM) • Budget Sustainability Ideas from 5 Topic Areas 1 Operating Expense or Program Changes Out of the Box or Efficiency Improvements Process and Timeline • Two efforts, revenue & expenditure analysis, are meant to complement each other to strengthen the City's financial outlook. • Expenditures/Cost Ideas — Review now through November 2025 • Generated 50+ ideas to consider that could lead to a more sustainable budget • Evaluating the ideas for savings, relevance, feasibility • Recommendations to Mayor by end of 2025 to include in budget development, Spring 2027-28 • Include Council (work sessions), community, and employee input Revenue Proviso — 2025-26 Adopted Budget Council Request • "...The City cannot depend exclusively on cost-cutting measures to address future budget deficits. To ensure long-term financial stability... imperative to identify new revenue sources and strengthen existing revenue streams... • Directed the Finance Department to return mid-2025 to present and discuss potential additional revenue options. • The report is intended as a starting point for policy conversations, not a recommendation. Revenue Report Highlights Proviso Report • 15 revenue options available in current law. (July 21, 2025) • Builds on community Financial Sustainability Committee report (2023). • Options are analyzed using a standard framework to support side -by -side comparison. • Component of the larger city-wide effort aimed at creating a sustainable budget. Revenue Proviso Report (July 21, 2025) • Report is a technical resource designed to support informed policy deliberation. • High -potential options. • Questions for further analysis. • Topics for public engagement. • Council Feedback/Discussion: • We have received about a dozen questions on the options and work on those is underway. • Is there consensus on options the Council would like us to explore further or provide additional information? Next Steps • Council, Community, staff engagement • Expenditures — report on ideas to consider (Work Groups - idea generation) • Mayor will provide the City Council with recommendations for creating a sustainable budget late Fall 2025. • Recommendations, including any modifications made in partnership with the City Council, will be included in the City's budget process and planning for the 2027 - 2028 biennium budget.