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Home My WebLink AboutReg 2025-10-06 Item 6A - Powerpoint Shown at Meeting - 2026 Mid-Biennium Budget AdjustmentProposed 2026 Mid - Biennium Adjustment Tukwila City Council Meeting October 6, 2025 Mid -Biennium Adjustment • City uses a biennial budget process. • As required, the first year of biennium begins on an odd year. • The assumptions for our adopted 2026 budget were estimated in the summer and fall of 2024. • The mid -biennium adjustment process allows the City to amend our assumptions using known or updated information. • It also provides an opportunity to correct the 2026 budget for known changes based on decisions made in 2025 which affect the 2026 budget. Tu.uIkw`la City 'Cour ca , Oct E" Adjustment ;innt All Funds Changes Revenues and Transfers In Fund 2026 Adopted 2026 Proposed Difference Resources - Difference Notes Fund 000 - General $ 78,205,129 $ 78,322,596 $ 117,467 0.2% +113,000 Grant Funds - $800,000 Property Sale Fund 105 - Contingency 120,000 120,000 - 0.0% +$731,250 Fund 302 Closure and Transfer $175,000 Cannabis Tax Estimate -$102,000 Fewer Transfers from Fund 301 Total General & Contingency 78,325,129 78,442,596 117,467 0.2% In original budget, REET was collected in 301 Fund 301 - Land Acq, Rec, Park Develop 6,165,690 5,665,690 (500,000) -8.1% and transferred to 305. Amendment corrects this by collecting REET in 305 directly. Fund 306 - City Facilities 846,937 5,000 (841,937) -99.4% T-Force No Longer Rents City Property Included Replacement, Operations, and Fund 501 - Equip Rental & Replacement 6,084,081 6,093,106 9,025 0.1% Maintenance Costs for Park Ranger Truck mistakenly omitted from original budget Fund 502 - Self -Insured Healthcare Plan 8,955,150 8,346,309 (608,841) -6.8% Medical Plan Cost Reductions Fund 503 - LEOFF I Self -Ins Health Plan 519,152 474,514 (44,638) -8.6% Medical Plan Cost Reductions TOTAL BUDGET $ 171,449,365 $ 169,580,441 $ (1,868,925) Tu.uIkwh`1a CPity'CouncR„ Oct 6, 2 02.E T 202a d,..B ii c° n n fti m Adjustment All Funds Changes Expenditures and Transfers Out Fund 2026 Adopted 2026 Proposed Difference ($) Difference (%) Notes Fund 000 - General $ 78,611,612 $ 77,768,407 $ (843,205) -1.1% Fund 105 - Contingency - - - 0.0% See slides 11 through 20 Total General & Contingency 78, 611, 612 77, 768,407 (843, 205) -1.1 % Fund 101 - Hotel/Motel Tax 1,656,409 1,644,765 (11,644) -0.7% Revised labor costs Fund 104 - Bridges & Arterial Streets 10,440,651 10,537,131 96,480 0.9% Contract position extended Fund 301 - Land Acq, Rec, Park Develop 7,237,236 6,663,000 (574,236) -7.9% $500,000 REET collected in 305 instead $74,236 fewer transfers out Fund 302 - Urban Renewal - 731,255 731,255 0.0% Transfer out into General Fund with Fund Closure Fund 401 - Water 11,116,611 11,023,093 (93,518) -0.8% Revised Labor Costs, Insurance Costs, Fund 402 - Sewer 16,030,741 15,917,066 (113,675) -0.7% Reallocated Utilities Manager Fund 411 - Foster Golf Course 3,300,595 3,287,832 (12,763) -0.4% Revised Labor Costs Fund 412 - Surface Water 17,208,282 17,088,102 (120,180) -0.7% Revised Labor Costs, Insurance Costs, Reallocated Utilities Manager Fund 501 - Equip Rental & Replacement 4,968,756 4,946,807 (21,950) -0.4% Revised Labor costs Fund 502 - Self -Insured Healthcare Plan 6,831,880 7,031,880 200,000 2.9% Revised Excess Loss Fund 503 - LEOFF I Self -Ins Health Plan 519,152 599,903 80,751 15.6% Revised Medical Costs TOTAL BUDGET $ 176,421,659 $ 175,738,975 $ (682,684) 6.6% 1 ul *la la .w uncuL. Oct 6, 2025, 202 i ud....Bien iniuu Adjustment FTE Count By Fund / Department Occurred in 2025 To Occur in 2026 FUND/Department 2025 Adopted FTE 2026 Adopted FTE 2025 Current FTE 2026 Projected FTE Difference 2026Adopted vs Projected Notes General Fund 249.44 249.44 250.44 250.44 1 City Council 8 8 8 8 0 Mayor 30.29 30.29 31.29 31.29 1 New Term -Limited Senior HR Analyst Position Added (contracted in 2025) Finance 15 15 15 15 0 Parks and Recreation 25.75 25.75 24.75 24.75 -1 Park Ranger moved from Parks and Recreation to Police Community Development 28.75 28.75 28.75 28.75 0 Municipal Court 11.9 11.9 11.9 11.9 0 Police 100 100 101 101 1 Park Ranger moved from Parks and Recreation to Police Public Works 29.75 29.75 29.75 29.75 0 Hotel/Motel Tax Special Rev Fd 0.25 0.25 0.25 0.25 0 Arterial Street Fund 6.1 5.5 6.1 6.1 0.6 EIS Project Director Contract Budgeted through 4/30/2025, but contract was renewed through 1/31/2026 Water 8.56 8.56 8.56 8.76 0.2 Reallocation of Utilities Project Manager Sewer 5.87 5.87 5.87 6.17 0.3 Reallocation of Utilities Project Manager Golf Course 10.5 10.5 10.5 10.5 0 Surface Water 18.28 18.28 18.28 17.78 -0.5 Reallocation of Utilities Project Manager Equipment Rental 5 5 5 5 0 Total 304 303.4 305 305 1.6 Tulom la C ty .w uncfL, Oct 6, 2025, 202 tt, d Bienn um Adjiustrneirut., General Fund Proposed revenue changes by type General Fund Revenues Budget Percent change Adopted Adopted Proposed Difference 2025 2026 2026 2026 Budget 2025 - 2026 - 2026 2026 Property Taxes $ 11,999,227 $ 12,215,213 $ 12,215,213 $ - 1.8% 0.0% Retail Sales Tax 23,447,886 24,497,095 24,497,095 - 4.5% 0.0% Use Taxes 999,100 1,041,820 1,041,820 - 4.3% 0.0% Business & Occupartion Taxes 2,400,000 2,424,000 2,424,000 - 1.0% 0.0% Admissions Tax 859,235 885,012 885,012 - 3.0% 0.0% Utility Taxes 4,493,702 4,702,390 4,702,390 - 4.6% 0.0% Interfund Utility Tax 3,167,729 3,364,735 3,364,735 - 6.2% 0.0% Gambling/Excise Taxes 4,609,500 4,724,500 4,724,500 - 2.5% 0.0% Total Taxes 51,976,379 53,854,765 53,854,765 - 3.6% 0.094 Business Licenses & Permits 3,445,500 3,479,655 3,479,655 - 1.0% 0.0% Rental Housing License 44,700 63,000 63,000 - 40.9% 0.0% Building Permits and Fees 1,940,500 1,998,800 1,998,800 - 3.0% 0.0% Frachise Fees 651,372 688,696 688,696 - 5.7% 0.0% Total Licenses & Permits 6,082,072 6,230,151 6,230,151 - 2.4% 0.0% Sales Tax Mitigation 406,700 180,756 180,756 - -55.6% 0.0% Seattle City Light Agreement 2,687,700 2,832,836 2,832,836 - 5.4% 0.0% Grants 877,372 824,177 899,177 75,000 -6.1% 9.1% State Entitlements 690,330 705,555 880,555 175,000 2.2% 24.8% Total I n to rg ove rn m e n to I 4,662,102 4,543,324 4,793,324 250,000 -2.5% 5.5% 1 ul uLa (ty t.w uu ncIC Oct 6, 2025„ 202 ud...IL3 ennuur Adjiustrnerut., General Fund Proposed revenue changes by type (continued) General Fund Revenues Budget Percent change Adopted Adopted Proposed Difference 2025 2026 2026 2026 Budget 2025 - 2026 - 2026 2026 General Government 9,620 9,720 9,720 - 1.0% 0.0% Security 1,139,456 988,255 988,255 - -13.3% 0.0% Transportation 20,000 20,000 20,000 - 0.0% 0.0% Plan Check and Review Fees 662,000 662,000 662,000 - 0.0% 0.0% Culture and Rec Fees 781,045 781,045 756,045 (25,000) 0.0% -3.2% Total Charges for Services 2,612,121 2,461,020 2,436,020 (25,000) -5.8% -1.0% Total Fines and Penalties 404,505 384,405 384,405 - -5.0% 0.0% Interest Earnings 470,000 470,000 470,000 - 0.0% 0.0% Rents and Concessions 383,783 385,224 410,224 25,000 0.4% 6.5% Other Misc Revenue 190,075 189,325 227,325 38,000 -0.4% 20.1% Sale of Capital Assets 4,700,000 5,000,000 4,200,000 (800,000) 6.4% -16.0% Total Miscellaneous 5,743,858 6,044,549 5,307,549 (737,000) 5.2% -12.2% Indirect Cost Allocation 3,111,694 3,267,278 3,267,278 - 5.0% 0.0% Total Ongoing Revenue 74,592,731 76,785,492 76,273,492 (512,000) 2.9% -0.7% Transfer in from Fund 302 - - 731,255 731,255 - - Transfer in from Fund 301 175,795 101,788 - (101,788) -42.1%-100.0% Transfer in from Fund 305 1,318,824 1,317,849 1,317,849 - -0.1% 0.0% Total One -Time Revenue 1,494,619 1,419,637 2,049,104 629,467 -5.0% 44.3% Total Revenue $ 76,087,350 $ 78,205,129 $ 78,322,596 $ 117,467 2.8% 0.2% 1 ul Lawity Ow ' co iL Oct 6, 2025, 202 ud...IL3 ennuur Adjiustrnerut., General Fund Expenditure changes by Department Budget Percent Change Adopted Adopted Proposed Difference 2025 2026 2026 2026 Budget 2025- 2026- 2026 2026 Expenditures City Council 400,093 431,254 456,810 25,556 7.8% 5.9% Mayor's Office 9,748,218 10,015,887 10,077,137 61,249 2.7% 0.6% Finance Department 4,343,230 4,429,561 4,666,108 236,547 2.0% 5.3% Recreation Department 6,769,151 7,050,622 6,761,199 (289,423) 4.2% -4.1% Community Development (DCD) 5,732,921 5,978,627 5,854,564 (124,063) 4.3% -2.1% Municipal Court 2,329,525 2,445,958 2,459,217 13,259 5.0% 0.5% Police Department 28,411,330 29,659,883 29,515,597 (144,287) 4.4% -0.5% Fire Department 1,398,192 1,410,125 1,309,887 (100,238) 0.9% -7.1% Public Works Dept 9,738,964 10,205,851 10,176,496 (29,355) 4.8% -0.3% Non -Departmental 1,427,046 2,497,046 2,007,046 (490,000) 75.0% -19.6% Total Department Expenditures 70,298,671 74,124,816 73,284,061 (840,755) 5.4% -1.1% Transfers - Debt Service 3,692,390 3,784,347 3,784,347 - 2.5% 0.0% Transfers - Capital, Other 740,450 702,450 700,000 (2,450) -5.1% -0.3% Transfers - Contingency 230,639 - - - -100.0% 0.0% Total Transfers 4,663,479 4,486,797 4,484,347 (2,450) -3.8% -0.1% Total Expenditures 74,962,150 78,611,612 77,768,407 (843,205) 4.9% -1.1% Change in Fund Balance 1,125,201 (406,483) 554,189 960,672 -136.1%-236.3% Beginning Fund Balance 17,284,816 22,145,352 21,738,868 406,483 28.1% -1.8% *Ending Fund Balance $ 18,410,016 $ 21,738,868 $ 22,293,057 $ 554,189 18.1% 2.5% Tukwila CityourmiL, Oct 6, 2025, 202t n Mid Bien Mum Adjustment General Fund Labor Cost Changes Adopted Proposed Difference Wages 35,463,815 35,374,289 (89,526) Benefits 13,637,253 13,090,090 (547,163) Total $49,101,068 $48,464,379 ($636,689) Tu.uIkw`la City 'Cour ca , Oct E" Adjustment ;innt General Fund Labor Cost Changes Adopted Proposed Difference Community Development 5,063,107 4,939,044 (124,063) City Council 373,505 379,801 6,296 Fire Department 374,238 274,000 (100,238) Finance 2,886,387 2,865,252 (21,135) Municipal Court 2,130,933 2,144,192 13,259 Mayor's Office 6,005,028 5,923,777 (81,251) Police Department 21,952,930 21,996,911 43,981 Parks & Recreation 5,337,960 5,051,537 (286,423) Public Works 4,976,980 4,889,865 (87,115) Totat Generat Fund $49,101,068 $48,464,379 ($636,689) Tu.uIkwr1a CPity'CouncR„ Oct E' Adjustment City Council Proposed increase totaling $25,556 • Council Salaries and Benefits changes (net) - $6,296 • Council Pro-tem Position - $19,260 Tu.uIkw`la City 'Cour ca , Oct E" Adjustment ;innt Mayor's Office Proposed increase totaling $61,249 • Salaries and Benefits changes (net) — ($81 ,251) • Strategic Plan update - $50,000 • Minor Home Repair - $25,000 • Foster Government Relations, LLC - $21 ,500 • State of the City Community Event - $151000 • Hazelnut Newsletter - $111000 • Tukwila Community Leadership Initiative - $10,000 • People's Project - $1O,000 Tu.uIkw`la City 'Cour ca , Oct E" Adjustment ;innt Finance Proposed increase totaling $236,547 • Salaries and Benefits changes (net) — ($21,135) • OpenGov Subscription - $151,800 • WCIA Liability Insurance - $103,403 • WCIA Crime/Fidelity Insurance - $2,479 Tu.uIkw`la City 'Cour ca , Oct E" Adjustment ;innt Parks & Recreation Proposed decrease totaling ($289,423) • Salaries and Benefits changes (net) — ($286,423) • Includes transfer of Park Ranger FTE to Police • Youth Amateur Sports Grant — $75,000 • 4 Culture Grant — $38,000 • B-Force Security Contract Canceled — ($96,000) • Duties assumed by Park Ranger & Other Police Staff • Park Ranger position ancillary costs moved to Police — ($20,000) Tu.uIkw`la City 'Cour ca , Oct E" Adjustment Community Development Proposed decrease totaling ($124,063) • Salaries and Benefits changes (net) - ($124,063) Tu.uIkw`la City 'Cour ca , Oct E" Adjustment ;innt Municipal Court Proposed increase totaling $13,259 • Salaries and Benefits changes (net) - $13,259 Tu.uIkw`la City 'Cour ca , Oct E" Adjustment ;innt Police Proposed decrease totaling ($144,287) • Salaries and Benefits changes (net) — $43,981 • Includes transfer of Park Ranger FTE from Parks • SCORE Jail Services - ($215,370) • Park Ranger -Related Changes • Park Ranger ancillary costs - $20,000 • Park Ranger Truck replacement & O&M Costs - $9,030 • Absorb remaining costs of Park Ranger to keep Park Ranger neutral to the General Fund — ($78,538) • Additional WCIA Insurance Costs: $76,610 Tu.uIkw`la City 'Cour ca , Oct E" Adjustment Fire Proposed decrease totaling ($100,238) • Salaries and Benefits changes (net) - ($100,238) • Changes to LEOFF medical costs contributions Tu.uIkw`la City 'Cour ca , Oct E" Adjustment ;innt Public Works Proposed decrease totaling ($29,355) • Salaries and Benefits Change - ($87,115) • Surface Water Utility for Building No Longer Rented - $76,000 • Increased Repair and Maintenance Costs - $28,860 • WCIA Insurance Changes - ($47,100) Tu.uIkw`la City 'Cour ca , Oct E" Adjustment ;innt Non -Departmental Proposed decrease totaling ($490,000) • $1 M originally budgeted for costs related to dealing with PD vehicle and large item storage necessary to sell Fire Station property • Estimate for costs revised down to $510,000 Tu.uIkw`la City 'Cour ca , Oct E" Adjustment ;innt Q&A / Next Steps • Review planned budget approval process/dates • Review planned Property Tax process/dates • Requests for October 20t" budget agenda item Tu.uIkw`la City 'Cour ca , Oct E" Adjustment ;innt