HomeMy WebLinkAboutReg 2025-10-20 Item 5A / 6A - Public Hearing - Ordinance Amending 2026 Mid-Biennium BudgetCOUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's revieav
Council revieav
10/6/2025
AB
10/20/2025
AB
ITEM INFORMATION
ITEM No.
5.A. &
6.A.
STAFF SPONSOR: AARON BEMILLER
ORIGINAL AGENDA DATE: 10/6/25
AGENDA ITEM TITLE 2026 Mid -Biennium Update
CATEGORY ® Discussion
Mtg Date 10/6/25
❑ Motion
Mtg Date
❑ Resolution
Mtg Date
® Ordinance
Mtg Date 11/10/25
❑ Bid Award
Mtg Date
❑ Pub& Hearing
Mtg Date 10/20/25
❑ Other
Mtg Date
SPONSOR ❑ Council ® Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PIV
SPONSOR'S
SUMMARY
Adjusts the adopted 2026 budget for changes to the assumptions established in 2024 and
used to create the 2026 budget. These include items such as CPI/COLA, PERS rates,
medical rates, etc. It also allows for the inclusion of business decisions made in 2025
which affect 2026.
REVIEWED BY
❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev.
❑ LTAC
DATE:
❑ Arts Comm.
❑ Parks Comm. ❑ Planning Comm.
COMMITTEE CHAIR:
RECOMMENDATIONS:
SPONSOR/ADMIN. Mayor's Office / Finance
COMMIYIEE Discussion only
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
10/6/25
Discussion at 10/6 Regular Meeting
10/20/25
MTG. DATE
ATTACHMENTS
10/6/25
Informational Memorandum
PowerPoint
10/20/25
Informational Memorandum
PowerPoint
Draft Ordinance
323
City of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: Tukwila City Council
FROM: Aaron BeMiller, Finance Director
CC: Thomas McLeod, Mayor & Marty Wine, City Administrator
DATE: October 6, 2025 (IIIiervl sec '' Ilber
SUBJECT: 2026 Mid -Biennium Adjustment
ISSUE
As provided in State law, the City Council adopts a biennial budget every two years, with the
new biennial budget beginning on an odd numbered year. Like many Cities, the biennial budget
adopted by City Council is constructed and viewed as two one-year budgets. Between the first
year of the current budget (2025) and the second year (2026), the Mayor will propose changes
to the 2026 budget. This process is called the Mid -biennium Adjustment and is important for
adjusting the 2026 budget for any known and necessary changes from the time the 2026 budget
was adopted in late 2024. These changes include but are not limited to adjusting CPI,
healthcare, and retirement rate assumptions, carry-over or new initiatives that were unplanned
at the time of adoption, and any other updates necessary for City operations/obligations.
BACKGROUND
The Mid -biennium adjustment is underway and below is a draft timeline for the Council process:
2026 Mid -Biennium Adjustment Ordinance
10/06/25 — Regular Meeting — Mayor's presents his 2026 Proposed budget changes
10/20/25 — Regular Meeting — 1st Public Hearing & discussion
10/27/25 — FIN Committee — Discussion only
11/03/25 — Regular Meeting — 2nd Public Hearing & discussion
11/10/25 — COW Meeting — Further discussion opportunity
11/17/25 — Regular Meeting — Further discussion opportunity & potential adoption
11/24/25 — Special Meeting (if necessary) — Budget adoption
2026 Property Tax Collection Ordinance
10/20/25 — Regular Meeting — Public Hearing
10/27/25 — FIN Committee — draft ordinance for review
11/10/25 — COW Meeting —Discussion
11/17/25 — Regular Meeting - Adoption
DISCUSSION
The Mayor is presenting his proposed changes to the adopted 2026 budget. The proposed
changes reduces the overall expense budget by $682.7 thousand and includes a General Fund
expense reduction of $843.2 thousand. Once the Mayor concludes his remarks on his 2026
Proposed Budget, staff will walk through his proposed changes in more detail.
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324
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INFORMATIONAL MEMO
Page 2
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FINANCIAL IMPACT
Discu sion item only. There is no financial impact sociated with this agenda item. However,
a formal Ordinance will be brought forward adjusting the adopted 2026 budget based on the
proce,,s.
11',UA
RECOM MENDATION
Information Only. There is no recommendation currently for future action.
0""""' Omani to th(31, otverruo be,r 2025 11""Reg„illar MeetIIng tor a s CO nd h(31,arIIn(„1„
ATTACH MENTS
Draft (01 rcl no nc,„(31,
325
Public Hearing:
Proposed 2026 Mid -Biennium
Adjustment
Tukwila City Council Meeting
October 20, 2025
Mid -Biennium Adjustment
• October 6: Mayor's presentation, discussion of revenues and
expenses, significant changes in cost drivers.
• October 20: 1 St Public Hearing on the proposed budget, Public
Hearing on the 2026 Property and Excess levies, continued
discussion on the proposed budget.
• October 27: Finance & Governance Committee for continued
discussion on the proposed budget.
Mid -Biennium Adjustment
• November 3: 2nd Public Hearing on the proposed budget, further
discussion on budget.
• November 10: Further discussion on proposed budget.
• November 17: Continued discussion on proposed budget,
adoption of the 2026 Regular and Excess levies, potential
adoption of the 2026 Mid -Biennium Adjustment.
• November 24: Adoption of 2026 Mid -Biennium Adjustment
General Fund Expenditures and Transfers Out By Type
Debt Service, 5%
Services, 25%
Wages, 45
Machinery & Equipment, 0.2%
Supplies, 2% Intergovernmental Expenditures Detail
Transfers Out to Other Funds, 1 %
5% _-
Valley Communications,
2%
SCORE Jail, i%
Intergov.
Other, 0.3%
City Cou 2 2025,2026,1
General Fund Revenues and Transfers Out by Type
Transfer In From Fund 305 (Debt Service),
2%
Misc. Revenue, 1%
Fines and Penalties, 0.5%
Charges for Services, 3%
Indirect Cost Allocation, 4%
Intergovernmental Rev.,
excluding Grants, 5%
All Other Taxes, 21 %
Licenses '& Permits, 8%
7%
One -Time Funds Detail
Grants, 1%
Sale of Capital Assets, 5%
Transfer In From Fund
302 (Fund Closure), 1%
City Cou 2 2025,2026,1
All Funds Expenditures and Transfers Out
All Funds Revenues and Transfers In
Sale of Capital
Assets, 3%
Capital
Contributions,
2%
Miscellaneous,
Capital, 3% � +�� 7%
Services, 40%
Supplies, 7%
Fines &
Penalties,
0.2%
Transfers In, 7%
Charges for
Services, 25%.
Licenses &
Permits, 4%
All Funds Changes
Fund
2026
Resources
Adopted
2026
Resources
Proposed
Resources
Difference
2026
Expenditures
Adopted
2026
Expenditures
Proposed
Expenditures
Difference
GENERAL &
CONTIN-
GENCY
Fund 000 - General
$ 78,205,129
$ 78,322,596
$ 117,467
$ 78,611,612
$ 77,768,407
$ (843,205)
Fund 105 - Contingency
120,000
120,000
-
-
-
-
Total General & Contingency
78,325,129
78,442,596
117,467
78,611,612
77,768,407
(843,205)
SPECIAL
REVENUE
Fund 101 - Hotel/Motel Tax
1,047,750
1,047,750
-
1,656,409
1,644,765
(11,644)
Fund 109 - Drug Seizure
98,100
98,100
-
73,000
73,000
-
Total Special Revenue Funds
1,145, 850
1,145, 850
-
1,729,409
1,717,765
(11, 644)
DEBT SVC
Funds 2**-LTGO Debt Service Funds
4,736,172
4,736,172
-
4,736,172
4,736,172
-
Fund 213 - UTGO Bonds
4,905,000
4,905,000
-
5,059,475
5,059,475
-
Local Imp. Dist. #33, Guaranty Funds
461,500
461,500
-
453,000
453,000
-
Total Debt Service Funds
10,102,672
10,102,672
-
10,248,647
10,248,647
-
All Funds Changes
Fund
2026
Resources
Adopted
2026
Resources
Proposed
Resources
Difference
2026
Expenditures
Adopted
2026
Expenditures
Proposed
Expenditures
Difference
CAPITAL PROJECTS
Fund 103 - Residential Streets
4,869,000
4,869,000
-
4,953,000
4,953,000
-
Fund 104 - Bridges & Arterial Streets
11,042,001
11,042,001
-
10,440,651
10,537,131
96,480
Fund 301 - Land Acq, Rec, Park Develop
6,165,690
5,665,690
(500,000)
7,237,236
6,663,000
(574,236)
Fund 302 - Urban Renewal
-
-
-
-
731,255
731,255
Fund 303 - General Government Imp
401,000
401,000
-
400,000
400,000
-
Fund 304 - Fire Improvements
600,000
600,000
-
600,000
600,000
-
Fund 305 - Public Safety Plan
1,115,000
1,115,000
-
1,317,849
1,317,849
-
Fund 306 - City Facilities
846,937
5,000
(841,937)
825,238
825,238
-
Total Capital Projects Funds
25, 039, 628
23, 697, 691
(1,341, 937)
25, 773, 974
26, 027,472
253,499
All Funds Changes
Fund
2026
Resources
Adopted
2026
Resources
Proposed
Resources
Difference
2026
Expenditures
Adopted
2026
Expenditures
Proposed
Expenditures
Difference
ENTERPRISE
Fund 401 - Water
10,254,836
10,254,836
-
11,116,611
11,023,093
(93,518)
Fund 402 - Sewer
13,101,957
13,101,957
-
16,030,741
15,917,066
(113,675)
Fund 411 - Foster Golf Course
2,787,500
2,787,500
-
3,300,595
3,287,832
(12,763)
Fund 412 - Surface Water
14,978,410
14,978,410
-
17,208,282
17,088,102
(120,180)
Total Enterprise Funds
41,122, 703
41,122, 703
-
47, 656, 229
47, 316, 093
(340,136)
All Funds Changes
Fund
2026
Resources
Adopted
2026
Resources
Proposed
Resources
Difference
2026
Expenditures
Adopted
2026
Expenditures
Proposed
Expenditures
Difference
INTERNAL SERVICE
Fund 501 - Equip Rental & Replacement
6,084,081
6,093,106
9,025
4,968,756
4,946,807
(21,950)
Fund 502 - Self -Insured Healthcare Plan
8,955,150
8,346,309
(608,841)
6,831,880
7,031,880
200,000
Fund 503 - LEOFF I Self -Ins Health Plan
519,152
474,514
(44,638)
519,152
599,903
80,751
Total Internal Service Funds
15, 558, 383
14, 913, 929
(644, 454)
12, 319, 788
12, 578, 590
258,801
U }
o Q
Fund 611 - Firemen's Pension
155,000
155,000
-
82,000
82,000
-
TOTAL BUDGET
$ 171,449,365
$ 169,580,441
$ (1,868,925)
$ 176,421,659
$ 175,738,975
$ (682,684)
FTE Count By Fund / Department
FUND/Department
2025
Adopted
FTE
2026
Adopted
FTE
2025
Current
FTE
2026
Projected
FTE
Difference
2025
Current vs
2026
Projected
Notes
General Fund
249.44
249.44
250.44
250.44
0
City Council
8
8
8
8
0
Mayor
30.29
30.29
31.29
31.29
0
Finance
15
15
15
15
0
Parks and Recreation
25.75
25.75
24.75
24.75
0
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
0
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
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
0
elia=Beennium
Wrap Up / Q&A
City Council 2026 Mid -Biennium
Adjustment Continued
Discussion
Tukwila City Council Meeting
October 20, 2025
Change Tracker
10/20/2025 General Fund Expense
- Parks
$312,000
Department of Natural Resources Community Forest Assistance Grant award. Notification of award
on 10/8/2025. Grant will support restoration and conservation programs for local tree canopy and
natural spaces. Grant revenue 100% supports these activities.
10/20/2025 General Fund Revenue $312,000 Department of Natural Resources grant award. This grant provides resources for the activities listed
- Parks
above.
id -Biennium
Council Questions
10/6/2025 10/20/2025 Papyan
What revenues go into the General Fund "security" line?
Reimbursement for Law Enforcement Services (e.g. Westfield
Mall security) Booking Fees, Probation Fees and safety -related
inspection fees.
10/6/2025 10/20/2025 Seal Number of LEOFF retirees?
24 beneficiaries. The Law Enforcement Officers and Fire
Fighters' Retirement System (LEOFF) Plan 1 was available for
law enforcement officers and firefighters hired before October
1, 1977. The plan includes survivor benefits for eligible
spouses or dependents.
10/6/2025 10/20/2025 Sharp
Provide a cost breakdown of the Park Ranger program. See slides in new presentation.
10/6/2025 10/20/2025 Ca macho Do other cities' Park Ranger positions reside in PD?
Mukilteo & Mount Vernon host their park ranger in PD;
Kirkland, Issaquah, Everett, Snohomish County, Bellevue- park
rangers are in P&R departments.
id-Biei_u
Park Ranger Program
Current Status
Park Ranger in PoliceDepartnient
Labor Costs
81,422
Salani
5,000
Estimated Overtime
59,083
Benefits
145,505
Total Labor Costs
Ancillary Costs
3,550
O&M for Park Ranger Truck
5,475
Replacement Costs for Park
Ranger Truck
5 OW
Park Ranger Supplies
5,000
Park Ranger Services
10.000
Park Ranger Trailing/Development
29_025
Total Ancillary Costs
Fanner Status
Park Ranger in Parks Department
Labor Costs
81,422
Salary
5.000
Estimated Overtime
59,083
Benefits
145.505
Total Labor Costs
Ancillary Costs
3,550
O&M for Park Ranger Truck
5,475
Replacement Costs for Park
Ranger Truck
5,000
Park Ranger Supplies
5 00
Park Ranger Services
10,000
Park Ranger
Training/Development
29_025
Total Ancillary Costs
osts
Tukwila City Council, Oct 20, 2025, 2026 MidBiennium
Adjustment
Park Ranger Program
Current Status
ParkRanger in Police De ent
Budget Redo ns
(47,118)
96O
Police Reduction: Equipment
Police Reduction: Supplies
Parks Reduction: Cancel
Contracted Security
Former . Status
Park Ranger in Parks Department
Budget meets
(78,530)
Transfer In From Fund 301 (Parks
Lew Funds)
(96,000)
Parks Reduction: Cancel
Contracted Security
elia=Biennium
Next Steps / Q&A
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NOS.
2749 AND , WHICH ADOPTED AND AMENDED THE
CITY OF TUKWILA'S BIENNIAL BUDGET FOR THE 2025-
2026 BIENNIUM, TO ADOPT AN AMENDED MID -
BIENNIUM BUDGET; PROVIDING FOR SEVERABILITY;
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on November 25, 2024, the City Council adopted Ordinance No. 2749,
which adopted a mid -biennium budget amendment, in accordance with RCW35A.34.130;
and
WHEREAS, a mid -biennium budget amendment was presented to the City Council
in a timely manner for their review, in accordance with RCW 35A.34.130; and
WHEREAS, on October 20, 2025 and November 3, 2025, following required public
notification, the City Council conducted public hearings on the proposed mid -biennium
budget amendment;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Ordinances Amended. Tukwila Ordinance Nos. 2749and are hereby
amended with the City Council's adoption of the document entitled "City of Tukwila 2025-
2026 Mid -Biennium Adjustment," attached hereto and incorporated by this reference as if
fully set forth herein, in accordance with RCW 35A.34.130.
Section 2. Purpose. The purpose of the 2026 Mid -Biennium budget adjustment is to
correct the 2026 budget for known changes to rates and/or budget decisions made in
2025, which affect the 2026 budget.
Section 3. 2026 Estimated Revenues and Appropriations. The totals of the estimated
revenues and appropriations by fund for 2026 are as follows:
2025 Legislation: 2026 Mid -Biennium budget amdt
Version: 10/8/25
Staff: A. BeMiller
Page 1 of 4
344
..e
:.et • -e
Revenues
:.et • .e
Expenditures
f9,4!
General
15,56/1,070
151,292/179
153,573,762
16,282,787
101
Hotel/Motet
3,/110,870
1,9/15,500
2,677,822
2,678,5/1a
103
City Street
1,858,573
••••• eee
5,803,000
2,054,573
10/1
Arterial Street
5,278,831
16,628,002
18,077,377
3,82 ,45
105
Confl
7,30/1,961
470,639
0
7,775,600
Drua Seizure Fund
30/1,562
196,200
1/16,000
35/1,762
2xx
LTGO Debt Scrvcc FundG
0
9,'181,650
9,/181,650
0
213
UTGO Bonds
479,708
9,610,000
9,991,200
98,508
206
LID Gu rant
799,243
16,000
815,243
233
2013 LID
513,199
938,000
937,000
51/1,1
301
Land Acquisition, Recreation
& Park Dev,
4,130,437
9,006,990
10,320,841
2,816,586
303
General Government
Im ro em nts
324,512
938,000
226,512
30/1
Fre ImDrovemcnt,
0
1,200,000
1,200,000
0
305
Pubhc SafetyPI
1,056,573
2,230,000
2,636,673
6/19,900
306
Cftv FacUfle
422,811
2,693,87/1
1,825,238
1,291,117
401
Water
4,174,701
21,596,192
23,117,822
2,653,071
402
Sewer
10,310,151
25,629,062
33,381,410
2,557,803
411
Foster Golf Course
5,575,000
6,262,0/1
1,337,1/17
412
SurfaceWat
10,866,876
29,720,677
33,868,02/1
6,719,52
501
EauDmentR tl
1,808,659
12,307,228
11,104,567
3,011,320
502
InsuranceFund
3,393,651
17,257,7/1/1
7,010,
503
InsuranceLEOFF 1 Fund
36,695
1,065,499
611
'Fremens Pens
310,000
16/1,000
1,868,'166
AMOUNTS ARE SUBJECT TO CHANGE DURING BUDGET PROCESS
Fr d (..)()0 er r
Ff....tr7d .1(15
„„„1!„.1.1,12121212„EgLe„„„„„
roplase 1E,2goglipInd it Lure
.7.7„1768„,K17
27,126„ 727 ,"75(„)
Ff....trlel .1(33 -- RE?sich?rltiell „StycNe‘t....s.
2025 Legislation: 2026 Mid -Biennium budget amdt
Version: 10/8/25
Staff: A. BeMiller
Page 2 of 4
345
Furl(' (14 -- „Streets
1'1 /42 /7/1•1
j-77,77)
Furl(' tee
8,,,f5h0,5)
Fur? B (Is;
51,0591,i/ins
.56.2„.„134
5,665,600
61,6631,00(
531
Furl(' :""0"i? t trhan Rein
471(1 i'l("7/1
Fi in d -$04 -- Fire, irnpri)vernerits
50(1 (WW1
50(1 (WW1
Fi d '3(15 P f hl 1'7( C(7177,7t v Plan
iT,?•77" (114
Furl(' 3(16
855,„„836
Furl('
Furl(' )711 -- F735. ter (iiii'cilt
Punt./ 41 -- irliiTrie?
Fund 5(1,1. -- „i„„iii„:1,t1.2 Peri
Furl(' „Self:-/risitire‘cl
131(ln
Furl(' 5(33 / „Self -iris ili?alth
.„';,•:?(...1),„i„?„5?„2
:5 7.177,71,717
Furl(' 61.1 Fire‘rn,eiri 13,einsifi)ri
,E?6,8,2766
1.55 000
(1(30
"1-0101.11 Fu.
it) 0 6„,3
2025 Legislation: 2026 Mid -Biennium budget amdt
Version: 10/8/25
Staff: A. BeMiller
Page 3 of 4
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Section 4. Copies on File. A complete copy of the amended budget for 2025-2026,
as adopted, together with a copy of this amending ordinance, shall be kept on file
electronically by the City Clerk and accessible from the City's website in accordance with
Washington State records retention schedule requirements and City policy, and shall be
made available to the public upon request. A copy of the amended budget for 2025-2026,
as adopted, together with a copy of this amending ordinance, shall be transmitted by the
City Clerk to the Division of Municipal Corporations of the Office of the State Auditor and
to the Association of Washington Cities in accordance with RCW 35A.34.130.
Section 5. Corrections by City Clerk or Code Reviser Authorized. Upon approval
of the City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to other
local, state or federal laws, codes, rules, or regulations; or ordinance numbering and
section/subsection numbering.
Section 6. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to be
invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 7. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City and shall take effect and be in full force and effect five
days after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2025.
ATTEST/AUTHENTICATED:
Andy Youn, CMC, City Clerk Thomas McLeod, Mayor
APPROVED AS TO FORM BY: Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Office of the City Attorney
2025 Legislation: 2026 Mid -Biennium budget amdt
Version: 10/8/25
Staff: A. BeMiller
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