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Home My WebLink AboutFIN 2025-10-27 Item 1B - Item 1B - Ordinance - 2025 Year-End Budget AmendmentsCity of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: City Council CC: Mayor McLeod FROM: Aaron BeMiller, Finance Director BY: Tony Cullerton, Deputy Finance Director CC: Mayor McLeod DATE: October 27, 2025 SUBJECT: 2025 Biennium Budget Amendment Ordinance ISSUE Approval of Administrative Budget Amendments. BACKGROUND A budget amendment is necessary only when a fund as a whole risks exceeding its approved allocation. Budget amendments provide organizations the opportunity to incorporate best practices, adjust to substantial changes in financial plans or policy decisions, and enhance transparency for key decisions. The proposed amendments will make the following adjustments to the General Fund for the current biennium: • Transfer from General Fund to Sewer Fund for early repayment of interfund loan. Budget impact of $947,112. • Transfer from Land Acquisition Fund to General Government Improvements Fund for TCC HVAC costs. Budget impact of $405,000. • Transfer funds from the Urban Renewal Fund to the General Fund with the intent of closing the Facilities Replacement Fund. Budget impact of $947,112. • An increase to the Insurance — LEOFF 1 fund to cover additional miscellaneous LEOFF retiree expenditures. Budget impact of $100,000. • Authorization to add a limited term position to HR to extend through 2026. Budget impact of $0. DISCUSSION On November 21, 2022, the City authorized an interfund loan from the Sewer fund (402) for the purchase of a fire apparatus. The interfund loan was scheduled for repayment in 2026. However, the City is in a position to pay the interfund loan off in 2025. This resulted in approximately $30k savings in interest expense. The Tukwila Community Center incurred unexpected necessary repairs to the HVAC unit. A transfer from the Land Acquisition Fund to the General Government Improvement Fund was necessary to absorb the costs to repair the HVAC unit and equipment. 27 In 2024 through the 2025-2026 budget process the City was authorized to close the Urban Renewal (302) fund. There are unassigned funds associated with that Fund that will be transferred to the General Fund prior to closing. The amount planned for transfer is $947,112. An increase in the amount of $100,000 is needed for the LEOFF 1 Self Insurance Plan Fund. This increase is necessary due to unbudgeted miscellaneous health care costs attributed to the retirees' covered by this insurance fund. Human Resource identified a need for a limited term position to assist with a variety of HR functions. It was determined that the cost of this role would be absorbed by the department. This position was approved by city leadership. This amendment item has zero financial impact to the budget and solely seeks Council authorization. The total year-end budget amendment is $2,399,224. Fund 2112 r du pted n es 2 2 I rp sed I ues Difference 202 uy,' tare 2 d2 Proposed Ep nWtores D nce Fund 000 -General S 78,322,596 $ 79 269,„708 947,1.12 $ '7'7,768,407 $ '78,715,5,1.9 $ 947,1.12 Fund 105 - Contingency 120,000 12.0,000 - - - - Funnd 101- Hotel/Motel Tax 1,047„750 1,047,750 - 1,644,765 1,644,765 - Fund 103 - Residential Streets 4,89„000 4,89,000 - 4953,000 4,953,000 - Fund 1,04 - Bridges & Arterial Streets 11,042,001 11,042,001 - 10,537,131 10,537,131 - Funnd 109 - drug Seizure 98,100 98,100 - 73 D00 73,000 - Funds 2XX-LTGO Debt Service Funds 4,736 172, 4,736,172. - 4,736,172. 4,73,6,172 - Funnd 206 - LW Gua rantee 8,000 8,000 - - - - Funnd 213 - LIMO Bonds 4,905„000 4,905,000 - 5,059,475 5,05,9,475 - Fund .233. - 2013. LILID453,500 453,500 - 453,000 453„000 II - Fund 301- LanidAcq, Rec, Park Develop.. 5,665„690 5,665,690 - 6,663,000 7,068,000 405,000 Fund 302,-LUrba n Renewal - - - - 947,1,12, 947,11.2 Fund 30.3 -General Government Imp 401,000 80,6,000 405,000 4400,000 400,000 - Funnd 3044 - Fire Improvements 600,000 600,000 - 600 „000 600,000 - Funnd 305 - Public Safety Pla n 1,115„000 1,115,000 - 1,317,849 1,317,849 - Funnd 306 - City Facilities 5,000 5,000 - 825,238 825,.238 - Fund 401-Water 710„254,836 10,254,836. - 11,023,0' 3 11,023„093 - Funnd 402, - Sewer 713,101,957 14,049,069 7,112 15,917,066 15„917,066 - Fund 411- Foster Golf Course, 2,787,500 2,787,500 - 3,287,832. 3,287,832 - Funnd 412, - Surface Water 14,978,410 14,978,41.0 - 17,088,102 17,088,102 - Funnd 501- Equip Rental & kelplace.ment 6,093 106 6,093,106 - 4,946,807' 4,946,807 - Fund 502, - Self -Insured (Healthcare Plan 8,346 309 8,346,309, - 7d731,880 7,031,880 - Funnd 503 - LEOFF III Self -Ins Health Plan 474,514 474,514 - 599,903 699,903. 100,000 Fund 611- Firemen's Pension 155,000 155,000 - 82,000 82,000 - Totat All Funds Co mrb'ined 16 , ; O,441 $ 17'1,878,6866 $ 2,2M :,2 $175,007,720 $177,4406,944 $ 2, ,224 RECOMMENDATION Forward to the November 3, 2025 Regular Meeting as Unfinished Business and to November 10, 2025 Special Meeting to approve the Budget Amendment Ordinance. 28 Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 2025 Year -End Budget Amendment Presented by: Tony Cullerton, Deputy Finance Director October 27, 2025 Purpose Incorporate final year-end adjustments to close the 2025 fiscal year Ensure compliance with RCW 35A.34 and City financial policies Reflect accurate and transparent reporting of City funds and activities W Summary of Adjustments Interfund loan early payoff (Fire General -* Sewer $947,112 Apparatus) HVAC repairs — Tukwila Community Land Acquisition -* Gen Gov't $405,000 Center Improvements Close Urban Renewal Fund and transfer Urban Renewal -* General $947,112 balance Additional retiree health costs LEOFF 1 Insurance Fund $100,000 HR Limited -Term Position (no cost General Fund impact) Total Year -End Adjustment $0 $2,399,224 Discussion Highlights Early repayment of interfund loan saves approximately $30,000 in interest expense HVAC repairs at TCC required prompt action to maintain facility operations Urban Renewal Fund (302) being closed; residual balance transferred to the General Fund Increase in LEOFF 1 fund covers unbudgeted retiree health expenses HR limited -term position added; cost absorbed by department, no budget impact All adjustments incorporated into 2025 Year -End Budget Amendment Ordinance Ordinance amends TMC Ordinance No. 2749 (2025- 2026 Biennium) Aligns with adopted budget policies and ensures financial transparency Maintains balanced funds across the biennium Approve the 2025 Year -End Budget Amendment Ordinance to formally adopt the listed adjustments. Review at Finance & Governance Committee — October 27, 2025 Forward to City Council for formal adoption in November Publish and transmit final adopted ordinance per RCW 35A.34.200 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2749, WHICH ADOPTED THE CITY OF TUKWILA'S BIENNIAL BUDGET FOR THE 2025-2026 BIENNIUM, TO ADOPT AN AMENDED YEAR-END BUDGET; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on November 25, 2024, the City Council of the City of Tukwila adopted Ordinance No. 2749, which adopted the 2025-2026 Biennial Budget of the City of Tukwila; and WHEREAS, the City has determined a need to amend the 2025-2026 Biennial Budget before fiscal year-end; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance Amended. Tukwila Ordinance No. 2749 is hereby amended with the City Council's adoption of the document entitled "City of Tukwila 2025-2026 Year - End Budget Amendment," attached hereto and incorporated by this reference as if fully set forth herein, in accordance with RCW35A.34.200. Section 2. Purposes of Year -End 2025 Budget Amendment. This year-end amendment updates the 2025 budget to reflect actual revenues, expenditures, and approved adjustments made during the year. It aligns the budget with current financial activity and project updates. Additionally, it ensures the City ends the year in compliance with state budget requirements. Section 3. Estimated 202Revenues and Appropriations. The totals of the estimated revenues and appropriations for the General Fund and the aggregate totals are as follows: 36 2025 Legislation: 2025 year-end budget amendment Version: 10/8/25 Staff: A. BeMiller Page 1 of 6 I lmmm IIt Glolmmm..in II ...mm Illtntnmm *..... 2 .25 .®..Ipt . 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III u'W1;1mI....A1.1 '..L0"m 11IsC:. g.......:W,m111111"m V' gl. 2 1,II,I..a..I59..... ..1,.I"w, ,"I:u1i.lIl„m��1....... a u 66w,Iu +t.5...... 2025 Legislation: 2025 year-end budget amendment Version: 10/8/25 Staff: A. BeMiller Page 2 of 6 37 AMOUNTS ARE SUBJECT TO CHANGE DURING BUDGET PROCESS Fund 2025 Adopted Revenues 2025 Proposed Revenues Difference 2025 Adopted Expenditures 2025 Proposed Expenditures Difference Fund 000 - General 78,322,596 79,269,708 $ 947,112 $ 77,768,407 $ 78,715,519 $ 947,112 Fund 105 - Contingency 120,000 120,000 - - - - Fund 101 - Hotel/Motel Tax 1,047,750 1,047,750 - 1,644,765 1,644,765 - 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 - 10,537,131 10,537,131 - Fund 109 - Drug Seizure 98,100 98,100 . 73,000 73,000 . Funds 2XX-ITGO Debt Service Funds 4,736,172 4,736,172 - 4,736,172 4,736,172 - Fund 206 - LID Guarantee 8,000 8,000 - - - . Fund 213 - UTGO Bonds 4,905,000 4,905,000 - 5,059,475 5,059,475 - Fund 233 - 2013 LID 453,500 453,500 - 453,000 453,000 - Fund 301 - land Acq, Rec, Park Develop 5,665,690 5,665,690 . 6,663,000 7,068,000 405,000 Fund 302 - Urban Renewal - 947,112 947,112 Fund 303 - General Government Imp 401,000 806,000 405,000 400,000 400,000 - 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 5,000 5,000 - 825,238 825,238 . Fund 401 -Water 10,254,836 10,254,836 - 11,023,093 11,023,093 - Fund 402 - Sewer 13,101,957 14,049,069 947,112 15,917,066 15,917,066 - Fund 411 - Foster Golf Course 2,787,500 2,787,500 . 3,287,832 3,287,832 . Fund 412 - Surface Water 14,978,410 14,978,410 - 17,088,102 17,088,102 - Fund 501 - Equip Rental & Replacement 6,093,106 6,093,106 - 4,946,807 4,946,807 . Fund 502 - Self -Insured Healthcare Plan 8,346,309 8,346,309 - 7,031,880 7,031,880 - Fund 503 - LEOFF I Self -Ins Health Plan 474,514 474,514 - 599,903 699,903 100,000 Fund 611 - Firemen's Pension 155,000 155,000 - 82,000 82,000 - Total Ali Funds Combined $ 169,580,441 $ 171,879,665 $ 2,299,224 $ 175,007,720 $ 177,406,944 $ 2,399,224 Based on 2024 ACFR ending balances 38 2025 Legislation: 2025 year-end budget amendment Version: 10/8/25 Staff: A. BeMiller Page 3 of 6 2026 2026 Estimated Proposed Estimated Beginning Proposed Expenditure Ending Fund Fund Balance* Revenues s Fund Balance Fund Beginning Fund Balance Proposed Revenue Proposed Expenditure 2025 Estimated Ending Fund Balance Fund 000 - General 1,200,000 Fund 402 - Sewer 1,200,000 Fund 302 - Facility Replacement 1,700,000 Fund 000 - General 1,700,000 Fund 000 - General Fund 0 0 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. 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. 2025 Legislation: 2025 year-end budget amendment Version: 10/8/25 Staff: A. BeMiller Page 4 of 6 39 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 Attachment: City of Tukwila 2025-2026 Year -End Budget Amendment II'uuun m A 11 lllxllleuiumlii t uuu ores pliff ore nc . s I uuuu(0()()() u �u ur1110:'qr1II Il.�uu:V h co) � iru:ucoo'q 4 Sc Iliru'qcu0"Iiiru(0II..rr uu iil'urp n �. II �ir0(Vu r rp Il ,.. rII 11(1ll) u r1110:'qr1 II I0(0 nlo ne II CC I OVA( u r1110:t) Ncr: a II lluurp 1r111 �r uuir 11r1u9uc 'qIluli� I0(0 !: A lluu a II oru :ry\iv �u uuu0r0''1() .III gull II ryuVI uu^ u.qllu IIHHHu II Y 11110( lrluu(Vii.li�u ry,u11rlu. (V(V ii jai rru a :� u iuuu.rr:°, uu iru,ryrrliu II II (;ull II:: u ry�iiu ry l)u"1LIr00'qli�u ryl (u 0 ul Alt III II 01111'1111s .m ururm lb ii uruo ( 5 su# 40 2025 Legislation: 2025 year-end budget amendment Version: 10/8/25 Staff: A. BeMiller Page 5 of 6 II"' uuu ui A III° e enure 2®2 uim®III®gem II°eeuiuuue II iiiffere uiee u :uuu^r wu= iiuu 11urruuu uu ui.,up urYuq:,:uu ry. I nou(0(1(1( a ryiru:ryu uu l no11(0 '01 . u,iryirIwo uu ,(1)./co IliuullY u :uuu^ 'u' (1110:1(1 II uuuuu:0 "11;"1too ulla Hi/ rY11 II( .1. II OVA( II no 11(0 II u :uuu^ wu iiuu u(Yuuu (III iruu ryiru1 (111ryriv''11'. iru(0I0..rr uuu uu1I AU III umui'o1I11iiiuru1u: 2025 Legislation: 2025 year-end budget amendment Version: 10/8/25 Staff: A. BeMiller Page 6 of 6 41