HomeMy WebLinkAboutReg 2025-11-03 Item 5 / 6A - Public Hearing - Ordinance Adopting 2026 Mid-Biennium AdjustmentCOUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's revieav
Council revieav
10/6/2025
AB
10/20/2025
AB
11/03/2025
AB
ITEM INFORMATION
ITEM No.
5 &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
ANDate
❑ Resolution
Mtg Date
® Ordinance
Mtg Date 11/10/25
❑ Bid Award
ANDate
® Public Hearing
MtgDate 10/20 & 11
❑ Other
/3 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: 10/27/25
❑ Arts Comm.
❑ Parks Comm. ❑ Planning Comm.
COMMITTEE CHAIR: Papyan
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
Public Hearing & Discussion at 10/20 Regular Meeting
11/03/25
MTG. DATE
ATTACHMENTS
10/20/25
Informational Memorandum
PowerPoint
Draft Ordinance
11/03/25
Informational Memorandum
Change Tracker & Council Questions (revised after 10/27 FIN Committee)
Draft Ordinance
Minutes from the 10/27 Finance & Governance Committee Meeting
67
68
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 October 6,
DATE: 2025 1Revse befor 111 n a nee JIIIpm Govern a nee Co 191p 19t
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.
The Mayor presented his proposed changes to the adopted 2026 budget to the City Council on
October 6, 2025. The proposed expense budget for 2026 totals $175,738,975 which includes
the General Fund expense of $77,768,407. The proposed budget for 2026 is a reduction to the
overall expense budget of the City by $682.7 thousand and a reduction to General Fund
expenses by $843.2 thousand. Staff provided a presentation on the significant changes
included in the Mayor's proposed budget.
INFORMATIONAL MEMO
Page 2
On October 20, 2025, the first of two public hearings on the proposed 2026 Mid -biennium
budget adjustment will be held to allow residents and business communities to provide input on
the City's budget plans.
The items for discussion on October 20, 2025 include:
- Check in on Council questions from 10/6 meeting.
- Discusses of any new changes to the proposed budget since the 10/6 meeting.
- Follow-up from Public Hearing.
- Municipal Court discussion of a budget request for the Better Life Community Development
program.
- Council Q&A/wrap-up
-11-lrere 0s no new n forum t0cu n 2sp eeter for th 0s co n v e rs at0on„ We wlillll add re s s chi a rig es tot e
uur .�ruum u�lirmuurmum III. lid rmuuClill I..�liu 2.t0r rmuu °V0f20/2025.
FINANCIAL IMPACT
Discussion item only. There is no financial impact associated with this agenda item. However,
a formal Ordinance will be brought forward adjusting the adopted 2026 budget based on the
Mayor's Proposed budget and any adjustments resulting from the Council budget approval
process.
RECOMMENDATION
Information Only. There is no recommendation currently for future action.
Forward to the November 0 2025 V: c; guar IMu'i•etOn for a second lluuIblOoor Ihu'i•;a n .
ATTACHMENTS
PowerPoint
.2(126 30 (31,, s . ,. ( �.., . „..,. ., .
IIu„V IL.u�uuuuuu..uu�u�;Vu..u�Iu�u�uul ,��Il�u�luu,.u�:�� Vu��:u,.Il.�u �..�� ,��,.u..uuu.ull �u..u���Iu()u,.u,r
I::;) ra ft IC) rd In ance
https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Finance/C - Info Memo_2026 Mid -Biennium Adjustment Discussion_0ct20.docx
69
2026 Mid -Biennium Adjustment Change Tracker &
Council Questions
Change Tracker:
10/20/2025 GF - Parks
Expense
$312,000 25,000
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. Full multi -grant award is $312,000 through mid-2028.
10/20/2025 GF - Parks
Revenue
$312,0001—Department of Natural Resources grant award. This grant provides resources for the activities listed above. Full multi -grant
award is $312,000 through mid-2028.
10/20/2025 Mayor's Office Expense $60,000 Additional cost for public defense funding in response to the Washington State Supreme Court caseload standards for
misdemeanor public defense attorneys to reduce by a minimum of 10% each year to achieve full compliance with the
established caseload no more than 120 misdemeanor cases per attorney by 1/1/2036.
10/20/2025 Municipal Court Expense $45,000 Funding for the Better Life Community Development service/program. The Court has secured grant funding for a
significant portion of the costs of the service and this $45K General Fund participation will ensure operations for the 2026
calendar year.
10/20/2025 Capital - Parks Expense $198,072 1 FTE increase for a Parks Capital Improvement Program Project Manager. This position is funded outside of the General
Fund through various sources such as the KC Parks Levy, REET 1, Park Impact Fee, and grants. Creation of the position
allows for bringing this work in-house at a significant savings from contracting this work out and allows for better
coordination of process. Parks CIP includes projects that are of a scale and complexity that requires advanced planning,
multiple stages of environmental review, permitting, design, and construction administration. Continuation of this
project position is contingent on available and allowable non -General Fund resources. The position will be reduced or
eliminated should funding decline or not be sufficient to support the position. -- s a o_-t -c,-_cos S2 rrr re- s._ao es
a-c ct`e- e atec costs c = a"cg`am
,_ ;7 c =c a- As c sc_ssec .. -a--cc Ccr=" a-ccComm ee c 1G12 c ea c c= r_ c }.^.t cr ce accc_ tao :4 a-c
= r = --_-c "a-saa-c-c or costs e.atec c t--e tea": s Caa -c ects "via -age" acs c- ^' c- a"e c` c" a-g as e `c a :"o-ect
- . or t- s . _-c s to he- "c r de ass_ran-ce that on vc Ge ="a =_-cresources are _sec to oar, re-t s aos ` o--
Beg _ --g 2026, _ `gCo-_ tv be accounted -o" ` his . _`d -ese -_-Cs .".' be _sec to cap= _o
e costs c r_e acs t c- a-c ct_e a c`.^.taa-e _scs Excess <_ --g Cc_-ts _ej `cs :e `"a`s c--ec c_4 c=4 s
c c t`e Cao to _nd to be _sec for a ----cc cao,ta o"o-ects as aoo"o ec as e C.t Co_-c e Cao to B,ucget,
Page 1 of 2
25 2:58 ?
2026 Mid -Biennium Adjustment Change Tracker &
Council Questions
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 Camacho
Do other citi y-s Park Ranger position 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.
10/20/2025 10/27/2025 Martinez How does Fire Impact Fees impact Property Taxes
The 2026 budget includes $600,000 in Fire Impact Fee revenue. Impact
fees do not directly impact property taxes and are not part of the property
tax statement. Impact fees are paid by developers to help pay for new or
expanded public facilities and infrastructure that will directly address the
increased demand for services created by new development. Impact fees
are volatile based on development activity and are restricted by RCW. The
City uses collected Fire Impact Fees to pay debt service.
Page 2 of 2
25 2:58 ?
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 RCW 35A.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 3
72
Estimated
Beginning Fund
BaI.
Revenues
Expenditures
Estimated
Ending Fund
BaI
000
Genera[
15,561,070
151
153,573,762
16,282,787
101
Hotel/Mote[
3,110,870
1,915,500
2,677,822
2,678,518
40,3
City Street
1,858,573
lel aaa
-r_ rca
2,054,573
104
Arterial Street
5,278,834
16,628,002
18,077,377
3,829,45
105
Contingency
7,301,961
/170,639
0
7,775,600
109
Drug Seizure Fund
301,562
196,200
116,000
35/1,762
LTGO Debt Service Funds
0
i .-
t
i
t
0
1.1TGO Bonds
e
+ 1 999
98,508
206
LID Guaranty
799,213
16,000
0
815,213
233
2013 LID
513,199
938,000
937,000
511,199
301
Land Acquisition, Recreation
& Park Dev.
/1,130,137
9,006,990
10,320,841
2,816,586
303
General Government
Improvements
321,512
810,000
938,000
226,512
301
Fire Improvements
0
1,200,000
1,200,000
0
305
Public Safety Plan
1,056,573
2,230,000
2,636,673
6/19,900
306
City Facilities
/122,811
2,693,871
1,825,238
1,291,117
401
Water
/1,171,701
21,596,19
23,117,822
2,653,071
/102
Sewer
10,310,151
25,629,062
33,381,110
2,557,803
/111
Foster Golf Course
2,021,196
5,575,000
6,262,04a
1,337,117
Surface Water
10,866,876
29,720,677
33,868,021
6,719,529
501
Equipment Renta[
1,808,6
12,307,228
11,101,567
3,011,320
502
Insurance Fund
3,393,651
17,257,714
13,640,396
7,010,9
503
Insurance LEOFF 1 Fund
36,695
1,065,4
1,021,856
80,338
Firemen's Pension
1,722,166
310,000
161,000
1,868,166
Total
$75,786,048
$64,627,097
AMGUlf ...S A
E SUEEG ...
i 0 CHANGE DUF
G BUDGET
OCESS
Fuoid
ll. it LIII to afed
2.�2,.....IIII!!!��..i�dd::......................II�.p�..... ................................
I .ed.aliII .ing P1rep.9s d Expe!h! IUu1re ...Ill....ii . 'ing
Fund IBa[anceB Revenues s I'uu d Ill;ta[ance
Fund l 000 - General
„2„1„907,434
596... 77,7C ,407 r 44
Fund 0105 Conti
7,... 07 P...07 1...20Y.000
7,...723,...0.7
x
401 26o 7 7 1. 47o 750
Fur d 0103 - iidentlla'Streets
2025 Legislation: 2026 Mid -Biennium budget amdt
Version: 10/8/25
Staff: A. BeMiller
Page 2 of 3
73
4„„:69,poo
057
/1iind 104 Bridaes & Arterial „Streets
9 973 264
.11 04„? 00.1
.10 537 131
..10 47 134
/1"iind ..10.9 Drug „Seizure
337, 070
9 100
73,e 000
36„2..„„170
Funds „2XX-1...TGO Debt „Service Funds
4 736 17,,
4 736 17,'')
Fund „206 LID Guarantee
5q., 009
, 000
62,009
/1"iind „2..13 TGO Bonds
7.16 609
4,905,000
75
56 2. „134
Fund „233 „20.13 /JD
53 73 76
453500
453poo
537, 76
d 30..1 - /.. arid Acy„ Reg, Park
Develop
46691
Fund 30„2 rban Re/len/1mi
73
3
73
3
Fund 303 - General Governrnent Nal?,
401 000
400„poo
.143 „63 2.
Fund 304. - Fire IrrIprovernents
600„000
600,000
Fund 305 - Public „Safety Plan
..1„317„ 49
.1 027 004
Fund 306 - City Facilities
36
5, 000
3659
Fund 401 - W1/ate
3F
Fund 40„2 ,Sewer
..12,33.9„:40
13..101„95 7
15917,066
rigid 411 - Foster GolfCourse
1,940„092.
2 77 500
d 41 u fic 1/ate
17„616„451
14 97 410
.15,506,759
Fund 50.1 - Egybp Rental &
Replacernent
6093 06
4,946, 07
2 247 13
Fund 50„2 Self -Insured ealthcare
Plan
4 003 451
7 031
rigid 503 - LEOFF I „Self -Ins ealth
Plan
474„5.14
59.99 03
Fund 611 - Firernen's Pension
„ 466
.155 000
000
1941466
tal All is C mbi e
„5263
41
1/5 6,./, 6
ti
2025 Legislation: 2026 Mid -Biennium budget amdt
Version: 10/8/25
Staff: A. BeMiller
Page 3 of 3
74
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, a
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
Page 4 of 3
75
City of Tukwila
City Council Finance & Governance Committee
Meeting Minutes
October27, 2025 - 5:30 p.m. - Hybrid Meeting; Hazelnut Conference Room & MS Teams
Councilmembers Present:
Staff Present:
. BUSINESS AGENDA
Armen Papyan, Chair; Dennis Martinez, Verna Seal
Aaron BeMiller, Tony Cullerton, Megan Marks, Pete Payer, Laurel
Humphrey
A. Contract for Investment Advisory Services
Staff is seeking approval of a contract with Clearwater Advisors in an annual amount of
$15,000 for investment services.
Committee Recommendation
Unanimous approval. Forward to November 3, 2025 Regular Meeting.
B. Ordinance: 2025 Year -End Budget Amendments
Staff is seeking approval of the annual year - end budget amendments.
Item(s) for follow-up:
• Provide the final cost of the fire engine that was purchased through the interfund loan.
• Provide further detail about the budget impact of $405,000 for the TCC HVAC.
• Provide detail about the 2026 budget for the HR limited -term position.
Committee Recommendation
Unanimous approval pending responses. Forward to November 3, 2025 Regular Meeting.
C. Ordinance: 2026 Mid -Biennium Budget Amendments
Staff is seeking approval of the annual mid -biennium budget amendments.
► Item(s) for follow-up:
• Provide information about the fire station bonds, including the total amount, annual
payment and expiration date.
• Provide information from HR with additional assurance about the city's ability to make a
new position funding -dependent.
Committee Recommendation
Unanimous approval pending responses. Forward to November 3, 2025 Regular Meeting.
76