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Home My WebLink AboutReg 2025-11-03 Item 6C - Ordinance - 2025 Year-End Budget AmendmentsCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's revieav Council revieav 11/3/25 AB ITEM INFORMATION ITEM No. 6.C. STAFF SPONSOR: AARON BEMILLER ORIGINAL AGENDA DATE: 11/3/25 AGENDA ITEM TITLE An ordinance adopting 2025 year-end budget amendments. CATEGORY ® Discussion Mtg Date 10/20/25 ❑ Motion Mtg Date ❑ Resolution Mtg Date Ordinance Mtg Date 11/10/25 ❑ Bid Award Mtg Date ❑ Public Heating Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ❑ P&R ❑ Police ❑ PIV SPONSOR'S SUMMARY Approval of Administrative Budget Amendments. 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. REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety E] Finance Comm. ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 10/27/2025 COMMITTEE CHAIR: PAPYAN RECOMMENDATIONS: SPoNsoR/ADMIN. Finance Department COMMIIIEE Unanimous Approval; Forward to the 11/03 Regular Meeting Agenda COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED $ APPROPRIATION REQUIRED $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION MTG. DATE ATTACHMENTS 11/3/25 Informational memo dated 10/27/25 Presentation Draft ordinance (revised after Committee) Minutes from the 10/27 Finance & Governance Committee Meeting 85 86 City 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. 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. Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 87 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 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 Fiscal Summary 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 Recommendation Approve the 2025 Year -End Budget Amendment Ordinance to formally adopt the listed adjustments. Next Steps 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 RCW 35A.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 2026 Revenues and Appropriations. The totals of the estimated revenues and appropriations for the General Fund and the aggregate totals are as follows: 2025 Legislation: 2025 year-end budget amendment Version: 10/29/25 Staff: A. BeMiller Page 1 of 5 95 AMOUNTS ARE SUBJECT TO CHANGE DURING BUDGET PROCESS und La Ince* ted 25 Ad pted III Ind Fund 3nce (7enera1 „IIIIIIII.i.10„(1„.„1„„5.5„.„,,(101,1r55ri53/ /,54 /,328 i»ir7:1c,..1.1.....11-...licA:EA/Motel Tax 3 72P "1 06 "1 047 750 i.urE r 155719 JEE1.1.11..c.15. I»UnCI 21.3 Bonds 494,144 4,9( 113/1115111. 4,359„134 055 9()"7 „igar,i„ „IIIIIII1111(1„.„3„(15„.„:„.„IIIIgiIgti(1lggfetyIBIgt1 "10 254 836 lH'u i.urE 412 ,'„ii.urf 1 / 1518315 „IIIIIleiglac;ergelgt 1,9311,334 3 454 472 (58,2(2) 1,4".i5"2„14/3/ • „gIIII31,3sg„(.LII!(IIIgIIAACIlIIIIII„igergE.1irgg „1,:ull„ggirc;„,ls 9 6 2025 Legislation: 2025 year-end budget amendment Version: 10/29/25 Staff: A. BeMiller Page 2 of 5 Fund Estimated Beginning Fund Balance Budgeted Revenues Budgeted Expenditures Estimated Ending Fund Balance 000 General 15,564,070 154,29+2,479 153,573,762 16,282.,787 101 Hlotell/Motel 3,410,8170 11,945,500 2,677,„822 2,578,5448 103 CityStreet: 1,858,573 5,999,000 5,803,,000 2,054,573 104 Arterial Street, 5,278834 16,162�8802, 118,077,,377 3,829,459 105 Contingency 7,304,961 470,639 0 7,775,600 109 Drug Seizure Fund 304,562 196,230 1446,,000 3:54,762 2xx LTGO Debt Service Funds 0 9,4811,650 9,481,„650 0 213 IJTGO Bonds 479,7081 9,1610,000 9,991 200 98,508 2006 LIID Gnar'ant)r 799,243 16,000 0 81115,243 233 2013 LID 5134499 093880 937,,000 51114,499 301 Land Acquisition, Recreation Park rim, 4,130,437 9,006,990 114,329841 2:,8116,586 303 General Government I m orovermients 324,512 840,000 938,„860 226,512 304 Fire limprovernents 0 1200,000 1,200,000 0 305 Public Safety Plan 1,056,573 2,230,000 2636,„673 649,900 30,6 City Facilities 422,811 2„693,874 1,32:5,„233 1,291,4447 401 Water 4174,701 21,596,192 23,11 r,„822 2,653,071 482 Sewer 10 310,151 25,6291 2 33,381,,410 2,557,803 411 Foster Golf Course 2,024,196 5,575,000 6,262049 1,337,147 412 Surface Water 10,866,876 29,720,677 33,868,„824 6,71119,529 501 Equipment Rental 1368,659 12,307,228 111,104,„567 3,01101,320 502 Insurance Fund 33903,651 17,257,744 113,640,396 7,01110 999 503 Insurance - LELO^FF 1 Fund 36,695 1 065,499 1,021,„856 80,338 611 Firemen's Pension 1,722,466 .310,000 164,000 1,868,466 Total 375,786,0448 3329,01 ,736 '3348,1 A:'s,687 3644,627,.097 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 2025 Legislation: 2025 year-end budget amendment Version: 10/29/25 Staff: A. BeMiller Page 3 of 5 97 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 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 Attachment: City of Tukwila 2025-2026 Year -End Budget Amendment 98 2025 Legislation: 2025 year-end budget amendment Version: 10/29/25 Staff: A. BeMiller Page 4 of 5 Cfty f ""t LI kw 2025-2026 Yea Budget Am end m ent Expondlitiros d Adoted_ ExPenditurgs f!rQPslsed__ ExPenditurgs tliffe Ire In c e 'do DiffelreInce Notes Ninsfeo t uind 402 (,)f Sewell II nt eo fund 6 663 000 4,068,000 Ninsfeo t uind 303 fc)o „I[3„e„newar„ Ninsfeo t Geneo uind rcyl (11r,)stLlio e (,)f thus ruind Llinal b03 II II ()II II II Self lIns 6rrrar90.3„.„ One° e,..ise expendotw fc)11 oiloscell,„inecyLlis II II ()II oetooee expendotw r tat AIR u olds HIbinled /,43 ,b34 'do des d Adoted_ ftemenute.s..... f!rQPslsed__ fievainuas._ tliffe Ire In c e DiffelreInce Notes II,..insfeo folr,)Ilii (11r,)stLlio e (,)f und 302 II Lund 303 GeneNil Cove° n °lien t °nip 4011,000 101 00/10 Ninsfeo t uind 303 fc)o II,.insfeo folr,)ni oep,..iynient of Sewell II nt eo fund r tat Alt III uunds 2025 Legislation: 2025 year-end budget amendment Version: 10/29/25 Staff: A. BeMiller Page 5 of 5 99 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. 100