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HomeMy WebLinkAboutFIN 2025-11-24 COMPLETE AGENDA PACKETCity of Tukwila Finance and Governance Committee O Armen Papyan, Chair O Dennis Martinez O Verna Seal AGENDA Distribution: A. Papyan D. Martinez V. Seal T. Sharp Mayor McLeod M. Wine A. Youn L. Humphrey MONDAY, NOVEMBER 24, 2025 — 5:30 PM ON -SITE PRESENCE: TUKWILA CITY HALL HAZELNUT CONFERENCE ROOM 6200 SOUTHCENTER BOULEVARD REMOTE PARTICIPATION FOR THE PUBLIC: 1-253-292-9750, ACCESS CODE: 441656166# Click here to: J in Micr s ftv"Teams IMeetIinU.1i For Technical Support: 1-206-433-7155 Item Recommended Action Page 1. BUSINESS AGENDA a. Resolution Amending the Change Fund Level a. Forward to 12/1 Regular Pg.1 Valerie Marino, Deputy Court Administrator Meeting Consent Agenda b. Ordinance Updating Equity and Social Justice b. Forward to 12/15 Regular Pg.5 Commission Membership Meeting Consent Agenda Laurel Humphrey, Council Analyst c. Ordinance Recodifying & Enacting new Tukwila c. Forward to 12/8 C.O.W. & Pg.9 Municipal Code (TMC) 12/15 Regular Mtg Andy Youn-Barnett, City Clerk d. An Ordinance Amending the Business & Occupancy Tax d. Forward to 12/8 C.O.W. & Pg.15 Adam Schierenbeck, Acting Fiscal Manager 12/15 Regular Mtg e. October Monthly Financial Report e. Discussion only Pg.49 Tony Cullerton, Deputy Finance Director 2. MISCELLANEOUS Next Scheduled Meeting: December22, 2025 1 The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk©TukwilaWA.gov) for assistance. City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Governance Committee FROM: Trish Kinlow, Judicial Branch Administrator BY: Valerie Marino, Deputy Judicial Branch Administrator CC: Thomas McLeod DATE: November 6, 2025 SUBJECT: Change in Change Fund Level ISSUE Since the beginning of 2025, the court has experienced a significant increase in case filings, which has led to higher volume of cash payments. Many customers are paying with $100 bills, depleting the court's change funds more quickly than in previous years. BACKGROUND The court currently maintains two change cash tills, containing $150, for a total of $300. ANALYSIS Due to the increased need for change, staff must make multiple trips to the bank each week to replenish the tills. This creates operational inefficiencies and additional workload. FINANCIAL IMPACT An increase of $300 to the existing change cash fund. RECOMMENDATION The court recommends increasing the total change cash fund $300 to $600. Each till would be increased from $150 to $300. We request the Committee forward this item to the December 1, 2025, Regular Council Meeting Consent Agenda ATTACHMENTS Draft Change Fund Level Resolution A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, INCREASING CHANGE FUNDS TO REFLECT CHANGING CITY OPERATIONS AND IMPROVE OPERATIONAL EFFICENCIES; AND REPEALING RESOLUTION NO. 2094. WHEREAS, the Tukwila City Council previously established Change Fund and Petty Cash Fund levels for various City departments by Resolution No. 2094, passed on May 6, 2024; and WHEREAS, there is now a need to increase the Change Fund level for the Tukwila Municipal Court to reflect changes in court processes to improve operational efficiencies; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The Change Fund levels are hereby set as follows: Finance Department Water Fund 401 $ 400.00 Municipal Court General Fund 000 3.0600.00 Parks and Recreation General Fund 000 $350.00 Parks and Recreation (Golf Course) Foster Golf Course Fund 411 $200.00 Police Department General Fund 000 $500.00 (or less as needed) Section 2. The Petty Cash Fund levels are hereby set as follows: Finance Department General Fund 000 $ 300.00 Finance Dept. Witness/Juror Fees General Fund 000 $1,000.00 Police Investigation/Tukwila General Fund 000 $10,000.00 Parks and Recreation General Fund 000 $100.00 Section 3. Resolution No. 2094 is hereby repealed. 2025 Legislation: Change and Petty Cash Version: 11/07/2025 Staff: V. Marino Page 1 of 2 2 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2025. ATTEST/AUTHENTICATED: Andy Youn-Barnett, CMC, City Clerk Tosh Sharp, Council President APPROVED AS TO FORM BY: Office of the City Attorney 2025 Legislation: Change and Petty Cash Version: 11/07/2025 Staff: V. Marino Filed with the City Clerk: Passed by the City Council: Resolution Number: Page 2 of 2 3 4 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Laurel Humphrey, Legislative Analyst CC: Mayor McLeod DATE: November 18, 2025 SUBJECT: Ordinance updating Equity and Social Justice Commission Membership ISSUE The proposed ordinance removes the City Councilmember position and replaces it with a 4tn community member position. BACKGROUND Upon the advice of the City Attorney, no sitting Tukwila Councilmember should also serve on a city board or commission. Under RCW 35A.12.030, a city councilmember may "hold within the city government no other public office or employment." The Washington State Supreme Court defined public office as "a position of authority, duty, or responsibility conferred by a governmental authority for a public purpose or to exercise a public function." Under this definition, city board and commission positions qualify. Further, since city commissions act as advisory bodies to the City Council, holding both roles is also likely a violation of the doctrine of incompatible offices and therefore unlawful. In response to this advice issued earlier this year, sitting and incoming appointed Councilmembers have resigned their commission seats. The Equity and Social Justice Commission is unusual in that its City Council position is included in the Municipal Code as a required part of the membership. The Equity and Social Justice Commission (formerly Equity and Diversity) was championed by the late Joan Hernandez, former City Councilmember, and this position was codified at the direction of the Council at the time. DISCUSSION The draft ordinance removes the City Councilmember position from ESJC in compliance with state law. To retain the same number of members, the position is replaced by an additional community member, which can be a resident or member of the business, non-profit, or faith - based community. There are other ways for Councilmembers to engage with City Commissioners and staff is looking at ways to enhance these relationships in future years. RECOMMENDATION Staff is seeking Committee discussion of the ordinance and a recommendation to forward to the December 15, 2025 Regular Consent Agenda. ATTACHMENTS Draft ordinance 5 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2530 §5, AS CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 2.29.020, "MEMBERSHIP," TO REMOVE THE COUNCILMEMBER POSITION; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the Equity and Social Justice (formerly Equity and Diversity) Commission was established in 1996 and codified as an advisory body to the Mayor and City Council in 1998; and WHEREAS, since its inception, the Commission has included a membership position allocated specifically to a sitting City Councilmember; and WHEREAS, pursuant to RCW 35A.12.030, a "councilmember shall hold within the city government no other public office or employment except as permitted under the provision of chapter 42.23 RCW"; and WHEREAS, because the Equity and Social Justice Commission serves in an advisory capacity to the Tukwila City Council, a Councilmember serving on the Commission is likely in violation of the legal principle commonly known as the doctrine of incompatible offices; and WHEREAS, it is in the best interest of the City of Tukwila that the City Council periodically review and update the functionality of its Commissions to align with state law, the current environment, and best practices; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 2.29.020 Amended. Ordinance No. 2530 §5, as codified at TMC Section 2.29.020, "Membership" subparagraphs A and B, is hereby amended to read as follows: 2025 Legislation: ESJ Commission Membership Version: 11/18/2025 Staff: L. Humphrey Page 1 of 3 6 2.29.020 Membership A. Qualifications. Members must meet at least one of the following requirements: 1. Be a resident of the City of Tukwila. 2. Own or work at a business u�u...0 within the city limits of the City of Tukwila; or 3. Work in the education field in the City of Tukwila. sed r anlireratIIn B. Number of Members. The Commission shall be comprised of nine members. To the extent possible, membership shall be representative of the diversity of the community and should include: 1. Two city employees and one Tukwila City Councilmember (Positions 4-4 and 7). If the City is unable to fill one of its two 2221 Il„ y 2 positions a community member may fill one City ernpll yee position. 2. Three IIp community members that meet the resident_ or business,R.... 0 pip p '1'a:1h-based criteria as stated in TMC Section 2.29.020.A (Positions 1 3, 8, and 9). 3. Three members representing the education field in Tukwila (Positions 2, 5 and 8). If needed, a community member may fill one education field position. Section 2. 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 3. 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 4. 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 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. [signatures to follow] 2025 Legislation: ESJ Commission Membership Version: 11/18/2025 Staff: L. Humphrey Page 2 of 3 7 ATTEST/AUTHENTICATED: Andy Youn-Barnett, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney 2025 Legislation: ESJ Commission Membership Version: 11/18/2025 Staff: L. Humphrey Thomas McLeod, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 3 of 3 8 TO: BY: CC: City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM Finance & Governance Committee Andy Youn-Barnett, City Clerk Mayor McLeod Marty Wine, City Administrator DATE: November 17, 2025 SUBJECT: Recodification of the Tukwila Municipal Code ISSUE The City has been using a legacy format of the Tukwila Municipal Code ("TMC") for several decades and recently completed a conversion to an online format. In alignment with RCW 35A.21.130, this recodification requires an ordinance and public hearing adopting the new TMC. BACKGROUND The City Clerk's Office is responsible for the codification of City ordinances into the City's Municipal Code, as authorized by RCW 35.21.510. As part of the department's efforts to streamline resources, implement process efficiencies, and enhance end -user experience, the Clerk's Office identified codification of the TMC as a key opportunity to improve an existing process while providing enhanced services for both staff and the public. Codification of ordinances is the process by which laws are compiled into an orderly, formal code of all enacted laws currently in force. Staff have codified in-house for decades using a legacy system and maintain 23 individual Titles spanning over 800 pages of code at any given time, depending on the number of ordinances requiring recodification. Recodification is a labor- intensive process, and recent releases have typically occurred within 3-6 months after passage due to archaic processes and a high number of complex, large-scale ordinances needing codification. Delays result in staff, businesses, and the public relying on a code that is out of sync with recently passed ordinances. Earlier this year, the Clerk's Office began work on transitioning our code to an online format, with the goal of modernizing the current TMC, making it more accessible to staff and the public. Following a review of proposals from different vendors, General Code was selected as the most competitive and cost-effective provider for codification services with a comprehensive suite of code features, including: • An online code portal • Regularly scheduled code updates, with an option to expedite updates as needed; • Robust search and user engagement capabilities; and • Translation for more than 100 additional languages; • Data analytics and metrics Staff have worked with General Code over the past few months to transition our legacy code into the new online code portal. The recodification process included standardization of language, correction of scrivener's errors, housekeeping on certain code conflicts and inconsistencies, and Chapter/Section renumbering. The recodification package is now complete, and pursuant to RCW 35A.21.130, staff are bringing forward an enacting ordinance to recodify and enact the new TMC and adopt the recodified version as the formal and official code moving forward. 9 INFORMATIONAL MEMO Page 2 FINANCIAL IMPACT The costs for codification will be paid for through the Technology Fee Fund, and are outlined as follows: One -Time Costs Conversion Fee $2,990 Recurring Costs Annual Maintenance Fee $1,195 Codification Fee Page Tables, Graphics, Charts $24 (per page) $10 (Per item) Based on an internal analysis of codification activity (average number of pages codified annually) over the past 5 years, we anticipate the financial impact to be approximately $5,000 - 10,000 annually, although the cost may vary in years with high legislative activity. RECOMMENDATION In alignment with RCW 35A.21.130, City staff recommend this item be forwarded to the December 8th Committee of the Whole for a first reading and forwarded to the December 15th Regular Meeting for a public hearing and potential adoption. ATTACHMENTS Draft Ordinance Exhibit A — "Recodification Package" 10 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, RECONFIGURING, RECODIFYING AND ENACTING A NEW MUNICIPAL CODE FOR THE CITY OF TUKWILA PURSUANT TO RCW 35A.21.130; REARRANGING AND RENUMBERING TITLES, CHAPTERS, AND SECTIONS; CONFORMING INTERNAL REFERENCES AND CROSS- REFERENCES ACCORDINGLY; PROVIDING TABLES AND INDICES TO FACILITATE LOCATION AND CONVERSION OF CODE REFERENCES AND MATERIAL; ESTABLISHING AN EFFECTIVE DATE OF DECEMBER 23, 2025 FOR THE NEW CITY OF TUKWILA MUNICIPAL CODE HEREIN ADOPTED; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila Municipal Code ("TMC") has been compiled, adopted, effectuated, altered, and amended over several decades; and WHEREAS, the City desires to modernize the TMC from its current legacy, static format to an interactive, online format to align with best practices, facilitate administrative and legislative management of the TMC, enhance accessibility of the TMC for the public and staff, and better serve the public interest; and WHEREAS, the City desires to recodify and republish the TMC to reestablish a coherent numbering and reference system; rearrange and renumber titles, chapters and sections; and update and coordinate numbering and standard referencing of and within the TMC; and WHEREAS, the City has completed that work, which is reflected by and composed of the new Tukwila Municipal Code Recodification Package, attached hereto and available on the City website and in hard copy at the City Clerk's Office; and WHEREAS, RCW 35A.21.130 requires that compilation, codification, and revision of city codes shall conform with RCW 35.21.500 through RCW 35.21.570; and WHEREAS, a first reading was held on December 8, 2025, and a public hearing was held on December 15, 2025; 2025 Legislation: Recodification of TMC Version: 11/18/25 Staff: A. Youn-Barnett Page 1 of 3 11 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Adoption of Findings of Fact. The City Council finds as follows: The above recitals, set forth as "WHEREAS" clauses, are hereby adopted as Findings of Fact in support of the adoption of this ordinance. Section 2. Adoption of Recodified Tukwila Municipal Code. The Tukwila Municipal Code Recodification Package, attached hereto as Exhibit A, is hereby adopted and enacted as the formal and official City of Tukwila Municipal Code and shall be in full force and effect commencing as of 12:01 a.m. on December 23, 2025. As of the effective date, it shall be known and referenced as the Tukwila Municipal Code (TMC) and may thereafter be further amended and modified pursuant to the City's usual procedures and applicable statutes. Section 3. Prior Tukwila Municipal Code Superseded. The prior Tukwila Municipal Code shall be deemed superseded in all respects as of the effective date specified in Section 2 of this ordinance. Section 4. 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 5. 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 6. 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 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: Recodification of TMC Version: 11/18/25 Staff: A. Youn-Barnett [signature page to follow] Page 2of3 12 ATTEST/AUTHENTICATED: Andy Youn-Barnett, 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 Ex-iiiiDit A: "1""ukwilla Municipai Code ..ecod if ication II:Decked. 2025 Legislation: Recodification of TMC Version: 11/18/25 Staff: A. Youn-Barnett Page 3 of 3 13 14 City of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Aaron BeMiller, Finance Director BY: Adam Schierenbeck, Acting Fiscal Manager CC: Thomas McLeod, Mayor DATE: October 27, 2025 SUBJECT: B&O Tax — Amendments to Chapter 3.26 TMC ISSUE The Finance Department is recommending amendments to Chapter 3.26 of the Tukwila Municipal Code (TMC) concerning business and occupation (B&O) tax. The amendments will align the code with the Washington State B&O Tax Model Ordinance and will correct a technical error in the administrative provision pertaining to tax confidentiality. BACKGROUND RCW 35.102.040 requires the City to use the mandatory provisions of the model ordinance developed by Washington cities when imposing a B&O tax. The model ordinance has been amended effective January 1, 2026, in response to Senate Bill (SB) 5814, changing certain activities from the Service and Other Activities tax classification to the Retailing tax classification. Additionally, while the City has adopted an optional provision of the model ordinance relating to public disclosure and confidentiality of tax information, as passed by the City council in Ordinance 2727 effective January 1, 2024, a technical correction is required in this section. DISCUSSION Staff are proposing the following amendments to Chapter 3.26 TMC, which aligns the code with the model ordinance. Definition Changes The definition of "sale at retail" or "retail sale" is being amended to incorporate changes to the taxation of professional services, sales of custom software, customization of prewritten computer software, and sales of digital goods and digital automated services. The definition of "sale at wholesale" or "wholesale sale" is being amended to parallel updates to the definition of retail sale pertaining to custom software or customization of prewritten software. These changes will result in the following activities being classified as retail sales: •Advertising services; • Live presentations; • Information technology services; •Custom website development services; • Investigation, security, and armored car services; •Temporary staffing services; and •Sales of custom software and customization of prewritten software. 15 INFORMATIONAL MEMO Page 2 Tax Confidentiality TMC section 3.27.220 establishes safeguards for protecting tax information from public disclosure. Subsection (F) of this section explains the repercussions if tax information is improperly disclosed. This subsection is being amended to state that such repercussions apply to employees of the City, whereas it formerly cited employees of the state in error. Financial Impact The business activities impacted by this change have, to date, been taxable under the Service and Other Activities tax classification at a rate of 0.00085. The gross income derived from such services is allocated to Tukwila using a two -factor apportionment method which takes both the company's payroll costs and the customer's location into account. Beginning, January 1, 2026, gross income derived from the business activities that are impacted will be subject to tax under the Retailing classification at a rate of 0.0005 and will be allocated to Tukwila solely based on the location where the activity takes place. Furthermore, the changes may impact only a portion of a company's business activities. The information available to the City, namely amounts reported on tax returns previously filed and information provided on the business license application concerning the business activities of the taxpayer, is not sufficient to determine the financial impact of these changes. FINANCIAL IMPACT Due to the reasons cited above, the financial impact cannot be determined based on the information available. However, the code changes are not expected to have a significant financial impact on B&O tax revenues. RECOMMENDATION The Council is being asked to approve the ordinance and consider this item at the December 8, 2025 Committee of the Whole Meeting and subsequent December 15, 2025 Regular Meeting. ATTACHMENTS A - Draft B&O Tax Ordinance B - 2026 B&O Tax Model Ordinance C - AWC 2026 Changes to Model Ordinance Fact Sheet 16 Attachment A AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; AMENDING ORDINANCE NO. 2689 §5, AS CODIFIED AT TUKWILA MUNICIPAL CODE (TMC) SECTION 3.26.040, "DEFINITIONS"; AMENDING ORDINANCE NO. 2726 §11, AS CODIFIED AT TMC SECTION 3.27.220; TO ADOPT UPDATED REGULATIONS IN ACCORDANCE WITH THE MODEL ORDINANCE; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE WHEREAS, RCW 35.102.040 requires the City to adopt the mandatory provisions of the model ordinance developed by Washington cities when imposing a business and occupation tax; and WHEREAS, the definition in RCW 82.04.050 for "sale at retail" or "retail sale" and the definition in RCW 82.04.060 for "sale at wholesale" or "wholesale sale" were amended by Senate Bill 5814, resulting in changes to Washington's model ordinance; and WHEREAS, the City has adopted an administrative provision relating to public disclosure and confidentiality of tax information, which requires a technical correction; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 3.26.040 Amended. Ordinance No. 2689 §5, as codified at TMC Section 3.26.040, "Definitions," subparagraph U, is hereby amended to read as follows: 3.26.040 Definitions U. "Sale at retail," "retail sale" 1. "Sale at retail" or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal 2025 Legislation: B&O Tax Ordinance Version: 11/14/25 Staff: A. Schierenbeck Page 1 of 9 17 property of or for consumers, other than a sale to a person who presents a resale certificate under RCW 82.04.470 and who: a. Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person; or b. Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or c. Purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale; or d. Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or e. Purchases for the purpose of providing the property to consumers as partcompetitivep V.......r. The term shall of tele hone service as defined in R W 82.04.065 include every sale of tangible personal property which is used or consumed or to be used 66 99 sale" even though such property is resold or utilized as provided in TMC Section 3.26.0'10.U.1.a, b, c, d, or c following such use. f. Purchases for the purpose of satisfying the person's obligations under an extended warranty as defined in TMC Section 3.26.010.U.7s. Il sppail!h ...................:......tII: !V. .silo ,,,, if such tangible personal property replaces or becomes an ingredient or component of property covered by the extended warranty without intervening use by such person. ...Il...11 e term shall II ell de evety sells f taus Iibllle peu s perty whIIchlis used u c nsumed �u t be used r c nsumod lin the perf rmance ny, act IIvIIty defMEd as a at rel IIIII99 .. p u .. v a r u II (a)(II) i lh r ugh II II 0003 0:0II(. (.'0/ ( V.sn..,u(...h 2u c.)?(...0 tu003 u vli �V II Iis s bseetliVwIIna such . se.. "the term allsmeans even sane danIbIle :rers:rr part t ,pars ns engaged lM an busMess that lis taxalbllc under ROW 82.011.280 1 a and 82.011.290 and 82.044.2908.. 2. !!Sale at retail" or "retail sale" also means every sale of tangible personal property to persons engaged in any business activity which is taxable under TMC Section 3.26.050.A.7. 2025 Legislation: B&O Tax Ordinance Version: 11/14/25 Staff: A. 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II IL, a,.,u ., II II aa......, a...., a.. ,, a .., P V. 1 II lhospiitaIls Iliicensed under cIIiapte '70:4.1 •r .11 „12 II'ZCW Ir r Ilim iitod eriods ..1 films . supliemeit their w.rlkf rco and Mille io uiioit vacancies •u'a a c ntract.r.1.u- .00 basis., :..............Advertising servlicos.. o it the" a" pa,.uurpo:sai:;s of d:Ito IIs s il..,uesa.. ciruou a ( "amdye a tILSIIII°.ag SEu )/uCE!, u1l,.a( 2Ill S an digitall and nond'ii i alll services rolladtod dt. the c oatii „Jgreparatlloh„„igr duJetllloh •u dissemination ..f adveuklisemeunts liuiclludlin V i t ui.t Illim red dt.: A. I....a .t t 0 auk diIIrectooIi rap, lh II desii ui a cll:2 0lig11 rug r a dii©ua u.ductii©ui stipeuviisii©ui lllacoiioit rororralls ac uisition f advert siosg space,,,,,,,,and rouidoroui advice c ncerning the best methods .f adyertisii2g or ducts .r services, and l:i „ °Mllliune rororralls soarclh engine marketing,.and Ileac generation •pdtlllmll °atli©ui web campaign ui pllauiuilini the accitlisition .f advertising space liui the liuitoruiot uiiodlia quid the ull©uilidt.ronquid ovalluatli©ui ..f website traffic .Ir.0 ::rtlii r.sos .f determining,the effectiveness .f an adveuklisliuia caiipai ui. A. Welb hostllogg sehillees and d.0 liu1 name a listu tllo'a II . S e u +li lees rendered liana respect t tlhe f•Illlowliui Vaa am aau VaalCun u V liu°.a Ill:, I:° hntllill a ulbIIllisll ll rip under II: O82 ..28 u R«a!d110 and teevll„w,ll0n II"oadorn'"tIIII'ig milltInlln th II S '"tate gin'" defined in ROW 82.0I sec o.ui 1 chapter2 Il.... ws •f 2025)„. u Services rendered in ros ct dt. .ut...©.r...dli.me advouklislig II1 i.t lllng„ 113ll11111b.ard advertisiuia sVoot.riruiid;uro advertising, transit advertisini : iace...dV asod 2025 Legislation: B&O Tax Ordinance Version: 11/14/25 Staff: A. Schierenbeck Page 3 of 9 19 advehfishioch such as liui..st.rc ospOay advcuklislin.0 :s•liuit...c.r...sallc advehfisOngiodynamOc .0 staliik stgnagop at Illivc events namOng ro hits and'fixed signage advcukiisiini . Out...cr...11icuiic advcukliship d.cs ui.t IiuicVudc &'liuoct a alill .0 .f.. ,....iivc srcscuitatii.uis iuicVudliui but n t Ilia litcd . loctures sou iinars w,rkslli,:rs •r c,urscs where :saukiicipants attend clitllicr On :rcrs•ur vlia the liuitcruict •r telec mununOcalbons csulipment that aIlllows auc fence members and the presenter .0 nstruct.r t.00dtve..ofccclivc and d'iiscuss Oaf ,ru atoi wlitlh each .tIlicr On rcall tiiuiic.. f o the Jaym.scs rs t u s.s III and c t lis ss.sllessc tlicu s V:II V:( m-u'ru, 4 mII mV: a V-. 00I0„ and u(. V.2ull S20(:1:':':d dO Oat uu1s.,Illui(. a sale between members fu'"s rsffullurstc' ugp as defined uu'"s 44. "Sale at retail" or "retail sale" shall include the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following: a. The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of coin -operated laundry facilities when such facilities are situated in an apartment house, rooming house, or mobile home park for the exclusive use of the tenants thereof, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects; b. The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and shall also include the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture; c. The charge for labor and services rendered in respect to constructing, repairing, or improving any structure upon, above, or under any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such construction, repair, or improvement for the purpose of performing such construction, repair, or improvement and the property is then reconveyed by title, possession, or any other means to the original owner; d. The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing or moving of existing buildings or structures, but shall not include the charge made for janitorial services; and for purposes of this section the term "janitorial services" shall mean those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery. The term "janitorial services" does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal or sandblasting; 2025 Legislation: B&O Tax Ordinance Version: 11/14/25 Staff: A. Schierenbeck Page 4 of 9 20 e. The sale of or charge made for labor and services rendered in respect to automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under chapter 82.16 ROW; f. The sale of and charge made for the furnishing of lodging and all other services, except telephone business and cable service, by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same. For the purposes of this subsection, it shall be presumed that the sale of and charge made for the furnishing of lodging for a continuous period of one month or more to a person is a rental or lease of real property and not a mere license to enjoy the same; g. The installing, repairing, altering, or improving of digital goods for consumers; h. The sale of or charge made for tangible personal property, labor and services to persons taxable under TMC Section 3.26.040.U.3.a, b, c, d, e, f, and g when such sales or charges are for property, labor and services which are used or consumed in whole or in part by such persons in the performance of any activity defined as a "sale at retail" or "retail sale" even though such property, labor and services may be resold after such use or consumption. Nothing contained in this section shall be construed to modify TMC Section 3.26.040.U.1 and nothing contained in TMC Section 3.26.040.U.1 shall be construed to modify this subsection. 4. "Sale at retail" or "retail sale" shall also include the providing of competitive telephone service to consumers. 56. "Sale at retail" or "retail sale": a. "Sale at retail" or "retail sale" shall also include the sale of prewritten software oust m sf ware and cu st 11-no alto n 1 :rrewntton cu :ru tor sf ware a cIns„iinen other than a sale to a person who presents a resale certificate under RCW 82.04.470, regardless of the method of delivery to the end user. For the purposes of this subsection (aa)(q), the sale of prewritten computer software includes the sale of or charge made for a key or an enabling or activation code, where the key or code is required to activate prewritten computer software and put the software into use. There is no separate sale of the key or code from the prewritten computer software, regardless of how the sale may be characterized by the vendor or by the purchaser. The term "sale at retail" or "retail sale" does not include the sale of or charge made for: Custom software; or ii. The customization of prewritten software. b. . The term '1:S20(0000 at: 00 mllfiiiir also includes the charge made to consumers for the right to access and use prewritten computer software,,,,,,sust„,,,pT siwau e and cm.msin f prewntten cmputer siwau e where possession of the 2025 Legislation: B&O Tax Ordinance Version: 11/14/25 Staff: A. Schierenbeck Page 5 of 9 21 software is maintained by the seller or a third party, regardless of whether the charge for the service is on a per use, per user, per license, subscription, or some other basis. (iii.) A. The service described in TMC Section 3.26.0'10.U.5.b(ID.)..(j)....:( th..Its.......sbspst!L !I (6) includes the right to access and use prewritten software.,,. oust io s,rtware aid cusdt,u rrewrotdten c.0 pudter s,.rdtware to perform data processing. 44 ...................II (—................For the purposes of TMC Section 3.26.0'10.U.5.b(i):(II:!s spisss(iip'......(..II,....(.ii..i..., "data processing" means the systematic performance of operations on data to extract the required information in an appropriate form or to convert the data to usable information. Data processing includes check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities. ▪ '. "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state, the State of Washington, or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind. ▪ . "Sale at retail" or "retail sale" shall also include the sale of or charge made for an extended warranty to a consumer. For purposes of this subsection, "extended warranty" means an agreement for a specified duration to perform the replacement or repair of tangible personal property at no additional charge or a reduced charge for tangible personal property, labor, or both, or to provide indemnification for the replacement or repair of tangible personal property, based on the occurrence of specified events. The term "extended warranty" does not include an agreement, otherwise meeting the definition of extended warranty in this subsection, if no separate charge is made for the agreement and the value of the agreement is included in the sales price of the tangible personal property covered by the agreement. g9. "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter 35.82 RCW, including the installing, or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation (government contracting). 10. "Sale at retail" or "retail sale" shall not include the sale of services or ..................................... charges made for the clearing of land and the moving of earth of or for the United States, any instrumentality thereof, or a county or city housing authority. Nor shall the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other byproducts of weapons production and nuclear research and development. 2025 Legislation: B&O Tax Ordinance Version: 11/14/25 Staff: A. Schierenbeck Page 6 of 9 22 1 1. "Sale at retail" or "retail sale" shall not include the sale of or charge made for labor and services rendered for environmental remedial action. 124. (s) "Sale at retail" or "retail sale" shall also include the following sales to consumers of digital goods, digital codes, and digital automated services: Sales in which the seller has granted the purchaser the right of permanent use; „iiii. Sales in which the seller has granted the purchaser a right of use that is less than permanent; „iiii. Sales in which the purchaser is not obligated to make continued payment as a condition of the sale; and d v. Sales in which the purchaser is obligated to make continued payment as a condition of the sale. .(IVY), A retail sale of digital goods, digital codes, or digital automated services under TMCthis subsoctii r .....(12,,,,,) includes any services provided Section 3.26.O'IO.U.5 b 2 I: i by the seller exclusively in connection with the digital goods, digital codes, or digital automated services, whether or not a separate charge is made for such services. c . A ratalill sane ..f c li fall .ode c li fall codes r aut, hated services 0.es f include the f,Ill ,wing services lif the sane cad's between members ,.I are affiliated r.up as defined lira [ROW 82.04.299 t 0 Any service that zimarilly, inv.Ilved the a:r:rlllicIIhur art c.ff.rt by the sellller, and the IIhur art c.ff. t.ro liriafed after the dust mer re s.sesfed the servlice f,.livc :sresentatii,ris such as Ilectures seminars, w,rkslli,ps c,urses where :sartiicii::sarits are c.ririected t ther Jaarticipants via the linterrief tolled •r1r uniicatli•is equipment, ernt which all ws audience members ers and the presenter instruct faygivezeceiveyand discuss lint,rr-ratii,rs with each .flea in real time.; d e irtlii s lii ri services„„ sr r..0 r' c:d r,r 1 p. r�, , V y ...a, y V �/ r �...., ., r r r �.. «s r � .. «s II II .. �., r �� r �...... �V r r �.. �., t II r a... II «s V.�.. �V V.�.. V.II� �.. �., r �.. «sV. r �., r � � r a... � �..� r �..� d.r a., r y dlissemiinatii.rs .f advertiiserirerits.. Advehising services include lay.ut art dlircsfli.r r a:rllilic design.. mechanical reparatii.ri rr.ductli.ri su ervlisli•ri placement, and p...a V ...7I co V dp...a a - ...,!, ..T Vd ,^ V a ^; .a! ids r � � tl� r� r r r � a...... �:�� tl �/ r �., .., d.a....... �:� �.. II r a....... r � d. �., ., r � �...., r r � r r � a...... 'the! IL, �.., ., d. r r r a....... d.V r a........,tl ., a....... $ �..� .,tl �/ �.., r t r ., r r � a...... that �.. II r a....... n d... sf,ducts •r serviices.. Advertisiosd services allsrilllir1e rcfcrralls search eri Brie marketing and (lead generati.ri ptimizati s„,,,,,,,web campaign planning,.the ac �.lislifli�rs �f advehisiosg space in the linterrief rirediia and the m•nit .ring and evalluatii.ri ..f website traffic r :ru r p.ses •.f determining the effectiveness •.f are advertising carer :sail ro.. Advertisiosg services d. rs•t include web IIn.sting services and d.main mare re iistratiiori and iiv.. lidata processing..services„„ r r,ur 2.2 fiiii"" cll. VV.°rli rui r dessing servrrcer r r(..«sr as «s ,,,brimarilly, «sr..,uV.or r r«sr vrs...e pr ovr(,„ V�.s�V V�� «s Ilr..,usrr fi r ()tier r aniizatlin where e the primary.III act f the serviice lip the s stematlic :seater r sarice •f er atlir s ny the servslice J2r•vli'er n data ss.s:s:slllie' lire wll •le r lire part t ny the c . st•r-rer t. r • r 2025 Legislation: B&O Tax Ordinance Version: 11/14/25 Staff: A. Schierenbeck Page 7 of 9 23 extract the rc ulircd Oaf ,rmatl n liui an appr phatc or.uu .0 t• c• vet the data . usaIV llc Oaf ru adli•u . Il:::)ata pr cessOng scrvliacos lincOudc check :rr•ccsslin Omagepr.ccssliui oo,of,rm .IL.....u....•.......c......c.......s.......s......l...n.0�...........s.......u.......uv........cy ..........Vr.............c......c.......s......s.......O...oi0.., .........pa ur......................1rr•.......c......c.......s.......s......l...i0�........c.......la...........................r...r...•.......c......c.......s......s.......l...i0�...........a.........i.....d................s.......l.............l...la........r.. achvliflics.. Il:::)a#a :rr•ccsslin d.cs n t lincllu do the scuvliacc dcsachbed su bsocfli,n(6)().f fll1lis soofli•u1. ( For purposes of this subsection, "permanent" means perpetual or for an indefinite or unspecified length of time. A right of permanent use is presumed to have been granted unless the agreement between the seller and the purchaser specifies or the circumstances surrounding the transaction suggest or indicate that the right to use terminates on the occurrence of a condition subsequent. 132.. "Sale at retail" or "retail sale" shall also include the installing, repairing, altering, or improving of digital goods for consumers. Section 2. TMC Section 3.26.040 Amended. Ordinance No. 2689 §5, as codified at TMC Section 3.26.040, "Definitions," subparagraph V, is hereby amended to read as follows: 3.26.040 Definitions "Sale at wholesale," "wholesale sale" means any sale of tangible personal property, digital goods, digital codes, digital automated services, prewritten computer software, cust .......Im......s.......... : t ... , .............�...:... ..II......f...V'..."::...............t...t....e............c..................Vf..::t "..... t 2" ......or services described in TMC Section 3.26.040.U.5.b.i, which is not a retail sale, and any charge made for labor and services rendered for persons who are not consumers, in respect to real or personal property and retail services, if such charge is expressly defined as a retail sale or retail service when rendered to or for consumers. Sale at wholesale also includes the sale of telephone business to another telecommunications company as defined in RCW 80.04.010 for the purpose of resale, as contemplated by RCW 35.21.715. Section 3. TMC Section 3.27.220 Amended. Ordinance No. 2726 §11, as codified at TMC Section 3.27.220, "Public Disclosure — Confidentiality — Information Sharing," subparagraph F, is hereby amended to read as follows: F. Any person acquiring knowledge of any return or tax information in the course of his or her employment with the City and any person acquiring knowledge of any return or tax information as provided under subsection ©O(4), (5), (6), (7), (8), (9), or (11) of this section, who discloses any such return or tax information to another person not entitled to knowledge of such return or tax information under the provisions of this section, is guilty of a misdemeanor. If the person guilty of such violation is an officer or employee of the stateiit, such person must forfeit such office or employment and is incapable of holding any public office or employment in this city for a period of two years thereafter. Section 4. 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. 2025 Legislation: B&O Tax Ordinance Version: 11/14/25 Staff: A. Schierenbeck Page 8 of 9 24 Section 5. 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 6. 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 on January 1, 2026, 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-Barnett, 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: B&O Tax Ordinance Version: 11/14/25 Staff: A. Schierenbeck Page 9 of 9 25 Attachment B Model Ordinance Final revised version of the City model ordinance for business & occupation tax. Dated October 2025. The legislative intent information contained in the boxes indicates the intent of the ordinance and provide guidance for courts and administrators in the uniform interpretation of the ordinance. They should not be adopted as part of the ordinance, but as a supporting document to the ordinance. While the tax provisions of this chapter are intended to provide a uniform methodology for levying a gross receipts tax on business entities, nothing in this chapter should be construed as limiting a city's ability to levy and collect a business privilege tax on any other basis; such as a tax on square footage, a tax on annualized full-time equivalents [head tax], graduated annual license tax, or any other tax calculated on a basis other than a gross receipts tax [gross income of the business, gross proceeds of sales, or value of products multiplied by rates.] MODEL ORDINANCE CHAPTER .010 Purpose. [CITY MAY ENACT A "PURPOSE PROVISION" IN THIS SECTION.] .020 Exercise of revenue license power. The provisions of this chapter shall be deemed an exercise of the power of the City to license for revenue. The provisions of this chapter are subject to periodic statutory or administrative rule changes or judicial interpretations of the ordinances or rules. The responsibility rests with the licensee or taxpayer to reconfirm tax computation procedures and remain in compliance with the City code. Legislative intent information This section implements Washington Constitution Article XI, Sec. 12 and RCW 35A.82.020 and 35A.11.020 (code cities); 35.22.280(32) (first class cities); RCW 35.23.440(8) (second class cities); 35.27.370(9) (towns), which give municipalities the authority to license for revenue. In the absence of a legal or constitutional prohibition, municipalities have the power to define taxation categories as they see fit in order to respond to the unique concerns and responsibilities of local government. See Enterprise Leasing v. City of Tacoma, 139 Wn.2d 546 (1999). It is intended that this model ordinance be uniform among the various municipalities adopting it. .028 Administrative Provisions. The administrative provisions contained in chapter shall be fully applicable to the provisions of this chapter except as expressly stated to the contrary herein. .030 Definitions. In construing the provisions of this chapter, the following definitions shall be applied. Words in the singular number shall include the plural, and the plural shall include the singular. "Business." "Business" includes all activities engaged in with the object of gain, benefit, or advantage to the taxpayer or to another person or class, directly or indirectly. (Mandatory) "Business and occupation tax." "Business and occupation tax" or "gross receipts tax" means a tax imposed on or measured by the value of products, the gross income of the business, or the gross proceeds of sales, as the case may be, and that is the legal liability of the business. (Mandatory) "Commercial or industrial use." "Commercial or industrial use" means the following uses of products, including by-products, by the extractor or manufacturer thereof: (1) Any use as a consumer; and (2) The manufacturing of articles, substances or commodities; "Delivery" means the transfer of possession of tangible personal property between the seller and the buyer or the buyer's representative. Delivery to an employee of a buyer is considered delivery to the buyer. Transfer of possession of tangible personal property occurs when the buyer or the buyer's representative first takes Page 1 26 Model Ordinance October 2025 physical control of the property or exercises dominion and control over the property. Dominion and control means the buyer has the ability to put the property to the buyer's own purposes. It means the buyer or the buyer's representative has made the final decision to accept or reject the property, and the seller has no further right to possession of the property and the buyer has no right to return the property to the seller, other than under a warranty contract. A buyer does not exercise dominion and control over tangible personal property merely by arranging for shipment of the property from the seller to itself. A buyer's representative is a person, other than an employee of the buyer, who is authorized in writing by the buyer to receive tangible personal property and take dominion and control by making the final decision to accept or reject the property. Neither a shipping company nor a seller can serve as a buyer's representative. It is immaterial where the contract of sale is negotiated or where the buyer obtains title to the property. Delivery terms and other provisions of the Uniform Commercial Code (Title 62A RCW) do not determine when or where delivery of tangible personal property occurs for purposes of taxation. (Mandatory) "Digital automated service," "digital code," and "digital goods" have the same meaning as in RCW 82.04.192. (Mandatory) "Digital products" means digital goods, digital codes, digital automated services, and the services described in RCW 82.04.050(2)(g) and (6)(b). (Mandatory) "Eligible gross receipts tax." The term "eligible gross receipts tax" means a tax which: (1) Is imposed on the act or privilege of engaging in business activities within section .050; and (2) Is measured by the gross volume of business, in terms of gross receipts and is not an income tax or value added tax; and (3) Is not, pursuant to law or custom, separately stated from the sales price; and (4) Is not a sales or use tax, business license fee, franchise fee, royalty or severance tax measured by volume or weight, or concession charge, or payment for the use and enjoyment of property, property right or a privilege; and (5) Is a tax imposed by a local jurisdiction, whether within or without the State of Washington, and not by a Country, State, Province, or any other non -local jurisdiction above the County level. (Mandatory) [Comment: This definition is worded slightly different from the state's definition (RCW 82.04.440) in that it goes into more detail in describing what constitutes an eligible gross receipts tax. In addition, it makes it very clear that an eligible gross receipts tax for which a credit can be calculated must be imposed at the local level.] "Engaging in business" — (1) The term "engaging in business" means commencing, conducting, or continuing in business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business. (2) This section sets forth examples of activities that constitute engaging in business in the City, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimis business activities in the City without having to register and obtain a business license or pay City business and occupation taxes. The activities listed in this section are illustrative only and are not intended to narrow the definition of "engaging in business" in subsection (1). If an activity is not listed, whether it constitutes engaging in business in the City shall be determined by considering all the facts and circumstances and applicable law. (3) Without being all inclusive, any one of the following activities conducted within the City by a person, or its employee, agent, representative, independent contractor, broker or another acting on its behalf constitutes engaging in business and requires a person to register and obtain a business license. (a) Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the City. (b) Owning, renting, leasing, using, or maintaining, an office, place of business, or other establishment in the City. (c) Soliciting sales. Page 2 Model Ordinance October 2025 27 (d) Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance. (e) Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf. (f) Installing, constructing, or supervising installation or construction of, real or tangible personal property. (g) Soliciting, negotiating, or approving franchise, license, or other similar agreements. (h) Collecting current or delinquent accounts. (i) Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials. (j) Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system services, surveying, and real estate services including the listing of homes and managing real property. (k) Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians. (I) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings. (m)Training or recruiting agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the City, acting on its behalf, or for customers or potential customers. (n) Investigating, resolving, or otherwise assisting in resolving customer complaints. (o) In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place. (p) Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf. (4) If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person's behalf, engages in no other activities in or with the City but the following, it need not register and obtain a business license and pay tax. (a) Meeting with suppliers of goods and services as a customer. (b) Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions. (c) Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf. This provision does not apply to any board of director member or attendee engaging in business such as a member of a board of directors who attends a board meeting. (d) Renting tangible or intangible property as a customer when the property is not used in the City. (e) Attending, but not participating in a "trade show" or "multiple vendor events". Persons participating at a trade show shall review the City's trade show or multiple vendor event ordinances. (f) Conducting advertising through the mail. (g) Soliciting sales by phone from a location outside the City. (5) A seller located outside the City merely delivering goods into the City by means of common carrier is not required to register and obtain a business license, provided that it engages in no other business activities in the City. Such activities do not include those in subsection (4). The City expressly intends that engaging in business include any activity sufficient to establish nexus for purposes of applying the tax under the law and the constitutions of the United States and the State of Washington. Nexus is presumed to continue as long as the taxpayer benefits from the activity that constituted the original nexus generating contact or subsequent contacts. (Mandatory) [Comment: Section (2) has been added to the State's definition of engaging in business to give guidelines and parameters to businesses in order for them to better ascertain whether or not they need to license and pay tax to the cities.] Page 3 28 Model Ordinance October 2025 "Extracting." "Extracting" is the activity engaged in by an extractor and is reportable under the extracting classification. [Comment: This definition is not contained in state law; however, RCW 35.102.120 requires that the model ordinance include this definition.] "Extractor." "Extractor" means every person who from the person's own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, for sale or for commercial or industrial use, mines, quarries, takes or produces coal, oil, natural gas, ore, stone, sand, gravel, clay, mineral or other natural resource product; or fells, cuts or takes timber, Christmas trees, other than plantation Christmas trees, or other natural products; or takes fish, shellfish, or other sea or inland water foods or products. "Extractor" does not include persons performing under contract the necessary labor or mechanical services for others; or persons meeting the definition of farmer. "Extractor for Hire" "Extractor for hire" means a person who performs under contract necessary labor or mechanical services for an extractor. "Gross income of the business." "Gross income of the business" means the value proceeding or accruing by reason of the transaction of the business engaged in and includes gross proceeds of sales, compensation for the rendition of services, gains realized from trading in stocks, bonds, or other evidences of indebtedness, interest, discount, rents, royalties, fees, commissions, dividends, and other emoluments however designated, all without any deduction on account of the cost of tangible property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. (Mandatory) "Gross proceeds of sales." "Gross proceeds of sales" means the value proceeding or accruing from the sale of tangible personal property, digital goods, digital codes, digital automated services or for other services rendered, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or any other expense whatsoever paid or accrued and without any deduction on account of losses. (Mandatory) "Manufacturing." "Manufacturing" means the activity conducted by a manufacturer and is reported under the manufacturing classification. (Mandatory unless you don't tax manufacturing activities) [Comment: This definition is not contained in state law, however RCW 35.102.120 requires that the model ordinance include this definition.] "Manufacturer," "to manufacture." (1) "Manufacturer" means every person who, either directly or by contracting with others for the necessary labor or mechanical services, manufactures for sale or for commercial or industrial use from the person's own materials or ingredients any products. When the owner of equipment or facilities furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to less than twenty percent (20%) of the total value of all materials or ingredients that become a part of the finished product, the owner of the equipment or facilities will be deemed to be a processor for hire, and not a manufacturer. (Mandatory) (A business not located in this City that is the owner of materials or ingredients processed for it in this City by a processor for hire shall be deemed to be engaged in business as a manufacturer in this City.) (Optional) Comment: This definition differs from that found in RCW 82.04.110. The manufacturing vs. processing for hire language has been included within this definition rather than covered by rule as provided in RCW 82.04.110. The optional portion of this definition is different from the RCW in that the RCW allows for the owner of materials that are processed in Washington to be excluded as a manufacturer. It is presumed that the RCW was written in this way to encourage material owners to bring their materials into Washington to be processed by Washington processors for hire. The State chooses to forego the tax that the owner would pay on the value of the materials under the manufacturing classification. The aluminum and nuclear fuel assembly provisions were excluded since no B & 0 city contains these types of activities. Page 4 Model Ordinance October 2025 29 (2) "To manufacture" means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials or ingredients so that as a result thereof a new, different or useful product is produced for sale or commercial or industrial use, and shall include: (a) The production of special made or custom made articles; (b) The production of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician; (c) Crushing and/or blending of rock, sand, stone, gravel, or ore; and (d) The producing of articles for sale, or for commercial or industrial use from raw materials or prepared materials by giving such materials, articles, and substances of trade or commerce new forms, qualities, properties or combinations including, but not limited to, such activities as making, fabricating, processing, refining, mixing, slaughtering, packing, aging, curing, mild curing, preserving, canning, and the preparing and freezing of fresh fruits and vegetables. "To manufacture" shall not include the production of digital goods or the production of computer software if the computer software is delivered from the seller to the purchaser by means other than tangible storage media, including the delivery by use of a tangible storage media where the tangible storage media is not physically transferred to the purchaser. (Mandatory) Comment: This definition is different from RCW 82.04.120. The cutting, delimbing, and measuring of felled, cut, or taken trees does not usually take place within cities so that was deleted. The RCW also states that some activities which are covered in other special taxing classifications at the State level are not manufacturing. Although some of these activities normally do not take place in cities we included them into manufacturing since they fall within the definition. Manufacturing activities covered in other tax classifications at the State level such as slaughtering, curing, preserving, or canning were included in this definition since the Cities do not have the other classifications. "Person." "Person" means any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, co -partnership, joint venture, club, company, joint stock company, business trust, municipal corporation, political subdivision of the State of Washington, corporation, limited liability company, association, society, or any group of individuals acting as a unit, whether mutual, cooperative, fraternal, non-profit, or otherwise and the United States or any instrumentality thereof. (Mandatory) "Retailing." "Retailing" means the activity of engaging in making sales at retail and is reported under the retailing classification. (Mandatory) Comment: This definition is not contained in state law, however RCW 35.102.120 requires that the model ordinance include this definition. "Retail Service." "Retail service" shall include the sale of or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities: (1) Amusement and recreation services including but not limited to golf, pool, billiards, skating, bowling, swimming, bungee jumping, ski lifts and tows, basketball, racquet ball, handball, squash, tennis, batting cages, day trips for sightseeing purposes, and others, when provided to consumers. "Amusement and recreation services" also include the provision of related facilities such as basketball courts, tennis courts, handball courts, swimming pools, and charges made for providing the opportunity to dance. The term "amusement and recreation services" does not include instructional lessons to learn a particular activity such as tennis lessons, swimming lessons, or archery lessons. (2) Abstract, title insurance, and escrow services; (3) Credit bureau services; (4) Automobile parking and storage garage services; Page 5 30 Model Ordinance October 2025 (5) Landscape maintenance and horticultural services but excluding (i) horticultural services provided to farmers and (ii) pruning, trimming, repairing, removing, and clearing of trees and brush near electric transmission or distribution lines or equipment, if performed by or at the direction of an electric utility; (6) Service charges associated with tickets to professional sporting events; and (7) The following personal services: Physical fitness services, tanning salon services, tattoo parlor services, steam bath services, Turkish bath services, escort services, and dating services. (8) The term shall also include the renting or leasing of tangible personal property to consumers and the rental of equipment with an operator. (Mandatory) Comment: This definition has been removed and separated from the definition of "sale at retail" since many cities have kept these activities taxable at a rate different from their "retailing" rate. The State changed these activities to retail from service a few decades ago. This separation of definitions enables those cities that have historically taxed retail sales and retail services at a different rate to continue to do so. The definition includes more examples under the amusement and recreation subsection than State's definition and these examples originated from the State's rule on amusement and recreation. "Sale," "casual or isolated sale." (1) "Sale" means any transfer of the ownership of, title to, or possession of, property for a valuable consideration and includes any activity classified as a "sale at retail," "retail sale," or "retail service." It includes renting or leasing, conditional sale contracts, leases with option to purchase, and any contract under which possession of the property is given to the purchaser but title is retained by the vendor as security for the payment of the purchase price. It also includes the furnishing of food, drink, or meals for compensation whether consumed upon the premises or not. (2) "Casual or isolated sale" means a sale made by a person who is not engaged in the business of selling the type of property involved on a routine or continuous basis. [Comment: the term "routine or continuous" comes from WAC 458-20-106.] "Sale at retail," "retail sale." (1) "Sale at retail" or "retail sale" means every sale of tangible personal property (including articles produced, fabricated, or imprinted) to all persons irrespective of the nature of their business and including, among others, without limiting the scope hereof, persons who install, repair, clean, alter, improve, construct, or decorate real or personal property of or for consumers, other than a sale to a person who presents a resale certificate under RCW 82.04.470 and who: (a) Purchases for the purpose of resale as tangible personal property in the regular course of business without intervening use by such person; or (b) Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or personal property of or for consumers, if such tangible personal property becomes an ingredient or component of such real or personal property without intervening use by such person; or (c) Purchases for the purpose of consuming the property purchased in producing for sale a new article of tangible personal property or substance, of which such property becomes an ingredient or component or is a chemical used in processing, when the primary purpose of such chemical is to create a chemical reaction directly through contact with an ingredient of a new article being produced for sale; or (d) Purchases for the purpose of consuming the property purchased in producing ferrosilicon which is subsequently used in producing magnesium for sale, if the primary purpose of such property is to create a chemical reaction directly through contact with an ingredient of ferrosilicon; or (e) Purchases for the purpose of providing the property to consumers as part of competitive telephone service, as defined in RCW 82.04.065. or The term shall include every sale of tangible personal property which is used or consumed or to be used or consumed in the performance of any activity classified as a "sale at retail" or "retail sale" even though such property is resold or utilized as provided in (a), (b), (c), (d), or (e) of this subsection following such use. (f) Purchases for the purpose of satisfying the person's obligations under an extended warranty as defined in subsection (8)(7) of this section, if such tangible personal property replaces or becomes an Page 6 Model Ordinance October 2025 31 (2) (3) ingredient or component of property covered by the extended warranty without intervening use by such person. The term shall include every sale of tangible personal property which is used or consumed or to be used or consumed in the performance of any activity classified as a "sale at retail" or "retail sale" even though such property is resold or utilized as provided in (a), (b), (c), (d), (e), or (f) of this subsection following such use. The term also means every sale of tangible personal property to persons engaged in any business that is taxable under RCW 82.04.280(1)(a), (b), and (g), 82.04,290, and 82.04.2908. "Sale at retail" or "retail sale" also means every sale of tangible personal property to persons engaged in any business activity which is taxable under .050(1)(g). The term "sale at retail" or "retail sale" includes the sale of or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admission, and other service emoluments however designated, received by persons engaging in the following business activities: (a) Information technology training services, technical support, and other services including, but not limited to, assisting with network operations and support, help desk services, in -person training related to hardware or software, network system support services, data entry services, and data processing services; or (b) Custom website development services. For the purposes of this subsection (3), "website development services" means the design, development, and support of a website provided by a website developer to a customer; or (c) Investigation, security services, security monitoring services, and armored car services including, but not limited to, background checks, security guard and patrol services, personal and event security, armored car transportation of cash and valuables, and security system services and monitoring. This does not include locksmith services; or (d) Temporary staffing services. For the purposes of this subsection (3), "temporary staffing services" means providing workers to other businesses, except for hospitals licensed under chapter 70.41 or 71.12 RCW, for limited periods of time to supplement their workforce and fill employment vacancies on a contract or for fee basis; or (e) Advertising services. (i) For the purposes of this subsection (3), "advertising services" means all digital and nondigital services related to the creation, preparation, production, or dissemination of advertisements including, but not limited to: (A) Layout, art direction, graphic design, mechanical preparation, production supervision, placement, referrals, acquisition of advertising space, and rendering advice concerning the best methods of advertising products or services; and (B) Online referrals, search engine marketing, and lead generation optimization, web campaign planning, the acquisition of advertising space in the internet media, and the monitoring and evaluation of website traffic for purposes of determining the effectiveness of an advertising campaign. (f) (ii) "Advertising services" do not include: (A) Web hosting services and domain name registration; (B) Services rendered in respect to the following: (I) "Newspapers" as defined in RCW 82.04.214; (II) Printing or publishing under RCW 82.04.280; and (III) "Radio and television broadcasting" within this state as defined in RCW 82.04 (section 1, chapter 9, Laws of 2025); and (C) Services rendered in respect to out -of -home advertising, including: Billboard advertising; street furniture advertising; transit advertising; place -based advertising, such as in-store display advertising or point -of -sale advertising; dynamic or static signage at live events; naming rights; and fixed signage advertising. Out -of -home advertising does not include direct mail; or Live presentations including, but not limited to, lectures, seminars, workshops, or courses where participants attend either in person or via the internet or telecommunications equipment that allows Page 7 32 Model Ordinance October 2025 audience members and the presenter or instructor to give, receive, and discuss information with each other in real time. For the purposes of (a) through (c) and (e) of this subsection (3), the terms "sale at retail" and "retail sale" do not include a sale between members of an affiliated group as defined in RCW 82.04.299(1)(f). (4) "Sale at retail" or "retail sale" shall include the sale of or charge made for tangible personal property consumed and/or for labor and services rendered in respect to the following: (a) The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers, including charges made for the mere use of facilities in respect thereto, but excluding charges made for the use of coin -operated laundry facilities when such facilities are situated in an apartment house, rooming house, or mobile home park for the exclusive use of the tenants thereof, and also excluding sales of laundry service to nonprofit health care facilities, and excluding services rendered in respect to live animals, birds and insects; (b) The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation, and shall also include the sale of services or charges made for the clearing of land and the moving of earth excepting the mere leveling of land used in commercial farming or agriculture; (c) The charge for labor and services rendered in respect to constructing, repairing, or improving any structure upon, above, or under any real property owned by an owner who conveys the property by title, possession, or any other means to the person performing such construction, repair, or improvement for the purpose of performing such construction, repair, or improvement and the property is then reconveyed by title, possession, or any other means to the original owner; (d) The sale of or charge made for labor and services rendered in respect to the cleaning, fumigating, razing or moving of existing buildings or structures, but shall not include the charge made for janitorial services; and for purposes of this section the term "janitorial services" shall mean those cleaning and caretaking services ordinarily performed by commercial janitor service businesses including, but not limited to, wall and window washing, floor cleaning and waxing, and the cleaning in place of rugs, drapes and upholstery. The term "janitorial services" does not include painting, papering, repairing, furnace or septic tank cleaning, snow removal or sandblasting; (e) The sale of or charge made for labor and services rendered in respect to automobile towing and similar automotive transportation services, but not in respect to those required to report and pay taxes under chapter 82.16 ROW; (f) The sale of and charge made for the furnishing of lodging and all other services, except telephone business and cable service, by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, and it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same. For the purposes of this subsection, it shall be presumed that the sale of and charge made for the furnishing of lodging for a continuous period of one month or more to a person is a rental or lease of real property and not a mere license to enjoy the same; (g) The installing, repairing, altering, or improving of digital goods for consumers; (h) The sale of or charge made for tangible personal property, labor and services to persons taxable under (a), (b), (c), (d), (e), (f), and (g) of this subsection when such sales or charges are for property, labor and services which are used or consumed in whole or in part by such persons in the performance of any activity defined as a "sale at retail" or "retail sale" even though such property, labor and services may be resold after such use or consumption. Nothing contained in this subsection shall be construed to modify subsection (1) of this section and nothing contained in subsection (1) of this section shall be construed to modify this subsection. (5) "Sale at retail" or "retail sale" shall also include the providing of competitive telephone service to consumers. [Comment: Cities can only include "competitive telephone service" since telephone business is taxed under the utility tax.] Page 8 Model Ordinance October 2025 33 "Sale at retail" or "retail sale" (a) "Sale at retail" or "retail sale" shall also include the sale of prewritten software, custom software, and customization of prewritten computer software to a consumer, other than a sale to a person who presents a resale certificate under RCW 82.04.470, regardless of the method of delivery to the end user. For purposes of this subsection �G5)(a) the sale of the sale of prewritten computer software includes the sale of or charge made for a key or an enabling or activation code, where the key or code is required to activate prewritten computer software and put the software into use. There is no separate sale of the key or code from the prewritten computer software, regardless of how the sale may characterized by the vendor or by the purchaser. The term "sale at retail" or "retail sale" does not include the sale of or charge made for: (i) Custom software; or (ii) The customization of prewritten software. (b) (iiiUThe term "sale at retail" or "retail sale" also includes the charge made to consumers for the right to access and use prewritten computer software, custom software, and customization of prewritten computer software, where possession of the software is maintained by the seller or a third party, regardless of whether the charge for the service is on a per use, per user, per license, subscription, or some other basis. ii (A) The service described in (b)(i) of this subsection 65 includes the right to access and use prewritten software, custom software, and customization of prewritten computer software to perform data processing. (B) For purposes of this subsection (b)(ii) "data processing" means the systematic performance of operations on data to extract the required information in an appropriate form or to convert the data to usable information. Data processing includes check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities. (7) "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the building, repairing, or improving of any street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state, the State of Washington, or by the United States and which is used or to be used primarily for foot or vehicular traffic including mass transportation vehicles of any kind. (Public road construction) (8) "Sale at retail" or "retail sale" shall also include the sale of or charge made for an extended warranty to a consumer. For purposes of this subsection, "extended warranty" means an agreement for a specified duration to perform the replacement or repair of tangible personal property at no additional charge or a reduced charge for tangible personal property, labor, or both, or to provide indemnification for the replacement or repair of tangible personal property, based on the occurrence of specified events. The term "extended warranty" does not include an agreement, otherwise meeting the definition of extended warranty in this subsection, if no separate charge is made for the agreement and the value of the agreement is included in the sales price of the tangible personal property covered by the agreement. (9) "Sale at retail" or "retail sale" shall also include the sale of or charge made for labor and services rendered in respect to the constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for the United States, any instrumentality thereof, or a county or city housing authority created pursuant to chapter 35.82 RCW, including the installing, or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation (government contracting). (10) "Sale at retail" or "retail sale" shall not include the sale of services or charges made for the clearing of land and the moving of earth of or for the United States, any instrumentality thereof, or a county or city housing authority. Nor shall the term include the sale of services or charges made for cleaning up for the United States, or its instrumentalities, radioactive waste and other byproducts of weapons production and nuclear research and development. [This should be reported under the service and other classification.] (11) "Sale at retail" or "retail sale" shall not include the sale of or charge made for labor and services rendered for environmental remedial action. [This should be reported under the service and other classification.] Page 9 34 Model Ordinance October 2025 (12)(a) "Sale at retail" or "retail sale" shall also include the following sales to consumers of digital goods, digital codes, and digital automated services: (a) aSales in which the seller has granted the purchaser the right of permanent use; (b) ug Sales in which the seller has granted the purchaser a right of use that is less than permanent; (c) (iii) Sales in which the purchaser is not obligated to make continued payment as a condition of the sale; and (d) (iv) Sales in which the purchaser is obligated to make continued payment as a condition of the sale. (b) A retail sale of digital goods, digital codes, or digital automated services under this subsection [insert reference to section .040(12)541}] includes any services provided by the seller exclusively in connection with the digital goods, digital codes, or digital automated services, whether or not a separate charge is made for such services. (c) A retail sale of digital goods, digital codes, or digital automated services does not include the following services if the sale occurs between members of an affiliated group as defined in RCW 82.04.299(1)(f): (i) Any service that primarily involves the application of human effort by the seller, and the human effort originated after the customer requested the service; (ii) Live presentations, such as lectures, seminars, workshops, or courses, where participants are connected to other participants via the internet or telecommunications equipment, which allows audience members and the presenter or instructor to give, receive, and discuss information with each other in real time; (iii) Advertising services. For purposes of this subsection, "advertising services" means all services directly related to the creation, preparation, production, or dissemination of advertisements. Advertising services include layout, art direction, graphic design, mechanical preparation, production supervision, placement, and rendering advice to a client concerning the best methods of advertising that client's products or services. Advertising services also include online referrals, search engine marketing and lead generation optimization, web campaign planning, the acquisition of advertising space in the internet media, and the monitoring and evaluation of website traffic for purposes of determining the effectiveness of an advertising campaign. Advertising services do not include web hosting services and domain name registration; and (iv) Data processing services. For purposes of this subsection, "data processing service" means a primarily automated service provided to a business or other organization where the primary object of the service is the systematic performance of operations by the service provider on data supplied in whole or in part by the customer to extract the required information in an appropriate form or to convert the data to usable information. Data processing services include check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities. Data processing does not include the service described in subsection (6)(b) of this section. jFor purposes of this subsection, "permanent" means perpetual or for an indefinite or unspecified length of time. A right of permanent use is presumed to have been granted unless the agreement between the seller and the purchaser specifies or the circumstances surrounding the transaction suggest or indicate that the right to use terminates on the occurrence of a condition subsequent. (13) "Sale at retail" or "retail sale" shall also include the installing, repairing, altering, or improving of digital goods for consumers. (Mandatory) Comment: This definition is different than RCW 82.04.050. Retail services have been given their own definition. Public road construction and government contracting has been included into this definition since the Cities do not have special tax classifications for those two activities. Environmental or nuclear waste cleanup are assigned to the service and other classification. And the sales to farmers will remain under the retailing classification. The reference to "telephone business and cable service" in subsection (3)(f) has been included to clarify to hotels and motels that such telephone services and cable services are taxable under the utility tax. "Sale at wholesale," "wholesale sale." "Sale at wholesale" or "wholesale sale" means any sale of tangible personal property, digital goods, digital codes, digital automated services, prewritten computer software, custom software, customization of prewritten software to a consumer, or services described in [insert reference Page 10 Model Ordinance October 2025 35 to "sale at retail" section 6(b)(i)], which is not a retail sale, and any charge made for labor and services rendered for persons who are not consumers, in respect to real or personal property and retail services, if such charge is expressly defined as a retail sale or retail service when rendered to or for consumers. Sale at wholesale also includes the sale of telephone business to another telecommunications company as defined in RCW 80.04.010 for the purpose of resale, as contemplated by RCW 35.21.715. (Mandatory) [The last sentence must be included since telephone business would normally be taxed under the utility tax. The wholesale treatment of telephone business to another telecommunications company is dictated by State law.] "Services." [Comment: RCW 35.102.120 requires that the model ordinance include this definition. However, no explicit definition will be included in this Model Ordinance until the RCW contains a definition of "service". In the absence of a definition of "service" in state law, the Cities generally use this term and classification to include those activities that do not fall within one of the other tax classifications used by a city.] "Taxpayer." "Taxpayer" means any "person", as herein defined, required to have a business license under this chapter or liable for the collection of any tax or fee under this chapter, or who engages in any business or who performs any act for which a tax or fee is imposed by this chapter. "Value proceeding or accruing." "Value proceeding or accruing" means the consideration, whether money, credits, rights, or other property expressed in terms of money, a person is entitled to receive or which is actually received or accrued. The term shall be applied, in each case, on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the taxpayer. (Mandatory if you have a manufacturing tax) "Value of products." (1) The value of products, including by-products, extracted or manufactured, shall be determined by the gross proceeds derived from the sale thereof whether such sale is at wholesale or at retail, to which shall be added all subsidies and bonuses received from the purchaser or from any other person with respect to the extraction, manufacture, or sale of such products or by-products by the seller. (2) Where such products, including by-products, are extracted or manufactured for commercial or industrial use; and where such products, including by-products, are shipped, transported or transferred out of the City, or to another person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale; the value shall correspond as nearly as possible to the gross proceeds from sales in this state of similar products of like quality and character, and in similar quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the purchaser or by any third person with respect to the extraction, manufacture, or sale of such products. In the absence of sales of similar products as a guide to value, such value may be determined upon a cost basis. In such cases, there shall be included every item of cost attributable to the particular article or article extracted or manufactured, including direct and indirect overhead costs. The Director may prescribe rules for the purpose of ascertaining such values. (3) Notwithstanding subsection (2) above, the value of a product manufactured or produced for purposes of serving as a prototype for the development of a new or improved product shall correspond to (a) the retail selling price of such new or improved product when first offered for sale; or (2) the value of materials incorporated into the prototype in cases in which the new or improved product is not offered for sale. Comment: This definition is slightly different than that contained in RCW 82.04.450. The meaning is intended to be the same, and the only difference is in grammatical construction. The model also adds a sentence, taken from WAC 458-20-112, at the end of subsection (2) explaining the use of costs to ascertain the value of the products. (Mandatory if you have manufacturing or extracting tax) "Wholesaling." "Wholesaling" means engaging in the activity of making sales at wholesale, and is reported under the wholesaling classification. (Mandatory) Page 11 36 Model Ordinance October 2025 [Comment: This definition is not contained in state law, however RCW 35.102.120 requires that the model ordinance include this definition.] .050 Imposition of the tax - tax or fee levied. (1) Except as provided in subsection (2) of this section, there is hereby levied upon and shall be collected from every person a tax for the act or privilege of engaging in business activities within the City, whether the person's office or place of business be within or without the City. The tax shall be in amounts to be determined by application of rates against gross proceeds of sale, gross income of business, or value of products, including by-products, as the case may be, as follows: (a) Upon every person engaging within the City in business as an extractor; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, extracted within the city for sale or for commercial or industrial use, multiplied by the rate of of one percent ( ). The measure of the tax is the value of the products, including by-products, so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the City. (b) Upon every person engaging within the City in business as a manufacturer, as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, manufactured within the city, multiplied by the rate of of one percent ( ). The measure of the tax is the value of the products, including by-products, so manufactured, regardless of the place of sale or the fact that deliveries may be made to points outside the City. (c) Upon every person engaging within the City in the business of making sales at wholesale, except persons taxable under subsection _ of this section; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of of one percent ( ). (d) Upon every person engaging within the City in the business of making sales at retail, as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business, without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of of one percent ( ). (e) Upon every person engaging within the City in the business of (i) printing, (ii) both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items, (iii) publishing newspapers, magazines and periodicals, (iv) extracting for hire, and (v) processing for hire; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of of one percent ( ). (f) Upon every person engaging within the City in the business of making sales of retail services; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of of one percent ( ). (g) Upon every other person engaging within the City in any business activity other than or in addition to those enumerated in the above subsections; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of of one percent ( ). This subsection includes, among others, and without limiting the scope hereof (whether or not title to material used in the performance of such business passes to another by accession, merger or other than by outright sale), persons engaged in the business of developing, or producing custom software or of customizing canned software, producing royalties or commissions, and persons engaged in the business of rendering any type of service which does not constitute a sale at retail, a sale at wholesale, or a retail service. [Comment: Most cities do not use all of the classifications listed above, so they need only adopt those that are imposed within their jurisdictions.] (Mandatory wording for those classifications that are adopted). (2) The gross receipts tax imposed in this section shall not apply to any person whose gross proceeds of sales, gross income of the business, and value of products, including by-products, as the case may be, from all activities conducted within the City during any calendar year is equal to or less than $20,000, or is equal to or less than $5,000 during any quarter if on a quarterly reporting basis. Page 12 Model Ordinance October 2025 37 (Subsection (2) is Mandatory) .060 Doing business with the City. - Repealed effective January 1, 2008. .070 Multiple activities credit when activities take place in one or more cities with eligible gross receipt taxes. (1) Persons who engage in business activities that are within the purview of two (2) or more subsections of .050 shall be taxable under each applicable subsection. (2) Notwithstanding anything to the contrary herein, if imposition of the City's tax would place an undue burden upon interstate commerce or violate constitutional requirements, a taxpayer shall be allowed a credit to the extent necessary to preserve the validity of the City's tax, and still apply the City tax to as much of the taxpayer's activities as may be subject to the City's taxing authority. (3) To take the credit authorized by this section, a taxpayer must be able to document that the amount of tax sought to be credited was paid upon the same gross receipts used in computing the tax against which the credit is applied. (4) Credit for persons that sell in the City products that they extract or manufacture. Persons taxable under the retailing or wholesaling classification with respect to selling products in this City shall be allowed a credit against those taxes for any eligible gross receipts taxes paid (a) with respect to the manufacturing of the products sold in the City, and (b) with respect to the extracting of the products, or the ingredients used in the products, sold in the City. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. (5) Credit for persons that manufacture products in the City using ingredients they extract. Persons taxable under the manufacturing classification with respect to manufacturing products in this City shall be allowed a credit against those taxes for any eligible gross receipts tax paid with respect to extracting the ingredients of the products manufactured in the City. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the manufacturing of those products. (6) Credit for persons that sell within the City products that they print, or publish and print. Persons taxable under the retailing or wholesaling classification with respect to selling products in this City shall be allowed a credit against those taxes for any eligible gross receipts taxes paid with respect to the printing, or the printing and publishing, of the products sold within the City. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products. (Mandatory) [Comment: The wording in this section .070 is not quite the same as RCW 35.102.060 (1). Subsection (1) is the same as (a) in RCW 35.102.060. Subsection (2) has the same meaning although the cities add the last phrase that the tax will be subjected to the greatest extent possible. Subsection (3) is not included in RCW 35.102.060—it merely states that the taxpayer must have records or proof that it paid another eligible gross receipts tax to another local jurisdiction. In the case of manufacturing products that have been partially manufactured in another location with an eligible gross receipt tax, the cities have chosen to give a deduction and only tax the incremental increase in the value of the product. This should provide an equal or better treatment to the manufacturer than the credit provision contained in RCW 35.102.060 (1)(d). (Refer to subsection .075(2) below.)] Legislative intent information This section provides a tax credit for taxpayers engaged in multiple taxable activities. The section provides a credit against eligible selling or manufacturing taxes imposed by the City for extracting or manufacturing taxes paid to the City or to any other local jurisdiction with respect to the same products. The tax credit does not depend upon whether a person that sells in the City extracts or manufactures in the City or in another jurisdiction to which it has paid an eligible gross receipts tax. The tax credit does not depend on whether a person that manufactures in the City extracts in the City or in another jurisdiction to which it has paid an eligible gross receipts tax. The credit is available to any person that pays an eligible gross receipts tax on the applicable activities, regardless of where it conducts business. The result of this section is that a city in which Page 13 38 Model Ordinance October 2025 selling takes place gives up the tax to the manufacturing jurisdiction and the manufacturing jurisdiction gives up the tax to the extracting jurisdiction, whether those jurisdictions are inside or outside the State of Washington. .075 Deductions to prevent multiple taxation of manufacturing activities and prior to January 1, 2008, transactions involving more than one city with an eligible gross receipts tax. (1) Amounts subject to an eligible gross receipts tax in another city that also maintains nexus over the same activity. For taxes due prior to January 1, 2008, a taxpayer that is subject to an eligible gross receipts tax on the same activity in more than one jurisdiction may be entitled to a deduction as follows: (a) A taxpayer that has paid an eligible gross receipts tax, with respect to a sale of goods or services, to a jurisdiction in which the goods are delivered or the services are provided may deduct an amount equal to the gross receipts used to measure that tax from the measure of the tax owed to the City. (b) Notwithstanding the above, a person that is subject to an eligible gross receipts tax in more than one jurisdiction on the gross income derived from intangibles such as royalties, trademarks, patents, or goodwill shall assign those gross receipts to the jurisdiction where the person is domiciled (its headquarters is located). (c) A taxpayer that has paid an eligible gross receipts tax on the privilege of accepting or executing a contract with another city may deduct an amount equal to the contract price used to measure the tax due to the other city from the measure of the tax owed to the City. (Mandatory) Legislative intent information This section establishes deductions to be applied when a single taxable activity is taxable by more than one jurisdiction that imposes an eligible gross receipts tax for taxes due prior to January 1, 2008. Prior to January 1, 2008, under Washington State Law, more than one city that has established nexus can include 100% of the gross receipts from that transaction in its tax base. However, to eliminate the possibility of the same sale or service being taxed more than once by cities that maintain nexus and an eligible gross receipts tax, the cities have provided this deduction to taxpayers. For taxes due after January 1, 2008, the apportionment provisions in section .077 will provide the mechanism for all activities except manufacturing. Sales. A taxpayer that has paid an eligible gross receipts tax on the sale to the jurisdiction where the product is delivered may deduct the gross receipts used to measure that tax from the measure of the tax owed to another jurisdiction on the sale. If a taxpayer has not paid tax to the jurisdiction where the product is delivered, then no deduction is allowed. The sale shall be taxed by the city where the office or place of business that generated the sale is located. Service. A taxpayer that has paid an eligible gross receipts tax on services to the jurisdiction where the service is performed may deduct the gross receipts used to measure that tax from the measure of the tax owed to another jurisdiction on that service. If a taxpayer has not paid tax to the jurisdiction where the service is performed, then the service income shall be taxed by the city where the office or place of business that generated the sale is located. For both sales and services, the order of taxing rights is delivery city, first; and business office location, second. General Business Activities Other Than Services. The eligible gross receipts tax on income derived from intangibles such as royalties, licenses, trademarks, patents and goodwill, and reportable under the general business classification .050 (7), shall be assigned to the domicile/headquarters office. Conducting Business with Another City. A taxpayer that has paid an eligible gross receipts tax on the privilege of accepting or executing a contract with a city may deduct the contract price used to measure the tax from the measure of the tax owed to another city on the same activity. (2) Person manufacturing products within and without. A person manufacturing products within the City using products manufactured by the same person outside the City may deduct from the measure of the manufacturing tax the value of products manufactured outside the City and included in the measure of an eligible gross receipts tax paid to the other jurisdiction with respect to manufacturing such products. (Mandatory) Page 14 Model Ordinance October 2025 39 .076 Assignment of gross income derived from intangibles. Gross income derived from the sale of intangibles such as royalties, trademarks, patents, or goodwill shall be assigned to the jurisdiction where the person is domiciled (its headquarters is located). .077 Allocation and apportionment of income when activities take place in more than one jurisdiction. Effective January 1, 2008, gross income, other than persons subject to the provisions of chapter 82.14A RCW, shall be allocated and apportioned as follows: (1) Gross income derived from all activities other than those taxed as service or royalties under [insert city code reference to .050(1)(g)] shall be allocated to the location where the activity takes place. (2) In the case of sales of tangible personal property, the activity takes place where delivery to the buyer occurs. (3) In the case of sales of digital products, the activity takes place where delivery to the buyer occurs. The delivery of digital products will be deemed to occur at: (a) The seller's place of business if the purchaser receives the digital product at the seller's place of business; (b) If not received at the seller's place of business, the location where the purchaser or the purchaser's donee, designated as such by the purchaser, receives the digital product, including the location indicated by instructions for delivery to the purchaser or donee, known to the seller; (c) If the location where the purchaser or the purchaser's done receives the digital product is not known, the purchaser's address maintained in the ordinary course of the seller's business when use of this address does not constitute bad faith; (d) If no address for the purchaser is maintained in the ordinary course of the seller's business, the purchaser's address obtained during the consummation of the sale, including the address of a purchaser's payment instrument, if no other address is available, when use of this address does not constitute bad faith; and (e) If no address for the purchaser is obtained during the consummation of the sale, the address where the digital good or digital code is first made available for transmission by the seller or the address from which the digital automated service or service described in RCW 82.04.050 (2)(g) or (6)(b) was provided, disregarding for these purposes any location that merely provided the digital transfer of the product sold. (4) If none of the methods in subsection [insert city code reference to .077(3)] for determining where the delivery of digital products occurs are available after a good faith effort by the taxpayer to apply the methods provided in subsections [insert city code reference to .077(3)(a) through .077(3)(e)], then the city and the taxpayer may mutually agree to employ any other method to effectuate an equitable allocation of income from the sale of digital products. The taxpayer will be responsible for petitioning the city to use an alternative method under this subsection [insert city code reference to .077(D)]. The city may employ an alternative method for allocating the income from the sale of digital products if the methods provided in subsections [insert city code reference to .077(3)(a) through .077(3)(e)] are not available and the taxpayer and the city are unable to mutually agree on an alternative method to effectuate an equitable allocation of income from the sale of digital products. (5) For purposes of subsections [insert city code reference to .077(3)(a) through .077(3)(e)], the following definitions apply: (a) "Digital automated services," "digital codes," and "digital goods" have the same meaning as in RCW 82.04.192; (b) "Digital products" means digital goods, digital codes, digital automated services, and the services described in RCW 82.04.050 (2)(g) and (6)(c); and (c) "Receive" has the same meaning as in RCW 82.32.730. (6) [Effective January 1, 20201 Gross income derived from activities taxed as services and other activities taxed under [insert city code reference to .050(1)(g)] shall be apportioned to the city by multiplying apportionable income by a fraction, the numerator of which is the payroll factor plus the service income factor and the denominator of which is two. Page 15 40 Model Ordinance October 2025 (7) (a) The payroll factor is a fraction, the numerator of which is the total amount paid in the city during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period. Compensation is paid in the city if: (i) The individual is primarily assigned within the city; (ii) The individual is not primarily assigned to any place of business for the tax period and the employee performs fifty percent or more of his or her service for the tax period in the city; or (iii) The individual is not primarily assigned to any place of business for the tax period, the individual does not perform fifty percent or more of his or her service in any city and the employee resides in the city. (b) The service income factor is a fraction, the numerator of which is the total service income of the taxpayer in the city during the tax period, and the denominator of which is the total service income of the taxpayer everywhere during the tax period. Service income is in the city if the customer location is in the city. (c) Gross income of the business from engaging in an apportionable activity must be excluded from the denominator of the service income factor if, in respect to such activity, at least some of the activity is performed in the city, and the gross income is attributable under (b) of this subsection (6) to a city or unincorporated area of a county within the United States or to a foreign country in which the taxpayer is not taxable. For purposes of this subsection (6)(c), "not taxable" means that the taxpayer is not subject to a business activities tax by that city or county within the United States or by that foreign country, except that a taxpayer is taxable in a city or county within the United States or in a foreign country in which it would be deemed to have a substantial nexus with the city or county within the United States or with the foreign country under the standards in RCW 35.102.050 regardless of whether that city or county within the United States or that foreign country imposes such a tax. (d) If the allocation and apportionment provisions of this subsection i61 do not fairly represent the extent of the taxpayer's business activity in the city the taxpayer may petition for or the tax administrators may require, in respect to all or any part of the taxpayer's business activity, if reasonable: (i) Separate accounting; (ii) The exclusion of any one or more of the factors; (iii) The inclusion of one or more additional factors that will fairly represent the taxpayer's business activity in the city; or (iv) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income. (e) The party petitioning for, or the tax administrator requiring, the use of any method to effectuate an equitable allocation and apportionment of the taxpayer's income pursuant to subsection (d) of this subsection (6) must prove by a preponderance of the evidence: (i) That the allocation and apportionment provisions of this subsection (6) do not fairly represent the extent of the taxpayer's business activity in the city; and (ii) That the alternative to such provisions is reasonable. The same burden of proof shall apply whether the taxpayer is petitioning for, or the tax administrator is requiring, the use of an alternative, reasonable method to effectuate an equitable allocation and apportionment of the taxpayer's income. (f) If the tax administrator requires any method to effectuate an equitable allocation and apportionment of the taxpayer's income, the tax administrator cannot impose any civil or criminal penalty with reference to the tax due that is attributable to the taxpayer's reasonable reliance solely on the allocation and apportionment provisions of this subsection (6). (g) A taxpayer that has received written permission from the tax administrator to use a reasonable method to effectuate an equitable allocation and apportionment of the taxpayer's income shall not have that permission revoked with respect to transactions and activities that have already occurred unless there has been a material change in, or a material misrepresentation of, the facts provided by the taxpayer upon which the tax administrator reasonably relied in approving a reasonable alternative method. The definitions in this subsection apply throughout this section. (a) "Apportionable income" means the gross income of the business taxable under the service classifications of a city's gross receipts tax, including income received from activities outside the city if Page 16 Model Ordinance October 2025 41 the income would be taxable under the service classification if received from activities within the city, less any exemptions or deductions available. (b) "Business activities tax" means a tax measured by the amount of, or economic results of, business activity conducted in a city or county within the United States or within a foreign country. The term includes taxes measured in whole or in part on net income or gross income or receipts. "Business activities tax" does not include a sales tax, use tax, or a similar transaction tax, imposed on the sale or acquisition of goods or services, whether or not denominated a gross receipts tax or a tax imposed on the privilege of doing business. (c) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to individuals for personal services that are or would be included in the individual's gross income under the federal internal revenue code. (d) "Customer" means a person or entity to whom the taxpayer makes a sale or renders services or from whom the taxpayer otherwise receives gross income of the business. (e) "Customer location" means the following: (i) For a customer not engaged in business, if the service requires the customer to be physically present, where the service is performed. (ii) For a customer not engaged in business, if the service does not require the customer to be physically present: (A) The customer's residence; or (B) If the customer's residence is not known, the customer's billing/mailing address. (iii) For a customer engaged in business: (A) Where the services are ordered from; (B) At the customer's billing/mailing address if the location from which the services are ordered is not known; or (C) At the customer's commercial domicile if none of the above are known. (f) "Individual" means any individual who, under the usual common law rules applicable in determining the employer -employee relationship, has the status of an employee of that taxpayer. (g) "Primarily assigned" means the business location of the taxpayer where the individual performs his or her duties. (h) "Service -taxable income" or "service income" means gross income of the business subject to tax under either the service or royalty classification. (i) "Tax period" means the calendar year during which tax liability is accrued. If taxes are reported by a taxpayer on a basis more frequent than once per year, taxpayers shall calculate the factors for the previous calendar year for reporting in the current calendar year and correct the reporting for the previous year when the factors are calculated for that year, but not later than the end of the first quarter of the following year. (8) Assignment or apportionment of revenue under this Section shall be made in accordance with and in full compliance with the provisions of the interstate commerce clause of the United States Constitution where applicable. (Mandatory — Effective January 1, 2020) Legislative intent information For tax periods after January 1, 2020, Substitute House Bill 1403 further simplifies the administration of municipal business and occupation tax apportionment by (1) adopting a consistent sourcing hierarchy; (2) adopting market -based sourcing in the income factor; (3) establishing a rule that excludes service receipts from the income factor denominator attributable to jurisdictions where the taxpayer would not be subject to tax; and (4) establishing a consistent burden of proof for application of an alternative apportionment method. There are no changes to the payroll factor. For periods prior to January 1, 2020, the following language is still in effect: Sec. 0.077(6)(b) provides "The service income factor is a fraction, the numerator of which is the total service income of the taxpayer in the city during the tax period, and the denominator of which is the total service income of the taxpayer everywhere during the tax period. Service income is in the city if: Page 17 42 Model Ordinance October 2025 (i) The customer location is in the city; or (ii) The income -producing activity is performed in more than one location and a greater proportion of the service -income -producing activity is performed in the city than in any other location, based on costs of performance, and the taxpayer is not taxable at the customer location; or (iii) The service -income -producing activity is performed within the city, and the taxpayer is not taxable in the customer location." Sec. 0.077(7)(d) provides "Customer location" means the city or unincorporated area of a county where the majority of the contacts between the taxpayer and the customer take place. Sec. 0.077(7)(h) provides "Taxable in the customer location" means either that a taxpayer is subject to a gross receipts tax in the customer location for the privilege of doing business, or that the government where the customer is located has the authority to subject the taxpayer to gross receipts tax regardless of whether, in fact, the government does so. .078 Allocation and apportionment of printing and publishing income when activities take place in more than one jurisdiction. Notwithstanding RCW 35.102.130, effective January 1, 2008, gross income from the activities of printing, and of publishing newspapers, periodicals, or magazines, shall be allocated to the principal place in this state from which the taxpayer's business is directed or managed. As used in this section until December 31, 2023, the activities of printing, and of publishing newspapers, periodicals, or magazines, have the same meanings as attributed to those terms in RCW 82.04.280(1) by the department of revenue. Beginning January 1, 2024, until January 1, 2034, as used in this section, the activities of printing, and of publishing newspapers and periodicals or magazines are those activities to which the exemption in RCW 82.04.759 and the tax rate in RCW 82.04.280(1)(a) apply. Legislative intent information This section is required by RCW 35.102.150 and provides that printing and publishing income shall be allocated to the city in which taxpayer's business is directed or managed. This section is not mandatory for the model ordinance, but the tax treatment is required by RCW 35.102.150. This section defines the sourcing of gross income arising from the activities of printing, and publishing newspapers, periodicals, or magazines. The changes effective January 1, 2024 modify only the definition of printing, and of publishing newspapers and periodicals or newspapers in accordance with ESS2B 5199 (2023). This section does not constitute an adoption of the State of Washington business and occupation tax exemption for gross income arising from the activities of printing, and of publishing newspapers, or the tax rate that applies to the activities of printing and of publishing periodicals or magazines .090 Exemptions. (1) Public utilities. This chapter shall not apply to any person in respect to a business activity with respect to which tax liability is specifically imposed under the provisions of [local utility tax cite]. (2) Investments - dividends from subsidiary corporations. This chapter shall not apply to amounts derived by persons, other than those engaging in banking, loan, security, or other financial businesses, from investments or the use of money as such, and also amounts derived as dividends by a parent from its subsidiary corporations. (3) Insurance business. This chapter shall not apply to amounts received by any person who is an insurer or their appointed insurance producer upon which a tax based on gross premiums is paid to the state pursuant to RCW 48.14.020, and provided further, that the provisions of this subsection shall not exempt any bonding company from tax with respect to gross income derived from the completion of any contract as to which it is a surety, or as to any liability as successor to the liability of the defaulting contractor. (4) Employees. Page 18 Model Ordinance October 2025 43 (a) This chapter shall not apply to any person in respect to the person's employment in the capacity as an employee or servant as distinguished from that of an independent contractor. For the purposes of this subsection, the definition of employee shall include those persons that are defined in the Internal Revenue Code, as hereafter amended. (b) A booth renter is an independent contractor for purposes of this chapter. (5) Amounts derived from sale of real estate. This chapter shall not apply to gross proceeds derived from the sale of real estate. This, however, shall not be construed to allow an exemption of amounts received as commissions from the sale of real estate, nor as fees, handling charges, discounts, interest or similar financial charges resulting from, or relating to, real estate transactions. This chapter shall also not apply to amounts received for the rental of real estate if the rental income is derived from a contract to rent for a continuous period of thirty (30) days or longer. (6) Mortgage brokers' third -party provider services trust accounts. This chapter shall not apply to amounts received from trust accounts to mortgage brokers for the payment of third -party costs if the accounts are operated in a manner consistent with RCW 19.146.050 and any rules adopted by the director of financial institutions. (7) Amounts derived from manufacturing, selling or distributing motor vehicle fuel. This chapter shall not apply to the manufacturing, selling, or distributing motor vehicle fuel, as the term "motor vehicle fuel" is defined in RCW 82.38.020 and exempt under RCW 82.38.280, provided that any fuel not subjected to the state fuel excise tax, or any other applicable deduction or exemption, will be taxable under this chapter. (Mandatory) (8) Amounts derived from liquor, and the sale or distribution of liquor. This chapter shall not apply to liquor as defined in RCW 66.04.010 and exempt in RCW 66.08.120. (Mandatory) (9) Casual and isolated sales. This chapter shall not apply to the gross proceeds derived from casual or isolated sales. (10) Accommodation sales. This chapter shall not apply to sales for resale by persons regularly engaged in the business of making retail sales of the type of property so sold to other persons similarly engaged in the business of selling such property where (1) the amount paid by the buyer does not exceed the amount paid by the seller to the vendor in the acquisition of the article and (2) the sale is made as an accommodation to the buyer to enable the buyer to fill a bona fide existing order of a customer or is made within fourteen days to reimburse in kind a previous accommodation sale by the buyer to the seller. (11) Taxes collected as trust funds. This chapter shall not apply to amounts collected by the taxpayer from third parties to satisfy third party obligations to pay taxes such as the retail sales tax, use tax, and admission tax. .100 Deductions. In computing the license fee or tax, there may be deducted from the measure of tax the following items: (1) Receipts from tangible personal property delivered outside the State. In computing tax, there may be deducted from the measure of tax under retailing or wholesaling amounts derived from the sale of tangible personal property that is delivered by the seller to the buyer or the buyer's representative at a location outside the State of Washington. (Mandatory) (2) Cash discount taken by purchaser. In computing tax, there may be deducted from the measure of tax the cash discount amounts actually taken by the purchaser. This deduction is not allowed in arriving at the taxable amount under the extracting or manufacturing classifications with respect to articles produced or manufactured, the reported values of which, for the purposes of this tax, have been computed according to the "value of product" provisions. (3) Credit losses of accrual basis taxpayers. In computing tax, there may be deducted from the measure of tax the amount of credit losses actually sustained by taxpayers whose regular books of account are kept upon an accrual basis. (4) Constitutional prohibitions. In computing tax, there may be deducted from the measure of the tax amounts derived from business which the City is prohibited from taxing under the Constitution of the State of Washington or the Constitution of the United States. (Mandatory) (5) Receipts from the Sale of Tangible Personal Property and Retail Services Delivered Outside the City but Within Washington. Effective January 1, 2008, amounts included in the gross receipts reported Page 19 44 Model Ordinance October 2025 on the tax return derived from the sale of tangible personal property delivered to the buyer or the buyer's representative outside the City but within the State of Washington may be deducted from the measure of tax under the retailing, retail services, or wholesaling classification. (6) Professional employer services. In computing the tax, a professional employer organization may deduct from the calculation of gross income the gross income of the business derived from performing professional employer services that is equal to the portion of the fee charged to a client that represents the actual cost of wages and salaries, benefits, workers' compensation, payroll taxes, withholding, or other assessments paid to or on behalf of a covered employee by the professional employer organization under a professional employer agreement. (7) Interest on investments or loans secured by mortgages or deeds of trust. In computing tax, to the extent permitted by Chapter 82.14A RCW, there may be deducted from the measure of tax by those engaged in banking, loan, security or other financial businesses, amounts derived from interest received on investments or loans primarily secured by first mortgages or trust deeds on non -transient residential properties. Legislative intent information Subsection (6) is required by RCW 35.102.160 and provides that professional employer organizations may deduct the portion of fees for actual costs of employee wages and other benefits and taxes from gross income. This deduction is not mandatory for the model ordinance, but the tax treatment is required by RCW 35.102.160 and is taken from RCW 82.04.540(2). .120 Tax part of overhead. It is not the intention of this chapter that the taxes or fees herein levied upon persons engaging in business be construed as taxes or fees upon the purchasers or customer, but that such taxes or fees shall be levied upon, and collectible from, the person engaging in the business activities herein designated and that such taxes or fees shall constitute a part of the cost of doing business of such persons. .130 Severability Clause. If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances shall not be affected. Note: The following Items contained in the model ordinance guidelines are omitted from this Core model ordinance. Definitions omitted: (1) Advancement, Reimbursement (2) Agricultural Product (3) Artistic or cultural organization (4) Consumer (5) In this City, within the City (6) Newspaper (7) Non-profit organization or non-profit corporation (8) Office, or Place of business (9) Precious metal bullion or monetized bullion (10) Product, byproduct (11) Royalties (12) Software, canned software, custom software, customization of canned software, master copies, retained rights (13) Tuition fee Sections omitted: (.040) Agency —sales and services by agent, consignee, bailee, factor or auctioneer (.110) Application to City's business activities. Exemptions and Deductions omitted: Page 20 Model Ordinance October 2025 45 Numerous exemptions and deductions —compare with model guidelines to see if you need additional exemptions or deductions. NOTE: Because of the wording contained in Section .050(2), cities should ensure that their licensing or registration section contains the authority to impose the license or registration. Section .050(2) is intended to relieve persons engaging in business activities that total equal to or less than $20,000 from tax obligations — but not from license or registration fee requirements. Page 21 46 Model Ordinance October 2025 Attachment C UI;�����������uiuuuuluuuuuuuuiuuuluuuluuul a »rrrrr,rrrrrrrr f u w»uuuuuuuuuuiii Illiies a 2026 changes to City B&O Tax Model Ordinance 11111111111111, A city workgroup of city finance directors and tax managers met over the summer to review changes needed to the B&O model ordinance in response to SB 5814 changing the taxation of certain activities from services to sales. Now B&O tax cities must adopt mandatory changes to model ordinance with same effective date: January 1, 2026. SB 5814 changed the tax classification for the following services to retail sales: • Advertising services; • Live presentations; • Information technology services; • Custom website development services; • Investigation, security, and armored car services; • Temporary staffing services; and • Sales of custom software and customization of prewritten software. Changes to Model Ordinance The workgroup decided to limit revisions to the model ordinance to changes necessary to implement the state's changes to sales at retail in SB 5814. The model ordinance changes are as follows: • Core model ordinance .030: Definition of "sale at retail" o adds new subsection (3) to incorporate changes to professional services. o (6) updates language related to custom software and customization of prewritten software. o (12) updates language related to digital goods and digital automated services. • Core model ordinance .030: Definition of "sale at wholesale": adds language to parallel updates to software in retail sales (6). • Technical change: .030 "sale at retail": (1) moves misplaced language to correct typo created when extended warranties were added to the model. While SB 5814 also changed the definitions of digital automated services and digital goods, the model ordinance did not need to be updated because the model ordinance incorporates the state's definition by reference to the RCW. Background on the Model Ordinance 53 cities impose a local B&O tax on the gross receipts of businesses engaging in business in their city. Since 2004, cities with local B&O taxes were required to adopt the B&O tax model ordinance with mandatory uniform provisions related to a minimum threshold, tax classification definitions, engaging in business definition, and allocation and apportionment for activities occurring in more than one jurisdiction. (Chapter 35.102 RCW) There are four main classifications: manufacturing, retail sales, wholesale sales, and services, but some cities have additional classifications. The last revision was another technical fix to the B&O tax model ordinance in response to state law changes related to newspapers and took effect January 1, 2023. 47 48 Tom McLeod, Mayor Finance Department TO: CC: FROM: DATE: SUBJECT: Finance & Governance Committee Mayor McLeod Tony Cullerton, Deputy Finance Director November 24, 2025 October 2025 Financial Report Summary at a Glance October 31, 2025, represents 83% of the calendar year. Revenues: $73.8M (96.6% of budget), up $8.46M (+12.9%) from 2024. Expenditures: $60.66M (80.9% of budget), down $4.46M (-6.9%) from 2024. Overall Position: The City remains on budget. Revenues continue to trend above prior year primarily due to strong intergovernmental revenues and one-time land sales, while expenditures remain below 2024 levels. General Fund Performance: Key Variances: It is important to note that much of the year -over -year revenue growth is attributable to grant revenues and a property sale that will not recur in future years. Significant Increases: • Intergovernmental Revenues — up $2.59M (+37.4%) - Grants • Miscellaneous Revenue — up $381k (+16.1 %) - Procurement Card rebates, Claims processing. • Business & Occupation Taxes — up 1.63M (+$133.5%) from full -year implementation and collections. • Admission Tax — up $197k (+26.4%) Significant Decreases: • Property Tax — down $3.84M (-$26.4%) - $6M unlevied. • Business Licenses — down $157k (-6.2%) General Fund Expenditures Through October, expenditures and transfers -out total $60.66M, or 80.9% of budget, compared to $65.12M in 2024. This represents a decrease of $4.46M (-6.9%) year -over -year. 1 49 Key increases from prior year: • Police Department — $2.96M (+14.9%) — Fleet Contribution was $0 in 2024. • Parks Maintenance — up $253k (+12%) — Construction projects , Tech Svs. • Street Maintenance — $558k (+16.9%) — Repairs & Maint. Svs. Major decreases: • Fire Department — 93.5% (-$11.70M), reflecting transition to PSRFA Projected Ending Fund Balance The General Fund is projected to close the year with an ending balance of $30.9M. After accounting for reserves, contingencies, and one-time revenues, the operationally available balance is $2.5M. Breakdown: 2025 Projected Ending Fund Balance 30,921,118 Less: General Fund Reserve Policy (13,865,764) Less: Contingency Fund 105 (7,703,202) Less One-time Revenue - Property Sale (4,511,436) Less: Less One -time Grants (2,297,866) 2025 Projected Ending Fund Balance (Operational) 2,542,850 Takeaway: A reduced portion of the ending balance is available for ongoing operations. Other Funds: Other Funds — Notable Variances (>5% and $250,000) Fund Revenues Expenditures Key Driver Fund 101 -Hotel/Motel -$74,928 (-8.3%) +$689,676 (67.5%) Revenues slightly under trend; expenditures well below plan due to timing of marketing & service contracts Fund 103-Residential Street -$845,544 (-74.8%) +$762,486 (89.7%) Delayed grant receipts and shifted project timelines Fund 104 -Arterial Street +$532,024 (+9.5%) +$4,786,966 (62.7%) High traffic impact fee collections;most Fund 301 -Land, Rec & Parks -$1,194,288 (-42.0%) +$1,879,671 (61.0%) Large grants tracked on a reimbursement Fund 303 -General Government Improvements -$101,651 (-23.2%) +$484,864 (90.1%) Minimal project activity pending planning and facility assessments Fund 304-Fire Improvements -$556,657 (-92.8%) +$600,000 (100%) Fire impact fees significantly under plan; annualtransfer scheduled later in fiscalyear Fund 305 -Public Safety Plan -$715,624(-64.2%) +$329,706 (25.0%) REETrevenues belowprojections; scheduled transfers continuing Fund 306-City Facilities -$1,076,568 (-58.3%) +$942,853 (94.3%) Capital projects delayed; anticipated rental revenue not recognized Fund 401 -Water Utility -$3,232,514(-28.5%) +$3,964,080 (33.0%) Water consumption -based revenues trending below budget; capital spending staggered Fund 402 -Sewer Utility -$2,545,876 (-20.3%) +$6,265,305 (36.1%) Sewer flow -based revenues below expectations; [a rge capita [ project invoices pending 2 50 Financial Overview Through August 2025 The City's financial condition remains on budget. Revenues continue to trend above prior year levels, while expenditures remain below 2024 levels. Staff will continue to monitor revenues and expenditures closely. Attachments: • October Monthly Report • Ending Fund Balance • Cash & Investment Report Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 3 51 2025 Ac1tiali thro;ugih Oc t►be muuuuuuuuuuuuuuuuuuur. lI u I lulu . 000111111110242 0000000000000111110111111111111111 III 1111110111010 III � 21101010101010101010101010101010101010101010101101 Revenues Transfers In Expenditures Transfers Out 69,298,955 $ 4,529,307 57,032,474 3,622,793 71 601,037 4,836,952 70,298,671 4,663,479 96.8% 93.6% 81.1% 77.7% Net Revenues Less Expenditures $ 13,172,995 $ 1,475,839 General Fund figures include General Fund and Contingency Fund, a Sub -Fund of the General Fund General Fund Overview $80 5 $70 $60 $50 $40 $30 $20 $10 $- Revenues Transfers In ■Year to Date inn Budget Expenditures % of Year Complete 83.3% Transfers Out 52 City of Tukwila Monthly Finance Report 1 Category 2026 Total 2026 Revenues Budget through October Taxes: Property Tax $ 11,999,227 $ Sales & Use Tax 23,283,886 Other Sales Taxes 1,163,100 Gambling Taxes 4,349,500 Business & Occupation Taxes 2,400,000 Utility Taxes 4,493,702 Interfund Utility Taxes 3,167,729 Admission Taxes 859,235 Leasehold Excise Tax 260,000 Business Licenses 3,445,500 Building Permits & Rental Housing Permits 1,985,200 Intergovernmental 5,313,474 Charges for Services 2,612,121 Miscellaneous Revenue 1,568,363 Transfers In - Indirect Cost Allocation 3,111,694 Transfers In From Other Funds 1,725,258 Sale of Capital Assets 4,700,000 10,700,253 $ 19,433,735 907,054 4,196,559 2,848,121 3,886,693 2,618,951 947,170 198,182 2,352,174 1,907,768 9,532,302 2,509,749 2,748,806 2,593,078 1,936,229 4,511,436 (1,298,974) (3,850,151) (256,046) (152,941) 448,121 (607,009) (548,778) 87,935 (61,818) (1,093,326) (77,432) 4,218,828 (102,372) 1,180,443 (518,616) 210,971 (188,564) 89.2% 83.5% 78.0% 96.5% 118.7% 86.5% 82.7% 110.2% 76.2% 68.3% 96.1% 179.4% 96.1 % 175.3% 83.3% 112.2% 96.0% Total $ 76,437,989 $ 73,828,260 $ 2,687,170 96.6% Percent of Year Complete: 83.3% City of Tukwila Monthly Finance Report 2 Property Tax Sales & Use Tax General Fund Major Revenues Gambling Taxes Business & Occupation Taxes Utility Taxes Interfund Utility Taxes Business Licenses Building Permits & Rental Housing Permits Intergovernmental Charges for Services Miscellaneous Revenue Transfers In - Indirect Cost Allocation Transfers In From Other Funds Sale of Capital Assets $- $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 $14 $15 $16 $17 $18 $19 $20 $21 $22 $23 $24 $25 Millions ®Revenues and Transfers In YTD -Total Budget City of Tukwila Monthly Finance Report 3 Category 2023 Revenues 2024 Revenues Through October Through October 2025 Revenues through October Taxes: Property Tax $ 14,836,900 $ 14,541,381 $ Sales & Use Tax 17,972,900 19,666,549 Other Sales Taxes 968,026 916,955 Gambling Taxes 3,426,473 4,122,355 Business & Occupation Taxes - 1,219,685 Utility Taxes 3,536,179 3,532,768 Interfund Utility Taxes 2,318,267 2,412,956 Admission Taxes 768,155 750,440 Leasehold Excise Tax 180,141 195,892 Business Licenses 2,487,025 2,508,975 Building Permits & Rental Housing Permits 2,045,083 1,626,864 Intergovernmental 7,172,562 6,939,492 Charges for Services 2,041,870 1,872,949 Miscellaneous Revenue 1,445,578 2,367,463 Transfers In - Indirect Cost Allocation 2,352,010 2,469,599 Transfers In From Other Funds - 225,891 Sale of Capital Assets 10,700,253 $ (3,841,128) 19,433,735 (232,814) 907,054 (9,901) 4,196,559 74,204 2,848,121 1,628,436 3,886,693 353,925 2,618,951 205,995 947,170 196,730 198,182 2,290 2,352,174 (156,801) 1,907,768 280,904 9,532,302 2,592,810 2,509,749 636,800 2,748,806 381,343 2,593,078 123,479 1,936,229 1,710,338 4,511,436 4,511,436 -26.4% - 1.2% - 1.1% +1.8% +133.5% +10.0% +8.5% +26.2% +1.2% - 6.2% +17.3% +37.4% +34.0% +16.1% +5.0% +757.2% Total $ 61,551,169 $ 65,370,214 $ 73,828,260 $ 8,458,046 +12.9% City of Tukwila Monthly Finance Report 4 General Fund Major Revenues Prior Year Comparisons YTD Property Tax NM NM NM NM NM NM NM In NM NM Sales & Use Tax Gambling Taxes Business & Occupation Taxes Utility Taxes > _ NM N Interfund Utility Taxes 11111111111111111111 Business Licenses Building Permits & Rental Housing Permits Intergovernmental sm Charges for Services Miscellaneous Revenue Transfers In - Indirect Cost Allocation MN MN MN UR UR MN El NM Transfers In From Other Funds .11111111111111111111 Sale of Capital Assets $- $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 $14 $15 $16 $17 $18 $19 $20 $21 Millions 2023 = 2024 e 2025 City ofTukwila Monthly Finance Report 5 Department City Council Mayor's Office Finance Department Community Development (DCD) Municipal Court Police Department Fire Department Recreation Department Park Maintenance Dept Public Works Dept Street Maintenance Dept Non -Departmental Expenses Transfers Out - Debt Service Transfers Out to Other Funds $ 2025 Total Budget 400,093 $ 9,748,218 4,343,230 5,732,921 2,329,525 28,411,330 1,398,192 4,110,113 2,659,037 4,977,693 4,761,271 1,427,046 3,692,390 971,089 311,144 $ 7,281,480 3,966,461 4,338,279 1,845, 836 22, 810, 941 1,098, 504 2,833,181 2,367,240 3,547,723 3,854,286 2,777,400 2,769,293 853,500 88,949 2,466,738 376,769 1,394,642 483,689 5,600,389 299,688 1,276,932 291,797 1,429,970 906,985 (1,350, 354) 923,097 117,589 77.8% 74.7% 91.3% 75.7% 79.2% 80.3% 78.6% 68.9% 89.0% 71.3% 81.0% 194.6% 75.0% 87.9% Total $ 74,962,148 $ 60,655,268 $ 14,306,880 80.9% Percent of Year Complete: 83.3% City of Tukwila Monthly Finance Report 6 Thousands $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- General Fund Expenditures and Transfers Out by Department G°aS‘G\ o oG a�Ga AGO a Ot �a� o° e � �y o�o�yo� 0�\����ay 0\4 Qeoti O'er° ®Expenditures and Transfers Out YTD -Total Budget City of Tukwila Monthly Finance Report 7 2023 Expenses through 2024 Expenses through October October 2025 Expenses th ctober City Council Mayor's Office Finance Department Community Development (DCD) Municipal Court Police Department Fire Department Recreation Department Park Maintenance Dept Public Works Dept Street Maintenance Dept Non -Departmental Expenses Transfers Out - Debt Service Transfers Out to Other Funds 301,496 $ 6,957,896 2,698,052 3,788,569 1,333,369 16, 969,178 11, 507,190 2,528,967 1,681,000 3,166,803 2,784,525 737,102 3,562,371 241,250 316,379 $ 6,695,534 3,503,504 4,403,678 1,804,762 19,846,969 12,545,603 2,914,850 2,113, 986 3,324,793 3,296,363 768,161 3,154, 758 427,598 311,144 $ 7,281,480 3,966,461 4,338,279 1,845,836 22,810,941 1,098,504 2,833,181 2,367,240 3,547,723 3,854,286 2,777,400 2,769,293 853,500 Total $ 58,257,768 $ 65,116,939 $ 60,655,268 $ Notes: 'In 2025, vehicle leases across the General Fund are now Non -Departmental exenses. From 2023-2024, these expenses were paid from savings accumulated in the Fleet Fund (5,235) 585,946 462,957 (65, 399) 41,074 2,963,972 (11,447,099) (81,669) 253,254 222,930 557,923 2,009,239 (385, 465) 425,902 (4,461,671) - 1.7% +8.8% +13.2% - 1.5% +2.3% +14.9% - 91.2% - 2.8% +12.0% +6.7% +16.9% +261.6% - 12.2% +99.6% -7% City of Tukwila Monthly Finance Report 8 $25,000 t $20,000 $15,000 $10,000 $5,000 General Fund Expenditures by Department Prior Year Comparions YTD J� G° e°�°ate\° Qa•cmea� Qa� 2023 = 2024 ® 2025 \ Ne ca° aa5 ac4\ Q�c ° t Qar�G �•ac� �a+� Oe,°N.5 ore C, rn�e0- a- �o aka •ac City of Tukwila Monthly Finance Report 9 Category 2025 Total Bud€Jet 2025 Expenses through October Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Other Expenditures Transfers Out - Debt Service Transfers Out to Other Funds 33,466,376 $ 12,851,718 1,640,914 22,109,457 200,000 30,205 3,692,390 971,089 26,447,190 9,544, 638 1,243,993 19,007,542 767,962 21,148 2,769,293 853,500 7,019,186 3,307,080 396,921 3,101,915 (567,962) 9,057 923,097 117,589 79.0% 74.3% 75.8% 86.0% 384.0% 70.0% 75.0% 87.9% Total Thousands $40,000 $35,000 $30,000 $25,000 $20,000 $15, 000 $10, 000 $5,000 $- Salaries, Wages, & Overtime $ 74,962,149 $ 60,655,266 $ 14,306,883 Percent of Year Complete: General Fund Expenditures and Transfers Out by Category 80.9% 83.3% ® I IMMINNO ® - Benefits Supplies Services Land, Structures, Other Expenditures Transfers Out - Debt Transfers Out to Other Machinery, Equipment Service Funds ■ Expenditures and Transfers Out YTD 2025 Total Budget City of Tukwila Monthly Finance Report 10 Category 2023 Expenses through 2024 Expenses through - 202 Expenses through October October October Salaries, Wages, & Overtime Benefits Supplies Services Services excluding PSRFA Fire Contract Land, Structures, Machinery, Equipment Other Expenditures Transfers Out - Debt Service Transfers Out to Other Funds 21,027,381 8,133,029 1,060,734 23,150,943 12,938,105 1,082,062 3,562,371 241,250 25,456,092 $ 9,047,840 1,125,745 25,679,015 14,520,673 225,891 3,154,758 427,598 26,447,190 9,544,638 1,243,993 19,007,542 19,007,542 767,962 21,148 2,769,293 853,500 991,098 496,798 118,248 (6,671,473) 4,486,869 542,071 21,148 (385,465) 425,902 +3.9% +5.5% +10.5% -26.0% +30.9% +240.0% -12.2% +99.6% Total Thousands $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- $ 58,257,770 $ 65,116,939 $ 60,655,266 $ General Fund Expenditures by Category Prior Year Cornparions YTD Salaries, Wages, & Benefits Supplies Services Overtime PSRFA Fire Contract Machinery, Equipment 2023 2024 ■ 2025 NUM (4,461,673) -6.9% Services excluding Land, Structures, Other Expenditures Transfers Out - Debt Transfers Out to Other Service Funds City of Tukwila Monthly Finance Report 11 Fund 101 Hotel/Motel Special Revenue Fund Overview 2025'°tf roe4tl 1 OctObe ul 1IIIIIIIIIIIIIII IIIIIJ, III Hlllllllllll atilt l n' Revenues Expenditures Transfers Out 822,822 $ 307,395 24,341 897,750 992,204 29,209 91.7% 31.0% 83.3% Net Revenues Less Expenditures $ 491,086 $ (123,663) % of Year Complete 83.3% City of Tukwila Monthly Finance Report 12 63 Fund Fund 101 Hotel/Motel Special Revenue Fund Expenditures and Transfers Out by Category Category 2026 Tote1111Eudge ��.111111iiiiiiii»»» f125' Expen s �nrough OotobeIuugllllllll IIII u�u�i u WInmm Salaries, Wages, & Overtime Benefits Supplies Services Transfers Out - Internal Cost Allocation 51,393 $ 20,561 3,000 917,250 29,209 43,362 9,090 933 254,011 24,341 8,031 11,471 2,067 663,239 4,868 84.4% 44.2% 31.1% 27.7% 83.3% Total Vb C t4 $1 200 ,000 $000 $600 $400 $200 Category 1,021,413 1,021,413 $ 331,737 $ Fund 101 Expenditures 2025 Expenditures YTD 2025 Total Budget Revenues and Transfers In by Category III 1111111 yo 2025" Tota1111B?udge »»» 025 Revenues rougtrOotobe uuugllllll 689,676 32.5% % of Year Complete 83.3% IIuu 1000000000000 Hotel/Motel Tax Investment Earnings 850,000 $ 47,750 767,447 $ 55,375 (82,553) 7,625 90.3% 116.0% Total $920 Ub C Vb $900 0880 0860 0840 0820 0800 $ 7O0 897,750 $ Fund 101 Revenues 2025 Revenues YTD 822,822 $ 2025 Tota Budget (74,928) 91.7% % of Year Complete 83.3% 64 City of Tukwila Monthly Finance Report 13 Fund 101 Hotel/Motel Special Revenue Fund Year -to -Year Expenditures & Transfers Out by Category 2023 Expenses 2024 Expenses 2025"Expenses through October through October through Octbb.,rormilm 1 1 1111111 11111111111111111111111111111111111111111111111111111111111111 Salaries, Wages, & Overtime Benefits Supplies Services Transfers Out - Internal Cost Allocation 57,358 $ 14,456 154 270,533 22,080 78,169 $ 17,980 73 279,520 23,182 43,362 $ (34,807) 9,090 (8,890) 933 860 254,011 (25,509) 24,341 1,159 -44.5% -49.4% +1178.1% -9.1% +5.0% Total 364,581 $ 398,924 $ 331,737 $ Fund 101 Hotel/Motel Special Revenue Fund Year -to -Year Revenues and Transfers In by Category (67,187) -16.8% Category through October 2023 Revenues 2024 Revenues through October 2025 Reverties through O1bberm' 000000ill 100000000000000000000000000 Hotel/Motel Tax Investment Earnings 809,505 $ 98,785 818,748 $ 132,913 767,447 $ 55,375 (51,301) -6.3% (77,538) -58.3% Total Expenditures and Transfers Out 908,290 $ 951,661 $ Fund 101 Prior Year Comparisons YTD 822,822 $ (128,839) -13.5% 2023 2024 2025 Revenues and Transfers In 11111111111•11•11111111 $- $100 $200 $300 $400 $500 $500 $700 $800 $900 $4000 Thousands City of Tukwila Monthly Finance Report 14 65 Fund 103 Residential Street Fund Overview IIIIIIIIIIIIIIII lllllf,II II oor gloom 11aiu m Revenues Expenditures $ 284,456 $ 87,514 1,130, 000 850,000 25.2% 10.3% Net Revenues Less Expenditures $ 196,942 $ 280,000 % of Year Complete 83.3% 66 City of Tukwila Monthly Finance Report 15 Category Fund Fund 103 Residential Street Fund Expenditures and Transfers Out by Category 2026TotatI1Eiudget.�...iiiiiii»»» f125' Expense �nrough OotobeIuugiiiiiiii Inmm 11 I it IIII u�u�i u Olantiterrirrirrill Salaries, Wages, & Overtime Benefits Supplies Services - $ 850,000 1,697 298 11,437 $ 74,082 (1,697) (298) (11,437) 775,918 8.7% Total Vb C3 m $500 $900 $700 $600 $500 $400 $300 $200 $100 Category 850,000 $ 850,000 $ Fund 103 Expenditures 2025 Expenditures YTD 87,514 $ 2025 Tota Budget Revenues and Transfers In by Category 2025" TotatIl1E'iudget.1 ;;;iiiib»»»»> '�6r©ug' 2'025' Revenuesloop If II uugl Illllll . iii 762,486 10.3% % of Year Complete 83.3% loo 1000000000000 Olantiterrirrirrill Utility Taxes Grant Revenues State Entitlements Investment Earnings $ 100,000 $ 724,000 280,000 26,000 228,147 56,309 (100,000) (724,000) (51,853) 30,309 0.0% 0.0% 81.5% 216.6% Total ,000 $000 $600 $400 $200 $ 1,130,000 $ Fund 103 Revenues 2025 Revenues YTD 284,456 $ 2025 Tota Budget (845,544) 25.2% % of Year Complete 83.3% City of Tukwila Monthly Finance Report 16 67 Fund 103 Residential Street Fund Year -to -Year Expenditures & Transfers Out by Category 2023 Expenses 2024 Expenses 2025"'Expenses,,, through October through October through Oe-bAT uuu 11111 III Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment 9,926 $ 5,620 41,684 341,211 129,627 2,066 $ 890 15,729 224,905 56,171 1,697 $ (369) 298 (592) 11,437 (4,292) 74,082 (150,823) (56,171) -17.9% -66.5% -27.3% -67.1% -100.0% Total 528,068 $ 299,761 $ Fund 103 Residential Street Fund Year -to -Year Revenues and Transfers In by Category 87,514 $ (212,247) -70.8% Category through through October 2023 Revenues 2024 Revenues through October 2025 Reve es through 00 oberm' 11111111111111111111111111111111111 1111111 11111111111111111111111111111111111111111 1111111111111. tE Grant Revenues State Entitlements Investment Earnings Transfers In 3,133 $ 245,448 27,867 70,797 $ 234,873 56,520 183,598 228,147 56,309 $ (70,797) (6,726) (211) (183,598) -100.0% -2.9% -0.4% -100.0% Total Expenditures arrd Transfers Out Revenues and Transfers In 926,448 $ 545,788 $ Fund 103 Prior Year Comparisons YTD 284,456 $ (261,332) -47.9% 0100 0200 0300 0400 $500 0000 0700 0800 $900 04000 Thousand;, 2023 2024 ■ 2025 68 City of Tukwila Monthly Finance Report 17 Fund 104 Arterial Street Fund Overview 2025'"throe 4�l 1 S ctOberr; IIIIIIIIIIIIIIII lllllf,e III MIilk Revenues Expenditures 6,144,404 $ 2,849,761 5,586,001 7,636,726 110.0% 37.3% Net Revenues Less Expenditures $ 3,294,643 $ (2,050,725) % of Year Complete 83.3% City of Tukwila Monthly Finance Report 18 69 Category Fund Fund 104 Arterial Street Fund Expenditures and Transfers Out by Category 2026TotatI1Eiudget.�...iiiiiiii»»»f125' Expense �nrough OotobeIuugllllllll Inmm 11 1 IIII u�u�l u Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment 793,142 312,185 23,200 6,508,200 563,377 $ 187,844 82,218 1,352,623 663,699 229,765 124,341 (59,018) 5,155,577 (663,699) 71% 60% 354.4% 20.8% Total it9,000 t8,000 $7,000 $G,000 it5,000 it4,000 it3,000 it2,000 it1,000 Category 7,636,727 $ Fund 104 Expenditures 2025 Expenditures YTD 2,849,761 $ 2025 Total Budget Revenues and Transfers In by Category 2025"'Tot'a11111E''ud though o4GtokyoIruugllllllll 4,786,966 37.3% % of Year Complete 83.3% 111141111111111111111111111111111111111111111111111111111 ulll!II III IIIIIU IIII Utility Taxes Parking Tax Real Estate Excise Tax (REET) Permits Franchise Fees Grant Revenues State Entitlements General Government Revenue Traffic Impact Fees Fines and Penalties Other Income Investment Earnings Total $6,200 $6,100 $6,000 $5,900 it5,000 it5,700 it5,G00 it5,500 it5,400 it5,300 1,320,000 800,000 500,000 1 450,000 2,026,000 135,000 200,000 2,000 80,000 73,000 5,586,001 $ Fund 104 Revenues 2025 Revenues YTD 1,276,151 $ 807,832 356,359 (43,849) 7,832 (143,641) (1) 394,370 (55,630) 971,491 (1,054,509) 116,169 (18,831) 360 360 1,496,464 1,296,464 748.2% 6,500 4,500 325.0% 419,724 339,724 524.7% 272,605 199,605 373.4% 6,118,025 $ 532,024 109.5% 2025 Total Budget 96.7% 101.0% 71.3% 0.0% 87.6% 48.0% 86.1% % of Year Complete 83.3% 70 City of Tukwila Monthly Finance Report 19 Fund 104 Arterial Street Fund Year -to -Year Expenditures & Transfers Out by Category 2023 Expenses 2024 Expenses 2025"'Exnses,,, through October through October through; C) efkm 1111111100000000000000000000000000 Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment 335,604 117,736 88,103 1,731,729 1,407,365 $ 455,776 $ 148,470 57,478 2,069,108 1,404,622 563,377 187,844 82,218 1,352,623 663,699 $ 107,601 39,374 24,740 (716,485) (740,923) +23.6% +26.5% +43.0% -34.6% -52.7% Total 3,680,537 $ 4,135,454 $ 2,849,761 $ (1,285,693) Fund 104 Arterial Street Fund Year -to -Year Revenues and Transfers In by Category 2023 Revenues 2024 Revenues OategJr;((((alalalalalalala(((((((((alalalalala((((((l, through October through October 2025 Revenues through Ocfiebergiiiiiiii l000 m um '� i ii gill a i�ii Vimo „" -31.1% Utility Taxes Parking Tax Real Estate Excise Tax (REET) Permits Franchise Fees Grant Revenues State Entitlements General Government Revenue Traffic Impact Fees Fines and Penalties Other Income Investment Earnings 428,632 663,174 271,074 831 1,114,345 124,414 762,805 11,081 172,334 217,656 1,299,729 $ 780,466 479,362 2 350,150 1,269,927 119,386 335 213,642 2,540 69,200 268,115 1,276,151 $ (23,578) 807,832 27,366 356,359 (123,003) (2) 394,370 44,220 971,491 (298,436) 116,169 (3,217) 360 25 1,496,464 1,282,822 6,500 3,960 419,724 350,524 272,605 4,490 -2% +3.5% -25.7% -100.0% +12.6% -23.5% -2.7% +7.5% +600.5% +155.9% +506.5% +1.7% Total Expenditures arrd T.rarresfei Cut Revenues and Transfers In 3,766,346 $ 4,852,854 $ Fund 104 Prior Year Comparisons YTD $1,000 $2,000 $3,000 $4,000 6,118,025 $ 1,265,171 $5, 000 $s,000 $ 7,000 usaiid +26.1 2023 2024 ■ 2025 City of Tukwila Monthly Finance Report 20 71 Fund 109 Drug Seizure Fund Overview 2025'"throe 4tl 1 S ctOberr; IIIIIIIIIIIIIIII IIIIIJ,e III Dlllilllllll ilk Revenues Expenditures 12,719 $ 71,959 98,100 73,000 13.0% 98.6% Net Revenues Less Expenditures $ (59,240) $ 25,100 % of Year Complete 83.3% 72 City of Tukwila Monthly Finance Report 21 Category Fund Fund 109 Drug Seizure Fund Expenditures and Transfers Out by Category 2026 dot461111Euclget.. »>iiiiiii. 202ti' Expenses fro ughOotoberuugiiiiiiii u uu IIII 111111111111,... Supplies Services 36,000 $ 37,000 45,713 $ 26,246 (9,713) 10,754 127.0% 70.9% Total $73 $72 $72 $72 $72 $72 $71 Category 73,000 73,000 $ Fund 109 Expenditures 2025 Expenditures YTD 71,959 $ 2025 Tota Budget Revenues and Transfers In by Category 2026 TotatIlEudge ��.111111iiiiii.11, 25c Revenues fro ughOotoberuugiiiiiiii 1,041 98.6% % of Year Complete 83.3% 11111 u uu IW i Intergovernmental Other Income Investment Earnings 35,000 $ 60,000 3,100 12,719 $ (22,281) (60,000) (3,100) 36.3% 0.0% 0.0% Total 98,100 $ Fund 109 Revenues 2025 Revenues YTD 12,719 $ 2025 Total Budget (85,381) 13.0% % of Year Complete 83.3% City of Tukwila Monthly Finance Report 22 73 Fund 109 Drug Seizure Fund Year -to -Year Expenditures & Transfers Out by Category 2023 Expenses 2024 Expenses 2026 Expenses through October through October through OCtOberim mm MAI 1111111 Supplies Services 11,423 $ 106,038 12,112 $ 49,339 45,713 $ 33,601 26,246 +277.4% (23,093) -46.8% Total 117,461 $ 61,451 $ 71,959 $ Fund 109 Drug Seizure Fund Year -to -Year Revenues and Transfers In by Category 10,508 +17.1% Category through October 2023 Revenues 2024 Revenues through October 2025 Reverties through Osibberm' WI loorlastattostatooriolliiiiII Grant Revenues Intergovernmental Other Income Investment Earnings 109,333 79,010 $ - $ 157,393 12,719 $ 12,719 (157,393) -100.0% Total Expenditures and Transfers Out Revenues and Transfers In 188,343 $ 157,393 $ Fund 109 Prior Year Comparisons YTD 12,719 $ (144,674) -91.9% 20 40 60 80 100 120 140 160 180 200 Thousanth 2023 2024 2025 74 City of Tukwila Monthly Finance Report 23 IIIIIJ, III 111111 Revenues Expenditures Transfers Out $ 1,660,012 $ 1,203,935 2,841,300 2,431,000 652,605 58.4% 49.5% 0.0% Net Revenues Less Expenditures $ 456,077 $ (242,305) % of Year Complete 83.3% City of Tukwila Monthly Finance Report 24 75 r Categ'ony- 2025"'To1 1111Ettdget.�1111111iiiiiiii»»» f1o5'���Exp�n s '�6roag h 10040.eIruugllllllll IIII u�u�i uInmm ill 1111111111111 Supplies Services Land, Structures, Machinery, Equipment Transfers Out to Other Funds 30,000 $ 1,876,000 525,000 652,605 19,994 $ 769,171 414,769 10,006 1,106,829 110,231 652,605 66.6% 41.0% 79% 0% Total Vb $3,500 u; $3,000 $2, 500 $2,000 $1,500 $1,000 $500 Category $ 3,083,605 $ 1,203,934 $ Fund 301 Expenditures 2025 Expenditures YTD 0o r - „/, /�ja i/r.✓iiiio „ i 2025 Total Budget 2025"'TotatiB?udget...iiiiiii»»»>'2026 Revenues though Ootebe uugllllllll 1,879,671 39.0% % of Year Complete 83.3% iiiIIIIIII IIIIII a .IIIIIIU duo iuu Immo ill 0 Property Tax Real Estate Excise Tax (REET) Grant Revenues Park Impact Fees Investment Earnings 207,800 $ 500,000 1,976,000 100,000 57,500 176,628 $ 1,249,810 59,576 160,998 (31,172) (500,000) (726,190) (40,424) 103,498 85.0% 0.0% 63.2% 59.6% 280.0% Total Vb $3 000 00 $2,000 $1,500 $1,000 $500 2,841,300 $ 1,647,012 $ Fund 301 Revenues 2025 Revenues YTD 2025 Total Budget (1,194,288) 58.0% % of Year Complete 83.3% 76 City of Tukwila Monthly Finance Report 25 /% zieggffsszsgszczwEsszszsgszczwEsszszsgszczcz 2023 Expenses 2024 Expenses 2025"'Expenses,,, :hrough October through October through ;OCO eruuuuu Supplies Services Land, Structures, Machinery, Equipment 74,565 148,007 $ 10,371 1,712,384 $ 19,994 9,623 769,171 $ (943,213) 414,769 414,769 +92.8% -55.1 % Total 222,572 $ 1,722,755 $ 1,203,934 $ (518,821) -30.1% Oategpnyaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaithrough October 2023 Revenues 2024 Revenues through October 2025 Reve es through O01bberiiiiii' ll 100000000000000000000000000 Property Tax Real Estate Excise Tax (REET) Grant Revenues Park Impact Fees Investment Earnings Transfers In 129,956 $ 36,224 135,937 $ 176,628 $ 40,691 +30% 1,249,810 1,249,810 983,847 101,656 59,576 (42,080) -41.4% 140,959 180,361 160,998 (19,363) -11% 64,250 31,000 (31,000) -100% Total Expenditures arrd Transfers Out Revenues and Transfers In $ 1,355,236 $ 448,954 $ 1,647,012 $ 1,198,058 +266.9% Fund 301 Prior Year Comparisons YTD '3200 '3400 $600 $000 <34000 <34200 <34400 $4600 '34800 '32,000 Thousand, 2023 2024 ■ 2025 City of Tukwila Monthly Finance Report 26 77 Fund 303 General Government Improvements Overview 2025'"tf throw 1 S ctOberlr; IIIIIIIIIIIIIIII IIIIII,e III OIIIIIIIIIII atilt IIIII IIIIIII11 Revenues Transfers In Expenditures 50,853 $ 328,500 53,136 1,000 438,000 538,000 5085.3% 75.0% 9.9% Net Revenues Less Expenditures $ 326,217 $ (99,000) % of Year Complete 83.3% 78 City of Tukwila Monthly Finance Report 27 Fund 303 General Government Improvements Expenditures and Transfers Out by Category Category 026 Expenses 2026 TotatllBudget.....yy nroughmOotober1111111111111 1111,111 iv1)111,111".6...lia Services 538,000 53,136 $ 484,864 9.9% Total ) 0 $600 $500 $400 $300 $200 $100 538,000 Fund 303 Expenditures 2025 Expenditures YTD 53,136 $ 2025 Tota Budget Revenues and Transfers In by Category 484,864 9.9% % of Year Complete 83.3% Category ,02,6'Revenues 202CTotalend ••• • ••• • „, „„„„„„„„„„„„„ . ll ough Investment Earnings Transfer In From General Fund 1,000 $ 438,000 8,849 $ 328,500 7,849 (109,500) 884.9% 75% Total $500 2 $450 0 H $400 $350 $300 $250 $200 $150 $100 $50 $- 439,000 $ Fund 303 Revenues 2025 Revenues YTD 337,349 $ 2025 Total Budget (101,651) 76.8% % of Year Complete 83.3% City of Tukwila Monthly Finance Report 28 79 Fund 303 General Government Improvements Year -to -Year Expenditures & Transfers Out by Category 2023 Expenses 2024 Expenses 20261Expenses.. Categorw.,;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;, through October through October through ri MAO 1111111 111111111100000000000000000000000000 Services 149,185 $ 1,146 $ 53,136 $ 51,990 +4536.6% Total 149,185 $ 1,146 $ Fund 303 General Government Improvements Year -to -Year Revenues and Transfers In by Category 53,136 $ 51,990 +4536.6% Category through October 2023 Revenues 2024 Revenues through October 2025 Reverties through Osibberm' 000000ill sir 100000000000000000000000000 Investment Earnings Transfer In From General Fund 19,237 $ 19,430 $ 8,849 $ (10,581) 328,500 328,500 -54% Total Expenditures and Transfers Out Revenues and if ra nsfem In 19,237 $ 19,430 $ Fund 303 Prior Year Comparisons YTD 337,349 $ 317,919 +1636.2% 1111•1111111111111111111111111 $- $50 $100 $150 $200 $250 $300 $350 $400 Thousands' 2023 2024 • 2025 80 City of Tukwila Monthly Finance Report 29 IIIIIIIIIIIIIIII 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 II IIIIIJ III 96,0 III 111111 7.1 Revenues Transfers Out 43,343 $ 600,000 600,000 7.2% 0.0% Net Revenues Less Expenditures $ 43,343 $ % of Year Complete 83.3% City of Tukwila Monthly Finance Report 30 81 Category 2026 TotatIlBudget...iiii .1141 Transfers Out tf ough OotobeIruuullllllll 11 I IIII u�u�i u1161111111 IW i Transfers Out to Other Funds 600,000 $ 600,000 0% Total $raa Vb C3 $r7aa $500 $400 $300 $200 $100 $ 600,000 $ Fund 304 Transfers Out 2025 Expenditures YTD 2025 Tota Budget if 600,000 0.0% % of Year Complete 83.3% Category 2026 TotatIlBudget.�..�iiiiiiii»»» 025'c evenu s 1f ough OotobeIuugllllllll Fire Impact Fees Investment Earnings 600,000 $ 42,936 $ 407 (557,064) 407 7.2% Total $r00 $500 $400 $300 $200 $100 600,000 $ Fund 304 Revenues 2025 Revenues YTD 43,343 $ 2025 Total Budget (556,657) 7.2% % of Year Complete 83.3% 82 City of Tukwila Monthly Finance Report 31 2023 Expenses 2024 Expenses 2025 Expenses through October through October through ri 1,11,0 11111 III AMvia 1141111 111111111 I M11111111111111111 .„1„1„ Transfers Out to Other Funds Total Category through October 2023 Revenues 2024 Revenues through October 2025 Reverties through Os1bberimmi 1111 II II II 1101010 00000000000000. lill1011 1110111 11111111111111111111111111111111111111111 1111111111111. Fire Impact Fees 699,274 $ 75,013 $ 42,936 $ (32,077) -42.8% Total Expenditures and Transfers Out Revenues and -fransfers In $- 699,274 $ 75,013 $ Fund 304 Prior Year Comparisons YTD 42,936 $ (32,077) -42.8% $100 $200 $300 $400 $500 $600 $700 3800 Thousands' 2023 2024 • 2025 City of Tukwila Monthly Finance Report 32 83 4 2025 thrdlurpdPer 11,4 IIIIIIII 111111111111111111111 r III let Revenues Transfers In Transfers Out 399,377 $ 989,118 15,000 1,100, 000 1,318,824 2662.5% 0.0% 75.0% Net Revenues Less Expenditures $ (589,741) $ (203,824) % of Year Complete 83.3% 84 City of Tukwila Monthly Finance Report 33 Categ'ony- m glllllll111 �. u 11111111 2026Totlaill1Eudgelmmmmmmmmmmiiiiiiii»»12025' Expenses m ougnmantobeIruugllllllll u uu IIII u�u�i u WInmm Transfers Out to Other Funds 1,318,824 $ 989,118 $ 329,706 75% Total U1,200 �1,000 $000 $(]00 $400 $200 Category 1,318,824 $ Fund 305 Expenditures 2025 Expenditures YTD mom, mi ii(iiiii(u)u N 2025'To1 1111E''?uda,n mmmmmmmmmmmiiiiiiii»»»> thfoughmigme nnesmmmmmmm 989,118 $ 2025 Total Budget lillll9 2026 Revenues 329,706 �IIIIIIIIIIIVIIu m1il" 75.0% % of Year Complete 83.3% u�uu 1000000000000 loon Real Estate Excise Tax (REET) Investment Earnings Transfers In - $ 15,000 1,100,000 356,359 $ 43,017 356,359 28,017 (1,100,000) 286.8% 0% Total Vb C t4 $1, 200 1,000 $000 $600 $400 $200 $ 1,115,000 $ 399,376 $ (715,624) Fund 305 Revenues 2025 Revenues YTD 2025 Tota Budget 35.8% % of Year Complete 83.3% City of Tukwila Monthly Finance Report 34 85 oo r 101 11111111 VIO IIII IIIIII 1111 1111 1111 1111 Ili 2023 Expenses 2024 Expenses 2025 Expenses :hrough October through October through OCtObermifimm 1 1111111 1111111 111111111100000000000000000000000000 Transfers Out to Other Funds — $ — $ 989,118 989,118 Total (1,700) $ o 001110 r 1111 111 1111 11111111 1 10 1111111 1 989,118 989,118 CategOry through October 2023 Revenues 2024 Revenues through October 2025 Revenues through Octobermm 000000111100'O000' 0 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111191010101010101000101010101010101010101010101010101010 Real Estate Excise Tax (REET) Investment Earnings 234,850 $ 41,163 479,362 $ 53,104 356,359 $ (123,003) 43,017 (10,087) -25.7% -19% Total Expenditures and Transfers Out Revenues and Transfers In $ (2.0M 276,013 $ 532,466 $ Fund 305 Prior Year Comparisons YTD 399,376 $ (133,090) -25.0% 1111111111111•1111111111 111111111 `3200 `3400 `3600 `3800 `34000 <3 4200 Thousands 2023 2024 • 2025 City of Tukwila Monthly Finance Report 35 86 III HI 1 IIIIII III i I I I I 2025 through ctOb r IIIIII 010 III MIR „m II here r Revenues Transfers In Expenditures 20,369 $ 750,000 57,147 846,937 1,000,000 1,000,000 2.4% 75.0% 5.7% Net Revenues Less Expenditures $ 713,222 $ 846,937 % of Year Complete 83.3% City of Tukwila Monthly Finance Report 36 87 Category II "•'1111['c 6 1m 1111 Ill101 Ml'irM1111IMI 11'1; 11mII 911 ilioi iii10111 ""le 026 Expenses 2026 To1a1l1lEttdger.11111111111111111116rotig 10000F1111111111111I 111 arance / Nardi 410111 Services 1,000,000 $ 57,147 $ 942,853 5.7% Total $1 200 .g1 Si , 000 $800 $600 $400 $200 $ 1,000,000 $ Fund 306 Expenditures 11111111.111111111111 2025 Expenditures YTD IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Category 11 57,147 $ 2025 Total Budget T 9 2026 Revenues 2025 To1a1111Budger.1111111111111111116ro h 10040011111111111111 942,853 5.7% % of Year Complete 83.3% 11111,1111li t 001 11,,,,ormancelsommilal, 1.111 EH 1111111111111 Investment Earnings Rent & Concessions Transfers In 5,000 $ 841,937 1,000,000 20,369 $ 750,000 15,369 (841,937) (250,000) 407.4% 0.0% 75% Total $2,000 2 $1,800 $1,600 $1A00 $1,200 $1,000 $800 $600 $400 $200 $- 1,846,937 $ Fund 306 Revenues 2025 Revenues YTD 770,369 $ (1,076,568) 2025 Tota Budget 41.7% % of Year Complete 83.3% 88 City of Tukwila Monthly Finance Report 37 iii II IIni „Ii!Mit,'"1. II '111'1.1111 1111 IIIIIIIII Category through October 2023 Expenses 2024 Expenses 2026 Expenses through October through Octobe IY1 00000000:muumm, Services Land, Structures, Machinery, Equipment 601,126 $ 1,431,735 1,982,401 $ 808 57,147 $ (1 925,254) -97.1% (808) -100.0% Total 2,040,771 $ 1,983,209 $ 57,147 $ (1,926,062) -97.1% 1111111111111111111 i,,.1(1111111111111111111111111111111111 III ffNlit" ''.:14"41$tmadititt 2023 Revenues 2024 Revenues through October through October 2025 Revenues through Octet Grant Revenues Investment Earnings Transfers In 26,597 $ 246,870 15,764 $ 750,000 20,369 $ 750,000 (246,870) 4,605 -100.0% +29.2% 0% Total Expenditures and Transfers Out Revenues and Transfers In $- $ 26,597 $ 1,012,634 $ Fund 306 Prior Year Comparisons YTD $500 $1,000 770,369 $ (242,265) -23.9% $4500 $2,000 $2,500 "thousands 2023 2024 2025 City of Tukwila Monthly Finance Report 38 89 Fund 401 Water Utility Fund Overview IIIIIIIIIIIIIIII lllllf,e III III �i a iu Revenues Expenditures Transfers Out $ 8,108, 843 $ 6,838,400 1,198, 731 11,341,356 10, 493, 596 1,507,615 71.5% 65.2% 79.5% Net Revenues Less Expenditures $ 71,712 $ (659,855) % of Year Complete 83.3% 90 City of Tukwila Monthly Finance Report 39 Fund Fund 401 Water Utility Fund Expenditures and Transfers Out by Category Category es 2026TotatI1Eiudget�.1111111iiiiiiii»»» f125' Experts �nrough OotobeIuugllllllll IIII uhu�i u 11111111111111111111111111111111111111111111111111111 Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Other Expenditures Transfers Out - Internal Cost Allocation Transfers Out - Debt Service Transfers Out to Other Funds 957,112 538,827 3,105,196 5,677,288 215,173 816,232 358,050 333,333 742,596 $ 303,731 2,866,677 1,758,799 1,165,539 1,058 680,194 268,537 250,000 214,516 235,096 238,519 3,918,489 (1,165,539) 214,115 0.5% 136,038 83% 89,513 75% 83,333 75% 78% 56% 92.3% 31.0% Total $ $14 000 V) r vy) $12,000 rr r... I--- $10,000 $0,000 $6,000 $4,000 $2,000 12,001,211 $ 8,037,131 $ Fund 401 Expenditures and Transfers Out 2025 Expenditures YTD 2025 Total Budget Revenues and Transfers In by Category 3,964,080 67.0% % of Year Complete 83.3% Category 2025" Tot'a1ulBud though o4GtokyoIruugllllllll mon EMIN 1111111111111111111111111111111111111111111111111 Water Sales Security Revenue Other Income Investment Earnings Bond Proceeds Total V) $12, 000 $10,000 0 $8,000 $6,000 $4,000 $2,000 9,239,856 $ 1,500 100,000 2,000,000 11,341,356 $ Fund 401 Revenues 2025 Revenues YTD 7,999,992 4,010 28,340 76,500 8,108,842 $ 2025 Total Budget (1,239,864) 4,010 26,840 (23,500) (2,000,000) (3,232,514) 86.6% 1889.3% 76.5% 0% 71.5% % of Year Complete 83.3% City of Tukwila Monthly Finance Report 40 91 Fund 401 Water Utility Fund Year -to -Year Expenditures & Transfers Out by Category 2023 Expenses 2024 Expenses 2025"'Expenses,,, through October through October through Oco .,aruuuu Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Other Expenditures Transfers Out - Internal Cost Allocation Transfers Out - Debt Service Transfers Out to Other Funds $ 608,243 280,869 2,703,810 1,701,252 829,662 83,493 616,960 268,534 14,819 $ 741,110 327,063 2,748,748 1,640,669 56,065 82,596 647,804 268,534 255,000 $ 742,596 303,731 2,866,677 1,758,799 1,165,539 1,058 680,194 268,537 250,000 $ 1,486 (23,332) 117,929 118,130 1,109,474 (81,538) 32,390 3 (5,000) +0.2% -7.1% +4.3% +7.2% +1978.9% -99% +5% +0% -2% Total $ 7,107,642 $ 6,767,589 $ 8,037,131 $ 1,269,542 Fund 401 Water Utility Fund Year -to -Year Revenues and Transfers In by Category +18.8% Categpnyaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaithrough October 2023 Revenues 2024 Revenues through October 2025 Revenues through October., Water Sales Security Revenue Other Income Investment Earnings $ 6,845,659 8,747 34,405 163,743 $ 7,073,323 6,626 1,303 135,645 $ 7,999,992 4,010 28,340 76,500 $ 926,669 +13% (2,616) -39.5% 27,037 +2075.0% (59,145) -44% Total Ex rdituees d T.rarrsfei Cut Revenues arrd Transfer In '30,000 7,052,554 $ 7,216,897 $ 8,108,842 $ Fund 401 Prior Year Comparisons YTD $s,500 '37,000 '37,500 '38,000 891,945 so,500 "thousands +12.4% 2023 2024 ■ 2025 92 City of Tukwila Monthly Finance Report 41 through2025 o IIIIIJ, III II III Okla 1i11100 uu Revenues Expenditures Transfers Out 9,981,229 $ 10,112, 246 973,120 12, 527,105 16,129, 584 1,221,086 79.7% 62.7% 79.7% Net Revenues Less Expenditures $ (1,104,137) $ (4,823,565) % of Year Complete 83.3% City of Tukwila Monthly Finance Report 42 93 Categ'ony- 2026 Totell Budget�.1111111iiiiiiii»»» 025' Expenses 1f ough OotobeIuugllllllll lisonmm 11 11 IIIIu�u�i u IW I Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Other Expenditures Transfers Out - Internal Cost Allocation Transfers Out - Debt Service Transfers Out to Other Funds 666,584 482,884 6,214,355 8,611,358 154,403 687,666 200,087 333,333 610,813 $ 259,688 4,727,018 1,895,696 2,573,685 45,345 573,054 150,066 250,000 55,771 223,196 1,487,337 6,715,662 (2,573,685) 109,058 114,612 50,021 83,333 92% 54% 76.1% 22.0% 29% 83% 75% 75% Total $20,000 $1�,000 $7 3,000 it14,000 it 12,000 it10,000 $0,000 $s,000 it4,000 it2,000 Category 17,350,670 $ 11,085,365 $ Fund 402 Expenditures and Transfers Out 2025 Expenditures YTD 2025 Total Budget 2025" TotatillB'uc1� »»»»»»iiii»»»r' o25' R �ramuas thfough OptobeIuugllllllll o I 110 6,265,305 63.9% 118 % of Year Complete 83.3% ,1111111111111 u�uu 1000000000000 loon Sewer Sales Other Income Investment Earnings 12,127,105 $ 400,000 9,600,117 $ 87,158 293,954 (2,526,988) 87,158 (106,046) 79.2% 73.5% Total r it14,000 2,000 == 10, 000 $o,000 $s,000 $4,000 $2,000 12,527,105 $ Fund 402 Revenues 2025 Revenues YTD 9,981,229 $ 2025 Tota Budget (2,545,876) 79.7% % of Year Complete 83.3% 94 City of Tukwila Monthly Finance Report 43 Catega�aY///////////////////////////////////////////////////////////i� 2023 Expenses 2024 Expenses 20,2 "�Expense�s;,, through October through October throughri fifi11111111111 Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Other Expenditures Transfers Out - Internal Cost Allocation Transfers Out - Debt Service Transfers Out to Other Funds $ 727,802 318,067 3,656,731 1,864,935 242,333 519,780 150,063 25,899 $ 1,007,086 397,718 4,395,928 1,820,190 239,987 545,766 150,063 147,500 $ 610,813 259,688 4,727,018 1,895,696 2,573,685 45,345 573,054 150,066 250,000 $ (396,273) (138,030) 331,090 75,506 2,573,685 (194,642) -81% 27,288 3 +0% 102,500 +69% -39.3% -34.7% +7.5% +4.1% +5% Total 7,505,610 $ 8,704,238 $ 11,085,365 $ 2,381,127 +27.4% 2023 Revenues Category through through October 2024 Revenues through October 2025'°Revenues through Ocfiebengiiiiiiii 1011111111111111111111111111111111 Sewer Sales Other Income Investment Earnings $ 8,548,260 $ 46,433 408,933 8,956,136 $ 6,195 406,972 9,600,117 $ 87,158 293,954 643,981 80,963 (113,018) +7% +1306.9% -27.8% Total Expenditures arrd Transfers Out Revenue es arrd Tar 9,003,626 $ 9,369,303 $ Fund 402 Prior Year Comparisons YTD '32,000 $4,000 '35,000 '38,000 9,981,229 $ 611,926 +6.5% '310,000 "thou ai ,000 2023 2024 ■ 2025 City of Tukwila Monthly Finance Report 44 95 2025 th roug r IIIIIJ III NON 6,0 III i1aiu m 111111111111111111 Revenues Transfers In Expenditures Transfers Out 2,624,096 $ 225,000 1,992,027 201,490 2,487,500 300,000 2,719,666 241,788 105.5% 75.0% 73.2% 83.3% Net Revenues Less Expenditures $ 655,579 $ (173,954) % of Year Complete 83.3% 96 City of Tukwila Monthly Finance Report 45 Categ'ony- IIII IL m1ZU,III... m �wllf IIIII 111111 2026 Totlaill1Eudget,,,,,,,,iiiii»12025' Expenses 1f ough OotobeIruugllllllll 11 I 111, uu IIII u�u�i u Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Transfers Out - Internal Cost Allocation 1,077,911 395,385 362,145 360,225 524,000 241,788 887,962 333,979 359,784 356,348 53,954 201,490 189,949 61,406 2,361 3,877 470,046 40,298 82% 84% 99.3% 98.9% 10% 83% Total Vb $3,500 S° $3,000 $2 500 $2,000 $1,500 $1,000 $500 Category 2,961,454 $ 2,193,517 $ Fund 411 Expenditures and Transfers Out 2025 Expenditures YTD Ili Mi u 2025 Total Budget iilu Viiiim ill a mu 1110i "'ii ulllu im 2025" Tota1111E'uc! y "" 2025 Revenues hI I104tobeI uugllllllll III 11111114111 1111 767,937 74.1% % of Year Complete 83.3% 11111111111111111111111111111111111111111111111111111 ulll!II II�IIIIIIU II u�uu Gambling & Excise Taxes Greens Fees General Government Revenue Culture and Recreation Fees Other Income Investment Earnings Rent & Concessions Transfer In From General Fund 3,000 $ 1,610,000 165,000 5,000 11,000 60,000 633,500 300,000 Total $ 2,787,500 $ Fund 411 Revenues and Transfers In Vb C Vyb rr $2,8 0 $2, 050 $2, 040 $2, 030 $2, 020 $2,010 $2, 000 $2, 790 $2, 700 $2, 770 $2, 760 $2, 750 2025 Revenues YTD 1,923,322 180,036 3,506 27,294 56,350 433,590 225,000 2,849,098 $ 2025 Tota Budget (3,000) 313,322 15,036 (1,494) 16,294 (3,650) (199,910) (75,000) 61,598 0.0% 119.5% 109.1% 70.1% 248.1% 93.9% 68.4% 75% 102.2% % of Year Complete 83.3% City of Tukwila Monthly Finance Report 46 97 11 lli uWu d; Categdy//////////////////////////////////////////////////////////�through October through October througIpfllllllllll u IliiuuWu i i;olio 111111111111 2023 Expenses 2024 Expenses 2026'Expenses„ lllllpllllll a.r 1111111111111111111111111111111,11111111 ummmgym u i Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Transfers Out - Internal Cost Allocation 679,705 $ 301,358 332,134 407,719 28,582 182,760 874,433 $ 322,948 257,278 463,990 287,174 191,894 887,962 $ 13,529 333,979 11,031 359,784 102,506 356,348 (107,642) 53,954 (233,220) 201,490 9,596 +1.5% +3.4% +39.8% -23.2% -81.2% +5% Total $ 1,932,258 $ 2,397,717 $ 2,193,517 $ (204,200) -8.5% °III ;uu�u luuf�iulllll .1.11.1r II I I IIIIII " uWuiu lo i ioolioiii(u�i iim 'u 11Iluii imu0u00000 iuiuiii6I uu ul 4 Categpnyaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaithrough October 2023 Revenues 2024 Revenues through October 2025 Revenues though October,. 00000d 00000000000000000000000000000000 Greens Fees General Government Revenue Culture and Recreation Fees Other Income Investment Earnings Rent & Concessions Sale of Capital Assets Transfer In From General Fund 1,733,511 159,863 1,405 30,499 57,751 461,595 12,800 225,000 1,677,068 $ 140,974 4,731 14,665 72,333 421,230 4,000 225,000 1,923,322 $ 246,254 +14.7% 180,036 39,062 +27.7% 3,506 (1,225) -25.9% 27,294 12,629 +86% 56,350 (15,983) -22% 433,590 12,360 +3% (4,000) -100% 225,000 0% Total Expenditures arrd Transfers Out Revenues and Transfers In $ 2,682,424 $ 2,560,001 $ 2,849,098 $ 289,097 +11.3% Fund 411 Prior Year Comparisons YTD $500 04000 $4500 02,000 $2,500 $3,000 bousands 2023 2024 ■ 2025 98 City of Tukwila Monthly Finance Report 47 Fund 412 Surface Water Utility Fund Overview 1IJIIIIIIIIIIIII 111111111 II 1�1 � II 1111111111811117 6° IIII1�I II Vi lido Revenues Expenditures Transfers Out 10,477,327 $ 5,864,437 1,227,443 14, 742, 267 15,103, 982 1,555,760 71.1% 38.8% 78.9% Net Revenues Less Expenditures $ 3,385,447 $ (1,917,475) % of Year Complete 83.3% City of Tukwila Monthly Finance Report 48 99 Fund 412 Surface Water Utility Fund Expenditures and Transfers Out by Category Categ'ory 2025' To1 11118tid JJJJJJJJJJJJJJJJJJJJJJJJI - r " M roughs Ootebe ruugllllllll l i IW IIII Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Other Expenditures Transfers Out - Internal Cost Allocation Transfers Out - Debt Service Transfers Out to Other Funds 2,028,653 $ 1,023,526 72,665 11,957,541 21,597 727,476 494,951 333,333 1,426,489 $ 540,573 58,411 3,405,185 433,292 488 606,230 371,213 250,000 602,164 482,953 14,254 8,552,356 (433,292) 21,109 2% 121,246 83% 123,738 75% 83,333 75% 70% 53% 80.4% 28.5% Total $10 000 V) CS $16.000 $14,000 $12,000 $10,000 $0,000 $6,000 $4,000 $2,000 16,659,742 $ 7,091,881 $ Fund 412 Expenditures and Transfers Out 2025 Expenditures YTD 2025 Total Budget 9,567,861 42.6% % of Year Complete 83.3% Revenues and Transfers In by Category Category 2025"Tota1i11Budget...iiiiiii»»»>2025cRevenues though ruugllllllll u 10 118 ,111111111111 .uu 100000111111111001 loon Surface Water Sales Permits Grant Revenues Other Income Investment Earnings 8,477,267 $ 3,322,000 2,643,000 300,000 8,570,997 $ (17) 748,083 768,717 389,546 93,730 (17) (2,573,917) (1,874,283) 89,546 101.1% 22.5% 29.1% 129.8% Total $1 G, 000 $14, 000 $12, 000 $10,000 $0,000 $6,000 $4,000 $2,000 14,742,267 $ Fund 412 Revenues 2025 Revenues YTD 10,477,326 $ 2025 Tota Budget (4,264,941) 71.1 % of Year Complete 83.3% 0OCity of Tukwila Monthly Finance Report 49 Fund 412 Surface Water Utility Fund Year -to -Year Expenditures & Transfers Out by Category Categaa�Y///////////////////////////////////////////////////////////i� 2023 Expenses 2024 Expenses 2t1125"�Expense�s;,, through October through October through Ssauuuuu II11111 III I li Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Other Expenditures Transfers Out - Internal Cost Allocation Transfers Out - Debt Service Transfers Out to Other Funds 1,009,755 $ 460,025 42,285 1,580,507 262,901 549,870 371,209 6,750 1,422,021 $ 1,426,489 $ 4,468 552,221 540,573 (11,648) 75,759 58,411 (17,348) 1,808,611 3,405,185 1,596,574 528,769 433,292 (95,477) 261,376 488 (260,888) 577,362 606,230 28,868 371,209 371,213 4 359,500 250,000 (109,500) +0.3% -2.1% -22.9% +88.3% -18.1% -100% +5% +0% -30% Total 4,283,302 $ 5,956,828 $ 7,091,881 $ 1,135,053 +19.1% Fund 412 Surface Water Utility Fund Year -to -Year Revenues and Transfers In by Category Categpnyaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaithrough October 2023 Revenues 2024 Revenues through October 2025 Revenues through October., 1111111111111111111111111111111111111 1°1„ qlp u i�iiuimo,:ul o Surface Water Sales Permits Grant Revenues Other Income Investment Earnings $ 7,767,059 $ 64,903 122,212 260,036 8,090,765 $ 149,011 810,324 427,559 8,570,997 $ 480,232 (17) (17) 748,083 599,072 768,717 (41,607) 389,546 (38,013) +6% +402.0% -5.1% -9% Total Expenditures arrd T.rarresfei Cut Revenues arrd T.rarresfei Irr $ 8,214,210 $ 9,477,659 $ 10,477,326 $ Fund 412 Prior Year Comparisons YTD 02,000 04,000 00,000 08,000 999,667 +10.5% 010,000 "thousai ,000 2023 2024 ■ 2025 City of Tukwila Monthly Finance Report Fund 501 Equipment Rental Overview 2025 th rout 4�l 1 S ctOberr; IIIIIIIIIIIIIIII lllllf III EIIIIIIIIIII l n' Revenues Expenditures Transfers Out 4,985,517 $ 4,091,434 321,924 6,223,147 5,749,503 386,308 80.1% 71.2% 83.3% Net Revenues Less Expenditures $ 572,159 $ 87,336 % of Year Complete 83.3% 102City of Tukwila Monthly Finance Report 51 Fund Fund 501 Equipment Rental Expenditures and Transfers Out by Category Category 2026TotlatI1Eiudget�.1111111iiiiiiii»»» f125' Expense �nro ugtlo OotobeI uugllllllll IIII u�u�i uInmm IW i ir 11111111111111111111111111111111111111111111111111111 Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Transfers Out - Internal Cost Allocation 519,798 237,888 790,900 1,903,717 2,297,200 386,308 426,651 187,704 724,602 1,525,095 1,227,384 321,924 93,147 50,184 66,298 378,622 1,069,816 64,384 82% 79% 91.6% 80.1% 53% 83% Total 0 $5, 000 $4,000 $3,000 $2,000 $1,000 Category 6,135,811 $ 4,413,360 $ Fund 501 Expenditures and Transfers Out 2025 Expenditures YTD 2025 Total Budget Revenues and Transfers In by Category 2025" To1 1iIlBudget»»»»»iiiiii»»»>2026 Revenues thro ugtluOotobenuugllllllll 1,722,451 71.9% % of Year Complete 83.3% iii IIIIIII IIIIIu „iu i .. u!II III IIIIIU 100000111111111001 loon 11111111111111111111111111111111111111111111111111111 Fleet Replacement Charges Fleet Lease Charges Fleet Repair Charges Other Income Investment Earnings Sale of Capital Assets 2,294,324 $ 3,526,723 200,000 2,100 40,000 160,000 1,911,933 $ 2,645,039 156,895 3,045 61,926 206,680 (382,391) (881,684) (43,105) 945 21,926 46,680 83.3% 75.0% 78.4% 145.0% 154.8% 129.2% Total V5 $7, 000 u $7,000 $5,000 $4,000 $3,000 $2,000 $1,000 6,223,147 $ 4,985,518 $ Fund 501 Revenues 2025 Revenues YTD 2025 Total Budget (1,237,629) 80.1 % of Year Complete 83.3% City of Tukwila Monthly Finance Report 52103 Fund 501 Equipment Rental Year -to -Year Expenditures & Transfers Out by Category 2023 Expenses 2024 Expenses 2026'Expenses,,, through October through October through Oet-bAT uuu III li 11111 III Salaries, Wages, & Overtime Benefits Supplies Services Land, Structures, Machinery, Equipment Transfers Out - Internal Cost Allocation 286,351 145,560 639,651 677,747 142,195 291,990 406,163 $ 181,290 625,297 1,318,420 130,376 306,594 426,651 $ 20,488 +5.0% 187,704 6,414 +3.5% 724,602 99,305 +15.9% 1,525,095 206,675 +15.7% 1,227,384 1,097,008 +841.4% 321,924 15,330 +5% Total 2,183,494 $ 2,968,140 $ 4,413,360 $ 1,445,220 +48.7% Fund 501 Equipment Rental Year -to -Year Revenues and Transfers In by Category 2023 Revenues Category through through October 2024 Revenues through October 2025 Reve es through O01bbergiiiiiii IIII y 11111111111111111111 111111111 1111111111111 tE Fleet Replacement Charges Fleet Lease Charges Fleet Repair Charges Other Income Investment Earnings Sale of Capital Assets 875,432 754,289 13,368 85 172,254 353,474 1,033,956 $ 193,780 571 142,305 61,587 1,911,933 $ 877,977 2,645,039 2,645,039 156,895 (36,885) -19.0% 3,045 2,474 +433.3% 61,926 (80,379) -56% 206,680 145,093 +236% +85% Total Expenditures arrd T.rarresfei Cut Revenues arrd Transfer 2,168,902 $ 1,432,199 $ Fund 501 Prior Year Comparisons YTD $1,000 $2,000 $3,000 $4,000 4,985,518 $ 3,553,319 +248.1% $5,000 $0,000 "thousands 2023 2024 ■ 2025 04City of Tukwila Monthly Finance Report 53 Fund 502 Insurance - Active Employees Overview 2025"throe 4tl 1 S ctOberr; IIIIIIIIIIIIIIII IIIIIJ, III Elllllllllll atilt Revenues Expenditures Transfers Out 5,896,262 $ 4,783,784 174,231 8,302,594 6,599,439 209,077 71.0% 72.5% 83.3% Net Revenues Less Expenditures $ 938,247 $ 1,494,078 % of Year Complete 83.3% City of Tukwila Monthly Finance Report 54105 Category Fund Fund 502 Insurance -Active Employees Expenditures and Transfers Out by Category 2025"'TotalliEttdget.�1111111iiiiiiii»»» f1o5'��Exp�na� s '�6roag h il000eruugllllllll 11 I IIIIuu�i IW i 11111111111111111111111111111111111111111111111111111 Self Insurance Medical Claims Dental Claims Prescription Claims Vision Claims Stop Loss Reimbursements TPA Admin Fees Excess Loss Prem Contracted Services Employee Wellness Services Transfers Out - Internal Cost Allocation 4,108,327 413,306 1,158,759 21,641 155,034 621,372 100,000 18,000 209,077 2,902,688 $ 356,396 1,127,396 15,445 (333,717) 144,612 526,027 34,999 9,247 174,231 1,205,639 56,910 31,363 6,196 333,717 10,422 95,345 85% 65,001 8,753 51% 34,846 83% 71% 86% 97.3% 71.4% 93% 35% Total $0,000 $7,000 $6, 000 $5,000 $4,000 $3,000 $2,000 $1,000 Category 6,805,516 $ 4,957,324 $ Fund 502 Expenditures and Transfers Out 2025 Expenditures YTD 2025 Total Budget Revenues and Transfers In by Category 2025H Tota1111Bud 2025', Revenues throughoOotoberuuuuuuu 1,848,192 72.8% % of Year Complete 83.3% �IIIIIII IIIII iuIIIIIIU duo Inmm Employer Trust Contributions Employee Voluntary Contributions Employee Mandatory Contributions Employee Benefit Program Services Investment Earnings 7,943,114 $ 311,980 47,500 5,378,201 $ 55,911 278,210 86 183,854 (2,564,913) 55,911 (33,770) 86 136,354 67.7% 89.2% 387.1% Total U, C $9,000 $0,000 $ /,000 $6,000 $ 5,000 $4,000 $3,000 $2,000 $1,000 $ 8,302,594 $ 5,896,262 $ Fund 502 Revenues 2025 Revenues YTD 2025 Tota Budget (2,406,332) 71.0% % of Year Complete 83.3% 06City of Tukwila Monthly Finance Report 55 Fund 502 Insurance -Active Employees Year -to -Year Expenditures & Transfers Out by Category 2023 Expenses 2024 Expenses 2025"'Expenses,,, through October through October through OCO eruuuuu 0.000 Self Insurance Medical Claims Dental Claims Prescription Claims Vision Claims Stop Loss Reimbursements TPA Admin Fees Excess Loss Prem Employee Wellness Supplies Contracted Services Employee Wellness Services Transfers Out - Internal Cost Allocation $ 3,157,715 335,772 739,669 13,453 (44,611) 116,335 235,105 628 52,114 431 158,030 $ 3,033,729 316,662 880,059 14,645 (403,754) 128,408 365,721 501 52,111 3,355 165,935 $ 2,902,688 $ (131,041) -4.3% 356,396 39,734 +12.5% 1,127,396 247,337 +28.1% 15,445 800 +5.5% (333,717) 70,037 -17.3% 144,612 16,204 +12.6% 526,027 160,306 +43.8% 691 190 +38% 34,999 (17,112) -33% 9,247 5,892 +176% 174,231 8,296 +5% Total Category through through October $ 4,764,641 $ 4,557,372 $ 4,958,015 $ 400,643 +8.8% Fund 502 Insurance -Active Employees Year -to -Year Revenues and Transfers In by Category 2023 Revenues 2024 Revenues through October 2025 Revenues through October'''iiiii� m 111111,1111111111111111111111,11 Employer Trust Contributions Employee Voluntary Contributions Employee Mandatory Contributions Employee Benefit Program Services Investment Earnings $ 4,667,952 $ 56,950 71,110 5,125,835 $ 30,916 128,377 167,630 188,662 5,378,201 55,911 278,210 86 183,854 $ 252,366 24,995 149,833 86 (4,808) -3% Total Expenditures arrd Transfers Out Revenues and Transfers In $ 4,963,642 $ 5,473,790 $ 5,896,262 $ Fund 502 Prior Year Comparisons YTD 1111111111111111111111 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 422,472 +7.7% uaal $7,000 2023 2024 ■ 2025 City of Tukwila Monthly Finance Report 56107 Faundl111$0, Insurance W LEOFFifil Overview 2025 throe abl Octrber, Revenues Transfers In Expenditures Transfers Out 341,755 $ 300,000 371,489 11,614 546,347 488,766 13,938 62.6% 76.0% 83.3% Net Revenues Less Expenditures $ 258,652 $ 43,643 % of Year Complete 83.3% 1 O$City of Tukwila Monthly Finance Report 57 Fund1111503 'Insurance - LEOFF II Retirees Expet1oliiu es 401 Tki4 lil>§t9f i,,, ± #� h Ca g�tryllllllli Category 2025' To1 1111Btid� JJJJJJJJJJJJJJJJJJJJJJJJI - r " M 1f ougl*Oetbbe ruugiiiiiiii lll0�limonmm IW I Self Insurance Medical Claims Dental Claims Prescription Claims Vision Claims TPA Admin Fees Excess Loss Premium Long Term Care Out of Pocket Medicare Plan B Contracted Services Transfers Out - Internal Cost Allocation 150,000 32,931 169,644 4,419 12,612 24,160 15,000 75,000 5,000 13,938 60,123 $ 36,786 134,806 3,682 13,407 21,757 80,420 2,620 17,887 11,614 89,877 (3,855) 34,838 737 (795) 2,403 (65,420) 72,380 (17,887) 5,000 2,324 40% 112% 79.5% 83.3% 106% 90% 536% 3% 0% 83% Total $ $600 Vb C Vb 1500 $400 $300 $200 $100 502,704 $ 383,102 $ Fund 503 Expenditures and Transfers Out 2025 Expenditures YTD 2025 Tota Budget 119,602 76.2% % of Year Complete 83.3% Revenues and Transesr;,lemby// category Category III III I 2025"'Tofid1 B'?ud� »»» 025 O lobs '���o uglnu �f cut�aky�Iruuuq������ II100000000000000 Employer Trust Contributions Investment Earnings Transfer In From General Fund 545,833 $ 514 341,561 $ 194 300,000 (204,272) (320) 300,000 62.6% 37.7% Total $660 77.3 Vb $640 Vb $320 $600 $500 $560 $540 $520 $500 $400 546,347 $ 641,755 $ Fund 503 Revenues 2025 Revenues YTD 2025 Tota Budget 95,408 117.5% % of Year Complete 83.3% City of Tukwila Monthly Finance Report 58109 Fund 503 'Insurance - LEOFF I Retirees YeaNic)-YearExpend"ri.fres 8"riralli,srero Cut Oy Category 2024 Expenses 2026 Expenses CategOry through October through October through ri inha, 2023 Expenses 111111 II III '''.'11111111'.11111,11111IIIIIIII1111111 111 Self Insurance Medical Claims Dental Claims Prescription Claims Vision Claims TPA Admin Fees Excess Loss Premium Long Term Care Out of Pocket Medicare Plan B Contracted Services Transfers Out - Internal Cost Allocation 64,008 $ 24,466 130,582 2,241 13,261 46,577 62,880 1,797 31,428 10,540 47,621 24,479 125,039 19,976 13,318 14,740 80,984 8,111 22,365 2,000 11,062 60,123 $ 12,502 +26.3% 36,786 12,307 +50.3% 134,806 9,767 +7.8% 3,682 (16,294) -81.6% 13,407 89 +0.7% 21,757 7,017 +47.6% 80,420 (564) -0.7% 2,620 (5,491) -68% 17,887 (4,478) -20% (2,000) -100% 11,614 552 +5% Total 387,780 $ 369,695 $ 383,102 $ 13,407 +3.6% Fund 503 Insurance - LEOFF IIIIRettrees Year,ts:).Year Revenues andlliransfers Inmby Category 2023 Revenues 2024 Revenues through October through October 2025 Revenues through Octobermm 111111.111Iv 11111111111111111111111111 Employer Trust Contributions Investment Earnings Transfer In From General Fund 266,375 $ 6,183 270,510 $ 3,497 341,561 $ 71,051 194 (3,303) -94.5% 300,000 300,000 +26% Total Expenditures and Transfers Out Revenues and Transfers In 272,558 $ 274,007 $ Fund 503 Prior Year Comparisons YTD it100 '3200 '3300 '3400 $500 641,755 $ 367,748 +134.2% <3500 WOO Thousands 2023 2024 N2025 oCity of Tukwila Monthly Finance Report 59 20'n Estimated Fund Balances ,Alll a id's excePtIlll StotII$e vice Funds Bg➢nniinigiUuiiiiiiiiiu,,, 1fotaillActuuall & 2025 Actual &' '''' Estimated Projectedlp Estimated Expenditures////" Ending nu dllllllllll Revenue Expenses e Balance General Fund* $ 24,722,225 Special Revenue Funds 80,773,458 $ 74, 574, 565 $ 30, 921,118 Hotel Motel Tax Arterial Streets Drug Seizure Fund Capital Project Funds 3,728,106 7,326,170 436,912 912,272 6,643,155 24,849 400,183 3,776,001 73,000 4,240,195 10,193,323 388,761 Residential streets 1,770,619 378,453 87,514 2,061,558 Land Acq, Rec, & Parks Imps 4,359,134 1,745,199 1,354,578 4,749,755 General Gov't Imps 41,694 341,620 95,459 287,856 Fire Improvement - 89,570 89,570 - Public Safety 1,617,834 499,848 1,190,993 926,690 City Facilities 989,887 906,616 657,462 1,239,041 Enterprise Funds Water Fund** Sewer Fund** Golf Course** SSWM Fund** Internal Service Funds 4,548,131 13,900,117 1,695,891 13,081,527 8,769,676 10,850,058 3,076,826 11,240,084 9,386,564 12,731,754 2,618,606 8,347,476 3,931,244 12,018,421 2,154,112 15,974,134 Equipment Rental** Insurance - Active LEOFF 1 Retirees 1,931,334 3,454,472 (58,262) 5,105,055 6,461,604 669,865 5,008,161 5,926,101 457,032 2,028,228 3,989,975 154,571 Total All Funds $ 83,545,791 $ 138,488,207 $ 126,775,017 $ 95,258,982 *Includes Contingency Fund 105 **Excludes net position restricted for net investment in capital assets and pension. 111 Depository CASH & CASH EQUIVALENTS CITY OF TUKWILA Cash and Investment Details CASH & INVESTMENT REPORT October 31, 2025 Investment Maturity Type Date Balance (d) Current Annualized Rate Return US Bank Operating Cash Depository (b) 14,001,833 0.60% 84,011 (e) Washington State Treasurer LGIP Investment Pool (b) 64,110,054 4.29% 2,750,065 (f) Columbia (Umpqua) Bank Money Market (b) 17,731,463 4.55% 806,782 (f) Total Cash & Cash Equivalents 95,843,351 3.80% 3,640,857 (g) Agency / Issuer Rating INVESTMENTS (a) Investment Purchase Maturity Term Type Date Date Yrs. Face Value (c) Yield to Annualized Maturity Return Agencies Federal Home Loan Bank Aaa US agency 02/2021 02/2026 0.3 1,000,000 0.63% 6,250 Federal Farm Credit Bank Aaa US agency 06/2021 06/2026 0.6 1,000,000 0.90% 9,000 Federal Home Loan Bank Aaa US agency 11/2021 11/2026 1.0 2,000,000 1.46% 29,200 Federal Farm Credit Bank Aaa US agency 03/2022 12/2025 0.1 1,000,000 2.00% 20,000 Federal Home Loan Bank Aaa US agency 05/2022 05/2027 1.5 1,000,000 3.96% 40,000 Federal Home Loan Bank Aaa US agency 05/2022 05/2026 0.5 1,000,000 3.38% 33,750 Federal Home Loan Bank Aaa US agency 06/2022 06/2027 1.6 1,000,000 3.59% 35,900 TOTAL AGENCIES 8,000,000 2.18% 174,100 Taxable Municipal Bonds Metro Oregon GO Taxable AAA LTGO 06/2021 06/2026 0.6 1,000,000 0.83% 32,500 King County WA GO Taxable 03/2022 12/2026 1.1 1,000,000 2.33% 14,000 Bellevue WA GO Taxable 04/2022 12/2026 1.1 1,000,000 3.12% 14,370 TOTAL MUNICIPAL BONDS 3,000,000 2.03% 60,870 Total Investments 11,000,000 2.14% 234,970 TOTAL PROJECTED CASH, CASH EQUIVALENTS & INVESTMENTS $106,843,351 3.63% $ 3,875,827 (a) Term is calculated to final maturity or call date if bond has been called. (b) No fixed maturity, funds are available within one day. (c) Yield to Maturity represents average rate for the year for various investment vehicles. (d) Annualized return represents annual earnings at current rate. (e) Represents earning credit from US Bank. City earned interest up to the amount of fees. (f) Current rate reflects most recent interest rate for each depository account. (g) Represents annual earnings, assuming no changes in the Market. Actual earnings to date are $2,237,506 Agencies, 7% Money Market, 17% Current Portfolio Yield Current P.rtfo0k ADDoca or Municipal Bonds, 3% ply LGIP, 60% Cash, 13% 112 CITY OF TUKWILA Policy Compliance & Liquidity Analysis CASH & INVESTMENT REPORT October 31, 2025 Cash & Investments Funds immediately available - US Bank, State LGIP, Money market Fixed Maturity Investments, maturing in: 0-90 days after Report Date 91-180 days after Report Date 181-270 days after Report Date 271-360 days after Report Date Total Investments maturing in 1 year or less Investments maturing in more than 1 year and less than 10 years. Total Cash & Investments Financial Institution Diversification US Bank Columbia (Umpquah) Bank State LGIP Investments in US Government and other non- financial institutions 11,000,000 Portfolio Amount $ 95,843,351 2,000,000 1,000,000 2,000,000 2,000,000 7,000,000 4,000,000 $ 106,843,351 Portfolio Amount $ 14,001,833 17,731,463 64,110, 054 As of Report Date Available Available Within 1 Year Within 5 Years $ 95,843,351 $ 95,843,351 7,000,000 $102,843,351 96% of Total 13.1% 16.6% 60.0% 7,000,000 4,000,000 $ 106,843,351 100% POLICY MAXIMUM insured by PDPC 20% 100.0% 10.3% varies see below Total $ 106,843,351 100.0% Portfolio Investment Mix Amount Depository (USBank) 14,001,833 State Investment Pool 64,110,054 Umpquah 17,731,463 US Agency 8,000,000 Municipal Bonds 3,000,000 of Total 13.1% 60.0% 16.6% 7.5% 2.8% Total 106,843,351 100.0% POLICY MAXIMUM insured by PDPC 100% insured by PDPC 100% 30% Policy Met? Yes Yes Yes Yes Policy Met? Yes Yes Yes Yes Yes Weighted Average Maturities: Years Performance Analysis Funds Immediately Available 0.0 Current portfolio yield 3.628% Government Agency bonds 0.8 Municipal bonds 0.9 Total WAM 0.1 POLICY MAXIMUM 2.0 Policy Met? Yes Note: Funds immediately available are not factored into the Portfolio Investments weighted average maturity. Benchmarks: 2 year treasury 3 year treasury 5 year treasury 3.582% 3.581 3.689% 113