HomeMy WebLinkAboutFIN 2026-06-08 Item 1B - Budget - 2027-2028 Budget Information - Tax Revenue & Labor RatesCity of Tukwila
Thomas McLeod, Mayor
Marty Wine, City Administrator
AGENDA BILL
ITEM NO.
1.B.
Agenda Item
Sponsor
2027/2028 Budget Information
Aaron BeMiller, Finance Director
Legislative History June 8, 2026 Finance & Governance Committee
Recommended Motion ❑x Discussion Only ❑ Action Requested
MOVE TO N/A
EXECUTIVE SUMMARY
The City uses a biennial budget process, which is a two-year fiscal plan beginning January 1st of an
odd -numbered year through December 31 st of the following even -numbered year. The City Council
adopts the biennial budget no later than December 31st of the preceding even -numbered year. In
between the first year and the second year of the budget the Council adopts a mid -biennium
adjustment to account for know changes to the budget. The 2027/2028 budget calendar includes an
anticipated adoption date of November 23, 2026.
DISCUSSION
The budget process is in full swing, but we are still early in the process. The budget kickoff took place
on April 28th and the due date for departments to return their operating base budgets and any budget
enhancement requests is June 11t". The budget process will continue throughout the summer and the
Mayor is scheduled to present his Proposed 2027/2028 Budget to the City Council on September 28t"
We are bringing some information to the Committee this evening as part of the Mayor's commitment to
the City Council to provide budget information earlier in the process. The information we are providing
today will most likely change as we continue through the process, but it provides a baseline with the
Committee for those future changes.
Tax Revenue:
The chart below provides our current 2027 budget estimate and comparison information to the 2026
budget as well as previous years' actual collections. As mentioned above, these amounts are
estimates and will likely change between now and when the Mayor presents his Proposed Budget.
65
Category
Taxes:
Property Tax
Sales & Use Tax
Other Sales Taxes
Gambling Taxes
Business & Occupation Taxes
Utility Taxes
Interfund Utility Taxes
Admission Taxes
Leasehold Excise Tax
Intergovernmental
Franchise Fees
Seattle City Light Agreement
2024 Actuals 2025 Actuals
$ 18,106,912
23,729,637
940,689
4,303,308
2,100, 836
4,412,082
2,684,965
904,888
277,095
802,094
3,033,985
$ 11,925,941
23,175,921
936,367
4,830,706
3,023,671
4,533,267
2,937,680
1,119,130
239,331
361,868
3,099,876
2026 Budget 2027 Budget Estimate
$ 12,215,213
24,333,095
1,041, 820
4,724,500
2,424,000
4,702,390
3,364,735
885,012
275,000
688,696
2,832,836
$ 12,464,403
23,690,701
3,642,981
4,556,620
2,750,000
5,211,676
3,384,264
1,200,000
275,000
895,832
3,896,995
%Change $ Change
2026 - 2027 2026 - 2027
2.04%
-2.64%
249.67%
-3.55%
13.45%
10.83%
0.58%
35.59%
0.00%
$ 249,190
(642,394)
2,601,161
(167,880)
326,000
509,286
19,529
314,988
30.08% 207,136
37.57% 1,064,159
Labor Rates:
As we move through the budget 2027/2028 budget process, we update our labor rate changes as new
information becomes available.
Fund/Department
Cost of Living Adjustment (COLA)
2026
Actual
Rate
2.70%
2027
Workforce
Budget
4.50%
2028
Workforce
Budget
4.50%
2026-2027
2027-2028
Change
0.00%
Change
1.80%
Social Security & Medicare (FICA)
7.65%
7.65%
7.65%
0.00%
0.00%
Department of Retirement
LEOFF
5.32%
5.32%
5.32%
0.00%
0.00%
PSERS
7.11%
7.50%
7.50%
0.39%
0.00%
PERS
5.58%
6.00%
6.00%
0.42%
0.00%
Labor & Industries (Worker's Comp) (per hour)
0803 - All Operations (PW & PR)
1.17465
1.40958
1.69150
0.23493
0.28192
5305 - Admin/Clerical Office
0.18755
0.22506
0.27007
0.03751
0.04501
6905 - Law Enforcement
2.96830
3.56196
4.27435
0.59366
0.71239
Paid Family & Medical Leave
Rate
0.32%
0.40%
0.49%
0.07%
0.09%
Cap (Rate x FICA Cap)
$ 595.57
$ 768.78
$ 992.36
$ 173.21
$ 223.59
Medical Insurance Premiums
HMA (Self Insurance)
0.00%
8.00%
8.00%
8.00%
0.00%
Kaiser
8.00%
8.00%
8.00%
0.00%
0.00%
Key Upcoming Dates:
June 11 - Departments submit their operating base budgets and proposed enhancements
June 18 - Capital departments submit their six -year CIP plan.
June 19 - Departments assigned reduction target, if necessary
July 13 - Budget process information to F&G Committee
July 20 - Reduction target proposal due, if necessary
https://tukwilawa.sharepoint.com/sites/clerksintranet/Council Agenda Items/06-08-26 FIN/Agenda Bill_Budget_June F&G.docx
66
August 10 — Budget process information to F&G Committee
September 8 — Mayor's final budget decisions
September 28 — Mayor presents 2027/2028 Proposed Budget to Council
October until approved — City Council budget process
https://tukwilawa.sharepoint.com/sites/clerksintranet/Council Agenda Items/06-08-26 FIN/Agenda Bill_Budget_June F&G.docx
67