2013–2014 BIENNIAL BUDGET - the City of Tukwila

2013-2014 Biennial Budget City of Tukwila, WashingtonGENERAL FISCAL ENVIRONMENTEffective budget and financial policies are developed gradually over a period of time in response to longtermfiscal and social-economic conditions. Accordingly, although this document responds to the City’sfinancial policies, framework has been developed in response to multi-year fiscal pressures.Tukwila’s economy is generally cyclical following the economic cycles of the surrounding region.However, the economic down periods in the cycles have generally been less severe for Tukwila than forother municipalities in the region due to the relatively stable nature of Tukwila’s economy. While thelast economic downturn has been a challenge for Tukwila, the City is well positioned for a strongrecovery.Economic cycles are not the only determinants of revenues for municipal budgeting. Even with an upslopingeconomy, laws that determine who pays taxes and how much they pay can also have a majorimpact. The Washington State Legislature adopted several pieces of legislation which have limited theability of local governments to increase revenues and future taxing ability. Although Tukwila’seconomy has somewhat stabilized, these revenue limitations have negatively impacted Tukwila’srevenues. Revenue is growing slowly and demand for services continues to increase. This trend willcontinue to have a substantial impact on Tukwila’s budget.Challenges for the future include an ever increasing demand for services. In particular, public safetyservices will increase dramatically with continued development and annexations. Due to mandatorysentencing guidelines required by the State, we have experienced an increase in the care and custody ofprisoners in the past few years. The City will need to improve the level of service, particularly in thearea of public safety, while controlling costs.During 2013, the City will look at different operational and financial options for operating Foster GolfLinks to determine if a more cost effective method for operating the golf course is available.Additionally, the Sewer Fund will be reviewed to determine the best method to keep the fund solvent.Budget DevelopmentThe 2013-2014 biennial budget was developed with the themes of financial sustainability, maintainingexisting service levels, and building reserves. During the strategic planning process and councilworkshops several priorities were identified. These priorities include an investment in public safety anda comprehensive crime reduction plan, supporting the nuisance ordinance, code enforcement, andbuilding reserves; and were incorporated into the budget process. Additionally, emphasis was added tofleet management and facilities.The Equipment Rental Fund was revised with the intent of creating a financially sustainable plan thataccounts for the full replacement cost of equipment. The fund now includes all equipment used by theCity including fire engines and the ladder truck. Previously, fire equipment was accounted for in adifferent fund. Low and underutilized vehicles have been eliminated which reduced the City’s fleet byover five percent.During the 2013-2014 biennium the City will enter the beginning phase of the facilities plan. This planwill ensure that city-owned buildings meet current safety standards for earthquakes and health, areenergy efficient, and provide better service to the public. It is anticipated that initial planning andscoping activity for facilities improvement will occur in this biennium.Page 48