HomeMy WebLinkAboutCity Council Meeting - City Council Workshop - 09/23/2024 (2) Approved
City Council Workshop
• Workshop Special Meeting
KENT Minutes
WAS HiNaTor+ September 23, 2024
Date: September 23, 2024
Time: 5:35 p.m.
Place: Chambers
I. CALL TO ORDER
Council President Kaur called the meeting to order.
Attendee Name Title Status Arrived
Satwinder Kaur Council President Present
Bill Boyce Councilmember Present
John Boyd Councilmember Present
Brenda Fincher Councilmember Present
Marli Larimer Councilmember Present
Zandria Michaud Councilmember Present
Toni Troutner Councilmember Present
Dana Ralph Mayor Present
II. PRESENTATIONS
1 2025-2026 Biennial Budget Paula Painter 75 MIN.
Finance Director, Paula Painter presented the Council with details on the
2025-2026 Biennial Budget.
Painter provided an overview of the Economic Outlook, including the fiscal
cliff, streamlined sales and use tax, inflation, and discussed whether their
might be a recession.
Painter provided an overview of the 2025-2026 revenue and expenditure
summaries for all funds.
The position summary by departments were reviewed from 2024 through
2026.
Painter detailed the General Fund Revenue Summary for 2024 through 2026
and talked about the revenue sources and major revenue changes.
Painter walked the Council through the B&O Tax Increases and compared
rates with surrounding jurisdictions.
Painter detailed the major revenue changes to the general fund.
City Council Workshop Workshop Special September 23, 2024
Meeting Kent, Washington
Minutes
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Expenditure assumptions included salary increases, self-insured health plans,
retirement plans, supplies, services, and insurance allocations.
Painter reviewed general fund expenditures by department and major
expenditure changes relating to full time employees.
Painter closed by providing the upcoming meetings, workshops and advised
the plan is to adopt the budget during the December 10, 2024, regular
meeting.
Meeting ended at 6:20 p.m.
Ka be.rley A. Ko wwto-
City Clerk
...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Page 2 of 2
MAYOR'S PROPOSED 202S=26
BNIENIAL BUDGET
A. a
:. !;AMCare
SPECIAL COUNCIL
so WORKSHOP
Kent SEPTEMBER 23. 2024
. OVERVIEW OF
MAYOR'S PROPOSED
+II� GENERAL FUND BUDGET
EEL
•ErviwA.Wv f T
w wENDA
• Economic Outlook
• 2025-2026 City-wide Budget Summary
• General Fund Revenues
• General Fund Expenditures
• Timeline
• Next Steps
ECONOMIC 0" r LOOK
• Fiscal Cliff
• Streamlined Sales and Use Tax
• Inflation
• Recession or No Recession ?
7� 161
R'S P Lai us D 282N f��T
•
qDed al 5)U Qd t al Internal
C�neral F�ven ue �ervi o� Project Ent erpri 9e 5ervi oe C�her Total a I
Fund Funds Funds Funds Funds Funds Funds Funds
to :e . • • 195250 1,035460 132,710 17,36C 421
o •• o o - • •R .1 00 1 ZZT5 0 500,0DO 389,860 / 5• .CI
1' : •es • `: t:. 1• M340 1,0Erq530 205141,750 42,067,390 3 i9 1 1
Firesa-d • a 1,889,630 • • •1 14,8CQ42D
cto . :• o - 7,409,950 4,605530 2 111 •► :41 14,305720 70,532,940 9,73C 150 110,OD4,130
• �' =-- �•� :1• iil "► 1�� :1 "�1 • 1 "'C /�• 11 .i� •• �1 • � :1 • 'C 1 ii� �1► :11
MAYOR'S PROPOSED 2025-26
BIENNIALBUDGET SPECIAL COUNCIL WORKSHOP 09-23-2024 KENTwA.G4v ����T
k..,.,N .
' . AD
LL
wed al Dot C�pi tal Internal
C3�neral F�enue Servi oe Project Enterprise 5ervi oe Cher Total pll
Fund Funds Funds Funds Funds Funds Funds Funds
atyeardi 1,C97,05D 1,097,050
• • 7,2EV,310 50,000 Z669,42D 10,0D1,730
mot! • i amTnrityf- 23,940,570 23 94
Fina-re 7,923,85D 780,530 i 04,380
- fie .zted S oo. E 912,270 • 912,270
Hxren4,846,570 I I• •� .�• • • � ^ it
.s �O. • • I • • • I •• ••I
Lam I:1 2,540,740 6,991,800
Undpei `' 9,691,310 9,691,310
• c' 127,014,090 27,Z29,910 154,244,000
- • •-ks 41,733,230 17,196 40 280,036 I 1E ,010 Ti• •I
Nin Dq3atm3rtel 1E 236,650 60,137,290 '+I • I 570,9M 6,831,140 9,59P,ICI 106,88R710
Totai Experxitures 259,363,940 153,8E57,160 5M,610 51,494,700 274,744,370 121,46 00 9,52Z030 884,089,310
MAYOR'S PROPOSED 2025-26
BIENNIALBUDGET SPECIAL COUNCIL WORKSHOP 09-23-2024 KENTwA.G4v ����T
k..,.,N .
Budget Book Page 17
POSITIONS SUMMARY BY DEPARTMENT
, .
Adopted Changes Total Request Proposed Request Proposed
City Council 0.25 0.25 0.25 0.25
Administration 21.75 21.75 21.75 21.75
Economic&Comm Dev 50.00 50.00 1.00 51.00 51.00
Finance 36.00 36.00 1.00 37.00 37.00
Human Fbsources 15.00 15.00 15.00 15.00
37.00 2.00 35.00 35.00 35.00 Economic&
Information Technology ( ) Parks,Recreation& Community❑ev
Law 18.00 18.00 18.00 1.00 19.00 Comm Svcs 150I0 7%
Information
Municipal Court 22.00 22.00 1.00 23.00 23.00 Technology
Parks, Fbc&Comm S✓cs 117.63 117.63 0.37 118.00 118.00 5%
Police 230.00 230.00 4.00 234.00 234.00 Finance Municipal Court 311/0
Public Works 207.00 207.00 1.00 208.00 208.00 5 °
Total FTEs by Dept 754.63 (2.00) 752.63 8.37 761.00 1.00 762.00
Law 2%
iL Other 10°:0
Police 31°Io
Human Resources 2%
Administration 3%
Public Works 271110 City Council 0.001°Io
Budget Book Page 15
FTEs PER ljp000 POPULATION
FTE FTEs Emp per
1,000 pop
800 16.0
753 761 762
744 14.0
731 734
714 717 720 -
703 12.0
700
10.0
8.0
6.0
600
4.0
2.0
500 -
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Proposed
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
FFEFbsitions 702.8 7142 730.6 716.7 719.7 733.7 744A 752.6 761.01 762.0
Po u I at i o n* 127,100 128,900 129,800 136,588 137,700 137,900 139,100 140,400 141,400 142,400
F FEs per 1000 Fbp 5.5 5.5 5.6 521 52 5.3 5AJ 5.4 5.41 5.4
*2024 Fbpulation based on Office of Fnandal Management(OFM)estimates. 2025 and 2026 are estimates.
� to
2024 �2025 2026
�dj Budget R�o FYopo9ed
••o • i• 1 •4,!1 :i1 1Q82 670
iE "I !Q 3 .!4 ICI
M•Ta(Es 1957R93D 24,344,9i1 24,46546D
i' o te r: :LI 1,01ageo U253ED
Irtagovenn-Eftcl Rwriue IS 5 1:1 .1 11
Tra-das • 9)IF ; :�.i -:1 :: •�1
• • IK 1 • :�� 1 �oN I I N1
MAYOR'S PROPOSED 2025-26
BIENNIALBUDGET SPECIAL COUNCIL WORKSHOP 09-23-2024 KENTWA.GOV � KE
Budget Book Page 31
GENERAL FUND REVENUE SOURCES
2023-2024 Biennium Total 2025-2026 Biennium Total
Other Other Taxes ° r O
Other Taxes 1
1%
Property
Taxes Property
B&O Taxes B&O Taxes Taxes
6
17% 14/0 19% 13%
Sales Taxes
Utility Taxes Sales Taxes
21% Zoo/Q Utility Taxes 25%
22%
Budget Book Page 28
'VENUE CHANGES - GENERAL FUND
2024vs2O25 2025vs2O26
00- Changes Changes
Property Tax
1%+ new construction 325,540 329,820
Sales Tax
Volume Adjustment 360,380 161,500
Utility Tax
Baseline/Volume Adjustments
Internal Utility Taxes 271,980 272,330
Bectric 737,970 492,720
Gas (205,260) 45,460
Garbage and Telephone 99,660 6,110
Cable (266,840) (91,430)
B&O Tax
Scheduled Increase for Business Warehouse Square Footage Rate 3,000,000
Increase Gross Receipts Manufacturing Rate from 0.001 to 0.00125 845,000
Increase Gross Receipts maximum cap from $20m to$25m 86,800
Baseline Adjustments 833,220 121,510
Other Taxes
Baseline Adjustments 137,170 4,370
PROPOSED 2025-26 Im-
SPECIAL
WORKSHOP 0. KENTWA.GOV
ap
Estimated Budge Ri or YearTax Current 1/1/2025
Yam. �W
Revenue
Busi ness Wareho Square 2019 20,000,000
Floor* Footage 2020 1.7 20,340,000
Manufacturing Grss Receipts o 1 1 1 411
2022 ..3 21,837,630
Current 1/1/2025 Estimated 202311
Revenue
2024 4.5 24,988,250
FZetailing Gross Receipts Cap
MAYOR'S PROPOSED 2025-26
BIENNIALBUDGET SPECIAL COUNCIL WORKSHOP 09-23-2024 KENTWA.GOV f E T
kX RATE COMPARISON
� Ln
N N
O O
N N
C C
N N
�L Y
0
Manufacturing Rate Retail Rate Services Rate Wholesale Rate
■ Auburn u Bellevue ■ Burien ■ Des Moines a Kent 2024 u Kent 2025 ■ Renton ■ Seattle*
Budget Book Page 28
MA30R REVENUE CHANGES - GENERAL FUND
, .
ChangesChanges
Licenses and Permits
Building and Street Permits 139,970 81,730
Other Baseline Adjustments 170,420 (30,120)
Intergovernmental Revenue
Liquor Excise Tax and Board Profits (96,530) 1,100
Other Baseline Adjustments 67,900 35,580
Charges for Services
Plan Check and Review Adjustments 664,062 120,910
Other Baseline Adjustments 237,248 49,110
Fines and Forfeitures
Parking Penalties 131,000 4,320
Other Baseline Adjustments 51,590 4,950
PROPOSED 2025-26
Budget Book Page 28-29
M e mlno nVVENUE CHANGES - GENERAL FUND
024 vs 2025 2025vs2O26
Changes , •
Miscellaneous Revenue
Interest Income 833,300 (270,490)
Rentals 161,080 2,340
Reimbursements (63,200) 12,720
Other Baseline Adjustments (31,970) 2,560
Transfers In
Baseline Adjustments 27,910 55,070
ARPAAdjustments
One-time transfers in 2024 (2,982,910)
Fbce & Equity Coordinator Position 10,990 3,470
Total Revenues $ 5,546,480 $ 1,415,640
PROPOSED2025-26
Budget Book Page 35
SSUMPTIONS
Salary Increases
AFSCM 1NR 3.6% 2.5%
Teamsters 3.6% 2.5%
KPOA 3.6% 2.5%
Self-Insured Health Plans 0.0% 0.0%
Retirement
PERS 9.11% 9.11%
L2PD 5.32% 5.32%
Supplies 2.0% 2.0%
Services 2.0%or by contract 2.0%or by contract
Insurance Allocations
Workers Compensation 20% 6.5%
Liability 15% 5.0%
Property 0% 2.5%
PROPOSED 2025-26
2024 2025 2026
aqu
�dj Budg o oposed
Q Q $ 44:4:1 'i 494,880 $ 51� 170
PdninistrAic 9CBD 911 E67,410
Ebcncnic&QnmnityDat 1Q63Z510 1 1 12 151,5M
Fna-m :9R :1 :6►Z:1 4,CB1,6M
FreGitracted3amcEs iy E 65810 • i1
• i:1 Z 1M460 Z3VMD
Mini •-. Qurt 4,437,810 4,T15 570 4,91,5740
': : CA •, 24,Ise "11 24,6EROED w 1R i1
'• r 13543R540 ,r 51a 18D 64,495910
• aWrnatcl 1Q 1M410 a3Et110 7,M510
low ftm
MAYOR'S PROPOSED 2825-25
BIENNIALBUDGE7 SPECIAL COUNCIL WORKSHOP 09-23-2024 KENTwA.G4v �f�NT
Budget Book Page 40
XPENDITURE CHANGES -
FUND
Changes2025 Proposed 2026 Proposed
sko MM _ FTE Amount FTE Amount
• -
Operating Adjustments
Administration
Extend Term-Limited Race & Equity Coordinator(ARPA) 147,950 151,420
Economic&Community Development
Rood Plain Certification Engineer 1.0 179,590 190,960
Set up/ Recurring Costs 13,200 600
Allocation to the Drainage Fund (35,920) (38,190)
Convert Term-Limited Position to Permanent
Long-Range Planner Position 153,140 162,490
Set up/ Fbcurring Costs 11,100 500
Convert Term-Limited Permit Tech to Permanent 134,400 137,960
Convert Term-Limited Planner to Permanent 135,690 144,450
Set up/ Fbcurring Costs 1,700 1,500
Human Resources
Workday-CVSConsulting Services - 50,000
Workday Technical Training 42,600 42,600
Budget Book Page 40
MA30R EXPENDITURE CHANGES -
GENERAL FUND
Changes2025 Proposed 2026 Proposed
Changes• • Amount
Law
Assistant City Attorney - 1.0 189,860
Set up/ Fbcurring Costs 13,500
Municipal Court
Probation Officer 1.0 142,890 151,510
Set up/ Recurring Costs 6,300 2,000
Shift 75%of the Resource Coordinator position
To Opioid Funding (90,340) (96,740)
Shift $75k of Probation position costs to Traffic Grant (75,000) (75,000)
Parks, Recreation &Community Services
NPDE Stormwanter System Management 100,000 -
Edend Term-Limited Senior Center Program Coordinator 121,200 128,850
Convert Part-Time Program Assistant II to Full Time 0.37 37,550 43,110
Reduce Temp Budget (29,000) (33,000)
Encampment Contracted Clean Up Services 75,000 75,000
potlight Series Funding 55,000 55,000
Feallocate Underutilized Budgets (55,000) (55,000)
Contracted Security Services 50,000 50,000
Budget Book Page 41
MA30R EXPENDITURE CHANGES -
GENERAL FUND
Changes2025 Proposed 2026 Proposed
. -
LLTE Amount FTE Amount _
LA
Police
Police Sergeants 2.0 454,140 465,240
Set up/ Recurring Costs 49,640 28,620
Patrol Officer 1.0 164,380 174,440
Set up/ Recurring Costs 24,820 14,310
Corrections Sergeant 1.0 157,050 166,750
Set up/ Recurring Costs 9,440 2,470
Wellness Program 30,000 30,000
IA Software 20,000 20,000
Other Adjustments
Shift Expendituresto Human Services Fund (225,000) (225,000)
Increase Internal Allocations 123,080 400,500
Increase Street Fund Subsidy 200,110 197,620
Total Expenditures 6.37 $ 2,129,710 1.00 $ 2,568,330
Budget Book Page 65-66
COUNCIL WORKSHOP................. ..... . . . . . . . ...... ...... ...... ...... ..... ...... ...... ...... .. Oct 1
TOther funds baseline discussion:significant changes
4COUNCIL MEETING........... ...... ...... ...... ...... ...... ..... ...... ...... ...... ...... ...... ..... Oct 1
' 'I st Public Hearing-2025-26 Biennial Budget&202-5-2030 CIP
4COUNCIL WORKSHOP(Special Meeting if needed)............... ...... ..... ...... ...... ...... ..... Oct 8
Additional information and discussion
M COUNCIL WORKSHOP . . ...... ...... ...... ...... ...... ...... ..... ...... Oct 15
................ ...
Questions and Final Decisions
ECOUNCIL MEETING.. ..... ...... ...... ...... ..... ...... ...... ...... ...... ...... ... Oct 15
Public Hearing-2025 Property Tax Levy
L /'11d Public Hearing- 2025-26 Biennial Budget
COUNCIL WORKSHOP(Special Meeting if needed)............... ...... ..... ...... ...... ...... ... Oct 22
' PREPARE BUDGET ADOPTION AND RELATED DOCUMENTS.............. ...... ...... .... Oct 1 Nov 19
COMMITTEE OF THE WHOLE MEETING ............ ...... ...... ...... ...... ...... ...... ...... ..... Nov 5
N2025-26 Budget Recommendation
COUNCIL MEETING........... ...... ...... ...... ...... ...... ..... ...... ...... ...... ...... ...... .. . Dec 10
E Adoption of the 2 02 5 Property Tax Levy
Adoption of the 202�26 Biennial Budget
• Next Tuesday's Budget Workshop will bean overview of all other
funds
• Please send questions you have our way
• Paula Painter — painter@kentwa.gov
• Michelle Ferguson — mferguson@kentwa.gov