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City of Tukwila <br />Allan Ekberg, Mayor <br />INFORMATIONAL MEMORANDUM <br />TO: Finance and Governance Committee <br />FROM: Vicky Carlsen, Finance Director <br />CC: Mayor Ekberg <br />DATE: April 6, 2021 <br />SUBJECT: Department 20 (non -departmental expenditures) Discussion <br />ISSUE <br />Provide information on the purpose of Department 20, a department within the general <br />fund that records accounting transactions related to transfer of money to other funds. <br />BACKGROUND <br />During budget discussions with City Council in late 2020, a request was made to provide <br />information on Department 20, which is a department in the general fund that records <br />non -departmental transactions. <br />DISCUSSION <br />The general fund is the main operating fund for the City and is used to account for all <br />financial resources except those that are required to be accounted for in another fund. <br />The general fund categorizes expenditures by department in an attempt to demonstrate <br />how much it costs to provide various services that are not required to be accounted for in <br />another fund. <br />An example would be the Public Works department. Public Works provides a number of <br />services, including road and street maintenance, traffic control devices, street cleaning, <br />bus stop maintenance, streetscape, median landscaping, street lighting, snow and ice <br />removal, video and fiber, minor structural repairs, and sidewalks. All of these services <br />are captured in the Public Works department within the general fund. However, Public <br />Works also provides infrastructure improvements which are capital projects. Capital <br />projects are required to be accounted for in a capital projects fund. Public Works also <br />provides water, sewer, and surface water services. These are utilities and are required <br />to be accounted for as enterprise funds. <br />Department 20 captures transactions that are city-wide in nature and not specific to any <br />one department. Department 20 is only used to record transfers of general fund revenue <br />to other funds for expenditures that are required to be accounted for in a different fund. <br />This is a very common accounting practice and most, if not all, cities account for transfers <br />in this manner. Transfers are categorized as follows: <br />- Transfers for debt service payments for LTGO bonds. LTGO bonds are authorized <br />by Council and are paid for with general fund revenue sources. <br />- Transfers for capital projects that are at least partially funded by general fund <br />revenue. <br />43 <br />