HomeMy WebLinkAboutFS 2010-05-18 COMPLETE AGENDA PACKETItem
1. PRESENTATION(S)
2. BUSINESS AGENDA
City of Tukwila
Finance and Safety
Committee
o De'Sean Quinn, Chair
O Allan Ekberg
O Kathy Hougardy
a. Investment Report;
Shawn Hunstock, Finance Director.
b. Minimum Government Fund Balance;
Shawn Hunstock, Finance Director.
c. Sales Tax Report;
Shawn Hunstock, Finance Director.
d. 2010 First Quarter Report.
3. ANNOUNCEMENTS
4. MISCELLANEOUS
AGENDA
TUESDAY, MAY 18, 2010
CONFERENCE ROOM #3; 5:00 PM
Distribution:
D. Quinn
A. Ekberg
K. Hougardy
D. Robertson
Mayor Haggerton
S. Lancaster
C. O'Flaherty
S. Brown
J. Ferrer -Santa Ines
B. Giberson
D. Haynes
Recommended Action
a. Information only.
b. Information only.
c. Information only.
d. Information only.
Next Scheduled Meeting: Tuesday, June 8, 2010
Committee Goals:
Work together in cooperation with nearby cities to address common problems in the Highway 99 corridor and Military
Road.
Ensure a commitment to continued human services funding in relation to the cost of living through consistent review
of regional, state and federal budgets affecting human services progams and services (also assigned to CAP).
Research the viability of sponsoring a City-wide Citizens' Academy (also assigned to CAP).
The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206 433 -1800 for assistance.
S. Hunstock D. Speck
M. Hart R. Still
S. Kerslake D. Tomaso
K. Kertzman J. Trantina
T. Kinlow M. Villa
K. Matej Judge Walden
M. Miotke B. Arthur
G. Labanara C. Parrish
D. Lincoln K. Narog
N. Olivas S. Kirby
J. Pace S. Norris
Page
Pg.1
Pg.19
Pg.23
Pg.27
TO:
BACKGROUND
City of Tukwila
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance and Safety Committee
FROM: Peggy McCarthy, Deputy Finance Director
DATE: May 12, 2010
SUBJECT: March 31, 2010 Quarterly Cash Investment Report
ISSUE
Jim Haggerton, Mayor
Finance Policy and Procedure 03 -17, Investment Policy, calls for quarterly investment reports to
the Council Finance and Safety Committee. The report is to contain an inventory of investments
on hand and a summary of performance. The last report covered investments held on
December 31, 2009 and was presented at the March 2, 2010 Finance and Safety Committee
meeting.
The City invests its funds with the goal of maximizing return while preserving principal and
ensuring sufficient liquidity to meet the City's operating needs. As of March 31, 2010, the city's
cash and investment portfolio comprised an investment pool, a money market account, and
certificate of deposits, a government agency note and a depository account. Since the last
reporting period, a 2.3% agency note was called, a 2.08% agency note was purchased, the US
Bank 1.44% compensating balance certificate of deposit was increased by $950,000 and two
additional certificates of deposits (CD) were purchased an 18 -month 1.2% $250,000 CD and a
12 -month .99% $5,000,000 CD.
The portfolio remains diversified in terms of both security type and financial institution. The
Local Government Investment Pool (LGIP) operated by the Washington State Treasurer's office
constitutes the highest concentration of both investment type and financial institution with 54%
of the portfolio invested in the pool at the report date still well within the 75% allowed by the
investment policy. Certificates of deposit at 36% of the portfolio represent the second largest
concentration by security type. Sound Community Bank is the financial institution holding the
second highest percentage of City funds, after the state treasurer, with $8 million or 20% of the
portfolio. This concentration is also within the 50% limit imposed by the investment policy. All
banks holding City funds are members of the Public Deposit Protection Commission (PDPC)
and, pursuant to PDPC regulations, fully collateralize deposits of public funds.
Cash and investments are held by most City funds and fund groups. A schedule showing the
cash and investment balances held by each fund and fund group (i.e., general, special revenue,
debt service, etc), at March 31, 2010 is included as an attachment to this memorandum to show
the level of availability or restriction existing in the portfolio. Also included is 10 -year trend
analysis showing the cash and investment balances at the end of each year, together with the
investment income for that year and the computed yield derived from the two. This schedule
clearly demonstrates the investment income decline experienced in 2009 and anticipated for
2010. The March 31, 2010 portfolio average yield was .76 very low historically, but an 11
basis point improvement over the December 31, 2009 average yield of .65 The 10 -year
trend analysis also shows that cash and investment balances, at least at year -end, have not
INFORMATIONAL MEMO
Page 2
dropped below $28 million during this ten year period. The average life of the fixed term
maturities is 21 months.
DISCUSSION
Interest rates are projected to remain at historic lows for an extended period. Although the
federal government ended its purchasing of mortgage- backed securities on March 31, 2010
and some economists expected interest rates to climb sharply as a result, this has not occurred.
According to the median forecast in a Bloomberg News survey of 47 economists early this
month, "The Fed will keep rates near a record low until a quarter -point increase at the
November meeting" of the Federal Open Market Committee. City investment earnings for 2009
were the lowest in ten years by a large margin. The 2009 earnings of $495,958 represent 35%
of the 2008 earnings of $1,433,068, or a 65% reduction. The annualized return of the existing
portfolio yields a little over $300,000 representing 62% of the 2009 earnings or a 38% decline.
Additionally, budgeted investment earnings for the 2009 -2010 biennium total $3,149,000 or
$1,574,500 per year.
To mitigate this low interest rate environment, the following strategies are being considered:
1) Keep a high percentage of the portfolio in short maturities (1 to 2 year terms) until rates
improve.
2) Invest up to $5 million of additional funds in short term, fixed rate instruments.
3) Explore alternative investment instruments. The investment policy permits investment in
state and local general obligations. Taxable municipal bonds and the new Build America
Bonds have been identified as a favorable investment options. However those with
shorter maturities, bonds with terms of five years or less, are in demand and hard to
come by according to Keith Peterson of Vining Sparks Investments.
4) Revise the City's investment policy allowing investment terms of up to ten years for 20%
of the portfolio and up to five years for 80% of the portfolio. The ten -year trend analysis
demonstrates that year -end cash and investment balances have not fallen below $28
million in 10 years. A portion of this core could be invested in longer term instruments
taking advantage of better yields without compromising the City's liquidity requirements.
RECOMMENDATION
No recommendation, for Committee information only.
ATTACHMENTS
Cash and Investment Report as of March 31, 2010
Cash and Investment Balances by Fund and Fund Group at March 31, 2010
Cash and Investment Balances by Fund and Fund Group 2006, 2007, 2008, 2009
Ten -Year Trend Analysis Balances, Income Yields
City Investment Policy with proposed revisions (see page 4)
Glossary of Cash Management terms
Public Deposit Protection Commission overview
Local Government Investment Pool overview
Yield curve at 5 -12 -10 and 4 -7 -10
W:IFIN Projects\Council Agenda ItemslInfoMemo Invstmnt Rprt 3- 31- 10.docx
CITY OF TUKWILA
CASH INVESTMENT REPORT
March 31, 2010
Cash Investment Balances By Fund and Fund Group
At December 31 2006, 2007, 2008, and 2009
Fund Group
Fund 2006 2007 2008 2009
General
General Total
Special Revenue
000
7,873,515 7,319,814 7,759,376 3,708,200
7,873,515 7,319,814 7,759,376 3,708,200
101 838,549 665,090 718,184 941,474
103 95,907 104,538 362,539 634,793
104 5,095,486 8,016,689 9,788,250 5,037,698
105 813,237 399,059 878,381 885,462
107 592,416 60,185 425,015 802,279
109 222,824
Special Revenue Total 7,435,595 9,245,562 12,172,369 8,524,529
Debt Service 207 115,681 102,686 91,958 (55,311)
208 173,984 298,222 302,945 (22,268)
209 281,221 381,547 387,159 (70,737)
210 198,647 197,173 191,694 (51,394)
211 1,374 (39,683)
Debt Service Total 769,534 979,629 975,129 (239,393)
Capital Project 301 3,869,960 3,769,401 3,138,866 4,343,630
302 2,466,420 2,611,407 2,090,509 2,076,468
303 764,427 615,439 692,181 327,790
304 13,346
Capital Project Total 7,100,808 6,996,247 5,921,555 6,761,234
Enterprise 400 14,551
401 6,362,554 4,963,528 5,895,729 5,846,139
402 1,737,118 839,662 2,079,181 1,721,446
404 209,851 208,910 209,313
405 393,547 393,547 393,547 393,547
411 417,512 502,536 395,908 181,626
412 2,823,498 2,654,455 3,410,121 2,099,265
Enterprise Total 11,734,230. 9,563,579 12,383,395 10,465,887
Internal Service 501 3,276,236 3,069,015 3,513,780 3,159,879
502 961,457 1,499,731 2,786,419 4,548,635
503 708,810 721,652 1,053,348 1,347,955
Internal Service Total 4,946,503 5,290,398 7,353,547 9,056,469
Fiduciary 611 1,320,746 1,110,160 1,444,962 1,436,365
Fiduciary Total 1,320,746 1,110,160 1,444,962 1,436,365
Agency 640 104,628
Agency Tota .:v :m. 104,628
Grand Total 41,180,930 40,505,389 48,010,334 39,817,919
Agency Issuer
CASH CASH EQUIVALENTS
US Bank Depository
Washington State Local Investment Pool
Government Investment Pool
Sound Community Bank
LONG -TERM INVESTMENTS
First Savings Bank Northwest
Sound Community Bank
Charter Bank
Sound Community Bank
US Bank
Sterling Bank
Sound Community Bank
Federal Home Loan Bank
Investment Type
Money market
Certificate of Deposit
Certificate of Deposit
Certificate of Deposit
TOTAL CASH, CASH EQUIVALENTS INVESTMENTS
CITY OF TUKWILA
CASH INVESTMENT REPORT
March 31, 2010
Purchase
Deposit
Date
Various
Various
Various
05/01/2009
05/20/2009
05/26/2009
Maturity
Call
Date
N/A (b)
N/A lb)
05/01/2011 24
04/20/2011 23
05/26/2011 24
Certificate of Deposit 06/15/2009 06/15/2010
Certificate of Deposit,
compensating
balance
Certificate of Deposit
02/16/2010 08/16/2011 18
02/15/2010 02/15/2013 36
Certificate of Deposit 03/04/2010 03/04/2011
US agency
(a) To maturity or call date, whichever occurs first.
(b) NIA. No maturity; funds may be withdrawn at par at any time.
(c) Represents call date rather than maturity date.
(d) Annualized return based on purchase price and yield to maturity.
03/23/2010 12/31/2010 6
21
21
(a)
Term
(months)
N/A (b) N/A (b)
N/A (b)
12
12
Average Life
Investment Mix
Depository
State Investment Pool
Money market
Certificate of Deposit
US Agency
Purchase
Price
Book Yield to Annualized
Balance Maturity Return Idl
N/A (b) 2,312,107 2,312,107 0.00%
N/A lb) 21,879,448 21,879,448 0.23% 50,323
500,000 502,704 0.40% 2,000
24,691,555 24,694,260 0.21% 52,323
2,000,000 2,030,860 2.50%
1,500,000 1,519,633 2.22%
1,500,000 1,517,678 1.98%
1,000,000 1,008,453 1.68%
3,450,000 3,450,000 1.44%
250,000
5,000,000
1,000,000
15,700,000
40,391,555
of Total
5.7%
54.2%
1.2%
36.4%
2.5%
100.0%
250,000 1.20% 3,000
5,000,000 0.99% 49,500
1,000,000 2.08% 20,800
15,776,623 1.61% 252,810
$40,470,883 0.76% $305,133
Blended Tukwila rate
Benchmarks At 03 -31 -10
90 -day treasury rate 0.16%
6 -month treasury rate 0.26%
State Pool rate 0.23%
50,000
33,330
29,700
16,800
49,680
Mar2010 2,312,107
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1,825,023
3,707,780
6,534,677
2,020,740
1,621,309
890,933
2,589,989
4,325,499
1,570,267
590,427
1,118,475
CITY OF TUKWILA
CASH INVESTMENT REPORT
March 31, 2010
Ten -Year Trend Analysis Balances, Income Yields
$22382,153
$28,413,773
34,218,380
21,592,849
18,451,303
11,320,013
19,311,354
11,937,449
7,963,366
4,046,677
24,474,692
1 560 074
15, 776, 623
9,579,123
10, 084,174
12,377,863
20,708,887
22,036,333
16,971,875
18,159,063
22,508,750
29,266,530
6,507,305
25 600 000
40,470,883
39,817,919
48,010,334
40,505,389
41,180,930
34,977,655
37,174,161
32,686,500
34,797,615
34,883,474
31,572,425
28,278,549
art` Investment ;:Yield
corn
2010 est 310,000 0.77%
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
495,958 1.25%
1,433,068 2.98%
2,252,129 5.56
1,750,263 4.25%
1,291,355 3.69%
934,753 2.51%
880,456 2.69%
1,269,253 3.65%
1,709,103 4.90%
1,086,311 3.84%
Weighted Average Yield 3.71%
1,869,912' 5.92
City of Tukwila, Washington
INVESTMENT POLICY
Adopted by the
Tukwila City Cotwcil
On May 15, 2000
Ordinance No. 1916
Alan R Doerschel, Finance Director
City of Tukwila
Investment Policy
1.0 Policy
It is the policy of the City of Tukwila to invest public funds in a manner that will provide
maximum security with the highest investment return while meeting the daily cash flow
demands of the City, while conforming to all state and local statutes governing the
investment of public funds.
2,0 Scope
This policy applies to the investment of all public funds in the custody of the Tukwila
Finance Director. Funds covered by this policy include all city funds created by the
Tukwila City Council, and are accounted for in the City's Comprehensive Annual Financial
Report (CAFR).
2.1 Fund Types:
General/Current Expense Funds
Special Revenue Funds
Debt Service Funds
Capital Project Funds
Enterprise Funds
Internal Service Funds
Trust Funds
Agency Funds
2.2 Funds relating to debt service will be invested in accordance with appropriate bond
documents.
3.0 Prudence
Investments shall be made with judgment and care, under circumstances then prevailing,
which persons of prudence, discretion and intelligence exercise in the management of their
own affairs, not for speculation, but for investment, considering the probable safety of their
capital as well as the probable income to be derived.
The standard of prudence to be used by investment officials shall be the "prudent person"
standard and shall be applied in the context of managing an overall portfolio. Investment
officers acting in accordance with written procedures and the investment policy and
exercising due diligence shall be relieved of personal responsibility for an individual
security's credit or market price changes, provided deviations from expectations are
reported in a timely fashion and appropriate action is taken to control adverse
developments.
1-
City of Tukwila
Investment Policy
4.0 Objectives
The primary objectives, in priority order, of the City's investment activities shall be:
Safety: Safety of the principal is the foremost objective of the investment program.
Investments of the City shall be undertaken in a manner that seeks to ensure the
preservation of capital in the overall portfolio. To attain this objective, diversification
is required in order that potential Iosses on individual securities do not exceed the
income generated from the remainder of the portfolio.
Liquidity: The City's investment portfolio will remain suffidiently liquid to enable the
City to meet all operating requirements that might be reasonably anticipated.
Yield: The City's investment portfolio shall be designed with the-objective of attaining
a market rate of return throughout budgetary and economic cycles, taking into account
the City's investment risk constraints and the cash flow characteristics of the portfolio.
See 13.0.
5.0 Authority
Management responsibility of the investment program is vested in the City of Tukwila
Financial Director under the express authority granted in RCW 39.29.020.
5.1 The City Finance Director may appoint an Investment Officer whose responsibilities
will include initiating daily transactions in the investment portfolio based on
liquidity and cash flow requirements of the City.
5.2 Investments relating to bond proceeds shall be made consistent with 4.0,
"Objectives."
6.0 Ethics and Conflict of Interest
6.1 Officers and employees involved in the investment process recognize that the
investment portfolio is subject to public review and evaluation. The overall program
will be designed and managed with a degree of professionalism that is worthy of the
public trust.
6.2 Officers and employees involved in the investment process shall refrain from
personal business activity that could conflict with the proper execution of the
investment program, or which could impair their ability to make impartial
investment decisions. Employees and investment officials shall disclose any
material financial interests in financial institutions that conduct business within this
jurisdiction, and they shall further disclose any personal financiallinvestment
positions that could be related to the performance of the City's portfolio. Employees
and officers shall subordinate their personal investment transactions to those of the
City, particularly with regards to the timing of purchases and sales.
-2_ 1
City of Tukwila
Investment Policy
7.0 Authorized Financial Dealers and Institutions
7.1 Selection of a primary bank to provide general banking services for Tukwila will be
made by the Finance Director and approved by the City Council and Mayor,
7.2 Pursuant to state statutes (RCW 39.58), the deposit of public funds and the
placement of "investment deposits" (i.e. time deposits, money market deposit
accounts and savings deposits of public funds), will be placed only with institutions
approved by the Washington Public Deposit Protection Commission (PDPC) as
eligible for deposit of public funds. The maximum amount placed with any one
depository will not exceed the net worth of the institution as determined by the
PDPC.
7.3 In addition, the Finance Director will maintain a list of approved broker/ dealers that
are authorized to provide investment services to the City.
7.3.1 Authorized broker /dealers must maintain an office inthe State of Washington.
7.3.2 Authorized broker/dealers will be limited to primary dealers or other dealers
that qualify under SEC Rule 15C3-1, the Uniform Net Capital Rule.
7.3,3 All approved firms and the individuals that represent.them are required to read
this policy and certify that they understand and will comply with the City's
investment objectives and constraints.
7.3.4 Broker /dealers that have been selected to provide investment services to the
City are required to submit an audited financial statement annually to the
Finance Director, if requested.
8.0 Authorized Investments
State statutes and this investment policy limit the types of securities authorized for
investment by the City. The principal governing statutes are RCW 39.59 and RCW 39.60.
The Finance .Director may further restrict eligible investments by this policy at his/her
discretion. Authorized investments include (but are not limited to):
8.1 U.S. Treasury Securities.
8.2 U.S. Agency Securities (i.e. obligations of any government sponsored corporation
eligible for collateral purposes at the Federal Reserve),
83 Certificates of Deposit, Money Market Deposit Accounts and savings deposits with
qualified depositories within statutory limits as promulgated by the PDPC at the time
of investment.
8.4 Bankers Acceptances (BA's) purchased on the secondary market with a rating of A-
I, P -1, its equivalent or better.
City of Tukwila
Investment Policy
8.5 General Obligation Bonds of a state or local government jwhich have at the time of
the investment one of the three highest credit ratings of a nationally- recognized
rating agency.
8.6 The Washington State Local Government Investment Pool'(LGlP).
9.0 Safekeeping and Custody
9.1 Securities purchased by the Finance Director are to be held in a custodial account in
the safekeeping or trust department of a bank acting as third party custodian for the
City of Tukwila.
9.2 All security transactions conducted by the custodian on behalf of the City of Tukwila
are to be on a delivery- versus payment (DVP) basis.
9.3 Certificates of Deposit, transaction receipts for Money Market Deposit Accounts or
savings deposit accounts will be held by the Finance Director.
10.0 Diversification
The City of Tukwila will diversify its investments by security type and institution.
10.1 No more than fifty percent (50 of the City's portfolio, at the time of purchase,
shall be in any single financial institution.
10.2 Except, that no more than seventy -five (75 of the City's portfolio, at the time of
purchase, shall be invested in the Washington Local Government Investment Pool,
and
10.3 No more than seventy -five percent (75 of the City's portfolio, at the time of
purchase, shall be invested in U.S. Treasury or Agency securities.
10.4 The City's Finance Safety Committee can authorize a variance to 10.1, 10.2 or
10.3 prior to purchase, if it is deemed in the best overall benefit to the City,
11.0 Maturities
To the extent possible, and to preclude the sale of securities that could result in a loss,
investments will be made to coincide with anticipated cash flow requirements.
11.1 11.1 At the time of investment, a minimum of fifty percent (50 of the portfolio will
be comprised of investments maturing or available within one year.
11,0 At the time of investment, no securities or investment instruments shall have a
maturity exceeding years, except when compatible with a specific fund's
investment needs. e-- i
11� To provide for ongoing market opportunity, investment maturities should be
laddered or staggered to avoid the risk resulting from over- concen- tration of
portfolio assets in a specific maturity.
(t, the a--i )te oC e.1 pe ce,14 C80%) 0 +he po;+ too
wit( be ccmp'i'ed oC ic‘a 1 ■,-13 available
(zithin years
City of Tukwila
Investment Policy
11.4 The average maturity of the portfolio shall not exceed two (2) years.
11.5 Any variance to 11.1, 11.2, 11.3 or 11.4 can be approved by the Finance Safety
Committee prior to occurrence, and if deemed in the City's best interest.
12.0 Internal Controls
The Finance Director shall establish a system of internal controls, which are subject to
review by the State Auditor. Such reviews may result in redommendations to change
operation procedures to improve internal controls. Controls shall be designed to protect
against loss of public funds due to fraud, error, misrepresentation or imprudent actions.
13.0 Performance Standards 1 Benchmarks
The investment portfolio will be designed to obtain an average rate of return during
budgetary and economic cycles which meets or exceeds the average 90 -day Treasury bill
rates for the corresponding time period. This performance standard shall take into account
the City's investment risk constraints and cash flow needs.
14.0 Reporting
The Finance Director will submit a quarterly report to the City's Finance Safety
Committee that summarizes the current portfolio position and performance.
15.0 Investment Policy Adoption
Adoption of this policy is made pursuant to the provisions of RCW 36.48.070.
Approved and adopted by the City Coun of the
City of Tukwila this day of 2000.
Glossary of Cash Management Terms
The following is a glossary of key investing terms, many of which appear in GFOA's
Sample Investment Policy. This glossary has been adapted from an article, entitled
"Investment terms for everyday use," that appeared in the April 5, 1996, issue of Public
Investor, GFOA's subscription investment newsletter.
Accrued Interest The accumulated interest due on a bond as of the last interest
payment made by the issuer.
Agency A debt security issued by a federal or federally sponsored agency. Federal
agencies are backed by the full faith and credit of the U.S. Government. Federally
sponsored agencies (FSAs) are backed by each particular agency with a market
perception that there is an implicit government guarantee. An example of federal agency
is the Government National Mortgage Association (GNMA). An example of a FSA is the
Federal National Mortgage Association (FNMA).
Amortization The systematic reduction of the amount owed on a debt issue through
periodic payments of principal.
Average Life The average length of time that an issue of serial bonds and /or term
bonds with a mandatory sinking fund feature is expected to be outstanding.
Basis Point A unit of measurement used in the valuation of fixed income securities
equal to 1/100 of 1 percent of yield, e.g., "1/4" of 1 percent is equal to 25 basis points.
Bid The indicated price at which a buyer is willing to purchase a security or commodity.
Book Value The value at which a security is carried on the inventory lists or other
financial records of an investor. The book value may differ significantly from the security's
current value in the market.
Callable Bond A bond issue in which all or part of its outstanding principal amount may
be redeemed before maturity by the issuer under specified conditions.
Call Price The price at which an issuer may redeem a bond prior to maturity. The price
is usually at a slight premium to the bond's original issue price to compensate the holder
for loss of income and ownership.
Call Risk The risk to a bondholder that a bond may be redeemed prior to maturity.
Cash Sale /Purchase A transaction which calls for delivery and payment of securities on
the same day that the transaction is initiated.
Collateralization Process by which a borrower pledges securities, property, or other
deposits for the purpose of securing the repayment of a loan and/or security.
Commercial Paper An unsecured short -term promissory note issued by corporations,
with maturities ranging from 2 to 270 days.
Convexity A measure of a bond's price sensitivity to changing interest rates. A high
convexity indicates greater sensitivity of a bond's price to interest rate changes.
Coupon Rate The annual rate of interest received by an investor from the issuer of
certain types of fixed income securities. Also known as the "interest rate."
3/7/2003
Credit Quality The measurement of the financial strength of a bond issuer. This
measurement helps an investor to understand an issuer's ability to make timely interest
payments and repay the loan principal upon maturity. Generally, the higher the credit
quality of a bond issuer, the lower the interest rate paid by the issuer because the risk of
default is lower. Credit quality ratings are provided by nationally recognized rating
agencies.
Credit Risk The risk to an investor that an issuer will default in the payment of interest
and/or principal on a security.
Current Yield (Current Return) A yield calculation determined by dividing the annual
interest received on a security by the current market price of that security.
Delivery Versus Payment (DVP) A type of securities transaction in which the
purchaser pays for the securities when they are delivered either to the purchaser or
his /her custodian.
Derivative Security Financial instrument created from, or whose value depends upon,
one or more underlying assets or indexes of asset values.
Discount The amount by which the par value of a security exceeds the price paid for
the security.
Diversification A process of investing assets among a range of security types by
sector, maturity, and quality rating.
Duration A measure of the timing of the cash flows, such as the interest payments and
the principal repayment, to be received from a given fixed income security. This
calculation is based on three variables: term to maturity, coupon rate, and yield to
maturity. The duration of a security is a useful indicator of its price volatility for given
changes in interest rates.
Fair Value The amount at which an investment could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale.
Federal Funds (Fed Funds) Funds placed in Federal Reserve banks by depository
institutions in excess of current reserve requirements. These depository institutions may
lend fed funds to each other overnight or on a longer basis. They may also transfer funds
among each other on a same -day basis through the Federal Reserve banking system.
Fed funds are considered to be immediately available funds.
Federal Funds Rate Interest rate charged by one institution lending federal funds to the
other.
Government Securities An obligation of the U.S. government, backed by the full faith
and credit of the government. These securities are regarded as the highest quality of
investment securities available in the U.S. securities market. See "Treasury Bills, Notes,
and Bonds."
Interest Rate See "Coupon Rate."
Interest Rate Risk The risk associated with declines or rises in interest rates which
cause an investment in a fixed income security to increase or decrease in value.
Internal Controls An internal control structure designed to ensure that the assets of the
entity are protected from loss, theft, or misuse. The internal control structure is designed
to provide reasonable assurance that these objectives are met. The concept of
reasonable assurance recognizes that 1) the cost of a control should not exceed the
benefits likely to be derived and 2) the valuation of costs and benefits requires estimates
and judgments by management. Internal controls should address the following points:
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1. Control of collusion Collusion is a situation where two or more employees are
working in conjunction to defraud their employer.
2. Separation of transaction authority from accounting and record keeping By
separating the person who authorizes or performs the transaction from the people
who record or otherwise account for the transaction, a separation of duties is
achieved.
3. Custodial safekeeping Securities purchased from any bank or dealer including
appropriate collateral (as defined by state law) shall be placed with an independent
third party for custodial safekeeping.
4. Avoidance of physical delivery securities Book -entry securities are much
easier to transfer and account for since actual delivery of a document never takes
place. Delivered securities must be properly safeguarded against loss or
destruction. The potential for fraud and loss increases with physically delivered
securities.
5. Clear delegation of authority to subordinate staff members Subordinate staff
members must have a clear understanding of their authority and responsibilities to
avoid improper actions. Clear delegation of authority also preserves the internal
control structure that is contingent on the various staff positions and their
respective responsibilities.
6. Written confirmation of transactions for investments and wire transfers Due
to the potential for error and improprieties arising from telephone and electronic
transactions, all transactions should be supported by written communications and
approved by the appropriate person. Written communications may be via fax if on
letterhead and if the safekeeping institution has a list of authorized signatures.
7. Development of a wire transfer agreement with the lead bank and third -party
custodian The designated official should ensure that an agreement will be
entered into and will address the following points: controls, security provisions, and
responsibilities of each party making and receiving wire transfers.
Inverted Yield Curve A chart formation that illustrates long -term securities having lower
yields than short -term securities. This configuration usually occurs during periods of high
inflation coupled with low levels of confidence in the economy and a restrictive monetary
policy.
Investment Company Act of 1940- Federal legislation which sets the standards by
which investment companies, such as mutual funds, are regulated in the areas of
advertising, promotion, performance reporting requirements, and securities valuations.
Investment Policy A concise and clear statement of the objectives and parameters
formulated by an investor or investment manager for a portfolio of investment securities.
Investment -grade Obligations An investment instrument suitable for purchase by
institutional investors under the prudent person rule. Investment -grade is restricted to
those obligations rated BBB or higher by a rating agency.
Liquidity An asset that can be converted easily and quickly into cash.
Local Government Investment Pool (LGIP) An investment by local governments in
which their money is pooled as a method for managing local funds.
Mark -to- market The process whereby the book value or collateral value of a security is
adjusted to reflect its current market value.
Market Risk The risk that the value of a security will rise or decline as a result of
changes in market conditions.
Market Value Current market price of a security.
Maturity The date on which payment of a financial obligation is due. The final stated
maturity is the date on which the issuer must retire a bond and pay the face value to the
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Money Market Mutual Fund Mutual funds that invest solely in money market
instruments (short -term debt instruments, such as Treasury bills, commercial paper,
bankers' acceptances, repos and federal funds).
Mutual Fund An investment company that pools money and can invest in a variety of
securities, including fixed income securities and money market instruments. Mutual funds
are regulated by the Investment Company Act of 1940 and must abide by the following
Securities and Exchange Commission (SEC) disclosure guidelines:
1. Report standardized performance calculations.
2. Disseminate timely and accurate information regarding the fund's holdings,
performance, management and general investment policy.
3. Have the fund's investment policies and activities supervised by a board of
trustees, which are independent of the adviser, administrator or other vendor of the
fund.
4. Maintain the daily liquidity of the fund's shares.
5. Value their portfolios on a daily basis.
6. Have all individuals who sells SEC registered products licensed with a self
regulating organization (SRO) such as the National Association of Securities
Dealers (NASD).
7. Have an investment policy governed by a prospectus which is updated and filed by
the SEC annually.
Mutual Fund Statistical Services Companies that track and rate mutual funds, e.g.,
IBC /Donoghue, Lipper Analytical Services, and Morningstar.
National Association of Securities Dealers (NASD) A self regulatory organization
(SRO) of brokers and dealers in the over -the- counter securities business. Its regulatory
mandate includes authority over firms that distribute mutual fund shares as well as other
securities.
Net Asset Value The market value of one share of an investment company, such as a
mutual fund. This figure is calculated by totaling a fund's assets which includes securities,
cash, and any accrued earnings, subtracting this from the fund's liabilities and dividing
this total by the number of shares outstanding. This is calculated once a day based on the
closing price for each security in the fund's portfolio. (See below.) [(Total assets)
(Liabilities)] /(Number of shares outstanding)
No Load Fund A mutual fund which does not levy a sales charge on the purchase of its
shares.
Nominal Yield The stated rate of interest that a bond pays its current owner, based on
par value of the security. It is also known as the "coupon," "coupon rate," or "interest
rate."
Offer An indicated price at which market participants are willing to sell a security or
commodity. Also referred to as the "Ask price."
Par Face value or principal value of a bond, typically $1,000 per bond.
Positive Yield Curve A chart formation that illustrates short -term securities having
lower yields than long -term securities.
Premium The amount by which the price paid for a security exceeds the security's par
value.
Prime Rate A preferred interest rate charged by commercial banks to their most
creditworthy customers. Many interest rates are keyed to this rate.
V/712001
Principal The face value or par value of a debt instrument. Also may refer to the amount
of capital invested in a given security.
Prospectus A legal document that must be provided to any prospective purchaser of a
new securities offering registered with the SEC. This can include information on the
issuer, the issuer's business, the proposed use of proceeds, the experience of the
issuer's management, and certain certified financial statements.
Prudent Person Rule An investment standard outlining the fiduciary responsibilities of
public funds investors relating to investment practices.
Regular Way Delivery Securities settlement that calls for delivery and payment on the
third business day following the trade date (T +3); payment on a T +1 basis is currently
under consideration. Mutual funds are settled on a same day basis; government
securities are settled on the next business day.
Reinvestment Risk The risk that a fixed income investor will be unable to reinvest
income proceeds from a security holding at the same rate of return currently generated by
that holding.
Repurchase Agreement (repo or RP) An agreement of one party to sell securities at a
specified price to a second party and a simultaneous agreement of the first party to
repurchase the securities at a specified price or at a specified later date.
Reverse Repurchase Agreement (Reverse Repo) An agreement of one party to
purchase securities at a specified price from a second party and a simultaneous
agreement by the first party to resell the securities at a specified price to the second party
on demand or at a specified date.
Rule 2a -7 of the Investment Company Act Applies to all money market mutual funds
and mandates such funds to maintain certain standards, including a 13- month maturity
limit and a 90 -day average maturity on investments, to help maintain a constant net asset
value of one dollar ($1.00).
Safekeeping Holding of assets (e.g., securities) by a financial institution.
Serial Bond A bond issue, usually of a municipality, with various maturity dates
scheduled at regular intervals until the entire issue is retired.
Sinking Fund Money accumulated on a regular basis in a separate custodial account
that is used to redeem debt securities or preferred stock issues.
Swap Trading one asset for another.
Term Bond Bonds comprising a large part or all of a particular issue which come due in
a single maturity. The issuer usually agrees to make periodic payments into a sinking
fund for mandatory redemption of term bonds before maturity.
Total Return The sum of all investment income plus changes in the capital value of the
portfolio. For mutual funds, return on an investment is composed of share price
appreciation plus any realized dividends or capital gains. This is calculated by taking the
following components during a certain time period. (Price Appreciation) (Dividends paid)
(Capital gains) Total Return
Treasury Bills Short -term U.S. government non interest bearing debt securities with
maturities of no longer than one year and issued in minimum denominations of $10,000.
Auctions of three- and six -month bills are weekly, while auctions of one -year bills are
monthly. The yields on these bills are monitored closely in the money markets for signs of
interest rate trends.
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r reasury Notes intermeaiate u.a. government aeot securities witn maturities or one to
10 years and issued in denominations ranging from $1,000 to $1 million or more.
Treasury Bonds Long -term U.S. government debt securities with maturities of ten
years or longer and issued in minimum denominations of $1,000. Currently, the longest
outstanding maturity for such securities is 30 years.
Uniform Net Capital Rule SEC Rule 15C3 -1 outlining capital requirements for
broker /dealers.
Volatility A degree of fluctuation in the price and valuation of securities.
"Volatility Risk" Rating A rating system to clearly indicate the level of volatility and
other non credit risks associated with securities and certain bond funds. The ratings for
bond funds range from those that have extremely low sensitivity to changing market
conditions and offer the greatest stability of the returns "aaa" by S "V -1" by Fitch) to
those that are highly sensitive with currently identifiable market volatility risk "ccc by
S &P, "V -10" by Fitch).
Weighted Average Maturity (WAM) The average maturity of all the securities that
comprise a portfolio. According to SEC rule 2a -7, the WAM for SEC registered money
market mutual funds may not exceed 90 days and no one security may have a maturity
that exceeds 397 days.
When Issued (WI) A conditional transaction in which an authorized new security has
not been issued. All "when issued" transactions are settled when the actual security is
issued.
Yield The current rate of return on an investment security generally expressed as a
percentage of the security's current price.
Yield -to -call (YTC) The rate of return an investor earns from a bond assuming the bond
is redeemed (called) prior to its nominal maturity date. Yield Curve A graphic
representation that depicts the relationship at a given point in time between yields and
maturity for bonds that are identical in every way except maturity. A normal yield curve
may be alternatively referred to as a positive yield curve.
Yield -to- maturity The rate of return yielded by a debt security held to maturity when
both interest payments and the investor's potential capital gain or loss are included in the
calculation of return.
Zero coupon Securities Security that is issued at a discount and makes no periodic
interest payments. The rate of return consists of a gradual accretion of the principal of the
security and is payable_at par upon maturity.
I I. __I -La -1
Public Deposit Protection Commission (PDPC)
The Public Deposit Protection Commission (PDPC) is comprised of the State Treasurer,
Governor, and Lieutenant Governor. The PDPC makes and enforces regulations and administers
a program to ensure public funds deposited in banks and thrifts are protected if a financial
institution becomes insolvent.
The PDPC approves which banks and thrifts can hold state and local government deposits and
monitors collateral pledged to secure uninsured public deposits. This secures public treasurers'
deposits when they exceed the amount insured by the FDIC by requiring banks and thrifts to
pledge securities as collateral. It also minimizes participating depositaries' liability for defaulting
institutions. No public funds on deposit in public depositaries have been lost since the Public
Deposit Protection Act was created in 1969.
Under state law, the Commission can request a public depositary to furnish information on its
financial condition, public deposits, and on the exact status of its net worth. The Commission is
empowered to take any action deemed advisable for the protection of public funds and to
establish procedures for collection or settlement of claims arising from the failure of a public
depositary.
Each depositary reports monthly and quarterly to the Commission on the amount of its insured
and uninsured public deposits, the amount of securities pledged, as well as other financial
information. Those depositaries with excess deposits or that do not meet minimum financial
standards set by the Commission must monitor public deposits on a daily basis and maintain
adequate collateral accordingly.
Under the Act, all public treasurers and other custodians of public funds are relieved of the
responsibility of executing tri -party agreements, reviewing pledged securities, and authorizing
additions, withdrawals, and exchanges of collateral. Similarly, financial institutions no longer
need to review the status of each public fund balance and the collateral pledged under numerous
tri -party agreements.
Local Government Investment Pool (LGIP)
Overview
The Local Government Investment Pool (LGIP) is a voluntary investment vehicle operated by
the State Treasurer. Over 450 local governments have participated in the pool since it was started
in 1986 to provide safe, liquid, and competitive investment options for local government
pursuant to RCW 43.250.
The LGIP lets local governments use the State Treasurer's resources to safely invest their funds
while enjoying the economies of scale available from a $5 -8 billion pooled fund investment
portfolio.
LGIP's investment objectives are, in priority order: 1) safety of principal, 2) maintaining
adequate liquidity to meet cash flows, and 3) providing a competitive interest rate relative to
other comparable investment alternatives. LGIP offers 100% liquidity to its participants.
LGIP is comparable to an SEC regulated Rule 2a -7 money market fund. LGIP investment
guidelines are spelled out in the LGIP Investment Policy. For more information on the LGIP
please take a look at our operations manual or please feel free to contact us if you have any
questions.
Local governments that are eligible to join are: cities and towns, counties, special taxing districts,
municipal corporations, community and technical colleges, and four -year universities. The LGIP
was originally created for smaller entities but today LGIP Participants include:
All 39 counties
All cities above a population of 10,000
232 cities and towns
154 special taxing districts
30 community colleges and universities
Today's Yield
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TO:
BACKGROUND
DISCUSSION
City of Tukwila
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance and Safety Committee
Jim Haggerton, Mayor
FROM: Peggy McCarthy, Deputy Finance Director
DATE: May 11, 2010
SUBJECT: Minimum Governmental Fund Balances
ISSUE
At what minimum level should governmental fund balances be maintained to ensure funds are
available to meet the City's annual cash flow needs?
The best practices of the Government Finance Officer Association (GFOA) recommends a
minimum fund balance equivalent to no less than two months, or 16.7 of regular general fund
operating revenues or regular general fund operating expenditures. For the City in 2009, two
months of regular operating revenues totals $7,213,857; two months of regular operating
expenses totals $7,674,314 (these amounts exclude transfers -in and transfers -out).
The City's reserve policy adopted in 2009 sets a target minimum reserve balance of 8% of
annual general fund revenues for the Contingency reserve, 8% of annual general fund revenues
for the Risk Management reserve and 1% of annual general fund revenues for the Revenue
Stabilization reserve or a total of 17% of annual general fund revenues. For 2009, 17% of
general fund revenues, excluding transfers -in, totals $7,358,135.
As of December 31, 2009 and 2008 respectively, the unaudited general fund balance was
$7,389,729 and the audited general fund balance was $7,705,315.
With regard to the government funds included in the CIP Attachment A, (general, capital
improvement, debt service and special revenue), two months, or 16.7 of annual revenue over
the six year period from 2010 through 2015 ranges from a low of $9,080 thousand in 2010 to a
high of $9,607 thousand in 2015. Two months, or 16.7 of annual expenditures over the same
period ranges from $9,207 thousand in 2010 to $10,786 thousand in 2015. See the annotated
CIP Attachment A included with this memorandum for calculations of minimum fund balance
requirements based on projected revenues and projected expenditures for each of the six years
from 2010 through 2015.
Based on the GFOA recommendation and the City's reserve policy, the minimum fund balance
of the general fund and the reserve funds combined should not be less than approximately
$7,300,000 to meet the cash flow needs of the City under regular and contingent circumstances.
A conservative threshold for the combined fund balances of funds included in the CIP
Attachment A could be based on projected expenditures rather than projected revenues as this
INFORMATIONAL MEMO
Page 2
sets a higher minimum fund balance. Under this scenario, the minimum combined fund balance
of the funds included in the CIP should not be less than $9,207 thousand in 2010, $9,395
thousand in 2011, $9,209 thousand in 2012, $9,967 thousand in 2013, $10,457 thousand in
2014 and $10,786 in 2015.
RECOMMENDATION
No recommendation, for Committee information only.
ATTACHMENTS
CIP Attachment A annotated with recommended fund balance calculations based on
16.7% of projected annual revenues and 16.7% of projected annual expenditures.
W:IFIN Projects\Council Agenda ItemsllnfoMemo Min Govt Fund Bals 5 -18 -10 F &S.docx
ATTACHMENT A
CITY OF TUKWILA
TOTAL REVENUES EXPENDITURES
2010 2015 Analysis in 000's
2010 2011 2012 2013 2014 2015 Totals
REVENUES (see A -1)
General Revenues
Sales Tax 15,502 15,967 16,446 16,940 17,448 17,971 100,274
Property Taxes 12,400 12,710 13,028 13,353 13,687 14,029 79,207
Utility Taxes 4,747 4,889 5,036 5,187 5,343 5,503 30,705
New Revenue /Exp Reduction 3,000 3,075 3,152 3,231 3,311 3,394 19,163
Interfund Utility Taxes 2,600 900 900 0 (2,200) (2,200)
Gambling Taxes 2,099 2,162 2,227 2,294 2,362 2,433 13,577
Contract Agreement SCL 1,976 2,035 2,096 2,159 2,224 2,291 12,781
Charges /Fees for Services 5,273 5,431 5,594 5,762 5,935 6,113 34,108
Transfers In Other Funds 2,493 2,568 2,645 2,724 2,806 2,890 16,126
Intergovernmental Revenue 922 950 978 1,007 1,038 1,069 5,964
Other Taxes /Miscellaneous 1,640 1,689 1,740 1,792 1,846 1,901 10,608
Subtotal 52,652 52,376 53,842 54,449 53,800 55,394 322,513
Dedicated Revenues (Capital)
Real Estate Taxes 500 515 530 546 563 580 3,234
Motor Vehicle Taxes 455 469 483 497 512 527 2,943
Investment Interest/Misc. 500 515 530 546 563 580 3,234
Property Taxes 130 130 130 130 130 130 780
Parking Taxes 140 140 140 140 140 140 840
Transfers from Golf Course 0 0 150 150 175 175 650
Subtotal 1,725 1,769 1,963 2,009 2,083 2,132 11,681
TOTAL REVENUE AVAILABLE 54,377 54,145 55,805 56,458 55,883 57,526 334,194
EXPENDITURES 'Recornment4ed x /6 at 7% K16,7% x 1x,713 x 7
!G.?'a $6.7% x $6.7
Film, Actlnare. -1. cf ,n 93 tcl ct,4J8 `r,3. L. ci, r0 `l
Operations Maintenance: 45,376 49,654 51,680 54,220 56,900 59,174 317,004
(See Attachment B)
Howard Hanson Dam Response 2,500 2,500 300 300 300 300 6,200
Debt Service 2,466 2,464 2,460 2,467 2,457 1,974 14,288
Admin /Engineering Overhead 300 309 318 328 338 348 1,941
Subtotal Available 3,735 (782) 1,047 (857) (4,112) (4,270) (5,239)
Capital Attachment C
Residential Streets 0 0 0 0 150 300 450
Bridges 313 145 205 205 270 270 1,408
Arterial Streets 3,435 2,423 1,580 1,355 1,355 1,365 11,513
Parks Trails 662 459 284 390 237 274 2,306
General Government
Facilities 108 (2,177) (2,178) 0 110 140 (3,997)
General Improvements 200 535 500 500 500 500 2,735
Fire Improvements (50) (50) 0 0 0 (55) (155)
Subtotal Capital 4,668 1,335 391 2,450 2,622 2,794 14,260
Balance by Year
Carryover from 2009
(933) (2,117) 656 (3,307) (6,734) (7,064) (19,499)
22,639 0 0 0 0 0 22,639
Accumulated Totals 21,706 19,589 20,245 16,938 10,204 3,140
TOT P E XV E ND rrok.vz s S 13o €4a s s, S`), G 8 =i 6a, (pi 7 (o'
x [(o•7% x 1(q X 1(2,7 a /0 X U,.7% 1 6 I(p;
Recornmervrerl rued 3a.tctnce q,a07 cy.,0, Ra09 q,c) 67 10,4'7 10,"7 0
2010 2015 Financial Planning Model VII 01/09/2010
TO:
City of Tukwila
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance and Safety Committee
FROM: Shawn Hunstock, Finance Director
DATE: April 29, 2010
SUBJECT: Sales Tax Revenue for February 2010
Schedule I
in 1,000's
Sales Receipt 2009 2010 2010 Increase /(Decrease) %Increase /(Decrease)
Month Month Actual Estimated Actual Month YTD Month YTD
Jan Mar 1,172 1,483 1,036 (447) (447) 30.14% 0.00%
Feb Apr 1,051 1,462 1,006 (456) (903) 31.19% 30.66%
Mar May 1,146 1,705 (1,705) (2,608) 100.00% 56.09%
Apr June 1,191 1,578 (1,578) (4,186) 100.00% 67.21%
May July 1,082 1,603 (1,603) (5,789) 100.00% 73.92%
June Aug 1,217 1,812 (1,812) (7,601) 100.00% 78.82%
July Sept 1,473 1,793 (1,793) (9,394) 100.00% 82.14%
Aug Oct 1,118 1,656 (1,656) (11,050) 100.00% 84.40%
Sept Nov 1,110 1,682 (1,682) (12,732) 100.00% 86.18%
Oct Dec 1,032 1,556 (1,556) (14,288) 100.00% 87.50%
Nov Jan11 1,140 1,631 (1,631) (15,919) 100.00% 88.63%
Dec Feb11 1,690 2,270 (2,270) (18,189) 100.00% 89.91%
Totals 14,422 20,231 2,042
Mitigation Received 312
2,354 79.93% of Budget Incl. Mitigation
Jim Haggerton, Mayor
Sales tax collections showed the eighteenth consecutive decrease in February compared to the
same period in the prior year. For February, collections were less than both budget and the
same month in the prior year. Actual receipts for February were $456,000 less than budget, and
$45,000 less than the same period last year. We are down 31.19% for the month compared to
budget, and 4.28% compared to the same month last year. We are now down 31.19% for the
year compared to budget, and 8.14% compared to the same period last year.
The chart above also includes the mitigation payment we received at the end of March, which is
actually for the fourth quarter of 2009 but is included in 2010 revenue because it was received
so far after the end of 2009. Including the mitigation payment, we are currently at 79.93% of
budget for the year to date. The mitigation payment we received on March 31s was
$311,653.10. This the same amount as the last mitigation payment received on December 31
because the payments are now annualized and will only be adjusted once per year in the fall.
Staff are working this week on corrections to the mitigation detail files, requesting removal of
businesses that should not be there, with the due date to DOR being April 30th
INFORMATIONAL MEMO
Page 2
Schedule II shows the year -to -date sales tax from the top ten industry classifications. As this
schedule indicates, the trend is flat or down for most of the classifications.
Schedule II
Group Name
452* General Merchandise Stores
448* Clothing and Accessories
423* Wholesale Trade, Durable Goods
722* Food Services, Drinking Places
443* Electronics and Appliances
441* Motor Vehicle and Parts Dealer
451* Sporting Goods, Hobby, Books
444* Building Material and Garden
453* Miscellaneous Store Retailers
517 Telecommunications
Mitigated NAICS Code
As you can see there are large variances from last year for the same time period. For instance,
sales tax for Motor Vehicle and Parts Dealer is down by 31.66 and Miscellaneous Store
Retailers is down by 24.71%. As you can see from Schedule II, six of the top ten merchant
categories have declined versus prior year, and all but one of the ten industry classification
codes are ones for which we receive streamlined sales tax mitigation.
Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000
collected year -to -date.
Schedule Ill
Group Name
336 Transportation Equipment Man
236 Construction of Buildings
238 Specialty Trade Contractors
561 Administrative and Support Svc
441* Motor Vehicle and Parts Dealer
453* Miscellaneous Store Retailers
424* Wholesale Trade, Nondurable
541 Professional, Scientific, Tech
443* Electronics and Appliances
812 Personal and Laundry Services
Mitigated NAICS Code
YTD
Current
276,800
256,866
220,597
216,276
133,541
94,343
86,241
68,742
68,685
65,295
YTD
Current
11,898
53,855
31,631
14,709
94,343
68,685
14,824
28,950
133,541
12,797
W: \FIN Projects \Sales Tax Information \Sales Tax Files from Shawn12010 \Info Memo Sales Tax 042910.docx
YTD Dollar
Prior Diff. Diff.
284,703 (7,902) -2.78%
258,397 (1,531) -0.59%
224,532 (3,935) -1.75%
198,381 17,895 9.02%
163,546 (30,005) 18.35%
138,051 (43,708) 31.66%
82,445 3,796 4.60%
66,850 1,892 2.83%
91,224 (22,539) 24.71%
61,425 3,871 6.30%
YTD Dollar
Prior Diff.
27,110 (15,212)
122,025 (68,171)
65,261 (33,630)
26,296 (11,588)
138,051 (43,708)
91,224 (22, 539)
19,103 (4,280)
36,694 (7,744)
163,546 (30,005)
15,402 (2,605)
Diff.
-56.11%'
55.87%
51.53%
44.07%
31.66%
-24.71%
22.40%
21.10%
18.35%
16.92%
Attached is a Sales Tax Summary comparing year -to -date 2010 vs. 2009 by major NAICS
codes. Also included is a comparison of total receipts year -to -date for the last five years.
Please let me know if you have any comments or questions. Thank you.
NAICS CONSTRUCTION 09 TOTAL
236 Construction of Buildings 416,992
237 Heavy Civil Construction 98,105
238 Specialty Trade Contractors 347,910
TOTAL CONSTRUCTION 863,006
Overall Construction Change from Previous Year
MANUFACTURING
311 Food Manufacturing
312 Beverage Tobacco Products
313 Textile Mills
314 Textile Product Mills
315 Apparel Manufacturing
316 Leather Allied Products
321* Wood Product Manufacturing
322* Paper Manufacturing
323* Printing Related Support
324 Petroleum Coal Products
325 Chemical Manufacturing
326 Plastic Rubber Products
327* Nonmetallic Mineral Products
331 Primary Metal Manufacturing
332 Fabricated Metal Mfg Products
333 Machinery Manufacturing
334* Computer Electronic Products
335 Electric Equipment, Appliances
336 Transportation Equipment Mfg
337* Fumiture Related Products
339* Miscellaneous Manufacturing
TOTAL MANUFACTURING
TRANSPORTATION &WAREHOUSING
481 Air Transportation
482 Rail Transportation
484 Truck Transportation
485 Transit and Ground Passengers
488 Transportation Support
491 Postal Services
492 Couriers Messengers
493* Warehousing Storage
TOTAL TRANSP WHSING
WHOLESALE TRADE 09 TOTAL
423* Whls Trade Durable Goods 1,339,565
424* Whls Trade Nondurable Goods 105,260
425* Wholesale Electronic Markets 2,208
WHOLESALE TRADE TOTAL 1,447,033
Overall Wholesale Change from Previous Year
I Sales Tax Mitigation NAICS Codes
04/29/2010
09 TOTAL
1,173
3,070
259
12,852
59
7
2,701
20,392
59,298
8,157
6,368
3,928
2,279
534
3,789
5,586
19,797
137
135,430
8,575
10,665
305,059
Overall Manufacturing Change from Previous Year
09 TOTAL
0
924
3,294
11,105
21,879
0
149
1,051
38,401
Overall Transportation Change from Previous Year
YTD
09 YTD 10 YTD Diff
122,025 53,855 -55.9%
5,367 2,242 -58.2%
65,261 31,631 -51.5%
192,654 87,728
($104,926) -54.5%
YTD
09 YTD 10 YTD Diff
411 160 -61.0%
339 -4,389 1393.7%
2 0 -100.0%
1,517 1,775 17.1%
30 0 -98.4%
0 0 #DIV /0!
705 100 -85.8%
3,153 3,313 5.1%
10,833 7,638 -29.5%
945 505 -46.5%
885 881 -0.4%
206 216 5.0%
598 572 -4.3%
0 29 9576.7%
386 1,015 162.8%
1,088 5,817 434.5%
202 746 270.0%
13 38 196.5%
27,110 11,898 -56.1%
1,517 1,591 4.8%
1,769 1,776 0.4%
51,709 33,684
($18,025)
SALES TAX SUMMARY
February 2010 (Received in April)
-34.9% I
YTD
09 YTD 10 YTD Diff
0 0 0.0%
166 39 -76.5%
140 15 -89.3%
1,333 5,184 288.8%
3,603 1,870 -48.1%
0 0 #DIV /0!
21 58 170.5%
148 148 -0.5% I
5,411 7,314
$1,903 35.2%
YTD
09 YTD 10 YTD Diff
224,532 220.597 -1.8% I
19,103 14,824 -22.4% I
248 233 -6.0% 1
243,883 235,654
($8,229) -3.4%
NAICS AUTOMOTIVE 09 TOTAL
I 441" Motor Vehicle Parts Dealer 686,478
I 447* Gasoline Stations 62,584
TOTAL AUTOMOTIVE 749,063
Overall Automotive Change from Previous Year
NAICS RETAIL TRADE 09 TOTAL
442* Furniture Home Furnishings 350,625
443` Electronics Appliances 954,375
444* Building Material Garden 506,177
445* Food Beverage Stores 86,349
446* Health Personal Care 189,603
448* Clothing Accessories 2,015,184
451* Sporting Goods, Hobby, Books 589,522
452* General Merchandise Stores 2,044,042
453* Miscellaneous Store Retailers 506,005
454* Nonstore Retailers 209,564
TOTAL RETAIL TRADE 7,451,446
Overall General Retail Change from Previous Year
51X Information
52X Finance Insurance
53X Real Estate, Rental, Leasing
541 Professional, Scientific, Tech
551 Company Management
56X Admin, Supp, Remed Svcs
611 Educational Services
62X Health Care Social Assistance
71X Arts Entertainment
72X* Accommodation Food Svcs
81X Other Services
92X Public Administration
TOTAL SERVICES
Page 1
SERVICES
09 TOTAL
528,044
53,850
412,907
227,255
985
123,115
47,324
91,637
93,799
1,745,512
183,887
32,268
3,540,583
Overall Services Change from Previous Year
MISCELLANEOUS 09 TOTAL
000 Unknown 397
111 -115 Agriculture, Forestry, Fishing 221
211 -221 Mining Utilities 14,549
999 Unclassifiable Establishments 12,331
MISCELLANEOUS TOTAL 27,499
Overall Miscellaneous Change from Previous Year
09 TOTAL
GRAND TOTALS $14,422,090
Grand Total Change from Previous Year
YTD
09 YTD 10 YTD Diff
138,051 94,343 -31.7%
9,252 9,630 4.1%
147,303 103,973
(643,330) 29.4%
09 YTD 10 YTD Diff
60,029 57,677 -3.9%
163,546 133,541 -18.3%
66,850 68,742 2.8%
14,254 12,684 -11.0%
20,770 26,991 30.0%
258,397 256,866 -0.6%
82,445 86,241 4.6%
284,703 276,800 -2.8%
91,224 68,685 -24.7%
12,751 13,873 8.8%
1,054,969 1,002,101
($52,868) -5.0%
YTD
09YTD 10YTD %Diff
77,359 80,347 3.9%
5,052 7,243 43.4%
51,001 50,787 -0.4%
36,694 28,950 -21.1%
185 28 -85.1%
27,160 15,096 -44.4%
3,166 8,700 174.8%
15,762 8,974 -43.1%
6,401 14,162 121.3%
270,451 280,290 3.6% 1
30,365 27,853 -8.3%
415 3,151 659.4%
524,011 525,580
$1,570 0.3%
YTD
09 YTD 10 YTD Diff
397 0 -99.9%
0 30 #DIV /0
1,232 1,071 -13.1%
1,692 44,333 2520.5%
3,321 45,434
642,113 1268.1%
YTD
09 YTD 10 YTD Diff
$2,223,261 $2,041,468
($181,793) -8.18%
rue Soles lax Rpt 20I002.xhm
2010
2009
L
2008
2007
2006
Five Year Comparison
I
I $2,041,471.
I $2,223,267
$2,02 /,U45
$500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000
$2,6 /3,495
Taxes Collected Year to Date
CITY COUNCIL
City of Tukwila
During the February 22, 2010, Committee of the Whole, the City Council implemented a police /procedure
relating to tracking of Council goals, initiative and /or projects. It was determined that Council will review
the status of such items quarterly at a Committee of the Whole meeting.
At the same meeting, there was consensus to begin review of Council goals at the end of second quarter;
therefore, a majority of the goals below do not include a status update.
BUDGET PROGRAM GOALS:
FIRST QUARTER REPORT TO COUNCIL
January 1 March 31, 2010
Prepared for Finance Safety Committee
Jim Haggerton, Mayor
1. Seek out opportunities for Councilmembers to further their knowledge, experience and awareness of
the different cultures represented within the Tukwila community: Assigned to Community Affairs
Parks Committee for implementation and /or follow -up.
2. Support programs and services that provide a sense of stability. community and unity throuahout
Tukwila's residential neiahborhoods: Assigned to Community Affairs Parks Committee for
implementation and/or follow -up. Councilmembers continue to sponsor a monthly Coffee Chat
in the Tukwila community.
3. Work together in cooperation with nearby cities to address common problems in the Hiahway 99
corridor and Military Road: Assigned to Finance Safety Committee for implementation and/or
follow -up. Council staff is working on scheduling a joint small group meeting between the two
city councils to take place during the second quarter.
4. Provide legislative support and encouraaement to Tukwila residents livina in rental communities
through programs that hold owners and /or property manaaers accountable for providina safe places
to live through the implementation of a rental licensina program: Assigned to Community Affairs
Parks Committee for implementation and /or follow -up. Tukwila Councilmembers actively
opposed SB 6459 during the first quarter. This proposed legislation provides for limitations on
rental housing inspections. Department of Community Development staff continues to move
forward with developing a rental housing licensing program for Tukwila.
5. Approve and implement standard operatina procedures for the Council. Review and update
procedures on a reaular basis: Not currently assigned to a specific committee; monitored by the
Council President and Legislative Analyst. The Council implemented two policies for
incorporation into the standard operating procedure manual during the first quarter (Tracking
of Council Goals and Distribution of Information).
6. Support the implementation of City endorsed programs (i.e. Walk Roll Plan, Fire Master Plan. Parks
Recreation Open Space Plan) throuah policy related decisions not associated with direct oroaram
funding: Assigned to Community Affairs Parks Committee for implementation and /or follow
up.
7. Ensure a commitment to continued human services fundina in relation to the cost of livina through
consistent review of reaional, state and federal budaets affectina human services proarams and
services: Assigned to Community Affairs Parks and Finance Safety Committees for
implementation and /or follow -up. This item will be scheduled for Committee review as budget
reviews deem appropriate.
8. Study the feasibility and implementation of televised City Council meetinas: Assigned to Utilities
Committee for implementation and /or follow -up.
9. Continue to foster relationships within local, reaional and state entities that encourage opportunities
for ioint partnership and outreach: Assigned to Utilities Committee for implementation and /or
follow -up. Councilmembers serve as representatives and alternates on local, regional and
state boards, committees and commissions including but not limited to: SCATBd, SKEDI,
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 2
WRIA 9, AHAB, Suburban Cities Association, Association of Washington Cities, Highline
Forum and Cascade Water Alliance.
10. Formulate an Adopt -a- Neighborhood program that will provide Councilmembers the opportunity to
become more familiar with the changing faces of communities and neighborhoods throuahout the
City: Assigned to Community Affairs Parks Committee for implementation and /or follow -up.
11. Research the viability of sponsorina a City -wide Citizens' Academy: Assigned to Community
Affairs Parks and Finance Safety Committees implementation and /or follow -up.
12. Establish a process to provide updates to Council on issues that are brouaht forward at Council
meetinas during citizen comment opportunities: Assigned to Transportation Committee for
implementation and /or follow -up. During the first quarter, this item was re- assigned to City
Administration for completion. City and Council staff as well as the Council President worked
towards formulating an efficient process to update Council of such items.
MAYOR'S OFFICE
BUDGET PROGRAM GOALS:
1. Continue Mayor's involvement in regional efforts including but not limited to Cascade Water Alliance,
Valley Communications. WRIA 9 Forum. Kina County Flood Control District, Association of
Washington Cities, National Leaaue of Cities and Suburban Cities Association: Participated in
discussions with the Flood control District focusing on budget issues, primarily dealing with
the Howard Hanson Dam response, including reallocation of $8.4 million in their approved
capital budget to make funding available for the levee raising efforts and easement
reimbursement for Wells Fargo and Lily Pointe.
2. Work toward redevelopment of the Tukwila International Boulevard area between the Tukwila Village
site and the Sound Transit Liaht Rail Station: Ongoing.
3. Move forward on a pedestrian friendly development connecting the Sounder Commuter Rail station
and the Tukwila Urban Center: Completion of type, size and location study for pedestrian bridge
is on hold, pending determination of potential funding sources.
4. Move Tukwila Villaae Development forward to construction and completion: Put demolition of
restaurant building on hold due to budget. Held preliminary discussions with catering
business to occupy the space on short term.
5. Continue oversight of Tukwila South development efforts and Southcenter Parkway extension project:
Ongoing.
6. Continue efforts to secure Federal appropriations in support of key projects, including, but not limited
to Strander Boulevard Extension: Participated in meetings in support of the City of Renton for
their Strander Boulevard Extension project. Met with the Boeing Company, Sound Transit and
the Freight Mobility Board.
7. Lead efforts to increase efficiency of City staff and to provide superior services to our citizens.
through technoloav and streamlined processes, in a cost effective manner: Technology efficiencies
recently put in place: cashiering /POS at Finance and City Clerk; credit card acceptance at
Finance, City Clerk, Fire, DCD; Human Resources moved from ABRA to Eden in order to share
data elements; MS Streets and Trips at Tourism to print maps for visitors; consolidation of
many of the major databases onto one server (tukSQL) for ease of maintenance and economy
of scale.
8. Continue efforts to improve communications between the City and City residents, business
community members. and visitors: Talks continue between City Administration and Sound Press
(Reporter Newspapers) to initiate a Tukwila Community Newspaper. Representatives have
been actively contacting Tukwila businesses to gauge potential advertisement revenue.
Sound Press will make the determination to go forward or not based upon the business
response, which has thus far been favorable. The Tukwila School District has expressed their
interest, along with the City, to participate in this potential new communications channel.
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 3
9. Provide leadership and support in addressina concerns and imorovina all aspects of our residential
neighborhoods: Ongoing.
10. Prepare draft Civil Service Desk Manual: Ongoing.
11. Update Civil Service Rules: Ongoing.
Economic Development
1st QUARTER SIGNIFICANT ISSUES:
During the first quarter, economic development staff focused on preparations for potential flooding and its
affect on business by working with other cities, County, and State on a coordinated message to the
federal government for a permanent fix. Coordinated City's request for $1.5 million federal appropriations
for Tukwila's transit center. Helped local property owners with their applications to attract the 500,000
square foot Federal Aviation Administration regional office. On January 15 completed lease on Seattle
Southside's new location.
BUDGET PROGRAM GOALS:
1. Tukwila Villaae: Complete neaotiations with a developer and manaae implementation of contract.
Put demolition of restaurant building on hold due to budget. Held preliminary discussions
with catering business to occupy the space on short term.
2. Build relationships and share the City's vision with every oroperty owner alona Tukwila International
Boulevard. Participated and assisted with Tukwila International Boulevard Action Committee
tour of comparison neighborhoods.
3. Coordinate sale of Newoorter property. Began financial analysis of property sale options.
4. Build relationships and share the City's vision with each oroperty owner in the City's urban core.
Communicated with potential developer of Circuit City site.
5. Improve business attraction marketing collateral and website. Will focus on this at later time.
City Clerk
1st QUARTER SIGNIFICANT ISSUES:
Business Licenses: The first quarter of 2010 involved the business license renewal process, to include
issuance of 1917 business /entertainer licenses. The process also includes follow -up notices to any
businesses that have not complied with Tukwila's licensing requirements.
Records: Review of microfilm for 27 boxes of essential /permanent records for inclusion in the Microfilm
Resource Center. Provide ongoing instruction to staff regarding Records Management Issues, to include
implementation of a new Records Orientation process to educate new and promoted employees
regarding records retention and staff responsibilities for public records requests. This quarter there were
18 public records requests received and processed, many of which were extensive. Digitized records in
the Imaging System are being indexed and intuitively named for efficient retrieval by viewers. There were
88 new contracts /amendments that came through the Clerk's Office for review, logging and execution.
Legislative /Legal: Facilitation of Council Agenda process and production of 2 packets a week, to
include review and finalization of 9 ordinances and resolutions and timely publication of 22 legal notices.
The Clerk's Office handles codification of the Tukwila Municipal Code; this quarter 26 ordinances were
integrated into the TMC.
Central Services: This quarter cost saving measures were implemented toward the City's postage
budget. A new lease for the postage equipment resulted in savings of $1700 per year. Additionally, a
Pre -Sort Xtra process for large first class mailings (such as utility bills) was implemented to save 3 cents
per piece.
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 4
BUDGET PROGRAM GOALS:
1. Enhance the Laserfiche Imaging System to make Council agenda packets and minutes available
through the City website. 2010 Goal. An upgrade to the web version of the Imaging System is
being fine -tuned and BETA tested internally. It is anticipated it will go online to the public in
the second quarter of 2010.
2. Create a library of documents, such as plans, specifications, and codes, to be kept in the City Clerk's
Office and made available to the public. Documents that have been compiled for the library
have been inventoried, indexed into a spreadsheet, and each record has been labeled.
Additions will continue to be made to the library as they are created or become available.
3. Provide Professional Development training for staff. Working toward Master Municipal Clerk
status, the City Clerk attended the Washington State Municipal Clerk's (WMCA) Conference,
serving the organization as Chair of the Bylaws Committee. All staff members were involved
in training /meetings regarding the new Cost Allocation system. Two staff members who work
at the City Records Center received Lifting Training.
4. Review and update reauirements and fees for Business Licenses. 2010 Goal. Business License
fees are being considered as part of the current budget situation.
City Clerk's Office 2010 Statistics
FUNCTIONS
Business Licenses:
General Licenses Issued
Adult Entertainer /Manager processed /issued
Peddlers, Tow Truck, Cabaret, Temporary issued
Amusement Devices
Records Management /Public Records Requests
Records Center Trips
City Files retrieved from Records Center
Human Services
City files returned to Records Center
Contracts amendments reviewed /executed or closed
Documents reviewed and transmitted for Recording
Public Records Requests
Legislative Process /Legal Requirements:
Council /Committee Agenda Packet review /preparation
Ordinances /Resolutions prepared /reviewed /processed
Call for Bids review /coordination /opening
Legal Notices (Bids /Public Hearings /Special Mtgs /etc.)
Central Services:
Passports Applications Accepted
Notary Services
Pet Licenses Issued
1st QUARTER SIGNIFICANT ISSUES:
1 Quarter
1885
32
12
7
13
47
5 boxes>
36
209
23
18
23
9
2
22
122
68
13
Completed and distributed annual report. Common electronic RFP supported by 17 cities for human
services goes online March 22. Solidified amendment with E -gov. Demand for rent /utility assistance
continues to be high -33% increase in requests compared to March 2009. Emergency preparedness
issues focused on recovery, disaster case management, development of Community Organizations
Active in Disaster and long term housing post disaster.
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 5
BUDGET PROGRAM GOALS:
1. Implement. manage and monitor 2010 contracts. Met with 10 providers and reviewed or modified
contracts. Attended trainings for new online proposal process —17 cities participating.
Conducted tour at Community Schools Collaboration program.
2. Implement. manage and monitor Minor Home Repair Proaram with cities of SeaTac and Des Moines,
and Covington. Procured new contractors for program, made eight home visits. Marketed the
program. Received training on new lead regulations. Application for 2011 started.
3. Participate in implementation of South Kina County Response to Homelessness. Provided
feedback on update to plan.
4. Outreach to diverse Tukwila residents to identify needs and match with resources. Hosted meeting
focused on providers serving refugee populations. Met with CSC cultural outreach staff.
Attended IRC celebration. Participate on regional refugee forum.
5. Serve as City liaison for CDBG and Home oroiects. Started pre application process for Minor
Home Repair application 2011. Met to review priorities /policies.
6. Provide same day information and referral response. Responded to 141 calls and provided 11
hours of short term case management. Second largest month of service in 12 years of data
collection. Increase in calls by 33% from March 2009 and increase in case management hours
25% over 2009. Coordinated referrals from Tukwila school district and internal sources.
7. Coordinate with other departments to streamline access to human service resources. Coordinated
with Planning around disaster recovery issues. Joined regional disaster case management
workgroup. Attended regional SoundShake meeting. Responded to requests for service from
Fire.
8. Coordinate with community based oraanizations to more effectively serve Tukwila residents. Held
provider meeting, Conducted two Advisory Board meetings, DV task force meetings,
Supported Masters Public Health Students related to messaging with low literacy populations.
Screened applicants for Global Health Initiative project. Provided Tukwila tour to Cascade
Land Conservancy staff. Participate in South King County Council of Human Services.
Technical assistance workshop held for non profits applying for city funds.
Equity Diversity Commission
BUDGET PROGRAM GOALS:
1. Link agencies and residents to cultural resources in the community. On March 31, Commission
members attended the Regional Civil and Human Rights Commissions meeting sponsored by
the King County Civil Rights Commission. It is hopeful these meetings will result in future
activities that may lead to a joint cultural awareness event.
2. Support Foster Hiah School's Multicultural Action Committee with their cultural programs and trainina.
No requests for assistance were submitted by MAC during the first quarter.
Hotel /Motel Tax
BUDGET PROGRAM GOALS:
1. Work with City departments. business community and residents to execute a successful Rock "n" Roll
Marathon 2010 -2011 A proposed revised Marathon route is currently under discussion
between the Police Dept. and the Competitors Group that may possibly result in the start line
being located further south on Interurban Ave. and possibly within walking distance from the
largest grouping of hotels in Tukwila on West Valley Hwy. Two Tukwila hotels have signed up
to be official host hotels which should help to increase the number of room nights in Tukwila.
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 6
2. Continue efforts to market Seattle Southside as a premier travel destination: Ongoing as planned in
the 2009 2010 major marketing initiatives. Brand rejuvenation completed, new website and
Vacation Planner underway. The Visitor Center has successfully moved into its new location at
3100 South 176 in SeaTac. Directional signage and exterior building signage are underway.
3. Support positive relationships between the travel and tourism industry. business community and city
government: Ongoing: Seattle Southside's Annual Report to the Community tourism
networking meeting was held in February. Kertzman continues to serve as Co -Chair of the
Governor's Tourism Commission and recently elected to the Seattle Sports Commission
Executive Committee and has joined the Prosperity Partnership Tourism Cluster committee.
Meilee Anderson continues to serve on the Puget Sound Attractions Council, Highline
Community College and South Seattle Community College hospitality program's curriculum
advisory boards, Washington State Emergency Preparedness Taskforce and is a member of
Professional Convention Management Association. Ashley Comar participates in Puget Sound
Chapter of Public Relations Society of America. Kristina Thorne participates in Tukwila's AST
meetings and Washington Visitor Information Centers Association.
4. Continue implementing program performance reporting based on guidelines provided by Destination
Marketing Association International: Coordinated data collection ongoing, new procedures in
place, tracking and reporting ongoing.
Sister City Committee
1st QUARTER SIGNIFICANT ISSUES:
Committee efforts were largely focused on delegation development and coordination for first official
Tukwila delegation to travel to Miyoshi in March /April 2010. A group of 11 students and nine adults
departed for Tokyo on 3/24 and toured that area and Kyoto /Hiroshima prior to a five -day homestay in
Miyoshi until 4/3. Through the fundraising efforts over the past several years, the Sister Cities Committee
was able to provide $500 to each student to assist with their travel expenses.
BUDGET PROGRAM GOALS:
1. Continue to raise funds for Soring 2010 visit: Completed.
2. Recruit student /adult delegation and plan 2010 visit: Completed.
HUMAN RESOURCES DEPARTMENT
1st QUARTER SIGNIFICANT ISSUES:
Completed Human Resources department Flood Response plan; established 2010 Safety Training
schedule for Public Works Department staff; completed Citywide NIMS Certification tracking.
Participation in AWC Workers Compensation Retro Program generated a performance -based refund to
the City of over $11,000. This occurs when our workers compensation claims costs are less than the
premiums we pay to the Department of Labor Industries. It is also attributed to our internal safety
program, and our HR departments' effort to manage claims and get employees back to work as soon as
possible.
BUDGET PROGRAM GOALS:
1. Negotiate and settle Fire labor agreement. Settled.
2. Negotiate and settle Police Non Commissioned labor aoreement. Settled.
3. Negotiate and settle Teamsters' Administrative /Technical; Professional /Suoervisorv; and
Maintenance/Trades labor agreements. Settled.
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 7
4. EDEN HR Inforum module conversion and connectivity with EDEN Financial module. Completed.
5. Non Represented wage study for 1/1/2010. Completed.
6. Update Health Insurance Portability and Accountability Act (HIPAA' policies and procedures,
establish committee, and conduct training. Policy review and updates have been completed.
Training schedule to be developed and conducted 2010 -2011.
7. Update and distribute Personnel Policies and Procedures for review. In process.
8. Develop and carry out wellness program to achieve AWC annual Wellness Award for both years.
Completed.
9. Research vendors and implement program for Health Risk Appraisal program. Deferred to 2011.
10. Negotiate Police Guild labor aareement startina in fall 2010. Negotiate and Settle contract by
December 31, 2010.
11. Create and present employee education sessions on City's Self- Funded Medical /Dental plans.
Deferred to 2011.
1st QUARTER SUMMARY OF ACTIVITIES:
Labor issues, including general discussions, research, records request, performance, discipline; recruiting
and coordinating various aspects of hiring in various departments due to resignation, and Ongoing
temporary positions (number of applicants for positions has increased due to the economy); preparing,
tracking and coordinating all personnel actions for accuracy and compliance;; coaching managers and
supervisors to increase their understanding of HR legal requirements, processes and procedures;
discussions and assistance to Payroll to assure coordination of information between Personnel and
Finance; coordination of safety training to meet federal and state requirements.
January February March
Regular Employee Applications Processed 133 182 0
Regular Employee Applicants Interviewed 12 7 0
Extra Labor New Hires 3 3 2
Extra Labor Rehires 2 1 3
CDL Random Drug and Alcohol Tests
Administered 1 0 1
Workers' Compensation Injury Reports 4 5 2
FMLA Leave Requests 6 4 7
CITY ATTORNEY
1st QUARTER SIGNIFICANT ISSUES:
This quarter our office has been working with code enforcement staff to develop a rental licensing
program. We continue to develop contract procedures and anticipate city -wide training in the near future.
Regionally, we continue to on flood control issues and the siting of diversion services in our community.
BUDGET PROGRAM GOALS:
1. Provide city -wide training in coniunction with Administrative Services related to personnel issues:
Ongoing.
2. Work with City staff on Tukwila Village Proiect: Ongoing.
3. Continue to update and revise standardized contracts and other form documents: Ongoing.
4. Continue to work with City staff on reaional issues and regional proiects or proposals impacting the
City: Ongoing.
5. Assist staff in developing an LID program: Ongoing.
6. Work with City staff on code enforcement issues and on strenathenina provisions of the Tukwila
Municipal Code to allow for more effective code enforcement: Ongoing.
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 8
7. Work with the Department of Community Development on Comprehensive Plan updates and shoreline
management issues: Ongoing.
8. Work with City staff to develop streamlined procedures for administrative hearings and non -tort
litigation: Ongoing.
9. Work with City staff to revise the City's sian code: Ongoing.
10. Develop operatina procedures for litigation process: Ongoing.
11. Maintain efforts to keep prosecution costs down; particularly in light of chances in the King County
Prosecutor's Office: Ongoing.
MUNICIPAL COURT
1st QUARTER SIGNIFICANT ISSUES:
This quarter we spent a great deal of time working on meeting City administration budget goals. We've
consolidated a couple calendars which will create busier dockets but also cut 4 to 8 hours of actual court
time. This change will reduce the number of actual judicial hours. We also focused on expanding our
ability to keep the public, defendants, attorneys, and jurors informed of court business. We are working
with IT to improve our court web page, and we established Twitter and Facebook accounts.
BUDGET PROGRAM GOALS:
1. Continue to focus on Court's Succession Plan to include National. State and Local trainina
opportunities. Ongoing. Court Administrator Trish Kinlow recently presented a course on
succession planning to the Misdemeanant Corrections Association. We recently enrolled
leadership team members in Eden training.
2. Restructure Court schedule to allow for specialized calendars (Diversion. Interpreter, etc.).
Ongoing. Our new Thursday court schedule begins May 1. This new calendar will reduce
the number of hours we are in actual session 4 8 hours per week.
3. Continue to retool and expand Jail Alternative Program. Ongoing. Continuing to work with Des
Moines and SeaTac in contracting these and other probation services.
4. Participate in pendina Union contract issues as they relate to court specific needs. Done.
5. Explore increased use of technoloav to enhance court services. Ongoing. Still working with
Black Diamond Municipal Court to implement text message court date reminders to
defendants. In the process of placing most court forms on -line in order to enhance client's
ability to prepare prior to court appearance. Working with IT to improve court webpage.
Court Twitter and Facebook pages are up and running.
6. Expand participation in county -wide trial court coordination efforts. Ongoing. Meeting this
month to expand use of South King County warrant project. This will reduce the need for
officers to arrest defendants in court for warrants. Agreements with other courts will allow
judges to recall warrants issued by participating courts.
7. Continue joint meetinas with Police Department, Prosecutor and Public Defender to enhance
communications and improve court services. Ongoing. We are experiencing the need for
additional conflict public defenders and are working with the City Attorney to add these
attorneys as quickly as possible. Also, working with Tukwila Police to increase contacts
with Somali community leaders.
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 9
FINANCE DEPARTMENT
1st QUARTER SIGNIFICANT ISSUES:
The Finance Department spent a great deal of time during the first quarter working on budget issues as
they relate to decreases in revenue. Preparations were extensive for the Council retreat, and significant
materials and background information was prepared for committee meetings prior to the retreat.
The first quarter is also the time of year that staff spends considerable time on year -end issues and
preparing for the arrival of the State Auditor's Office. It is anticipated that representatives from SAO will be
in Tukwila in early May, and draft financial statements will need to be prepared prior to their arrival.
Significant adjustments are typically made each year as part of the year -end closing process during the
first quarter of the subsequent year. Staff is working diligently on those entries and began drafting
significant portions of the draft financial statements.
Another significant project during the first quarter was staff involvement in regional planning with King
County in preparation for a new animal services contract with the County. Staff has been meeting weekly
with the County, as well as separate meetings each week with south King County cities, to develop
options for animal services in Tukwila and the surrounding community. These options will be presented to
Council during April for decision making purposes.
BUDGET PROGRAM GOALS:
1. Complete Comprehensive Annual Financial Report (CAFR) by May 31. 2009: The 2008 CAFR is
complete. The City received another clean audit with no findings or exit comments.
2. Continue Budget Manual development: No update to report.
3. Continue development of Risk Management policies and procedures: Policy and procedure
development has begun. A significant amount of work remains. The goal will be to have
procedures documented and approved by the end of 2010.
4. Implement cash receipting system at all cash locations citywide: Completed for Finance and
Clerk's Office in 2009. Online utility payments went live in August 2009, as well as credit card
acceptance at Fire Station No. 51.
5. Assist other departments with fiscal issues related to software implementations including an HR
module for Administrative Services and permitting system for DCD: The HR module was
implemented in July 2009. The permitting system is on hold indefinitely for budgetary
reasons.
6. Investigate additional payment options for citizens and implement where feasible: Completed
implementation of online utility payments in August 2009.
FIRE DEPARTMENT
1 QUARTER SIGNIFICANT ISSUES:
The first quarter of 2010 began with a wrap -up of the formal flood planning activities. The CEMP and new
ordinance were sent to all department heads for review and comment. We continued to take delivery of
flood planning related supplies and materials including the two rescue boats. The haz -mat and rescue
teams participated in department and zone drills. Training delivered a comprehensive hydraulics class
and is working on the upcoming pump academy. Fire prevention was busy dealing with several large
projects including Aviation High School, Bow Lake Transfer Station and the Museum of Flight extension.
They also worked on the ordinances to adopt the 2009 International Codes which includes a retroactive
requirement for fire alarm systems in certain occupancies; fire prevention has contacted those affected by
this code issue but have only received two calls from owners and a dozen thanking them for the
advanced warning. Fire prevention staff also assisted with the GIS project associated with the new CAD
system scheduled for Valley Corn. They investigated several fires including two possible arson fires. We
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 10
have been working to make sure that all fire department staff are aware of the economic situation the city
is in and have been watching our costs closely.
BUDGET PROGRAM GOALS:
Administration
1. Conduct annual manaaement trainina: Will consider 3` or 4 Quarter depending on budget.
2. Review and update department policies and procedures as needed: Ongoing.
3. Coordinate National Incident Manaaement System trainina for City personnel as needed: Several
city personnel tentative for August class.
4. Add. update or replace department computers as needed: Coordinate with IT.
5. Apply for applicable (rants: Will apply as they become available.
6. Update six -year plan: 3 or 4 th Quarter
7. Coordinate development of specifications for replacement aid car: Will coordinate with Fleet.
Suppression
1. Test all fire hoses, apparatus pumps and ladders to meet manufacturer's specifications; Complete.
2. Complete all assianed company level inspections: Ongoing.
3. Participate in public relations and education events: Reduction in participation due to budget
concerns.
4. Participate in scheduled trainina: department, zone. regional, national: Ongoing.
5. Consolidate department inventory into new proarammina: Ongoing.
Fire Prevention Investigation
1. Establish quarterly fire code trainina for suppression crews: Ongoing.
2. Continue oroaram to obtain Fire Marshal commissions for fire investigators through police academy
trainina: On hold.
3. Research and prepare report for additional Fire Marshal office space: Done.
4. Pursue full time fire investiaator's position within fire investigation task force: On hold
5. Continue to convert fire protection plans to compact disc storaae media: On hold.
6. Continue to maintain timely plan review and inspections for our customers: Ongoing.
First Quarter Yearly Totals
Plan Review Fees Collected: 6,896.00 6,896.00
Special Permit Fees Collected: $13,700.00 $13,700.00
Reinspection Fees 1,760.00 1,760.00
TI Reinspection Fees 2,590.00 2,590.00
First Quarter Yearly Totals
Initial Inspections: 184 184
Reinspections: 107 107
Night Life Safety Inspection: 33 33
Training
1. Coordinate department officers' attendance at the National Fire Academy in Emmitsbura. Maryland:
Not started.
2. Incorporate reaular visits to shift drills by a Training Division officer: Ongoing.
3. Oversee trainina of any new hires: Completed. Their anniversary dates are May 4
4. Update reference material libraries in all stations: Delayed due to budget.
2010 First Quarter Report
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Page 11
5. Review all records to ensure the department is National Incident Management System (NIMS)
compliant: Completed this quarter.
6. Review our new hire training program: In process.
7. Implement a career path program for firefighter and officer development: Not started.
8. Utilize proposed new training position to fulfill Fire Master Plan recommendations: Position not
approved.
9. Continue department pre -fire tour program: Ongoing.
Facilities
1. Work with City staff to develop plan to implement recommendations of seismic study and master plan
recommendations: No funding.
2. Remodel Station 52 kitchen: 303 fund dependent.
3. Install new biohazard storaae shed at Station 52: Not funded.
4. Paint interior of Station 52 and Station 53. and the interior and exterior of Station 51: 303 fund
dependent.
5. Paint apparatus bay at Station 54: 303 fund dependent.
6. Replace curbing at Station 51: 303 fund dependent.
7. Begin process of identifvina sites for future fire station replacement/relocation: Ongoing.
Hazardous Materials Team
1. Provide operation and technician level trainina to meet the current National Fire Protection Aaencv
(NFPA) 472 standard: Ongoing.
2. Send 2 technicians to out -of- state. federally funded. HazMat trainina: As available.
3. Develop standard operating procedures for a response to a larae Mass Decon Incident and
participate in a large -scale exercise: Ongoing.
4. Develop standard operating procedures for the use of the powered air purifier respirators (PAPRs)
and provide all operation level personnel with appropriate training: Ongoing.
5. Perform a complete inventory of all HazMat eauipment and supplies: Ongoing.
6. Bring minimum staffina to four (4) technicians per shift: Delayed due to budget.
Rescue Team
1. Schedule a 40 hour Rope Rescue Technician class for the entire team: On hold due to budget
constraints.
2. Reconfigure the storage compartments on Rescue -51. Remove SABA system and place on the air
trailer: Complete.
3. Send four (4) team members to Swift Water 1 class: Complete
4. Send two (2) team members to a Confined Space class: As permitted by class availability and
budget.
5. Develop new inventory sheets and evaluate rescue harnesses: Ongoing.
6. Reorganize the interior of the small trench trailer: On hold due to budget.
7. Order accessories for the team's new GPS units and develoo a trainina curriculum: Ongoing.
8. Update the Zone 3 Rope Rescue Manual: Ongoing.
9. Design and order new personal baas to be used on raopellina harnesses: Complete.
10. Develop an annual Competency Verification Checklist for rope technicians: Ongoing.
11. Continue Special Operations Teams ioint trainina between Tukwila and Renton: As schedules
permit.
12. Continue Zone 3 trainina: Participated in 4 qtr confined space rescue.
13. Provide continuina education to all suppression members in the field of specialized rescue: As
budget and class availability permits.
14. Place the 540 Belay System into suppression service: Complete.
15. Provide four (4) days of Trench Rescue training for the Zone 3 personnel in 2009. and in 2010:
Complete 2009. Rescheduled for 2010 3 Quarter
16. Provide two (21 days of collapse /shorina training for the team: Postponed due to budget concerns.
17. Inventory all suppression life vests and replace as needed: Complete.
18. Purchase and replace rope hardware /software as needed: Ongoing.
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 12
19. Set up training days with King County Sheriff's Marine Unit: As budget and class availability
permits.
20. Provide technical training to all team members for Crane Operations and Riaaina: Postponed due to
budget concerns. (Indefinite)
21. Prioritize training and equipment needs: Ongoing.
22. Pursue the placement and construction of at least one boat ramp into the Green River within the City
of Tukwila: Possibility of moorage at Delta Marine.
Ambulance, Rescue Emergency Medical Aid
1. Outfit two new Mass Casualty Incident trailers: 90% complete.
2. Provide one department member to participate on Zone 3 EMS committee: Ongoing.
3. Evaluate status of department Pandemic Flu supplies: Ongoing.
4. Establish a battery replacement program for all EMS equipment: Ongoing.
5. Provide assistance and guidance to City for establishing a new Public Access Defibrillator (PAD)
program and assist with trainina on PAD devices: Complete.
6. Complete all 2009 -2010 competency -based training objectives: Ongoing.
7. Provide 2009 -2010 competency -based instructor training for department instructors: Ongoing.
8. Provide First Aid /CPR and public access defibrillation training to the public and City employees:
Quarterly training provided. 4`" qtr complete.
9. Provide Ongoing advanced auto extrication training for department personnel: Ongoing. 1 qtr
complete.
10. Provide advanced mass casualty training for department: Ongoing.
11. Provide logistical support and Ongoing training to enable the department to participate in the Rescue
Outcomes Consortium (ROC) study: Ongoing.
12. Sponsor department Explorers to King County EMT course: As requested.
13. Repair. clean. test, and calibrate specific aid equipment: Ongoing.
14. Participate in new technology evaluations offered by King County Medical Program Director:
Ongoing.
15. Recruit at the minimum, one CBT instructor per station, per shift: Ongoing.
2009 2010
Increase /Decrease
1 Qtr FIRE I 352 I 261 I -25%
1 Qtr AID I 891 I 779 I -9%
I Year to Date FIRE I 352 I 261 I -25%
I Year to Date AID I 891 I 779 I -9%
DEPARTMENT OF INFORMATION TECHNOLOGY
1st QUARTER SIGNIFICANT ISSUES:
FIRE DEPARTMENT INCIDENT RESPONSE
EMERGENCY RESPONSE STATISTICS
Security and Infrastructure continue to be our main focus in IT for this first quarter of operation. A
constant and diligent effort is required to stay abreast of emerging security threats, so we have
implemented several new and upgraded security devices and processes and will continue to monitor their
effectiveness.
Many departments are looking at ways to increase efficiencies, and technology is used many times to
achieve those efficiencies. Departments have requested databases to track specialized information along
with management reports to analyze data. Processes have been streamlined, sometimes even between
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 13
departments, to reduce data entry and printed output. Programs and hardware have been upgraded to
modernize processes with added features and capabilities to allow better use of staff time. IT will
continue to work with all departments to implement ideas and cost saving measures as ideas come
forward during the budget discussions.
NETWORK/TECHNICAL
ESET We pushed out the latest version of ESET security program to all clients, which will provide
additional ability to detect the newest types of viruses, rootkits, and other malware.
Proxy Deployed Barracuda Web Proxy, which has added security and ease of administration for
Web Browsing.
IGN We were able to move all connectivity services (PD, Court, City Network) off of the out -dated
IGN connection. This enables us to remove the older connection with associated costs and use
the much faster I -NET connection for these services.
VPN Connections Set up VPN (Virtual Private Network) connections for a select group of users,
allowing them a secure connection to our network from remote locations. This enabled users to
securely work offsite as alternative to coming to their office.
Wi -Fi Deployed access points for PD Coban in -car video system data uploads and PW TIB
Projects.
PolyCom Updated Court PolyCom video conferencing system for Court
Tourism Installed computers and new laptops after office move; upgraded office software.
DATABASE MANAGEMENT
Fire Dept. Upgraded FireRMS MyFireRules to the latest version, moved to TukSQL, upgraded to
SQL2005
TukSQL The consolidation onto the TukSQL server was accomplished in conjunction with the
move of user accounts from the FD Server to the Tukwila domain. The upgrade is beneficial to
FD due to the new tools and updates available in the release. The consolidation makes it easier
to manage both the databases and user accounts, and facilitates better data sharing within the
city.
Finance Dept. Upgraded Eden Financials database as required by the vendor to stay on
supported maintenance; installed 52+ client upgrades. This release offered the ability to configure
the One -Click deployment allowing us to update clients without having to physically go to each
machine. The One -Click deployment will save us time and stream -line the upgrade process,
making it easier to roll out new releases, hotfixes, and patches.
Police Dept. Crime Free Database upgraded to the latest version allowing PD to take advantages
of the newest release features
Human Resources /Mayor's Office Skillcheck: Upgraded to network version of Skillcheck. It has
been 8 years since the last upgrade, so the newer product should have many new features.
MyStateUSA Contact database created from meeting sign -up sheets and the e-list online. These
contacts were uploaded to MyStateUSA which should enable us to send out alerts to members of
the list in the event of an emergency. This will be tested Q2.
Laserfiche Weblink8 Close to publishing for public access.
Reports Customized reports for multiple departments to facilitate reporting needs
Other Create Logistics database for PD and consolidate Word docs into database to facilitate
query and reporting capabilities.
COMMUNICATIONS
eRec Newsletters Coded and sent out newsletter in January and March to 1,800 citizens.
Website The coding for RSS newsfeeds was updated to save duplication of effort, allowing any
page on our website listing the duplicated RSS information to update at the same time as the
RSS feed on the City's Website. Two Online Permit Center Surveys were created and a
SendStudio mailing list was set up to mail the surveys out to receive feedback about the
permitting process. The navigation system for the City Maps section was recoded after changes
were requested from the first draft. The City maps section is now finished and awaiting approval
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 14
from DCD. The new Police Department Intranet was rolled out and is now in use for police
scheduling. More content is expected to be added soon with help from PD. New web pages were
created for Cascade Water Alliance, US Census information, AHAB siren information, and Draft
Hazard Mitigation Plan.
Backyard Wildlife Festival Website redesigned with a new banner and layout for the 10
anniversary of the festival.
Publications provided extended training, advice and review of draft TMC titles to Clerk's office for
producing their first published codification.
Developed handout letter about 2010 census for Tukwila citizens, to be distributed through utility
bills, website, and Human Services office.
Design work on recruitment brochure for new Parks and Recreation Director; new Council Agenda
Item Routing Form and Social Networking Request Form; cover for the 2010 -2015 Financial
Planning Model and CIP; created structure for formatting City's emergency messages.
1 Quarter Statistics:
Website 47,251 visitors (of which 30,741 are unique) viewing 125,394 pages. Besides the Main home
page, the most popular pages were employment (12,329), staff phone directory (7,137) and department
listing page (3,772).
Publications and Newsletters February edition of the Hazelnut (8 pages) and the Spring /Summer edition
of the Parks and Recreation Department brochure (44 pages).
TV21 163 informational slides posted.
Videos olaved: 1,340 programmed times (Tukwila Flood Meeting, King County Flood Meeting, Mayor's
Flood Message, Rep. Zack Hudgins)
SPAM Statistics:
Total Emails Received
Blocked: Spam
Blocked: Virus
Blocked: Bad Recipient
Blocked: Mail Bomb
Other (allowed, quarantined)
Average spam per day
Highest amount of spam (24 hrs)
Highest percentage of spam (24 hrs)
Percentage of spam (month)
Total amount of spam messages
Documented
By Category
Barracuda
Database
GroupWise
Hardware
Maintenance
Network
Phones
Printers
Publications
Software
Web Development
Total
JANUARY
767,874
722,935
159
4,636
1,966
38,178
23,539
29,993
99%
95%
729,696
FEBRUARY
633,974
591,666
242
4,108
1,315
36,643
21,333
27,022
99%
94%
597,331
Help Desk Tickets (approx. 45% of total assistance requests):
3 1.33%
18 8.00%
7 3.11%
57 25.33%
2 0.89%
24 10.67%
2 0.89%
27 12.00%
0 0.00%
85 37.78%
0 0.00%
225 100.00%
By Department
Council
Court
DCD
FD
FIN
HR
IT
MO
PD
PR
PW
Total
1 0.44%
3 1.33%
42 18.67%
8 3.56%
24 10.67%
12 5.33%
15 6.67%
31 13.78%
38 16.89%
20 I 8.89%
31 I 13.78%
225 1 100.00%
MARCH
633,809
575,922
585
11,451
1,445
44,406
19,013
25,879
99%
93%
589,403
By Source
E -mail 89 39.56%
Phone 81 36.00%
Self- Generated 50 22.22%
Walk -In 5 2.22%
225
100.00%
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 15
IT BUDGET PROGRAM GOALS:
1. Develop Strategic Plan for IT Department to address City -wide technoloav needs: 2010
2. Research and implement an advanced. multi- tiered system for network security. tracking and
monitoring. Ongoing. Final security component in the planning stage.
3. Fully implement City -wide Active Directory. reDlacina network services and servers as reauired. and
buildina in connectivity redundancy for quality of service. Active Directory Completed. Connectivity
redundancy planning Q2 of 2010.
4. Establish an IT Technical Knowledaebase with procedures and trouble shootina tips for added
efficiency with HelpDesk services. Ongoing.
5. SQL Server consolidation: review collection of data across departments. and implement methods to
reduce data redundancy and duplication of effort for more effective use of City resources. Ongoing.
95% complete. 3 more databases to move: Permits Plus (DCD, currently in test mode), PMDB
(PW) and Scan Asset (FD).
6. Create documentation to include disaster plan recovery information and emeraencv operation
procedures. Ongoing. Established COOP pursuant to FRP requirements.
7. Implement Payment Card Industry (PCI) data security standards researched in 2008, to include
information sharing and key employee education for compliance on current debit /credit points of sale;
research and plan for city -wide point -of -sale system to accept secure debit /credit cards transactions
in all departments. Ongoing. Focus on upgrades that deal with PCI compliance in 2010 (Class).
8. Work with Valley Communications to coordinate CAD and communications uoarades for Public
Safety. Ongoing. Meetings still continuing with expected implementation of connectivity
changes by the middle of 2010. Obtained quote for Netmotion licenses for FD and PD vehicles
and will purchase for in -house communications hosting Q2.
9. Develop formal Imaae Library (to include both production and indexing of photos and videos) to
document City events and to make available for unified communications and oublications. Ongoing.
Selected an album organization and archive application and uploaded images.
POLICE DEPARTMENT
1st QUARTER SIGNIFICANT ISSUES:
Police Department highlights during the first quarter included hiring our first COP officer, school safety
surveys, investigative and patrol emphases, and emergency preparedness. In February we hired our first
grant funded Community Oriented Police Officer. That officer is in the academy. Once he completes his
training and comes into our patrol staff, we will fill the actual position through a competitive selection
process. We completed several safety surveys at our schools and a safety review of Foster and
Showalter with assistance from Pennsylvania State University and National Institute of Justice staff.
During a significant portion of the first quarter we reallocated and focused resources on addressing an
unprecedented spike in residential burglaries that we experience in the fourth quarter of 2009. As a
result, multiple arrests were made and burglaries have dropped to a normal range. We also identified
and purchased emergency response equipment required to respond to flooding and general operations
along the Green and Duwamish River in Tukwila, to include a Patrol /Rescue Vessel.
BUDGET PROGRAM GOALS:
Administration
1. Continue to assess current and future department staffina and facility needs that support delivery of
law enforcement excellence to the community: Ongoing
2. Recognize excellent performance: Several staff members were recognized for their 20 year
service awards. We also recognized several officers and presented several certificates of
commendation and meritorious awards during the city council meeting. Employees of the
quarter awards are ongoing.
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 16
3. Resolve community problems throuah partnerships and problem solving: Spearheaded several
meetings with Somali Business leaders in a continued partnership to identify and solve
potential problems. Participated in quarterly School Board Security meetings to identify and
problem -solve problems within our schools.
4. Work with and strenathen reaional partnerships: Regional Green River Flood Planning
involvement continued throughout the flood season. Regional Valley Commander Meetings
are Ongoing to enhance regional coordination and cooperation among the Valley Agencies,
Valley Communications and King County Sheriffs Office. Participated in a regional
CBRNE /Security training exercise involving SPD, KCSO, Tukwila PD, Westfield Southcenter,
US Army North, Washington Army National Guard 10 CST (WMD) and King Co EOM to
enhance interoperability and coordination efforts in responding to disasters.
Patrol
1. Enhance police visibility in our neighborhoods: Conducted DUI and Traffic Emphasis along
Tukwila International Blvd in an effort to address speeding and other traffic problems within
that high traffic area.
2. Review our Field Trainina Proaram for new Officers: Mentored and trained four new hires during
this quarter. Significantly improved the daily evaluation and feedback process to enhance
student officer learning. Established and closely monitored probationary officer progress
during this quarter. Close coordination between the FTO Supervisor and Command staff has
ensured the sustainment of the highest standard for our FTO program.
3. Inspect and enhance. where needed equipment for field operation: Conducted an annual
inspection of Defibrillators assigned to our front -line vehicles in preparation for patrol
response to CPR in progress call -outs. Identified and purchased emergency response
equipment required to respond to flooding and general operations along the Green and
Duwamish River in Tukwila. (PFDs, Survival Suits, Patrol /Rescue Vessel etc.)
Records /Evidence
1. Plan and prepare for the relocation of department evidence to a new storaae facility: Ongoing
2. Destroy all records maintained by the Records Division that exceed or meet minimum general
retention schedule requirements: Completed 3/19/10
3. Prepare firearms and narcotics held in evidence for destruction: Firearms ongoing
4. Prepare and submit items of evidence for auction, as aopropriate: Ongoing
Investigations (Major Crimes)
1. Review and assess eauipment needs for major field investiaations: Review was completed in 2009
and resulted in purchasing lighting equipment. Ongoing assessment during 2010.
2. Evaluate and adjust investigative priorities: Focused on residential burglaries and some of the
opened homicides from 2008.
3. Conduct auarterlv reviews in order to assess effectiveness and direction of the Unit: Completed for
1 quarter
Special Operations /Crime Prevention /Training /Traffic
1. Conduct auarterlv reviews in order to assess effectiveness and direction of the Unit: Completed for
1 quarter
2. Maintain crime prevention oroarams that facilitate our partnerships with the community: Ongoing
with some reductions given budget constraints and staffing, for example the Citizens'
Academy was postponed for 2010.
3. Reduce the impact of crimes related to druas, vice and gangs throuah proactive
enforcement:Ongoing, conducted multiple gang enforcement emphasis during the quarter,
continued to meet with neighboring jurisdiction to share gang, drug, and vice information, and
partnered with other drug units to enforce drug crimes.
4. Reduce speeding throuah increased visibility and traffic enforcement: Ongoing
5. Reduce traffic collisions in targeted areas of the City: Ongoing
2010 First Quarter Report
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Page 17
PART I
I Crimes Against Person I 178 I I
I Crimes Against Property 1276 I
I Crimes Against Society I 118 I
I All Other Cases I 1071 I I
CALLS FOR SERVICE
Cases Generated
ARRESTS
I Cases Cleared by Adult Arrest 664 I I
Cases Cleared by Juvenile 74
Arrest
RESPONSE TIME
Emergency Priority 1 I 3.15 I
Emergency Priority 2 I 6.64 I I
Non emergency I 13.46 I I
TRAFFIC
DUI 13
Criminal Traffic Citations 165
Traffic Infractions 630
Injury 52
Non injury 108
Hit and Run (Non injury) 83
Pedestrian /Vehicle Accidents 5
TAC TEAM
Narcotics Cases
Prostitution /Lewd Conduct,
etc.
TUKWILA POLICE DEPARTMENT
2010 QUARTERLY ACTIVITY REPORT
1ST QTR 2ND QTR 3RD QTR 4TH QTR 2010
TOTAL
8144
2135 I
16(11
cleared)
8
2010 First Quarter Report
Prepared for Finance Safety Committee
Page 18
ASSETS FORFEITED
Cash I $1,709 I I I
I Vehicles I 2 I
MAJOR CRIMES
Cases Assigned for 124
Investigation
I Cases Cleared 137
SPECIAL SERVICES
I Telephone Calls 8,813
I Warrants Cleared /Entered 409/515 I
Prisoners Monitored in Jail 409 I
Records Requests 1,253 I
Number of Firearms in 14
Evidence
Evidence Property Logged In 935
CRIME PREVENTION
Community Meetings Attended 7
Block Watch Meetings 2
Business Training Sessions 0
CFMH 0
Inspections /Reinspections
Apt. Managers Network 2
Meetings
Safety in Overnight Lodging 0
Visits*
I Crime Prevention Surveys I 0 I I I
Includes Re- inspections
TUKWILA POLICE DEPARTMENT
2010 QUARTERLY ACTIVITY REPORT
I 1ST QTR I 2ND QTR I 3RD QTR I 4TH QTR 1 2010 TOTAL