HomeMy WebLinkAbout2013 Comprehensive Annual Financial Report (CAFR)11L4
For the fiscal year ended December 31, 2013
Pedestrian trail along the Duwamish River near Fort Dent
The City of Tukwila, Washington
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
For the Year Ended December 31, 2013
Prepared by the City of Tukwila, Finance Department
Peggy McCarthy, Finance Director
JIM HAGGERTON, MAYOR
TUKWILA CITY COUNCIL
De' Sean Quinn, Council President
Joe Duffle Verna Seal
Dennis Robertson Kathy Hougardy
Allan Ekberg Kate Kruller
CITY OF TUKWILA: 2013 CAFR TABLE OF CONTENTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2013
TABLE OF CONTENTS
Page
I. INTRODUCTORY SECTION
Administrative Organizational Structure, Principal Officials, and Council Committees 1
Letter of Transmittal 3
Certificate of Achievement 9
II. FINANCIAL SECTION
Auditor's Report 11
Management's Discussion and Analysis 15
Basic Financial Statements
Government -wide Financial Statements:
Statement of Net Position 32
Statement of Activities 33
Fund Financial Statements:
Balance Sheet — Governmental Funds 36
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 37
Statement of Revenues, Expenditures, and Changes in
Fund Balance — Governmental Funds 38
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 39
Statement of Net Position — Proprietary Funds 42
Statement of Revenues, Expenses, and Changes in
Net Position — Proprietary Funds 43
Statement of Cash Flows — Proprietary Funds 44
Combining Statement of Fiduciary Net Position — Fiduciary Fund 48
Statement of Changes in Fiduciary Net Position — Fiduciary Fund 49
Notes to the Financial Statements 51
Required Supplemental Information:
Schedules of Revenues, Expenditures, and Changes in
Fund Balances — Budget and Actual:
General Fund 109
Metropolitan Park District 110
Notes to the Required Supplementary Information 111
Firemen's Pension Trust Fund 113
Retiree Medical and Long -Term Care Benefits for LEOFF I Employees 114
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet — Non -Major Governmental Funds 118
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Governmental Funds 119
Combining Balance Sheet — Non -Major Special Revenue Funds 122
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Special Revenue Funds 123
CITY OF TUKWILA: 2012 CAFR TABLE OF CONTENTS
TABLE OF CONTENTS - continued
Page
Schedules of Revenues, Expenditures, and Changes in
Fund Balances — Budget and Actual:
Hotel /Motel Tax Special Revenue Fund 124
Street Special Revenue Fund 125
Drug Seizure Special Revenue Fund 126
Combining Balance Sheet — Non -Major Debt Service Funds 128
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Debt Service Funds 129
Combining Balance Sheet — Non -Major Capital Project Funds 132
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Capital Project Funds 133
Combining Statements of Net Position — Internal Service Funds 136
Combining Statement of Revenues, Expenses, and Changes in
Net Position — Internal Service Funds 137
Combining Statement of Cash Flows — Internal Service Funds 138
Statement of Changes in Assets and Liabilities — Agency Fund 142
III. STATISTICAL SECTION
Schedule
Net Position by Component 1 144
Changes in Net Position 2 146
Fund Balances, Governmental Funds 3 148
Changes in Fund Balances of Governmental Funds 4 150
General Government Tax Revenues by Source 5 152
Property Tax Levies and Collections 6 153
Assessed and Estimated Actual Value of Taxable Property 7 154
Property Tax Rates — Direct and Overlapping Governments 8 155
Principal Property Taxpayers 9 156
Retail Sales Tax Collections by Sector 10 158
Sales Tax Rate Direct and Overlapping Governments 11 160
Ratios of Outstanding Debt by Type 12 162
Ratios of General Bonded Debt Outstanding 13 164
Computation of Direct and Overlapping Debt 14 165
Legal Debt Margin Information 15 166
Revenue Bond Coverage — Water Bonds 16 168
Revenue Bond Coverage — Sewer Bonds 17 169
Revenue Bond Coverage — Surface Water Bonds 18 170
Demographic Statistics 19 171
Principal Employers 20 172
Full -Time Equivalent City Government Employees by Department 21 173
Operating Indicators by Function 22 174
Capital Assets by Function 23 175
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CITY OF TUKWILA: 2013 CAFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
ADMINISTRATIVE ORGANIZATIONAL STRUCTURE
AND PRINCIPAL OFFICIALS
r
CITIZENS OF TUKWILA
1
COUNCIL
MEMBERS
MAYOR
Jim Haggerton
C TY
ADMINISTRATOR
David Cline
1
MUNICIPAL
COURT
Kimberly Walden
\ J
CITY ATTORNEY
Kenyon Disend PLLC
(Contracted)
\ J
HUMAN
RESOURCES
Stephanie Brown
\ J
INFORMATION
TECHNOLOGY
Mary Miotke
FINANCE
Peggy McCarthy
■
COMMUNITY
DEVELOPMENT
Jack Pace
c
PARKS AND
RECREATION
Rick Still
J
FIRE
Chris Flores
(Interim)
COUNCIL COMMITTEES
COUNCIL PRESIDENT
De'Sean Quinn
FINANCE AND SAFETY COMMITTEE
Verna Seal, Chairperson
Joe Duffle, Member
Kathy Hougardy, Member
COMMUNITY AFFAIRS AND PARKS
Joe Duffle, Chairperson
Dennis Robertson, Member
Verna Seal, Member
1
i
PUBLIC WORKS
Bob Giberson
\
POLICE
Mike Villa
TRANSPORTATION
Allan Ekberg, Chairperson
Dennis Robertson, Member
Kate Kruller, Member
UTILITIES
Kate Kruller, Chairperson
Allan Ekberg, Member
Kathy Hougardy, Member
CITY OF TUKWILA: 2013 CAFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
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City of Tukwila
6200 Southcenter Blvd, Tukwila, WA 98188 Jim Haggerton, Mayor
June 25, 2014
Honorable Jim Haggerton, Mayor
Members of the Tukwila City Council
Citizens of Tukwila
City of Tukwila
6200 Southcenter Boulevard
Tukwila, Washington 98188 -2599
Subject: TRANSMITTAL OF 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Dear Mayor, Council Members, and Citizens:
State law requires that cities publish financial statements in conformity with Generally Accepted
Accounting Principles (GAAP), which are audited in accordance with generally accepted
auditing standards by the State Auditor's Office, under the Revised Code of Washington (RCW)
43.09.230.
Therefore, we issue and transmit to you the City of Tukwila's Comprehensive Annual Financial
Report (CAFR) for the fiscal year ended December 31, 2013. This transmittal letter provides an
overview of the report and the financial condition of the City. It also provides insight into the
history of the City and the economic conditions affecting it, and describes the systems and
controls employed by the Finance department.
The Comprehensive Annual Financial Report has several significant uses. First, it provides a
general overview of the City's finances to the general public and taxpayers. Second, it is
referenced by bond buyers and rating agencies to evaluate the City's fiscal stability and
creditworthiness. Finally, the CAFR is a series of financial statements that have been audited
by the State Auditor's Office and provides assurances that assets are safeguarded and funds
are expended as they were legally appropriated in the adopted budget.
I. INTRODUCTION
A. MANAGEMENT REPRESENTATION
The Tukwila Finance Department prepared the report and accepts responsibility for the
accuracy, completeness, and fairness of presentation of the information included. The data is
believed to be accurate in all material respects, and it is believed that the data is presented in a
manner that fairly sets forth the results of operations and financial position of the City as
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CITY OF TUKWILA: 2013 CAFR LETTER OF TRANSMITTAL
measured by the financial activity of the City's various funds. All disclosures necessary to
enable the reader to gain the maximum understanding of the City's financial activity have been
included. The report has been prepared in conformance with GAAP and in conformance with
financial reporting standards issued by the Governmental Accounting Standards Board (GASB).
City management has developed and evaluated a comprehensive internal control structure that
is designed to provide reasonable, but not absolute, assurance regarding the safeguarding of
assets against loss from unauthorized use or disposition, and the reliability of financial records
for preparing financial statements and maintaining accountability for assets. The concept of
reasonable assurance is based on the assumption that the cost of internal controls should not
exceed the benefits expected to be derived. As management, we attest that, to the best of our
knowledge and belief, this financial report is complete and reliable in all material aspects.
As a recipient of federal, state and county financial assistance the City is required to undergo an
annual single audit in conformity with the provisions of the Single Audit Act amendments of
1996 and U.S. Office of Management and Budget Circular A -133, Audits of States, Local
Governments, and Non - profit Organizations. The audit is conducted by the State Auditor's
Office in conjunction with the City's annual independent audit. Information related to this single
audit includes the Schedule of Expenditures of Federal Awards, findings and recommendations,
if applicable, and auditor's reports on internal control and compliance with applicable laws,
regulations, contracts and agreements. The results of the City's annual single audit for the
fiscal year ended December 31, 2013 provided no instances of material weaknesses in the
internal control structure or significant violations of applicable laws.
B. REPORTING ENTITY
The City of Tukwila is a non - charter optional code City, operating under Section 35A of the
Revised Code of Washington. It has a strong Mayor form of government with a seven - member
City Council elected by the voters of the City. Councilmembers are elected at large rather than
by district, are responsible for establishing the general guidelines and policies for the City, and
each serves a four -year term. The Mayor appoints the City Administrator as the City's chief
administrative officer responsible for carrying out the policies and direction set by the Mayor and
City Council.
The City of Tukwila provides a full range of local government services. These services include
police and fire protection, emergency medical services, construction and maintenance of streets
and traditional municipal infrastructure, planning and zoning, park and recreational activities,
and cultural events. In addition, the City operates an equipment maintenance /rental fund. The
City operates its own municipal 18 -hole golf course and provides sewer, water, and surface
water services. Tukwila has a municipal court for traffic infractions, misdemeanors, and gross
misdemeanors. Other jurisdictions provide jail services to the City. Tukwila residents receive
library services from the King County Library System.
Incorporated in 1908, the City of Tukwila abuts the City of Seattle on the north and is one mile
east of Seattle- Tacoma International Airport. Tukwila has a small residential population of
19,611; however, the daytime shopper /visitor and working population can reach over 150,000
during the holiday shopping season.
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CITY OF TUKWILA: 2013 CAFR LETTER OF TRANSMITTAL
II. ECONOMIC CONDITION
A. SUMMARY OF LOCAL ECONOMY
A diverse regional economy is led by The Boeing Company and other smaller manufacturing
companies. The Puget Sound region is a major international trade gateway to the Far East.
Also, high tech industries such as Microsoft and Amazon have made their home in this region.
This diversity has now become the strength of our economic well being.
Tukwila enjoys a strong position in the Puget Sound region as well as the State of Washington.
Tukwila's location at the crossroads of the State's most significant freeway network (the 1 -5 and
1 -405 interchange), commuter light rail, and planned multi -modal transit center reinforces the
well - established advantages of Tukwila as a business location. These major transportation
systems and strategic access to Seattle, Tacoma, Sea -Tac Airport and the population base of
the south Puget Sound region provide a natural setting for commercial and industrial activity.
Tukwila enjoys one of the largest sales tax bases in the State of Washington, with $15.9 million
in revenue for 2013. The total retail sales activity amounted to approximately $1.9 billion in
2013, representing a 5.6% increase in sales tax revenue and retail activity within Tukwila, as
compared to last year. Although the manufacturing sector was down 2.2 %, both construction
and transportation /warehousing activity were up, 21 percent and 6.2 percent respectively. The
strength of the City's retail sales activity is the Westfield Southcenter Shopping Center and
Parkway Plaza retail development, which combine to create one of the largest retail
concentrations on the west coast. This strength has attracted new retail establishments to locate
in Tukwila.
This diversified revenue base is further supported by an assessed valuation of $4.7 billion as
well as our above - mentioned sales tax base, and has allowed the City to pursue a long -term
capital investment program.
The City experienced growth in overall development activities and an increase in development
value. Permitting activity increased from 1,930 permits issued in 2012 for a total value of $52.4
million to 2,099 permits issued in 2013 for a total value of $96.4 million.
B. FUTURE ECONOMIC OUTLOOK
Tukwila is in a continuous process of both short -term and long -term financial planning. Short -
term financial planning is inherent in the development of the City's biennial budget. Concurrent
with the biennial budget is the City's long -term capital needs and potential funding is assessed
with the development of the six -year capital facility plan. The capital facility plan is a component
of the Comprehensive Master Plan, which outlines how the City should look and function in
twenty years and creates a vision that can be realistically implemented. An integral part of this
vision is determining how to allocate the City's financial resources to achieve the desired goals.
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CITY OF TUKWILA: 2013 CAFR LETTER OF TRANSMITTAL
One of the City's high priorities has been to reduce crime along Tukwila International Boulevard
since it was annexed into the City in the early 1990's. The multi - jurisdictional raid and seizure of
motels along Tukwila International Boulevard was the largest event of this kind in the state.
This raid was the result of a year -long investigation which proved the owners and managers of
these properties allowed crime to occur and they were actively profiting from the activity. Since
that time, violent crimes in the Tukwila International Boulevard area have gone down by 48%
and residential burglaries have been reduced by 50 %.
The Southcenter Parkway Extension project, the new five -lane roadway from 180th Street to
200th Street has improved traffic flows significantly, and provides the infrastructure needed for
future development of the Tukwila South area bringing new businesses, housing and jobs into
the region.
The Tukwila South project which covers about 512 acres just south of 180th Street will become a
major urban area in the Puget Sound region. The project is estimated to bring 25,000 new jobs
and 10 million square feet of office, technology and retail space to the City. A new fire station
will be located at the northwest corner of the intersection, the foot of previous 178th Street
coming down the hill.
In 2012, the City Council approved a development agreement with Tukwila Village Development
Associates for this major project on Tukwila International Boulevard at South 144th Street.
Tukwila Village will be home to a new King County Library, senior housing, Neighborhood
Resource Center, retail shops, health clinic and plaza /park, and will create a special place for
this important area. The first building permit applications have been submitted, with
construction starting this summer. The addition of Tukwila Village is going to do much to bring
positive changes to this important part of our City, and help ensure that new development along
Tukwila International Boulevard reflects our vision for Tukwila.
In March 2013, Council approved a proposed development agreement for the former Circuit City
site on Andover Park East. The proposal includes several buildings with approximately 180
hotel rooms, residential units and space for retail business. Since that time, the owner has
continued to refine the project and has submitted the plan for design review approval. In order
to be considered by the Board of Architectural Review (BAR), the project must meet the City's
zoning codes.
The new Tukwila Transit Center that is currently under construction on Andover Park West will
provide a safer, expanded, high - quality bus stop with shelters, larger bus pullouts, and improved
lighting, sidewalks and landscaping. This project is scheduled to be completed this fall.
Construction for the new Tukwila sounder commuter rail station is well underway. Besides
serving sound transit riders, the station will also handle Amtrak's four trains per day and
numerous King County Metro transit buses, including the new Rapid Ride F System, which will
operate between Burien, SeaTac, Tukwila and Renton. The new permanent station will also
have improved walkways for pedestrians and bicyclists, and be a great travel option for people
coming into Tukwila to work, shop or visit.
Outside of the development arena, revenue growth is predicted to continue at a slow but steady
rate. As expenses outside of the City's control increase, such as pension plan contributions and
contractual increases in salaries and benefits, determining how resources will be distributed to
meet expanding needs will remain a challenge.
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CITY OF TUKWILA: 2013 CAFR LETTER OF TRANSMITTAL
As Tukwila moves forward, economic conditions will be continually monitored and adjustments
to City spending and services made to maintain the City's financial health. Long -term plans will
be focused on ensuring the City continues to be an economically strong and viable City. Our
Strategic Plan will help us draw on and enhance the strengths of individual neighborhoods and
groups and build stronger relationships with our stakeholders.
III. OTHER RELEVANT INFORMATION
A. INDEPENDENT AUDIT
State law requires an annual audit of all City books of accounts and financial records by the
Office of the State Auditor, which is headed by an independently elected State official, the State
Auditor. The Auditor has broad legal authority to inquire into all financial and legal compliance
matters and such audits are considered equal to audits by certified public accounting firms. The
2013 financial audit of the City is complete and was conducted in conformance with Generally
Accepted Auditing Standards. The financial statements of all City funds have been included in
this audit. The City has been given an unqualified opinion for 2013. Please see the Auditor's
Report. The State Auditor's Office also audits the City's administration of its federal grants
under the single audit concept. There were no instances of questioned costs as part of the
City's single audit for 2013.
B. MANAGEMENT DISCUSSION AND ANALYSIS
Accounting principles generally accepted in the United States of America require that
management provide a narrative introduction, overview and analysis to accompany the basic
financial statements in the form of Management's Discussion and Analysis (MD &A). This letter
of transmittal is designed to complement the MD &A and should be read in conjunction with it.
Tukwila's MD &A can be found immediately following the independent auditor's report.
C. AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Tukwila for its comprehensive annual financial report for the fiscal year ended December 31,
2012. This was the 26th consecutive year that the government has achieved this prestigious
award. In order to be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized comprehensive annual financial report. This report
must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
CITY OF TUKWILA: 2013 CAFR LETTER OF TRANSMITTAL
D. ACKNOWLEDGEMENTS
Preparation of this report could not have been accomplished without the professional, efficient,
and dedicated services of the entire staff of the Finance Department and the cooperation of
other City departments. Their long hours of assistance with the preparation and review of this
report are greatly appreciated. The Mayor, City Administrator and City Council are to be
complimented for their encouragement, interest, and support in conducting the financial
operations of the City in a sound and progressive manner. The efficient assistance of
examiners from the Office of the State Auditor is also appreciated. Staff who had a direct role in
preparing Tukwila's 2013 Comprehensive Annual Financial Report take great pride in their work,
and the entire team who worked on this project is to be commended.
Respectfully submitted,
i %?
Peggy McCarthy, CPA
Finance Director
8
CITY OF TUKWILA: 2013 CAFR
LETTER OF TRANSMITTAL
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Tukwila
Washington
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2 012
"Air,
Executive Director /CEO
9
CITY OF TUKWILA: 2013 CAFR
LETTER OF TRANSMITTAL
10
CITY OF TUKWILA: 2013 CAFR AUDITOR'S OPINION LETTER
Washington State Auditor
Troy Kelley
INDEPENDENT AUDITOR'S REPORT
June 25, 2014
Mayor and City Council
City of Tukwila
Tukwila, Washington
REPORT ON FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund and the aggregate remaining fund information of the
City of Tukwila, King County, Washington, as of and for the year ended December 31, 2013,
and the related notes to the financial statements, which collectively comprise the City's basic
financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Governinent
Auditing Standards', issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
Insurance Building, P.O. Box 40021 • Olympia, Washington 98504-0021 • (360) 902 -0370 • TDD Relay (800) 833 -6388
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CITY OF TUKWILA: 2013 CAFR AUDITOR'S OPINION LETTER
considers internal control relevant to the City's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the City's internal control,
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund and the aggregate remaining fund information of the City of Tukwila, King County,
Washington, as of December 31, 2013, and the respective changes in financial position and,
where applicable, cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Matters of Emphasis
As described in Note 1, during the year ended December 31, 2013, the City has implemented the
Governmental Accounting Standards Board Statement No. 61, The Financial Reporting Entity:
Omnibus - an amendment of GASB Statements No. 14 and No. 34 and Statement No. 65, Items
Previously Reported as Assets and Liabilities. Our opinion is not modified with respect to this
matter.
Other Matters
Required Supplernentai 1' Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on pages 15 through 30, budgetary comparison
information on pages 109 through 110, information on postemployment benefits other than
pensions on page 114 and pension trust fund information on page 113 be presented to
supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic f nancial statements, We do not express an
opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance
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CITY OF TUKWILA: 2013 CAFR AUDITOR'S OPINION LETTER
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The accompanying information
listed as combining financial statements and schedules on pages 118 through 142 is presented for
purposes of additional analysis and is not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the financial statements. This
information has been subjected to auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated, in all material respects, in relation to the basic financial
statements taken as a whole.
The information identified in the table of contents as the Introductory and Statistical sections is
presented for purposes of additional analysis and is not a required part of the basic financial
statements of the City. Such information has not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on it.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING
STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated June 25,
2014, on our consideration of the City's internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts and grant agreements
and other matters. That report will be issued under separate cover in the City's Single Audit
Report. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion
on internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering the City's
internal control over financial reporting and compliance.
Sincerely,
TROY KELLEY
STATE AUDITOR
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CITY OF TUKWILA: 2013 CAFR
AUDITOR'S OPINION LETTER
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CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2013
The discussion and analysis of the City of Tukwila's financial performance provides an overall review
of the City's financial activities for the year ended December 31, 2013. The intent of this discussion
and analysis is to look at the City's financial performance as a whole; readers should also review the
transmittal letter, and the basic financial statements to enhance their understanding of the City's
financial performance.
FINANCIAL HIGHLIGHTS
• Total net position, the amount by which total assets exceed total liabilities, equals $307.5
million. A total of 86 percent or $263.6 million of total net position is invested in capital assets
such as streets, land, buildings, equipment, and other improvements. The remaining net
position of $43.9 million is available for debt service, capital projects, and to meet the
government's ongoing activities and obligations.
• The City's net position increased by $17 million. Governmental activities provided a $12 million
increase, and business -type activities accounted for the difference. The City received
donations of capital assets amounting to $5.4 million.
• As of the close of the current fiscal year, the City of Tukwila's governmental funds reported
combined ending fund balances of $23.7 million, an increase of $5.3 million in comparison with
the prior year due primarily to the proceeds received from the special assessment bond to
reimburse the City for a portion of the costs of a major reconstruction of Southcenter Parkway
to improve access to the urban center.
• At the end of the current fiscal year, unassigned fund balance for the general fund was $15.3
million, or 32 percent of total general fund expenditures.
• The City of Tukwila's total debt increased by $2.3 million during the current fiscal year. This
change is a combination of new debt issued including the $6.7 million special assessment and
a general obligation bond of $1 million offset by debt service payments for the year and the
redemption of $3.2 million bond for the construction of the golf course clubhouse.
USING THIS ANNUAL FINANCIAL REPORT
This annual report consists of a series of financial statements and notes to those statements. These
statements are organized so the reader can understand the City of Tukwila as an entire operating
entity. The statements then proceed to provide an increasingly detailed look at specific financial
conditions.
The Statement of Net Position and Statement of Activities provide information about the activities of
the whole City presenting both an aggregate view of the City's finances and a longer -term view of
those assets. Major fund financial statements provide the next level of detail. For governmental
funds, these statements tell how services were financed in the short -term as well as what dollars
remain for future spending. The fund financial statements also look at the City's most significant
funds with all other non -major funds presented in total in one column.
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CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Overview of the Financial Statements
The City's basic financial statements are presented in three parts:
1) Government -wide financial statements
2) Fund financial statements
3) Notes to the financial statements
Other supplementary information, in addition to the basic financial statements, is also contained in
this report. This section of the Management's Discussion and Analysis is intended to introduce and
explain the basic financial statements.
Government -wide Financial Statements
The government -wide financial statements are designed to be corporate -like in that all governmental
and business -type activities are consolidated into columns which add to a total for the City. The
focus of the Statement of Net Position is designed to be similar to bottom -line results for the City and
its governmental and business -type activities. This statement combines and consolidates
governmental funds' current financial resources (short -term spendable resources) with capital assets
and long -term obligations. Over time, increases or decreases in net position may be one indicator of
improvement or deterioration in the City's overall financial health.
The Statement of Activities is focused on both the gross and net cost of various functions, including
both governmental and business -type activities, which are supported by the City's general tax and
other revenues. This is intended to summarize and simplify the user's analysis of the cost of various
governmental services and /or subsidy to various business -type activities. The revenue generated by
the specific functions (charges for services, grants, and contributions) is compared to the expenses
for those functions to show how much each function either supports itself or relies on taxes and other
general funding sources for support. All activity on this statement is reported on the accrual basis of
accounting, requiring that revenues are reported when they are earned and expenses are reported
when they are incurred, regardless of when cash is received or disbursed.
Governmental activities of the City include general government (executive, finance, legal, human
resources, court), public safety, physical environment, economic environment, transportation, mental
and physical health, and culture and recreation. The City's business -type activities include a water
and sanitary sewer utility, surface water utility, and a municipal golf course. Governmental activities
are primarily supported by taxes, charges for services, and grants while business -type activities are
self - supporting through user fees and charges.
Fund Financial Statements
The fund financial statements are the traditional reporting format for governments. A fund is a fiscal
and accounting entity with a self - balancing set of accounts used to account for specific activities or
meet certain objectives. While the government -wide statements present the City's finances based
on the type of activity (general government vs. business type), the Fund Financial Statements are
presented by fund type, such as the general fund, special revenue funds and proprietary funds, with
the focus on major funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions that are reported as
governmental activities in the government -wide financial statements. The governmental major fund
presentation is used, utilizing the "sources and uses of resources" basis. This is the manner in which
the budget is typically developed. The basis of accounting is different between the governmental
fund statements and the government -wide financial statements. The governmental fund statements
16
CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
focus on the near -term revenues /financial resources and expenditures while the government -wide
financial statements include both near -term and long -term revenues /financial resources and
expenditures. The information in the governmental fund statements can be used to evaluate the
City's near -term financing requirements and immediate fiscal health. Comparing the governmental
fund statements with the government -wide statements can help the reader better understand the
long -term impact of the City's current year financing decisions.
Because the basis of accounting is different between the governmental fund statements and the
government -wide financial statements, reconciliations are provided. The reconciliation between the
governmental fund Balance Sheets and the government -wide Statement of Net Position is found on
the page following the governmental funds' Balance Sheet, while the reconciliation between the
governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance and the
government -wide Statement of Activities is found directly following the governmental funds'
Statement of Revenues, Expenditures, and Changes in Fund Balance.
The City maintains twenty -four individual governmental funds. Of these, five are considered major
(the general fund, the arterial street fund, the land acquisition recreation & park development fund,
the local improvement district #33 fund, and the metropolitan park district fund) and are presented
separately in the governmental fund Balance Sheet and the governmental fund Statement of
Revenues, Expenditures and Changes in Fund Balances. The remaining governmental funds are
combined into a single column labeled "Other Governmental Funds ". Beginning in 2013, the City's
component unit, Metropolitan Park District, is reported as blended. Individual fund data for each of
the other governmental funds can be found in the combining statements later in this report.
The City maintains budgetary control over its operating funds through the adoption of a biennial
budget. Budgets are adopted at the fund level according to state law. Budgetary comparison
statements are presented for the general and major special revenue funds in the "Required
Supplemental Information" section of the report. Other budgetary comparison schedules are
included following the other governmental funds' combining statements in this report.
Proprietary Funds
Proprietary funds are used by governments to account for their business -type activities and use the
same basis of accounting as utilized in private industry. Business -type activities provide specific
goods or services to a group of customers that are paid for by fees charged to those customers.
There is a direct relationship between the fees paid and the services rendered.
The City has two types of proprietary funds: enterprise funds and internal service funds. Enterprise
funds are used to account for goods and services provided to citizens, while internal service funds
are used to account for goods and services provided internally to various City departments.
Enterprise funds report the same functions presented as business -type activities in the government -
wide statements, but in greater detail. The City's enterprise fund statements provide information on
the City's three utilities (water, sanitary sewer, surface water) as well as the City -owned golf course.
Internal service funds are an essential accounting tool used to accumulate and allocate costs
internally among the City's various functions. The City uses internal service funds to account for its
fleet of vehicles, and its insurance premiums. Internal service funds benefit both governmental and
business -type activities, and are allocated accordingly in the government -wide statement of
activities.
17
CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Fiduciary Funds
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for
individuals, private organizations, other governments or other funds. Fiduciary funds are not
included in the government -wide financial statements because their assets are not available to
support the City's activities.
The City has two fiduciary funds: a firemen's pension trust fund and an agency fund, which are
accounted for on the accrual basis. As agency funds are custodial in nature, they do not include
revenues and expenses.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided
in the government -wide and fund financial statements. The notes to the financial statements can be
found at the end of the Basic Financial Statements section.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information including a budget vs. actuals report for the City's
general fund, a schedule of major /non -major special revenue funds, and a schedule of funding
progress for the Firemen's Pension Trust Fund and other post - employment benefits. Additional
pension benefit information is found in Note 9.
The combining statements referred to earlier in connection with non -major governmental funds and
internal service funds are presented in the section titled "Fund Financial Statements and Schedules ".
Government -wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. For the City of Tukwila, total assets exceeded liabilities by $307.5 million at December 31,
2013.
The largest portion of the City's net position, $263.6 million, or 86 percent, reflects its investment in
capital assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire
those assets that is still outstanding.
The City of Tukwila uses these capital assets to provide services to citizens; consequently, these
assets are not available for future spending. Although the City of Tukwila's investment in its capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities:
18
CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Current and other assets
Capital assets, net of
accumulated depreciation
Total assets
Deferred Outflows of Resources
Long -term liabilities
Other liabilities
Total liabilities
CITY OF TUKWILA NET POSITION
(in thousands)
Governmental Activities Business -type Activities
As of 12/31/13 As of 12/31/12 As of 12/31/13 As of 12/31/12
$57,557 $46,928 $14,703 $12,476
223,051
280,608
218,767
65,040 63,118
Total
As of 12/31/13 As of 12/31/12
$72,260 $59,403
265,695
79,742 75,594
288,090
360,350
281,885
341,289
524
32,437
10,057
42,495
29,126
10,417
39,544
1,058
9,333
10,392
10,515
725
11,240
524
33,496
19,391
52,887
39,642
11,142
50,784
Deferred Inflows of Resources 515
Net position
Net investment in
capital assets
Restricted
Unrestricted
Total net position
207,660
3,480
26,981
$238,121
203,207
2,750
20,194
$226,151
55,956
430
12,965
$69,351
52,912
430
11,011
$64,354
515
263,616
3,910
39,946
$307,472
253,109
3,180
34,215
$290,504
The governmental unrestricted net position comprises $27 million. The general fund unrestricted net
position is available for functions such as public safety employee salaries and supplies, park and
road maintenance, and other general government services. The unrestricted net position of
business -type activities, $13 million, may only be spent on activities related to one of the three City
utilities (water, sewer, and surface water) or on the golf course activities. Examples of utility
activities include maintenance of water /sewer mains, pump and lift stations, storm drain flushing, and
water meter reading.
The $10.6 million increase in current and other assets for governmental activities includes a $6
million net increase in cash and investments from the repayment of bond funding on the
Klickitat /Southcenter Parkway /I -5 Access Revision project. The increase of $2.2 million in current
and other assets for business -type activities is comprised of an net increase of $3.3 million in cash
and investments. This increase results from a rate structure design in the utility funds that build
reserves for major infrastructure replacement and improvement.
Governmental capital assets increased by $4.3 million due to capital outlays of $5.8 million and
capital contributions of $5.4 million, offset by depreciation. The addition is due to the activities in the
major projects below:
• Interurban Avenue South, $577,814
• Tukwila Urban Transit Center, $1.1 million
• Tukwila Urban Center Ped /Bicycle Bridge, $336,480
• Southcenter Parkway Extension, $1.1 million
The $3.3 million increase in long -term liabilities for governmental activities is due to the $1 million
bond issue to fund the Metropolitan Park District capital improvements, and $6.7 million special
assessment debt on the Klickitat Urban Access project, offset by principal payments on existing debt.
The increase in other liabilities comprise year -end payables that were settled in 2014.
Business -type activity capital assets increased by $1.9 million due to capital outlays of $5.8 million
offset by depreciation. Capital outlays for the period primarily include drainage projects and
construction activity on the Southcenter Parkway extension project amounting to $4.8 million.
19
CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Changes in Net Position
The change in net position represents the increase or decrease in City net position resulting from its
various activities.
Following is a condensed version of the City's changes in net position. The table shows the
revenues, expenses and related changes in net position for both governmental -type and business -
type activities:
CITY OF TUKWILA CHANGES IN NET POSITION
(in thousands)
Governmental Activities
2013 2012
Business -type Activities Total
2013 2012 2013 2012
Revenues:
Program revenues
Charges for services $6,213 $5,832 $18,464 $17,034 $24,676 $22,866
Operating grants and contributions 3,290 4,412 3,290 4,412
Capital grants and contributions 16,948 1,582 339 136 17,286 1,717
General revenues
Property taxes 14,510 14,132 14,510 14,132
Sales and use taxes 16,316 15,442 - - 16,316 15,442
Natural gas use tax 204 232 - - 204 232
Hotel /Motel taxes 527 522 - - 527 522
Utility taxes 3,880 4,001 3,880 4,001
Interfund utility taxes 1,687 1,535 - - 1,687 1,535
Business taxes 2,570 2,498 2,570 2,498
Excise taxes 2,745 2,861 - 2,745 2,861
State entitlements 1,862 1,896 - - 1,862 1,896
Investment earnings 102 117 - - 102 117
Miscellaneous 305 102 - - 305 102
Total revenues 71,159 55,162 18,803 17,170 89,962 72,332
Expenses:
General government 10,195 8,343 - - 10,195 8,343
Public safety 25,939 26,598 - - 25,939 26,598
Transportation 7,658 7,315 - 7,658 7,315
Physical environment 2,611 3,626 - - 2,611 3,626
Culture and recreation 5,635 4,243 - - 5,635 4,243
Economic environment 5,210 4,801 - - 5,210 4,801
Interest on long -term debt 1,039 1,152 - 1,039 1,152
Water /sewer 10,421 10,150 10,421 10,150
Foster golf course 1,708 1,701 1,708 1,701
Surface water 2,563 2,700 2,563 2,700
Total expenses 58,287 56,078 14,692 14,550 72,979 70,629
Increase (decrease) in net position before transfers 12,872 -917 4,110 2,620 16,983 1,703
Transfers 1,061 1,057 -1,061 -1,057 -
Change in net position 13,933 140 3,050 1,563 16,983 1,703
Net position- beginning of period 227,888 226,011 64,354 62,791
Change in accounting principle -250 - -67
Prior Period Adjustment -3,450 - 2,014
292,242 288,801
-316
-1,436
Net position- beginning balance, as restated 224,189 226,011 66,301
Net position -end of period $238,121 $226,151 $69,351
62,791
$64,354
290,489 288,801
$307,472 $290,504
Governmental activities ended the year with $14 million increase in the City's net position.
Revenues to fund capital assets are recorded as program or general revenues in the statement of
activities. However, asset purchases are not recorded as expenses in the year purchased and
construction costs are not recorded as expenses in the year incurred. Instead, the costs are
recorded as long -term assets and are depreciated over their useful life.
Revenues from governmental activities increased $16 million from 2012 activity. The components
and explanation of this increase follows.
20
CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
• Capital grants and contributions increased $15.4 million mainly due to $5.4 million of
donated assets from private contributors or by government transfer. In addition, the City
recognized $9.5 million in special assessment revenue, a reimbursement to the City for
Klickitat urban access project costs. Of this assessment, $2.8 million was prepaid by
property owners.
• Sales and use taxes category increased $874,715 due to increased construction activity.
• Charges for services increased $380,967 due to increased permitting activity and receipts.
• Miscellaneous category change of $203,016 includes $61,000 of seized funds.
Total governmental expenses increased by $2.2 million. Physical environment expenses decreased
by $1 million or 28% primarily due to the completion of the removal of flood response protective
measures. Culture and recreation expenses increased by almost $1.4 million, or 32 %, as a result of
implementing GASB Statement No. 61, where the City was required to change the reporting of its
component unit from discreet to blended. Interest expense on long -term debt decreased $113,212.
The next chart summarizes the governmental activity revenue by source, while the second one
reflects the specific programs' revenues and related expenses for the various activities of the City.
Gaps between specific programs' revenues and their related expenses are funded through general
tax revenues.
Utility taxes
8%
Sales /use taxes
23%
Revenues by Source — Governmental Activities
Other taxes
8%
Other revenue Charges for
3% services
9%
Capital grants &
contributions
5%
21
Property taxes
20%
Operating grants
& contributions
24%
CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
$30,000,000
$27,000,000
$24,000,000
$21,000,000
$18,000,000
$15,000,000
$12,000,000
$9,000,000
$6,000,000
$3,000,000
$0
Program Revenues and Expenses - Governmental Activities
1
1 I ■
o � 5a�e�� �� c� eats ��e�
Jet ��O "C * eGt ,\CO
eta\�o Qs� •t�5 _a\ '2;\ mat oe�
a
Gem Qr�S
CI Program revenues
• Expenses
Business -type net position increased by $3 million during 2013. Key components of this increase
include:
• $1,429,181 or 8% increase in charges for services primarily due to utility rate increase
effective January 2013, and water and sewer hook up fees on new construction.
• $3,863,455 of utility related construction costs were transferred from the Arterial Street fund
as a prior period adjustment.
• Income before capital contributions and transfers amounted to:
o Water fund: $ 812,887
o Sewer fund: 1,912,181
o Foster golf course fund: (303,729)
o Surface water fund: 1,322,665
$ 3,744,003
22
CITY OF TUKWILA: 2013 CAFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following chart shows the relative net position balances for each business -type fund:
Business -Type Net Position - By Fund
Foster golf course
12%
t
yl
Water
25%
Surface water
45%
Sewer
18%
The majority of net position in the City's enterprise funds relate to capital asset infrastructure, such
as water and sewer mains, and the golf course land. As such, most of the net position is not
available to support the ongoing expenses of the funds. The following chart contrasts the total net
position to the spendable portion of net position for each enterprise fund:
Comparison of Total Net Position to Spendable Net Position
Business -Type Funds
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
❑Spendable /Unrst Net Position
•Total Net Position
Sewer
23
Surface water
Foster golf
course
CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
The following chart depicts the revenues and expenses for business -type funds:
$10,000,000 —
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Business -type Activity Revenues and Expenses
Before Capital Contributions and Transfers
Water Sewer Surface Water Foster Gdf Course
Financial Analysis of Governmental Funds
❑ Revenues
• Expenses
The purpose of the City's governmental funds is to report on near -term revenues /financial resources
and expenditures. This information helps determine the City's financial requirements in the near
future. Specifically, fund balance is a good indicator of the City's financial resources.
As of December 31, 2013, the City's governmental funds had combined fund balances of $23.7
million, an increase of $5.3 million or 29 %. This increase is related to delayed capital expenditures
and reimbursement of constructions costs via a local improvement district assessment.
The change in prior year fund balances for other major funds are as follows:
• General fund $8,057,430
• Arterial Street fund $198,884
• Land Acq., & Park Development $129,702
• Other governmental funds ($3,048,992)
The increase in the general fund is due to improved current year results and receipt of Local
Improvement District #33 reimbursement funds. The decrease in other governmental funds is due
primarily to the $2.6 million early retirement of the 2003 general obligation bonds originally issued to
fund the construction of the golf course clubhouse.
24
CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Of the governmental fund balances $1,743,362 is nonspendable. Restricted fund balances
constrained for a specific purpose by external parties or enabling legislation consist of $714,946 for
tourism, $1,185,955 for streets, $397,420 for arterial street improvements, $75,609 for drug seizure,
$437,222 for fire improvements, and $668,849 for debt service. Assigned fund balances intended to
be used for specific purposes consist of $698,115 for arterial streets, $1,219,890 for land acquisition
and park development, $1,902,602 for facility replacement, $451,755 for general government
improvements, $230,000 for residential street improvements, $8,261 dedicated for debt repayment,
and $225,000 for public safety equipment.
The general fund is the primary operating fund of the City. All receipts and payments of ordinary City
operations are processed through it unless they are required to be accounted for in another fund. At
the end of 2013, the general fund had an unassigned fund balance of $15,317,624.
The following chart shows the relative fund balances for governmental funds:
Governmental Funds — Fund Balances
Capital project funds
12%
Land acq, rec & park
improvement funds
5%
Arterial street fund
4%
Debt service funds
3%
Special revenue funds
3%
General fund
73%
The $8,057,430 increase in the general fund balance results from revenue of $50,012,664, expenses
of $47,217,490, transfers into the fund of $14,919,606, transfers out of $10,662,843, a bond issue of
$1 million to fund the Metropolitan Park District capital improvements, and sale of capital assets of
$5,493. In comparison with 2012, revenue increased $1,318,235, expenses increased $2,578,762,
transfers into the fund increased $12,588,941 and transfers out of the fund increased $4,384,989.
25
CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
The general fund revenue increase of $1.3 million came from the following sources:
General Fund Revenue Increases / (Decreases) - By Source
$1,000,000
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Taxes
$775,527
Charges for services
$17,938
Licenses and permits
$409,281
Intergovernmental Fines and forfeitures
$10,809 $21,886
Investment earnings
$43,635
Miscellaneous
$39,158
Financial Analysis of Proprietary Funds
The City's proprietary funds provide the same type of information as found in the government -wide
financial statements, but in greater detail. Factors affecting the finances of the City's proprietary
funds have already been addressed in the discussion of the City's business -type activities.
General Fund Budgetary Highlights
The City budgets biennially by adopting a budget at the end of the preceding biennium, and then
making adjustments as necessary via budget amendments throughout the next two years. Following
is a summary of such budget amendments:
• Increase in salary and benefits for Council approved decisions and programs $ 126,000
• Additional funding for staff coverage in the fire department 200,000
• Additional funding for parks department public utility costs 85,000
• Bond proceeds to fund capital improvements to Metropolitan Park District 1,000,000
• Lending of bond proceeds to Metropolitan Park District (1,000,000)
• Delayed capital equipment expenditures and compensation study (112,000)
26
CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Reasons for the significant variances in the general fund between the final budget and actual results
include:
• Revenue from sales and use tax were over eight percent higher than budget. This increase
is primarily from a rise in construction activity. In addition, there is a combined gain of
almost two percent, or $198 thousand on interfund utility tax from water and sewer.
• Capital equipment purchases planned for 2013 were carried over to the second half of the
biennium.
Capital Asset and Debt Administration
Capital Assets
The City's investment in capital assets for both its governmental and business -type activities as of
December 31, 2013 totaled $288.2 million (net of accumulated depreciation), an increase of $3.5
million, or 1.2 %, from 2012. This investment in capital assets includes land, buildings, improvements,
machinery and equipment, construction in progress, utility transmission /distribution systems, roads,
bridges, and other infrastructure.
SUMMARY OF CAPITAL ASSETS (NET OF DEPRECIATION)
As of 12/31/13
Governmental Activities
Beginning
Balance Blended Prior Period
12/31/2012 Component Unit Adjustment
Land $ 42,191,328 $ 40,501,509 $ - $
Intangible Assets, Non - depreciable 770,000 - -
Buildings 14, 466, 801 12,181, 708 1,859,013
Other Improvements 7,587,915 7,943,508 -
Machinery and Equipment 5,456,039 5,597,527
Infrastructure 141, 611, 727 104, 089, 598
Intangible Assets, Depreciable 482,907 510,592 -
Construction in Progress 10,483,961 47,942,200 942,119 (3,863,455)
Total $223,050,679 $218,766,642 $ 2,801,132 $ (3,863,455)
27
Beginning
Balance
12/31/2012
Restated
$ 40,501,509
14, 040, 721
7,943,508
5,597,527
104, 089, 598
510,592
45, 020, 864
$217,704,319
CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Land
Intangible Assets, Non - depreciable
Buildings
Other Improvements
Machinery and Equipment
Infrastructure
Intangible Assets, Depreciable
Construction in Progress
Total
Land
Intangible Assets, Non - depreciable
Buildings
Other Improvements
Machinery and Equipment
Infrastructure
Intangible Assets, Depreciable
Construction in Progress
Total
As of 12/31/13
$ 1,929,684
308,074
8,947,243
50,294,183
502,211
53,858
3,104, 260
$65,139,514
As of 12/31/13
$ 44,121,012
1,078,074
23, 414, 044
57, 882, 099
5,958,250
141,611,727
536,765
13, 588, 221
Business -Type Activities
Beginning
Balance
12/31/2012
Prior Period
Adjustment
$ 2,214,118 $
8,099,220
44, 569, 514
584,202
56,012
7,595,365 2,427, 372
$63,118,430 $ 2,427,372
Total
Beginning
Balance
12/31/2012
Restated
$ 2,214,118
8,099,220
44, 569, 514
584,202
56,012
10, 022, 737
$ 65, 545, 804
Beginning
Balance Blended
12/31/2012 Component Unit
Prior Period
Adjustment
Beginning
Balance
12/31/2012
Restated
$ 42, 715, 627 $ - $ - $ 42, 715, 627
20, 280, 928 1,859,013 22,139, 941
52, 513, 021 52, 513, 022
6,181, 729 6,181, 729
104, 089, 598 104, 089, 598
566,604 566,604
55, 537, 565 942,119 (1,436, 083) 55, 043, 602
$288,190,193 $281,885,072 $ 2,801,132 $ (1,436,083) $283,250,123
More detailed information on capital assets is provided in Note 7.
On September 12, 2011, the Board of Commissioners approved the formation of the Tukwila
Metropolitan Park District (MPD) Pool. For the comprehensive annual financial report years of 2011
and 2012, the MPD Pool was treated as a discretely presented component unit. Effective with the
report year for 2013, the beginning balances to the capital asset categories for Construction in
Progress in the amount of $942,119 and Buildings Net of Accumulated Depreciation for Buildings of
$1,859,013 now reflect these totals carried over on behalf of the MPD Pool and is, therefore,
presented in this Management's Discussion and Analysis Section to the Financial Statements as a
blended component unit. Construction work in progress and capital improvement costs of nearly $1.7
million incurred during years 2012 and 2013 were completed for the MPD Pool in the current period.
General capital outlay purchases added $250,482 in machinery and equipment. Among these
include final payment in the amount of $117,224 for the new permitting software, traffic signal
housing units totaling $53,074, and various computer equipment purchases in the amount of
$47,177.
Major construction projects completed in 2013 include the Klickitat /Southcenter Parkway /I -5 Access
Revision and the Southcenter Parkway Extension with total overall previous and current years'
construction -in- progress costs of $22.3 million and $23.1 million, respectively, have been capitalized
into the various asset categories of roadway, bridges, traffic control, and utilities infrastructure.
28
CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Many of the remaining projects in the Arterial Street fund continue to be in the construction phase
adding $2.0 million in construction -in- progress for the period. The major arterial street fund activities
are comprised of the following:
• Tukwila Urban Center (TUC) Transit Center, $659,662
• Interurban Avenue South, $577,814
• Tukwila Urban Center (TUC)- Pedestrian / /Bicycle Bridge, $336,480
• Various other Arterial Street Fund projects total $434,283
Land Acquisition, Recreation & Park Development activities consist of $233,714 for the Duwamish
Gardens and Duwamish Hill Preserve work in progress improvements.
Other governmental funds' activity in the areas of residential streets and facilities improvements
provided an additional $362,123 to work in progress costs for the year.
Business -type activities consisted of nearly $1.5 million in added construction in progress work for
the year. Major projects in the utility funds comprise of the following:
• Surface Water Small Drainage, Storm Lift Station #15, and Others, $1.0 million
• Sewer Utility Projects, $391,766
A total of $940,287 in purchases of pipes, catch basins, and other utility infrastructure were
capitalized during the current period.
Long -term Debt
At the end of the current fiscal year, the City had total bonded debt outstanding of $17,781,009. Of
this amount, $14,706,009 is general obligation bonds, and $3,075,000 is revenue bonds for the
water /sewer and surface water utilities. The reduction in outstanding bonds is due to the principal
payments redeemed for the year. The City currently maintains a rating of Al with Moody's and AA-
with Fitch's Investor Service for its general obligation debt. The City also has $6.7 million in special
assessment debt.
The following schedule summarizes the City's bonded debt:
Governmental Activities
Business -type Activities Total
As of 12/31/13 As of 12/31/12 As of 12/31/13 As of 12/31/12 As of 12/31/13 As of 12/31/12
General obligation bonds $ 14,706,009 $ 18,360,000 $ - $ - $ 14,706,009 $ 18,360,000
Revenue bonds - 3,075,000 3,540,000 3,075,000 3,540,000
$ 14,706,009 $ 18,360,000 $ 3,075,000 $ 3,540,000 $ 17,781,009 $ 21,900,000
Other
Special assessment bonds $ 6,687,500 $
$ $ 6,687,500 $
Below is a summary of additional long -term debt of the City:
Governmental Activities
Business -type Activities Total
Other Long -term Debt As of 12/31/13 As of 12/31/12 As of 12/31/13 As of 12/31/12 As of 12/31/13 As of 12/31/12
Public Works Trust Fund loans $ - $ - $ 6,063,071 $ 6,621,364 $ 6,063,071 $ 6,621,364
Employee leave benefits 3,337,967 3,168,775 319,303 308,530 3,657,270 3,477,305
Due to other governments 7,021,600 7,392,600 7,021,600 7,392,600
$ 10,359,567 $ 10,561,375 $ 6,382,374 $ 6,929,894 $ 16,741,941 $ 17,491,269
More detailed information on long -term debt is provided in Note 11.
29
CITY OF TUKWILA: 2013 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Economic Factors
The outlook for 2014 is positive. The economy is showing steady signs of recovery. The City of
Tukwila has a small residential population, yet the City works hard to serve the regional economy
and has become an economic powerhouse providing jobs and revenue for the region and State.
Several major pending developments will have significant impacts on the future of Tukwila's
economy:
• Tukwila Village - The Board of Architecture Review approved the design of the library on
November 14, 2013 and of the first development phase (and includes the plaza and
commons) on November 26, 2013. The building permit applications have been submitted
and construction is starting in summer 2014. The library and first phase are scheduled to
open in 2015, the second phase in late 2015/16, and the third and final phase in 2016.
• Tukwila Urban Center Transit Center — The current facilities are inadequate in size and
location to serve Metro operations and transit riders. The design work for the project was
completed in 2013. Construction began in 2014 and is expected to be functional in June to
coincide with the new F -Line Rapid Ride.
• Major Tenant Improvements /Additions — Tenant improvements and additions were
completed for Tahoma Clinic, Vulcan, Boeing, Providence Infusion and Pharmacy, as well as
other improvements. This added $203,895 in revenue receipts, and added $17.5 million in
property values.
• Urban Renewal - Safety along Tukwila International Boulevard is a major concern for the
City. Reducing crime is the City's highest priority for 2013 and 2014 with an emphasis on
Tukwila International Boulevard. Certain areas along Tukwila International Boulevard have
long been identified as "hot spots ", where a large amount of serious crime occurs. In early
2013 the City's police department evaluated crime for all commercial properties in the
Tukwila community renewal area and recommended the City purchase certain properties in
order to reduce crime. The City is currently in negotiations with property owners to purchase
the Spruce Motel and the Smoke Shop. The City is also currently working through the U.S.
Attorney's Office and the lenders (banks) to purchase the Great Bear, Boulevard, and
Traveler's Choice motels.
Requests for Information
This financial report is designed to provide a general overview of the City of Tukwila's finances for
readers with an interest in the City's finances. Questions concerning this report, or requests for
additional information, may be addressed to the Finance Director, City of Tukwila, 6200 Southcenter
Blvd, Tukwila, WA 98188 -2544.
30
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The City presents two government -wide financial statements:
The Statement of Net Position provides information on all City assets and
liabilities, with the difference between the two reported as net position.
The Statement of Activities is focused on both the gross and net cost of various
functions, including both governmental and business -type activities, which are
supported by the City's general tax and other revenues.
31
42,494,791 10,391,717 52,886,508
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET POSITION
DECEMBER 31, 2013
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS:
CASH AND CASH EQUIVALENTS $ 27,944,806 $ 9,633,326 $ 37,578,131
INVESTMENTS 5,085,228 2,078,276 7,163,504
RECEIVABLES:
TAXES 4,997,723 854 4,998,577
CUSTOMER ACCOUNTS 876,455 1,291,785 2,168,241
INTEREST ON INVESTMENTS 47,848 42,224 90,072
DUE FROM OTHER GOVERNMENTAL UNITS 947,561 47,387 994,948
INVENTORY OF MATERIALS AND SUPPLIES 208,180 597,547 805,727
NOTES RECEIVABLE 6,242,835 403,041 6,645,875
RESTRICTED CASH AND CASH EQUIVALENTS 397,420 508,340 905,760
NET PENSION ASSET 380,893 - 380,893
INVESTMENT IN JOINT VENTURES 10,427,892 - 10,427,892
NON - DEPRECIABLE CAPITAL ASSETS 53,445,289 5,342,019 58,787,307
DEPRECIABLE CAPITAL ASSETS (NET OF ACCUMULATED
DEPRECIATION 169,605,390 59,797,496 229,402,886
TOTAL ASSETS 280,607,519 79,742,293 360,349,812
DEFERRED OUTFLOWS OF RESOURCES:
DEFRRED CHARGE ON REFUNDING
TOTAL DEFERRED OUTFLOWS OF RESOURCES
524,100 - 524,100
524,100 - 524,100
LIABILITIES:
ACCOUNTS PAYABLE 1,685,549 630,714 2,316,263
ACCRUED WAGES AND BENEFITS PAYABLE 1,431,578 120,298 1,551,876
ACCRUED INTEREST PAYABLE 56,750 43,921 100,671
REVENUES COLLECTED IN ADVANCE 204,767 20,549 225,316
OTHER LIABILITIES 2,117,010 73,013 2,190,023
BONDS AND OTHER DEBT PAYABLE
DUE WITHIN ONE YEAR 2,288,988 1,058,391 3,347,379
DUE IN MORE THAN ONE YEAR 30,148,368 8,444,831 38,593,199
NET OTHER POST EMPLOYMENT OBLIGATION 4,561,781 - 4,561,781
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
NON - EXCHANGE REVENUE RECEIVED IN ADVANCE 515,333 515,333
TOTAL DEFERRED INFLOWS OF RESOURCES 515,333 - 515,333
NET POSITION:
NET INVESTMENT IN CAPITAL ASSETS 207,660,389 55,955,595 263,615,984
RESTRICTED FOR DEBT SERVICE 430,444 430,444
RESTRICTED BY ENABLING LEGISLATION:
TOURISM PROMOTION 714,946 714,946
RESIDENTIAL STREET IMPROVEMENTS 1,185,955 1,185,955
ARTERIAL STREET IMPROVEMENTS 397,420 397,420
DRUG INVESTIGATION AND ENFORCEMENT 75,609 75,609
DEBT SERVICE GUARANTY FUND 668,849 668,849
FIRE IMPROVEMENTS 437,222 - 437,222
UNRESTRICTED NET POSITION 26,981,105 12,964,539 39,945,644
TOTAL NET POSITION $ 238,121,496 $ 69,350,577 $ 307,472,073
The notes to the financial statements are an integral part of this statement.
32
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2013
PRIMARY GOVERNMENT
COMPO-
NENT
UNIT
EXPENSES
PROGRAM REVENUES - -NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION --
CHARGES OPERATING CAPITAL Grants GOVERNMENTAL BUSINESS- TOTAL TOTAL
For Services Grants and and Activities TYPE
Contributions Contributions Activities
FUNCTIONS / PROGRAM S:
PRIMARY GOVERNMENT
GOVERNMENTAL ACTIVITIES:
GENERAL GOVERNMENT $ 10,195,049 $ 1,495,438 $ 2,145,397 $ $ (6,554,214) $ (6,554,214) $
PUBLIC SAFETY 25,938,946 871,919 715,581 36,000 (24,315,446) (24,315,446)
TRANSPORTATION 7,658,280 287,956 37,875 16,581,425 9,248,975 9,248,975
PHYSICAL ENVIRONMENT 2,610,591 27,407 246,545 - (2,336,639) (2,336,639)
CULTURE AND RECREATION 5,635,347 744,014 70,881 330,104 (4,490,349) (4,490,349)
ECONOMIC ENVIRONMENT 5,209,954 2,786,178 73,540 (2,350,236) (2,350,236)
INTEREST ON LONG -TERM DEBT 1,038,851 (1,038,851) (1,038,851)
Total Governmental Activities
58,287,017 6,212,911 3,289,818 16,947,529 (31,836,759)
- (31,836,759)
BUSINESS -TYPE ACTIVITIES:
WATER 4,949,381 5,762,267 83,776 896,663 896,663
SEWER 5,471,683 7,383,864 - 248,946 - 2,161,126 2,161,126
SURFACE WATER 2,563,132 3,913,184 6,221 1,356,273 1,356,273
FOSTER GOLF COURSE 1,707,993 1,404,264 - - - (303,729) (303,729)
Total Business -Type Activities 14,692,189 18,463,578 - 338,943 - 4,110,332 4,110,332
TOTAL PRIMARY GOVERNMENT
$ 72,979,205 $ 24,676,490 $ 3,289,818 $ 17,286,471 $ (31,836,759) $ 4,110,332 $ (27,726,426) $
GENERAL REVENUES:
TAXES
PROPERTY TAXES $ 14,510,241 $ - $ 14,510,241 $
RETAIL SALES AND USE TAXES 16,316,398 16,316,398
NATURAL GAS USE TAX 204,457 204,457
HOTEL/MOTEL TAXES 526,832 - 526,832
UTILITY TAXES 3,879,992 3,879,992
INTERFUND UTILITY TAXES 1,686,859 1,686,859
BUSINESS TAXES 2,570,111 - 2,570,111
EXCISE TAXES 2,745,475 2,745,475
STATE ENTITLEMENTS 1,861,511 - 1,861,511
UNRESTRICTED INVESTMENT EARNINGS 102,486 102,486
MISCELLANEOUS 304,704 304,704
TRANSFERS 1,060,650 (1,060,650) 0
TOTAL GENERAL REVENUES
45,769,716 (1,060,650) 44,709,066
CHANGE IN NET POSITION
13,932,957 3,049,682 16,982,640
NET POSITION - BEGINNING
RESTATBsIENT FOR BLENDED COMPONENT UNIT
226,150,953 64,353,504 290,504,457 1,737,441
1,737,441 1,737,441 (1,737,441)
NETPOSITON - BEGINNINGRESTATED 227,888,394 64,353,504 292,241,898
CHANGE IN ACCOUNTING PRINCIPLE (249,721) (66,661) (316,382)
PRIOR PERIOD ADJUSTMENT (3,450,134) 2,014,051 (1,436,083)
NET POSITION - BEGINNING RESTATED 224,188,538 66,300,894 290,489,433
NET POSITION- ENDING $ 238,121,496 $ 69,350,577 $ 307,472,073 $
The notes to the financial statements are an integral part of this statement.
33
CITY OF TUKWILA: 2013 CAFR
BASIC FINANCIAL STATEMENTS
34
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
MAJOR GOVERNMENTAL FUNDS
General Fund
The general fund accounts for all of the City's financial resources except those
required by statute or generally accepted accounting principles to be accounted for
in another fund. As is the case with most municipalities, the general fund is the
largest and most important accounting entity of the City. As noted in the statements
that follow, the general fund receives the bulk of its revenues from local taxes,
followed by State shared revenues, service charges, and other income.
The general fund is accounted for on a modified accrual basis. Biennial budgets are
adopted with appropriations lapsing at the end of each year of the biennium.
Arterial Street Fund
This fund is supported by the State's one -half cent gas tax and is used for major
street construction.
Land Acquisition, Recreation and Park Development Fund
This fund is to be used for the acquisition of land, development of land, and
construction of park facilities. Street, utility, golf course improvements, or general
government facilities improvements are not included in this fund.
Local Improvement District #33
This fund accounts for assessment payments related to Local Improvement District
#33 and provides payment to the Fiscal Agent for principal and interest on bonds
issued in November 2013.
Metropolitan Park District
The Metropolitan Park District is a component unit of the City of Tukwila, which
operates pool programs within the City and the District.
35
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2013
LANDACQ. LOCAL METROPOLITAN OTHER TOTAL
GENERAL ARTERIAL REC & PARK IMPROVEMENT PARK GOVERNMENTAL GOVERNMENTAL
FUND STREET DEVELOPMENT DISTRICT #33 DISTRICT FUNDS FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 13,550,093 $ 769,736 $ 1,159,366 $ 17,681 $ 407,664 $ 5,610,806 $ 21,515,345
RECEIVABLES:
TAXES 4,843,959 43,254 147 110,363 4,997,723
CUSTOMER ACCOUNTS 279,798 306 151,642 431,746
CURRENT ASSESSMENT 444,710 444,710
INTEREST 3,050 - 3,050
INTERFUND LOAN RECEIVABLE 199,340 - 199,340
DUE FROM OTHER GOVERNMENTAL UNITS 200,254 601,101 112,204 3,059 30,943 947,561
RESTRICTED ASSETS:
CASH AND CASH EQUIVALENTS - 397,420 - - - 397,420
SPECIAL ASSESSMENT RECEIVABLE - 6,242,835 - - 6,242,835
ADVANCES TO OTHER FUNDS 1,743,362 1,743,362
TOTAL ASSETS $ 20,819,855 $ 1,811,511 $ 1,271,717 $ 6,705,225 $ 411,028 $ 5,903,755 $ 36,923,091
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES:
LIABILITIIES:
ACCOUNTS PAYABLE 763,141 698,709 50,983 - 18,019 109,148 1,640,000
ACCRUED WAGES & BENEFITS 1,362,613 17,267 345 - 13,078 19,407 1,412,710
OTHER CURRENT LIABILITIES 123,038 500 3,176 100,000 226,714
REVENUE COLLECTED IN ADVANCE 186,857 17,681 229 204,767
INTERFUND LOAN PAYABLE - 199,340 - 199,340
ADVANCES FROM OTHER FUNDS 1,743,362 1,743,362
TOTAL LIABILITIES 2,435,649 715,976 51,828 17,681 1,977,203 228,555 5,426,892
DEFERRED INFLOW OF RESOURCES:
UNAVAILABLE REV ENUE- SPECIALASSESSMENT - 6,687,544 - 6,687,544
NON - EXCHANGE REVENUE RECEIVED IN ADVANCE 515,333 - - - 515,333
UNAVAILABLEREVENUE -OTHER 582,886 - - - - 582,886
TOTAL DEFERRED INFLOW OF RESOURCES 1,098,220 6,687,544 7,765;764
FUND BALANCES:
NONSPENDABLE 1,743,362 1,743,362
RESTRICTED FOR
HOTEL MOTEL TAX - 714,946 714,946
RESIDENTIAL STREET IMPROVEMENTS 1,185,955 1,185,955
ARTERIAL STREET CAPIAL IMPROVEMENTS 397,420 - - 397,420
DRUG INVESTIGATION AND ENFORCEMENT - - - - 75,609 75,609
FIRE IMPROVEMENTS 437,222 437,222
DEBT SERVICE GUARANTY FUND 668,849 668,849
ASSIGNED FOR
ARTERIAL STREET 698,115 698,115
LANDACQ. REC& PARK DEVELOPMENT - 1,219,890 1,219,890
FACILITY REPLACEMENT - - - 1,902,602 1,902,602
GENERAL GOVERNMENT IMPROVEMENTS - - 451,755 451,755
RESIDENTIAL STREET IMPROVEMENTS - - - 230,000 230,000
PUBLIC SAFETY EQUIPMENT 225,000 - - - - - 225,000
DEBT SERVICE - - - - 8,261 8,261
UNASSIGNED 15,317,624 - (1,566,175) 13,751,448
TOTAL FUND BALANCES 17,285,986 1,095,535 1,219,890 - (1,566,175) 5,675,199 23,710,435
TOTAL LIABILITIES, DEFERRED INFLOWS AND
FUND BALANCES $ 20,819,855 $ 1,811,511 $ 1,271,717 $ 6,705,225 $ 411,028 $ 5,903,755 $ 36,923,091
The notes to the financial statements are an integral part of this statement.
36
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2013
TOTAL
GOVERNMENTAL
FUNDS
Total governmental fund balances as reported on this statement $ 23,710,435
Amounts reported for governmental activities in the statement of net position are different because:
The purchases method is used in Governmental Funds to account for Materials and Supplies - Inventory
amount outstanding. 194,845
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds.
Governmental funds assets 218,617,727
Internal service fund assets 4,432,951 223,050,679
The net pension asset resulting from contributions in excess of the annual required contribution are not
financial resources and therefore is not reported in the funds. 380,893
The City has an equity interest in two joint ventures. This equity interest for the provision of governmental services
is not a current financial resource and therefore is not reported in the funds. 10,427,892
Unavailable revenue reported for propertytaxes that are current and prior year tax levies that were not collected
and available to pay current year liabilities
Unavailable revenue reported for special assessment
582,886
6,687,544 7,270,431
Some liabilities are not due and payable in the current period and therefore are not reported in the funds.
Long Term Liabilities Due Within One Year (2,288,988)
Long Term Liabilities Due in More Than One Year (23,126,768)
Due to Other Governmental Units (7,021,600)
Unfunded Other Post Employment Benefits (4,561,781)
Accrued Interest Payable (53,700)
Deferred charge on refunding 524,100 (36,528,737)
Internal service funds are used by management to charge the cost of certain activities, such as
health insurance and fleet maintenance, to individual funds. The assets and liabilities of these
internal service funds are included in governmental activities in the statement of net position.
Net position of government activities as reported on the statement of net position
The notes to the financial statements are an integral part of this statement.
37
9,615,058
$ 238,121496
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2013
LAND ACQ. LOCAL METROPOLITAN OTHER TOTAL
GENERAL ARTERIAL REC &PARK IMPROVEMENT PARK GOVERNMENTAL GOVERNMENTAL
FUND STREET DEVELOPMENT DISTRICT #33 DISTRICT FUNDS FUNDS
REVENUES:
TAXES $ 40,615,890 $ 349,560 $ 228,501 $
LICENSES AND PERMITS 2,013,875
INTERGOVERNMENTAL 4,719,583 1,545,665 271,562
CHARGES FOR SERVICES 2,202,307 270,446 25,661
FINES AND FORFEITURES 242,638
INVESTMENT EARNINGS 108,053 5,650 1,904
SPECIAL ASSESSMENTS
MISCELLANEOUS 110,317 231,086
TOTAL REVENUES 50,012,664 2,402,407 527,627
$ 681,288 $ 526,832 $ 42,402,070
2,013,875
3,059 650,456 7,190,325
226,709 1,022,524 3,747,646
242,638
36,303 151,911
2,788,350 2,788,350
3,044 82,922 427,368
2,788,350
914,100 2,319,036 58,964,183
EXPENDITURES:
CURRENT.
GENERAL GOVERNMENT 9,266,330 - - - - 37,411 9,303,742
PUBLIC SAFETY 25,650,155 - - 70,729 25,720,884
PHYSICAL ENVIRONMENT 1,766,087 - - 169,808 1,935,895
TRANSPORTATION 2,759,506 351,987 - - - 3,111,493
ECONOMIC ENVIRONMENT 3,893,111 1,331,852 5,224,964
CULTURE AND RECREATION 3,631,819 91,753 - 662,820 4,386,392
DEBT SERVICE
PRINCIPAL - - - - 5,024,991 5,024,991
INTEREST - 39,016 1,123,633 1,162,649
CAPITAL OUTLAY 250,482 3,808,636 306,173 - 739,109 750,561 5,854,962
TOTAL EXFBNDITURES 47,217,490 4,160,623 397,926 - 1,440,946 8,508,985 61,725,970
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER) EXPENDITURES 2,795,173 (1,758,216) 129,702 2,788,350 (526,846) (6,189,949) (2,761,786)
OTHER FINANCING SOURCES (USES):
TRANSFERS IN
TRANSFER IN - ASSESSMENT
TRANSFERS OUT
GO BONDS ISSUED
ASSESSMENT BONDS ISSUED
PROCEEDS FROM SALES OF CAPITAL ASSETS
TOTAL OTHER FINANCING SOURCES AND
USES
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
CHANGE IN ACCOUNTING PRINCIPLE
PRIOR PERIOD ADJUSTMENT
FUND BALANCES - BEGINNING AS RESTATED
FUND BALANCES - ENDING
14,919,606 1,650,000 - - 1,100,048 3,249,329 20,918,983
2,788,350 - 2,788,350
(10,662,843) (8,500,000) (2,788,350) (1,100,048) (250,276) (23,301,516)
1,000,000 1,000,000
6,018,750 668,750 6,687,500
5,493 - 5,493
5,262,256 1,957,100
8,057,430 198,884 129,702
8,378,557 483,331 1,090,188
850,000
413,321
9,228,557 896,651 1,090,188
(2,788,350)
3,667,803 8,098,809
(526,846) (2,522,146) 5,337,023
(189,329) 8,197,345 17,960,092
(850,000)
413,321
(1,039,329) 8,197,345 18,373,412
$ 17,285,986 $ 1,095,535 $ 1,219,890 $ - $ (1,566,175) $ 5,675,199 $ 23,710,435
The notes to the financial statements are an integral part of this statement.
38
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2013
Net change in fund balances per the Statement of Revenues, Expenditures, and Changes in Fund Balances
Amounts reported as change in net position in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. In the current period, these amounts are:
Capital Outlay
Depreciation Expense
$ 5,337,023
5,854,962
(6,538,166) (683,204)
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade -ins, and
donations) is to decrease net position.
Contributed capital assets 5,432,639
Net book value of disposed assets (532,340)
Net book value of equipment contributed to internal service fund (1,257,928) 3,642,371
The net pension asset (negative net pension obligation) amortization amount is not a financial
resource and therefore not reported in the funds.
The City has equity interests in two joint ventures. The equity interests for the provision of governmental
services are not current financial resources and therefore are not reported in the funds.
Repayment of long -term debt is reported as an expenditure in governmental funds, but the repayment
reduces long -term liabilities in the statement of net position. In the current year, these amounts
consist of:
Bond Principal Retirement
Issuance premium amortization
Bond proceeds provide current financial resources to governmental funds, but issuing debt
increases long -term liabilities in the Statement of Net Position.
Special Assessment Bonds
General Obligation Bonds -MPD
44,541
332,431
5,024,991
143,552 5,168,543
(6,687,500)
(1,000,000) (7,687,500)
Internal service funds are used by management to charge the cost of certain activities to individual funds.
The net revenue (expense) of certain internal service funds is reported with governmental activities.
Capital contribution of equipment from governmental fund 1,257,928
Other net revenue 106,010 1,363,938
Because some revenues will not be collected for several months after the Citys fiscal year ends,
they are not considered "available" revenues in the government funds. Unavailable revenues
increased bythis amount this year.
Miscellaneous receivables 250,647
Property taxes 38,295
Special Assessment 6,687,544 6,976,486
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
These activities consist of:
Decrease in Accrued Interest
Amortization of deferred charge on bond refunding
Increase in Compensated Absences
Increase in Unfunded Other Post Employment Benefits
Other -Park District
Decrease in inventory
Total Additional Expense (Increase) Decrease
15,485
(74,256)
(169,192)
(128,455)
(10,408)
(194,846)
(561,672)
Change in net position on the Statement of Activities $ 13,932,957
The notes to the financial statements are an integral part of this statement.
39
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
40
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed and
operated in a manner similar to private business operations. The goods and
services these funds provide to the general public are primarily financed by service
charges. Enterprise funds are self- supporting and use the accrual method of
accounting. Tukwila has four major enterprise funds.
Water Utility Fund
This fund accounts for all maintenance, construction, and debt service requirements
associated with the water system.
Sewer Utility Fund
This fund accounts for all maintenance, construction, and debt service requirements
associated with the sanitary sewer system.
Foster Golf Course Fund
Accounts for services, maintenance, operations, and debt service requirements
associated with the Foster Golf Course.
Surface Water Utility Fund
This fund accounts for the maintenance, construction and debt service requirements
of Tukwila's storm drainage system.
41
3,178,672 13,159,400 7,467,585 32,167,342 65,972,999 4,432,951
9,904,993
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2013
r
GOVERNMENTAL
FOSTER SURFACE TOTAL ACTIVITIES
WATER SEWER GOLF WATER ENTERPRISE INTERNAL
UTILITY UTILITY COURSE UTILITY FUNDS SERVICE FUNDS
CURRBJT ASSETS:
CASH AND CASH EQUIVALBJTS $ 3,951,346 $ 2,628,239 $ 478,346 $ 2,575,395 $ 9,633,326 $ 6,429,460
INVESTMENTS 2,078,276 - 2,078,276 5,085,228
RECEIVABLES:
CUSTOMER ACCOUNTS 427,404 647,787 5,127 212,321 1,292,639
INTEREST ON INVESTMENTS 1,742 40,483 42,224 44,798
DUE FROM OTHER GOVERNMENTAL UNITS 47,387 47,387 -
INVENTORY OF MATERIALS AND SUPPLIES 250,180 51,826 247,162 48,379 597,547 13,335
CURRENT ASSETS RESTRICTED:
CASH AND CASH EQUIVALENTS 19,115 58,780 77,895
TOTAL CURRENT ASSETS 6,726,321 3,329,594 789,415 2,923,964 13,769,294 11,572,822
NONCURRENT ASSETS:
RESTRICTED CASH, CASH EQUIVALENTS
NOTES RECEIVABLE
CAPITAL ASSETS:
LAND AND INTANGIBLE ASSETS
BUILDINGS AND EQUIPMENT
OTHER IMPROVEMENTS
MACHINERY AND EQUIPMENT
CONSTRUCTION IN PROGRESS
LESS: ACCUMULATED DEPRECIATION
TOTAL CAPITAL ASSETS (NET OF
ACCUMULATED DEPRECIATION)
TOTAL NONCURRENT ASSETS
266,713 126,834
87,347
1,416,567
19,868,170
820,244
226,623
(9,506,992)
12,911,959
1
TOTAL ASSETS 1
36,897 430,444
403,041 403,041
69,525
3,333,973
14,586,442
1,242,767
491,922
(7,095,104)
12,629,525
1,609,575
6,627,496
3,559,992
163,358
(4,492,836)
7,467,585
471,311
1,165,129
41,132,401
34,979
2,385,715
(13,059,090)
32,130,445
2,237,758
12,543,165
79,147,004
2,261,349
3,104,260
(34,154,022)
65,139,514
12,264,907
1,304,333
(9,136,288)
4,432,951
16,488,994
8,257,000 35,091,306
79, 742, 293 16, 005, 773
LIABILITIES:
CURRENT LIABILITIES:
ACCOUNTS PAYABLE 9,806 50,989 6,158 536,315 603,268 55,395
RETAINAGE PAYABLE 7,616 19,830 27,446
ACCRUED WAGES AND BENEFITS 27,213 21,125 33,649 38,311 120,298 18,868
DUE TO OTHER GOVERNMENTAL UNITS 95,080 192,261 270,953 558,293
OTHER CURRENT LIABILITIES 4,620 478 5,098 1,883,500
REVENUE RECEIVED IN ADVANCE 3,530 129 16,890 20,549
REVENUE BOND PRINCIPAL 391,400 86,800 16,800 495,000
DEPOSITS 44,011 10,627 53,898 8,398 116,934
TOTAL CURRENT LIABILITIES 571,040 374,038 94,312 907,496 1,946,886 1,957,763
NONCURRENT LABILTTIES:
REVENUE BONDS PAYABLE 966,006 1,390,679 269,164 2,625,848
(NET OF UNAMORTIZED PREMIUMS)
COMPENSATED ABSENCES 99,616 38,363 85,112 91,114 314,205
OTHER LONG-TERM LIABILITIES 907,435 1,922,608 2,674,735 5,504,778
TOTAL NONCURRENT LABILMES 1,973,056 3,351,649 85,112 3,035,013 8,444,830
TOTAL LIABILITIES 2,544,097 3,725,688 179,424 3,942,509 10,391,717 1,957,763
NET POSITION:
NET INVESTMENT IN CAPITAL ASSETS 10,552,038 9,037,178 7,467,588 28,898,793 55,955,595 4,432,952
RESTRICTED FOR:
DEBT SERVICE 266,713 126,834 36,897 430,444
UNRESTRICTED 6,542,145 3,599,294 609,988 2,213,107 12,964,539 9,615,058
TOTAL NET POSITION $ 17,360,896 $ 12,763,306 $ 8,077,576 $ 31,148,798 $ 69,350,577 $ 14,048,010
The notes to the financial statements are an integral part of this statement.
42
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2013
GOVERNMENTAL
FOSTER SURFACE TOTAL ACTIVITIES
WATER SEWER GOLF WATER ENTERPRISE INTERNAL
UTILITY UTILITY COURSE UTILITY FUNDS SERVICE FUNDS
OPERATING REVENUES:
CHARGES FOR SERVICES $ 5,747,733 $ 7,366,555 $ 1,399,015 $ 3,865,438 $ 18,378,740 $ 6,968,697
OTHER OPERATING REVENUE - - - 77,142
TOTAL OPERATING REVENUES 5,747,733 7,366,555 1,399,015 3,865,438 18,378,740 7,045,839
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE 3,408,640 4,037,448 1,342,253 1,027,907 9,816,247 6,755,040
ADMINISTRATIVE AND GENERAL 136,484 149,903 - 305,181 591,568
TAXES 816,564 841,585 63,609 440,356 2,162,114
DEPRECIATION AND AMORTIZATION 511,630 365,998 302,131 761,614 1,941,373 886,201
TOTAL OPERATING EXPENSES 4,873,318 5,394,934 1,707,993 2,535,057 14,511,302 7,641,241
OPERATING INCOME (LOSS) 874,415 1,971,621 (308,978) 1,330,380 3,867,438 (595,402)
NON - OPERATING REVENUE (EXPENSE):
INVESTMENT EARNINGS 13,898 3,265
INTEREST EXPENSE (84,045) (78,201)
GAIW(LOSS) FR DISPOSAL OF CAPITAL ASSETS (1,446) (3,184)
AMORTIZATION OF BOND PREMIUM 8,972 1,825
AMORTIZATION OF BOND DISCOUNT (989) (374)
OTHER NON - OPERATING REVENUE 2,082 17,228
TOTAL NON - OPERATING REVENUE(IXPENSE) (61,528) (59,440)
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 812,887 1,912,181
5,249
5,249
(303,729)
4,728 27,139
(28,428) (190,673)
(937) (5,567)
353 11,150
(1,363)
16,569 35,879
(7,715) (123,435)
1,322,665 3,744,003
(19, 365)
65,943
46,578
(548,824)
CAPITAL CONTRIBUTIONS 83,776 248,946 - 33,608 366,330 1,257,928
TRANSFERS IN 103,680 400,000 - 503,680 1,030,000
TRANSFERS OUT (511,447) (385,141) (192,801) (474,941) (1,564,330) (375,166)
CHANGE IN NET POSITION 488,896 1,775,986 (96,530) 881,332 3,049,684 1,363,938
TOTAL NET POSU1ON BEGINNING OF YEAR 18,333,285 11,022,056 8,174,106 26,824,055 64,353,503 12,684,072
CHANGE IN ACCOUNTING PRINCIPLE (25,201) (34,737) - (6,723) (66,661)
PRIOR PERIOD ADJUSTMENT (1,436,082) - 3,450,134 2,014,052
TOTAL NET POSTITON BEGINNING OF YEAR 16,872,001 10,987,319 8,174,106 30,267,466 66,300,892 12,684,072
AS RESTATED
TOTAL NET POSITTON END OFYEAR $ 17,360,896 $ 12,763,306 $ 8,077,576 $ 31,148,798 $ 69,350,577 $ 14,048,010
The notes to the financial statements are an integral part of this statement.
43
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2013
Page 1 of 2
GOVERNMENT
FOSTER SURFACE TOTAL ACTIVITIES
WATER SEWER GOLF WATER ENTERPRISE INTERNAL
UTILITY UTILITY COURSE UTILITY FUNDS SERVICE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM CUSTOMERS
CASH RECEIVED SERVICE REIMBURSEMENT
CASH PAID TO SUPPLIERS
CASH PAID FOR TAXES
CASH PAID TO EMPLOYEES
OTHER CASH RECEIVED (PAID)
$ 5,586,065 $ 7,356,950 $ 1,396,925 $ 3,832,638 $ 18,172,579 $ 7,046,234
1,388,498 1,388,498
(2,734,359) (4,013,428) (326,951) (4,810) (7,079,548) (6,200,369)
(816,564) (841,585) (146,689) (388,189) (2,193,026)
(826,932) (427,152) (913,858) (961,258) (3,129,200) (526,806)
4,470 4,470 31,000
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
2,596,708 2,074,786 13,897 2,478,381 7,163,773 35f1,060
CASH FLOWS FROM NONCAPITAL RNANCING ACTIVITIES:
TRANSFERS IN 103,680 400,000 503,680 1,030,000
TRANSFERS OUT (511,447) (385,141) (192,801) (474,941) (1564,330) (375,166)
NET CASH PROVIDED (USED) BY NON -
CAPITAL FINANCING ACTIVITIES
(407,767) (385,141) 207,199 (474,941) (1,060,650) 654,834
CASH FLOWS FROM CAPITAL AND RELATED RNANCING ACTIVITIES:
PROCEEDS FROM SALE OF EQUIPMENT
PURCHASE OF CAPITAL ASSETS
CONTRIBUTED CAPITAL
CAPITAL GRANTS
PRINCIPAL PAYMENT ON DEBT
INTEREST PAYMENT ON DEBT
(55,071)
83,776
(460,180)
(93,509)
(433,174)
248,946
(275,961)
(79,334)
(1,046,185)
27,605
(287,153)
(29,159)
(1,534,429)
332,722
27,605
(1,023,293)
(202,003)
94,490
(2,044,013)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES
(524,984) (539,523) (1,334,891) (2,399,398) (1,949,523)
CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF INVESTMENTS 3,450,000 3,450,000 401,949
PURCHASE OF INVESTMENTS (2,078,276) (2,078,276) (228,540)
INTEREST RECEIVED 15,980 20,493 5,249 12,178 53,900 2,168
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 1,387,704 20,493 5,249 12,178 1,425,624 175,577
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
PRIOR PERIOD -CASH USED TOACCQUIRE ASSETS
RESTATED CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS -END OF YEAR
3,051,661 1,170,615 226,345 680,726 5,129,347 (769,052)
(413,321) (413,321)
3,051,661 1,170,615 226,345 267,405 4,716,026 (769,052)
1,185,512 1,584,458 310,781 2,344,887 5,425,638 7,198,512
$ 4,237,174 $ 2,755,073 $ 537,126 $ 2,612,292 $ 10,141,665 $ 6,429,460
CASH AT END OF YEAR CONSISTS OF:
CASH AND CASH EQUIVALENTS $ 3,951,346 $ 2,628,239 $ 478,346 $ 2,575,395 $ 9,633,326 $ 6,429,460
RESTRICTED CASH -BOND PAYMENTS 266,713 126,834 - 36,897 430,444
RESTRICTED CASH- CUSTOMER DEPOSITS 19,115 - 58,780 - 77,895
TOTAL CASH $ 4,237,174 $ 2,755,073 $ 537,126 $ 2,612,292 $ 10,141,665 $ 6,429,460
The notes to the financial statements are an integral part of this statement
44
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2013
Page 2 of 2
GOVERNMENT
FOSTER SURFACE TOTAL ACTIVITIES
WATER SEWER GOLF WATER ENTERPRISE INTERNAL
UTILITY UTILITY COURSE UTILITY FUNDS SERVICE FUNDS
RECONCILIATION OF NET OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
OPERATING INCOME (LOSS)
87441.5 J._,1,971,621 $ (308,978) $ 1,330,380 $ 3,867,438 $ (595,402)
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 511,630 365,998 302,131 761,614 1,941,373 886,201
ASSET (INCREASES) DECREASES :
ACCOUNTS RECEIVABLE (46,434) (13,779) 1,708 (37,057) (95,561)
MISCELLANEOUS A/R-REVENUE 1,261,696 4,175 (854) 1,265,017 395
INVENTORY (9,672) 369 8,817 953 467 (1,016)
LIABILITY INCREASES (DECREASES) :
ACCOUNTS& VOUCHERS PAYABLE (12,658) (254,924) 4,474 411,650 148,542 58,906
OTHER LIABILITIES PAYABLE (1,512) - (1,512)
DEPOSITS PAYABLE 13,080 1,526 14,606
WAGES & BENEFITS PAYABLE 313 5,946 3,994 819 11,073 976
COMPENSATED ABSENCES PAYABLE 5,849 (4,620) 1,079 10,022 12,330
TOTAL ADJUSTMENTS 1,722,293 103,165 322,876 1,148,001 3,296,335 945,461
NET CASH PROVIDED (USED) BY OPERATING ACTMTIES $ 2,596,708 $ 2,074,786 $ 13,897 $ 2,478,381 $ 7,163,773 $ 350,060
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
CAPITAL ASSETS ACQUIRED BY CONTRIBUTED CAPITAL $ - $ - $ - $ 6,221 $ 6,221 $ 1,257,928
INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT 231,092
TOTAL NON CASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
$ S $ 6,221 $ 6,221 $ 1,489,020
The notes to the financial statements are an integral part of this statement.
45
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
46
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by the City of Tukwila as a
trustee or agent for various individuals, private organizations, and other
governmental units. The Firemen's Pension Trust Fund is accounted for on an
accrual basis.
Firemen's Pension Trust Fund
This fund accounts for the payment of administrative costs and benefits for retired
firefighters (and beneficiaries) who were employed prior to March 1, 1970. Primary
revenue sources are general property tax allocations, fire insurance premium tax,
and investment interest, in accordance with actuarial recommendations.
Agency Fund
This fund accounts for the funds over which the City is strictly a short -term
custodian.
47
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF FIDUCIARY NET POSITON
FIDUCIARY FUND
DECEMBER 31, 2013
FIREMEN'S
PENSION AGENCY
TRUST FUND FUND
ASSETS:
CASH AND CASH EQUIVALENTS $ 1,408,970 $ 177,206
RECEIVABLES:
CUSTOMER ACCOUNTS - $ 2,934
TOTAL ASSETS 1,408,970 180,140
LIABILITIES:
CURRENT PAYABLES
TOTAL LIABILITIES
- 180,140
180,140
NET POSITION:
HELD IN TRUST FOR PENSION BENEFITS AND OTHER PURPOSES $ 1,408,970 $
The notes to the financial statements are an integral part of this statement.
48
CITY OF TUKWILA: 2013 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUND
FOR THE YEAR ENDED DECEMBER 31, 2013
FIREMEN'S
PENSION
TRUST FUND
ADDITIONS:
OTHER CONTRIBUTIONS:
FIRE INSURANCE PREMIUM TAXES $ 56,962
INVESTMENT EARNINGS 2,421
TOTAL ADDITIONS 59,383
DEDUCTIONS:
BENEFIT PAYMENTS 58,277
ADMINISTRATIVE EXPENSES 7,775
TOTAL DEDUCTIONS 66,052
CHANGE IN NET POSITION (6,669)
NET POSITION - BEGINNING 1,415,638
NET POSITION - ENDING $ 1,408,970
The notes to the financial statements are an integral part of this statement.
49
CITY OF TUKWILA: 2013 CAFR
BASIC FINANCIAL STATEMENTS
50
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2013
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Tukwila was incorporated on June 29, 1908, and operates under the laws of the State of
Washington applicable to a non - charter optional code city with a Mayor /Council form of government.
Tukwila is served by a Mayor and seven council members, all elected at large to four -year terms. The
City provides what are considered general government services including public safety, streets, parks,
planning and zoning, permits and inspection, general administrative, water services, sanitary sewer
collection, and storm drainage.
The accounting and reporting policies of the City of Tukwila conform to generally accepted accounting
principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is
the accepted standard setting body for establishing governmental accounting and financial reporting
principles. The City's significant accounting policies are described in this note.
A. The Reporting Entity
As required by generally accepted accounting principles the financial statements present the City and
its component unit, an entity for which the government is considered to be financially accountable. The
component unit discussed below is included in the reporting entity because of the significance of its
operational or financial relationship with the City.
See Note 8, Joint Ventures, for a discussion of Valley Communications Center, which is a joint public
safety dispatching authority for five member cities, and South Correctional Entity (SCORE), which is a
governmental administrative agency. Also, see Note 14, Risk Management, for a discussion of the
Washington Cities Insurance Authority.
The City of Tukwila is a party to the following interlocal agreements;
• Cascade Water Alliance
• Jail Administration Group
• Valley Narcotics Enforcement Team
• Valley Special Weapons and Tactics Team
• Valley Civil Disturbance Unit
• Metropolitan Park District
• Regional Animal Services of King County
• City of Sea Tac Probation Services
• King County Reclaimed Water
• eCity.gov Alliance
The organizations above are separate entities in the State of Washington whereby the City may enter
into these agreements pursuant to, and as authorized by, the Interlocal Cooperation Act under RCW
39.34. The City of Tukwila is not financially accountable to these organizations, none of the
organizations have an ongoing financial interest in the City, and the City is not financially dependent
upon these organizations.
51
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Blended Component Unit
The Tukwila Metropolitan Park District (District) was formed on August 16, 2011. The City Council of
the City of Tukwila is authorized pursuant to RCW 35.61.050 to serve in an ex- officio capacity as the
Board of Metropolitan Park Commissioners. Through this shared governance, it is a component unit of
the City. The Metropolitan Park District provides a benefit to the citizens of Tukwila serving the
community as a multigenerational facility that provides health and recreation benefits to all ages.
Component units are legally separate entities but so closely related to the City through shared
governance that their exclusion would cause the City's financials to be misleading or incomplete.
The District is a component unit of the City of Tukwila, which operates pool programs within the City
and the District. When the District was formed in 2011, it was reported on the City's financial
statements as a discretely presented component unit and was shown as a separate column in the
govern -wide financial statements. However, with the implementation of GASB Statement No. 61, The
Financial Reporting Entity: Omnibus, the District is now reported as blended and is shown as a major
fund in the Basic Financial Statements section. The component unit's fund is blended into those of the
City by appropriate activity type to compose the primary government presentation. Requests for the
District's separately issued financial statements may be addressed to the Finance Director, City of
Tukwila, 6200 Southcenter Blvd., Tukwila, WA 98188 -2544.
B. Basis of Presentation
The City's basic financial statements consist of government -wide statements, including a statement of
net position and a statement of activities, and fund financial statements which provide a more detailed
level of financial information.
Government -wide Financial Statements
The statement of net position and the statement of activities display information about the City and its
component unit. These statements include the financial activities of the government, except for fiduciary
funds. The activity of the internal service funds is eliminated to avoid "doubling up" revenues and
expenses.
The statements distinguish between governmental activities and business -type activities.
The statement of net position presents the financial condition of the governmental and business -type
activities of the City at year -end. The statement of activities presents a comparison between direct
expenses and program activity of the City. Direct expenses are those specifically associated with a
service, program or department and therefore clearly identifiable to a particular function. Indirect costs
are included in the program expense reported for individual functions and activities.
The statement of activities reports the expenses of a given function offset by program revenues directly
connected with the functional program. A function is an assembly of similar activities and may include
portions of a fund or summarize more than one fund to capture the expenses and program revenues
associated with a distinct functional activity. Program revenues include charges paid by the recipient of
the goods or services offered by the program, grants and contributions that are restricted to meeting the
operational or capital requirements of a particular program and interest earned on grants that is
required to be used to support a particular program.
For identifying to which function program revenue pertains, the determining factor for charges for
services is which function generates the revenue. For grants and contributions, the determining factor is
to which functions the revenues are restricted.
52
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Revenues which are not classified as program revenues are presented as general revenues of the City,
and certain limited exceptions. The comparison of direct expenses with program revenues identifies the
extent to which each business segment or governmental function is self- financing or draws from the
general revenues of the City.
Fund Financial Statements
During the year, the City segregates transactions related to certain City functions or activities in
separate funds in order to aid financial management and to demonstrate legal compliance. Fund
financial statements are designed to present financial information of the City at this more detailed level.
The focus of governmental and enterprise fund financial statements is on major funds. Each major fund
is presented in a separate column. Non -major funds are aggregated and presented in a single column.
Internal service funds are combined and the totals are presented in a single column on the face of the
proprietary fund statements. Fiduciary funds are reported by type. While fiduciary funds are excluded
from the government -wide statements, they are included in the fund financial statements.
C. Fund Accounting
The accounts of the City are organized on the basis of funds each of which is considered a separate
accounting entity. Each fund is accounted for with a separate set of self - balancing accounts that
comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. The
City's resources are allocated to and accounted for in individual funds according to the purpose for
which they are spent and how they are controlled. There are three categories of funds: governmental,
proprietary and fiduciary.
Governmental Funds
All governmental funds are accounted for on a "flow of current financial resources" measurement focus.
This means only current assets and current liabilities are generally included on their balance sheets.
Their reported fund balance (net current assets) is considered a measure of "available spendable
resources." Governmental fund operating statements focus on measuring changes in financial position,
rather than net income; they present increases (revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets. The following are the City's major
governmental funds:
• The General Fund is the general operating fund of the City. It accounts for all
financial resources and transactions except those required to be accounted for in
another fund.
• The Arterial Street Fund was established in accordance with RCW 82.36.020 for the
administration of the State - levied motor vehicle half -cent gasoline tax distributed to
Tukwila and is used primarily to account for capital arterial street projects.
• The Land Acquisition, Recreation and Park Development Fund is used to account for
financial resources to be used for the acquisition of land, development of land, and
construction of park facilities.
• The Local Improvement District (LID) #33 accounts for assessments related to the
LID and provides payment to the Fiscal Agent for principal and interest on bonds
issued in November 2013.
• The Metropolitan Park District is a component unit of the City of Tukwila, which
operates pool programs within the City and the District.
53
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
The other governmental funds of the City, which are Special Revenue Funds, account for the proceeds
of specific revenue sources that are segregated to ensure that expenditures are made exclusively for
qualified purposes.
Proprietary Funds
Proprietary Funds are accounted for on a "flow of economic resources" measurement focus. This
means all assets and all liabilities (whether current or noncurrent) associated with their activity are
included on their balance sheets. Proprietary fund operating statements present increases (revenues
and gains) and decreases (expenses and losses) in net total assets. Proprietary funds measurement
focus is based upon determination of net income, financial position, and cash flows.
Proprietary funds distinguish operating revenues and expenses from non - operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the City's enterprise and internal service funds are charges to the City's customers for sales and
services. Operating expenses for the enterprise funds and internal service funds include the cost of
sales and services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non - operating revenues and expenses. As
described further below, there are two fund types in this category- enterprise and internal service.
Restricted assets shown in the government -wide financial statements and the proprietary funds balance
sheet include monies reserved for payment of revenue bond debt, and deposits held for utility and golf
course customer accounts. When both restricted and unrestricted resources are available for use, it is
the City's policy to use restricted resources first, then unrestricted resources as they are needed.
The City's Enterprise Funds account for utility and golf course operations which are self - supported
through user charges. The utilities are financed and operated like a private business enterprise which
requires periodic determination of revenues earned, expenses incurred, and net income for capital
maintenance, public policy, management control and accountability. The City's major enterprise funds
are as follows:
• Water Utility Fund accounts for operations and capital improvements to provide water
services to the City.
• Sewer Utility Fund accounts for operations and capital improvements to provide
sanitary sewer services to the City.
• Foster Golf Course Fund is used to account for the operation, maintenance, and
improvements of the municipal golf course facility.
• Surface Water Utility Fund accounts for the operations and capital improvements for
the City's storm drainage and surface water management function.
The City has three Internal Service Funds. The Equipment Rental Fund is used to account for the costs
of maintaining and replacing all City vehicles and auxiliary equipment. All equipment costs, including
depreciation, are factors in calculating the rates charged to each user department. The Insurance and
Insurance — LEOFF I Funds are used to account for the costs of the City's self- insured medical plan for
active employees and retired LEOFF I employees respectively. Medical and dental costs for covered
employees are charged to the respective user departments. All premiums, medical and dental costs
and ancillary charges are included.
54
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Fiduciary Funds
Fiduciary Funds account for assets held by the City in a trustee capacity or as an agent for individuals,
private organizations, other governments, and other funds. The City has two Fiduciary Funds,
Firemen's Pension Trust Fund and Agency Fund. The Firemen's Pension Trust Fund is accounted for in
essentially the same manner as Proprietary Funds. The Agency Fund is custodial in nature (assets
equal liabilities) and does not involve a measurement of results of operations. Fiduciary funds are
excluded from the government -wide financial statements.
D. Measurement Focus
Government -wide Financial Statements
The government -wide financial statements are prepared using the economic resources measurement
focus. All assets and liabilities associated with the operation of the City are included on the Statement
of Net Position.
Fund Financial Statements
All governmental funds are accounted for using a flow of current financial resources measurement
focus. With this measurement focus, only current assets and current liabilities generally are included on
the balance sheet. The statement of revenues, expenditures and changes in fund balances reports on
the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other
financing uses) of current financial resources. This approach differs from the manner in which the
government activities of the government -wide financial statements are prepared. Governmental fund
financial statements therefore include a reconciliation with brief explanations to better identify the
relationship between the government -wide statements and statements for governmental funds.
Like the government -wide statements, all proprietary fund types are accounted for on a flow of
economic resources measurement focus. All assets and all liabilities associated with the operation of
these funds are included on the statement of net position. The statement of changes in fund net
position presents increases (i.e., revenues) and decreases (i.e., expenses) in net total assets. The
statement of cash flows provides information about how the City finances and meets the cash flow
needs of its proprietary activities.
Fiduciary funds are reported using the economic resources measurement focus.
E. Basis of Accounting
Basis of accounting refers to the recognition of revenues and expenditures or expenses in the accounts
and reporting them in the financial statements. Government -wide financial statements are prepared
using the accrual basis of accounting. Governmental funds use the modified accrual basis of
accounting. Proprietary and fiduciary funds use the accrual basis of accounting.
Revenues — Exchange and Non - exchange Transactions
Revenue resulting from exchange transactions, in which each party gives and receives essentially
equal value, is recorded on the accrual basis when the exchange takes place. The modified accrual
basis of accounting is followed in all governmental funds of the City. Under the modified accrual basis
of accounting, revenues are recorded when susceptible to accrual, i.e., both measurable and available.
"Measurable" means the amount of the transaction can be determined and "available" means collectible
within the current period or soon enough thereafter to pay current liabilities. For the City, available
means expected to be received within sixty (60) days of year -end. The primary accrued revenues that
meet these criteria are property, sales and utility taxes.
55
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Non - exchange transactions, in which the City receives value without directly giving equal value in
return, include property taxes, sales and use taxes, admission taxes, gambling taxes, utility taxes,
hotel /motel taxes, grants, entitlements, and donations. These revenues are on an accrual basis. On the
accrual basis, the revenue is recognized in the period in which the income is earned. Revenue from
property taxes is recognized in the fiscal year for which the taxes are levied. (See Note 4 on
receivables).
Other Revenue Sources
Revenue sources which are not considered to meet the measurable and available criteria for revenue
recognition include licenses and permits, fines and forfeitures, and other miscellaneous revenues since
they are generally not measurable until received.
Under the modified accrual basis, expenditures are recorded when the fund liability is incurred, except
for principal and interest on general long -term debt and vacation and sick pay which are recorded when
paid.
As a general rule the effect of interfund activity has been eliminated via the process of consolidation
from the government -wide financial statements. Internal service fund and similar internal activity has
been eliminated from the government -wide statement of activities so expenses are not reported twice.
Exceptions to this general rule are payments for interfund services provided and used, such as between
the City's water, sewer, and surface water functions and various other functions of the City, which are
not eliminated in the process of consolidation. Elimination of these charges would distort the direct
costs and program revenues reported for the various functions concerned. Amounts reported on the
government -wide statements as program revenues include, charges to customers or applicants for
goods, operating grants and contributions, and capital grants and contributions. General revenues
include all taxes. The accrual basis of accounting is followed in all proprietary funds. Under the accrual
basis of accounting, revenues are recognized when earned and expenses are recorded when incurred.
All assets and liabilities are recorded in the fund.
F. Budgets and Budgetary Accounting
The City of Tukwila budgets its funds in accordance with the Revised Code of Washington 35A.33. In
compliance with the code, biennial budgets are adopted for the general fund and special revenue funds.
For governmental funds, there are no substantial differences between the budgetary basis and
generally accepted accounting principles. Budgetary accounts are integrated in fund ledgers for all
budgeted funds, but the financial statements include budgetary comparisons for biennially budgeted
governmental funds only. Budgets established for proprietary and fiduciary funds are "management
budgets" and are not legally required to be reported and, as such, are not reported in the CAFR.
The biennial appropriated budgets are adopted at the fund level and the budgets constitute the legal
authority for expenditures at that level. Subsidiary revenue and expenditure records are used to
compare the budgeted amounts with actual revenues and expenditures. As a management control
device, the subsidiary ledgers monitor expenditures for individual functions and activities by object
class. Any unexpended appropriation balances lapse at the end of the biennium.
The City of Tukwila's budget procedures are mandated by RCW 35A.33. The steps in the budget
process are as follows:
1) Prior to November 1 on even numbered years, the Mayor submits a proposed budget
to the City Council. This budget is based on priorities established by the Council and
estimates provided by the City departments during the preceding months, and
balanced with revenue estimates made by the Mayor.
56
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
2) The City Council conducts public hearings on the proposed budget in November and
December.
3) The Council makes its adjustments to the proposed budget and adopts by ordinance
a final balanced budget no later than December 31.
4) The final operating budget as adopted is published and distributed within the first
month of the following year. Copies of the budget are made available to the public.
The City Council must approve by ordinance any amendments that increase the total for the fund.
Budget amounts presented in the basic financial statements include both the original amounts and the
final amended budget as approved by the City Council.
Expenditure Categories
General Government
Public Safety
Includes administration, finance, municipal court, attorney, and
city clerk activities.
Includes all police and fire activities.
Physical Environment Includes expenditures for the public works activities not
chargeable to the enterprise funds.
Transportation Includes all street and arterial street maintenance and
construction.
Economic Environment Reflects the planning and building inspection activities.
Culture and Recreation Includes the parks and recreation activities.
G. Assets, Liabilities and Fund Equity
Cash and Cash Equivalents
All cash and cash equivalents, restricted and unrestricted, consists of cash balances in the checking
account, imprest funds, and the State Treasurer's Local Government Investment Pool. All funds in the
care of other institutions are considered investments. Cash equivalents are short -term, highly liquid
investments that are readily convertible to known amounts of cash.
Investments
Investments are held separately by each of the funds with interest earned directly for the benefit of each
fund. Investments are reported on the financial statements at fair value, cost or amortized cost,
depending on the type and maturity length of each investment as required by GASB Statement 31.
Washington State statutes provide for the City to hold investments consisting of obligations of the
Federal Government, repurchase agreements, prime banker's acceptances, and time certificates of
deposit. Additional deposit and investment information is presented in Note 3.
Notes Receivable
Notes receivable in the enterprise funds consists of sewer connection fees due from customers to the
utility and in the governmental funds, it consists of the current portion of the special assessment
receivable.
57
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Amounts due to and from Other Funds and Governments, Interfund Loans and Advances
Receivable
Activity between funds that is representative of lending /borrowing arrangements outstanding at the end
of the fiscal year are referred to as either "interfund loans receivable /payable" or "advances to /from
other funds." Any residual balances outstanding between the governmental activities and business -type
activities are reported in the government -wide financial statements as "internal balances."
The non - current portion of interfund loans and advances between funds, as reported in the fund
financial statements, are offset by a fund balance unspendable account in applicable governmental
funds to indicate they are not available for appropriation and are not expendable available financial
resources. See Note 5 on interfund transactions.
Special Assessments
Special assessments are amounts levied against benefited properties to recover costs associated with
the construction of local improvement district (LID) projects. A lien is recorded against benefited
properties until the assessment has been paid. Special assessments receivable represent all
outstanding assessment amounts including current assessments billed but not collected, delinquent
assessments unpaid at year -end, and special assessment amounts due in future years, which are
recorded in a deferred inflow of resources account. Since special assessments are secured by liens
against related properties, no allowance for uncollectible amounts is made.
Inventories
Inventories carried in proprietary funds are valued at average cost using the consumption method. A
physical count is taken at year -end. Governmental funds use the purchase method whereby inventory
items are considered expenditures when purchased.
Deferred Outflows /Inflows of Resources
Deferred outflow of resources is a consumption of net position by the government that is applicable to a
future reporting period. Deferred inflow of resources is acquisition of net position by the government
that is applicable to a future reporting period.
Capital Assets and Depreciation
The accounting and reporting treatment applied to the capital assets associated with a fund are
determined by its measurement focus. Capital assets acquired in governmental funds are accounted for
as expenditures in the fund when the asset is purchased. These assets are reported in the
governmental activities column of the government -wide statement of net position but are not reported in
the fund financial statements. Capital assets utilized by the proprietary funds are reported both in the
business -type activities column of the government -wide statement of net position and in the respective
funds.
All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and
retirements during the year. Donated assets are valued at estimated fair market value at time of
acquisition. Where historical cost is not known, assets are recorded at estimated historical costs. The
City maintains a capitalization threshold of five thousand dollars. The City's infrastructure consists of
roads, bridges, storm sewers, water and sewer distribution and collection systems. Improvements are
capitalized; the costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend an asset's life are not.
58
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Depreciation is computed using the straight line method over estimated service lives, as follows:
Asset Estimated Service Life
Buildings 25 to 50 years
Non - Building Improvements 25 to 50 years
Machinery and Equipment 2 to 50 years
Intangibles 2 to 50 years
Infrastructure 25 to 50 years
See Note 7 for additional information on capital assets.
Other Liabilities
These liabilities are current obligations that are due within one year and include accounts payable,
accrued liabilities, and other debts. The Self Insurance fund includes an incurred but not reported
(IBNR) liability of $753,400 determined using actuarial methods. This liability is multiplied by a factor of
2.5 to meet the City's financial goal of maintaining reserves at 1 x IBR for claim fluctuations plus 1.5 x
IBNR for the IBNR liability of $1,883,500.
Compensated Absences
City policy and labor contracts with City of Tukwila employees call for the accumulation of vacation and
sick leave. At termination of employment, employees with the required length of service may receive
cash payments for all accumulated vacation leave to a maximum of 384 hours. Sick leave termination
benefits are based on a percentage of accumulated sick leave up to a maximum of 180 hours. The
payment is based on current wages at termination.
The entire compensated absence liability is reported on the government -wide financial statements. In
the enterprise funds, the entire amount of compensated absences is reported as a fund liability. This
reporting format is in compliance with GASB Statement No. 16.
The current portion reported on the schedule of long -term liabilities is calculated using the last-in- first-
out (LIFO) approach. Prior year activity is used to determine the current year activity. There is no
current portion to report when the prior year leave usage amount is less than the amount of leave
earned during the same period.
59
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund financial
statements, long -term debt and other long -term obligations are reported as liabilities in the applicable
governmental activities, business -type activities, or proprietary fund type statement of net position.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight
line method. Bonds payable are reported net of the applicable bond premium or discount. Issuance
costs, whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
In the fund financial statements, governmental fund types recognize bond premiums and discounts
during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual
debt proceeds received, are reported as debt service expenditures. Long -term debt outstanding at year-
end is outlined in Note 11.
Fund Balance /Net Position
Fund balance represents the difference between the current assets and current liabilities. The City
restricts those portions of fund balance which are legally segregated for a specific future use or which
do not represent available, spendable resources and therefore are not available for general
appropriation or expenditure.
Net position represents the difference between assets and liabilities. Net position invested in capital
assets, net of related debt, consists of capital assets, net of accumulated depreciation, reduced by the
outstanding balances of any borrowing used (i.e., the amount that the City has not spent) for the
acquisition, construction or improvement of those assets. Net position is reported as restricted when
there are limitations imposed on their use either through the enabling legislation adopted by the City or
through external restrictions imposed by creditors, grantors or laws or regulations of other governments.
The remaining balance is reported as unrestricted.
The City applies restricted resources first when an expense is incurred for purposes of which both
restricted and unrestricted net position is available. This is followed by committed resources, then
assigned, and lastly unassigned resources.
In 2012, the City revised the Reserve Policy which addresses the various types of the City's operating
and restricted use funds. The objectives of this Policy are to establish, attain, and restore minimum
fund balances, including self- insurance health care reserve funds, and specified review and reporting of
fund balances.
At the close of each fiscal year, the General Fund balance and the Reserve Fund balance shall each
equal or exceed 10% of the previous year General Fund revenue, exclusive of significant non -
operating, non - recurring revenues such as real estate sales or transfers in from other funds.
Enterprise funds, at the close of each fiscal year, the unrestricted fund balance shall equal or exceed
20% of the previous year revenue, exclusive of non - operating, non - recurring revenues such as real
estate sales, transfers in from other funds or debt proceeds.
The City shall maintain a reserve balance in each of its self- insured health care funds an amount equal
to 2.5 times or 250 %, of the actuarially determined IBNR (incurred but not reported) reserve. The
contingency reserve balance will be combined with the IBNR reserve balance and recorded as one
liability in each of the self- insured health care plan funds.
60
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Fund Balance Components
The fund balance amounts for governmental funds have been classified in accordance with GASB
Statement No. 54 and are reported as nonspendable, restricted, committed, assigned or unassigned.
• Nonspendable fund balance includes items that cannot be spent. This includes activity that is
not in a spendable form (inventories, prepaid amounts, long -term portion of loans /notes
receivable, or property held for resale unless the proceeds are restricted, committed or
assigned) and activity that is legally or contractually required to remain intact, such as a
principal balance in a permanent fund.
• Restricted fund balances have constraints placed upon the use of the resources either by an
external party or imposed by law through a constitutional provision or enabling legislation.
• Committed fund balances can be used only for specific purposes pursuant to constraints
imposed by a formal action in the form of ordinances and resolutions of Tukwila
Councilmembers, the City's highest level of decision - making authority. This formal action is the
passage of an ordinance by City Council creating, modifying, or rescinding an appropriation.
These committed amounts cannot be used for any other purpose unless Council removes or
changes the specified use by taking the same type of action it employed to previously commit
those amounts.
• Assigned fund balance includes amounts that are constrained by the City's intent to be used for
a specific purpose, but are neither restricted nor committed. Intent of use can be expressed by
City Council or by a designated official.
• Unassigned fund balance is the residual amount not included in the four categories described
above. Also, any deficit fund balances within the other governmental fund types are reported as
unassigned.
Each fund has been analyzed to classify the fund balance in accordance with GASB Statement No. 54.
Funds are created by the Council and money is authorized to be transferred to the fund for a particular
purpose. At this point, balances in these funds are at least committed, and may be further restricted
depending on whether there is an external party, constitutional provision, or enabling legislation
constraint involved.
The following table illustrates the use of fund balance resources for governmental funds. The City
applies restricted resources first when an expense is incurred for purposes of which both restricted and
unrestricted net position is available in the governmental funds.
61
CITY OF TUKWILA: 2013 CAFR
NOTES TO THE FINANCIAL STATEMENTS
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions 1,743,362
Expenditures -
$ -
-
-
$ -
-
-
$ -
225,000
-
$ 8,378,557
65,037,763
(58,098,696)
$ 8,378,557
67,006,125
(58,098,696)
Ending Fund Balance $ 1,743,362
$ -
$ -
$ 225,000
$15,317,624
$17,285,986
Restricted-Committed-Assigned-Unassigned
Arterial Street
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ 394,755
105,179
(102,514)
$ -
-
-
$ 88,576
12,754,328
(12,144,789)
$ -
-
-
$ 483,331
12,859,507
(12,247,303)
Ending Fund Balance $ -
$ 397,420
$ -
$ 698,115
$ -
$ 1,095,535
Restricted-Committed-Assigned-Unassigned
Land Acquisition Recreation & Park Development
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ -
25,661
(25,661)
$ -
-
-
$ 1,090,188
342,931
(213,229)
$ -
-
-
$ 1,090,188
368,592
(238,890)
Ending Fund Balance $ -
$ -
$ -
$ 1,219,890
$ -
$ 1,219,890
Restricted-Committed-Assigned-Unassigned
Local Improvement District #33
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ -
-
-
$ -
-
-
$ -
2,788,350
(2,788,350)
$ -
-
-
$ -
2,788,350
(2,788,350)
Ending Fund Balance $ -
$ -
$ -
$ -
$ -
$ -
Restricted-Committed-Assigned-Unassigned
Metropolitan Park District
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ -
-
-
$ -
-
-
$ -
-
-
$ (189,329)
914,100
(2,290,946)
$ (189,329)
914,100
(2,290,946)
Ending Fund Balance $
-
$ -
$ (1,566,175)
$ (1,566,175)
Restricted - Committed - Assigned - Unassigned
62
CITY OF TUKWILA: 2013 CAFR
NOTES TO THE FINANCIAL STATEMENTS
Hotel Motel Tax
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ 710,707
1,432,282
(1,428,043)
$ -
-
-
$ -
-
-
$ -
-
-
$ 710,707
1,432,282
(1,428,043)
Ending Fund Balance $ -
$ 714,946
$ -
$ -
$ -
$ 714,946
Restricted-Committed-Assigned-Unassigned
Street
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ 1,046,771
323,387
(184,203)
$ -
-
-
$ -
230,000
-
$ -
-
-
$ 1,046,771
553,387
(184,203)
Ending Fund Balance $ -
$ 1,185,955
$ -
$ 230,000
$ -
$ 1,415,955
Restricted-Committed-Assigned-Unassigned
Drug Seizure
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ 85,125
61,213
(70,729)
$ -
-
-
$ 75,000
-
(75,000)
$ -
-
-
$ 160,125
61,213
(145,729)
Ending Fund Balance $ -
$ 75,609
$ -
$ -
$ -
$ 75,609
Restricted-Committed-Assigned-Unassigned
Debt Service Funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ -
668,849
-
$ -
-
-
$ 3,012,381
3,145,498
(6,149,618)
$ -
-
-
$ 3,012,381
3,814,347
(6,149,618)
Ending Fund Balance $ -
$ 668,849
$ -
$ 8,261
$ -
$ 677,110
Restricted-Committed-Assigned-Unassigned
Facility Replacement
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ -
-
-
$ -
-
-
$ 2,005,520
3,373
(106,291)
$ -
-
-
$ 2,005,520
3,373
(106,291)
Ending Fund Balance $ -
$ -
$ -
$ 1,902,602
$ -
$ 1,902,602
Restricted-Committed-Assigned-Unassigned
General Government Improvement
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ 164,312
-
(164,312)
$ -
-
-
$ 749,518
232,217
(529,980)
$ -
-
-
$ 913,830
232,217
(694,292)
Ending Fund Balance $ -
$ -
$ -
$ 451,755
$ -
$ 451,755
Restricted - Committed - Assigned - Unassigned
Fire Improvement
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ 348,010
140,295
(51,083)
$ -
-
-
$ -
-
-
$ -
-
-
$ 348,010
140,295
(51,083)
Ending Fund Balance $ -
$ 437,222
$ -
$ -
$ -
$ 437,222
Restricted-Committed-Assigned-Unassigned
63
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Risk Management and Risk Retention
It is the City of Tukwila's policy to self- insure for unemployment benefits because of the insignificant
liability. Medical and dental self- insurance coverage is also provided for employees. All buildings, City
equipment, and City vehicles are insured by carriers for property coverage at replacement value.
The City of Tukwila is a member of the Washington Cities Insurance Authority (WCIA) as of January 1,
1984. The WCIA is an organization of Washington municipal entities numbering 162 as of December
31, 2013. WCIA provides pooled self- insurance coverage for general liability, vehicle liability, false
arrest, and errors and omissions. See Note 14 for additional information on risk management.
Operating Revenues and Expenses
Operating revenues are generated directly from the primary activity of the proprietary funds. For the
City, these revenues are charges for services for the use of the golf course and the internal use of
vehicles, computers and facilities. Operating expenses are necessary costs incurred to provide the
good or service that are the primary activity of each fund. All other revenues and expenses are
classified as non - operating including investment earnings, interest expense and the gain or loss on the
disposition of capital assets.
Contributions of Capital
Contributions of capital in proprietary fund financial statement arise from outside contributions of capital
assets, for example, developers, and grants or outside contributions of resources restricted to capital
acquisition and construction. It also includes water and sewer connection charges.
lnterfund Activity
Exchange transactions between funds are reported as revenues in the seller funds and as
expenditures /expenses in the purchaser funds. On the government -wide statement of activities, the
exchange transactions between the internal service funds and the user funds are eliminated. Flows of
cash or goods from one fund to another without a requirement for repayment are reported as interfund
transfers. lnterfund transfers are reported as other financing sources /uses in governmental funds and
after non - operating revenues /expenses section in proprietary funds.
Transfers between governmental and business -type activities on the government -wide statement of
activities are reported separately after general revenues. Transfers between funds reported in the
governmental activities column are eliminated. Transfers between funds reported in the business type
activities column are eliminated.
Estimates
The preparation of the financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.
H. Changes in Accounting Standards
The City implemented the following Government Accounting Standards Board (GASB) statements in
2013:
GASB Statement No. 61, The Financial Reporting Entity: Omnibus — which modifies certain
requirements for inclusion of component units in the financial reporting entity. As a result of
implementing this statement, the City is required to change the reporting of its component unit from
discreet presentation to blended.
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CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
GASB Statement No. 65, Items previously reported as Assets and Liabilities — clarifies the use of
deferred outflows of resources and deferred inflows of resources to ensure consistency in financial
reporting. This statement requires certain items which were previously reported as assets and liabilities
to be reported as deferred outflows of resources, deferred inflows of resources and as revenues or
expenditures.
NOTE 2 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
There have been no material violations of finance - related legal or contractual provisions, and there
have been no expenditures exceeding legal appropriations in any of the funds of the City of Tukwila.
NOTE 3 — DEPOSITS AND INVESTMENTS
The City maintains a cash and investment pool available for use by all funds. Interest earned on pooled
investments is recorded in the participating funds. Investments are also held separately by several of
the funds, with interest earned directly for the benefit of each fund.
Cash and Cash Equivalents
At year -end, the carrying amount of the City's bank balance was $20,238,500. Of the bank balance,
$250,000 was covered by Federal depository insurance and the WPDPC insured the remainder. The
City also maintains imprest funds totaling $14,400. The City participates in the State Treasurer's
Investment Pool, which is a 2a7 -like unrated pool, overseen by the State Treasurer's Office. The fair
value of the City's position in the pool is the same as the value of the pool shares. Because of its highly
liquid nature, the Pool funds are considered cash equivalents.
Deposits and Investments
The City's investment portfolio includes certificate of deposits insured by the Washington State Public
Depository Commission and municipal bonds issued by state and local agencies. These investments
are reported at fair value based on quoted market prices. Fair value is the amount at which a financial
instrument could be exchanged in a current transaction between willing parties, other than in a forced or
liquidation sale. Also, the Firemen's Pension Fund is authorized to invest in stocks, bonds, and mutual
funds.
65
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
At December 31, 2013, the City had the following deposits and investments:
SCHEDULE OF INVESTMENTS BY MATURITY
Maturity Credit Market
Date Rating Value
Certificates of Deposit:
Sound Community Bank 3/4/2014 * $ 3,117,093
Regal Bank 12/20/2014 * 250,000
Total Certificate of Deposits 3,367,093
Municipal Bonds:
Lodging Tax 7/1/2016 Aa3 / A+ 523,780
Revenue - Facilities 7/1/2017 Aal / AA+ 542,440
Limited General Obligation 12/1/2017 Aa3 / Al 585,600
Revenue - Facilities 7/1/2019 Aal / AA+ 553,760
Limited General Obligation 9/1/2020 Al 354,021
Unlimited General Obligation 12/1/2020 Aal / Aa3 1,236,810
Total Municipal Bonds 3,796,411
TOTAL INVESTMENTS $ 7,163,504
* No credit rating with certificate of deposit accounts; accounts are insured by the Public
Depository Protection Commission.
66
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
RECONCILIATION OF ALL CASH, DEPOSITS AND INVESTMENTS
AS REPORTED ON STATEMENT OF NET POSITION:
Cash and Cash Equivalents: $ 37,578,132
Investments 7,163, 504
Current Assets Restricted:
Cash and cash equivalents 905,759
Total Cash, Cash Equivalents and Investments $ 45,647,395
SUMMARY BY TYPE:
Cash and Cash Equivalents:
Cash on hand $ 14,400
Money Market account 12,706,968
Local Government Investment Pool 5,927,799
Cash in bank -book balance 19,834,724
Total cash and cash equivalents 38,483,891
Investments:
Certificates of deposit 3,367,093
Municipal bonds 3,796,411
Total investments 7,163,504
Total Cash, Cash Equivalents, and Investments $ 45,647,395
Restricted Assets - Governmental
Impact Fees
Restricted Assets - Governmental
Restricted Assets - Business -Type
Customer Deposits -Water Utility
Customer Deposits -Golf Course
Lease Deposits -Golf Course
Revenue Bond Reserve Account - Water /Sewer /Surface Water
Restricted Assets - Business -Type
Total Restricted Assets
67
397,420
$ 397,420
$ 19,115
43,780
15,000
430,444
$ 508,339
$ 905,759
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair
value of an investment. As a means of limiting its exposure to fair value losses arising from rising interest
rates, the City's investment policy limits at least half of the City's cash and investment portfolio to
maturities of less than one year. Investment maturities are limited as follows:
1) At the time of investment, a minimum of thirty percent (30 %) of the cash and
investment portfolio will be comprised of investments maturing or available within one
year.
2) At the time of investment, eighty percent (80 %) of the portfolio will be comprised of
investments maturing or available within five (5) years and no instruments shall have
a maturity exceeding ten (10) years, except when compatible with a specific fund's
investment needs.
3) The average maturity of the portfolio shall not exceed three and one half (3 '/2) years
or forty -two (42) months.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
State statutes and the City's 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):
1) U.S. Treasury Securities.
2) U.S. Agency Securities (i.e., obligations of any government- sponsored corporation
eligible for collateral purposes at the Federal Reserve).
3) 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.
4) Bankers Acceptances (BA's) purchased on the secondary market with a rating of A -1,
P -1, its equivalent or better.
5) General Obligation Bonds of a state or local government which have at the time of
the investment one of the three highest credit ratings of a nationally- recognized rating
agency.
6) The Washington State Local Government Investment Pool (LGIP).
As of December 31, 2013, the City's investments in municipal bonds were rated Aal to Al by Moody's
Investor Service. The City currently maintains a rating of AA- with Fitch's Investor Service for its general
obligation debt and Al with Moody's Investor Service.
68
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single
issuer. The City of Tukwila diversifies its investments by security type and institution as described below:
1) No more than fifty percent (50 %) of the City's cash and investment portfolio, at the
time of purchase, shall be in any single financial institution.
2) Except, that no more than seventy -five percent (75 %) of the City's portfolio, at the
time of purchase, shall be invested in the Washington State Local Government
Investment Pool, and
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.
NOTE 4 — RECEIVABLES
Taxes Receivable
Taxes receivable consists of property taxes, sales and use tax, and gambling taxes. Customer accounts
receivable consists of amounts owed by private individuals or organizations for good and services
provided. Uncollectible amounts are considered immaterial and the direct write -off method is used.
Other types of accounts receivable include utility taxes due from private organizations and customer
accounts receivable for amounts owed which billings have not been prepared.
Governmental Business -Type
Activities Activities Total
Taxes Receivable
Property $ 332,239 $ $ 332,239
Sales & Use 3,257,528 3,257,528
Utility Tax 640,901 640,901
Admission /Gambling /Parking 767,054 854 767,908
Total Taxes Receivable 4,997,723 854 4,998,577
Customer Receivable
Miscellaneous 431,746 4,273 436,019
Utility Accounts 1,287,512 1,287,512
Total Customer Receivable 431,746 1,291,785 1,723,531
Special Assessments - current portion 444,710 444,710
Interest 47,848 42,224 90,072
Total Receivables $ 5,922,027 $ 1,334,864 $ 7,256,890
69
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Property Taxes Receivable
The County treasurer acts as an agent to collect property taxes levied in the County for all taxing
authorities. Collections are distributed daily via wire transfer.
January 1st
Februar' 14th
April 30t
May 31st
October 31st
Property Tax Calendar
Taxes are levied and become an enforceable lien against properties.
Tax bills are mailed.
First of two equal installment payments is due. If taxes are less than $50, full
payment is due. (RCW 84.56.020)
Assessed value of property established for next year's levy at 100 percent of market
value.
Second installment is due. (RCW84.56.020)
Assessed values are established by the County Assessor at 100% of fair market value. A revaluation of
all property is required every two years. On May 31 of each year the assessed value of property is
established for the next year's property tax levy.
Property taxes levied by the County Assessor and collected by the County treasurer become a lien on
the first day of the levy year and may be paid in two equal installments if the total amount exceeds $50.
The first half of real property taxes is due on April 30 and the balance is due October 31. Delinquent
taxes bear interest at the rate of 12% and are subject to additional penalties if not paid as scheduled.
During the year, property tax revenues are recognized when cash is received. At year -end, unpaid
property taxes are recorded as a receivable. Property tax receivables at year -end not expected to be
collected within 60 days after the current period are reported as other unavailable revenue in the
deferred inflow of resources section of the governmental funds financial statements. The tax rate for
general City operations is limited to $3.60 per $1,000 of assessed value. Of this amount, up to $0.45 per
thousand may be designated for contribution to the Firemen's Pension Fund, if a report by a qualified
actuary indicates that additional funds are required.
The payment of principal and interest on limited tax (non- voted) bonds issued by the City is made from
the general levy. Accordingly, the issuance of limited tax general obligation bonds has the effect of
reducing property taxes available for the general operations of City government. State law also provides
that the City's operating levy may not exceed 101% of the largest single levy of the past three years. The
State Constitution provides that the total of all taxes upon real and personal property by the State and all
taxing entities, including the City, shall not in any year exceed 1% ($10 per $1,000) of the true and fair
monetary value of such property. This limitation may be exceeded upon the approval of 60% of the City
voters at an election in which the total vote exceeds 40% of the votes cast at the last general election.
Washington State Constitution and Washington State law, RCW 84.55.010, limit the rate. The City's
regular levy for 2013 was $2.98778 per $1,000 of assessed valuation of $4,649,191,308 for a total
regular levy of $13,890,761.
Due from Other Governments
All receivables from other governments are recorded at year -end as amounts Due from Other
Governmental Units. These amounts represent federal, state, and local reimbursement -type grants, and
are reported as receivables and intergovernmental revenues in the year when the related expenditures
are incurred. As of December 31, 2013, 99 percent represents grants.
70
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Notes Receivable
Notes receivable for governmental activities consists of the long -term portion of the special assessments
related to Local Improvement District (LID) No. 33. Special assessments are levied against certain
property owners benefited by the improvement. The current portion of outstanding assessments is
reported in the receivables category on the Statement of Net Position and consists of assessments
which are due within one year. Assessments are charged to property owners within the LID annually
with payments due in October of each year. The repayment period for the assessments is 15 years with
the first installment due in 2014 and the final installment due in 2028. At this time, there are no
delinquent assessments outstanding.
Notes receivable for business —type activities consists of outstanding payment plans for sewer
connection fees. The City designed and constructed sewer infrastructure in both the Allentown and
Foster Point area in the City, which was previously on septic. The project was completed and accepted
by City Council in 2007. The connection fees to be paid by property owners were established by
ordinance, effective in August, 2007. One option given to property owners was an installment payment
plan. This option allowed owners to sign an agreement to have the connection charge added to their
monthly water bill and repaid over 5, 10, or 15 years with an 4% annual interest rate. The balance
reflects all principal outstanding at year -end.
Governmental Business -Type
Activities Activities Total
Notes Receivable
Special Assessments - LT portion
Sewer Payment Plan
6,242,835 - 6,242,835
403,041 403,041
Total Notes Receivable $ 6,242,835 $ 403,041 $ 6,645,875
NOTE 5 — INTERFUND TRANSACTIONS
Interfund activity is the term used to describe similar financial transactions between funds of the primary
government.
Reciprocal interfund activity involves the exchange of equal or almost equal value between funds.
Services Provided /Used — Transactions that would be treated as revenues, expenditures or expenses
if they involve external organizations, such as buying goods and services in return for equal or almost
equal value, are similarly treated when they involve other funds of the City of Tukwila.
Interfund Loans /Advances — Loans between funds are classified as interfund loans receivable and
payable or as advances to and from other funds in the fund statements. Interfund loans are offset by a
reservation of fund equity. Interfund loans are subject to elimination upon consolidation. The City issued
a $1,million bond and loaned the proceeds to the MPD February 2013 for capital purposes. This loan is
being repaid twice a year at the same interest rate as the bond.
Nonreciprocal interfund activity does not involve the exchange of equal or almost equal value between
funds.
71
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Transfers — Transactions to support the operations of other funds are recorded as "Transfers" and
classified with "Other Financing Sources or Uses" in the fund statements. Transfers between
governmental or proprietary funds are netted as part of the reconciliation to the government -wide
financial statements.
Contributions — Contributions to the capital of enterprise or internal service funds, transfers of capital
assets between proprietary and governmental funds, transfers to establish or reduce working capital in
other funds, and transfers of remaining balances when funds are closed are classified non - operating
revenue.
Reimbursements — Repayments from funds responsible for expenditures or expenses to the funds that
initially paid for them. These transactions are expenditures /expense in the fund responsible and as a
reduction of expenditure /expensed in the fund being reimbursed.
Interfund transfers for the year were as follows:
SUMMARY OF INTERFUND TRANSFERS
Government and Internal General
Service Funds Fund
Other
Government
Funds
Internal
Service
Funds
Total
Transfers In
Transfers Out
$ 14, 919, 606 $ 5,999,377 $ 1,030, 000 $ 21, 948, 983
(10,662,843) (9,850,324) (375,166) (20,888,333)
Net Transfers In (Out) $ 4,256,763 $ (3,850,947) $ 654,834 $ 1,060,650
Proprietary Funds
Water /Sewer Surface Water Foster Golf
Utility Utility Course Total
Transfers In
Transfers Out
Net Transfers In (Out)
$ 103,680 $ - $ 400,000 $ 503,680
(896,588) (474,941) (192,801) (1,564,330)
$ (792,908) $ (474,941) $ 207,199 $ (1,060,650)
The principal purposes for interfund transfers include interfund subsidies and transfers into debt service
and capital projects funds.
72
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 6 — OPERATING LEASES
During 2013 the City maintained operating lease agreements for the purpose of leasing City operated
machinery and equipment.
Tukwila leases office/ storage space for the purposes of the Records Center, Seattle Southside Visitor
Center and the Neighborhood Resource Center. In addition the City leased a postage machine and
copiers during 2013. Costs associated with these activities are as follows.
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS
2013 2014 2015 2016 2017
Records Center 1
Neighborhood Resource Center 2
Seattle Southside Visitors Center
Postage Machines
Office Equipment
66,510
19,800
40,314
6,126
46,908
67,674
20,400
41,520
8,263
52,041
28,544
10,200
42,132
8,263
53,052
42,132
8,263
52,200
42,132
8,263
51,349
Total Lease Payments 179,657 189,898 142,191 102,595 101,744
1 Leasing of the Records Center expires on 5/31/2015. The tenant is responsible for the cost of utilities and
maintenance of building, w hich is estimated, based on square footage and reconciled annually by the
lessor.
2 Leasing of the Neighborhood Resource Center expires on 6/30/2015.
73
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 7 — CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2013, was as follows:
GOVERNMENTAL ACTIVITIES
BEGINNING
BEGINNING BLENDED PRIOR BALANCE
BALANCE COMPONENT PERIOD 12/31/2012 ENDING
12/31/2012 UNIT ADJUSTMENT RESTATED INCREASES DECREASES BALANCE
Governmental Activities
Capital assets, not being depreciated:
Land $ 40,501,509 $ - $ - 40,501,509 $ 1,689,819 $ - $ 42,191,328
Construction in Progress 47,942,200 942,119 1 (3,863,455) 2 45,020,864 6,854,400 (41,391,303) 10,483,961
Intangible Assets 770,000 770,000
Total capital assets,
not being depreciated 88,443,709 942,119 (3,863,455) 85,522,373 9,314,219 (41,391,303) 53,445,289
Capital assets, being depreciated:
Buildings 22,273,557 1,938,376 1 24,211,933 1,549,900 (484,594) 25,277,239
Other Improvements 17,699,804 17,699,804 430,689 18,130,492
Machinery and Equipment 16,992,308 - - 16,992,308 4,497,423 (4,536,069) 16,953,662
Infrastructure 149,595,860 149,595,860 42,121,179 (400,269) 191,316,770
Intangible Assets 605,762 - - 605,762 136,246 - 742,008
Total capital assets
being depreciated 207,167,290 1,938,376 - 209,105,666 48,735,437 (5,420,932) 252,420,172
Less accumulated depreciation for:
Buildings (10,091,849) (79,363) 1 - (10,171,212) (671,533) 32,307 (10,810,438)
Other Improvements (9,756,296) - (9,756,296) (786,281) (10,542,577)
Machinery and Equipment (11,394,781) - - (11,394,781) (1,283,625) 1,180,783 (11,497,623)
Infrastructure (45,506,262) - - (45,506,262) (4,518,997) 320,216 (49,705,043)
Intangible Assets (95,170) (95,170) (163,931) (259,101)
Total accumulated depreciation (76,844,358) (79,363) - (76,923,721) (7,424,367) 1,533,306 (82,814,782)
Total capital assets, being
depreciated, net 130,322,932 1,859,013 - 132,181,945 41,311,070 (3,887,626) 169,605,390
Govemmental activity capital assets, net $ 218,766,642 $ 2,801,132 $ (3,863,455) 217,704,319 $ 50,625,289 $ (45,278,929) $ 223,050,679
10n September 12, 2011, the Board of Commissioners approved the formation of the Tukwila
Metropolitan Park District (MPD) Pool. For the comprehensive annual financial report years of 2011 and
2012, the MPD Pool was treated as a discretely presented component unit. Effective with the report year
2013, the beginning balances to the capital asset categories for Construction in Progress, Buildings, and
Accumulated Depreciation for Buildings now reflect totals carried over on behalf of the MPD Pool and
presented in this Note Section to the Financial Statements as a blended component unit.
2The City had two construction projects that were accepted by the Council in 2013. Both road projects
had expenditures that the majority were charged correctly to the Arterial Street Fund. However there
were utility (Proprietary Fund) expenditures that were also charged to the Arterial Street Fund. These
expenditures should have been charged to the Proprietary Fund since the assets were constructed in
both funds. The correction in 2013 has resulted in a prior period adjustment of ($3,863,455) which is
reflected in the decreases to Construction in Progress. (See Prior Period Adjustment Note).
Significant decreases for Governmental Activities Machinery and Equipment of ($4,536,069) reflect Fleet
vehicle dispositions totaling ($1,191,778); transfer of Fire apparatuses totaling ($3,326,739) from the 107
Fire Equipment Cumulate Reserve Fund into Fund 501 for Fleet vehicles; while general fixed asset
Machinery and Equipment in the amount of ($17,552) were disposed of for the Parks & Recreation
Department. Conversely, significant increases to infrastructure of $42,121,179 for the period include
$38,881,758 being capitalized into roadway; $315,379 into bridges; and $2,924,042 into traffic
signals /street lighting.
74
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
BUSINESS -TYPE ACTIVITIES
BEGINNING
BEGINNING PRIOR BALANCE
BALANCE PERIOD 12/31/2012 ENDING
12/31/2012 ADJUSTMENT RESTATED INCREASES DECREASES BALANCE
Business -Type Activities
Capital assets, not being depreciated:
Land $ 2,214,118 $ - $ 2,214,118 $ - $ (284,434) $ 1,929,684
Construction in Progress 7,595,365 2,427,372 10,022,737 1,545,690 (8,464,166) 3,104,260
Intangible Assets - - 308,074 - 308,074
Total capital assets,
not being depreciated 9,809,483 2,427,372 12,236,855 1,853,764 (8,748,600) 5,342,018
Capital assets, being depreciated:
Buildings 11,390,601 - 11,390,601
Other Improvements 71,829,216 71,829,216
Machinery and Equipment 2,295,253 2,295,253
Intangible Assets 90,647 90,647
Total capital assets
being depreciated 85,605,717 85,605,717
1,152, 563 -
7,282,925 (55,783)
(33,905)
12,543,164
79,056,357
2,261,349
90,647
8,435,487 (89,688) 93,951,517
Less accumulated depreciation for:
Buildings (3,291,381) (3,291,381) (304,540) - (3,595,921)
Other Improvements (27,259,703) (27,259,703) (1,552,688) 50,216 (28,762,175)
Machinery and Equipment (1,711,052) (1,711,052) (81,991) 33,905 (1,759,138)
Intangible Assets (34,635) - (34,635) (2,154) - (36,789)
Total accumulated depreciation (32,296,770) - (32,296,770) (1,941,373) 84,121 (34,154,023)
Total capital assets, being
depreciated, net 53,308,949 - 53,308,949 6,494,114 (5,567) 59,797,496
Business -Type activity capital assets, net $ 63,118,432 $ 2,427,372 $ 65,545,804 8,347,877 $ (8,754,168) $ 65,139,514
A prior period adjustment totaling $2,427,372 for Construction in Progress in the Business -Type
Activities consists of the two construction projects where utility expenditures were also charged to the
Arterial Street Fund as described in Footnote 2 above. This resulted in a prior period adjustment of
$3,863,455 into the Proprietary Funds. Additionally, another prior period adjustment was recognized for
the Proprietary Funds in the amount ($1,436,083) for utility assets that were already recorded by the
Highline Water District (See Prior Period Adjustment Note).
75
BUSINESS -TYPE ACTIVITIES
Storm Lift Station #15
Small Drainage Project - 2013
Andover Park West /Andover Park
East Sewer
CBD Sewer Rehabilitation
E Marginal Way S Storm
Other
Land Turnovers, Contributions
Capital Outlay
480,539
381,261
165,885
158,724
153,910
194,111
Donated
6,221
Total
480,539
381,261
165,885
158,724
153,910
194,111
6,221
Totals
$ 1,534,430 $ 6,221 $ 1,540,651
CITY OF TUKWILA: 2013 CAFR
NOTES TO THE FINANCIAL STATEMENTS
CAPITAL ASSET ADDITIONS BY PROJECT
GOVERNMENTAL ACTIVITIES
Southcenter Parkway
Transit Center
Interurban Avenue South
Pedestrian Bridge
Other
Internal Service fund - Fleet
Capital Outlay
1,098,196
1,094,162
577,814
336,480
2,748,309
2,044,015
Donated
4,367,291
335,500
729,848
Total
5,465,487
1,429,662
577,814
336,480
3,478,157
2,044,015
Totals
$ 7,898,976 $ 5,432,639 $ 13, 331, 615
Government Wide Totals
$ 9,433,406 $ 5,438,860 $ 14,872,266
76
CITY OF TUKWILA: 2013 CAFR
NOTES TO THE FINANCIAL STATEMENTS
COMPONENTS OF NET CAPITAL ASSET CHANGES
CAPITAL ASSET CHANGES
INCREASE (DECREASE) IN NET CAPITAL
GOVERNMENTAL
ACTIVITIES
BUSINESS -TYPE
ACTIVTES
TOTAL
Increases/ Additions
Capital outlay
Land turnovers, contributions
Internal service funds (Equipment rental)
$ 5,854,961 *
5,432,639
2,044,015
$ 1,534,430
6,221
$ 7,389,391
5,438,860
2,044,015
Total capital asset additions
13,331,615
1,540,651
14,872,266
Decreases / Disposals
Right of way and other land donations:
Sale or disposal of assets
Internal service funds (Equipment rental)
400,269
502,146 *
1,191,778
89,688
400,269
591,834
1,191,778
Total capital asset disposals
2,094,193
89,688
2,183,881
Net Increase in Capital Assets
$ 11,237,422
$ 1,450,963
$12,688,385
ACCUMULATED DEPRECIATION CHANGES
INCREASE (DECREASE) IN NET CAPITAL
GOVERNMENTAL
ACTIVITIES
BUSINESS -TYPE
ACTIVITIES
TOTAL
Increases/ Additions
Depreciation:
$ (406,289)
$ 4,940,072
Governmental
$ 6,538,166
$ -
$ 6,538,166
General government
314,115
Public safety
140,013
Physical Environment
662,855
Transportation
4,549,202
Economic Environment
4,833
Culture and recreation
867,148 *
Internal service funds (Equipment rental)
886,201
886,201
Business -type funds
1,941,373
1,941,373
Total capital asset additions
7,424,367
1,941,373
9,365,740
Decreases/ Disposals
Accumulated depreciation associated with
asset sale or disposal:
Governmental
370,075 *
370,075
Internal service funds (Equipment rental)
1,163,231
1,163,231
Business -type funds
84,121
84,121
Total accumulated depreciation disposal
1,533,306
84,121
1,617,427
Net Increase in Accumulated Depreciation
$ 5,891,061
$ 1,857,252
$ 7,748,313
NET CHANGE IN CAPITAL ASSETS
INCREASE (DECREASE) IN NET CAPITAL
ASSETS
$ 5,346,361
$ (406,289)
$ 4,940,072
* Includes Park District activity consisting of:
Capital outlay $ 739,109
Book value, disposed /replaced assets 484,594
Depreciation 64,613
Accumulated depreciation,disposed /replaced assets 32,307
77
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 8 — JOINT VENTURES
A joint venture is a legal entity or other organization that results from a contractural agreement and that is
owned, operated, or governed by two or more participants as a separate and specific activity subject to
joint control in which the participants retain (a) an on -going financial interest or (b) an on -going financial
responsibility. The City participates in two joint ventures.
Valley Communications Center
The "Valley Communications Center" was established August 20, 1976, when an Interlocal Agreement
was entered into by the four original participating municipal corporations, including the cities of Renton,
Kent, Auburn, and Tukwila, with Federal Way formally admitted during 2000. The agreement is
sanctioned by the provisions and terms of the Interlocal Cooperation Act pursuant to RCW 39.34. The
initial duration of the agreement was five years, and thereafter is automatically extended for consecutive
five -year periods.
The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved
consolidated emergency communications (dispatch) services for police, fire, and medical aid, to the five
participating cities and to several subscribing agencies. Separate agreements between Valley Com and
the subscribing agencies have been executed, which set forth conditions of services and rates charged.
The allocation of prorated financial participation among the five participating cities is the percentage of
estimated dispatched calls attributed to each jurisdiction compared to the total estimated dispatched calls
for the current 12 -month period ending December 31.
The 2013 cost distribution for the five participating cities is as follows:
City
Dispatchable
Calls
Percent of
Total
Renton
72,740
20.70%
Kent
97,579
27.76%
Auburn
71,881
20.45%
Tukwila
34,192
9.73%
Federal Way
75,073
21.36%
Total
351,465
100.00%
Valley Corn is governed by an Administration Board composed of the Mayors from the five participating
cities of Renton, Kent, Auburn, Tukwila, and Federal Way. The Board is responsible for the following
functions: (1) Adopting an annual budget after review by participating legislative bodies; (2) Appointment
and /or discharge of the Director; (3) Approves personnel policy and makes final decisions on all major
policy changes; (4) Reviews and approves all contracts.
In addition, an Operating Board was established and consists of two members of each participating City's
Public Safety Departments, including the heads of such departments or their designees. The Operating
Board performs the following functions: (1) Oversees the operation of Valley Corn and advises and
makes recommendations to the Administration Board; (2) Makes recommendation on Director selection;
(3) Presents proposed policies and budgets to the Administration Board; (4) Approves disbursement of
funds by the Director.
The Director presents a proposed budget to the Operating Board on or before August 15 of each year.
The proposed budget is then presented to the Administration Board by September 1 of each year. The
Administration Board can make changes to the proposed Valley Com budget as it finds necessary, but
78
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
final approval falls to the legislative body of each participating city, in accordance with the provisions of
the Interlocal Agreement.
The share of equity belonging to the five participating cities is as follows:
ITEM
FEDERAL
RENTON KENT AUBURN TUKWILA WAY TOTAL
Equity January 1, 2013 $ 5,062,434 $7,139,778 $4,783,577 $2,843,407 $3,324,584 $23,153,780
Current Year lncrease/(Decrease) 178,173 239,013 176,069 83,751 183,886 860,892
Equity December 31, 2013 $ 5,240,607 $ 7,378,791 $ 4,959,646 $ 2,927,158 $3,508,470 $ 24,014,672
Percent of Equity 21.82% 30.73% 20.65% 12.19% 14.61% 100.00%
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position. In
August 1993, Valley Com entered into an interlocal cooperation agreement, pursuant to RCW 39.34
RCW, with the subregions of King County, Seattle, and the Eastside Public Safety Communications
Agency. This agreement governs the development, acquisition and installation of the 800 MHz
emergency radio communications system funded by a $57 million King County levy approved in
November 1992. This agreement provides that upon voluntary termination of any subregion's
participation in the system, it surrenders its radio frequencies, relinquishes its equipment and transfers
any unexpended levy proceeds and associated equipment replacement reserves to another subregion or
consortium of subregions. Thus, in accordance with this agreement, the participating cities of Valley Corn
have no equity interest in Valley Corn's 800 -MHz communications system.
During 2000, the Valley Communications Center Development Authority was created to issue
$12,758,000 in General Obligation Bonds to finance construction, equipment, and land for a new facility
completed in 2002. Each of the five participating cities is responsible for one -fifth of the debt obligation,
which originally was $2,551,600 per City. The basic agreement shall not be terminated until all bonds
issued by Valley Communications Center Development Authority have been paid and retired.
A complete set of financial statements are available from Valley Communications Center, 27519 108th
Ave SE, Kent, WA 98030, or by telephone 253 - 372 -1300.
South Correctional Entity (SCORE)
The South Correctional Entity (SCORE) consolidated correctional facility was established February 25,
2009, when an Interlocal Agreement (the "Original Interlocal Agreement ") was entered into by seven
participating municipal governments, the "Member Cities" of Auburn, Burien, Des Moines, Federal Way,
Renton, SeaTac and Tukwila, under the authority of the "Interlocal Cooperation Act" (RCW 39.34). This
"Original Interlocal Agreement" was amended and restated October 1, 2009 and named the City of Des
Moines as the "Host City" and the remaining Member Cities as "Owner Cities ". This interlocal agreement
is known as the "Formation Interlocal Agreement ". Pursuant to a separate "Host City Agreement" dated
October 1, 2009, the Host City will not enjoy the same equity position as the Owner Cities until all debts
issued are paid and the Host City fulfills all of its obligations as outlined in the Host City Agreement.
Pursuant to SCORE financial policies, all unexpected funds or reserve funds shall be distributed based on
the percentage of the Member City's average daily population at the SCORE Facility for the last three (3)
years regardless of their Owner City or Host City status.
79
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
SCORE, a governmental administrative agency pursuant to RCW 39.34.030(3), has the power to acquire,
construct, own, operate, maintain, equip, and improve a correctional facility known as the "SCORE
Facility" and to provide correctional services and functions incidental thereto, for the purpose of detaining
arrestees and sentenced offenders in the furtherance of public safety and emergencies within the
jurisdiction of the Member Cities. The SCORE Facility may serve the Member Cities and Subscribing
Agencies which are in need of correctional facilities. Any agreement with a Subscribing Agency shall be
in writing and approved by SCORE as provided within the SCORE Formation Interlocal Agreement.
Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility was
provided by bonds issued by the South Correctional Entity Facility Public Development Authority (the
"SCORE PDA "), a public development authority chartered by the City of Renton pursuant to RCW
35.21.730 through 35.21.755 and secured by the full faith and credit of the Cities of Auburn, Burien
Federal Way, Renton, SeaTac, and Tukwila. The SCORE PDA issued $86 million in special obligation
bonds in 2009 to carry out the facility development project. The following is a summary of the debt
service requirements for the bond issue:
SUMMARY OF DEBT SERVICE REQUIREMENTS
*lea service is due 111 of each year. The City paid the 2014 principal in 2013 so the schedule reflects a payment the City has already nude.
The City of Tukwila reports its share of equity interest in the Governmental Activities column within the
Government -wide financial statements under non - current assets. The share of equity belonging to the six
participating cities is as follows:
ITEM
AUBURN BURIEN DES MOINES FEDERAL WAY RENTON SEATAC TUKWILA TOTAL
Equity January 1, 2013 $ 1,368,859 $ 176,627 $ - $ 794,820
Current Year Increase /(Decrease) 1,148,378 117,696 107,970 1,026,120
Equity December 31, 2013 $ 2,517,237 $ 294,323 $ 107,970 $ 1,820,940
1,589,644 $ 132,469 $ 353,254 $ 4,415,673
958,575 199,239 248,680 3,806,658
2,548,219 $ 331,708 $ 601,934 $ 8,222,331
Percent of Equity 30.61% 3.58% 1.31% 22.15% 30.99% 4.03% 7.32% 100.00%
80
Debt Seance Schedule
Debt Seance Allocation to Owner Cities
35% BABs
Auburn
Butler
Federal Way
Renton
SeaTac
Tukwila *
Year
Principal
Interest
Subsidy
Total
31%
4%
18%
36%
3%
8%
2014
$ 1.950.000
$ 5.066.566
S
1.654.975)
$ 5.361.591
S 1.662.093
S 214.464
$ 965.086
S 1.930,173
$ 160.848
$ 428.927
2015
1.990.000
4,995.069
1,632,767)
5.352.282
1,659,207
214.091
963.411
1.926.822
160,568
428,183
2016
2,065.000
4.911,886
1.632,787)
5.344,099
1,656,671
213,764
961.938
1.923.876
160,323
427,528
2017
2,145.000
4.820.241
1.621,960)
5.343.261
1,656,411
213,730
961.787
1.923.574
160,298
427.461
2018
2.240.000
4.715.979
1.621.930)
5.333.999
1.653.540
213.360
960.120
1.920.240
160.020
426.720
2019 -2023
12.435.000
21,771.988
7.583.953)
26.623,035
8.253,141
1,064.921
4.792.146
9.584.293
798.691
2.129.843
2024 -2028
15,060.000
17.609.677
6.398.978)
26.470.699
8.205,917
1,053,828
4.764.726
9.529,452
794.121
2.117.656
2029 -2033
18.475.000
12,403,424
4.553,914)
26.324,510
8.160.598
1.052.980
4.738;412
9.476,824
789.735
2,105.961
2034-2038
22.795.000
5,605.241
2.225.755)
26.174.486
8.114.091
1.046.979
4.711.407
9.422.815
785.235
2.093.959
2039
5.165.000
170.858
(119.601)
5.216.257
1.617.040
203.650
938.926
1.877.853
156.488
417.301
Totals
$84,320.000
$ 82,270,929
$ (29,046,710)
$137,544,219
$ 42,638,709
$ 5,501.767
$ 24,757,989
$49.515,922
$ 4,126,327
$11,003,539
*lea service is due 111 of each year. The City paid the 2014 principal in 2013 so the schedule reflects a payment the City has already nude.
The City of Tukwila reports its share of equity interest in the Governmental Activities column within the
Government -wide financial statements under non - current assets. The share of equity belonging to the six
participating cities is as follows:
ITEM
AUBURN BURIEN DES MOINES FEDERAL WAY RENTON SEATAC TUKWILA TOTAL
Equity January 1, 2013 $ 1,368,859 $ 176,627 $ - $ 794,820
Current Year Increase /(Decrease) 1,148,378 117,696 107,970 1,026,120
Equity December 31, 2013 $ 2,517,237 $ 294,323 $ 107,970 $ 1,820,940
1,589,644 $ 132,469 $ 353,254 $ 4,415,673
958,575 199,239 248,680 3,806,658
2,548,219 $ 331,708 $ 601,934 $ 8,222,331
Percent of Equity 30.61% 3.58% 1.31% 22.15% 30.99% 4.03% 7.32% 100.00%
80
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
The investment in joint venture for SCORE on the Statement of Net Position includes Tukwila's share of
debt issued in 2009. The City's share of SCORE debt is $6,589,600. See Note 11 for additional
information on long -term debt. Completed financial statements for SCORE and SCORE PDA can be
obtained from the SCORE office, 20817 17th Avenue South, Des Moines, WA 98198.
NOTE 9 — PENSION PLANS
Washington State Department of Retirement Systems
Substantially all City of Tukwila full -time and qualifying part-time employees participate in one of the
following statewide retirement systems administered by the Washington State Department of Retirement
Systems, under cost - sharing multiple - employer public employee defined benefit retirement plans. The
Department of Retirement Systems (DRS), a department within the primary government of the State of
Washington, issues a publicly available comprehensive annual financial report (CAFR) that includes
financial statements and required supplementary information for each plan. The DRS CAFR may be
obtained by writing to: Department of Retirement Systems, Communications Unit, P.O. Box 48380,
Olympia, WA 98504 -8380; or it may be downloaded from the DRS website at www.drs.wa.gov. The
following disclosures are made pursuant to GASB Statements 27, Accounting for Pensions by State and
Local Government Employers and 50, Pension Disclosures, an Amendment of GASB Statements 25 and
27.
Public Employees Retirement System (PERS) Plans 1, 2, and 3
Plan Description
The Legislature established PERS in 1947. Membership in the system includes: elected officials; state
employees; employees of the Supreme, Appeals, and Superior courts; employees of legislative
committees; employees of district and municipal courts; and employees of local governments.
Approximately 49 percent of PERS salaries are accounted for by state employment. PERS retirement
benefit provisions are established in Chapters 41.34 and 41.40 RCW and may be amended only by the
State Legislature.
PERS is a cost - sharing multiple - employer retirement system comprised of three separate plans for
membership purposes: Plans 1 and 2 are defined benefit plans and Plan 3 is a defined benefit plan with a
defined contribution component.
PERS members who joined the system by September 30, 1977 are Plan 1 members. Those who joined
on or after October 1, 1977 and by either, February 28, 2002 for state and higher education employees,
or August 31, 2002 for local government employees, are Plan 2 members unless they exercised an
option to transfer their membership to Plan 3. PERS members joining the system on or after March 1,
2002 for state and higher education employees, or September 1, 2002 for local government employees
have the irrevocable option of choosing membership in either PERS Plan 2 or PERS Plan 3. The option
must be exercised within 90 days of employment. Employees who fail to choose within 90 days default to
PERS Plan 3.
PERS is comprise of and reported as three separate plans for accounting purposes: Plan 1, Plan 2/3, and
Plan 3. Plan 1 accounts for the defined benefits of Plan 1 members. Plan 2/3 accounts for the defined
benefits of Plan 2 members and the defined benefit portion of benefits for Plan 3 members. Plan 3
accounts for the defined contribution portion of benefits for Plan 3 members. Although members can only
be a member of either Plan 2 or Plan 3, the defined benefit portions of Plan 2 and Plan 3 are accounted
for in the same pension trust fund. All assets of this Plan 2/3 defined benefit plan may legally be used to
pay the defined benefits of any of the Plan 2 or Plan 3 members or beneficiaries, as defined by the terms
of the plan. Therefore, Plan 2/3 is considered to be a single plan for accounting purposes.
81
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
PERS Plan 1 and Plan 2 retirement benefits are financed from a combination of investment earnings and
employer and employee contributions. Employee contributions to the PERS Plan 1 and Plan 2 defined
benefit plans accrue interest at a rate specified by the Director of DRS. During DRS' Fiscal Year 2013,
the rate was five and on -half percent compounded quarterly. Members in PERS Plan 1 and Plan 2 can
elect to withdraw total employee contributions and interest thereon, in lieu of any retirement benefit, upon
separation from PERS- covered employment.
PERS Plan 1 members are vested after the completion of five years of eligible service.
Plan 1 members are eligible for retirement from active status at any age with at least 30 years of service,
at age 55 with 25 years of service, or at age 60 with at least 5 years of service. Plan 1 members retiring
from inactive status prior to the age of 65 may receive actuarially reduced benefits.
The monthly benefit is two percent of the average final compensation (AFC) per year of service, but the
benefit may not exceed 60 percent of AFC. The AFC is the monthly average of the 24 consecutive
highest -paid service credit months.
PERS Plan 1 retirement benefits are actuarially reduced to reflect the choice, if made, of a survivor
option.
Plan 1 members may elect to receive an optional COLA that provides an automatic annual adjustment
based on the Consumer Price Index. The adjustment is capped at three percent annually. To offset the
cost of this annual adjustment, the benefit is reduced.
PERS Plan 1 provides duty and non -duty disability benefits. Duty disability retirement benefits for
disablement prior to the age of 60 consist of a temporary life annuity. The benefit amount is $350 a
month, or two - thirds of the monthly AFC, whichever is less. The benefit is reduced by any workers'
compensation benefit and is payable as long as the member remains disabled or until the member attains
the age of 60, at which time the benefit is converted to the member's service retirement amount.
A member with five years of covered employment is eligible for non -duty disability retirement. Prior to the
age of 55, the benefit amount is two percent of the AFC for each year of service reduced by two percent
for each year that the member's age is less than 55. The total benefit is limited to 60 percent of the AFC
and is actuarially reduced to reflect the choice of a survivor option. Plan 1 members may elect to receive
an optional COLA amount (based on the Consumer Price Index), capped at 3 percent annually. To offset
the cost of this annual adjustment, the benefit is reduced.
PERS Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members
are eligible for normal retirement at the age of 65 with five years of service. The monthly benefit is two
percent of the AFC per year of service. The AFC is the monthly average of the 60 consecutive highest -
paid service months. There is now cap on years of service credit; and a cost -of- living allowance is
granted (based on the Consumer Price Index), capped at 3 percent annually.
PERS Plan 2 members who have at least 20 years of service credit and are 55 years of age or older, are
eligible for early retirement with a reduced benefit. The benefit is reduced by an early retirement factor
(ERF) that varies according to age, for each year before age 65.
PERS Plan 2 members who have 30 or more years of service credit and are at least 55 years old can
retire under one of two provisions, if hired prior to May 1, 2013:
• With a benefit that is reduced by three percent for each year before age 65;
or
82
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
• With a benefit that has a smaller (or no) reduction (depending on age) that
imposes stricter return -to -work rules.
PERS Plan 2 members hired on or after May 1, 2013 have the option to retire early by accepting a
reduction of 5 percent for each year of retirement before age 65. This option is available only to those
who are age 55 or older and have at least 30 years of service.
PERS Plan 2 retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor
option.
PERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component
and member contributions finance a defined contribution component. As established by Chapter 41.34
RCW, employee contribution rates to the defined contribution component range from 5 percent to 15
percent of salaries, based on member choice. Members who do not choose a contribution rate default to
a 5 percent rate. There are currently no requirements for employer contributions to the defined
contribution component of PERS Plan 3
PERS Plan 3 defined contribution retirement benefits are dependent upon the results of investment
activities. Members may elect to self- direct the investment of their contributions. Any expenses incurred
in conjunction with self- directed investments are paid by members. Absent a member's self- direction.
PERS Plan 3 contributions are invested in the Retirement Strategy Fund that assumes the member will
retire at age 65.
For DRS' fiscal year 2013, PERS Plan 3 employee contributions were $99.0 million, and plan refunds
paid out were $69.4 million.
The defined benefit portion of PERS Plan 3 provides members a monthly benefit that is one percent of
the AFC per year of service. The AFC is the monthly average of the 60 consecutive highest -paid service
months. There is no cap on years of service credit, and Plan 3 provides the same cost -of- living allowance
as Plan 2.
Effective June 7, 2006, PERS Plan 3 members are vested in the defined benefit portion of their plan after
ten years of service; or after five years of service, if twelve months of that service are earned after age
44; or after five service credit years earned in PERS Plan 2 by June 1, 2003. Plan 3 members are
immediately vested in the defined contribution portion of their plan.
Vested Plan 3 members are eligible for normal retirement at age 65, or they may retire early with the
following conditions and benefits:
• If they have at least ten service credit years and are 55 years old, the benefit
is reduced by an ERF that varies with age, for each year before age 65.
• If they have 30 service credit years and are at least 55 years old, and were
hired before May 1, 2013, they have the choice of a benefit that is reduced
by three percent for each year before age 65; or a benefit with a smaller (or
no) reduction factor (depending on age) that imposes stricter return -to -work
rules.
• If they have 30 service credit years, are at least 55 years old, and were hired
after May 1, 2013, they have the option to retire early by accepting a
reduction of 5 percent for each year before age 65.
PERS Plan 3 benefit retirement benefits are also actuarially reduced to reflect the choice, if made, of a
survivor option.
83
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
PERS Plan 2 and Plan 3 provide disability benefits. There is no minimum amount of service credit
required for eligibility. The Plan 2 monthly benefit amount is two percent of the AFC per year of service.
For Plan 3, the monthly benefit amount is one percent of the AFC per year of service. These disability
benefit amounts are actuarially reduced for each year that the member's age is less than 65, and to
reflect the choice of a survivor option. There is no cap on years of service credit, and a cost -of- living
allowance is granted (based on the Consumer Price Index) capped at three percent annually.
PERS members meeting specific eligibility requirements have options available to enhance their
retirement benefits. Some of these options are available to their survivors.
A one -time duty - related death benefit is provided to the estate of a PERS member who dies as a result of
injuries sustained in the course of employment, or if the death resulted from an occupational disease or
infection that arose naturally and proximately out of the member's covered employment, if found eligible
by the Department of Labor and Industries.
From January 1, 2007 through December 31, 2007, judicial members of PERS were given the choice to
elect participation in the Judicial Benefit Multiplier (JBM) Program enacted in 2006. Justices and judges in
PERS Plan 1 and Plan 2 were able to make an irrevocable election to pay increased contributions that
would fund a retirement benefit with a 3.5 percent multiplier. The benefit would be capped at 75 percent
of AFC. Judges in PERS Plan 3 could elect a 1.6 percent of pay per year of service benefit, capped at
37.5 percent of AFC.
Newly elected or appointed justices and judges who chose to become PERS members on or after
January 1, 2007, or who had not previously opted into PERS membership, were required to participate in
the JBM Program.
There are 1,176 participating employers in PERS. Membership in PERS consisted of the following as of
the latest actuarial valuation date for the plans of June 30, 2012:
Type of Membership Membership
Retirees and Beneficiaries Receiving Benefits 82,242
Terminated Plan Members Entitled to but not yet Receiving Benefits 30,515
Active Plan Members Vested 106,317
Active Plan Members Non - vested 44,273
Total 263,347
Funding Policy
Each biennium, the state Pension Funding Council adopts PERS Plan 1 employer contribution rates,
PERS Plan 2 employer and employee contribution rates, and PERS Plan 3 employer contribution rates.
Employee contribution rates for Plan 1 are established by statute at six percent for state agencies and
local government unit employees, and at 7.5 percent for state government elected officials. The employer
and employee contribution rates for Plan 2 and the employer contribution rate for Plan 3 are developed
by the Office of the State Actuary to fully fund Plan 2 and the defined benefit portion of Plan 3. Under
PERS Plan 3, employer contributions finance the defined benefit portion of the plan and member
contributions finance the defined contribution portion. The Plan 3 employee contribution rates range from
5 to 15 percent.
As a result of the implementation of the Judicial Benefit Multiplier Program in January 2007, a second tier
of employer and employee rates was developed to fund, along with investment earnings, the increased
retirement benefits of those justices and judges that participate in the program.
84
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
The methods used to determine the contribution requirements are established under state statute in
accordance with RCW 41.40 and RCW 41.45.
The required contribution rates expressed as a percentage of current -year covered payroll, as of
December 31, 2013, are as follows:
Members Not Participating in JBM:
PERS Plan I
Employer*
Employee
PERS Plan II PERS Plan III
9.21% 9.21%
6.00% 4.92%
9.21% **
Minimum 5% to
maximum 15%
* The employer rates include the employer administrative expense fee currently set at 0.18%.
** Plan 3 defined benefit portion only.
Both the City and the employees made the required contributions. The City's required contributions for
the years ended December 31 were as follows:
2013
2012
2011
PERS Plan I
PERS Plan II PERS Plan III
2,078
$ 1,069,130
902,516
753,456
$ 177,312
144,456
113,753
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) Plan 1 and 2
Plan Description
LEOFF was established in 1970 by the Legislature. Membership includes all full -time, fully compensated,
local law enforcement commissioned officers, firefighters and, as of July 24, 2005, emergency medical
technicians. LEOFF membership is comprised primarily of non -state employees, with Department of Fish
and Wildlife enforcement officers, who were first included effective July 27, 2003, being an exception.
LEOFF retirement benefit provisions are established in chapter 41.26 RCW and may be amended only by
the State Legislature.
LEOFF is a cost - sharing multiple - employer retirement system comprised of two separate defined benefit
plans. LEOFF members who joined the system by September 30, 1977 are Plan 1 members. Those who
joined on or after October 1, 1977 are Plan 2 members.
Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 to provide
governance of LEOFF Plan 2. The Board's duties include adopting contribution rates and recommending
policy changes to the Legislature.
LEOFF retirement benefits are financed from a combination of investment earnings, employer and
employee contributions, and a special funding situation in which the state pays through legislative
appropriations. Employee contributions to the LEOFF Plan 1 and Plan 2 defined benefit plans accrue
interest at a rate specified by the Director of DRS. During DRS' Fiscal Year 2013, the rate was five and
one -half percent compounded quarterly. Members in LEOFF Plan 1 and Plan 2 can elect to withdraw total
85
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
employee contributions and interest earnings, in lieu of any retirement benefit, upon separation from
LEOFF- covered employment.
LEOFF Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members
are eligible for retirement with five years of service at the age of 50.
The benefit per year of service calculated as a percent of final average salary (FAS) is as follows:
Term of Service Percent of final Average
20 or more years
10 but less than 20 years
5 but less than 10 years
2.0%
1.5%
1.0%
The FAS is the basic monthly salary received at the time of retirement, provided a member has held the
same position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the
highest consecutive 24 months' salary within the last ten years of service. A cost -of- living allowance is
granted (based on the Consumer Price Index).
LEOFF Plan 1 provides death and disability benefits. Death benefits for survivors of Plan 1 members on
active duty consist of the following: (1) If there is an eligible spouse, 50 percent of the FAS, plus 5 percent
of FAS for each eligible surviving child, with a limitation on the combined allowances of 60 percent of the
FAS; or (2) If there is no eligible spouse, eligible children receive 30 percent of FAS for the first child plus
10 percent for each additional child, subject to a 60 percent limitation of FAS, divided equally.
A one -time duty - related death benefit is provided to the estate of a LEOFF Plan 1 member who dies as a
result of injuries or illness sustained in the course of employment, or if the death resulted from an
occupational disease or infection that arose naturally and proximately out of the member's covered
employment, if found eligible by the Department of Labor and Industries.
The LEOFF Plan 1 disability allowance is 50 percent of the FAS plus 5 percent for each child up to a
maximum of 60 percent. Upon recovery from disability before the age of 50, a member is restored to
service with full credit for service while disabled. Upon recovery after the age of 50, the benefit continues
as the greater of the member's disability benefit or service retirement benefit.
LEOFF Plan 2 members are vested after the completion of five years of eligible service.
Plan 2 members are eligible for retirement at the age of 53 with five years of service, or at the age of 50
with 20 years of service. Plan 2 members receive a benefit of two percent of the FAS per year of service.
(the FAS is based on the highest consecutive 60 months), actuarially reduced to reflect the choice of a
survivor option. Members who retire prior to the age of 53 receive reduced benefits. If the member has at
least 20 years of service and is age 50, the reduction is three percent for each year prior to age 53.
Otherwise, the benefits are actuarially reduced for each year prior to age 53. A cost -of- living allowance is
granted (based on the Consumer Price Index), capped at three percent annually.
LEOFF Plan 2 provides disability benefits. There is no minimum amount of service credit required for
eligibility. The Plan 2 benefit amount is two percent of the FAS for each year of service. Benefits are
reduced to reflect the choice of survivor option and for each year that the member's age is less than 53,
unless the disability is duty - related. If the member has at least 20 years of service and is age 50, the
reduction is three percent for each year prior to age 53.
A disability benefit equal to 70 percent of their FAS, subject to offsets for workers' compensation and
Social Security disability benefits received, is also available to those LEOFF Plan 2 members who are
catastrophically disabled in the line of duty and incapable of future substantial gainful employment in any
86
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
capacity. Effective June 2010, benefits to LEOFF Plan 2 members who are catastrophically disabled
include payment of eligible health care insurance premiums.
Members of LEOFF Plan 2 who leave service because of a line of duty disability are allowed to withdraw
150 percent of accumulated member contributions. This withdrawal benefit is not subject to federal
income tax. Alternatively, members of LEOFF Plan 2 who leave service because of a line of duty disability
may be eligible to receive a retirement benefit of at least 10 percent of FAS and two percent per year of
service beyond five years. The first 10 percent of the FAS is not subject to federal income tax.
LEOFF Plan 2 retirees may return to work in an eligible position covered by another retirement system,
choose membership in that system and suspend their pension benefits, or not choose membership and
continue receiving pension benefits without interruption.
A one -time duty - related death benefit is provided to the beneficiary or the estate of a LEOFF Plan 2
member who dies as a result of injuries or illness sustained in the course of employment, or if the death
resulted from an occupational disease or infection that arose naturally and proximately out of the
member's covered employment, if found eligible by the Department of Labor and Industries.
Benefits to eligible surviving spouses and dependent children of LEOFF Plan 2 members killed in the
course of employment include the payment of eligible health care insurance premiums.
Legislation passed in 2009 provides to the Washington state registered domestic partners of LEOFF Plan
2 members the same treatment as married spouses, to the extent that the treatment is not in conflict with
federal laws.
LEOFF members meeting specific eligibility requirements have options available to enhance their
retirement benefits. Some of these options are available to their survivors.
There are 374 participating employers in LEOFF. Membership in LEOFF consisted of the following as of
the latest actuarial valuation date for the plans of June 30, 2012:
Type of Membership Membership
Retirees and Beneficiaries Receiving Benefits 10,189
Terminated Plan Members Entitled to But Not Yet Receiving Benefits 689
Active Plan Members Vested 14,273
Active Plan Members Non - vested 2,633
Total 27,784
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CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Funding Policy
Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund
the plans. Starting on July 1, 2000, Plan 1 employers and employees contribute zero percent, as long as
the plan remains fully funded. Plan 2 employers and employees are required to pay at the level adopted
by the LEOFF Plan 2 Retirement Board.
The Legislature, by means of a special funding arrangement, appropriates money from the state General
Fund to supplement the current service liability and fund the prior service costs of Plan 2 in accordance
with the recommendations of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. This
special funding situation is not mandated by the state constitution and this funding could be changed by
statute. For DRS' Fiscal Year 2013, the state contributed $54.2 million to LEOFF Plan 2.
The methods used to determine the contribution requirements are established under state statute in
accordance with Chapters 41.26 and 41.45 RCW.
The required contribution rates expressed as a percentage of current -year covered payroll, as of
December 31, 2013, are as follows:
LEOFF Plan I LEOFF Plan II
Employer 0.18% 5.23%
Employee 0.00% 8.41%
Both the City and the employees made the required contributions. The City's required contributions for
the years ended December 31 were as follows:
LEOFF Plan I LEOFF Plan II
2013 $ 229 $ 737,626
2012 410 691,175
2011 489 654,131
Public Safety Employee's Retirement System (PSERS) Plan 2
Plan Description
PSERS was created by the 2004 legislature and became effective July 1, 2006. PSERS retirement
benefit provisions have been established by Chapter 41.37 RCW and may be amended only by the
State Legislature.
PSERS is a cost - sharing multiple - employer retirement system comprised of a single defined benefit
plan, PSERES Plan 2.
PSERS Plan 2 membership includes:
• PERS 2 or 3 employees hired by a covered employer before July 1, 2006, who meet at least one
of the PSERS eligibility criteria and elected membership during the election period of July 1,
2006 to September 30, 2006; and
• Employees, hired on or after July 1, 2006 by a covered employer, that meet at least one of the
PSERS eligibility criteria.
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CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Covered employers include:
• State of Washington agencies: Department of Corrections, Department of Natural Resources,
Gambling Commission, Liquor Control Broad; Parks and Recreation Commission, and
Washington State Patrol;
• Washington State counties;
• Washington State cities except for Seattle, Spokane and Tacoma; and
• Correctional entities formed by PSERS employers under the Interlocal Cooperation Act.
To be eligible for PSERS, an employee must work on a full -time basis and:
• Have completed a certified criminal justice training course with authority to arrest, conduct
criminal investigations, enforce the criminal laws of Washington and carry a firearm as part of
the job; or
• Have primary responsibility to ensure the custody and security of incarcerated or
probationary individuals; or
• Function as a limited authority Washington peace officer, as defined in RCW 10.93.020; or
• Have primary responsibility to supervise eligible members who meet the above criteria.
PSERS retirement benefits are financed from a combination of investment earnings and employer and
employee contributions. Employee contributions to the plan accrue interest at a rate specified by the
Director of DRS. During DRS' Fiscal Year 2013, the rate was five and one -half percent compounded
quarterly. Members in PSERS Plan 2 can elect to withdraw total employee contributions and interest
theron, in lieu of any retirement benefit, upon separation from PSERS- covered employment.
PSERS Plan 2 members are vested after the completion of five years of eligible service.
PSERS members may retire with a monthly benefit of two percent of the average final compensation
(AFC) at the age of 65 with five years of service, or at the age of 60 with at least 10 years of PSERS
service credit, or at age 53 with 20 years of service. The AFC is the monthly average of the member's 60
consecutive highest -paid service credit months. There is no cap on years of service credit; and a cost -of-
living allowance is granted (based on the Consumer Price Index), capped at three percent annually.
PSERS members who retire prior to the age of 60 receive reduced benefits. If retirement is at age 53 or
older with at least 20 years of service, a three percent per year reduction for each year between the age
at retirement and age 60 applies.
PSERS Plan 2 provides disability benefits. There is no minimum amount of service credit required for
eligibility. The monthly benefit is two percent of the AFC for each year of service. The AFC is based on
the member's 60 consecutive highest creditable months of service. Benefits are actuarially reduced for
each year that the member's age is less than 60 (with ten or more service credit years in PSERS), or
less than 65 (with fewer than ten service credit years). There is no cap on years of service credit, and a
cost -of- living allowance is granted (based on the Consumer Price Index), capped at three percent
annually.
PSERS members meeting specific eligibility requirements have options available to enhance their
retirement benefits. Some of these options are available to their survivors.
A one -time duty - related death benefit is provided to the beneficiary or the estate of a PSERS member
who dies as a result of injuries or illness sustained in the course of employment, or if the death resulted
from an occupational disease or infection that arose naturally and proximately out of the member's
covered employment, if found eligible by the Department of Labor and Industries.
89
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
There are 75 participating employers in PSERS. Membership in PSERS consisted of the following as of
the latest actuarial valuation date for the plan of June 30, 2012:
Type of Membership Membership
Retirees and Beneficiaries Receiving Benefits 27
Terminated Plan Members Entitled to But Not Yet Receiving Benefits 60
Active Plan Members Vested 2,083
Active Plan Members Non - vested 2,167
Total 4,337
Funding Policy
Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee contribution
rates. The employer and employee contribution rates for Plan 2 are developed by the Office of the State
Actuary to fully fund Plan 2.
The methods used to determine the contribution requirements are established under state statue in the
accordance with Chapters 41.37 and 41.45 RCW.
The required contribution rates expressed as a percentage of current -year covered payroll, as of
December 31, 2013 are as follows:
Employer
Employee
PSERS Plan II
10.54%
6.36%
Both the City and the employees made the required contributions. The City's required contributions for
the years ended December 31 were as follows:
PSERS Plan II
2013 $ 14,175
2012 11,187
2011 8,712
Firemen's Pension System
Plan Description
The City is the administrator of the Firemen's Pension Plan which is a closed, single - employer, defined
benefit pension plan that was established in conformance with RCW Chapter 41.18. This plan provides
retirement and disability benefits, annual cost -of- living adjustments, and death benefits to plan members
and beneficiaries. Membership is limited to fire fighters employed prior to March 1, 1970 when the LEOFF
retirement system was established. The City's obligation under the Firemen's Pension Plan consists of
paying all benefits, including payments to beneficiaries, for fire fighters who retired prior to March 1, 1970
and excess benefits over LEOFF for covered fire fighters who retired after March 1, 1970. Benefits and
refunds of the defined benefit pension plan are recognized when due and payable in accordance with the
Plan. The Plan does not issue a separate financial report.
Membership of the Firemen's Pension Plan consisted of the following at December 31, 2013.
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CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Type of Membership
Retirees and beneficiaries receiving benefits
Retirees currently receiving full retirement benefits through the
Law Enforcement Officers and Fire Fighters Retirement Plan (LEOFF)
Total
Total
10
1
11
Funding Policy
Under State law, the Firemen's Pension Plan is provided an allocation of all monies received by the State
from taxes on fire insurance premiums; interest earnings; member contributions made prior to the
inception of LEOFF; and City contributions required to meet projected future pension obligations. An
actuarial valuation was completed as of January 1, 2013 and it was determined that current assets of the
fund, along with future revenues from state fire insurance taxes and interest earnings, will be sufficient to
pay all future Firemen's Pension Plan pension benefits. In 2013 $56,962 was received from the state
from taxes on fire insurance premiums. On- behalf payments of fringe benefits and salaries for the City's
employees were recognized as revenues and expenditures /expenses during the period. Costs to
administer the plan are paid for through investment earnings and General Fund resources. The Actuarial
Valuation of Firefighters' Pension Fund table is reported in the Required Supplemental Information
section, and a recap of the Schedule of Funding Progress is as follows:
PENSION SCHEDULE OF FUNDING PROGRESS
Actuarial Actuarial Value
Valuation Date of Assets
Actuarial
Accrued
Liabilities
Unfunded Actuarial
Accrued Liabilities
(UAAL)
UAAL as a
Funded Covered Percentage of
Ratio Payroll Covered Payroll
January 1, 2005
January 1, 2007
January 1, 2009
January 1, 2011
January 1, 2013
$1,265
1,336
1,445
1,430
1,416
$1,182
1,310
1,610
1,582
1,296
($83)
(26)
165
152
(120)
107%
102
90
90
109
$0
0
442
371
0
N/A
N/A
37
41
N/A
The Firemen's Pension Plan does not issue a stand -alone financial report and is not included in another
Public Employee Retirement System or another entity. Biennially a complete actuarial valuation financial
report, including an accounting update for intervening years, is prepared by Milliman USA, Incorporated.
This report is available from the City of Tukwila.
91
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Basis of Accounting
The financial statements are prepared using the accrual basis of accounting. Benefits are recognized
when due and payable in accordance with the plan.
ANNUAL PENSION COST AND NET PENSION OBLIGATION
2011 2012
2013
1 Annual normal cost (BOY)
2 Amortization of UAAL (BOY)
3 Interest to EOY
4 ARC at EOY
5 Interest on NPO
6 Adjustment to ARC
7 Annual Pension cost
8 Employer contributions **
9 Change in NPO
10 NPO at BOY
(1 + 2 x i *)
(1 + 2 + 3)
(4 + 5 - 6)
(7- 8)
(11 prior yr)
$ - $
11,523
461
- $
11,523 (9,690)
461 (363)
11,984
11,984 (10,053)
(11,400) (12,393)
(21,647) (24,488)
22,231 24,079
47,065 50,599
(12,613)
(27,312)
4,646
49,187
(24, 834)
(284,998)
(26,520)
(309,832)
(44,541)
(336,352)
11 NPO at EOY (9 + 10) $ (309,832) $ (336,352) $ (380,893)
* (i) is the assumed interest rate that year: 4.0% in 2011, 4.0% in 2012, and 3.75% in 2013.
** Employer contributions for pensions are total contributions to the Fund net of disbursements from the Fund for medical
expenses under ROW 41.26.150 and administrative expenses.
The Annual Required Contribution (ARC) was computed using the Entry Age Normal Cost Method.
Under this method, the projected benefits are allocated on a level basis as a percentage of salary over
the earnings of each individual between entry age and exit age. The amount allocated to each year is
called the Normal Cost and the portion of the Actuarial Present Value of all benefits not provided for by
future Normal Cost payments is called the Actuarial Accrued Liability. Since all members have already
retired, the amount of the Normal Cost is zero. The Unfunded Actuarial Accrued Liability (UAAL) is the
Actuarial Accrued Liability minus the actuarial value of the Fund's assets.
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CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
ANNUAL DEVELOPMENT OF PENSION COST
Interest on
Fiscal Annual Net
Year Required Pension ARC
Ended Contribution Obligation Adjustment
Annual
Pension
Cost
Total Change in
Employer Net Net Pension Amortization-- -
Contri- Pension Obligation (Gain)/ (Gain)/
butions Obligation Balance Loss Factor Loss
Ending
Balance
2011
2012
2013
11,984
11,984
(10,053)
(11,400)
(12,393)
(12,613)
(21, 647)
(24,488)
(27,312)
22,231
24,079
4,646
47,065
50,599
49,187
(24,834)
(26,520)
(44,541)
(309,832)
(336, 352)
(380,893)
(35,081) 13.1657
(38,615) 12.6523
(59,240) 12.3153
PERCENTAGE OF ANNUAL PENSION COST CONTRIBUTED
(21,647)
(24,488)
(27,312)
Fiscal Year Ending
Annual Contribution as a* Net Pension
Pension Cost Percentage of Obligation
(APC) APC (Asset)
December 31, 2011
December 31, 2012
December 31, 2013
22,231
24,079
4,646
212
210
1059
* In years with a negative APC, this percentage is not applicable.
(309, 832)
(336, 352)
(380, 893)
(309, 832)
(336,352)
(380,893)
The information presented in the preceding required schedules were determined as part of the actuarial
valuations at the dates indicated.
The key actuarial assumptions used for the January 1, 2013 valuation were:
Actuarial Valuations
Actuarial valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Assumptions
January 1, 2013
Entry Age Normal
30 -year, closed as of January 1, 1999
18 years
Fair market value
Investment rate of return
Projected salary increases
Price inflation
Cost -of- living adjustments
3.75%
3.50%
2.50%
Based upon salary increase assumption
when appropriate, for FPF benefits.*
Based upon inflation assumption for some
FPF benefits and all LEOFF benefits.
* Under the Firemen's Pension Trust Fund, most adjustments are based on the change in
salary for the rank of members held at retirement or based on the Consumer Price Index.
Adjustments are determined in accordance with RCW 41.18.150, RCW 41.20 and RCW
41.26
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CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
The Schedule of Funding progress, presented as required supplementary information following the notes
of the financial statements, presents multiyear trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. The
Schedule of Employer Contributions is also included as required supplementary information following the
notes to the financial statements.
NOTE 10 — OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLAN
Plan Description
The City is the administrator of the Retiree Medical and Long -Term Care Benefits for LEOFF 1
Employees Plan which is a closed, single - employer, defined benefit, other post - employment benefit plan
(OPEB). The benefits are authorized under state statute, RCW Chapters 41.16 and 41.18 and 41.26 and
may be amended by the state legislature. This plan provides medical, dental and long -term care benefits
to eligible retirees. Membership is limited to eligible law enforcement officers and fire fighters hired prior
to the March 1, 1970 establishment of LEOFF, as well as eligible members of LEOFF hired prior to
October 1, 1977. Financial reporting for the LEOFF retiree healthcare plan is included in the City's
Comprehensive Annual Financial Report. Triennially, a complete actuarial valuation financial report is
prepared by Milliman USA, Incorporated. This report is available from the City.
Membership
As of December 31, 2013, there were 1 active employees and 40 retirees meeting the eligibility
requirements of a LEOFF 1 member. This is considered a closed group with no new members.
Funding Policy
Funding for LEOFF 1 retiree healthcare costs is provided entirely by the City as required by RCW. The
City's funding policy is based upon pay -as- you -go financing requirements. The employee or retiree is not
required to contribute to the cost of the plan. The annual contribution represents the cost of employer -
paid benefits.
Annual OPEB Cost and Net OPEB Obligation
The City's annual other postemployment benefit (OPEB) cost is calculated based on the annual required
contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB
Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected
to cover normal cost each year and amortize unfunded actuarial liabilities over a period 21 years as of
January 1, 2008. The following tables show the components of the City's annual OPEB cost for the year,
the amount actually contributed to the plan, and changes in the City's net OPEB obligation.
94
Total
Fiscal Annual Interest on Employer Change in Net OPEB Amortization-- -
Year Required Net OPEB ARC Annual Contri- Net OPEB Obligation (Gain)/ (Gain)/ Ending
Ended Contribution Obligation Adjustment OPEB Cost butions Obligation Balance Loss Factor* Loss Balance
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
ANNUAL OPEB COST AND NET OPEB OBLIGATION
2011
2012 2013
1 Annual normal cost (BOY)
2 Amortization of UAAL (BOY)
3 Interest to EOY
4 ARC at EOY
(1 + 2 xi*)
(1 + 2 + 3)
$ 91,385 $ 91,385 $ 91,385
1,124, 502 1,124, 502 1,124, 502
48,635 48,635 48,635
1,264,522
1,264,522 1,264,522
5 Interest on Net OPEB Obligation 112,598 145,727 174,458
6 Adjustment to ARC 213,809 287,945 359,904
7 Annual OPEB cost (4 + 5 - 6) 1,163,311 1,122,304 1,079,076
8 Employer contributions 335,090 404,007 878,755
9 Change in Net OPEB Obligation (7- 8) 828,221 718,297 200,321
10 Net OPEB Obligation at BOY (11 prior yr) 2,814,942 3,643,163 4,361,460
11 Net OPEB Obligation at EOY (9 + 10) $ 3,643,163 $ 4,361,460 $ 4,561,781
* (i) is the assumed interest rate that year: 4% in 2011, 4% in 2012, and 4% in 2013.
The net OPEB obligation of $4,561,781 is included as a non - current liability on the Statement of Net
Position.
ANNUAL DEVELOPMENT OF OPEB COST
2008 $ 1,366,284 $ - $ - $1,366,284 $ 557,103 $ 809,181 $ 809,181 $ 809,181 13.4622 $ - $ 809,181
2009 1,366,284 40,459 61,839 1,344,904 335,265 1,009,639 1,818,820 1,031,019 13.0853 61,839 1,818,820
2010 1,366,284 90,941 143,332 1,313,893 317,771 996,122 2,814,942 1,048,513 12.6896 143,332 2,814,942
2011 1,264,522 112,598 213,809 1,163,311 335,090 828,221 3,643,163 929,432 13.1657 213,809 3,643,163
2012 1,264,522 145,727 287,945 1,122,304 404,007 718,297 4,361,460 860,515 12.6523 287,945 4,361,460
2013 1,264,522 174,458 359,904 1,079,076 878,755 200,321 4,561,781 385,767 12.1184 359,904 4,561,781
* Based on a 21 -year closed amortization as of January 1, 2008
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation were as follows:
PERCENTAGE OF ANNUAL OPEB COST CONTRIBUTED
Fiscal Year Ending
Percentage of
Annual OPEB Employer Annual OPEB Net OPEB
Cost Contribution Cost Contributed Obligation
December 21, 2011 1,163,311 335,090 29 3,643,163
December21, 2012 1,122,304 404,007 36 4,361,460
December 21, 2013 1,079,076 878,755 81 4,561,781
Funded Status and Funding Progress
As of January 1, 2014, the most recent actuarial valuation date, the plan was 0% funded. The actuarial
accrued liability for benefits was $21.3 million, and the actuarial value of assets was $0, resulting in an
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CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
unfunded actuarial accrued liability (UAAL) of $21.3 million and a funded ratio of 0 %. The funded ratio is
0 %, because the City funds benefits on a pay -as- you -go basis.
SCHEDULE OF FUNDING PROGRESS (rounded to thousands)
Actuarial
Actuarial Value Accrued
Valuation Date of Assets Liabilities
Unfunded Actuarial
Accrued Liabilities
(UAAL)*
UAAL as a
Funded Covered Percentage of
Ratio Payroll Covered Payroll
January 1, 2008 $0
January 1, 2011 0
January 1, 2014 0
* Only three valuations completed to date
$16,103
14,805
21,264
$16,103
14,805
21,264
0%
0
0
$581
371
195
4%
3
1
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared with past expectations and new estimates are made
about the future.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the
time of each valuation. The actuarial methods and assumptions used include techniques that are
designed to reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long -term perspective of the calculations. Significant methods and
assumptions were as follows:
Actuarial Valuations
Valuation date
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
January 1, 2011
Entry Age Normal
21 -year, closed as of January 1, 2008
18 years
Fair market value
Assumptions
Investment rate of return
Medical inflation
Long -term care inflation
4.00%
Year
2011
2012
2013
2014 -2019
2020 -2030
2031 -2036
4.75%
Medical Cost Rate
7.80%
7.10%
6.50%
5.90%
5.80%
5.70%
The Schedule of Funding Progress, presented as required supplementary information following the
notes to the financial statements, provides the multi -year trend information showing whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actual.
96
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 11 — LONG -TERM DEBT
Governmental Activities Long -Term Debt
General Obligation Bonds are direct obligations of the City for which its full faith and credit are pledged.
Debt service for voter - approved issues, of which the City has none, would be funded by special property
tax levies. Debt service for City Council authorized bonds, also called councilmanic bonds, is funded
from regular property taxes, sales taxes, or other general revenues, and is generally paid from debt
service funds. The City currently maintains a rating of Al from Moody's Investor Service and a rating of
AA- from Fitch's Rating Service for its General Obligation Bonds.
General Obligation Bonds outstanding at year -end are as follows:
• 2003 LTGO refunding bonds were issued to refund the remaining debt of the 1994 LTGO bonds.
1994 LTGO bonds were issued to pay for the Community Center and Fire Station #53.
• 2008 LTGO bonds were issued to refund the remaining debt of the 1999 LTGO bonds. The 1999
LTGO bonds were issued to purchase an additional City Hall Annex (6300 building) and
economic revitalization projects.
• 2010 LTGO bonds were issued for the construction and realignment of Southcenter Parkway in
the Tukwila South Annexation area and for the cost of emergency preparedness capital and
other equipment.
• 2011 LTGO refunding bonds were issued to refund a portion of the bonds issued in 2003 for the
City's Arterial Street program.
• 2013 LTGO bonds were issued and the proceeds loaned to the Tukwila Metropolitan Park District
to pay for improvements to the pool.
Special assessment bonds are issued to finance construction of local improvement district (LID) projects
and are repaid through assessments collected from property owners benefiting from related
improvements. Although the bonds are secured by liens against assessed properties, the City is required
under state law to establish a guaranty fund to provide a means of paying LID bond debt service
obligations in the event there are insufficient resources in the LID debt service fund. The special
assessment bonds are not general obligation debt but the City is obligated in some manner to cover the
interest on the bonds. Therefore, the bonds are reported as Special Assessment Debt with
Governmental Commitment.
Special assessments outstanding at year -end are as follows:
• 2013 special assessment bonds LID No. 33 were issued to reimburse the City for a portion of the
costs of a major reconstruction of Klickitat and Southcenter Parkway to improve access to the
urban center.
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CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Business -Type Activities Long -Term Debt
Revenue bond indebtedness issued to fund proprietary activities is recorded in proprietary funds. Debt
service payments are made from operating revenues generated by the proprietary funds. In proprietary
funds, unamortized debt issue costs are recorded as deferred charges and bonds are displayed net of
premium or discount; annual interest expense is decreased by amortization of debt premium and
increased by the amortization of debt issue costs and discount. The City currently maintains a rating of
Aaa from Moody's Investor Service for debt in this category.
State of Washington Public Works Trust Fund Loans are a low interest rate loans available from the State
of Washington Department of Commerce, Local Government & Infrastructure Division for qualifying
projects and are a direct responsibility of the City. This debt is repaid by proprietary fund revenues.
The City is in compliance with all Washington State debt limitation statutes and bond indenture
agreements.
The schedules that follow summarize the long -term debt transactions of the City for the year ended
December 31, 2013.
CHANGES IN LONG -TERM LIABILITIES SUMMARY
REVENUE PUBLIC WORKS DUE TO
GENERAL SPECIAL BONDS TRUST FUND COMPENSATED OTHER
OBLIGATION ASSESSMENT UTILTIES LOANS ABSENCES' GOVERNMENTS TOTAL
Outstanding 01/01/2013 $18,360,000 $ - $3,540,000 $ 6,621,364 $ 3,477,305 $ 7,392,600 $ 39,391,269
Added 1,000,000 6,687,500 - - 2,937,241 10,624,741
Retired / redeemed (4,653,991) (465,000) (558,294) (2,757,276) (371,000) (8,805,560)
Outstanding 12/31/2013 $14,706,009 $6,687,500 $3,075,000 $ 6,063,071 $ 3,657,270 $ 7,021,600 41,210,450
Add: Premium net of discounts 730,129
Total Long -Term Liabilities $ 41,940,579
1 Compensated absences beginning balance restated due to inclusion of Metropolitan Park District. See Changes in Long -Term Liabilities section for additional details.
98
CITY OF TUKWILA: 2013 CAFR
NOTES TO THE FINANCIAL STATEMENTS
Debt Service to Maturity
Following is a schedule showing the debt service requirements to maturity for the City's long -term debt,
excluding compensated absences.
2014
2015
2016
2017
2018
2019 - 2023
2024 2028
2029 2033
2034 - 2038
$ 1,917,788 $ 743,479
1,514,507 649,495
1,563,737 593,400
1,616,428 528,915
1,679,196 445,846
5,914,353 1,092,810
500,000 27,050
$ 371,200 $ 286,263
385,200 271,560
171,600 255,861
179,200 249,088
184,800 243,173
1,032,400 1,103, 504
1,254,000 875,353
1,541,200 580,236
1,902,000 211,365
$
447,500
450,000
450,000
445,000
2,225,000
2,225,000
445,000
$
346,784
286,005
271,830
257,655
1,017,938
478,375
23,919
$ 3,318,730
3,615,046
3,320,603
3,295,460
3,255,670
12, 386, 006
5,359,778
2,590,355
2,113, 365
Totals $14,706,009 $ 4,080,995 $ 7,021,600 $ 4,076,402 $ 6,687,500 $2,682,505 $ 39,255,011
Year Ended
December
31
Government Activities
Year Ended
December
31
General Obligation
Bonds
Due to Other Governments
Special Assessments
TOTAL
Principal Interest
Principal Interest
Principal Interest
2014
2015
2016
2017
2018
2019 - 2023
2024 2028
2029 2033
2034 - 2038
$ 1,917,788 $ 743,479
1,514,507 649,495
1,563,737 593,400
1,616,428 528,915
1,679,196 445,846
5,914,353 1,092,810
500,000 27,050
$ 371,200 $ 286,263
385,200 271,560
171,600 255,861
179,200 249,088
184,800 243,173
1,032,400 1,103, 504
1,254,000 875,353
1,541,200 580,236
1,902,000 211,365
$
447,500
450,000
450,000
445,000
2,225,000
2,225,000
445,000
$
346,784
286,005
271,830
257,655
1,017,938
478,375
23,919
$ 3,318,730
3,615,046
3,320,603
3,295,460
3,255,670
12, 386, 006
5,359,778
2,590,355
2,113, 365
Totals $14,706,009 $ 4,080,995 $ 7,021,600 $ 4,076,402 $ 6,687,500 $2,682,505 $ 39,255,011
Year Ended
December
31
Business -Type Activities
General Obligation
Bonds
Revenue Bonds
Public Works Trust Fund
Loans
TOTAL
Principal Interest
Principal Interest
Principal Interest
2014
2015
2016
2017
2018
2019 - 2023
2024 - 2026
Totals
$
$
$
$
$ 495,000 $ 139,953
520,000 110,172
150,000 91,950
155,000 85,950
165,000 78,975
930,000 277,425
660,000 60,300
$ 3,075,000 $ 844,725
$ 558,293 $ 30,315
558,293 27,524
558,293 24,732
558,293 21,941
558,293 19,149
2,739,363 16,358
532,242 2,661
$ 6,063,071 $ 142,681
$ 1,223,561
1,215,989
824,975
821,184
821,418
3,963,146
1,255,203
$ 10,125,477
99
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Changes in Long -Term Debt
CHANGES IN LONG -TERM LIABILITIES — GOVERNMENTAL FUNDS
ITEM
Interest OUTSTANDING
OUTSTANDING Due Within
Rates Maturity Authorized 12/31/2012 ISSUED REDEEMED 12/31/13 One Year
GOVERNMENTAL ACTIVITIES:
Limited General Obligation (GO) Bonds Payable:
2003 Refunding -TCC, Fire Stn 4.00 -5.00 12/01/14 $ 4,195,000 $ 910,000
2003 LTGO-Golf Course 4.25 -4.65 12/01/23 6,277,500 3,240,000
2008 Refunding- Streets /Facilities 4.00 -6.00 12/01/19 6,180,000 4,545,000
2010 LTGO- Streets /Equipment 2.00 -5.41 12/01/24 5,870,000 5,070,000
2011 Refunding- Streets (2003 GO) 12/01/39 4,620,000 4,595,000
2013 LTGO -MPD Pool Improve 2.00 -4.00 12/01/22 1,000,000
Total Bonds Payable
Unamortized Premiums:
Issuance premiums
Net Bonds Payable
Due to Other Governments
2009 Facility SCORE
2010 Refunding Valley Com
28,142,500 18,360,000
■
$ $ 445,000 $ 465,000 $ 465,000
3,240,000 - -
500,000 4,045,000 595,000
355,000 4,715,000 365,000
15,000 4,580,000 395,000
1,000,000 98,991 901,009 97,788
1,000,000 4,653,991 14,706,009 1,917,788
827,832 - 143,552
684,280
■
3.00 -6.62 01/01/39
4.30 -5.75 12/01/15
28,142,500
19,187,832 1,000,000 4,797,542
6,898,800 6,745,600
1,065,000 647,000
156,000
215,000
15,390,290 1,917,788
Total Due Other Governments
7,963,800 7,392,600
371,000
Special Assessment Debt
Klickitat Urban Access Project 3.150 -5.375 01/15/29 6,687,500 6,687,500
6,589,600
432,000
7,021,600
6,687,500
159,200
212,000
371,200
Total Special Assessment Debt
6,687,500 - 6,687,500
6,687,500
Compensated Absences: 1
3,168,775 2,669,860 2,500,668 3,337,967
Total Governmental Funds $ 42,793,800 $ 29,749,207 $ 10,357,360 $ 7,669,210 $ 32,437,357 $ 2,288,988
1 Prior year compensated abesnces earned was greater then w hat was taken. Using LIFO, there is no current portion to report.
Net bonds payable beginning balance has been restated due to the implementation of GASB Statement
No. 65 Items Previously Reported as Assets and Liabilities. This statement calls for deferred charges on
refunding bond issues to be reported as a deferred outflow of resources rather than bonds and other debt
payable, due in more than one year.
Additionally, compensated absences beginning balance has been restated to reflect the Tukwila
Metropolitan Park District as a blended component unit. Prior to 2013, the MPD was reported as a
discretely presented component unit and the compensated absences related to the MPD was not
included in the Changes in Long -term Liabilities — Governmental Funds chart.
ITEM
BEGINNING
BEGINNING BLENDED GASB BALANCE
BALANCE COMPONENT STATEMENT 12/31/2012,
12/31/2012 UNIT NO. 65 RESTATED
Net Bonds Payable
Compensated Absences
$18,589,476 $
3,144,413
- $ 598,356 $
24,362
19,187, 832
3,168, 775
100
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
CHANGES IN LONG -TERM LIABILITIES - BUSINESS -TYPE ACTIVITIES
ITEM
Interest
OUTSTANDING OUTSTANDING Due Within
Rates Maturity Authorized 12/31/2012 ISSUED REDEEMED 12/31/13 One Year
BUSINESS -TYPE ACTIVITIES:
Bonds Payable:
1995 Water /Sewer Revenue 4.15 -6.63 02/01/15 $ 4,500,000 $ 1,060,000 $ - $ 330,000 $ 730,000 $ 355,000
2006 Water /Sewer /SWMRevenum 4.00 -4.50 12/01/26 3,180,000 2,480,000 135,000 2,345,000 140,000
Total Bonds Payable
Unamortized Deferred Credits (Charges):
Issuance Premiums
Issuance Discounts
7,680,000 3,540,000 465,000 3,075,000 495,000
58,070 11,150
(12,695) - (11,623)
Net Bonds Payable
Public Works Trust Fund Loans:
2003 Loan - Water /Sewer
2003 Loan - Surface Water
2004 Loan- Water /Sewer
2004 Loan - Surface Water
2004 Loan - Surface Water
7,680,000 3,585,375
0.50 07/01/21 273,870
0.50 07/01/21 219,725
0.50 -2.00 07/01/24 5,016,000
0.50 -2.00 07/01/24 684,000
1.00 07/01/24 4,196,056
129,962
104,496
3,274,635
446,541
2,665,730
464,528
14,328
11,723
272,886
37,212
222,144
46,920
(1,072)
3,120,848 495,000
115,634 14,454
92,773 11,597
3,001,749 272,886
409,329 37,212
2,443,586 222,144
6,063,071 558,293
Total Public Works Trust Fund Loans
11,702,651 6,621,364
558,294
Compensated Absences: 308,530 267,381 256,608 319,303 5,098
Total Business -Type Activities
$ 19,382,651 $ 10,515,270 $ 267,381 $ 1,279,429 $ 9,503,222 $ 1,058,391
TOTAL ALL FUNDS
$ 62,176,451 $ 40,264,477 $ 10,624,741 $ 8,948,640 r$ 41,940,578 $ 3,347,379
Due to Other Governments
Valley Communication Center Public Development Authority issued General Obligation bonds in 2000 for
a new dispatch facility and refunded the debt in April 2010. The City is contracted to pay 20% of the debt
service of these 15 -year bonds that mature in 2015. This debt is paid from the General fund.
SCORE Public Development Authority issued General Obligation bonds in 2009 to acquire, construct,
improve, and equip a consolidated correctional facility to be located in Des Moines, Washington. The City
is contracted to pay 8% of the debt service of these 30 year bonds that mature in 2039. This debt is paid
from the General fund.
LONG -TERM LIABILITIES RECONCILIATION
Government Enterprise Balance
Funds Funds 12 -31 -13
General obligation bonds
Special assessment bonds
Revenue bonds
Public Works Trust Fund loans
Due to Other Governments
Employee leave benefits
Net Premiums
$ 14, 706, 009 $
6,687,500
7,021,600
3,337,967
684,280
3,075,000
6,063,071
319,303
45,849
$ 14,706,009
6,687,500
3,075,000
6,063,071
7,021,600
3,657,270
730,129
Total long -term debt $ 32,437,357 $ 9,503,222 $ 41,940,579
101
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Debt Limit Capacities
State law provides that debt cannot be incurred in excess of the following percentages of the value of the
taxable property of the City: 1.5% without a vote of the people; 2.5% with a vote of the people; 5.0% with
a vote of the people, provided the indebtedness in excess of 2.5% is for utilities; 7.5% with a vote of the
people, provided the indebtedness in excess of 5.0% is for parks or open space development.
At December 31, 2013, the debt limits for the City were as follows:
SUMMARY OF DEBT LIMIT CAPACITIES
Item
Without a Vote
1.5%
With a Vote of the People
2.5% 5.0% 7.5%
Legal Limit $ 71,345,605 $ 118,909,342
Outstanding Net
Indebtedness 26,231,623 26,231,623
Margin Available $ 45,113,982 $ 92,677,719
$ 237, 818, 684 $ 356, 728, 027
26, 231, 623 26, 231, 623
$ 211,587,061 $ 330,496,404
Long -term Liabilities other than debt
Claims are paid from one or more funds based on the nature of the transaction. Employees'
compensable leave is the City's liability for all unused vacation and sick leave and unpaid overtime
accrued by employees and, payable under specified conditions. This obligation is paid only at the time of
termination, usually from the same funding source(s) from which the employee's salary or wage
compensation was paid.
The City does not report a liability for termination benefits because it is not reasonably estimable.
LID No. 33
Tukwila Urban Access Improvement Project Local Improvement District (LID) No. 33 was formed on
November 16, 2009 by Ordinance No. 2260. The project was designed to improve congestion within the
City's Urban Center. The project included a partial lid over Southcenter Parkway, removal of conflicting
turning movements, and the widening of Southcenter Parkway.
Construction for the project began in March 2011 and was completed in October 2011. The project was
closed out and accepted as complete by City Council on February 19, 2013.
A variety of funding sources were used to pay for the project including federal and state grants, impact
fees, City funds, a right -of -way donation, and special assessments. The City chose to fund the project
internally, rather than obtain external, short -term financing then apply special assessments to property
owners after the project was completed. Fund 104 Arterial Streets, where the project was accounted for,
loaned the project funds as needed using a draw method at an interest rate of 1.80 %. This loan was
repaid in 2013 when special assessment bonds were issued.
The City confirmed the assessment roll with a final assessment of $9,475,894. The prepayment period
for the special assessments was open in the fall of 2013 and during that time the City received
$2,788,350 in prepayments. Once the prepayment window closed, the City issued bonds for the
remaining outstanding assessments in the amount of $6,687,500. From these proceeds, the City
deposited $668,750 to the guaranty fund. The first of 15 annual installments for the assessments will be
due by October 16, 2014.
As of December 31, 2013, all assessments are current and no accounts are delinquent or in default.
102
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
Estimated Arbitrage Rebate
The Federal Tax Reform Act of 1986 requires issuers of tax - exempt debt of over $5 million to make
payments to the United States Treasury of investment interest received at yields that exceed the issuer's
tax - exempt borrowing rates. Payments of arbitrage rebate amounts due under these regulations must be
made to the U.S. Treasury every five years. The City's estimated rebatable arbitrage amount as of
December 31, 2013 is $0 for its tax - exempt bond issues subject to the Tax Reform Act.
NOTE 12 — CONSTRUCTION COMMITMENT
Upon completion, the projects will be capitalized in their appropriate categories in the Government Wide
Statements and in the proprietary fund financials, if applicable. As of December 31, 2013 the City share
of contractual obligations on construction projects total $4,020,911.
Project Name
Remaining
Commitment
Interurban Avenue South
Tukwila Urban Center
Duwamish Gardens
City Facilities Needs Assessment & Feasibility
Andover Park West
42nd Avenue S
Boeing Access Rd over BNRR Rehab Design
Other governmental projects
4,248
859,780
113,578
298,261
608,841
392,579
187,425
53,670
Total Governmental Activities $ 2,518,382
Project Name
Remaining
Commitment
Sewer Lift Station No. 2 $ 57,778
Storm Lift Station No.15 185,276
Small Drainage 2013 90,066
42nd Ave S Gilliam Creek Culvert 43,982
Andover Park West 1,024,834
Other Utility related projects 100,593
Total Business -Type Activities $ 1,502,528
Total Commitments $ 4,020,911
NOTE 13 — LITIGATION
There are several lawsuits in which the City is involved. The City Attorney estimates that the potential
claims against the City to have no material financial impact.
103
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 14 — RISK MANAGEMENT
The City of Tukwila is a member of the Washington Cities Insurance Authority (WCIA).
Utilizing Chapter 48.62 RCW (self- insurance regulation) and Chapter 39.34 RCW (Interlocal
Cooperation Act), nine cities originally formed WCIA on January 1, 1981. WCIA was created for the
purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self- insuring, and / or
jointly contracting for risk management services. WCIA has a total of 162 Members.
New members initially contract for a three -year term, and thereafter automatically renew on an annual
basis. A one -year withdrawal notice is required before membership can be terminated. Termination
does not relieve a former member from its unresolved loss history incurred during membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general,
automobile, police, public officials' errors or omissions, stop gap, and employee benefits liability. Limits
are $4 million per occurrence self- insured layer, and $16 million per occurrence in the re- insured
excess layer. The excess layer is insured by the purchase of reinsurance and insurance and is subject
to aggregate limits. Total limits are $20 million per occurrence subject to aggregate sublimits in the
excess layers. The Board of Directors determines the limits and terms of coverage annually.
Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and
machinery are purchased on a group basis. Various deductibles apply by type of coverage. Property
insurance and auto physical damage are self- funded from the members' deductible to $750,000, for all
perils other than flood and earthquake, and insured above that amount by the purchase of insurance.
In -house services include risk management consultation, loss control field services, claims and litigation
administration, and loss analyses. WCIA contracts for the claims investigation consultants for personnel
issues and land use problems, insurance brokerage, and lobbyist services.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as
determined by an outside, independent actuary. The assessment covers loss, loss adjustment, and
administrative expenses. As outlined in the interlocal, WCIA retains the right to additionally assess the
membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by investment of
WCIA's assets in financial instruments which comply with all State guidelines. These revenues directly
offset portions of the membership's annual assessment.
A Board of Directors governs WCIA, which is comprised of one designated representative from each
member. The Board elects an Executive Committee and appoints a Treasurer to provide general policy
direction for the organization. The WCIA Executive Director reports to the Executive Committee and is
responsible for conducting the day to day operations of WCIA.
The City insures its buildings, equipment, and vehicle property insurance with WCIA. They self -fund up
to $250,000 with standard property insurance purchased above that amount. Traveler's insures boiler
machinery and provides for employee dishonesty coverage.
The City of Tukwila has a Risk Management and a Safety Committee to oversee risk management. In
addition, the WCIA provides support for a proactive risk analysis program and a loss control manual.
There were no significant reductions in insurance coverage in the past year. During the year under
audit and in the past three years, no settlement has exceeded insurance coverage.
104
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
The City self- insures for unemployment benefits. This is budgeted each year and has not exceeded
$60,000 per year. This expense is budgeted in the Finance Department within the general fund and no
reserves are allocated because of the limited liability and historical cost.
The City also self- insures for medical, dental and other health care benefits. A third -party administrator,
Healthcare Management Administrators, Inc., provides claims administration. The City has a stop -loss
policy with Sun Life Insurance Company, which provides individual limits of $150,000 and a plan limit of
$8,086,270 in 2013. Each fund contributes an appropriate amount each year to pay premiums and
claims. Liabilities include an actuarially determined amount for claims that have been incurred but not
reported (IBNR's) and a contingency reserve equal to 2.5 times the IBNR reserve.
There were no significant reductions in insurance coverage in the past year. During the year under
audit and in the past three years, no settlement has exceeded insurance coverage.
The City self- insures for unemployment benefits. This is budgeted each year and has not exceeded
$60,000 per year. This expense is budgeted in the Finance Department within the general fund and no
reserves are allocated because of the limited liability and historical cost.
The City also self- insures for medical, dental and other health care benefits. A third -party administrator,
Healthcare Management Administrators, Inc., provides claims administration. The City has a stop -loss
policy with Sun Life Insurance Company, which provides individual limits of $150,000 and a plan limit of
$8,086,270 in 2013. Each fund contributes an appropriate amount each year to pay premiums and
claims. Liabilities include an actuarially determined amount for claims that have been incurred but not
reported (IBNR's) and a contingency reserve equal to 2.5 times the IBNR reserve.
The following table reflects changes in the balances of claims liabilities for 2013 and 2012.
SUMMARY OF HEALTH CARE CLAIM LIABILITIES
ITEM
Active Employees Retired Employees LEOFF I
2013 2012 2013 2012
Claim Liabilities at Beginning of Year
Claim expenses:
Current year and changes in estimates
Claim payments and expenses
$ 1,638,250 $ 1,499,600 $ 209,500 $ 193,200
4,745,675 4,852,259
(4,714,675) (4,713,609)
817,357
(812, 607)
388,026
(371,726)
Claim Liabilities at End of Year $ 1,669,250 $ 1,638,250 $ 214,250 $ 209,500
105
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 15 — GASB IMPLEMENTATION / CHANGES IN ACCOUNTING PRINCIPLE
Changes in Accounting Principle related to GASB Implementation
The City implemented GASB Statement No. 61, The Financial Reporting Entity: Omnibus. This required
the City to change the presentation of the Tukwila Metropolitan Park District (MPD) from a discretely
presented component unit to a blended component unit. The implementation of GASB Statement No. 61
also required the City to change the accounting for the operating loan in 2011 and 2012. When the loans
were made, the City recorded an expenditure and the MPD recorded revenue received. The prior period
adjustment reversed these entries and recorded a receivable to the City and a payable from the MPD.
Additional details on all loans to the MPD can be found in Note 1.
The City implemented GASB Statement No. 65 Items Previously Reported as Assets and Liabilities, for
the year ended December 31, 2013. The portion of this standard that impacted the City was the
requirement to eliminate the amortization of bond issuance costs. The implementation required the
expensing of outstanding bond issuance costs retroactively and showing a prior period adjustment. The
total prior period adjustment is $316,382 which restated the 2012 ending fund balance. The proprietary
statements were restated by $66,661. The governmental statements were restated by $249,721. The
amount per bond is listed in the table below.
Governmental Activities:
Name
Year /Type
Issuance Costs Remaining
as of 12/31/2012
Streets & Golf Course
Facilities
Streets & Facilities
Streets & Equipment
Streets
2003/G.O. Bonds
2003 Refunded /G.O. Bonds
2008 Refunded /G.O. Bonds
2010/G.O. Bonds
2011 Refunded /G.O. Bonds
Total
$54,021
13,419
60,676
63,452
58,153
$249,721
Business -Type Activities
Name
Year /Type
Issuance Costs Remaining
as of 12/31/2012
Water /Sewer 1995 /Revenue Bonds
Water /Sewer /SWM 2006 Revenue Bonds
Total
$10,633
56,028
$66,661
Prior Period Adjustments not related to GASB Implementation
Two construction projects were completed in early 2013; Tukwila Urban Center Access (Klickitat Local
Improvement District No. 33) and Southcenter Parkway Extension. Both were roadway projects where
the majority of expenditures were charged correctly to the Arterial Street fund. However, when the
projects were closed out, it was discovered that prior year storm drain capital expenses were incorrectly
accounted for in the arterial Street fund rather than the Surface Water Management fund. The prior
period adjustment moves the costs and related revenue from the Arterial Street fund to the Surface
Water Management fund and adjusts construction -in- progress as needed.
The City has a franchise agreement with the Highline Water District which requires the District, at their
own expense, to relocate District water assets to accommodate any City improvements. Due to a
development agreement the City entered into to develop certain real property, the water district was
106
CITY OF TUKWILA: 2013 CAFR NOTES TO THE FINANCIAL STATEMENTS
required to relocate its water assets as well as construct larger water mains to accommodate future
growth in capacity. The City and Highline entered into an interlocal agreement to include the water
district's water costs with the City's construction contract bid. The water district would then reimburse
the City for the construction, restoration, and administrative costs. When the project was closed out in
2013, it was discovered that the costs related to this interlocal agreement had been included in
Construction -in- Progress for the City. The prior period adjustment reduces construction -in- progress
totals by the amount of the Highline Water District agreement.
The following chart summarizes the effect of all changes in accounting principle /prior period
adjustments:
DESCRIPTION
FUND FINANCIAL STATEMENTS
GOV'T WIDE
Primary
Go',emment
FUND FINANCIAL STATEMENTS
GOV'T WIDE
Business -
Type
GOVT WIDE
TOTAL
Assets transferred from
Arterial Street to Storm Water
Cash
Capital asset
Fund Balance
Assets constructed for
neighboring water district
Capital asset
Fund Balance
Blending of Component unit
GASB 61
Interfund receivable
Interfund payable
Fund Balance
Expensing Bond Cost of
Issuance GASB 65
Other asset
Fund Balance
TOTAL ADJUSTMENTS
General
Fund
Park
District
Arterial
Street
Gott Wide
Adjustments
Water
Sewer
Storm Water
$ -
$ -
$413,321
$ -
(3,863,456)
$ 413,321
(3,863,456)
$ -
$ -
$ (413,321)
3,863,456
$ (413,321)
3,863,456
$ -
-
-
-
413,321
(3,863,456)
(3,450,135)
-
-
3,450,135
3,450,135
-
(1,436,084)
(1,436,084)
(1,436,084)
-
-
-
-
(1,436,084)
-
-
(1,436,084)
(1,436,084)
850,000
850,000
(850,000)
(850,000)
-
-
-
-
-
850,000
(850,000)
-
-
-
-
-
-
-
(249,721)
(249,721)
(25,201)
(34,737)
(6,723)
(66,661)
(316,382)
-
-
-
(249,721)
(249,721)
(25,201)
(34,737)
(6,723)
(66,661)
(316,382)
$850,000
$(850,000)
$413,321
$(4,113,177)
$(3,699,856)
$ (1,461,285)
$(34,737)
$ 3,443,412
$ 1,947,390
$(1,752,466)
107
CITY OF TUKWILA: 2013 CAFR
NOTES TO THE FINANCIAL STATEMENTS
108
CITY OF TUKWILA: 2013 CAFR REQUIRED SUPPLEMENTAL INFORMATION
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31,2013
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES:
TAXES $ 39,346,544 $ 39,183,384 $ 40,615,890 $ 1,432,506
LICENSES AND PERMITS 1,892,089 1,892,089 2,013,875 121,786
INTERGOVERNMENTAL 4,738,196 4,867,856 4,719,583 (148,273)
CHARGES FOR SERVICES 2,422,606 2,422,606 2,202,307 (220,299)
FINES AND FORFEITURES 234,829 234,829 242,638 7,809
INVESTMENT EARNINGS 147,573 147,573 108,053 (39,520)
MISCELLANEOUS 118,318 151,818 110,317 (41,501)
TOTAL REVENUES
48,900,155 48,900,155
50,012,664 1,112,509
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 9,375,569 9,079,533 9,266,330 (186,797)
PUBLIC SAFETY 25,904,060 25,712,296 25,650,155 62,141
PHYSICAL ENVIRONMENT 1,961,047 1,961,047 1,766,087 194,960
TRANSPORTATION 2,841,361 2,841,361 2,759,506 81,855
ECONOMIC ENVIRONMENT 3,848,667 3,973,667 3,893,111 80,556
CULTURE AND RECREATION 3,622,994 3,667,794 3,631,819 35,975
CAPITAL OUTLAY 400,440 400,440 250,482 149,958
TOTAL EXPENDITURES 47,954,138
47,636,138 47,217,490 418,648
EXCESS OF REVENUES OVER EXPENDITURES
946,017 1,264,017
2,795,173 1,531,156
OTHER FINANCING SOURCES (USES):
SALES OF CAPITAL ASSETS
BOND PROCEEDS
TRANSFERS IN
TRANSFERS OUT
LOAN TO TUKWILA METROPOLITAN PARK DISTRICT
81,000
12,035,740
(10,925,688)
- 5,493 5,493
1,081,000 1,000,000 (81,000)
12,110,740 14,919,606 2,808,866
(11,325,688) (10,662,843) 662,845
(1,000,000) 1,000,000
TOTAL OTHER FINANCING SOURCES AND USES
1,191,052 866,052
5,262,256 4,396,204
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
CHANGE IN ACCOUNTING PRINCIPLE
FUND BALANCES - BEGINNING AS RESTATED
2,137,069 2,130,069 8,057,430 5,927,361
6,330,000 8,530,000
6,330,000 8,530,000
8,378,557
850,000
9,228,557
(151,443)
850,000
698,557
FUND BALANCES - ENDING $ 8,467,069 $ 10,660,069 $ 17,285,986 $ 6,625,917
109
CITY OF TUKWILA: 2013 CAFR REQUIRED SUPPLEMENTAL INFORMATION
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
METROPOLITAN PARK DISTRICT
FOR THE YEAR ENDED DECEMBER 31, 2013
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES:
TAXES:
PROPERTY $ 680,186 $ 680,186 $ 681,288 $ 1,102
INTERGOVERNMENTAL 416,666 416,666 3,059 (413,607)
CHARGES FOR SERVICES 211,000 211,000 226,709 15,709
MISCELLANEOUS 3,044 3,044
TOTAL REVENUES 1,307,852 1,307,852 914,100 (393,752)
EXPENDITURES:
CURRENT:
CULTURAL AND RECREATION 613,760 613,760 662,820 (49,060)
CAPITAL OUTLAY:
CULTURAL AND RECREATION 1,416,666 1,416,666 739,109 677,557
DEBT SERVICE
PRINCIPAL 141,615 141,615 141,615
INTEREST 32,235 32,235 39,016 (6,781)
TOTAL EXPENDITURES 2,204,276 2,204,276 1,440,946 763,330
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (896,424) (896,424) (526,846) 369,578
OTHER FINANCING SOURCES (USES):
TRANSFERS IN 1,100,048 1,100,048
TRANSFERS OUT 30,000 30,000 (1,100,048) (1,130,048)
CAPITAL LOAN FR PRIMARY GOVT 1,038,066 1,038,066 (1,038,066)
TOTAL OTHER FINANCING SOURCES AND USES 1,068,066 1,068,066 (1,068,066)
NET CHANGE IN FUND BALANCES 171,642 171,642 (526,846) (698,488)
FUND BALANCES - BEGINNING 111,642 (189,329) (189,329)
CHANGE IN ACCOUNTING PRINCIPLE (850,000) (850,000)
FUND BALANCES - BEGINNING AS RESTATED 111,642 (1,039,329) (1,039,329)
FUNDBALANCES - ENDING $ 283,284 $ 171,642 $ (1,566,175) $ (1,737,817)
110
CITY OF TUKWILA: 2013 CAFR REQUIRED SUPPLEMENTAL INFORMATION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
The City of Tukwila budgets its funds in accordance with the Revised Code of Washington
35A.33. In compliance with the code, biennial budgets are adopted for the general fund and
special revenue funds. For governmental funds, there are no substantial differences
between the budgetary basis and generally accepted accounting principles. Budgetary
accounts are integrated in fund ledgers for all budgeted funds, but the financial statements
include budgetary comparisons for biennially budgeted governmental funds only. Budgets
established for proprietary and fiduciary funds are "management budgets" and are not
legally required to be reported and, as such, are not reported in the CAFR.
The biennial appropriated budgets are adopted at the fund level and the budgets constitute
the legal authority for expenditures at that level. Subsidiary revenue and expenditure
records are used to compare the budgeted amounts with actual revenues and expenditures.
As a management control device, the subsidiary ledgers monitor expenditures for individual
functions and activities by object class. Any unexpended appropriation balances lapse at the
end of the biennium.
The City of Tukwila's budget procedures are mandated by RCW 35A.33. The steps in the
budget process are as follows:
1) Prior to November 1 on even numbered years, the Mayor submits a
proposed budget to the City Council. This budget is based on priorities
established by the Council and estimates provided by the City departments
during the preceding months, and balanced with revenue estimates made by
the Mayor.
2) The City Council conducts public hearings on the proposed budget in
November and December.
3) The Council makes its adjustments to the proposed budget and adopts by
ordinance a final balanced budget no later than December 31.
4) The final operating budget as adopted is published and distributed within the
first month of the following year. Copies of the budget are made available to
the public.
111
CITY OF TUKWILA: 2013 CAFR REQUIRED SUPPLEMENTAL INFORMATION
The City Council must approve by ordinance any amendments that increase the total for the
fund. Budget amounts presented in the basic financial statements include both the original
amounts and the final amended budget as approved by the City Council.
Expenditure Categories
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Culture and Recreation
Includes administration, finance, municipal court, attorney, and
city clerk activities.
Includes all police and fire activities.
Includes expenditures for the public works activities not
chargeable to the enterprise funds.
Includes all street and arterial street maintenance and
construction.
Reflects the planning and building inspection activities.
Includes the parks and recreation activities.
112
CITY OF TUKWILA: 2013 CAFR REQUIRED SUPPLEMENTAL INFORMATION
The information presented in the following required schedules was determined as part of the
actuarial valuations at the dates indicated.
FIREMEN'S PENSION TRUST FUND
SCHEDULE OF FUNDING PROGRESS
(rounded to thousands)
Actuarial Actuarial Value
Valuation Date of Assets
Actuarial
Accrued
Liabilities
Unfunded Actuarial
Accrued Liabilities
(UAAL)
Funded Covered
Ratio Payroll
UAAL as a
Percentage of
Covered Payroll
January 1, 2005
January 1, 2007
January 1, 2009
January 1, 2011
January 1, 2013
$1,265
1,336
1,445
1,430
1,416
$1,182
1,310
1,610
1,582
1,296
($83)
(26)
165
152
(120)
107% $0
102 0
90 442
90 371
109 0
SCHEDULE OF EMPLOYER CONTRIBUTIONS
N/A
N/A
37
41
N/A
Fiscal
Year Ending
Employer
Contributions
Fire Insurance Total Employer
Premiums Contributions
Annual Required
Contribution (ARC)
December 31, 2008
December 31, 2009
December 31, 2010
December 31, 2011
December 31, 2012
December 31, 2013
$ (1,841) $
(18,425)
(3,000)
(7,800)
(1,650)
(7,775)
52,571
48,537
49,989
54,865
52,249
56,962
113
$ 50,730
30,112
46,989
47,065
50,599
49,187
$ (1,998)
11,576
11,576
11,984
11,984
(10,053)
Percentage of ARC
Contributed
260
406
393
422
N/A
CITY OF TUKWILA: 2013 CAFR REQUIRED SUPPLEMENTAL INFORMATION
FIREMEN'S PENSION TRUST FUND
Actuarial Valuations
Actuarial valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Assumptions
January 1, 2013
Entry Age Normal
30 -year, closed as of January 1, 1999
18 years
Fair market value
Investment rate of return
Projected salary increases
Price inflation
Cost -of- living adjustments
3.75%
3.50%
2.50%
Based upon salary increase assumption
when appropriate, for FPF benefits.*
Based upon inflation assumption for some
FPF benefits and all LEOFF benefits.
* Under the Firemen's Pension Trust Fund, most adjustments are based on the change in
salary for the rank of members held at retirement or based on the Consumer Price Index.
Adjustments are determined in accordance with RCW 41.18.150, RCW 41.20 and RCW
41.26
RETIREE MEDICAL AND LONG -TERM CARE BENEFITS
FOR LEOFF 1 EMPLOYEES
SCHEDULE OF FUNDING PROGRESS
(rounded to thousands)
Actuarial Value
Valuation Date of Assets
Actuarial
Accrued
Liabilities
Unfunded Actuarial
Accrued Liabilities Funded Covered
(UAAL)* Ratio Payroll
UAAL as a
Percentage of
Covered Payroll
January 1, 2008
January 1, 2011
January 1, 2014
$0
0
0
* Only three valuations completed to date
$16,103
14,805
21,264
114
$16,103
14,805
21,264
0%
0
0
$581
371
195
4%
3
1
CITY OF TUKWILA: 2013 CAFR REQUIRED SUPPLEMENTAL INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Fiscal Employer Fire Insurance Percentage of ARC
Year Ending Contributions Premiums Contributed
December 31, 2009 $335,265 $1,366,284 25%
December 31, 2010 317,771 1,366,284 23
December 31, 2011 335,090 1,264,522 26
December 31, 2012 404,007 1,264,522 32
December 31, 2013 878,755 1,264,522 69
RETIREE MEDICAL AND LONG -TERM CARE BENEFITS
FOR LEOFF 1 EMPLOYEES
Actuarial Valuations
Valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
January 1, 2014
Entry Age Normal
21 -year, closed as of January 1, 2008
15 years
Fair market value
Assumptions
Investment rate of return 3.75%
Medical and Dental Trend (before
inclusion of the excise tax)
Long -term care inflation
Medical Trend
Year Pre -65 Post -65
2014 -2015 5.90% 6.00%
2015 -2016 5.60% 5.60%
2016 -2017 5.30% 5.40%
2017 -2023 5.40% 5.40%
2023 -2036 5.30% 5.30%
4.75%
115
CITY OF TUKWILA: 2013 CAFR REQUIRED SUPPLEMENTAL INFORMATION
116
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON -MAJOR GOVERNMENTAL FUNDS
The City has three types of non -major governmental funds:
Special Revenue Funds
Special Revenue Funds are established to account for proceeds of specific taxes or
other specific revenue sources that are legally restricted to expenditures for
particular purposes. This revenue is segregated into individual Special Revenue
Funds to classify expenditures for specified purposes.
Debt Service Funds
Debt Service Funds are used to account for payment of principal and interest on
general obligation long -term debt. The City maintains Debt Service Funds to provide
debt service payments on General Obligation Bonds both voted and councilmanic.
Capital Projects Funds
Capital Projects Funds account for the acquisition or development of major capital
facilities, except those projects financed by proprietary funds. Sources of revenue to
these funds include general obligation bond proceeds, federal and state grants,
general property taxes, real estate excise taxes, sales taxes, interest earnings, and
transfers from other funds.
117
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENT FUNDS
DECEMBER 31, 2013
TOTAL TOTAL TOTAL TOTAL
SPECIAL REVENUE DEBT SERVICE CAPITAL PROJECTS GOVERNMENTAL
FUNDS FUNDS FUNDS FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 1,973,068 $ 678,665 $ 2,959,072 $ 5,610,806
RECEIVABLES:
TAXES 110,363 110,363
DUE FROM OTHER GOVERNMENTAL UNITS 182,586 182,586
TOTAL ASSETS
2,266,017 $ 678,665 $ 2,959,072 $ 5,903,755
LIABILITIES AND FUND BALANCES:
CURRENT LIABILITIES:
ACCRUED WAGES AND BENEFITS 16,352 3,055 19,407
ACCOUNTS PAYABLE 43,154 1,555 62,812 107,521
RETA INA GE PAYABLE 1,627 1,627
OTHER CURRENT LIABILITIES 100,000 100,000
TOTAL LIABILMES
59,507 1,555 167,494 228,555
FUND BALANCES:
RESTRICTED 1,976,510 668,849 437,221 3,082,580
ASSIGNED 230,000 8,261 2,354,357 2,592,619
TOTAL FUND BALANCES
2,206,510 677,110 2,791,579 5,675,199
TOTAL LIABILITIES AND FUND BALANCES $ 2,266,017 $ 678,665 $ 2,959,072 $ 5,903,756
118
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON -MAJOR GOVERNMENT FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2013
TOTAL TOTAL TOTAL TOTAL
SPECIAL REVENUE DEBT SERVICE CAPITAL PROJECTS GOVERNMENTAL
FUNDS FUNDS FUNDS FUNDS
REVENUES:
TAXES $ 526,832 $ - $ - $ 526,832
INTERGOVERNMENTAL 1,204,434 61,358 231,473 1,497,266
CHARGES FOR SERVICES - - 139,714 139,714
INVESTMENT EARNINGS 2,695 28,911 4,697 36,303
CONTRIBUTIONS /DONATIONS - 36,000 36,000
MISCELLANEOUS 82,922 82,922
TOTAL REVENUES 1,816,883 126,269 375,885 2,319,034
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 37,411 37,411
ECONOMIC ENVIRONMENT 1,331,852 - 1,331,852
PHYSICAL ENVIRONMENT - 169,808 169,808
PUBLIC SAFETY 70,729 70,729
DEBT SERVICE
PRINCIPAL 5,024,991 - 5,024,991
INTEREST 1,123,633 1,123,633
CAPITAL OUTLAY 184,203 566,358 750,561
TOTAL EXPENDITURES 1,586,785 6,148,623 773,577 8,508,985
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 230,098 (6,022,354) (397,692) (6,189,951)
OTHER FINANCING SOURCES (USES):
TRANSFERS IN 230,000 3,019,329 3,249,329
TRANSFERS OUT (171,191) (995) (78,089) (250,276)
LOCAL IMPROVEMENT DISTRICT BOND PROCFFDS - 668,750 - 668,750
TOTAL OTHER FINANCING SOURCES AND USES 58,809 3,687,083 (78,089) 3,667,803
NET CHANGE IN FUND BALANCES 288,907 (2,335,271) (475,782) (2,522,148)
FUND BALANCES - BEGINNING 1,917,603 3,012,381 3,267,360 8,197,345
FUND BALANCES - ENDING $ 2,206,510 $ 677,110 $ 2,791,579 $ 5,675,199
119
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
120
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON -MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special Revenue Funds are established to account for proceeds of specific taxes or
other specific revenue sources that are legally restricted to expenditures for
particular purposes. This revenue is segregated into individual Special Revenue
Funds to classify expenditures for specified purposes.
Hotel /Motel Tax Fund
Established to account for the proceeds of a special excise tax on the sale of or
charge made for the furnishing of lodging that is subject to tax under Chapter 82.08
RCW. The tax applies to lodging by hotel, rooming house, tourist court, motel or
trailer camp. Proceeds from this tax may only be used to promote tourism.
Street Fund
Established in accordance with RCW 35A.37.010 to account for maintenance and
improvement of the City's street and traffic control systems. Major sources of
support are general tax revenues and the State - levied tax on motor vehicle fuels
distributed to Tukwila, to be used for City street purposes.
Drug Seizure Fund
Established to account for the yearly accumulation of drug seizure revenues and
related expenditures.
121
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2013
TOTAL
HOTEL /MOTEL SPECIAL REVENUE
TAX STREET DRUG SEIZURE FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 537,554 $1,359,905 $ 75,609 $ 1,973,068
RECEIVABLES:
CURRENT TAXES RECEIVABLE 67,222 43,141 - 110,363
DUE FROM OTHER GOVERNMENTAL UNITS 151,642 30,943 182,586
TOTAL ASSETS 756,418 1,433,990 75,609 2,266,017
LIABILITIES AND FUND BALANCES:
ACCOUNTS PAYABLE 26,339 16,815 43,154
ACCRUED WAGES AND BENEFITS PAYABLE 15,133 1,219 - 16,352
TOTAL LIABILITIES 41,472 18,034 59,507
FUND BALANCES:
RESTRICTED 714,946 1,185,955 75,609 1,976,510
ASSIGNED - 230,000 230,000
TOTAL FUND BALANCES 714,946 1,415,955 75,609 2,206,510
TOTAL LIABILITIES, DEFFERED INFLOWS AND FUND BALANCES $ 756,418 $1,433,990 $ 75,609 $ 2,266,017
122
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON -MAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2013
HOTEL /MOTEL
TAX
STREET
TOTAL
DRUG SPECIAL REVENUE
SEIZURE FUNDS
REVENUES:
TAXES $ 526,832 $ - $ $ 526,832
INTERGOVERNMENTAL 882,810 321,625 1,204,434
INVESTMENT EARNINGS 933 1,763 - 2,695
MISCELLANEOUS 21,708 61,213 82,922
TOTAL REVENUES 1,432,282 323,387 61,213 1,816,883
EXPENDITURES:
CURRENT:
PUBLIC SAFETY
ECONOMIC ENVIRONMENT
DEBT SERVICE
CAPITAL OUTLAY
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
70,729
1,331,852
70,729
1,331,852
184,203 184,203
1,331,852 184,203 70,729 1,586,785
100,430 139,184 (9,516) 230,098
OTHER FINANCING SOURCES (USES):
TRANSFERS IN 230,000 - 230,000
TRANSFERS OUT (96,191) - (75,000) (171,191)
TOTAL OTHER FINANCING SOURCES AND USES (96,191) 230,000 (75,000) 58,809
NET CHANGE IN FUND BALANCES 4,239 369,184 (84,516) 288,907
FUND BALANCES - BEGINNING 710,707 1,046,771 160,125 1,917,603
FUND BALANCES - ENDING $ 714,946 $ 1,415,955 $ 75,609 $ 2,206,510
123
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
HOTEL /MOTEL TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2013
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITME
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATNE)
REVENUES:
TAXES:
TAXES $ 538,000 $ 538,000 $ 526,832 $ (11,168)
CHARGES FOR SERVICES 973,000 898,000 882,810 (15,190)
INVESTMENT EARNINGS 1,766 1,766 933 (833)
MISCELLANEOUS 12,000 12,000 21,708 9,708
TOTAL REVENUES 1,524,766 1,449,766 1,432,282 (17,484)
EXPENDITURES:
CURRENT:
ECONOMIC ENVIRONMENT
CAPITAL OUTLAY:
ECONOMIC ENVIRONMENT
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
TRANSFERS OUT
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
1,540,091 1,466,054 1,331,852 134,202
10,000 10,000 - 10,000
1,550,091 1,476,054 1,331,852 144,202
(25,325) (26,288) 100,430 126,718
(96,191) (98,128) (96,191) 1,937
(96,191) (98,128) (96,191) 1,937
(121,516) (124,416) 4,239 128,655
650,000 650,000 710,707 60,707
$ 528,484 $ 525,584 $ 714,946 $ 189,362
124
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
STREET SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2013
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES:
INTERGOVERNMENTAL $ 738,000 $ 443,000 $ 321,625 $ (121,376)
INVESTMENT EARNINGS 1,000 1,000 1,763 763
TOTAL REVENUES 739,000 444,000 323,387 (120,613)
EXPENDITURES:
CAPITAL OUTLAY:
TRANSPORTATION 777,000 437,000 184,203 252,797
TOTAL EXPENDITURES 777,000 437,000 184,203 252,797
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER) EXPENDITURES (38,000) 7,000 139,184 132,184
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (100,000) 100,000 230,000 130,000
TOTAL OTHER FINANCING SOURCES AND USES (100,000) 100,000 230,000 130,000
NET CHANGE IN FUND BALANCES (138,000) 107,000 369,184 262,184
FUND BALANCES - BEGINNING 700,000 1,000,000 1,046,771 46,771
FUND BALANCES - ENDING $ 562,000 $ 1,107,000 $ 1,415,955 $ 308,954
125
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
DRUG SEIZURE SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2013
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES:
INVESTMENT EARNINGS $ 1,000 $ 1,000 $ - $ (1,000)
FINES AND FORFEITURES 20,000 20,000 61,213 41,213
TOTAL REVENUES 21,000 21,000 61,213 40,213
EXPENDITURES:
CURRENT:
PUBLIC SAFETY 55,000 55,000 70,729 (15,729)
TOTAL EXPENDITURES 55,000 55,000 70,729 (15,729)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (34,000) (34,000) (9,516) 24,484
OTHER FINANCING SOURCES (USES):
TRANSFERS IN 75,000 75,000 - (75,000)
TRANSFERS OUT (75,000) (75,000)
TOTAL OTHER FINANCING SOURCES AND USES 75,000 - (75,000) (75,000)
NET CHANGE IN FUND BALANCES 41,000 (34,000) (84,516) (50,516)
FUND BALANCES - BEGINNING 280,000 280,000 160,125 (119,875)
FUND BALANCES - ENDING $ 321,000 $ 246,000 $ 75,609 $ (170,391)
126
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON -MAJOR GOVERNMENTAL FUNDS
Debt Service Funds
Debt Service Funds are used to account for payment of principal and interest on general obligation long-
term debt. The City maintains Debt Service Funds to provide debt service payments on General Obligation
Bonds both voted and councilmanic.
Local Improvement District Guaranty Fund
The City is required under state law to establish a guaranty fund to provide a means of paying LID bond
debt service obligations in the event there are insufficient resources in the LID debt service fund.
Limited Tax G.O. 2003
This fund provides payment to the Fiscal Agent for principal and interest payments required per the debt
service schedule for the City of Tukwila's Arterial Street program. Revenues are provided by allocation of
sales tax proceeds.
Limited Tax G.O. Refunding 2003
This fund provides payment to the Fiscal Agent for principal and interest payments required per the debt
service schedule for the refunded Limited Tax G.O. 1994 Bonds for the construction of a new Community
Center and replacement Fire Station. Revenues are provided by allocation of sales tax proceeds.
Limited Tax G.O. Refunding 2008
This fund provides payment to the Fiscal Agent for principal and interest payments required per the debt
service schedule for the refunded Limited Tax G.O. 1999 Bonds for the purchase of an additional City Hall
Annex and economic revitalization projects. Revenues are provided by allocation of sales tax proceeds.
Limited Tax G.O. 2009A, Taxable Build America Bonds 2009B
This fund provides payment to the Fiscal Agent for principal and interest payments required per the debt
service schedule for the City's portion of the construction of a correctional facility along with six other cities.
Taxable Build America Bonds 2010A
This fund provides payment to the Fiscal Agent for principal and interest payments required per the debt
service schedule for bonds issued for the construction and realignment of Southcenter Parkway in the
Tukwila South Annexation area and for the cost of emergency preparedness capital and other equipment.
Limited Tax G.O. Refunding 2010
This fund provides payment to Valley Communications Center for principal and interest on bonds issued in
April 2010 to refund bonds that were originally issued in 2000 to pay for the new Valley Communications
Center. This debt reflects Tukwila's share with four other cities. Each of the five cities is responsible for
one -fifth of the annual debt service.
Limited Tax G.O. Refunding 2011
This fund provides payment to the Fiscal Agent for principal and interest on bonds issued in December
2011 to refund a portion of the bonds that were originally issued in 2003 for the City's Arterial Street
program.
Limited Tax G.O. 2013
This fund provides payment to the Fiscal Agent for principal and interest on bonds issued in November
2013. The proceeds were loaned to the Tukwila Metropolitan Park District to pay for improvements to the
pool.
127
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR DEBT SERVICE FUNDS
December 31, 2013
SPECIAL LTGO LTGO LTGO SCORE LTGO VALLEY COM LTGO LTGO
ASSESSMENT BONDS REFUNDING REFUNDING LTGO BONDS LTGO REFUNDING BONDS
BONDS 2003 BONDS BONDS BONDS 2010 ** REFUNDING BONDS 2013
GUARANTY 2003 (REF 2008 (REF 2009* BONDS 2010 2011 (REF
FUND2013 1994) 1999) (REF 2000) 2003)
TOTAL
NONMAJOR
DEBT SERVICE
FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 668,849 $ - $ 497 $ 718 $ 1,453 $ 6,561 $ 74 $ 514 $ - $ 678,665
TOTAL ASSETS 668,849 - 497 718 1,453 6,561 74 514 - 678,665
LIABILITIES AND FUND BALANCES:
OTHER CURRENT LIABILITIES 302 302
TOTAL LIABILITIES - - 302 302
652 300 1,555
652 - 300 1,555
FUND BALANCES:
RESERVED FOR
RESTRICTED 668,849 668,849
ASSIGNED - - 195 416 1,453 5,910 74 214 - 8,261
TOTAL FUND BALANCES 668,849 - 195 416 1,453 5,910 74 214 - 677,110
TOTAL LIABILITIES, DEFERRED
INFLOWS AND FUND BALANCES $ 668,849 $ - $ 497 $ 718 $ 1,453 $ 6,561 $ 74 $ 514 $ - $ 678,665
* Limited Tax GO Bonds 2009A also includes Limited Tax GO Bonds 2009B
** Limited Tax GO Bonds 2010A also includes Taxable Build America Bonds 2010B
128
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON -MAJOR DEBT SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2013
SPECIAL LTGO LTGO LTGO SCORE LTGO BONDS VALLEY COM LTGO LTGO TOTAL
ASSESSMENT BONDS 2003 REFUNDING REFUNDING LTGO 2010" LTGO REFUNDING BOBS 2013 NONMEJOR
BONDS BONDS 2003 BONDS 2008 BONDS REFUNDING BONDS 2011 DEBT
GUARANTY (REF 1994) (REF 1999) 2009' BOBS 2010 (REF 2003) SERVICE
FUND 2013 (REF 2000) FUNDS
REVENUES.
INTERGOVERNMENTAL S - $ - $ - $ - $ $ 61,358 $ - $ - $ - $ 61,358
INVESTMENT EARNINGS 99 28,812 - - - - - - 28,911
CONTRIBUTIONS/DONATIONS - - - - 36.000 - - 36.000
TOTAL REVENUES
99 28,812 - - - 61,358 36,000 - - 126,269
EXPENDITURES:
DEBT SERVICE
RRINCIPAL - 3,240,000 445,000 500,000 156,000 355,000 215,000 15,000 98,991 5,024,991
INTEREST - 140,088 46,103 237,603 275,868 230,377 25,880 153,574 14,139 1,123,633
TOTAL EXFENDNURES - 3,380,088 491,103 737,603 431,868 585,377 240,880 168,574 113,130 6,148,623
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) E(R3JDT1JRES 99 (3,351,276) (491,103) (737,603) (431,868) (524,019) (204,880) (168,574) (113,130) (6,022,354)
OTHER FINANCING SOURCES (USES):
TRANSFERS IN - 345,142 491,052 737,802 433,195 525,279 204,940 168,788 113,130 3,019,329
TRANSFERS OUT - - (995) (995)
GENERAL OBLIGATION BONDS ISSUE) 668,750 - 668,750
TOTAL OTHER FNANCNG
SOURCES AND USES
668,750 345,142 491,052 737,802 432,200 525,279 204,940 168,788 113,130 3,687,083
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
668,849 (3,006,134)
- 3,006,134
(51) 199 332 1,260 60 214 (2,335,271)
246 217 1,121 4,649 14 - - 3,012,381
$ 668,849 $ - $ 195 $ 416 $ 1,453 $ 5,910 $ 74 $ 214 $ - $ 677,110
* Limited Tax GO Bonds 2009A also includes Limited Tax GO Bonds 2009B
" Limited Tax GO Bonds 2010A also includes Taxable Build America Bonds 2010B
129
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
130
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON -MAJOR GOVERNMENTAL FUNDS
Capital Projects Funds
Capital Projects Funds account for the acquisition or development of major capital
facilities, except those projects financed by proprietary funds. Sources of revenue to
these funds include general obligation bond proceeds, federal and state grants,
general property taxes, real estate excise taxes, sales taxes, interest earnings, and
transfers from other funds.
Facility Replacement Fund
This fund was established in 1988 for the replacement of existing general
government facilities.
General Government Improvements
This fund was established in 1992 to provide funding for minor capital improvements
not related to parks, land acquisition, or major building replacements.
Fire Improvements
This fund is to be used for the acquisition of land, development of land, and
construction of fire facilities. Source of revenue from this fund comes primarily from
fire impact fees.
131
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR CAPITAL PROJECTS FUNDS
DECEMBER 31, 2013
GENERAL TOTAL NONMAJOR
FACILITY GOVERNMENT FIRE CAPITAL PROJECTS
REPLACEMENT IMPROVEMENTS IMPROVEMENTS FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 2,005,539 $ 516,311 $ 437,222 $ 2,959,072
TOTAL ASSETS 2,005,539 516,311 437,222 2,959,072
LIABILITIES AND FUND BALANCES:
CURRENT PAYABLES:
ACCRUED WAGES AND BENEFITS
ACCOUNTS PAYABLE
RETAINAGE PAYABLE
OTHER CURRENT LIABILITIES
TOTAL LIABILITIES
3,055 - 3,055
2,937 59,875 - 62,812
1,627 1,627
100,000 - 100,000
102,937 64,557 167,494
FUND BALANCES:
RESTRICTED 437,222 437,222
ASSIGNED 1,902,602 451,755 - 2,354,357
TOTAL FUND BALANCES 1,902,602 451,755 437,222 2,791,579
TOTAL LIABILITIES AND FUND BALANCES
$ 2,005,539 $
516,311 $
437,222 $ 2,959,072
132
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON -MAJOR CAPITAL PROJECTS FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2013
GENERAL TOTAL NONMAJOR
FACILITY GOVERNMENT FIRE CAPITAL PROJECTS
REPLACEMENT IMPROVEMENTS IMPROVEMENTS FUNDS
REVENUES:
CHARGES FOR SERVICES
INTERGOVERNMENTAL
INVESTMENT EARNINGS
- $ - $ 139,714 $ 139,714
231,473 231,473
3,373 743 581 4,697
TOTAL REVENUES
3,373 232,216 140,295 375,885
IXPE NDITURES:
CURRENT:
GENERAL GOVERNMENT 37,411 37,411
PHYSICAL ENVIRONMENT 169,808 169,808
DEBT SERVICE
CAPITAL OUTLAY 106,291 408,984 51,083 566,358
TOTAL EXPENDITURES 106,291 616,203 51,083 773,577
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(102,918) (383,986) 89,212 (397,692)
OTHER FINANCING SOURCES (USES):
TRANSFERS OUT (78,089) (78,089)
TOTAL OTHER FINANCING SOURCES AND USES (78,089) (78,089)
NET CHANGE IN FUND BALANCES
(102,918) (462,076) 89,212 (475,782)
FUND BALANCES - BEGINNING 2,005,520 913,830 348,010 3,267,360
FUNDBALANCES - ENDING $ 1,902,602 $
451,755 $
437,222 $ 2,791,579
133
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
134
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON -MAJOR INTERNAL SERVICE FUNDS
Internal Service Funds
The City Internal Service Funds are used to account for the financing of special
services performed by designated department within the City of Tukwila to other
departments within the City. They provide a service and then generate revenue by
billing the department for which the service was provided.
Equipment Rental Fund
Accounts for the costs of maintaining and replacing all City vehicles and auxiliary
equipment. All equipment costs, including depreciation, are factors in calculating
the rates which are charged to each user department.
Insurance Fund - Active Employees
Accounts for the costs of the City's self- insured medical plan. Medical and dental
costs for covered employees are charged to the respective user departments. All
premiums, medical and dental costs and ancillary charges are included. The LEOFF
I retiree portion of this program was split off into a separate Insurance Fund to
accommodate new reporting regulations as of January 1, 2004.
Insurance LEOFF I Fund
This fund was created to account for the City's self- insured medical plan for LEOFF I
retirees. This fund receives contributions on behalf of retired LEOFF I employees
through their respective organization units. Medical, dental and prescription claims
and program administrative fees are expensed in this fund.
135
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
DECEMBER 31, 2013
TOTAL
INSURANCE- INTERNAL
EQUIPMENT INSURANCE LEOFFI SERVICE
RENTAL ACTIVE EMPLOYEES RETIREES FUNDS
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 3,480,738 $ 1,837,591 $ 1,111,132 6,429,460
INVESTMENTS 835,600 4,249,628 5,085,228
RECEIVABLES:
INTEREST ON INVESTMENTS 2,423 42,375 - 44,798
INVENTORY OF MATERIALS AND SUPPLIES 13,335 - 13,335
TOTAL CURRENT ASSETS 4,332,095 6,129,594 1,111,132 11,572,822
CAPITAL ASSETS:
CONSTRUCTION IN PROGRESS
MACHINERY AND EQUIPMENT
LESS: ACCUMULATED DEPRECIATION
TOTAL CAPITAL ASSETS (NET OF A /D)
TOTAL NONCURRENT ASSETS
1,304,333
12,264,907
(9,136,288)
4,432,952
1,304,333
12,264,907
(9,136,288)
4,432,952
4,432,951
4,432,951
TOTAL ASSETS 8,765,047 6,129,594 1,111,132 16,005,773
LIABILITIES:
ACCOUNTS PAYABLE 55,395 - - 55,395
ACCRUED WAGES AND BENEFITS 18,868 - 18,868
OTHER LIABILITIES 1,669,250 214,250 1,883,500
TOTAL LIABILITIES 74,263 1,669,250 214,250 1,957,763
NET POSITION:
NET INVESTMENT IN CAPITAL ASSETS 4,432,952 - 4,432,952
UNRESTRICTED 4,257,832 4,460,344 896,882 9,615,058
TOTAL NET POSITION $ 8,690,784 $ 4,460,344 $ 896,882 $ 14,048,010
136
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2013
TOTAL
INSURANCE- INTERNAL
EQUIPMENT INSURANCE LEOFF I SERVICE
RENTAL ACTIVE EMPLOYEES RETIREES FUNDS
OPERATING REVENUES:
CHARGES FOR SERVICES $ 2,592,337 $ 4,376,360 $ $ 6,968,697
OTHER OPERATING REVENUE 6,918 70,225 - 77,142
TOTAL OPERATING REVENUES 2,599,255 4,446,585 7,045,839
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE 1,275,339 4,671,963 807,738 6,755,040
DEPRECIATION 886,201 - 886,201
TOTAL OPERATING EXPENSES
2,161,540 4,671,963
807,738 7,641,241
OPERATING INCOME (LOSS) 437,714
(225,378) (807,738) (595,402)
NON - OPERATING REVENUE (EXPENSE):
INVESTMENT EARNINGS
SALE OF CAPITAL ASSETS
12,882 (34,954)
2,707 (19,365)
65,943 - 65,943
TOTAL NON - OPERATING REVENUE (EXPENSE)
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS
78,825 (34,954)
2,707 46,578
516,540 (260,333)
(805,031) (548,824)
CAPITAL CONTRIBUTIONS
TRANSFERS IN
TRANSFERS OUT
CHANGE IN NET POSITION
TOTAL NET POSITION BEGINNING OF YEAR
TOTAL NET POSITION END OF YEAR
1,257, 928
1,030, 000
(291,838)
2,512,630
6,178,154
(73,709)
(334,042)
4,794,386
1,257,928
1,030,000
(9,619) (375,166)
(814,650) 1,363,938
1,711,532 12,684,072
$ 8,690,784 $ 4,460,344 $ 896,882 $ 14,048,010
137
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2013
Page 1 of 2
r
TOTAL
INTERNAL '
EQUIPMENT INSURANCE- SERVICE
RENTAL INSURANCE LEOFF I FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM USERS
CASH PAID TO SUPPLIERS
CASH PAID TO EMPLOYEES
OTHER CASH RECEIVED (PAID)
$ 2,599,650 $ 4,446,585 $
(725,418) (4,671,963)
(526,806)
31,000
- $ 7,046,234
(802,988) (6,200,369)
- (526,806)
- 31,000
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
1,347,426 (194,378) (802,988) 350,060
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
TRANSFERS IN 1,030,000 - 1,030,000
TRANSFERS OUT (291,838) (73,709) (9,619) (375,166)
NET CASH PROVIDED (USED) BY NON -
CAPITAL FINANCING ACTIVITIES
738,162 (73,709) (9,619) 654,834
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM SALE OF EQUIPMENT
PURCHASE OF CAPITAL ASSETS
94,490
(2,044,013)
94,490
(2,044,013)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES
(1,949,523) - (1,949,523)
CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF INVESTMENTS 401,949 401,949
PURCHASE OF INVESTMENTS - (228,540) - (228,540)
INTEREST RECEIVED 34,416 (34,954) 2,707 2,168
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 34,416 138,454 2,707 175,577
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
170,481 (129,633) (809,900) (769,052)
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS -END OF YEAR
CASH AT END OF YEAR CONSISTS OF:
CASH AND CASH EQUIVALENTS
TOTAL CASH
170,481 (129,633)
3,310,257 1,967,224
(809,900) (769,052)
1,921,032 7,198,512
$ 3,480,738 $ 1,837,591 $ 1,111,132 $ 6,429,460
$ 3,480,738 $ 1,837,591 $ 1,111,132 6,429,460
$ 3,480,738 $ 1,837,591 $ 1,111,132 $ 6,429,460
138
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2013
Page 2 of 2
TOTAL
INTERNAL
EQUIPMENT INSURANCE- SERVICE
RENTAL INSURANCE LEOFFI FUNDS
RECONCILIATION OF NET OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
OPERATING INCOME (LOSS)
$ 437,714 $ (225,378) $ (807,738) $ (595,402)
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 886,201 - 886,201
ASSET (INCREASES) DECREASES :
MISCELLANEOUS A/R- REVENUE 395 395
INVENTORY (1,016) (1,016)
LIABILITY INCREASES (DECREASES) :
ACCOUNTS & VOUCHERS PAYABLE 23,156 31,000 4,750 58,906
WAGES & BENEFITS PAYABLE 976 - - 976
TOTAL ADJUSTMENTS 909,711 31,000 4,750 945,461
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 1,347,426 $ (194,378) $ (802,988) $ 350,060
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
CAPITAL ASSETS ACQUIRED BY CONTRIBUTED CAPITAL $ 1,257,928 $ - $ - $ 1,257,928
INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT 12,348 218,744 231,092
TOTAL NON CASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
$ 1,270,276 $ 218,744 $ - $ 1,489,020
139
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
140
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
FIDUCIARY FUNDS
Fiduciary Funds
Fiduciary funds are used to account for assets held by the City of Tukwila as a
trustee or agent for various individuals, private organizations, and other
governmental units.
Agency Fund
Agency funds are used to account for short -term custodial collections on resources
on behalf of another individual, entity, or government.
141
CITY OF TUKWILA: 2013 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
FOR THE YEAR ENDED DECEMBER 31, 2013
BALANCE
JANUARY 1, 2013 ADDITIONS DEDUCTIONS
BALANCE
DECEMBER 31,2013
ASSETS
CASH AND CASH EQUIVALENTS
CASH RESTRICTED
RECEIVABLES
TOTAL ASSETS
$
30,169 $ 961,044 $ (815,867) $ 175,346
1,860 1,860
- 156,369 (153,435) 2,934
32,030 1,117,412 (969,302) 180,140
LIABILITIES
ACCOUNTS PAYABLE 11,839
DONATIONS 118
DUE TO OTHER GOVERNMENTS 20,073
TOTAL LIABILITIES 32,030
627,584
780,592
1,408,176
The notes to the financial statements are an integral part of this statement.
142
(764,941) 151,826
(185) 303
(788,531) 28,012
(1,553,657) 180,140
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
City of Tukwila
STATISTICAL SECTION
December 31, 2013
Financial Trends Information
Financial trends schedules are intended to provide users with information to assist them in
understanding and assessing how the City's financial position has changed over time.
Schedule 1 Net Position by Component 144
Schedule 2 Changes in Net Position 146
Schedule 3 Fund Balances, Governmental Funds 148
Schedule 4 Changes in Fund Balances, Governmental Funds 150
Schedule 5 General Governmental Tax Revenues by Source 152
Revenue Capacity Information
The objective of providing revenue capacity information is to help users understand and assess the
factors affecting the City's ability to generate its most significant local source revenues.
Schedule 6 Property Tax Levies and Collections 153
Schedule 7 Assessed and Estimated Actual Value of Taxable Property 154
Schedule 8 Property Tax Rates - Direct and Overlapping Governments 155
Schedule 9 Principal Property Taxpayers 156
Schedule 10 Retail Sales Tax Collections by Sector 158
Schedule 11 Sales Tax Rate Direct and Overlapping Governments 160
Debt Capacity Information
Debt capacity information is intended to assist users to understand and assess the City's current
levels of outstanding debt and ability to issue additional debt in the future.
Schedule 12 Ratios of Outstanding Debt by Type 162
Schedule 13 Ratios of General Bonded Debt Outstanding 164
Schedule 14 Computation of Direct and Overlapping Debt 165
Schedule 15 Legal Debt Margin Information 166
Schedule 16 Revenue Bond Coverage- Water Bonds 168
Schedule 17 Revenue Bond Coverage- Sewer Bonds 169
Schedule 18 Revenue Bond Coverage- Surface Water Bonds 170
Demographic and Economic Information
These Schedules offer demographic and economic information to assist users in understanding
certain aspects of the environment within which the City operates and to provide information that
facilitates comparisons of financial statement information over time and across governmental units.
Schedule 19 Demographic Statistics 171
Schedule 20 Principal Employers 172
Operating Information
These Schedules contain service and infrastructure data to help users understand how the
information in the City's financial report relates to the services the City provides and the activities it
performs.
Schedule 21 Full -time Equivalent Employee by Department 173
Schedule 22 Operating Indicators by Function 174
Schedule 23 Capital Assets by Function 175
143
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA
SCHEDULE 1
NET POSITION BY COMPONENTIaI
LAST TEN FISCAL YEARS
Page 1 of 2
2004 2005 2006 2007 2008
Governmental activities:
Invested in capital assets, net of
related debt $ 123,038,903 $ 129,855,251 $ 133,129,382 $ 136,053,013 $ 136,742,368
Restricted 1,107,362 1,305,239 1,305,239 1,233,234 19,720,546
Unrestricted 25,873,104 25,289,571 29,506,541 35,520,681 18,476,837
Total governmental activities net position $ 150,019,369 $ 156,450,061 $ 163,941,162 $ 172,806,928 $ 174,939,751
Business -type activites:
Invested in capital assets, net of
related debt $ 30,848,350 $ 31,370,812 $ 34,017,190 $ 36,083,972 $ 36,071,402
Restricted 960,485 577,587 435,995 441,073 439,100
Unrestricted 9,664,654 9,909,896 12,070,451 11,267,171 13,335,836
Total business -type activities net position $ 41,473,489 $ 41,858,295 $ 46,523,636 $ 47,792,216 $ 49,846,338
Primary government:
Invested in capital assets, net of
related debt $ 153,887,253 $ 161,226,063 $ 167,146,572 $ 172,136,985 $ 172,813,770
Restricted 2,067,847 1,882,826 1,741,234 1,674,307 20,159,646
Unrestricted 35,537,758 35,199,467 41,576,992 46,787,852 31,812,673
Total primary government net position $ 191,492,858 $ 198,308,356 $ 210,464,798 $ 220,599,144 $ 224,786,089
Notes:
(a) All amounts are reported on the accrual basis
Source:
Tukw ila Finance Department
144
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
Page 2 of 2
2009 2010 2011 2012 2013
$ 155,847,012
16,360,097
16,031,473
$ 188,238,582
$ 177,078,793 $ 199,511,779 $ 203,206,940 $ 207,660,389
23,005,792 5,019,817 2,749,680 3,480,002
12,119,923 21,479,064 20,194,333 26,981,105
$ 212,204,508 $ 226,010,660 $ 226,150,953 $ 238,121,496
$ 38,052,488 $ 44,759,489 $ 52,134,799 $ 52,911,741 $ 55,955,595
438,619 430,444 430,444 430,444 430,444
10, 987,162 11,158,081 10,225, 558 11,011,319 12, 964,539
$ 49,478,269 $ 56,348,014 $ 62,790,801 $ 64,353,504 $ 69,350,577
$ 193,899,500
16,798,716
27,018,635
$ 237,716,851
$ 221,838,282
23,436,236
23,278,004
$ 248,636,920
5,450,261
34,714,280
$ 253,253,170
3,180,123
34,071,164
$ 268,552,522
$ 288,801,461 $ 290,504,457
145
$ 263,615,984
3,910,445
39,945,644
$ 307,472,073
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 2
CHANGES IN NET POSITION (a)
Page 1 of 2
2004
2005
2006 MM 2007
Expenses
Governmental Activities
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Mental and Physcial Health
Culture and Recreation
Interest on Long Term Debt
Total Governmental Activities
Business Type Activities
Water /Sewer Utility
Foster Golf Course
Surface Water Utility
Total Business Type Activities
Total Primary Government Expenses
Program Revenues
Governmental Activities
Charges for Services
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Cultural and Recreation
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities Program Revenues
Business Type Activities
Charges for Services
Water /Sewer Utility
Foster Golf Course
Surface Water Utility
Capital Grants and Contributions
Total Business Type Activities Program Revenues
Total Primary Government Program Revenues
Net (Expense) /Revenue
Governmental Activities
Business Type Activities
Total Primary Government Net Expense
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property Tax
Retail Sales and Use Tax
Natural Gas Use Tax
Hotel/Motel Tax
Utility Tax
Interfund Utility Taxes
Business Tax
Excise Tax
State Entitlements
Unrestricted Investment Earnings
Gain /Loss on Sale of Capital Assets
Miscellaneous
Transfers
Total Governmental Activities
Business Type Activities
Retail Sales and Use Taxes
Unrestricted Investment Interest
Gain /Loss on Sale of Capital Assets
Miscellaneous
Transfers
Total Business Type Activities
Total Primary Government
Change in Net Position
Governmental Activities
Business Type Activities
Total Primary Government
Notes:
(a) All amounts are reported on the accrual basis
Source: Tukw ila Finance Department
$ 6,167,738
18,769,074
1,442,209
4,962,043
3,469,673
3,680,402
1,034,841
$ 6,421,839
20,300,709
1,363,049
4,171,173
3,404,605
3,887,871
1,012,239
$ 7,402,398
21,839,070
2,734,592
5,335,214
3,600,158
3,683
4,234,889
981,573
$ 7,456,335
21,726,932
2,764,373
5,310,247
3,890,845
4,204
4,506,223
896,215
39,525,980 40,561,485
6,774,102
1,670,400
1,625,579
10, 070, 081
7,105,020
1,751,709
1,685,663
10,542,392
46,131,577 46,555,374
7,354,876
1,832,303
1,642,204
10,829,383
7,046,603
1,849,542
1,920,194
10,816,339
$ 49,596,061 $ 51,103,877
$ 56,960,960 $ 57,371,713
$ 781,653
937,873
5,005
102,614
1,977,676
894,681
1,607,688
3,705,424
10,012,614
$ 1,376,749 $ 1,243,936 $ 1,590,553
1,328,369 538,576 425,241
12,400 10,000 25,341
122,201 247,026 133,500
1,027,812 1,756,240 2,319,634
693,857 758,385 777,484
1,525,579 1,897,543 1,692,766
3,060,960 5,675,493 3,746,743
9,147,927 12,127,199 10,711,262
7,620,572 7,604,711 7,354,876 8,272,647
1,239,274 1,434,933 1,832,303 1,272,425
1,819,703 1,839,760 1,642,204 2,208,549
588,891 319,439 1,255,360 347,416
11,268,440 11,198, 843 12,084,743 12,101,037
21,281,054 20,346,770 24,211,942 22,812,299
(29,513,366) (31,413,558) (34,004,378) (35,844,111)
1,198,359 656,451 2,031,638 1,284,700
$(28,315,007) $(30,757,107) $ (31,972,740) $(34,559,411)
$ 10,336,366 $ 10,631,036
16, 492, 528 16, 887,846
29,667 381,706
390,221 443,605
2,309,787 2,646,356
1,614,587 1,732,739
4,100,309 3,229,155
191,589 192,816
416,483 768,097
106,776
(450,000) 824,118
35,431,537 37,844,250
228,458
188,242
$ 10,973,030 $ 11,302,099
18, 236, 733 19, 355, 867
415,652 344,748
501,478 583,232
2,930,332 3,666,079
2,097,082 2,236,675
4,941,461 4,127,360
185,475 217,600
1,923,171 1,727,879
467,510 13,652
1,372,652 1,134,683
44,044,576 44,709,874
241,723 645,473 500,000
310,750 539,463 618,563
450,000 (824,118) 1,250,000 (1,134,683)
866,700 (271,645) 2,434,936 (16,120)
$ 36,298,237 $ 37,572,605 $ 46,479,512 $ 44,693,754
$ 5,918,171 $ 6,430,692 $ 7,491,102 $ 8,865,765
2,065,059 384,806 4,580,734 1,268,580
$ 7,983,230 $ 6,815,498 $ 12,071,836 $ 10,134,345
146
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
Page 2 of 2
$ 4,723,103
24,147,992
2,862,487
5,864,297
5,017,935
4,173
4,797,856
1,844,224
$ 6,689,659
26,959,352
2,575,405
5,541,367
4,637,531
4,332
4,914,256
753,904
$ 7,052,717
26,088,644
2,533,394
6,015,197
4,579,338
4,539
4,756,676
1,061,419
$ 9,150,573
25,348,318
2,885,175
6,872,708
4,712,832
4,591
4,203,824
472,438
$ 8,343,107 $ 10,195,049
26,598,432 25,938,946
3,625,696 2,610,591
7,314,707 7,658,280
4,801,342 5,209,954
4,242,725 5,635,347
1,152,063 1,038,851
49,262,067 52,075,806
7,293,362
1,968,595
1,762,417
9,293,434
2,050,172
2,299,394
52,091,924 53,650,459 56,078,072 58,287,017
9,343,368
1,935,014
2,476,170
10,092,903
1,986, 747
2,588,098
10,149, 557
1,701,131
2,699,767
10,421,064
1,707,993
2,563,132
11,024, 374
13, 643, 000 13,754,552
14, 667, 748 14, 550, 455
14, 692,189
$ 60,286,441 $ 65,718,806 $ 65,846,476 $ 68,318,207 $ 70,628,527 $ 72,979,205
$ 895,966
1,184,530
1,200
130,637
2,476,501
711,542
1,325,163
2,282,592
9,008,131
$ 1,136,642 $ 1,080,801 $ 2,462,671
572,094 819,043 809,806
6,200 7,572
103,311 571,110 345,373
1,001,511 1,787,274 1,722,285
647,354 811,679 1,001,117
3,386,269 2,139,029 2,250,601
14,784,074 23,992,563 18,495,127
21,631,255 31,207,699 27,094,552
8,621,909 10,124, 653 9,665,095 11, 711, 242
1,563,681 1,424, 595 1,425, 327 1,304,016
2,642,325 2,641,313 3,029,630 3,355,956
756,400 515,633 7,390,545 1,993,537
13, 584, 315 14, 706,194 21, 510, 597 18, 364, 751
22,592,446 36,337,449 52,718,296 45,459,303
$ 1,332,418 $ 1,495,438
684,744 871,919
4,939 27,407
1,004,911 287,956
2,323,528 2,786,178
481,404 744,014
4,411,618 3,289,818
1,581,882 16, 947,529
11,825,444 26,450,258
11,758,658
1,448,729
3,827,010
135,603
13,146,131
1,404,264
3,913,184
338,943
17,170,000
18,802,521
28,995,444
45,252,779
(40,253,937) (30,444,551) (20,884,225)
2,559,941 1,063,194 7,756,045
(26,555,907) (44,252,628) (31,836,759)
3,697,003 2,619,546 4,110,332
$ (37,693,996) $(29,381,35/) $
(13,128,180) $ (22,858,904) $(41,633,082) $ (27,726,426)
$ 11,656,979 $ 11,901,072
18, 009, 297 14, 588, 297
643,037 748,772
587,216 489,806
5,136,444 7,390,860
2,497,705 3,196,178
983,078 367,198
874,046 2,233,445
801,847 246,287
(186,663) 980,267
1,383,774 1,601,200
42,386,760 43,743,382
500,000 327,999
377,955 106,032
(264,093)
(1,383,774) (1,601,200)
(505,819) (1,431,262)
$ 41,880,941 $ 42,312,120
$ 13,363,096 $ 13,443,137
14, 669, 328 15, 796, 054
533,811 317,531
458,092 555,682
5,600,683 7,534,260
4,205,574 667,679
507,798 2,170,293
1,951,936 2,085,740
108,929 275,477
1,399,310 525,864
42,798,557 43,371,717
329,527
85,942
97,541
(1,399,310)
(886,300)
$ 41,912,257 $
61,119
200,871
(525,864) (1,056,843) (1,060,650)
(263,874) (1,056,843) (1,060,650)
43,107,843 $ 43,336,078 $ 44,709,066
$ 14,131,605
15,441,683
232,208
522,033
5,535,966
2,497,606
2,860,948
1,895,647
116,694
101,688
1,056,843
$ 14,510,241
16,316,398
204,457
526,832
3,879,992
1,686,859
2,570,111
2,745,475
1,861,511
102,486
304,704
1,060,650
44,392,921
45,769,716
$ 2,132,823 $ 13,298,831 $ 21,914,332 $ 16,815,810 $ 140,293 $ 13,932,957
2,054,122 (368,068) 6,869,745 3,433,129 1,562,703 3,049,682
$ 4,186,945 $ 12,930,763 $ 28,784,077 $ 20,248,939 $ 1,702,996 $ 16,982,640
147
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 3
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Page 1 of 2
2004 2005 2006 2007 2008
General Fund (GASB 54)
Nonspendable
Restricted
Committed
Assigned
Unassigned
General Fund (Prior to GASB 54)
Reserved
Unreserved
Total general fund
557,690 557,690 13,250
8,533,639 8,408,104 8,693,215
12,650
10,504,748
17,800
7,687,515
$ 9,091,329 $ 8,965,794 $ 8,706,465 $10,517,398 $ 7,705,315
All other governmental funds (GASB 54)
Nonspendable $ - $ - $ - $ - $
Restricted - - - -
Committed
Assigned
Unassigned
All other governmental funds (Prior to GASB 54)
Reserved 720,860 $ 705,560
Unreserved, reported in:
Special revenue funds 6,933,242 5,669,921 8,500,342 10,834,781 12,943,487
Debt service funds 1,107,362 1,305,239 1,075,347 1,233,234 1,248,901
Capital Projects funds 4,092,179 5,677,953 7,245,827 8,113,739 6,831,634
Total all other governmental funds $ 12,853,643 $ 13,358,673 $ 16,821,516 $ 20,181,754 $ 21,024,022
Source:
Tukw ila Finance Department
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
Fund Balances
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
■All Other
Governmental
General Fund
148
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
Page 2 of 2
2009 2010 2011 2012 2013
$
$ $ 5,000 $ $ 1,743,362
18,000 -
- 225,000
8,237,141 8,378,557 15,317, 624
17,900 17,900
7,371,530 5,739,140
$ 7,389,430 $ 5,757,040 $ 8,260,141 $ 8,378,557 $17,285,986
$ $ - $ - $ - $ -
- 5,014,817 2,749,681 3,480,001
402,306
11,127,221 7,021,183 4,510,623
- - - (1,566,175)
9,123,401 14,461,546
135,438 3,051
7,101,258 8,541,195
$16,360,097 $ 23,005,792 $16,544,344 $ 9,770,864 $ 6,424,449
149
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (a)
LAST TEN FISCAL YEARS
page 1 of 2
2004 2005 2006 2007
Revenues
Taxes $ 34,148,173 $ 34,624,875 $ 37,801,814 $ 39,660,792
Licenses and Permits 808,821 1,002,683 1,273,228 1,827,709
Intergovernmental 6,306,463 5,672,810 7,083,032 6,403,217
Charges for Services 2,919,115 2,649,678 2,345,931 2,024,892
Fines and Forfeitures 147,137 116,737 221,097 266,188
Investment Income 356,625 638,196 1,159,971 1,425,423
Special Assessments - - - -
Miscellaneous 993,386 1,000,775 1,397,585 1,751,145
Total Revenues 45,681,724 45,705,754 51,282,658 53,359,366
Expenditures
General Government 5,982,594 6,136,540 6,882,594 7,034,602
Public Safety 18,393,514 19,604,151 20,953,226 21,038,810
Physical Environment 883,914 788,105 2,139,959 2,196,422
Transportation 2,620,038 1,705,692 2,447,096 2,413,390
Economic Environment 3,461,092 3,384,928 3,539,657 3,878,658
Mental & Physical Health - - 3,683 4,204
Culture and Recreation 3,187,113 3,358,583 3,687,580 3,938,779
Debt Service
Principal 804,000 851,000 888,000 930,000
Interest 1,057,974 1,033,474 1,006,161 914,584
Bond Issuance Costs - - - -
Capital Outlay 8,057,070 7,344,326 6,540,452 7,243,879
Total Expenditures 44,447,309 38,070,259 48,088,408 49,593,328
Excess (Deficiency) of Revenues 1,232,411 1,498,955 3,194,250 4,036,039
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In 350,000 150,000 2,143,581 2,266,349
Transfers In - Assessment
Transfers Out (900,000) (1,305,000) (2,430,769) (1,131,666)
Capital Leases - - -
Sale of Capital Assets 35,600 296,451 100
General Obligation Bonds Issued - - -
General Obligation Refunding Bonds Issued
LID Bonds Assessment -
Operating Loan -Tukw ila MPD - -
Premium on General Obligation Debt - - -
Premium on General Obligation Refunding Debt - - - -
Issuance Costs on General Obligation Refunding Debt
Payment to Refunded Bond Escrow Agent - - -
Total Other Financing Sources (Uses) (550,000) (1,119,400) 9,263 1,134,783
Net Change in Fund Balances $ 682,411 $ 379,555 $ 3,203,513 $ 5,170,822
Ratio of Debt Service Expenditures 5.4% 5.4% 4.8% 4.6%
To Total Non - Capital Expenditures
Note:
(a) All amounts are reported on the modified - accrual basis
Source:
Tukw ila Finance Department
150
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
page 2 of 2
2008 2009 2010 2011 2012 2013
$ 37,412,569 $ 37,167,281 $ 37,267,918 $ 38,035,681 $ 41,502,608 $ 42,402,070
2,022,851 1,283,463 1,618,830 3,473,910 1,604,594 2,013,875
5,697,598 17,596,486 14,525,872 24,059,907 7,626,487 7,190,325
2,569,381 1,443,680 2,366,174 2,359,600 3,974,356 3,747,646
259,991 301,761 390,079 308,027 220,752 242,638
926,913 282,604 144,258 275,479 106,286 151,911
- 2,788,350
816,054 701,957 891,307 356,409 131,979 427,368
49,705,357 58,777,232 57,204,438 68,869,013 55,167,062 58,964,183
7,992,286 8,574,563 8,387,317 8,253,440 8,504,511 9,303,742
22,878,689 25,576,932 24,676,370 24,327,498 24,918,306 25,720,884
2,255,880 2,058,913 1,724,147 2,060,482 3,022,516 1,935,895
2,783,077 2,334,298 2,332,178 2,676,511 2,769,182 3,111,493
4,995,514 4,601,391 4,541,845 4,682,646 4,767,944 5,224,964
4,173 4,332 4,539 4,591
4,293,658 4,365,023 4,163,503 3,507,150 3,373,000 4,386,392
972,000 1,316,297 1,555,028 1,766,774 1,991,540 5,024,991
872,224 778,018 849,148 881,850 1,178,464 1,162,649
6,089,703 16,860,362 11,513,976 25,643,704 12,099,293 5,854,962
53,137,204 66,470,129 59,748,051 73,804,646 62,624,756 61,725,970
(3,431,846) (7,692,894) (2,543,613) (4,935,633) (7,457,694) (2,761,786)
2,515,982 3,865,744 2,461,806 11,001,619 7,625,792 20,918,983
2,788,350
(1,107,543) (2,234,444) (1,020,857) (10,061,205) (6,174,358) (23,301,516)
110,509 15,468 -
53,592 1,014,608 27,308 21,406 9,903 5,493
6,935,000 5,055,688 1,000,000
6,180,000 6,947,574 - -
- 6,687,500
- (658,706) -
112,151 -
483,599 -
(108,326) - - -
(6,555,273) (6,880,397) (1,069,000) (5,055,688) -
1,462,031 2,713,085 7,556,917 977,288 802,631 8,098,809
$ (1,969,815) $ (4,979,809) $
5,013,304 $ (3,958,345) $ (6,655,064) $ 5,337,023
4.1% 4.4% 5.2% 5.8% 6.7% 11.07%
151
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 5
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Fiscal Year
Property Sales & Use Utilityw Excise Business Other(b> Total Taxes
2004 10,493,728 16,293,960 2,309,787 4,068,110 530,725 451,863 34,148,173
2005 10,627,410 16,887,845 2,646,356 3,222,936 408,798 831,530 34,624,875
2006 11,018,846 17,591,260 2,930,332 4,938,515 402,784 920,077 37,801,814
2007 11,177,532 19,355,867 3,666,079 4,124,168 405,973 931,173 39,660,792
2008 11,245,973 17,709,319 3,934,210 3,003,438 475,500 1,089,344 37,457,785
2009 12,190,219 14,585,015 6,172,569 2,824,407 738,341 656,730 37,167,281
2010 13,188,942 14,251,312 6,134,494 2,488,357 727,151 301,867 37,092,122
2011 13,427,139 16,113,584 5,424,643 1,780,294 667,064 622,955 38,035,681
2012 14,072,015 15,441,683 4,001,385 3,201,098 2,497,606 2,288,822 41,502,608
2013 14,510,241 16,316,398 3,879,992 2,745,475 2,570,111 2,418,148 42,440,365
Change 2004 -2013
38.3% 0.1% 46.6% - 32.5% 384.3% 435.2% 24.3%
Notes:
(a) Utility taxes enacted beginning in 2003 for electric, natural gas, cable and telephone utilities are assessed at rates of 6.0 %.
A utility tax was added in 2009 for solid waste and recycling assessed at a 6.0% rate.
A utility tax rate of 10.0% was added in 2010 on the City's water, sewer, and stormwater utilities.
(b) "Other Taxes" include a hotel /motel tax, natural gas use tax and interfund utility taxes.
Source:
Tukw ila Finance Department
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000 -
Tax Revenue by Source
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
❑ Other
• Business Tax
• Excise Tax
• Utilty Tax
• Sales & Use Tax
• Property Tax
152
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 6
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected Within the Fiscal
Year of the Levy Total Collections to Date
Collections in
Fiscal Taxes Levied for Subsequent
Year Fiscal Year Amount % of Levy Years Amount % of Levy
2004 10,489,114 10,345,276 98.63% 143,328 10,488,604 100.00%
2005 10,731,724 10,593,753 98.71% 137,447 10,731,200 100.00%
2006 10,973,030 10,844,728 98.83% 127,384 10,972,112 99.99%
2007 11,177,532 10,994,127 98.36% 180,706 11,174,833 99.98%
2008 11,411,293 11,194,247 98.10% 215,401 11,409,647 99.99%
2009 12,283,193 12,017,213 97.83% 261,874 12,279,086 99.97%
2010 13,234,489 13,152,036 99.38% 74,511 13,226,547 99.94%
2011 13,385,080 13,225,338 98.81% 123,403 13,348,742 99.73%
2012 13,705,220 13,521,621 98.66% 108,635 13,630,256 99.45%
2013 13,750,828 13,549,525 98.54% - 13,549,525 98.54%
Source:
King County Office of Finance
153
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 7
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Total Assessed Total Direct
Fiscal Year Real Property Personal Property Public Utilities Value Tax Rate
2004 2,916,855,190 447,099,099 77,169,236 3,441,123,525 3.11712
2005 3,091,233,279 457,546,448 61,779,040 3,610,558,767 3.03706
2006 3,399,709,737 482,100,071 66,123,704 3,947,933,512 2.84033
2007 3,853,680,774 509,151,926 87,410,974 4,450,243,674 2.56911
2008 4,470,042,539 595,268,205 110,399,231 5,175,709,975 2.37324
2009 4,122,961,628 746,710,751 112,779,972 4,982,452,351 2.66345
2010 3,950,829,851 717,795,417 119,827,058 4,788,452,326 2.82566
2011 3,833,295,985 712,607,656 129,726,102 4,675,629,743 2.95408
2012 3,778,571,709 736,480,616 134,138,983 4,649,191,308 2.98778
2013 3,824,448,044 779,103,146 152,822,498 4,756,373,688 2.97799
Note:
*Real, personal, and state public service property have been assessed at 100% of the estimated value.
Source:
King County Department of Assessments
$6,000,000,000
$5,000,000,000
$4,000,000,000
$3,000,000,000
$2,000,000,000
$1,000,000,000
$-
Assessed Value By Type
III II
1 1 1 1 1 1
I I 1 I 1
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Public Utilities
Personal
Property
154
Direct Property Tax Rates
3.50000 -
3.00000
2.50000 -
2.00000 -
1.50000
1.00000 -
0.50000
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 8
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1,000 OF ASSESSED VALUATION)
LAST TEN FISCAL YEARS
CITY OF TUKWILA
Emergency Tukw ila Tukw ila Pool
General Special King Port of Medical School Dist Flood Metropolitan Hospital
Fiscal Year Levy Levy Total WA State County() Seattle Service #406 Control Park District District #1 Total
2004 3.11712 - 3.11712 2.68951 1.91484 0.25321 0.23182 5.04535 0.04658 - 0.09039 13.38882
2005 3.03706 - 3.03706 2.49787 1.86293 0.23330 0.21982 5.01637 0.04482 - 0.59000 13.50217
2006 2.84033 2.84033 2.32535 1.75139 0.23158 0.20621 4.78874 0.04212 0.55652 12.74224
2007 2.56911 2.56911 2.13233 1.66106 0.22359 0.30000 4.73164 0.10000 0.50854 12.22627
2008 2.37324 - 2.37324 1.96268 1.51508 0.19700 0.27404 4.12360 0.09123 - 0.47141 11.00828
2009 2.66345 - 2.66345 2.22253 1.74587 0.21597 0.30000 3.89183 0.10514 - 0.53290 11.67769
2010 2.82566 2.82566 2.27990 1.90797 0.22366 0.30000 5.03380 0.10976 0.55753 13.23828
2011 2.95408 2.95408 2.42266 1.98580 0.22982 0.30000 5.44659 0.11616 0.50372 13.95883
2012 2.98778 - 2.98778 2.56720 2.11172 0.23324 0.30000 5.69832 0.13210 0.15000 0.50000 14.68036
2013 2.97799 2.97799 2.47044 2.08129 0.21533 0.33500 5.89098 0.15369 0.14944 0.50000 14.77416
Note:
P) Includes King County Library District tax and Ferry
Source:
King County Department of Assessments
1
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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CITY OF TUKWILA, WASHINGTON
SCHEDULE 9
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Name
Type of Business
2013 Assessed
Valuation
Percent of
2013 Total
Assessed
Value■a>
2004 Assessed
Valuation
Percent of
2004 Total
Assessed
Value(b)
Boeing Company
WEA Southcenter LLC
La Flanta LP /Segale Properties
E Property Tax Dept
KIR Tukwila 050 LLC/KIMCO
Qw est Corporation (US West Communications)
CWWA Tukwila 1 LLC
COSTCO Wholesale
Sea -Tuk Warehouse LLC
Wig Properties LLC (JC Penney)
Jorgensen Forge Corporation
Anne Arundel Apartments LLC (Group Health)
Puget Sound Energy /Gas - Electric
Southcenter Corporate Square
Boeing Employees Credit Union
BRCP Riverview Raza LLC
Koar - Seatac Partners LP (Embassy Suites)
Federated Department Stores (Mecys)
Merrill Creek Holding LLC (Kenw orth Motors)
Harnish Group Incorporated
Walton CWWA Eproperty Tax Incorporated (McElroy)
CHA Southcenter LLC (Doubletree Inn)
Home Depot
Sterling Realty Organization
Low e's HM/ Incorporated
Hill Investment Company
AMB Institutional Alliance
Group Health Cooperative
Heitman
Calw est Industrial
TOTALS
Airplane company
Department Stores
Corercial Properties
Commercial Properties
Commercial Properties
Telephone Utility
Investment Property
Cash & Carry Warehouse
Food Distribution
Department Stores
Steel Manufacturer
Apartments
Electric /Gas Utility
Hair Loss Center
Credit Union
Commercial Properties
Lodging
Department Stores
Truck Manufacturer
Truck Equipment
Investment Property
Lodging
Home Improvement
Commercial Properties
Home Improvement
Commercial Properties
Commercial Properties
Healthcare Admiin
Commercial Properties
Property Management
Notes:
0) In 2013 the total assessed property value in the City of Tukwila was $4,756,373,688.
(b) In 2004 the total assessed property value in the City of Tukwila was $3,441,123,525.
Source:
King County Department of Assessments
156
$ 422,762,422
298,510,135
165,317,953
119,869,800
82,015,900
78,499,861
40,938,100
37,164,419
34,302,000
33,924,982
32,431,256
29,618,300
28,736,298
27,361,300
26,496,457
25,377,700
22,487,678
21,269,000
20,112,600
17,896,665
17,778,300
17,474,495
15,931,771
14,293,700
13,665,439
7,518,800
8.89%
6.28%
3.48%
2.52%
1.72%
1.65%
0.86%
0.78%
0.72%
0.71%
0.68%
0.62%
0.60%
0.58%
0.56%
0.53%
0.47%
0.45%
0.42%
0.38%
0.37%
0.37%
0.33%
0.30%
0.29%
0.16%
$ 419,851,874
141,434,500
92,300,242
49,151,700
36,003,800
17,418,740
18,397,800
13,672,025
11,025,216
12.20%
4.11%
2.68%
1.43%
1.05%
0.51%
0.53%
0.40%
0.32%
21,983,036 0.64%
56,694,529 1.65%
16,029,335 0.47%
31,557,034 0.92%
10,047,486 0.29%
17,600,900 0.51%
7,459,900 0.22%
17,099,833 0.50%
6,007,100 0.17%
74,506,600 2.17%
31,503,118 0.92%
46,235,000 1.34%
42,612,000 1.24%
$ 1,651,755,331 34.73% $ 1,178,591,768 34.25%
CITY OF TUKWILA: 2013 CAFR
STATISTICAL SECTION
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SCHEDULE 10
RETAIL SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
page 1 of 2
Major Industry Sector 2004 2005(a) 2006
Construction and Contracting $ 958,758 $ 676,427 $ 1,166,088
Finance, Insurance & Real Estate 82,794 102,130 93,747
Manufacturing 446,965 503,778 450,138
Transportation, Communications & Utilities 387,148 384,703 436,260
Wholesale - Durable /Non - durable Goods 1,862,528 2,337,018 2,048,517
Retail Trade - General Merchandise 2,574,671 2,563,103 2,667,481
Retail Trade - Furniture /Home Furnishings 2,405,967 2,342,553 2,531,049
Retail Trade - Miscellaneous 1,735,045 1,497,474 1,642,722
Retail Trade - Clothing & Accessories 1,247,109 1,636,183 1,704,213
Retail Trade - Restaurants 1,031, 625 1,072,275 1,119, 859
Retail Trade - Automotive /Gas 982,413 980,006 1,053,184
Retail Trade - Building Materials 850,109 815,379 855,243
Service Industries - Business 488,857 979,752 1,141,632
Service Industries - Hotels 355,514 406,547 453,376
Service Industries - Other 486,215 278,041 278,777
All Other Categories 288,169 188,540 205,644
Total Retail Sales Tax Collections $ 16,183,887 $ 16,763,909 $ 17,847,930
Notes:
(a) Effective March 2005, the Department of Revenue changed reporting retail sales industries
from using the Standard Industrial Classification (SIC) code to use of the North American
Industry Classification System (NAICS). Retail sales tax collections prior to the time
of this change have not been adjusted.
By State law, the City of Tukwila is prohibited from reporting individual sales tax payers.
Sources:
Tukw ila Finance Department and Washington State Department of Revenue.
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CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
page 2 of 2
2007 2008 2009 2010 2011 2012 2013
$ 2,018,058 $ 1,967,785 $ 869,640 $ 917,250 $ 1,390,952 $ 961,125 $ 1,212,594
121,879 118,780 119,121 99,975 115,123 143,792 174,705
590,455 375,263 246,429 387,234 232,737 390,252 386,964
483,419 492,960 440,206 441,822 405,197 432,608 475,688
2,457,437 1,760,449 1,436,045 1,346,750 1,119,527 1,077,613 1,108,771
2,571,601 2,231,745 2,072,356 2,068,263 2,003,947 2,000,865 2,154,523
2,399,347 1,830, 576 1,304,234 1,380,407 1,771,083 1,537,143 1,405,274
1,766,853 1,718,898 1,473,496 1,521,741 1,626,452 1,703,741 1,870,200
1,838,646 2,103,630 2,017,904 2,018,304 2,037,554 2,082,930 2,070,198
1,158,424 1,312,603 1,292,252 1,342,964 1,337, 067 1,472, 343 1,529,101
1,026,778 1,066,183 748,482 664,310 670,806 690,076 690,691
777,870 619,657 589,341 499,383 487,620 516,861 565,734
1,198,690 1,129,380 868,260 882,012 932,422 928,610 968,996
531,836 548,962 453,657 428,450 459,606 487,977 502,721
294,869 318,696 283,319 215,045 202,217 234,870 246,802
179,421 185,312 208,467 366,925 553,493 381,693 525,133
$ 19,415,583 $ 17,780,879 $ 14,423,209 $ 14,580,835 $ 15,345,801 $ 15,042,499 $ 15,888,089
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CITY OF TUKWILA, WASHINGTON
SCHEDULE 11
SALES TAX RATE DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
2004 2005 2006 2007(c) 2008(d( 2009(e ) 2010 2011 2012 2013
BASIC SALES TAX RATES
City of Tukw ila 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84%
Washington State 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50%
King County 0.15% 0.15% 0.15% 0.15% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Regional Transit Authority 0.40% 0.40% 0.40% 0.40% 0.40% 0.90% 0.90% 0.90% 0.90% 0.90%
Metro 0.80% 0.80% 0.80% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90%
Criminal Justice 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
Department of Revenue 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
Administration Fee
Total Basic Combined Sales Tax Rate 8.80% 8.80% 8.80% 8.90% 9.00% 9.50% 9.50% 9.50% 9.50% 9.50%
SPECIAL SALES TAX RATES
Restaurants 0) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Motor Vehicles (b) 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%
Notes:
00 King County Food & Beverage tax is in addition to the combined sales tax rate for restaurants, taverns and bars.
The funds are used to finance the professional baseball stadium in Seattle.
* NOTE: This tax expired on October 1, 2011 as taxes imposed to pay the construction bonds for the Seattle baseball stadium expired.
(b) Effective July 1, 2003, all retail sales, leases and transfers of motor vehicles are subject to the additional sales tax of three - tenths of one percent
(.003). The funds are used to finance transportation improvements.
(e( Effective April 1, 2007, King County increased the local sales & use tax rate one -tenth of one percent (.001).
The tax will be used for transportation purposes.
Effective April 1, 2008, King County increased the local sales & use tax rate one -tenth of one percent (.001).
The tax will be used for chemical dependency or mental health treatment services.
lei Effective April 1, 2009, the Regional Transit Authority Tax increased five- tenths of one percent (.005).
The tax will be used to expand and coordinate light -rail, commuter -rail, and express bus service, and
improve access to transit facilities in King, Pierce, and Snohomish Counties.
Source:
Washington State Department of Revenue Local Sales and Use Tax Rates.
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STATISTICAL SECTION
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SCHEDULE 12
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Page 1 of 2
2004 2005 2006 2007 2008
GOVERNMENTAL ACTIVITIES
General Obligation Bonds (c) $ 20,806,553 $ 19,775,262 $ 18,881,798 $ 17,946,335 $ 17,261,348
Special Assessment (a)
Leases
Total Governmental Activities 20,806,553 19,775,262 18,881,798 17,946,335 17,261,348
BUSINESS -TYPE ACTIVITIES
General Obligation Bonds 5,382,500 4,972,500 4,547,500 4,102,500 3,642,500
Revenue Bonds 3,710,438 3,143,360 5,824,452 5,470,162 5,112,231
Public Works Trust Fund Loans 2,924,739 4,911,253 9,781,151 9,378,506 9,021,951
Leases - 108,818 77,947 45,587 11,666
Total Business -Type Activities 12,017,677 13,135,931 20,231,050 18,996,755 17,788,348
TOTAL PRIMARY GOVERNMENT(a) $ 32,824,230 $ 32,911,193 $ 39,112,848 $ 36,943,090 $ 35,049,696
Population (b) 17,240 17,110 17,930 18,000
Per Capita Personal Income (b) $ 49,533 $ 48,789 $ 52,655 $ 57,409 $
Percentage of Personal Income 3.87% 3.97% 4.16% 3.58%
Debt Per Capita $ 1,915 $ 1,935 $ 2,193 $ 2,052 $
Notes:
(a) Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements section.
(b) Reference SCHEDULE 19, Demographic Statistics, for population and personal income data.
* ** Data not available at time of publication.
(C) Includes amounts Due to Other Governments.
(d) Prior year estimated population used due to unavailability of current year estimate.
(e) Special assessment debt was issued in 2013 for the Klickitat Urban Access Project.
Sources:
U.S. Census Bureau, City of Tukw ila Finance Department.
18,080
58,141
3.33%
1,939
$50, 000,000
$40,000,000
$30, 000,000
$20,000,000
$10,000,000
$-
Total Debt
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
Page 2 of 2
2009 2010 2011 2012 2013
$ 22,453,003 $ 26,763,975 $ 28,006,800 $ 25,752,600 $ 21,727,609
- 6,687,500
40,184 35,891 - -
22,453,003 26,804,159 28,042,691 25,752,600 28,415,109
3,423,797 3,238,825 - - -
4,790,000 4,395,000 3,980,000 3,540,000 3,075,000
8,405,397 7,788,843 7,179,635 6,621,342 6,063,071
16,619,194 15,422,668 11,159,635 10,161,342 9,138,071
$ 39,072,197 $ 42,226,827 $ 39,202,326 $ 35,913,942 $ 37,553,180
18,170 19,107 19,486 19,611
$ 56,904 $ 44,271 $ 43,887 $ 43,333
3.78% 4.99% 4.58% 4.23%
$ 2,150 $ 2,210 $ 2,012 $ 1,831 $ 1,915
19,611 (d)
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CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Net
Debt Payable Ratio of Net Bonded
Special Less Debt from Bonded Debt Debt
Fiscal Gross Bonded Assessment Service Enterprise Net Bonded to Assessed per
Year Population Assessed Value Debt Debt (a) Funds(b) Revenues(') Debt Value Capita
2004 17,240 $ 3,441,123,525 $ 25,974,000 $ $ 1,107,362 $ 5,382,500 $ 19,484,138 0.57% 1,130
2005 17,110 3,610,558,767 24,713,000 1,305,239 4,972,500 18,435,261 0.51% 1,077
2006 17,930 3,947,933,512 25,648,290 1,075,347 4,547,500 20,025,443 0.51% 1,117
2007 18,000 4,450,243,674 24,421,474 1,233,234 4,102,500 19,085,740 0.43% 1,060
2008 18,080 5,175,709,975 23,125,007 1,250,275 3,642,500 18,232,231 0.35% 1,008
2009 18,170 4,973,984,133 25,876,800 135,438 3,423,797 22,317,565 0.45% 1,228
2010 19,107 4,809,486,786 29,950,150 3,050 3,238,825 26,708,275 0.56% 1,398
2011 19,107 4,752,606,030 28,006,800 3,330,312 - 24,676,488 0.52% 1,291
2012 19,486 4,649,191,308 25,752,600 3,012,381 22,740,219 0.49% 1,167
2013 19,611 4,756,373,688 21,727,609 6,687,500 $ 7,383,891 21,031,218 0.44% 1,072
Note:
(a) Special assessment debt was issued in 2013 for the Klickitat Urban Access Project.
(b) In 2011, the Debt Payable Balance from Enterprise Revenues was transferred to the Debt Service Funds.
(c) These amounts are the general obligation bonds that are being repaid by the Foster Golf Course Fund.
Sources:
State of Washington Office of Financial Management
King County Department of Assessments
Tukw ila Finance Department
$30, 000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
Net Bonded Debt
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 14
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
AS OF DECEMBER 31, 2013
Jurisdiction
Net General Percentage Estimated
Obligation Debt Applicable to Applicable to
Outstanding Tukw ila(1) Tukw ila
Direct:
City of Tukwila $ 21,727,609 100.00% $ 21,727,609
Overlapping:
King County 812,796,000 1.48% 12,029,381
King County Library 127,607,269 2.38% 3,037,053
Port of Seattle 283,815,000 1.48% 4,200,462
Tukwila School District #406 18,158,373 90.96% 16,516,856
Hospital District #1 5.67%
Total Overlapping Debt: 1,242,376,642 35,783,752
Total Direct and Overlapping Debt: $ 1,264,104,251 $ 57,511,361
Sources:
King County Office of Finance
King County Office of Assessments
(1) The percentage of overlapping debt applicable is estimated using taxable county assessed property values.
$25,000,000 -
$20,000,000 -
$15,000,000
$10,000,000
$5,000,000 -
$- -
Direct and Overlapping Debt
• City of Tukwila
• King County
❑ King County Library
• Port of Seattle
• Tukwila School District
❑Hospital District
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CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 15
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Page 1 of 2
2004
2005 2006
2007 2008
Debt Limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
Assessed Value as of December 31, 2013
Debt Limit (7.5% of assessed value)
Debt applicable to limit:
General obligation bonds
Other long -term debt
Less: Amount set aside for repayment of
general obligation debt and contracts payable
Total net debt applicable to limit
$ 258,084,264 $ 270,791,907 $ 296,095,014 $ 333,768,277 $ 388,178,248
24,866,638 23,407,761 24,494,996 23,188,240 21,881,765
$ 233, 217, 626 $ 247, 384,146 $ 271, 600, 018 $ 310, 580, 037 $ 366, 296, 483
9.64% 8.64% 8.27% 6.95% 5.64%
$4,756,373,688
356,728,027
21,727,609
10,025,467
31,753,076
(7,383,891)
24, 369,185
$ 332,358,841
Legal debt margin
Source:
Tukwila Finance Department
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CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
Page 2 of 2
2009 2010 2011 2012 2013
$ 373,048,810 $ 360,711,509 $ 356,445,452 $ 348,689,348 $ 356,728,027
28,291,920 32,919,123 29,703,995 25,884,632 24,369,185
$ 344,756,890 $ 327,792,386 $ 326,741,457 $ 322,804,716 $ 332,358,841
7.58%
9.13% 8.33%
167
7.42% 6.83%
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 16
REVENUE BOND COVERAGE - WATER BONDS
LAST TWO FISCAL YEARS
Net Revenue
Fiscal Gross Operating Available for Debt Average Annual Debt Service Requirements Times
Year Revenueea) Expenses(b) Service Principal Interest Total Coverage)
2012 5,250,929 3,985,190 1,265,739 136,573 30,240 166,813 7.59
2013 5,763,713 4,363,133 1,400,580 121,771 24,534 146,305 9.57
Notes:
(a) Includes operating and non - operating revenue.Excludes capital contributions.
(b) Includes operating expenses and non - operating expenses exclusive of depreciation, amortization and interest charges.
() Bond financing requirements are that the average annual coverage is at least 1.25 times the average annual debt service
for Water and Sewer revenue bonds.
Sources:
Tukw ila Finance Department
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CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 17
REVENUE BOND COVERAGE - SEWER BONDS
LAST TWO FISCAL YEARS
Net Revenue
Fiscal Gross Operating Available for Debt Average Annual Debt Service Requirements Times
Year Revenue(a) Expenses(b) Service Principal Interest Total Coverage)
2012 6,505,121 5,076,916 1,428,205 107,880 42,094 149,974 9.52
2013 7,387,048 5,032,120 2,354,928 109,829 40,054 149,883 15.71
Notes:
(a) Includes operating and non - operating revenue.Excludes capital contributions.
(b) Includes operating expenses and non - operating expenses exclusive of depreciation, amortization and interest charges.
(a) Bond financing requirements are that the average annual coverage is at least 1.25 times the average annual debt service
for Water and Sewer revenue bonds.
Sources:
Tukw ila Finance Department
169
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 18
REVENUE BOND COVERAGE - SURFACE WATER BONDS
LAST EIGHT FISCAL YEARS
Net Revenue
Fiscal Gross Operating Available for Debt Average Annual Debt Service Requirements Times
Year Revenueea) Expenses(b) Service Principal Interest Total Coverage)
2006 $2,434,657 $ 1,185,799 $ 1,248,858 $ 18,171 $ 9,501 $ 27,672
2007 2,393,067 1,335,256 1,057,811 19,080 9,976 29,056
2008 2,765,320 1,133,871 1,631,449 19,453 9,614 29,067
2009 2,672,554 1,670,565 1,001,989 19,800 9,263 29,063
2010 3,141,153 1,833,245 1,307,908 20,153 8,902 29,055
2011 3,493,373 1,813,223 1,680,150 20,513 8,530 29,043
2012 3,761,197 1,906,766 1,854,431 20,880 8,147 29,027
2013 3,886,734 1,774,380 2,112,354 21,257 7,752 29,009
45.13
36.41
56.13
34.48
45.01
57.85
63.89
72.82
Notes:
(a) Includes operating and non - operating revenue. Excludes capital contributions.
(b) Includes operating expenses and non - operating expenses exclusive of depreciation, amortization and interest charges.
(c) Bond financing requirements are that the average annual coverage is at least 1.25 times the average annual debt service
for Surface Water revenue bonds.
No revenue bond coverage for surface water bonds prior to 2006.
Source:
Tukw ila Finance Department
Coverage
Ratio
100.00
80.00
60.00
40.00
20.00
Surface Water Revenue Bonds
2006 2007 2008 2009 2010 2011 2012 2013
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CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 19
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Per Capita Personal Number of Number of Tukw ila School
Fiscal Personal Income (b) Single- Family Multi - Family District Unemployment
Year Population Income I') (in thousands) Homes Units Enrollment Rate I °)
2004 17,240 49,533 853,949 3,732 4,107 2,628 7.0%
2005 17,110 48,789 834,780 3,791 4,107 2,650 6.4%
2006 17,930 52,655 944,104 3,838 4,107 2,698 5.7%
2007 18,000 57,409 1,033,362 3,864 4,107 2,862 5.0%
2008 18,080 58,141 1,051,189 3,884 4,107 2,769 5.9%
2009 18,170 56,904 1,033,946 3,885 4,107 2,795 10.9%
2010 19,107 44,271 845,886 3,892 4,107 2,907 11.7%
2011 19,107 43,887 838,549 3,894 4,094 2,870 7.6%
2012 19,486 43,333 844,387 3,896 4,094 2,902 7.4%
2013 19,611 * ** * ** 3,915 4,094 2,882 5.2%
Notes:
(a) Per Capita Personal Income data shown is for King County. Specific data for City of Tukwila is not available.
(b) Personal Income estimates are calculated by multiplying Tukwila population by the Per Capita Personal Income
estimates for Tukwila and are based on a revised methodology that provides for more accuracy. See also Footnote (a).
(c) Unemployment rates are listed and estimated using the census -share method.
* ** Data not available at time of publication.
Sources:
Tukw ila Planning Division, Department of Community Development
State of Washington Office of Financial Management
Work Force Development Council of Seattle - King County (Unemployment Data)
Tukw ila School District #406
US Bureau of Economic Analysis
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Unemployment Rate
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
171
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 20
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Name of Company /Employer
Product or Business
2013 Full & Percentage of 2004 Full & Percentage of
Part -Time Total City Part -Time Total City
Employment Employees Employment Employees
Boeing Company
King County Metro
Costco Wholesale
Boeing Employees Credit Union
Group Health Cooperative
Nordstrom
Red Dot Corporation
Macy's
United Parcel Service
Hartung Glass Industries Inc.
Sub -total - Major Employers
All Other Employment
TOTAL EMPLOYMENT
Airplane company
Transit operating base
Cash /carry Warehouse
Banking /Credit Union
Data Ctr /Lab /Pharmacy /Mfg.
Department Store
Heater /air conditioning equipment
Department Store
Postal Delivery Service
Manufacturing
Source:
Tukw ila Finance Department - Business Licenses
172
7,799 19.80% 11,382 25.94%
800 2.03% 700 1.60%
727 1.85% 314 0.72%
566 1.44% 600 1.37%
561 1.42% 1,800 4.10%
523 1.33% - 0.00%
447 1.13% 264 0.60%
382 0.97% 414 0.94%
329 0.84% 288 0.66%
275 0.70% 288 0.66%
12,409 16,050
26,983 27,827
39,392 43,877
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 21
FULL TIME EQUIVALENT EMPLOYEE BY DEPARTMENT
LAST TEN FISCAL YEARS
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
DEPARTM ENT
Administrative Services (a) 21.75 22.75 23.75 26.75 19.75 - - - -
Council 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Mayor (b) 11.50 11.00 11.00 12.00 11.00 16.00 17.00 15.75 16.75 17.75
Human Resources (a) 4.00 4.00 4.00 4.00 4.00
Finance 13.00 12.00 11.00 11.00 12.00 12.00 13.00 11.00 12.00 12.00
Recreation 20.25 22.00 22.50 23.50 23.50 22.50 20.75 16.25 16.25 16.25
Community Development 19.88 20.88 20.88 20.25 24.25 24.25 23.00 22.63 23.38 22.13
Court (a) 9.75 8.75 8.75 9.00 9.00
Police (c) 78.00 81.00 83.00 80.00 83.00 82.00 80.00 83.00 88.00 87.50
Fire 63.00 67.00 65.00 66.00 64.00 63.00 65.00 66.00 67.00 67.00
Information Technology (a) 7.00 8.00 8.00 8.00 8.00 7.00
Public Works 35.00 35.00 34.00 32.00 33.00 32.00 30.00 30.00 30.00 31.00
Parks 9.50 10.50 10.25 7.50 7.50 7.50 7.50 7.50 7.50 6.00
Street 11.00 11.00 10.00 11.00 12.00 12.00 11.00 12.00 12.00 12.50
Water 5.00 6.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Sewer 3.00 3.00 3.00 3.00 2.00 2.00 1.00 2.00 2.00 2.00
Golf 9.50 9.50 9.25 9.25 9.75 9.75 10.00 9.25 8.25 9.25
Surface Water 5.00 7.00 7.00 7.00 8.00 8.00 7.00 8.00 8.00 8.00
Equipment Rental 4.00 4.00 5.00 4.00 5.00 5.00 5.00 5.00 5.00 5.00
Metropolitan Park District Pool (d) - 2.00 2.00 2.00
TOTAL 316.38 329.63 329.63 327.25 335.75 331.75 325.00 325.13 333.13 332.38
Notes:
Based on filled positions not budgeted positions.
(al The departments for Human Resources, Court, City Clerk and Information Technology were previously reported under Administrative Services.
(b) The department of City Clerk began reporting to the Mayor's department in 2009.
(0 The department of City Clerk began reporting to the Mayor's department in 2009.
(d1 On September 12, 2011, the Board of Commissioners approved the formation of the Tukwila Metropolitan Park District (MPD) Pool.
For the comprehensive annual financial report years of 2011 and 2012, the MPD Pool was treated as a discretely presented component
unit. Effective with the report year 2013, statistical information is now included for the MPD and presented as a blended component unit.
Sources:
Tukw ila Finance Department
173
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 22
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
FUNCTION
Police
Number of Calls for Service
30,032 32,922 33,686 33,985 35,816 33,095 32,889 30,272 31,916 31,355
Fire
Number of Responses 4,229 4,710 4,921 4,673 4,824 4,654 4,574 4,649 4,844 4,604
Total Fire Loss $910,655 $1,414,741 $2,982,265 $3,065,005 $2,300,685 $1,934,596 $1,655,571 $1,601,596 $675,847 $343,495
Total Inspections 5,855 5,482 4,705 4,845 6,787 6,787 6) 1,550 mr 1,360 6) 4,541 3,389
Parks and Recreation
Class Participants 64,000 64,000 64,000 98,087 109,273 103,603 85,693 64,049 58,260 52,319
Community CtrAdmissions 35,150 33,750 34,850 90,141 117,533 134,183 134,275 115,728 116,136 114,748
Rounds of Golf Rayed 53,070 54,449 55,195 55,446 53,565 53,800 50,445 45,947 47,392 47,757
Pool Attendance 59,996 72,778 72,963 57,624 59,077 80,727 101,128 66,213 69,332 71,233
Street
Mles 79 79 79 79 79 79 79 79 79 79
Hours Maintaining 13,706 15,243 16,970 17,540 19,840 22,140 20,360 20,360 22,920 16,767
Signalized htersections 61 61 61 63 63 59 59 59 62 62
Hours Maintaining 6,445 9,054 7,642 7,540 7,540 6,700 6,925 6,925 7,000 8,815
Water Utility Services
Total Customers 2,107 2,164 2,117 2,113 2,109 2,112 2,100 2,109 2,117 2,118
Total Gallons/Water(in
thousands) 765,000 886,000 789,981 680,649 660,915 731,469 630,755 625,976 650,659 645,982
Sanitary Sewer
Total Customers 1,698 1,710 1,720 1,718 1,684 1,694 1,699 1,710 1,727 1,742
Surface Water
Total Customers
Licenses
Business Licenses
Outside Contractors
5,064 5,100 5,107 5,156 5,164 5,204 5,207 5,207 5,212 5,226
2,292 2,286 2,354 2,350 2,523 2,422 2,454 2,611 2,030 1,877
i °i 1,066 1,132
Permits
Building Permits 364 430 422 425 423 265 290 389 354 374
Mechanical Permits 182 193 239 238 256 159 160 180 191 221
Dectrical Permits N/A N/A N/A 758 1,533 821 955 1,158 1,175 1,337
Rurrbing Permits N/A N/A 192 306 264 145 163 187 210 167
Public Works Permits 97 112 144 136 154 131 138 106 126 155
Libraries
Number of Libraries 3 3 3 3 3 3 2 2 2 2
Total Circulation 215,115 215,115 320,794 306,001 303,665 318,991 327,004 333,451 332,509 313,571
Notes:
(a) Construction of new clubhouse completed and opened in 2003.
i'i Due to information system and data program transitioning, this total does not include fire prevention staff inspections at this time as reported in prior years.
(C) During 2012, Outside Contractors began their own business licensing category. Prior to this, outside contractors w ere consolidated with current year issued licenses.
* Information not available.
** Pool facilities acquired from King County in 2003.
Sources:
Tukwila Departments, King County Library System
174
CITY OF TUKWILA: 2013 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 23
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
FUNCTION
General Government
Total City Area (Square Miles) 8.6 8.6 8.6 8.6 8.6 9.7 9.7 9.7 9.6 9.6
Public Safety
Police:
Number of Vehicle Units 63 64 64 64 67 70 76 84 88 81
Fire:
Number of Fire Stations 4 4 4 4 4 4 4 4 4 4
Number of Engines /Rescue Trucks /Ladders 8 8 9 9 9 9 8 7 7 7
Number of Medical Aid Vehicles 2 2 2 2 2 2 2 1 1 1
Number of Hazardous Materials Trailer Units WA 1 1 2 2 2 2 2 2 2
Transportation
Paved Streets (lane miles) 163 163 163 163 163 178 178 178 188.2 188.2
Sidew alks (miles) 54 54 54 54 54 56 56 56 64.8 64.8
Number of Traffic Signals 55 55 55 57 57 59 59 59 64 63
Number of Streetlights Owned by Seattle City Light 1,180 1,180 1,180 1,180 1,180 1,180 1,335 1,335 (0) 901 901
Number of Streetlights Ow ned by Puget Sound Energy 670 670 670 670 670 696 696 623 ( °) 187 187
Number of Streetlights Ow ned by City of Tukw ila - )c) 1,210 1216
Culture and Recreation
Parks Acreage (a) 158 158 161 160 162 162 162 162 175.6 175.6
Number of Parks 15 15 16 18 18 18 18 18 19 19
Golf Course Acreage 67 67 67 67 67 67 67 67 77.26 77.26
Maintained Trails (miles) 11 11 11 11 11 15 15 15 15 15
Number of Playgrounds 13 13 13 13 13 11 11 11 11 11
Swimming Pool 1 1 1 1 1 1 1 -
Visitor Center 1 1 1 1 1 1 1 1 1 1
Community Center /Recreation Facilities 1 1 1 1 1 1 1 1 1 1
Number of Libraries 3 3 3 3 3 3 2 2 2 2
Water
Water Distribution Mains (miles) 45 45 45 47 47 41 41 41 41 41
Maximum Daily Capacity (millions of gallons) 10 10 10 10 10 10 10 10 10 10
Number of Fire Hydrants (Ow ned by City of Tukw ila) 527 533 537 555 572 541 542 554 576 576
Vehicles 6 7 7 8 8 8 8 8 8 8
Sewer
Sanitary Sewers (miles) 33 33 33 37 37 37 37 37 37 37
Maximum Daily Treatment Capacity (millions of gallons) 6.33 6.33 6.33 6.33 6.33 6.33 6.33 6.33 6.33 6.33
Vehicles 3 3 5 5 6 6 6 6 6 5
Surface Water
Storm Drains (miles) roi 59 60 62 67 67 69 69 70 70 70
Vehicles 5 5 4 4 4 4 4 4 4 4
Notes:
(a) Reflects the correct reporting of data for Culture and Recreation - Parks Acreage for the years 2001 through 2006. Parks acreage
previously reported included golf course acreage.
roi Reflects the correct reporting of data for Surface Water - Storm Drains (miles) for the years 2001 through 2006. Miles previously
reported were incorrect data estimates.
(o) Reflects changes in 2012 inventory and ownership of street lights due to the routing of more units into the City's meters. Also,
additional street lights were added due to new construction for Southcenter Parkway Extension and Klickitat Projects.
Sources:
Various Departments-Tukw ila
175
CITY OF TUKWILA: 2013 CAFR
STATISTICAL SECTION
176