HomeMy WebLinkAbout2010 Comprehensive Annual Financial Report (CAFR)$A 4.
City of Tukwila, Washington
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended December 31, 2010
The City of Tukwila, Washington
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
For the Year Ended December 31, 2010
Prepared by the City of Tukwila, Finance Department
Shawn Hunstock, Finance Director
JIM HAGGERTON, MAYOR
TUKWILA CITY COUNCIL
Allan Ekberg, President
Joe Duffle Joan Hernandez
Dennis Robertson Verna Seal
Kathy Hougardy De' Sean Quinn
Cover photo by Craig Zellerhoff
Old Tukwila City Hall /Tukwila Library
now home of the Tukwila Heritage and Cultural Center
CITY OF TUKWILA: 2010 CAFR TABLE OF CONTENTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2010
TABLE OF CONTENTS
Page
I. INTRODUCTORY SECTION
Table of Contents
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 13
Basic Financial Statements
Government -wide Financial Statements:
Statement of Net Assets 31
Statement of Activities 32
Fund Financial Statements:
Balance Sheet — Governmental Funds 35
Statement of Revenues, Expenditures, and Changes in
Fund Balance — Governmental Funds 36
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 37
Statement of Revenues, Expenditures, and Changes in
Fund Balance — Budget and Actual:
General Fund 38
Arterial Street Fund 39
Statement of Net Assets — Proprietary Funds 42
Statement of Revenues, Expenses, and Changes in
Fund Net Assets — Proprietary Funds 43
Statement of Cash Flows — Proprietary Funds 44
Statement of Fiduciary Net Assets — Fiduciary Fund 48
Statement of Changes in Fiduciary Net Assets — Fiduciary Fund 49
Notes to the Financial Statements 51
Required Supplemental Information:
Firemen's Pension Trust Fund 93
Retiree Medical and Long -Term Care Benefits for LEOFF I Employees 93
Notes to the Required Supplementary Information 94
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet — Non -Major Governmental Funds 96
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Governmental Funds 97
Combining Balance Sheet — Non -Major Special Revenue Funds 100
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Special Revenue Funds 101
Schedules of Revenues, Expenditures, and Changes in
Fund Balances — Budget and Actual:
Hotel /Motel Tax Fund 102
Street Fund 103
CITY OF TUKWILA: 2010 CAFR TABLE OF CONTENTS
Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual:
(continued)
Page
Contingency Fund 104
Fire Equipment Cumulative Reserve Fund 105
Drug Seizure Special Revenue Fund 106
Combining Balance Sheet — Non -Major Debt Service Funds 108
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance — Non -Major Debt Service Funds 110
Combining Balance Sheet — Non -Major Capital Project Funds 114
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Capital Project Funds 115
Combining Statements of Net Assets — Internal Service Funds 118
Combining Statement of Revenues, Expenses, and Changes in
Fund Net Assets — Internal Service Funds 119
Combining Statement of Cash Flows — Internal Service Funds 120
III. STATISTICAL SECTION
Schedule
Net Assets by Component 1 124
Changes in Net Assets 2 126
Fund Balances, Governmental Funds 3 128
Changes in Fund Balances of Governmental Funds 4 130
General Government Tax Revenues by Source 5 132
Property Tax Levies and Collections 6 133
Assessed and Estimated Actual Value of Taxable Property 7 134
Property Tax Rates — Direct and Overlapping Governments 8 135
Principal Property Taxpayers 9 136
Retail Sales Tax Collections by Sector 10 138
Sales Tax Rate Direct and Overlapping Governments 11 140
Ratios of Outstanding Debt by Type 12 142
Ratios of General Bonded Debt Outstanding 13 144
Computation of Direct and Overlapping Debt 14 145
Legal Debt Margin Information 15 146
Revenue Bond Coverage — Water and Sewer Bonds 16 148
Demographic Statistics 17 150
Principal Employers 18 151
Full -Time Equivalent City Government Employees by Function 19 152
Operating Indicators by Function 20 153
Capital Assets by Function 21 154
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CITY OF TUKWILA: 2010 CAFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
ADMINISTRATIVE ORGANIZATIONAL STRUCTURE
AND PRINCIPAL OFFICIALS
CITIZENS OF TUKWILA
COUNCIL
MEMBERS
MAYOR
Jim Haggerton
CITY
ADMINISTRATOR
Steve Lancaster
\ /
MUNICIPAL
COURT
Kimberly Walden
\ J
CITY ATTORNEY
Kenyon Disend PLLC
(Contracted)
HUMAN
RESOURCES
Stephanie Brown
/ \
INFORMATION
TECHNOLOGY
Mary Miotke
FINANCE
Shawn Hunstock
\ /
COMMUNITY
DEVELOPMENT
Jack Pace
PARKS AND
RECREATION
Rick Still
/ \
FIRE
Nick Olivas
COUNCIL COMMITTEES
FINANCE AND SAFETY COMMITTEE
Kathy Hougardy, Chairperson
Joan Hernandez, Member
Dennis Robertson, Member
COMMUNITY AFFAIRS AND PARKS
Verna Seal, Chairperson
Joe Duffie, Member
De'Sean Quinn, Member
1
PUBLIC WORKS
Bob Giberson
POLICE
Mike Villa
TRANSPORTATION
Joan Hernandez, Chairperson
Joe Duffie, Member
Verna Seal, Member
UTILITIES
De'Sean Quinn, Chairperson
Dennis Robertson, Member
Kathy Hougardy, Member
CITY OF TUKWILA: 2010 CAFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
2
City of Tukwila
6200 Southcenter Blvd, Tukwila, WA 98188 Jim Haggerton, Mayor
June 30, 2011
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 2010 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, 2010. 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: 2010 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, 2010 provided no instances of material
weaknesses in the internal control structure or significant violations of applicable laws.
B. ORGANIZATION OF THE REPORT
The report is divided into three sections: the Introductory Section, the Financial Section, and
the Statistical Section. The Introductory Section contains the table of contents, a list of the
City's principal officials, an organizational chart, this letter of transmittal, and the Certificate of
Achievement for Excellence in Financial Reporting from the Government Finance Officers'
Association of the United States and Canada (GFOA) for the 2009 CAFR. The Financial
Section contains the Auditor's Report, completed by the Washington State Auditor,
Management's Discussion and Analysis, Government -Wide Financial Statements, the Fund
Financial Statements, Notes to the Financial Statements and Other Required Combining and
Supplemental Information. The Statistical Section, which is unaudited, contains a range of
statistical tables and charts that present various financial, economic, social, and demographic
data about the City. This information depicts various trends that have affected the fiscal
condition of the City over the last ten years.
C. 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. Council members 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.
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CITY OF TUKWILA: 2010 CAFR LETTER OF TRANSMITTAL
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. The City provides sewer, water,
and surface water services. The City 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
19,107; however, the daytime shopper /visitor and working population can reach over 150,000
during the holiday shopping season.
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 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) and planned multi -modal transit center and commuter light rail 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 $14.6 million
in revenue for 2010. The total combined retail sales activity amounted to approximately $1.7
billion in 2010. While this represents a significant decline in sales tax revenue and retail activity
within Tukwila, as compared to 2007, the City has been aggressively adjusting its budget to
meet the new revenue stream. 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 $4.81 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 is experiencing modest growth in overall development activities and in retail sales.
Permitting activity increased from 1,382 permits issued in 2009 for a total value of $59 million to
1,695 permits issued in 2010 for a total value of $90 million. After significant declines in retail
activity between 2007 and 2009, retail sales for 2010 leveled out and started a slow rebound in
5
CITY OF TUKWILA: 2010 CAFR LETTER OF TRANSMITTAL
the second half of 2010. The total retail sales activity of $1.7 billion in 2010 was an increase of
$18.6 million over 2009. The trend of modest but consistent growth has continued into 2011.
B. FUTURE ECONOMIC OUTLOOK
Tukwila is in a continuous process of both short -term and Tong -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.
The City annexed an area south of the urban center on December 31, 2009. The annexation
included approximately 259 acres of mostly undeveloped land. The City also entered into a
development agreement with the principle owner of property within the annexation area. The
agreement calls for the development of approximately 512 acres, commonly known as Tukwila
South, including the recently annexed 259 acres. The master plan for Tukwila South
anticipates the creation of 25,000 jobs through the addition of 5 to 10 million square feet of
office technology / flex -tech space, 1 to 2 million square feet of goods and services, and 700 to
1,900 units of housing. In addition, there will be significant investment in infrastructure within
the development area, including the realignment and construction of Southcenter Parkway for
approximately $22.3 million in total costs. The developer has given the City a number of
revenue guarantees related to Southcenter Parkway construction costs, and operations and
maintenance costs within the development area. The revenue guarantees are secured by
letters of credit held by an independent third party, as well as deeds of trust for certain
properties within the development area. The term of the development agreement is 15 years,
during which time there is expected to be a multi - million dollar investment in private and public
facilities, increasing the long -term economic base of the City.
Outside of the development area, growth is predicted to continue but not at the rate
experienced in the late 1990's and early 2000's. The challenge is to control costs that grow at
a faster rate than revenue. Areas of concern are health care costs and public safety costs
related to incarceration and labor contracts. Continuing to fund these sectors will draw
valuable resources from other areas such as infrastructure replacement and capital programs.
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.
Towards that end, the City adopted a contingency reserve policy in December 2009, which
calls for the eventual establishment of two months of general fund operations in reserve. It is
expected the reserve will be built up over a four to five year period beginning in 2011.
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CITY OF TUKWILA: 2010 CAFR LETTER OF TRANSMITTAL
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 2010 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 2010. 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 2010.
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.
B. 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,
2009. This was the 23rd 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: 2010 CAFR LETTER OF TRANSMITTAL
C. ACKNOWLEDGMENTS
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 2010 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,
Shawn Hunstock, CPA
Finance Director
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CITY OF TUKWILA: 2010 CAFR
LETTER OF TRANSMITTAL
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, 2 009
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
Executive Director
9
CITY OF TUKWILA: 2010 CAFR
LETTER OF TRANSMITTAL
10
CITY OF TUKWILA: 2010 CAFR AUDITOR'S OPINION LETTER
ti
Washington State Auditor
Brian Sonntag
INDEPENDENT AUDITOR'S REPORT
June 30, 2011
Mayor and City Council
City of Tukwila
Tukwila, Washington
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund and the aggregate remaining fund interrelation of the
City of Tukwila. King County. Washington, as of and for the year ended December 31, 2010,
which collectively comprise the City's basic financial statements as listed in the table of
contents. These financial statements are the responsibility of the City's management. 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 Government
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 of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinions.
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 remainino fund information of the City of Tukwila, King County,
Washington. as of December 31, 2010, and the respective changes in financial position and,
where applicable, cash flows thereof, and the respective budgetary comparison for the General
and Arterial Street funds for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
In accordance with Government Auditing Standards, we will also issue our report dated June
30, 2011, 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. 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 the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
lo{uraa�ce
BLOW ing. PO Box 40021. Olympia, Washington 9N504-0021 • (360 902 -0370 • (1166) 902.3400 • Tlan Relay (8(1(11 833.638(
FAX (360) 743.0646 • hfp:L'wwiw,sao.wa.goa
11
CITY OF TUKWILA: 2010 CAFR AUDITOR'S OPINION LETTER
The management's discussion and analysis on pages 13 through 28, pension trust fund
information and information on postemployment benefits other than pensions on pages 93
through 94 are not a required part of the basic financial statements but are supplementary
information required by the Governmental Accounting Standards Board. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation of the required supplementary information.
However. we did not audit the information and express no opinion on it.
Our audit was performed 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 supplemental information on pages 96 through 123 is
presented for purposes of additional analysis and is not a required part of the basic financial
statements. This information has been subjected to auditing procedures applied in the audit of
the basic financial statements and, in our opinion, 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 express no opinion on
it.
Sincerely,
BRIAN SONNTAG, CGFM
STATE AUDITOR
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CITY OF TUKWILA: 2010 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2010
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, 2010. 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 assets, the amount by which total assets exceed total liabilities, equal $268.6 million.
A total of 83 percent or $221.8 million of total net assets is invested in capital assets such as
streets, land, buildings, equipment, and other improvements. The remaining net assets of
$46.7 million is available for debt service, capital projects, and to meet the government's
ongoing activities and obligations.
• The government's net assets increased by $30.8 million in 2010. Governmental activities
provided a $24.0 million increase and the increase for business -type activities accounted for
the difference.
• As of the close of the current fiscal year, the City of Tukwila's governmental funds reported
combined ending fund balances of $28,762,832 an increase of $5,013,305 in comparison with
the prior year.
• At the end of the current fiscal year, unreserved fund balance for the general fund was
$5,739,140, or 13 percent of total general fund expenditures.
• The City of Tukwila's total debt increased by $3,491,854 during the current fiscal year. The
City incurred $5.9 million in additional debt for arterial street construction and emergency
response equipment purchases. This increase was offset by $2.7 million in payments on
existing debt.
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 a financial whole or as
an entire operating entity. The statements then proceed to provide an increasingly detailed look at
specific financial conditions.
The Statement of Net Assets 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: 2010 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 Assets 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 assets 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 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
14
CITY OF TUKWILA: 2010 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 Assets is found on
the bottom of 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 eighteen individual governmental funds. Of these, three are considered major
(the general fund, the arterial street fund, and the land acquisition recreation & park development
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 ".
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 arterial street funds within the financial statements.
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.
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.
15
CITY OF TUKWILA: 2010 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
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 concerning 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,
nonmajor enterprise funds, and internal service funds are presented in the section titled "Combining
and Individual Fund Financial Statements and Schedules ".
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. For the City of Tukwila, total assets exceeded liabilities by $268,552,522 at December 31,
2010.
The largest portion of the City's net assets, $221.8 million, or 83 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:
CITY OF TUKWILA NET ASSETS
Governmental Activities Business -type Activities Total
As of 12/31/10 As of 12/31/09 As of 12/31/10 As of 12/31/09 As of 12/31/10 As of 12/31/09
Current and other assets
Capital assets, net of
accumulated depreciation
Total assets
Long -term liabilities
Other liabilities
Total liabilities
Net assets
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
$ 53,165,106 $ 46,194,349 $ 12,166,042 $ 12,551,672 $ 65,331,148 $ 58,746,021
195,938,217
249,103, 323
172,742,658 60,321,804 54,235,914 256,260,021 226,978,572
218,937,007 72,487,846 66,787,586 321,591,169 285,724,593
21,739,892
15,158,923
36,898,815
16,895,646
13,802,779
30,698,425
14,335,996 16,157,533 36,075,888 33,053,179
1,803,836 1,151, 784 16, 962, 759 14, 954, 563
16,139,832 17,309,317 53,038,647 48,007,742
177,078,793
23,005,792
12,119,923
$ 212,204,508
155,847,012
16,360,097
16, 031,473
$ 188,238,582
44,759,489
430,444
11,158,081
$ 56,348,014
38,052,488
438,619
10,987,162
$ 49,478,269
16
221, 838, 282 193, 899, 500
23, 436, 236 16, 798, 716
23,278,004 27,018,635
$ 268,552,522 $ 237,716,851
CITY OF TUKWILA: 2010 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
The governmental unrestricted net assets comprise $12.1 million. The general fund unrestricted net
assets are available for functions such as public safety employee salaries and supplies, park and
road maintenance, and other general government services. The unrestricted net assets of business -
type activities, $11.1 million, may only be spent on activities related to one of the three City utilities
(water, sewer, and surface water) or to 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.
Restricted governmental fund net assets are $23.0 million and are subject to constitutional, legal or
external restrictions for purposes such as capital project construction and debt service.
The $7.0 million increase in current and other assets for governmental activities is comprised of a
$3.1 million increase in unrestricted and restricted cash, and a $4.6 million increase in investments.
The decrease of $385,000 in current and other assets for business -type activities is comprised of a
decrease of $4.4 million in cash offset by an increase of $4.0 million in investments.
Governmental capital assets increased by $23.2 million due to capital outlays of $11.5 million and
developer contributions of $15.1 million, offset by depreciation. Most of the developer contributions
were in the form of road improvements, signal installation and right -of -way from the completion of
Sound Transit's Link light rail.
The $4.8 million increase in long -term liabilities for governmental activities is due to issuance of
bonds for arterial street construction and the purchase of emergency response equipment, offset by
principal payments on existing debt.
Business -type activity capital assets increased by $6.1 million due to capital outlays of $1.9 million
and developer contributions of $5.9 million, offset by depreciation. Most of the developer
contributions were in the form of utility improvements from the completion of Sound Transit's Link
light rail.
Changes in Net Assets
The change in net assets represents the increase or decrease in City net assets resulting from its
various activities.
Following is a condensed version of the City's changes in net assets. The table shows the revenues,
expenses and related changes in net assets for both governmental -type and business -type activities:
17
CITY OF TUKWILA: 2010 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
CITY OF TUKWILA CHANGES IN NET ASSETS
Governmental Activities
Business -type Activities Total
2010 2009 2010 2009 2010 2009
Revenues:
Program revenues
Charges for services $ 5,076,107 $ 3,460,912 $ 14,117,185 $ 14,190,560 $ 19,193,292 $ 17,651,472
Operating grants and contributions 2,139,029 3,386,269 3,502 - 2,142,531 3,386,269
Capital grants and contributions 23,992,563 14,784,074 7,389,910 515,633 31,382,473 15,299,707
General revenues
Property taxes 13,363,096 11,901,072 - - 13,363,096 11,901,072
Sales taxes 14,669,328 14,588,297 329,527 327,999 14,998,855 14,916,296
Hotel /Motel taxes 458,092 489,806 - 458,092 489,806
Natural gas use tax 533,811 748,772 - 533,811 748,772
Utility taxes 5,600,683 5,577,583 - 5,600,683 5,577,583
Interfund utility taxes 1,497,782 1,813,277 - 1,497,782 1,813,277
Business taxes 2,707,792 3,196,178 - 2,707,792 3,196,178
Excise taxes 507,798 367,198 - - 507,798 367,198
State entitlements 1,951,936 2,233,445 - 1,951,936 2,233,445
Investment earnings 108,929 246,287 85,942 106,032 194,871 352,319
Miscellaneous - - 97,541 - 97,541 -
Gain /(loss) on sale of capital assets - 980,267 - (264,093) - 716,174
Total revenues 72,606,946 63,773,437 22,023,607 14,876,131 94,630,553 78,649,568
Expenses:
General government 7,052,717 6,689,659 - 7,052,717 6,689,659
Public safety 26,088,644 26,959,352 - 26,088,644 26,959,352
Physical environment 2,533,394 2,575,405 - - 2,533,394 2,575,405
Transportation 6,015,197 5,541,367 - - 6,015,197 5,541,367
Economic environment 4,579,338 4,637,531 - 4,579,338 4,637,531
Mental and physical health 4,539 4,332 - 4,539 4,332
Culture and recreation 4,756,676 4,914,256 - 4,756,676 4,914,256
Interest on long -term debt 1,061,419 753,904 - 1,061,419 753,904
Water /sewer - 9,343,368 9,293,434 9,343,368 9,293,434
Foster golf course - 1,935,014 2,050,172 1,935,014 2,050,172
Surface water - - 2,476,170 2,299,394 2,476,170 2,299,394
Total expenses 52,091,924 52,075,806 13,754,552 13,643,000 65,846,476 65,718,806
Increase in net assets before transfers 20,515,022 11,697,631 8,269,055 1,233,131 28,784,077 12,930,762
Transfers 1,399,310 1,601,200 (1,399,310) (1,601,200)
Change in net assets 21,914,332 13,298,831 6,869,745 (368,069) 28,784,077 12,930,762
Net assets - beginning of period 190,290,176 174,939,751 49,478,269 49,846,338 239,768,445 224,786,089
Net assets -end of period $ 212,204,508 $ 188,238,582 $ 56,348,014 $ 49,478,269 $ 268,552,522 $ 237,716,851
Governmental activities contributed $21.9 million to the total increase in City net assets. 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. Beginning net assets in 2010 above for
governmental activities includes an adjustment of $2.1 million for capital assets that were previously
expensed when the costs were incurred.
Revenues from governmental activities increased $8.8 million from 2009 activity. The components
and explanation of this increase follows.
• Property tax collections increased by $1.4 million, or 12 %. The increase is the result of
higher than expected amounts for the value of new construction, thereby increasing the
City's assessed valuation.
• Capital grants and contributions increased $9.2 million primarily due to developer
contributions from the completion of Sound Transit's Link light rail.
18
CITY OF TUKWILA: 2010 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
• Business taxes decreased by $488,000 due to an overall decline in gambling taxes and the
closure of one of the City's four social card rooms.
• Gain on sale of capital assets decreased by $980,000 due to very little sale of capital assets
in 2010 for governmental -type activities.
Governmental activity expenses increased by only $16,000. Public safety expenses decreased by
$871,000, or 3.2 %, general government expenses increased by $364,000, or 5.4 %, and interest
expense on long -term debt increased by $307,000, or 40.8 %. The minimal overall increase in
expenses is due to expenditure cuts, a hiring freeze and other cost containment measures taken by
the City Council and the Mayor in an effort to reduce any potential deficit related to a downturn in the
economy.
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.
Revenues by Source — Governmental Activities
Other revenue
Other taxes 3%
Utility taxes 6%
10%
Sales taxes
20%
Property taxes
18%
Charges for services
7%
Capital grants &
contributions
3%
19
Operating grants &
contributions
33%
CITY OF TUKWILA: 2010 CAFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
$27,000,000
$24,000,W0
$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
.a1
5a • \e ��P �. eev ��z c���
o�e� \�G �Qo ,�o `e6 ,\�o c`e
Cif' QJ .co , \e ms e 0a �Ge� �
c� a ` r
Ce� Qr�y GJ � cpK• rgoa
e
❑ Program revenues
• Expenses
Business -type net assets increased by $6.9 million during 2010. Key components of this increase
include:
• $6,874,277 increase in capital grants and contributions primarily due to developer
contributions from utility improvements related to completion of Sound Transit's Link light
rail.
• $1,399,310 net transfer out from the business -type activity funds.
• Income before capital contributions and transfers amounted to:
o Water /sewer fund: $ 393,108
o Foster golf course fund: (178,947)
o Surface water fund: 664,984
$ 879,145
20
CITY OF TUKWILA: 2010 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
The following chart shows the relative net asset balances for each business -type fund:
Business -Type Net Assets - By Fund
Fostergolf
course
10%
Water /sewer
45%
Surface water
45%
The majority of net assets 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 assets are not available
to support the ongoing expenses of the funds. The following chart contrasts the total net assets to
the spendable portion of net assets for each enterprise fund:
$30,000,000
$25,000,000
$20,000,000
$15,000,000 -
$10,000,000 -
$5,000,000
Comparison of Total Net Assets to Spendable Net Assets
Business -Type Funds
❑ Spendable net assets
•Total net assets
$0
Water /sewer
Surface water
21
Foster golf course
CITY OF TUKWILA: 2010 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
Financial Analysis of Governmental Funds
Foster golf course
❑ 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, 2010, the City's governmental funds had combined fund balances of
$28,762,832 an increase of $5,013,304 or 21.1%. This increase is related to:
• General fund
• Arterial street fund
• Land Acq., Rec & Park Development
• Other governmental funds
($1,632,391)
$5,232,635
$105,167
$1,307,893
Of the governmental funds' total fund balances, $28,744,932 is unreserved. Of this unreserved total,
$8,541,195 is earmarked for capital projects, $14,461,546 is in special revenue funds and is
earmarked for specific purposes, and $3,051 is in debt service funds dedicated for debt repayment.
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 2010, the general fund had a fund balance of $5,757,040, of which substantially all is
unreserved.
22
CITY OF TUKWILA: 2010 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Other funds that had significant fund balances include:
• $11,053,410 in the arterial street special revenue fund; used for various transportation
improvement projects.
• $4,773,512 in the land acquisition, recreation and park development fund; used for
acquisition, development and construction of park facilities.
• $2,058,647 in the facility replacement fund; used for the replacement of existing general
government facilities.
The following chart shows the relative fund balances for governmental funds:
Governmental Funds — Fund Balances
Special revenue
funds
12%
Capital project funds
13%
Land acq, rec &
park improvement
funds
17%
Debt service funds
0%
General fund
20%
Arterial street fund
38%
The $1,632,391 decrease in the general fund balance results from revenue of $40,804,019,
expenses of $44,642,741, transfers into the fund of $2,461,806 and transfers out of $255,475. In
comparison with 2009, revenue decreased by $1.6 million, expenditures decreased by $1.4 million,
transfers out decreased by $453,959 and transfers in decreased by $694,494.
23
CITY OF TUKWILA: 2010 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
The general fund revenue decrease of $1,584,403 came from the following sources:
$1,000,000
$500,000
$0
($500,000)
($1,000,000)
($1,500,000)
Taxes
General Fund Revenue Increases / (Decreases) - By Source
Chargesforse vices
$703,043
($1,089,205)
Licenses and perils
$335,367
Intergovernmental
($1,456,879)
Fines and forfeitures
($2,721)
Investment earn ings
($51,063)
Miscellaneous
($22,945)
The increase of $5,232,635 in the arterial street fund is due primarily to unspent bond proceeds
intended for the construction of an arterial street in the recently annexed area. Other street
improvement projects, such as Tukwila International Boulevard Phase 2 and 3, contributed to arterial
street expenditures.
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 interfund utility tax revenue $ 1,358,000
• Increase in intergovernmental revenue for COPS hiring grant 265,072
• Increase in property tax revenue 393,000
• Increase in business license revenue 32,000
• Increase in Arts Commission grant revenue 9,000
• Three percent overall budget reduction (1,505,162)
• Additional funding for Arts Commission purchases 9,000
• Additional funding for fuel purchases 262,435
• Funding for building abatement program 35,000
• Reduction in funding for retirement plan contributions (345,025)
• Reduction in funding for health insurance premium contributions (509,567)
• Additional funding for Howard Hanson Dam flood prevention 858,000
• Funding for COPS grant program expenses 553,557
• Additional funding for audit costs, software licensing and claims and judgments 393,000
24
CITY OF TUKWILA: 2010 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
• Additional funding for special matters in Legal Department 115,000
• Additional funding for public defender expenses 25,000
• Additional funding in Fire Department for hydrant rentals 6,960
• Additional funding in Fire Department for equipment maintenance and operations 85,000
• Additional funding in Parks Maintenance for surface water management fees 25,000
• Funding for Laserfiche Agenda Manager in Clerk's Office 10,500
Reasons for the significant variances in the general fund between the final budget and actual results
include:
• Sales tax revenue was $4,727,636 less than budgeted. This reflects the effect of the
recession experienced nation -wide beginning in 2008.
• Building permit revenue was $560,737 less than budgeted. The original budget for 2010 was
adopted at a time, in 2008, when permitting activity was high and expected to continue at
that level. Permitting activity decreased significantly throughout 2009 -2010 but showed
significant signs of recovery in the latter half of 2010.
• Streamlined sales tax mitigation of $1,239,127 was received in 2010. This revenue source
was not included when the 2009 -2010 biennial budget was adopted, and as such caused a
significant positive budget variance.
• The budget for investment income was not adjusted during the 2009 -2010 biennium to
reflect the current market rates of interest. The budget for 2010 was $505,000 but actual
earnings were $67,650, resulting in a significant negative variance.
• As a result of substantial efforts on the part of the City Council, the Mayor and City
Administration, all departments in the City were charged with reducing their overall level of
spending. This resulted in nearly all departments ending 2010 with a significant positive
variance between budgeted expenditures and actual expenditures. For instance, there was a
$979,557 positive variance for Public Safety, $592,906 positive variance for Physical
Environment, and $466,943 positive variance for Economic Environment. Overall
departmental expenditures in the General Fund were $3,089,350 less than the amended
budget.
The efforts of every department to save money where they could meant the City was able to absorb
a negative variance in budgeted revenue of $4,536,955 with a reduction in ending fund balance of
only $1,632,391.
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, 2010 totaled $256.2 million (net of accumulated depreciation), an increase of $29.3
million, or 12.9%, from 2009. This investment in capital assets includes land, buildings,
improvements, machinery and equipment, construction in progress, utility transmission /distribution
systems, roads, bridges, and other infrastructure.
Major capital asset changes during the year include:
• Developer contributions of over $21.1 million, the majority of which were from completion of
Sound Transit's Link light rail and related utility and infrastructure improvements.
• Tukwila International Boulevard Phase II project amounted to $2.7 million.
25
CITY OF TUKWILA: 2010 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
• Tukwila International Boulevard Phase III project amounted to $2.5 million.
• Southcenter Parkway and S 180th St arterial street construction amounted to $3.6 million.
A summary of the City's net assets follows:
SUMMARY OF CAPITAL ASSETS (NET OF DEPRECIATION)
Governmental Activities Business -type Activities
Total
As of 12/31/10 As of 12/31/09 As of 12/31/10 As of 12/31/09 As of 12/31/10 As of 12/31/09
Land $ 39,472,061 $ 39,352,086 $ 2,214,118 $ 1,907,416 $ 41,686,179 $ 41,259,502
Buildings 14,718,746 15,293,399 8,709,277 8,717,717 23,428,023 24,011,116
Other Improvements 4,983,563 4,674,630 45,634,422 40,349,296 50,617,985 45,023,925
Machinery and Equipment 6,175,182 6,550,878 809,984 931,147 6,985,166 7,482,026
Infrastructure 97,249,360 85,548,855 - 97,249,360 85,548,855
Intangible Assets 208,021 208,021
Construction in Progress 33,131,284 21,322,810 2,893,683 2,267,865 36,024,967 23,590,675
Total $195,938,217 $172,742,658 $ 60,261,484 $ 54,173,441 $256,199,701 $226,916,098
More detailed information on capital assets is provided in note 7.
Long -term Debt
At the end of the current fiscal year, the City had total bonded debt outstanding of $26,455,000. Of
this amount, $22,060,000 is general obligation bonds, and $4,395,000 is revenue bonds for the
water /sewer and surface water utilities. The City currently maintains a rating of Aa3 with Moody's
and AA- with Fitch's Investor Service for its general obligation debt.
The following schedule summarizes the City's bonded debt:
SUMMARY OF BONDED DEBT
Governmental Activities Business -type Activities Total
As of 12/31/10 As of 12/31/09 As of 12/31/10 As of 12/31/09 As of 12/31/10 As of 12/31/09
General obligation bonds
Revenue bonds
$ 18,821,175 $ 14,301,203 $ 3,238,825 $ 3,423,797 $ 22,060,000 $ 17,725,000
4,395,000 4,790,000 4,395,000 4,790,000
$ 18,821,175 $ 14,301,203 $ 7,633,825 $ 8,213,797 $ 26,455,000 $ 22,515,000
Below is a summary of additional, non - bonded long -term debt of the City:
Other Long -term Debt
Public Works Trust Fund loans
Employee leave benefits
Due to other governments
Capital lease payable
$ 7,788,843
3,115, 607
7,942,800
40,184
$ 18,887,434
More detailed information on long -term debt is provided in note 11.
26
CITY OF TUKWILA: 2010 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Economic Factors
The outlook for 2011 is positive despite the recession that the region and nation are currently
experiencing. 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 positive impacts on the
future of Tukwila's economy:
• Tukwila South -- In 2009, the City executed development agreements and completed
annexation of 259 acres as part of the 500 acre Tukwila South development. The annexation
added $29.7 million in assessed value to the City of Tukwila and the entire project could add
up to 10 million square feet of new development valued at up to $3 billion. Construction on a
major arterial street improvement project began in 2010. Total arterial street construction
costs are projected to be approximately $22.3 million.
• Sound Transit Light Rail Station -- In 2009, Sound Transit opened a newly constructed light
rail station in Tukwila valued at over $30 million. As a public project, the facility is exempt
from property taxes; however, it may encourage new development and redevelopment in the
surrounding neighborhood.
• Tukwila Village - In 2010 the City Council took action in support of the King County Library
System constructing a 10,000 square foot new library building as part of the City's proposed
six acre Tukwila Village development. It is anticipated that in 2011 the City will reach an
agreement with the Library System or a developer to design and construct the building in
2012 and 2013.
• Bow Lake Transfer Station -- King County is constructing a new facility to replace the
existing Bow Lake Waste and Recycling Transfer Station. The $25 million project started
construction in 2009 and is scheduled to be completed in 2012. This project generates
development fees but as a public project it will not increase property taxes for the City of
Tukwila.
• Major Tenant Improvements — The largest new tenant improvements were completed for
Ashley Furniture retail store, Seafood City Market, Internap Network Services build -out, and
K & G Fashion Superstore totaling over $6 million.
• Largest Renovations — The largest renovations were completed for the Courtyard by Marriott
lobby, retaining walls for the Bow Lake Transfer Station, and renovations at the Jorgensen
Forge facility totaling over $2.7 million
• Largest Equipment Installations — The largest equipment installations completed were for
generators and computer communication equipment totaling approximately $5.6 million.
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.
27
CITY OF TUKWILA: 2010 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
28
CITY OF TUKWILA: 2010 CAFR BASIC FINANCIAL STATEMENTS
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The City presents two government -wide financial statements:
The Statement of Net Assets provides information on all City assets and liabilities,
with the difference between the two reported as net assets.
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.
29
CITY OF TUKWILA: 2010 CAFR BASIC FINANCIAL STATEMENTS
30
CITY OF TUKWILA: 2010 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET ASSETS
DECEMBER 31, 2010
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES
TOTAL
ASSETS:
CASH AND CASH EQUIVALENTS (Note 3) $ 17,596,286 $ 4,062,883 $ 21,659,169
INVESTMENTS (Note 3) 12,617,547 5,286,243 17,903,790
RECEIVABLES:
TAXES (Note 4) 3,901,592 69,891 3,971,483
CUSTOMER ACCOUNTS 674,174 930,470 1,604,644
INTEREST ON INVESTMENTS 7,778 7,778
DUE FROM OTHER GOVERNMENTAL UNITS (Note 4) 2,028,094 109,502 2,137,596
INVENTORY OF MATERIALS AND SUPPLIES 570,236 593,140 1,163,376
NET PENSION ASSET (Note 9) 284,998 - 284,998
INVESTMENT IN JOINT VENTURES (Note 8) 9,984,395 9,984,395
RESTRICTED ASSETS:
CASH AND CASH EQUIVALENTS (Note 3) 5,486,807 490,678 5,977,485
NOTES RECEIVABLE - 495,278 495,278
DEFERRED CHARGES 13,199 127,957 141,156
NON - DEPRECIABLE CAPITAL ASSETS (Note 7) 72,603,345 5,107,801 77,711,146
DEPRECIABLE CAPITAL ASSETS (NET OF ACCUMULATED
DEPRECIATION): (Note 7) 123,334,872 55,153,682 178,488,554
PLANT ACQUISITION ADJUSTMENT (NET OF ACCUMULATED
AMORTIZATION) 60,321 60,321
TOTAL ASSETS 249,103,323 72,487,846 321,591,169
LIABILITIES:
ACCOUNTS PAYABLE 496,230 96,613 592,843
ACCRUED WAGES AND BENEFITS PAYABLE 1,311,956 323,390 1,635,346
DUE TO OTHER GOVERNMENTAL UNITS 7,942,800 609,186 8,551,986
ACCRUED INTEREST PAYABLE 404,654 85,573 490,227
REVENUES COLLECTED IN ADVANCE 347,481 - 347,481
OTHER CURRENT LIABILITIES 1,424,351 - 1,424,351
PAYABLE FROM RESTRICTED ASSETS:
REVENUE BOND PRINCIPAL (Note 11) 607,226 607,226
DEPOSITS 500 59,609 60,109
UNEARNED REVENUE 416,009 22,239 438,248
BONDS AND OTHER DEBT PAYABLE:
DUE WITHIN ONE YEAR (Note 11) 4,164,109 224,908 4,389,017
DUE IN MORE THAN ONE YEAR (Note 11) 17,575,783 14,111,088 31,686,871
UNFUNDED OTHER POST EMPLOYMENT BENEFITS (Note 10) 2,814,942 - 2,814,942
TOTAL LIABILITIES 36,898,815 16,139,832 53,038,647
NET ASSETS:
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT 177,078,793 44,759,489 221,838,282
RESTRICTED NET ASSETS:
CAPITAL PROJECTS 8,541,195 - 8,541,195
SPECIAL REVENUE FUND PROJECTS 14,461,546 - 14,461,546
DEBT SERVICE 3,051 430,444 433,495
UNRESTRICTED NET ASSETS 12,119,923 11,158,081 23,278,004
TOTAL NET ASSETS
$ 212,204,508 $ 56,348,014 $ 268,552,522
The notes to the financial statements are an integral part of this statement.
31
CITY OF TUKWILA: 2010 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2010
Page 1 of 2
PROGRAM REVENUES
OPERATING CAPITAL
CHARGES GRANTS AND GRANTS AND
EXPENSES FOR SERVICES CONTRIBUTIONS CONTRIBUTIONS
FUNCTIONS / PROGRAMS:
PRIMARY GOV ERNM ENT
GOVERNMENTAL ACTIVITIES:
GENERAL GOVERNMENT $ 7,052,717 $ 1,080,801 $ 182,338 $
PUBLIC SAFETY 26,088,644 819,043 1,022,001 54,756
TRANSPORTATION 6,015,197 571,110 103,111 23,899,979
PHYSICAL ENVIRONMENT 2,533,394 6,200 28,751
CULTURE AND RECREATION 4,756,676 811,679 21,496 37,828
ECONOMIC ENVIRONMENT 4,579,338 1,787,274 781,332
MENTAL AND PHYSICAL HEALTH 4,539 -
INTEREST ON LONG -TERM DEBT 1,061,419
52,091,924 5,076,107 2,139,029 23,992,563
BUSINESS -TYPE ACTIVITIES:
WATER/SEWER 9,343,368 9,665,095 635 1,336,689
SURFACE WATER 2,476,170 3,029,630 6,053,221
FOSTER GOLF COURSE 1,935,014 1,425,327
13,754,552 14,120,052 635 7,389,910
TOTAL PRIMARY GOVERNMENT $ 65,846,476 $ 19,196,159 $ 2,139,664 $ 31,382,473
GENERAL REVENUES:
TAXES
PROPERTY TAXES
RETAIL SALES AND USE TAXES
NATURAL GAS USE TAX
HOTEL /MOTEL TAXES
UTILITY TAXES
INTERFUND UTILITY TAXES
BUSINESS TAXES
EXCISE TAXES
STATE ENTITLEMENTS
UNRESTRICTED INVESTMENT EARNINGS
MISCELLANEOUS
TRANSFERS (Note 5)
TOTAL GENERAL REVENUES
CHANGE IN NET ASSETS
NET ASSETS - BEGINNING
NET ASSETS - ENDING
The notes to the financial statements are an integral part of this statement.
32
CITY OF TUKWILA: 2010 CAFR BASIC FINANCIAL STATEMENTS
Page 2 of 2
NET (EXPENSE) REVENUE AND
CHANGES IN NET ASSETS
GOVERNMENTAL BUSINESS -TYPE
ACTIV ITIES ACTIVITIES
TOTAL
$ (5,789,578) $
(24,192,844)
18,559,003
(2,498,443)
(3,885,673)
(2,010,732)
(4,539)
(1,061,419)
(20,884,225)
$ (5,789,578)
(24,192,844)
18,559,003
(2,498,443)
(3,885,673)
(2,010,732)
(4,539)
(1,061,419)
(20,884,225)
1
1,659,051
6,606,681
(509,687)
1,659,051
6,606,681
(509,687)
7,756,045 7,756,045
$ (20,884,225) $ 7,756,045 $ (13,128,180)
$ 13,363,096 $ - $ 13,363,096
14,669,328 329,527 14,998,855
533,811 - 533,811
458,092 - 458,092
5,600,683 5,600,683
1,497,782 - 1,497,782
2,707,792 - 2,707,792
507,798 507,798
1,951,936 - 1,951,936
108,929 85,942 194,871
97,541 97,541
1,399,310 (1,399,310)
42,798,557 (886,300) 41,912,257
21,914,332 6,869,745 28,784,077
190,290,176 49,478,269 239,768,445
$ 212,204,508 $ 56,348,014 $ 268,552,522
The notes to the financial statements are an integral part of this statement.
33
CITY OF TUKWILA: 2010 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.
34
CITY OF TUKWILA: 2010 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2010
MIL
LANDACQ. OTHER TOTAL
GENERAL ARTERIAL REC & PARK GOVERNMENTAL GOVERNMENTAL
FUND STREET DEVELOPMENT FUNDS FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 2,375,636 $ 74,290 $ 2,728,193 $ 5,406,527 $ 10,584,646
INVESTNENTS 1,121,115 5,410,868 2,043,433 393,284 8,968,700
RECEIVABLES:
TAXES 3,345,902 460,076 48,915 46,697 3,901,590
CUSTOMER ACCOUNTS 642,061 - - - 642,061
INTEREST ON INVESTMENTS - 2,342 - - 2,342
DUE FROM OTHER GOVERNMENTAL UNITS 516,506 1,117,326 135,553 258,708 2,028,093
DEFERRED CHARGES 13,199 - - - 13,199
RESTRICTED ASSETS:
CASH AND CASH EQUNALENTS 4,335,157 - 1,151,650 5,486,807
Mr Tartu_ ASSE1,1 $ 8,014,419 $ 11,400,059 $ 4,956,094 $ 7,256,866 $ 31,627,438
LIABILITIES AND FUND BALANCES:
ACCOUNTS PAYABLE $ 149,281 $ 343,565 $ 3,108 $ 277 $ 496,231
ACCRUED WAGES & BENEFITS 1,273,874 3,084 223 18,628 1,295,809
REVENUE COLLECTED IN ADVANCE 371,207 - - 371,207
OTHER CURRENT LIABILfTIES 190,906 500 - 191,406
DEFERRED REVENUE 272,111 178,751 59,091 509,953
TOTAL LIABILfTIES 2,257,379 346,649 182,582 77,996 2,864,606
FUND BALANCES:
RESERVED FOR
IMPREST FUNDS 17,900 - - 17,900
UNRESERVED, REPORTED IN:
GENERAL FUND 5,739,140 - 5,739,140
SPECIAL REVENUE FUNDS - 11,053,410 - 3,408,136 14,461,546
CAPITAL PROJECT FUNDS - - 4,773,512 3,767,683 8,541,195
DEBT SERVICE FUNDS 3,051 3,051
TOTAL FUND BALANCES 5,757,040 11,053,410 4,773,512 7,178,870 28,762,832
TOTAL LIABILITIES AND FUND BALANCES $ 8,014,419 $ 11,400,059 $ 4,956,094 $ 7,256,866 $ 31,627,438
Total governmental fund balances as reported on this statement $ 28,762,832
Amounts reported for governmental activities in the statement of net assets are different because:
The purchases method is used in Governmental Funds to account for Materials and Supplies - Inventory
amount outstanding.
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds.
Non - Depreciable Assets $ 72,603,345
Depreciable Assets (Net) 123,334,872
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.
The Qty has an equity interest in tw o 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.
Deferred revenue reported for property taxes that are current and prior year tax levies that w ere not collected
and available to pay current year liabilities applicable to beginning net assets and current year revenues.
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 (4,164,109.00)
Long Term Liabilities Due in More Than One Year (17,575,783)
Due to Other Governmental Units (7,942,800)
Unfunded Other Post Employment Benefits (2,814,942)
Accrued Interest Payable (404,654)
Internal service funds are used by management to charge the cost of certain activities, such as 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 assets. Capital assets of $2,750,092 are included in the capital asset adjustment above.
Net assets of government activities as reported on the statement of net assets
The notes to the financial statements are an integral part of this statement.
35
556,701
195,938,217
284,998
9,984,395
117,671
(32,902,288)
9,461, 982
$ 212,204,508
LANDACO. OTHER TOTAL
REC & PARK GOVERNMENTAL GOVERNMENTAL
DEVELOPMENT FUNDS FUNDS
CITY OF TUKWILA: 2010 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, 2010
GENERAL
FUND
ARTERIAL
STREET
REVENUES:
TAXES
LICENSES AND PERMITS
INTERGOVERNMENTAL
CHARGES FOR SERVICES
FINES AND FORFEITURES
INVESTMENT EARNINGS
MISCELLANEOUS
TOTAL REVENUES
$ 31,738,736
1,618,830
4,475,936
2,115,614
227,552
67,650
464,817
40,709,135
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT
PUBLIC SAFETY
PHYSICAL ENVIRONMENT
TRANSPORTATION
ECONOMIC ENVIRONMENT
NFNTAL AND PHYSICAL HEALTH
CULTURE AND RECREATION
DEBT SERV ICE
PRINCIPAL
INTEREST AND OTHER COSTS
CAPITAL OUTLAY
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
8,343,154
24,668,456
1,601,680
2,306,503
3,239,030
4,539
4,148,875
330,504
$ 2,313,043 $ 340,941 $ 2,875,198 $ 37,267,918
1,618,830
8,829,937 1,219,999 14,525,872
108,177 142,383 2,366,174
- - 162,527 390,079
10,357 37,828 28,423 144,258
404,160 5,422 16,908 891,307
11,557,497 492,368 I 4,445,438 57,204,438
25,675
56,933
10,024,815
14,628
312,127
44,163 8,387,317
7,914 24,676,370
122,467 1,724,147
2,332,178
1,302,815 4,541,845
4,539
4,163,503
1,555,028 1,555,028
792,215 849,148
846,530 11,513,976
44,642,741
10,107,423
326,755
4,671,132 59,748,051
(3,933,606)
1,450,074
165,613
(225,694) (2,543,613)
OTHER HNANCING SOURCES (USES):
PROCEEDS FROM CAPITAL LEASE
SALES OF CAPITAL ASSETS
TRANSFERS IN (Note 5)
TRANSFERS OUT (Note 5)
GENERAL OBLIGATION BONDS ISSUED
PREMIUM ON GENERAL OBLIGATION DEBT
PAYMENT TO REFUNDED BOND ESCROW AGENT
TOTAL OTHER FINANCING SOURCES AND USES
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
94,576 8,403
308
2,461,806
(255,475) (60,446) (65,000)
2,629,297
29,887
(1,069,000)
2,301,215 (60,446) 1,533,587 7,556,917
(1,632,391) 5,232,635 105,167 1,307,893 5,013,304
7,389,431 5,820,775 4,668,345 5,870,977 23,749,528
$ 5,757,040 $ 11,053,410 $ 4,773,512 $ 7,178,870 $ 28,762,832
7,530
27,000
(639,936)
4,305,703
82,264
110,509
27,308
2,461,806
(1,020,857)
6,935,000
112,151
(1,069,000)
The notes to the financial statements are an integral part of this statement.
36
CITY OF TUKWILA: 2010 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, 2010
Net change in fund balances per the Statement of Revenues, Expenditures, and Changes in Fund Balances $ 5,013,304
Amount reported as change in net assets 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
Developer Contributions
Depreciation Expense
Excess of Capital Outlayand Donations Over Depreciation Expense
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade -ins, and
donations) is to decrease net assets.
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 assets. In the current year, these amounts
consist of:
Bond Principal Retirement
Proceeds from Capital Lease
Amortization Expense
Issuance of long -term debt is reported as revenue in governmental funds, but the issuance
increases long -term liabilities in the statement of net assets.
Proceeds from Issuance of Bonds
Premium from bond issuance
Issuance of long -term debt is reported as revenue in governmental funds, but the issuance
increases long -term liabilities in the statement of net assets.
Proceeds from Issuance of Bonds for Refunding
Payment to Refunded Bond Escrow Agent
Internal service funds are used by management to charge the costs of certain activities
to individual funds. The net revenue (expense) of certain internal service funds is reported with
governmental activities.
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. Deferred revenues
decreased bythis amount this year.
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:
Increase in Accrued Interest
Increase in Compensated Absences
Increase in Unfunded Other Post Employment Benefits
Amortization of Bond Discount and Deferred Charges
Amortization of Bond Premiums
Total Additional Expense (Increase) Decrease
$ 11,513,976
15,253,811
(5,176,584)
(110,509)
70,325
21,591,203
(51,008)
26,234
54,756
1,555,028
(40,184)
(5,870,000)
(112,151)
(5,982,151)
(1,065,000)
1,069,000
(369,769)
(258,748)
(996,122)
77,617
79,881
4,000
1,116,347
93,944
(1,467,141)
Change in net assets on the Statement of Activities
The notes to the financial statements are an integral part of this statement.
37
$ 21,914,332
CITY OF TUKWILA: 2010 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2010
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES:
TAXES $ 34,412,917 $ 36,163,917 $ 31,738,736 $ (4,425,181)
LICENSES AND PERMITS 2,384,000 2,416,000 1,618,830 (797,170)
INTERGOVERNMENTAL 2,722,000 2,996,072 4,475,936 1,479,864
CHARGES FOR SERVICES 2,318,000 2,318,000 2,115,614 (202,386)
FINES AND FORFEITURES 241,000 241,000 227,552 (13,448)
INVESTMENT EARNINGS 505,000 505,000 67,650 (437,350)
MISCELLANEOUS 490,000 490,000 464,817 (25,183)
TOTAL REVENUES 43,072,917 45,129,989 40,709,135 (4,420,854)
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 8,627,041 8,714,911 8,343,154 371,757
PUBLIC SAFETY 25,347,596 25,745,393 24,668,456 1,076,937
PHYSICAL ENVIRONMENT 2,216,127 2,194,586 1,601,680 592,906
TRANSPORTATION 2,728,084 2,550,563 2,306,503 244,060
ECONOMIC ENVIRONMENT 3,850,865 3,705,973 3,239,030 466,943
MENTAL & PHYSICAL HEALTH 4,000 4,000 4,539 (539)
CULTURE AND RECREATION 4,717,775 4,530,224 4,148,875 381,349
CAPITAL OUTLAY 408,821 383,821 330,504 53,317
TOTAL EXPENDITURES
47,900,309 47,829,471
44,642,741 3,186,730
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(4,827,392) (2,699,482)
(3,933,606) (1,234,124)
OTHER FINANCING SOURCES (USES):
SALES OF CAPITAL ASSETS 5,000 70,000 308 (69,692)
PROCEEDS FROM CAPITAL LEASE - 94,576 94,576
TRANSFERS IN (Note 5) 2,462,000 3,091,500 2,461,806 (629,694)
TRANSFERS OUT (Note 5) (130,000) (305,000) (255,475) 49,525
TOTAL OTHER FINANCING SOURCES AND USES
2,337,000 2,856,500 2,301,215 (555,285)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
(2,490,392) 157,018 (1,632,391) (1,789,409)
8,709,916 8,709,916 7,389,431 (1,320,485)
6,219,524 $
FUND BALANCES - ENDING $
8,866,934 $
5,757,040 $ (3,109,894)
The notes to the financial statements are an integral part of this statement.
38
CITY OF TUKWILA: 2010 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
ARTERIAL STREET FUND
FOR THE YEAR ENDED DECEMBER 31, 2010
VARIANCE WITH
ORIGINAL FINAL FINIAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAPBASIS) (GAAPBASIS) RESULTS (NEGATIVE)
REVENUES:
TAXES $ 3,390,000 $ 3,390,000 $ 2,313,043 $ (1,076,957)
INTERGOVERNMENTAL 29,820,000 29,820,000 8,829,937 (20,990,063)
INVESTMENT EARNINGS 300,000 300,000 10,357 (289,643)
MISCELLANEOUS 3,138,000 3,138,000 404,160 (2,733,840)
TOTAL REVENUES 36,648,000 36,648,000 11,557,497 (25,090,503)
EXPENDITURES:
CURRENT:
TRANSPORTATION - - 25,675 (25,675)
DEBT SERVICE:
INTEREST AND OTHER COSTS - 56,933 (56,933)
CAPITAL OUTLAY 62,111,021 66,466,951 10,024,815 56,442,136
TOTAL EXPENDITURES
62,111, 021 66,466, 951
10,107,423 56,359,528
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(25,463,021) (29,818,951) 1,450,074 31,269,025
OTHER FINANCING SOURCES (USES):
PROCEEDS FROM CAPITAL LEASE - - 7,530 7,530
SALE OF CAPITAL ASSETS - 27,000 27,000
TRANSFERS OUT (Note 5) (1,255,260) (639,936) (639,936) -
PREMIUM ON GENERAL OBLIGATION BONDS ISSUED - - 82,264 82,264
GENERAL OBLIGATION BONDS ISSUED 20,158,000 24,513,930 4,305,703 (20,208,227)
TOTAL OTHER FINANCING SOURCES AND USES 18,902,740 23,873,994 3,782,561 (20,091,433)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
(6,560,281) (5,944,957) 5,232,635 11,177,592
7,996,800 8,636,736 5,820,775 (2,815,961)
FUND BALANCES - ENDING $ 1,436,519 $ 2,691,779 $ 11,053,410 $ 8,361,631
The notes to the financial statements are an integral part of this statement.
39
CITY OF TUKWILA: 2010 CAFR
BASIC FINANCIAL STATEMENTS
40
CITY OF TUKWILA: 2010 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 three major enterprise funds.
Water /Sewer Utility Fund
This fund accounts for all maintenance, construction, and debt service requirements
associated with the water and 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
CITY OF TUKWILA: 2010 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
DECEMBER 31, 2010
GOVERNMENTAL
FOSTER SURFACE TOTAL ACTV[TIES
WATER/SEWER GOLF WATER ENTERPRISE INTERNAL
UTILITY COURSE UTILITY FUNDS SERVICE FUNDS
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 2,929,031 $ 8,204 $ 1,125,648 $ 4,062,883 $ 7,011,643
INVESTMENTS 4,175,164 1,111,079 5,286,243 3,648,848
RECEIVABLES:
TAXES 69,891 - 69,891
CUSTOMER ACCOUNTS 779,000 9,519 141,951 930,470 32,113
INTEREST ON INVESTMENTS - - 5,435
DUE FROM OTHER GOVERNMENTAL UNITS 109,502 - 109,502 -
INVENTORYOFMATERIALSANDSUPPLIES 274,160 270,271 48,709 593,140 13,535
CURRENT ASSETS RESTRICTED:
CASH AND CASH EQUVALan 10,040 50,194 60,234
TOTAL CURRENT ASSETS 8,276,897 408,079 2,427,387 11,112,363 10,711,574
NONCURRENT ASSETS:
RESTRICTED CASH, BOND RESERVES 393,547 36,897 430,444
NOTES RECEIVABLE 495,278 - 495,278
DEFERRED CHARGES 56,390 63,877 7,690 127,957
CAPITAL ASSETS:
LAND 156,872 1,609,575 447,671 2,214,118
BUILDINGS AND EQUIPMENT 3,606,095 6,627,496 1,165,128 11,398,719
OTHER IMFROVEMENTS 31,046,718 3,492,548 35,295,866 69,835,132
MACHINERY AND EQUIPMENT 2,133,091 207,833 50,706 2,391,630 9,216,522
CONSTRUCTION IN PROGRESS 1,710,710 - 1,182,973 2,893,683
LESS: ACCUMULATED DEPRECIATION (14,036,379) (3,620,393) (10,815,027) (28,471,799) (6,466,430)
TOTAL CAPITAL ASSETS (NET OF A /D) 24,617,107 8,317,059 27,327,317 60,261,483 2,750,092
PLANT ACQUISITION ADJUSTMENT (NET OF ACCUMULATED
AMORTIZATION) 60,321 - 60,321
TOTAL NONCURRENT ASSETS 25,622,643 8,380,936 27,371,904 61,375,483 2,750,092
TOTAL ASSETS 33,899,540 8,789,015 29,799,291 72,487,846 13,461,666
LIABILITIES:
CURRENT LIABILITIES:
ACCOUNTS PAYABLE 58,782 1,646 36,185 96,613 7,498
ACCRUED WAGES AND BENEFITS 125,362 109,324 88,704 323,390 16,147
DUE TO OTHER GOVERNMENTAL UNITS 287,341 - 321,845 609,186
ACCRUED INTEREST PAYABLE 63,014 11,719 10,840 85,573
OTHER CURRENT LIABILITIES - - 1,225,947
UNEARNED REVENUE 13,700 8,539 22,239
REVENUE BOND PRINCIPAL 400,000 192,226 15,000 607,226
DEPOSITS 9,040 50,569 - 59,609
TOTAL CURRENT LIABILRIES 957,239 365,484 481,113 1,803,836 1,249,592
NONCURRENT LIABILITIES:
REVENUE BONDS PAYABLE (NET OF UNAMORTIZED PREMIUMS) 3,716,666 3,070,435 318,824 7,105,925
COMPENSATED ABSENCES 31,729 18,685 50,414
OTHER LONG- TERM LIABILITIES 3,692,064 - 3,487,593 7,179,657
TOTAL NONCURRENT LIABILITIES 7,440,459 3,089,120 3,806,417 14,335,996
TOTAL LIABILITIES 8,397,698 3,454,604 4,287,530 16,139,832 1,249,592
NET ASSETS:
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT
RESTRICTED FOR
DEBT SERVICE
UNRESTRICTED
16,521,036 5,054,398 23,184,055 44,759,489 2,750,092
393,547 36,897 430,444
8,587,259 280,013 2,290,809 11,158,081 9,461,982
TOTAL NET ASSETS
$ 25,501,842 $ 5,334,411 $ 25,511,761 $ 56,348,014 $ 12,212,074
The notes to the financial statements are an integral part of this statement.
42
CITY OF TUKWILA: 2010 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2010
GOVERNMENTAL
FOSTER SURFACE TOTAL ACTIVITIES
WATER/SEWER GOLF WATER ENTERPRISE INTERNAL
UTILITY COURSE UTILITY FUNDS SERVICE FUNDS
OPERATING REVENUES:
CHARGES FOR SERVICES $ 9,665,095 $ 1,422,460 $ 3,029,631 $ 14,117,186 $ 7,600,653
OTHER OPERATING REVENUE 635 2,868 - 3,503 1,066
TOTAL OPERATING REVENUES 9,665,730 1,425,328 3,029,631 14,120,689 7,601,719
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE 5,613,836
ADMINISTRATIVE AND GENERAL 1,077,490
TAXES 1,384,993
DEPRECIATION AND AMORTIZATION 911,429
1,464,787
6,369
313,035
376,964
928,530
417,111
607,576
7,455,587 5,678,486
2,006,020
1,808,473
1,832,040 774,232
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
8,987,748 1,784,191 2,330,181 13,102,120 6,452,718
677,982 (358,863) 699,450 1,018,569 1,149,001
NON - OPERATING REVENUE (EXPENSE):
TAXES
INVESTMENT EARNINGS
INTEREST EXPENSE
BAD DEBT EXPENSE
SALE OF CAPITAL ASSETS
AMORTIZATION OF BOND PREMIUM
AMORTIZATION OF BOND DISCOUNT
BOND ISSUE COSTS
OTHER NON - OPERATING REVENUE
TOTAL NON - OPERATING REVENUE (EXPENSE)
70,747
(236,997)
(13,522)
(106,263)
10,797
(6,093)
(3,543)
(284,874)
329,527 - 329,527
1,213 13,982 85,942 (13,903)
(147,724) (35,220) (419,941)
(13,522)
(110,640) (216,903) 22,891
1,845 353 12,995
(6,093)
(4,945) (483) (8,971)
97,542 97,542
179,916 (34,466) (139,424) 8,988
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 393,108
(178,947) 664,984 879,145 1,157,989
CAPITAL CONTRIBUTIONS 1,336,689 - 6,053,221 7,389,910
TRANSFERS IN (Note 5) 97,380 97,380 158,095
TRANSFERS OUT (Note 5) (1,107,735) (13,140) (375,815) (1,496,690) (199,734)
CHANGE IN NET ASSETS ilu 719,442 (192,087) 6,342,390 6,869,745 1,116,350
TOTAL NET ASSETS BEGINNING OF YEAR 24,782,400
5,526,498 19,169,371 49,478,269
11, 095,724
TOTAL NET ASSETS END OF YEAR $ 25,501,842 $ 5,334,411 $ 25,511,761 $ 56,348,014 $ 12,212,074
The notes to the financial statements are an integral part of this statement.
43
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010
Page 1 of 2
CITY OF TUKWILA: 2010 CAFR BASIC FINANCIAL STATEMENTS
1
GOVERNMENT
FOSTER SURFACE TOTAL ACTIVITIES
WATER /SEWER GOLF WATER ENTERPRISE INTERNAL
UTILITY COURSE UTILITY FUNDS SERVICE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM USERS $ 9,578,147 $ 1,417,302 $ 3,097,611 $ 14,093,060 $ 7,568,541
CASH PAID TO SUPPLIERS (5,566,962) (305,879) (358,279) (6,231,120) (5,135,020)
CASH PAID FOR TAXES (1,384,993) (60,562) (417,111) (1,862,666)
CASH PAID FOR INVENTORY (122,448) (122,448) (62,292)
CASH PAID TO EMPLOYEES (1,041,436) (993,845) (675,649) (2,710,929) (485,049)
OTHER CASH RECEIVED (PAID) - 4,126 - 4,126 (30,641)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 1,584,757 (61,306) 1,646,572 3,170,023 1,855,539
CASH FLOWS FROM NONCAPITAL RNANCINGACTIVITIES:
OPERATING GRANT RECEIVED
SALES AND LEASEHOLD EXCISE TAXES RECEIVED -
TRANSFERS IN 97,380
TRANSFERS OUT (1,107,735)
97,541
329,527
(13,140) (375,815)
97,541 -
329,527 -
97,380 158,095
(1,496,690) (199,734)
NET CASH PROVIDED (USED) BY NON -
CAPITAL FINANCING ACTIVITIES
(1,010,355) 316,387 (278,274) (972,242) (41,639)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM SALE OF EQUIPMENT - - - -
PURCHASE OF CAPITAL ASSETS (1,459,284) (39,229) (451,389) (1,949,902)
CONTRIBUTED CAPITAL 1,160,489 - 1,160,489
PREMIUM & BOND ISSUANCE COSTS 4,704 1,955 353 7,012
PRINCIPAL PAYMENT ON DEBT (672,645) (186,818) (336,598) (1,196,061)
INTEREST PAYMENT ON DEBT (244,255) (156,465) (364,434) (765,154)
22,891
(378,003)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES (1,210,991)
(380,557) (1,152,068)
(2,743,615) (355,112)
CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF INVESTMENTS 502,324 - 502,324 2,403,367
PURCHASE OF INVESTMENTS (3,450,000) (1,000,000) (4,450,000) (5,042,031)
INTEREST RECEIVED 58,053 1,049 2,413 61,515 (16,445)
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES (2,889,623) 1,049 (997,587) (3,886,161) (2,655,109)
NET INCREASE (DECREASE) IN 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
RESTRICTED CASH -BOND PAYMENTS
RESTRICTED CASH- CUSTOMER DEPOSITS
TOTAL CASH.
(3,526,212) (124,427) (781,357) (4,431,996) (1,196,321)
6,858,830 182,826 1,943,902 8,985,558 8,207,964
$ 3,332,618 $ 58,399 $ 1,162,545 $ 4,553,562 $ 7,011,643
$ 2,929,031 $ 8,205 $ 1,125,648 $ 4,062,884 $ 7,011,643
393,547 36,897 430,444
10,040 50,194 - 60,234
$ 3,332,618 $ 58,399 $ 1,162,545 $ 4,553,562 $ 7,011,643
The notes to the financial statements are an integral part of this statement.
44
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 1,584,757 $ (61,306) $ 1,646,572 $ 3,170,023 $ 1,855,539
CITY OF TUKWILA: 2010 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010
Page 2 of 2
GOVERNMENT
FOSTER SURFACE TOTAL ACTIVITIES
WATER/SEWER GOLF WATER ENTERPRISE INTERNAL
UTILITY COURSE UTILITY FUNDS SERVICE FUNDS
RECONCILIATION OF NET OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
OPERATING INCOME (LOSS)
677,982 $ (358,863) $ 699,450 $ 1,018,569 $ 1,149,001
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 911,429 313,035 607,576 1,832,040 774,232
ASSET (INCREASES) DECREASES :
ACCOUNTS RECEIVABLE 29,868 (420) (28,382) 1,066 -
MISCELLANEOUS A/R- REVENUE (102,648) (4,731) 87,823 (19,556) (32,113)
INVENTORY - (28,097) (2,379) (30,476) (4,504)
LIABILITY INCREASES (DECREASES) :
ACCOUNTS & VOUCHERS PAYABLE 75,350 (14,879) 21,064 81,535 (31,077)
OTHER LIABILITIES PAYABLE (43,263) 7,975 8,539 (26,749)
DEPOSITS PAYABLE 6,040 1,252 - 7,292 -
WAGES & BENEFITS PAYABLE 23,583 9,159 255,228 287,970 -
COMPENSATED ABSENCES PAYABLE 6,416 14,263 (2,347) 18,332
TOTAL ADJUSTMENTS 906,775 297,557 947,122 2,151,454 706,538
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
CAPITAL ASSETS ACQUIRED BY CONTRIBUTED CAPITAL $
INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT
176,200 $
- $ 6,053,221 $ 6,229,421 $
15,620 15,620 (80,379)
TOTAL NON CASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES $ 191,820 $ - $ 6,053,221 $ 6,245,041 $ (80,379)
The notes to the financial statements are an integral part of this statement.
45
CITY OF TUKWILA: 2010 CAFR
BASIC FINANCIAL STATEMENTS
46
CITY OF TUKWILA: 2010 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: 2010 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUND
DECEMBER 31, 2010
FIREMEN'S
PENSION AGENCY
TRUST FUND FUND
ASSETS:
CASH AND CASH EQUIVALENTS $ 1,429,822 $ 6,403
TOTAL ASSETS 1,429,822 6,403
LIABILITIES:
CURRENT PAYABLES
TOTAL LIABILITIES
6,403
6,403
NET ASSETS:
HELD IN TRUST FOR PENSION BENEFITS AND OTHER PURPOSES $ 1,429,822 $
The notes to the financial statements are an integral part of this statement.
48
CITY OF TUKWILA: 2010 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUND
FOR THE YEAR ENDED DECEMBER 31, 2010
FIREMEN'S
PENSION
TRUST FUND
ADDITIONS:
FIRE INSURANCE PREMIUM TAXES $ 49,989
INVESTMENT EARNINGS 4,405
TOTAL ADDITIONS 54,394
DEDUCTIONS:
BENEFIT PAYMENTS
ADMINISTRATIVE EXPENSES
TOTAL DEDUCTIONS
CHANGE IN NET ASSETS
NET ASSETS - BEGINNING
58,744
3,000
61,744
(7,350)
1,437,172
NET ASSETS - ENDING $ 1,429,822
The notes to the financial statements are an integral part of this statement.
49
CITY OF TUKWILA: 2010 CAFR BASIC FINANCIAL STATEMENTS
50
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2010
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, which conform to generally accepted
accounting principles for governments, are regulated by the Washington State Auditor's Office. The
City's significant accounting policies are described in this note.
For business -type activities and enterprise funds reporting, the City applies all applicable GASB
pronouncements and all FASB Statements and Interpretations, Accounting Principles Board (APB)
Opinions and Accounting Research Bulletins (ARB) issued on or before November 30, 1989, unless
they conflict with or contradict GASB pronouncements.
A. The Reporting Entity
Based on the criteria of Statement No. 14 of the Governmental Accounting Standards Board (GASB),
the City's Comprehensive Annual Financial Report (CAFR) includes all funds, agencies and boards for
which the City is financially accountable. Financial accountability is defined as appointment of a voting
majority of the component unit's board, and either the ability to impose will by the primary government,
or the possibility that the component unit will provide a financial benefit to or impose a financial burden
on the primary government.
There were no component units meeting any of these criteria during 2010. 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 16, 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
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: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
B. Basis of Presentation
The City's basic financial statements consist of government -wide statements, including a statement of
net assets 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 assets and the statement of activities display information about the City as a
whole. 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 city government activities and business -type activities.
The statement of net assets 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.
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.
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
52
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
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, a special revenue fund, is established in accordance with
RCW 82.36.020 for the administration of the State - levied motor vehicle half -cent
gasoline tax distributed to Tukwila. The City provides a portion of its sales tax
revenues as well as several smaller tax resources for construction of large 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 other governmental funds of the City, which are Special Revenue Funds, account for the proceeds
of specific revenue sources that are legally restricted for expenditures for specified 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 below, there are two generic fund types in this category.
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 recreation 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
53
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
maintenance, public policy, management control and accountability. The City's major enterprise funds
are as follows:
• Water /Sewer Utility Fund accounts for operations and capital improvements to
provide water and sanitary sewer services to the City.
• Foster Golf Course Fund is used to account for the operation, maintenance, debt
service, 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 except for major fire apparatus.
All equipment costs, including depreciation, are factors in calculating the rates charged to each user
department. The Insurance and Insurance — LEOFF 1 Funds are used to account 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.
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.
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 Assets.
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 assets. The statement of changes in fund net assets
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.
54
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
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.
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
55
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 each year.
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.
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
Mental and Physical Health
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.
Includes services provided for the care, treatment, and control of
mental and physical illnesses.
56
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
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.
Receivables and Payables
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." All other outstanding balances between funds are reported as "due 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."
Interfund loans and advances between funds, as reported in the fund financial statements, are offset by
a fund balance reserve account in applicable governmental funds to indicate they are not available for
appropriation and are not expendable available financial resources. See also Note 5 on interfund
transactions.
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 Charges
Unamortized debt issuance costs are those costs incurred for the issuance of long -term debt, such as
legal fees, printing costs and other costs. These costs are deferred and amortized over the lives of the
related issues.
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 assets 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 assets and in the respective
funds.
57
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
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.
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
Utility Plant 10 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.
Plant Acquisition Adjustments
The State Auditor's Office promulgates a chart of accounts which defines Plant Acquisition Adjustments
as an intangible asset account used only in proprietary fund utilities. This account includes the
difference between the cost to the current governmental owner and the cost incurred by the person or
company that first devoted the property to utility service. These costs are being amortized using the
straight -line method over the estimated service lives of the related capital assets.
Compensated Absences
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.
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 assets. Bond
premiums and discounts, as well as issuance costs, 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. Bond issuance costs are reported as deferred charges and amortized over the term of the
related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, 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
58
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 Equity - Reserves and Designations
The City recognizes in its reporting that assets are sometimes not "available spendable resources" or
not at times legally available for appropriation, because they are contractually or legally restricted for
some specific future use. When this is the case, as for example with imprest funds, fund equity is
"reserved ".
Fund balance represents the difference between the current assets and current liabilities. The City
reserves 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. Unreserved fund balance indicates that portion of fund balance that is
available for appropriation in future periods. Designations are management's intent to set aside these
resources for specific services.
Net assets represent the difference between assets and liabilities. Net assets 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 assets are 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.
All other net assets are reported as unrestricted.
The City applies restricted resources first when an expense is incurred for purposes of which both
restricted and unrestricted net assets are available.
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 145 as of December
31, 2010. WCIA provides pooled self- insurance coverage for general liability, vehicle liability, false
arrest, and errors and omissions. See Note 16 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, for the rental of the
administration center and solid waste program, 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.
59
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
Interfund 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. Interfund transfers are reported as other financing sources /uses in governmental funds and
after non - operating revenues /expenses section in proprietary funds. Repayments from funds
responsible for particular expenditures /expenses to the funds that initially paid for them are not
presented on financial statements.
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 Governmental Accounting Standards Board (GASB) has issued Statement No. 34 Basic Financial
Statements – and Management's Discussion and Analysis – for State and Local Governments,
Statement No. 37 Basic Financial Statements – and Management's Discussion and Analysis – for State
and Local Governments: Omnibus – an amendment of GASB Statements No. 21, and No. 34, and
Statement No. 38 Certain Financial Statement Note Disclosures. These accounting and reporting
standards impacted the City's revenue and expenditure recognition and assets, liabilities, and fund
equity reporting. The standards also required reformatting of the financial statements and restating
beginning balances. These GASB standards were implemented in 2003 except for the full reporting of
infrastructure assets, which was implemented in 2004.
The City implemented the following Government Accounting Standards Board (GASB) statements:
GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment
Benefits Other Than Pensions. GASB Statement No. 45 establishes standards of accounting and
reporting for other postemployment benefits (OPEB) expense /expenditures and related OPEB liabilities
or OPEB assets, note disclosures, and required supplementary information (RSI) in the financial reports
of state and local governmental employers.
GASB Statement No. 50, Pension Disclosures — an amendment of GASB Statements No. 25 and No.
27. GASB Statement No. 50 more closely aligns the financial reporting requirements for pension with
those for other postemployment benefits (OPEB).
GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets — an amendment of
GASB Statements No. 34 and No. 42. GASB Statement No. 51 establishes accounting and financial
reporting requirements for intangible assets to reduce inconsistences, thereby enhancing the
comparability of the accounting and financial reporting of such assets among state and local
governments.
60
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 — EQUITY IN POOLED CASH AND INVESTMENTS, CASH, 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 $2,555,539. Of the bank balance,
$250,000 was covered by Federal depository insurance and the Washington State Public Depository
Protection Commission insured the remainder. The City also maintains imprest funds totaling $19,200.
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.
At December 31, 2010, 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 03/04/2011 * $ 5,037,418
Sound Community Bank 04/20/2011 * 1,553,714
First Savings Bank Northwest 05/01/2011 * 2,077,720
Charter Bank 05/26/2011 * 1,548,311
Sterling Bank 08/16/2011 * 252,622
Sound Community Bank 05/15/2012 * 504,046
US Bank 02/15/2013 * 3,450,000
Total Certificate of Deposits 14,423,831
Municipal Bonds:
Lodging Tax 07/01/2016 AA3 / A+ 484,289
Revenue 07/01/2017 AA1 / AA+ 486,602
Limited General Obligation 12/01/2017 AA3 / A+ 556,275
Revenue 07/01/2019 AA1 / AA+ 484,273
Limited General Obligation 09/01/2020 Al 322,295
Unlimited General Obligation 12/01/2020 AA1 / AA3 1,146,225
Total Municipal Bonds 3,479,958
TOTAL INVESTMENTS $ 17,903,790
* No credit rating with certificate of deposit accounts; accounts are insured
by the Public Depository Protection Commission
61
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
RECONCILIATION OF ALL CASH, DEPOSITS AND INVESTMENTS
AS REPORTED ON STATEMENT OF NET ASSETS:
Cash and Cash Equivalents: $ 21,659,169
Investments 17, 903, 790
Current Assets Restricted:
Cash and cash equivalents 5,977,485
Total Cash, Cash Equivalents and Investments $ 45,540,444
SUMMARY BY TYPE:
Cash and Cash Equivalents:
Cash on hand
Cash in bank -book balance
Moneymarket account
Local Government Investment Pool
Total cash and cash equivalents
Investments:
Certificates of deposit
Municipal bonds
Total investments
$ 19,200
724,591
5,250,239
21,642,624
27, 636, 654
14, 423, 832
3,479,958
17, 903, 790
Total Cash, Cash Equivalents, and Investments $ 45,540,444
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 1/2) years
or forty -two (42) months.
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CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
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, 2010, 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.
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.
63
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 4 — RECEIVABLES
Property Taxes Receivable
The County Finance Director acts as an agent to collect property taxes levied in the County for all taxing
authorities. Taxes are levied annually on January 1 on property value listed as of the prior August 31.
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 Finance Director 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 normally are not
expected to be collected within 60 days after the current period and are, therefore, reported as deferred
revenue in 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.
For 2010, the City's general tax levy was $2.82566 per each $1,000 of assessed valuation. Total
assessed valuation for 2009 was $4,973,984,133 and was the basis for the 2010 assessments. Actual
2010 general levy property taxes collected were $13,188,942.
Intergovernmental Grants and Entitlements
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.
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CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 5 — INTERFUND TRANSACTIONS
Interfund transactions are classified as follows:
Services Provided — Transactions that would be treated as revenues, expenditures or expenses if they
involve external organizations, such as buying goods and services or payments in lieu of taxes, are
similarly treated when they involve other funds of the City of Tukwila.
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.
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.
There were no interfund loans outstanding at December 31, 2010. Interfund transfers were as follows:
SUMMARY OF INTERFUND TRANSFERS
Government and Internal
Service Funds
General
Fund
Other
Government
Funds
Internal
Service
Funds
Total
Transfers In
Transfers Out
$ 2,461,806 $
(255,475)
Net Transfers In (Out)
$ 2,206,331 $
- $ 158,095 $ 2,619,901
(765,382) (199,734) (1,220,591)
(765,382) $ (41,639) $ 1,399,310
Proprietary Funds
Water /Sewer Surface Water
Utility Utility
Foster Golf
Course
Total
Transfers In $ 97,380 $
Transfers Out (1,107,735)
Net Transfers In (Out) $ (1,010,355) $
- $ - $ 97,380
(375,815) (13,140) (1,496,690)
(375,815) $ (13,140) $ (1,399,310)
The principal purposes for interfund transfers include interfund subsidies and transfers into debt service
and capital projects funds.
65
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 6 — CAPITAL LEASES
During 2010 the City maintained capital lease agreements with various financing sources for the leasing
of City operated machinery and equipment.
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS
Lease
Year Payable
2011 $ 20,702
2012 14,937
2013 8,863
2014 1,617
Total minimum lease payments 46,120
Less: Amounts representing interest (5,936)
Present value of future minimum lease payments $ 40,184
As of December 31, 2010, the value of capital assets acquired under the various capital leases total
$110,509. Base monthly lease payments totaling $1,884 are payable through the end of the various
lease periods. Interest rates for the individual lease agreements vary. Amortization expense in the
amount of $59,938 was recorded for 2010.
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CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 7 - CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2010, was as follows:
GOVERNMENTAL ACTIVITIES
BEGINNING
BALANCE INCREASES DECREASES
ENDING
BALANCE
Governmental Activities
Capital assets, not being depreciated:
Land
Construction in Progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Buildings
Other Improvements
Machinery and Equipment
Infrastructure
Intangible Assets
Total capital assets
being depreciated
Less accumulated depreciation for:
Buildings
Other Improvements
Machinery and Equipment
Infrastructure
Intangible Assets
Total accumulated depreciation
Total capital assets, being
depreciated, net
Governmental activity capital assets, net
$ 39, 352, 086 $ 119,975 $
21,322,811 12,225,532
- $ 39,472,061
(417,059) 33,131,284
60,674,897
24,013,118
12,534,798
15,984,629
119,101,710
12, 345, 507
36,870
838,701
931,111
15,192, 592
269,661
(417, 059)
(20, 662)
(515, 308)
(27, 000)
72,603,345
24,029,326
13, 373, 499
16,400,432
134,267,302
269,661
171,634,255
(8,719,719)
(7,860,168)
(9,433,751)
(33, 552, 855)
(59, 566, 493)
17, 268, 935
112, 067, 762
$ 172,742,659 $
(611,522)
(529,768)
(1,255,799)
(3,492, 087)
(61, 640)
(5,950,816)
(562,970) 188,340,220
20,662 (9,310,579)
(8,389,936)
464,300 (10,225,250)
27,000 (37, 017, 942)
(61,640)
11,318,119
23,663,626 $
511,962 (65,005,347)
(51, 008) 123, 334, 872
(468,067) $ 195,938,217
67
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
BUSINESS -TYPE ACTIVITIES
BEGINNING
BALANCE
ENDING
INCREASES DECREASES BALANCE
Business -type Activities
Capital assets, not being depreciated:
Land
Construction in Progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Buildings
Other Improvements
Machinery and Equipment
Total capital assets
being depreciated
Less accumulated depreciation for:
Buildings
Other Improvements
Machinery and Equipment
Total accumulated depreciation
Total capital assets, being
depreciated, net
Business Type activity capital assets, net
$ 1,907,416 $
2,267,865
306,702 $
1,910,917
4,175, 281
11,143, 046
63, 665, 063
2,376,565
2,217,619
392,111
6,838,904
15,788
77,184, 674
(2,425, 329)
(23, 315, 767)
(1,445,418)
(27,186, 514)
49, 998,159
7,246,803
(299, 589)
(1,393,346)
(136, 951)
(1,829,886)
5,416,917
- $ 2,214,118
(1,285,099) 2,893,683
(1,285,099) 5,107,801
(136,438) 11,398,719
(668, 836) 69, 835,131
(723) 2,391,630
(805,997) 83,625,480
35,474 (2,689,444)
508,404 (24,200,709)
723 (1,581,646)
544,601 (28,471,799)
(261, 396) 55,153, 682
$ 54,173, 441 $ 7,634,536 $
(1,546,495) $ 60,261,484
All reported capital assets of the City are depreciated. Improvements are depreciated over the remaining
useful lives of the related capital assets. Useful lives for infrastructure were estimated based on the
City's historical records of necessary improvements and replacement.
68
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
CAPITAL ASSET INCREASES
Governmental Activities
Capital Asset - Increases:
2010 Capital Outlays
2010 Other Capital Improvements
2010 Land Turnover
2010 Developer Turnovers
2010 Construction in Progress to Capital (Infrastructure)
Internal Service Funds (Equipment Rental)
Governmental Activities - Total Increases
$ 11,513,976
2,051,592
105,700
15,148,111
417,059
378,003
$ 29,614,442
Business -Type Activities
Capital Asset - Increases:
2010 Capital Outlays
2010 Land Turnover
2010 Developer Turnovers
2010 Construction in Progress to Capital (Infrastructure)
Business -Type Activities - Total Increases
DEPRECIATION
Depreciation expense for 2010 was charged to
functions /programs as follows:
Governmental Activities
$ 1,949,901
285,608
5,943,813
1,285,099
$ 9,464,422
General Government $ 77,140
Public Safety 373,631
Physical Environment 646,651
Transportation 3,512,552
Economic Environment 13,251
Culture and Recreation 553,359
Depreciation from Governmental Activities excluding
Internal Service Funds 5,176,584
Capital assets held by the government's
internal service funds are charged to the
various functions based on their usage of
the assets
Total depreciation expense - governmental activities
774,232
$ 5,950,816
Business -Type Activities
Water /Sewer Utility
Foster Golf Course
Surface Water Utility
Total depreciation expense - business -type activities
69
$ 909,275
313,035
607,576
$ 1,829,886
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 8 — 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 2010 cost distribution for the five participating cities is as follows:
City
Dispatchable Percent of
Calls Total
Renton 79,729 21.77%
Kent 94,799 25.89%
Auburn 73,969 20.20%
Tukwila 34,691 9.47%
Federal Way 83,022 22.67%
Total
366,210 100.00%
Valley Com 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 Com 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
final approval falls to the legislative body of each participating city, in accordance with the provisions of
the Interlocal Agreement.
70
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
The share of equity belonging to the five participating cities is as follows:
ITEM
FEDERAL
RENTON KENT AUBURN TUKWILA WAY TOTAL
Equity January 1, 2010 $ 4,653,923 $6,628,171 $4,408,776 $2,661,250 $2,903,476 $21,255,596
Current Year Increase /(Decrease) 179,748 213,723 166,762 78,210 187,172 825,615
Equity December31, 2010 $ 4,833,671 $6,841,894 $4,575,538 $2,739,460 $3,090,648 $22,081,211
Percent of Equity
21.89% 30.99% 20.72% 12.41% 14.00% 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 Com
have no equity interest in Valley Com'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. These
bonds were refunded in 2010 with a remaining principal balance amount of $1,065,000. See Note 11 for
additional information on long -term debt.
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 Agreement.
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.
71
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility will be
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 "Owner Cities "). 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
Debt Serke Schedule Debt Service Allocation to Owner Cities
35% BABs
Year Principal Interest Subsidy Total
Auburn Burien Federal Way Renton SeaTac Tukwila
31% 4% 18% 36% 3% 8%
2010 $ - $ 3,394,191 $ (265,223) $ 3,128,968
2011 - 5,155,732 (1,675,089) 3,480,643
2012 5,155,732 (1,675,089) 3,480,643
2013 1,915,000 5,126,998 (1,675,089) 5,366,909
2014 1,950,000 5,066,566 (1,654,975) 5,361,591
2015 -2019 10,750,000 24,045,404 (8,092,315) 26,703,089
2020 -2024 12,905,000 21,102,168 (7,405,227) 26,601,941
2025 -2029 15, 675, 000 16, 833, 706 (6,067,796) 26, 440, 910
2030 -2034 19, 265, 000 11,158, 380 (4,128, 483) 26, 294, 897
2035 -2039 23,775,000 4,064,705 (1,697,914) 26,141,791
Totals $86,235,000 $ 101,103,582 $ (34,337,200) $ 153,001,382
$ 969,980 $ 125,159 $ 563,214 $ 1,126,428 $ 93,869 $ 250,317
1,078,999 139,226 626,516 1,253,031 104,419 278,451
1,078,999 139,226 626,516 1,253,031 104,419 278,451
1,663,742 214,676 966,044 1,932,087 161,007 429,353
1,662,093 214,464 965,086 1,930,173 160,848 428,927
8,277,958 1,068,124 4,806,556 9,613,112 801,093 2,136,247
8,246,602 1,064,078 4,788,349 9,576,699 798,058 2,128,155
8,196,682 1,057,636 4,759,364 9,518,728 793,227 2,115,273
8,151,418 1,051,796 4,733,081 9,466,163 788,847 2,103,592
8,103,955 1,045,672 4,705,522 9,411,045 784,254 2,091,343
$ 47,430,428 $ 6,120,057 $ 27,540,248 $55,080,498 $ 4,590,041 $12,240,109
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
FEDERAL
AUBURN BURIEN WAY RENTON SEATAC TUKWILA TOTAL
Equity January 1, 2010 $ 1,692,471 $ 218,383 $ 982,725 $ 1,965,450 $ 163,787 $ 436,767 $ 5,459,583
Current Yearincrease /(Decrease) (90,883) (11,727) (52,771) (105,540) (8,795) (23,454) (293,170)
Equity December31, 2010 $ 1,601,588 $ 206,656 $ 929,954 $ 1,859,910 $ 154,992 $ 413,313 $ 5,166,413
Percent of Equity
31.00% 4.00% 18.00% 36.00% 3.00% 8.00% 100.00%
Note: Interest is to be paid from bond proceeds during the construction period (2010- 2011).
The investment in joint venture for SCORE on the Statement of Net Assets includes Tukwila's share of
debt issued in 2009. Including premium and unamortized bond issuance costs, the City's share of SCORE
debt is $6,898,800. 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, City of Renton, 1055
South Grady Way, Renton, WA 98057.
72
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 9 — PENSION PLANS
The City implemented GASB Statements 25 and 27 for reporting of pension plans in 1996. For all plans
the pension liability (asset) was determined in accordance with GASB Statement 27 to be zero both
before and at the effective date of the transition.
Washington State Department of Retirement Systems
Substantially all of the City's 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 and defined contribution
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, PO
Box 48380, Olympia, WA 98504 -8380; or it may be downloaded from the DRS website at
www.drs.wa.gov/ administration /annual- report/cafr /. The following disclosures are made pursuant to
GASB Statements No. 27, Accounting for Pensions by State and Local Government Employers and No.
50, Pension Disclosures, an Amendment of GASB Statements No. 25 and No. 27.
Public Employees Retirement System (PERS) Plans 1, 2, and 3
Plan Description
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.
Membership in the system includes: elected officials; state employees; employees of the Supreme,
Appeals, and Superior courts (other than judges currently in a judicial retirement system); employees of
legislative committees; community and technical colleges, college and university employees not
participating in national higher education retirement programs; judges of district and municipal courts; and
employees of local governments.
PERS participants 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 exercise an option
to transfer their membership to Plan 3. PERS participants 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. An employee is reported in Plan 2 until a choice is made.
Employees who fail to choose within 90 days default to PERS Plan 3. Notwithstanding, PERS Plan 2 and
Plan 3 members may opt out of plan membership if terminally ill, with less than five years to live.
PERS Plan 1 and Plan 2 defined benefit retirement benefits are financed from a combination of
investment earnings and employer and employee contributions. PERS retirement benefit provisions are
established in state statute and may be amended only by the State Legislature.
• PERS Plan 1 members are vested after the completion of five years of eligible
service. Plan 1 members are eligible for retirement after 30 years of service, or at the
age of 60 with five years of service, or at the age of 55 with 25 years of service. The
annual benefit is two percent of the average final compensation (AFC) per year of
service, capped at 60 percent. (The AFC is based on the greatest compensation
during any 24 eligible consecutive compensation months.) This annual benefit is
subject to a minimum for PERS Plan 1 retirees who have 25 years of service and
73
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
have been retired 20 years, or who have 20 years of service and have been retired
25 years. Plan 1 members who retire from inactive status prior to the age of 65 may
receive actuarially reduced benefits. If a survivor option is chosen, the benefit is
further reduced. A cost -of living allowance (COLA) is granted at age 66 based upon
years of service times the COLA amount, which is increased three percent annually.
Plan 1 members may also 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 2 members are vested after the completion of five years of eligible
service. Plan 2 members may retire at the age of 65 with five years of service with an
allowance of two percent of the AFC per year of service. (The AFC is based on the
greatest compensation during any eligible consecutive 60 -month period.) Plan 2
members who retire prior to the age of 65 receive reduced benefits. If retirement is at
age 55 or older with at least 30 years of service, a three percent per year reduction
applies; otherwise an actuarial reduction will apply. The benefit is also actuarially
reduced 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 Plan 3 has a dual benefit structure. Employer contributions finance a defined
benefit component, and member contributions finance a defined contribution
component. The defined benefit portion provides a benefit calculated at one percent
of the AFC per year of service. (The AFC is based on the greatest compensation
during any eligible consecutive 60 -month period.) 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 prior to June 1, 2003.
Plan 3 members are immediately vested in the defined contribution portion of their
plan. Vested Plan 3 members are eligible to retire with full benefits at age 65, or they
may retire at age 55 with ten years of service. PERS Plan 3 members who retire prior
to the age of 65 receive reduced benefits. If retirement is at age 55 or older with at
least 30 years of service, a three percent per year reduction applies; otherwise an
actuarial reduction will apply. The benefit is also actuarially reduced to reflect the
choice of a survivor option. There is no cap on years of service credit, and Plan 3
provides the same cost -of- living allowance as Plan 2.
The defined contribution portion can be distributed in accordance with an option
selected by the member, either as a lump sum or pursuant to other options
authorized by the Employee Retirement Benefits Board.
There are 1,189 participating employers in PERS. Membership in PERS consisted of the following as of
the latest actuarial valuation date for the plans of June 30, 2009:
Type of Membership Membership
Retirees and Beneficiaries Receiving Benefits 74,857
Terminated Plan Members Entitled to but not yet Receiving Benefits 28,074
Active Plan Members Vested 105,339
Active Plan Members Non - vested 53,896
Total 262,166
74
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
Fundinq Policy
Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates, Plan 2
employer and employee contribution rates, and 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. All employers are
required to contribute at the level established by the Legislature. Under PERS Plan 3, employer
contributions finance the defined benefit portion of the plan, and member contributions finance the
defined contribution portion. The Employee Retirement Benefits Board sets Plan 3 employee contribution
rates. Six rate options are available ranging from 5 to 15 percent; two of the options are graduated rates
dependent on the employee's age. 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. 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 covered payroll as of December 31, 2010,
are as follows:
Employer*
Employee
PERS Plan I
PERS Plan 11 PERS Plan 111
5.31% 5.31%
6.00% 3.90%
5.31% **
Minimum 5% to
maximum 15%
* The employer rates include the employer administrative expense fee currently set at 0.16 %.
** Plan 3 defined benefit portion only.
Both the City and the employees made the required contributions. The City's contributions to PERS for
the years ended December 31 were as follows:
PERS Plan 1
PERS Plan 11 PERS Plan III
2010 $ 3,494 $ 640,034 $ 98,350
2009 4,080 800,885 136,877
2008 4,048 789,623 135,429
The decrease in annual contributions is primarily due to a decrease in the employer contribution rate.
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF)
Plan Description
LEOFF is a cost - sharing multiple - employer retirement system comprised of two separate defined benefit
plans. LEOFF participants 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. Membership in the system includes all full -
time, fully compensated, local law enforcement officers, firefighters and, as of July 24, 2005, those
emergency medical technicians who were given the option and chose LEOFF Plan 2 membership.
LEOFF membership is comprised primarily of non -state employees, with Department of Fish and Wildlife
enforcement officers, who were first included prospectively effective July 27, 2003, being an exception.
75
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 for the LEOFF Plan 2 retirement plan.
LEOFF defined benefit 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
state legislative appropriations. LEOFF retirement benefit provisions are established in state statute and
may be amended by the State Legislature.
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 2 members are vested after the completion of five years of eligible service. Plan 2 members
may retire at the age of 50 with 20 years of service, or at the age of 53 with five years of service, with an
allowance of two percent of the FAS per year of service. The FAS is based on the highest consecutive 60
months. Plan 2 members who retire prior to the age of 53 receive reduced benefits. Benefits are
actuarially reduced for each year that the benefit commences prior to age 53 and to reflect the choice of a
survivor option. 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. 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.
There are 372 participating employers in LEOFF. Membership in LEOFF consisted of the following as of
the latest actuarial valuation date for the plans of June 30, 2009:
Type of Membership Membership
Retirees and Beneficiaries Receiving Benefits 9,454
Terminated Plan Members Entitled to but not yet Receiving Benefits 674
Active Plan Members Vested 13,363
Active Plan Members Non - vested 3,944
Total 27,435
Funding Policy
Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent as long as the
plan remains fully funded. Employer and employee contribution rates are developed by the Office of the
State Actuary to fully fund the plan. LEOFF Plan 2 employers and employees are required to pay at the
level adopted by the LEOFF Plan 2 Retirement Board. All employers are required to contribute at the
level required by state law. The Legislature, by means of a special funding arrangement, appropriated
money from the state General Fund to supplement the current service liability and fund the prior service
costs of LEOFF Plan 2 in accordance with the requirements of the Pension Funding Council and the
76
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
LEOFF Plan 2 Retirement Board. However, this special funding situation is not mandated by the state
constitution and this funding requirement could be returned to the employers by a change of statute.
The required contribution rates to the LEOFF system expressed as a percentage of covered payroll as of
December 31, 2010 are as follows:
LEOFF Plan I LEOFF Plan 11
Employer 0.16% 5.24%
Employee 0.00% 8.46%
Both the City and the employees made the required contributions. The City's contributions to the LEOFF
system for the years ended December 31 are as follows:
LEOFF Plan I LEOFF Plan II
2010 $ 714 $ 640,494
2009 643 630,453
2008 724 615,728
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, 2010.
Type of Membership Total
Retirees and beneficiaries receiving benefits 9
Retirees currently receiving full retirement benefits through the
Law Enforcement Officers and Fire Fighters Retirement Plan (LEOFF) 3
Total 12
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 December 31, 2010 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 2010 $49,989 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
77
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 Unfunded Actuarial UAAL as a
Actuarial Actuarial Value Accrued Accrued Liabilities Percentage of
Valuation Date of Assets Liabilities (UAAL) Funded Ratio Covered Payroll Covered Payroll
January 1, 1998 $981 $1,042 $61 94% $101 60%
January 1, 2000 1076 1,243 167 87 112 149
January 1, 2003 1215 1,135 (80) 107 0 N/A
January 1, 2005 1265 1,182 (83) 107 0 N/A
January 1, 2007 1336 1,310 (26) 102 0 N/A
January 1, 2009 1445 1,610 165 90 0 N/A
January 1, 2011 1430 1,582 152 90 0 N/A
The system 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.
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
2008 2009 2010
1 Annual normal cost (BOY) $ - $ - $
2 Amortization of UAAL (BOY) (1,903) 11,185 11,185
3 Interest to EOY (1 + 2 x i *) (95) 391 391
4 ARC at EOY (1 + 2 + 3) (1,998) 11,576 11,576
5 Interest on NPO
6 Adjustment to ARC
7 Annual Pension cost
8 Employer contributions **
9 Change in NPO
10 NPO at BOY
(4 + 5 - 6)
(10, 028)
(14, 898)
2,872
50,730
(8,695)
(16, 888)
19,769
(9,057)
(18,236)
20,755
30,112 46,989
(7- 8) (47,858) (10,343) (26,234)
(11 prior yr) (200,563) (248,421) (258,764)
$ (248,421) $ (258,764) $ (284,998)
11 NPO at EOY
(9 + 10)
* (i) is the assumed interest rate that year: 5% in 2008, 3.5% in 2009, 3.5% in 2010
** Employer contributions for pensions are total contributions to the Fund net of disbursements from the Fund for medical
expenses under RCW 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
78
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
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.
ANNUAL DEVELOPMENT OF PENSION COST
Interest on Total Change in
Fiscal Annual Net Annual Employer Net Net Pension Amortization-- -
Year Required Pension ARC Pension Contri- Pension Obligation (Gain)/ (Gain)/ Ending
Ended Contribution Obligation Adjustment Cost butions Obligation Balance Loss Factor Loss Balance
2008 $ (1,998) $ (10,028) $ (14,898) $ 2,872 $ 50,730 $ (47,858) $ (248,421) $ (52,728) 13.4622 $ (14,898) $(248,421)
2009 11,576 (8,695) (16,888) 19,769 30,112 (10,343) (258,764) (18,536) 14.7098 (16,888) (258,764)
2010 11,576 (9,057) (18,236) 20,755 46,989 (26,234) (284,998) (35,413) 14.1897 (18,236) (284,998)
PERCENTAGE OF ANNUAL PENSION COST CONTRIBUTED
Fiscal Year Ending
Annual Contribution as a* Net Pension
Pension Cost Percentage of Obligation
(APC) APC (Asset)
December 31, 2008 $ 2,872 1,766% $ (248,421)
December 31, 2009 19,769 152 (258,764)
December 21, 2010 20,755 226 (284,998)
* In years with a negative APC, this percentage is not applicable.
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, 2011 valuation were:
Actuarial Valuations
Actuarial valuation date
Actuarial cost method
Amortization Method
Remaining amortization period
Asset valuation method
January 1, 2011
Entry Age Normal
30 -year, closed as of January 1, 1999
18 years
Fair market value
Assumptions
Investment rate of return 4.00%
Projected salary increases 3.75%
Price inflation 2.75%
Cost -of- living adjustments 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
79
CITY OF TUKWILA: 2010 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, 2010, there were 5 active employees and 37 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.
80
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
ANNUAL OPEB COST AND NET OPEB OBLIGATION
2008 2009 2010
1 Annual normal cost (BOY) $ 105,058 $ 105,058 $ 105,058
2 Amortization of UAAL (BOY) 1,196,165 1,196,165 1,196,165
3 Interest to EOY (1 + 2 x i *) 65,061 65,061 65,061
4 ARC at EOY (1 + 2 + 3) 1,366,284 1,366,284 1,366,284
5 Interest on Net OPEB Obligation - 40,459 90,941
6 Adjustment to ARC - 61,839 143,332
7 Annual OPEB cost (4 + 5 - 6) 1,366,284 1,344,904 1,313,893
8 Employer contributions 557,103 335,265 317,771
9 Change in Net OPEB Obligation (7- 8) 809,181 1,009,639 996,122
10 Net OPEB Obligation at BOY (11 prior yr) - 809,181 1,818,820
11 Net OPEB Obligation at EOY (9 + 10) $ 809,181 $ 1,818,820 $ 2,814,942
* (i) is the assumed interest rate that year: 5% in each year.
The net OPEB obligation of $2,814,942 is included as a non - current liability on the Statement of Net
Assets.
ANNUAL DEVELOPMENT OF OPEB COST
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
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
* 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
Cost Contribution Cost Contributed
December 31, 2008 $ 1,366,284 $ 557,103 41 %
December 31, 2009 1,344,904 335,265 25
December 21, 2010 1,313,893 317,771 24
Funded Status and Funding Progress
As of January 1, 2011, the most recent actuarial valuation date, the plan was 0% funded. The actuarial
accrued liability for benefits was $14.8 million, and the actuarial value of assets was $0, resulting in an
unfunded actuarial accrued liability (UAAL) of $14.8 million and a funded ratio of 0 %. The funded ratio is
0 %, because the City funds benefits on a pay -as- you -go basis.
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CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
SCHEDULE OF FUNDING PROGRESS (rounded to thousands)
Actuarial Unfunded Actuarial UAAL as a
Actuarial Value Accrued Accrued Liabilities Percentage of
Valuation Date of Assets Liabilities (UAAL) Funded Ratio Covered Payroll Covered Payroll
January 1, 2008 $0 $16,103 $16,103 0% N/A N/A
January 1, 2011 0 14,805 14,805 0% N/A N/A
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 Medical Cost Rate
2011 7.80%
2012 7.10%
2013 6.50%
2014 -2019 5.90%
2020 -2030 5.80%
2031 -2036 5.70%
4.75%
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.
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CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 11 — LONG -TERM DEBT
The City of Tukwila's long -term debt consists of Governmental Activities Long -Term Debt and Business -
Type Activities Long -Term Debt. The City is in compliance with all Washington State debt limitation
statutes and bond indenture agreements. The City's long -term debt is accounted for in two areas:
1. Governmental Activities Long -Term Debt - Debt in this classification is paid from property and
sales tax revenues and is a general obligation of the City. The City currently maintains a rating of
Aa3 from Moody's Investor Service and a rating of AA- from Fitch's Rating Service for its General
Obligation Bonds.
2. Business -Type Activities Long -Term Debt - Operating revenues of the individual proprietary
funds are used to satisfy this debt. The City's bond rating from Moody's Investors Service is Aaa
for the 1995 Revenue Bonds, the 2006 Revenue Bonds and the 2003 General Obligation Bonds.
Public Works Trust Fund loans are low interest rate loans available from the Washington State
Department of Commerce, Local Government & Infrastructure Division for qualifying projects.
The schedules that follow summarize the long -term debt transactions of the City for the year ended
December 31, 2010.
CHANGES IN LONG -TERM DEBT SUMMARY
REVENUE PUBLIC WORKS DUE TO
GENERAL BONDS TRUST FUND COMPENSATED OTHER CAPITAL
OBLIGATION UTILTIES LOANS ABSENCES GOVERNMENTS LEASES TOTAL
Outstanding 01/01/2010 $ 17,725,000 $ 4,790,000 $ 8,405,397 $ 2,815,474 $ 8,151,800 $ - $41,887,671
Added 5,870,000 - 2,856,537 1,065,000 54,813 9,846,350
Retired / redeemed (1,535,000) (395,000) (616,554) (2,556,404) (1,274,000) (14,629) (6,391,587)
Outstanding 12/31/2010 $ 22,060,000 $ 4,395,000 $ 7,788,843 $ 3,115,607 $ 7,942,800 $ 40,184 45,342,434
Add: Premium net of deferred charges 117,575
Total Long -Term Liabilities $45,460,009
83
CITY OF TUKWILA: 2010 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.
GOVERNMENTAL ACTIVITIES
Year Ended
December 31
General Obligation Bonds
Due to Other
Governments
Capital Leases
Principal
Interest
Principal
Interest
Principal
Interest
TOTAL
2011 $ 1,622,774 $ 852,632 $ 196,000 $ 37,790 $ 17,170 $ 3,518 $ 2,729,884
2012 1,673,707 793,676 201,000 310,361 13,163 1,788 2,993,696
2013 1,666,453 729,294 368,200 302,033 8,272 591 3,074,842
2014 1,807,386 661,736 368,000 290,207 1,579 39 3,128, 946
2015 - 2019 7,630,480 2,244,621 1,080,000 1,285,047 - - 12,240,147
2020 - 2024 4,420, 376 630,682 1,032,400 1,095,755 7,179, 213
2025 - 2029 - 1,254,000 861,273 - - 2,115,273
2030 - 2034 1,541,200 562,392 - 2,103,592
2035 - 2039 - 1,902,000 189,343 - - 2,091,343
Totals $18,821,175 $5,912,640 $7,942,800 $4,934,202 $ 40,184 $ 5,936 $37,656,936
BUSINESS -TYPE ACTIVITIES
Year Ended
1
General Obligation
Revenue Bonds
Public Works Trust
December 31 Principal
Interest
Principal
Interest
Principal
Interest
TOTAL
2011 $ 192,226 $ 140,628 $ 415,000 $ 217,543 $ 609,186 $ 38,662 $ 1,613,244
2012 201,293 132,458 440,000 194,444 558,293 35,898 1,562,386
2013 208,547 123,903 465,000 168,044 558,293 33,107 1,556,893
2014 217,614 115,561 495,000 139,953 558,293 30,315 1,556,737
2015 2019 1,229,520 437,002 1,160, 000 438,597 2,791,465 109,705 6,166, 290
2020 2024 1,189, 624 140,417 970,000 235,575 2,713,313 40,309 5,289,238
2025 - 2029 - 450,000 20,250 - - 470,250
Totals $ 3,238,825 $ 1,089,970 $ 4,395,000 $1,414,405 $7,788,843 $287,996 $18,215,038
84
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
Changes in Long -Term Debt
On July 29, 2010, the City issued bonds to help finance both a major road construction project, the
Southcenter Parkway Extension project, and the acquisition of emergency preparedness capital
equipment. The bond issue comprised $1,900,000 of tax exempt bonds maturing on December 1, 2015
and $3,970,000 of taxable Build America Bonds maturing on December 1, 2024.
On March 4, 2010, Valley Communication Center Public Development Authority refunded general
obligation bonds that had been previously issued in 2000. The City is contracted to pay 20% of the debt
service on these bonds. The refunding reduced the City's portion of debt outstanding by $4,000 and also
reduced interest rates on the bonds.
CHANGES IN LONG -TERM DEBT — GOVERNMENTAL FUNDS
Interest OUTSTANDING OUTSTANDING Due Within
ITEM Rates Maturity Authorized 12/31/2009 ISSUED REDEEMED 12/31/10 One Year
GOVERNMENTAL ACTIVITIES:
Limited General Obligation (GO) Bonds Payable:
2003 Refunding Facilities
2003 Streets
4.00 - 5.0012101114
4.25 - 4.6512101123
2008 Refunding Streets /Facilities 4.00 - 6.0012101119
2010 Streets / Equipment
Total Bonds Payable
Unamortized Deferred Credits (Charges):
Issuance premiums
Issuance discounts and costs
2.00 -5.41 12/01/24
$ 4,195,000 $
6,277,500
6,180,000
5,870,000
2,140,000 $ $ 395,000 $ 1,745,000 $ 410,000
6,016,203 325,028 5,691,175 337,774
6,145,000 515,000 5,630,000 535,000
5,870,000 115,000 5,755,000 340,000
22,522,500 14,301,203 5,870,000 1,350,028 18,821,175 1,622,774
591,826 112,151 79,881 624,096
(578,919) (77,617) (70,689) (585,847)
22,522,500 14,314,110 5,904,534 1,359,220 18,859,424 1,622,774
Net Bonds Payable
Due to Other Governments
2000 FacilityValleyCom
2009 Facility SCORE
2010 Refunding facility
Total Due Other Governments
Unamortized Deferred Credits (Charges):
Issuance premiums
Issuance discounts and costs
Net Due Other Governments
4.30 - 5.7512101115 2,551,600
3.00 -6.62 01/01/39 6,898,800
4.30 - 5.7512101115 1,065,000
1,253,000
6,898,800
1,065,000
1,253,000
6,898,800
21,000 1,044,000 196,000
10,515,400 8,151,800 1,065,000 1,274,000 7,942,800
48,105 - 48,105
(66,755)
(66,755)
196,000
10,515,400 8,133,150 1,065,000 1,255,350 7,942,800
196,000
Capital leases
110,509 54,813 14,629 40,184 17,170
Compensated Absences:
2,581,536 2,586,913 2,328,165 2,840,284 2,328,165
Total Governmental Funds $33,148,409 $ 25,028,796 $9,611,260 $ 4,957,364 $29,682,692 $4,164,109
85
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
CHANGES IN LONG -TERM DEBT - BUSINESS -TYPE ACTIVITIES
Interest OUTSTANDING
OUTSTANDING Due Within
ITEM Rates Maturity Authorized 12/31/2009 ISSUED REDEEMED 12/31/10 One Year
BUSINESS -TYPE ACTIVITIES:
Bonds Payable:
1995 Water /Sewer Revenue 4.15 -6.63 02/01/15
2003 Limited G.O. Golf Course 3.21 -4.65 12/01/23
2006 Water /Sewer /SWM Revenue 4.00 -4.50 12/01/26
Total Bonds Payable
Unamortized Deferred Credits (Charges):
Issuance Premiums
Issuance Discounts
Net Bonds Payable
Public Works Trust Fund Loans:
1990 Loan - Surface Water
1991 Loan - Surface Water
2003 Loan - Water /Sewer
2003 Loan - Surface Water
2004 Loan - Water /Sewer
2004 Loan - Surface Water
2004 Loan - Surface Water
$ 4,500,000 $
5,772,500
3,180,000
13,452,500
13,452,500
1,935,000 $
3,423,797
2,855,000
8,213,797
117,203
(30,975)
8,300,025
$ 275,000 $ 1,660,000 $ 290,000
184,972 3,238,825 192,226
120,000 2,735,000 125,000
579,972 7,633,825 607,226
12,996
(6,094)
586,874
104,207 -
(24,881) -
7,713,151 607,226
5.00 07/01/10 140,000 7,368
1.00 07/01/11 1,313,000 101,786
0.50 07/01/21 273,870 173,451
0.50 07/01/21 219,725 139,159
0.50 -2.00 07/01/24 5,016,000 4,093,294
0.50- 2.0007/01/24 684,000 558,176
1.00 07/01/24 4,196,056 3,332,162
Total Public Works Trust Fund Loans 11,842,651 8,405,396
Compensated Absences:
7,368 -
50,893 50,893 50,893
14,454 158,997 14,454
11,596 127,563 11,597
272,886 3,820,408 272,886
37,211 520,965 37,212
222,144 3,110,018 222,144
616,554 7,788,843 609,186
233,938 269,624 228,239 275,323 224,908
Total Business -Type Activities
TOTAL ALL FUNDS
$25,295,151 $ 16,939,359 $ 269,624 $ 1,431,667 $15,777,317 $ 1,441,320
$58,443,560 $ 41,968,155 $9,880,884 $ 6,389,031 $45,460,009 $ 5,605,429
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 to be
paid from the General fund.
LONG -TERM DEBT RECONCILIATION
Government
Funds
Enterprise Balance
Funds 12 -31 -10
General obligation bonds
Revenue bonds
Public Works Trust Fund loans
Due to Other Governments
Capital Leases
Employee leave benefits
Net Premiums / Deferred charges
Total long -term debt
$ 18,821,175 $ 3,238,825
4,395,000
7,788,843
7,942,800
40,184
2,840,284
38,249
$ 29,682,692
275,323
79,326
$ 15, 777, 317
$ 22, 060, 000
4,395,000
7,788,843
7,942,800
40,184
3,115, 607
117,575
$ 45,460,009
86
CITY OF TUKWILA: 2010 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, 2010, 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
Outstanding Net
Indebtedness
$ 72,142, 302 $ 120, 237,170 $ 240,474, 339 $ 360, 711, 509
32, 919,123 32, 919,123 32, 919,123 32, 919,123
Margin Available $ 39,223,179 $ 87,318,047 $ 207,555,217 $ 327,792,386
NOTE 12 - RESERVATION OF FUND EQUITY
Following is an analysis of fund equity reservation by type for each of the City's fund groups.
SUMMARY OF FUND EQUITY RESERVATION
General Fiduciary Proprietary Totals
Imprest Funds
Employees' Pension Benefit
Totals
$ 17,900 $
- $ 1,300 $ 19,200
1,429,822 1,429,822
$ 17,900 $ 1,429,822 $ 1,300 $ 1,449,022
NOTE 13 — CONSTRUCTION COMMITMENTS
As of December 31, 2010 the City had $12,740,234 contractual obligations on construction projects.
NOTE 14 — LITIGATION
There are several lawsuits in which the City is involved. The City Attorney estimates that the potential
claims against the City total approximately $250,000.
87
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 15 — RESTRICTED ASSETS
The balances of the restricted asset accounts in the enterprise funds are as follows:
SUMMARY OF RESTRICTED ASSETS
Restricted Assets
Customer Deposits -Water /Sewer Utility
Customer Deposits- Foster Golf Course
Revenue Bond Reserve Account -Water /Sewer /Surface Water
$ 10,040
50,194
430,444
Total Restricted Assets $ 490,678
NOTE 16 — 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 145 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 $500,000, 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.
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CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
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. Travelers insures boiler
machinery and Anderson & Black Insurance insures 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.
During the year under audit, 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 each respective 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 Standard Insurance Company, which provides individual limits of $110,000 and a plan limit
of $6,927,265 in 2010. Each fund contributes an appropriate amount each year to pay premiums and
claims. Liabilities include an amount for claims that have been incurred but not reported (IBNR's). Claim
liabilities are calculated considering the effects of inflation, recent claim settlement trends including
frequency and amount of payouts, and other economic and social factors. The basis for estimating the
liabilities for unpaid claims includes the effects of specific, incremental claim adjustment expenses,
salvage, subrogation, and other allocated adjustment expenses.
The following table reflects changes in the balances of claims liabilities for 2010 and 2009.
SUMMARY OF HEALTH CARE CLAIM LIABILITIES
ITEM
Health Benefit Health Benefit
Insurance Insurance Insurance — Insurance —
2010 2009 LEOFF 1 2010 LEOFF 1 2009
Claims Liabilities at Beginning of Year $ 1,167,751 $ 1,190,640 $ 97,401 $ 111,024
Claims expenses:
Current year and changes in estimates 4,300,120 3,887,428 249,957 312,421
Claims payments and expenses (4,312,224) (3,910,317) (277,058) (326,044)
Claims Liabilities at End of Year
$ 1,155,647 $ 1,167,751 $ 70,300 $ 97,401
89
CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 17 — SUBSEQUENT EVENTS
Public Safety Employees' Retirement System (PSERS) Plan 2
Two City positions became members of PSERS effective January 1, 2011. Below is information regarding
plan eligibility and benefits.
Plan Description
PSERS is a cost - sharing multiple - employer retirement system comprised of a single defined benefit
plan, PSERS Plan 2. PSERS was created by the 2004 legislature and became effective July 1, 2006.
PSERS Plan 2 membership includes full -time employees of a covered employer on or before July 1,
2006, who met at least one of the PSERS eligibility criteria, and elected membership during the election
period of July 1, 2006 to September 30, 2006; and those full -time employees, hired on or after July 1,
2006 by a covered employer, that meet at least one of the PSERS eligibility criteria.
A covered employer is one that participates in PSERS. Covered employers include: State of Washington
agencies: Department of Corrections, Department of Natural Resources, Parks and Recreation
Commission, Gambling Commission, Washington State Patrol, and Liquor Control Board; Washington
state counties; and Washington state cities except for Seattle, Tacoma and Spokane.
To be eligible for PSERS, an employee must work on a full -time basis and have one of the following:
• 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.
• Primary responsibility to ensure the custody and security of incarcerated or
probationary individuals.
• Limited authority to function as a Washington peace officer, as defined in RCW
10.93.020.
• Primary responsibility to supervise eligible members who meet the above criteria.
Effective January 1, 2011 the City and employees began making the required contributions for PSERS
for two full -time employees.
Metropolitan Park District (MPD)
On April 18, 2011, the City Council adopted Resolution No. 1738 authorizing a special election on
August 16, 2011 for voter approval of the formation of a Metropolitan Park District. If approved the City of
Tukwila pool will be operated by the MPD. The City will no longer have revenue and expenditures
associated with the pool. In 2010, General Fund revenues for the pool were $214,804 and expenditures
were $510,985.
Tukwila Urban Center Access (Klickitat) Project
On October 26, 2009, the City Council declared its intent to order improvement of urban access for the
Southcenter area and establish the Klickitat Local Improvement District (LID).This project will improve
traffic flow on Southcenter Parkway, Klickitat Drive and Strander Boulevard by constructing an
underpass for the southbound lane on Southcenter Parkway. Payment for the improvement will be made
by special assessment upon the property in the district. Including federal, state, local and LID financing,
the total project cost is estimated to be $17.3 million.
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CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
On May 2, 2011, the City Council passed Resolution No. 1739 authorizing interfund loans of up to $12
million to finance construction period costs. The City will finance construction period expenses through
an interfund loan or loans from multiple funds instead of external financing to save on debt issuance fees
and interest. The interfund loan will be in addition to state and federal grant funding of $6.6 million. The
City intends to issue long term bonds after completion of construction and finalization of the assessment
roll. The long -term bonds will be used to repay the interfund loans.
Social Card Room Activities - Gambling
There are currently three social card rooms operating in Tukwila that generated gambling tax revenues
of $2.1 million in 2010 and an additional $132,000 in other taxes and fees. On February 2, 2011, the City
Council adopted Ordinance No. 2323. The ordinance allows social card rooms to operate citywide until
December 31, 2015 after which time social card rooms will be prohibited.
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CITY OF TUKWILA: 2010 CAFR NOTES TO THE FINANCIAL STATEMENTS
92
CITY OF TUKWILA: 2010 CAFR REQUIRED SUPPLEMENTAL INFORMATION
FIREMEN'S PENSION TRUST FUND
SCHEDULE OF FUNDING PROGRESS
(rounded to thousands)
Actuarial Unfunded Actuarial UAAL as a
Actuarial Actuarial Value Accrued Accrued Liabilities Percentage of
Valuation Date of Assets Liabilities (UAAL) Funded Ratio Covered Payroll Covered Payroll
January 1, 1998 $981 $1,042 $61 94% $101 60%
January 1, 2000 1076 1,243 167 87 112 149
January 1, 2003 1215 1,135 (80) 107 0 N/A
January 1, 2005 1265 1,182 (83) 107 0 N/A
January 1, 2007 1336 1,310 (26) 102 0 N/A
January 1, 2009 1445 1,610 165 90 0 N/A
January 1, 2011 1430 1,582 152 90 0 N/A
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Fiscal Employer Fire Insurance Total Employer Annual Required Percentage of ARC
Year Ending Contributions Premiums Contributions Contribution (ARC) Contributed
December 31, 2005 ($11,250) $40,983 $29,733 ($6,547) N/A %
December 31, 2006 (2,114) 45,951 43,837 (6,547) N/A
December 31, 2007 (8,575) 50,555 41,980 (1,998) N/A
December 31, 2008 (1,841) 52,571 50,730 (1,998) N/A
December 31, 2009 (18,425) 48,537 30,112 11,576 260
December 31, 2010 (3,000) 49,989 46,989 11,576 406
RETIREE MEDICAL AND LONG -TERM CARE BENEFITS
FOR LEOFF 1 EMPLOYEES
SCHEDULE OF FUNDING PROGRESS
(rounded to thousands)
Actuarial Unfunded Actuarial UAAL as a
Actuarial Value Accrued Accrued Liabilities Percentage of
Valuation Date of Assets Liabilities (UAAL) Funded Ratio Covered Payroll Covered Payroll
January 1, 2008 $0 $16,103 $16,103 0% N/A N/A
January 1, 2011 0 14,805 14,805 0% N/A N/A
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Fiscal Employer Fire Insurance Percentage of ARC
Year Ending Contributions Premiums Contributed
December 31, 2008 $557,103 $1,366,284 41%
December 31, 2009 335,265 1,366,284 25
December 31, 2010 317,771 1,366,284 23
The information presented in the preceding required schedules was determined as part of the
actuarial valuations at the dates indicated.
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CITY OF TUKWILA: 2010 CAFR REQUIRED SUPPLEMENTAL INFORMATION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FIREMEN'S PENSION TRUST FUND
Actuarial Valuations
Actuarial valuation date
Actuarial cost method
Amortization Method
Remaining amortization period
Asset valuation method
January 1, 2011
Entry Age Normal
30 -year, closed as of January 1, 1999
18 years
Fair market value
Assumptions
Investment rate of return
Projected salary increases
Price inflation
4.00%
3.75%
2.75%
Cost -of- living adjustments 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
Actuarial Valuations
Valuation date January 1, 2011
Actuarial Cost Method Entry Age Normal
Amortization Method 21 -year, closed as of January 1, 2008
Remaining Amortization Period 18 years
Asset Valuation Method Fair market value
Assumptions
Investment rate of return
Medical inflation
Long -term care inflation
4.00%
Year Medical Cost Rate
2011 7.80%
2012 7.10%
2013 6.50%
2014 -2019 5.90%
2020 -2030 5.80%
2031 -2036 5.70%
4.75%
94
CITY OF TUKWILA: 2010 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.
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CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENT FUNDS
DECEMBER 31, 2010
TOTAL TOTAL TOTAL TOTAL
NONMAJOR NONMAJOR NONMAJOR NONMAJOR
SPECIAL REVENUE DEBT SERVICE CAPITAL PROJECTS GOVERNMENTAL
FUNDS FUNDS FUNDS FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 2,869,751 $ 3,051 $ 2,533,725 $ 5,406,527
INVESTMENTS 393,284 - 393,284
RECEIVABLES:
TAXES 46,697 46,697
DUE FROM OTHER GOVERNMENTAL UNITS 217,905 - 40,803 258,708
CURRENT ASSETS RESTF CTED:
CASH AND CASH EQUIVALENTS 1,151,650 1,151,650
TOTAL ASSETS $ 3,480,940 $ 3,051 $ 3,772,875 $ 7,256,866
LIABILITIES AND FUND BALANCES:
CURRENT LIABILITIES:
ACCRUED WAGES AND BENEFFFS $ 13,436 $ $ 5,192 $ 18,628
ACCOUNTS PAYABLE 277 - 277
DEFFERED REVENUE 59,091 - 59,091
TOTAL LIABILITIES 72,804 5,192 77,996
FUND BALANCES:
UNRESERVED 3,408,136 3,051 3,767,683 7,178,870
TOTAL FUND BALANCES 3,408,136 3,051 3,767,683 7,178,870
TOTAL LABILFFIES AND FUND BALANCES $ 3,480,940 $ 3,051 $ 3,772,875 $ 7,256,866
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CITY OF TUKWILA: 2010 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, 2010
TOTAL TOTAL TOTAL TOTAL
NONMAJOR NONMAJOR NONMAJOR NONMAJOR
SPECIAL REVENUE DEBT SERVICE CAPITAL PROJECTS GOVERNMENTAL
FUNDS FUNDS FUNDS FUNDS
REVENUES:
TAXES $ 458,092 $ 2,174,141 $ 220,376 $ 2,852,609
OTHER TAXES 22,589 22,589
INTERGOVERNMENTAL 1,134,366 - 85,633 1,219,999
CHARGES FOR SERVICES 142,383 142,383
FINES AND FORFEITURES 160,027 2,500 162,527
INVESTMENT EARNINGS 18,247 1,442 8,734 28,423
MISCELLANEOUS 16,451 - 457 16,908
TOTAL REVENUES 1,787,183 2,198,172 460,083 4,445,438
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 44,163 44,163
PHYSICAL ENVIRONMENT - 122,467 122,467
ECONOMIC ENVIRONMENT 1,302,815 1,302,815
PUBLIC SAFETY 7,914 7,914
DEBT SERVICE
FRINCIPAL 1,555,028 1,555,028
INTEREST 771,531 20,684 792,215
CAPITAL OUTLAY
GENERAL GOVERNMENT - 405,387 405,387
PUBLIC SAFETY 60,283 - 60,283
PHYSICAL ENVIRONMENT - 61,796 61,796
TRANSPORTATION 300,000 - 300,000
ECONOMIC ENVIRONMENT 19,064 19,064
TOTAL EXPENDITURES 1,690,076 2,326,559 654,497 4,671,132
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER) EXPENDITURES 97,107 (128,387) (194,414) (225,694)
OTHER FINANCING SOURCES (USES):
PROCEEDS FROM CAPITAL LEASE
TRANSFERS OUT (Note 5)
GENERAL OBLIGATION BONDS ISSUED
PREMIUM ON GENERAL OBLIGATION DEBT
PAYMENT TO FISCAL AGENT
TOTAL OTHER FINANCING SOURCES AND USES
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
8,403
8,403
8,403
(65,000) (65,000)
1,065,000 1,564,297 2,629,297
29,887 29,887
(1,069,000) - (1,069,000)
(4,000) 1,529,184 1,533,587
105,510 (132,387) 1,334,770 1,307,893
3,302,626 135,438 2,432,913 5,870,977
$ 3,408,136 $
3,051 $
3,767,683 $ 7,178,870
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CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
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CITY OF TUKWILA: 2010 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.
Contingency Fund
Provides funding for any municipal expenditure, the necessity or extent of which
could not be foreseen or reasonably evaluated at the time of budget adoption.
Resources of the fund are general tax revenues.
Fire Equipment Cumulative Reserve Fund
Provides funding for major fire department equipment purchases. Primary revenue
source is transfers from the General Fund.
Drug Seizure Fund
Established to account for the yearly accumulation of drug seizure revenues and
related expenditures.
99
CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2010
ANSI
TOTAL
FIRE EQUIPMENT NONMAJOR
HOTEL /MOTEL CUMULATIVE DRUG SPECIAL REVENUE
TAX STREET CONTINGENCY RESERVE SEIZURE FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 542,333 $ 410,842 $ 806,893 $ 803,981 $ 305,702 $ 2,869,751
INVESTMENTS 103,581 196,804 82,577 - 10,322 393,284
DUE FROM OTHER GOVERNMENTAL UNITS 217,905 - - - - 217,905
TOTAL ASSETS $ 863,819 $ 607,646 $ 889,470 $ 803,981 $ 316,024 $ 3,480,940
LIABILITIES AND FUND BALANCES:
ACCOUNTS PAYABLE $ 277 $ $ - $ - $ - $ 277
ACCRUED WAGES AND BENEFITS PAYABLE 13,436 - - - - 13,436
DEFERRED REVENUE - - - 59,091 - 59,091
TOTAL LIABILITIES 13,713 59,091 III 72,804
FUND BALANCES:
UNRESERVED 850,106 607,646 889,470 744,890 316,024 3,408,136
TOTAL FUND BALANCES 850,106 607,646 889,470 744,890 316,024 3,408,136
TOTAL LIABILITIES AND FUND BALANCES
863,819 $ 607,646 $ 889,470 $ 803,981 $ 316,024 $ 3,480,940
100
CITY OF TUKWILA: 2010 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, 2010
L
TOTAL
FIRE EQUIPMENT NONMAJOR
HOTEL /MOTEL CUMULATIV E DRUG SPECIAL REVENUE
TAX STREET CONTINGENCY RESERVE SEIZURE FUNDS
REV ENUES:
TAXES $ 458,092 $ - $
INTERGOVERNNEYTAL 765,016 267,705
FINES AND FORFEITURES - -
INVESTMENT EARNINGS 4,436 5,148
MISCELLANEOUS 16,317 -
TOTAL REVENUES
$ - $ - $ 458,092
- 101,645 1,134,366
- 160,027 160,027
4,008 2,282 2,373 18,247
- 134 - 16,451
1,243,861 272,853
4,008 104,061
162,400
1,787,183
EXPENDITURES:
CURRENT:
PUBLIC SAFETY - - 7,914 7,914
ECONOMIC ENVIRONMENT 1,302,815 - 1,302,815
CAPITAL OUTLAY :
PUBLIC SAFETY - 713 59,570 60,283
TRANSPORTATION 300,000 - 300,000
ECONOMIC ENVIRONMENT 19,064 - 19,064
TOTAL EXPENDITURES 1,321,879 300,000 - 713 67,484 1,690,076
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER) EXPENDITURES (78,018) (27,147) 4,008 103,348 94,916 97,107
OTHER FINANCING SOURCES (USES):
PROCEEDS FROM CAPITAL LEASE 8,403 - - - - 8,403
TOTAL OTHER FINANCING SOURCES AND USES 8,403 8,403
NET CIIANGE IN FUND BALANCES (69,615) (27,147) 4,008 103,348 94,916 105,510
FUND BALANCES - BEGINNING 919,721 634,793 885,462 641,542 221,108 3,302,626
FUND BALANCES - ENDING $ 850,106 $ 607,646 $ 889,470 $ 744,890 $ 316,024 $ 3,408,136
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CITY OF TUKWILA: 2010 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, 2010
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES:
TAXES $ 600,000 $ 600,000 $ 458,092 $ (141,908)
INTERGOVERNMENTAL 607,000 662,000 765,016 103,016
INVESTMENT EARNINGS 20,000 20,000 4,436 (15,564)
MISCELLANEOUS 5,000 5,000 16,317 11,317
TOTAL REVENUES 1,232,000 1,287,000 1,243,861 (43,139)
EXPENDITURES:
CURRENT:
ECONOMIC ENVIRONMENT
CAPITAL OUTLAY:
ECONOMIC ENVIRONMENT
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
PROCEEDS FROM CAPITAL LEASE
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
1,237,860 1,382,860 1,302,815 80,045
10,000 10,000 19,064 (9,064)
1,247,860 1,392,860 1,321,879 70,981
(15,860) (105,860) (78,018) 27,842
8,403 8,403
8,403 8,403
(15,860) (105,860) (69,615) 36,245
632,964 919,721 919,721 -
$ 617,104 $ 813,861 $ 850,106 $ 36,245
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CITY OF TUKWILA: 2010 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, 2010
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES:
INTERGOVERNMENTAL $ 300,000 $ 300,000 $ 267,705 $ (32,295)
INVESTMENT EARNINGS 10,000 10,000 5,148 (4,852)
TOTAL REVENUES 310,000 310,000 272,853 (37,147)
EXPENDITURES:
CAPITAL OUTLAY:
TRANSPORTATION 400,000 400,000 300,000 (100,000)
TOTAL EXPENDITURES 400,000 400,000 300,000 100,000
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER) EXPENDITURES (90,000) (90,000) (27,147) 62,853
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
(90,000) (90,000) (27,147) 62,853
317,000 317,000 634,793 317,793
$ 227,000 $ 227,000 $ 607,646 $ 380,646
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CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
CONTINGENCY SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2010
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES:
INVESTMENT EARNINGS $ 18,000 $ 18,000 $ 4,008 $ (13,992)
TOTAL REVENUES 18,000 18,000 4,008 (13,992)
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER) EXPENDITURES 18,000 18,000 4,008 (13,992)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
18,000 18,000 4,008 (13,992)
874,187 874,187 885,462 11,275
$ 892,187 $ 892,187 $ 889,470 $ (2,717)
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CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FIRE EQUIPMENT CUMULATIVE RESERVE SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2010
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES:
INVESTMENT EARNINGS $ 10,000 $ 9,000 $ 2,282 $ (6,718)
INTERGOVERNMENTAL - 101,645 101,645
MISCELLANEOUS - - 134 134
TOTAL REVENUES 10,000 9,000 104,061 95,061
EXPENDITURES:
CURRENT:
PUBLIC SAFETY 2,000 2,000 2,000
CAPITAL OUTLAY:
PUBLIC SAFETY - - 713 (713)
TOTAL EXPENDITURES 2,000 2,000 713 1,287
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER) EXPENDITURES 8,000 7,000 103,348 96,348
NET CHANGE IN FUND BALANCES 8,000 7,000 103,348 96,348
FUND BALANCES - BEGINNING 427,000 420,000 641,542 221,542
FUND BALANCES - ENDING $ 435,000 $ 427,000 $ 744,890 $ 317,890
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CITY OF TUKWILA: 2010 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, 2010
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES:
INVESTMENT EARNINGS $ $ - $ 2,373 $ 2,373
FINES AND FORFEITURES - 200,000 160,027 (39,973)
TOTAL REVENUES 200,000 162,400 (37,600)
EXPENDITURES:
CURRENT:
PUBLIC SAFETY 2,000 7,914 (5,914)
CAPITAL OUTLAY:
PUBLIC SAFETY 105,000 59,570 45,430
TOTAL EXPENDITURES 107,000 67,484 39,516
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER) EXPENDITURES 93,000 94,916 1,916
NET CHANGE IN FUND BALANCES
93,000 94,916 1,916
FUND BALANCES - BEGINNING 184,647 221,108 36,461
FUND BALANCES - ENDING $ $ 277,647 $ 316,024 $ 38,377
106
CITY OF TUKWILA: 2010 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.
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
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 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 and 2010B
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.
107
CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR DEBT SERVICE FUNDS
DECEMBER 31, 2010
Page 1 of 2
LIMITED TAX
LIMITED TAX LIMITED TAX LIMITED TAX G.O. REFUNDING
G.O. BONDS G.O. BONDS G.O. BONDS BONDS 2003
1999 2000 2003 (REF 1994)
ASSETS:
CASH AND CASH EQUIVALENTS $ 503 $ 70 $ 153 $ 1,457
TOTAL ASSETS $ 503 $ 70 $ 153 $ 1,457
LIABILITIES AND FUND BALANCES:
FUND BALANCES:
UNRESERVED $ 503 $ 70 $ 153 $ 1,457
TOTAL FUND BALANCES 503 70 153 1,457
TOTAL LIABILITIES AND FUND BALANCES $
503 $ 70 $
153 $ 1,457
108
CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Page 2 of 2
LIMITED TAX TOTAL
LIMITED TAX TAXABLE BUILD G.O. REFUNDING NONMAJOR
BONDS G.O. AMERICA BONDS 2010 DEBT SERVICE
BONDS 2010A BONDS 2010B (REF 2000) FUNDS
$ 37 $ 17 $ 814 $ 3,051
$ 37 $ 17 $ 814 $ 3,051
$ 37 $ 17 $ 814 $ 3,051
37 17 814 3,051
$ 37 $ 17 $ 814 $ 3,051
109
CITY OF TUKWILA: 2010 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, 2010
Page 1 of 2
LIMITED TAX
G.O.
LIMITED TAX LIMITED TAX LIMITED TAX REFUNDING
G.O. BONDS G.O. BONDS G.O. BONDS BONDS 2003
1999 2000 2003 (REF 1994)
REVENUES:
TAXES $ 796,702 $ 101,009 $ 578,227 $ 474,571
INVESTMENT EARNINGS 503 292 236 356
OTHER TAXES - - -
TOTAL REVENUES 797,205 101,301 578,463 474,927
EXPENDITURES:
DEBT SERVICE
INTEREST 301,302 9,200
PRINCIPAL 515,000 184,000
TOTAL EXPENDITURES 816,302 193,200
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
260,921
325,028
94,700
395,000
585,949 489,700
(19,097) (91,899) (7,486) (14,773)
OTHER FINANCING SOURCES (USES):
GENERAL OBLIGATION BONDS ISSUED
PAYMENT TO FISCAL AGENT
TOTAL OTHER FINANCING SOURCES AND USES
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
(19,097) (91,899) (7,486) (14,773)
19,600 91,969
7,639 16,230
FUND BALANCES - ENDING
$ 503 $ 70 $ 153 $ 1,457
110
CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Page 2 of 2
TAXABLE LIMITED TAX TOTAL
BUILD G.O. NONMAJOR
LIMITED TAX AMERICA REFUNDING DEBT
G.O. BONDS BONDS BONDS 2010 SERVICE
2010A 2010B (REF 2000) FUNDS
$ 134,680 $ 41,952 $
38 17
- 22,589
47,000 $ 2,174,141
- 1,442
- 22,589
134,718 64,558
47,000 2,198,172
19,681 64,541
115,000
21,186 771,531
21,000 1,555,028
134,681 64,541 42,186 2,326,559
37 17 4,814 (128,387)
1,065,000 1,065,000
(1,069,000) (1,069,000)
(4,000) (4,000)
37 17 814 (132,387)
135,438
$ 37 $ 17 $ 814 $ 3,051
111
CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
112
CITY OF TUKWILA: 2010 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.
113
CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR CAPITAL PROJECTS FUNDS
DECEMBER 31, 2010
GENERAL TOTAL NONMAJOR
FACILITY GOVERNMENT FIRE CAPITAL PROJECTS
REPLACEMENT IMPROVEMENTS IMPROVEMENTS FUNDS
ASSETS:
CASH AND CASH EQUMALENTS $ 2,058,699 $ 319,008 $ 156,018 $ 2,533,725
RECEIVABLES:
TAXES 46,697 46,697
DUE FROM OTHER GOVERNMENTAL UNITS 40,803 - 40,803
CURRENT ASSETS RESTRICTED:
CASH AND CASH EQUIVALENTS 1,151,650 1,151,650
TOTAL ASSETS $ 2,058,699 $ 1,558,158 $ 156,018 $ 3,772,875
LIABILITIES AND FUND BALANCES:
CURRENT PAYABLES:
ACCRUED WAGES AND BENEFITS $ 52 $ 5,140 $ - $ 5,192
TOTAL LIABILITIES 52 5,140 5,192
FUND BALANCES:
UNRESERVED 2,058,647 1,553,018 156,018 3,767,683
TOTAL FUND BALANCES 2,058,647 1,553,018 156,018 3,767,683
TOTAL LIABILFFIES AND FUND BALANCES $ 2,058,699 $ 1,558,158 $ 156,018 $ 3,772,875
114
CITY OF TUKWILA: 2010 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, 2010
GENERAL TOTALNONMAJOR
FACILITY GOVERNMENT FIRE CAPITAL PROJECTS
REPLACEMENT IMPROVEMENTS IMPROVEMENTS FUNDS
REVENUES:
TAXES $ 205 $ 220,171 $ $ 220,376
CHARGES FOR SERVICES - 142,383 142,383
INTERGOVERNMENTAL 85,633 - 85,633
FINES AND FORFEITURES 2,500 - - 2,500
INVESTMENT EARNINGS 6,505 1,940 289 8,734
MISCELLANEOUS 457 457
TOTAL REVENUES 9,667 307,744 142,672 460,083
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT
PHYSICAL ENVIRONMENT
DEBT SERV ICE
INTEREST AND OTHER COSTS
CAPITAL OUTLAY
GENERAL GOVERNMENT
PHYSICAL ENVIRONMENT
TOTAL EXPENDTIURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
44,163 44,163
12 122,455 122,467
20,684 - 20,684
405,387 405,387
24,926 36,870 61,796
24,938 629,559 - 654,497
(15,271) (321,815) 142,672 (194,414)
OTHER FINANCING SOURCES (USES):
TRANSFERS OUT (Note 5)
GENERAL OBLIGATION BONDS ISSUED
PREMIUM ON GENERAL OBLIGATION BONDS
TOTAL OTHER FINANCING SOURCES AND USES
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
(65,000) - (65,000)
1,564 ,297 1,564,297
29,887 29,887
1,529,184 1,529,184
(15,271) 1,207,369 142,672 1,334,770
2,073,918 345,649 13,346 2,432,913
$ 2,058,647 $ 1,553,018 $ 156,018 $ 3,767,683
115
CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
116
CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON -MAJOR PROPRIETARY FUNDS
Internal Service Funds
The City Internal Service Funds are used to account for the financing of special
services performed by designated organizations within the City of Tukwila to other
organizations within the City. They provide a service and then generate revenue by
billing the organization for which the service was provided.
Equipment Rental Fund
Accounts for the costs of maintaining and replacing all City vehicles and auxiliary
equipment except for major fire apparatus. All equipment costs, including
depreciation, are factors in calculating the rates which are charged to each user
department.
Insurance Fund
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.
117
CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENTS OF NET ASSETS
INTERNAL SERVICE FUNDS
DECEMBER 31, 2010
TOTAL
INTERNAL
EQUIPMENT INSURANCE- SERVICE
RENTAL INSURANCE LEOFF I FUNDS
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 3,324,596 $ 2,237,187 $ 1,449,860 $ 7,011,643
INVESTMENTS - 3,441,658 207,190 3,648,848
RECEIVABLES:
CUSTOMER ACCOUNTS 32,113 32,113
INTEREST ON INVESTMENTS 5,435 - 5,435
INVENTORY OF MATERIALS AND SUPPLIES 13,535 - 13,535
TOTAL CURRBVT ASSETS 3,338,131 5,716,393 1,657,050 10,711,574
NONCURRENT ASSETS:
CAPITAL ASSETS:
MACHINERY AND EQUIPMENT 9,216,522 - 9,216,522
LESS: ACCUMULATED DEPRECIATION (6,466,430) (6,466,430)
TOTAL CAPITAL ASSETS (NET OF A /D) 2,750,092 2,750,092
TOTAL NONCURRENT ASSETS 2,750,092 2,750,092
TOTAL ASSETS 6,088,223 5,716,393 1,657,050 13,461,666
LIABILITIES:
ACCOUNTS PAYABLE 7,498 7,498
ACCRUED WAGES AND BENEFITS 16,147 - 16,147
OTHER CURRENT LIABILITIES - 1,155,647 70,300 1,225,947
TOTAL LIABILITIES 16,147 1,163,145 70,300 1,249,592
NET ASSETS:
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT
UNRESTRICTED
2,750,092 2,750,092
3,321,984 4,553,248
1,586,750 9,461,982
TOTAL NET ASSETS $ 6,072,076 $ 4,553,248 $ 1,586,750 $ 12,212,074
118
CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2010
TOTAL
INTERNAL
EQUIPMENT INSURANCE- SERVICE
RENTAL INSURANCE LEOFF I FUNDS
OPERATING REVENUES:
CHARGES FOR SERVICES $ 1,502,877 $ 5,520,775 $ 577,001 $ 7,600,653
OTHER OPERATING REVENUE - 612 454 1,066
TOTAL OPERATING REVENUES 1,502,877 5,521,387 577,455 7,601,719
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE 1,123,845 4,304,231 250,410 5,678,486
DEPRECIATION/AMORTIZATION 774,232 774,232
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
1,898,077 4,304,231 250,410 6,452,718
(395,200) 1,217,156
327,045 1,149,001
NON - OPERATING REVENUE (EXPENSE):
INVESTMENT EARNINGS 23,352 (45,599) 8,344 (13,903)
SALE OF CAPITAL ASSETS 22,891 22,891
TOTAL NON - OPERATING REVENUE (EXPENSE)
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS
46,243 (45,599)
8,344 8,988
(348,957) 1,171,557
335,389 1,157,989
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5)
TRANSFERS OUT (Note 5)
158,095 158,095
(199,734) (199,734)
CHANGE IN NET ASSETS
(390,596) 1,171,557
335,389 1,116,350
TOTAL NET ASSETS BEGINNING OF YEAR
6,462,672 3,381,691
1,251,361 11,095,724
TOTAL NET ASSETS END OF YEAR $ 6,072,076 $ 4,553,248 $ 1,586,750 $ 12,212,074
119
CITY OF TUKWILA: 2010 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, 2010
Page 1 of 2
TOTAL
INTERNAL
EQUIPMENT INSURANCE- SERVICE
RENTAL INSURANCE LEOFFI FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM USERS $ 1,502,877 $ 5,488,662 $ 577,002 $ 7,568,541
CASH PAID TO SUPPLIERS (580,379) (4,304,231) (250,410) (5,135,020)
CASH PAID FOR INVENTORY (62,292) (62,292)
CASH PAID TO EMPLOYEES (485,049) (485,049)
OTHER CASH RECEIVED (PAID) - (3,994) (26,647) (30,641)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
375,157 1,180,437
299,945 1,855,538
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
TRANSFERS IN
TRANSFERS OUT
158,095 - - 158,095
(199,734) - (199,734)
NET CASH PROVIDED (USED) BY NON -
CAPITAL FINANCING ACTIVITIES
(41,639) (41,639)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM SALE OF EQUIPMENT 22,891 - 22,891
PURCHASE OF CAPITAL ASSETS (378,003) (378,003)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES
(355,112) - (355,112)
CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF INVESTMENTS - 2,100,320 303,047 2,403,367
PURCHASE OF INVESTMENTS 100,000 (4,934,841) (207,190) (5,042,031)
INTEREST RECEIVED 24,631 (50,227) 9,151 (16,445)
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 124,631 (2,884,748) 105,008 (2,655,109)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
103,037 (1,704,311) 404,953 (1,196,321)
CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR
3,221,559 3,941,498
1,044,907 8,207,964
CASH AND CASH EQUIVALENTS -END OF YEAR $ 3,324,596 $ 2,237,187 $ 1,449,860 $ 7,011,643
CASH AT END OF YEAR CONSISTS OF:
CASH AND CASH EQUIVALENTS
TOTAL CASH
$ 3,324,596 $ 2,237,187 $ 1,449,860 $ 7,011,643
$ 3,324,596 $ 2,237,187 $ 1,449,860 $ 7,011,643
120
CITY OF TUKWILA: 2010 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, 2010
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)
$ (395,200) $ 1,217,156 $ 327,045 $ 1,149,001
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 774,232 - - 774,232
ASSET (INCREASES) DECREASES:
MISCELLANEOUS NR- REVENUE (32,113) - (32,113)
INVENTORY (4,504) (4,504)
LIABILITY INCREASES (DECREASES) :
ACCOUNTS & VOUCHERS PAYABLE 629 (4,606) (27,100) (31,077)
TOTAL ADJUSTMENTS 770,357 (36,719) (27,100) 706,538
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 375,157 $ 1,180,437 $ 299,945 $ 1,855,539
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT (320) (81,567) 1,508 (80,379)
TOTAL NON CASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES $ (320) $ (81,567) $ 1,508 $ (80,379)
121
CITY OF TUKWILA: 2010 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
122
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
City of Tukwila
STATISTICAL SECTION
December 31, 2010
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 Assets by Component 124
Schedule 2 Changes in Net Assets 126
Schedule 3 Fund Balances, Governmental Funds 128
Schedule 4 Changes in Fund Balances, Governmental Funds 130
Schedule 5 General Governmental Tax Revenues by Source 133
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 133
Schedule 7 Assessed and Estimated Actual Value of Taxable Property 134
Schedule 8 Property Tax Rates - Direct and Overlapping Governments 135
Schedule 9 Principal Property Taxpayers 136
Schedule 10 Retail Sales Tax Collections by Sector 138
Schedule 11 Sales Tax Rate Direct and Overlapping Governments 140
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 142
Schedule 13 Ratios of General Bonded Debt Outstanding 144
Schedule 14 Computation of Direct and Overlapping Debt 145
Schedule 15 Legal Debt Margin Information 146
Schedule 16A Revenue Bond Coverage- Water and Sewer Bonds 148
Schedule 16B Revenue Bond Coverage- Surface Water Bonds 149
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 17 Demographic Statistics 150
Schedule 18 Principal Employers 151
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 19 Staffing Levels by Department 152
Schedule 20 Operating Indicators by Function 153
Schedule 21 Capital Assets by Function 154
123
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 1
NET ASSETS BY COMPONENT(a)
LAST NINE FISCAL YEARS (b)
page 1 of 2
2002 2003
2004
2005
Governmental activities:
Invested in capital assets, net of
related debt
Restricted
Unrestricted
$ 102,619,488
389,322
23,825,950
$ 118,950,364
809,002
24,341,822
$ 123,038,903
1,107,362
25,873,104
$ 129,855,251
1,305,239
25,289,571
Total governmental activities net assets
$ 126,834,760 $ 144,101,188 $ 150,019,369 $ 156,450,061
Business -type activites:
Invested in capital assets, net of
related debt
Restricted
Unrestricted
$ 29,032,974
1,311,344
8,785,499
$ 29,807,787
887,398
9,070,664
$ 30,848,350
960,485
9,664,654
$ 31,370,812
577,587
9,909,896
Total business -type activities net assets
$ 39,129,817 $ 39,765,849
$ 41,473,489 $ 41,858,295
Primary government:
Invested in capital assets, net of
related debt
Restricted
Unrestricted
$ 131,652,462
1,700,666
32,611,449
$ 148,758,151
1,696,400
33,412,486
$ 153,887,253
2,067,847
35,537,758
$ 161,226,063
1,882,826
35,199,467
Total primary government net assets
$ 165,964,577 $ 183,867,037 $ 191,492,858 $ 198,308,356
Notes:
(a) All amounts are reported on the accrual basis
(b) Amounts presented from year of implementation of GASB -34 (2002) forward
Source:
Tukw ila Finance Department
124
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
page 2 of 2
2006 2007 2008 2009 2010
$ 133,129,382 $ 136,053,013 $ 136,742,368 $ 155,847,012 $ 177,078,793
1,305,239 1,233,234 19,720,546 16,360,097 23,005,792
29, 506, 541 35, 520, 681 18,476, 837 16, 031,473 12,119, 923
$ 163,941,162 $ 172,806,928 $ 174,939,751 $ 188,238,582 $ 212,204,508
$ 34,017,190 $ 36,083,972 $ 36,071,402 $ 38,052,488 $ 44,759,489
435,995 441,073 439,100 438,619 430,444
12,070,451 11,267,171 13,335,836 10,987,162 11,158,081
$ 46,523,636 $ 47,792,216 $ 49,846,338 $ 49,478,269 $ 56,348,014
$ 167,146,572 $ 172,136,985 $ 172,813,770 $ 193,899,500 $ 221,838,282
1,741,234 1,674,307 20,159,646 16,798,716 23,436,236
41,576,992 46,787,852 31,812,673 27,018,635 23,278,004
$ 210,464,798 $ 220,599,144 $ 224,786,089 $ 237,716,851 $ 268,552,522
125
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 2
CHANGES IN NET ASSETS (')
2004 (b)
Expenses
Governmental Activities
General Government
Public Safety
Physical Environment
Transportation
Economc Environment
Mental and Physcial Health
Culture and Recreation
Interest on Long Term Debt
Total Governmental Activities
Business Type Activities
Water /Sew er 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
Mental & Physical Health
Interest on Long Term Debt
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities Program Revenues
Business Type Activities
Charges for Services
Water /Sew er Utility
Foster Golf Course
Surface Water Utility
Operating Grants and Contributions
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 Assets
Governmental Activities
Taxes
Property Tax
Retail Sales and Use Tax
Natural Gas Use Tax
HoteVMotel Tax
Utility Tax
Business Tax
Excise Tax
State Entitlements
Unrestricted Investment Earnings
Gain /Loss on Sale of Capital Assets
Transfers
Total Governmental Activities
Business Type Activities
Retail Sales and Use Taxes
Unrestricted Investment Interest
Gain /Loss on Sale of Capital Assets
Transfers
Total Business Type Activities
Total Primary Government
Change in Net Assets
Governmental Activities
Business Type Activities
Total Primary Government
$ 6,167,738
18,769,074
1,442, 209
4,962,043
3,469,673
Page 1 of 2
2005 2006 •
$ 6,421,839
20,300,709
1,363,049
4,171,173
3,404,605
3,680,402 3,887,871
1,034, 841 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
39, 525, 980
6,774,102
1,670,400
1,625,579
40,561,485 46,131,577
7,105,020
1,751,709
1,685,663
7,354,876
1,832,303
1,642,204
10,070,081
10, 542, 392 10, 829, 383
$ 49,596,061 $ 51,103,877 $ 56,960,960
$ 781,653 $ 1,376,749 $ 1,243,936
937,873 1,328,369 538,576
5,005 12,400 10,000
102,614 122,201 247,026
1,977,676 1,027,812 1,756,240
894,681 693,857 758,385
1,607,688 1,525,579 1,897,543
3,705,424 3,060,960 5,675,493
10,012,614 9,147,927 12,127,199
7,620,572 7,604,711 7,354,876
1,239,274 1,434,933 1,832,303
1,819,703 1,839,760 1,642,204
588,891 319,439 1,255,360
11, 268,440 11,198,843 12,084, 743
21,281,054 20,346,770 24,211,942
(29,513,366) (31,413,558) (34,004,378)
1,198,359 656,451 2,031,638
$ (28,315,007) $ (30,757,107) $ (31,972,740)
$ 10,336,366
16,492,528
29,667
390,221
2,309,787
1,614, 587
4,100, 309
191,589
416,483
(450,000)
35,431,537
228,458
188,242
450,000
866,700
$ 36,298,237
$ 10,631,036
16,887,846
381,706
443,605
2,646,356
1,732,739
3,229,155
192,816
768,097
106,776
824,118
37,844,250
241,723
310,750
(824,118)
(271,645)
$ 37,572,605
$ 10,973,030
18,236,733
415,652
501,478
2,930,332
2,097,082
4,941,461
185,475
1,923,171
467,510
1,372,652
44,044,576
645,473
539,463
1,250,000
2,434,936
$ 46,479,512
$ 5,918,171 $ 6,430,692 $ 7,491,102
2,065,059 384,806 4,580,734
$ 7,983,230 $ 6,815,498 $ 12,071,836
Notes:
(a) All amounts are reported on the accrual basis
(b) Amounts presented from year of implementation of GASB -34 forward (2004 for capital assets)
Source: Tukw ila Finance Department
126
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
Page 2 of 2
Of
1•:
11••
• •
$ 7,456,335
21,726,932
2,764,373
5,310,247
3,890,845
4,204
4,506,223
896,215
46,555,374
7,046,603
1,849,542
1,920,194
$ 4,723,103
24,147, 992
2,862,487
5,864,297
5,017,935
4,173
4,797,856
1,844,224
49,262,067
7,293,362
1,968,595
1,762,417
$ 6,689,659
26,959,352
2,575,405
5,541,367
4,637,531
4,332
4,914,256
753,904
52,075,806
9,293,434
2,050,172
2,299,394
10, 816, 339
11,024 ,11,024,374 13, 643, 000
$ 7,052,717
26,088,644
2,533,394
6,015,197
4,579,338
4,539
4,756,676
1,061,419
52, 091, 924
9,343,368
1,935,014
2,476,170
13,754,552
$ 57,371,713 $ 60,286,441 $ 65,718,806 $ 65,846,476
$ 1,590,553
425,241
25,341
133,500
2,319,634
777,484
1,692,766
3,746,743
10,711,262
8,272,647
1,272,425
2,208,549
347,416
12,101, 037
22,812,299
$ 895,966
1,184, 530
1,200
130,637
2,476,501
711,542
1,325,163
2,282,592
9,008,131
8,621,909
1,563,681
2,642,325
756,400
13,584,315
22,592,446
$ 1,136,642
572,094
103,311
1,001,511
647,354
3,386,269
14,784,074
21,631,255
10,124,653
1,424,595
2,641,313
515,633
14, 706,194
36,33 /,449
$ 1,080,801
819,043
6,200
571,110
1,787,274
811,679
2,139,029
23,992,563
31,207,699
9,665,095
1,425,327
3,029,630
7,390,545
21,510,597
52,718,296
(35,844,111) (40,253,937) (30,444,551) (20,884,225)
1,284,700 2,559,941 1,063,194 7,756,045
$(34,559,411) $ (37,693,996) $ (29,381,357) $ (13,128,180)
$ 11,302,099
19,355,867
344,748
583,232
3,666,079
2,236,675
4,127, 360
217,600
1,727,879
13,652
1,134, 683
44,709,874
$ 11,656,979
18,009,297
643,037
587,216
5,136,444
2,497,705
983,078
874,046
801,847
(186, 663)
1,383, 774
42,386,760
500,000 500,000
618,563 377,955
(1,383,774)
(505,819)
$ 41,880,941
(1,134,683)
(16,120)
$ 44,693,754
$ 11,901,072 $ 13,363,096
14, 588, 297 14,669,328
748,772 533,811
489,806 458,092
7,390,860 5,600,683
3,196,178 4,205,574
367,198 507,798
2,233,445 1,951,936
246,287 108,929
980,267
1,601,200 1,399,310
43,743,382 42,798,557
327,999
106,032
(264,093)
(1,601,200)
(1,431,262)
$ 42,312,120
329,527
85,942
97,541
(1,399,310)
(886,300)
$ 41,912,257
$ 8,865,765 $ 2,132,823 $ 13,298,831 $ 21,914,332
1,268,580 2,054,122 (368,068) 6,869,745
$ 10,134,345 $ 4,186,945 $ 12,930,763 $ 28,784,077
127
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 3
FUND BALANCES, GOVERNMENTAL FUNDS
LAST NINE FISCAL YEARS (1)
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Page 1 of 2
2002 2003 2004 2005 2006
General Fund
Reserved $ 12,700 $ 613,000 $ 557,690 $ 557,690 $ 13,250
Unreserved 3,380,158 6,247,054 8,533,639 8,408,104 8,693,215
Total general fund $ 3,392,858 $ 6,860,054 $ 9,091,329 $ 8,965,794 $ 8,706,465
All other governmental funds
Reserved $ 15,300 $ 765,300 $ 720,860 $ 705,560 $
Unreserved, reported in:
Special revenue funds 11,021,202 8,939,830 6,933,242 5,669,921 8,500,342
Debt service funds 389,322 809,012 1,107,362 1,305,239 1,075,347
Capital Projects funds 2,321,088 3,888,305 4,092,179 5,677,953 7,245,827
Total all other governmental funds $ 13,746,912 $ 14,402,447 $ 12,853,643 $ 13,358,673 $ 16,821,516
Note:
(1) Information available for 2002 -2010 only due to new accounting and
reporting standards beginning 2002 with GASB Statement No. 34.
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
2002 2003 2004 2005 2006 2007 2008 2009 2010
fAll Other
Governmental
■II■GeneralFund
128
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
Page 2 of 2
2007 2008 2009 2010
$ 12,650 $ 17,800 $ 17,900 $ 17,900
10,504,748 7,687,515 7,371,530 5,739,140
$ 10,517,398 $ 7,705,315 $ 7,389,430 $ 5,757,040
10,834,781 12,943,487 9,123,401 14,461,546
1,233,234 1,248,901 135,438 3,051
8,113,739 6,831,634 7,101,258 8,541,195
$ 20,181,754 $ 21,024,022 $ 16,360,097 $ 23,005,792
129
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (a)
LAST TEN FISCAL YEARS
page 1 of2
2001 2002 2003 2004
Revenues
Taxes $ 22,019,850 $ 28,156,041 $ 31,986,222 $ 34,148,173
Licenses and Permits 921,809 822,810 785,823 808,821
Intergovernmental 959,350 16,689,193 15,005,227 6,306,463
Charges for Services 1,232,149 1,201,080 1,796,946 2,919,115
Fines and Forfeitures 285,000 338,484 245,585 147,137
Investment Income 632,537 859,765 222,460 356,625
Miscellaneous 411,614 489,806 1,066,247 993,386
Total Revenues 26,462,309 48,557,179 51,108,510 45,681,724
Expenditures
General Government 5,390,820 5,648,745 5,892,912
Public Safety 16,056,801 16,711,088 17,532,136
Physical Environment 805,029 1,228,774 1,509,946
Transportation 1,135,903 2,202,888 4,779,885
Economic Environment 2,349,462 2,974,513 3,429,674
Mental & Physical Health
Culture and Recreation 2,110,344 2,457,973 2,985,083
Debt Service
Principal 718,000 754,000
Interest 925,414 924,964
Bond Issuance Costs 112,363
Capital Outlay 524,309 17,306,146 15,636,782
Total Expenditures 28,372,668 50,173,541 53,557,745
Excess (Deficiency) of Revenues (1,910,359) (1,616,362) (2,449,235)
Over (Under) Expenditures
5,982,594
18,393,514
883,914
2,620,038
3,461,092
3,187,113
804,000
1,057,974
8,057,070
44,447,309
1,232,411
Other Financing Sources (Uses)
Transfers In 1,706,973 5,513,212 350,000
Transfers Out (175,000) (1,845,331) (5,288,570) (900,000)
Capital Leases - -
Sale of Capital Assets 1,646 177,995
General Obligation Bonds Issued 6,277,500
General Obligation Refunding Bonds Issued 4,195,000 -
Premium on General Obligation Debt 65,392
Premium on General Obligation Refunding Debt - - 248,672 -
Issuance Costs on General Obligation Refunding Debt
Payment to Refunded Bond Escrow Agent - - (4,439,240) -
Total Other Financing Sources (Uses) (173,354) 39,637 6,571,966 (550,000)
Net Change in Fund Balances $ (2,083,713) $ (1,576,725) $ 4,122,731 $ 682,411
Ratio of Debt Service Expenditures 5.3% 5.0% 5.4%
To Total Non - Capital Expenditures
Note:
(a) All amounts are reported on the modified - accrual basis
Source:
Tukw ila Finance Department
130
CITY OF TUKWILA: 2010 CAFR
STATISTICAL SECTION
page 2 of 2
2010
$ 34,624,875 $ 37,801,814 $ 39,660,792 $ 37,412,569 $ 37,167,281 $ 37,267,918
1,002,683 1,273,228 1,827,709 2,022,851 1,283,463 1,618,830
5,672,810 7,083,032 6,403,217 5,697,598 17,596,486 14,525,872
2,649,678 2,345,931 2,024,892 2,569,381 1,443,680 2,366,174
116,737 221,097 266,188 259,991 301,761 390,079
638,196 1,159,971 1,425,423 926,913 282,604 144,258
1,000,775 1,397,585 1,751,145 816,054 701,957 891,307
45,705,754 51,282,658 53,359,366 49,705,357 58,777,232 57,204,438
6,136,540 6,882,594 7,034,602 7,992,286 8,574,563 8,387,317
19,604,151 20,953,226 21,038,810 22,878,689 25,576,932 24,676,370
788,105 2,139,959 2,196,422 2,255,880 2,058,913 1,724,147
1,705,692 2,447,096 2,413,390 2,783,077 2,334,298 2,332,178
3,384,928 3,539,657 3,878,658 4,995,514 4,601,391 4,541,845
- 3,683 4,204 4,173 4,332 4,539
3,358,583 3,687,580 3,938,779 4,293,658 4,365,023 4,163,503
851,000 888,000 930,000 972,000 1,316,297 1,555,028
1,033,474 1,006,161 914,584 872,224 778,018 849,148
7,344,326 6,540,452 7,243,879 6,089,703 16,860,362 11,513,976
38,070,259 48,088,408 49,593,328 53,137,204 66,470,129 59,748,051
1,498,955 3,194,250 4,036,039 (3,431,846) (7,692,894) (2,543,613)
150,000 2,143,581 2,266,349 2,515,982 3,865,744 2,461,806
(1,305,000) (2,430,769) (1,131,666) (1,107,543) (2,234,444) (1,020,857)
- - 110,509
35,600 296,451 100 53,592 1,014,608 27,308
- - 6,935,000
6,180,000 6,947,574
- 112,151
483,599 - -
(108,326) -
(6,555,273) (6,880,397) (1,069,000)
(1,119,400) 9,263 1,134,783 1,462,031 2,713,085 7,556,917
$ 379,555 $ 3,203,513 $ 5,170,822 $ (1,969,815) $ (4,979,809) $ 5,013,304
5.4% 4.8%
4.6°% 4.1%
131
4.4% 5.2%
Fiscal Year Roperty Sales & Use Utilityo) Excise Business Othee') Total Taxes I
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULES
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
2001 $ 9,326,336 $ 16,345,134 $ - $ 2,445,379 $ 383,025 $ 444,655 $ 28,944,529
2002 9,487,241 15,494,343 - 2,406,132 390,725 377,600 28,156,041
2003 9,854,007 16,171,756 1,591,922 3,500,318 431,188 437,031 31,986,222
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
change 2001-
2010 41.4% -12.8% 285.4%
1.8% 89.8% -32.1% 28.1%
Notes:
Utility taxes enacted beginning in 2003 for electric, natural gas, cable and telephone utilities.
A utility fax was added in 2009 for solid waste along with a utility tax on the City's water, sewer and stormwater utilities.
roi "Other Taxes" include penalties and interest on delinquent faxes and other miscellaneous tax revenues.
Source:
Tukw ila Finance Department
$50,000,000 -
$40,000,000
$30,000,000
$20,000,000 -
$10,000,000 -
Tax Revenue by Source
$- -
I 1 l
hill l
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
• Other
■ Business Tax
• Excise Tax
• Utilty Tax
■ Sales& Use Tax
• Property Tax
132
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 6
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Taxes Levied for
Fiscal Year Fiscal Year
Collected Within the Fiscal Year
of the Levy Total Collections to Date
Amount
Collections in
of Levy Subsequent Years Amount % of Levy
2001 $ 9,362,284 $ 9,218,994 98.47% $ 102,095 $ 9,321,089 99.56%
2002 9,843,102 9,526,236 96.78% 115,859 9,642,095 97.96%
2003 10,136,315 9,924,909 97.91% 175,949 10,100,858 99.65%
2004 10,489,114 10,345,276 98.63% 278,064 10,623,340 101.28%
2005 10,731,724 10,593,753 98.71% 134,345 10,728,098 99.97%
2006 10,973,030 10,844,728 98.83% 237,003 11,081,731 100.99%
2007 11,177,532 10,994,127 98.36% 115,199 11,109,326 99.39%
2008 11,411,293 11,194,247 98.10% 132,633 11,326,880 99.26%
2009 12,283,193 12,017,213 97.83% 143,156 12,160,369 99.00%
2010 13,234,489 13,446, 596 101.60% 141,268 13,587,864 102.67%
Source:
King County Office of Finance
133
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 7
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Fiscal Year
Total Assessed Total Direct
Real Property Personal Property Public Utilities Value Tax Rate
2001 $ 2,544,588,267 $ 606,806,225 $ 192,651,250 $ 3,344,045,742 $ 2.94537
2002 2,715,355,120 604,479,409 169,870,128 3,489,704,657 2.91064
2003 2,832,422,720 471,448,140 80,219,849 3,384,090,709 3.10754
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
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
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
134
ii1 Public Utilities
o Personal Property
id Real Property
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
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
King Port of Medical School Dist Flood Hospital
Fiscal Year General Levy Special Levy Total WA State County() Seattle Service #406 Control District #1 Total
2001 $ 2.94537 $
2002 2.91064
2003 3.10754
2004 3.11712
2005 3.03706
2006 2.84033
2007 2.56911
2008 2.37324
2009 2.66345
2010 2.82566
Note:
0> Includes King County Library District tax.
Source:
King County Department of Assessments
$2.94537 $2.98946 $ 1.97530 $0.18956 $ 0.25000 $ 5.11395 $ 0.04665 $ 0.09643 $13.60672
2.91064 2.89680 1.34948 0.25895 0.24143 4.85812 0.04688 0.09254 12.65484
3.10754 2.75678 1.96799 0.25402 0.23717 5.05267 0.04669 0.09200 13.51486
3.11712 2.68951 1.91484 0.25321 0.23182 5.04535 0.04658 0.09039 13.38882
3.03706 2.49787 1.86293 0.23330 0.21982 5.01637 0.04482 0.59000 13.50217
2.84033 2.32535 1.75139 0.23158 0.20621 4.78874 0.04212 0.55652 12.74224
2.56911 2.13233 1.66106 0.22359 0.30000 4.73164 0.10000 0.50854 12.22627
2.37324 1.96268 1.51508 0.19700 0.27404 4.12360 0.09123 0.47141 11.00828
2.66345 2.22253 1.74587 0.21597 0.30000 3.89183 0.10514 0.53290 11.67769
2.82566 2.27990 1.90797 0.22366 0.30000 5.03380 0.10976 0.55753 13.23828
$3.50000
$3.00000
$2.50000
$ 2.00000
$1.50000
$1.00000
$0.50000
$-
Direct Property Tax Rates
• •
• • • • • • • ■ •
• • • • • • • ■ •
• '■ ■ • • • I • •
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
135
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 9
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Name
Type of Businesn
Percent of Percent of
2010 Total 2001 Total
2010 Assessed Assessed 2001 Assessed Assessed
Valuation Valueial Valuation Valuee>
Boeing Company Airplane company $ 475,982,216 9.94% $ 493,225,181 14.7%
WEA Southcenter LLC Department Stores 303,396,501 6.34% 101,401,938 3.0%
La Ranta LP /Segale Properties Commercial Properties 142,469,187 2.98% 70,160,652 2.1%
KIRTukw ila 050 LLGKIMCO Commercial Roperties 80,284,983 1.68% 73,284,500 2.2%
Rreef America Reit II Corporation Commercial Properties 69,955,400 1.46%
Walton CWWA Eproperty Tax Incorporated (McElroy) Investment Property 62,809,300 1.31% 16,254,800
Boeing Employees Credit Union Credit Union 41,707,218 0.87% 48,422,542 1.4%
Jorgensen Forge Corporation Steel Manufacturer 39,556,325 0.83% 9,713,349 0.3%
Sterling Realty Organization Commercial Properties 34,984,800 0.73%
Sea -Tuk Warehouse LLC Food Distribution 34,871,500 0.73% 18,260,562
Wig Properties LLC (JC Fenney) Department Stores 31,314,290 0.65% 12,996,929 0.4%
Federated Department Stores(Macys) Department Stores 30,160,200 0.63% 29,397,756 0.9%
Anne Arundel Apartments LLC (Group Health) Apartments 26,710,200 0.56%
BRCP Riverview Raza LLC Commercial Properties 26,154,200 0.55%
Southcenter Corporate Square Hair Loss Center 24,897,400 0.52%
Puget Sound Energy /Gas - Bectric Electric /Gas Utility 24,196,815 0.51% 21,277,860 0.6%
Merrill Creek Holding LLC (Kenworth Motors) Truck Manufacturer 20,112,600 0.42% 23,148,100 0.7%
Koar - Seatac Partners LP Lodging 19,476,090 0.41% 0.0%
Harnish Group Incorporated Truck Equipment 16,848,958 0.35% 9,623,900 0.3%
CHA Southcenter LLC(Doubletree Inn) Lodging 14,865,856 0.31% 65,961,600 2.0%
Lowe's HM/ Incorporated Home Improvement 14,004,333 0.29% 17,322,767 0.5%
Qw est Corporation (US West Communications) Telephone Utility 11,311,315 0.24% 17,191,503 0.5%
Hill lnvestmentCompany ConmercialProperties 6,914,900 0.14% 7,118,000 0.2%
AMB Institutional Alliance Commercial Properties 44,979,000 1.3%
Group Health Cooperative Healthcare Adrniin 25,843,280 0.9%
Nelson, James, & Frohmuth Investment Property 21,207,700 0.7%
Pacific Gulf Properties Property Management 14,564,900 0.5%
TOTALS $ 1,552,984,587 32.43% $ 1,141,356,819 33.3%
Notes:
Ie) In 2010 the total assessed property value in the City of Tukwila was $4, 788,452,326.
!al In 2001 the total assessed property value in the City of Tukwila was $3,344,045,742.
Source:
King County Department of Assessments
136
CITY OF TUKWILA: 2010 CAFR
STATISTICAL SECTION
137
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 10
RETAIL SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
page 1 of 2
Major Industry Sector 2001 2002 2003 2004
Construction and Contracting $ 2,104,156 $ 991,702 $ 1,119,595 $ 958,758
Finance, Insurance & Real Estate 108,262 57,919 54,992 82,794
Manufacturing 596,052 563,919 520,474 446,965
Transportation, Communications & Utilities 360,441 350,258 377,596 387,148
Wholesale - Durable /Non - durable Goods 1,470,187 1,374,271 1,761,749 1,862,528
Retail Trade - General Merchandise 2,591,680 2,570,883 2,545,631 2,574,671
Retail Trade - Furniture /Home Furnishings 1,862,336 1,815,168 2,304,037 2,405,967
Retail Trade - Miscellaneous 2,115,104 2,044,562 1,723,147 1,735,045
Retail Trade - Clothing & Accessories 1,134,102 1,175,074 1,197,591 1,247,109
Retail Trade - Restaurants 900,496 887,103 933,886 1,031,625
Retail Trade - Automotive /Gas 770,063 768,664 847,864 982,413
Retail Trade - Building Materials 627,140 712,723 763,013 850,109
Service Industries - Business 493,806 824,497 530,833 488,857
Service Industries - Hotels 418,051 357,940 361,789 355,514
Service Industries - Other 386,590 373,911 507,935 486,215
All Other Categories 70,289 296,953 292,827 288,169
Total Retail Sales Tax Collections $ 16,008,755 $ 15,165,547 $ 15,842,959 $ 16,183,887
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.
138
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
page 2 of 2
2005(a) 2006 2007 2008 2009 2010
$ 676,427 $ 1,166,088 $ 2,018,058 $ 1,967,785 $ 869,640 $ 917,250
102,130 93,747 121,879 118,780 119,121 99,975
503,778 450,138 590,455 375,263 246,429 387,234
384,703 436,260 483,419 492,960 440,206 441,822
2,337,018 2,048,517 2,457,437 1,760,449 1,436,045 1,346,750
2,563,103 2,667,481 2,571,601 2,231,745 2,072,356 2,068,263
2,342,553 2,531,049 2,399,347 1,830,576 1,304,234 1,380,407
1,497,474 1,642,722 1,766,853 1,718,898 1,473,496 1,521,741
1,636,183 1,704,213 1,838,646 2,103,630 2,017,904 2,018,304
1,072,275 1,119, 859 1,158,424 1,312,603 1,292,252 1,342,964
980,006 1,053,184 1,026,778 1,066,183 748,482 664,310
815,379 855,243 777,870 619,657 589,341 499,383
979,752 1,141,632 1,198,690 1,129,380 868,260 882,012
406,547 453,376 531,836 548,962 453,657 428,450
278,041 278,777 294,869 318,696 283,319 215,045
188,540 205,644 179,421 185,312 208,467 366,925
$ 16,763,909 $ 17,847,930 $ 19,415,583 $ 17,780,879 $ 14,423,209 $ 14,580,835
139
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 11
SALES TAX RATE DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
2001(0) 2002 2003 2004 2005 2006 2007(d) 2008 (e) 2009 if> 2010
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% 0.15% 0.15% 0.15% 0.25% 0.25% 0.25%
Regional Transit Authority 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.90% 0.90%
Metro 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.90% 0.90% 0.90% 0.90%
Crintinal Justice 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
Department of Revenue Administration Fee 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
Total Basic Combined Sales Tax Rate 8.80% 8.80% 8.80% 8.80% 8.80% 8.80% 8.90% 9.00% 9.50% 9.50%
SPECIAL SALES TAX RATES
Restaurants lb)
Motor Vehicles I °>
0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
0.00% 0.00% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%
Notes:
(al Effective April 1, 2001 King County increased the local sales & use tax rates two- tenths of one percent (.002).
This increase was the result of a vote by King County voters to increase funding for public transit systems.
(b) 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.
(c) 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.
1'1 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.
(e) 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.
t0 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.
140
CITY OF TUKWILA: 2010 CAFR
STATISTICAL SECTION
141
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 12
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Page 1 of 2
2001 20020> 2003 2004 2005
GOV ERNM ENTAL ACTIVITIES
General Obligation Bonds (d) $ 16,565,000 $ 15,847,000 $ 21,628,591 $ 20,806,553 $ 19,775,262
Special Assessments - - - -
Leases - - -
Total Governmental Activities 16,565,000 15,847,000 21,628,591 20,806,553 19,775,262
BUSINESS -TYPE ACTIVITIES
General Obligation Bonds - 5,772,500 5,382,500 4,972,500
Revenue Bonds 5,015,000 4,568,782 4,168,910 3,710,438 3,143,360
Public Works Trust Fund Loans 650,245 573,234 1,032,364 2,924,739 4,911,253
Leases - - - 108,818
Compensated Absences - 160,661 167,212 190,139 203,940
Total Business -Type Activities 5,665,245 5,302,677 11,140,986 12,207,816 13,339,871
TOTAL PRIMARY GOVERNMENT) $ 22,230,245 $ 21,149,677 $ 32,769,577 $ 33,014,369 $ 33,115,133
Population (°) 17,230 17,270 17,270 17,240 17,110
Per Capita Personal Income (c) $ 43,734 $ 44,153 $ 44,704 $ 49,533 $ 48,789
Percentage of Personal Income 2.95% 2.77% 4.24% 3.87% 3.97%
Debt Per Capita $ 1,290 $ 1,225 $ 1,897 $ 1,915 $ 1,935
Notes:
(a) For years 1999 through 2002, premiums and discounts were omitted on all bonds.
(b) Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements section.
(c) Reference SCHEDULE 17, Demographic Statistics, for population and personal income data.
" "" Data not available at time of publication.
(d) Includes amounts Due to Other Governments.
Sources:
City of Tukw ila Finance Dept., Department of Community Development, and Office of the City Clerk.
$50,000,000
$40, 000,000
$30,000,000
$20,000,000
$10,000,000
$-
Total Debt
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
142
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
Page 2 of 2
2006 2007 2008 2009 2010
$ 18,881,798 $ 17,946,335 $ 17,261,348 $ 22,453,003 $ 26,763,975
40,184
18,881,798 17,946,335 17,261,348 22,453,003 26,804,159
4,547,500 4,102,500 3,642,500 3,423,797 3,238,825
5,824,452 5,470,162 5,112,231 4,790,000 4,395,000
9,781,151 9,378,506 9,021,951 8,405,397 7,788,843
77,947 45,587 11,666
207,367 205,504 199,081 233,938 275,323
20,438,417 19,202, 259 17, 987,429 16,853,132 15, 697, 991
$ 39,320,215 $ 37,148,594 $ 35,248,777 $ 39,306,135 $ 42,502,150
17,930 18,000 18,080 18,170 19,107
$ 52,655 $ 57,409 $ 58,141 $ 56,904 * **
4.16% 3.59% 3.35% 3.80% * **
$ 2,193 $ 2,064 $ 1,950 $ 2,163 $ 2,224
143
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Debt Payable Ratio of Net Net
from Bonded Debt Bonded
Fiscal Gross Bonded Less Debt Enterprise Net Bonded to Assessed Debt per
Year Population Assessed Value Debt Service Funds Revenues() Debt Value Capita
2001 17,230 $ 3,344,045,742 $ 16,565,000 $ 410,844 $ $ 16,154,156 0.48% $ 938
2002 17,270 3,489,704,657 15,847,000 389,322 15,457,678 0.44% 895
2003 17,270 3,384,090,709 27,168,000 809,012 5,772,500 20,586,488 0.61% 1,192
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
Note:
(a) 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
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
144
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 14
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
AS OF DECEMBER 31, 2010
Jurisdiction
Net General Percentage Estimated
Obligation Debt Applicable to Applicable to
Outstanding Tukw ila Tukw ila
Direct:
City of Tukw ila $ 32,886,878 100.00% $ 32,886,878
Overlapping:
King County
King County Library
Port of Seattle
Tukw ila School District #406
Hospital District #1
Total Overlapping Debt:
1,140,426,000
131,901,411
335,500,000
28,246,703
37,255,000
1,673,329,114
Total Direct and Overlapping Debt: $ 1,706,215,992
Sources:
King County Office of Finance
King County Office of Assessments
1.40%
2.20%
1.40%
90.00%
5.00%
15,965,964
2,901,831
4,697,000
25,422,033
1,862,750
50,849,578
$ 83,736,456
100%
90%
80%
70%
60%
50%
40%
30% —
20% -I
10%
0%
Direct and Overlapping Debt
• City of Tukwila • King County • King County Library • Port of Seattle • Tukwila School District • Hospital District
145
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 15
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Page 1 of 2
2001
2002
2003
2004
2005
Debt Limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
$ 250,803,432 $ 261,727,848 $
16,154,156 15,457, 678
$ 234,649,276 $ 246,270,170 $
Assessed Value as of December 31, 2010
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
6.44%
5.91%
Legal debt margin
Source:
Tukwila Finance Department
146
253,806,804 $ 258,084,264 $ 270,791,907
26,358,988 24,866,638 23,407,761
227,447,816 $ 233,217,626 $ 247,384,146
10.39%
$ 4, 809, 486, 786
360,711,509
29,950,150
2,976,912
32,927,062
(7,939)
32,919,123
$ 327,792,386
9.64%
8.64%
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
Page 2 of 2
2006 2007 2008 2009 2010
$ 296,095,014 $ 333,768,277 $ 388,178,248 $ 373,048,810 $ 360,711,509
24,494,996 23,188,240 21,881,765 28,291,920 32,919,123
$ 271, 600, 018 $ 310, 580, 037 $ 366, 296,483 $ 344, 756, 890 $ 327, 792, 386
8.27%
6.95% 5.64%
7.58% 9.13%
147
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 16A
REVENUE BOND COVERAGE - WATER AND SEWER BONDS
LAST TEN FISCAL YEARS
Net Revenue
Fiscal Gross Operating Available for Debt Average Annual Debt Service Requirements Times
Year Revenue) Expenses(b) Service Principal Interest Total Coverages °>
2001 $ 6,944,496 $ 5,143,551 $ 1,800,945 $ 363,200 $ 148,711 $ 511,911 3.52
2002 7,108,468 5,808,561 1,299,907 358,214 139,047 497,261 2.61
2003 7,308,831 5,784,330 1,524,501 352,692 129,354 482,046 3.16
2004 7,746,252 5,876,411 1,869,841 345,000 119,647 464,647 4.02
2005 7,804,815 6,161,436 1,643,379 334,091 110,015 444,106 3.70
2006 8,052,850 6,418,607 1,634,243 285,162 116,973 402,135 4.06
2007 8,574,512 6,774,625 1,799,887 273,920 113,819 387,739 4.64
2008 8,854,566 6,099,295 2,755,271 271,337 105,850 377,187 7.30
2009 10,196,365 8,384,852 1,811,513 267,144 97,348 364,492 4.97
2010 9,833,857 8,196,277 1,637,580 261,612 88,884 350,496 4.67
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.
l0 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
8.00
6.00
Cove rage
Ratio
4.00
2.00
Water and Sewer Revenue Bonds
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
148
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 16B
REVENUE BOND COVERAGE - SURFACE WATER BONDS
LAST FIVE 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 45.13
2007 2,393,067 1,335,256 1,057,811 19,080 9,976 29,056 36.41
2008 2,765,320 1,133,871 1,631,449 19,453 9,614 29,067 56.13
2009 2,672,554 1,670,565 1,001,989 19,800 9,263 29,063 34.48
2010 3,141,153 1,833,245 1,307,908 20,153 8,902 29,055 45.01
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
100.00
80.00
Coverage 60.00
Ratio
40.00
20.00
Surface Water Revenue Bonds
2006 2007 2008 2009 2010
149
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 17
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Per Capita Number of Number of Tukw ila School
Fiscal Personal Personal Single - Family Multi - Family District Unemployment
Year Population Income 0) Income (b) Homes Units Enrollment Rate (')
2001 17,230 $ 43,734 $ 753,537 3,371 4,196 2,410
2002 17,270 44,153 762,522 3,433 4,196 2,474
2003 17,270 44,704 772,038 3,468 4,196 2,568
2004 17,240 49,533 853,949 3,732 4,107 2,628
2005 17,110 48,789 834,780 3,791 4,107 2,650
2006 17,930 52,655 944,104 3,838 4,107 2,698
2007 18,000 57,409 1,033,362 3,864 4,107 2,862
2008 18,080 58,141 1,051,189 3,884 4,107 2,769
2009 18,170 56,904 1,033,946 3,885 4,107 2,795
2010 19,107 ' "" 3,892 4,107 2,907
6.9%
8.3%
8.4%
7.0%
6.4%
5.7%
5.0%
5.9%
10.9%
11.7%
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 Panning Division, Department of Community Development
State of Washington Office of Financial Management
Washington State Employment Security Department
Tukw ila School District #406
US Bureau of Economic Analysis
Unemployment Rate
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
150
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 18
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Name of Company /Employer
Product or Business
2010 Full & Percentage of
Part -Time Total City
Employment Employees
2001 Full & Percentage of
Part -Time Total Gay
Employment Employees
Boeing Company
Group Health Cooperative
King County Metro
Costco Wholesale
Macy's
Carlisle Interconnect Technologies
Nordstrom, Inc.
Boeing Employees Credit Union
United Parcel Service
J.C. Penney
Sub -total - Major Employers
All Other Employment
Airplane company
Data Ctr /Lab /Pharmacy /Mfg.
Transit operating base
Cash /carry Warehouse
Department Store
Wire /Cable Connectors
Department Store
Banking /Credit Union
Postal Delivery Service
Department Store
7,319
1,782
631
566
532
496
493
418
394
371
13,002
29,327
17.29%
4.21%
1.49%
1.34%
1.26%
1.17%
1.16%
0.99%
0.93%
0.88%
12,121
350
700
380
347
235
375
499
222
390
15,619
30,850
TOTAL EMPLOYMENT
42,329
46,469
Source:
Tukw ila City Clerk's Office - Business Licenses
151
26.08%
0.75%
1.51%
0.82%
0.75%
0.5196
0.8196
1.07%
0.48%
0.84%
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 19
STAFFING LEVELS BY DEPARTMENT
LAST TEN FISCAL YEARS
2001 2002 2003 2004 2005 2006 2007 2008 2009 1 2010 1
DEPARTM ENT
Administrative Services (a) 22.25 21.75 21.75 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) 9.50 10.50 9.50 11.50 11.00 11.00 12.00 11.00 16.00 17.00
Human Resources e) - - - - - - 4.00 4.00
Finance 12.00 12.00 12.00 13.00 12.00 11.00 11.00 12.00 12.00 13.00
Recreation 23.75 17.75 20.50 20.25 22.00 22.50 23.50 23.50 22.50 20.75
Community Development 21.25 19.88 20.88 19.88 20.88 20.88 20.25 24.25 24.25 23.00
Court (a) - - - - - 9.75 8.75
Police 85.50 86.50 81.50 78.00 81.00 83.00 80.00 83.00 82.00 80.00
Fire 63.00 64.00 64.00 63.00 67.00 65.00 66.00 64.00 63.00 65.00
Information Technology (a) - - - - - - 7.00 8.00 8.00
Public Works 34.00 37.00 35.00 35.00 35.00 34.00 32.00 33.00 32.00 30.00
Parks 8.50 8.50 9.50 9.50 10.50 10.25 7.50 7.50 7.50 7.50
Street 9.00 9.00 10.00 11.00 11.00 10.00 11.00 12.00 12.00 11.00
Water 6.00 6.00 5.00 5.00 6.00 7.00 7.00 7.00 7.00 7.00
Sewer 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 1.00
Golf 9.50 9.50 9.50 9.50 9.50 9.25 9.25 9.75 9.75 10.00
Surface Water 6.00 5.00 5.00 5.00 7.00 7.00 7.00 8.00 8.00 7.00
Equipment Rental 4.00 4.00 4.00 4.00 4.00 5.00 4.00 5.00 5.00 5.00
TOTAL 324.25 321.38 318.13 316.38 329.63 329.63 327.25 335.75 331.75 325.00
Notes:
Based on filled positions not budgeted positions.
r) The departments for Human Resources, Court, City Clerk and Information Technology were previously reported under Administrative Services.
0) The department of City Clerk began reporting to the Mayor's department in 2009.
Sources:
Tukw ila Finance Department
Public Works
Information Technology
Fire
Staffing Levels by Department
Surface Water
Golf
Sewer
Water
Street
Parks
Equipment Rental
Council
Mayor
Human Resources
Finance
Recreation
Police
Community
Development
Court
152
2002 2004 2005 2008 2009 201f%I
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 20
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
1
FUNCTION
Police
Number of Calls for Service
Fire
Number of Responses
Total Fire Loss
Total Inspections
30,671 30,106 31,000 30,032 32,922 33,686 33,985 35,816 33,095 32,889
3,865 4,100 4,250 4,229 4,710 4,921 4,673 4,824 4,654 4,574
$1,995,850 $485,765 $910,655 $910,655 $1,414,741 $2,982,265 $3,065,005 $2,300,685 $1,934,596 $1,655,571
5,866 4,516 5,549 5,855 5,482 4,705 4,845 6,787 6,787 (8 1,550
Parks and Recreation
Class Participants 60,000 61,000 61,000 64,000 64,000 64,000 98,087 109,273 103,603 85,693
Community Ctr Admissions 43,600 35,500 30,800 35,150 33,750 34,850 90,141 117,533 134,183 134,275
Rounds of Golf Flayed 60,311 57,490 I'I 35,764 53,070 54,449 55,195 55,446 53,565 53,800 50,445
Pool Attendance `* ** 42,917 59,996 72,778 72,963 57,624 59,077 80,727 101,128
Street
Niles 77 77 79 79 79 79 79 79 79 79
Hours Maintaining * 13,425 14,587 13,706 15,243 16,970 17,540 19,840 22,140 20,360
Signalized Intersections 59 59 61 61 61 61 63 63 59 59
Fours Maintaining * 6,388 6,855 6,445 9,054 7,642 7,540 7,540 6,700 6,925
Water Utility Services
Total Customers 2,027 2,027 2,079 2,107 2,164 2,117 2,113 2,109 2,112 2,100
Total Gallons/Water(in
thousands) 693,116 683,065 702,364 765,000 886,000 789,981 680,649 660,915 731,469 630,755
Sanitary Sewer
Total Customers 1,622 1,622 1,671 1,698 1,710 1,720 1,718 1,684 1,694 1,699
Surface Water
Total Customers 5,019 5,019 5,015 5,064 5,100 5,107 5,156 5,164 5,204 5,207
Licenses
Business Licenses 2,159 2,247 2,262 2,292 2,286 2,354 2,350 2,523 2,422 2,454
Amusement Licenses 18 18 22 22 19 21 22 22 24 23
Permits
Building Permits 415 401 353 364 430 422 425 423 265 290
Mechanical Permits 218 238 183 182 193 239 238 256 159 160
Electrical Permits WA WA WA WA WA WA 758 1,533 821 955
Flumbing Permits WA WA N/A N/A WA 192 306 264 145 163
Public Works Permits 134 114 83 97 112 144 136 154 131 138
Libraries
Number of Libraries 2 2 2 3 3 3 3 3 3 2
Total Circulation 140,680 143,150 121,468 215,115 215,115 320,794 306,001 303,665 318,991 327,004
Notes:
(el Construction of new clubhouse completed and opened in 2003.
ml 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.
* Information not available.
** Pool facilities acquired from King County in 2003.
Sources:
Tukw ila Departments, King County Library System
153
CITY OF TUKWILA: 2010 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 21
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
FUNCTION
General Government
Total City Area (Square Miles)
Public Safety
Police:
Number of Vehicle Units
8.6 8.6 8.6 8.6 8.6 8.6 8.6 8.6 9.7 9.7
57 63 59 63 64 64 64 67 70 76
Fire:
Number of Fire Stations 4 4 4 4 4 4 4 4 4 4
Number of Engines /Rescue Trucks /Ladders 8 8 8 8 8 9 9 9 9 8
Number of Medical Aid Vehicles 2 2 2 2 2 2 2 2 2 2
Number of Hazardous Materials Trailer Units N/A N/A N/A N/A 1 1 2 2 2 2
Transportation
Paved Streets (lane miles) 163 163 163 163 163 163 163 163 178 178
Sidewalks (miles) 54 54 54 54 54 54 54 54 56 56
Number of Traffic Signals 55 55 55 55 55 55 57 57 59 59
Number of Streetlights Owned by Seattle City Light 1,180 1,180 1,180 1,180 1,180 1,180 1,180 1,180 1,180 1,335
Number of Streetlights Ow ned by Puget Sound Energy 670 670 670 670 670 670 670 670 696 696
Culture and Recreation
Parks Acreage (0 140 143 158 158 158 161 160 162 162 162
Number of Parks 12 13 15 15 15 16 18 18 18 18
Golf Course Acreage 67 67 67 67 67 67 67 67 67 67
Maintained Trails (miles) 11 11 11 11 11 11 11 11 15 15
Number of Playgrounds 11 11 13 13 13 13 13 13 11 11
Swimming Pool N/A N/A 1 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 2 2 2 3 3 3 3 3 3 2
Water
Water Distribution Mains (miles) 45 45 45 45 45 45 47 47 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) 509 509 513 527 533 537 555 572 541 542
Vehicles 6 6 7 6 7 7 8 8 8 8
Sewer
Sanitary Sewers (miles) 33 33 33 33 33 33 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 3 3 3 5 5 6 6 6
Surface Water
Storm Drains (miles) (b) 57 57 58 59 60 62 67 67 69 69
Vehicles 4 4 4 5 5 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.
(b) 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.
Sources:
Various Departments-Tukw ila
154