HomeMy WebLinkAbout2017 Comprehensive Annual Financial Report (CAFR); awe A n xa W,A
L
TUKWILA VILLAGE
+
City of Tukwila, Washington
VISION
The city of opportunity,
the community of choice
4
MISSION
To provide superior services
that support a safe, inviting and
healthy environment for our
residents, businesses and guests.
VALUES
STRATEGIC GOALS AND OBJECTIVES
Caring
Professional
Responsive
A community of inviting neighborhoods and vibrant business districts
+ Cultivate community ownership of shared spaces.
+ Build a broad and collaborative approach to preventing crime and increasing the sense of safety.
+ Focus City planning and investments on creating a connected, dynamic urban environment.
+ Use City efforts and investments to realize established visions for specific sub -areas.
A solid foundation for all Tukwila residents
+ Partner with organizations that help meet the basic needs of all residents.
+ Strive for excellent education, vocational supports, and personal growth opportunities
through effective partnerships and City services.
+ Encourage maintenance, improvements and diversity in the City's housing stock.
A diverse and regionally competitive economy
+ Embrace the City's economic potential and strengthen the City's role as a regional
business and employment center.
+ Strengthen the City's engagement and partnership with the business community.
A high -performing and effective organization
+ Use Tukwila's Vision, Mission, and Strategic Plan to focus and prioritize City efforts.
+ Advance Tukwila's interests through participation in regional partnerships.
+ Continue to develop as an organization and support individual growth.
+ Ensure City facilities are safe, efficient and inviting to the public.
+ Ensure the long-term fiscal sustainability of the City.
A positive community identity and image
+ Improve the City's ability to build trust and work with all members of the Tukwila community.
+ Facilitate connections among Tukwila's communities.
+ Promote a positive identity and image of Tukwila.
The City of Tukwila, Washington
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
For the Year Ended December 31, 2017
Prepared by the City of Tukwila, Finance Department
Peggy McCarthy, Finance Director
Allan Ekberg, MAYOR
TUKWILA CITY COUNCIL
Verna Seal, Council President
Dennis Robertson
De'Sean Quinn
Thomas McLeod
Kathy Hougardy
Kate Kruller
Zak Idan
CITY OF TUKWILA: 2017 CAFR TABLE OF CONTENTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31,2017
TABLE OF CONTENTS
1. INTRODUCTORY SECTION
Administrative Organizational SVnucbune, Principal Officials, and Council Committees 1
Letter of Transmittal 3
Certificate ofAchievement 0
Q. FINANCIAL SECTION
Auditor's Report 11
Management's Discussion and Analysis 15
Basic Financial Statements
Government -wide Financial Statements:
Statement of Net Position 31
Statement of Activities 32
Fund Financial Statements:
Ba|anueSheet—Governmenta|Fundo 33
Reconciliation ofthe Governmental Funds Balance Sheet tothe
Statement ofNet Position 34
Statement ofRevenues, Expenditures, and Changes in
Fund Balance — Governmental Funds 35
Reconciliation ofthe Statement ofRevenues, Expenditures, and Changes in
Fund Balances ufGovernmental Funds tothe Statement ofActivities 36
StatamantofNatPuaition—PropriataryFundo 37
Statement ofRevenues, Expenses, and Changes in
NatPuoiUon—ProprietaryFunda 38
Statement ofCash F|ovva — Proprietary Funds 30
Statement ofFiduciary Net Punition— Fiduciary Fund 41
StatamentofChangeoinFiduoiaryNetPoaiUun—FiduoiaryFund 42
Notes tothe Financial Statements 43
Required Supplemental Information:
Schedules ufRevenues, Expenditures, and Changes in
FundBa|anoos—BudgetandAotua|
General Fund 103
Notes tnthe Required Supplementary Information 104
Firemen's Pension Trust Fund 107
Retiree Medical and Long -Term Care Benefits for LEOFF|Employees 110
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet —Non-Major Governmental Funds 113
Combining Statement ofRevenues, Expenditures, and Changes in
Fund Balances —Non-Major Governmental Funds 114
Combining Balance Sheet— Non -Major Special Revenue Funds 115
Combining Statement ofRevenues, Expenditures, and Changes in
Fund Balances —Non-Major Special Revenue Funds 116
CITY OF TUKWILA: 2017 CAFR TABLE OF CONTENTS
TABLE OF CONTENTS - continued
Combining Balance Sheet —Non-Major Debt Service Funds 117
Combining Statement ofRevenues, Expenditures, and Changes in
Fund Balances —Non-Major Debt Service Funds 118
Combining Balance Sheet —Non-Major Capital Project Funds 110
Combining Statement ofRevenues, Expenditures, and Changes in
Fund Balances —Non-Major Capital Project Funds 120
Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual:
Arterial Street Capital Project Fund 121
Local Improvement District #33Debt Service Fund 122
Public Safety Plan Capital Project Fund 123
Hotel/Motel Special Revenue Fund 124
Drug Seizure Special Revenue Fund 125
Residential Street Capital Project Fund 126
Land & Park Acquisition Capital Project Fund 127
Facilities Urban Renewal Capital Project Fund 128
General Government Improvements Capital Project Fund 120
Fire Improvements Capital Project Fund 130
City Facilities Capital Project Fund 131
Special Assessment Bonds Guaranty Funds 132
Unlimited Tax General Obligation Debt Service Fund 133
Debt Service Fund 134
Combining Statements ufNet Position — Internal Service Funds 136
Combining Statement ufRevenues, Expenses, and Changes in
NatPonidon—|ntarna|SarvioaFunda 137
Combining Statement ofCash Flows —Internal Service Funds 138
StatamantofChangeainAoaabaandLiabi|iUea—AganoyFund 140
Ill. STATISTICAL SECTION
Schedule
Net Position byComponent 1 142
Changes inNet Position 2 144
Fund Balances, Governmental Funds 3 148
Changes inFund Balances ufGovernmental Funds 4 148
General Government Tax Revenues bySource b 150
Property Tax Levies and Collections 8 151
Assessed and Estimated Actual Value nfTaxable Property 7 152
Property Tax Rates — Direct and Overlapping Governments 8 153
Principal Property Taxpayers Q 154
Retail Sales Tax Collections bySector 10 156
Sales Tax Rate Direct and Overlapping Governments 11 158
Ratios ofOutstanding Debt byType 12 180
Ratios ofGeneral Bonded Debt Outstanding 13 182
Computation ofDirect and Overlapping Debt 14 183
Legal Debt Margin Information 15 164
Demographic Statistics 16 166
Principal Employers 17 167
Full -Time Equivalent City Government Employees byDepartment 18 168
Operating Indicators byFunction 19 168
Capital Assets byFunction 20 170
CITY OF TUKWILA: 2017 CAFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
ADMINISTRATIVE ORGANIZATIONAL STRUCTURE
AND PRINCIPAL OFFICIALS
CITIZENS OF TUKWILA
COUNCIL
MEMBERS
MAYOR
Allan Ekberg
C TY
ADMINISTRATOR
David Cline
MUNICIPAL
COURT
Kimberly Walden
J
1
CITY ATTORNEY
Kenyon Disend PLLC
(Contracted)
HUMAN
RESOURCES
Stephanie Brown
TECHNOLOGY
INFORMATION
SERVICES
Joseph Todd
FINANCE
Peggy McCarthy
J�
COMMUNITY
DEVELOPMENT
Jack Pace
FINANCE COMMITTEE
De'Sean Quinn, Chairperson
Dennis Robertson, Member
Kate Kruller, Member
PARKS AND
RECREATION
Rick Still
i
1
FIRE
Jay Wittwer
J ` J
COUNCIL COMMITTEES
COUNCIL PRESIDENT
Dennis Robertson
COMMUNITY DEVELOPMENT & NEIGHBORHOODS
Kate Kruller, Chairperson
Kathy Hougardy, Member
Zak Idan, Member
/ \
PUBLIC WORKS
Henry Hash
POLICE
Bruce Linton
J
TRANSPORTATION & INFRASTRUCTURE
Thomas McLeod, Chairperson
De'Sean Quinn, Member
Zak Idan, Member
PUBLIC SAFETY
Kathy Hougardy, Chairperson
Dennis Robertson, Member
Thomas McLeod, Member
1
CITY OF TUKWILA: 2017 CAFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
2
City of Tukwila
6200 Southcenter Blvd, Tukwila, WA 98188 Allan Ekberg, Mayor
June 27, 2018
Honorable Allan Ekberg, Mayor
Members of the Tukwila City Council
Citizens of Tukwila
City of Tukwila
6200 Southcenter Boulevard
Tukwila, Washington 98188-2599
Subject: TRANSMITTAL OF 2017 COMPREHENSIVE ANNUAL FINANCIAL REPORT
I am pleased to transmit the City of Tukwila's Comprehensive Annual Financial Report (CAFR) for the
year ended December 31, 2017. This transmittal letter provides an overview of the report and the
financial condition of the City. State law requires that cities publish financial statements annually 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.
The CAFR has several significant uses. First, it provides a general overview of the City's finances to the
general public and taxpayers. Second, it is used as a reference 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.
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 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.
3
CITY OF TUKWILA: 2017 CAFR LETTER OF TRANSMITTAL
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 Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). 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, 2016
provided no instances of material weaknesses in the internal control structure or significant violations of
applicable laws.
Management's Discussion and Analysis (MD&A) immediately follows the State Auditor's report and
provides a narrative introduction, overview, and analysis to accompany the basic financial statements.
This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.
PROFILE OF THE CITY
Incorporated in 1908, the City of Tukwila is in the heart of the Puget Sound region, 12 miles south of
downtown Seattle, 17 miles north of Tacoma, and one mile east of Seattle -Tacoma International Airport.
Tukwila has a small residential population of 19,660, making it the 55th largest of 281 cities in the State
of Washington. However, the daytime shopper/visitor and working population can reach over 150,000
during the holiday shopping season.
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 to serve a four-year term. Councilmembers are elected at large rather than by district
and are responsible for establishing the general guidelines and policies for the City. The Mayor appoints
the City Administrator as the City's chief administrative officer responsible for carrying out the policies
and direction set by the Mayor and City Council.
The City of Tukwila provides a full range of local government services. These services include police and
fire protection, emergency medical services, construction and maintenance of streets and traditional
municipal infrastructure, planning and zoning, park and recreational activities, and cultural events. In
addition, the City operates an equipment maintenance/rental fund. The City operates its own municipal
18-hole golf course and provides sewer, water, and surface water services. Tukwila has a municipal court
for traffic infractions, misdemeanors, and gross misdemeanors. Other jurisdictions provide jail services
to the City. Tukwila residents receive library services from the King County Library System.
Since the 2009-2010 biennium, the City has adopted a biennial budget in accordance with RCW 35A.34.
The Council is required to adopt a biennial budget prior to the first of each odd -numbered calendar year.
Budget reviews are conducted at mid -biennium and any changes for the second half of the biennium are
adopted by the City Council. The biennial budget serves as the foundation for the City of Tukwila's
financial planning and control. The budget is adopted at the fund level and any increases or decreases
to a fund must be authorized by Council. Appropriation changes within a fund may be authorized by the
Mayor. The General Fund, two special revenue funds, one debt service fund, and eight_capital project
funds are included in the biennially appropriated operating budget and have budget to actual statements
presented for 2017.
As demonstrated by the statements and schedules included in the financial section of this report, the city
continues to meet its responsibility for sound financial management.
4
CITY OrTUmw|uA: 2017CxFm LETTER 0rTRANSMITTAL
LOCALECONOMY
TUkvv|8 is 8 great p|8C8 for business. With nS8dv 40,000 j0bS, more people are employed in the City of
Tukwila than in 27 of the 39 counties in the State of Washington. Approximately one third ofthe jobs are
netoi|, one third are in manufacturing, and the remainder span everything from entertainment to real
estate.
Many well-known companies such as 8oeing. Cootoo and United Parcel Service employ thousands of
people in Tukwila. Further, Tukwila is home to the global headquarters of Boeing Employees Credit Union
(BECU). Continental Mills, Odin Brewing Connpmny, Red C)ct Corporation, 8obev Corporation, and
Seattle Chocolates. Tukwila isalso home tohundreds ofsmall businesses, many ofwhich are owned by
members 0fthe Citv'Sdiverse international community. The strong local economy iSevident inthe |0vv
unemployment rate of 3.5%' down significantly from m 1O-ymorhigh of11.7% in 2010.
Tukwila enjoys @ strong position inthe Puget Sound region 8Swell 8Sthe state OfWashington. TUkvv|8'S
location is at the crossroads of the 8tote'a most significant freeway network (the 1-5 and 1-405
intenuhanOu), and includes all nnodua ufpublic transportation. Tukvvi|a'a transit stations include the
COOnmnU[er Sounder train, Sound |Fr8nSit'S light rail, and the -[Ukvvi|8 l[r@nSi[ Center that all reinforce the
well -established advantages of Tukwila as an ennp|OyOneDt and retail hub. These major tn8nSpOM2hOn
systems, the strategic access to Seattle, Tacoma, Sea-Tac Airport, and the population base of the south
Puget Sound region provide 8 natural Setting for commercial and industrial activity.
Tukwila is m retail powerhouse with one of the largest local retail sales tax bases in the state of
VV8ShiOg0Jn. Anchored by Westfield GOuthDent8r' which is the largest no8U in the P8ChiC Northwest,
Tukwila generated o|rnoat $2.2 billion dollars in taxable retail ao|ea in 2017. The total natoi| sales tax
revenue amounted to$18.7million in2017.representing slight decrease from the $18.9million collected
in the prior year.
LONG-TERM FINANCIAL PLANNING
The city uses itssix-year financial planning model and Capital Improvement Program (C|P)8Slong-term
financial planning t0O|G. These tO0|G. along with regular review and revisions to the financial pO|iCi8S.
ensure the City incorporates current economic conditions and financial projections into its long-range
fiDBOCi8| p|8OS. In mid-2015, the City [8ViSSd its financial r8S8rV8 policy to increase the GHO8n3| Fund
reserve level from 10%tO 18%, and added @one-time 10% [eV8DU8 [eS8rV8 iDthe Contingency Fund.
These changes will 9nSun8 the Qtv'S pO|iCi8S are in alignment with the Government Finance Officers
Association's "Best Practices" and provide additional protection from future downturns in the economy.
The CitvS diversified revenue base is supported by an 2G88SS8d v2|u8UOn Of$O.2 biUi0n, which is an
inCr88S8 0f7396 from 2010. 8U0vvng the City to pursue G long-term CGpd8| investment program. The
Cih/'S2O17-2022Capital Improvement Program anticipates just over $2O0million iOgeneral government
capital projects, with only $11.2 million of that paid by City funding sources. These improvements are
vital to the 8nonOnnin health of the City which must continue to efficiently move 8nnp|Oy8es. ShOpperS,
and goods into and out ofthe area.
5
CITY OF TUKWILA: 2017 CAFR LETTER OF TRANSMITTAL
MAJOR INITIATIVES
The City made significant investments of time and financial resources into key public projects in 2017.
These projects represent Council's commitment to meeting their five Strategic Goals and Objectives:
• A community of inviting neighborhoods and vibrant business districts
• A solid foundation for all Tukwila residents
• A diverse and regionally competitive economy
• A high -performing and effective organization, and
• A positive community identity and image
The new $10 million pedestrian/bicycle bridge was finalized in 2017. The non -motorized bridge crosses
the Green River and provides a connection between Southcenter and the West Valley Highway area,
including the Tukwila Station (Sounder/Amtrak station). The pedestrian bridge was funded with a $6.87
million State Regional Mobility Grant from WSDOT, federal grant funds, park impact fees, and City
funding.
The City of Tukwila began construction on 42nd Avenue, which will include new street improvements,
drainage, curbs, gutters, and driveway adjustments. It will also bring new sidewalks and bike facilities to
this important residential corridor, as well as undergrounding various utility wires along 42nd. The project
includes building a new culvert at Gilliam Creek that will make the stream crossing fish passable and
improve roadway safety. The City issued bonds to cover the General Fund portion of the project, the
bulk of the financing. Surface Water fees collected by the City will pay for the culvert replacement portion,
and Seattle City Light and other communication utilities will cover a portion of the costs associated with
undergrounding the utilities.
Construction has also started on 53rd Avenue South, from South 137th St to South 144th Street, to improve
pedestrian and vehicle safety, drainage, and neighborhood revitalization. The project will include
residential street improvements such as curb, gutter, sidewalk, utility undergrounding, and illumination.
This project is anticipated to be complete in 2018, and will be funded by bonds, a state TIB grant, and
support from utility funds.
The City of Tukwila has an on -going extensive rehabilitation program in the Sewer Fund for the Southcenter
Commercial Business District. As the sewer mains are reaching their 50-year life span, the City has
budgeted over $1 million for 5 years to reline the asbestos concrete pipes in the Southcenter area. The
relining of the sewer pipes will extend the life span approximately 50 years and reinforce the strength with
little impact to the roadway and minimal excavation.
The City continued its partnership with Tukwila Village Development Associates (TVDA) to develop six
acres of City -owned land on Tukwila International Boulevard at South 144th Street, known as Tukwila
Village. In 2017 the King County Library System opened the new Tukwila Library and TVDA completed
the plaza and opened Kona Kai Coffee. Construction continued on two mixed -use apartment buildings
including 193 units for seniors which will open in 2018. TVDA will re -start construction on the remaining
two mixed -use senior apartment buildings in 2018 with scheduled openings in 2019 and 2020. When
fully open, the development will include 398 senior apartments and 4 live/work units, plus 13,000 square
feet of office and 16,000 square feet of retail in addition to the plaza and library. When completed, the
entire Tukwila Village project costs will be over $100 million.
Adjacent to Tukwila Village, the City substantially completed street and frontage improvements on South
144th Street between Tukwila International Blvd and 42nd Avenue South. This project includes a new
traffic signal next to Tukwila School District's Foster High School.
6
CITY OF TUKWILA: 2017 CAFR LETTER OF TRANSMITTAL
The Public Safety Plan continues to be a primary focus for the City, with voters approving $77 million in
bonds in 2016 to finance a new Justice Center, three fire stations, and replacement fire equipment and
apparatus. The design phase is moving forward, and properties have been identified for the new
structures. This project will remain a high priority.
AWARDS AND ACKNOWLEDGEMENTS
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 that ended December 31, 2016. This was the
30th consecutive year that Tukwila 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.
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 fiscally 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 2017 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,
Peggy McCarthy, CPA
Finance Director
7
CITY OF TUKWILA: 2017 CAFR LETTER OF TRANSMITTAL
8
CITY OF TUKWILA: 2017 CAFR LETTER OF TRANSMITTAL
Government Fin
leers Ass ration
Certificate of
Achieve ent
for Excellence
in Financial
Reporting
Presented to
City of Tukwila
Washington
For its Comprehensive Annual
Financial Report
r Fiscal Year Ended
ember 31, 2016
Exezutive Director/CEO
9
CITY OF TUKWILA: 2017 CAFR LETTER OF TRANSMITTAL
10
Office of the Washington State Auditor
Pat McCarthy
June 27, 2018
Mayor and City Council
City of Tukwila
Tukwila, Washington
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, each major fund and the aggregate remaining fund information of the City of Tukwila,
King County, Washington, as of and for the year ended December 31, 2017, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements as listed in the
table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in 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 from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
11
Insurance Building, P.O. Box 40021 • Olympia, Washington 98504-0021 • (360) 902-0370 • Pat.McCarthy@sao.wa.gov
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the City's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund
and the aggregate remaining fund information of the City of Tukwila, as of December 31, 2017, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and required supplementary information listed in the table of contents be
presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board who considers
it to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The combining financial statements and schedules are
12
presented for the purposes of additional analysis and is not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the financial statements. This
infoiuiation has been subjected to auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated, in
all material respects, in relation to the basic financial statements taken as a whole.
Our audit was conducted for the sole purpose of foiniing opinions on the financial statements that
collectively comprise the City's basic financial statements as a whole. The Introductory and Statistical
Sections presented for purposes of additional analysis and is not a required part of the basic financial
statements of the City. Such information has not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on it.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated June 27, 2018,
on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and other
matters. That report will be issued under separate cover in the City's Single Audit Report. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City's internal control over financial reporting and
compliance.
Sincerely,
242
Pat McCarthy
State Auditor
Olympia, WA
13
CITY OF TUKWILA: 2017 CAFR AUDITOR'S OPINION LETTER
14
CITY OF TUKWILA: 2017 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2017
The management discussion and analysis section of the City of Tukwila's Comprehensive Annual Financial Report
provides an overview of the City's financial activities for the year ended December 31, 2017. 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
• As of December 31, 2017, the City of Tukwila's total assets and deferred outflows of resources exceeded
liabilities and deferred inflows of resources by $307.0 million. Of this amount, $28.8 million represents
unrestricted net position, which may be used to meet the government's ongoing obligations to citizens and
creditors.
• The City of Tukwila's total net position increased $11.0 million, or 3.7%. Governmental activities increased
$6.3 million partially due to growth in property taxes to cover voted debt principal and interest. Business -type
activities increased $4.7 million due in part to rate increases in all three utility funds.
• At the close of the current fiscal year, the City of Tukwila's governmental funds reported combined fund
balances of $80.6 million, an increase of $4.5 million (6.0%). Approximately 22.4% ($18.0 million) of the fund
balance is available for spending at the City's discretion (unassigned fund balance).
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis is intended to serve as an introduction to the City of Tukwila's basic 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
This report also includes supplementary information intended to furnish additional detail to support the basic
financial statements.
Government -wide Financial Statements
The government -wide financial statements provide both long-term and short-term information about the City's
overall financial status, in a manner similar to private -sector business.
The Statement of Net Position presents financial information on all the City's Tukwila's assets, liabilities, and
deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the City of Tukwila is
improving or deteriorating.
The Statement of Activities presents information designed to show how the City's net position changed during the
year. The statement distinguishes revenue generated by specific functions from revenue provided by taxes and
other sources not related to a specific function. The revenue generated by the specific functions (charges for
services, grants, and contributions) is compared to the expenses for those functions to show the degree to which
each function 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. Items such
15
CITY OF TUKW|LA: 2017CAM MANAGEMENT'S DISCUSSION AND ANALYSIS
as (but not limited to) uncollected taxes, unpaid vendor invoices for goods or services received during the year, and
earned but unused vacation leave are included in the statement of activities as revenue and expenses even though
nncash has changed hands.
Both the government -wide financial statements distinguish functions of the City of Tukwila that are principally
supported bytaxes and intergovernmental revenues activities) from other functions that are intended
to recover all or o significant portion oftheir costs through user fees and charges (business -type activities). The
governmental activities of the City of Tukwila include general government (finance, executive, |ega|, court, and
human raoouroao), public safety (police and fine). physical onvironment, economic environment, tranaportadon,
mental/physical health, and culture and recreation. The City's business -type activities include a water, sewer, and
surface water uU|iUeo, and a municipal golf course. Governmental activities are primarily supported by taxes,
charges for services, and grants. Business -type activities are primarily self-supporting through user fees and
charges.
Fund Financial Statements
The annual financial report includes fund financial statements in addition to the government -wide financial
statements. Afund ioafiscal and accounting entity with aself-balancing set ofaccounts used toaccount for specific
activities or meet certain objectives. The City ofTukwila Funds are often set up in accordance with special
nsgu|aUono, restrictions or limitations. The City of Tukwila, like other state and local governmenba, uses fund
accounting to ensure and show compliance with finance -related legal requirements. The City'ofundo are divided
into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds are used to account for essentially the same functions that are reported as governmental
activities inthe government -wide financial statements. The governmental fund statements focus onthe near -term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end
of the year. The information in the governmental fund statements can be used to ava|uoba the Cih/'a 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 focus of governmental funds is narrower than that of the government -wide financial obatementn, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the govnrnment'widmfinannia| statements. By doing no, readers may better understand
the long-term impact of the government's near -term financing decisions. Both the governmental fund balance sheet
and the governmental fund statement of vevenueu, expenditures, and changes in fund bo|onoeu provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains fourteen individual governmental funds. Cfthese, four are considered major (the general fund,
the arterial street fund, the local improvement district #33 fund, and the public safety plan fund) and are presented
separately in the governmental funds' Balance Sheet and the governmental funds' Statement of Revenues,
Expenditures and Changes /n Fund Balances. The remaining governmental funds are combined into a single
column labeled "Other Governmental Funda.^ Individual fund data for each ofthese non -major governmental funds
is presented in the combining and individual fund statements and schedules section of this report.
The City maintains budgetary control over its operating funds through the adoption of a biennial budget. Budget
are adopted atthe fund level according bostate law. Abudgetary comparison schedule iopresented for the general
fund inthe Required Supplemental Information section nfthe report. Other budgetary comparison schedules are
included following the other governmental funds' combining statements in this report.
Proprietary funds are used by governments to account for their business -type activities and use the same basis
nfaccounting asutilized inprivate industry. Business -type activities provide specific goods nrservices tnagroup
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.
16
CITY OF TUKWILA: 2017 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
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. The same basis of accounting is used for proprietary
funds in both the government -wide and individual fund statements.
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 for active employees and LEOFF 1 retirees. Internal service fund activities are predominantly
governmental and have been included in the governmental activities columns of the government -wide statements.
Individual fund data for the internal service funds is provided in the form of combining statements in the combining
and individual fund statements and schedules section of this report.
Fiduciary funds are used to account for resources held for the benefit of parties outside of the government.
Fiduciary funds are not reported in the government -wide financial statements because the resources of those funds
are not available to support the City of Tukwila's own programs. The accounting used for fiduciary funds is much
like that used for proprietary funds.
The City maintains two different types of fiduciary funds. The Firemen's Pension Trust Fund is used to report
resources held in trust for retirees and beneficiaries covered by the Firemen's Pension plan. The agency fund
reports resources held by Tukwila in a custodial capacity for individuals, private organizations, and other
governments.
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 immediately
following the fund financial statements.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information including a budget and actual schedule for the City's general fund and schedules of
progress in funding its obligation to provide pension and OPEB benefits to its former employees. Additional pension
benefit information is found in Note 8.
The combining statements referred to earlier in connection with nonmajor governmental funds and internal service
funds are presented immediately following the required supplementary information on pensions and OPEB.
17
CITY OF TUKWILA: 2017 CAFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net position over time, may serve as a useful indicator of a government's financial position. In the
case of the City of Tukwila, assets and deferred outflows of resources exceeded liabilities and deferred inflows of
resources by nearly $307.0 million at the close of the most recent fiscal year. Total net position increased by $11.0
million (3.7%) when compared to 2016.
Current and other assets
Capital assets, net of
accumulated depreciation
Total assets
Deferred Outflows of Resources
Long-term liabilities
Net pension liability
Net OPEB obligation
Other liabilities
Total liabilities
Deferred Inflows of Resources
Net position
Net investment in
capital assets
Restricted
Unrestricted
Total net position
CITY OF TUKWILA'S NET POSITION
(in thousands)
Governmental Activities Business -type Activities
2017 2016 2017 2016 2017
Total)
$120,303 $112,308 $21,385 $20,741 $141,688
213,212 206,147
2016
$133,049
71,220 67,410 284,432 273,557
333,515 318,455
92,605 88,151 426,120 406,606
2,543 4,629
77,965 73,776
9,745 12,944
10,488 9,179
8,887 8,149
289 470 2,831 5,100
6,220 6,943 84,186 80,719
1,799 2,539 11,544 15,483
0 0 10,488 9,179
1,735 993 10,622 9,142
107,085 104,048
9,755 10,475 116,840 114,523
4,798 1,117
358 98 5,155 1,216
199,329 193,113 65,356 60,807 264,684 253,920
13,480 8,996 13,480 8,996
11,367 15,810 17,425 17,241 28,792 33051
$224,175 $217,91.9 882,781 $78,048 $306,958 $295:967'
By far, the largest portion of the City's net position ($264.7 million or 86.2%) reflects its investment in capital assets
(e.g., land, buildings, machinery, equipment, vehicles, and infrastructure), less any related outstanding debt that
was used to acquire those assets. The City uses these capital assets to provide a variety of services to citizens.
Accordingly, these assets are not available for future spending. Although investment in capital assets is reported
net of related debt, it should be noted that the resources used to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City's net position ($13.5 million or 4.4%) represents resources that are subject to
external restrictions on how they may be used. The business -type activities do not report any restrictions, so the
entire $13.5 million is restricted in governmental activities funds. The majority is related to land and park acquisition,
and street improvements. The remaining net position balance ($28.8 million, or 9.4%) is unrestricted and may be
used to meet the City's ongoing obligations to its citizens and creditors.
At the end of the current fiscal year, the City of Tukwila continued to report positive balances in all categories of net
position. The City's overall net position increased $11.0 million (3.7%) from the prior fiscal year. The reasons for
this overall increase are discussed in the following sections for governmental activities and business -type activities.
18
CITY OF TUKWILA: 2017 CAFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
CITY OF TUKWILA'S CHANGES IN NET POSITION
(in thousands)
Governmental Activities Business-
2017 2016 2017
ape Activities
2016
Iota
2017 2016
Revenues:
Program revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues
Property taxes
Sales and use taxes
Natural gas use tax
Hotel/Motel taxes
Utility taxes
Interfund utility taxes
Business taxes
Excise taxes
Investment earnings
Miscellaneous
Total revenues
Expenses:
General government
Public safety
Transportation
Physical environment
Culture and recreation
Economic environment
Interest on long-term debt
Water/sewer
Foster golf course
Surface water
Total expenses
Increase (decrease) in net position before
transfers
Transfers
Change in net position
Net position -beginning of period
Net position
.nd of period
$11,479 $11,904 $24,095 $22,963 $35,575 $34,867
2,446 1,079 8 25 2,454 1,104
6,127 5,001 834 768 6,961 5,769
17,668 14,563
18,807 18,908
17,668 14,563
18,807 18,908
737 710 737 710
4,175 4,046 4,175 4,046
2,266 2,147 - 2,266 2,147
2,698 2,716 - 2,698 2,716
5,381 6,509 - - 5,381 6,509
839 560 - 839 560
2,329 2,916 - 2,329 2,916
74,951 71,058 24,938 23,756 99,889 94,813
9,835 9,662 9,835 9,662
31,190 31,419 31,190 31,419
12,237 11,188 12,237 11,188
2,545 2,554 - 2,545 2,554
5,582 5,431 - 5,582 5,431
4,524 4,411 - 4,524 4,411
2,482 1,076 - 2,482 1,076
- 14,305 13,984 14,305 13,984
1,990 2,078 1,990 2,078
- 4,209 4,088 4,209 4,088
68,395 65,741 20,505 20,150 88,899 85,892
6,556 5,316 4,434 3,605 10,990 8,922
(300) (300)
300
300
0
6,256 5,016
217,919 212,903
224,175 $217,919
4,734
78,048
3,905
74,142
2,781 $78,047
10,990 8,922
295,967 287,045
306,956 $295,967
19
CITY OF TUKW|LA: 2017CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Governmental Activities
During the current fiscal year, net position for governmental activities increased $6.3 million (2.9Y6)fnom the prior
fiscal year for an ending balance of $224.2 million. The primary reasons for this increase are:
* Property taxes increased $31 million (21.3%)hnm the prior year. In 2018, voters approved an excess
property tax levy to be used for public safety purposes. This was the first year the City received the proceeds
from that levy.
° Grant revenues can fluctuate greatly from year to year, depending on several factors including duration of
capital pnojeoto, and purpose of the grants. In 2017. the City received 41.096 more governmental grant
revenue than 201G.Capital grants and contributions increased $1.1 million (22.596).and operating grants
increased $1.4 million (126.796). The Arterial Street Fund was the recipient nfSS.5 million ofthe total $8.6
million ingrant revenue in2017.
REVENUES BY SOURCE — GOVERNMENTAL ACTIVITIES
Otherrevenue
mhe,taxes
Saip�; and use taxes
Charges for services
zsm
Operating grants
contributions
s%
Property taxes
o%
�m
20
CITY OF TUKWILA: 2017 CAFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
PROGRAM REVENUES AND EXPENSES — GOVERNMENTAL ACTIVITIES
$30,000,000
$27,000,000
$24,000,000
$21,000,000
$18, 000, 0 00
$15, 000, 0 00
$12,000, 0 00
$9,000,000
$6,000,000
$3,000,000
so
M
Business -Type Activities
co
S
e,
Program revenues
• Expenses
For the City of Tukwila's business -type activities, the results for the current fiscal year were positive in that overall
net position increased by $4.7 million (6.1%) to reach an ending balance of $82.8 million. The overall growth is
attributable to the following factors:
• In the Water Utility, total net position increased by $0.5 million (2.5%). This resulted from a 5.0% commercial
rate increase effective January 1, 2017.
• In the Sewer Utility, total net position increased $2.3 million (14.0%) primarily due to a 5.0% rate increase
effective January 1, 2017, combined with a 10.3% reduction in operating and maintenance expenses.
• In the Surface Water Utility, operating revenues increased $0.3 million (5.1%) due to a 5.0% rate increase.
• Operating income in the enterprise funds was $3.5 million, an increase of 25.8% from the prior year, mostly
due to rate increases.
• Of the $82.8 million total net position, $17.4 million (21.0%) is unrestricted and each utility can utilize their
portion for any purpose. This operating balance is necessary for future planned infrastructure replacements
and repairs.
21
CITY OF TUKWILA: 2017 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
The following chart shows the relative net position balances for each business -type fund:
BUSINESS -TYPE NET POSITION - BY FUND
Foster golf
course
7%
4 6 %.
ater
24%
Sewer
23%
The majority of net position in the City's enterprise funds relate to capital asset infrastructure, such as water and
sewer mains, and the golf course land. As such, most of the net position is not available to support the ongoing
expenses of the funds. The following chart contrasts the total net position to the spendable portion of net position
for each enterprise fund:
22
CITY OF TUKWILA: 2017 CAFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
COMPARISON OF TOTAL NET POSITION TO SPENDABLE NET POSITION -BUSINESS-TYPE FUNDS
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
Surface water
Spendable/Unrst Net Position
Total Net Position
The following chart depicts the revenues and expenses for business -type funds:
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
so
BUSINESS -TYPE ACTIVITY REVENUES & EXPENSES
(before Capital Contributions & Transfers)
Water
Sewer
Surface Water
Foster golf course
Revenues
• Expenses
Foster Golf Course
23
CITY OF TUKWILA: 2017 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
FINANCIAL ANALYSIS OF GOVERNMENTAL FUNDS
The purpose of the City's governmental funds is to report on near -term inflows, outflows, and balances of spendable
resources. This information helps determine the City's financial requirements in the near future. Specifically,
unassigned fund balance may serve as a useful measure of a government's net resources available for discretionary
use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by
either an external party, the City of Tukwila itself, or a group or individual that has been delegated authority to assign
resources for use for a particular purpose.
As of December 31, 2017, the City's governmental funds had combined fund balances of $80.6 million, an increase
of $4.5 million (6.0%). The increase is primarily due to the issuance of $8.2 million in bonds in the Residential
Street Fund.
The change in fund balance for governmental funds compared to 2016 is as follows:
• General Fund $ 40,981
• Arterial Street Fund (562,939)
• Local Improvement District #33 (146,379)
• Public Safety Plan 211,793
• Other Governmental Funds 4,996,074
The general fund is the primary operating fund of the City. All receipts and payments of ordinary City operations
are processed through this fund unless they are required to be accounted for in another. At the end of 2017, the
general fund had a fund balance of nearly $19.1 million, with $18.0 million (94.5%) of the balance classified as
unassigned and available to meet the City's general obligations. Unassigned fund balance increased from $11.6
million in 2016 due to the reclassification of over $6.0 million in contingency fund balance which was reported as
assigned last year.
The arterial street fund decrease in fund balance is related to the planned use of reserves for capital projects. In
2017, a total of $9.5 million was spent on capital outlay.
The fund balance in the local improvement district #33 fund decreased by the difference between the special
assessment revenue received and the payment on the LID bonds issued.
The following chart shows the relative fund balances for governmental funds:
24
CITY OF TUKWILA: 2017 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
GOVERNMENTAL FUNDS — FUND BALANCES
Pishk Safety Kan fund
46%
Artevial street fund 1
4%
General fond
CapitA project. fond
Debt service funds
1%
The general fund revenue increase of $1.2 million is combined from the following sources:
$800,000
$600,000
$400,000
$200,000
$0
($200,000)
($400,000)
GENERAL FUND REVENUE INCREASES/DECREASES — BY SOURCE
Taxes
$687,828
Licenses a nd permits
$619,916
Charges for services
($239,499)
..............„..._,_
..............„..„........... .......................„............
„..............„....„.„......., . ..............
..„...... „.........,...
„„.....„„..................„
...„„.....„...„ .......„
,..................,.....,.,::.:::......,.........„....„.......:„...,,,....!..................:„......„.,.....„.„.,...,....„,......,.......,..,„,„.„...„„.......
.... ......„
................,„
„.........................„. ...........,...„.......;:„.......,........„,..........................................;..,„
..„„...,...„„„.„..„...
....„........................
...................
....................
„.....,...........
...........................„.
: ......................„
.---„.„........„. ........„...........
..............................
...........:,...„........;„....,................................,...,::.,
...........„.......„...... . .........„......
.................. .........................
. ............„....., .............................. ...........„.„..„...„,
................„......„..„...„...
....... ...
-.................
.....„..„............„......
.„..........„...„.„...„....
..........................................................„,.....,....,„...,.......,„..,::......................„........„:„....,.............„:....„...
..........„.„..„..
„........„.....„ .
.............„......... ..... .. ....
...................
.....................
.....................„.„.....
................„...........„.
.„,...„..........,............ ..................„.........
I nte rgove rnmental
$191,574
Fines and forfeitures
$6,757
I nvestment earnings
($2,760) Miscellaneous
($54,135)
25
CITY OF TUKWILA: 2017 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
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.
Unrestricted net position in business -type activities ended 2017 at $17.4 million, an increase of almost $200
thousand (1.1%) from 2016.
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
significant budget amendments that occurred in 2017:
• Additional grant revenue and expenditures of approximately $86,000 were appropriated for a temporary
FTE in the Police Records Unit.
• Increased funding for the Fire Department to cover:
o Two pipeline positions totaling $240,000
o Firefighter deployment to assist with hurricane recovery efforts - $125,000 (100% reimbursed)
o Increased costs for providing Emergency Medical Services - $35,000 (100% reimbursed)
• Reduction of $120,000 in Finance expenditures due to lower Risk Management costs
• Reduction of $120,000 in Community Development from vacancies
• Adjustments in transfers from the General Fund to other funds, including:
o $210,000 transfer to Fund 306 to pay project costs related to the City's Public Works Shops until
bonds are issued in 2018.
o $138,515 increase in transfer to the Contingency Fund in line with policy requirements.
Reasons for the significant variances in the general fund between the final budget and actual results include:
• Sales tax revenue was $1.2 million lower than budget. This continues a slight decline that started in 2015
and resulted in sales tax collections 1 % lower than 2016.
• Building permit revenue was (38%) over budget. This was due to a $28.5 million increase in the value of
permits issued.
• A $1.5 million transfer in from the Facilities/Urban Renewal fund was budgeted but did not occur because
an anticipated land sale did not happen in 2017 as funds were not needed.
• Expenditures were below budget by $2.7 million, or 4.5%. Specific examples include:
o $641 K in salary savings, plus associated benefit savings, with Police accounting for almost half of
the budget savings
o $119K in overtime savings, nearly all from the Fire Department
o $196K in claims and judgements in the Finance Department
o $252K in rents and leases
26
CITY OF TUKWILA: 2017 CAFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
CAPITAL ASSETS
The City's investment in capital assets for both its governmental and business -type activities as of December 31,
2017 totaled $ 284.4 million (net of accumulated depreciation), an increase of $10.9 million (4.0%) from 2016. This
investment in capital assets includes land, buildings, improvements, machinery and equipment, construction in
progress, utility transmission/distribution systems, roads, bridges, and infrastructure.
CITY OF TUKWILA'S CAPITAL ASSETS (net of depreciation)
GoernmentaI Activities
2017 2016
Business -Type Activities
2017 2016
Total
2017 2016
Land
Buildings
Other Improvements
Machinery and Equipment
Infrastructure
Construction in Progress
Total
$ 36,172, 319
11,115,434
9,835,029
7,264,337
139,281,317
9,543,935
$ 13,212,371
2
35,498,580
11,834,146
10, 528, 019
7,111, 094
131,110, 688
10,064,699
206147,226
2,396,230 2,346,230 $ 38,568,549 37,844,810
7,935,440 8,307,234 19,050,874 20,141,380
58, 046, 974 54,158, 840 67, 882, 003 64, 686, 859
378,464 386,113 7,642,801 7,497,207
- 139,281,317 131,110,688
2,462,779 2,211,229 12,006,714 12,275,927
71 ,887 67,409,646 $284,432,258 273,556,872
.219
More detailed information on capital assets is provided in Note 6 to the financial statements.
General capital outlay purchases added $197,322 in machinery and equipment and included various technology
purchases in the amount of $86,037 Parks & Recreational equipment for $24,683, Police and Fire equipment
totaling $57,032 and Street Division speed alert radar devices in the amount of $22,679.
Many of the projects in the Arterial Street Fund continue to be in the construction phase adding $9.5 million in
construction -in -progress for the period. The major arterial street fund activities are comprised of the following:
• TUC Pedestrian/Bicycle Bridge, $4.5 million
• S 144th St Phase II (42nd Ave S — TIB), $1.8 million
• Interurban Ave S, $0.97 million
• Baker Blvd Non -Motorized Improvements, $0.78 million
• Beacon Ave S Bridge Improvements, $0.73 million
• Various other Arterial Street Fund projects total $0.78 million
Major construction projects completed in 2017 added $15.1 million to capitalized infrastructure for the Arterial Street
Fund which included the TUC Pedestrian/Bicycle Bridge with total overall previous and current years' construction -
in -progress costs totaling $9.2 million; S 144th St Phase II (42nd Ave S — TIB) with costs of $2.3 million; and, Baker
Blvd Non -Motorized Improvements at $0.78 million.
Ongoing Residential Street Fund construction projects added $3.5 million to construction -in -progress and include
the following:
• 42nd Ave S — Phase III, $1.9 million
• Cascade View Safe Routes to School, $1.3 million
• 53rd Ave S, $0.25 million
Projects completed in 2017 for the Residential Street Fund include Cascade View Safe Routes to School with total
overall previous and current years' construction -in -progress costs of $1.5 million.
Land Acquisition, Recreation & Park Development activities consist of $187k for the Cascade View Park Playground
and Dog Parks work in progress projects. Both projects were completed in 2017 with total overall current year
construction costs of $146k and $32k and capitalized into parks improvement infrastructure.
27
CITY OF TUKWILA: 2017 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Other governmental funds' activity in the areas of facilities improvements provided an additional $77k to
construction -in -progress work for the year.
The new Public Safety Plan Funds for the Fire Stations, Justice Center and Public Works Shops had work in
progress activity totaling $1.3 million.
Business -type activities consisted of $5.9 million in added construction in progress work for the year. Major projects
in the utility funds comprise of the following:
• 40th — 42nd Ave S, $1,263,382
• Andover Park East Waterline, $3,280,517
• 2017 Small Drainage, $588,276
A total of $794,461 in other utility construction projects were added to construction -in -progress during the current
period.
Major construction projects completed in 2017 include Andover Park East Waterline and 2017 Small Drainage
projects with total overall previous and current years' construction -in -progress costs of $4.5 million and $0.7 million,
respectively, which have both been capitalized into utilities infrastructure.
LONG-TERM DEBT
At the end of the current fiscal year, the City had total bonded debt outstanding of $63.6 million, excluding the
premium on bonds issued. Of this amount, $59.2 million is general obligation bonds which is backed by the full
faith and credit of the City, $1.5 million is revenue bonds for the water/sewer and surface water utilities, $4.4 million
in public works trust fund loans, and the remaining $4.8 million is special assessment bonds which were issued to
improve access to the City's urban center.
The City issued $8.5 million (including premium) in general obligation debt in 2017 to finance two transportation
projects in the Residential Street Fund. This new debt issuance, combined with redeemed debt, resulted in an
overall general obligation bond increase of $5.1 million.
The City currently maintains a rating of "AA" with Standard and Poor's and Fitch's Investor Service, and "Aa3" with
Moody's for its general obligation debt.
The following schedule summarizes the City's long-term debt:
CITY OF TUKWILA'S LONG-TERM DEBT
Governmental Activities Business -type Activities Total
2017 2016 2017 2016 2017 2016
General obligation bonds
Revenue bonds
Premium on bonds issued
Special assessment bonds
Public Works Trust Fund Loans
Due to other governments
$ 59,214,505 $ 54,114,977 $ -
4,447,881 4,380,732
4,805,000
5,914,400
74,381,786 $
$ 59,214,505 $ 54,114,977
1,454,422 1,597,704 1,454,422 1,597,704
4,447,881 4,380,732
5,412,500 - - 4,805,000 5,412,500
4,447,523 5,046,991 4,447,523 5,046,991
6,093,556 - - 5,914,400 6,093,556
70,001,765$ 5,901,945 $ 6,644,695 $ 80,283,731i $ 76,646,460
More detailed information on long-term debt, including debt limitations, is provided in Note 10 to the financial
statements.
28
CITY OF TUKWILA: 2017 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
ECONOMIC FACTORS AND THE UPCOMING BIENNIAL BUDGET
The following economic factors currently affect the City of Tukwila and will be considered in developing the 2019-
2020 biennial budget:
• The City's 2017 assessed value of $6.2 billion is 7.3% higher than 2017 and its growth reflects positively
on the local economy.
• Sales Tax is the City's largest revenue source and was conservatively estimated to increase 7.5% in 2017
and an additional 2.9% in 2018. However, actual 2017 sales tax came in $1.2 million (6%) under budget,
so this revenue source is being closely monitored to see if there is a trend developing.
• A significant focus of the 2019-2020 biennium will be the Public Safety Plan. The voters approved
construction of a new Justice Center, 3 new fire stations, and fire equipment/apparatus purchases as part
of a $77 million bond issued in 2016. The design phase of the projects are moving forward, and significant
financial shortfalls have been identified. The City is currently working to identify options for filling the funding
gap including potential new revenue sources, reductions to programs, and additional borrowing.
• Rate increases of 5% annually are scheduled in the Water utility from 2017-2022 to cover the cost of
purchasing water from the Cascade Water Alliance and maintain the utility's infrastructure. An additional
increase of 3.5% in sewer rates is scheduled for 2018.
• National Pollutant Discharge Elimination system (NPDES) permit requirements have significant costs for
the surface water fund, which will result in a 5% rate increase in 2019 and 3% in 2020 for that utility.
The City's reserve policy specifies that the General Fund ending fund balance shall equal or exceed 18% of the
previous year's operating revenues. The policy also requires that a 10% minimum fund balance be maintained for
the Contingency Fund. The biennial budget complies with both these requirements.
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.
29
CITY OF TUKWILA: 2017 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
30
CITY OF TUKWILA: 2017 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET POSITION
DECEMBER 31, 2017
Governmental Business -Type
Activities Activities
Total
ASSETS:
Cash and cash equivalents $ 25,846,613 $ 12,391,603 $ 38,238,215
Investments 10,059,606 6,446,801 16,506,406
Taxes receivable 6,209,050 847 6,209,897
Other receivables 1,768,835 2,163,043 3,931,878
Due from other governmental units 1,640,733 8,435 1,649,167
Inventory of materials and supplies 18,761 53,879 72,641
Restricted cash and cash equivalents 34,200,272 86,445 34,286,717
Restricted investments 10,553,628 10,553,628
Notes receivable 7,171,448 233,890 7,405,338
Real property held for resale 5,293,000 5,293,000
Investment in joint ventures 9,311,805 - 9,311,805
Non -depreciable capital assets 45,716,254 4,859,009 50,575,263
Depreciable capital assets (net of accumulated
depreciation) 167,496,117 66,360,878 233,856,995
Net Pension asset 8,229,168 8,229,168
Total Assets 333,515,288 92,604,829 426,120,118
DEFERRED OUTFLOWS OF RESOURCES:
Deferred loss on refunding
Deferred outflows related to pensions
Total Deferred Outflows Of Resources
257,647
2,284,942
37,836 295,484
250,796 2,535,738
2,542,589
288,632 2,831,222
LIABILITIES:
Accounts payable 4,084,878 1,428,463 5,513,341
Accrued wages and benefits payable 1,840,214 169,709 2,009,923
Accrued interest payable 456,114 15,765 471,879
Unearned revenue 86,974 16,130 103,104
Other liabilities 2,418,496 105,354 2,523,850
Bonds and other debt payable
Due within one year 4,276,996 750,669 5,027,665
Due in more than one year 73,688,295 5,469,673 79,157,968
Net pension liability 9,745,053 1,799,011 11,544,064
Net other post employment obligation 10,487,883 - 10,487,883
Total Liabilities 107,084,903 9,754,773 116,839,677
DEFERRED INFLOWS OF RESOURCES:
Deferred inflows related to pensions 3,927,242 357,509 4,284,751
Business taxes received in advance 870,425 870,425
Total Deferred Inflows Of Resources 4,797,667 357,509 5,155,176
NET POSITION:
Net investment in capital assets
Restricted for:
Debt service
Tourism promotion
Arterial street improvements
Drug investigation and enforcement
Land and park acquisition, development
Fire improvements
Public safety facilities
Unrestricted net position
Total Net Position
199,328,694 65,355,778 264,684,471
5,799,275
1,139, 775
146,762
227,244
3,856,032
7,210
2,303,769
11, 366, 545
17,425,401
5,799,275
1,139, 775
146,762
227,244
3,856,032
7,210
2,303,769
28,791,946
$ 224,175,307 $ 82,781,179 $ 306,956,486
The notes to the financial statements are an integral part of this statement.
31
CITY OF TUKWILA: 2017 CAFR
BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2017
ram:revenues:
pens e).evenue and Changes in Nei
barges Operating Capital Grants Gcvernrnental. Business -Type Total
FrrServices - Grants and and Activities. Activities
Contributions Contributions
n-
FUNCTIONS / PROGRAMS:
PRIMARY GOVERNMENT
Governmental activities
General Government
Public safety
Transportation
Physical environment
Culture and recreation
Economic environment
Interest on long-term debt
Total Governmental Activities
BUSINESS -TYPE ACTIVITIES:
Water
Sew er
Surface w ater
Foster golf course
Total Business -Type Activities
Total Primary Government
$ 9,835,290 $ 4,144,986
31,190,347 1,540,863
12,236,551 2,206,908
2,545,144
5,582,038 1,315,740
4,523,596 2,270,759
2,481,559
68,394,526 11,479,258
6,553,626 6,841,271
7,751,799 9,739,694
4,209,325 6,200,589
1,989,972 1,313,871
20,504,722 24,095,424
$ 127,967 $
607,851
1,597,857
37,015
75,308
5,894,908
13,436
218,536
2,445,998 6,126,880
216,339
327,675
8,435 290,379
8,435 834,392
$ (5,562,337)
(29,041,633)
(2,536,878)
(2,531,708)
(4,010,746)
(2,177,529)
(2,481,559)
(48,342,390)
503,984
2,315,570
2,290,077
(676,101)
4,433,529
$ (5,562,336)
(29,041,633)
(2,536,878)
(2,531,708)
(4,010,746)
(2,177,529)
(2,481,559)
(48,342,389)
503,984
2,315,570
2,290,077
(676,101)
4,433,529
$ 88,899,247 $ 35,574,682 $ 2,454,433 $ 6,961,272 $ (48,342,390) $ 4,433,529 $ (43,908,860)
General Revenues:
Taxes
Property taxes
Retail sales and use taxes
Hotel/motel taxes
Utility taxes
lnterfund utility taxes
Business taxes
Excise Taxes
Unrestricted investment earning
Miscellaneous
Total General Revenues
Excess of revenues over expenses
before transfers
Transfers
Change in net position
Net position - beginning
Net position -ending
$ 17,667,590
18,807,201
736,784
4,175,013
2,265,747
2,698,352
5,380,662
838,630
2,328,565
54,898,542
6,556,152
(300,000)
6,256,152
217,919,155
$ 224,175,307
4,433,529
300,000
4,733,529
78,047,650
$ 82,781,179
$ 17,667,590
18,807,201
736,784
4,175,013
2,265,747
2,698,352
5,380,662
838,630
2,328,565
54,898,542
10,989,682
(0)
10,989,682
295,966,805
$ 306,956,486
The notes to the financial statements are an integral part of this statement.
32
CITY OF TUKWILA: 2017 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2017
Local Public Other Total
General Arterial Improvement Safety Governmental Governmental
Fund Street District #33 Flan Funds Funds
ASSETS:
Cash and cash equivalents $ 9,486,158 $ 349,039 $ 752,342 $ 484,286 $ 9,560,303 $ 20,632,129
Investments 6,322,974 - 531,560 6,854,534
Taxes receivable 5,794,797 143,659 - 270,594 6,209,050
Other receivables 476,965 1,140,105 - 64,060 15,481 1,696,611
Due from other governmental units 308,537 1,158,263 - 173,933 1,640,733
Restricted assets:
Cash and cash equivalents 8,406 2,270,778 - 25,903,447 6,017,641 34,200,272
Investments 10,553,628 - 10,553,628
Special assessment receivable 4,315,171 - 4,315,171
Notes receivable 927,373 378,882 - 1,250,000 300,022 2,856,277
Real property held for resale - - 5,293,000 5,293,000
Total Assets $ 23,325,210 $ 5,440,726 $ 5,067,514 $38,255,421 $ 22,162,534 $ 94,251,405
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES:
Liabilities:
Accounts payable
Accrued w ages & benefits
Unearned revenue
Other liabilities
Total Liabilities
Deferred inflow of resources
Unavailable revenue -special assessment
Business taxes received in advance
Unavailable revenue -property tax, other
Unavailable revenue -developer agreement
Total Deferred Inflow Of Resources
Fund balance:
1,007,908 1,499,428
1,779,550 23,268
86,974
178,270 85,857
3,052,702 1,608,553
280,501 1,081,735
11,490
126,119
280,501 1,219,345
3,869,573
1,814, 308
86,974
390,246
6,161,101
4,315,171 - - 4,315,171
870,425 - - - - 870,425
329,358 - 24,370 353,728
395,737 - 1,250,000 313,368 1,959,104
1,199,783 395,737 4,315,171 1,250,000 337,738 7,498,428
Nonspendable 927,373 - 927,373
Restricted:
Hotel/motel tax - - - - 1,139,775 1,139,775
Residential street improvements - - - 5,794,233 5,794,233
Arterial street capital improvements - 2,270,778 - - - 2,270,778
Drug investigation and enforcement - - - 227,244 227,244
Park and land acquisition/development - - 3,856,032 3,856,032
Public safety facilities - - 36,457,066 - 36,457,066
Fire improvements - 7,210 7,210
Debt service guraranty fund - - - 668,849 668,849
Debt service public safety plan - - - - 62,913 62,913
Local Improvement District - - 752,342 - 752,342
Assigned:
Residential street improvements - - - 382,185 382,185
Arterial street improvements 1,165,659 - - 1,165,659
Drug Seizure - - - 72 72
Land & park acquisition - - - 47,724 47,724
Facilities & urban renewal - 7,498,169 7,498,169
General government improvements - - - 368,801 368,801
Public safety facilities - - - 267,854 - 267,854
1 % Arts - - 164,000 164,000
Technology 105,000 - - - 105,000
Debt service - - 388,245 388,245
Unassigned 18,040,352 - - 18,040,352
Total Fund Balance 19,072,725 3,436,437 752,342 36,724,920 20,605,452 80,591,877
Total Liabilities, Deferred Inflow s And
Fund Balances $ 23,325,210 $ 5,440,726 $ 5,067,514 $38,255,421 $ 22,162,535 $ 94,251,406
The notes to the financial statements are an integral part of this statement.
33
CITY OF TUKWILA: 2017 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2017
Total
Governmental
Funds
Total governmental fund balances as reported on this statement $ 80,591,877
Capital assets used in governmental activities are not financial resources and therefore not reported in the
funds.
Non -depreciable assets
Depreciable assets (net)
Internal service fund assets
The net pension asset is not an available resource and, therefore, is not reported in the funds.
Deferred outflow of pension costs
Deferred inflow of pension contributions
The City has an equity interest in two joint ventures. This equity interest for the provision of governmental services
is not a current financial resource and therefore is not reported in the funds.
Revenue that was not collected within the recognition period and therefore was not available to pay current liabilities:
Unavailable revenue reported for propertytax and other receivables
Unavailable revenue reported for developer agreement
Unavailable revenue reported for special assessment
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
Long term liabilities due in more than one year
Unfunded other post employment benefits
Accrued interest payable
Deferred outflow on refunding
Internal service fund net position exclusive of capital assets, deferred outflow of pension costs and deferred
inflow of pension contributions which are included with other reconciling items above
Internal service funds are used by management to charge the cost of certain activities, such as
health insurance and fleet maintenance, to individual funds. The assets and liabilities of these
internal service funds are included in governmental activities in the statement of net position.
45,716,254
162,371,313
5,124,804 213,212,371
8,229,168
2,284,942
(3,927,242) (1,642,300)
353,728
1,959,104
4,315,171
(4,276,996)
(83,153,922)
(10,487,883)
(456,114)
257,647
9,311,805
6,628,003
(98,117,267)
5,961,651
Net Position Of Government Activities As Reported On The Statement Of Net Position $ 224,175,306
The notes to the financial statements are an integral part of this statement.
34
CITY OF TUKWILA: 2017 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, 2017
Local Public Other Total
General Arterial Improvement Safety Governmental Governmental
Fund Street District #33 Plan Funds Funds
REVENUES:
Taxes $ 46,574,589 $ 912,333 $ - $ - $ 4,168,153 $ 51,655,075
Licenses and permits 2,749,137 - - - - 2,749,137
Intergovernmental 4,690,257 6,686,896 - 1,362,621 12,739,774
Charges for services 3,046,606 1,725,249 500,000 495,373 5,767,228
Fines and forfeitures 325,216 - - 325,216
Investment earnings 230,784 16,910 240,710 258,283 80,176 826,864
Special assessments - - 478,838 - 478,838
Miscellaneous 160,309 701,034 1,511 79,930 942,784
Total Revenues 57,776,899 10,042,421 721,059 758,283 6,186,253 75,484,915
EXPENDITURES:
Current:
General government 9,358,235 - 227,316 9,585,551
Economic environment 4,098,765 - - - 515,262 4,614,027
Physical environment 1,733,400 - - 1,733,400
Public safety 29,968,635 - 564,521 366,256 30,899,412
Culture and recreation 4,395,696 - - 268,433 4,664,129
Transportation 3,026,013 2,860,118 646,064 6,532,195
Debt service:
Principal 607,500 3,106,428 3,713,928
Interest - - 259,939 2,343,930 2,603,869
Capital outlay 117,679 9,545,242 998,969 4,099,825 14,761,715
Total Expenditures 52,698,423 12,405,360 867,439 1,563,490 11,573,514 79,108,226
Excess (deficiency)of revenues
Over(Under)Expenditures 5,078,476 (2,362,939) (146,379) (805,207) (5,387,261) (3,623,311)
OTHER FINANCING SOURCES (USES):
Transfers in 300,000 1,800,000 - 1,017,000 3,237,496 6,354,496
Transfer out (5,337,496) - (1,317,000) (6,654,496)
General obligation bonds issued - - 10,456,000 10,456,000
Bond prerrtium - - - 356,839 356,839
Payment of refunded debt - - - (2,250,000) (2,250,000)
Gain/(loss) on sale of assets held for res 1 - (100,000) (99,999)
Total Other Financing Sources And
Uses (5,037,495) 1,800,000 1,017,000 10,383,335 8,162,840
Net change in fund balances 40,981 (562,939) (146,379) 211,793 4,996,074 4,539,529
Fund balance- beginning 19,031,744 3,999,376 898,722 36,513,127 15,609,378 76,052,348
Fund Balance - Ending $ 19,072,725 $ 3,436,437 $ 752,342 $ 36,724,920 $ 20,605,452 $ 80,591,877
The notes to the financial statements are an integral part of this statement.
35
CITY OF TUKWILA: 2017 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, 2017
Net change in fund balances per the Statement of Revenues, Expenditures, and Changes in Fund Balances
Amount reported as change in net position in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. In the current period, these amounts are:
Capital Outlay 14,761,715
Adjustments to construction in progress
Donated capital assets 69,901
Capital asset disposal (3,325)
Depreciation Expense (excludes internal service fund depreciation which is reflected in internal
service fund change in net position listed below) (8,179,837)
Excess of Capital Outlay Over Depreciation Expense
The net effect of various transactions involving the Citys pension plans are:
Reduction in pension liability and expense
Increase in pension contribution revenue
Reduction in the Fireman's Pension liabilityand expense
The City has equity interests in two joint ventures. The equity interests for the provision of governmental
services are not current financial resources and therefore are not reported in the funds.
Repayment of long-term debt is reported as an expenditure in governmental funds, but the repayment
reduces long-term liabilities in the Statement of Net Position. In the current year, these amounts
consist of:
Bond principal retirement
Amortization expense
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases
long-term liabilities in the statement of net position.
General Obligation Bonds issued
General Obligation Bonds issued
Internal service funds are used by management to charge the costs of certain activities to indi
The change in net position of internal service funds is reported with governmental activities.
dual funds.
1,565,517
515,721
134,176
5,963,928
289,690
$ 4,539,529
6,648,454
2,215,414
123,010
6,253,617
(356,839)
(10,276,800)
(408,767)
Because some revenues will not be collected for several months after the Citys fiscal year ends,
theyare not considered "available" revenues in the government funds. Changes this year are for:
Miscellaneous receivables 59,495
Developer agreements (852,667)
Property taxes 76,273
Special assessment (478,838) (1,195,736)
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
Amortization of deferred outflow on bond refunding
Increase in compensated absences
Increase in unfunded other post employment benefits
Total additional expense (increase) decrease
(100,767)
(66,613)
190,696
(1,309,047)
(1,285,731)
Change In Net Position On The Statement Of Activities
$ 6,256,152
The notes to the financial statements are an integral part of this statement.
36
CITY OF TUKWILA: 2017 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2017
Governmental
Foster Surface Total Activities
Water Sewer Golf Water Enterprise Internal
Utility Utility Course Utility Funds Service Funds
Current assets:
Cash and cash equivalents $ 3,973,370 $ 3,561,217 $ 572,915 $ 4,284,100 $ 12,391,603 $ 5,214,483
Investments 2,161,812 4,284,988 - 6,446,801 3,205,071
Taxes receivable - - 847 847 -
Other receivables 550,121 1,034,564 578,358 2,163,043 72,224
Due from other governmental units - - 8,435 8,435
Inventory of materials and supplies - 53,879 53,879 18,760
Current assets restricted
Cash and cash equivalents 23,825 62,620 - 86,445
Total Current Assets 6,709,128 8,880,770 690,262 4,870,893 21,151,052 8,510,538
Noncurrent assets:
Notes receivable - 233,890 - - 233,890 -
Capital assets
Land 87,347 69,525 1,609,575 629,783 2,396,230 -
Building 1,416,567 3,364,962 6,627,496 1,875,395 13,284,419 Other improvements 24,597,361 16,635,380 3,559,992 49,044,818 93,837,552
Machinery and equipment 801,031 1,249,131 110,829 56,139 2,217,130 15,973,404
Less: accumulated depreciation (11,434,627) (8,622,535) (6,400,487) (16,520,574) (42,978,223) (10,848,599)
Construction in progress 193,367 301,308 1,968,104 2,462,779
Total capital assets (net of
accumulated depreciation) 15,661,045 12,997,771 5,507,405 37,053,666 71,219,887 5,124,804
Total Noncurrent Assets 15,661,045 13,231,661 5,507,405 37,053,666 71,453,777 5,124,804
Total Assets
Deferred Outflow s of Resources
Deferred pension
Deferred Loss on Refunding
Total Deferred Outflows Of Resources
22,370,174 22,112,430 6,197,666 41,924,559 92,604,829 13,635,342
60,358
9,837
70,195
35,613
23,458
59,071
63,721
63,721
91,104
4,540
95,644
250,796
37,836
288,632
38,954
38,954
LIABILITIES:
Current Liabilities
Accounts payable 373,132 55,280 2,135 997,916 1,428,463 215,305
Accrued wages and benefits 41,202 23,828 35,983 68,696 169,709 25,906
Accrued interest payable 2,528 7,485 5,751 15,765
Unearned revenue 6,568 9,562 16,130
Other current liabilities 19,935 27,629 57,690 100 105,354 811,300
Due to other governments 95,080 233,436 270,953 599,468
Compensated absences - 1,542 1,542 -
Revenue bond payable 38,911 92,789 17,959 149,659 -
Total Current Liabilities 577,356 440,447 95,807 1,372,479 2,486,089 1,052,511
Noncurrent liabilities:
Reserve for unreported claims 1,216,950
Revenue bonds payable 339,238 808,953 156,572 1,304,763 Net pension liability 432,958 255,461 457,077 653,515 1,799,011 279,426
Compensated absences 117,637 33,029 70,818 95,372 316,855
Due to other governments 527,116 1,730,014 1,590,925 3,848,055
Total Noncurrent Liabilities 1,416,949 2,827,457 527,895 2,496,383 7,268,684 1,496,376
Total Liabilities 1,994,305 3,267,904 623,702 3,868,863 9,754,773 2,548,887
Deferred Inflow s of Resources
Deferred inflow pension earnings 84,934 50,885 90,954 130,736 357,509 55,427
Total Deferred Inflow s Of Resources 84,934 50,885 90,954 130,736 357,509 55,427
NET POSITION:
Net investment in capital assets 14,670,538 10,156,038 5,507,405 35,021,798 65,355,778 5,124,805
Unrestricted 5,690,592 8,696,675 39,327 2,998,807 17,425,401 5,945,177
Total Net Position $ 20,361,130 $ 18,852,713 $ 5,546,731 $ 38,020,604 $ 82,781,179 $ 11,069,982
The notes to the financial statements are an integral part of this statement.
37
CITY OF TUKWILA: 2017 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2017
Water
Utility
Sew er
Utility
Foster
Golf
Course
Surface
Water
Unity
Total
Enterprise
Funds
Governmental
Activities
Internal
Service Funds
OPERATING REVENUES:
Charges for services
Other operating revenue
Total Operating Revenues
$ 6,774,385 $ 9,706,584 $ 1,202,283 $ 6,147,930 $ 23,831,182 $ 8,522,957
3,969 - 107,208 160 111,337 114,545
6,778,355 9,706,584 1,309,491 6,148,090 23,942,519 8,637,501
OPERATING EXPENSES:
Operating & maintenance 4,316,007 5,616,964
Administrative and general 724,537 623,175
Taxes 979,237 1,107, 991
Depreciation and amortization 519,778 367,729
Total Operating Expenses 6,539,560 7,715,858
Operating Income (Loss) 238,795 1,990,725
NON -OPERATING REVENUE (EXPENSE):
Investment earnings 62,912 33,110 4,380
Interest expense (14,066) (35,941)
Gain (loss) on disposal of capital assets 4 -
Other non -operating revenue
Total Non -Operating Revenue (Expense) 48,850 (2,830) 4,380
Income (Loss) Before Contributions & Transfers 287,645 1,987,895 (676,101)
1,435,736
181,399
59,348
313,489
1,989,972
(680,481)
1,842,352
643,643
688,572
1,019,917
4,194,484
1,953,606
52,938
(14,841)
(440)
8,435
13,211,060
2,172, 754
2,835,148
2,220,912
20,439,874
3,502,645
153,341
(64,848)
(436)
8,435
7,950,371
458,576
833,469
9,242,416
(604,914)
95,639
100,509
Capital contributions 216,339 327,675
Transfers in 300,000
46,093 96,492
1,999,699 3,599,137
290,379
834,392
300,000
196,148
(408,767)
Change in Net Position 503,984 2,315,570 (376,101)
Total net position - beginning 19,857,146 16,537,143 5,922,833
Total Net Position - ending
2,290,077 4,733,529
35, 730, 527
(408,767)
78,047,649 11,478,749
$ 20,361,130 $ 18,852,713 $ 5,546,731 $ 38,020,604 $ 82,781,179 $ 11,069,982
The notes to the financial statements are an integral part of this statement.
38
CITY OF TUKWILA: 2017 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2017
Page 1 of 2
Governmental
Foster Surface Total Activities
Water Sewer Golf Water Enterprise Internal
Utility Utility Course Utility Funds Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $ 6,642,015 $ 9,432,575 $ 1,309,492 $ 6,041,224 $ 23,425,306 $ 8,591,726
Cash paid to supplier (4,108,599) (5,966,291) (745,386) (612,296) (11,432,573) (1,204,753)
Cash paid for taxes (979,237) (1,107,991) (59,348) (688,572) (2,835,148) (1)
Cash paid to or on behalf of employees (798,896) (466,415) (946,234) (1,267,642) (3,479,187) (7,130,160)
Other cash received (paid) 3,969 - 8,012 160 12,141 -
Net Cash Provided (Used)
By Operating Activities 759,252 1,891,878 (433,464) 3,472,874 5,690,539 256,811
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Operating grant received - 8,435 8,435
Transfers in - 300,000 - 300,000
Net Cash Provided (Used) By Non -
Capital Financing Activities - 300,000 8,435 308,435
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Purchase of capital assets (1,926,517) (1,473,226) (16,043) (2,565,907) (5,981,693) (1,250,161)
Contributed capital 216,339 327,675 - 104,998 649,011 -
Capital grants - - - 241,768 241,768
Principal payment on debt (132,333) (322,271) - (288,146) (742,750)
Interest payment on debt (14,410) (39,553) - (15,660) (69,622) -
Proceeds from sale ofequipment - - - 100,509
Other 31,833 (20,742) - (60,987) (49,896) -
Net Cash Provided (used) for Capital
And Related Financing Acivities (1,825,089) (1,528,116) (16,043) (2,583,934) (5,953,182) (1,149,652)
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from sale of investments - - - 135,000
Purchase of investments - (3,900,000) - - (3,900,000) (513,494)
Interest received 35,687 158,795 4,380 52,938 251,800 171,089
Net Cash Provided (Used) In Investing Activities 35,687 (3,741,205) 4,380 52,938 (3,648,200) (207,405)
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 -customer deposits
Total Cash and cash equivalents
(1,030,150) (3,377,444) (145,127) 950,313 (3,602,409) (1,100,246)
5,027,345 6,938,662 780,662 3,333,787 16,080,456 6,314,729
$ 3,997,195 $ 3,561,217 $ 635,535 $ 4,284,100 $ 12,478,047 $ 5,214,483
3,973,370 3,561,217 572,915 4,284,100 12,391,603 $ 5,214,483
23,825 62,620 - 86,445
$ 3,997,195 $ 3,561,217 $ 635,535 $ 4,284,100 $ 12,478,047 $ 5,214,483
The notes to the financial statements are an integral part of this statement.
39
CITY OF TUKWILA: 2017 CAFR
BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2017
Page 2 of 2
Governmental
Foster Surface Total Activities
Water Sewer Golf Water Enterprise Internal
Utility Utility Course Utility Funds Service Funds
RECONCILIATION OF NET OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)..... $ "::::238,7 5 ": ::1.990,72568 481),,:$ ":7953,606 $';:: 502,645':::' (604,f 4)
Adjustments to reconcile operating income to net cash
Provided (used) by operating activities:
Depreciation 519,778 367,729 313,489 1,019,917 2,220,912 833,469
Asset (increase) decrease:
Accounts receivable (116,476) (274,009) 2,571 (106,706) (494,620) (45,775)
Inventory and other - (421) (421) (3,487)
Deferred outflow of resources (increase) decrease 31,094 30,608 45,368 70,388 177,458 25,394
Liability increases (decreases):
Accounts payable 186,293 (154,313) (899) 735,967 767,048 107,588
Other liabilities (57,597) - 5,442 (18,090) (70,245)
Wages & benefits payable 3,108 32,139 5,468 28,406 69,120 6,208
Deferred inflow of resources increase (decrease) (45,744) (101,001) (124,000) (210,614) (481,359) (61,671)
Total Adjustments 520,457 (98,848) 247,017 1,519,268 2,187,894 861,725
Net Cash Provided (Used) By Operating Activities $ 759,252 $ 1,891,878 $ (433,464) $ 3,472,874 $ 5,690,539 $ 256,811
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Increase (decrease) in fair value of investment
Total Non Cash investing, Capital and
Financing Activities
- $ (58,819)
$ $ (58,819) $ 45,429
$ (58,819) $ $ - $ (58,819) $ 45,429
The notes to the financial statements are an integral part of this statement.
40
CITY OF TUKWILA: 2017 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF FIDUCIARY NET POSITON
FIDUCIARY FUND
DECEMBER 31, 2017
Firemen's
Tension Agency
Trust Fund Fund
ASSETS:
Cash and cash equivalents $ 925,014 $ 311,398
Investments 515,702
Customer accounts - 2,934
Interest receivable 1,771
Total Assets 1,442,486 314,332
LIABILITIES:
Accounts and other payables
Total Liabilities
NET POSITION:
Net Position Restricted for Pensions
The notes to the financial statements are an integral part of this statement.
- 314,332
314,332
1,442,486
$ 1,442,486
41
CITY OF TUKWILA: 2017 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUND
FOR THE YEAR ENDED DECEMBER 31, 2017
Firemen's
Pension
Trust Fund
ADDITIONS:
Contributions from nonemployer entities:
Fire Insurance Premiums Transferred in $ 68,709
Investment earnings/(loss) (320)
Total Additions 68,389
DEDUCTIONS:
Benefit payments $ 51,486
Administrative expenses 3,500
Total Deductions 54,986
Change In Net Position 13,403
Net position - beginning
Net Position - ending
1,429,083
$ 1,442,486
The notes to the financial statements are an integral part of this statement.
42
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2017
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of the City of Tukwila conform to generally accepted accounting principles as
applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard
setting body for establishing governmental accounting and financial reporting principles. The City's significant
accounting policies are described in this note.
A. The Reporting Entity
The City of Tukwila was incorporated on June 23,1908 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 councilmembers, 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 City of Tukwila has no component units (either blended or discretely presented) included in these statements.
B. Basis of Presentation
The City's basic financial statements consist of government -wide statements, including a statement of net position
and a statement of activities, and fund financial statements which provide a more detailed level of financial
information.
Government -wide Financial Statements
The statement of net position and the statement of activities report information on all of the nonfiduciary activities
of the City. The activity of the internal service funds is eliminated to avoid "doubling up" revenues and expenses.
The statements distinguish between governmental activities and business -type activities.
The statement of net position presents the financial condition of the governmental and business -type activities of
the City at year-end. The statement of activities presents a comparison between direct expenses and program
activity of the City. Direct expenses are those specifically associated with a service, program, or department and
therefore clearly identifiable to a particular function. Indirect costs are included in the program expense reported for
individual functions and activities.
The statement of activities reports the expenses of a given function offset by program revenues directly connected
with the functional program. A function is an assembly of similar activities and may include portions of a fund or
summarize more than one fund to capture the expenses and program revenues associated with a distinct functional
activity. Program revenues include charges paid by the recipient of the goods or services offered by the program,
grants and contributions that are restricted to meeting the operational or capital requirements of a particular program
and interest earned on grants that is required to be used to support a particular program.
For identifying 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.
43
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
Revenues which are not classified as program revenues are presented as general revenues of the City, with certain
limited exceptions. The comparison of direct expenses with program revenues identifies the extent to which each
business segment or governmental function is self-financing or draws from the general revenues of the City.
Fund Financial Statements
During the year, the City segregates transactions related to certain City functions or activities in separate funds in
order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed
to present financial information of the City at this more detailed level. The focus of governmental and enterprise
fund financial statements is on major funds. Each major fund is presented in a separate column. Non -major funds
are aggregated and presented in a single column. Internal service funds are combined and the totals are presented
in a single column on the face of the proprietary fund statements. Fiduciary funds are reported by type. While
fiduciary funds are excluded from the government -wide statements, they are included in the fund financial
statements.
C. Fund Accounting
The accounts of the City are organized on the basis of funds; each of which is considered a separate accounting
entity. Each fund is accounted for with a separate set of self -balancing accounts that are comprised of assets,
deferred outflow of resources, liabilities, deferred inflow of resources, fund equity, revenues and expenditures or
expenses, as appropriate. The City's resources are allocated to - and accounted for - in individual funds according
to the purpose for which they are spent and how they are controlled. There are three categories of funds:
governmental, proprietary and fiduciary.
Governmental Funds
All governmental funds are accounted for on a "flow of current financial resources" measurement focus. Their
reported fund balance is considered a measure of "available spendable resources." Governmental fund operating
statements focus on measuring changes in current financial position, rather than net income; they present increases
(revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance.
The following are the City's major governmental funds:
• The general fund accounts for all 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. The general fund receives
the bulk of its revenues from local taxes, followed by State shared revenues, service charges, and other
income.
• The Arterial Street fund was established in accordance with RCW 82.36.020 for the administration of the
State -levied motor vehicle half -cent gasoline tax distributed to Tukwila and is used primarily to account for
capital arterial street projects. In addition to the State -levied motor vehicle gasoline tax, other revenue
includes state and federal grants, impact fees, and transfers in from the general fund.
• The Local Improvement District (LID) #33 accounts for assessments related to the LID and provides payment
to the Fiscal Agent for principal and interest on bonds issued in November 2013.
• The Public Safety Plan fund was established in 2016 after voters approved a $77.4 million bond measure to
construct a justice center, rebuild 3 fire stations, and provide for life -cycle replacement of fire department
apparatus and equipment.
The other governmental funds of the City, account for the proceeds of specific revenue sources that are segregated
to ensure that expenditures are made exclusively for qualified purposes.
44
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
Proprietary Funds
The City of Tukwila maintains two different types of proprietary funds. Enterprise funds are used to report the same
functions presented as business -type activities in the government -wide financial statements. 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 position.
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 internal and external 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.
Restricted assets shown in the government -wide financial statements and the proprietary funds balance sheet
include monies reserved for payment of revenue bond debt, and deposits held for utility and golf course customer
accounts. When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed.
The City's enterprise funds account for utility and golf course operations, which are self -supported through user
charges. The enterprise activities are financed and operated like a private business enterprise, which requires
periodic determination of revenues earned, expenses incurred, and net income for capital maintenance, public
policy, management control and accountability. The City's major enterprise funds are as follows:
• Water Utility Fund accounts for operations and capital improvements to provide water services to the City.
• Sewer Utility Fund accounts for operations and capital improvements to provide sanitary sewer services to
the City.
• Foster Golf Course Fund is used to account for the operation, maintenance, and improvements of the
municipal golf course facility.
• Surface Water Utility Fund accounts for the operations and capital improvements for the City's storm drainage
and surface water management function.
The City has three internal service funds. The Equipment Rental Fund is used to account for the costs of maintaining
and replacing all City vehicles and auxiliary equipment. All equipment costs, including depreciation, are factors in
calculating the rates charged to each user department. The Insurance and Insurance — LEOFF I Funds are used to
account for the costs of the City's self -insured medical plan for active employees and retired LEOFF I employees
respectively. Medical and dental costs for covered employees are charged to the respective user departments. All
premiums, medical and dental costs and ancillary charges are included.
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 and accounts for pension costs for firefighters who qualify for a City pension prior to 1971. The
agency fund is custodial in nature (assets equal liabilities) and does not involve a measurement of results of
operations. Fiduciary funds are excluded from the government -wide financial statements.
45
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
D\Measurement Focus
Government -wide Financial Statements
The government -wide financial statements are prepared using the economic resources measurement focus. All
assets, deferred outflow of resources, |iobi|itiao, and deferred inflow of resources associated with the operation of
the City are included on the Statement of Net Position.
Fund Financial Statements
All governmental funds are accounted for using aflow of current financial resources measurement focus. With this
measurement focus, only current assets, oumsnt|iebi|ities.anddefernadinOowofreoouroesgeneraUyaveinduded
on the balance sheet. The statement ofrevenues, expenditures and changes in fund balances reports on the
sources (ie., revenues and other financing sources) and uoao /ie., 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
reconciliation with brief explanations to better identify the relationship between the government -wide statements
and statements for governmental funds.
Like the government -wide statements, aUpnophetaryandinhanna|msnvicefundtypeoanaaocounbedforonaflowof
economic resources measurement focus. All assets and all liabilities associated with the operation of these funds
are included on the statement ofnet position. The statement ofchanges in activities presents inonmeaea (ie.,
revenues) and decreases (i.e., expenses) in net total position. The statement ofcash flows provides information
about how the City finances and meets the cash flow needs of its proprietary activities.
Fiduciary funds are reported using the economic resources measurement focus.
E. Basis of Accounting
Basis of accounting refers to the recognition of revenues and expenditures or expenses in the accounts and
reporting them in the financial statements. Government -wide financial statements are prepared using the accrual
basis of accounting. Governmental funds use the modified accrual basis of accounting. Proprietary and fiduciary
funds use the accrual basis ofaccounting.
Reveouea—Exohonge and Transactions
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal wa|ue, 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 Qty, available means expected to be received within sixty (00) days of year-end. The primary
accrued revenues that meet these criteria are na|ea, real oatate, and utility taxes.
Non -exchange transactions, in which the City receives value without directly giving equal value in return, include
property taxes, oa|oo and use taxen, admission taxen, gambling taxao, utility taxes, hotel/motel taxeo, grants,
enhUemento, and donations. These revenues are on an accrual basis. On the accrual baaia, 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 one levied. (See Note 3 on receivables).
46
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
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 from the government -wide financial statements
via the process of consolidation. Internal service fund and similar internal activity has also been eliminated from the
government -wide statement ofactivities, so expenses are not reported bmima. Exceptions tothis general rule are
payments for interfund services provided and used, such as between the City'awater. sevver, 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 ino|ude, 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 fuUovvad 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 inthe 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 ooda, biennial budgets are adopted for the general fund and special revenue funds. For governmental
fundo, there are no substantial differences between the budgetary basis and generally accepted accounting
principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial statements
include budgetary comparisons for biennially budgeted governmental funds only. Budgets established for
proprietary and fiduciary funds are "management budgets" and are not legally required to be reported and, as such,
are not reported inthe CAFR.
The biennial appropriated budgets are adopted at the fund level and the budgetsconstitute 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 oonbn| davina, the subsidiary ledgers monitor
expenditures for individual functions and activities by object class. Any unexpended appropriation balances lapse
atthe end ofthe biennium.
The City ufTukwila's budget procedures are mandated by RCVV 354.33. The ob*po in the budget process are an
1) Prior to November 1 on even numbered years, the Mayor submits a proposed budget tothe 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 onthe proposed budget inNovember. Public hearings are also
held in December, if necessary.
3) The Council makes its adjustments tothe proposed budget and adopts byordinance afinal 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, byordinance, any amendments that increase the total for the fund. Budget amounts
presented in the financial schedules include both the original amounts and the final amended budget as approved
47
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
by the City Council. The final budget is the original budget adjusted by all reserves, transfers, allocations,
supplemental appropriations, and other legally authorized changes applicable to the fiscal year.
Expenditure Categories
General Government Includes administration, finance, municipal court, attorney, and city clerk
activities.
Public Safety Includes all police and fire activities.
Physical Environment Includes expenditures for the public works activities not chargeable to the
enterprise funds.
Transportation Includes all street and arterial street maintenance and construction.
Economic Development Reflects the planning and building inspection activities.
Culture and Recreation Includes the parks and recreation activities.
G. Assets, Liabilities, and Fund Equity
Cash and Cash Equivalents
The government's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-
term investments with original maturities of three months or less from the date of acquisition.
Investments
Investments are held separately by each fund with interest earned directly for the benefit of each fund. Investments
are reported in the financial statements at fair value, based on quoted prices in accordance with GASB Statement
No. 72, Fair Value Measurement and Application. 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 2.
Notes Receivable
Notes receivable in the enterprise funds consists of sewer connection fees due from customers to the utility. In the
governmental funds, it consists of the special assessment as well as developer agreements, of which the City
currently has two current developer agreements.
Amounts Due to and From Other Funds and Governments, Interfund Loans and Advances Receivable
Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal
year are referred to as either "interfund loans receivable/payable" or "advances to/from other funds." Any residual
balances outstanding between the governmental activities and business -type activities are reported in the
government -wide financial statements as "internal balances." As of December 31, 2017, there are no residual
balances outstanding between the governmental activities and business -type activities.
The non -current portion of interfund loans in the general fund and advances between funds, as reported in the fund
financial statements, are offset by a fund balance nonspendable account in applicable governmental funds to
indicate they are not available for appropriation and are not expendable available financial resources. See Note 4
on interfund transactions.
48
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
Special Assessments
Special assessments are amounts levied against benefited properties to recover costs associated with the
construction of Local Improvement District (LID) projects. A lien is recorded against benefited properties until the
assessment has been paid. Special assessments receivable represents all outstanding assessment amounts
including current assessments billed but not collected, delinquent assessments unpaid at year-end, and special
assessment amounts due in future years, which are recorded in a deferred inflow of resources account in the fund
financial statements. Since special assessments are secured by liens against related properties, no allowance for
uncollectible amounts is made.
Inventories
Inventory is defined as items purchased for resale to external customers or other City departments or supplies and
small tools used in normal operations that are considered material in amount. The inventory amount on this year's
financial statements reflect only those items that will be resold. Inventory held for resale is valued at lower of cost
or market and there is a physical inventory count taken annually at year-end.
Governmental funds use the purchase method whereby inventory items are considered expenditures when
purchased.
Real Property Held for Resale
Governmental funds do not report property, plant, and equipment because such assets normally are used in
operations, and therefore will never be available for spending (they are not financial assets). However, specific
items of property occasionally are acquired with the intent of sale. Examples include foreclosure properties,
redevelopment properties, and donated assets held for resale rather than retained for use in operations.
Governments often acquire redevelopment properties to attract private -sector investment in an economically
depressed area and are willing to sell the property at a price that may be far less than the government's cost to
acquire and improve the property. Since assets held for sale can never be reported at an amount higher than their
net realizable value, any cost in excess of net realizable value must be excluded from the property value reported
in the financial statements.
The City acquired a number of redevelopment properties in its urban renewal area along Tukwila International
Boulevard. For the Tukwila Village project, property acquisition began in 1999. The City acquired and cleared a
total of 5.76 acres. In 2012 the City executed an agreement to sell the property to a developer and closed escrow
on the sale of the first phase in 2017. The first phase is currently under construction and will be completed in 2018.
As part of a crime -reduction project, the City purchased three crime -ridden motels in 2014 plus another motel and
retail shop in 2015. All structures on those properties were demolished in 2016 and the vacant land will be sold for
redevelopment. All redevelopment properties are reported at net realizable value in the financial statements.
Deferred Outflows /Inflows of Resources
Deferred outflow of resources represents a consumption of net position by the government that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has
two items that qualify for reporting in this category. The City reports a deferred outflow related to pension and a
deferred loss on refunding water/sewer bonds.
Deferred inflow of resources represents an acquisition of net position by the government that applies to a future
period(s) and will not be recognized as an inflow of resources (revenue) until that time. The City has two items that
qualify for reporting in this category. The City reports business taxes that are received in advance and a deferred
inflow related to pensions.
49
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
Capital Assets and Depreciation
The accounting and reporting treatment applied to the capital assets associated with a fund are determined by its
measurement focus. Capital assets acquired in governmental funds are accounted for as expenditures in the fund
when the asset is purchased. These assets are reported in the governmental activities column of the government -
wide statement of net position but are not reported in the fund financial statements. Capital assets utilized by the
proprietary funds are reported both in the business -type activities column of the government -wide statement of net
position and in the respective funds.
All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and retirements
during the year. Where historical cost is not known, assets are recorded at estimated historical costs. Donated
assets are recorded at acquisition value at time of acquisition. The City maintains a capitalization threshold of five
thousand ($5,000) dollars. The City's infrastructure consists of roads, bridges, storm sewers, water and sewer
distribution and collection systems. Improvements are capitalized while 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:
ervi
Buildings
Non -Building Improvements
Machinery and Equipment
Intangibles
Infrastructure
See Note 6 for additional information on capital assets.
Other Liabilities
25 to 50 years
25 to 50 years
2 to 50 years
2 to 50 years
25 to 50 years
Other liabilities include retainage, deposits and the incurred -but -not -reported (IBNR) claims and claim reserve for
the self -insured healthcare funds. The self-insurance fund for active employees includes an IBNR liability of
$737,600 determined using actuarial methods. This liability is multiplied by a factor of 2.5 to meet the City's financial
goal of maintaining reserves at 1 x IBNR for claim fluctuations plus 1.5 x IBNR for a claims reserve yielding a total
liability of $1,844,000. The self-insurance fund for LEOFF 1 retirees includes an IBNR liability of $73,700 and total
liability of $184,250 utilizing the same calculations as the active employees' self-insurance fund.
Compensated Absences
City policy and labor contracts with City of Tukwila employees call for the accumulation of vacation and sick leave.
At termination of employment, employees with the required length of service may receive cash payments for all
accumulated vacation leave to a maximum of 384 hours. Sick leave termination benefits are based on a percentage
of accumulated sick leave up to a maximum of 180 hours. The payment is based on current wages at termination.
The entire compensated absence liability, which includes salary and wages as well as related taxes, is reported on
the government -wide financial statements. In the enterprise funds, the entire amount of compensated absences is
reported as a fund liability. This reporting format is in compliance with GASB Statement No. 16.
The current portion reported on the schedule of long-term liabilities is calculated using the last -in -first -out (LIFO)
approach. Anticipated subsequent yearly usage is used to determine the current portion of the liability. There is
50
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
no current portion to report when the anticipated leave usage is less than the anticipated leave to be accrued during
the next year.
Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -
type activities, or proprietary fund type statement of net position. Bond premiums and discounts are amortized over
the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond discount.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenses.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during the
current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt
issuances are reported as other financing sources while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures. Long-term debt outstanding at year-end is outlined in Note 10.
Fund Balance/Net Position
A fund balance represents the difference between the current assets and current liabilities plus deferred inflows.
The City restricts those portions of fund balance which are legally segregated for a specific future use or which do
not represent available, spendable resources and therefore are not available for general appropriation or
expenditure.
Net position represents the difference between assets plus deferred outflow of resources and liabilities plus deferred
inflow of resources. Net position invested in capital assets, net of related debt, consists of capital assets, net of
accumulated depreciation, reduced by the outstanding balances of any borrowing used (i.e., the amount that the
City has spent) for the acquisition, construction, or improvement of those assets. Net position is reported as
restricted when there are limitations imposed on their use either through the enabling legislation adopted by the
City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. The
remaining balance is reported as unrestricted.
In 2012 and again in 2015, the City revised the Reserve Policy which addresses the various types of the City's
operating and restricted use funds. The objectives of this Policy are to establish, attain, and restore minimum fund
balances, including self-insurance health care reserve funds, and specified review and reporting of fund balances.
At the close of each fiscal year, the General Fund balance shall equal or exceed 18%, and the Contingency Reserve
Fund balance shall each equal or exceed 10%, of the previous year General Fund revenue, exclusive of significant
non -operating, non -recurring revenues such as real estate sales or transfers in from other funds. Additionally, 10%
of the previous year one-time revenues shall be set aside in a one-time revenue reserve within the Contingency
Reserve fund.
Enterprise funds, at the close of each fiscal year, the unrestricted fund balance shall equal or exceed 20% of the
previous year revenue, exclusive of non -operating, non -recurring revenues such as real estate sales, transfers in
from other funds or debt proceeds.
The City shall maintain a reserve balance in each of its self -insured health care funds an amount equal to 2.5 times
or 250%, of the actuarially determined IBNR liability.
Fund Balance Components
The fund balance amounts for governmental funds have been classified in accordance with GASB Statement No.
54 and are reported as nonspendable, restricted, committed, assigned or unassigned.
51
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
• Nonspendable fund balance includes items that cannot be spent. This includes activity that is not in a
spendable form (inventories, prepaid amounts, long-term portion of loans/notes receivable, or property held
for resale unless the proceeds are restricted, committed or assigned) and activity that is legally or
contractually required to remain intact, such as a principal balance in a permanent fund. The general fund's
nonspendable fund balance of $937 thousand is the outstanding balance of a loan from the general fund to
the Tukwila Metropolitan Park District.
• Restricted fund balances have constraints placed upon the use of the resources either by an external party
or imposed by law through a constitutional provision or enabling legislation.
• Committed fund balances can be used only for specific purposes pursuant to constraints imposed by a formal
action in the form of ordinances and resolutions of Tukwila Councilmembers, the City's highest level of
decision -making authority. This formal action is the passage of an ordinance by City Council creating,
modifying, or rescinding an appropriation. These committed amounts cannot be used for any other purpose
unless Council removes or changes the specified use by taking the same type of action it employed to
previously commit those amounts.
• Assigned fund balance includes amounts that are constrained by the City's intent to be used for a specific
purpose but are neither restricted nor committed. Assigned also includes a contingency balance authorized
via the City's Reserve Fund Balance policy. Intent of use and authority to assign amounts is determined
through the budgetary process, either during adoption or amending, and the Finance Director has final
authority.
• Unassigned fund balance is the residual amount not included in the four categories described above. Also,
any deficit fund balances within the other governmental fund types are reported as unassigned.
Each fund has been analyzed to classify the fund balance in accordance with GASB Statement No. 54. Funds are
created by the City Council and money is authorized to be transferred to the fund for a particular purpose. At this
point, balances in these funds are at least committed, and may be further restricted depending on whether there is
an external party, constitutional provision, or enabling legislation constraint involved. The City applies restricted
resources first when an expense is incurred for purposes of which both restricted and unrestricted fund balance is
available in the governmental funds. When expenditures are incurred for purposes, for which unrestricted
(committed, assigned, and unassigned) resources are available, and amounts in any of these unrestricted
classifications can be used, it is the City's policy to spend committed resources first, the assigned second, followed
by unassigned.
Operating Revenues and Expenses
Operating revenues are generated directly from the primary activity of the proprietary funds. For the City, these
revenues are service fees for utilities, charges for services for the use of the golf course and the internal use of
vehicles, computers, and facilities. Operating expenses are necessary costs incurred to provide the good or service
that are the primary activity of each fund. All other revenues and expenses are classified as non -operating including
investment earnings, interest expense and the gain or loss on the disposition of capital assets.
Contributions of Capital
Contributions of capital in proprietary fund financial statement arise from outside contributions of capital assets, for
example, developers, and grants or outside contributions of resources restricted to capital acquisition and
construction. It also includes water and sewer connection charges.
52
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
Indirect Cost Allocation
Indirect costs, also referred toaooverhead costs, oonniotoftheonatofmantn*|senioesorouppndfunnUonoshared
across departments. They include aoouundng, human reoouroeo, payroU, information technology, janitorial
services, and others. These services are paid through the general fund and charged back to the proprietary funds
that directly benefit from them. The indirect costs allocated to the proprietary and other funds totaled $2.278'058
for 2017 and are reported as a reduction of general government expenditures on the Statement of Activities.
6nterfund Activity
Exchange transactions between funds are reported as revenues in the seller funds and as expend itu res/expenses
in the purchaser funds. On the government -wide statement ofactivities, the exchange transactions between the
internal service funds and the user funds are eliminated. F|ovvo of cash or goods from one fund by 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.
Transfers between governmental and business -type aoUvbao on the government -wide statement ofactivities 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 ofthe financial statements inconformity with GAAPrequires management homake estimates and
assumptions that affect the amounts reported inthe financial statements and accompanying notes. Actual results
may differ from those estimates.
Risk Management
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. VVCK\
is an organization of Washington enUUoa numbering 181 an of December 31, 2017. VVCK\ provides pooled self-
insurance coverage for general liability, vehicle |iabi|ih/, false amsat, and errors and omissions. See Note 13 for
additional information onrisk management.
H. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of all state sponsored pension
plans and additions to/deductions from those plans'fiduciary net position have been determined on the same basis
as they are reported by the Washington State Department of Retirement Systems. For this purpone, benefit
payments (including refunds of employee contributions) are recognized when due and payable in accordance with
the benefit terms. Investments are reported atfair value.
NOTE 2 —DEPOSITS AND INVESTMENTS
The City maintains acash and investment pool available for use byall funds. Interest earned nnpooled 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
53
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
Custodial credit risk is the risk associated with the failure of a depository financial institution. In the event of a
depository financial institution's failure, it is the risk that the City would not be able to recover its deposits or
collateralized securities that are in the possession of the outside parties. The City minimizes custodial credit risk
by following the restrictions set forth in state law.
At year-end, the carrying amount of the City's cash balance held in banks was $11,305,429. Of the bank balance,
$250,000 was covered by Federal depository insurance and the Washington Public Deposit Protection Commission
(WPDPC) insured the remainder. The City also maintains imprest funds totaling $14,950.
The City participates in the State Treasurer's Investment Pool, which is a 2a7-like unrated pool, overseen by the
State Treasurer's Office. A 2a7-like-pool is an external investment pool that is not registered with the SEC as an
investment company but nevertheless has a policy that it will, and does, operate in a manner consistent with the
SEC's Rule 2a7 of the Investment Company Act of 1940. Rule 2a7 allows SEC -registered mutual funds to use
amortized cost, which approximates fair value, to report net assets and compute share prices. 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.
Investments
The City's investment portfolio includes certificate of deposits insured by the Washington State Public Depository
Commission, U.S. Government Agency Notes, 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.
54
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
AJDecember 31.2O17.the City had the following deposits and investments. Certificates ofdeposits are measured
at amortized cost, agencies and municipal bonds are measured at fair value.
SCHEDULE OFINVESTMENTS BYMATURITY
Certificates ofDeposit.
Sound Community Bank
Bank mWashington
3/4/2019
6/2/2019
250,000
3,492,622
uS.Government Agency Notes.
Fnueou Home Loan mtg Corp 5x25x2018 AA+/Aaa e97.e99
Federal Fonn Cnmn Bank 12Y21/201e aA+/Aaa 994.692
Federal Home Loan Bank 1/302019 AA+/Aaa 884.+*1
Federal Farm Credit Bank 3/20/201e AA+/Aaa 1.e8e.224
Farmer Mac 7/23/2019 aA+/Aaa 993,355
Farmer Mac 8/2/2019 AA+/Aaa 2.484.920
FNMA 109x2019 AA+/Aaa 2.310.722
Fvuexo| Farm Credit Bank 12/27Y2019 aA+/Aao 990.552
Federal Home Loan Bank 0/28/2020 AA+/Aoa 1.083.548
Federal Home Loan Bank 8v202020 AA+/Aaa 2.272.58e
Federal Farm Credit Bank 5/9V2022 a^+/Aaa 1.974.266
Total U.S. Agency Notes 17,686,207
Municipal Bonds.
vvasmnn*m State Biomedical Research: mvvenue-Faci|mes 7/1/2019 *a1 /Ax+ 519.700
soamo Washington: umxou General Obligation 11/1o019 xaa/AAA 392,962
xuuum, vveomngu,n: umxou General Omigaunn, Build America 12/1/2019 Ax+ 312.282
Port mAnaovrtaa.Washington: Limited General Obligation 9/1x2020 Aa3 352.175
Douglas County School District, Washington: Unlimited General Obligation 12Y1C2020 xa2 1.1e8.822
Port mTacoma, Washington: Limited General Om|umwn. Taxable Refunding 12Y1/2020 Aao/AA 515.702
Multnomah County, Oregon: Limited General Obligation 6/1/2021 Aoa *56.125
aunon, Washington: umuou oonony| Obligation, Build America 12v1/2025 Aau 531.560
Port mSeattle, Washington: Revenue, Taxable 5/1/2036 xau/AA- 2.127.580
Total Municipal Bonds 8.390.908
* No credit rating with certificate of deposit accounts; accounts are insured by the Public Depository Protection Commission.
55
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
RECONCILIATION OF ALL CASH, DEPOSITS AND INVESTMENTS
SUMMARY BY FUNDS
Governmental Funds
General Fund
Arterial Street
Local Improvement District #33
Public Safety Plan
Facilities Urban Renewal
Other Governmental Funds
Internal Service Funds
Proprietary Funds
Water
Sewer
Foster Golf Course
Surface Water
Total as Reported on
Statement of Net Position
Firemen's Pension Trust Fund
Agency Fund
Total Cash, Cash Equivalents
and Investments
CASH & CASH
EQUIVALENTS
$ 9,486,158 $
349,039
752,342
484,286
9,560,304
5,214,483
3,973,370
3,561,217
572,915
4,284,100
RESTRICTED RESTRICTED
CASH INVESTMENTS INVESTMENTS
8,406 $ 6,322,974 $
2,270,778
25,903,447
6,017,641
23,825
62,620
38,238,215 34,286,717
925,014
311,398
531,560
3,205,071
2,161,812
4,284,988
16,506,406
515,702
TOTAL
$ 15,817,539
2,619,817
752,342
10,553,628 36,941,362
16,109, 505
8,419,554
6,159, 007
7,846,206
635,535
4,284,100
10,553,628 99,584,966
1,440,716
311,398
38,238,215 $ 35,523,128 $
17,022,108 $
10,553,628 $ 101,337,080
SUMMARY BY TYPE:
Cash and Cash Equivalents:
Local Government Investment Pool
Money market account
Cash on hand
Cash in bank -book balance
Total cash and cash equivalents
Investments:
Certificates of deposit
U.S. Government Agency Notes
Municipal bonds
Total investments
Total Cash, Cash Equivalents, and Investments
$ 48, 269, 306
14,361,779
14,950
11,115, 308
73,761,344
3,492,622
17, 686, 207
6,396,908
27, 575, 736
$101,337,080
56
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
Restricted Cash & Investments 'Governmanta|
Cash & cash equivalents
Deposits
Drug Seizure funds 'fedora| portion
Debt Service
Impact fees
Investments
Restricted Assets -Govern mante|
$ 31.807.880
8,406
223.408
2,124,016
146.762
10.553.628
$ 44'753`800
Restricted Cash & Investments 'Buainaoa'Type
Customer Deposits -Water Utility
Customer Deposits -Golf Course
Lease Deposits -Golf Course
Restricted Assets -Business -Type
Total Restricted Assets
Fair Value Measurement
� 23.825
47.620
15.000
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.
° Level 1 inputs are quoted prices in active markets for identical assets. Theme valuation inputs are
considered most reliable.
~ Level 2inputs are quoted prices for similar assets, quntedphoeafnridenUoa|oruimi|arassatsinmarket
that are not active, orother obaenx*b|eo. These valuation inputs are considered tobereliable.
° Level 3 inputs are significant unobservable inputs and are considered to be the least reliable.
The City has the following recurring fair value measurements as of December 31, 2017:
Fair Value Measurements
investments byFair Value Level
usGovernment Agencies
Municipal Bonds
Total Investments by Fair Value Level
Interest Rate Risk
Quoted Prices
in Active
Markets for
Identical
Assets
Total (Level 1)
$ 17.080.207 $ '
6,396,908
Significant
Other
Observable
Inputs
(Level 2)
$ 17,686207 $
6,396,908
Significant
Unobservable
Inputs
(Level 3)
$ 24,083.115
' * 24,088.115
Interest rate risk is the risk that changes in interest rates of debt investments will adversely affectthe fair value nf
an investment. Asa moans of limiting its exposure 0zfair value losses arising from rising interest rates, the Cih/s
investment policy limits investment maturities osfollows:
57
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
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%%) years or forty-two (42) months.
The City uses the weighted average maturity method to manage interest rate risk.
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 WPDPC 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, 2017, the City's investments in municipal bonds were rated Aaa to Aa3 by Moody's Investor
Service.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The
City of Tukwila diversifies its investments by security type and institution as described below:
1) No more than fifty percent (50%) of the City's cash and investment portfolio, at the time of purchase, shall
be in any single financial institution.
2) Except, that no more than seventy-five percent (75%) of the City's portfolio, at the time of purchase, shall be
invested in the Washington State Local Government Investment Pool, and
3) No more than seventy-five percent (75%) of the City's portfolio, at the time of purchase, shall be invested in
U.S. Treasury or Agency securities.
NOTE 3 — RECEIVABLES
Taxes receivable consists of property, sales and use, gambling, leasehold, and hotel/motel taxes.
58
CITY OF TUKWILA: 2017 CAFR
NOTES TO THE FINANCIAL STATEMENTS
Customer accounts receivable consists of amounts owed by private individuals or organizations for goods and
services provided. Uncollectible amounts are considered immaterial and the direct write-off method is used.
Customer accounts receivable also includes the current portion of special assessments due from property owners
within Local Improvement District No. 33. Other types of accounts receivable include utility taxes due from private
organizations and customer accounts receivable for amounts owed which billings have not been prepared.
Government Business -Type
Activities Activities
Total
Taxes Receivable
Property $ 360,063 $
Sales & Use 3,685,904
Real Estate Excise Tax 198,258
Utility Tax 671,411
Admission/Gambling/Parking/Other 1,293,415
Total Taxes Receivable 6,209,050
Customer Receivable
Miscellaneous
Utility Accounts
Total Customer Receivable
Interest
Notes due within one year
Total Receivables
Property Taxes Receivable
1,418,586
$ 360,063
3,685,904
198,258
671,411
847 1,294,262
847 6,209,897
2,157,178
1,418,586
2,157,178
1,418,586 2,157,178 3,575,765
138,778
211,471
5,865
144,643
211,471
7,977,885 2,163,890 $ 10,141775
The County Treasurer acts as an agent to collect property taxes levied in the County for all taxing authorities.
Collections are distributed daily via wire transfer.
January 1st
February 14th
April 30th
May 31st
October 31st
Property Tax Calendar
Taxes are levied and become an enforceable lien against properties.
Tax bills are mailed.
First of two equal installment payments is due. If taxes are less than $50, full payment is due.
(RCW 84.56.020)
Assessed value of property established for next year's levy at 100 percent of market value.
Second installment is due. (RCW84.56.020)
Assessed values are established by the County Assessor at 100% of fair market value. A revaluation of all property
is required every two years. On May 31 of each year the assessed value of property is established for the next
year's property tax levy.
Property taxes levied by the County Assessor and collected by the County treasurer become a lien on the first day
of the levy year and may be paid in two equal installments if the total amount is $50 or more. The first half of real
property taxes is due on April 30 and the balance is due October 31. Delinquent taxes bear interest at the rate of
12% and are subject to additional penalties if not paid as scheduled.
During the year, property tax revenues are recognized when cash is received. At year-end, unpaid property taxes
are recorded as a receivable. Property tax receivables at year-end not expected to be collected within 60 days after
59
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
the current period are reported as other unavailable revenue in the deferred inflow of resources section of the
governmental funds financial statements. The tax rate for general City operations is limited to $3.60 per $1,000 of
assessed value. An additional levy rate of $0.225 is available to the City because the City funds a Firemen's
Pension Fund.
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 since 1985. The State Constitution provides that the total of all taxes
upon real and personal property by the State and all taxing entities, including the City, shall not in any year exceed
1% ($10 per $1,000) of the true and fair monetary value of such property. This limitation may be exceeded upon
the approval of 60% of the City voters at an election in which the total vote exceeds 40% of the votes cast at the
last general election.
Washington State Constitution and Washington State law, RCW 84.55.010, limit the rate. The City's regular levy
in 2016 was $2.58592 per $1,000 of assessed valuation of $5,763,649,829 for a total regular levy of $14,869,800.
Special levies approved by the voters are not subject to the limitations listed above. In 2017, the City levied an
additional $0.47 per $1,000 for the Public Safety Plan approved by voters in November 2016. The total additional
levy in 2017 was $2,698,992
Due from Other Governments
All receivables from other governments are recorded at year-end as amounts Due from Other Governmental Units.
These amounts represent federal, state, and local reimbursement -type grants, and are reported as receivables and
intergovernmental revenues in the year when the related expenditures are incurred. As of December 31, 2017, the
majority represents grants.
Notes Receivable
Notes receivable for governmental activities consists of the long-term portion of the special assessments related to
Local Improvement District (LID) No. 33. Special assessments are levied against certain property owners benefited
by the improvement. The current portion of outstanding assessments is reported in the receivables category on the
Statement of Net Position and consists of assessments which are due within one year and delinquent assessments
from the prior year. Assessments are charged to property owners within the LID annually with payments due in
October of each year. The repayment period for the assessments is 15 years with the first installment due in 2014
and the final installment due in 2028.
The other note receivable category is related to developer agreements. There are two agreements with local
developers to defer fire, parks and traffic impact fees, along with building permit fees as part of new, large
construction projects. The first agreement, related to the Washington Place project, defers the developer's obligation
to pay traffic, park, and fire impact fees until 2018. The second agreement is for the Tukwila South project which
defers $1.75 million in fire impact fees, with annual payments due each December from 2017 through 2022.
Notes receivable for business —type activities consists of outstanding payment plans for sewer connection fees. The
City designed and constructed sewer infrastructure in both the Allentown and Foster Point neighborhoods, which
was previously on septic. The project was completed and accepted by City Council in 2007. The connection fees
to be paid by property owners were established by ordinance, effective in August, 2007. One option given to
property owners was an installment payment plan. This option allowed owners to sign an agreement to have the
connection charge added to their monthly water bill and repaid over 5, 10, or 15 years with a 4% annual interest
rate. The balance reflects all principal outstanding at year-end.
60
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
Governmental Business -Type
Activities Activities
Total
Notes Receivable
Special Assessments $ 4,315,171 $ - $ 4,315,171
Developer Agreements 2,856,277 - 2,856,277
Sewer Payment Plan 233,890 233,890
Total Receivables $ 7,171,448 $ 233,890 $ 7,405,338
NOTE 4 — INTERFUND TRANSACTIONS
Interfund activity is the term used to describe similar financial transactions between funds of the primary
government.
Reciprocal interfund activity involves the exchange of equal or almost equal value between funds.
Services Provided/Used — Transactions that would be treated as revenues, expenditures or expenses if they
involve external organizations, such as buying goods and services in return for equal or almost equal value, are
similarly treated when they involve other funds of the City of Tukwila.
Interfund Loans/Advances — Loans between funds are classified as interfund loans receivable and payable or as
advances to and from other funds in the fund statements. Interfund loans are offset by a reservation of fund equity.
Interfund loans are subject to elimination upon consolidation. As of December 31, 2017, the City has no outstanding
interfund loans or advances.
Nonreciprocal interfund activity does not involve the exchange of equal or almost equal value between funds.
Transfers — Transactions to support the operations of other funds are recorded as "Transfers" and classified with
"Other Financing Sources or Uses" in the fund statements. Transfers between governmental or proprietary funds
are netted as part of the reconciliation to the government -wide financial statements.
Contributions — Contributions to the capital of enterprise or internal service funds, transfers of capital assets
between proprietary and governmental funds, transfers to establish or reduce working capital in other funds, and
transfers of remaining balances when funds are closed are classified non -operating revenue.
Reimbursements — Repayments from funds responsible for expenditures or expenses to the funds that initially
paid for them. These transactions are expenditures/expense in the fund responsible and as a reduction of
expenditure/expensed in the fund being reimbursed.
Interfund transfers for the year were as follows:
SUMMARY OF INTERFUND TRANSFERS
Funds
Funds TOTAL
General Public Safety Arterial Other Godt Total Golf
Fund Plan Street Funds Govemmental Course
Transfers In $ 300,000 $ 1,017,000 $ 1,800,000 $ 3,237,496 $ 6,354,496 $ 300,000 $ 6,654,496
Transfers Out (5,337,496) - - (1,317,000) (6,654,496) - (6,654,496)
Net Transfers In
(Out) $(5,037,496) $ 1,017,000 $ 1,800,000 $ 1,920,496 $ (300,000) $ 300,000 $ -
61
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
The principal purposes for interfund transfers include interfund subsidies and transfers into debt service and capital
projects funds.
NOTE 5—OPERATING LEASES
During 2O17the City maintained operating lease agreements for City operated machinery and equipment.
Tukwila leases office/ storage space for the purposes of the Police Archives Shorage, Police Gym, and the
Neighborhood Resource Center. Costs associated with these activities are as follows.
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS
Neighborhood Resource Center
Police Archives/Vehicle Storage
Police Department Gym
Postage Machines
Office Equipment
20,40
57.424
15,091
6,948
20,40
58.144
15.542
4.055
20,400
60,916
18.012
'
20,400
58.852
6,780
20,40
58.652
8.780
NOTE 6—CAPITAL ASSETS
Capital asset activity for the year ended December 31'2017,was asfollows:
GOVERNMENTAL ACTIVITIES
62
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
BEGINNING ENDING
BALANCE BALANCE
01/01/2017 INCREASES DECREASES 12/31/2017
Governmental Activities
Capital assets, not being depreciated:
Land $ 35,498,580 $ 673,739 $ - $ 36,172,319
Construction in Progress 10,064,699 14,604,067 (15,124,831) 9,543,935
Total capital assets,
not being depreciated
45, 563, 279 15, 277, 806 (15,124, 831) 45, 716, 254
Capital assets, being depreciated:
Buildings 24,431,341 90,264
Other Improvements 23,354,321 333,445
Machinery and Equipment 21,495,035 1,515,864
Infrastructure 189, 410, 723 13, 989, 228
(241,261)
24,521,605
23, 687, 766
22, 769, 638
203, 399, 951
Total capital assets
being depreciated 258,691,420 15,928,801
Less accumulated depreciation for:
Buildings (12,597,195) (808,977)
Other Improvements (12,826,302) (1,026,435)
Machinery and Equipment (14,383,941) (1,359,296)
Infrastructure (58,300,035) (5,818,599)
Total accumulated depreciation
Total capital assets, being
depreciated, net
Governmental activity capital assets, net
(241,261) 274,378,960
237,935
(13,406,172)
(13, 852, 737)
(15, 505, 302)
(64,118, 634)
(98,107,472) (9,013,307)
237,935 (106,882,844)
160,583,948 6,915,494 (3,326) 167,496,116
206,147,227 $ 22,193,300 $ (15,128,157) $ 213,212,370
63
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
BUSINESS -TYPE ACTIVITIES
BEGINNING ENDING
BALANCE BALANCE
01/01/2017 INCREASES DECREASES 12/31/2017
Business -Type Activities
Capital assets, not being depreciated:
Land $ 2,346,230 $ 50,000 $ - $ 2,396,230
Construction in Progress 2,211,229 5,926,438 (5,674,888) 2,462,779
Total capital assets,
not being depreciated 4,557,459 5,976,438 (5,674,888) 4,859,009
Capital assets, being depreciated:
Buildings 13,284,419 - 13,284,419
Other Improvements 88,164,649 5,745,460 (72,557) 93,837,552
Machinery and Equipment 2,174,632 42,499 2,217,130
Total capital assets
being depreciated 103,623,700 5,787,958 (72,557) 109,339,101
Less accumulated depreciation for:
Buildings (4,977,186) (371,794) - (5,348,980)
Other Improvements (34,005,810) (1,798,971) 14,202 (35,790,579)
Machinery and Equipment (1,788,518) (50,147) (1,838,666)
Total accumulated depreciation (40,771,514) (2,220,912) 14,202 (42,978,225)
Total capital assets, being
depreciated, net 62,852,188 3,567,046 (58,355) 66,360,879
Business -Type activity capital assets, net $ 67,409,647 9,543,484 $ (5,733,243) $ 71,219,888
64
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
DEPRECIATION
Depreciation expense for 2017 was charged to
functions/programs as follows:
Governmental Activities:
General Government $ 282,846
Public Safety 145,575
Physical Environment 859,211
Transportation 5,852,027
Economic Environment 2,907
Culture and Recreation 1,037,272
Capital assets held by the government's Internal
Service Funds are charged to the various functions
based on their usage of the assets 833,469
Total 2017 depreciation expense - govemmental activities $ 9,013,307
Business -type Activities
Water Utility - Depreciation
Sewer Utility - Depreciation
Foster Golf Course - Depreciation
Surface Water Utility - Depreciation
Total 2017 depreciation increases -
business -type activities
NOTE 7 — JOINT VENTURES
$ 519,778
367,729
313,489
1,019,917
$ 2,220,912
A joint venture is a legal entity or other organization that results from a contractual agreement and that is owned,
operated, or governed by two or more participants as a separate and specific activity subject to joint control in which
the participants retain (a) an on -going financial interest or (b) an on -going financial responsibility. The City
participates in two joint ventures. A summary of the City's investment in joint ventures follows.
SUMMARY OF INVESTMENT IN JOINT VENTURES
Equity in Equity in Capital Assets TOTAL
Operations financed by Outstanding Investment in
Debt Joint Ventures
Valley Com $ 2,677,983 $ - $ 2,677,983
SCORE 719,422 5,914,400 6,633,822
TOTAL $ 3,397,405 $ 5,914,400 $ 9,311,805
65
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
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. Federal Way was 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 2017 cost distribution for the five (5) participating cities is as follows:
City
Dispatchable
Calls
Percent of
Total
Renton
87,220
20.09%
Kent
115,303
26.55%
Auburn
100,554
23.16%
Tukwila
36,635
8.44%
Federal Way
94,522
21.77%
Total
434, 234
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.
The share of equity belonging to the five (5) participating cities is as follows:
66
NOTES TDTHE FINANCIAL STATEMENTS
FEDERAL
ITEM RENTON KENT AUBURN TUKWILA WAY TOTAL
Equity January 1.2017 $4,531.544 $6,314,604 $4,504828 $2,391,872 $ 3,484568 $21.227,410
Current Year Increase/(Decrease) 001.177 900.487 785310 280111 738.204 3.391.299
Equity December 31.2017 $5,21e.721 $7,215.101 $5,280138 $2.077983 $ 4,222.772 $24.018.715
Percent of Equity
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position. In August
1883' VeUoyCom entered into an intednoa| cooperation agreement. pursuant to RCVV 38.34 RCVV, with the sub-
regions ofKing County, Seattle, and the EastsidePublic 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 1002. This agreement provides that upon voluntary
termination of any sub-region'o participation in the oyetam, it surrenders its radio frequencies, relinquishes its
equipment and transfers any unexpended levy proceeds and associated equipment replacement naoarvaa to
another sub -region or consortium of sub -regions. Thus, in accordance with this agreement, the participating cities
of Valley Corn 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 was 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 byValley Communications Center
Development Authority have been paid and retired. The final payment onthe bonds was made in2015.
A complete set of financial statements are available from Valley Communications Center, 27519 108m Ave SE,
Kent, WA 98030, or by telephone 253-372-1300.
South Correctional Entity (SCKjRE)
The South Correctional Entity (SCORE) consolidated correctional facility was established February 25, 2009, when
an |nterooa|Agreement (the "Original |nhudooa|Agraement")was entered into by seven participating municipal
governments, the ^yWombor Cities" of Auburn, Buhen. Des K4oinen, Federal VVay, Renton. SoaTao and Tukvv|a,
under the authority ofthe ^|nbeduoa| Cooperation Act" (RCVV 30.34). This "Original |ntedooa| Agreement" was
amended and restated October 1, 2009 and named the City of Des Moines as the "Host City" and the remaining
Member Cities aa"Owner Q''tiesThis inter|ooal agreement is known as the "Formation |ntedooa| 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
inthe Host City Agreement. Pursuant tuSCORE financial policies, all unexpected funds nrreserve funds shall bo
distributed based on the percentage of the Member City's average daily population at the SCORE Facility for the
last three (3) years regardless of its Owner City or Host City status.
SCORE, a governmental administrative agency pursuant to RCW 39.34.030(3), has the power to acquire, construct,
uvvn, operate, maintain, equip, and improve a ourn*oUuna| facility known an the "SCORE Facility" and to provide
correctional services and functions incidental thereto, for the purpose of detaining arreetees 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 |ntor|noa|Agrooment.
Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility was provided by
bonds issued by the South Correctional Entity Facility Public Development Authority (the "SCORE PDA"), a public
development authority chartered by the City of Renton pursuant to RCW` 35.21.730 through 35.21.755. The SCORE
67
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
PDA issued $86 million in special obligation bonds in 2009 (the "Bonds") to construct, develop, acquire and equip
the SCORE Facility. Pursuant to the Formation Interlocal Agreement and the ordinances of each city, each Owner
City (which includes the Cities of Auburn, Burien, Federal Way, Renton, SeaTac, and Tukwila) is obligated to budget
for and pay its share, and only its share, of the principal of and interest on the Bonds as the same become due and
payable. Each Owner City's obligation to pay its portion is an irrevocable, unconditional full faith and credit
obligation of such Owner City, payable from property taxes levied within the constitutional and statutory authority
provided without a vote of the electors of the Owner City on all of the taxable property within the Owner City and
other sources of revenues available therefor. The following is a summary of the debt service requirements for the
Bonds:
SUMMARY OF DEBT SERVICE REQUIREMENTS
Debt Service Schedule
Debt Service Allocation to Owner Ctties
BA Bs
Auburn
Burien
Federal Way
Renton
SeaTae
Tukwila
Year
Principal
Interest
Subsidy
Total
31°I°i
4%
18%
36°I°
3°I°
B%
2018
$ 2,240,000
$ 4,715,979
$ (1,512,496)
$ 5,443,483
$ 1,687,480
$ 217,739
$ 979,827
$ 1,959,654
$ 163,305
$ 435,479
2019
2,310,000
4,602,229
(1,478,317)
5,433,912
1,684,513
217,357
978,104
1,956,208
163,017
434,713
2020
2,385,000
4,484,854
(1,440,560)
5,429,294
1,683,081
217,172
977,273
1,954,546
162,879
434,344
2021
2,465,000
4,363,604
(1,401,577)
5,427,027
1,682,378
217,081
976,865
1,953,730
162,811
434,162
2022
2,590,000
4,233,250
(1,500,618)
5,322,632
1,650,016
212,905
958,074
1,916,147
159,679
425,811
2023-2027
14,485,000
18,727,798
(6,710,481)
26,502,317
8,215,719
1,060,092
4,770,417
9,540,834
795,070
2,120,185
2028-2032
17,725,000
13,590,870
(4,959,695)
26,356,175
8,170,415
1,054,248
4,744,112
9,488,223
790,685
2,108,494
2033-2037
21,855,000
7,082,263
(2,731,829)
26,205,434
8,123,685
1,048,217
4,716,978
9,433,956
786,163
2,096,435
2038-2039
10,115,000
676,321
(353,824)
10,437,497
3,235,624
417,500
1,878,749
3,757,499
313,125
835,000
Totals
$76,170,000
$62477,168
$(22,089,397)
$ 116,557,771
$ 36,132910
$4,662,311
$20,980,399
$41,960,798
$3,496,733
$ 9324,622
The City of Tukwila reports its share of equity interest in the Governmental Activities column within the Government -
wide financial statements under assets. The following is condensed (unaudited) financial information as of
December 31, 2017 related to SCORE. The share of equity belonging to the seven participating cities are as
follows:
FEDERAL
ITEM AUBURN'; BURIEN DES MDINES WAY RE ON SEATAC TUKWILA TOTAL
Equity January 1, 2017 $ 3,115,334 $ 324,602 $ 166,583 $2,292,265 $ 2,941,503 $ 434,029 $ 703,323 $ 9,977,639
Current Year Increase/(Decrease) 32,413 22,263 (3,248) 61,482 74,665 22,947 16,099 226,621
Equity December31, 2017 $ 3,147,747 $ 346,865 $ 163,336 $2,353,747 $ 3,016,168 $ 456,976 $ 719,422 $10,204,261
Percent of Equity
30.85% 3.40% 1.60% 23.07% 29.56% 4.48% 7.05% 100.00%
The investment in joint venture for SCORE on the Statement of Net Position includes Tukwila's share of debt issued
in 2009. The City's share of SCORE debt is $5,914,400. See Note 10 for additional information on long-term debt.
Completed financial statements for SCORE and SCORE PDA can be obtained from the SCORE, Attn: Finance
Manager, 20817 17th Avenue South, Des Moines, WA 98198.
NOTE 8 - PENSION PLANS
The following table represents the aggregate pension amounts for all plans subject to the requirements of the GASB
Statement 68, Accounting and Financial Reporting for Pensions for the year 2017:
68
CITY OF TUKWILA: 2017 CAFR
NOTES TO THE FINANCIAL STATEMENTS
Aggregate Pension Amounts - AIIP
ans'
Pension liabilities
$ (11,613,653)
Pension assets
$ 8,229,168
Deferred outflows of resources
$ 2,475,258
Deferred inflows of resources
$ (4,284,751)
Pension expense/expenditures
$ 798,890
Washington State Department of Retirement Systems
Substantially all City of Tukwila full-time and qualifying part-time employees participate in one of the following
statewide retirement systems administered by the Washington State Department of Retirement Systems, under
cost -sharing, multiple -employer public employee defined benefit and defined contribution retirement plans. The
state Legislature establishes, and amends, laws pertaining to the creation and administration of all public retirement
systems.
The Department of Retirement Systems (DRS), a department within the primary government of the State of
Washington, issues a publicly available comprehensive annual financial report (CAFR) that includes financial
statements and required supplementary information for each plan. The DRS CAFR may be obtained by writing to:
Department of Retirement Systems
Communications Unit
P.O. Box 48380,
Olympia, WA 98504-8380
Or the DRS CAFR may be downloaded from the DRS website at www.drs.wa.gov.
A. Public Employees Retirement System (PERS) Plans 1, 2, and 3
PERS members include elected officials; state employees; employees of the Supreme, Appeals and Superior
Courts; employees of the legislature; employees of district and municipal courts; employees of local governments;
and higher education employees not participating in higher education retirement programs. PERS is comprised of
three separate pension plans for membership purposes. PERS plans 1 and 2 are defined benefit plans, and PERS
plan 3 is a defined benefit plan with a defined contribution component.
PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as two percent
of the member's average final compensation (AFC) times the member's years of service. The AFC is the average
of the member's 24 highest consecutive service months. Members are eligible for retirement from active status at
any age with at least 30 years of service, at age 55 with at least 25 years of service, or at age 60 with at least five
years of service. Members retiring from active status prior to the age of 65 may receive actuarially reduced benefits.
Retirement benefits are actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty
and non -duty disability payments, an optional cost -of -living adjustment (COLA), and a one-time duty -related death
benefit, if found eligible by the Department of Labor and Industries. PERS 1 members were vested after the
completion of five years of eligible service. The plan was closed to new entrants on September 30, 1977.
Contributions
The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The employer contribution
rate is developed by the Office of the State Actuary and includes an administrative expense component that is
currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 1 employer
contribution rates. The PERS Plan 1 required contribution rates (expressed as a percentage of covered payroll) for
2017 were as follows:
69
CITY OF TUKWILA: 2017 CAFR
NOTES TO THE FINANCIAL STATEMENTS
PERS Plan 1
Actual Contribution Rates:
Employer
Employee
January — June 2017
PERS Plan 1
6.23%
6.00%
PERS Plan 1 UAAL
4.77%
Administrative Fee
0.18%
Total
11.18%
6.00%
July — December 2107
PERS Plan 1
7.49%
6.00%
PERS Plan 1 UAAL
5.03%
Administrative Fee
0.18%
Total
12.70%
6.00%
The City of Tukwila did not contribute to PERS Plan 1 in 2017 as there are no employees covered under this plan.
Although, $789,712 of the PERS 2/3 contributions were allocated to the PERS 1 unfunded actuarial accrued liability
(UAAL).
PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits are determined as two
percent of the member's average final compensation (AFC) times the member's years of service for Plan 2 and 1
percent of AFC for Plan 3. The AFC is the average of the member's 60 highest -paid consecutive service months.
There is no cap on years of service credit. Members are eligible for retirement with a full benefit at 65 with at least
five years of service credit. Retirement before age 65 is considered an early retirement. PERS Plan 2/3 members
who have at least 20 years of service credit and are 55 years of age or older, are eligible for early retirement with a
benefit that is reduced by a factor that varies according to age for each year before age 65. PERS Plan 2/3 members
who have 30 or more years of service credit and are at least 55 years old can retire under one of two provisions:
• With a benefit that is reduced by three percent for each year before age 65; or
• With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return -to -work
rules.
PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of
five percent for each year of retirement before age 65. This option is available only to those who are age 55 or
older and have at least 30 years of service credit. PERS Plan 2/3 retirement benefits are also actuarially reduced
to reflect the choice of a survivor benefit. Other PERS Plan 2/3 benefits include duty and non -duty disability
payments, a cost -of -living allowance (based on the CPI), capped at three percent annually and a one-time duty
related death benefit, if found eligible by the Department of Labor and Industries. PERS 2 members are vested
after completing five years of eligible service. 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 12 months of that service are earned after age 44.
PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment
earnings on those contributions. PERS Plan 3 members choose their contribution rate upon joining membership
and have a chance to change rates upon changing employers. As established by statute, Plan 3 required defined
contribution rates are set at a minimum of 5 percent and escalate to 15 percent with a choice of six options.
Employers do not contribute to the defined contribution benefits. PERS Plan 3 members are immediately vested in
the defined contribution portion of their plan.
Contributions
The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State Actuary to
fully fund Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include a component to
address the PERS Plan 1 UAAL and an administrative expense that is currently set at 0.18 percent. Each biennium,
the state Pension Funding Council adopts Plan 2 employer and employee contribution rates and Plan 3 contribution
rates. The PERS Plan 2/3 required contribution rates (expressed as a percentage of covered payroll) for 2017 were
as follows:
70
CITY OF TUKWILA: 2017 CAFR
NOTES TO THE FINANCIAL STATEMENTS
PERS Plan 2/3
Actual Contribution Rates:
Employer 2/3
Employee 2
January — June 2017
PERS Plan 2/3
6.23%
6.12%
PERS Plan 1 UAAL
4.77%
Administrative Fee
0.18%
Employee PERS Plan 3
Varies
Total
11.18%
6.12%
July — December 2107
PERS Plan 2/3
7.49%
7.38%
PERS Plan 1 UAAL
5.03%
Administrative Fee
0.18%
Employee PERS Plan 3
Varies
Total
12.70%
7.38%
The City of Tukwila actual contributions to the plan were $1,902,973 for the year ended December 31, 2017.
Public Safety Employees' Retirement System (PSERS)
PSERS Plan 2 was created by the 2004 Legislature and became effective July 1, 2006. To be eligible for
membership, an employee must work on a full time basis and:
• Have completed a certified criminal justice training course with authority to arrest, conduct criminal
investigations, enforce the criminal laws of Washington, and carry a firearm as part of the job; or
• Have primary responsibility to ensure the custody and security of incarcerated or probationary individuals;
or
• Function as a limited authority Washington peace officer, as defined in RCW 10.93.020; or
• Have primary responsibility to supervise eligible members who meet the above criteria.
PSERS membership includes:
• PERS 2 or 3 employees hired by a covered employer before July 1, 2006, who met at least one of the
PSERS eligibility criteria and elected membership during the period of July 1, 2006 to September 30 2006;
and
• Employees hired on or after July 1, 2006 by a covered employer, that meet at least one of the PSERS
eligibility criteria.
PSERS covered employers include:
• Certain State of Washington agencies (Department of Corrections, Department of Natural Resources,
Gambling Commission, Liquor Control Board, Parks and Recreation Commission, and Washington State
Patrol),
• Washington State Counties,
71
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
° Washington State Cities for Seattle, Spokane, and T000ma).
* Correctional entities formed by PSERS employers under the Interlocal Cooperation Act.
PSERS Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as two
percent ofthe average final compensation (AFC)for each year ufservice. The AFC iobased onthe mambar'o60
consecutive highest creditable months ofservice. Benefits are actuarially reduced for each year that the mmmber's
age is less than 60 (with ten or more service credit years in PSERS), or less than 65 (with fewer than ten service
credit years). There is no cap on years of service credit. Members are eligible for retirement atthe age nf65with
five years of service; or at the age of 60 with at least ten years of PSERS service credit; or at age 53 with 20 years
of service. Retirement before age 6Oioconsidered anearly retirement. PSERS members who retire prior tothe
age ofG0 receive reduced benefits. If retirement is at age 53 orolder with at least 20 years of service, a three
percent per year reduction for each year between the age at retirement and age 60 applies. PSERS Plan 2
retirement benefits are actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty
and non -duty disability payments, an optional cost -of living adjustment (COLA), and a one-time duty -related death
banafit, if found eligible by the Department of Labor and Industries. PSERS Plan 2 members are vested after
completing five years of eligible service.
Contributions
The PSERS Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to
fully fund Plan 2. The Plan 2 employer rates include components to address the PERS Plan 1 unfunded actuarial
accrued liability and administrative expense currently set at0.18 percent. Each biennium, the state Pension
Funding Council adopts Plan 2 employer and employee contribution rates. In addition to the regular change in
contribution rates on July 1, 2017, PSERS contribution rates changed again September 1, 2017due hoHB170Q.
which allows PERS members meeting specific criteria totransfer service credit into PSERS as long as they and
their employer pay the difference between the PERS and PSERS contribution rates.
The PSERS Plan 2 required contribution rates (expressed asapercentage ofcurrent-year covered payroll) for
2017 were as follows:
PSERS Plan 2
Actual Contribution Rates:
Employer
Employee
January — June 2017
PSERS Plan 2
8.50%
8.50%
PERS Plan 1 UAAL
4.77%
Administrative Fee
0.18%
Total
11.54%
8.50%
July — August 2017
PSERS Plan 2
8.73%
8.73%
PERS Plan 1 UAAL
5.03%
Administrative Fee
0.18%
Total
11.04%
8.73%
September — December
2017
PSERS Plan 2
6.74%
6.74%
PERS Plan 1 UAAL
5.03%
Administrative Fee
0.18%
Total
11.95%
6.74%
The City of Tukwila actual contributions to the plan were $15,143 for the year ended December 31, 2017.
72
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF)
LEOFF membership includes all fuU-Ume, fully compensated, local law enforcement commissioned officers,
firefighters, and aonfJuly 24.2005.emergency medical technicians. LEOFFiocomprised oftwo separate defined
benefit plans.
LEOFF Plan 1 provides raUnemard, disability and death benefits. RaUnumani benefits are determined per year of
service calculated as a percent of final average salary (FAS) as follows:
° 20+years ufservice —2.0%ofFAS
* 10-18years ofservice —1.5%nfFAS
The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same
position or rank for 13 months preceding the date of retirement. 0thonwoa, it is the average of the highest
consecutive 24 months' salary within the last hen years of service. Members are eligible for retirement with five
years of service at the age of50. Other benefits include duty and non -duty disability paymenba, a coot -of living
adjustment (C[)LA), and a one-time duty -related death benefit, if found eligible by the Department of Labor and
Industries. LE0FF 1 members were vested after the completion of five years of eligible service. The plan was
closed tonew entrants onSeptember 3U.1Q77.
Contributions
Starting on July 1, 2000. LEOFF Plan 1 employers and employees contribute zero percent, as long as the plan
remains fully funded. The LEOFF Plan I had no required employer or employee contributions for fiscal year 2017.
Employers paid only the administrative expense of 0. 18 percent of covered payroll.
LEOFF Plan 2 provides reUrement, disability and death benefits. Retirement benefits are determined as two
percent of the final average salary (FAS) per year of service (the FAS is based on the highest consecutive GO
months). Members are eligible for retirement with a full benefit at 53 with at least five years of service credit.
Members who retire prior tuthe age of53receive reduced benefits. |fthe member has atleast 2Oyears ofservice
and iaage 5O.the reduction inthree percent for each year prior toage 53. Otherwise, the benefits are actuarially
reduced for each year prior tnage 53. LEOFF 2 retirement benefits are also actuarially reduced to reflect the choice
ofasurvivor benefit. Other benefits include duty and non -duty disability payments, a cost -of -living allowance (based
on the CP|), capped at three percent annually and a one-time duty -related death benefit, if found eligible by the
Department of Labor and Industries. LEOFF 2 members are vested after the completion of five years of eligible
service.
Contributions
The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to
fully fund Plan 2. The employer rate included an administrative expense component net at 0.18 percent. Plan 2
employers and employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board. The
LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2017 were as follows:
Actual Contribution Rates:
Employer
Employee
January — June 2017
State and local governments
5.0596
8.41%
Administrative Foe
0.18%
Total
5.23%
8.41%
July — December 2017
State and local governments
5.25%
8.75%
Administrative Foe
0.1896
Total
5.4396
8.7596
73
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
The City of Tukwila actual contributions to the plan were $844,098 for the year ended December 31, 2017.
The Legislature, by means of a special funding arrangement, appropriates money from the state General Fund to
supplement the current service liability and fund the prior service costs of Plan 2 in accordance with the
recommendations of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. This special funding
situation is not mandated by the state constitution and could be changed by statute. For the state fiscal year ending
June 30, 2017, the state contributed $62,155,262 to LEOFF Plan 2. The amount recognized by the City of Tukwila
as its proportionate share of this amount is $515,721.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation
completed in 2017 with a valuation date of June 30, 2016. The actuarial assumptions used in the valuation were
based on the results of the Office of the State Actuary's (OSA) 2007-2012 Experience Study and the 2015 Economic
Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2016 actuarial valuation report.
The TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2017.
Plan liabilities were rolled forward from June 30, 2016, to June 30, 2017, reflecting each plan's normal cost (using
the entry -age cost method), assumed interest and actual benefit payments.
• Inflation: 3.0% total economic inflation; 3.75% salary inflation
• Salary increases: In addition to the base 3.75% salary inflation assumption, salaries are also expected to
grow by promotions and longevity.
• Investment rate of return: 7.5%
Mortality rates were based on the RP-2000 report's Combined Healthy Table and Combined Disabled Table,
published by the Society of Actuaries. The OSA applied offsets to the base table and recognized future
improvements in mortality by projecting the mortality rates using 100 percent Scale BB. Mortality rates are applied
on a generational basis; meaning, each member is assumed to receive additional mortality improvements in each
future year throughout his or her lifetime.
There were changes in methods and assumptions since the last valuation.
• For all plans, except LEOFF Plan 1, how terminated and vested member benefits are valued was corrected.
• How the basic minimum COLA in PERS Plan 1 is valued for legal order payees was improved.
• For all plans, the average expected remaining service lives calculation was revised.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.5 percent.
To determine that rate, an asset sufficiency test included an assumed 7.7 percent long-term discount rate to
determine funding liabilities for calculating future contribution rate requirements. (All plans use 7.7 percent except
LEOFF 2, which has assumed 7.5 percent). Consistent with the long-term expected rate of return, a 7.5 percent
future investment rate of return on invested assets was assumed for the test. Contributions from plan members
and employers are assumed to continue being made at contractually required rates (including PERS 2/3, PSERS
2, SERS 2/3, and TRS 2/3 employers, whose rates include a component for the PERS 1, and TRS 1 plan liabilities).
Based on these assumptions, the pension plans' fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected rate of return of 7.5
percent was used to determine the total liability.
74
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
Long -Term Expected Rate of Return
The long-term expected rate of return on the DRS pension plan investments of 7.5 percent was determined using
a building -block -method. In selecting this assumption, the Office of the State Actuary (OSA) reviewed the historical
experience data, considered the historical conditions that produced past annual investment returns, and considered
capital market assumptions and simulated expected investment returns provided by the Washington State
Investment Board (WSIB). The WSIB uses the capital market assumptions and their target asset allocation to
simulate future investment returns over various time horizons.
Estimated Rates of Return by Asset Class
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target
asset allocation as of June 30, 2017, are summarized in the table below. The inflation component used to create
the table is 2.2 percent and represents the WSIB's most recent long-term estimate of broad economic inflation.
Asset Class
Target
Allocation
% Long -Term
Expected Real Rate of
Return Arithmetic
Fixed Income
20%
1.70%
Tangible Assets
5%
4.90%
Real Estate
15%
5.80%
Global Equity
37%
6.30%
Private Equity
23%
9.30%
100%
Sensitivity of the Net Pension (Liability)/Asset
The table below presents the City of Tukwila proportionate share of the net pension liability calculated using the
discount rate of 7.5 percent, as well as what the City of Tukwila proportionate share of the net pension liability would
be if it were calculated using a discount rate that is 1-percentage point lower (6.5 percent) or 1-percentage point
higher (8.5 percent) than the current rate.
1% Decrease
6.50%
Current Rate
7.50%
1% Increase
8.50%
PERS 1
12,963,094
10,641,264
8,630,063
PERS 2/3
25,137,481
9,330,551
(3,620,883)
PSERS 2
380,741
56,704
(197,361)
LEOFF 1
(1,532,542)
(2,066,074)
(2,524,257)
LEOFF 2
1,679,272
(7,760,092)
(15,450,892)
Pension Plan Fiduciary Net Position
Detailed information about the State's pension plans' fiduciary net position is available in the separately issued DRS
financial report.
75
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
Pension (Lbabi|hUms)Nksseto,Pension Expense, and Deferred Outflows mfResources and Deferred Inflows
of Resources Related to Pensions
AdJune 30.2017.the City ofTukwila reported apension asset of$8.220.168and apension liability of$11.650.254
for its proportionate share ofthe net pension liabilities aofollows:
PERS1
$ 6.029.001
PERS2/3
$ 5.621.325
PSERS2
$ 8.028
F|REK4ENSPENS|ON
$ (45.601)
LEOFF1
$ (1.245.425)
LEOFF 2
$ (8.083.743)
The amount of the asset reported above for LE0FF Flan 1 and 2 reflects a reduction for State pension support
provided hothe City ofTukwila. The amount recognized by the City of Tukwila as its proportionate share of the net
pension (liability)/asset, the related State support, and the total portion of the net pension asset that was associated
with the City of Tukwila were as follows:
LEOFFl-ennp|oyer'spropordonate
snare
LEOFF l- State's proportionate share
ofthe net pension asset associated
with the employer
'
LEOFF2-employer's
proportionate share
(6'9A3743)
LEOFFZ-5tate'sproportionate
share of the net pension asset
associated with the employer
(4,530,224)
(11,513,967)
At June 30, the City of Tukwila proportionate share of the collective net pension liabilities was as follows:
76
NOTES TDTHE FINANCIAL STATEMENTS
Proportionate
Share 6130/16
Proportionate
Share 6/30/17
Changein
Proportion
PERS1
0.131354%
0.127058%
-0.004206Y6
PERS2/3
0.186823%
0.161787%
-0.004835%
PSERS2
0.048428%
0.04558596
-0.00288396
LEOFF1
0.077800%
0.082088%
0.004198%
LEDFF2
0.51088396
0.50326096
-0.00739496
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 3Uare used
as the basis for determining each employer's proportionate share of the collective pension amounts reported by the
DRS in the Schedules of Employer and NonemployerAllocations for all plans except LEOFF 1.
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1 from
1971 through 2000and the retirement benefit payments infiscal year 2817. Historical data was obtained from a
2011 study bythe Office ofthe State Actuary (OS/\). |nfiscal year 2U17.the state ofWashington contributed 87.12
percent of LEOFF 1 employer contributions and all other employers contributed the remaining 12.88 percent of
employer contributions. LEOFF 1 is fully funded and no further employer contributions have been required since
June 2000. If the plan becomes undarfunded, funding of the remaining liability will require new legislation. The
allocation method the plan chose reflects the projected long-term contribution effort based on historical data.
In fiscal year 2017, the state of Washington contributed 39.35 percent of LEOFF 2 employer contributions pursuant
to RCW 41.26.725 and all other employers contributed the remaining 60.65 percent of employer contributions.
The collective net pension liability (asset) was measured as of June 30, 2017, and the actuarial valuation date on
which the total pension liability (asset) is based was as of June 30, 2016, with update procedures used to roll forward
the total pension liability to the measurement date.
Pension Expense
For the year ended December 31, 2017, the city of Tukwila recognized pension expense as follows:
Pension Expense
PE0S1
141'548
PERS2/3
021.303
PSERS2
12.312
LEOFF 1
(245.835)
LEOFF2
246.870
F|REK4EN'SPENS|ON
22.825
TOTAL
798,890
Deferred Outflows mfResources and Deferred Inflows ofResources
At December 31, 2017, the City of Tukwila reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
77
CITY OF TUKWILA: 2017 CAFR
NOTES TO THE FINANCIAL STATEMENTS
PERS 1
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected
and actual experience
-
-
Net difference between projected
and actual investment earnings on
pension plan investments
-
(224,985)
Changes of assumptions
-
Changes in proportion and
differences between
contributions and proportionate
share of contributions
Contributions subsequent to the
measurement date
$403,522
TOTAL
$403,522
($224,985)
PERS 2/3 '
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and
actual experience
$569,573
($184,876)
Net difference between projected
and actual investment earnings on
pension plan investments
$0
(1,498,510)
Changes of assumptions
$59,709
-
Changes in proportion and
differences between contributions
and proportionate share of
contributions
$0
(392,461)
Contributions subsequent to the
measurement date
$591,332
TOTAL
$1,220,614
($2,075,847)
78
CITY OF TUKWILA: 2017 CAFR
NOTES TO THE FINANCIAL STATEMENTS
PSERS 2
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and
actual experience
$5,280
(634)
Net difference between projected
and actual investment earnings on
pension plan investments
$0
(6,262)
Changes of assumptions
$76
-
Changes in proportion and
differences between contributions
and proportionate share of
contributions
$0
(909)
Contributions subsequent to the
measurement date
$3,307
TOTAL
$8,663
($7,805)
LEOFF 1 '
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected
and actual experience
-
-
Net difference between projected
and actual investment earnings on
pension plan investments
$0
(115,729)
Changes of assumptions
-
-
Changes in proportion and
differences between
contributions and proportionate
share of contributions
Contributions subsequent to the
measurement date
TOTAL
$0
($115,729)
79
NOTES TDTHE FINANCIAL STATEMENTS
LEOFF 2
Deferred Outflows
of Resources
Deferredinflows
of Resources
Differences between expected and
actual experience
$306,9*9
<zs*uas
Net difference between projected
and actual investment earnings on
pension plan investments
$o
(1,567,899)
Changes vfassumptions
$8,410
Changes inproportion and
differences between contributions
and proportionate share of
contributions
10425*
($27,650)
Contributions subsequent to the
measurement date
$422'845
TOTAL
$842'459
<$1,860\385>
Deferred outflows ofreaourceore|abedhupenaionoreoultingfnomtheCdyofTukwi|aconthbuUonoaubaequentto
the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31,
2018. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be
recognized inpension expense aafollows:
2018
(268,416)
201984,743
2020
(19.676)
2021
(193,753)
2022
Thereafter
TOTAL
(397°102)
December 31
2018
(739,269)
3019
44,41I
2020
(172,268)
2022
32,397
Thereafter
29,116
80
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
Year ended
December 31
PSERS
2018
(1,455)
2019
1,005
2020
191
2021
(1,426)
2022
(130)
Thereafter
(636)
TOTAL
(
Year ended
December 31
LEOFF 1
2018
(72,630)
2019
19,588
2020
(7,822)
2021
(54, 865)1
2022
Thereafter
TOTAL
(115,729)
Year ended
December31
LEOFF 2
2018
(715, 664)
2019
167,754
2020
(102, 984)
2021
(669, 460)
2022
(21, 503)
Thereafter
(98,912)
TOTAL
(7.,41,770)
Firemen's Pension System
Summary of Significant Accounting Policies
Investments are valued and reported at fair value.
Plan Description
81
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
Plan Administration: The Firefighters" Pension Fund is administered by the City of Tukwila. The plan is a single -
employer defined benefit pension plan that provides pensions for firefighters that were hired prior to 1970.
The firefighters' pension board consists of the following five members: the chairperson of the fire commissioners for
said district who shall be chairperson of the board, the county auditor, county treasurer, and in addition, two regularly
employed or retired firefighters elected by secret ballot of the employed and retired firefighters. Retired members
who are subject to the jurisdiction of the pension board have both the right to elect and the right to be elected under
this section. The first members to be elected by the firefighters shall be elected annually for a two-year term. The
two firefighter -elected members shall, in turn, select a third eligible member who shall serve in the event of an
absence of one of the regularly elected members.
Plan membership is limited to active members of the Firefighters' Pension Fund (FPF) as of March 1, 1970. On that
date, the Washington Law Enforcement Officers' and Firefighters' System (LEOFF) was established. FPF is
responsible for paying the pensions of those members retired prior to March 1, 1970 and for providing the "excess
benefit", the excess of FPF formula benefits over the LEOFF benefits. Therefore, the plan is closed to new
members. At December 31, 2017, FPF membership consisted of the following:
Type ofMembrshi p
Inactive plan members retired prior to March 1, 1970
Inactive plan members retired March 1, 1970 or after
Active Plan Members
Benefits Provided
al
0
10
0
All benefit terms are in statutes RCW 41.16, 41.18, and 41.26. FPF provides retirement, disability, and death
benefits. Each firefighter in service on March 1, 1970 receives the greater of the benefit payable under the
Washington Law Enforcement Officers' and Firefighters' Retirement System and the benefits available under the
provisions of prior law. Where benefits under the old law exceed those under the new law for any firefighter, the
excess benefits are paid from the FPF of the city employing the member on March 1, 1970.
All members are retired and drawing benefits. Benefit terms provide for cost -of -living adjustments to each member's
retirement benefit. There are two types of increases: escalation by salary in proportion to the current salary of the
rank from which the firefighter retired, or an increase proportionate to the increase in the Seattle -area CPI, with the
change computed annually. Regardless of the increase (or decrease) in the CPI, the benefits are increased at least
2% each year. The former applies to firefighters who retired from service after 1969, their survivors, and to
firefighters who retired for duty disability (but not their survivors) after 1961. The latter applies to all other types of
monthly benefits.
Contributions
As long as the FPF provides for benefits to covered members, the City will be eligible to receive a share of the
State's distribution of the fire insurance premium taxes. The amount the City receives is 25% of all monies received
by the State from taxes on fire insurance premiums. Contributions can also come from taxes paid pursuant to the
provisions of RCW 41.16.060. This statute require that each municipality levy up to $0.45 (only $0.225 of which can
be in excess of the property tax limit pursuant to RCW 84.52.043) per $1,000 of assessed valuation, based on
reports by a qualified actuary, to maintain the fund.
The actuarial assumptions were provided by an independent actuary.
Investments
82
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
|tksthe policy nfthe City ofTukwila hoinvest public funds inamanner that will provide maximum security with the
highest investment return while meeting the daily cash flow demands of the City, while conforming to all state and
local statutes governing the investment nfpublic funds.
The money -weighted rate of return expresses investment performance, net of investment expense, adjusted for the
changing amount actually invested.
Concentrations. Approximately 70%ofinvestments are inalong-term government bond.
City's Net Pension Liability
The components of the City's net pension liability at December 31, 2017 are as follows:
Total pension liability $ 1.414.062
Less: Plan fiduciary net position 4,480.583
Cih/onet pension liability $ -45.601
Plan fiduciary net position aoa
percentage of the total pension liability
83
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
Schedule of Changes in the City's Net Pension
Total Pension Liability
Service cost
Interest
Changes of benefit terms
Difference between expected & actual
experi ence
Changes of assumptions
Benefits payments, included refunds of
employee contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)
Plan Fiduciary Net Position
Contributions - employer
Contributions - employee
Net i nvestment i ncome
Benefit payments, including refunds of
employee contributions
Administrative expense
Other
Net change in plan fiduciary net position
iability and Related Ratios
2014 2015 2016 2017
50,098 49,716 49,332 38,796
(2,442) (311,190)
- (62,728)
(61,863) (58,277) (59,988) (69,186)
(11,765) (11,003) (384,574) (30,390)
1,852,693 1,840,928 1,829,925 1,445,351
1,840,928 1,829,925 1,445,351 1,414,961
64,114 63,590 66,360 68,848
1,805 2,667 7,988 39,157
(61,863) (58,277) (59,988) (69,186)
- (4,500) (4,500) (4,624)
4,056 3,480 9,860 34,195
Plan fiduciary net position - beginning 1,408,970 1,413,026 1,416,506 1,426,366
Plan fiduciary net position - ending (b) 1,413,026 1,416,506 1,426,366 1,460,561
City's net pension liability - ending (a) - (b)
Plan fiduciary net position as a percent of
total pension liability
Covered employee payroll
City net pension liability as a percent of
covered employee payroll
427,902 413,419 18,985 (45,600)
76.76% 77.41% 98.69% 103.22%
n/a n/a
n/a n/a
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2017, the City of Tukwila reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
84
CITY OF TUKWILA: 2017 CAFR
NOTES TO THE FINANCIAL STATEMENTS
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between
expected and actual
experience
-
Net difference between
projected and actual
investment earnings on
pension plan investments
60,482
-
Totals
$60,482
-
Deferred outflows of resources related to pensions resulting from the City of Tukwila contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31,
2017. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Year ended December 3'l:
2018
22,625
2019
15,231
2020
15,231
2021
-
2022
-
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of December 31, 2016, using the following
actuarial assumptions, applied to all periods included in the measurement:
Inflation
Salary increases
Investment rate of return
2.75%
3.75%
2.75%
Healthy life mortality rates were based on the RP-2014 mortality table, total dataset, fully generational projected
with Scale MP-2014, set back one year for males and set forward one year for females. Disabled life mortality rates
were based on the RP-2014 mortality table, total dataset, fully generational projected with Scale MP-2014, set back
two years for males and females.
The long-term expected rate of return on pension plan investments assumption was based on the nature and mix
of current and expected pension plan assets over a period of time representative of the expected length of time
between the first day of service and date of the last benefit payment.
The discount rate used to measure the total pension liability was 2.75%. The projection of cash flows used to
determine the discount rate assumed City contributions were equal to revenue received from Fire Insurance
premiums and the amount received would increase at the inflation rate of 2.75%. Based on this assumption, the
pension plan's fiduciary net position was projected to be available to make all projected future benefit payment of
85
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied
to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the net pension liability to changes in the discount rate. The following presents the Firemen's net
pension liability of the City, calculated using the discount rate of 2.75%, as well as what the net pension liability
would be if it were calculated using a discount rate that is 1-percentage-point lower, 2.75%, or 1-percentage point
higher, 3.75%, than the current rate:
Firemen's net pension 1 % Decrease Current Discount 1 % Increase
liability Rate
$ 136,435 $ (45,601) $ (199,362)
Basis of Valuation
A general summary of the substantive plan used as the basis of the valuation follows.
Applicable Statutes
Benefits
RCW 41.16, 41.18, 41.26
Each firefighter in service on March 1, 1970 receives the greater of the benefit
payable under LEOFF or FPF. Where benefits under the old law exceed those
under the new for any firefighter, the excess benefits are paid from the FPF of
the city employing the member on March 1, 1970.
Service Retirement Benefit
Member Eligibility: age 50 and 25 years of service (RCW 41.18.040) or Age 50 and five
years of service (RCW 41.26.090).
Survivor
Amount of benefit: 50% of salary plus an additional 2% for each year of service
in excess of 25 years. Maximum benefit of 60% of salary (does not apply for
those retiring after July 1, 2006).
Eligibility: spouse or child
Amount of benefit: continuation of the firefighter's benefit. (If spouse — same,
plus additional 5% of salary per child. If no spouse — 30% of salary for first
child, 10% for each additional child. Maximum of 60% of salary).
Duty Disability Retirement Benefit
Member
Eligibility: disabled after six-month waiting period.
Amount of benefit: determined the same as Service Retirement Benefit.
Recovery: restoration to service.
Survivor See Survivor's Benefit section under Service Retirement.
Non Duty Disability Retirement Benefit
Member Eligibility: disabled after 90-day waiting period. Amount of benefit: 50% of
salary, or service retirement benefit, if greater.
Recovery: see Duty Disability Retirement.
Limitations: no benefits payable if firefighter employed elsewhere when
disabled.
86
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
Survivor
Duty Death Benefit
Non Duty Death Benefit
Special Provisions
Deferred Benefit
Postredimment|nomase
Benefits Payable
UndarLEOFF
Type
Type
Applicability
Minimum Benefit
Funeral Benefit
Participant Summary
Eligibility: spouse nrchild
Amount of benefit:
33.3% towidow orchildren only.
45.8% towidow and one child.
47.696 bowidow and two children.
50.096 tuwidow and three children.
Eligibility: spouse orchild
Amount ofbenefit: If spouse -- 50% of salary plus an additional 596 of salary
per child; maximum benefit of6096ofsalary. |fnospouse --5896ofsalary to
children.
Eligibility: spouse nrchild
Amount ofbenefit: provisions the same aaSurvivor's Benefit under Non -Duty
Disability Retirement.
Under disability or death benefits, a surviving spouse may elect a lump -sum
payment of$S.00Uinlieu uffuture monthly benefits.
Termination after 20 years of service (RCW 41.18.130) or five years of service
(RCVV41.3&OAO).
Commences: when a firefighter would have had 25 years of service (RCVV
41.18.138)orage 5U(RCVV41.26.00O).
Amount ofbenefit: 296 ofsalary for each year ofservice. Other provisions
apply, see statutes.
Death while vested prior to commencement of benefits: payment of firefighters
deferred benefit hospouse orchild.
Annual increase proportionate to the increase in the Seattle -area CPI.
Minimum increase atleast 396each year.
Escalation by salary in proportion to current salary or rank from which the
firefighter retired.
Annual increase proportionate to the increase in the Seattle -area CPI.
Minimum increase atleast 2Y6each year.
Typo 1 applies to firefighters who retired from service after 1069. their
aurvivoro, and to firefighters who retired for duty disability (but not their
survivors) after 1961. Type 2 applies to all other types of monthly benefits
After April 25. 1073, a minimum benefit of$30U per month to all retired
firefighters and their survivors. This minimum iaincreased bythe CPI.
$5OORCVV4118148'noprovision under RCVV41.26.
December 31.2817
Age and service determined as of the census date.
LEOFF Plan 1 (Firemen'sPension) Inactive Participants
Age
Service
Retirees
Disabled
Retirees
Surviving
Spouses
Total
<85
U
U
0
0
65-60
U
U
0
0
87
CITY OF TUKWILA: 2017 CAFR
NOTES TO THE FINANCIAL STATEMENTS
70-74
1
1
1
3
75 — 79
1
1
2
4
80-84
0
1
1
2
85-89
1
0
0
1
90 +
0
0
0
0
Total
3
3
4
10
Monthly pension amounts as of January 1, 2017:
Paid by City
Paid by LEOFF
$4,928
$36,752
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 December 31 valuation were:
Assumption
Actuarial Cost Method
Asset Valuation Method
Measurement Date
Inflation Rate
Discount Rate (or Investment
Return)
Cost of Living
Salary Increases (for calculated
benefit increases based on
rank)
Healthy Mortality
Disabled Mortality
Turnover
Disability
Rates
Entry Age
Fair Market Value
December 31, 2016 (Projected to December 31, 2017)
2.75%
We based the long-term expected rate of return on
pension plan investments assumption on the nature
and mix of current and expected pension plan assets
over a period of time representative of the expected
length of time between the first day of service and date
of the last benefit payment. The rate of 2.75% was
selected.
2.75%, based on SSA OASDI 2016 report.
3.75%, based on SSA OASDI 2016 report.
RP-2014 mortality table, total dataset, fully generational
with mortality improvement scale MP-2016setback one
year for males and set forward one year for females.
RP-2014 mortality table, total dataset, fully generational
with mortality improvement scale MP-2016 set forward
two years for males and females.
n/a
n/a
88
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
We assumed that wives are three years younger than
husbands.
NOTE 8—OTHER POSTEK8PLOYMENT BENEFIT AOPEBNPLAN
During the year ended Deoember31. 2008. the City elected to adopt the provisions nfGASB Statement No. 45.
"Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions" (GASB No.
45), which requires the City to accrue other postemployment benefits (OPEB) expense related to its postretirement
healthcare plan based on a computed annual required contribution (ARC) that includes the current period's service
cost and an amount to amortize unfunded actuarial accrued liabilities. Instead of recording expense on o "pay'aa-
you-go"basis, the City, under GASBNo. 45.has recorded uliability of$10.487.883 for the difference between the
actuarially calculated ARC and the estimated contributions made since the adoption of GASB No. 45. This liability
is included in other noncurrent liabilities in the accompanying Deoember31. 2017 statement ofnet position. The
effect of GASB No. 45 for the current fiscal year was to decrease the City's excess of revenue over expenses before
capital contributions and the City's increase in net position for the year ended December 31, 2017 by $1,309,047.
Plan Description
The City of Tukwila's LEOFF Plan 1 (the Health Plan) is a single -employer defined -benefit healthcare plan
administered by the City. The authority to establish and amend benefits is determined by the LE{}FF board. The
Health Plan provides medical, prescription drug, dental, Medicare Part Bpremiums, long-term oane, and vision
expenses for LEOFF Plan 1 retirees. Dependent spouses and children are not covered. The Health P|an'n actuary
is Healthcare Actuaries. The Health Plan does not issue a separate standalone financial report.
Funding Policy
The City does not require retiree contributions. All benefits are paid in full by the City.
For the fiscal year ended Deoember31. 2017. the City contributed $043.150 to the Health Plan through use of
existing fund balance. The City's contribution was entirely to fund 'pay-as-you-go' costs under the Health Plan and
not topnafundbenefits. There were noretiree contributions.
Annud0pEB Cost and Net OPE8Obi0ation
The City's annual other postemp|oymant benefit (3PEB) 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 period not to exceed ten years. The following tables show
the components of the City'a annual OPEB cost for the current year and prior two yeare, the amount actually
contributed iuthe plan, and changes inthe City'onet OPEBobligation.
ANNUAL OPEB COST AND NET OPEB OBLIGATION
89
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
Annual required contribution (ARC)
Interest on Net OPEB Obligation
Adjustment to ARC
Annual OPEBcost (expenee)
Employer contributions
Change in Net OPEB Obligation
Net OPEB Obligation at Beginning of year
Net OPEB Obligation at End of year
146004 178.623
(452.441) (634.606)
2.280.242 2.300.443
(477,292)
1,802,950
(275,530
2.033.013
5,241.973 7,144.923
$ 2.883.884
252.418
(8K84.105)
2,252,197
(943.150)
1,309,047
9,10.836
The net OPEB obligation of $10,487,883 is included as a non -current liability on the Statement of Net Position.
ANNUAL DEVELOPMENT OF OPEB COST
Interest on
Net opso ARC
Obligation Adjustment
Total
Employer Change in metopEa
Annual Conn' Net OPEs Obligation VGcuny
ops000at ouoona Obligation Balance Loss
$1.3*6.284 $ 557.103 $ 809.181 $ 809.181 $809.181
40,*5e 61.839 1.3**e0* 335,265 1.009639 1.818.820 1.031.019
90.e41 1*3.332 1.313.8e3 317.771 ee6.122 2.e14.e*2 1.048.513
112'5e8 213.80e 1.1*3.311 335,090 828.221 3.*43.1e3 92e.432
145.727 287.945 1.122.304 404.007 718.2e7 4.3e1.4*0 8e0.515
17*.*58 359.90* 1.07e.076 or*.rnn 200.321 4.561.781 385,767
171.067 388,580 1.6e6.166 905.974 780.192 5.341.973 997,705
14e'90* 452.441 2.280.242 477.292 1.802.e50 7.144.923 2.108.487
178.623 634,666 2.309.443 275.530 2.033.913 e.17e.836 2.4ee.956
2017 z.aanaa* 252,*18 884.105 2.252197 e43150 1.309047 10.4*7883 1.e*0734
~ Based una21-year closed amortization aoofJanuary 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 OFANNUAL OPEB COST CONTRIBUTED
Fiscal Year Ending
December 31.2015
December 31.201G
December 31.2017
AnnmalOPEB
Cost
2.280.242
2,309,443
2,252,197
Employer
Contribution
477,292
275,530
943,150
Percentage of
Annum|C)PEB
Cost Contributed
20.9%
11.9%
41.9%
Net OPEB
Obligation
7,144,923
9,178,836
10.487.883
90
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
Funded Status and Funding Progress
As of January 1, 2017, the most recent actuarial accounting update, the plan was 0% funded. The actuarial accrued
liability for benefits was $28.1 million, and the actuarial value ofassets was $0.resulting inanunfunded actuarial
accrued liability (UAAL)of$20.1 million and a funded ratio of 0%. The funded ratio is 0%, because the City funds
benefits unapay'ao'you'gobasis.
SCHEDULE OFFUNDING PROGRESS (rounded &othousands)
Actuarial
Valuation Date
January 1'2014
January 1.2015
January 1'2017
Actuarial Value
of Assets
`-'
~.
$0 $0
Actuarial Accrued
UabUUnh44L '
Entry Age Normal
`-'
$21,264'000
$29.538.048
$29,054'716
Unfunded AAL
0AAU Funded Ratio
(b~a) (a*b)
$21'264'000 0.0%
$29.538'048 0.0%
$29054716 0L0%
Covered
Payroll (C) n/a
n/a
O/a
UAALoao
Percentage of
Covered Payroll
((h'm)+c)
rV3
n/8
n/8
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability ofoccurrence ofevents far into the future. Examples include assumptions about future employment,
morta|ih/, and healthcare cost trend. Actuarially determined amounts are subject to continual revision as actual
results are compared with past expectations and new estimates are made about the future. GASB45requires that
the schedule of funding pnognaao, presented as required supplementary information following the notes to the
financial statements, presents multi -year trend information that shows whether the actuarial value of Health Plan
assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions
The basis of projections of benefits for financial reporting purposes is the oubnbanUws plan (the Health Plan an
understood by the City and members of the Health Plan) and includes the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the City and Members of the Health
Plan members to that point. 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 nfthe calculations.
The January 1.2O15valuation used the entry age normal actuarial cost method. The actuarial assumptions included
a 2.75% investment rate of return (net of administrative expenses) and an initial annual healthcare cost trend rate
of0.096for pre -Medicare expenses, tnanultimate rate nf3.896after 81 years. The Medicare trend assumption is
0.596, to an ultimate rate nf3.896 after 01 years. The dental trend assumption is 5.596, to an ultimate rate of3.5Y6
after years. The Medicare premium trend rate is 5.4% for all years. The long-term care trend rate is 5.0% for all
years. The trend for the Excise Tax threshold is 0% until 2020, when a trend rate of 4.24% is used. The trend for
all future years after that year is 3.24%. All trend rates include a 3.0% inflation assumption. The UAAL is amortized
aoalevel dollar amount onaclosed basis over 21 years beginning January 1.2888.The remaining amortization
period atDecember 31.2017was 11.0years.
Assumption
Rates
Actuarial Cost Method
Entry Age Normal method.
91
NOTES TDTHE FINANCIAL STATEMENTS
Measurement Date
January 1.2015(Projected toDecember 31.2O17)
Inflation Rate
3.00%
Discount Nate (or Investment
Return)
Selected the assumed discount rate of2.75% based on the five -
year average investment yield on the investments expected to
finance the payment ofbenefits.
Healthy Mortality
RPH-2014mortality table (headcount vveightod).total dataoet.fully
generational with mortality improvement scale yWP'2014 setback
one year for males and set forward one year for females.
Disabled Mortality
0pH-2014 mortality table (headcount weighted), total dataset, fully
generational with mortality improvement scale K4P-2O14set forward
two years for males and females.
Turnover
None assumed. All LE()FF 1 actives are fully eligible for retirement.
Per Capita Claims Coot
Assumed annual per capita claims costs are as follows:
Age Medioa|/Flx Dental Vision LTC
55 $ 21.875 $ 068 $ 181 $ 133
60 28.071 066 181 220
65 15.406 066 181 448
70 16.024 088 181 1.183
75 17.084 066 181 3.028
80 18.348 066 181 6.400
Aging orMorbidity Factors
Aging/morbidityfaotoro are included in the per capita claims costs
shown above (except dental and vision).
Medicare Part B Premium
Reimbursements
The City reimburses Medicare retirees for Part B premiums. The
2015 annual premium is $1.258.88.
Affordable Cana Act (ACA)
Excise Tax Threshold
Ages 55-84 All Other
Single $ 11.85U $ 10.2U0
ACABase Premium
Assumed annual plan costs upon which the ACAtax calculation ia
based:
Medicare ineligible $ 28.071
Medicare eligible $ 18.557
ACA Tax
,VVeassumed a4096excise tax rate unpremiums above the ACA
threshold.
^VVeassumed the City ofTukwila pays nofederal taxes.
^VVoassumed the excise tax will apply tom*dioa|/Rxand Medicare
premium reimbursements.
Trend Rates
Medical Long -Term Trends* from Getzen S{}A Model version
2014 busing baseline assumptions.
92
CITY OF TUKWILA: 2017 CAFR
NOTES TO THE FINANCIAL STATEMENTS
Excise
Pre- Part B Long -Term Tax
Year Medicare, Medicare Dental Vision Premiums Care Threshold
2015 9.00% 6.50%5.5 4.0% 5.4% 5.0% 0.00%
2016 7. 50% 6..50%5.0% 4.0% 5.4% 5.0 .(X1
2017 6.50 . mt1t1 4.5% 4.0% 5.4% 5.0 tleftl
2018 5. 50% 5. 50% 4.0% 4.0 . 5,4% 5.f
2019 5. 50. 5.503.5 3.5" 5.4% 5.
2020 5.46% 5.48% 3.5% 3.5% 5.4% 5.
2021-2074 3.5 3.5%. 5.4% 5,0
2075+ 3.80E 3®8t1% 3.5 3.5% 5.4% 50 "
Thee trend rates include assumed inflation of 3% all future ire
4.24%
3.24
3.24
3, 24
3 0 24
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.
NOTE 10 - LONG-TERM LIABILITIES
Governmental Activities Long -Term Debt
General Obligation Bonds are direct obligations of the City for which its full faith and credit are pledged. Debt
service for voter -approved issues, of which the City has one, are funded by special property tax levies. Debt service
for City Council authorized bonds, also called councilmanic bonds, is funded from regular property taxes, sales
taxes, or other general revenues, and is generally paid from debt service funds. The City currently maintains a
rating of Aa3 from Moody's Investor Service and AA from Standard & Poor's.
General Obligation Bonds outstanding at year-end are as follows:
• 2008 LTGO bonds were issued to refund the remaining debt of the 1999 LTGO bonds. The 1999 LTGO
bonds were issued to purchase an additional City Hall Annex (6300 building) and economic revitalization
projects.
• 2010 LTGO bonds were issued for the construction and realignment of Southcenter Parkway in the Tukwila
South Annexation area and for the cost of emergency preparedness capital and other equipment.
• 2011 LTGO refunding bonds were issued to refund a portion of the bonds issued in 2003 for the City's Arterial
Street program.
• 2013 LTGO bonds were issued and the proceeds loaned to the Tukwila Metropolitan Park District to pay for
improvements to the pool.
• 2014 LTGO bonds were issued to fund the purchase of land acquisition and capital costs of redevelopment
activities within the City's Tukwila International Boulevard (TIB) urban renewal area.
• 2015 LTGO bonds were issued to pay for improvements to Interurban Avenue South and reconstruct or
retrofit Boeing Access Road Bridge.
93
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
* 2016 UTGO bonds in the amount of $32.99 million were issued after voters approved a $77.385 million bond
measure that will fund ajuoUoa center, rebuild 3 fire stations and provide Una apparatus and life -safety
equipment replacement for 20 years.
° 2017 LTGO bonds were issued to fund residential street improvements including adding sidewalks and
undergrounding utilities on 42nd and 53rd Avenues.
* 2017 refunding bond was issued to pay off the 2014 general obligation bond in the form of a line -of -credit that
was utilized to purchase property and pay for capital costs of redevelopment activities within the City's Urban
Renewal area.
Special assessment bondare issued to finance construction oflocal improvement district (LID)projects and are
repaid through assessments collected from property owners benefiting from related improvements. Although the
bonds are secured by liens against assessed properties, the City is required under state law to establish a guaranty
fund to provide a means of paying LID bond debt service obligations in the event there are insufficient resources in
the LID debt service fund. The special assessment bonds are not general obligation debt but the City is obligated
insome manner hucover the interest onthe bonds. Therefore, the bonds are reported aoSpecial Assessment Debt
with Governmental Commitment.
Special assessments outstanding adyear-end are aafollows:
°2013special assessment bonds LID No. 33 were issued to reimburse the City for aportion of the costs of
major reconstruction of Klickitat and Southcenter Parkway to improve access to the urban center.
Business -Type Activities Long -Term Debt
Revenue bond indebtedness issued to fund proprietary activities is recorded in proprietary funds. Debt service
payments are made from operating revenues generated by the proprietary funds. |nproprietary funds, bonds are
displayed net of unamortized premium or discount; annual interest expense is decreased by amortization of debt
premium and increased by the amortization nfdebt discount. The City currently does not maintain a rating from
any of the rating agencies because the outstanding revenue bonds are in private placement.
Revenue bonds outstanding atyear-end are asfollows:
°2015 M bonds were issued to refund the remaining debt of the 2006 revenue bonds. The
bonds were issued to provide neighborhood revitalization to Allentown and Foster Point Sewer system.
State of Washington Public Works Trust Fund Loans are a low interest rate loans available from the State of
Washington Department ofCommerce, Local Government & Infrastructure Division for qualifying projects and are
a direct responsibility of the City. This debt is repaid by proprietary fund revenues.
Public Works Trust Fund loans outstanding atyear-end are aufollows:
° 2003 loan to install new sewers in the Ouwamish neighborhood. The project upgraded water and surface
water infrastructure.
~ 2004 loan to inabs| now water, sewer, and surface vvab*r infrastructure in Allentown and Foster Point
neighborhoods. Additionally, 2 new sewer lift stations with generators, 33 manholes and catch basins. and
15 new fire hydrants were installed.
~ 2004 loan constructed an underground collection system in the Cascade View neighborhood.
94
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
* 2014loan tninstall sewer liners inthe City'scommercial business district ofSuuthoenb*c Relining the sewer
main avoids full excavation for a significant savings and has minimal impact to the roadway.
The City is in compliance with all Washington State debt limitation statutes and bond indenture agreements.
The schedules that follow summarize the long-term debt transactions of the City for the year ended December 31,
2017.
CHANGES |NLONG-TERM LIABILITIES SWMMARY-GOVERNMENTALACTIVA|ES
`-----------,�W=r~,~`_-*NdM �r=," ~P=~�-M_~='..-_--1313�`=`I "",~-``�~��`-,
OutstandingU101/2O17 $54.114,932 $5,412.500 $3.774.201 $ 0.093.600 $S.178,830 $12.943778 $ 91.517,040
Added 10,456000 3,007977 1.309047 15,373024
Retired /redeemed (5.350427) (607.500) p.798.073 (179.200) - (3.198,720) (13.140,520)
Outstanding 12/31/2017 $59.214,505 $4.805.000 $ 3.583.505 % 5,914,400 $10.487883 $ 9.745053 $ 93.750340
�47,V0
$ 98.198,227
Add Premiums, Subtract Discounts
Debt Service to Maturity
Following are schedules showing the debt service requirements homaturity for the Cit/olong-term debt, excluding
compensated absences, OPEB, and pensions.
Governmental Activities
Year Ended
December
31
General Obligo cm ��
Bonds
Phncipa| Interest
Due 10Other Go\emmwntn
Principal Interest
Special Assessments
Phnnipa| Interest
Total
2018
2019
2020
2021
2022
2U23'2027
2U28-2O33
2U33-2O37
2O38-2O4O
Totals
3,807.198 $ 2,481.932
3,828.521 2,322.847
2.051.461 2.146.167
2,105,580 2,069141
5.147.786 1.981.309
13,528.00 7,721.086
14.917.000 4.704014
$ 184,800 $ 243173
190.800 237.089
197,200 220039
207.200 220332
214.800 212.570
1.204.800 028.103
1.478.000 844078
1.048000 222227
$ 485000 $ 257055
445.000 243.638
445.000 223.613
445.000 203.588
445.000 183.563
2.225.000 594.075
315.000 71.758
$ 59,214.585 $24.088.741 $ 5.814'400 $ 3.013.030 $ 4,805000 $ 1.777.886
$ 7,259.755
7.287.875
5,292,479
5,340\8O1
8\18i1OG
26,199,064
22,220,748
18.882.384
1,266,930
$ 09.715.162
95
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
CHANGES IN LONG-TERM LIABILITIES — GOVERNMENTAL ACTIVITIES
ITEM
Interest OUTSTANDING OUTSTANDING Due Within
Rates Maturity Authorized 12/31/2016 ISSUED REDEEMED 12/31/2017 One Year
GOVERNMENTAL ACTIVITIES:
Limited General Obligation (LTGO) Bonds Payable:
2008 Refunding-Streets/Facilities 4.00-6.00 12/01/19 6,180,000 2,165,000 - 680,000 1,485,000 720,000
2010 Streets / Equipment 2.00-5.41 12/01/24 5,870,000 3,575,000 405,000 3,170,000 415,000
2011 Refunding Streets (2003 GO) 1.25-4.00 12/01/23 4,620,000 3,360,000 - 435,000 2,925,000 445,000
2013 LTGO-MPD Pool Improve 2.00-4.00 12/01/22 1,000,000 609,932 96,427 513,505 99,196
2014 LTGO-Urban Renewal 0.85-4.86 12/01/34 3,850,000 3,560,000 - 150,000 3,410,000 153,000
2014 LTGO-Line of Credit 1 Mo. LIBOR+ 1.0% 12/01/17 2,250,000 2,250,000 2,250,000
2015 LTGO-Interurban, BAR 2.25-3.00 12/01/35 5,825,000 5,605,000 225,000 5,380,000 230,000
2017 LTGO-42nd & 53rd Streets 3.00-3.50 12/01/37 8,180,000 8,180,000 8,180,000 305,000
2017 Refunding Line of Credit 2.60-3.00 12/01/22 2,276,000 2,276,000 2,276,000
Total LTGO Bonds Payable 40,051,000 21,124,932 10,456,000 4,241,427 27,339,505 2,367,196
Unlimited General Obligation (UTGO) Bonds Payable:
2016 UTGO - Public Safety 4.50-5.00 12/01/35 77,385,000 32,990,000
Total UTGO Bonds Payable 77,385,000 32,990,000
1,115,000 31,875,000 1,240,000
1,115,000 31,875,000 1,240,000
Issuance premiums 4,380,732 (67,149) 4,447,881
Net Bonds Payable 117,436,000 58,495,664 10,456,000 5,289,278 63,662,386 3,607,196
Due to Other Governments
2009 Facility SCORE 3.00-6.62 01/01/39 6,898,800 6,093,600 - 179,200 5,914,400 184,800
Total Due Other Governments 6,898,800 6,093,600 - 179,200 5,914,400 184,800
Special Assessment Debt
Klickitat Urban Access Project 3.150-5.375 01/15/29 6,687,500 5,412,500
Total Special Assessment Debt 6,687,500 5,412,500
607,500 4,805,000 485,000
607,500 4,805,000 485,000
Other Post-Employement Benefits Payable 9,178,836 1,309,047 10,487,883
Net Pension Liability 12,943,779 3,198,726 9,745,053
Compensated Absences: 3,774,201 3,607,977 3,798,673 3,583,505
Total Governmental Funds $ 131,022,300 $ 95,898,580 $ 15,373,024 $13,073,377 $ 98,198,227 $ 4,276,996
All governmental funds debt is liquidated by the general fund except for the special assessment debt and the 2009
SCORE intergovernmental debt. The special assessment debt is liquidated from assessments collected annually
from property owners within boundaries of Local Improvement District #33. The 2009 SCORE debt was paid by
SCORE from user fees.
96
CITY OF TUKWILA: 2017 CAFR
NOTES TO THE FINANCIAL STATEMENTS
CHANGES IN LONG-TERM LIABILITIES SUMMARY - BUSINESS -TYPE ACTIVITIES
Outstanding 01/01/2017
Added
Retired / redeemed
Outstanding 12/31/2017
Total Long -Term Liabilities
Debt Service to Maturity
BONDS
$1, 597, 704
(143, 282)
$1,454,422
T FUND
LOANS
$ 5,046,990 $
(599,468)
$ 4,447,522 $
I
298,359
329,386
(309, 348)
318,397
V
TOTAL
$ 2,539,403 $ 9,482,456
329,386
(740,392) (1,792,490)
$ 1,799,011 $ 8,019,352
$ 8,019,352
Following are schedules showing the debt service requirements to maturity for the City's long-term debt, excluding
compensated absences and net pension liability.
Business -Type Activities
Year Ended
December
31
Revenue Bonds
Principal Interest
Public Works Trust Fund Loans
Principal Interest
Total
2018
2019
2020
2021
2022
2023-2027
2028-2032
2033
Totals
149,659 $
150,736
156,614
157,178
162,531
677,704
34,033
30,531
27,004
23,339
19,662
40,168
1,454,422 $ 174,738
$ 599,468
599,468
599,468
599,447
573,417
1,270,359
205,875
20
$ 4,447,522
$ 22,238
19,240
16,243
13,246
10,248
16,219
3,088
$ 100,522
$ 805,398
799,976
799,329
793,210
765,858
2,004,450
208,963
20
$ 6,177,204
97
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
CHANGES IN LONG-TERM LIABILITIES - BUSINESS -TYPE ACTIVITIES
Interest
ITEM Rates
BUSINESS -TYPE ACTIVITIES:
Bonds Payable:
2015 Water/Sewer/SWM Refunding
Total Bonds Payable
Public Works Trust Fund Loans:
2003 Loan-Water/Sewer
2003 Loan -Surface Water
2004 Loan-Water/Sewer
2004 Loan -Surface Water
2004 Loan -Surface Water
2014 Loan -Sewer
Total Public Works Trust Fund Loans
OUTSTANDING OUTSTANDING Due Within
Maturity Authorized 12/31/2016 ISSUED REDEEMED 12/31/2017 One Year
Net Pension Liability
Compensated Absences
2.34 12/01/26
0.50 06/01/21
0.50 06/01/21
0.50-2.00 06/01/24
0.50-2.00 06/01/24
1.00 06/01/24
0.5 06/01/32
1,742,527 1,597,704
1,742,527 1,597,704
273,870 72,271
219,725 57,982
5,016,000 2,183,090
684,000 297,694
4,196,056 1,777,153
750,000 658,800
11,139,651 5,046,990
143,282 1,454,422 149,659
143,282 1,454,422 149,659
14,454 57,817 14,454
11,597 46,385 11,597
272,886 1,910,204 272,886
37,212 260,482 37,212
222,144 1,555,009 222,144
41,175 617,625 41,175
599,468 4,447,522 599,468
2,539,403 740,392 1,799,011 -
298,359 329,386 309,348 318,397 1,542
Total Business -Type Activities
$ 12,882,178 $ 9,482,455 $ 329,386 $ 1,792,490 $ 8,019,352 $ 750,669
TOTAL ALL FUNDS
$ 143,904,478 $ 105,381,036 $ 15,702,410 $14,865,868 $ 106,217,580 $ 5,027,665
LONG-TERM LIABILITIES RECONCILIATION
Governmental Business -Type Balance
Activities Activities 12/31/2017
General obligation bonds
Special assessment bonds
Revenue bonds
Public Works Trust Fund loans
Due to Other Governments
Capital Leases
Employee leave benefits
Net Premiums/Discounts
Other Post -Employment Benefits
Net Pension Liability
Total long-term debt
$ 59,214,505 $
4,805,000
5,914,400
3,583,505
4,447,881
10, 487, 883
9,745,053 1,799,011
$ 98,198,227 $ 8,019,353 $ 106,217,580
1,454,422
4,447,522
318,397
$ 59, 214, 505
4,805,000
1,454,422
4,447,522
5,914,400
3,901,902
4,447,881
10, 487, 883
11, 544, 064
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
98
CITY OF TUKWILA: 2017 CAFR
NOTES TO THE FINANCIAL STATEMENTS
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, 2017, the debt limits for the City were as follows:
SUMMARY OF DEBT LIMIT CAPACITIES
Vote of the PeoplE
2.5% 5.0%
Legal Limit
Outstanding Net
Indebtedness
Margin Available
92, 774,149 $ 154, 623, 582 $ 309, 247,163 $ 463, 870, 745
69,188, 921
23, 585, 228
69,188, 921
69,188, 921
85,434,661 $ ! 240,058,242
69,188, 921
4.
81,824
Prior Year Defeasance of Debt
In 2015, the City defeased water and sewer bonds by placing the proceeds of the new bonds in an irrevocable trust
account to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and
the liability for the defeased bonds are not included in the City's financial statements. At December 31, 2017,
$1,755,000 of the defeased bonds were outstanding.
Long-term Liabilities other than debt
Claims are paid from one or more funds based on the nature of the transaction. Employees' compensable leave is
the City's liability for all unused vacation, 25% of unused sick leave and unpaid overtime accrued by employees
and, payable under specified conditions. This obligation is paid only at the time of termination, usually from the
same funding source(s) from which the employee's salary or wage compensation was paid.
The City does not report a liability for termination benefits because it is not reasonably estimable.
Local Improvement District No. 33
Tukwila Urban Access Improvement Project Local Improvement District (LID) No. 33 was formed on November 16,
2009 by Ordinance No. 2260. The project was designed to improve congestion within the City's Urban Center. The
project included a partial lid over Southcenter Parkway, removal of conflicting turning movements, and the widening
of Southcenter Parkway.
Construction for the project began in March 2011 and was completed in October 2011. The project was closed out
and accepted as complete by City Council on February 19, 2013.
A variety of funding sources were used to pay for the project including federal and state grants, impact fees, City
funds, a right-of-way donation, and special assessments. The City chose to fund the project internally, rather than
obtain external, short-term financing then apply special assessments to property owners after the project was
completed. Fund 104 Arterial Streets, where the project was accounted for, loaned the project funds as needed
using a draw method at an interest rate of 1.80%. This loan was repaid in 2013 when special assessment bonds
were issued.
The City confirmed the assessment roll with a final assessment of $9,475,894. The prepayment period for the
special assessments was open in the fall of 2013 and during that time the City received $2,788,350 in prepayments.
Once the prepayment window closed, the City issued bonds for the remaining outstanding assessments in the
amount of $6,687,500. From these proceeds, the City deposited $668,750 to the guaranty fund. The third of 15
annual installments for the assessments was due by October 16, 2016.
99
CITY OF TUKWILA: 2017 CAFR NOTES TO THE FINANCIAL STATEMENTS
As of December 31, 2017, all LID Special Assessments were current, nothing was delinquent. During 2017, several
property owners chose to pay the assessment in full. Because of the additional principal payments received, the
City has enough funds in the LID No. 33 funds to meet debt service requirements in 2018 and pay $40,000 additional
principal.
Estimated Arbitrage Rebate
The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt of over $5 million to make payments to
the United States Treasury of investment interest received at yields that exceed the issuer's tax-exempt borrowing
rates. Payments of arbitrage rebate amounts due under these regulations must be made to the U.S. Treasury every
five years. The City's estimated rebatable arbitrage amount as of December 31, 2017 is $0 for its tax-exempt bond
issues subject to the Tax Reform Act.
NOTE 11 — COMMITMENTS
Construction Commitments. As of December 31, 2017, contractual obligations to contractors for construction
projects total $26,707,775.
Remaining
Governmental Activities Commitment
42nd Ave S Phase III $ 4,930,257
TUC Pedestrian/Bicycle Bridge 869,096
Strander Blvd. Extension Phase III 3,980,931
Public Safety Plan 6,366,254
Major Maintenance on 3 Bridges 1,120,596
S 144th Street Phase II 518,367
Baker Blvd Non -Motorized 200,639
BAR Bridge Rehab 7,676,343
Other governmental projects 149,428
Total Governmental Activities $ 25,811,911
Remaining
Business -Type Activties Projects Commitment
GIS Inventory, Asset Management System $ 165,006
Tukwila 205 Levee Certification Phase I & II 237,708
Riverton Creek Flapgate Removal 87,138
Macadam Road South Water Upgrade 80,631
Andover Park East Sewer Replacement 266,572
Other Utility related projects 58,809
Total Business -Type Activities $ 895,864
Total Construction Commitments $ 26,707,775
NOTE 12 — POTENTIAL POLLUTION REMEDIATION AND OTHER LIABILITIES
There are several lawsuits in which the City is involved. The City Attorney estimates that the potential claims against
the City to have no material financial impact.
The City of Tukwila is expected to share in potential liability under the Comprehensive Environmental Response,
Compensation and Liability Act ("CERCLA") for sediment contamination within the Lower Duwamish Waterway
100
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
Superfundoite. The Environmental Protection Agency has estimated the total cost for the waterway cleanup tobo
$342 million with as many as 120, or more parties sharing in the liability. While it is not possible to provide an
estimate of the City's potential CERCLA liability at this time, the relatively small size of the City's storm water system
within the Lower Duwamish Waterway Superfund site area, as well as the City's recent ownership of the system,
which began in 1989. means the City'o share of liability should be |ovv compared to other liable parties. A multi-
year confidential process to a||000ta DuwamiohWaterway cleanup costs is being undertaken by the major liable
parties. Once that process is completed and communicated to the City, which could occur in 2018, the City will be
in a better position to estimate its potential liability for cleanup costs within the Lower Duvvamioh Waterway
Superfundoite.
NOTE 13—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 VVC|A on January 1, 1981. VVC|Awmo created for the purpose of providing u pooling
mechanism for jointly purchasing inaunanoa, jointly aa|Anouhng, and/or jointly contracting for risk management
services. WCIA has a total of 161 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 aformer
member from its unresolved |oao history incurred during membership.
Liability coverage iswritten onanoccurrence basis, without deductibles. Coverage includes general, automobile,
po|ice, errors or omissions, atop gap, employment pneoUcea and employee benefits liability. Limits are $4 million
per occurrence in the self -insured layer, and $21 million in limits above the oa|Anouned layer is provided by
reinsurance. Total limits are $25 million per occurrence subject to aggregates and sublimits. The Board ufDirectors
determines the limits and terms ofcoverage annually.
Insurance for property, automobile physical damage, fidelity, inland marine, and boiler and machinery coverage are
purchased on a group basis. Various deductibles apply by type of coverage. Property coverage is self -funded from
the members' deductible to $750,000, for all perils other than flood and earthquake, and insured above that to $300
million per occurrence subject to aggregates and sublimits. Automobile physical damage coverage is self -funded
from the members' deductible to $250.000 and insured above that to $100 million per occurrence subject to
aggregates and aub|imitn.
In-house aeniooa include risk management uonnultation, loss control field aenvioeo, and claims and litigation
administration. VVCU\contracts for certain claims investigations, consultants for personnel and land use iosuas.
insurance brokerage, actuarial, 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, |000 adjustment, and administrative expanses.
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.
A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The
Board elects on 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 boday operations nfVVC|A.
101
CITY OF TUKW|LA: 2017CAFR NOTES 0THE FINANCIAL STATEMENTS
The City insures its buildings, equipment, and vehicle property insurance with VVCIA.They self -fund upto$250.00O
with standard property insurance purchased above that amount. Traveler's insures boiler machinery and provides
for employee dishonesty coverage.
The City of Tukwila has a Risk Management and a Safety Committee to oversee risk management. In addition, the
WCIA provides support for a proactive risk analysis program and a loss control manual.
There were nosignificant reductions ininsurance coverage inthe past year. During the year under audit and inthe
past three years, nosettlement haaexoaadadinounanoaoovenage.
The City self -insures for unemployment benefits. This is budgeted expenditure each year and the City paid $15,077
inunemployment in2017. This expense ksbudgeted inthe Finance Department within the general fund and Foster
Golf Course, and enterprise fund. 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. Athird-party administrator, Healthcare
Management Administrators, Inc., provides claims administration. The City has a stop -loss policy with Symehu
which provides an individual limit of$175.00O . Each fund contributes an appropriate amount each year to pay
premiums and claims. Liabilities include an actuarially determined amount for claims that have been incurred but
not reported (IBNR's) and a contingency reserve equal to 2.5 times the IBNR liability.
The |0NR liability is aaUmabad using actuarial methods. Based on raauko as well as a review ofactual run -out,
average lag days of52.Gdays for medical, 21.6days for pharmacy, 31.Gdays for dental, and 45.Qdays for vision
were selected. Using average lag days and net adjusted paid claims, the |BNR liability was estimated as of May
31.2017. Next, the estimated IBNR liability as of December 31, 2017 was developed by trending the May 31, 2017
estimates toyearend. No explicit margin for claims fluctuations was added because the amount of the reserve in
the fund balance iosufficient tocover expected claims fluctuations. Administrative costs were then added.
The following table reflects changes inthe balances ofclaims liabilities for 2017and 2016.
SUMMARY OFHEALTH CARE CLAIM LIABILITIES
Active Employees Retired Employees LEOFF|
Claim Liabilities at Beginning of Year
Claim expenses:
Current year and changes inestimates
Claim payments and expenses
Claim Liabilities at End of Year
NOTE 14—SUBSEQUENT EVENT
6,329.189 5,938,336 430.289 524,274
(0.255.101) (8.027.586) (424.880) (554.274)
In 2018, the City plans to purchase several parcels of land in order to begin construction of a justice center and
fire stations as outlined in the voter -approved public safety plan. Additionally, in February 2018, the City Council
approved an ordinance to sell up to $20 million in bonds in 2018 for the public safety plan. AsnfApril 30.2018.
the city has expended approximately $8.7 million toward the purchase of four property parcels in connection with
the Public Safety Plan.
102
CITY OF TUKWILA: 2017 CAFR REQUIRED SUPPLEMENTAL INFORMATION
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31,2017
Original
Budget
(Gaap Basis)
Final
Budget
(Gaap Bais)
Actual
Results
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and Foreitures
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES:
Current:
General Government
Economic environment
Physical environment
Public Safety
Culture and recreation
Transportation
Capital outlay
Total Expenditures
Excess Of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Sales of capital assets
Transfers in
Transfers out
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
$ 47,803,644
2,278,940
4,398,660
3,248,316
306,129
163,091
203,600
$ 47,803,644
2,278,940
4,545,160
3,286,316
306,129
163,091
211,271
$ 46,574,589
2,749,137
4,690,257
3,046,606
325,216
230,784
160,309
$ (1,229,055)
470,197
145,097
(239,710)
19,087
67,693
(50,962)
58,402,380 58,594,551 57,776,899 (817,652)
9,953,670
4,573,353
1,975,786
30,596,784
4,708,136
3,081,092
234,000
9,863,670
4,469,853
1,975,786
30,996,784
4,726,307
3,081,092
234,000
9,358,235
4,098,765
1,733,400
29,968,635
4,395,696
3,026,013
117,679
505,435
371,088
242,386
1,028,149
330,611
55,079
116,321
55,122, 821 55, 347,492
52,698,423
2,649,069
3,279,559
3,247,059
5,078,476
1,831,417
1,800,000
(5,237,691)
(3,437,691)
1,800,000
(5,447,691)
(3,647,691)
1
300,000
(5,337,496)
(5,037,495)
1
(1,500,000)
110,195
(1,389,804)
(158,132)
17,216,048
17,057,916
(400,632)
17,216,048
$ 16,815,416
40,981
19, 031,744
$ 19,072,725
441,613
1,815,696
$ 2,257,309
103
CITY OF TUKWILA: 2017 CAFR REQUIRED SUPPLEMENTAL INFORMATION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
The City of Tukwila budgets its funds in accordance with the Revised Code of Washington 35A.33. In compliance
with the code, biennial budgets are adopted for the general fund and special revenue funds. For governmental
funds, there are no substantial differences between the budgetary basis and generally accepted accounting
principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial statements
include budgetary comparisons for biennially budgeted governmental funds only. Budgets established for
proprietary and fiduciary funds are "management budgets" and are not legally required to be reported and, as
such, are not reported in the CAFR.
The biennial appropriated budgets are adopted at the fund level and the budgets constitute the legal authority for
expenditures at that level. Subsidiary revenue and expenditure records are used to compare the budgeted
amounts with actual revenues and expenditures. As a management control device, the subsidiary ledgers monitor
expenditures for individual functions and activities by object class. Any unexpended appropriation balances lapse
at the end of the biennium.
The City of Tukwila's budget procedures are mandated by RCW 35A.33. The steps in the budget process are as
follows:
1) Prior to November 1 on even numbered years, the Mayor submits a proposed budget to the City Council.
This budget is based on priorities established by the Council and estimates provided by the City
departments during the preceding months, and balanced with revenue estimates made by the Mayor.
2) The City Council conducts public hearings on the proposed budget in November and December.
3) The Council makes its adjustments to the proposed budget and adopts by ordinance a final balanced
budget no later than December 31.
4) The final operating budget as adopted is published and distributed within the first month of the following
year. Copies of the budget are made available to the public.
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 Includes administration, finance, municipal court, attorney, and
city clerk activities.
Public Safety Includes all police and fire activities.
Physical Environment Includes expenditures for the public works activities not
chargeable to the enterprise funds.
Transportation Includes all street and arterial street maintenance and
construction.
Economic Environment Reflects the planning and building inspection activities.
Culture and Recreation Includes expenditures related to parks and recreational activities.
The information presented in the following required schedules was determined as part of the actuarial valuations
at the dates indicated.
104
CITY OF TUKWILA: 2017 CAFR REQUIRED SUPPLEMENTAL INFORMATION
COST SHARING MULTIPLE EMPLOYER DEFINED BENEFIT PENSION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
PERS I
Fiscal
Year Ending
June 30, 2015
June 30, 2016
June 30, 2017
PERS 2/3
Employer's
proportion of the net
pension liability
(asset)
0.135736%
0.131354%
0.127058%
Employer's
proportionate share
of the net pension
liability (asset)
$ 7,100,255
$ 7,054,328
$ 6,029,001
States
proportionate share
of the net pension
liability (asset)
associated with the
employer
Total: Proportionate
share of the net
pension liability
(asset)
$ 7,100,255
$ 7,054,328
$ 6,029,001
Employers covered
employee payroll
$ 15,561,015
$ 15,736,921
$ 16,022,842
Employer's
proportionate share of
the net pension
liability as a
percentage of covered
employee payroll
45.63%
44.83%
37.63 %
Plan fiduciary net
position as a
percentage of the
total pension liability
59.10%
57.03%
61.24%
Fiscal
Year Ending
June 30, 2015
June 30, 2016
June 30, 2017
PSERS
Employers
proportion of the net
pension liability
(asset)
0.173592%
0.166622%
0.161787%
States
proportionate share
Employer's of the net pension
proportionate share liability (asset)
of the net pension associated with the
liability (asset) employer
$ 6,202,541
$ 8,389,286
$ 5,621,325
Total: Proportionate
share of the net
pension liability Employers covered
(asset) employee payroll
$ 6,202,541 $ 15,406,589
$ 8,389,286 $ 15,579,718
$ 5,621,325 $ 15,861,514
Employers
proportionate share of
the net pension
liability as a
percentage of covered
employee payroll
40.26%
53.85%
35.44%
Plan fiduciary net
position as a
percentage of the
total pension liability
89.20%
85.82 %
90.97 %
Fiscal
Year Ending
June 30, 2015
June 30, 2016
June 30, 2017
LEOFF 1
Employers
proportion of the net
pension liability
(asset)
0.052748%
0.048428%
0.455650%
Employer's
proportionate share
of the net pension
liability (asset)
$ 9,628
$ 20,581
$ 8,928
States
proportionate share
of the net pension
liability (asset)
associated with the
employer
Total: Proportionate
share of the net
pension liability
(asset)
9,628
20,581
8,928
Employer's covered
employee payroll
154,426
157,203
161,328
Employer's
proportionate share of
the net pension
liability as a
percentage of covered
employee payroll
6.23 %
13.09
5.53%
Plan fiduciary net
position as a
percentage of the
total pension liability
95.08%
90.41%
96.26
Fiscal
Year Ending
June 30, 2015
June 30, 2016
June 30, 2017
LEOFF 2
Employers
proportion of the net
pension liability
(asset)
0.077944%
0.077890%
0.082086 %
Employers
proportionate share
of the net pension
liability (asset)
States
proportionate share
of the net pension
liability (asset)
associated with the
employer
$ (939,397) $
$ (802,490) $
$ (1,245,425) $
(5,428,021) $
(8,424,025.00) $
Total: Proportionate
share of the net
pension liability
(asset)
(939,397)
(6,230,511)
(9,669,450)
Employer's covered
employee payroll
$ 76,144
Employer's
proportionate share of
the net pension
liability as a
percentage of covered
employee payroll
-1233.71%
n/a
n/a
Plan fiduciary net
position as a
percentage of the
total pension liability
127.36 %
123.74%
135.96 %
Fiscal
Year Ending
June 30, 2015
June 30, 2016
June 30, 2017
Employers
proportion of the net
pension liability
(asset)
0.519159%
0.510663%
0.503269%
States
proportionate share
Employer's of the net pension Total: Proportionate
proportionate share liability (asset) share of the net
of the net pension associated with the pension liability
liability (asset) employer (asset)
$ (5,335,916) $
$ (2,970,169) $
$ (6,983,743) $
(2,123,832) $
(1,936,334) $
(4,530,224) $
(7,459,748)
(4,906,503)
(11,513,967)
Employer's covered
employee payroll
$ 15,113,237
$ 15,480,062
$ 15, 743,133
Employer's
proportionate share of
the net pension
liability as a
percentage of covered
employee payroll
- 49.36%
- 31.70 %
-73.14 %
* Until a full 10-year trend is compiled, governments should present information only for those years for which information is available.
Plan fiduciary net
position as a
percentage of the
total pension liability
111.67%
106.04%
113.36 %
105
CITY OF TUKWILA: 2017 CAFR REQUIRED SUPPLEMENTAL INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
PERS I
Fiscal
Year Ending
Statutorily
Determined
Contribution
Less: Contributions
in Relation to the
Statutorily
Determined Contribution
Contribution Deficiency (Excess)
Covered Employee
Payroll
Copntribution as a
Percentage of
Covered Employee
Payroll
December 31, 2015 $
December 31, 2016 $
December 31, 2017 $
PERS 2/3
686,881 $
752,418 $
789,712 $
(686,881) $
(752,418) $
(789,712) $
- $ 15,654,255
- $ 15,777,881
$ 16,153,755
4.39%
4.77%
4.89%
Fiscal
Year Ending
Statutorily
Determined
Contribution
Less: Contributions
in Relation to the
Statutorily
Determined Contribution
Contribution Deficiency (Excess)
Covered Employee
Payroll
Copntribution as a
Percentage of
Covered Employee
Payroll
December 31, 2015 $
December 31, 2016 $
December 31, 2017 $
PSERS
873,248 $
972,612 $
1,090,715 $
(873,248) $
(972,612) $
(1,090,715)'$
$ 15,498,171
$ 15,616,400
$ 16,024,008
5.63%
6.23%
6.81 %
Fiscal
Year Ending
Statutorily
Determined
Contribution
Less: Contributions
in Relation to the
Statutorily
Determined
Contribution Deficiency (Excess)
Contribution Covered Employee
Payroll
Copntribution as a
Percentage of
Covered Employee
Payroll
December 31, 2015 $
December 31, 2016 $
December 31, 2017 $
LEOFF 2
10,105 $
10,642 $
8,612 $
(10,105) $
(10,642) $
(8,612) Jr$
156,084
161,481
129,747
6.47%
6.59%
6.64%
Fiscal
Year Ending
December 31, 2015
December 31, 2016
December 31, 2017
Statutorily
Determined
Contribution
$ 776,719
$ 787,110
$ 815,548
Less: Contributions
in Relation to the
Statutorily
Determined
Contribution
$ (776,719) $
$ (787,110) $
$ (815,548) $
Contribution
Deficiency (Excess)
Covered Employee
Payroll
$ 15,380,541
$ 15,586,296
$ 15, 860, 571
Copntribution as a
Percentage of
Covered Employee
Payroll
5.05%
5.05%
5.14%
* Until a full 10-year trend is compiled, govemments should present information only for those years for which information is
available.
106
CITY OF TUKWILA: 2017 CAFR
REQUIRED SUPPLEMENTAL INFORMATION
FIREMEN'S PENSION TRUST FUND
SCHEDULE OF FUNDING PROGRESS - PENSION
(Rounded to thousands)
Actuarial;
Valuation Date of Assets
January 1,2005 $1,265
January 1,2007 1,336
January 1,2009 1,445
January 1,2011 1,430
January 1,2013 1,416
January 1, 2014* 1,409
January 1,2015 1,417
January 1,2016 1,426
January 1,2017 1,530
Unfunded Actual
ed Labi[iti
iabilities (UAAL)
$1,182 ($83)
1,310 (26)
1,610 165
1,582 152
1,296 (120)
1,853 444
1,830 413
1,445 19
1,415 (115)
* January 1, 2014 change in actuary and adoption of GASB 67
Funded Ratio Pay
107% $608
102 463
90 442
90 0
109 0
76 0
77 0
99 0
108 0
UAAL as a
Percentage of
Cored Payroll
-14
-6
37
N/A
N/A
N/A
N/A
N/A
N/A
107
CITY OF TUKWILA: 2017 CAFR REQUIRED SUPPLEMENTAL INFORMATION
Schedule of Changes in the City's Net Pension Liability and Related Ratios
Total Pension Liability 2014 2015 2016 2017
Service cost - -
I nterest 50,098 49,716 49,332 38,796
Changes of benefit terms - -
Difference between expected & actual
experience (2,442) (311,190)
Changes of assumptions - - (62,728)
Benefits payments, included refunds of
employee contributions (61,863) (58,277) (59,988) (69,186)
Net change in total pension liability (11,765) (11,003) (384,574) (30,390)
Total pension liability - beginning 1,852,693 1,840,928 1,829,925 1,445,351
Total pension liability - ending (a) 1,840,928 1,829,925 1,445,351 1,414,961
Plan Fiduciary Net Position
Contributions - employer 64,114 63,590 66,360 68,848
Contributions - employee -
Net investment income 1,805 2,667 7,988 39,157
Benefit payments, including refunds of
employee contributions (61,863) (58,277) (59,988) (69,186)
Administrative expense - (4,500) (4,500) (4,624)
Other -
Net change in plan fiduciary net position 4,056 3,480 9,860 34,195
Plan fiduciary net position - beginning 1,408,970 1,413,026 1,416,506 1,426,366
Plan fiduciary net position - ending (b) 1,413,026 1,416,506 1,426,366 1,460,561
City's net pension liability - ending (a) - (b) 427,902 413,419 18,985 (45,600)
Plan fiduciary net position as a percent of
total pension liability 76.76% 77.41% 98.69% 103.22%
Covered employee payroll
City net pension liability as a percent of
covered employee payroll n/a n/a n/a n/a
108
CITY OF TUKWILA: 2017 CAFR REQUIRED SUPPLEMENTAL INFORMATION
Schedule of Employer Contributions
Fiscal
Year Ending
December 31, 2007
December 31, 2008
December 31, 2009
December 31, 2010
December 31, 2011
December 31, 2012
December 31, 2013
December 31, 2014
December 31, 2015
December 31, 2016
December 31, 2017
Statutorily
Determined
Contribution
$ 50,555
52,571
48,537
49,989
54,865
52,249
56,962
64,114
63,590
66,360
68,848
Less: Contributions
in Relation to the
Statutorily
Determined
Contribution
$ 50,555
52,571
48,537
49,989
54,865
52,249
56,962
64,114
63,590
66,360
68,848
Contribution
Deficiency
(Excess)
Contributions are a portion of State Fire Insurance Premiums.
Copntribution as a
Percentage of
Covered Employee Covered Employee
Payroll Payroll
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Schedule of Investment Returns
Schedule of Investment Returns
2011
Annual money -weighted rate
of return, net of investment
expense
0.12%
2012
0.20%
2013
0.17%
2014
0.13%
2015
0.19%
2016
0.56%
•
2017
2.75%
Ten-year schedule required. However, until a full 10-year trend is compiled, information is presented for those
years where information is available.
109
CITY OF TUKWILA: 2017 CAFR REQUIRED SUPPLEMENTAL INFORMATION
RETIREE MEDICAL AND LONG-TERM CARE BENEFITS
FOR LEOFF 1 EMPLOYEES
SCHEDULE OF FUNDING PROGRESS - OPEB
Actuarial
Valuation Date
January 1, 2014
January 1, 2015
January 1, 2017
Actuarial Value
of Assets
(a)
$0
$0
$0
Actuarial Accrued
Liability (AAL) -
Entry Age Normal
(b)
$21,264,000
$29,538,048
$29,054,716
Unfunded AAL
(UAAL)
(b - a)
$21,264,000
$29,538,048
$29,054,716
Covered
Funded Ratio Payroll
(a ÷ b) (c )
0.0% n/a
0.0% n/a
0.0% n/a
SCHEDULE OF EMPLOYER CONTRIBUTIONS - OPEB
Fiscal
Year Ending
December 31, 2008
December 31, 2009
December 31, 2010
December 31, 2011
December 31, 2012
December 31, 2013
December 31, 2014
December 31, 2015
December 31, 2016
December 31, 2017
Employer
Contributions
$557,103
335,265
317,771
335,090
404,007
878,755
905,974
477,292
275,530
943,150
Annual Required
Contributions
(ARC)
$1,366,284
1,366,284
1,366,284
1,264,522
1,264,522
1,264,522
1,903,679
2,585,779
2,765,486
2,883,884
Percentage of
ARC Contributed
41%
25%
23%
26%
32%
69%
48%
18%
10c/0
33%
UAAL as a
Percentage of
Covered Payroll
((b - a) ÷ c)
n/a
n/a
n/a
110
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Nonmajor 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 or committed for expenditures for particular purposes.
• Hotel/Motel Tax Fund — Established to account for the proceeds of a 1 % special excise tax on overnight lodging
in Tukwila. This tax provides resources to support tourism development and promotion activities in Tukwila.
• Drug Seizure Fund — Accounts for monies and proceeds from the sale of property seized during drug and felony
investigations. These funds are legally required to be expended on drug and felony related police activities.
Debt Service Funds
Debt Service Funds are account for the accumulation of resources for and the payment of principal and interest on
general obligation and special assessment bonds.
• Local Improvement Guaranty Fund — Holds reserve funds required under state law to provide a means of paying
local improvement district (LID) bond debt service obligations in the event there are insufficient resources in the
LID debt service fund.
•
• Unlimited Tax G.O. 2016 — Accounts for principal and interest on voter approved bonds issued to pay for the
construction of public safety facilities including a justice center and fire stations and fire equipment and
apparatus for 20 years.
• Limited Tax G.O Fund — Accounts for principal and interest payments on bonds for all debt issues except for
voter approved bonds.
Capital Project Funds
Capital Project 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, real estate excise taxes, and transfers from the General Fund.
• Residential Street — Established in accordance with RCW 35A.37.010 to account for maintenance and
improvement of the City's residential streets. Major sources of support are the State -levied tax on motor vehicle
fuels distributed to Tukwila, to be used for City street purposes, state and federal grants, and transfers in from
the General Fund.
• Land Acquisition, Recreation, and Park Development — Accounts for the acquisition of land, development of
land, and construction of park facilities.
111
CITY 0rTUmw|uA:oV1rCArm FUND FINANCIAL STATEMENTS AND SCHEDULES
* Facilities (Urban Renewal) — Established in 1988, this fund accounts for costsassociated with property owned
by the City that will be utilized for redevelopment or renewal purposes.
w General Government Improvements —Thiofund was established in 1092to 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. Revenue for this fund comes primarily from fire impact fees.
w City Facilities — This fund was established in2U16topay for the costs of building anew public works shop
facility. The public works shop facility is part of the Cit/o public aafab/ plan but is not included in the voter -
approved bonds.
112
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENT FUNDS
DECEMBER 31, 2017
Total Total Total Total
Special Revenue Debt Service Capital Projects Governmental
Funds Funds Funds Funds
ASSETS:
Cash and cash equivalents $ 1,330,736 $ 571,617 $ 7,657,951 $ 9,560,304
Investments - 531,560 531,560
Taxes receivable 87,787 39,065 143,742 270,594
Other receivables - 2,135 13,346 15,481
Due from other governmental units - - 173,933 173,933
Restricted Assets:
Cash and cash equivalents 223,408 - 5,794,233 6,017,641
Notes receivable - 300,022 300,022
Capital assets held for resale 5,293,000 5,293,000
Total Assets $ 1,641,931 1,144,377 19,376,227 22,162,535
LIABILITIES AND FUND BALANCES:
Current liabilities
Accounts payable
Accrued wages and benefits
Customer deposit
Total Liabilities
274,840
806,895
11,490
126,119
1,081,735
11,490
126,119
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue -property tax
Unavailable revenue -impact fee
TOTAL DEFERRED INFLOWS OF RESOUR(
274,840
944,505 1,219,345
24,370 24,370
- 313,368 313,368
24,370
313,368 337,738
Fund balances:
Nonspendable - -
Restricted 1,367,019 731,762 9,657,476 11,756,256
Assigned 72 388,245 8,296,879 8,685,196
Assigned - 1% arts 164,000 164,000
Total Fund balances 1,367,091 1,120,007 18,118,354 20,605,452
Total Liabilities and Fund Balances
1,641,931 $ 1,144,377
19,376,227 $ 22,162,535
113
CITY OF TUKWILA: 2017 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 31,2017
Total Total Total Total
Special Revenue Debt Service Capital Projects Governmental
Funds Funds Funds Funds
REVENUES:
TAXES:
Taxes $ 736,784 $ 2,674,622 $ 756,747 $ 4,168,153
Charges for services - - 495,373 495,373
Intergovernmental - 57,504 1,305,117 1,362,621
Investment earnings 5,767 79 74,330 80,176
Miscellaneous 79,930 - 79,930
Total Revenues 822,480 2,732,205 2,631,567 6,186,253
EXPENDITURES:
Current:
General government - 25,067 202,249 227,316
Economic environment 515,262 - - 515,262
Public safety 366,256 - - 366,256
Cultural and Recreation - - 268,433 268,433
Transportation - - 646,064 646,064
Debt service
Principal - 3,106,428 - 3,106,428
Interest - 2,343,930 - 2,343,930
Capital Outlay 39,969 4,059,856 4,099,825
Total Expenditures 921,487 5,475,425 5,176,603 11,573,514
Exces (deficiency) of revenues
Over (Under) Expenditures (99,006) (2,743,220) (2,545,035) (5,387,261)
OTHER FINANCING SOURCES (USES):
Transfers in - 2,773,452 464,044 3,237,496
Transfers out - - (1,317,000) (1,317,000)
Issuance of Debt - 2,276,000 8,180,000 10,456,000
Bond Premium - - 356,839 356,839
Gain/(loss) on sale of assets held for resale - (100,000) (100,000)
Payment of refunded debt (2,250,000) (2,250,000)
Total Other Financing Sources And Uses 2,799,452 7,583,883 10,383,335
Net change in fund balances (99,006) 56,232 5,038,848 4,996,074
Fund balances - beginning 1,466,097 1,063,774 13,079,507 15,609,378
Fund Balances - Ending $ 1,367,091 $ 1,120,007 $ 18,118,354 $ 20,605,452
114
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2017
Hotel/Motel Tax Drug Seizure
Total
Special Revenue
Funds
ASSETS:
Cash and cash equivalents $ 1,323,528 $ 7,208 $ 1,330,736
Taxes receivables 87,787 87,787
Current Assets Restricted:
Cash and cash equivalents 223,408 223,408
Total Assets 1,411,315 230,616 1,641,931
LIABILITIES AND FUND BALANCES:
Accounts payable
Total Liabilities
271,540
3,300 274,840
271,540
3,300 274,840
Fund balances:
Restricted 1,139,775 227,244 1,367,019
Assigned - 72 72
Total Fund Balances 1,139,775 227,316 1,367,091
Total Liabilities and Fund Balances $ 1,411,315 $ 230,616 $ 1,641,931
115
CITY OF TUKWILA: 2017 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 31,2017
Total
Special Revenue
Hotel/Motel Tax Drug Seizure Funds
REVENUES:
Taxes $ 736,784 $ - $ 736,784
Investment earnings 5,695 72 5,767
Miscellaneous - 79,930 79,930
Total Revenue 742,479 80,002 822,480
EXPENDITURES:
Current:
Riblic safety
Economic environment
Capital outlay
Total Expenditures
Excess (deficiency) of revenues
Over (Under) Expenditures
366,256 366,256
515,262 515,262
39,969 39,969
515,262
406,225 921,487
227,217
(326,223) (99,006)
Net change in fund balances 227,217 (326,223) (99,006)
Fund balances - beginning 912,558 553,539 1,466,097
Fund Balances - ending $ 1,139,775 $ 227,316 $ 1,367,091
116
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR DEBT SERVICE FUNDS
DECEMBER 31, 2017
Special UTGO
Assesment Bonds
Bonds 2016
Guaranty (Public Safety
Fund Ran)
2013
LTGO Bond Total
Fund
Nonmajor
Debt Service
Funds
ASSETS:
Cash and cash equivalents $ 135,534 $ 48,218 $ 387,865 $ 571,617
Investments 531,560 - 531,560
RECEIVABLES: - -
Taxes - 39,065 39,065
Interest on investments 2,135 - 2,135
TOTAL ASSETS 669,229 87,283 387,865 1,144,377
LIABILITIES AND FUND BALANCES:
Total Liabilities
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue -property tax $ - $ 24,370 24,370
TOTAL DEFERRED INFLOW
OF RESOURCES - 24,370 - 24,370
Fund balances:
Restricted 668,849 62,913 731,762
Assigned 380 - 387,865 388,245
Total Fund Balances 669,229 62,913 387,865 1,120,007
Total Liabilities and Fund
Balances $ 669,229 $ 87,283 $ 387,865 $ 1,144,377
117
CITY OF TUKWILA: 2017 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 31,2017
Special UTGO LTGO Bond Total Nonmajor
Assessment Bonds Fund Debt Service
Bonds 2016 Funds
Guaranty (Public Safety
Fund 2013 Ran)
REVENUES:
Taxes $ - $ 2,674,622 $ $ 2,674,622
Intergovernmental - 57,504 57,504
Investment earnings 79 79
Total revenues 79 2,674,622 57,504 2,732,205
EXPENDITURES:
General Government 25,067 25,067
Debt service
Principal - 1,115,000 1,991,428 3,106,428
Interest - 1,496,709 847,222 2,343,930
Total Expenditures 2,611,709 2,863,716 5,475,425
Excess (deficiency) of revenues
Over (Under) Expenditures 79 62,913 (2,806,212) (2,743,220)
OTHER FINANCING SOURCES (USES):
Transfers in - 2,773,452 2,773,452
General obligation bonds issued 2,276,000 2,276,000
Payment of refunded debt - (2,250,000) (2,250,000)
Total Other Financing Source And Use - - 2,799,452 2,799,452
Net change in fund balances 79 62,913 (6,760) 56,232
Fund balances - beginning 669,150 394,625 1,063,775
Fund Balances - Ending $ 669,229 $ 62,913 $ 387,865 $ 1,120,007
118
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR CAPITAL PROJECTS FUNDS
DECEMBER 31, 2017
Land Acq. Facilities General Total Nonmajor
Residential Rec & Park Urban Government Fire City Capital Project
Street Development Renew al Improvements Improvements Facilities Funds
ASSETS:
Cash and cash equivalents $ 965,748 $ 3,945,978 $2,290,732 $ 378,323 $ 7,210 $ 69,960 $ 7,657,951
Taxes receivable 44,613 99,129 - - 143,742
Other receivables - - - 13,346 13,346
Due from other governmental units - 173,933 - - 173,933
RESTRICTED ASSETS:
Cash and cash equivalents 5,794,233 - - - - - 5,794,233
Notes receivable - - - 300,022 - 300,022
Capital asset held for resale - 5,293,000 - 5,293,000
Total Assets 6,804,594 4,219,040 7,583,732 378,323 320,578 69,960 19,376,227
LIABILITIES, DEFERRED INFLOWS AND
FUND BALANCES:
Current payables:
Accounts payables 604,579 130,111 2,245 - 69,960 806,895
Accrued wages and benefits 4,876 1,649 4,966 11,490
Customer deposit 18,720 19,525 85,563 2,311 - 126,119
Total Liabilities 628,176 151,285 85,563 9,522 - 69,960 944,505
Deferred Inflow of resources:
Unavailable revenue -impact fee - - - - 313,368 313,368
Total Deferred Inflow of Resurces
Fund balances:
Restricted
Assigned
Assigned - 1% arts
Total Fund Balace
313,368
313,368
5,794,233 3,856,032 - 7,210 - 9,657,476
382,185 47,724 7,498,169 368,801 - - 8,296,879
164,000 - - 164,000
6,176,418 4,067,756 7,498,169 368,801 7,210 - 18,118,354
Total Liabilities and Fund Balances $ 6,804,594 $ 4,219,040 $7,583,732 $ 378,323 $ 320,578 $ 69,960 $ 19,376,227
119
CITY OF TUKWILA: 2017 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 31,2017
Land Acq. Facilities General Total Nonrrejor
Residential Rec & Park Urban Government Fire City Capital Projects
Street Development Renewal krprovements Inprovenrents Facilities Funds
REVENUES:
Taxes $ - $ 756,747 $ $ - $ - $ - $ 756,747
Charges for services 6,133 62,310 - - 285,075 141,854 495,373
Intergovernmental 1,073,144 231,972 - - - - 1,305,117
Investment earnings 40,239 16,735 12,252 2,487 2,617 74,330
Total Revenues 1,119,516 1,067,765 12,252 2,487 287,693 141,854 2,631,567
EXPENDITURES:
Current:
General government -
Culture and recreation
Transportation 646,064
Capital Outlay 3,492,805
Total Expenditures 4,138,869
268,433
205,879
474,312
54,124 148,126
77,463
54,124 225,589
202,249
268,433
646,064
283,709 4,059,856
283,709 5,176,603
Exces (deficiency) of revenues
Over (Under) Expenditures (3,019,352) 593,453 (41,872) (223,102) 287,693 (141,854) (2,545,035)
OTHER FINANCING SOURCES (USES):
Transfers in - 122,190 - 200,000 - 141,854 464,044
Transfers out (300,000) (1,017,000) (1,317,000)
Issuance of debt 8,180,000 - - - 8,180,000
Bond premium 356,839 - - - - 356,839
Gain/(loss) on sale of assets held for resale - - (100,000) - - - (100,000)
Total Other Financing Sources And Uses 8,536,839 122,190 (400,000) 200,000 (1,017,000) 141,854 7,583,883
Net change in fund balances 5,517,486 715,643 (441,872) (23,102) (729,307) 5,038,848
Fund balances - beginning 658,932 3,352,113 7,940,040 391,903 736,518 - 13,079,507
Fund Balances - ending $ 6,176,418 $ 4,067,756 $ 7,498,169 $ 368,801 $ 7,210 $ $ 18,118,354
120
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
ARTERIAL STREET CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31, 2017
Original Final
Budget Budget
(Gaap Basis) (Gaap Basis)
Actual
Results
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Taxes $ 600,000 $ 600,000 $ 912,333 $ 312,333
Intergovernmental 21,035,000 10,035,000 6,686,896 (3,348,104)
Charges for services 921,000 921,000 1,725,249 804,249
Investment earnings 5,000 5,000 16,910 11,910
Miscellaneous 1,037,000 1,037,000 701,034 (335,966)
Total Revenues
23,598,000 12,598,000 10,042,421 (2,555,579)
EXPENDITURES:
Current:
Transportation 6,556,000 6,556,000 2,860,118 3,695,882
Capital outlay 22,581,579 10,281,579 9,545,242 736,337
Total Expenditures 29,137,579 16,837,579 12,405,360 4,432,219
Excees (deficiency) of revenues
Over (Under) Expenditures (5,539,579) (4,239,579) (2,362,939) 1,876,640
OTHER FINANCING SOURCES (USES):
Transfers in 1,800,000 1,800,000 1,800,000
Total Other Financing Sources And Uses 1,800,000
1,800,000 1,800,000
Net change in fund balances (3,739,579) (2,439,579) (562,939) 1,876,640
Fund balance - beginning 3,786,923 3,786,923 3,999,376 212,453
Fund Balances - Ending $ 47,344 $ 1,347,344 $ 3,436,437 $ 2,089,093
121
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
LOCAL IMPROVEMENT DISTRICT #33 DEBT SERVICE FUND
FOR THE YEAR ENDED DECEMBER 31,2017
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(Gaap Basis) (Gaap Bais) Results (Negative)
REVENUES:
Special assessment $ 408,593 $ 408,593 $ 478,838 $ 70,245
Investment earnings 293,518 293,518 240,710 (52,808)
Miscellaneous 1,511 1,511
Total Revenues
702,111 702,111
721,059 18,948
EXPENDITURES:
Debt service:
Principal 450,000 596,000 607,500 (11,500)
Interest 271,830 271,830 259,939 11,891
Total Expenditures
Excess Of Revenues And Expenditures
721,830 867,830 867,439 391
(19,719) (165,719) (146,379) 19,340
Net change in fund balances (19,719) (165,719) (146,379) 19,340
Fund balances - beginning 898,764 898,764 898,722 (42)
Fund Balances - Ending $ 879,045 $ 733,045 $ 752,342 $ 19,297
122
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
PUBLIC SAFETY PLAN CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31,2017
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(Gaap Basis) (Gaap Bais) Results (Negative)
REVENUES:
Charges for services $ 500,000 $ 500,000 $ 500,000 $
Investment earnings - - 258,283
Total Revenues
EXPENDITURES:
Current:
Public Safety
Capital outlay
Total Expenditures
258,283
500,000 500,000 758,283 258,283
3,048,000
11,139,000
14,187,000
3,048,000
11,139,000
14,187,000
564,521
998,969
1,563,490
2,483,479
10,140,031
12,623,510
Excess Of Revenues And Expenditures (13,687,000) (13,687,000) (805,207) 12,881,793
OTHER FINANCING SOURCES (USES):
Bond proceeds 23,343,000 23,343,000 - (23,343,000)
Transfers in - 1,017,000 1,017,000
Transfers out - -
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
23,343,000 24,360,000 1,017,000 (23,343,000)
9,656,000 10,673,000
211,793
36,513,127
(10,461,207)
36,513,127
$ 9,656,000 $ 10,673,000 $ 36,724,920 $ 26,051,920
123
CITY OF TUKWILA: 2017 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 31,2017
Variance With
Original Final Final Budget
Budget Bduget Actual Positive
(Gaap Basis) (Gaap Basis) Results (Negative)
REVENUES:
Taxes $ 733,000 733,000 $ 736,784 $ 3,784
Investment earnings 3,000 3,000 5,695 2,695
Total Revenues 736,000 736,000 742,479 6,479
EXPENDITURES:
Current:
Economic environment 440,700 722,500 515,262 207,238
Total Expenditures 440,700 722,500 515,262 207,238
Excess (deficiency) of revenues
Over (Under) Expenditures 295,300 13,500 227,217 213,717
Net change in fund balances
295,300 13,500 227,217 213,717
Fund balances - beginning 906,875 906,875 912,558 5,683
Fund Balances Ending 1,202,175 920,375 1,139,775 219,400
124
CITY OF TUKWILA: 2017 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 31,2017
Variance With
Original Final Final Budget
Budget Budget Actual positive
(Gaap Basis) (Gaap Basis) Results (Negative)
REVENUES:
Investment earnings $ - $ - $ 72 $ 72
Fines and forfeitures 60,000 60,000 79,930 19,930
Total Revenues 60,000 60,000 80,002 20,002
EXPENDITURES:
Current:
Public safety 45,000 425,000 366,256 58,744
Capital outlay:
Public safety - - 39,969 (39,969)
Total Expenditures 45,000 425,000 406,225 58,744
Excess (deficiency) of revenues
Over (Under) Expenditures 15,000 (365,000) (326,223) 38,777
Net change in fund balances 15,000 (365,000) (326,223) 38,777
Fund Balances - beginning 461,635 461,635 553,539 91,904
Fund Balances - Ending $ 476,635 $ 96,635 $ 227,316 $ 130,681
125
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
RESIDENTIAL STREET CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31,2017
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(Gaap Basis) (Gaap Bais) Results (Negative)
REVENUES:
Intergovernmental $ 1,894,000 $ 1,894,000 $ 1,073,144 $ (820,856)
Charges for services - 6,133 6,133
Investment earnings 1,500 1,500 40,239 38,739
Miscellaneous 1,902,000 1,902,000 (1,902,000)
Total Revenues 3,797,500 3,797,500 1,119,516 (2,677,984)
EXPENDITURES:
Current:
Transportation 75,000 75,000 646,064 (571,064)
Capital outlay 9,278,000 3,478,000 3,492,805 (14,805)
Total Expenditures 9,353,000 3,553,000 4,138,869 (585,869)
Excess Of Revenues And Expenditures (5,555,500) 244,500 (3,019,352) (3,263,852)
OTHER FINANCING SOURCES (USES):
Bond proceeds 5,600,000 5,600,000 8,180,000 2,580,000
Premium on Bonds - - 356,839 356,839
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
5,600,000 5,600,000 8,536,839 2,936,839
44,500
833,331
5,844,500
833,331
5,517,486 (327,014)
658,932 (174,399)
877,831 $ 6,677,831 $ 6,176,418 $ (501,413)
126
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
LAND & PARK ACQUISITION CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31,2017
Original Final
Budget Budget
(Gaap Basis) (Gaap Bais)
Actual
Results
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Taxes $ 400,000 $ 400,000 $ 756,747 $ 356,747
Intergovernmental 131,000 131,000 231,972 100,972
Investment earnings 1,000 1,000 16,735 15,735
Total Revenues
EXPENDITURES:
Current:
Culture and recreation
Capital outlay
Total Expenditures
Excess Of Revenues And Expenditures
532,000 532,000 1,067,765 535,765
1,139, 000
1,139,000
3,139, 000
3,139,000
268,433 (268,433)
205,879 2,933,121
474,312 2,664,688
(607,000) (2,607,000) 593,453 3,200,453
Net change in fund balances (423,000) (2,423,000) 715,643 3,138,643
Fund balances - beginning 2,713,123 2,713,123 3,352,113 638,990
Fund Balances - Ending $ 2,290,123 $ 290,123 $ 4,067,756 $ 3,777,633
127
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FACILITIES URBAN RENEWAL CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31,2017
Original Final
Budget Budget
(Gaap Basis) (Gaap Bais)
Actual
Results
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Investment earnings $ 3,600 $ 3,600 $ 12,252 $ 8,652
Total Revenues 3,600 3,600 12,252 8,652
EXPENDITURES:
Current:
General Government - - 54,124 (54,124)
Capital outlay 60,000 60,000 60,000
Total Expenditures 60,000 60,000 54,124 5,876
Excess Of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Sales of capital assets
Transfers out
Total Other Financing Sources And Uses
Net change in fund balances before special item
Fund balances - beginning
Fund Balances - Ending
(56,400) (56,400) (41,872) 14,528
3,483,000
(1,800,000)
1,683,000
3,233,000
(1,800,000)
1,433,000
(100,000)
(300,000)
(400,000)
(3,333,000)
1,500,000
(1,833,000)
1,626,600 1,376,600
370,706 370,706
(441,872)
7,940,040
(1,818,472)
7,569,334
$ 1,997,306 $ 1,747,306 $ 7,498,169 $ 5,750,863
128
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL GOVERNMENT IMPROVEMENTS CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31,2017
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(Gaap Basis) (Gaap Bais) Results (Negative)
REVENUES:
Investment earnings $ 500 $ 500 $ 2,487 $ 1,987
Total Revenues 500 500 2,487 1,987
EXPENDITURES:
Current:
General Government - 148,126 (148,126)
Capital outlay 290,794 290,794 77,463 213,331
Total Expenditures 290,794 290,794 225,589 65,205
Excess Of Revenues And Expenditures
(290,294) (290,294) (223,102) 67,192
OTHER FINANCING SOURCES (USES):
Transfers in 200,000 200,000 200,000
Total Other Financing Sources And Uses
200,000 200,000 200,000
Net change in fund balances (90,294) (90,294) (23,102) 67,192
Fund balances - beginning 334,349 334,349 391,903 57,554
Fund Balances - Ending $ 244,055 $ 244,055 $ 368,801 $ 124,746
129
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FIRE IMPROVEMENTS CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31,2017
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(Gaap Basis) (Gaap Bais) Results (Negative)
REVENUES:
Fire impact fees $ 32,000 $ 32,000 $ 285,075 $ 253,075
Investment earnings 100 100 2,617 2,517
Total Revenues 32,100 32,100 287,693 255,593
EXPENDITURES:
Total Expenditures
Excess Of Revenues And Expenditures 32,100
OTHER FINANCING SOURCES (USES):
Transfers out
Total Other Financing Sources And Uses
32,100 287,693 255,593
(1,017,000) (1,017,000)
(1,017,000) (1,017,000)
Net change in fund balances 32,100 (984,900) (729,307) 255,593
Fund balances - beginning 645,631 645,631 736,518 90,887
Fund Balances - Ending 677,731 $ (339,269) $ 7,210 $ 346,479
130
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
CITY FACILITIES CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31,2017
Original Final
Budget Budget
(Gaap Basis) (Gaap Bais)
Actual
Results
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Total Revenues
EXPENDITURES:
Current:
Public Safety
Capital outlay
Total Expenditures
210,000
141,854 (68,146)
150,000 150,000 - 150,000
6,000,000 6,000,000 283,709 5,716,291
6,150,000 6,150,000 283,709 5,866,291
Excess Of Revenues And Expenditures (6,150,000) (5,940,000) (141,854) 5,798,146
Net change in fund balances - 420,000 - (420,000)
Fund balances - beginning - - - -
Fund Balances - Ending $ - $ 420,000 $ $ (420,000)
131
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
SPECIAL ASSESSMENT BONDS GUARANTY FUNDS
FOR THE YEAR ENDED DECEMBER 31,2017
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(Gaap Basis) (Gaap Bais) Results (Negative)
REVENUES:
Investment earnings $ 500 $ 500 $ 79 $ (421)
Total Revenues 500 500 79 (421)
EXPENDITURES:
Total Expenditures
Excess Of Revenues And Expenditures 500 500 79 (421)
OTHER FINANCING SOURCES (USES):
Total Other Financing Sources And Uses
Net change in fund balances 500 500 79 (421)
Fund balances - beginning 669,151 669,151 669,150 (1)
Fund Balances - Ending $ 669,651 $ 669,651 $ 669,229 $ (422)
132
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
UNLIMITED TAX GENERAL OBLIGATION DEBT SERVICE FUND
FOR THE YEAR ENDED DECEMBER 31,2017
Original Final
Budget Budget
(Gaap Basis) (Gaap Bais)
Actual
Results
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Taxes $ - $ 2,699,000 $ 2,674,622 $ (24,378)
Total Revenues - 2,699,000 2,674,622 (24,378)
EXPENDITURES:
Debt service:
Principal - 1,115,000 1,115,000
Interest - 1,496,709 1,496,709
Total Expenditures
2,611,709 2,611,709
Excess Of Revenues And Expenditures - 87,291 62,913 (24,378)
Net change in fund balances - 87,291 62,913 (24,378)
Fund balances - beginning - - -
Fund Balances - Ending $ $ 87,291 $ 62,913 $ (24,378)
133
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
DEBT SERVICE FUND
FOR THE YEAR ENDED DECEMBER 31,2017
Original Final
Budget Budget
(Gaap Basis) (Gaap Bais)
Actual
Results
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Intergovernmental $ 61,667 $ 61,667 $ 57,504 $ (4,163)
Total Revenues 61,667 61,667 57,504 (4,163)
EXPENDITURES:
Current:
General Government 25,067 (25,067)
Debt service:
Principal 2,163,029 2,163,029 1,991,428 171,601
Interest 1,012,103 1,110,551 847,222 263,329
Total Expenditures 3,175,132 3,273,580 2,863,716 (409,864)
Excess Of Revenues And Expenditures (3,113,465) (3,211,913) (2,806,212) 405,701
OTHER FINANCING SOURCES (USES):
Bond proceeds 427,461 2,777,461 2,276,000 (501,461)
Payment of refunded debt (2,339,000) (2,250,000) 89,000
Transfers in 2,686,004 2,773,452 2,773,452
Total Other Financing Sources And Uses 3,113,465 3,211,913 2,799,452 (412,461)
Net change in fund balances - - (6,760) (6,760)
Fund balances - beginning 168,475 168,475 394,625 226,150
Fund Balances - Ending 168,475 $ 168,475 $ 387,865 $ 219,390
134
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON -MAJOR INTERNAL SERVICE FUNDS
Internal Service Funds
The City's internal service funds are used to account for the financing of special services performed by designated
departments within the City of Tukwila for the benefit of other departments within the City. The funds provide
services then generate revenue by billing the department for which the service was provided.
• Equipment Rental Fund — Accounts for the costs of maintaining and replacing all City vehicles and auxiliary
equipment. All equipment costs, including depreciation, are factors in calculating the rates which are charged
to each user department.
• Insurance Fund Active Employees — Accounts for the costs of the City's self -insured medical plan. Medical and
dental costs for covered employees are charged to the respective departments. All premiums, medical and
dental costs and ancillary charges are included.
• Insurance Fund LEOFF 1 Retirees — Accounts for the costs of the City's self -insured medical plan for LEOFF 1
retirees. Medical and dental costs for covered employees are charged to the respective departments, either
the Police Department or the Fire Department. All premiums, medical and dental costs and ancillary charges
are included.
135
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
DECEMBER 31, 2017
Total
Insurance - Insurance - Internal
Equipment Active Leoff I Service
Rental Employees Retirees Funds
ASSET'S:
Current assets
Cash and cash equivalents $ 4,185,067 $ 588,869 $ 440,547 $ 5,214,483
Investments 392,962 2,355,984 456,125 3,205,071
Receivables 18,235 53,989 - 72,224
Inventory of materials and supplies 18,760 - - 18,760
Total Current Assets
4,615,023 2,998,843 896,672 8,510,538
NONCURRENT ASSETS:
Capital Assets:
Machinery and equipment 15,973,404 - 15,973,404
Less: accumulated depreciation (10,848,599) - - (10,848,599)
Total Capital Assets (Net Of A/D) 5,124,804 - 5,124,804
Total Noncurrent Assets 5,124,804 - - 5,124,804
Total Assets 9,739,828 2,998,843 896,672 13,635,342
Deferred Outflow s of Resources
Deferred outflow pension earnings 38,954 - - 38,954
Total Deferred Outflows Of Resources 38,954 - - 38,954
LIABILITIES:
Current liabilities:
Accounts payable 114,648 88,248 12,409 215,305
Accrued w ages and benefits 25,906 - - 25,906
Claims incurred but not reported 737,600 73,700 811,300
Total Current Liabilities 140,554 825,848 86,109 1,052,511
Noncurrent liabilities:
Reserve for unreported claims 1,106,400 110,550 1,216,950
Net pension liability 279,426 - - 279,426
Total Noncurrent Liabilities 279,426 1,106,400 110,550 1,496,376
Total Liabilities
419,980 1,932,248 196,659 2,548,887
Deferred Inflow s of Resources
Deferred inflow pension earnings 55,427 - - 55,427
Total Deferred Inflows Of Resources 55,427 55,427
NET POSITION:
Investment in capital assets 5,124,805 - - 5,124,805
Unrestricted 4,178,570 1,066,595 700,012 5,945,177
Total Net Position $ 9,303,375 $ 1,066,595 $ 700,012 $ 11,069,982
136
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2017
Total
Insurance - Insurance- Internal
Equipment Active Leoff I Service
Rental Employees Retirees Funds
OPERATING REVENUES:
Charges for services $ 2,538,237 $ 5,731,274 $ 253,445 $ 8,522,957
Other operating revenue 300 114,244 - 114,545
Total Operating Revenue 2,538,538 5,845,519 253,445 8,637,501
OPERATING EXPENSES:
Operations & maintenance 1,326,558 6,206,072 417,740 7,950,371
Administrative & general 322,910 123,117 12,549 458,576
Depreciation 833,469 - - 833,469
Total Operating Expenses 2,482,937 6,329,189 430,289 9,242,416
Operating Income (Loss) 55,600 (483,671) (176,844) (604,914)
NON -OPERATING REVENUE (EXPENSE):
Investment earnings 45,818 55,442 (5,621) 95,639
Gain (loss) on disposal of capital assets 100,509 100,509
Total Non -Operating Revenue (Expense) 146,327 55,442 (5,621) 196,148
Income (Loss)
Change In Net Position
Net position beginning of year
Net Position end of year
201,928 (428,229) (182,466) (408,767)
201,928
9,101,447
(428,229)
1,494,823
(182,466)
882,478
(408,767)
11,478,749
$ 9,303,375 $ 1,066,595 $ 700,012 $ 11,069,982
137
CITY OF TUKWILA: 2017 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, 2017
Page 1 of 2
Total
Insurance - Insurance- Internal
Equipment Active Leoff I Service
Rental Employees Retirees Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users
Cash paid to suppliers
Cash paid for taxes
Cash paid to, or on behalf of, employees
Net Cash Provided (Used)
By Operating Activities
$ 2,522,836 $ 5,815,445 $ 253,445 $ 8,591,726
(1,081,562) (108,437) (14,754) (1,204,753)
(1) - (1)
(569,762) (6,146,754) (413,645) (7,130,160)
871,511 (439,746) (174,954) 256,811
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Proceed from sale of equipment 100,509 - - 100,509
Purchase of capital asset (1,250,161) (1,250,161)
Net Cash Provided (Used) For Capital
And Related Financing Activities (1,149,652) (1,149,652)
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from sale of investments 135,000 - - 135,000
Purchase of investments - (13,494) (500,000) (513,494)
Interest received 42,497 90,339 38,254 171,089
Net Cash Provided (Used) In Investing Activities 177,497 76,845 (461,746) (207,405)
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
(100,644) (362,901) (636,701) (1,100,246)
4,285,711 951,771 1,077,247 6,314,729
4,185,067 588,869 440,547 5,214,483
$ 4,185,067 $ 588,869 $ 440,547 5,214,483
Total Cash $ 4,185,067 $ 588,869 $ 440,547 5,214,483
138
CITY OF TUKWILA: 2017 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, 2017
Page 2 of 2
Total
Insurance - Insurance- Internal
Equipment Active Leoff I Service
Rental Employees Retirees Funds
RECONCILIATION OF NET OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)
55,600 $ (483,671) $ (176,844) $ (604,914)
Adjustments to reconcile operating income to net cash
Provided (used) by operating activities:
Depreciation 833,469 - - 833,469
Asset (increases) decreases:
Accounts receivable (15,701) (30,074) - (45,775)
Inventory (3,487) - - (3,487)
Deferred outflow of resources (increase) decrease 25,394 - 25,394
Liability increases (decreases):
Accounts payable 31,699 73,998 1,890 107,588
Wages and benefits payable 6,208 - 6,208
Deferred inflow of resources increase (decrease) (61,671) - (61,671)
Total Adjustments 815,911 43,924 1,890 861,725
Net Cash Provided (Used) By Operating Activities $ 871,511
(439,746) $ (174,954) $ 256,812
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Increase in fair value of investment $ 422 $ - $ - $ 422
Total Non Cash Investing, Capital And
Financing Acitivties $ 422 $ - $ - $ 422
139
CITY OF TUKWILA: 2017 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
FOR THE YEAR ENDED DECEMBER 31, 2017
Balance Balance
January 1, 2017 Additions Deductions December 31,2017
ASSETS
Cash and cash equivalents $ 201,739 $ 1,026,290 $ (916,630) $ 311,398
Receivables 55,543 175,027 (227,636) 2,934
Total Assets 257,282 1,201,316 (1,144,266) 314,332
LIABILITIES
Accounts and other payables 257,282 1,827,851 (1,770,800) 314,332
Total Liabilities $ 257,282 $ 1,827,851 $ (1,770,800) $ 314,332
The notes to the financial statements are an integral part of this statement.
140
CITY OF TUKWILA: 2017 CAFR STATISTICAL SECTION
City of Tukwila
STATISTICAL SECTION
December 31, 2017
Financial Trends Information
Financial trends schedules are intended to provide users with information to assist them in understanding and
assessing how the City's financial position has changed over time.
Schedule 1 Net Position by Component 142
Schedule 2 Changes in Net Position 144
Schedule 3 Fund Balances, Governmental Funds 146
Schedule 4 Changes in Fund Balances, Governmental Funds 148
Schedule 5 General Governmental Tax Revenues by Source 150
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 151
Schedule 7 Assessed and Estimated Actual Value of Taxable Property 152
Schedule 8 Property Tax Rates -Direct and Overlapping Governments 153
Schedule 9 Principal Property Taxpayers 154
Schedule 10 Retail Sales Tax Collections by Sector 156
Schedule 11 Sales Tax Rate Direct and Overlapping Governments 158
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 160
Schedule 13 Ratios of General Bonded Debt Outstanding 162
Schedule 14 Computation of Direct and Overlapping Debt 163
Schedule 15 Legal Debt Margin Information 164
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 16 Demographic Statistics 166
Schedule 17 Principal Employers 167
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 18 Full-time Equivalent Employee by Department 168
Schedule 19 Operating Indicators by Function 169
Schedule 20 Capital Assets by Function 170
141
CITY OF TUKWILA: 2017 CAFR
STATISTICAL SECTION
CITY OF TUKWILA
SCHEDULE 1
NET POSITION BY COMPONENT(a)
LAST TEN FISCAL YEARS
Page 1 of 2
2008 2009 2010 2011
Governmental activities:
Net investment in capital assets $ 136,742,368 $ 155,847,012
Restricted 19,720,546 16,360,097
Unrestricted 18,476,837 16,031,473
Total governmental activities net position $ 174939,751 $ 188,238,582
Business -type activites:
Net investment in capital assets
Restricted
Unrestricted
Total business -type
c
ivities
ne
pos
Primary government:
Net investment in capital assets
Restricted
Unrestricted
Total primary government net posit`'
on
on
177,078,793 $ 199,511,779
23,005,792 5,019,817
12,119,923 21,479,064
212,204,508 $ 226,010,660
$ 36,071,402 $ 38,052,488
439,100 438,619
13,335,836 10,987,162
$ 49';846,338 $ 49,478,269
44,759,489 $ 52,134,799
430,444 430,444
11,158,081 10,225,558
56,348,014 $ 62,790,801
$ 172,813,770 $ 193,899,500
20,159,646 16,798,716
31,812,673 27,018,635
$ 224786,089 $ 237,716,851
$ 221,838,282 $ 248,636,920
23,436,236 5,450,261
23,278,004 34,714,280
$ 268,552,522 $ 288,801,461
Notes:
(a) All amounts are reported on the accrual basis
Source:
Tukw ila Finance Department
142
CITY OF TUKWILA: 2017 CAFR
STATISTICAL SECTION
Page 2 of 2
2012 20
2014
2015 2016
2017
$ 203,206,940 $ 207,660,389 $ 191,081,461 $ 191,331,156 $ 193,113,026
2,749,680 3,480,002 3,973,726 5,446,074 8,996,183
20,194,333 26,981,105 25,009,212 16,125,592 15,809,945
$ 226,150,953 $ 238,121,496 $ 220,064,399 + $ 212,902,822 $ 217,919,155
$ 199,328,694
13,480,068
11,366,545
$ 224.175.306
$ 52,911,741 $ 55,955,595 $ 57,677,764
430,444 430,444 430,444
11,011,319 12,964,539 13,839,529
$ 64,353,504 $ 69,350,577 $, 71,947,736
$ 59,483,424 $ 60,807,030 $ 65,355,778
14, 658, 912 17,240, 620 17,425,401
$ 74,142,335 $ 78,047,650 $ 82,781,179
$ 253,253,170
3,180,123
34,071,164
$ 290,504457
$ 263,615,984 $ 248,759,225 $ 250,814,581 $ 253,920,056 $ 264,684,471
3,910,445 4,404,170 5,446,074 8,996,183 13,480,068
39,945,644 38,848,741 30,784,504 33,050,565 28,791,946
$ 307,472,073 $ 292,012,136 $ 287,045,158 $ 295,966,804 $' 306,956,485
143
CITY OF TUKWILA: 2017 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 2
CHANGES IN NET POSITION (a)
Page 1of2
Governmental Activities
General Government
Public Safety
physical Environment
Transportation
Economic Environment
Mental and Physcial Health
Culture and Recreation
Interest on Long Term Debt
Business Type Activities
Water/Sewer Utility
Foster Golf Course
Surface Water Utility
Total Business Type Activities
Total Prtfrrry Government Etpenses
Program Revenues
2008 2009 2010 ... 2011
$ 4,723,103 $ 6,689,659 $ 7,052,717 $ 9,150,573
24,147,992 26,959,352 26,088,644 25,348,318
2,862,487 2,575,405 2,533,394 2,885,175
5,864,297 5,541,367 6,015,197 6,872,708
5,017,935 4,637,531 4,579,338 4,712,832
4,173 4,332 4,539 4,591
4,797,856 4,914,256 4,756,676 4,203,824
1,844,224 753,904 1,061,419 472,438
49,262,067 52,075,806 52,091,924 53,650,459
7,293,362 9,293,434 9,343,368 10,092,903
1,968,595 2,050,172 1,935,014 1,986,747
1,762,417 2,299,394 2,476,170 2,588,098
11,024,374 13,643,000 13,754,552 14,667,748
60,286,441' $ 65,718806 $= 65,846,476 $: , 68,318,207
Charges for Services
General Government $ 895,966 $ 1,136,642 $ 1,080,801 $ 2,462,671
Public Safety 1,184,530 572,094 819,043 809,806
Physical Environment 1,200 - 6,200 7,572
Transportation 130,637 103,311 571,110 345,373
Economic Environment 2,476,501 1,001,511 1,787,274 1,722,285
Cultural and Recreation 711,542 647,354 811,679 1,001,117
Operating Grants and Contributions 1,325,163 3,386,269 2,139,029 2,250,601
Capital Grants and Contributions 2,282,592 14,784,074 23,992,563 18,495,127
9,008,131 21,631,255 31,207,699 27,094,552
Business Type Activities
Water/Sewer Utility 8,621,909 10,124,653 9,665,095 11,711,242
Foster Golf Course 1,563,681 1,424,595 1,425,327 1,304,016
Surface Water Utility 2,642,325 2,641,313 3,029,630 3,355,956
Operating Grants and Contributions
Capital Grants and Contributions 756,400 515,633 7,390,545 1,993,537
13, 584, 315 14, 706,194 21, 510, 597 18, 364, 751
22,592,446 36,337,449 52,718,296 45,459,303
Net(Fxpense)/Revenue
Governmental Activities (40,253,937) (30,444,551) (20,884,225) (26,555,907)
Business Type Activities 2,559,941 1,063,194 7,756,045 3,697,003
TotalWinery rGovernment Net `Fxpense ' $ (37,693,996) $ (29,381,357) $ (13028,180), $ (22,858,904)
Property Tax
Retail Sales and Use Tax
Natural Gas Use Tax
Hotel/Motel Tax
Utility Tax
Interfund Utility Taxes
State Entitlements
Gain/Loss on Sale of Capital Assets
Total Governmental Activities
Business Type Activities
Retail Sales and Use Taxes
Gain/Loss on Sale of Capital Assets
$ 11,656,979 $ 11,901,072 $ 13,363,096 $ 13,443,137
18, 009, 297 14, 588, 297 14, 669, 328 15, 796, 054
643,037 748,772 533,811 317,531
587,216 489,806 458,092 555,682
5,136,444 7,390,860 5,600,683 7,534,260
2,497,705
983,078
874,046
801,847
(186,663)
1,383,774
3,196,178
367,198
2,233,445
246,287
980,267
1,601,200
4,205,574
507,798
1,951,936
108,929
667,679
2,170,293
2,085,740
275,477
1,399,310 525,864
42,386,760 43,743,382
42,798,557 43,371,717
500,000 327,999 329,527 -
377,955 106,032 85,942 61,119
- (264,093) - -
97,541 200,871
(1,383,774) (1,601,200) (1,399,310) (525,864)
Total Business Type Activities (505,819) (1,431,262) (886,300) (263,874)
Total Ritrery,Govern =nt ' $' 41,880,941 "$ 42,312,420 ` $- 41,912,257 ,107,84$
Change in Net Position Before Special Item
Special item
Change in Net Position 4,186,945 12,930,763 28,784,077 20,248,939
Governmental Activities $ 2,132,823 $ 13,298,831 $ 21,914,332 $ 16,815,810
Business Type Activities 2,054,122 (368,068) 6,869,745 3,433,129
Total Primary Government $ 4,188,945 ° 12,930,763 ' $ 28,784,077 $ . 20,248939.;
4,186,945 12,930,763 28,784,077 20,248,939
Source:
Tukw ila Finance Department
144
CITY OF TUKWILA: 2017 CAFR STATISTICAL SECTION
Page 2 of 2
2012 201
4 2,
0'16
2017
$ 8,343,107
26,598,432
3,625,696
7,314,707
4,801,342
4,242,725
1,152,063
$ 10,195,049
25,938,946
2,610,591
7,658,280
5,209,954
5,635,347
1,038,851
$ 10,289,399
29,292,587
11,668,098
2,479,533
5,716,091
5,336,659
1,204,771
$ 8,042,254
29,403,206
2,611,297
11,069,605
5,782,907
5,125,227
1,033,440
$ 9,662,207
31,418,713
2,554,259
11,188,189
4,410,841
5,431,324
1,075,729
$ 9,835,290
31,190,347
2,545,144
12,236,551
4,523,596
5,582,038
2,481,559
56,078,072
58,287,017
10,149,557 10,421,064
1,701,131 1,707,993
2,699,767 2,563,132
65,987,138 63,067,935
12,752,125
1,945,789
3,310,716
13,186,236
2,086,586
4,147,974
65,741,262 68,394,526
13,984,368
2,077,536
4,088,360
14,305,425
1,989,972
4,209,325
14,550,455 14,692,189
70 628,527 $ 72,979,205 ' $
18,008,631 19,420,796 20,150,264 20,504,722
88,995,769 ' $ 82,488,731 $ 85,891,526 88,899,247
$ 1,332,418
684,744
4,939
1,004,911
2,323,528
481,404
4,411,618
1,581,882
$ 1,495,438
871,919
27,407
287,956
2,786,178
744,014
3,289,818
16,947,529
$ 3,858,862
970,594
196,506
8,425
726,869
2,793,185
2,563,002
8,053,435
$ 3,794,134
1,754,856
206,065
3,348,802
644,283
893,470
6,431,537
$ 3,742,937
4,130,701
464
454,525
2,434,546
1,140,558
1,079,020
5,000,942
$ 4,144,986
1,540,863
2,206,908
2,270,759
1,315,740
2,445,998
6,126, 880
11,825,444
11,758,658
1,448,729
3,827,010
135,603
26,450,258
13,146,131
1,404,264
3,913,184
338,943
19,170,879
14,308,945
1,406,440
4,168,313
1,548,280
17,073,146
15,572,709
1,482,288
5,286,233
2,039,890
17,983,694 20,052,136
15,661,118
1,426,385
5,875,343
25,000
767,732
16,580,965
1,313,871
6,200,589
8,435
834,392
17,170,000
18,802,521
21,431,978 24,381,122
23,755,578 24,938,251
28,995,444
45,252,779 40,602,857 41,454,268
41,739,272 44,990,386
(44,252,628)
2,619,546
$ (41,633,682)
$ 14,131,605
15,441,683
232,208
522,033
5,535,966
2,497,606
2,860,948
1,895,647
116,694
101,688
1,056,843
44,392,921
(31,836,759) (46,816,260) (45,994,789)
4,110,332 3,423,348 4,960,326
27,726,426) :`.$ (43,392,912) $" (41,034,463) $
$ 14,510,241 $ 14,870,621
16,316,398 17,105,322
204,457 -
526,832 596,781
3,879,992 3,855,544
1,686,859 1,851,013
2,570,111 2,555,999
2,745,475 3,512,894
1,861,511 1,735,637
102,486 444,282
304,704 179,394
1,060,650 (600,000)
45,769,716 46,107,488
(1,056,843) (1,060,650)
(1,056,843) (1,060,650) 600,000 - 300,000 300,000
$ 43,336,078 $ 44,709,066 , $ 46,707,488 $ 82,545 $ 53,073,904 °' $ 6,814,482
(47,757,566)
3,605,314
(44,152,252)
$ 14,320,085 $ 14,562,501
19,334,152 18,908,190
677,971 710,267
4,019,288 4,045,916
2,061,098 2,146,515
2,749,140 2,716,257
5,321,281 6,508,665
1,843,634 1,915,810
475,345 559,733
280,551 1,000,049
(300,000)
51,082,545 52,773,904
(48,342,390)
4,433,529
(43,908,861)
$ 17,667,590
18,807,201
736,784
4,175,013
2,265,747
2,698,352
5,380,662
1,915,940
838,630
2,328,565
(300,000)
56,514,482
600,000
300,000
300,000
1,702,996 16,982,640 3,314,576 10,048,082 8,921,652 12,905,621
(1,995,000) (956,798) - -
1,702,996 16,982,640 1,319,576 9,091,285 8,921,652 12,905,621
$ 140,293 $ 13,932,957 $ (2,703,772) $ 3,830,958 $ 5,016,337 $ 6,256,152
1,562,703 3,049,682 4,023,348 5,260,326 3,905,314 4,733,529
702996° <:$ 16,982,640
19,576 $
91,285.. $ 8,921,651 ,'$ 10,989,681<
145
CITY OF TUKWILA: 2017 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 3
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Page 1 of 2
2008 2009 2010 2011
General Fund (GASB 54)
Nonspendable $ - $ - $ - $ 5,000
Restricted - - -
Committed - - 18,000
Assigned - - -
Unassigned - - 8,237,141
General Fund (Prior to GASB 54)
Reserved 17,800 17,900 17,900 -
Unreserved 7,687,515 7,371,530 5,739,140 -
Total general fund $ 7,705,315 $ 7,389,430 $ 5,757,040 $ 8,260,141
All other governmental funds (GASB 54)
Nonspendable $ $ - $ - $ -
Restricted - - 5,014,817
Committed - - 402,306
Assigned - - 11,127,221
Unassigned - - -
All other governmental funds (Prior to GASB 54)
Reserved - -
Unreserved, reported in:
Special revenue funds 12,943,487 9,123,401 14,461,546 -
Debt service funds 1,248,901 135,438 3,051 -
Capital Projects funds 6,831,634 7,101,258 8,541,195 -
Total all other governmental funds $21,024,022 $16,360,097 $23,005,792 $ 16,544,344
Note: In 2011 the City of Tukw ila implemented GASB Statement No. 54, w hich changed the categories
for fund balances. Balances prior to 2011 were not restated to the new standards.
Source:
Tukw ila Finance Department
$90
c $80
$70
$60
$50
$40
$30
$20
$10
$-
Fund Balances
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
All Other
Governmental
Funds
General Fund
146
CITY OF TUKWILA: 2017 CAFR STATISTICAL SECTION
Page 2 of 2
2012 2013 2014 2015 2016 2017
$ 1,743,362 $ 1,544,022 $ 1,340,914 $ 1,141,484 $ 927,373
225,000 5,771,471 6,078,648 6,277,929 105,000
8,378, 557 15,317,624 10,181,057 10,911,244 11,612,330 18,040, 352
$ 8,378,557 $17,285,986 $ 17,496,550 $18,330,806 $19 031,744; $ 19,072,725
$ $ - $ 7,370,000 $ 7,645,000 $ 7,645,000 $
2,749,681 3,480,001 3,973,726 5,446,074 45,986,463 51,236,443
7,021,183 4,510,623 4,076,803 7,221,870 3,389,139 10,282,709
(1,566,175) (1,360,218) -
$ 9,770,864 $ 6,424,449 $'14,060,311 $20,312,943 $57020,602 $61,519,152
147
CITY OF TUKWILA: 2017 CAFR
STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS tat
LAST TEN FISCAL YEARS
page 1 of 2
2008 2009 2010 2
Revenues
Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Investment Income
Special Assessments
Miscellaneous
Total Revenues
$ 37,412,569
2,022,851
5,697,598
2,569,381
259,991
926,913
816,054
37,167,281
1,283,463
17,596,486
1,443,680
301,761
282,604
701,957
37,267,918 $ 38,035,681
1,618,830 3,473,910
14,525,872 24,059,907
2,366,174 2,359,600
390,079 308,027
144,258 275,479
891,307 356,409
49,705,357 58,777,232 57,204,438 68,869,013
Expenditures
General Government 7,992,286 8,574,563 8,387,317 8,253,440
Public Safety 22,878,689 25,576,932 24,676,370 24,327,498
Physical Environment 2,255,880 2,058,913 1,724,147 2,060,482
Transportation 2,783,077 2,334,298 2,332,178 2,676,511
Economic Environment 4,995,514 4,601,391 4,541,845 4,682,646
Mental & Physical Health 4,173 4,332 4,539 4,591
Culture and Recreation 4,293,658 4,365,023 4,163,503 3,507,150
Debt Service
Principal 972,000 1,316,297 1,555,028 1,766,774
Interest 872,224 778,018 849,148 881,850
Capital Outlay 6,089,703 16,860,362 11,513,976 25,643,704
Total Expenditures 53,137,204 66,470,129 59,748,051 73,804,646
Excess (Deficiency) of Revenues (3,431,846) (7,692,894) (2,543,613) (4,935,633)
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In 2,515,982 3,865,744 2,461,806 11,001,619
Transfers In - Assessment
Transfers Out (1,107,543) (2,234,444) (1,020,857) (10,061,205)
Capital Leases 110,509 15,468
Sale of Capital Assets 53,592 1,014,608 27,308 21,406
General Obligation Bonds Issued - 6,935,000 5,055,688
General Obligation Refunding Bonds Issued 6,180,000 6,947,574
LID Bonds Assessment - - -
Operating Loan-Tukw ila MPD - -
Prensumon General Obligation Debt - - 112,151
Premium on General Obligation Refunding Debt 483,599 -
Issuance Costs on General Obligation Refunding Debt (108,326) -
Payment to Refunded Bond Escrow Agent (6,555,273) (6,880,397) (1,069,000) (5,055,688)
Total Other Financing Sources (Uses) 1,462,031 2,713,085 7,556,917 977,288
Change in Fund Balance Before Special Item (1,969,815) (4,979,809) 5,013,304 (3,958,345)
Special Item - -
Net Change in Fund Balances
69,815) $ (4,979,809) $ 5,013,304 $ (3,958,345)
Ratio of Debt Service Expenditures
To Total Non -Capital Expenditures
Note:
(a) All amounts are reported on the modified - accrual basis
Source:
Tukw ila Finance Department
4.1% 4.4%
5.2% 5.8%
148
CITY OF TUKWILA: 2017 CAFR
STATISTICAL SECTION
page 2 of 2
41,502,608 $ 42,402,070 $ 44,441,783 $ 48,548,116 $ 49,588,492
1,604,594 2,013,875 2,114,638 2,242,256 2,129,221
7,626,487 7,190,325 14,298,126 11,839,883 10,067,413
3,974,356 3,747,646 3,838,531 3,935,248 3,911,473
220,752 242,638 264,934 261,457 318,459
106,286 151,911 479,219 475,345 541,299
2,788,350 701,723 650,415 542,180
131,979 427,368 354,395 332,268 957,158
55,167,062 58,964,183 66,493,348 68,284,989 68,055,695
8,504,511
24,918,306
3,022,516
2,769,182
4,767,944
9,303,742
25,720,884
1,935,895
3,111,493
5,224,964
7,505,173
27,254,312
1,807,993
5,820,601
5,226,832
7,708,394
29,035,165
1,935,228
5,792,668
5,832,384
9,405,989
29,366,198
1,955,031
5,238,468
4,493,210
51,655,075
2,749,137
12,739,774
5,767,228
325,216
826,864
478,838
942,784
75,484,915
9,585,551
30,899,412
1,733,400
6,532,195
4,614,027
3,373,000 4,386,392 4,680,651 4,350,052 4,543,339 4,664,129
1,991,540
1,178,464
12,099,293
62,624,756
5,024,991
1,162,649
5,854,962
61,725,970
2,288,988
961,457
10,150,912
65,696,921
2,480,507
1,125,609
11,426,274
69,686,279
2,602,782
1,093,584
8,358,450
67,057,051
3,713,928
2,603,869
14,761,715
79,108,226
(7,457,694) (2,761,786) 796,428 (1,401,291) 998,643 (3,623,311)
7,625,792
(6,174,358)
9,903
(658,706)
20,918,983 7,300,080 5,633,846 4,025,831 6,354,496
2,788,350 - - - -
(23,301,516) (7,900,080) (5,933,846) (4,325,831) (6,654,496)
5,493 - - (100,000)
1,000,000 3,850,000 8,075,000 32,990,000 10,456,000
6,687,500
309,758 3,719,954 356,839
802,631
(6,655,063)
(6,655,064)
8,098,809
5,337,023
3,250,000 8,084,758
4,046,428 6,683,467
36,409,954
37,408,597
10,412,839
6,789,528
(1,995,000) (956,798) - -
7,023 $ 2,051,428 $ 5726,669 $ 37,408,597 $ 6,789,528
6.7% 11.07% 6.65% 6.34% 6.30% 9.82%
149
CITY OF TUKWILA: 2017 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 5
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Fiscal Year
Property(a) Sales & Use Utility(b) Excise Business(`} Other(d) Total Taxes
2008 11,245,973 17,709,319 3,934,210 3,003,438 475,500 1,089,344 37,457,785
2009 12,190,219 14,585,015 6,172,569 2,824,407 738,341 656,730 37,167,281
2010 13,188,942 14,251,312 6,134,494 2,488,357 727,151 301,867 37,092,122
2011 13,427,139 16,113,584 5,424,643 1,780,294 667,064 622,955 38,035,681
2012 14,072,015 15,441,683 4,001,385 3,201,098 2,497,606 2,288,822 41,502,608
2013 14,510,241 16,316,398 3,879,992 2,745,475 2,570,111 2,418,148 42,440,365
2014 14,870,621 17,105,322 3,855,544 3,512,894 2,555,999 2,447,794 44,348,175
2015 14,320,085 19,334,152 4,019,288 5,321,280 2,749,140 2,739,070 48,483,015
2016 14,562,501 18,908,190 4,045,916 6,508,665 2,716,257 2,856,782 49,598,312
2017 17,667,590 18,807,201 4,175,013 5,380,662 2,698,352 3,002,531 51,731,348
Change 2008-2017 57.5% 5.7% 6.6% 57.6% 547.5% 205.5% 36.0%
Notes:
(a) Beginning in 2017, property tax includes a voter approved excess levy for public safety facilities.
(b) Utility taxes enacted beginning in 2003 for electric, natural gas, cable and telephone utilities are assessed at rates of 6.0%.
A utility tax was added in 2009 for solid waste and recycling assessed at a 6.0% rate.
A utility tax rate of 10.0% was added in 2010 on the City's water, sewer, and stormwater utilities.
(`) Beginning in 2012, reporting of "Business" tax revenues include the Revenue Generating Regulatory License (RGRL) fees.
(d) "Other Taxes" include a hotel/motel tax and interfund utility taxes.
Source:
Tukw ila Finance Department
$50
$45
$40
$35
$30-
$25
$20
$15
$10
$5
$0
Tax Revenue by Source
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Other
Business
■ Excise
Utility
• Sales & Use
■ Property
150
CITY OF TUKWILA: 2017 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 6
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected Within the Fiscal
Year of the Levy Total Collections to Date
Collections in
Fiscal Taxes Levied for Subsequent
Year Fiscal Year Amount % of Levy Years Amount % of Levy Levy Balance
2008 11,410,664 11,194,247 98.10% 216,076 11,410,632 100.00% 32
2009 12,286,929 12,017,213 97.80% 264,905 12,282,118 99.96% 4,811
2010 13,233,796 13,152,012 99.38% 80,311 13,234,267 100.00% (470)
2011 13,383,153 13,225,338 98.82% 156,088 13,376,721 99.95% 6,431
2012 13,697,474 13,521,621 98.72% 173,716 13,697,982 100.00% (508)
2013 13,740,076 13,549,525 98.61% 175,699 13,742,487 100.02% (2,412)
2014 14,047,317 13,916,718 99.07% 126,155 14,042,872 99.97% 4,444
2015 14,245,846 14,113,739 99.07% 111,903 14,225,642 99.86% 20,204
2016 14,516,623 14,375,358 99.03% 97,341 14,472,699 99.70% 43,925
2017* 17,551,561 17,262,965 98.36% 17,262,965 98.36% 288,596
*First year of collection on 2016 voter -approved excess levy for Public Safety Ran
Source:
King County Office of Finance
18
0
2 15
12
9
6
3
Property Tax Levies and Collections
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
MI Taxes Levied
for Fiscal Year
■ Amount
Collected
Within Fiscal
Year of Levy
151
CITY OF TUKWILA: 2017 CAM
STATISTICAL SECTION
CITY OFTUKVVUA.VVASH|NGT]N
SCHEOWLE7
ASSESSED AND ESTIMATED ACTUAL VALUE 0FTAXABLE PROPERTY
LAST TEN FISCAL YEARS
`
2008 4,470042,539 535.268205 110.398.231 5,175.709875 2.37324
2009 4`122,981,628 748710,751 112.778.872 4,982,452.351 2.86345
2010 3.950.029.051 717.785,417 118.827.050 4,700,452.326 2.82500
2011 3.833295.985 712.007.050 128.720.102 4.075.029743 2.95408
2012 3,778,571709 736�80,018 134.138.983 4,649,181.308 2,98778
2013 3,024,448.044 779.103,146 152.822,490 4.756.373.688 2.97799
2014 4,146,952,417 744�6,273 162.510,057 5,054.08.747 2.84188
2015 4,409,931.075 010,422.092 174.971.951 5,395.325118 2,71073
2010 4J03568175 049.685,435 150.380.219 5,703,649.829 3.05735
Note:
*Real, personal, and state public service propertyhave been assessed at 100% of the estimated value.
Source:
King County Department of Assessments
$7,000
� $6,000
�
$5'UO0
$4,000
$3,000
$2'UUO
$l'OOU
���U ����
��������= °�.���=� .�KDe
2008 2009 010 2011 2012 2013 2014 2015 2016 ZOD
M4 Public Utilities
0Personal Property
N Real Property
152
CITY OF TUKWILA: 2017 CAFR
STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 8
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1,000 OF ASSESSED VALUATION)
LAST TEN FISCAL YEARS
CITYOF TUKWI
Total WA State,
Central
Puget
Sound
gional
Transit
Authority Total
2008 2.37324 - 2.37324 1.96268 1.51508 0.19700 0.27404 4.12360 0.09123 - 0.47141 - 11.00828
2009 2.66345 - 2.66345 2.22253 1.74587 0.21597 0.30000 3.89183 0.10514 - 0.53290 - 11.67769
2010 2.82566 - 2.82566 2.27990 1.90797 0.22366 0.30000 5.03380 0.10976 - 0.55753 - 13.23828
2011 2.95408 - 2.95408 2.42266 1.98580 0.22982 0.30000 5.44659 0.11616 0.50372 - 13.95883
2012 2.98778 - 2.98778 2.56720 2.11172 0.23324 0.30000 5.69832 0.13210 0.15000 0.50000 - 14.68036
2013 2.97799 - 2.97799 2.47044 2.08129 0.21533 0.33500 5.89098 0.15369 0.14944 0.50000 - 14.77416
2014 2.84188 - 2.84188 2.28514 1.84798 0.18885 0.30217 5.50160 0.13860 0.14962 0.50000 - 13.75584
2015 2.71073 - 2.71073 2.16898 1.95741 0.16954 0.28235 5.22858 0.12980 0.14853 0.50000 - 13.29592
2016 2.58592 0.47143 3.05735 2.03205 1.83412 0.15334 0.26305 5.36954 0.11740 0.15653 0.50089 0.25000 13.73427
2017 2.46285 0.45579 2.91864 2.91820 1.32735 0.13518 0.23940 5.17356 0.10708 0.15513 0.45689 0.22745 13.65888
Note:
(a) Includes King County Library District tax and Ferry
Source:
King County Department of Assessments
$3.50000
$3.00000
$2.50000
$ 2.00000
$1.50000
$1.00000
$0.50000
$0.00000
Direct Property Tax Rates
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
153
CITY OF TUKWILA: 2017 CAFR
STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 9
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Name
Boeing Company
Westfield (WEA) Southcenter LLC
Boeing Employees Credit Union
La Flanta LP/Segale Properties
Sabey Corporation
LIT lndustrtial Limited Partnership
KIR Tukw ila 050 LLCJKIMCO
3301 South Norfolk LLC (Sea-Tuk Warehouse LLC)
CPF Kent Valley LLC
CenturyLink Communications (Owest Corporation)
International Gateway East
Washington Towers LP
BKM Tukw ila 117 LLC (formerly Icon Tukw ila Ow ner Fool 1)
Puget Sound Energy/Gas - Electric
Harnish Group Incorporated
Sterling Realty Organization
Lowe's HIW Incorporated
Hill Investment Company
Rreef America Reit II Corporation
Heitman
E Property Tax Dept
Wig Properties LLC (JC Penney)
COSTCO Wholesale
Bank of China New York Branch (formerly Anne Arundel Apartments
AMB Property
International Gateway West
CLPF-Tukw ila LP
Seatac Hotel (Koar-Seatac Partners LP)
Southcenter Corporate Square
CSM Corp
Federated Department Stores (Macys)
Centerpoint 8801 Marginal (Merrill Creek Holdings LLC)
John C Radovich Dev. Co.
Talon Riverview Flaza LLC (formerly BRCP Riverview Flaza LLC)
CHA Tukw ila LLC (Doubletree Inn)
Avis Rent A Car System LLC
Demone Trust Oxbow 2601
Jorgensen Forge Corporation
TOTALS
Typeof.8
Airplane company
Department Stores
Credit Union
Commercial Properties
Real Estate Development
Business Services
Coin! rercial Properties
Food Distribution
Commercial Properties
Telephone Utility
Non -Residential Property Manageme
Real Estate Development
Investment Property
Electric/Gas Utility
Truck Equipment
Commercial Properties
Horne Improvement
Conrrercial Properties
Commercial Properties
Commercial Properties
Commercial Properties
Department Stores
Cash & Carry Warehouse
Apartments
Real Estate Development
Non -Residential Property Management
Startup Company
Lodging
Commercial Properties
Real Estate Development
Department Stores
Properties Trust
Corrrrercial Properties
Corrrrercial Properties
Lodging
Car Rental Services
Manufacturing
Steel Manufacturer
Notes:
ral In 2017 the total assessed property value in the City of Tukwila was $ 6,155, 826, 776
(b) In 2008 the total assessed property value in the City of Tukwila was $ 5,155,404,039.
Source:
King County Department of Assessments
2017 Assessed
Valuation
$ 649,477,382
331,894,672
131,088,803
121,353,075
112,816,028
105,799,200
88,273,700
87,512,300
62,141,900
60,616,151
57,901,108
57,294,500
50,568,700
37,261,348
Percent of
2017 Total
Assessed 2008Assessed Ass,
Value' . Valuation Value
10.55 % $ 548,000,475 10.63 %
5.39 % 302, 586,200 5.87 %
2.13% 47,777,584 0.93%
1.97% 117,844,205 2.29%
1.83 %
1.72 %
1.43 % 95,880,480 1.86 %
1.42 % 35, 598,100 0.69 %
1.01 %
0.98% 11,584,382 0.22%
0.94%
0.93 % -
0.82 %
0.61 % 28,036,339 0.54%
17,267,495 0.33%
35,981,100 0.70%
15, 508,451 0.30 %
8,219,300 0.16%
69,421,300 1.35%
0.00%
0.00% 30,831,200 0.60%
0.00% 15,977,900 0.31%
0.00%
0.00% 29,708,200 0.58%
0.00%
0.00% -
0.00%
0.00% 23,327,718 0.45%
0.00% 26,465,000
0.00%
0.00% 31,200,200 0.61 %
0.00% 21,886,500 0.42%
0.00%
0.00% 27,088,600 0.53%
0.00% 19,979,480 0.39 %
0.00%
0.00%
0.00% 26,115,389 0.51%
.7434 $ 1,5882
154
CITY OF TUKWILA: 2017 CAFR STATISTICAL SECTION
155
CITY OF TUKWILA: 2017 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' 2008
2009
2010 201
Construction and Contracting $ 1,967,785 $ 869,640 $ 917,250 $ 1,390,952
Finance, Insurance & Real Estate 118,780 119,121 99,975 115,123
Manufacturing 375,263 246,429 387,234 232,737
Transportation, Communications & Utilities 492,960 440,206 441,822 405,197
Wholesale - Durable/Non-durable Goods 1,760,449 1,436,045 1,346,750 1,119,527
Retail Trade - General Merchandise 2,231,745 2,072,356 2,068,263 2,003,947
Retail Trade - Furniture/Home Furnishings 1,830,576 1,304,234 1,380,407 1,771,083
Retail Trade - Miscellaneous 1,718,898 1,473,496 1,521,741 1,626,452
Retail Trade - Clothing & Accessories 2,103,630 2,017,904 2,018,304 2,037,554
Retail Trade - Restaurants 1,312,603 1,292,252 1,342,964 1,337,067
Retail Trade - Automotive/Gas 1,066,183 748,482 664,310 670,806
Retail Trade - Building Materials 619,657 589,341 499,383 487,620
Service Industries - Business 1,129,380 868,260 882,012 932,422
Service Industries - Hotels 548,962 453,657 428,450 459,606
Service Industries - Other 318,696 283,319 215,045 202,217
All Other Categories 185,312 208,467 366,925 553,493
Total Ra
Sales
Tax Collections'!
$ '17,780,879'
4,423,09 $ 14,580,8
5,34
Notes:
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.
156
CITY 0rTUmw|uA: 2017CxM STATISTICAL SECTION
page 2 of 2
$ 90.125 G 1,212,584 B 829,073 $ 1,255,650 $ 1,383,624
143.792 174.705 141.010 103.101 175,000 139,872
390,252 380,984 322188 281,501 288117 179,583
432.608 475.688 549.126 743.746 746.115 721,414
1,077,613 1.108,771 1,592,613 2,018J22 1,295141 1.175,004
2,000,805 2,154,523 2,137,250 2,205,778 2,202158 2,131,207
1.537143 1,405.274 1,431.905 1.527.377 1,623.920 1.013.043
1,703741 1,870,200 1,973,478 1,954150 2.032.807 2.077248
2,082,930 2,070198 2,013,796 2.159,647 2,088128 2.060.858
1,472.343 1.529.101 1.011.800 1.703.187 1.751.724 1.888.031
090,070 090,691 705J65 825140 748,400 800580
510.001 505734 000,610 683,485 733.920 805324
928.610 900.990 1.073.511 1.205.788 1.407.020 1.430.825
487077 502721 502.130 620.822 650.270 050382
234.870 240.802 274.487 273.514 253.089 308.939
381.093 525.133 408.547 978.142 845.209 812.654
157
CITY OF TUKWILA: 2017 CAFR
STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 11
SALES TAX RATE DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
2008 t°} 2009 Idi 2010 2011 2012 2013 2014 2015 2016 2017
BASIC SALES TAX RATES
City of Tukw ila
Washington State
King County
Regional Transit Authority
Metro
Criminal Justice
Department of Revenue
Administration Fee
Total Basic Combined Sal
Ta
SPECIAL SALES TAX RATES
Restaurants
Motor Vehicles ib)
0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84%
6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50%
0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
0.40% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 1.40%
0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90%
0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
0°I° 9.50°
9.50% 9.50% 9.50% 9.50% 9.50% 9.50%
9
50% 10.01
0.50% 0.50% 0.50% 0.50%
0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%
Notes:
(a) King County Food & Beverage tax is in addition to the combined sales tax rate for restaurants, taverns and bars.
The funds are used to finance the professional baseball stadium in Seattle.
NOTE: This tax expired on October 1, 2011 as taxes imposed to pay the construction bonds for the Seattle baseball stadium expired.
(b) Effective July 1, 2003, all retail sales, leases and transfers of motor vehicles are subject to the additional sales tax of three -tenths of one percent
(.003). The funds are used to finance transportation improvements.
r8i 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.
(d) Effective April 1, 2009, the Regional Transit Authority Tax increased five -tenths of one percent (.005).
Effective April 1, 2017, the Regional Transit Authority Tax increased five -tenths of one percent (.005), to one and four -tenths of one percent (.014).
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.
158
CITY OF TUKWILA: 2017 CAFR STATISTICAL SECTION
159
CITY OF TUKWILA: 2017 CAFR
STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 12
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Page 1 of 2
2008 2009 2010 2011 2012 2013 2014
GOVERNM ENTAL ACTIVITIES
General Obligation Bonds (c) $17,261,348 $ 22,453,003 $ 26,763,975 $ 28,006,800 $ 25,752,600 $ 21,727,609 $ 23,851,376
Special Assessment (d)
Leases
Total Governmental Activities 17,261,348 22,453,003 26,804,159 28,042,691 25,752,600 28,415,109 30,538,876
6,687,500 6,687,500
40,184 35,891
BUSINESS -TYPE ACTIVITIES
General Obligation Bonds 3,642,500 3,423,797 3,238,825 -
Revenue Bonds 5,112,231 4,790,000 4,395,000 3,980,000 3,540,000 3,075,000 2,580,000
Public Works Trust Fund Loans 9,021,951 8,405,397 7,788,843 7,179,635 6,621,342 6,063,071 5,742,866
Leases 11,666 - - -
Total Business -Type Activities 17,788,348 16,619,194 15,422,668 11,159,635 10,161,342
TOTAL PRIMARY GOVERNMENTS'} $35,049,696 $ 39,072,197 $ 42,226,827 $ 39,202,326 $ 35,913,942 $'37,553,180 $ 38,861,742
Population (b) 18,080 18,170 19,107 19,486 19,611 19,765 19,920
Per Capita Personal Income (b) $ 62,329 $ 55,569 $ 55,503 $ 58,688 $ 63,345 $ 66,073 $ 71,882
Percentage of Personal Income 3.11 % 3.87% 3.98% 3.43% 2.89% 2.88% 2.71 %
Debt Per Capita $ 1,939 $ 2,150 $ 2,210 $ 2,012 $ 1,831 $ 1,900 $ 1,951
Notes:
(a) Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements section.
(b) Reference SCHEDULE 16, Demographic Statistics, for population and personal income data.
(c) Includes amounts Due to Other Governments.
(d) Special assessment debt was issued in 2013 for the Klickitat Urban Access Project.
""" Data not available at time of publication.
Sources:
U.S. Census Bureau
WA State Office of Financial Management
City of Tukw ila Finance Department
$90
$80
$70
$60
$50
$40
$30
$20
$10
$-
Total tebt
9,138,071
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
8,322,866
160
CITY OF TUKWILA: 2017 CAFR STATISTICAL SECTION
Page 2 of 2
$ 25,752,600 $ 21,727,609 $ 23,851,376 $ 30,084,437 $ 64,589,264 $ 69,576,786
- 6,687,500 6,687,500 6,082,500 5,412,500 4,805,000
25,752,600 28,415,109 30,538,876 36,166,937 70,001,764 74,381,786
3,540,000 3,075,000 2,580,000 1,742,527 1,597,704 1,454,422
6,621,342 6,063,071 5,742,866 5,646,458 5,046,900 4,447,522
10,161,342 9,138,071 8,322,866 7,388,985 6,644,604 5,901,944
35,913942 $ 37,553,180 $ 38,861,742 $ 43,555,922 $ 76,646,368 $ 80,283,729
19,611 19,765 19,920 19,300 19,540
$ 63,345 $ 66,073 $ 71,882 $ 77,518 $ 77,213
2.89% 2.88% 2.71 % 2.91% 5.08%
$ 1,831 $ 1,900 $ 1,951 $ 2,257 $ 3,923 $ 4,084
nts section.
19,660
161
CITY OF TUKWILA: 2017 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
Special Less Debt from Bonded Debt Bonded
Fiscal Gross Bonded Assessment Service Enterprise Net Bonded to Assessed Debt per
Year Population Assessed Value Debt Debt(a) Funds(b) Revenues(`) Debt Value Capita
2008 18,080 5,175,709,975 23,125,007 - 1,250,275 3,642,500 18,232,231 0.35% 1,008
2009 18,170 4,973,984,133 25,876,800 - 135,438 3,423,797 22,317,565 0.45% 1,228
2010 19,107 4,809,486,786 29,950,150 - 3,050 3,238,825 26,708,275 0.56% 1,398
2011 19,486 4,752,606,030 28,006,800 - 3,330,312 24,676,488 0.52% 1,266
2012 19,611 4,649,191,308 25,752,600 - 3,012,381 22,740,219 0.49% 1,160
2013 19,765 4,756,373,688 21,727,609 6,687,500 696,346 27,718,763 0.58% 1,402
2014 19,920 5,054,078,747 23,851,376 6,687,500 1,687,497 - 28,851,379 0.57% 1,448
2015 19,300 5,395,325,118 30,084,437 6,082,500 1,910,940 - 34,255,997 0.63% 1,775
2016 19,540 5,763,649,829 64,589,264 5,412,500 1,962,497 68,039,267 1.18% 3,482
2017 19,660 6,155,826,776 69,576,786 4,805,000 1,323,959 - 73,057,826 1.19% 3,716
Note:
(a) Special assessment debt was issued in 2013 for the Klickitat Urban Access Project.
(b) Includes both restricted and assigned fund balance available for debt service payment.
(c) These amounts are the general obligation bonds that are being repaid by the Foster Golf Course Fund.
Sources:
U.S. Census Bureau
State of Washington Office of Financial Management
King County Department of Assessments
Tukw ila Finance Department
$80
C
o $70
$60
$50
$40
$30
$20
$10
$0
Net Bonded Debt
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
162
CITY OF TUKWILA: 2017 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 14
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
AS OF DECEMBER 31, 2017
Jurisdiction
Net General Percentage Estimated
Obligation Debt Applicable to Applicable to
Outstanding Tukw ila(1) Tukw ila
Direct:
City of Tukw ila
Overlapping:
King County
King County Library
Port of Seattle
Tukw ila School District #406
Hospital District #1
Total Overlapping Debt:
Total Direct and Overlapping Debt:
Sources:
King County Office of Finance
King County Office of Assessments
69,576,786
724,994,000
87,869,746
388,360,000
57,560,005
100.00% $ 69,576,786
1.22% 8,844,927
2.14% 1,880,413
1.22% 4,737,992
91.55% 52,696,185
4.91 % -
1,258,783, 751 68,159,516
1,328,360,537 $ 137,736,302
(1) The percentage of overlapping debt applicable is estimated using taxable county assessed property values.
$80
c $70
$60
$50
$40
$30
$20
$10
$-
Direct and Overlapping Debt
City of Tukwila
• King County
King County Library
• Port of Seattle
■ Tukwila School District
Hospital District
163
CITY OF TUKWILA: 2017 CAFR
STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 15
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Page 1 of 2
2008 2009
2010 201
Debt Limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
Assessed Value as of December 31, 2017
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
Legal debt
argin
Source:
Tukw ila Finance Department
$ 388,178, 248 $ 373, 048, 810 $ 360, 711, 509 $ 356, 445, 452
21, 881, 765 28, 291, 920 32, 919,123 29, 703, 995
$ 366, 296, 483 $ 344, 756, 890 $ 327, 792, 386 $ 326, 741, 457
5.64% 7.58%
6,155, 826, 776
461,687,008
65,128, 905
396, 558,104
65,128, 905
)6, 558,104
9.13% 8.33%
164
CITY OF TUKWILA: 2017 CAFR
STATISTICAL SECTION
Page 2 of 2
2012 201`
2014 2015 2016 2017
$ 348, 689, 348 $ 356, 728, 027 $ 379, 055, 906 $ 404, 649, 384 $ 432, 273, 737 $ 461, 687, 008
25, 884, 632 21, 727, 609 23, 288, 621 29, 322, 914 60, 208, 532 65,128, 905
$ 322, 804, 716 $ 335, 000, 418 $ 355, 767, 285 $ 375, 326, 470 $ 372, 065, 205 $ 396, 558,104
7.42%
6.09% 6.14%
7.25% 13.93% 14.11
165
CITY OF TUKWILA: 2017 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 16
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Per Capita Personal Number of Number of Tukw ila School
Fiscal Personal Income (b) Single -Family Multi -Family District Unemployment
Year Population Income (a) (in thousands) Homes Units Enrollment Rate (°)
2008 18,080 62,329 1,126,908 3,884 4,107 2,769 5.9%
2009 18,170 55,569 1,009,689 3,885 4,107 2,795 10.9%
2010 19,107 55,503 1,060,496 3,892 4,107 2,907 11.7%
2011 19,486 58,688 1,143,594 3,894 4,094 2,870 7.6%
2012 19,611 63,345 1,242,259 3,896 4,094 2,902 7.4%
2013 19,765 66,073 1,305,933 3,915 4,094 2,882 5.2%
2014 19,920 71,882 1,431,889 3,920 4,103 2,978 4.1%
2015 19,300 75,518 1,457,497 3,940 4,103 2,910 4.5%
2016 19,540 77,213 1,508,742 3,969 4,103 2,873 4.2%
2017 19,660 *** *** 3,995 4,103 2,961 3.5%
Notes:
(a) Per Capita Personal Income data shown is for King County. Specific data for City of Tukwila is not available.
(b) Personal Income estimates are calculated by multiplying Tukwila population by the Per Capita Personal Income
estimates for Tukwila and are based on a revised methodology that provides for more accuracy. See also Footnote (a).
(c) Unemployment rates are listed and estimated using the census -share method.
*** Data not available at time of publication.
Sources:
Tukw ila Planning Division, Department of Community Development
State of Washington Office of Financial Management
Work Force Development Council of Seattle - King County (Unemployment Data)
Tukw ila School District #406
US Bureau of Economic Analysis
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Unemployment Rate
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
166
CITY OF TUKWILA: 2017 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 17
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Name of Company/Employer
Product or Business
2017 Full & Percentage of 2008 Full & Percentage of
Part -Time Total City Part -Time Total City
Employment Employees Employment Employees
Boeing Company
Macy's West Stores Inc
King County Metro
Boeing Employee's Credit Union
Nordstrom
Hat Club LLC
Zonar Systems Inc
United Parcel Service
Costco Wholesale
Cheesecake Factory
Sub -total - Major Employers
All Other Employment
TOTAL EMPLOYMENT
Aircraft Manufacturing
Department Store
Transit Operating Base
Credit Union
Family Clothing Store
Clothing Accessories
Miscellaneous Store
Courier and Express Delivery
Warehouse Club
Full -Service Restaurant
Source:
Tukw ila Finance Department - Business Licenses
4,644 11.73% 8,043 18.98%
877 2.22% 376 0.89%
806 2.04% 644 1.52%
658 1.66% 376 0.89%
616 1.56% 334 0.79%
586 1.48% - 0.00%
409 1.03% - 0.00%
388 0.98% - 0.00%
362 0.91 % - 0.00%
340 0.86% - 0.00%
9,686 9,773
29,906 32,595
39,592 42,368
167
CITY OF TUKWILA: 2017 CAFR
STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 18
FULL TIME EQUIVALENT EMPLOYEE BY DEPARTMENT
LAST TEN FISCAL YEARS
2008 `- 2009 2010 ; . 2011 ' . 2012 .... 2013 2t714 ; ; ; 2019 . ; ; ;2018 - 2017
ARTM
Administrative Services (a)
Council
Mayor (b)
Human Resources (a)
Finance
Recreation
Community Development
19.75 - -
7.00 7.00 7.00
11.00 16.00 17.00
4.00 4.00
12.00 12.00 13.00
23.50 22.50 20.75
24.25 24.25 23.00
Court (a) - 9.75 8.75
Police (`) 83.00 82.00 80.00
Fire 64.00 63.00 65.00
Information Technology (a) 8.00 8.00
Public Works 33.00 32.00 30.00
Parks 7.50 7.50 7.50
Street 12.00 12.00 11.00
Water 7.00 7.00 7.00
Sewer 2.00 2.00 1.00
Golf 9.75 9.75 10.00
Surface Water 8.00 8.00 7.00
Equipment Rental 5.00 5.00 5.00
Metropolitan Park District Pool (d) - - -
7.00 7.00 7.00 7.00 7.00 7.00 7.00
15.75 16.75 17.75 21.00 20.00 17.00 17.00
4.00 4.00 4.00 4.00 4.00 4.00 3.00
11.00 12.00 12.00 12.00 12.00 12.00 11.00
16.25 16.25 16.25 16.00 16.75 17.25 16.25
22.63 23.38 22.13 21.63 21.00 23.75 23.00
8.75 9.00 9.00 9.10 8.10 9.10 10.40
83.00 88.00 87.50 89.00 93.00 93.75 92.75
66.00 67.00 67.00 67.00 70.00 71.00 73.00
8.00 8.00 7.00 6.00 6.00 7.00 9.00
30.00 30.00 31.00 31.00 32.00 32.00 31.00
7.50 7.50 6.00 7.00 7.00 8.00 9.00
12.00 12.00 12.50 11.50 10.00 12.00 11.00
7.00 7.00 7.00 7.00 6.00 7.00 7.00
2.00 2.00 2.00 2.00 2.00 2.00 3.00
9.25 8.25 9.25 8.25 8.25 7.75 8.75
8.00 8.00 8.00 8.00 9.00 9.00 9.00
5.00 5.00 5.00 5.00 5.00 5.00 5.00
2.00 2.00 2.00 2.00 - - -
TOTAL•'' ' '•328.76 " ' 3l.75 . 2r5.00 :' ' 26.18 333.13 . -' , ...3 2.38 - 334.48 ' 337.10 . 344.60, : ° °'346.151
Notes:
Based on filled positions not budgeted positions.
(a) The departments for Human Resources, Court, City Clerk and Information Technology were previously reported under Administrative Services.
(a) The department of City Clerk began reporting to the Mayor's department in 2009.
(d) On September 12, 2011, the Board of Commissioners approved the formation of the Tukwila Metropolitan Park District (MPD) Pool.
For the comprehensive annual financial report years of 2011 and 2012, the MPD Pool was treated as a discretely presented component
unit. Effective with the report year 2013, statistical information is now included for the MPD and presented as a blended component unit.
Source:
Tukw ila Finance Department
168
CITY OF TUKWILA: 2017 CAFR
STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 19
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2008 2009 2010 2011 2012 2013 2014 2015 2016 201'7
FUNCTION
Police
Number of Calls for Service 35,816 33,095 32,889 30,272 31,916 31,355 29,840 32,946 34,229 33,123
Fire
Number of Responses
Total Fire Loss
Total Inspections
Parks and Recreation
Class Participants
Community Ctr Admissions
Rounds of Golf Rayed
Pool Attendance
4,824 4,654 4,574 4,649 4,844 4,604 5,156 5,549 5,754 5,840
$2,300,685 $1,934,596 $1,655,571 $1,601,596 $675,847 $343,495 $2,738,080 $1,926,944 $2,821,016 $1,142,486
6,787 6,787 mi 1,550 °0) 1,360 °bt 4,541 3,389 3,850 2,331 1,860 1,951
109,273
117,533
53,565
59,077
103,603
134,183
53,800
80,727
85,693
134,275
50,445
101,128
64,049
115,728
45,947
66,213
58,260
116,136
47,392
69,332
52,319
114,748
47,757
71,233
45,514 68,970
132,397 136,984
47,267 51,017
79,537
64,782
141,218
47,595
83,030
143,872
43,568
Street
Miles 79 79 79 79 79 79 79 79 79 79
Hours Maintaining 19,840 22,140 20,360 20,360 22,920 16,767 8,627 4,716 4,836 4,936
Signalized Intersections 63 59 59 59 62 62 62 62 64 66
Hours Maintaining 7,540 6,700 6,925 6,925 7,000 8,815 3,012 2,408 2,135 2,986
Water Utility Services
Total Customers 2,109 2,112 2,100 2,109 2,117 2,118 2,126 2,145 2,160 2,176
Total Gallons/Water(in
thousands) 660,915 731,469 630,755 625,976 650,659 645,982 668,740 697,147 655,472 697,210
Sanitary Sewer
Total Customers
1,684 1,694
1,699 1,710
1,727 1,742
1,752 1,775
1,789 1,808
Surface Water
Total Customers 5,164 5,204 5,207 5,207 5,212 5,226 5,239 5,242 5,249 5,282
Licenses
Business Licenses 2,523 2,422 2,454 2,611 2,030 1,877 2,208 2,220 1,909 2,120
Outside Contractors - - ,`, 1,066 1,132 1,216 1,215 945 1,437
Perm its
Building Permits 423 265 290 389 354 374 347 277 311 348
Mechanical Permits 256 159 160 180 191 221 216 154 192 198
Dectrical Permits 1,533 821 955 1,158 1,175 1,337 1,223 1,119 1,175 1,047
Plumbing Permits 264 145 163 187 210 167 184 140 185 165
Public Works Per 154 131 138 106 126 155 152 163 175 136
Libraries
Number of Libraries 3 3 2 2 2 2 2 2 2 2
Total Circulation 303,665 318,991 327,004 333,451 332,509 313,571 284,667 214,520 184,492 157,168
Notes:
tai Construction of new clubhouse completed and opened in 2003.
(b) 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.
r`i During 2012, Outside Contractors began their own business licensing category. Prior to this, outside contractors were consolidated with current year issued licenses.
` Information not available.
Pool facilities acquired from King County in 2003.
Sources:
Tukw ila Departments, King County Library System
169
CITY OF TUKWILA: 2017 CAFR
STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 20
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
FUNCTION
General Government
Total City Area (Square Miles)
Public Safety
Police:
Number of Vehicle Units
8.6 9.7 9.7 9.7 9.63 9.63 9.63 9.63 9.63 9.63
67 70 76 84 88 81 89 89 93 93
Fire:
Number of Fire Stations 4 4 4 4 4 4 4 4 4 4
Number of Engines/Rescue Trucks/Ladders 9 9 8 7 7 7 9 9 9 8
Number of Medical Aid Vehicles 2 2 2 1 1 1 1 1 1 1
Number of Hazardous Materials Trailer Units 2 2 2 2 2 2 2 2 2 2
Transportation
Paved Streets (lane miles) 163 178 178 178 188.2 188.2 188.2 188.2 188.2 188.2
Sidewalks (miles) 54 56 56 56 64.8 64.8 64.8 64.8 64.8 64.8
Number of Traffic Signals 57 59 59 59 64 63 63 63 74 76
Number of Streetlights Owned by Seattle City Light 1,180 1,180 1,335 1,335 l`l 901 901 902 902 902 902
Number of Streetlights Owned by Puget Sound Energy 670 696 696 623 (`) 187 187 187 187 187 187
Number of Streetlights Owned by aty of Tukwila - (`) 1,210 1,216 1,224 1,224 1,224 1,224
Culture and Recreation
Parks Acreage (a) 162 162 162 162 175.6 175.6 175.6 190 190 191
Number of Parks 18 18 18 18 19 19 19 19 19 20
Golf Course Acreage 67 67 67 67 77.26 77.26 77.26 77.26 77.26 77.26
Maintained Trails (miles) 11 15 15 15 15 15 15 15 15 15
Number of Playgrounds 13 11 11 11 11 11 11 11 11 11
Swimming Pool 1 1 1 - - - -
Visitor Center 1 1 1 1 1 1 1 1 1 1
Community Center/Recreation Facilities 1 1 1 1 1 1 1 1 1 1
Number of Libraries 3 3 2 2 2 2 2 2 2 2
Wate r
Water Distribution Mains (miles) 47 41 41 41 41 41 49 49 49 49
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) 572 541 542 554 576 576 576 577 577 579
Vehicles 8 8 8 8 8 8 9 9 9 9
Sewer
Sanitary Sewers (miles) 37 37 37 37 37 37 37 37 37 39
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 6 6 6 6 6 5 4 4 5 5
Surface Water
Storm Drains (miles) (b) 67 69 69 70 70 70 70 71 70.5 97.4
Vehicles 4 4 4 4 4 4 8 8 8 8
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.
into the Citys meters. Also, additional street lights were added due to new construction for Southcenter
Parkway Extension and Klickitat Projects.
Sources:
Various Departments-Tukw ila
170