HomeMy WebLinkAbout2018 Comprehensive Annual Financial Report (CAFR)COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the fiscal year ended
December 31, 2018
City of Tukwila, Washington
The city of opportunity,
the community of choice
VALUES
Caring
Professional
Responsive
MISSION
To provide superior services
that support a safe, inviting and
healthy environment for our
residents, businesses and guests.
STRATEGIC GOALS AND OBJECTIVES
1
2
5
4
3
VISION
A community of inviting neighborhoods and vibrant business districts
A solid foundation for all Tukwila residents
A positive community identity and image
A high-performing and effective organization
A diverse and regionally competitive economy
F Cultivate community ownership of shared spaces.
F Build a broad and collaborative approach to preventing crime and increasing the sense of safety.
F Focus City planning and investments on creating a connected, dynamic urban environment.
F Use City efforts and investments to realize established visions for specific sub-areas.
F Partner with organizations that help meet the basic needs of all residents.
F Strive for excellent education, vocational supports, and personal growth opportunities
through effective partnerships and City services.
F Encourage maintenance, improvements and diversity in the City’s housing stock.
F Improve the City’s ability to build trust and work with all members of the Tukwila community.
F Facilitate connections among Tukwila’s communities.
F Promote a positive identity and image of Tukwila.
F Use Tukwila’s Vision, Mission, and Strategic Plan to focus and prioritize City efforts.
F Advance Tukwila’s interests through participation in regional partnerships.
F Continue to develop as an organization and support individual growth.
F Ensure City facilities are safe, efficient and inviting to the public.
F Ensure the long-term fiscal sustainability of the City.
F Embrace the City’s economic potential and strengthen the City’s role as a regional
business and employment center.
F Strengthen the City’s engagement and partnership with the business community.
City of Tukwila, Washington
The city of opportunity,
the community of choice
VALUES
Caring
Professional
Responsive
MISSION
To provide superior services
that support a safe, inviting and
healthy environment for our
residents, businesses and guests.
STRATEGIC GOALS AND OBJECTIVES
1
2
5
4
3
VISION
A community of inviting neighborhoods and vibrant business districts
A solid foundation for all Tukwila residents
A positive community identity and image
A high-performing and effective organization
A diverse and regionally competitive economy
F Cultivate community ownership of shared spaces.
F Build a broad and collaborative approach to preventing crime and increasing the sense of safety.
F Focus City planning and investments on creating a connected, dynamic urban environment.
F Use City efforts and investments to realize established visions for specific sub-areas.
F Partner with organizations that help meet the basic needs of all residents.
F Strive for excellent education, vocational supports, and personal growth opportunities
through effective partnerships and City services.
F Encourage maintenance, improvements and diversity in the City’s housing stock.
F Improve the City’s ability to build trust and work with all members of the Tukwila community.
F Facilitate connections among Tukwila’s communities.
F Promote a positive identity and image of Tukwila.
F Use Tukwila’s Vision, Mission, and Strategic Plan to focus and prioritize City efforts.
F Advance Tukwila’s interests through participation in regional partnerships.
F Continue to develop as an organization and support individual growth.
F Ensure City facilities are safe, efficient and inviting to the public.
F Ensure the long-term fiscal sustainability of the City.
F Embrace the City’s economic potential and strengthen the City’s role as a regional
business and employment center.
F Strengthen the City’s engagement and partnership with the business community.
City of Tukwila, Washington
COVER PHOTO
Looking west on South 144th Street
The City of Tukwila, Washington
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
For the Year Ended December 31, 2018
Prepared by the City of Tukwila, Finance Department
Vicky Carlsen, Finance Director
Allan Ekberg, MAYOR
TUKWILA CITY COUNCIL
Kathy Hougardy, Council President
Dennis Robertson Verna Seal
De’Sean Quinn Kate Kruller
Thomas McLeod Zak Idan
CITY OF TUKWILA: 2018 CAFR TABLE OF CONTENTS
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2018
TABLE OF CONTENTS
Page
I.INTRODUCTORY SECTION
Administrative Organizational Structure, Principal Officials, and Council Committees……………………… 1
Letter of Transmittal………………………………………………………………………………………………… 3
Certificate of Achievement…………………………………………………………………………………………. 9
II.FINANCIAL SECTION
Auditor’s Report……………………………………………………………………………………………………… 11
Management’s Discussion and Analysis………………………………………………………………………….. 15
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position…………………………………………………………………………………. 30
Statement of Activities…………………………………………………………………………………….. 31
Fund Financial Statements:
Balance Sheet – Governmental Funds………………………………………………………………….. 32
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position……………………………………………………………………………….. 33
Statement of Revenues, Expenditures, and Changes in
Fund Balance – Governmental Funds…………………………………………………………………. 34
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities…………………………….. 35
Statement of Net Position – Proprietary Funds……………………………………………………….… 36
Statement of Revenues, Expenses, and Changes in
Net Position – Proprietary Funds……………………………………………………………………….. 37
Statement of Cash Flows – Proprietary Funds…………………………………………………………. 38
Statement of Fiduciary Net Position – Fiduciary Fund…………………………….……………..…… 40
Statement of Changes in Fiduciary Net Position – Fiduciary Fund………………..…………….…… 41
Notes to the Financial Statements………………………………………………………………………….. 42
Required Supplemental Information:
Schedules of Revenues, Expenditures, and Changes in
Fund Balances – Budget and Actual
General Fund………………………………………………………………………………………………. 103
Notes to the Required Supplementary Information………………………………………………………. 104
Firemen’s Pension Trust Fund……………………………………………………………………………… 107
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet – Non-Major Governmental Funds………………………………………….. 112
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Non-Major Governmental Funds…………………………………………………… 113
Combining Balance Sheet – Non-Major Special Revenue Funds………………………………………. 114
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Non-Major Special Revenue Funds………………………………………………... 115
CITY OF TUKWILA: 2018 CAFR TABLE OF CONTENTS
ii
TABLE OF CONTENTS - continued
Page
Combining Balance Sheet – Non-Major Debt Service Funds……………………………………………… 116
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Non-Major Debt Service Funds……………………………………………………… 117
Combining Balance Sheet – Non-Major Capital Project Funds…………………………………………… 118
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Non-Major Capital Project Funds……………………………………………………. 119
Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:
Arterial Street Capital Project Fund……………………………………………………………………… 120
Local Improvement District #33 Debt Service Fund…………………………………………………… 121
Public Safety Plan Capital Project Fund………………………………………………………………… 122
City Facilities 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………………………………………………………..…
Facilities Urban Renewal Capital Project Fund…………………………………………….................128
General Government Improvements Capital Project Fund……………………………………………129
Fire Improvements Capital Project Fund………………...……………………………………………… 130
Special Assessment Bonds Guaranty Funds…………………………………………………………… 131
Unlimited Tax General Obligation Debt Service Fund…………………………………………………. 132
Debt Service Fund..………………………………………………………………………………………...133
Combining Statements of Net Position – Internal Service Funds…………………………………………..135
Combining Statement of Revenues, Expenses, and Changes in
Net Position – Internal Service Funds………………………………………………………………….. 136
Combining Statement of Cash Flows – Internal Service Funds………………………………………….. 137
Statement of Changes in Assets and Liabilities – Agency Fund…………………………………………. 139
III.STATISTICAL SECTION
Schedule
Net Position by Component .................................................................................................... 1 141
Changes in Net Position .............................................................................................................. 2 143
Fund Balances, Governmental Funds ......................................................................................... 3 145
Changes in Fund Balances of Governmental Funds ................................................................... 4 147
General Government Tax Revenues by Source ......................................................................... 5 149
Property Tax Levies and Collections ........................................................................................... 6 150
Assessed and Estimated Actual Value of Taxable Property ....................................................... 7 151
Property Tax Rates – Direct and Overlapping Governments ...................................................... 8 152
Principal Property Taxpayers ...................................................................................................... 9 153
Retail Sales Tax Collections by Sector...................................................................................... 10 155
Sales Tax Rate Direct and Overlapping Governments ............................................................. 11 157
Ratios of Outstanding Debt by Type.......................................................................................... 12 159
Ratios of General Bonded Debt Outstanding ............................................................................ 13 161
Computation of Direct and Overlapping Debt ............................................................................ 14 162
Legal Debt Margin Information .................................................................................................. 15 163
Demographic Statistics .............................................................................................................. 16 165
Principal Employers ................................................................................................................... 17 166
Full-Time Equivalent City Government Employees by Department .......................................... 18 167
Operating Indicators by Function ............................................................................................... 19 168
Capital Assets by Function ........................................................................................................ 20 169
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CITY OF TUKWILA: 2018 CAFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
ADMINISTRATIVE ORGANIZATIONAL STRUCTURE
AND PRINCIPAL OFFICIALS
CITY
ADMINISTRATOR
David Cline
CITY ATTORNEY
Kenyon Disend PLLC
(Contracted)
ADMINISTRATIVE
SERVICES
Rachel Bianchi
COMMUNITY
DEVELOPMENT
Jack Pace
FINANCE
Vicky Carlsen
FIRE
Jay Wittwer
PARKS AND
RECREATION
Rick Still
PUBLIC WORKS
Henry Hash
POLICE
Bruce Linton
MAYOR
Allan Ekberg
CITIZENS OF TUKWILA
TECHNOLOGY
INFORMATION
SERVICES
Joseph Todd
COUNCIL
MEMBERS
MUNICIPAL
COURT
Kimberly Walden
COUNCIL COMMITTEES
COUNCIL PRESIDENT
Kathy Hougardy
FINANCE COMMITTEE TRANSPORTATION & INFRASTRUCTURE
Thomas McLeod, Chairperson Zak Idan, Chairperson
Verna Seal, Member Kate Kruller, Member
De'Sean Quinn, Member Thomas McLeod, Member
COMMUNITY DEVELOPMENT & NEIGHBORHOODS PUBLIC SAFETY
De'Sean Quinn, Chairperson Dennis Robertson, Chairperson
Dennis Robertson, Member Kate Kruller, Member
Verna Seal, Member Zak Idan, Member
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CITY OF TUKWILA: 2018 CAFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
2
City of Tukwila
6200 Southcenter Blvd, Tukwila, WA 98188 Allan Ekberg, Mayor
Honorable Allan Ekberg, Mayor
Members of the Tukwila City Council
Citizens of Tukwila
City of Tukwila
6200 Southcenter Boulevard
Tukwila, WA 98188-2599
Subject: TRANSMITTAL OF 2018 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, 2018. 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.
June 24, 2019
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CITY OF TUKWILA: 2018 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, 2018
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 19,800, 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 2018.
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.
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CITY OF TUKWILA: 2018 CAFR LETTER OF TRANSMITTAL
LOCAL ECONOMY
Tukwila is a great place for business. With nearly 40,000 jobs, more people are employed in the City of
Tukwila than in 27 of the 39 counties in the State of Washington. Approximately one third of the jobs are
retail, one third are in manufacturing, and the remainder span everything from entertainment to real estate
with a heavy emphasis in aerospace.
The Boeing Company employs thousands of people in Tukwila. Further, Tukwila is home to the global
headquarters of BECU (the fourth largest credit union in the United States), Continental Mills, Odin
Brewing Company, Pop Gourmet, Red Dot Corporation, Sabey Corporation, Sahale Snacks, and Seattle
Chocolates. LeoStella, a manufacturer of small satellites, recently opened in Tukwila. Tukwila is also
home to hundreds of small businesses, many of which are owned by members of the city’s diverse
international community. The strong local economy is evident in the low unemployment rate of 3.5%,
down significantly from a 10-year high of 11.7% in 2010.
Tukwila enjoys a strong position in the Puget Sound region as well as the state of Washington. Tukwila’s
location is at the crossroads of the State’s most significant freeway network (the I-5 and I-405
interchange) and includes all modes of public transportation. Tukwila’s transit stations include the
commuter Sounder train, Sound Transit’s light rail, and the Tukwila Transit Center that all reinforce the
well-established advantages of Tukwila as an employment and retail hub. These major transportation
systems, the strategic access to Seattle, Tacoma, Sea-Tac Airport, and the population base of the south
Puget Sound region provide a natural setting for commercial and industrial activity.
Tukwila is a retail powerhouse with one of the largest local retail sales tax bases in the state of
Washington. Anchored by Westfield Southcenter, which is the largest mall in the Pacific Northwest,
Tukwila generated almost $2.4 billion dollars in taxable retail sales in 2018. The total retail sales tax
revenue amounted to $20.6 million in 2018, representing an increase of 9.6% from the $18.8 million
collected in the prior year.
LONG-TERM FINANCIAL PLANNING
The city uses its six-year financial planning model and Capital Improvement Program (CIP) as long-term
financial planning tools. These tools, along with regular review and revisions to the financial policies,
ensure the City incorporates current economic conditions and financial projections into its long-range
financial plans. In mid-2015, the City revised its financial reserve policy to increase the General Fund
reserve level from 10% to 18% and added a one-time 10% revenue reserve in the Contingency Fund.
These changes will ensure the City’s policies are in alignment with the Government Finance Officers
Association’s “Best Practices” and provide additional protection from future downturns in the economy.
The City’s diversified revenue base is supported by an assessed valuation of $6.67 billion, which is an
increase of 7.6% from 2017, allowing the City to pursue a long-term capital investment program. The
City’s 2019-2024 Capital Improvement Program anticipates approximately $224 million in general
government capital projects, with only $16.9 million of that paid by City funding sources. These
improvements are vital to the economic health of the City which must continue to efficiently move
employees, shoppers, and goods into and out of the area.
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CITY OF TUKWILA: 2018 CAFR LETTER OF TRANSMITTAL
MAJOR INITIATIVES
The City made significant investments of time and financial resources into key public projects in 2018.
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 City of Tukwila completed the first phases of construction of 42nd Avenue South, which includes new
street improvements, drainage, curbs, gutters, and driveway adjustments. It also includes new sidewalks
and bike facilities to this important residential corridor, as well as undergrounding various utility wires
along 42nd.Avenue South The project included building a new culvert at Gilliam Creek that makes the
stream crossing fish passable and improves 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 paid 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 was well underway on 53rd Avenue South, from South 137th Street to South 144th Street, to
improve pedestrian and vehicle safety, drainage, and neighborhood revitalization. The project includes
residential street improvements such as curb, gutter, sidewalk, utility undergrounding, and illumination.
This project is now anticipated to be complete in 2019, and is funded by bonds, a state Transportation
Improvement Board grant, and support from utility funds.
The City performed improvements to four major bridges in 2018. Boeing Access Road over BNRR
included a full structural and seismic retrofit and added sidewalks with funding from the federal Bridge
Replacement Advisory Committee (BRAC) with 80% funding and the remaining with City bonds. The
Frank Zepp Bridge and Grady Way Bridge were both seismically retrofitted, and the Beacon Ave South
Bridge included removing the replacing the bridge deck as well as adding a protective coating of internal
structural steel. These three bridges received 100% construction funding from federal bridge preventative
maintenance 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 3 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 2018 TVDA completed construction and opened two mixed-use apartment buildings including
193 units for low income seniors. TVDA re-started construction on the remaining two mixed-use senior
apartment buildings with 205 units scheduled to open 2020 and 2021. 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 $120 million.
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, fire stations, and replacement fire equipment and
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CITY OF TUKWILA: 2018 CAFR LETTER OF TRANSMITTAL
apparatus. The Plan also includes a new consolidated Public Works facility. Two of the projects – the
Justice Center and Fire Station 51 – have begun construction. The design phase is moving forward with
the others, and all properties have been secured. 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, 2017. This was the
31st 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 2018 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,
Vicky Carlsen, CPA
Finance Director
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CITY OF TUKWILA: 2018 CAFR
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CITY OF TUKWILA: 2018 CAFR
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CITY OF TUKWILA: 2018 CAFR
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Insurance Building, P.O. Box 40021 Olympia, Washington 98504-0021 (360) 902-0370 Pat.McCarthy@sao.wa.gov
Office of the Washington State Auditor
Pat McCarthy
INDEPENDENT AUDITOR’S REPORT ON FINANCIA L STATEMENTS
June 24, 2019
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, as of
and for the year ended December 31, 2018, 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
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
11
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, 2018, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Matters of Emphasis
As discussed in Note 1 to the financial statements, in 2018, the City adopted new accounting guidance,
Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. Our opinion is not modified with respect to this matter.
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 as 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.
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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 and individual fund financial statements
and schedules are presented for purposes of additional analysis and are not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the financial statements.
This information has been subjected to auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or
to the basic 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 forming opinions on the financial statements that
collectively comprise the City’s basic financial statements as a whole. The Introductory and Statistical
Sections are presented for purposes of additional analysis and are 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 24, 2019,
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,
Pat McCarthy
State Auditor
Olympia, WA
13
CITY OF TUKWILA: 2018 CAFR
14
CITY OF TUKWILA: 2018 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2018
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, 2018. 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, 2018, the City of Tukwila’s total assets and deferred outflows of resources exceeded
liabilities and deferred inflows of resources by $319.0 million. Of this amount, $42.9 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 $27.6 million, or 9.5%. Governmental activities increased
$7.2 million partially due to growth in property taxes to cover voted debt principal and interest. Business-type
activities increased $4.9 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 $65.0 million, a decrease of $15.6 million (-19.4%). Approximately 30.4% ($19.7 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.
15
CITY OF TUKWILA: 2018 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
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
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
no cash has changed hands.
Both the government-wide financial statements distinguish functions of the City of Tukwila that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended
to recover all or a significant portion of their costs through user fees and charges (business-type activities). The
governmental activities of the City of Tukwila include general government (finance, executive, legal, court, and
human resources), public safety (police and fire), physical environment, economic environment, transportation,
mental/physical health, and culture and recreation. The City’s business-type activities include a water, sewer, and
surface water utilities, 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. A fund is a fiscal and accounting entity with a self-balancing set of accounts used to account for specific
activities or meet certain objectives. The City of Tukwila Funds are often set up in accordance with special
regulations, restrictions or limitations. The City of Tukwila, like other state and local governments, uses fund
accounting to ensure and show compliance with finance-related legal requirements. The City’s funds 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 in the government-wide financial statements. The governmental fund statements focus on the 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 evaluate the City’s near-term
financing requirements and immediate fiscal health. Comparing the governmental fund statements with the
government-wide statements can help the reader better understand the long-term impact of the City’s current year
financing decisions.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, 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 revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains thirteen individual governmental funds. Of these, five are considered major (the general fund,
the arterial street fund, the local improvement district #33 fund, city facilities 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 in Fund Balances. The remaining governmental funds are combined into a
single column labeled “Other Governmental Funds.” Individual fund data for each of these 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. Budgets
are adopted at the fund level according to state law. A budgetary comparison schedule is presented for the general
fund in the Required Supplemental Information section of the report. Other budgetary comparison schedules are
included following the other governmental funds’ combining statements in this report.
16
CITY OF TUKWILA: 2018 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
Proprietary funds are used by governments to account for their business-type activities and use the same basis
of accounting as utilized in private industry. Business-type activities provide specific goods or services to a group
of customers that are paid for by fees charged to those customers. There is a direct relationship between the fees
paid and the services rendered.
The City has two types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used
to account for goods and services provided to citizens, while internal service funds are used to account for goods
and services provided internally to various City departments. 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: 2018 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 over $319 million at the close of the most recent fiscal year. Total net position increased by $12.1
million (3.9%) when compared to 2017.
2018 2017 2018 2017 2018 2017
Current and other assets $106,501 $120,303 $22,148 $21,385 $128,649 $141,688
Capital assets, net of
accumulated depreciation 255,589 213,212 73,800 71,220 329,389 284,432
Total assets 362,090 333,515 95,948 92,605 458,038 426,120
Deferred Outflows of Resources 3,114 2,542 260 289 3,374 2,832
Long-term liabilities 93,408 77,965 5,466 6,220 98,873 84,185
Net pension liability 6,849 9,745 1,297 1,799 8,146 11,544
Net OPEB obligation 14,694 10,488 0 0 14,694 10,488
Other liabilities 11,445 8,886 1,214 1,736 12,659 10,622
Total liabilities 126,396 107,084 7,976 9,755 134,372 116,839
Deferred Inflows of Resources 7,440 4,798 562 358 8,002 5,157
Net position
Net investment in
capital assets 201,998 199,329 68,681 65,356 270,679 264,685
Restricted 16,962 13,480 - - 16,962 13,480
Unrestricted 12,407 11,366 18,989 17,425 31,396 28,791
Total net position $231,367 $224,175 $87,669 $82,781 $319,037 $306,956
CITY OF TUKWILA'S NET POSITION
(in thousands)
Governmental Activities Business-type Activities Total
By far, the largest portion of the City’s net position ($270.7 million or 84.8%) 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 ($17.0 million or 5.3%) 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 $17.0 million is restricted in governmental activities funds. The majority is related to tourism, net pension
assets, and ongoing debt obligations. The remaining net position balance ($31.4 million, or 9.8%) 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 $12.1 million (3.9%) 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: 2018 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
2018 2017 2018 2017 2018 2017
Revenues:
Program revenues
Charges for services $14,737 $11,479 $25,184 $24,095 $39,920 $35,574
Operating grants and contributions 1,733 2,446 55 8 1,788 2,454
Capital grants and contributions 9,942 6,127 768 834 10,710 6,961
General revenues
Property taxes 18,009 17,668 - - 18,009 17,668
Sales and use taxes 20,604 18,807 - - 20,604 18,807
Natural gas use tax - - - - - -
Hotel/Motel taxes 834 737 - - 834 737
Utility taxes 3,867 4,175 - - 3,867 4,175
Interfund utility taxes 2,335 2,266 - - 2,335 2,266
Business taxes 1,247 2,698 - - 1,247 2,698
Excise taxes 5,091 5,381 - - 5,091 5,381
Investment earnings 1,508 839 - - 1,508 839
Miscellaneous 2,240 2,330 - - 2,240 2,330
Total revenues 82,146 74,952 26,006 24,937 108,152 99,888
Expenses:
General government 10,763 9,835 - - 10,763 9,835
Public safety 17,097 31,190 - - 17,097 31,190
Transportation 15,871 12,237 - - 15,871 12,237
Physical environment 2,646 2,545 - - 2,646 2,545
Culture and recreation 5,591 5,582 - - 5,591 5,582
Economic environment 4,412 4,524 - - 4,412 4,524
Interest on long-term debt 2,749 2,482 - - 2,749 2,482
Water/sewer - - 14,861 14,305 14,861 14,305
Foster golf course - - 2,092 1,990 2,092 1,990
Surface water - - 4,464 4,209 4,464 4,209
Total expenses 59,129 68,395 21,418 20,504 80,547 88,900
Increase (decrease) in net position before 23,018 6,556 4,588 4,433 27,606 10,989
transfers
Transfers (300)(300)300 300 - -
Change in net position 22,718 6,256 4,888 4,733 27,606 10,989
Net position-beginning of period 224,175 217,919 82,781 78,048 306,956 295,967
Change in accounting principle - OPEB (15,525)- - - (15,525)-
Net position-beginning balance, as restated 208,650 217,919 82,781 78,048 291,431 295,967
Net position-end of period $231,367 $224,175 $87,669 $82,781 $319,037 $306,956
CITY OF TUKWILA'S CHANGES IN NET POSITION
(in thousands)
Governmental Activities Business-type Activities Total
19
CITY OF TUKWILA: 2018 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
Governmental Activities
During the current fiscal year, net position for governmental activities increased $7.2 million (3.2%) from the prior
fiscal year for an ending balance of $231.4 million. The primary reasons for this increase are:
Property taxes increased $341 thousand (1.9%) from the prior year. In 2016, voters approved an excess
property tax levy to be used for public safety purposes. This was the second 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 projects, and purpose of the grants. In 2018, the City received 32.8% more governmental grant
revenue than 2017. Capital grants and contributions increased $3.8 million (62.3%), and operating grants
decreased $713 thousand (29.1%). The Arterial Street Fund was the recipient of $9.9 million of the total
$11.7 million in grant revenue in 2018.
REVENUES BY SOURCE – GOVERNMENTAL ACTIVITIES
Charges for services
18%
Operating grants &
contributions
2%
Capital grants &
contributions
12%
Property taxes
22%
Sales and use taxes
25%
Utility taxes
7%
Other taxes
9%
Other revenue
5%
20
CITY OF TUKWILA: 2018 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
PROGRAM REVENUES AND EXPENSES – GOVERNMENTAL ACTIVITIES
$0
$3,000,000
$6,000,000
$9,000,000
$12,000,000
$15,000,000
$18,000,000
$21,000,000
$24,000,000
$27,000,000
$30,000,000
Program revenues
Expenses
Business-Type Activities
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 $4.9 million (5.9%) to reach an ending balance of $87.7 million. The overall growth is
attributable to the following factors:
In the Water Utility, total net position increased by $1.1 million (5.4%) primarily due to a 12.3% reduction
in operating and maintenance expense and increased revenue resulting from a 5.0% commercial rate
increase effective January 1, 2018.
In the Sewer Utility, total net position increased $1.6 million (8.4%) primarily due to a 3.5% rate increase
effective January 1, 2018.
In the Surface Water Utility, operating revenues increased $198 thousand (3.2%) due to a 3.0% rate
increase.
Operating income in the enterprise funds was $3.5 million, almost matching the total operating income from
2017. Increases in operating revenue in 2018 were $925 thousand offset by increases in overall operating
expenses of $919 thousand which were primarily attributable to the Sewer Utility.
Of the $87.7 million total net position, $19.0 million (21.7%) 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: 2018 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
Water
25%
Sewer
23%
Surface water
46%
Foster golf
course
6%
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: 2018 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
COMPARISON OF TOTAL NET POSITION TO SPENDABLE NET POSITION -BUSINESS-TYPE FUNDS
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
Water Sewer Surface water Foster golf course
Spendable/Unrst Net Position
Total Net Position
The following chart depicts the revenues and expenses for business-type funds:
BUSINESS-TYPE ACTIVITY REVENUES & EXPENSES
(before Capital Contributions & Transfers)
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
Water Sewer Surface Water Foster Golf Course
Revenues
Expenses
23
CITY OF TUKWILA: 2018 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, 2018, the City’s governmental funds had combined fund balances of $65.0 million, a decrease
of $15.6 million (19.4%). The decrease is primarily due to $32.9 million of capital outlay expenditures related to the
Public Safety Plan and purchase of land for the Public Works Shops which was partially offset by $18.4 million of
bond proceeds for the Public Works Shops.
The change in fund balance for governmental funds compared to 2017 is as follows:
General Fund $ 1,545,288
Arterial Street Fund (563,012)
Local Improvement District #33 (88,003)
Public Safety Plan (21,491,957)
City Facilities 13,079,590
Other Governmental Funds (8,104,486)
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 2018, the
general fund had a fund balance of $20.6 million, with $19.7 million (95.6%) of the balance classified as unassigned
and available to meet the City’s general obligations. Unassigned fund balance increased from $19.1 million in 2017
to $19.7 million in 2018 due to an $1.7 million increase in local sales and use tax collections.
The arterial street fund decrease in fund balance is related to the planned use of reserves for capital projects. In
2018, a total of $10 million was spent on capital outlay.
The public safety plan fund balance decreased due to $19.8 million of capital outlays and $3.4 million of related
fleet expenditures.
The fund balance in the local improvement district #33 fund decreased by the difference between the special
assessment and interest earnings 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: 2018 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
GOVERNMENTAL FUNDS – FUND BALANCES
General fund
32%
Arterial street fund
4%
Local Improvement
District #33
1%
Public Safety Plan
fund
23%
City Facilities
20%
Capital project funds
15%
Special revenue funds
3%
Debt service funds
2%
The general fund revenue increase of $2.8 million is combined from the following sources:
GENERAL FUND REVENUE INCREASES/DECREASES – BY SOURCE
Taxes
$322,024
Charges for services
$244,354
Licenses and permits
$2,126,317
Intergovernmental
($53,239)Fines and forfeitures
($33,612)
Investment earnings
$188,308 Miscellaneous
$33,259
($500,000)
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
25
CITY OF TUKWILA: 2018 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 2018 at nearly $19.0 million, an increase of almost $1.6
million (8.9%) from 2017.
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 2018:
Additional grant revenue and expenditures of approximately $66,000 were appropriated for various grant-
funded recreation programs.
Increased funding for the Fire Department to cover:
o Pipeline positions - $240,000
o Firefighter deployment to assist with hurricane recovery efforts - $40,000 (100% reimbursed)
o New payroll software system (Telestaff) costs - $23,000
Additional funding related to the Public Safety Plan
o Legal costs - $250,000
o Quality Assurance - $60,000
Increase of $86,000 in Police payroll expenditures for a grant-funded, temporary Records Unit position
(90% reimbursed)
Reduction of $273,000 in Police expenditures to offset Telestaff and Public Safety Plan legal cost-related
increases
Reasons for the significant variances in the general fund between the final budget and actual results include:
A $6.1 million of land sale proceeds were budgeted to be transferred into the general fund from the urban
renewal fund, but the transactions aren’t expected to occur until 2019.
Building permit revenue was (36%) over budget. This was due to a $30.9 million increase in the value of
permits issued.
Expenditures were below budget by $6.1 million, or 8.9%. Specific examples include:
o $4.2 million in transfers out to other funds
o $2.1 million in salary and benefits savings, with Police accounting for almost half of the budget
savings
Other Business License/Permits revenue was $2 million over budget as Revenue Generating Regulatory
License (RGRL) fee revenue was reported in this category beginning in 2018 whereas it had been
previously reported as tax revenue.
26
CITY OF TUKWILA: 2018 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,
2018 totaled $ 329.4 million (net of accumulated depreciation), an increase of $46.5 million (16.4%) from 2017. This
investment in capital assets includes land, buildings, improvements, machinery and equipment, construction in
progress, utility transmission/distribution systems, roads, bridges, and infrastructure.
2018 2017 2018 2017 2018 2017
Land 36,172,319$ 36,172,319 2,346,230$ 2,396,230 38,518,549$ 38,568,549
Buildings 10,322,648 11,115,434 7,563,645 7,935,440 17,886,293 19,050,874
Other Improvements 9,103,496 9,835,029 56,162,493 58,046,974 65,265,989 67,882,003
Machinery and Equipment 6,791,675 7,264,337 338,911 378,464 7,130,586 7,642,801
Infrastructure 135,294,018 139,281,317 - - 135,294,018 139,281,317
Construction in Progress 57,904,804 9,543,935 7,388,641 2,462,779 65,293,445 12,006,713
Total 255,588,960$ 213,212,371 73,799,921$ 71,219,887 $329,388,881 284,432,258
Governmental Activities Business-Type Activities Total
CITY OF TUKWILA'S CAPITAL ASSETS (net of depreciation)
More detailed information on capital assets is provided in Note 6 to the financial statements.
General capital outlay purchases added $80,033 in machinery and equipment and included various technology
purchases in the amount of $52,498, Police and Fire equipment totaling $15,662 and new A/V equipment at TCC
in the amount of $11,873.
Many of the projects in the Arterial Street Fund continue to be in the construction phase adding $10 million in
construction-in-progress for the period. The major arterial street fund activities are comprised of the following:
Boeing Access Road Bridge over BNRR Major Rehab, $7.5 million
Strander Blvd Extension Phase III, $1.0 million
TUC Pedestrian/Bicycle Bridge, $821 thousand
S 144th St Phase II (42nd Ave S – TIB), $249 thousand
Baker Blvd Non-Motorized Improvements, $179 thousand
Beacon Ave S Bridge Major Maintenance, $197 thousand
Major construction projects completed in 2018 added $2.4 million to capitalized infrastructure for the Arterial Street
Fund which includes $1.4 million in additional costs for the TUC Pedestrian/Bicycle Bridge, S 144th St Phase II (42nd
Ave S – TIB) and Baker Blvd Non-Motorized Improvements. The Beacon Ave S Bridge major maintenance work,
which was significantly completed in 2018 and including prior costs, was capitalized for $1.1 million.
Ongoing Residential Street Fund construction projects added $4.6 million to construction-in-progress and include
the following:
42nd Ave S – Phase III, $3.1 million
53rd Ave S, $1.5 million
The Public Safety Plan Fund for the Fire Stations and Justice Center added $19.8 million to construction in progress
for 2018, primarily for land acquisition costs and design and engineering work.
The Public Works Shop Fund added $13.0 million of construction in progress during 2018, this consisted primarily
of land acquisition costs and design work.
27
CITY OF TUKWILA: 2018 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
Business-type activities consisted of $4.9 million in added construction in progress work for the year. Major projects
in the utility funds are comprised of the following:
53rd Ave S, $1.9 million
40 – 42nd Ave S, $2.2 million
2018 Small Drainage, $608 thousand
Other utility construction projects, $200 thousand
LONG-TERM DEBT
The City had total long-term obligations outstanding of $95.0 million at the end of the current fiscal year. Of this
amount, $73.9 million is general obligation bonds which is backed by the full faith and credit of the City, $1.3 million
is revenue bonds for the water/sewer and surface water utilities, $3.9 million in public works trust fund loans, $5.7
million due to other governments, $5.9 million premium on bonds, and the remaining $4.3 million is special
assessment bonds which were issued to improve access to the City’s urban center.
The City issued $20.2 million (including premium) in general obligation debt in 2018 to purchase land for the Public
Works Shops for consolidation of the Public Works function. This new debt issuance, combined with redeemed
debt, resulted in an overall general obligation bond increase of $15.2 million.
The City currently maintains a rating of “AA” with Standard and Poor’s and Fitch’s Investor Service, and “Aa3” with
Moody’s for its general obligation debt.
The following schedule summarizes the City’s long-term debt:
2018 2017 2018 2017 2018 2017
General obligation bonds 73,972,309$ 59,214,505$ -$ -$ 73,972,309$ 59,214,505$
Revenue bonds - - 1,304,763 1,454,422 1,304,763 1,454,422
Premium on bonds issued 5,923,595 4,804,720 - - 5,923,595 4,804,720
Special assessment bonds 4,320,000 4,805,000 - - 4,320,000 4,805,000
Public Works Trust Fund Loans - - 3,848,055 4,447,523 3,848,055 4,447,523
Due to other governments 5,729,600 5,914,400 - - 5,729,600 5,914,400
89,945,504$ 74,738,625$ 5,152,818$ 5,901,945$ 95,098,322$ 80,640,570$
Governmental Activities Business-type Activities Total
More detailed information on long-term debt, including debt limitations, is provided in Note 10 to the financial
statements.
28
CITY OF TUKWILA: 2018 CAFR MANAGEMENT’S DISCUSSION AND ANALYSIS
ECONOMIC FACTORS AND THE UPCOMING BIENNIAL BUDGET
Tukwila’s economy generally follows the economic cycles of the surrounding region. However, the economic down
periods in the cycles have been less severe for Tukwila than for other municipalities in the region due to the relatively
stable nature of Tukwila’s economy. Over the past year, the local economy improved slightly over the previous year.
Sales tax, the City’s largest revenue source, reversed a slightly declining trend and increased $1.8 million (9.6%)
from 2017’s total. Also, the City’s assessed value increased to $6.7 billion; 8.1% higher than 2017.
A significant focus of the 2019-2020 biennial budget was the Public Safety Plan. In 2016, voters approved
construction of a new Justice Center, three new fire stations, and fire equipment/apparatus purchases funded by
the proceeds from issuing $77 million in bonds. The City has adjusted the plans (building two new fire stations
instead of three) to ensure affordability and will issue approximately $40.7 million of voter-approved debt and $25
million of non-voted debt in 2019. Funding also includes other dedicated revenue sources including real estate
excise taxes, impact fees, and proceeds from land sales. Construction is scheduled to begin in 2019.
Though the economy continues to improve, the City still faces some challenges entering the 2019-2020 biennium.
Federal, state, and county governments continue to devolve services down to cities and there is no evidence the
trajectory will slow or change anytime soon. Additionally, the state will be eventually phasing out streamlined sales
tax mitigation payments which total approximately $1.1 million annually. These payments were originally ending in
2019 but have recently been extended by the state legislature through at least 2021.
It is with these challenges in mind that the City vigilantly strives to monitor and control its expenses in order to live
within the City’s means.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Tukwila’s finances for readers with an
interest in the City’s finances. Questions concerning this report, or requests for additional information, may be
addressed to the Finance Director, City of Tukwila, 6200 Southcenter Blvd, Tukwila, WA 98188-2544.
29
Governmental Business-Type
Activities Activities Total
ASSETS:
Cash and cash equivalents 28,262,236$ 9,772,074$ 38,034,310$
Investments 7,189,065 6,991,724 14,180,789
Taxes receivable 6,156,734 1,003 6,157,737
Other receivables 1,624,701 1,566,208 3,190,908
Due from other governmental units 1,893,564 345,701 2,239,265
Inventory of materials and supplies 25,831 47,361 73,193
Restricted cash and cash equivalents 18,241,197 101,243 18,342,439
Restricted investments 10,442,289 - 10,442,289
Notes receivable 6,194,209 203,295 6,397,504
Lease deposit - 3,119,513 3,119,513
Real property held for resale 5,293,000 5,293,000
Investment in joint ventures 9,711,678 - 9,711,678
Non-depreciable capital assets 94,077,123 9,734,872 103,811,994
Depreciable capital assets (net of accumulated
depreciation)161,511,837 64,065,049 225,576,886
Net Pension asset 11,466,319 - 11,466,319
Total Assets 362,089,782 95,948,043 458,037,826
DEFERRED OUTFLOWS OF RESOURCES:
Deferred loss on refunding 191,034 33,593 224,627
Deferred outflows related to OPEB 369,806 - 369,806
Deferred outflows related to pensions 2,553,169 226,084 2,779,253
Total Deferred Outflows Of Resources 3,114,009 259,677 3,373,686
LIABILITIES:
Accounts payable 3,797,623 907,267 4,704,890
Accrued wages and benefits payable 1,578,815 130,401 1,709,215
Accrued interest payable 494,154 13,735 507,889
Unearned revenue 143,201 26,584 169,784
Other liabilities 2,311,440 136,031 2,447,472
Lease payable 3,119,513 - 3,119,513
Bonds and other debt payable
Due within one year 4,464,321 768,428 5,232,750
Due in more than one year 88,943,214 4,697,212 93,640,426
Net pension liability 6,849,477 1,296,814 8,146,291
Total other post employment obligation 14,694,242 - 14,694,242
Total Liabilities 126,396,000 7,976,472 134,372,472
DEFERRED INFLOWS OF RESOURCES:
Deferred inflows related to pensions 6,451,888 561,771 7,013,659
Business taxes received in advance 988,415 - 988,415
Total Deferred Inflows Of Resources 7,440,303 561,771 8,002,074
NET POSITION:
Net investment in capital assets 201,997,812 68,680,695 270,678,507
Restricted for:
Debt service 1,460,022 - 1,460,022
Tourism promotion 1,617,625 - 1,617,625
Arterial street improvements 309,955 - 309,955
Drug investigation and enforcement 233,688 - 233,688
Land and park acquisition, development 757,632 - 757,632
Pension Asset 11,466,319 11,466,319
Public safety facilities 167,136 - 167,136
City facilities 950,000 - 950,000
Unrestricted net position 12,407,297 18,988,782 31,396,080
Total Net Position 231,367,488$ 87,669,477$ 319,036,965$
The notes to the financial statements are an integral part of this statement.
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET POSITION
DECEMBER 31, 2018
30
--Expenses--
FUNCTIONS / PROGRAMS:
PRIMARY GOVERNMENT
Governmental activities
General Government 10,763,025$ 5,989,077$ 112,983$ -$ (4,660,965)$ -$ (4,660,964)$
Public safety 17,097,372 1,970,331 447,432 - (14,679,609) - (14,679,609)
Transportation 15,871,018 2,261,577 859,168 9,938,238 (2,812,036) - (2,812,036)
Physical environment 2,645,577 - - - (2,645,577) - (2,645,577)
Culture and recreation 5,591,213 1,415,827 49,667 3,985 (4,121,734) - (4,121,734)
Economic environment 4,411,719 3,099,692 264,059 - (1,047,968) - (1,047,968)
Interest on long-term debt 2,748,854 - - - (2,748,854) - (2,748,854)
Total Governmental Activities 59,128,779 14,736,504 1,733,308 9,942,224 (32,716,743) - (32,716,742)
BUSINESS-TYPE ACTIVITIES:
Water 6,066,381 7,064,582 - 109,367 - 1,107,569 1,107,569
Sewer 8,795,067 10,138,576 - 243,356 - 1,586,865 1,586,865
Surface water 4,464,319 6,417,368 54,697 414,780 - 2,422,527 2,422,527
Foster golf course 2,091,981 1,563,320 - - - (528,662) (528,662)
Total Business-Type Activities 21,417,748 25,183,845 54,697 767,504 - 4,588,299 4,588,299
Total Primary Government 80,546,527$ 39,920,349$ 1,788,005$ 10,709,728$ (32,716,743)$ 4,588,299$ (28,128,444)$
General Revenues:
Taxes
Property taxes 18,008,738$ -$ 18,008,738$
Retail sales and use taxes 20,603,617 - 20,603,617
Hotel/motel taxes 833,990 - 833,990
Utility taxes 3,866,859 - 3,866,859
Interfund utility taxes 2,334,522 - 2,334,522
Business taxes 1,246,798 - 1,246,798
Excise Taxes 5,091,447 - 5,091,447
Unrestricted investment earning 1,508,334 - 1,508,334
Miscellaneous 2,240,045 - 2,240,045
Total General Revenues 55,734,351 - 55,734,351
Excess of revenues over expenses 23,017,608 4,588,299 27,605,907
before transfers
Transfers (300,000) 300,000 -
Change in net position 22,717,608 4,888,299 27,605,907
Net position - beginning 224,175,306 82,781,179 306,956,485
Change in accounting principle - OPEB (15,525,426) - (15,525,426)
Net position-beginning restated 208,649,880 82,781,179 291,431,059
Net position-ending 231,367,488$ 87,669,477$ 319,036,965$
The notes to the financial statements are an integral part of this statement.
CITY OF TUKWILA, WASHINGTON
STATEMENT OF ACTIVITIES
Operating
Grants and
Contributions
Capital Grants
and
Contributions
FOR THE YEAR ENDED DECEMBER 31, 2018
--Net (Expense) Revenue and Changes in Net Position---------- Program revenues --------
Governmental
Activities
Charges
For Services
Business-Type
Activities
Total
31
Local Public Other Total
General Arterial Improvement Safety Governmental Governmental
Fund Street District #33 Plan Funds Funds
ASSETS:
Cash and cash equivalents 12,835,490$ 1,189,667$ 664,339$ 2,059,940$ 189,598$ 6,198,052$ 23,137,086$
Investments 4,355,417 - -36,063 - 535,329 4,926,809
Taxes receivable 5,894,040 61,909 - 1,107 - 199,678 6,156,734
Other receivables 493,765 124,088 - 57,029 - 884,100 1,558,981
Due from other governmental units 507,461 1,362,124 - -- 23,979 1,893,564
Restricted assets:
Cash and cash equivalents 8,406 914,152 - 4,003,275 12,936,165 379,199 18,241,197
Investments - - - 10,442,289 - - 10,442,289
Special assessment receivable - - 3,899,511 - - - 3,899,511
Notes receivable 717,629 349,953 - 950,000 - 277,116 2,294,698
Real property held for resale - - - - - 5,293,000 5,293,000
Total Assets 24,812,208$ 4,001,893$ 4,563,850$ 17,549,703$ 13,125,763$ 13,790,454$ 77,843,870$
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES:
Liabilities:
Accounts payable 1,000,606 668,903 - 1,352,918 46,172 675,560 3,744,160
Accrued wages & benefits 1,541,283 14,210 - - - 6,949 1,562,442
Unearned revenue 143,201 - - - - - 143,201
Other liabilities 218,762 95,402 - 13,822 - 296,204 624,190
Total Liabilities 2,903,852 778,515 - 1,366,740 46,172 978,713 6,073,993
Deferred inflow of resources
Unavailable revenue-special assessment - - 3,899,511 - - - 3,899,511
Business taxes received in advance 988,415 - - - - - 988,415
Unavailable revenue-property tax, other 301,929 - - - - 33,658 335,587
Unavailable revenue-developer agreement - 349,953 - 950,000 - 277,116 1,577,069
Total Deferred Inflow Of Resources 1,290,344 349,953 3,899,511 950,000 - 310,774 6,800,582
Fund balance:
Nonspendable 718,190 - - - - - 718,190
Restricted:- 914,152 664,339 14,445,564 12,936,165 3,571,764 32,531,984
Hotel/motel tax - - - - - 1,617,625 1,617,625
Residential street improvements - - - - - - -
Arterial street capital improvements - 914,152 - - - - 914,152
Drug investigation and enforcement - - - - - 233,688 233,688
Park and land acquisition/development - - - - - 757,632 757,632
Public safety facilities - - - 14,445,564 - - 14,445,564
Fire improvements - - - - - 167,136 167,136
City facilities - - - - 12,936,165 - 12,936,165
Debt service guraranty fund - - - - - 700,568 700,568
Debt service public safety plan - - - - - 95,114 95,114
Local Improvement District - - 664,339 - - - 664,339
Assigned:
Residential street improvements - - - - - 115,544 115,544
Arterial street improvements - 1,959,273 - - - - 1,959,273
Land & park acquisition - - - - - 107,315 107,315
Facilities & urban renewal - - - - - 7,514,419 7,514,419
General government improvements - - - - - 477,761 477,761
Public safety facilities - - - 787,399 - - 787,399
City facilities - - - - 143,425 - 143,425
1% Arts - - - - - 268,321 268,321
Technology 181,078 - - - - - 181,078
Debt service - - - - - 445,843 445,843
Unassigned 19,718,745 - - - - 19,718,745
Total Fund Balance 20,618,013 2,873,425 664,339 15,232,963 13,079,590 12,500,966 64,969,296
Total Liabilities, Deferred Inflows And
Fund Balances 24,812,208$ 4,001,893$ 4,563,850$ 17,549,703$ 13,125,763$ 13,790,454$ 77,843,870$
The notes to the financial statements are an integral part of this statement.
CITY OF TUKWILA, WASHINGTON
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2018
City
Facilities
32
Total governmental fund balances as reported on this statement 64,969,296$
Non-depreciable assets 90,784,799
Depreciable assets (net)156,454,893
Internal service fund assets 5,056,944 252,296,636
The net pension asset is not an available resource and, therefore, is not reported in the funds.11,466,319
Deferred outflow of pension costs 2,553,169
Deferred outflow of OPEB 369,806
Deferred inflow of pension contributions (6,451,888) (3,528,913)
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. 9,711,678
Revenue that was not collected within the recognition period and therefore was not available to pay current liabilities:
Unavailable revenue reported for property tax and other receivables 335,587
Unavailable revenue reported for developer agreement 1,577,069
Unavailable revenue reported for special assessment 3,899,511 5,812,167
Some liabilities are not due and payable in the current period and therefore are not reported in the funds.
Long term liabilities due within one year (4,464,321)
Long term liabilities due in more than one year (95,620,230)
Lease deposits payable in more than one year (3,119,513)
Unfunded other post employment benefits (14,694,242)
Accrued interest payable (494,154)
Deferred outflow on refunding 191,034 (118,201,426)
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. 8,841,730
Net Position Of Government Activities As Reported On The Statement Of Net Position 231,367,488$
The notes to the financial statements are an integral part of this statement.
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
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds.
Funds
CITY OF TUKWILA, WASHINGTON
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2018
Total
Governmental
33
Local Public Other Total
General Arterial Improvement Safety City Governmental Governmental
Fund Street District #33 Plan Facilities Funds Funds
REVENUES:
Taxes 46,896,613$ 810,885$ -$ 1,107.18$ -$ 4,279,986$ 51,988,591$
Licenses and permits 4,875,454 - - - - - 4,875,454
Intergovernmental 4,637,018 10,025,425 - - - 1,256,934 15,919,377
Charges for services 3,290,960 1,123,895 - 328,130 - 2,058,734 6,801,719
Fines and forfeitures 291,604 - - - - - 291,604
Investment earnings 419,092 56,916 220,875 490,316 143,426 207,910 1,538,534
Special assessments - - 415,660 - - - 415,660
Miscellaneous 193,568 38,400 49 - - 175,134 407,151
Total Revenues 60,604,309 12,055,521 636,584 819,554 143,426 7,978,699 82,238,092
EXPENDITURES:
Current:
General government 10,365,988 - - - - 125,443 10,491,432
Economic environment 4,308,130 - - - - 378,398 4,686,528
Physical environment 1,805,457 - - - - - 1,805,457
Public safety 30,758,088 - - 3,373,884 171,141 28,406 34,331,520
Culture and recreation 4,620,127 - - - - 232,012 4,852,138
Transportation 3,098,042 2,599,557 - - - 4,318,339 10,015,938
Debt service:
Principal - - 485,000 - - 3,607,196 4,092,196
Interest - - 239,588 - 16,977 2,720,958 2,977,523
Capital outlay 80,033 10,018,976 - 19,837,626 13,049,753 4,615,102 47,601,490
Total Expenditures 55,035,865 12,618,533 724,588 23,211,511 13,237,871 16,025,853 120,854,221
Excess (deficiency)of revenues
Over (Under) Expenditures 5,568,444 (563,012) (88,003) (22,391,957) (13,094,446) (8,047,155) (38,616,129)
OTHER FINANCING SOURCES (USES):
Transfers in - - - 900,000 3,000,000 3,842,669 7,742,669
Prepaid leases - - - - 3,119,513 - 3,119,513
Transfers out (4,023,156) - - - (119,513) (3,900,000) (8,042,669)
General obligation bonds issued - - - - 18,365,000 - 18,365,000
Bond premium - - - - 1,809,036 - 1,809,036
Total Other Financing Sources And
Uses (4,023,156) - - 900,000 26,174,036 (57,331) 22,993,549
Net change in fund balances 1,545,288 (563,012) (88,003) (21,491,957) 13,079,590 (8,104,486) (15,622,580)
Fund balances - beginning 19,072,725 3,436,437 752,342 36,724,920 - 20,605,452 80,591,877
Fund Balances - Ending 20,618,013$ 2,873,425$ 664,339$ 15,232,963$ 13,079,590$ 12,500,966$ 64,969,296$
The notes to the financial statements are an integral part of this statement.
CITY OF TUKWILA, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2018
34
Net change in fund balances per the Statement of Revenues, Expenditures, and Changes in Fund Balances (15,622,580)$
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 47,601,490
Adjustments to construction in progress (19,163)
Depreciation Expense (excludes internal service fund depreciation which is reflected in internal
service fund change in net position listed below)(8,430,202)
Excess of Capital Outlay Over Depreciation Expense 39,152,125
The net effect of various transactions involving the City's pension plans are:
Reduction in pension liability and expense 3,177,244
Increase in pension contribution revenue 539,330
Reduction in the Fireman's Pension liability and expense 82,241 3,798,815
The City has equity interests in two joint ventures. The equity interests for the provision of governmental 399,873
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 4,092,196
Amortization expense 333,322 4,425,517
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 (1,809,036)
General Obligation Bonds issued (18,180,200)
Internal service funds are used by management to charge the costs of certain activities to individual funds.
The change in net position of internal service funds is reported with governmental activities.2,782,748
Because some revenues will not be collected for several months after the City's fiscal year ends,
they are not considered "available" revenues in the government funds. Changes this year are for:
Miscellaneous receivables (15,521)
Developer agreements (382,036)
Property taxes (2,620)
Special assessment (415,660)(815,837)
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 (38,039)
Amortization of deferred outflow on bond refunding (66,613)
Increase in compensated absences 121,474
Long-term leases (3,119,513)
Change in OPEB Liability 11,688,873
Total additional expense (increase) decrease 8,586,181
Change In Net Position On The Statement Of Activities 22,717,608$
The notes to the financial statements are an integral part of this statement.
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, 2018
35
Governmental
Foster Surface Total Activities
Water Sewer Golf Water Enterprise Internal
Utility Utility Course Utility Funds Service Funds
Current assets:
Cash and cash equivalents 3,101,912$ 4,278,019$ 598,009$ 1,794,134$ 9,772,074$ 5,125,149$
Investments 2,203,168 4,788,556 - - 6,991,724 2,262,256
Taxes receivable - - 1,003 - 1,003 -
RecTaxOther receivables 443,098 762,016 2,929 358,165 1,566,208 65,719
Due from other governmental units - - - 345,701 345,701 -
Inventory of materials and supplies - - 47,361 - 47,361 25,830
Current assets restricted -
Cash and cash equivalents 25,825 - 75,418 - 101,243 -
Total Current Assets 5,774,003 9,828,591 724,720 2,498,000 18,825,314 7,478,954
Noncurrent assets:
Notes receivable - 203,295 - - 203,295 -
Capital assets
Land 87,347 69,525 1,609,575 579,783 2,346,230 -
Building 1,416,567 3,364,962 6,627,496 1,875,395 13,284,419 -
Other improvements 24,576,187 16,635,380 3,559,992 49,044,818 93,816,377 -
Machinery and equipment 801,031 1,249,131 110,829 56,139 2,217,130 16,173,201
Less: accumulated depreciation (11,965,254) (9,008,533) (6,713,651) (17,565,439) (45,252,877) (11,116,257)
Construction in progress 1,352,672 435,173 - 5,600,797 7,388,641 3,292,324
Total capital assets (net of
accumulated depreciation)16,268,548 12,745,638 5,194,241 39,591,494 73,799,921 8,349,268
Lease deposit 940,634 622,707 - 1,556,171 3,119,513 -
Total Noncurrent Assets 17,209,183 13,571,641 5,194,241 41,147,665 77,122,729 8,349,268
Total Assets 22,983,186 23,400,231 5,918,961 43,645,665 95,948,043 15,828,222
Deferred Outflows of Resources
RecTax Deferred pension 49,547 33,677 58,790 84,070 226,084 30,066
RecTax Deferred Loss on Refunding 8,734 20,828 - 4,031 33,593 -
Total Deferred Outflows Of Resources 58,281 54,505 58,790 88,101 259,677 30,066
LIABILITIES:
Current Liabilities
Accounts payable 151,555 107,416 1,014 647,282 907,267 53,464
Accrued wages and benefits 26,272 17,707 33,635 52,786 130,401 16,373
Accrued interest payable 2,181 6,623 - 4,931 13,735 -
Unearned revenue 9,386 - - 17,197 26,584 -
Other current liabilities 20,850 22,863 70,487 21,831 136,031 674,900
Due to other governments 95,080 233,436 - 270,953 599,468 -
Compensated absences - - 3,008 15,217 18,224 -
Revenue bond payable 39,191 93,456 - 18,088 150,736 -
Total Current Liabilities 344,516 481,502 108,144 1,048,285 1,982,446 744,736
Noncurrent liabilities:
Reserve for unreported claims - - - - - 1,012,350
Revenue bonds payable 300,047 715,497 - 138,483 1,154,027 -
Net pension liability 284,200 193,170 337,217 482,227 1,296,814 172,461
Compensated absences 88,610 45,050 68,494 92,444 294,597 -
Due to other governments 432,036 1,496,579 - 1,319,973 3,248,587 -
Total Noncurrent Liabilities 1,104,893 2,450,295 405,711 2,033,127 5,994,026 1,184,811
Total Liabilities 1,449,409 2,931,797 513,854 3,081,411 7,976,472 1,929,547
Deferred Inflows of Resources
RecTax Deferred inflow pension earnings 123,359 83,361 145,827 209,224 561,771 76,011
Total Deferred Inflows Of Resources 123,359 83,361 145,827 209,224 561,771 76,011
NET POSITION:
Net investment in capital assets 15,410,928 10,227,498 5,194,241 37,848,028 68,680,695 8,349,269
Unrestricted 6,057,771 10,212,080 123,829 2,595,103 18,988,782 5,503,461
Total Net Position 21,468,699$ 20,439,578$ 5,318,069$ 40,443,131$ 87,669,477$ 13,852,730$
The notes to the financial statements are an integral part of this statement.
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2018
BASIC FINANCIAL STATEMENTS CITY OF TUKWILA: 2018 CAFR
36
Governmental
Foster Surface Total Activities
Water Sewer Golf Water Enterprise Internal
Utility Utility Course Utility Funds Service Funds
OPERATING REVENUES:
Charges for services 6,974,703$ 9,991,886$ 1,438,751$ 6,343,895$ 24,749,234$ 11,824,159$
Other operating revenue 957 - 115,590 2,103 118,650 156,047
Total Operating Revenues 6,975,660 9,991,886 1,554,340 6,345,998 24,867,884 11,980,205
OPERATING EXPENSES:
Operating & maintenance 3,784,048 6,644,961 1,523,546 1,991,634 13,944,189 7,736,660
Administrative and general 722,979 579,481 185,017 703,209 2,190,685 468,751
Taxes 1,007,158 1,151,941 70,254 711,529 2,940,882 -
Depreciation and amortization 539,480 385,998 313,164 1,044,865 2,283,507 1,110,745
Total Operating Expenses 6,053,665 8,762,380 2,091,981 4,451,236 21,359,263 9,316,156
Operating Income (Loss)921,995 1,229,505 (537,641) 1,894,761 3,508,621 2,664,049
NON-OPERATING REVENUE (EXPENSE):
Investment earnings 101,244 146,690 8,979 71,370 328,283 47,670
Interest expense (12,716) (32,687) - (13,082) (58,485) -
Gain (loss) on disposal of capital assets (12,322) - - - (12,322) 71,029
Other non-operating revenue - - - 54,697 54,697 -
Total Non-Operating Revenue (Expense)76,206 114,003 8,979 112,985 312,173 118,699
Income (Loss) Before Contributions & Transfers 998,201 1,343,508 (528,662) 2,007,746 3,820,794 2,782,748
Capital contributions 109,367 243,356 - 414,780 767,504 -
Transfers in - - 300,000 - 300,000 -
Change in Net Position 1,107,569 1,586,865 (228,662) 2,422,527 4,888,299 2,782,748
Total net position - beginning 20,361,130 18,852,713 5,546,731 38,020,604 82,781,178 11,069,982
Total Net Position - ending 21,468,698$ 20,439,578$ 5,318,069$ 40,443,131$ 87,669,477$ 13,852,730$
The notes to the financial statements are an integral part of this statement.
CITY OF TUKWILA, WASHINGTON
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2018
37
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 7,086,563$ 10,297,659$ 1,554,518$ 6,572,233$ 25,510,973$ 11,983,135$
Cash paid to supplier (3,384,310) (6,109,473) (569,647) (1,217,712) (11,281,142) (1,604,345)
Cash paid for taxes (1,007,158) (1,151,941) (70,254) (711,529) (2,940,882) (2)
Cash paid to or on behalf of employees (851,870) (597,888) (1,010,222) (1,354,324) (3,814,304) (6,868,634)
Interfund activity - payments to other funds (635,904) (491,688) (185,017) (542,639) (1,855,248) (329,368)
Other cash received (paid)957 - 9,536 2,103 12,596 -
Net Cash Provided (Used)-
By Operating Activities 1,208,279 1,946,669 (271,087) 2,748,131 5,631,992 3,180,786
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Operating grant received - - - 54,697 54,697 -
Transfers in - - 300,000 - 300,000 -
Net Cash Provided (Used) By Non-
Capital Financing Activities - - 300,000 54,697 354,697 -
Purchase of capital assets (1,159,305) (133,865) - (3,582,693) (4,875,863) (4,374,323)
Contributed capital 107,867 243,356 - (92,140) 259,084 -
Capital grants 1,500 - - 169,654 171,154 -
Principal payment on debt (133,991) (326,224) - (288,912) (749,127) -
Interest payment on debt (13,063) (30,274) - (13,903) (57,240) -
Proceeds from sale of equipment - - - -- 110,143
Lease deposit paid (940,634) (622,707) - (1,556,171) (3,119,513) -
Net Cash Provided (used) for Capital -
And Related Financing Activities (2,137,626) (869,715) - (5,364,164) (8,371,505) (4,264,180)
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from sale of investments - - - - - 880,667
Purchase of investments - (500,000) - - (500,000) -
Interest received 59,888 139,848 8,979 71,370 280,086 113,394
Net Cash Provided (Used) In Investing Activities 59,888 (360,152) 8,979 71,370 (219,914) 994,061
Net increase (decrease) in cash and
Cash equivalents (869,459) 716,803 37,892 (2,489,966) (2,604,730) (89,334)
Cash and cash equivalents-beginning of year 3,997,195 3,561,217 635,535 4,284,100 12,478,047 5,214,483
Cash And Cash Equivalents- end of year 3,127,737$ 4,278,019$ 673,427$ 1,794,134$ 9,873,317$ 5,125,149$
Cash at end of year consists of:
Cash and cash equivalents 3,101,912 4,278,019 598,009 1,794,134 9,772,074 5,125,149$
Restricted cash-customer deposits 25,825 - 75,418 - 101,243 -
Total Cash and cash equivalents 3,127,737$ 4,278,019$ 673,427$ 1,794,134$ 9,873,317$ 5,125,149$
The notes to the financial statements are an integral part of this statement.
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2018
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
38
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)921,995$ 1,229,505$ (537,641)$ 1,894,761$ 3,508,621$ 2,664,049$
Adjustments to reconcile operating income to net cash
Provided (used) by operating activities:
Depreciation 539,480 385,998 313,164 1,044,865 2,283,507 1,110,745
Asset (increase) decrease:
Accounts receivable 110,945 305,773 (3,085) 228,338 641,972 2,929
Inventory and other - - 6,518 - 6,518 (7,070)
Deferred outflow of resources (increase) decrease 10,811 1,936 4,931 7,034 24,712 8,888
Liability increases (decreases):
Accounts payable (221,577) 52,136 (1,121) (350,634) (521,196) (502,842)
Other liabilities 915 (4,766) 12,798 21,731 30,678 -
Wages & benefits payable (43,957) 5,901 (1,664) (5,163) (44,884) (9,533)
Deferred inflow of resources increase (decrease)(110,333) (29,815) (64,987) (92,800) (297,935) (86,381)
Total Adjustments 286,284 717,163 266,554 853,370 2,123,371 516,737
-
Net Cash Provided (Used) By Operating Activities 1,208,279$ 1,946,669$ (271,087)$ 2,748,131$ 5,631,992$ 3,180,786$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital assets acquired by contributed capital -$ -$ -$ 337,267$ 337,267$ -$
Increase (decrease) in fair value of investment - (30,773) - - (30,773) 61,133
Total Non Cash investing, Capital and
Financing Activities -$ (30,773)$ -$ 337,267$ 306,493$ 61,133$
The notes to the financial statements are an integral part of this statement.
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2018
CITY OF TUKWILA, WASHINGTON
39
Firemen's
Pension Agency
Trust Fund Fund
ASSETS:
Cash and cash equivalents 943,482$ 249,099$
Investments 516,528 -
Customer accounts - 4,534
Interest receivable 1,063 -
Total Assets 1,461,074 253,633
LIABILITIES:
Accounts and other payables - 253,633
Total Liabilities - 253,633
NET POSITION:1,461,074 -
Net Position Restricted for Pensions 1,461,074$ -$
The notes to the financial statements are an integral part of this statement.
CITY OF TUKWILA, WASHINGTON
STATEMENT OF FIDUCIARY NET POSITON
FIDUCIARY FUND
DECEMBER 31, 2018
40
Firemen's
Pension
Trust Fund
ADDITIONS:
Contributions from nonemployer entities:
Fire Insurance Premiums Transferred in 71,286$
Investment earnings/(loss)27,769
Total Additions 99,055
DEDUCTIONS:
Benefit payments 80,468$
Total Deductions 80,468
Change In Net Position 18,587
Net position - beginning 1,442,486
Net position - ending 1,461,074$
The notes to the financial statements are an integral part of this statement.
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUND
FOR THE YEAR ENDED DECEMBER 31, 2018
41
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2018
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.
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CITY OF TUKWILA: 2018 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 City Facilities fund was established in 2016 to account for costs of building a new public works shop
facility. The public works shop facility is part of the City’s public safety plan but is not included in the voter-
approved bonds.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
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.
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 Firefighters’ Pension Fund accounts for a single-employer defined benefit system
established under Washington State law to provide pension benefits for eligible firefighters. Although this pension
44
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
plan has subsequently been replaced by the Washington State Law Enforcement Officers’ and Fire Fighters’
Pension System, firefighters hired prior to March 1, 1970 continue to be eligible for benefits under the provisions of
the earlier law. Revenues received by the fund include proceeds of a state-imposed tax on fire insurance premiums.
The agency fund is custodial in nature (assets equal liabilities) and does not involve a measurement of results of
operations. The fund accounts for assets held by the City as an agent for joint, intergovernmental operations through
interlocal agreements. Fiduciary funds are excluded from the government-wide financial statements.
D. Measurement Focus
Government-wide Financial Statements
The government-wide financial statements are prepared using the economic resources measurement focus. All
assets, deferred outflow of resources, liabilities, 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 a flow of current financial resources measurement focus. With this
measurement focus, only current assets, current liabilities, and deferred inflow of resources generally are included
on the balance sheet. The statement of revenues, expenditures and changes in fund balances reports on the
sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of
current financial resources. This approach differs from the manner in which the government activities of the
government-wide financial statements are prepared. Governmental fund financial statements therefore include a
reconciliation with brief explanations to better identify the relationship between the government-wide statements
and statements for governmental funds.
Like the government-wide statements, all proprietary and internal service fund types are accounted for on a flow of
economic resources measurement focus. All assets and all liabilities associated with the operation of these funds
are included on the statement of net position. The statement of changes in activities presents increases (i.e.,
revenues) and decreases (i.e., expenses) in net total position. The statement of cash flows provides information
about how the City finances and meets the cash flow needs of its proprietary activities.
Fiduciary funds are reported using the economic resources measurement focus.
E. Basis of Accounting
Basis of accounting refers to the recognition of revenues and expenditures or expenses in the accounts and
reporting them in the financial statements. Government-wide financial statements are prepared using the accrual
basis of accounting. Governmental funds use the modified accrual basis of accounting. Proprietary and fiduciary
funds use the accrual basis of accounting.
Revenues – Exchange and Non-Exchange Transactions
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is
recorded on the accrual basis when the exchange takes place. The modified accrual basis of accounting is followed
in all governmental funds of the City. Under the modified accrual basis of accounting, revenues are recorded when
susceptible to accrual, i.e., both measurable and available. “Measurable” means the amount of the transaction can
be determined and “available” means collectible within the current period or soon enough thereafter to pay current
liabilities. For the City, available means expected to be received within sixty (60) days of year-end. The primary
accrued revenues that meet these criteria are sales, real estate, and utility taxes.
Non-exchange transactions, in which the City receives value without directly giving equal value in return, include
property taxes, sales and use taxes, admission taxes, gambling taxes, utility taxes, hotel/motel taxes, grants,
entitlements, and donations. These revenues are on an accrual basis. On the accrual basis, the revenue is
45
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
recognized in the period in which the income is earned. Revenue from property taxes is recognized in the fiscal
year for which the taxes are levied. (See Note 3 on receivables).
Other Revenue Sources
Revenue sources which are not considered to meet the measurable and available criteria for revenue recognition
include licenses and permits, fines and forfeitures, and other miscellaneous revenues since they are generally not
measurable until received.
Under the modified accrual basis, expenditures are recorded when the fund liability is incurred, except for principal
and interest on general long-term debt and vacation and sick pay which are recorded when paid.
As a general rule the effect of interfund activity has been eliminated 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 of activities, so expenses are not reported twice. Exceptions to this general rule are
payments for interfund services provided and used, such as between the City’s water, sewer, and surface water
functions and various other functions of the City, which are not eliminated in the process of consolidation.
Elimination of these charges would distort the direct costs and program revenues reported for the various functions
concerned. Amounts reported on the government-wide statements as program revenues include, charges to
customers or applicants for goods, operating grants and contributions, and capital grants and contributions. General
revenues include all taxes. The accrual basis of accounting is followed in all proprietary funds. Under the accrual
basis of accounting, revenues are recognized when earned and expenses are recorded when incurred. All assets
and liabilities are recorded in the fund.
F. Budgets and Budgetary Accounting
The City of Tukwila budgets its funds in accordance with the Revised Code of Washington 35A.33. In compliance
with the code, biennial budgets are adopted for the general fund and special revenue funds. For governmental
funds, there are no substantial differences between the budgetary basis and generally accepted accounting
principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial statements
include budgetary comparisons for biennially budgeted governmental funds only. Budgets established for
proprietary and fiduciary funds are “management budgets” and are not legally required to be reported and, as such,
are not reported in the CAFR.
The biennial appropriated budgets are adopted at the fund level and the budgets constitute the legal authority for
expenditures at that level. Subsidiary revenue and expenditure records are used to compare the budgeted amounts
with actual revenues and expenditures. As a management control device, the subsidiary ledgers monitor
expenditures for individual functions and activities by object class. Any unexpended appropriation balances lapse
at the end of the biennium.
The City of Tukwila’s budget procedures are mandated by RCW 35A.33. The steps in the budget process are as
follows:
1) Prior to November 1 on even numbered years, the Mayor submits a proposed budget to the City Council.
This budget is based on priorities established by the Council and estimates provided by the City departments
during the preceding months and balanced with revenue estimates made by the Mayor.
2) The City Council conducts public hearings on the proposed budget in November. Public hearings are also
held in December, if necessary.
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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
The City Council must approve, by ordinance, 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
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, 2018, 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
47
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
indicate they are not available for appropriation and are not expendable available financial resources. See Note 4
on interfund transactions.
Special Assessments
Special assessments are amounts levied against benefited properties to recover costs associated with the
construction of Local Improvement District (LID) projects. A lien is recorded against benefited properties until the
assessment has been paid. Special assessments receivable 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.
Between 1999 and 2004 the City acquired a number of properties comprising approximately 5.76 acres in its urban
renewal area along Tukwila International Boulevard for a redevelopment project called Tukwila Village. In 2012 the
City executed an agreement to sell the property to a developer. In 2017 the City and developer closed escrow on
the sale of the first phase which was then completed in 2018. The City and developer signed a purchase and sale
agreement for the second, and final, phase in 2018. Escrow is scheduled to close in 2019 and construction to be
completed by 2020.
As part of a crime-reduction project, the City purchased three crime-ridden motels in 2014 plus an adjacent motel
and retail shop in 2015. All structures on those properties were demolished in 2016. The City is negotiating to sell
most of the now vacant land to HealthPoint, a federally recognized community health center. 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
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
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.
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:
Asset Estimated Service Life
Buildings 25 to 50 years
Non-Building Improvements 25 to 50 years
Machinery and Equipment 2 to 50 years
Intangibles 2 to 50 years
Infrastructure 25 to 50 years
See Note 6 for additional information on capital assets.
Other Liabilities
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
$613,500 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 $1,533,750. The self-insurance fund for LEOFF 1 retirees includes an IBNR liability of $61,400 and total
liability of $153,500 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 624 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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
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
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.
As revised in 2017, the City’s Reserve Policy 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 the effects of GASB Statement No. 68, as well as significant 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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Fund Balance Components
The fund balance amounts for governmental funds have been classified in accordance with GASB Statement No.
54 and are reported as nonspendable, restricted, committed, assigned or unassigned.
Nonspendable fund balance includes items that cannot be spent. This includes activity that is not in a
spendable form (inventories, prepaid amounts, long-term portion of loans/notes receivable, or property held
for resale unless the proceeds are restricted, committed or assigned) and activity that is legally or
contractually required to remain intact, such as a principal balance in a permanent fund. The general fund’s
nonspendable fund balance of $718 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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Indirect Cost Allocation
Indirect costs, also referred to as overhead costs, consist of the cost of central services or support functions shared
across departments. They include accounting, human resources, payroll, 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 $2,325,643
for 2018 and are reported as a reduction of general government expenditures on the Statement of Activities.
Interfund Activity
Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses
in the purchaser funds. On the government-wide statement of activities, the exchange transactions between the
internal service funds and the user funds are eliminated. Flows of cash or goods from one fund to another without
a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing
sources/uses in governmental funds and after non-operating revenues/expenses section in proprietary funds.
Transfers between governmental and business-type activities on the government-wide statement of activities are
reported separately after general revenues. Transfers between funds reported in the governmental activities column
are eliminated. Transfers between funds reported in the business type activities column are eliminated.
Interfund Leases
The Public Safety Plan (PSP) includes funding for a consolidated Public Works Shop facilities location that will be
shared between governmental services -- street maintenance, facility maintenance and the Equipment Rental &
Replacement (ERR) operations and utility services – water, sewer and storm water operations.
It is projected that 50% of the facilities will be used for governmental services and 50% for utility services and within
the utility services, with the utility portion approximated based on number of personnel currently employed by each
at 34%, 19% and 47% respectively. The exact usage of the facilities will not be known until master planning and
design have been completed. At that time, the allocation percentages may be adjusted to more accurately reflect
projected usage.
The PSP Public Works Shops facilities will be owned by the governmental funds and leased to the utility funds.
Costs to acquire and finance property and construct improvements for the new facilities, will be shared equally by
the government funds and the utility funds. Payments made by the utility funds towards debt service and other
costs will be treated as lease deposits. The deposits will earn interest monthly at the average monthly LGIP rate.
Upon occupancy of the facilities, the utilities will be charged a market lease rate which will be paid first by reducing
the lease deposit balance, until the deposits have been exhausted, then directly by the utilities.
Lease payments from the utility funds began in 2018 and are recorded as a prepaid lease in the governmental
funds.
Estimates
The preparation of the financial statements in conformity with GAAP requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results
may differ from those estimates.
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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
The City of Tukwila is a member of the Washington Cities Insurance Authority (WCIA) as of January 1, 1984. WCIA
is an organization of Washington entities numbering 160 as of December 31, 2018. WCIA provides pooled self-
insurance coverage for general liability, vehicle liability, false arrest, and errors and omissions. See Note 13 for
additional information on risk 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 purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable in accordance with
the benefit terms. Investments are reported at fair value.
I. Changes in Accounting Standards
The City implemented Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting
and Financial Reporting for Postemployment Benefits Other Than Pensions. This Statement replaces the
requirements of Statements No. 45, Accounting and Financial Reporting by Employers for Postemployment
Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent
Multiple-Employer Plans, for OPEB. Statement No. 74, Financial Reporting for Postemployment Benefit Plans
Other Than Pension Plans, establishes new accounting and financial reporting requirements for OPEB plans.
The implementation of the statement required the City to record new beginning balances for the total OPEB
obligation and related deferred inflows/outflows. As a result, net position for the City decreased $15,525,426.
NOTE 2 –DEPOSITS AND INVESTMENTS
The City maintains a cash and investment pool available for use by all funds. Interest earned on pooled
investments is recorded in the participating funds. Investments are also held separately by several of the funds,
with interest earned directly for the benefit of each fund.
Cash and Cash Equivalents
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 $21,922,719. 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 $16,250.
The city participates in the Washington State Treasurer's Local Government Investment Pool (LGIP) managed by
the Office of the State Treasurer, which is also responsible for establishing the investment policy for the LGIP.
The LGIP is an unrated external investment pool. The pool’s portfolio is invested in a manner that meets the
maturity, quality, diversification, and liquidity requirements set for by GASB 79 “Certain External Investment Pools
and Pool Participants” for external investment pools that elect to measured investments at amortized costs
for financial reporting purposes.
Investments in the LGIP are available on demand in the amount of the original investment, plus interest earnings,
and are treated as a money-market investment. Accordingly, the fair value of the city's position in the LGIP is the
same as the value of the city's LGIP shares. Regulatory oversight for these investments is provided as prescribed
by Washington State law. The State Auditor audits the accounts of the State Treasurer to determine the
compliance of investment activities with state statutes and the investment policy. Also, an independent audit
of the LGIP's financial statements is performed annually. The State Treasurer has created an Advisory
Committee consisting of
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
eight members appointed by participant associations and four members appointed by the State Treasurer. The
committee meets at least quarterly to provide advice on the operation of the LGIP.
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.
At December 31, 2018, the City had the following deposits and investments. Certificates of deposits are measured
at amortized cost, agencies and municipal bonds are measured at fair value.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
SCHEDULE OF INVESTMENTS BY MATURITY
Maturity
Date
Credit
Rating
Fair
Value
Certificates of Deposit:
Sound Community Bank 3/4/2019 * 3,288,311$
Bank of Washington 6/2/2019 * 250,000
Total Certificate of Deposits 3,538,311
U.S. Government Agency Notes:
Federal Home Loan Bank 1/30/2019 AA+ / Aaa 998,944
Federal Farm Credit Bank 3/20/2019 AA+ / Aaa 1,995,780
Farmer Mac 7/23/2019 AA+ / Aaa 994,037
Farmer Mac 8/2/2019 AA+ / Aaa 2,484,958
FNMA 10/9/2019 AA+ / Aaa 2,320,996
Federal Farm Credit Bank 12/27/2019 AA+ / Aaa 990,630
Federal Home Loan Bank 6/29/2020 AA+ / Aaa 1,674,877
Federal Home Loan Bank 8/28/2020 AA+ / Aaa 2,264,780
Federal Farm Credit Bank 5/9/2022 AA+ / Aaa 1,962,010
Total U.S. Agency Notes 15,687,012
Municipal Bonds:
Washington State Biomedical Research: Revenue - Fac ilities 7/1/2019 Aa1 / AA+505,550
Seattle, Washington: Limited General Obligation 11/1/2019 Aaa / AAA 391,478
Auburn, Washington: Limited General Obligation, Build America 12/1/2019 AA+311,701
Port of Anacortes, Washington: Limited General Obligation 9/1/2020 Aa3 345,501
Douglas County School District, Washington: Unlimited General Obligation 12/1/2020 Aa2 803,899
Port of Tacoma, Washington: Limited General Obligation, Taxable Refunding 12/1/2020 Aa2 / AA 516,528
Multnomah County, Oregon: Limited General Obligation 6/1/2021 Aaa 440,134
Burien, Washington: Limited General Obligation, Build America 12/1/2025 Aa2 535,329
Port of Seattle, Washington: Revenue, Taxable 5/1/2036 Aa2 / AA- 2,064,163
Total Municipal Bonds 5,914,283
TOTAL INVESTMENTS 25,139,606$
* No credit rating with certificate of deposit accounts; accounts are insured by the Public Depository Protection Commission.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
RECONCILIATION OF ALL CASH, DEPOSITS AND INVESTMENTS
CASH & CASH
EQUIVALENTS
RESTRICTED
CASH INVESTMENTS
RESTRICTED
INVESTMENTS TOTAL
Governmental Funds
General Fund 12,835,490$ 8,406$ 4,355,417$ -$ 17,199,313$
Arterial Street 1,189,667 914,152 - - 2,103,819
Local Improvement District #33 664,339 - - - 664,339
Public Safety Plan 2,059,940 4,003,275 36,063 10,442,289 16,541,567
Facilities Urban Renewal 189,598 12,936,165 - - 13,125,763
Other Governmental Funds 6,198,053 379,199 535,329 -7,112,581
Internal Service Funds 5,125,149 -2,262,256 -7,387,405
Proprietary Funds -
Water 3,101,912 25,825 2,203,168 -5,330,905
Sewer 4,278,019 -4,788,556 -9,066,575
Foster Golf Course 598,009 75,418 - - 673,427
Surface Water 1,794,134 - - - 1,794,134
38,034,310 18,342,439 14,180,789 10,442,289 80,999,827
Firemen's Pension Trust Fund -943,482 516,528 -1,460,011
Agency Fund -249,099 - - 249,099
38,034,310$ 19,535,021$ 14,697,317$ 10,442,289$ 82,708,937$
Total Cash, Cash Equivalents
and Investments
SUMMARY BY FUNDS
Total as Reported on
Statement of Net Position
SUMMARY BY TYPE:
Cash and Cash Equivalents:
Local Government Investment Pool 22,376,710$
Money market account 14,642,045
Cash on hand 16,250
Cash in bank-book balance 20,534,326
Total cash and cash equivalents 57,569,331
Investments:
Certificates of deposit 3,538,311
U.S. Government Agency Notes 15,687,012
Municipal bonds 5,914,283
Total investments 25,139,606
Total Cash, Cash Equivalents, and Investments 82,708,937$
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Restricted Assets - Governmental
Cash & cash equivalents 16,939,440$
Deposits 8,406
Drug Seizure funds - federal portion 212,063
Debt Service 604,197
Impact fees 477,091
Investments 10,442,289
Restricted Assets-Governmental 28,683,486$
Restricted Assets - Business-Type
Customer Deposits-Water Utility 25,825$
Customer Deposits-Golf Course 60,418
Lease Deposits-Golf Course 15,000
Revenue Bond Reserve Account-Water/Sewer/Surface Water -
Restricted Assets-Business-Type 101,243$
Total Restricted Assets 28,784,728$
Fair Value Measurement
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.
Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an
exit price) in the principal or cost advantageous market for the asset or liability in an orderly transaction. There is
a fair value hierarchy which requires an entity to maximize the use of observable inputs when measuring fair value.
The guidance requires three levels of fair value measurement based on the respective inputs.
Level 1 inputs are quoted prices in active markets for identical assets. These valuation inputs are
considered most reliable.
Level 2 inputs are quoted prices for similar assets, quoted prices for identical or similar assets in markets
that are not active, or other observables. These valuation inputs are considered to be reliable.
Level 3 inputs are significant unobservable inputs and are considered to be the least reliable.
U.S. Agency Securities and municipal bonds classified in Level 2 are valued using quoted prices for similar
securities and interest rates. The level of fair value measurement is based on the lowest level of significant input
for the security type in its entirety. There are no Level 1 or Level 3 security classifications to report.
The fair values noted in the following table have been provided by Time Value Investments, who obtains the
information through Interactive Data (IDC). IDC evaluates the various securities and obtains feeds from a number
of live data and market sources including active market makers and inter-dealer brokers, relative credit information,
observed market movements, and sector news. IDC reviews sources on the basis of their historical accuracy for
individual issues and maturity ranges.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
The City has the following recurring fair value measurements as of December 31, 2018:
Investments by Fair Value Level Total
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
US Government Agencies 15,687,012$ $ - $ 15,687,012 $ -
Municipal Bonds 5,914,283 - 5,914,283 -
Total Investments by Fair Value Level 21,601,295$ -$ 21,601,295$ -$
Fair Value Measurements Using
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of
an investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s
investment policy limits investment maturities as follows:
1) At the time of investment, a minimum of thirty percent (30%) of the cash and investment portfolio will be
comprised of investments maturing or available within one year.
2) At the time of investment, eighty percent (80%) of the portfolio will be comprised of investments maturing or
available within five (5) years and no instruments shall have a maturity exceeding ten (10) years, except
when compatible with a specific fund’s investment needs.
3) The average maturity of the portfolio shall not exceed three and one half (3 ½) 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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
6) The Washington State Local Government Investment Pool (LGIP), an unrated, external investment pool.
As of December 31, 2018, 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.
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.
Governmental
Activities
Business-Type
Activities Total
Taxes Receivable
Property 249,690$ -$ 249,690$
Sales & Use 3,911,280 - 3,911,280
Real Estate Excise Tax 50,041 - 50,041
Utility Tax 697,651 - 697,651
Admission/Gambling/Parking/Other 1,248,073 1,003 1,249,076
Total Taxes Receivable 6,156,734 1,003 6,157,737
Customer Receivable
Miscellaneous 1,316,589 2,929 1,319,518
Utility Accounts - 1,555,265 1,555,265
Total Customer Receivable 1,316,589 1,558,194 2,874,783
Interest 95,399 8,014 103,413
Notes due within one year 212,712 - 212,712
Total Receivables 7,781,435$ 1,567,210$ 9,348,645$
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Property Taxes Receivable
The County Treasurer acts as an agent to collect property taxes levied in the County for all taxing authorities.
Collections are distributed daily via wire transfer.
Property Tax Calendar
January 1st Taxes are levied and become an enforceable lien against properties.
February 14th Tax bills are mailed.
April 30th First of two equal installment payments is due. If taxes are less than $50, full payment is due.
(RCW 84.56.020)
May 31st Assessed value of property established for next year’s levy at 100 percent of market value.
October 31st 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
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 2018 was $2.46282 per $1,000 of assessed valuation of $6,155,826,776 for a total regular levy of $15,199,659.
Special levies approved by the voters are not subject to the limitations listed above. In 2018, the City levied an
additional $0.45582 per $1,000 for the Public Safety Plan approved by voters in November 2016. The total
additional levy in 2018 was $2,807,019
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, 2018, the
majority represents grants.
60
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Notes Receivable
Notes receivable for governmental activities consists of the long-term portion of the special assessments related to
Local Improvement District (LID) No. 33. Special assessments are levied against certain property owners benefited
by the improvement. The current portion of outstanding assessments is reported in the receivables category on the
Statement of Net Position and consists of assessments which are due within one year 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 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, with annual payments through 2025. The second agreement is for the Tukwila South project which defers
$1.75 million in fire impact fees, with annual payments due each December from 2017 through 2022.
Notes receivable for business–type activities consists of outstanding payment plans for sewer connection fees. The
City designed and constructed sewer infrastructure in both the Allentown and Foster Point neighborhoods, which
was previously on septic. The project was completed and accepted by City Council in 2007. The connection fees
to be paid by property owners were established by ordinance, effective in August of 2007. One option given to
property owners was an installment payment plan. This option allowed owners to sign an agreement to have the
connection charge added to their monthly water bill and repaid over 5, 10, or 15 years with a 4% annual interest
rate. The balance reflects all principal outstanding at year-end.
Governmental
Activities
Business-Type
Activities Total
Notes Receivable
Special Assessments 3,899,511$ -$ 3,899,511$
Developer Agreements 2,294,698 - 2,294,698
Sewer Payment Plan -203,295 203,295
Total Receivables 6,194,209$ 203,295$ 6,397,504$
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, 2018, 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.
61
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
TOTAL
General Public Safety Other Gov't Total Golf
Fund Plan Facilities Funds Governmental Course
Transfers In -$ 900,000$ 3,000,000$ 3,842,669$ 7,742,669$ 300,000$ 8,042,669$
Transfers Out (4,023,156) - (119,513) (3,900,000) (8,042,669) - (8,042,669)
Net Transfers In
(Out)(4,023,156)$ 900,000$ 2,880,487$ (57,331)$ (300,000)$ 300,000$ -$
Governmental
Funds
Proprietary
Funds
The principal purposes for interfund transfers includ e interfund subsidies and transfers into debt service
and capital projects funds.
NOTE 5 – LEASES
Operating Leases
City Records Center
Effective June 1, 2009, the City entered into a 60-month non-cancelable lease with International Gateway
East, LLC to rent a warehouse at 3411 South 120th Place, Tukwila in order to store the City’s record
archives. In 2014, the City opted to extend the lease. Currently, the lease automatically extends for
successive twelve-month periods on the same terms and conditions within the lease. Ninety-day notice is
required if either party desires to prevent the automatic renewal. The total lease payments for 2018 were
$90,910. Future lease payments beyond the current twelve-month period are estimated to increase at 2.5%
on an annual basis. Future lease payments to International Gateway East, LLC are estimated to total
$93,026 for 2019.
Police Archives/Vehicle Storage
Effective September 1, 2015, the City entered into a 63-month non-cancelable lease with IIT Andover DC,
LLC to rent facilities at 571 Strander Boulevard in Tukwila for Police archives including vehicle storage.
The City has the option to extend the lease 60 months commencing when the current term ends December
31, 2020. Amounts of base rent payments would be renegotiated within four months prior to the original
expiration date. The total lease payments for 2018 were $59,144. Future lease payments to IIT Andover
DC, LLC total $60,916 for 2019.
Police Department Gym
Effective September 1, 2015, the City and the Tukwila Police Officer’s Guild entered into a 60 -month non-
cancelable lease with NCWP-Andover Executive Park, LLC to rent space for a gym located at 611 Industry
Drive. The City may have options to extend the l ease near the expiration date. The City and the Guild each
pay half of the monthly base rent. The total lease payments made by the City for 2018 were $14,157. Future
lease payments to NCWP-Andover Executive Park, LLC total $15,892 for 2019.
NOTES TO THE FINANCIAL STATEMENTS CITY OF TUKWILA: 2018 CAFR
62
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Laptop Computers
Effective April 3, 2017, the City entered into a 36-month non-cancelable lease with Dell Financial Services, LLC to
lease laptop computers for use by the City’s employees. At conclusion of the lease term, the City has the option to
purchase the products, return the products, or renew the lease on a month-to-month basis. The total lease payments
made by the City for 2018 were $130,379. Future lease payments to Dell Financial Services, LLC total $138,678
for 2019.
Postage Machine
Effective May 4, 2018, the City entered into a 60-month non-cancelable lease with Pitney Bowes, Inc. to lease
postage equipment. The total lease payments made by the City for 2018 were $3,469. Future lease payments to
Pitney Bowes, Inc. total $6,939 for 2019.
During 2018, the City also maintained operating lease agreements for copiers and other various office equipment.
Minimum future rental payments are summarized as follows:
93,026$ 60,916$ 15,892$ 138,678$ 6,939$ 76,719$
95,391 57,412 10,805 - 6,939 70,887
97,816 - - - 6,939 42,156
100,302 - - - 6,939 14,396
102,851 - - - 2,313 -
- - - - - -
489,386$ 118,328$ 26,697$ 138,678$ 30,068$ 204,158$
Year Ending
December 31 Amount
2019 392,170$
2020 241,434
2021 146,911
2022 121,637
2023 105,164
Thereafter -
TOTAL 1,007,315$
City Records
Center
Police
Archives/Vehicle
Storage
Police
Department
Gym
Laptop
Computers
Postage
Machine
Office
Equipment
63
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 6 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2018, was as follows:
GOVERNMENTAL ACTIVITIES
BEGINNING
BALANCE
1/1/2018 INCREASES DECREASES
ENDING
BALANCE
12/31/2018
Governmental Activities
Capital assets, not being depreciated:
Land 36,172,319$ -$ -$ 36,172,319$
Construction in Progress 9,543,935 50,813,781 (2,452,913) 57,904,804
Total capital assets,
not being depreciated 45,716,254 50,813,781 (2,452,913) 94,077,123
Capital assets, being depreciated:
Buildings 24,521,606 - - 24,521,606
Other Improvements 23,687,766 293,696 - 23,981,462
Machinery and Equipment 22,769,637 1,162,032 (882,202) 23,049,468
Infrastructure 203,399,951 2,140,054 - 205,540,004
Total capital assets
being depreciated 274,378,960 3,595,782 (882,202) 277,092,540
Less accumulated depreciation for:
Buildings (13,406,172) (792,786) - (14,198,958)
Other Improvements (13,852,737) (1,025,229) - (14,877,966)
Machinery and Equipment (15,505,300) (1,595,580) 843,088 (16,257,793)
Infrastructure (64,118,634) (6,127,352) - (70,245,986)
Total accumulated depreciation (106,882,843) (9,540,947) 843,088 (115,580,703)
Total capital assets, being
depreciated, net 167,496,117 (5,945,165) (39,114) 161,511,837
Governmental activity capital assets, net 213,212,371$ 44,868,616$ (2,492,027)$ 255,588,960$
64
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
BUSINESS-TYPE ACTIVITIES
BEGINNING
BALANCE
1/1/2018 INCREASES DECREASES
ENDING
BALANCE
12/31/2018
Business-Type Activities
Capital assets, not being depreciated:
Land 2,396,230$ -$ (50,000)$ 2,346,230$
Construction in Progress 2,462,779 4,927,258 (1,395) 7,388,641
Total capital assets,
not being depreciated 4,859,009 4,927,258 (51,395) 9,734,872
Capital assets, being depreciated:
Buildings 13,284,419 - - 13,284,419
Other Improvements 93,837,552 - (21,175) 93,816,377
Machinery and Equipment 2,217,130 - - 2,217,130
Total capital assets
being depreciated 109,339,101 - (21,175) 109,317,926
Less accumulated depreciation for:
Buildings (5,348,979) (371,795) - (5,720,774)
Other Improvements (35,790,578) (1,878,119) 14,813 (37,653,884)
Machinery and Equipment (1,838,665) (39,554) - (1,878,219)
Total accumulated depreciation (42,978,223) (2,289,467) 14,813 (45,252,877)
Total capital assets, being
depreciated, net 66,360,878 (2,289,467) (6,362) 64,065,049
Business-Type activity capital assets, net 71,219,887$ 2,637,791$ (57,757)$ 73,799,921$
65
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
DEPRECIATION
Depreciation expense for 2018 was charged to functions/programs as
follows:
Governmental Activities
General Government 234,471$
Public Safety 151,525
Physical Environment 844,001
Transportation 6,156,385
Economic Environment 2,907
Culture and Recreation 1,040,913
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the as sets 1,110,745
Total 2018 depreciation expense - governmental activities 9,540,947$
Business-type activities:
Water Utility 539,480$
Sewer Utility 391,959
Foster Golf Course 313,164
Surface Water Utility 1,044,865
Total 2018 depreciation expense - business-type activities 2,289,467$
NOTE 7 – JOINT VENTURES
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.
Equity in
Operations
TOTAL
Investment in
Joint Ventures
Valley Com 2,950,969$ -$ 2,950,969$
SCORE 1,031,108 5,729,600 6,760,708
TOTAL 3,982,077$ 5,729,600$ 9,711,677$
Equity in Capital Assets
financed by Outstanding
Debt
SUMMARY OF INVESTMENT IN JOINT VENTURES
66
CITY OF TUKWILA: 2018 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 2018 cost distribution for the five (5) participating cities is as follows:
City
Dispatchable
Calls
Percent of
Total
Renton 90,329 20.62%
Kent 117,948 26.92%
Auburn 101,199 23.10%
Tukwila 36,799 8.40%
Federal Way 91,883 20.97%
Total 438,158 100.00%
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:
ITEM RENTON KENT AUBURN TUKWILA
FEDERAL
WAY TOTAL
Equity January 1, 2018 5,212,721$ 7,215,101$ 5,290,137$ 2,677,982$ 4,222,772$ 24,618,713$
Current Year Increase/(Decrease) 670,091 874,974 750,724 272,987 681,619 3,250,395
Equity December 31, 2018 5,882,811$ 8,090,075$ 6,040,861$ 2,950,969$ 4,904,391$ 27,869,108$
Percent of Equity 21.11% 29.03% 21.68% 10.59% 17.60% 100.00%
67
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position. In August
1993, Valley Com entered into an interlocal cooperation agreement, pursuant to RCW 39.34 RCW, with the sub-
regions of King County, Seattle, and the Eastside Public Safety Communications Agency. This agreement governs
the development, acquisition and installation of the 800 MHz emergency radio communications system funded by
a $57 million King County levy approved in November 1992. This agreement provides that upon voluntary
termination of any sub-region’s participation in the system, it surrenders its radio frequencies, relinquishes its
equipment and transfers any unexpended levy proceeds and associated equipment replacement reserves to
another sub-region or consortium of sub-regions. Thus, in accordance with this agreement, the participating cities
of Valley Com have no equity interest in Valley Com’s 800-MHz communications system.
During 2000, the Valley Communications Center Development Authority was created to issue $12,758,000 in
General Obligation Bonds to finance construction, equipment, and land for a new facility completed in 2002. Each
of the five participating cities 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 by Valley Communications Center
Development Authority have been paid and retired. The final payment on the bonds was made in 2015.
A complete set of financial statements are available from Valley Communications Center, 27519 108th Ave SE,
Kent, WA 98030, or by telephone 253-372-1300.
South Correctional Entity (SCORE)
The South Correctional Entity (SCORE) consolidated correctional facility was established February 25, 2009, when
an Interlocal Agreement (the “Original Interlocal Agreement”) was entered into by seven participating municipal
governments, the “Member Cities” of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila,
under the authority of the “Interlocal Cooperation Act” (RCW 39.34). This “Original Interlocal Agreement” was
amended and restated October 1, 2009 and named the City of Des Moines as the “Host City” and the remaining
Member Cities as “Owner Cities”. This interlocal agreement is known as the “Formation Interlocal Agreement”.
Pursuant to a separate “Host City Agreement” dated October 1, 2009, the Host City will not enjoy the same equity
position as the Owner Cities until all debts issued are paid and the Host City fulfills all of its obligations as outlined
in the Host City Agreement. Pursuant to SCORE financial policies, all unexpected funds or reserve funds shall be
distributed based on the percentage of the Member City’s average daily population at the SCORE Facility for the
last three (3) years regardless of 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,
own, operate, maintain, equip, and improve a correctional facility known as the “SCORE Facility” and to provide
correctional services and functions incidental thereto, for the purpose of detaining arrestees and sentenced
offenders in the furtherance of public safety and emergencies within the jurisdiction of the Member Cities. The
SCORE Facility may serve the Member Cities and Subscribing Agencies which are in need of correctional facilities.
Any agreement with a Subscribing Agency shall be in writing and approved by SCORE as provided within the
SCORE Formation Interlocal Agreement.
Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility was provided by
bonds issued by the South Correctional Entity Facility Public Development Authority (the “SCORE PDA”), a public
development authority chartered by the City of Renton pursuant to RCW 35.21.730 through 35.21.755. The
SCORE 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.
68
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 Cities
BABs Auburn Burien Federal Way Renton SeaTac Tukwila
Year Principal Interest Subsidy Total 31% 4% 18% 36% 3% 8%
2019 2,310,000 4,602,229 (1,478,317) 5,433,912 1,684,513 217,356 978,104 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 1,916,148 159,679 425,811
2023-2027 14,485,000 18,727,798 (6,710,481) 26,502,317 8,215,718 1,060,093 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 8,170,414 1,054,247 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 73,930,000$ 57,761,189$ (20,576,901)$ 111,114,288$ 34,445,429$ 4,444,571$ 20,000,572$ 40,001,144$ 3,333,429$ 8,889,144$
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, 2018 related to SCORE. The share of equity belonging to the seven participating cities are as
follows:
ITEM AUBURN BURIEN DES MOINES
FEDERAL
WAY RENTON SEATAC TUKWILA TOTAL
Equity January 1, 2018 3,147,747$ 346,865$ 163,335$ 2,353,747$ 3,016,168$ 456,976$ 719,422$ 10,204,260$
Current Year Increase/(Decrease)949,658 179,397 178,510 1,131,823 1,141,371 262,464 311,686 4,154,909
Equity December 31, 2018 4,097,405$ 526,262$ 341,845$ 3,485,570$ 4,157,539$ 719,440$ 1,031,108$ 14,359,169$
Percent of Equity 29%4%2%24%29%5%7%100%
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 $5,729,600. 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 for the year 2018:
Aggregate Pension Amounts – All Plans
Pension liabilities (8,146,291)
Pension assets 11,466,319
Deferred outflows of resources 2,779,253
Deferred inflows of resources (7,013,659)
Pension expense/expenditures (369,463)
69
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
State Sponsored Pension Plans
Substantially all the City of Tukwila’s full-time and qualifying part-time employees participate in one of the following
statewide retirement systems administered by the Washington State Department of Retirement Systems, under
cost-sharing, multiple-employer public employee defined benefit and defined contribution retirement plans. The
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 98540-8380
Or the DRS CAFR may be downloaded from the DRS website at www.drs.wa.gov.
Public Employees’ Retirement System (PERS)
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
2018 were as follows:
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
PERS Plan 1
Actual Contribution Rates Employer Employee*
January – August 2018
PERS Plan 1 7.49% 6.00%
PERS Plan 1 UAAL 5.03%
Administrative Fee 0.18%
Total 12.70% 6.00%
September – December 2018
PERS Plan 1 7.52% 6.00%
PERS Plan 1 UAAL 5.13%
Administrative Fee 0.18%
Total 12.83% 6.00%
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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 2018 were
as follows:
PERS Plan 2/3
Actual Contribution Rates Employer 2/3 Employee 2
January – August 2018
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%
September – December 2018
PERS Plan 2/3 7.52% 7.41%
PERS Plan 1 UAAL 5.13%
Administrative Fee 0.18%
Employee PERS Plan 3 Varies
Total 12.83% 7.41%
The City of Tukwila’s actual PERS plan contributions were $846,714 to PERS Plan 1 and $1,245,790 to PERS Plan
2/3 for the year ended December 31, 2018.
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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 and Cannabis Board, Parks and Recreation Commission, and Washington
State Patrol),
Washington State Counties,
Washington State Cities (except for Seattle, Spokane, and Tacoma),
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 of the average final compensation (AFC) for each year of service. The AFC is based on the member’s 60
consecutive highest creditable months of service. Benefits are actuarially reduced for each year that the member’s
age is less than 60 (with ten or more service credit years in PSERS), or less than 65 (with fewer than ten service
credit years). There is no cap on years of service credit. Members are eligible for retirement at the age of 65 with
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 60 is considered an early retirement. PSERS members who retire prior to the
age of 60 receive reduced benefits. If retirement is at age 53 or older with at least 20 years of service, a three
percent per year reduction for each year between the age at retirement and age 60 applies. PSERS Plan 2
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. 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 at 0.18 percent. Each biennium, the state Pension
Funding Council adopts Plan 2 employer and employee contribution rates.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
The PSERS Plan 2 required contribution rates (expressed as a percentage of current-year covered payroll) for 2018
were as follows:
PSERS Plan 2
Actual Contribution Rates Employer Employee
January – August 2018
PSERS Plan 2 6.74% 6.74%
PERS Plan 1 UAAL 5.03%
Administrative Fee 0.18%
Total 11.95% 6.74%
September – December 2018
PSERS Plan 2 7.07% 7.07%
PERS Plan 1 UAAL 5.13%
Administrative Fee 0.18%
Total 12.38% 7.07%
The City of Tukwila’s actual plan contributions were $7,768 to PSERS Plan 2 for the year ended December 31,
2018.
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF)
LEOFF membership includes all full-time, fully compensated, local law enforcement commissioned officers,
firefighters, and as of July 24, 2005, emergency medical technicians. LEOFF is comprised of two separate defined
benefit plans.
LEOFF Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined per year of
service calculated as a percent of final average salary (FAS) as follows:
20+ years of service – 2.0% of FAS
10-19 years of service – 1.5% of FAS
5-9 years of service – 1% of FAS
The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same
position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest
consecutive 24 months’ salary within the last ten years of service. Members are eligible for retirement with five
years of service at the age of 50. Other benefits include duty and non-duty disability payments, a cost-of living
adjustment (COLA), and a one-time duty-related death benefit, if found eligible by the Department of Labor and
Industries. LEOFF 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
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 2018.
Employers paid only the administrative expense of 0.18 percent of covered payroll.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
LEOFF Plan 2 provides retirement, 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 60
months). Members are eligible for retirement with a full benefit at 53 with at least five years of service credit.
Members who retire prior to the age of 53 receive reduced benefits. If the member has at least 20 years of service
and is age 50, the reduction is three percent for each year prior to age 53. Otherwise, the benefits are actuarially
reduced for each year prior to age 53. LEOFF 2 retirement benefits are also actuarially reduced to reflect the choice
of a survivor benefit. Other 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. 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 includes an administrative expense component set at 0.18 percent. Plan 2
employers and employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board.
Effective July 1, 2017, when a LEOFF employer charges a fee or recovers costs for services rendered by a LEOFF
2 member to a non-LEOFF employer, the LEOFF employer must cover both the employer and state contributions
on the LEOFF 2 basic salary earned for those services.
The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2018 were as
follows:
LEOFF Plan 2
Actual Contribution Rates Employer Employee
State and local governments 5.25% 8.75%
Administrative Fee 0.18%
Total 5.43% 8.75%
Ports and Universities 8.75% 8.75%
Administrative Fee 0.18%
Total 8.93% 8.75%
The City’s actual contributions to the plan were $855,040 for the year ended December 31, 2018.
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, 2018, the state contributed $68,152,127 to LEOFF Plan 2. The amount recognized by the City of Tukwila
as its proportionate share of this amount is $539,330.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation
completed in 2018 with a valuation date of June 30, 2017. 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 2017 Economic
Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2017 actuarial valuation report.
The TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2018.
Plan liabilities were rolled forward from June 30, 2017, to June 30, 2018, reflecting each plan’s normal cost (using
the entry-age cost method), assumed interest and actual benefit payments.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Inflation: 2.75% total economic inflation; 3.50% salary inflation
Salary increases: In addition to the base 3.50% salary inflation assumption, salaries are also expected to
grow by promotions and longevity.
Investment rate of return: 7.4%
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.
Lowered the valuation interest rate from 7.70% to 7.50% for all systems except LEOFF 2. For LEOFF 2
the valuation interest rate was lowered from 7.50% to 7.40%.
Lowered the assumed general salary growth from 3.75% to 3.50% for all systems.
Lowered assumed inflation from 3.00% to 2.75% for all systems.
Modified how the valuation software calculates benefits paid to remarried duty-related death survivors of
LEOFF 2 members.
Updated the trend that the valuation software uses to project medical inflation for LEOFF 2 survivors of a
duty-related death, and for certain LEOFF 2 medical-related duty disability benefits.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.4 percent.
To determine that rate, an asset sufficiency test included an assumed 7.5 percent long-term discount rate to
determine funding liabilities for calculating future contribution rate requirements. (All plans use 7.5 percent except
LEOFF 2, which has assumed 7.4 percent). Consistent with the long-term expected rate of return, a 7.4 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 7.4
percent was used to determine the total liability.
Long-Term Expected Rate of Return
The long-term expected rate of return on the DRS pension plan investments of 7.4 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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
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, 2018, 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 7% 4.90%
Real Estate 18% 5.80%
Global Equity 32% 6.30%
Private Equity 23% 9.30%
100%
Sensitivity of the Net Pension Liability/(Asset)
The table below presents the City of Tukwila’s proportionate share of the net pension liability calculated using the
discount rate of 7.4 percent, as well as what the City of Tukwila’s proportionate share of the net pension liability
would be if it were calculated using a discount rate that is 1-percentage point lower (6.4 percent) or 1-percentage
point higher (8.4 percent) than the current rate.
1% Decrease
(6.4%)
Current
Discount Rate
(7.4%)
1% Increase
(8.4%)
PERS 1 6,730,519 5,476,697 4,390,635
PERS 2/3 12,209,354 2,669,281 (5,152,514)
PSERS 2 32,283 311 (24,777)
LEOFF 1 (1,212,231) (1,523,823) (1,792,087)
LEOFF 2 (1,296,846) (9,752,091) (16,648,327)
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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pensions
At June 30, 2018, the City of Tukwila reported a pension asset of $11,466,320 and a pension liability of $8,146,289
for its proportionate share of the net pension liabilities as follows:
Liability (or Asset)
PERS 1 5,476,699
PERS 2/3 2,669,281
PSERS 2 311
FIREMEN’S PENSION (190,406)
LEOFF 1 (1,523,822)
LEOFF 2 (9,752,091)
The amount of the asset reported above for LEOFF Plans 1 and 2 reflects a reduction for State pension support
provided to the City of Tukwila. The amount recognized by the City of Tukwila as its proportionate share of the net
pension 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:
LEOFF 1 Asset LEOFF 2 Asset
Employer’s proportionate share (1,523,822) (9,752,091)
State’s proportionate share of the
net pension asset associated with
the employer
(10,307,104) (6,314,295)
TOTAL (11,830,926) (16,066,386)
At June 30, the City of Tukwila’s proportionate share of the collective net pension liabilities was as follows:
Proportionate
Share 6/30/17
Proportionate
Share 6/30/18
Change in
Proportion
PERS 1 0.127058% 0.122630% -0.004428%
PERS 2/3 0.161787% 0.156335% -0.005452%
PSERS 2 0.045565% 0.025080% -0.020485%
LEOFF 1 0.082086% 0.083934% 0.001848%
LEOFF 2 0.503269% 0.480347% -0.022922%
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are 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 Non-employer Allocations for all plans except LEOFF 1.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1 from
1971 through 2000 and the retirement benefit payments in fiscal year 2018. Historical data was obtained from a
2011 study by the Office of the State Actuary (OSA). In fiscal year 2018, the State of Washington 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 underfunded, 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 2018, the state of Washington contributed 39.30 percent of LEOFF 2 employer contributions pursuant
to RCW 41.26.725 and all other employers contributed the remaining 60.70 percent of employer contributions.
The collective net pension liability (asset) was measured as of June 30, 2018, and the actuarial valuation date on
which the total pension liability (asset) is based was as of June 30, 2017, with update procedures used to roll forward
the total pension liability to the measurement date.
Pension Expense
For the year ended December 31, 2018, the City of Tukwila recognized pension expense as follows:
Pension Expense
PERS 1 $259,678
PERS 2/3 (241,750)
PSERS 2 4,751
LEOFF 1 (270,415)
LEOFF 2 (324,913)
FIREMEN’S PENSION (159,368)
TOTAL $(732,017)
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2018, the City of Tukwila reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
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
$ - $ (217,641)
Changes of assumptions $ - $ -
Changes in proportion and differences
between contributions and proportionate
share of contributions
$ - $ -
Contributions subsequent to the
measurement date
$ 430,910 $ -
TOTAL $ 430,910 $ (217,641)
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
PERS 2/3 Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience
$ 327,183 $ (467,342)
Net difference between projected and
actual investment earnings on pension plan
investments
$ - $ (1,637,994)
Changes of assumptions $31,225 $ (759,656)
Changes in proportion and differences
between contributions and proportionate
share of contributions
$ - $ (443,980)
Contributions subsequent to the
measurement date
$ 630,825 $ -
TOTAL $ 989,233 $ (3,308,973)
PSERS 2 Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience
$ 2,305 $ (319)
Net difference between projected and
actual investment earnings on pension plan
investments
$ - $ (4,190)
Changes of assumptions $ 33 $ (1,923)
Changes in proportion and differences
between contributions and proportionate
share of contributions
$ - $ (5,100)
Contributions subsequent to the
measurement date
$ 4,452 $ -
TOTAL $ 6,790 $ (11,531)
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
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
$ - $ (123,712)
Changes of assumptions $ - $ -
Changes in proportion and differences
between contributions and proportionate
share of contributions
$ - $ -
Contributions subsequent to the
measurement date
$ - $ -
TOTAL $ - $ (123,712)
LEOFF 2 Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience
$ 522,400 $ (226,445)
Net difference between projected and
actual investment earnings on pension plan
investments
$ - $ (1,706,747)
Changes of assumptions $ 5,520 $ (1,399,601)
Changes in proportion and differences
between contributions and proportionate
share of contributions
$ 311,974 $ (19,009)
Contributions subsequent to the
measurement date
$ 444,918 $ -
TOTAL $ 1,284,812 $ (3,351,802)
Deferred outflows of resources related to pensions resulting from the City of Tukwila’s contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31,
2019. 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 31:
PERS 1
2019 9,522
2020 (47,578)
2021 (142,767)
2022 (36,818)
2023
Thereafter
TOTAL (217,641)
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Year ended
December 31: PERS 2/3
2019 (408,243)
2020 (615,157)
2021 (1,057,923)
2022 (426,591)
2023 (192,740)
Thereafter (249,909)
TOTAL (2,950,563)
Year ended
December 31: PSERS 2
2019 (592)
2020 (1,040)
2021 (1,929)
2022 (1,200)
2023 (615)
Thereafter (3,818)
TOTAL (9,193)
Year ended
December 31: LEOFF 1
2019 118
2020 (27,908)
2021 (76,011)
2022 (19,911)
2023
Thereafter
TOTAL (123,712)
Year ended
December 31: LEOFF 2
2019 (171,452)
2020 (429,863)
2021 (970,229)
2022 (352,216)
2023 (110,249)
Thereafter (477,899)
TOTAL (2,511,908)
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Firemen’s Pension System
Summary of Significant Accounting Policies
Investments are valued and reported at fair value.
Plan Description
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 of Membership Total
Inactive plan members retired prior to March 1, 1970 0
Inactive plan members retired March 1, 1970 or after 10
Active Plan Members 0
Total 10
Benefits Provided
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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
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
It is the policy of the City of Tukwila to invest public funds in a manner that will provide maximum security with the
highest investment return while meeting the daily cash flow demands of the City, while conforming to all state and
local statutes governing the investment of public funds.
The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the
changing amount actually invested.
Concentrations. Approximately 70% of investments are in a long-term government bond.
City’s Net Pension Liability
The components of the City's net pension liability at December 31, 2018 are as follows:
Total pension liability $ 1,252,079
Less: Plan fiduciary net position (1,442,485)
City’s net pension liability $ (190,406)
Plan fiduciary net position as a
percentage of the total pension liability 115.21%
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Total Pension Liability 2014 2015 2016 2017 2018
Service cost ‐ ‐ ‐ ‐ ‐
Interest 50,098 49,716 49,332 38,796 ‐
Changes of benefit terms ‐ ‐ ‐ ‐ ‐
Difference between expected & actual
experience ‐ (2,442) (311,190) ‐ (2,810)
Changes of assumptions ‐ ‐ (62,728) ‐ (177,772)
Benefits payments, included refunds of
employee contributions (61,863) (58,277) (59,988) (69,186) 17,700
Net change in total pension liability (11,765) (11,003) (384,574) (30,390) (162,882)
Total pension liability ‐ beginning 1,852,693 1,840,928 1,829,925 1,445,351 1,414,961
Total pension liability ‐ ending (a)1,840,928 1,829,925 1,445,351 1,414,961 1,252,079
Plan Fiduciary Net Position
Contributions ‐ employer 64,114 63,590 66,360 68,848 (139)
Contributions ‐ employee ‐ ‐ ‐ ‐ ‐
Net investment income 1,805 2,667 7,988 39,157 (39,477)
Benefit payments, including refunds of
employee contributions (61,863) (58,277) (59,988) (69,186) 17,700
Administrative expense ‐ (4,500) (4,500) (4,624) 1,124
Other ‐ ‐ ‐ ‐ 2,716
Net change in plan fiduciary net position 4,056 3,480 9,860 34,195 (18,076)
Plan fiduciary net position ‐ beginning 1,408,970 1,413,026 1,416,506 1,426,366 1,460,561
Plan fiduciary net position ‐ ending (b)1,413,026 1,416,506 1,426,366 1,460,561 1,442,485
City's net pension liability ‐ ending (a) ‐ (b)427,902 413,419 18,985 (45,600) (190,406)
Plan fiduciary net position as a percent of
total pension liability 76.76% 77.41% 98.69% 103.22% 115.21%
Covered employee payroll ‐ ‐ ‐ ‐ ‐
City net pension liability as a percent of
covered employee payroll n/a n/a n/a n/a n/a
Schedule of Changes in the City's Net Pension Liability and Related Ratios
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2018, the City of Tukwila reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
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
67,508 -
Totals $67,508 -
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,
2018. 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 31:
2019 $ 25,053
2020 21,358
2021 13,204
2022 7,893
2023 -
TOTAL $ 67,508
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of December 31, 2017, using the following
actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.75%
Salary increases 3.75%
Investment rate of return 3.25%
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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
The discount rate used to measure the total pension liability was 3.25%. The projection of cash flows used to
determine the discount rate assumed City contributions were equal to the actuarially calculated contribution of a
10-year closed amortization of the unfunded actuarial liability as of January 1, 2014 plus assumed administrative
expenses. This amount includes revenue received from Fire Insurance premiums. Based on this assumption, the
pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments for
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 3.25%, as well as what the net pension liability
would be if it were calculated using a discount rate that is 1-percentage-point lower, 2.25%, or 1-percentage point
higher, 3.25%, than the current rate:
Firemen’s net pension
liability
1% Decrease Current Discount
Rate
1% Increase
$ (56,306) $ (190,406) $ (305,419)
Basis of Valuation
A general summary of the substantive plan used as the basis of the valuation follows.
Applicable Statutes RCW 41.16, 41.18, 41.26
Benefits 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).
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).
Survivor 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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
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.
Survivor Eligibility: spouse or child
Amount of benefit:
33.3% to widow or children only.
45.8% to widow and one child.
47.6% to widow and two children.
50.0% to widow and three children.
Duty Death Benefit Eligibility: spouse or child
Amount of benefit: If spouse — 50% of salary plus an additional 5% of salary
per child; maximum benefit of 60% of salary. If no spouse — 50% of salary to
children.
Non-Duty Death Benefit Eligibility: spouse or child
Amount of benefit: provisions the same as Survivor's Benefit under Non-Duty
Disability Retirement.
Special Provisions Under disability or death benefits, a surviving spouse may elect a lump-sum
payment of $5,000 in lieu of future monthly benefits.
Vesting Termination after 20 years of service (RCW 41.18.130) or five years of service
(RCW 41.26.090).
Deferred Benefit Commences: when a firefighter would have had 25 years of service (RCW
41.18.130) or age 50 (RCW 41.26.090).
Amount of benefit: 2% of salary for each year of service. Other provisions
apply, see statutes.
Death while vested prior to commencement of benefits: payment of firefighters
deferred benefit to spouse or child.
Postretirement Increase
Benefits Payable
Under LEOFF
Annual increase proportionate to the increase in the Seattle-area CPI.
Minimum increase at least 2% each year.
Type 1 Escalation by salary in proportion to current salary or rank from which the
firefighter retired.
Type 2 Annual increase proportionate to the increase in the Seattle-area CPI.
Minimum increase at least 2% each year.
Applicability Type 1 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. Type 2 applies to all other types of monthly benefits
Minimum Benefit After April 25, 1973, a minimum benefit of $300 per month to all retired
firefighters and their survivors. This minimum is increased by the CPI.
Funeral Benefit $500 RCW 41.18.140, no provision under RCW 41.26.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Participant Summary
December 31, 2018 - Age and service determined as of the census date.
LEOFF Plan 1 (Firemen’s Pension) Inactive Participants
Age Service
Retirees
Disabled
Retirees
Surviving
Spouses
Total
< 65 0 0 0 0
65 – 69 0 0 0 0
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, 2018:
Paid by City Paid by LEOFF
$5,696 $38,526
The information presented in the preceding required schedules were determined as part of the actuarial valuations
at the dates indicated.
The key actuarial assumptions used for the December 31 valuation were:
Assumption Rates
Actuarial Cost Method Entry Age Normal Level Percentage of Salary
Asset Valuation Method Fair Market Value
Measurement Date December 31, 2017
Inflation Rate 2.75%
Discount Rate (or Investment
Return)
Based on the long-term expected rate of return on
pension plan investments assumption on the nature
and mix of current and expected pension plan assets
over a period of time representative of the expected
length of time between the first day of service and date
of the last benefit payment. The rate of 3.25% was
selected.
Cost of Living 2.75%, based on 2014 SSA OASDI report and City
input.
Salary Increases (for calculated
benefit increases based on
rank)
3.75%, based on City input.
Healthy Mortality
RP-2014 mortality table (adjusted to 2006), total
dataset, fully generational with mortality improvement
scale MP-2018 setback one year for males and set
forward one year for females.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Disabled Mortality
RP-2014 mortality table (adjusted to 2006), total
dataset, fully generational with mortality improvement
scale MP-2018 set forward two years for males and
females.
Termination Rates n/a
Disability n/a
Retirement n/a
Spouse Age Assumed females are three years younger than males.
NOTE 9 – DEFINED BENEFIT OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS
The following table represents the aggregate OPEB amounts for all plans subject to the requirements of GASB
Statement 75 for the year 2018:
OPEB Liabilities 14,694,242$
OPEB Assets ‐$
Deferred outflows of resources 369,806$
Deferrred inflows of resources ‐$
OPEB expenses/expenditures (11,258,582)$
Aggregate OPEB Amounts
Plan Description
The City of Tukwila's LEOFF Plan 1 (the Plan) is a single-employer defined-benefit healthcare plan administered
by the City. The Plan provides medical, prescription drug, dental, Medicare Part B premiums, long-term care, and
vision expenses for LEOFF 1 retirees. The Plan does not cover dependent spouses and children. The Plan does
not issue a separate standalone financial report.
Benefits Provided
As mandated by RCW 41.26, RCW 41.18, and RCW 41.20, the City reimburses 100% of allowable healthcare costs
for LEOFF 1 retirees. All firefighters and law enforcement officers employed between 3/1/1970 and 10/31/1977 are
members of a single employer defined benefit OPEB plan and are provided lifetime insurance coverage for medical,
hospital and nursing care costs. These benefits are accounted for in Police and Fire Pension and Relief Funds and
are considered, in substance, a postemployment healthcare plan administered by, but not part of, the Police and
Fire Pension Plans. Extraordinary health and dental expenses, as determined by the Pension Board, require prior
approval. Insurance policies for this benefit are underwritten as part of the City’s overall insurance program. The
LEOFF l OPEB plans are closed to new entrants.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
The City pays a monthly insurance premium to the Employee Health Care Fund for each retiree. The premium is
less for Medicare age retirees, and the City reimburses retirees for the Medicare premiums. Medicare is the primary
payer for retirees age 65 and over, and Cigna Administrators pays claims for retirees under age 65. The members’
necessary hospital, medical, and nursing care expenses not payable by workers’ compensation, Medicare, or
insurance provided by another employer, are covered.
Employees Covered by Benefit Terms
At December 31, 2018, the following employees were covered by the benefit terms:
Contributions
The plan is funded on a pay-as-you-go basis and there are no assets accumulated in a qualifying trust.
The authority to establish and amend benefits is determined by the LEOFF board.
Net OPEB Liability
The City’s net OPEB liability was measured as of December 31, 2017, and the total OPEB liability used to calculate
the net OPEB liability was determined by an actuarial valuation as of December 31, 2017.
Assumptions and Other Inputs
The total OPEB liability in the December 31, 2017 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
Inflation: 2.50%
Salary increases: 3.000%.
Investment rate of return: 3.25%
Healthcare cost trend rates: 6.50% in the first year, trending down to 3.84% over 56 years. Mortality rates were
based on tables from the Society of Actuaries.
The discount rate used to measure the total OPEB liability is 3.25%. The City's OPEB Plan is an unfunded plan,
therefore the discount rate was set to the rate of tax-exempt, high-quality 20-year municipal bonds, as of the
valuation date.
The measurement date of the total OPEB liability and the date of the actuarial valuation is December 31, 2017.
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The net OPEB liability of the City,
as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are
one percentage point lower (5.50%) or one percentage point higher (7.50%) than current healthcare cost trend rates
follows:
Inactive employees or beneficiaries currently receiving benefits 34
Inactive employees entitled to but not yet receiving benefits 0
Active employees 0
Total 34
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
1% Decrease (5.8%)
Current Healthcare Cost
Trend Rate (6.8%) 1% Increase (7.8%)
5.50% Decreasing to
2.84%
6.50% Decreasing to
3.84% 7.50% Decreasing to 4.84%
Total OPEB Liability $13,112,161 $14,694,242 $16,545,989
Sensitivity of the net OPEB liability to changes in the discount rate. The net OPEB liability of the City, as well as
what the City's net OPEB liability would be if it were calculated using a discount rate that is one percentage point
lower (2.25%) or one percentage point higher (4.25%) follows:
1% Decrease (2.25%)
Current Discount Rate
(3.25%) 1% Increase (4.25%)
Total OPEB Liability $16,690,463 $14,694,242 $13,031,627
Changes in the Total OPEB Liability – City of Tukwila LEOFF Plan 1
Balance as of December 31, 2017 26,383,115$ -$ 26,383,115$
Changes:
Service Cost - - -
Interest 469,303 - 469,303
Changes of Benefit Terms - - -
Difference Between Expected
and Actual Experience (3,780,437) -(3,780,437)
Changes of Assumptions (7,947,448) -(7,947,448)
Contributions
Employer - City's Contribution - - -
Employer - Implicit Subsidy - - -
Employee - - -
Net Investment Income - - -
Benefit Payments (430,291) - (430,291)
Implicit Rate Subsidy Fulfilled - - -
Administrative Expenses - - -
Net Changes (11,688,873) -(11,688,873)
Balance as of December 31, 2018 14,694,242$ -$ 14,694,242$
Total OPEB
Liability
Plan Fiduciary
Net Position
Total OPEB
Liability
For the year ended December 31, 2018, the City recognized an OPEB expense of $ -11,258,582.
Changes in assumptions that affected measurement of the total OPEB liability since the prior measurement date
include changes in premiums and claims, mortality, and trends.
Development of Per Capita Long Term Care Costs were based on Society of Actuaries Long Term Care Experience Committee
Intercompany Study 1984-2004, November 2007.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
At December 31, 2018, the City reported deferred outflows of resources and deferred inflows of resources related
to OPEB from the following sources:
Deferred Outflows of Resources Deferred Inflows of Resources
Differences between expected
and actual experience ‐$ ‐$
Changes of assumptions ‐$ ‐$
Payments subsequent to the
measurement date 369,806$ ‐$
Total 369,806$ ‐$
Deferred outflows of resources of $369,806 resulting from payments subsequent to the measurement date will be
recognized as a reduction of the total OPEB liability in the year ended December 31, 2019.
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.
2016 UTGO bonds in the amount of $32.99 million were issued after voters approved a $77.385 million bond
measure that will fund a justice center, rebuild 3 fire stations and provide fire 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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
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.
2018 LTGO bonds were issued to fund the purchase of land in order to consolidate the Public Works function
at one location.
Special assessment bonds are issued to finance construction of local improvement district (LID) projects and are
repaid through assessments collected from property owners benefiting from related improvements. Although the
bonds are secured by liens against assessed properties, the City is required under state law to establish a guaranty
fund to provide a means of paying LID bond debt service obligations in the event there are insufficient resources in
the LID debt service fund. The special assessment bonds are not general obligation debt, but the City is obligated
in some manner to cover the interest on the bonds. Therefore, the bonds are reported as Special Assessment Debt
with Governmental Commitment.
Special assessments outstanding at year-end are as follows:
2013 special assessment bonds LID No. 33 were issued to reimburse the City for a portion of the costs of a
major reconstruction of Klickitat and Southcenter Parkway to improve access to the urban center.
Business-Type Activities Long-Term Debt
Revenue bond indebtedness issued to fund proprietary activities is recorded in proprietary funds. Debt service
payments are made from operating revenues generated by the proprietary funds. In proprietary funds, bonds are
displayed net of unamortized premium or discount; annual interest expense is decreased by amortization of debt
premium and increased by the amortization of debt 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 at year-end are as follows:
2015 water/sewer/SWM 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 of Commerce, Local Government & Infrastructure Division for qualifying projects and are
a direct responsibility of the City. This debt is repaid by proprietary fund revenues.
Public Works Trust Fund loans outstanding at year-end are as follows:
2003 loan to install new sewers in the Duwamish neighborhood. The project upgraded water and surface
water infrastructure.
2004 loan to install new water, sewer, and surface water 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.
2014 loan to install sewer liners in the City’s commercial business district of Southcenter. 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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
The schedules that follow summarize the long-term debt transactions of the City for the year ended December 31,
2018.
CHANGES IN LONG-TERM LIABILITIES SUMMARY – GOVERNMENTAL ACTIVITIES
DUE TO OTHER
GENERAL SPECIAL COMPENSATED OTHER
POST EMPLOY-NET PENSION
OBLIGATION ASSESSMENT ABSENCES GOVERNMENTS MENT BENEFITS LIABILITY TOTAL
Outstanding 01/01/2018 59,214,505$ 4,805,000$ 3,583,505$ 5,914,400$ 10,487,883$ 9,745,053$ 93,750,346$
Added 18,365,000 - 3,462,032 - 4,206,359 26,033,391
Retired / redeemed (3,607,196) (485,000) (3,583,505) (184,800) - (2,895,576) (10,756,077)
Outstanding 12/31/2018 73,972,309$ 4,320,000$ 3,462,032$ 5,729,600$ 14,694,242$ 6,849,477$ 109,027,660$
Add Premiums, Subtract Discounts 5,923,595
Total Long-Term Liabilities 114,951,255$
Debt Service to Maturity
Following are schedules showing the debt service requirements to maturity for the City’s long-term debt, excluding
compensated absences, OPEB, and pensions.
Year Ended
December
31 Principal Interest Principal Interest Principal Interest Total
2019 3,828,521$ 3,104,087$ 190,800$ 358,788$ 445,000$ 243,638$ 8,170,834$
2020 2,051,461 2,950,337 - 354,018 445,000 223,613 6,024,429
2021 2,195,560 2,873,341 381,200 344,170 445,000 203,588 6,442,859
2022 5,877,766 2,785,599 238,000 327,624 445,000 183,563 9,857,552
2023 3,919,000 2,561,077 222,400 314,593 445,000 163,574 7,625,643
2024-2028 17,558,000 10,357,818 1,254,000 1,346,696 2,095,000 478,375 33,089,889
2029-2033 21,144,000 6,225,952 1,541,200 892,670 - - 29,803,822
2034-2038 17,398,000 1,743,261 1,902,000 325,176 - - 21,368,437
Totals 73,972,309$ 32,601,469$ 5,729,600$ 4,263,737$ 4,320,000$ 1,496,349$ 122,383,464$
Governmental Activities
General Obligation Due to Other Governments Special AssessmentsBonds
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
CHANGES IN LONG-TERM LIABILITIES – GOVERNMENTAL ACTIVITIES
Interest OUTSTANDING OUTSTANDING Due Within
ITEM Rates Maturity Authorized 12/31/2017 ISSUED REDEEMED 12/31/2018 One Year
GOVERNMENTAL ACTIVITIES:
Limited General Obligation (LTGO) Bonds Payable:
2008 Refunding-Streets/Facilities 4.00-6.00 12/01/19 6,180,000 1,485,000 - 720,000 765,000 765,000
2010 Streets / Equipment 2.00-5.41 12/01/24 5,870,000 3,170,000 - 415,000 2,755,000 425,000
2011 Refunding Streets (2003 GO)1.25-4.00 12/01/23 4,620,000 2,925,000 - 445,000 2,480,000 460,000
2013 LTGO-MPD Pool Improve 2.00-4.00 12/01/22 1,000,000 513,505 - 99,196 414,309 97,521
2014 LTGO-Urban Renewal 0.85-4.86 12/01/34 3,850,000 3,410,000 - 153,000 3,257,000 156,000
2015 LTGO-Interurban, BAR 2.25-3.00 12/01/35 5,825,000 5,380,000 - 230,000 5,150,000 240,000
2017 LTGO-42nd & 53rd Streets 3.00-3.50 12/01/37 8,180,000 8,180,000 - 305,000 7,875,000 315,000
2017 Refunding Line of Credit 2.60-3.00 12/01/22 2,276,000 2,276,000 - - 2,276,000 -
2018 LTGO - Public Works Shops 4.00-5.00 12/01/38 18,365,000 - 18,365,000 - 18,365,000 -
Total LTGO Bonds Payable 56,166,000 27,339,505 18,365,000 2,367,196 43,337,309 2,458,521
Unlimited General Obligation (UTGO) Bonds Payable:
2016 UTGO - Public Safety 4.50-5.00 12/01/35 77,385,000 31,875,000 - 1,240,000 30,635,000 1,370,000
Total UTGO Bonds Payable 77,385,000 31,875,000 - 1,240,000 30,635,000 1,370,000
Issuance premiums - 4,804,720 1,809,036 690,161 5,923,595 -
Net Bonds Payable 133,551,000 64,019,225 20,174,036 4,297,356 79,895,904 3,828,521
Due to Other Governments
2009 Facility SCORE 3.00-6.62 01/01/39 6,898,800 5,914,400 - 184,800 5,729,600 190,800
Total Due Other Governments 6,898,800 5,914,400 - 184,800 5,729,600 190,800
Special Assessment Debt
Klickitat Urban Access Project 3.150-5.375 01/15/29 6,687,500 4,805,000 - 485,000 4,320,000 445,000
Total Special Assessment Debt 6,687,500 4,805,000 - 485,000 4,320,000 445,000
Other Post-Employement Benefits Payable 10,487,883 4,206,359 - 14,694,242 -
Net Pension Liability 9,745,053 - 2,895,576 6,849,477 -
Compensated Absences:3,583,505 3,462,032 3,583,505 3,462,032 -
Total Governmental Funds 147,137,300$ 98,555,066$ 27,842,427$ 11,446,237$ 114,951,255$ 4,464,321$
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.
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CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
CHANGES IN LONG-TERM LIABILITIES SUMMARY – BUSINESS-TYPE ACTIVITIES
REVENUE PUBLIC WORKS
BONDS TRUST FUND COMPENSATED NET PENSION
UTILITIES LOANS ABSENCES LIABILITY TOTAL
Outstanding 01/01/2018 1,454,422$ 4,447,522$ 318,397$ 1,799,011$ 8,019,352$
Added - - - - -
Retired / redeemed (149,659) (599,467) (5,575) (502,197) (1,256,898)
Outstanding 12/31/2018 1,304,763$ 3,848,055$ 312,822$ 1,296,814$ 6,762,454$
Debt Service to Maturity
Following are schedules showing the debt service requirements to maturity for the City’s long-term debt, excluding
compensated absences and net pension liability.
Year Ended
December
31 Principal Interest Principal Interest Total
2019 150,736$ 30,531$ 599,468$ 19,240$ 799,976$
2020 156,614 27,004 599,468 16,243 799,329
2021 157,178 23,339 599,468 9,246 789,231
2022 162,531 19,662 573,417 10,248 765,858
2023 162,560 15,858 573,417 7,381 759,217
2024-2028 515,144 24,310 738,117 9,867 1,287,438
2029-2033 - - 164,700 2,059 166,759
Totals 1,304,763$ 140,705$ 3,848,055$ 74,285$ 5,367,807$
Revenue Bonds Public Works Trust Fund
Loans
Business-Type Activities
97
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
CHANGES IN LONG-TERM LIABILITIES – BUSINESS-TYPE ACTIVITIES
Interest OUTSTANDING OUTSTANDING Due Within
ITEM Rates Maturity Authorized 12/31/2017 ISSUED REDEEMED 12/31/2018 One Year
BUSINESS-TYPE ACTIVITIES:
Bonds Payable:
2015 Water/Sewer/SWM Refunding 2.34 12/01/26 1,742,527 1,454,422 - 149,659 1,304,763 150,736
Total Bonds Payable 1,742,527 1,454,422 - 149,659 1,304,763 150,736
Public Works Trust Fund Loans:
2003 Loan-Water/Sewer 0.50 06/01/21 273,870 57,817 -14,458 43,359 14,453
2003 Loan-Surface Water 0.50 06/01/21 219,725 46,385 -11,591 34,794 11,598
2004 Loan-Water/Sewer 0.50-2.00 06/01/24 5,016,000 1,910,204 - 272,886 1,637,318 272,886
2004 Loan-Surface Water 0.50-2.00 06/01/24 684,000 260,482 -37,212 223,271 37,212
2004 Loan-Surface Water 1.00 06/01/24 4,196,056 1,555,009 - 222,144 1,332,865 222,144
2014 Loan-Sewer 0.5 06/01/32 750,000 617,625 -41,175 576,450 41,175
Total Public Works Trust Fund Loans 11,139,651 4,447,522 - 599,467 3,848,055 599,468
Net Pension Liability 1,799,011 - 502,197 1,296,814 -
Compensated Absences 318,397 -5,575 312,822 18,224
Total Business-Type Activities 12,882,178$ 8,019,352$ -$ 1,256,898$ 6,762,454$ 768,428$
TOTAL ALL FUNDS 160,019,478$ 106,574,417$ 27,842,427$ 12,703,135$ 121,713,709$ 5,232,749$
LONG-TERM LIABILITIES RECONCILIATION
Governmental
Activities
Business-Type
Activities
Balance
12/31/2018
General obligation bonds 73,972,309$ -$ 73,972,309$
Special assessment bonds 4,320,000 - 4,320,000
Revenue bonds - 1,304,763 1,304,763
Public Works Trust Fund loans - 3,848,055 3,848,055
Due to Other Governments 5,729,600 - 5,729,600
Employee leave benefits 3,462,032 312,822 3,774,854
Net Premiums/Discounts 5,923,595 - 5,923,595
Other Post-Employment Benefit s 14,694,242 - 14,694,242
Net Pension Liability 6,849,477 1,296,814 8,146,291
Total long-term debt 114,951,255$ 6,762,454$ 121,713,709$
Debt Limit Capacities
State law provides that debt cannot be incurred in excess of the following percentages of the value of the taxable
property of the City: 1.5% without a vote of the people; 2.5% with a vote of the people; 5.0% with a vote of the
people, provided the indebtedness in excess of 2.5% is for utilities; 7.5% with a vote of the people, provided the
indebtedness in excess of 5.0% is for parks or open space development.
98
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
At December 31, 2018, the debt limits for the City were as follows:
SUMMARY OF DEBT LIMIT CAPACITIES
Without a Vote
Item 1.5% 2.5% 5.0% 7.5%
Legal Limit 100,107,599$ 166,845,998$ 333,691,996$ 500,537,994$
Outstanding Net
Indebtedness 85,486,064 85,486,064 85,486,064 85,486,064
Margin Available 14,621,534$ 81,359,934$ 248,205,932$ 415,051,930$
-------------With a Vote of the People----------
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, 2018,
$1,590,000 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 fifth of 15
annual installments for the assessments was due by October 16, 2018.
As of December 31, 2018, all LID Special Assessments were current, nothing was delinquent. During 2018, two
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 2019.
99
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
Estimated Arbitrage Rebate
The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt of over $5 million to make payments to
the United States Treasury of investment interest received at yields that exceed the issuer's tax-exempt borrowing
rates. Payments of arbitrage re bate 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, 2018 is $0 for its tax-exempt bond
issues subject to the Tax Reform Act.
NOTE 11 – COMMITMENTS
Construction Commitments. As of December 31, 2018, contractual obligations to contractors for construction
projects total $14,054,650.
Governmental Activities
Remaining
Commitment
42nd Ave S Phase III 227,176$
Strander Blvd. Extension Phase III 2,963,396
Public Safety Plan 5,957,328
Major Maintenance on 3 Bridges 209,653
Boeing Access Road over BNRR 1,417,315
Boeing Access Road Bridge over Airport Way 305,482
Baker Blvd Non-Motorized 63,809
53rd Avenue South 1,369,198
Other governmental projects 134,695
Total Governmental Activities 12,648,051$
Business-Type Activities Projects
Remaining
Commitment
GIS Inventory, Asset Management System 146,101$
Tukwila 205 Levee Certification Phase I & II 139,242
42nd Avenue South 45,968
Andover Park East Water and Sewer Replacement 298,332
East Marginal Way Stormwater Outfalls 278,870
Green the Green 132,635
Small Drainage 157,062
Other Utility related projects 208,390
Total Business-Type Activities 1,406,599$
Total Construction Commitments 14,054,650$
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.
100
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
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
Superfund site. In 2014, the Environmental Protection Agency estimated the total cost for the waterway cleanup to
be $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’s share of liability should be low compared to other liable parties. A multi-
year confidential process to allocate Duwamish Waterway cleanup costs is being undertaken by the major liable
parties. Once that process is completed and communicated to the City, which could occur in 2019, the City will be
in a better position to estimate its potential liability for cleanup costs within the Lower Duwamish Waterway
Superfund site.
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 WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling
mechanism for jointly purchasing insurance, jointly self-insuring, and / or jointly contracting for risk management
services. WCIA has a total of 160 members.
New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A
one-year withdrawal notice is required before membership can be terminated. Termination does not relieve a former
member from its unresolved loss history incurred during membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile,
police, errors or omissions, stop gap, employment practices and employee benefits liability. Limits are $4 million
per occurrence in the self-insured layer, and $16 million in limits above the self-insured layer is provided by
reinsurance. Total limits are $20 million per occurrence subject to aggregates and sublimits. The Board of Directors
determines the limits and terms of coverage 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 sublimits.
In-house services include risk management consultation, loss control field services, and claims and litigation
administration. WCIA contracts for certain claims investigations, consultants for personnel and land use issues,
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, loss adjustment, reinsurance and other
administrative expenses. As outlined in the interlocal, WCIA retains the right to additionally assess the membership
for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by investment of WCIA’s assets
in financial instruments which comply with all State guidelines.
A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The
Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the
organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting
the day to day operations of WCIA.
101
The City insures its buildings, equipment, and vehicle property insurance with WCIA. They self -fund up to
$250,000 with standard property insurance purchased above that amount. Traveler’s insures boiler
machinery and provides for employee dishonesty coverage.
The City has a Risk Management and a Safety Committee to oversee risk management. In addition, the
WCIA provides support for a proactive risk analysis program and a loss control manual.
There were no significant reductions in insurance coverage in the past year. During the year under audit
and in the past three years, no settlement has exceeded insurance coverage.
The City self-insures for unemployment benefits. This is a budgeted expenditure each year and the City
paid $38,356 in unemployment in 2018. This expense is budgeted in the 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. A third -party administrator,
Healthcare Management Administrators, Inc., provides claims administration. The City has a stop -loss
policy with Symetra which provides an individual limit of $175,000. Each fund contributes an appropriate
amount each year to pay premiums and claims. Liabilities include an actuarially determined amount for
claims that have been incurred but not reported (IBNR’s) and a contingency reserve equal to 2.5 times the
IBNR liability.
The IBNR liability is estimated using actuarial methods. Based on results as well as a review of actual run -
out, average lag days of 54.5 days for medical, 23.2 days for pharmacy, 31.4 days for dental, and 46.9
days for vision were selected. Using average lag days and net adjusted paid claims, the IBNR liability was
estimated as of May 31, 2018. Next, the estimated IBNR liability as of December 31, 2018 was developed
by trending the May 31, 2018 estimates to year-end. No explicit margin for claims fluctuations was added
because the amount of the reserve in the fund balance is sufficient to cover expected claims fluctuations.
Administrative costs were then added.
The following table reflects changes in the balances of claims liabilities for 2018 and 2017.
SUMMARY OF HEALTH CARE CLAIM LIABILITIES
2018 2017 2018 2017
Claim Liabilities at Beginning of Year 1,932,248$ 1,858,250$ 196,659$ 191,250$
Claim expenses:
Current year and changes in estimates 6,223,659 6,329,189 339,056 430,289
Claim payments and expenses (6,835,748) (6,255,191) (389,568) (424,880)
Claim Liabilities at End of Year 1,320,159$ 1,932,248$ 146,147$ 196,659$
ITEM Active Employees Retired Employees LEOFF I
NOTE 14 – SUBSEQUENT EVENT
In the 4th quarter of 2019, the City plans to issue the remaining voter approved bonds of $40.885
million. Proceeds will be used to fund the Justice Center and fire station projects as outlined in the Public
Safety Plan. The City also plans to issue up to $25 million in limited tax general obligation (LTGO) bonds,
also to fund not only the Justice Center and fire station projects but the Public Works Shops facility project
as well. City Council has not yet approved the ordinances to issue the bonds but is expected to authorize
the sale of both the UTGO and LTGO bonds in July of 2019.
Prior to the end of 2019, the City expects to sell property associated with the Tukwila Village Development
project for construction of a 6-story mixed-use facility containing 79 residential rental housing units, which
qualify as senior housing, and a 5-story mixed-use facility containing 125 residential housing units that
also qualify as senior housing. Total sell price is estimated to be $2.3 million.
CITY OF TUKWILA: 2018 CAFR NOTES TO THE FINANCIAL STATEMENTS
102
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes 49,073,331$ 49,073,331$ 46,896,613$ (2,176,718)$
Licenses and permits 2,347,090 2,347,090 4,875,454 2,528,364
Intergovernmental 4,295,559 4,437,665 4,637,018 199,353
Charges for services 3,282,219 3,325,219 3,290,960 (34,259)
Fines and Forfeitures 306,129 306,129 291,604 (14,525)
Investment earnings 158,147 158,147 419,092 260,945
Miscellaneous 208,600 215,200 193,568 (21,632)
Total Revenues 59,671,075 59,862,781 60,604,309 741,528
EXPENDITURES:
Current:
General Government 10,188,099 10,521,099 10,365,988 155,111
Economic environment 4,558,040 4,558,040 4,308,130 249,910
Physical environment 2,029,363 2,029,363 1,805,457 223,906
Public Safety 31,561,730 31,723,800 30,758,088 965,712
Culture and recreation 4,785,966 4,862,746 4,620,127 242,619
Transportation 3,149,643 3,149,643 3,098,042 51,601
Capital outlay 30,000 30,000 80,033 (50,033)
Total Expenditures 56,302,841 56,874,691 55,035,865 1,838,826
Excess of Revenues And Expenditures 3,368,234 2,988,090 5,568,444 2,580,354
OTHER FINANCING SOURCES (USES):
Transfers in 6,050,000 6,050,000 - (6,050,000)
Transfers out (9,539,621) (9,470,580) (4,023,156) 5,447,424
Total Other Financing Sources And Uses (3,489,621) (3,420,580) (4,023,156) (602,576)
Net change in fund balances (121,387) (432,490) 1,545,288 1,977,778
Fund balances - beginning 17,262,169 17,019,669 19,072,725 2,053,056
Fund Balances - Ending 17,140,782$ 16,587,179$ 20,618,013$ 4,030,834$
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31,2018
103
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 ac counting
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 cl ass. 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
The information presented in the following required schedules was determined as part of the actuarial valuations
at the dates indicated.
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.
104
COST SHARING MULTIPLE EMPLOYER DEFINED BENEFIT PENSION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
PERS 1
Fiscal Year Ending
Employer's
proportion of the
net pension
liability (asset)
Employer's
proportionate share
of the net pension
liability
State's
proportionate
share of the net
pension liability
(asset) associated
with the employer
Total: Proportionate
share of the net
pension liability
(asset)Covered payroll
Employer's
proportionate
share of the net
pension liability
as a percentage
of covered
payroll
Plan fiduciary
net position as
a percentage
of the total
pension liability
June 30, 2015 0.135736%7,100,255$ -$ 7,100,255$ 15,561,015$ 45.63%59.10%
June 30, 2016 0.131354%7,054,328 - 7,054,328 15,736,921 44.83%57.03%
June 30, 2017 0.127058%6,029,001 - 6,029,001 16,022,842 37.63%61.24%
June 30, 2018 0.122630%5,476,697 - 5,476,697 16,327,082 33.54%63.22%
PERS 2/3
Fiscal Year Ending
Employer's
proportion of the
net pension
liability (asset)
Employer's
proportionate share
of the net pension
liability
State's
proportionate
share of the net
pension liability
(asset) associated
with the employer
Total: Proportionate
share of the net
pension liability
(asset)Covered payroll
Employer's
proportionate
share of the net
pension liability
as a percentage
of covered
payroll
Plan fiduciary
net position as
a percentage
of the total
pension liability
June 30, 2015 0.173592%6,202,541$ -$ 6,202,541$ 15,406,589$ 40.26%89.20%
June 30, 2016 0.166622%8,389,286 - 8,389,286 15,579,718 53.85%85.82%
June 30, 2017 0.161787%5,621,325 - 5,621,325 15,861,514 35.44%90.97%
June 30, 2018 0.156335%2,669,281 - 2,669,281 16,228,608 16.45%95.77%
PSERS
Fiscal Year Ending
Employer's
proportion of the
net pension
liability (asset)
Employer's
proportionate share
of the net pension
liability
State's
proportionate
share of the net
pension liability
(asset) associated
with the employer
Total: Proportionate
share of the net
pension liability
(asset)Covered payroll
Employer's
proportionate
share of the net
pension liability
as a percentage
of covered
payroll
Plan fiduciary
net position as
a percentage
of the total
pension liability
June 30, 2015 0.052748%9,628$ -$ 9,628$ 154,426$ 6.23%95.08%
June 30, 2016 0.048428%20,581 - 20,581 157,203 13.09%90.41%
June 30, 2017 0.455650%8,928 - 8,928 161,328 5.53%96.26%
June 30, 2018 0.025080%311 - 311 98,474 0.32%99.79%
LEOFF 1
Fiscal Year Ending
Employer's
proportion of the
net pension
liability (asset)
Employer's
proportionate share
of the net pension
liability
State's
proportionate
share of the net
pension liability
(asset) associated
with the employer
Total: Proportionate
share of the net
pension liability
(asset)Covered payroll
Employer's
proportionate
share of the net
pension liability
as a percentage
of covered
payroll
Plan fiduciary
net position as
a percentage
of the total
pension liability
June 30, 2015 0.077944%(939,397)$ -$ (939,397)$ 76,144$ -1233.71%127.36%
June 30, 2016 0.077890%(802,490) (5,428,021) (6,230,511) - n/a 123.74%
June 30, 2017 0.082086%(1,245,425) (8,424,025) (9,669,450) - n/a 135.96%
June 30, 2018 0.083934%(1,523,823) (10,307,102) (11,830,925) - n/a 144.42%
LEOFF 2
Fiscal Year Ending
Employer's
proportion of the
net pension
liability (asset)
Employer's
proportionate share
of the net pension
liability
State's
proportionate
share of the net
pension liability
(asset) associated
with the employer
Total: Proportionate
share of the net
pension liability
(asset)Covered payroll
Employer's
proportionate
share of the net
pension liability
as a percentage
of covered
payroll
Plan fiduciary
net position as
a percentage
of the total
pension liability
June 30, 2015 0.519159%(5,335,916)$ (2,123,832)$ (7,459,748)$ 15,113,237$ -49.36%111.67%
June 30, 2016 0.510663%(2,970,169) (1,936,334) (4,906,503) 15,480,062 -31.70%106.04%
June 30, 2017 0.503269%(6,983,743) (4,530,224) (11,513,967) 15,743,133 -73.14%113.36%
June 30, 2018 0.480347%(9,752,091) (6,314,295) (16,066,386) 15,759,700 -101.95%118.50%
*Until a full 10-year trend is compiled, governments should present information only for those years of which information is available.
105
SCHEDULE OF EMPLOYER CONTRIBUTIONS
PERS 1
Fiscal Year Ending
Statutorily or
contractually
required
contributions
Less: Contributions
in relation to the
statutorily or
contractually
required
contributions
Contribution
deficiency
(excess)
Covered
Employee
Payroll
Contributions as a
percentage of
covered payroll
December 31, 2015 686,881$ (686,881)$ -$ 15,654,255$ 4.39%
December 31, 2016 752,418 (752,418) - 15,777,881 4.77%
December 31, 2017 789,712 (789,712) - 16,153,755 4.89%
December 31, 2018 846,714 (846,714) - 16,742,206 5.06%
PERS 2/3
Fiscal Year Ending
Statutorily or
contractually
required
contributions
Less: Contributions
in relation to the
statutorily or
contractually
required
contributions
Contribution
deficiency
(excess)
Covered
Employee
Payroll
Contributions as a
percentage of
covered payroll
December 31, 2015 873,248$ (873,248)$ -$ 15,498,171$ 5.63%
December 31, 2016 972,612 (972,612) - 15,616,400 6.23%
December 31, 2017 1,090,715 (1,090,715) - 16,024,008 6.81%
December 31, 2018 1,245,790 (1,245,790) - 16,629,084 7.49%
PSERS
Fiscal Year Ending
Statutorily or
contractually
required
contributions
Less: Contributions
in relation to the
statutorily or
contractually
required
contributions
Contribution
deficiency
(excess)
Covered
Employee
Payroll
Contributions as a
percentage of
covered payroll
December 31, 2015 10,105$ (10,105)$ -$ 156,084$ 6.47%
December 31, 2016 10,642 (10,642) - 161,481 6.59%
December 31, 2017 8,612 (8,612) - 129,747 6.64%
December 31, 2018 7,768 (7,768) - 113,122 6.87%
LEOFF 2
Fiscal Year Ending
Statutorily or
contractually
required
contributions
Less: Contributions
in relation to the
statutorily or
contractually
required
contributions
Contribution
deficiency
(excess)
Covered
Employee
Payroll
Contributions as a
percentage of
covered payroll
December 31, 2015 776,719$ (776,719)$ -$ 15,380,541$ 5.05%
December 31, 2016 787,110 (787,110) - 15,586,296 5.05%
December 31, 2017 815,548 (815,548) - 15,860,571 5.14%
December 31, 2018 855,040 (855,040) - 16,132,860 5.30%
*Until a full 10-year trend is compiled, governments should present information only for those years of which information is available.
106
FIREMEN’S PENSION TRUST FUND
Total Pension Liability 2014 2015 2016 2017 2018
Service cost - - - - -
Interest 50,098 49,716 49,332 38,796 -
Changes of benefit terms - - - - -
Difference between expected & actual
experience - (2,442) (311,190) - (2,810)
Changes of assumptions - - (62,728) - (177,772)
Benefits payments, included refunds of
employee contributions (61,863) (58,277) (59,988) (69,186) 17,700
Net change in total pension liability (11,765) (11,003) (384,574) (30,390) (162,882)
Total pension liability - beginning 1,852,693 1,840,928 1,829,925 1,445,351 1,414,961
Total pension liability - ending (a)1,840,928 1,829,925 1,445,351 1,414,961 1,252,079
Plan Fiduciary Net Position
Contributions - employer 64,114 63,590 66,360 68,848 (139)
Contributions - employee - - - - -
Net investment income 1,805 2,667 7,988 39,157 (39,477)
Benefit payments, including refunds of
employee contributions (61,863) (58,277) (59,988) (69,186) 17,700
Administrative expense - (4,500) (4,500) (4,624) 1,124
Other - - - - 2,716
Net change in plan fiduciary net position 4,056 3,480 9,860 34,195 (18,076)
Plan fiduciary net position - beginning 1,408,970 1,413,026 1,416,506 1,426,366 1,460,561
Plan fiduciary net position - ending (b)1,413,026 1,416,506 1,426,366 1,460,561 1,442,485
City's net pension liability - ending (a) - (b)427,902 413,419 18,985 (45,600) (190,406)
Plan fiduciary net position as a percent of
total pension liability 76.76%77.41%98.69%103.22%115.21%
Covered employee payroll - - - - -
City net pension liability as a percent of
covered employee payroll n/a n/a n/a n/a n/a
Schedule of Changes in the City's Net Pension Liability and Related Ratios
107
Schedule of Employer Contributions
Fiscal Year Ending
Statutorily
Determined
Contribution
Less: Contributions in
Relation to the
Statutorily Determined
Contribution
Contribution
Deficiency (Excess)
Covered
Payroll
Contribution as a
Percentage of Covered
Payroll
December 31, 2008 52,571$ 52,571$ -$ -$ n/a
December 31, 2009 48,537 48,537 - - n/a
December 31, 2010 49,989 49,989 - - n/a
December 31, 2011 54,865 54,865 - - n/a
December 31, 2012 52,249 52,249 - - n/a
December 31, 2013 56,962 56,962 - - n/a
December 31, 2014 64,114 64,114 - - n/a
December 31, 2015 63,590 63,590 - - n/a
December 31, 2016 66,360 66,360 - - n/a
December 31, 2017 68,848 68,848 - - n/a
December 31, 2018 (139) (139) - - n/a
Contributions are a portion of State Fire Insurance Premiums.
Schedule of Investment Returns
Schedule of Investment Returns
Annual money-weighted rate of
return, net of investment
expense
2011 0.12%
2012 0.20%
2013 0.17%
2014 0.13%
2015 0.19%
2016 0.56%
2017 2.75%
2018 -2.68%
Ten-year schedule required. However, until a full 10-year trend is compiled, information is presented for those
years where information is available.
108
2018
Total OPEB liability - beginning 26,383,115$
Service cost -
Interest 469,303
Changes in benefit terms -
Differences between expected and actual experience (3,780,437)
Changes of assumptions (7,947,448)
Benefit payments (430,291)
Other changes
Total OPEB liability - ending 14,694,242
Covered-employee payroll -
Total OPEB liability as a % of covered payroll n/a
Notes to Schedule:
*Until a full 10-year trend is compiled, only information for those years available is presented.
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75.
City of Tukwila
Schedule of Changes in Total OPEB Liability and Related Ratios
LEOFF Plan 1
For the year ended December 31, 2018
Last 10 Fiscal Years*
109
CITY OF TUKWILA: 2018 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 specific 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 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.
Facilities (Urban Renewal) – Established in 1988, this fund accounts for costs associated with property owned
by the City that will be utilized for redevelopment or renewal purposes.
110
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
General Government Improvements – This fund was established in 1992 to provide funding for minor capital
improvements not related to parks, land acquisition, or major building replacements.
Fire Improvements – This fund is to be used for the acquisition of land, development of land and construction
of fire facilities. Revenue for this fund comes primarily from fire impact fees.
111
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Total Total Total Total
Special Revenue Debt Service Capital Projects Governmental
Funds Funds Funds Funds
ASSETS:
Cash and cash equivalents 1,613,260$ 704,060$ 3,880,733$ 6,198,053$
Investments - 535,329 - 535,329
Taxes receivable 99,194 33,658 66,826 199,678
Other receivables - 2,136 - 2,136
Customer receivables - - 881,964 881,964
Due from other governmental units - - 23,979 23,979
Restricted Assets:
Cash and cash equivalents 212,063 - 167,136 379,199
Notes receivable - - 277,116 277,116
Capital assets held for resale - - 5,293,000 5,293,000
Total Assets 1,924,517$ 1,275,183 10,590,753 13,790,454
LIABILITIES AND FUND BALANCES:
Current liabilities
Accounts payable 73,204 - 602,356 675,560
Accrued w ages and benefits - - 6,949 6,949
Customer deposit - - 296,204 296,204
Total Liabilities 73,204 - 905,510 978,713
Deferred inflows of resources
Unavailable revenue-property tax - 33,658 - 33,658
Unavailable revenue-impact fee - - 277,116 277,116
Total Deferred Inflow s of Resources - 33,658 277,116 310,774
Fund balances:
Restricted 1,851,313 795,683 924,768 3,571,764
Assigned - 445,843 8,215,038 8,660,881
Assigned - 1% arts - - 268,321 268,321
Assigned 0 (0) (2,200) (2,200)
Total Fund balances 1,851,313 1,241,525 9,408,128 12,500,966
Total Liabilities and Fund Balances 1,924,517$ 1,275,183$ 10,590,753$ 13,790,454$
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2018
112
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Total Total Total Total
Special Revenue Debt Service Capital Projects Governmental
Funds Funds Funds Funds
REVENUES:
Taxes 833,990$ 2,797,731$ 648,265$ 4,279,986$
Charges for services - - 2,058,734 2,058,734
Intergovernmental - 52,466 1,204,468 1,256,934
Investment earnings 24,557 44,996 138,358 207,910
Miscellaneous 32,480 - 142,654 175,134
Total Revenues 891,027 2,895,193 4,192,479 7,978,699
EXPENDITURES:
Current:
General government - - 125,443 125,443
Economic environment 378,398 - - 378,398
Public safety 28,406 - - 28,406
Cultural and Recreation - - 232,012 232,012
Transportation - - 4,318,339 4,318,339
Debt service
Principal - 3,607,196 - 3,607,196
Interest - 2,720,958 - 2,720,958
Capital Outlay - - 4,615,102 4,615,102
Total Expenditures 406,804 6,328,154 9,290,896 16,025,853
Excess (deficiency) of revenues
Over (Under) Expenditures 484,223 (3,432,960) (5,098,417) (8,047,155)
OTHER FINANCING SOURCES (USES):
Transfers in - 3,554,479 288,190 3,842,669
Transfers out - - (3,900,000) (3,900,000)
Total Other Financing Sources And Uses - 3,554,479 (3,611,810) (57,331)
Net change in fund balances 484,223 121,518 (8,710,227) (8,104,486)
Fund balances - beginning 1,367,091 1,120,007 18,118,354 20,605,452
Fund Balances - Ending 1,851,313$ 1,241,525$ 9,408,128$ 12,500,966$
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31,2018
113
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Total
Special Revenue
Funds
ASSETS:
Cash and cash equivalents 1,588,891$ 24,370$ 1,613,260$
Taxes receivables 99,194 - 99,194
Current Assets Restricted:
Cash and cash equivalents - 212,063 212,063
Total Assets 1,688,084 236,433 1,924,517
LIABILITIES AND FUND BALANCES:
Accounts payable 70,459 2,745 73,204
Total Liabilities 70,459 2,745 73,204
Fund balances:
Restricted 1,617,625 233,688 1,851,313
Total Fund Balances 1,617,625 233,688 1,851,313
Total Liabilities and Fund Balances 1,688,084$ 236,433$ 1,924,517$
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2018
Hotel/Motel Tax Drug Seizure
114
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Total
Special Revenue
Funds
REVENUES:
Taxes 833,990$ -$ 833,990$
Investment earnings 22,258 2,298 24,557
Miscellaneous - 32,480 32,480
Total Revenue 856,248 34,779 891,027
EXPENDITURES:
Current:
Public safety - 28,406 28,406
Economic environment 378,398 - 378,398
Total Expenditures 378,398 28,406 406,804
Excess (deficiency) of revenues
Over (Under) Expenditures 477,851 6,372 484,223
Net change in fund balances 477,851 6,372 484,223
Fund balances - beginning 1,139,775 227,316 1,367,091
Fund Balances - ending 1,617,625$ 233,688$ 1,851,313$
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED DECEMBER 31,2018
Hotel/Motel Tax Drug Seizure
115
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Total
Nonmajor
Debt Service
Funds
ASSETS:
Cash and cash equivalents 163,294$ 95,114$ 445,652$ 704,060$
Investments 535,329 - - 535,329
Receivables
Taxes - 33,658 - 33,658
Interest on investments 2,136 - - 2,136
Total assets 700,759 128,772 445,652 1,275,183
LIABILITIES AND FUND BALANCES:
Total Liabilities - - - -
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue-property tax -$ 33,658$ - 33,658
- 33,658 - 33,658
Fund balances:
Restricted 700,568 95,114 - 795,683
Assigned 190 - 445,652 445,843
Total Fund Balances 700,759 95,114 445,652 1,241,525
Total Liabilities and Fund
Balances 700,759$ 128,772$ 445,652$ 1,275,183$
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON-MAJOR DEBT SERVICE FUNDS
DECEMBER 31, 2018
Special
Assesment
Bonds
Guaranty
Fund
2013
UTGO
Bonds
2016
(Public Safety
Plan)
LTGO Bond
Fund
Total Deferred Inflow of
Resources
116
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
REVENUES:
Taxes -$ 2,797,731$ -$ 2,797,731$
Intergovernmental - - 52,466 52,466
Investment earnings 31,530 8,144 5,322 44,996
Total revenues 31,530 2,805,876 57,787 2,895,193
EXPENDITURES:
General Government - - - -
Debt service
Principal - 1,240,000 2,367,196 3,607,196
Interest - 1,533,675 1,187,283 2,720,958
Total Expenditures - 2,773,675 3,554,479 6,328,154
Excess (deficiency) of revenues
Over (Under) Expenditures 31,530 32,201 (3,496,691) (3,432,960)
OTHER FINANCING SOURCES (USES):
Transfers in - - 3,554,479 3,554,479
- - 3,554,479 3,554,479
Net change in fund balances 31,530 32,201 57,788 121,518
Fund balances - beginning 669,229 62,913 387,865 1,120,007
Fund Balances - Ending 700,759$ 95,114$ 445,652$ 1,241,525$
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NON-MAJOR DEBT SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31,2018
Special
Assessment
Bonds
Guaranty
Fund 2013
UTGO
Bonds
2016
(Public Safety
Plan)
Total Nonmajor
Debt Service
Funds
LTGO Bond
Fund
Total Other Financing Source And Use
117
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Land Acq. Fac ilities General Total Nonmajor
Residential Rec & Park Urban Government Fire Capital Project
Street Development Renewal Improvements Improvements Funds
ASSETS:
Cash and cash equivalents 8,324$ 1,109,643$ 2,282,693$ 480,072$ -$ 3,880,733$
Taxes receivable 41,806 25,020 - - - 66,826
Customer receivables 881,964 - - - - 881,964
Due from other governmental units - 23,979 - - - 23,979
RESTRICTED ASSETS:-
Cash and cash equivalents - - - - 167,136 167,136
Notes receivable - - - - 277,116 277,116
Capital asset held for resale - - 5,293,000 - - 5,293,000
Total Assets 932,093 1,158,643 7,575,693 480,072 444,252 10,590,753
Current payables:
Accounts payables 591,745 5,850 4,761 - - 602,356
Accrued wages and benefits 6,949 - - - - 6,949
Customer deposit 217,855 19,525 56,513 2,311 - 296,204
Total Liabilities 816,550 25,375 61,274 2,311 - 905,510
Deferred Inflow of resources:
Unavailable revenue-impact fee - - - - 277,116 277,116
Total Deferred Inflow of Resources - - - - 277,116 277,116
Fund balances:
Restricted - 757,632 - - 167,136 924,768
Assigned 115,544 107,315 7,514,419 477,761 - 8,212,838
Assigned - 1% arts - 268,321 - - - 268,321
Total Fund Balance 115,544 1,133,268 7,514,419 477,761 167,136 9,408,128
Total Liabilities and Fund Balances 932,093$ 1,158,643$ 7,575,693$ 480,072$ 444,252$ 10,590,753$
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON-MAJOR CAPITAL PROJECTS FUNDS
DECEMBER 31, 2018
LIABILITIES, DEFERRED INFLOWS AND
FUND BALANCES:
118
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Land Acq. Facilities General Total Nonmajor
Residential Rec & Park Urban Government Fire Capital Projects
Street Development Renewal Improvements Improvements Funds
REVENUES:
Taxes -$ 648,265$ -$ -$ -$ 648,265$
Charges for services 1,486,523 34,770 - - 537,441 2,058,734
Intergovernmental 1,200,483 3,985 - - - 1,204,468
Investment earnings 42,906 22,314 45,786 4,867 22,484 138,358
Miscellaneous 142,654 - - - - 142,654
Total Revenues 2,872,566 709,334 45,786 4,867 559,926 4,192,479
EXPENDITURES:
Current:
General government - - 29,536 95,908 - 125,443
Culture and recreation - 232,012 - - - 232,012
Transportation 4,318,339 - - - - 4,318,339
Capital Outlay 4,615,102 - - - - 4,615,102
Total Expenditures 8,933,441 232,012 29,536 95,908 - 9,290,896
Excess (deficiency) of revenues
Over (Under) Expenditures (6,060,875) 477,323 16,250 (91,040) 559,926 (5,098,417)
OTHER FINANCING SOURCES (USES):
Transfers in - 88,190 - 200,000 - 288,190
Transfers out - (3,500,000) - - (400,000) (3,900,000)
Total Other Financing Sources And Uses - (3,411,810) - 200,000 (400,000) (3,611,810)
Net change in fund balances (6,060,875) (2,934,488) 16,250 108,960 159,926 (8,710,227)
Fund balances - beginning 6,176,418 4,067,756 7,498,169 368,801 7,210 18,118,354
Fund Balances - ending 115,544$ 1,133,268$ 7,514,419$ 477,761$ 167,136$ 9,408,128$
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR CAPITAL PROJECTS FUNDS
FOR THE YEAR ENDED DECEMBER 31,2018
119
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes 606,000$ 606,000$ 810,885$ 204,885$
Intergovernmental 6,020,000 17,020,000 10,025,425 (6,994,575)
Charges for services 628,000 628,000 1,123,895 495,895
Investment earnings 5,000 5,000 56,916 51,916
Miscellaneous 30,000 30,000 38,400 8,400
Total Revenues 7,289,000 18,289,000 12,055,521 (6,233,479)
EXPENDITURES:
Current:
Transportation 4,462,000 4,462,000 2,599,557 1,862,443
Capital outlay 5,341,218 17,641,218 10,018,976 7,622,242
Total Expenditures 9,803,218 22,103,218 12,618,533 9,484,685
Excess (deficiency) of revenues
Over (Under) Expenditures (2,514,218) (3,814,218) (563,012) 3,251,206
OTHER FINANCING SOURCES (USES):
Transfers in 3,000,000 3,000,000 - (3,000,000)
Total Other Financing Sources And Uses 3,000,000 3,000,000 - (3,000,000)
Net change in fund balances 485,782 (814,218) (563,012) 251,206
Fund balances -beginning 47,344 4,250,655 3,436,437 (814,218)
Fund Balances - Ending 533,126$ 3,436,437$ 2,873,425$ (563,012)$
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, 2018
120
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Special assessment 408,593$ 408,593$ 415,660$ 7,067$
Investment earnings 270,940 270,940 220,875 (50,065)
Miscellaneous - - 49 49
Total Revenues 679,533 679,533 636,584 (42,949)
EXPENDITURES:
Debt service:
Principal 445,000 645,000 485,000 160,000
Interest 257,655 257,655 239,588 18,068
Total Expenditures 702,655 902,655 724,588 178,068
Excess of Revenues And Expenditures (23,122) (223,122) (88,003) 135,119
Net change in fund balances (23,122) (223,122) (88,003) 135,119
Fund balances - beginning 879,045 733,045 752,342 19,297
Fund Balances - Ending 855,923$ 509,923$ 664,339$ 154,416$
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 31,2018
121
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes -$ -$ 1,107$ 1,107$
Charges for services 300,000 300,000 328,130 28,130
Investment earnings -- 490,316 490,316
Total Revenues 300,000 300,000 819,554 519,554
EXPENDITURES:
Current:
Public Safety 1,450,000 3,600,000 3,373,884 226,116
Capital outlay 8,149,000 21,894,000 19,837,626 2,056,374
Total Expenditures 9,599,000 25,494,000 23,211,511 2,282,489
Excess of Revenues And Expenditures (9,299,000) (25,194,000) (22,391,957) 2,802,043
OTHER FINANCING SOURCES (USES):
Transfers in -900,000 900,000 -
Total Other Financing Sources And Uses - 900,000 900,000 -
Net change in fund balances (9,299,000) (24,294,000) (21,491,957) 2,802,043
Fund balances - beginning 9,656,000 48,268,920 36,724,920 (11,544,000)
Fund Balances - Ending 357,000$ 23,974,920$ 15,232,963$ (8,741,957)$
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 31,2018
122
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Investment earnings -$ -$ 143,426$ 143,426$
Total Revenues - - 143,426 143,426
EXPENDITURES:
Current:
Public Safety - - 171,141 (171,141)
Interest - - 16,977 (16,977)
Capital outlay 2,302,000 23,302,000 13,049,753 10,252,247
Total Expenditures 2,302,000 23,302,000 13,237,871 10,064,129
Excess of Revenues And Expenditures (2,302,000) (23,302,000) (13,094,446) 10,207,554
OTHER FINANCING SOURCES (USES):
Bond proceeds 23,343,000 23,343,000 18,365,000 (4,978,000)
Bond premium - - 1,809,036 1,809,036
Transfers in - 3,000,000 3,000,000 -
Prepaid leases - 1,250,000 3,119,513 1,869,513
Transfers out - - (119,513) (119,513)
Total Other Financing Sources And Uses 23,343,000 27,593,000 26,174,036 (1,418,964)
Net change in fund balances 21,041,000 4,291,000 13,079,590 8,788,590
Fund balances - beginning - 420,000 - (420,000)
Fund Balances - Ending 21,041,000$ 4,711,000$ 13,079,590$ 8,368,590$
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 31,2018
123
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Variance With
Original Final Final Budget
Budget Bduget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes 755,000$ 755,000$ 833,990$ 78,990$
Investment earnings 3,000 3,000 22,258 19,258
Total Revenues 758,000 758,000 856,248 98,248
EXPENDITURES:
Current:
Economic environment 423,914 637,500 378,398 259,102
Total Expenditures 423,914 637,500 378,398 259,102
Excess (deficiency) of revenues
Over (Under) Expenditures 334,086 120,500 477,851 357,351
Net change in fund balances 334,086 120,500 477,851 357,351
Fund balances - beginning 1,202,175 920,375 1,139,775 219,400
Fund Balances - Ending 1,536,261$ 1,040,875$ 1,617,625$ 576,750$
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 31,2018
124
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Investment earnings -$ -$ 2,298$ 2,298$
Fines and forfeitures 60,000 60,000 32,480 (27,520)
Total Revenues 60,000 60,000 34,779 (25,221)
EXPENDITURES:
Current:
Public safety 45,000 245,000 28,406 216,594
Total Expenditures 45,000 245,000 28,406 216,594
Excess (deficiency) of revenues
Over (Under) Expenditures 15,000 (185,000) 6,372 191,372
Net change in fund balances 15,000 (185,000) 6,372 191,372
Fund balances - beginning 476,635 412,316 227,316 (185,000)
Fund balances - ending 491,635$ 227,316$ 233,688$ 6,372$
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 31,2018
125
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Intergovernmental 1,360,000$ 1,360,000$ 1,200,483$ (159,517)$
Charges for services - - 1,486,523 1,486,523
Investment earnings 1,600 1,600 42,906 41,306
Miscellaneous 1,273,000 1,273,000 142,654 (1,130,346)
Total Revenues 2,634,600 2,634,600 2,872,566 237,966
EXPENDITURES:
Current:
Transportation 350,000 350,000 4,318,339 (3,968,339)
Capital outlay 5,075,000 10,875,000 4,615,102 6,259,898
Total Expenditures 5,425,000 11,225,000 8,933,441 2,291,559
Excess of Revenues And Expenditures (2,790,400) (8,590,400) (6,060,875) 2,529,525
OTHER FINANCING SOURCES (USES):
Bond proceeds 2,800,000 2,800,000 - (2,800,000)
Total Other Financing Sources And Uses 2,800,000 2,800,000 - (2,800,000)
Net change in fund balances 9,600 (5,790,400) (6,060,875) (270,475)
Fund balances - beginning 877,831 11,966,818 6,176,418 (5,790,400)
Fund Balances - Ending 887,431$ 6,176,418$ 115,544$ (6,060,874)$
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 31,2018
126
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes 400,000$ 500,000$ 648,265$ 148,265$
Intergovernmental 146,000 146,000 3,985 (142,015)
Charges for services - - 34,770 34,770
Investment earnings 1,000 1,000 22,314 21,314
Total Revenues 547,000 647,000 709,334 62,334
EXPENDITURES:
Current:
Culture and recreation - - 232,012 (232,012)
Capital outlay 581,000 1,081,000 - 1,081,000
Total Expenditures 581,000 1,081,000 232,012 848,988
Excess of Revenues And Expenditures (34,000) (434,000) 477,323 911,323
OTHER FINANCING SOURCES (USES):
Transfers in 122,000 122,000 88,190 (33,810)
Transfers out - (3,500,000) (3,500,000) -
Total Other Financing Sources And Uses 122,000 (3,378,000) (3,411,810) (33,810)
Net change in fund balances 88,000 (3,812,000) (2,934,488) 877,513
Fund balances - beginning 2,290,123 4,479,756 4,067,756 (412,000)
Fund Balances - Ending 2,378,123$ 667,756$ 1,133,268$ 465,512$
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 31,2018
127
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Investment earnings 3,600$ 3,600$ 45,786$ 42,186$
Total Revenues 3,600 3,600 45,786 42,186
EXPENDITURES:
Current:
General Government - - 29,536 (29,536)
Capital outlay 36,000 36,000 - 36,000
Total Expenditures 36,000 36,000 29,536 6,464
Excess of Revenues And Expenditures (32,400) (32,400) 16,250 48,650
OTHER FINANCING SOURCES (USES):
Sales of capital assets 4,311,000 4,311,000 - (4,311,000)
Transfers out (6,050,000) (6,050,000) - 6,050,000
Total Other Financing Sources And Uses (1,739,000) (1,739,000) - 1,739,000
Fund balances - beginning 1,997,306 3,976,569 7,498,169 3,521,600
Fund Balances - Ending 225,906$ 2,205,169$ 7,514,419$ 5,309,250$
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 31,2018
128
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Investment earnings 500$ 500$ 4,867$ 4,367$
Total Revenues 500 500 4,867 4,367
EXPENDITURES:
Current:
General Government - - 95,908 (95,908)
Capital outlay 294,593 294,593 - 294,593
Total Expenditures 294,593 294,593 95,908 198,685
Excess of Revenues And Expenditures (294,093) (294,093) (91,040) 203,053
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 (94,093) (94,093) 108,960 203,053
Fund balances - beginning 244,055 244,055 368,801 124,746
Fund Balances - Ending 149,962$ 149,962$ 477,761$ 327,799$
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 31,2018
129
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Fire impact fees 50,000$ 450,000$ 537,441$ 87,441$
Investment earnings 100 100 22,484 22,384
Total Revenues 50,100 450,100 559,926 109,826
EXPENDITURES:
Total Expenditures - - - -
Excess of Revenues And Expenditures 50,100 450,100 559,926 109,826
OTHER FINANCING SOURCES (USES):
Transfers out - (400,000) (400,000) -
Total Other Financing Sources And Uses - (400,000) (400,000) -
Net change in fund balances 50,100 50,100 159,926 109,826
Fund balances - beginning 677,731 (42,890)7,210 50,100
Fund Balances - Ending 727,831$ 7,210$ 167,136$ 159,926$
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 31,2018
130
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Investment earnings 500$ 500$ 31,530$ 31,030$
Total Revenues 500 500 31,530 31,030
EXPENDITURES:
Total Expenditures - - - -
Excess of Revenues And Expenditures 500 500 31,530 31,030
OTHER FINANCING SOURCES (USES):
Total Other Financing Sources And Uses - - - -
Net change in fund balances 500 500 31,530 31,030
Fund balances - beginning 669,651 669,651 669,229 (422)
Fund Balances - Ending 670,151$ 670,151$ 700,759$ 30,608$
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
SPECIAL ASSESSMENT BONDS GUARANTY FUND
FOR THE YEAR ENDED DECEMBER 31,2018
131
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes 2,681,000$ 2,781,000$ 2,797,731$ 16,731$
Investment earnings - - 8,144 8,144
Total Revenues 2,681,000 2,781,000 2,805,876 24,876
EXPENDITURES:
Debt service:
Principal 681,000 781,000 1,240,000 (459,000)
Interest 2,000,000 2,000,000 1,533,675 466,325
Total Expenditures 2,681,000 2,781,000 2,773,675 7,325
Excess of Revenues And Expenditures - - 32,201 32,201
Net change in fund balances - - 32,201 32,201
Fund balances - beginning - 219,390 62,913 (156,477)
Fund Balances - Ending -$ 219,390$ 95,114$ (124,276)$
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 31,2018
132
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Intergovernmental 56,053$ 56,053$ 52,466$ (3,587)$
Investment earnings - - 5,322 5,322
Miscellaneous 428,288 428,288 - (428,288)
Total Revenues 484,341 484,341 57,787 (426,554)
EXPENDITURES:
Debt service:
Principal 2,505,397 2,505,397 2,367,196 138,201
Interest 1,823,524 1,823,524 1,187,283 636,241
Total Expenditures 4,328,921 4,328,921 3,554,479 774,442
Excess of Revenues And Expenditures (3,844,580) (3,844,580) (3,496,691) 347,889
OTHER FINANCING SOURCES (USES):
Payment of refunded debt (2,250,000) (2,250,000) - 2,250,000
Transfers in 6,094,580 6,094,580 3,554,479 (2,540,101)
Total Other Financing Sources And Uses 3,844,580 3,844,580 3,554,479 (290,101)
Net change in fund balances - - 57,788 57,788
Fund balances - beginning 168,475 168,475 387,865 219,390
Fund Balances - Ending 168,475$ 168,475$ 445,652$ 277,177$
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, 2018
133
CITY OF TUKWILA: 2018 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.
134
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Total
Insurance - Insurance - Internal
Equipment Active Leoff I Service
Rental Employees Retirees Funds
ASSETS:
Current assets
Cash and cash equivalents 4,155,973$ 654,997$ 314,179$ 5,125,149$
Investments 391,478 1,430,644 440,134 2,262,256
Receivables 2,534 63,185 - 65,719
Inventory of materials and supplies 25,830 - - 25,830
Total Current Assets 4,575,815 2,148,826 754,313 7,478,954
NONCURRENT ASSETS:
Capital Assets:
Machinery and equipment 16,173,201 - - 16,173,201
Less: accumulated depreciation (11,116,257) - - (11,116,257)
Construction in progress 3,292,324 - - 3,292,324
Total Capital Assets (Net Of A/D) 8,349,268 - - 8,349,268
Total Assets 12,925,083 2,148,826 754,313 15,828,222
Deferred Outflows of Resources
RecTax Deferred outflow pension earnings 30,066 - - 30,066
Total Deferred Outflows Of Resources 30,066 - - 30,066
LIABILITIES:
Current liabilities:
Accounts payable 46,134 4,500 2,830 53,464
Accrued wages and benefits 16,373 - - 16,373
Claims incurred but not reported - 613,500 61,400 674,900
Total Current Liabilities 62,506 618,000 64,230 744,736
Noncurrent liabilities:
Reserve for unreported claims - 920,250 92,100 1,012,350
Net pension liability 172,461 - - 172,461
Total Noncurrent Liabilities 172,461 920,250 92,100 1,184,811
Total Liabilities 234,967 1,538,250 156,330 1,929,547
Deferred Inflows of Resources
RecTax Deferred inflow pension earnings 76,011 - - 76,011
Total Deferred Inflows Of Resources 76,011 - - 76,011
NET POSITION:
Investment in capital assets 8,349,269 - - 8,349,269
Unrestricted 4,294,902 610,576 597,983 5,503,461
Total Net Position 12,644,171$ 610,576$ 597,983$ 13,852,730$
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
DECEMBER 31, 2018
135
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Total
Insurance - Insurance- Internal
Equipment Active Leoff I Service
Rental Employees Retirees Funds
OPERATING REVENUES:
Charges for services 5,959,333$ 5,614,536$ 250,290$ 11,824,159$
Other operating revenue 759 155,288 - 156,047
Total Operating Revenue 5,960,092 5,769,823 250,290 11,980,205
OPERATING EXPENSES:
Operations & maintenance 1,313,328 6,098,080 325,252 7,736,660
Administrative & general 329,368 125,579 13,804 468,751
Depreciation 1,110,745 - - 1,110,745
Total Operating Expenses 2,753,441 6,223,659 339,056 9,316,156
Operating Income (Loss)3,206,651 (453,836) (88,766) 2,664,049
NON-OPERATING REVENUE (EXPENSE):
Investment earnings 63,117 (2,183) (13,264) 47,670
Gain (loss) on disposal of capital assets 71,029 - - 71,029
Total Non-Operating Revenue (Expense)134,145 (2,183) (13,264) 118,699
Income (Loss)3,340,796 (456,019) (102,030) 2,782,748
Change In Net Position 3,340,796 (456,019) (102,030) 2,782,748
Net position beginning of year 9,303,375 1,066,595 700,012 11,069,982
Net Position end of year 12,644,171$ 610,576$ 597,983$ 13,852,730$
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET P OSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2018
136
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
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 5,975,793$ 5,757,051$ 250,290$ 11,983,135$
Cash paid to suppliers (953,296) (594,575) (56,473) (1,604,345)
Cash paid for taxes (2) - - (2)
Cash paid to, or on behalf of, employees (522,639) (6,023,083) (322,912) (6,868,634)
Interfund activity - payments to other funds (329,368) - - (329,368)
Net Cash Provided (Used)
By Operating Activities 4,170,487 (860,606) (129,095) 3,180,786
Proceed from sale of equipment 110,143 - - 110,143
Purchase of capital asset (4,374,323) - - (4,374,323)
Net Cash Provided (Used) For Capital
And Related Financing Activities (4,264,180) - - (4,264,180)
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from sale of investments - 880,667 - 880,667
Interest received 64,600 46,067 2,727 113,394
Net Cash Provided (Used) In Investing Activities 64,600 926,734 2,727 994,061
Net Increase (Decrease) In Cash And
Cash Equivalents (29,093) 66,128 (126,368) (89,334)
Cash and cash equivalents-beginning of year 4,185,067 588,869 440,547 5,214,483
Cash And Cash Equivalents-End Of Year 4,155,973$ 654,997$ 314,179$ 5,125,149$
Cash at end of year consists of:
Cash and cash equivalents 4,155,973$ 654,997$ 314,179$ 5,125,149
Total Cash 4,155,973$ 654,997$ 314,179$ 5,125,149$
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2018
137
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
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)3,206,651$ (453,836)$ (88,766)$ 2,664,049$
Adjustments to reconcile operating income to net cash
Provided (used) by operating activities:
Depreciation 1,110,745 - - 1,110,745
Asset (increases ) decreases:
Accounts receivable 15,701 (12,772) - 2,929
Inventory (7,070) - - (7,070)
Deferred outflow of resources (increase) decrease 8,888 - - 8,888
Liability increases (decreases):
Accounts payable (68,514) (393,998) (40,329) (502,842)
Wages and benefits payable (9,533) - - (9,533)
Deferred inflow of resources increase (decrease)(86,381) - - (86,381)
Total Adjustments 963,836 (406,770) (40,329) 516,737
Net Cash Provided (Used) By Operating Activities 4,170,487$ (860,606)$ (129,095)$ 3,180,786$
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Increase (decrease) in fair value of investment (8,005) 43,328 25,810 61,133
Total Non Cash Investing, Capital And
Financing Activities (8,005)$ 43,328$ 25,810$ 61,133$
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2018
CITY OF TUKWILA, WASHINGTON
138
CITY OF TUKWILA: 2018 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Balance Balance
January 1, 2018 Additions Deductions December 31,2018
ASSETS
Cash and cash equivalents 311,398$ 817,063$ (879,362)$ 249,099$
Receivables 2,934 144,529 (142,929) 4,534
Total Assets 314,332 961,592 (1,022,291) 253,633
LIABILITIES
Accounts and other payables 314,332 1,648,039 (1,708,738) 253,633
Total Liabilities 314,332$ 1,648,039$ (1,708,738)$ 253,633$
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
FOR THE YEAR ENDED DECEMBER 31, 2018
139
City of Tukwila
STATISTICAL SECTION
December 31, 2018
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 ...................................................................................................... 141
Schedule 2 Changes in Net Position ............................................................................................................ 143
Schedule 3 Fund Balances, Governmental Funds ....................................................................................... 145
Schedule 4 Changes in Fund Balances, Governmental Funds ................................................................... 147
Schedule 5 General Governmental Tax Revenues by Source .................................................................... 149
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 ......................................................................................... 150
Schedule 7 Assessed and Estimated Actual Value of Taxable Property ..................................................... 151
Schedule 8 Property Tax Rates-Direct and Overlapping Governments ...................................................... 152
Schedule 9 Principal Property Taxpayers .................................................................................................... 153
Schedule 10 Retail Sales Tax Collections by Sector ..................................................................................... 155
Schedule 11 Sales Tax Rate Direct and Overlapping Governments ............................................................. 157
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 ......................................................................................... 159
Schedule 13 Ratios of General Bonded Debt Outstanding ............................................................................ 161
Schedule 14 Computation of Direct and Overlapping Debt ........................................................................... 162
Schedule 15 Legal Debt Margin Information .................................................................................................. 163
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 .............................................................................................................. 165
Schedule 17 Principal Employers ................................................................................................................... 166
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 ......................................................................... 167
Schedule 19 Operating Indicators by Function .............................................................................................. 168
Schedule 20 Capital Assets by Function ........................................................................................................ 169
140
Page 1 of 2
2009 2010 2011 2012
Governmental activities:
Net investment in capital assets 155,847,012$ 177,078,793$ 199,511,779$ 203,206,940$
Restricted 16,360,097 23,005,792 5,019,817 2,749,680
Unrestricted 16,031,473 12,119,923 21,479,064 20,194,333
Total governmental activities net position 188,238,582$ 212,204,508$ 226,010,660$ 226,150,953$
Business-type activities:
Net investment in capital assets 38,052,488$ 44,759,489$ 52,134,799$ 52,911,741$
Restricted 438,619 430,444 430,444 430,444
Unrestricted 10,987,162 11,158,081 10,225,558 11,011,319
Total business-type activities net position 49,478,269$ 56,348,014$ 62,790,801$ 64,353,504$
Primary government:
Net investment in capital assets 193,899,500$ 221,838,282$ 248,636,920$ 253,253,170$
Restricted 16,798,716 23,436,236 5,450,261 3,180,123
Unrestricted 27,018,635 23,278,004 34,714,280 34,071,164
Total primary government net position 237,716,851$ 268,552,522$ 288,801,461$ 290,504,457$
Notes:
(a) All amounts are reported on the accrual basis
Source:
Tukwila Finance Department
CITY OF TUKWILA
SCHEDULE 1
NET POSITION BY COMPONENT(a)
LAST TEN FISCAL YEARS
141
Page 2 of 2
2013 2014 2015 2016 2017 2018
207,660,389$ 191,081,461$ 191,331,156$ 193,113,026$ 199,328,694$ 201,997,812$
3,480,002 3,973,726 5,446,074 8,996,183 13,480,068 16,962,377
26,981,105 25,009,212 16,125,592 15,809,945 11,366,545 12,407,297
238,121,496$ 220,064,399$ 212,902,822$ 217,919,155$ 224,175,306$ 231,367,487$
55,955,595$ 57,677,764$ 59,483,424$ 60,807,030$ 65,355,778$ 68,680,695$
430,444 430,444 - - - -
12,964,539 13,839,529 14,658,912 17,240,620 17,425,401 18,988,782
69,350,577$ 71,947,736$ 74,142,335$ 78,047,650$ 82,781,179$ 87,669,477$
263,615,984$ 248,759,225$ 250,814,581$ 253,920,056$ 264,684,471$ 270,678,507$
3,910,445 4,404,170 5,446,074 8,996,183 13,480,068 16,962,377
39,945,644 38,848,741 30,784,504 33,050,565 28,791,946 31,396,080
307,472,073$ 292,012,136$ 287,045,158$ 295,966,804$ 306,956,485$ 319,036,964$
142
Page 1 of 2
2009 2010 2011 2012
Expenses
Governmental Activities
General Government 6,689,659$ 7,052,717$ 9,150,573$ 8,343,107$
Public Safety 26,959,352 26,088,644 25,348,318 26,598,432
Physical Environment 2,575,405 2,533,394 2,885,175 3,625,696
Transportation 5,541,367 6,015,197 6,872,708 7,314,707
Economic Environment 4,637,531 4,579,338 4,712,832 4,801,342
Mental and Physical Health 4,332 4,539 4,591 -
Culture and Recreation 4,914,256 4,756,676 4,203,824 4,242,725
Interest on Long Term Debt 753,904 1,061,419 472,438 1,152,063
Total Governmental Activities 52,075,806 52,091,924 53,650,459 56,078,072
Business Type Activities
Water/Sewer Utility 9,293,434 9,343,368 10,092,903 10,149,557
Foster Golf Course 2,050,172 1,935,014 1,986,747 1,701,131
Surface Water Utility 2,299,394 2,476,170 2,588,098 2,699,767
Total Business Type Activities 13,643,000 13,754,552 14,667,748 14,550,455
Total Primary Government Expenses 65,718,806$ 65,846,476$ 68,318,207$ 70,628,527$
Program Revenues
Governmental Activities
Charges for Services
General Government 1,136,642$ 1,080,801$ 2,462,671$ 1,332,418$
Public Safety 572,094 819,043 809,806 684,744
Physical Environment - 6,200 7,572 4,939
Transportation 103,311 571,110 345,373 1,004,911
Economic Environment 1,001,511 1,787,274 1,722,285 2,323,528
Cultural and Recreation 647,354 811,679 1,001,117 481,404
Operating Grants and Contributions 3,386,269 2,139,029 2,250,601 4,411,618
Capital Grants and Contributions 14,784,074 23,992,563 18,495,127 1,581,882
Total Governmental Activities Program Revenues 21,631,255 31,207,699 27,094,552 11,825,444
Business Type Activities
Charges for Services
Water/Sewer Utility 10,124,653 9,665,095 11,711,242 11,758,658
Foster Golf Course 1,424,595 1,425,327 1,304,016 1,448,729
Surface Water Utility 2,641,313 3,029,630 3,355,956 3,827,010
Operating Grants and Contributions - - - -
Capital Grants and Contributions 515,633 7,390,545 1,993,537 135,603
Total Business Type Activities Program Revenues 14,706,194 21,510,597 18,364,751 17,170,000
Total Primary Government Program Revenues 36,337,449 52,718,296 45,459,303 28,995,444
Net (Expense)/Revenue
Governmental Activities (30,444,551) (20,884,225) (26,555,907) (44,252,628)
Business Type Activities 1,063,194 7,756,045 3,697,003 2,619,546
Total Primary Government Net Expense (29,381,357)$ (13,128,180)$ (22,858,904)$ (41,633,082)$
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property Tax 11,901,072$ 13,363,096$ 13,443,137$ 14,131,605$
Retail Sales and Use Tax 14,588,297 14,669,328 15,796,054 15,441,683
Natural Gas Use Tax 748,772 533,811 317,531 232,208
Hotel/Motel Tax 489,806 458,092 555,682 522,033
Utility Tax 7,390,860 5,600,683 7,534,260 5,535,966
Interfund Utility Taxes - - - -
Business Tax 3,196,178 4,205,574 667,679 2,497,606
Excise Tax 367,198 507,798 2,170,293 2,860,948
Unrestricted Investment Earnings 246,287 108,929 275,477 116,694
Gain/Loss on Sale of Capital Assets 980,267 - - -
Miscellaneous 2,233,445 1,951,936 2,085,740 1,997,335
Transfers 1,601,200 1,399,310 525,864 1,056,843
Total Governmental Activities 43,743,382 42,798,557 43,371,717 44,392,921
Business Type Activities
Retail Sales and Use Taxes 327,999 329,527 - -
Unrestricted Investment Interest 106,032 85,942 61,119 -
Gain/Loss on Sale of Capital Assets (264,093) - - -
Miscellaneous - 97,541 200,871 -
Transfers (1,601,200) (1,399,310) (525,864) (1,056,843)
Total Business Type Activities (1,431,262) (886,300) (263,874) (1,056,843)
Total Primary Government 42,312,120 41,912,257 43,107,843$ 43,336,078$
Change in Net Position Before Special Item 20,248,939 1,702,996
Special item
Change in Net Position 42,312,120 41,912,257 20,248,939 1,702,996
Governmental Activities 13,298,831$ 21,914,332$ 16,815,810$ 140,293$
Business Type Activities (368,068) 6,869,745 3,433,129 1,562,703
Total Primary Government 12,930,763$ 28,784,077$ 20,248,939$ 1,702,996$
Notes:
(a) All amounts are reported on the accrual basis
Source:
Tukwila Finance Department
CITY OF TUKWILA, WASHINGTON
SCHEDULE 2
CHANGES IN NET POSITION (a)
143
Page 2 of 2
2013 2014 2015 2016 2017 2018
10,195,049$ 10,289,399$ 8,042,254$ 9,662,207$ 9,835,290$ 10,763,025$
25,938,946 29,292,587 29,403,206 31,418,713 31,190,347 17,097,372
2,610,591 11,668,098 2,611,297 2,554,259 2,545,144 2,645,577
7,658,280 2,479,533 11,069,605 11,188,189 12,236,551 15,871,018
5,209,954 5,716,091 5,782,907 4,410,841 4,523,596 4,411,719
- - - - - -
5,635,347 5,336,659 5,125,227 5,431,324 5,582,038 5,591,213
1,038,851 1,204,771 1,033,440 1,075,729 2,481,559 2,748,854
58,287,017 65,987,138 63,067,935 65,741,262 68,394,526 59,128,779
10,421,064 12,752,125 13,186,236 13,984,368 14,305,425 14,861,448
1,707,993 1,945,789 2,086,586 2,077,536 1,989,972 2,091,981
2,563,132 3,310,716 4,147,974 4,088,360 4,209,325 4,464,319
14,692,189 18,008,631 19,420,796 20,150,264 20,504,722 21,417,748
72,979,205$ 83,995,769$ 82,488,731$ 85,891,525$ 88,899,247$ 80,546,527$
1,495,438$ 3,858,862$ 3,794,134$ 3,742,937$ 4,144,986$ 5,989,077$
871,919 970,594 1,754,856 4,130,701 1,540,863 1,970,331
27,407 196,506 - 464 - -
287,956 8,425 206,065 454,525 2,206,908 2,261,577
2,786,178 726,869 3,348,802 2,434,546 2,270,759 3,099,692
744,014 2,793,185 644,283 1,140,558 1,315,740 1,415,827
3,289,818 2,563,002 893,470 1,079,020 2,445,998 1,733,308
16,947,529 8,053,435 6,431,537 5,000,942 6,126,880 9,942,224
26,450,258 19,170,879 17,073,146 17,983,694 20,052,136 26,412,036
13,146,131 14,308,945 15,572,709 15,661,118 16,580,965 17,203,158
1,404,264 1,406,440 1,482,288 1,426,385 1,313,871 1,563,320
3,913,184 4,168,313 5,286,233 5,875,343 6,200,589 6,417,368
- - - 25,000 8,435 54,697
338,943 1,548,280 2,039,890 767,732 834,392 767,504
18,802,521 21,431,978 24,381,122 23,755,578 24,938,251 26,006,046
45,252,779 40,602,857 41,454,268 41,739,272 44,990,386 52,418,082
(31,836,759) (46,816,260) (45,994,789) (47,757,566) (48,342,390) (32,716,743)
4,110,332 3,423,348 4,960,326 3,605,314 4,433,529 4,588,299
(27,726,426)$ (43,392,912)$ (41,034,463)$ (44,152,252)$ (43,908,861)$ (28,128,445)$
14,510,241$ 14,870,621$ 14,320,085$ 14,562,501$ 17,667,590$ 18,008,738$
16,316,398 17,105,322 19,334,152 18,908,190 18,807,201 20,603,617
204,457 - - - - -
526,832 596,781 677,971 710,267 736,784 833,990
3,879,992 3,855,544 4,019,288 4,045,916 4,175,013 3,866,859
1,686,859 1,851,013 2,061,098 2,146,515 2,265,747 2,334,522
2,570,111 2,555,999 2,749,140 2,716,257 2,698,352 1,246,798
2,745,475 3,512,894 5,321,281 6,508,665 5,380,662 5,091,447
102,486 444,282 475,345 559,733 838,630 1,508,334
- - - - - -
2,166,215 1,915,031 2,124,185 2,915,859 2,328,565 2,240,045
1,060,650 (600,000) - (300,000) (300,000) (300,000)
45,769,716 46,107,488 51,082,545 52,773,904 54,598,542 55,434,351
- - - - - -
- - - - - -
- - - - - -
- - - - - -
(1,060,650) 600,000 - 300,000 300,000 300,000
(1,060,650) 600,000 - 300,000 300,000 300,000
44,709,066$ 46,707,488$ 51,082,545$ 53,073,904$ 54,898,542$ 55,734,351$
16,982,640 3,314,576 10,048,082 8,921,652 10,989,681 27,605,906
(1,995,000) (956,798) - - -
16,982,640 1,319,576 9,091,285 8,921,652 10,989,681 27,605,906
13,932,957$ (2,703,772)$ 3,830,958$ 5,016,337$ 6,256,152$ 22,717,608$
3,049,682 4,023,348 5,260,326 3,905,314 4,733,529 4,888,299
16,982,640$ 1,319,576$ 9,091,285$ 8,921,651$ 10,989,681$ 27,605,906$
144
Page 1 of 2
2009 2010 2011 2012
General Fund (GASB 54)
Nonspendable -$ -$ 5,000$ -$
Restricted - - - -
Committed - - 18,000 -
Assigned - - - -
Unassigned - - 8,237,141 8,378,557
General Fund (Prior to GASB 54)
Reserved 17,900 17,900 - -
Unreserved 7,371,530 5,739,140 - -
Total general fund 7,389,430$ 5,757,040$ 8,260,141$ 8,378,557$
All other governmental funds (GASB 54)
Nonspendable - - - -
Restricted - - 5,014,817 2,749,681
Committed - - 402,306 -
Assigned - - 11,127,221 7,021,183
Unassigned - - - -
All other governmental funds (Prior to GASB 54)
Reserved - - - -
Unreserved, reported in:
Special revenue funds 9,123,401 14,461,546 - -
Debt service funds 135,438 3,051 - -
Capital Project funds 7,101,258 8,541,195 - -
Total all other governmental funds 16,360,097$ 23,005,792$ 16,544,344$ 9,770,864$
Source:
Tukwila Finance Department
Note: In 2011 the City of Tukwila implemented GASB Statement No. 54, which changed the categories for fund
balances. Balances prior to 2011 were not restated to the new standards.
CITY OF TUKWILA, WASHINGTON
SCHEDULE 3
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
145
Page 2 of 2
2013 2014 2015 2016 2017 2018
1,743,362$ 1,544,022$ 1,340,914$ 1,141,484$ 927,373$ 718,190$
- - - - - -
- - - - - -
225,000 5,771,471 6,078,648 6,277,929 105,000 181,078
15,317,624 10,181,057 10,911,244 11,612,330 18,040,352 19,718,745
- - - - - -
- - - - - -
17,285,986$ 17,496,550$ 18,330,806$ 19,031,744$ 19,072,725$ 20,618,013$
- 7,370,000 7,645,000 7,645,000$ -$ -$
3,480,001 3,973,726 5,446,074 45,986,463 51,236,443 32,531,984
- - - - - -
4,510,623 4,076,803 7,221,870 3,389,139 10,282,709 11,819,299
(1,566,175) (1,360,218) - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
6,424,449$ 14,060,311$ 20,312,943$ 57,020,602$ 61,519,152$ 44,351,283$
146
page 1 of 2
2009 2010 2011 2012
Revenues
Taxes 37,167,281$ 37,267,918$ 38,035,681$ 41,502,608$
Licenses and Permits 1,283,463 1,618,830 3,473,910 1,604,594
Intergovernmental 17,596,486 14,525,872 24,059,907 7,626,487
Charges for Services 1,443,680 2,366,174 2,359,600 3,974,356
Fines and Forfeitures 301,761 390,079 308,027 220,752
Investment Income 282,604 144,258 275,479 106,286
Special Assessments - - - -
Miscellaneous 701,957 891,307 356,409 131,979
Total Revenues 58,777,232 57,204,438 68,869,013 55,167,062
Expenditures
General Government 8,574,563 8,387,317 8,253,440 8,504,511
Public Safety 25,576,932 24,676,370 24,327,498 24,918,306
Physical Environment 2,058,913 1,724,147 2,060,482 3,022,516
Transportation 2,334,298 2,332,178 2,676,511 2,769,182
Economic Environment 4,601,391 4,541,845 4,682,646 4,767,944
Mental & Physical Health 4,332 4,539 4,591 -
Culture and Recreation 4,365,023 4,163,503 3,507,150 3,373,000
Debt Service
Principal 1,316,297 1,555,028 1,766,774 1,991,540
Interest 778,018 849,148 881,850 1,178,464
Capital Outlay 16,860,362 11,513,976 25,643,704 12,099,293
Total Expenditures 66,470,129 59,748,051 73,804,646 62,624,756
Excess (Deficiency) of Revenues (7,692,894) (2,543,613) (4,935,633) (7,457,694)
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In 3,865,744 2,461,806 11,001,619 7,625,792
Transfers In - Assessment - - - -
Transfers Out (2,234,444) (1,020,857) (10,061,205) (6,174,358)
Capital Leases - 110,509 15,468 -
Sale of Capital Assets 1,014,608 27,308 21,406 9,903
General Obligation Bonds Issued - 6,935,000 5,055,688 -
General Obligation Refunding Bonds Issued 6,947,574 - - -
LID Bonds Assessment - - - -
Operating Loan-Tukwila MPD - - - (658,706)
Premium on General Obligation Debt - 112,151 - -
Premium on General Obligation Refunding Debt - - - -
Issuance Costs on General Obligation Refunding Debt - - - -
Payment to Refunded Bond Escrow Agent (6,880,397) (1,069,000) (5,055,688) -
Total Other Financing Sources (Uses)2,713,085 7,556,917 977,288 802,631
Change in Fund Balance Before Special Item (4,979,809) 5,013,304 (3,958,345) (6,655,063)
Special Item - - - -
Net Change in Fund Balances (4,979,809)$ 5,013,304$ (3,958,345)$ (6,655,064)$
Ratio of Debt Service Expenditures 4.40%5.20%5.80%6.70%
To Total Non-Capital Expenditures
Note:
(a) All amounts are reported on the modified - accrual basis
Source:
Tukwila Finance Department
CITY OF TUKWILA, WASHINGTON
SCHEDULE 4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (a)
LAST TEN FISCAL YEARS
147
page 2 of 2
2013 2014 2015 2016 2017 2018
42,402,070$ 44,441,783$ 48,548,116$ 49,588,492$ 51,655,075$ 51,988,591$
2,013,875 2,114,638 2,242,256 2,129,221 2,749,137 4,875,454
7,190,325 14,298,126 11,839,883 10,067,413 12,739,774 15,919,377
3,747,646 3,838,531 3,935,248 3,911,473 5,767,228 6,801,719
242,638 264,934 261,457 318,459 325,216 291,604
151,911 479,219 475,345 541,299 826,864 1,538,534
2,788,350 701,723 650,415 542,180 478,838 415,660
427,368 354,395 332,268 957,158 942,784 407,151
58,964,183 66,493,348 68,284,989 68,055,695 75,484,915 82,238,092
9,303,742 7,505,173 7,708,394 9,405,989 9,585,551 10,491,432
25,720,884 27,254,312 29,035,165 29,366,198 30,899,412 34,331,520
1,935,895 1,807,993 1,935,228 1,955,031 1,733,400 1,805,457
3,111,493 5,820,601 5,792,668 5,238,468 6,532,195 10,015,938
5,224,964 5,226,832 5,832,384 4,493,210 4,614,027 4,686,528
- - - - - -
4,386,392 4,680,651 4,350,052 4,543,339 4,664,129 4,852,138
5,024,991 2,288,988 2,480,507 2,602,782 3,713,928 4,092,196
1,162,649 961,457 1,125,609 1,093,584 2,603,869 2,977,523
5,854,962 10,150,912 11,426,274 8,358,450 14,761,715 47,601,490
61,725,970 65,696,921 69,686,279 67,057,051 79,108,226 120,854,221
(2,761,786) 796,428 (1,401,291) 998,643 (3,623,311) (38,616,129)
20,918,983 7,300,080 5,633,846 4,025,831 6,354,496 7,742,669
2,788,350 - - - - 3,119,513
(23,301,516) (7,900,080) (5,933,846) (4,325,831) (6,654,496) (8,042,669)
- - - - - -
5,493 - - - (100,000) -
1,000,000 3,850,000 8,075,000 32,990,000 10,456,000 18,365,000
- - - - - -
6,687,500 - - - - -
- - - - - -
- - 309,758 3,719,954 356,839 1,809,036
- - - - - -
- - - - - -
- - - - - -
8,098,809 3,250,000 8,084,758 36,409,954 10,412,839 22,993,549
5,337,023 4,046,428 6,683,467 37,408,597 6,789,528 (15,622,580)
- (1,995,000) (956,798) - - -
5,337,023$ 2,051,428$ 5,726,669$ 37,408,597$ 6,789,528$ (15,622,580)$
11.07%6.70%6.30%6.30%9.80%9.65%
148
Fiscal Year Property(a)Sales & Use Utility (b)Excise Business Other Total Taxes
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
2018 18,008,738 20,603,617 3,866,859 5,091,447 1,246,798 2,334,522 51,151,981
Change 2009-2018 47.7% 41.3% -37.4% 80.3% 68.9% 255.5% 37.6%
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.
Source:
Tukwila Finance Department
CITY OF TUKWILA, WASHINGTON
SCHEDULE 5
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
$0
$10
$20
$30
$40
$50
$60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Mi
l
l
i
o
n
s
Tax Revenue by Source
Other
Business
Excise
Utility
Sales & Use
Property
149
Fiscal
Year
Taxes Levied for
Fiscal Year Amount % of Levy
Collections in
Subsequent
Years Amount % of Levy Levy Balance
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%81,314 13,233,326 100.00%470
2011 13,383,153 13,225,338 98.82%157,248 13,382,587 100.00%566
2012 13,697,474 13,521,621 98.72%170,300 13,691,921 99.96%5,553
2013 13,740,076 13,549,525 98.61%187,624 13,737,150 99.98%2,926
2014 14,047,317 13,916,718 99.07%126,469 14,043,187 99.97%4,130
2015 14,245,846 14,113,739 99.07%125,802 14,239,540 99.96%6,306
2016 14,516,623 14,375,358 99.03%119,983 14,495,341 99.85%21,282
2017*17,551,561 17,262,965 98.36%234,657 17,497,622 99.69%53,939
2018 18,006,677 17,844,087 99.10%- 17,844,087 99.10%162,590
*First year of collection on 2016 voter-approved levy for Public Safety Plan
Source:
King County Office of Finance
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
-
3
6
9
12
15
18
2009 2010 2011 2012 2013 2014 2015 2016 2017*2018
Mi
l
l
i
o
n
s
Property Tax Levies and Collections
Taxes Levied
for Fiscal Year
Amount
Collected
Within Fiscal
Year of Levy
150
2009 4,122,961,628 746,710,751 112,779,972 4,982,452,351 2.66345
2010 3,950,829,851 717,795,417 119,827,058 4,788,452,326 2.82566
2011 3,833,295,985 712,607,656 129,726,102 4,675,629,743 2.95408
2012 3,778,571,709 736,480,616 134,138,983 4,649,191,308 2.98778
2013 3,824,448,044 779,103,146 152,822,498 4,756,373,688 2.97799
2014 4,146,952,417 744,616,273 162,510,057 5,054,078,747 2.84188
2015 4,409,931,075 810,422,092 174,971,951 5,395,325,118 2.71073
2016 4,763,568,175 849,695,435 150,386,219 5,763,649,829 3.05735
2017 5,242,264,743 780,938,084 161,740,436 6,184,943,263 2.91864
2018 5,835,967,000 678,435,063 171,517,113 6,685,919,176 2.91864
Note:
*Real, personal, and state public service property have been assessed at 100% of the estimated value.
Source:
King County Department of Assessments
CITY OF TUKWILA, WASHINGTON
SCHEDULE 7
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Total Assessed
Value
Total Direct
Tax Rate Fiscal Year Real Property Personal Property Public Utilities
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Mi
l
l
i
o
n
s
Assessed Value By Type
Public Utilities
Personal Property
Real Property
151
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 1.73925 0.13518 0.23940 5.17356 0.10708 0.15513 0.45689 0.22745 14.07078
2018 2.39148 0.42657 2.81805 2.62922 1.60359 0.12266 0.21762 3.39103 0.09660 0.15767 0.41673 0.20700 11.66017
Note:
(a) Includes King County Library District tax and Ferry
Source:
King County Department of Assessments
LAST TEN FISCAL YEARS
CITY OF TUKWILA, WASHINGTON
SCHEDULE 8
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1,000 OF ASSESSED VALUATION)
WA State
King
County(a)
Port of
Seattle Total
------------CITY OF TUKWILA------------
Emergency
Medical
Service
Tukwila
School Dist
#406
Flood
Control
Tukwila Pool
Metropolitan
Park District
Hospital
District #1Fiscal Year
General
Levy
Special
Levy Total
Central
Puget
Sound
Regional
Transit
Authority
$2.40000
$2.50000
$2.60000
$2.70000
$2.80000
$2.90000
$3.00000
$3.10000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Direct Property Tax Rates
152
Name Type of Business
2018 Assessed
Valuation
Percent of
2018 Total
Assessed
Value(a)
2009 Assessed
Valuation
Percent of
2009 Total
Assessed
Value(b)
Boeing Airplane company 588,854,306$ 8.81%534,257,164$ 10.72%
WEA Southcenter LLC Department Stores 345,696,269 5.17%323,176,114 6.49%
Boeing Employees Credit Union Credit Union 132,493,778 1.98%52,932,440 1.06%
Sabey Corporation Real Estate Development 126,213,700 1.89%- 0.00%
Segale Properties Commercial Properties 122,343,738 1.83%- 0.00%
Prologis Real Estate Development 104,427,000 1.56%- 0.00%
KIR Tukwila Commercial Properties 91,376,800 1.37%84,646,800 1.70%
LIT Industrial Limited Partnership Business Services 90,032,200 1.35%- 0.00%
Washington Towers LP Lodging 87,054,600 1.30%- 0.00%
LIT Kent Valley Business Services 74,017,700 1.11%- 0.00%
Puget Sound Energy/Gas-Electric Electric/Gas Utility 39,623,012 0.59%- 0.00%
La Pianta LP Commercial Properties - 0.00%116,639,470 2.34%
Reef America Reit II Corporation Commercial Properties - 0.00%66,929,100 1.34%
BCRP Riverview Plaza LLC Commercial Properties - 0.00%56,378,348 1.13%
Sea-Tuk Warehouse LLC Food Distribution - 0.00%36,731,500 0.74%
Sterling Realty Organization Commercial Properties - 0.00%36,120,900 0.72%
Walton CWWA Eproperty Tax Incorporated (McElroy)Investment Property - 0.00%31,554,600 0.63%
Federated Department Stores (Macy's)Department Stores - 0.00%31,485,900 0.63%
TOTALS 1,802,133,103$ 26.95% 1,370,852,336$ 27.51%
Notes:
(a) In 2018 the total assessed property value in the City of Tukwila was $ 6,685,919,176.
(b) In 2009 the total assessed property value in the City of Tukwila was $ 4,982,452,351.
Source:
King County Department of Assessments
CITY OF TUKWILA, WASHINGTON
SCHEDULE 9
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
153
154
page 1 of 2
Major Industry Sector 2009 2010 2011 2012
Construction and Contracting 869,640$ 917,250$ 1,390,952$ 961,125$
Finance, Insurance & Real Estate 119,121 99,975 115,123 143,792
Manufacturing 246,429 387,234 232,737 390,252
Transportation, Communications & Utilities 440,206 441,822 405,197 432,608
Wholesale - Durable/Non-durable Goods 1,436,045 1,346,750 1,119,527 1,077,613
Retail Trade - General Merchandise 2,072,356 2,068,263 2,003,947 2,000,865
Retail Trade - Home Furnishings/Electronics 1,304,234 1,380,407 1,771,083 1,537,143
Retail Trade - Miscellaneous 1,473,496 1,521,741 1,626,452 1,703,741
Retail Trade - Clothing & Accessories 2,017,904 2,018,304 2,037,554 2,082,930
Retail Trade - Restaurants 1,292,252 1,342,964 1,337,067 1,472,343
Retail Trade - Automotive/Gas 748,482 664,310 670,806 690,076
Retail Trade - Building Materials 589,341 499,383 487,620 516,861
Service Industries - Business 868,260 882,012 932,422 928,610
Service Industries - Hotels 453,657 428,450 459,606 487,977
Service Industries - Other 283,319 215,045 202,217 234,870
All Other Categories 208,467 366,925 553,493 381,693
Total Retail Sales Tax Collections 14,423,209$ 14,580,835$ 15,345,801$ 15,042,499$
Notes:
By State law, the City of Tukwila is prohibited from reporting individual sales tax payers.
Sources:
Tukwila Finance Department and Washington State Department of Revenue.
CITY OF TUKWILA, WASHINGTON
SCHEDULE 10
RETAIL SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
155
page 2 of 2
2013 2014 2015 2016 2017 2018
1,212,594$ 829,073$ 1,255,650$ 1,383,624$ 1,413,773$ 1,623,112$
174,705 141,010 163,161 175,060 125,978 143,696
386,964 322,189 281,501 269,117 177,788 262,700
475,688 549,126 743,746 746,115 721,413 1,016,226
1,108,771 1,592,613 2,016,722 1,295,141 1,176,868 1,309,170
2,154,523 2,137,256 2,205,778 2,202,158 2,131,267 2,187,854
1,405,274 1,431,965 1,527,377 1,623,926 1,613,643 1,649,843
1,870,200 1,973,478 1,954,150 2,032,967 2,077,239 2,131,804
2,070,198 2,013,796 2,159,647 2,089,128 2,066,858 2,084,482
1,529,101 1,611,860 1,703,187 1,751,724 1,886,139 2,009,051
690,691 765,765 825,143 743,468 800,580 1,385,284
565,734 600,610 683,485 733,928 805,324 813,656
968,996 1,073,511 1,265,789 1,467,620 1,436,825 2,051,035
502,721 562,130 626,822 650,270 650,332 717,341
246,802 274,497 273,514 253,089 267,544 394,128
525,133 468,547 978,142 845,209 812,656 115,128
15,888,089$ 16,347,426$ 18,663,814$ 18,262,544$ 18,164,227$ 19,894,510$
156
2009 (c)2010 2011 2012 2013 2014 2015 2016 2017 (c)2018
BASIC SALES TAX RATES
City of Tukwila 0.84%0.84%0.84%0.84%0.84%0.84%0.84%0.84%0.84%0.84%
Washington State 6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%
King County 0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%
Regional Transit Authority 0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%1.40%1.40%
Metro 0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%
Criminal Justice 0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%
Department of Revenue 0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Administration Fee
Total Basic Combined Sales Tax Rate 9.50%9.50%9.50%9.50%9.50%9.50%9.50%9.50%10.00%10.00%
SPECIAL SALES TAX RATES
Restaurants (a)0.50%0.50%0.50%-------
Motor Vehicles (b)0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%
Notes:
(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.
(c) 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.
SCHEDULE 11
CITY OF TUKWILA, WASHINGTON
SALES TAX RATE DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
157
158
Page 1 of 2
2009 2010 2011 2012 2013
GOVERNMENTAL ACTIVITIES
General Obligation Bonds (c)22,453,003$ 26,763,975$ 28,006,800$ 25,752,600$ 21,727,609$
Special Assessment (d)- - - - 6,687,500
Leases - 40,184 35,891 - -
Total Governmental Activities 22,453,003 26,804,159 28,042,691 25,752,600 28,415,109
BUSINESS-TYPE ACTIVITIES
General Obligation Bonds 3,423,797 3,238,825 - - -
Revenue Bonds 4,790,000 4,395,000 3,980,000 3,540,000 3,075,000
Public Works Trust Fund Loans 8,405,397 7,788,843 7,179,635 6,621,342 6,063,071
Leases - - - - -
Total Business-Type Activities 16,619,194 15,422,668 11,159,635 10,161,342 9,138,071
TOTAL PRIMARY GOVERNMENT(a)39,072,197$ 42,226,827$ 39,202,326$ 35,913,942$ 37,553,180$
Population (b)18,170 19,107 19,486 19,611 19,765
Per Capita Personal Income (b)55,512$ 56,098$ 59,371$ 66,043$ 66,692$
Percentage of Personal Income 3.87%3.94%3.39%2.77%2.85%
Debt Per Capita 2,150$ 2,210$ 2,012$ 1,831$ 1,900$
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 Tukwila Finance Department
CITY OF TUKWILA, WASHINGTON
SCHEDULE 12
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Mi
l
l
i
o
n
s
Total Debt
159
Page 2 of 2
2014 2015 2016 2017 2018
23,851,376$ 30,084,437$ 64,589,264$ 69,576,786$ 85,625,504$
6,687,500 6,082,500 5,412,500 4,805,000 4,320,000
- - - - -
30,538,876 36,166,937 70,001,764 74,381,786 89,945,504
- - - - -
2,580,000 1,742,527 1,597,704 1,454,422 1,304,763
5,742,866 5,646,458 5,046,900 4,447,522 3,848,055
- - - - -
8,322,866 7,388,985 6,644,604 5,901,944 5,152,818
38,861,742$ 43,555,922$ 76,646,368$ 80,283,729$ 95,098,322$
19,920 19,300 19,540 19,660 19,800
72,696$ 76,226$ 79,323$ 83,383 ***
2.68% 2.96% 4.95% 4.90%***
1,951$ 2,257$ 3,923$ 4,084$ 4,803$
160
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 4,320,000 1,855,519 - 72,041,267 1.17%3,664
2018 19,800 6,685,919,176 85,625,504 4,320,000 1,903,729 - 88,041,775 1.32%4,447
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
Tukwila Finance Department
Net Bonded
Debt
Fiscal
Year Population Assessed Value
CITY OF TUKWILA, WASHINGTON
SCHEDULE 13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Debt Payable
from
Enterprise
Revenues (c)
Ratio of Net
Bonded Debt
to Assessed
Value
Net
Bonded
Debt per
Capita
Gross Bonded
Debt
Special
Assessment
Debt (a)
Less Debt
Service
Funds(b)
$0
$20
$40
$60
$80
$100
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Mi
l
l
i
o
n
s
Net Bonded Debt
161
Net General Percentage Estimated
Obligation Debt Applicable to Applicable to
Jurisdiction Outstanding Tukwila(1)Tukwila
Direct:
City of Tukwila 89,945,504$ 100.00%89,945,504$
Overlapping:
King County 656,606,970 1.16%7,616,641
King County Library 77,576,089 2.04%1,582,552
Port of Seattle 362,390,000 1.16%4,203,724
Tukwila School District #406 84,883,622 99.96%84,849,669
Total Overlapping Debt:1,181,456,681 98,252,586
Total Direct and Overlapping Debt:1,271,402,185$ 188,198,090$
Sources:
King County Office of Finance
King County Office of Assessments
(1)The percentage of overlapping debt applicable is estimated using taxable county assessed property values.
CITY OF TUKWILA, WASHINGTON
SCHEDULE 14
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
AS OF DECEMBER 31, 2018
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Mi
l
l
i
o
n
s
Direct and Overlapping Debt
City of Tukwila
King County
King County Library
Port of Seattle
Tukwila School District
Hospital District
162
Page 1 of 2
2009 2010 2011 2012
Debt Limit 373,048,810$ 360,711,509$ 356,445,452$ 348,689,348$
Total net debt applicable to limit 28,291,920 32,919,123 29,703,995 25,884,632
Legal debt margin 344,756,890$ 327,792,386$ 326,741,457$ 322,804,716$
Total net debt applicable to the limit
as a percentage of debt limit 7.58%9.13%8.33%7.42%
Assessed Value as of December 31, 2018 6,673,839,922$
Debt Limit (7.5% of assessed value)500,537,994
Debt applicable to limit:
General obligation bonds 79,701,909
Other long-term debt
420,836,085
Less: Amount set aside for repayment of
general obligation debt and contracts payable
Total net debt applicable to limit 79,701,909
Legal debt margin 420,836,085$
Source:
Tukwila Finance Department
CITY OF TUKWILA, WASHINGTON
SCHEDULE 15
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
163
Page 2 of 2
2013 2014 2015 2016 2017 2018
356,728,027$ 379,055,906$ 404,649,384$ 432,273,737$ 432,273,737$ 500,537,994$
21,727,609 23,288,621 29,322,914 60,208,532 60,208,532 79,701,909
335,000,418$ 355,767,285$ 375,326,470$ 372,065,205$ 372,065,205$ 420,836,085$
6.09%6.14%7.25% 13.93% 13.93% 15.92%
164
Per Capita Personal Number of Number of Tukwila School
Fiscal Personal Income (b)Single-Family Multi-Family District Unemployment
Year Population Income (a)(in thousands)Homes Units Enrollment Rate (c)
2009 18,170 55,512 1,008,653 3,885 4,107 2,795 10.9%
2010 19,107 56,098 1,071,864 3,892 4,107 2,907 11.7%
2011 19,486 59,371 1,156,903 3,894 4,094 2,870 7.6%
2012 19,611 66,043 1,295,169 3,896 4,094 2,902 7.4%
2013 19,765 66,692 1,318,167 3,915 4,094 2,882 5.2%
2014 19,920 72,696 1,448,104 3,920 4,103 2,978 4.1%
2015 19,300 76,226 1,471,162 3,940 4,103 2,910 4.5%
2016 19,540 79,323 1,549,971 3,969 4,103 2,873 4.2%
2017 19,660 83,383 1,639,310 3,995 4,103 2,961 3.5%
2018 19,800 ******4,025 4,667 3,059 3.3%
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:
Tukwila Planning Division, Department of Community Development
State of Washington Office of Financial Management
Work Force Development Council of Seattle - King County (Unemployment Data)
Tukwila School District #406
US Bureau of Economic Analysis
CITY OF TUKWILA, WASHINGTON
SCHEDULE 16
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Unemployment Rate
165
Rank Rank
Boeing Company Aircraft Manufacturing 4,896 1 12.47%1 7,846 18.54%
Transit Operating Base 1,433 2 3.65%3 825 1.95%
Boeing Employee's Credit Union Credit Union 878 3 2.24%9 425 1.00%
Family Clothing Store 683 4 1.74%4 586 1.38%
Nordstrom Family Clothing Store 546 5 1.39%7 537 1.27%
United Parcel Service Courier and Express Delivery 478 6 1.22%8 525 1.24%
Red Dot Corporation Manufacturing 408 7 1.04%- 0.00%
Tukwila School District Education 404 8 1.03%- 0.00%
Costco Wholesale Warehouse Club 370 9 0.94%6 546 1.29%
American Medical Response Emergency Transport Service 340 10 0.87%- 0.00%
Group Health Cooperative Data Ctr/Lab/Pharmacy/Mfg.2 1,984 4.69%
Carlisle Interconnect Technologies Wire/Cable Connectors 5 570 1.35%
City of Tukwila Municipality 10 407 0.96%
Sub-total - Major Employers 10,436 14,251
All Other Employment 28,838 28,078
TOTAL EMPLOYMENT 39,274 42,329
Source:
Tukwila Finance Department - Business Licenses
King County Metro
Macy's West Stores
CITY OF TUKWILA, WASHINGTON
SCHEDULE 17
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2018 Full &
Part-Time
Employment
Percentage of
Total City
Employees
2009 Full &
Part-Time
Employment
Percentage of
Total City
EmployeesName of Company/Employer Product or Business
166
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
DEPARTMENT
Council 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Mayor (b)16.00 17.00 15.75 16.75 17.75 21.00 20.00 17.00 17.00 15.00
Human Resources 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 3.00 3.00
Finance 12.00 13.00 11.00 12.00 12.00 12.00 12.00 12.00 11.00 11.00
Recreation 22.50 20.75 16.25 16.25 16.25 16.00 16.75 17.25 16.25 16.00
Community Development 24.25 23.00 22.63 23.38 22.13 21.63 21.00 23.75 23.00 25.00
Court 9.75 8.75 8.75 9.00 9.00 9.10 8.10 9.10 10.40 9.00
Police 82.00 80.00 83.00 88.00 87.50 89.00 93.00 93.75 92.75 92.00
Fire 63.00 65.00 66.00 67.00 67.00 67.00 70.00 71.00 73.00 71.00
Information Technology 8.00 8.00 8.00 8.00 7.00 6.00 6.00 7.00 9.00 9.00
Public Works 32.00 30.00 30.00 30.00 31.00 31.00 32.00 32.00 31.00 27.00
Parks 7.50 7.50 7.50 7.50 6.00 7.00 7.00 8.00 9.00 9.00
Street 12.00 11.00 12.00 12.00 12.50 11.50 10.00 12.00 11.00 11.50
Water 7.00 7.00 7.00 7.00 7.00 7.00 6.00 7.00 7.00 7.50
Sewer 2.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 4.50
Golf 9.75 10.00 9.25 8.25 9.25 8.25 8.25 7.75 8.75 9.00
Surface Water 8.00 7.00 8.00 8.00 8.00 8.00 9.00 9.00 9.00 12.50
Equipment Rental 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Metropolitan Park District Pool (a)- - 2.00 2.00 2.00 2.00 - - - -
TOTAL 331.75 325.00 325.13 333.13 332.38 334.48 337.10 344.60 346.15 344.00
Notes:
Based on filled positions not budgeted positions.
(a) 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. In 2013 and 2014, the MPD presented as a blended component unit. Effective in 2015, the MPD is no longer a component unit.
CITY OF TUKWILA, WASHINGTON
SCHEDULE 18
FULL TIME EQUIVALENT EMPLOYEE BY DEPARTMENT
LAST TEN FISCAL YEARS
167
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
FUNCTION
Police
33,095 32,889 30,272 31,916 31,355 29,840 32,946 34,229 33,123 33,288
Fire
Number of Responses 4,654 4,574 4,649 4,844 4,604 5,156 5,549 5,754 5,840 5,734
Total Fire Loss $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 $527,687
Total Inspections 6,787 (a) 1,550 (a) 1,360 (a) 4,541 3,389 3,850 2,331 1,860 1,951 2
Parks and Recreation
Class Participants 103,603 85,693 64,049 58,260 52,319 45,514 68,970 64,782 83,030 73,906
134,183 134,275 115,728 116,136 114,748 132,397 136,984 141,218 143,872 143,160
Rounds of Golf Played 53,800 50,445 45,947 47,392 47,757 47,267 51,017 47,595 43,568 49,357
Pool Attendance **80,727 101,128 66,213 69,332 71,233 79,537 ----
Street
Miles 79 79 79 79 79 79 79 79 79 79
22,140 20,360 20,360 22,920 16,767 8,627 4,716 4,836 4,936 5,120
Signalized Intersections 59 59 59 62 62 62 62 64 66 74
6,700 6,925 6,925 7,000 8,815 3,012 2,408 2,135 2,986 2,415
Water Utility Services
Total Customers 2,112 2,100 2,109 2,117 2,118 2,126 2,145 2,160 2,176 2,185
Total Gallons/Water(in
thousands)731,469 630,755 625,976 650,659 645,982 668,740 697,147 655,472 697,210 672,700
Sanitary Sewer
Total Customers 1,694 1,699 1,710 1,727 1,742 1,752 1,775 1,789 1,808 1,836
Surface Water
Total Customers 5,204 5,207 5,207 5,212 5,226 5,239 5,242 5,249 5,282 5,286
Licenses
Business Licenses 2,422 2,454 2,611 2,030 1,877 2,208 2,220 1,909 2,120 2,078
Outside Contractors ---(b) 1,066 1,132 1,216 1,215 945 1,437 1,319
Permits
Building Permits 265 290 389 354 374 347 277 311 348 381
Mechanical Permits 159 160 180 191 221 216 154 192 198 169
Electrical Permits 821 955 1,158 1,175 1,337 1,223 1,119 1,175 1,047 1,046
Plumbing Permits 145 163 187 210 167 184 140 185 165 161
Public Works Permits 131 138 106 126 155 152 163 175 136 152
Libraries
Number of Libraries 3 2 2 2 2 2 2 2 2 2
Total Circulation 318,991 327,004 333,451 332,509 313,571 284,667 214,520 184,492 157,168 180,155
Notes:
(a) 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.
(b) 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:
Tukwila Departments, King County Library System
Hours Maintaining
Hours Maintaining
Number of Calls for Service
Community Ctr Admissions
CITY OF TUKWILA, WASHINGTON
SCHEDULE 19
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
168
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
FUNCTION
General Government
Total City Area (Square Miles)9.7 9.7 9.7 9.63 9.63 9.63 9.63 9.63 9.63 9.63
Public Safety
Police:
Number of Vehicle Units 70 76 84 88 81 89 89 93 93 80
Fire:
Number of Fire Stations 4 4 4 4 4 4 4 4 4 4
Number of Engines/Rescue Trucks/Ladders 9 8 7 7 7 9 9 9 8 8
Number of Medical Aid Vehicles 2 2 1 1 1 1 1 1 1 1
Number of Hazardous Materials Trailer Units 2 2 2 2 2 2 2 2 2 1
Transportation
Paved Streets (lane miles)178 178 178 188.2 188.2 188.2 188.2 188.2 188.2 188.2
Sidewalks (miles)56 56 56 64.8 64.8 64.8 64.8 64.8 64.8 65.0
Number of Traffic Signals 59 59 59 64 63 63 63 74 76 74
Number of Streetlights Owned by Seattle City Light 1,180 1,335 1,335 (b) 901 901 902 902 902 902 908
Number of Streetlights Owned by Puget Sound Energy 696 696 623 (b) 187 187 187 187 187 187 187
Number of Streetlights Owned by City of Tukwila ---(b) 1,210 1,216 1,224 1,224 1,224 1,224 1,224
Culture and Recreation
Parks Acreage (a)162 162 162 175.6 175.6 175.6 190 190 191 191
Number of Parks 18 18 18 19 19 19 19 19 20 20
Golf Course Acreage 67 67 67 77.26 77.26 77.26 77.26 77.26 77.26 77.26
Maintained Trails (miles)15 15 15 15 15 15 15 15 15 15
Number of Playgrounds 11 11 11 11 11 11 11 11 11 11
Swimming Pool 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 2 2 2 2 2 2 2 2 2
Water
Water Distribution Mains (miles)41 41 41 41 41 49 49 49 49 49
Maximum Daily Capacity (millions of gallons)10 10 10 10 10 10 10 10 10 10
Number of Fire Hydrants (Owned by City of Tukwila)541 542 554 576 576 576 577 577 579 579
Vehicles 8 8 8 8 8 9 9 9 9 8
Sewer
Sanitary Sewers (miles)37 37 37 37 37 37 37 37 39 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 5 4 4 5 5 3
Surface Water
Storm Drains (miles)69 69 70 70 70 70 71 70.5 97.4 97.4
Vehicles 4 4 4 4 4 8 8 8 8 9
Notes:
Sources:
Various Departments-Tukwila
(b) Reflects changes in 2012 inventory and ownership of street lights due to the routing of
more units into the City's meters. Also, additional street lights were added due to new
construction for Southcenter Parkway Extension and Klickitat Projects.
(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.
CITY OF TUKWILA, WASHINGTON
SCHEDULE 20
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
169