HomeMy WebLinkAboutRes 2010 - DOCUMENT: 2021-2026 Financial Planning Model and Capital Improvement Program
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City of Tukwila, Washington
To provide superior services
Caring
The city of opportunity,
that support a safe, inviting and
Professional
the community of choice
healthy environment for our
Responsive
residents, businesses and guests.
A community of inviting neighborhoods and vibrant business districts
Cultivate community ownership of shared spaces.
Build a broad and collaborative approach to preventing crime and increasing the sense of safety.
Focus City planning and investments on creating a connected, dynamic urban environment.
A solid foundation for all Tukwila residents
Strive for excellent education, vocational supports, and personal growth opportunities
Encourage maintenance, improvements and diversity in the City’s housing stock.
A diverse and regionally competitive economy
Embrace the City’s economic potential and strengthen the City’s role as a regional
business and employment center.
Strengthen the City’s engagement and partnership with the business community.
Advance Tukwila’s interests through participation in regional partnerships.
A positive community identity and image
Improve the City’s ability to build trust and work with all members of the Tukwila community.
Facilitate connections among Tukwila’s communities.
Promote a positive identity and image of Tukwila.
City of Tukwila
Allan Ekberg, Mayor
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January 7, 2021
Dear Tukwila City Councilmembers and Community,
I am pleased to present the final 2021-2026 Capital Improvement Program (CIP) to the members of the Tukwila City Council
and broader community. The CIP is a critical planning document and companion of the broader biennial budget that outlines
rs.
Like every other jurisdiction in the region, Tukwila has been adversely impacted by revenue reductions associated with the
coronavirus pandemic. Due to the collaboration with the Council, the City was able to respond early and make difficult financial
and service decisions that placed the City in a better place to create a balanced 2021-
values of caring for our community, professionally serving our residents and businesses and being responsive to our youth,
families and seniors. These actions, as well as additional savings identified in the 2021-2022 budget have allowed the City to
develop a CIP that maintains critical infrastructure investments. I am excited to share with you some of the highlights.
Public Safety Plan
In November of 2016, the public entrusted the City with additional resources to support the and the City
has been good stewards of these funds. The projects are on-time and on-budget and some have already opened. This CIP
continues that commitment. Here are the highlights of the Public Safety Plan CIP projects:
Opened the Justice Center and Fire Station 51 on-time and on-budget
Will open new headquarters Fire Station 52 in 1 Quarter 2021 on-time and on-budget
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Phase I - Public Works Fleet and Facility services is scheduled to go out to bid this year to take advantage of a
competitive bidding environment, with construction scheduled to be completed in 2021. This will move our staff to a
seismically safe building that will also meet regulatory standards.
Additional investments in our arterial streets, utilities and bridges are also key, particularly given the role we play as an
economic engine for the entire state. The economic health of our region relies on the ability of goods, employees, and
shoppers to get in and out of our central business district and employment centers on the north and south ends of our city.
Here are some examples of critical investments being made in our community in this CIP:
Utilities this budget increases the level of investment to implement strategic plan goals of upgrading facilities, ensuring
future water storage for our community, improving fish passage, and maintaining our levees.
Street Overlays the Proposed 2021-2022 budget restores overlays to originally planned levels of $1.4 million per year
to maintain our high pavement rating.
42nd Ave South Bridge included in the CIP is approval for 30% design to ensure we are competitive for grants at the
state and federal level. Our state legislators and funding partners all recommend moving forward with design to be
more competitive for grants and future funding for this deficient bridge that serves our Allentown community.
Planning for teens and seniors this CIP includes funding for the initial programming and feasibility study of a new
teen and senior center in the Tukwila International Boulevard neighborhood. Outreach and community engagement
will begin in the first quarter of 2021 to ensure this proposed new facility includes programs and amenities to support
our diverse senior and teen communities.
These are just some of the investments we will make over the coming biennium, all of which are consistent with our adopted
Strategic Plan and the budget priorities previously identified by the Council and Administration. The CIP is a living document
that will be used as a roadmap and planning tool, particularly as we identify additional grants to fund projects in future biennia.
We have a lot of investments ahead in our community, and even during difficult budget times, it is critical that we continue
these investments to ensure the long-term sustainability of our economy, infrastructure, and community.
Sincerely,
Allan Ekberg
Mayor
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CITY ADMINISTRATION
Mayor Allan Ekberg
City Administrator David Cline
Deputy City Administrator Rachel Bianchi
City Attorney Kari Sand
Finance Director Vicky Carlsen
Community Development Director Jack Pace
Parks and Recreation Director Rick Still
Interim Public Works Director Hari Ponnekanti
Fire Chief Jay Wittwer
Interim Police Chief Eric Drevers
Human Resources Director Juan Padilla
Deputy Administrative Service Director/CIO Joel Bush
City Clerk
2021 2026 ADOPTED FINANCIAL PLANNING MODEL AND
CAPITAL IMPROVEMENT PROGRAM
PREPARED BY:
PUBLIC WORKS PERSONNEL FINANCE PERSONNEL
Hari Ponnekanti Vicky Carlsen
Gail Labanara Tony Cullerton
Ryan Larson Jeff Friend
Cyndy Knighton Richard Takechi
Adib Altallal Aaron Williams
Adam Cox Sherry Wright
Mike Perfetti Diane Jaber
Mike Ronda Cindy Wilkens
Scott Bates Joanna Fortenberry
Greg Villanueva Elveena Narayan
Russell Betteridge Karen Fricke
Tanya Taylor Dalene Qualls
Jenn Ronda
CITY OF TUKWILA
ADOPTED 2021 - 2026
FINANCIAL PLANNING MODEL &
CAPITAL IMPROVEMENT PROGRAM
TABLE OF CONTENTS
Page
Resolution No. 2010 - Adopted Planning Model
and CIP for Period 2021 - 2026
I
Resolution No. 2014 Financial Policies
III
Resolution No. 1840 Debt Policies
X
Planning Model Summary
6-Year Financial Forecast - Revenues & Expenditures Governmental FundsXIX
Attachment B General Fund Departmental ExpendituresXXI
Operating Transfers - Debt ServiceXXV
Attachment C General Government Capital Projects
Funding by City and Other SourcesXXVIII
Attachment D Water Enterprise Fund SummaryXXXII
Attachment E Sewer Enterprise Fund SummaryXXXIV
Attachment F Surface Water Enterprise Fund SummaryXXXVI
Attachment G Golf Enterprise Fund SummaryXXXVIII
Capital Improvement Program
General Government
Residential Streets 103 Fund1
Bridges/Arterial Streets 104 Fund7
Parks & Trails 301 Fund 25
Urban Renewal 302 Fund 41
General Improvements 303 Fund 45
Public Safety Plan 305 Fund 49
City Facilities 306 Fund 55
Enterprise Funds
Water Projects 401 Fund 59
Sewer Projects 402 Fund 67
Surface Water 412 Fund 77
Golf Course 411 Fund 95
2021 - 2026 Financial Planning ModelIII
2021 - 2026 Financial Planning ModelIV
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2021 - 2026 Financial Planning ModelVIII
2021 - 2026 Financial Planning ModelIX
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2021 - 2026 Financial Planning ModelXII
2021 - 2026 Financial Planning ModelXIII
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2021 - 2026 Financial Planning ModelXV
2021 - 2026 Financial Planning ModelXVI
2021 - 2026 Financial Planning ModelXVII
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6-Year Financial Plan
2021 2026 Analysis
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-2022 and 2023-2024 biennium, but not in2025 or2026 due to
conservative budget projections. This is consistent with 6-year forecasts found in previously adopted budgets.
With many unknowns regarding the COVID-19 pandemic estimates are extremely conservative for the upcoming
biennium. If revenues exceed expectations in 2020 and 2021, it is very likely that 2025 and 2026 will meet
reserve policy as well without changes to capital or operational plans.
All ongoing expenditures and debt service requirements are met without drawing down fund balance. The 6-year
financial plan is used for planning purposes only and is updated with each budget cycle. The plan will be adjusted
as necessary to ensure the Reserve Policy continues to be met in each year. The Reserve policy, as revised in
2015, requires a general fund minimum fund balance of 18%, as calculated on the prior year ongoing general
fund revenue. Also, a new discretionary reserve was added to the policy. Under this section, 10% of one-time
revenue realized in the previous year will be set aside as a one-time revenue reserve, to the extent doing so
does not negatively impact compliance with the general fund minimum fund balance requirement. Indication of
compliance with the new minimum balance reserve requirement and the former requirement is demonstrated in
the chart below.
Expenditures in 2021 through 2026 have been projected to increase based on the chart below. Expenditures will
be closely monitored to ensure that ongoing revenues continue to support ongoing expenditures.
EXPENDITURE ASSUMPTIONSCURRENT SIX YEAR PLAN ANNUAL CHANGE
CURRENT SIX YEAR PLAN ANNUAL CHANGE
22-2323-2424-2525-26Salaries & Benefits22-2323-2424-2525-26
REVENUE ASSUMPTIONS Salaries2.0%2.0%2.0%2.0%
Sales Tax5.0%2.5%2.5%2.5% Overtime2.0%2.0%2.0%2.0%
Use Tax2.0%2.0%2.0%2.0% Extra Labor0.0%0.0%0.0%0.0%
Property Tax3.0%3.0%3.0%3.0% Holiday Pay2.0%2.0%2.0%2.0%
Business Tax2.5%2.5%2.5%2.5% Medical & Dental5.0%5.0%5.0%5.0%
Charges for Services1.5%2.0%2.0%2.0% FICA2.0%2.0%2.0%2.0%
Other Income2.0%2.0%2.0%2.0% Pension-PERS/PSERS2.0%2.0%2.0%2.0%
Licenses & Permits2.5%2.5%2.5%2.5% Industrial Insurance0.0%0.0%0.0%0.0%
Transfers In-ICA
2.0%2.0%2.0%2.0% Pension-LEOFF 22.0%2.0%2.0%2.0%
Uniform/Clothing0.0%0.0%0.0%0.0%
Transfers In-OTHER
0.0%0.0%0.0%0.0%
Unemployment0.0%0.0%0.0%0.0%
Intergovernmental Revenue2.5%2.5%2.5%2.5%
Operations Supplies
Fines & Penalties1.0%1.0%1.0%1.0%
Rentals and Leases2.0%2.0%2.0%2.0%
Professional Services0.2%0.2%0.2%0.2%
Ext Taxes, Oper. Assess0.0%0.0%0.0%0.0%
Inter-Governmental0.0%0.0%0.0%0.0%
Public Utilities3.0%3.0%3.0%3.0%
Miscellaneous0.0%0.0%0.0%0.0%
Insurance5.0%5.0%5.0%5.0%
Repairs and Maintenance0.0%0.0%0.0%0.0%
Communication0.0%0.0%0.0%0.0%
Travel0.0%0.0%0.0%0.0%
Advertising0.0%0.0%0.0%0.0%
Office & Operating Supplies0.0%0.0%0.0%0.0%
Small Tools & Minor Equipment0.0%0.0%0.0%0.0%
Items Purchased for resale0.0%0.0%0.0%0.0%
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Attachment B -General Fund Departmental Expenditures
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ATTACHMENT A-1
NOTES TO 6-YEAR FINANCIAL PLAN
REVENUES, EXPENDITURES AND FUND BALANCE
GENERAL
Purpose
The purpose of the Financial Planning Model is to:
1. Assess the financial health of the City over a 6-year period.
2. Demonstrate the impact of policy decisions on the C
3. Assist in the productive use of financial resources.
4. Demonstrate compliance with the Reserve Policy.
5. Determine the impact of changing economic conditions and assumptions on the plan and the
Structure
and communicated through the Budget and Reporting System (BARS). The 6-year financial plan of the
Financial Planning Model reflects the revenues and expenditures of the General Fund and impacts to
other governmental funds via transfers from the General Fund to other funds and transfer into the
General Fund from other funds. It is divided into the following sections:
Revenues
Expenditures
Operating Results
Capital
Fund Balance Details
Reserve Policy Compliance
Revenues include all revenues not restricted or dedicated for specific uses. They support operations
and are considered part of ordinary governmental activities and include revenues such as taxes,
charges for services, licenses & permits, intergovernmental revenue, fines & penalties, and
miscellaneous revenue. With the exception of grant funding, these revenues are considered to be
ongoing. Also included in revenues are transfers in. Transfers in are one-time revenue received from
other funds and transfer into the General Fund to pay for capital needs or debt service specific to the
Public Safety Plan.
Expenditures are for general operating and maintenance and include salaries and benefits, supplies,
and services to provide a wide variety of services to our residential and business communities.
Expenditures also includes annual transfers to debt service funds as well as transfers to the
.
Operating results demonstrate if ongoing revenues are meeting annual maintenance and operational
costs. Operating results do not reflect revenue or expenditures specific to capital projects.
The capital section includes transfers out to capital project funds. These transfers provide funding for
roadway projects including annual overlay, and general repairs and improvements to City owned
facilities. The 2021-2022 biennium also includes transfers to fund technology.
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Fund balance details show the beginning fund balance for each year, change in fund balance, and
ending fund balance.
Reserve policy compliance demonstrates whether or not ending fund balance each year is at least 18%
of previous year ongoing revenue.
GENERAL REVENUES
General revenues have been projected to increase by 2% in 2023 2026. This rate is lower than historical
increases and takes into consideration the ongoing effects of the pandemic.
Sales Tax
This revenue category includes retail sales tax, criminal justice sales tax and natural gas use tax.
Retail sales tax has historically comprised 94% to 96% of this revenue category but has been
particularly hard hit by the pandemic.
Property Taxes
Property tax revenue is limited to a 1% annual increase plus taxes generated by new construction and
annexations.
Utility Taxes
A utility tax was approved beginning in 2003 at an initial rate of 4%, increased to 5%, and to 6% in
2007. The tax applies to electric, natural gas, and communications sales. In 2009, Council adopted a
6% utility tax on solid waste collection in the City. The solid waste utility tax was increased in 2019 to
11% in November of 2019 and to 16% effective July 1, 2020. The increase applies only to commercial
properties.
Interfund Utility Taxes
A 15% utility tax on revenue from City owned utilities was established in 2009 to provide funds for flood
mitigation measures when the structural integrity of the Howard Hanson Dam was impaired. On May
1, 2010, the tax was reduced to 10%. In 2014, the tax was extended through 2021. Staff expects to
present legislation early in 2021 to extend this tax an additional five year.
Gambling Taxes
The gambling tax revenue category comprises gambling, admission, and leasehold taxes. Historically,
gambling taxes have constituted 91% to 96% of the category.
Licenses and Permits
This revenue category includes business licenses, residential rental licenses and permits related to
construction, e.g. building, electrical, mechanical, and plumbing permits; and special fire permits.
Seattle City Light (SCL) Agreement
The City entered into a contract agreement with SCL in 2003 with a 4% contract payment. The rate
was increased to 5% in 2006 and to 6% in 2007. The rate currently remains at 6%.
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Intergovernmental Revenue
Intergovernmental revenue includes State shared liquor taxes and profits, operating grants, and the
emergency services (EMS) allocation and other revenue from other governments.
Charges for Services
This revenue category includes Court related fees such as adult probation and record check fees; fees
generated by the Community Development department for plan check and structural reviews; fire
inspection and re-inspection fees and recreation fees for youth, senior and other programs
Indirect Cost Allocations
Service Funds, and the Enterprise Funds. The fees are expected to increase at the same rate as
operating and maintenance costs.
One-time Revenues
One-time revenues include real property sales for surplus property. In this model, the one-time revenue
derives from transfers into the general fund from the urban renewal fund for realized land sales and
from anticipated motel property land sale. Additional land sales are planned as funding for the Public
Safety Plan and have been included in the D-20 financial framework since 2018.
DEDICATED REVENUES
These revenues are recorded directly into the project funds they support and help pay for project costs, but
are not tied to a specific project.
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OPERATING TRANSFERSDEBT SERVICE
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Debt Service for PW Shops
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(fees must be used within 10 years).
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P - Preservation accounting codes per GASB 34
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(fees must be used within 10 years).
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Park Impact Fees were effective January 1, 2009, per Ordinance 2366
Updated in 2018 per Ordinance No. 2572
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Fire Impact Fees effective January 1, 2009, Ordinance 2365.
Amended on 12/1018 by Ordinance No. 2598
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