HomeMy WebLinkAbout2023 Comprehensive Annual Financial Report (CAFR)Annual Comprehensive
Financial Report
For the fiscal year ended December 31, 2023
City of Tukwila,
Washington
VISION
The city of opportunity,
the community of choice
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City of Tukwila, Washington
MISSION
To provide superior services
that support a safe, inviting and
healthy environment for our
residents, businesses and guests.
VALUES
Caring
Professional
Responsive
STRATEGIC GOALS AND OBJECTIVES
A community of inviting neighborhoods and vibrant business districts
+ Cultivate community ownership of shared spaces.
+ Build a broad and collaborative approach to preventing crime and increasing the sense of safety.
♦ Focus City planning and investments on creating a connected, dynamic urban environment.
♦ Use City efforts and investments to realize established visions for specific sub -areas.
♦ Build and maintain public infrastructure that supports a healthy and attractive built
and natural environment.
A solid foundation for all Tukwila residents
♦ Partner with organizations that help meet the basic needs of all residents.
♦ Strive for excellent education, vocational supports, and personal growth opportunities
through effective partnerships and City services.
♦ Encourage maintenance, improvements and diversity in the City's housing stock.
+ Work to eliminate systemic barriers and provide equitable access to opportunities and
services as outlined in the City's Equity Policy.
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.
♦ Encourage development, maintenance, improvements, and diversity in the City's
stock of business space.
A high -performing and effective organization
♦ Use Tukwila's Vision, Mission, and Strategic Plan to focus and prioritize City efforts.
♦ Advance Tukwila's interests through participation in regional partnerships.
♦ Continue to develop as an organization and support individual growth.
♦ Ensure City facilities are safe, efficient and inviting to the public.
♦ Ensure the long-term fiscal sustainability of the City.
A positive community identity and image
♦ Improve the City's ability to build trust and work with all members of the Tukwila community.
♦ Facilitate connections among Tukwila's communities.
♦ Promote a positive identity and image of Tukwila.
The City of Tukwila, Washington
ANNUAL
COMPREHENSIVE
FINANCIAL REPORT
For the Year Ended December 31, 2023
Prepared by the City of Tukwila, Finance Department
Vicky Carlsen, Finance Director
Allan Ekberg, MAYOR
2023 TUKWILA CITY COUNCIL
Cynthia Delostrinos Johnson, Council President
Kathy Hougardy
Kate Kruller
Tosh Sharp
De'Sean Quinn
Thomas McLeod
Mohamed Abdi
CITY OF TUKWILA: 2023 ACFR TABLE OF CONTENTS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended December 31, 2023
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 28
Statement of Activities 29
Fund Financial Statements:
Balance Sheet — Governmental Funds 30
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 31
Statement of Revenues, Expenditures, and Changes in
Fund Balance — Governmental Funds 32
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 33
Statement of Net Position — Proprietary Funds 34
Statement of Revenues, Expenses, and Changes in
Net Position — Proprietary Funds 35
Statement of Cash Flows — Proprietary Funds 36
Statement of Fiduciary Net Position — Fiduciary Funds 38
Statement of Changes in Fiduciary Net Position — Fiduciary Funds 39
Notes to the Financial Statements 40
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
Schedule of Proportionate Share of the Net Pension Liability 105
Schedule of Employer Contributions 106
Firemen's Pension Trust Fund 107
Retiree Medical and Long -Term Care Benefits for LEOFF I Employees 109
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: 2023 ACFR TABLE OF CONTENTS
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 Tax Special Revenue Fund 124
Drug Seizure Special Revenue Fund 125
Residential Street Capital Project Fund 126
Land & Park Acquisition Capital Project Fund 127
Urban Renewal Capital Project Fund 128
General Government Improvements Capital Project Fund 129
Fire Improvements Capital Project Fund 130
Special Assessment Bonds Guaranty Fund 131
Unlimited Tax General Obligation Debt Service Fund 132
Limited Tax General Obligation 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
III. STATISTICAL SECTION
Schedule
Net Position by Component 1 140
Changes in Net Position 2 142
Fund Balances, Governmental Funds 3 144
Changes in Fund Balances of Governmental Funds 4 146
General Government Tax Revenues by Source 5 148
Property Tax Levies and Collections 6 149
Assessed and Estimated Actual Value of Taxable Property 7 150
Property Tax Rates — Direct and Overlapping Governments 8 151
Principal Property Taxpayers 9 152
Retail Sales Tax Collections by Sector 10 154
Sales Tax Rate Direct and Overlapping Governments 11 156
Ratios of Outstanding Debt by Type 12 158
Ratios of General Bonded Debt Outstanding 13 160
Computation of Direct and Overlapping Debt 14 161
Legal Debt Margin Information 15 162
Demographic Statistics 16 164
Principal Employers 17 165
Full -Time Equivalent City Government Employees by Department 18 166
Operating Indicators by Function 19 167
Capital Assets by Function 20 168
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CITY OF TUKWILA: 2023 ACFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
ADMINISTRATIVE ORGANIZATIONAL STRUCTURE
AND PRINCIPAL OFFICIALS, as of December 31, 2023
RESIDENTS
CITY OF TUKWILA
r
CITY COUNCIL
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FIRE
Puget Sound Regional
Fire Authority
(contracted)
MAYOR
Allan Ekberg
C TY
ADMINISTRATOR
David Cline
MUNICIPAL
COURT
Kimberly Walden
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CITY ATTORNEY
Ogden Murphy
Wallace, PLLC
ADMINISTRATIVE SERVICES
Marty Wine,
Deputy City Administrator
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FINANCE
Vicky Carlsen
r
PARKS & RECREATION
Pete Mayer
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/
COMMUNITY
DEVELOPMENT
Nora Gierloff
2023 COUNCIL COMMITTEES
COUNCIL PRESIDENT
Cynthia Delostrinos-Johnson
FINANCE & GOVERNANCE COMMITTEE
Kate Kruller, Chairperson
Kathy Hougardy, Member
De'Sean Quinn, Member
COMMUNITY SERVICES & SAFETY
Mohamed Abdi, Chairperson
Thomas McLeod, Member
Tosh Sharp, Member
PUBLIC WORKS
Hari Ponnekanti
POLICE
Eric Dreyer
TRANSPORTATION & INFRASTRUCTURE SERVICES
Tosh Sharp, Chairperson
Kate Kruller, Member
Mohamed Abdi, Member
PLANNING & COMMUNITY DEVELOPMENT
Kathy Hougardy, Chairperson
De'Sean Quinn, Member
Thomas McLeod, Member
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CITY OF TUKWILA: 2023 ACFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
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City of Tukwila
6200 Southcenter Blvd, Tukwila, WA 98188 Thomas McLeod, Mayor
November 21, 2024
Honorable Thomas McLeod, Mayor
Members of the Tukwila City Council
Citizens of Tukwila
City of Tukwila
6200 Southcenter Boulevard
Tukwila, WA 98188-2599
Subject: TRANSMITTAL OF 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT
I am pleased to transmit the City of Tukwila's Annual Comprehensive Financial Report (ACFR) for the
year ended December 31, 2023. 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 ACFR 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 ACFR 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 prepares 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.
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CITY OF TUKWILA: 2023 ACFR 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, 2022
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 22,780, making it the 51 st 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 &
fire protection, emergency medical services, construction & maintenance of streets and traditional
municipal infrastructure, planning & zoning, parks & 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.
The City adopts 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, both
special revenue funds, all four debt service funds, and all eight capital project funds are included in the
biennially appropriated operating budget and have budget to actual statements presented for 2023.
Budgets for the general fund, special revenue, debt service, and capital funds are appropriated biennially.
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: 2023 ACFR LETTER OF TRANSMITTAL
LOCAL ECONOMY
Tukwila has a strong local economy, largely due to its location within the Puget Sound region's robust
economy. The Puget Sound region benefits from a world -class natural environment, excellent
universities, and the headquarters of world -class companies such as Amazon, Microsoft, and Starbucks.
The region has tens of thousands of excellent jobs in leading high-tech fields such as aerospace, life
sciences and global health, information and computing, gaming, and more. It also has strong industry
clusters in manufacturing, maritime, military, tourism, and transportation and logistics. The
Seattle/Bellevue/Everett area had a large labor force of 1.82 million in December of 2023, which was an
increase compared to the previous year. At the same time the already low unemployment rate increased
from 3.2% to a still low 3.6%.
Tukwila is located at the center of the Puget Sound region. As such, it has excellent transportation with
one of the State's busiest interchanges (1-5 at 1-405), a commuter train station, a light rail station, multiple
bus routes including two Rapid Ride lines, and a future bus rapid transit station. The City also has easy
access to Sea-Tac International Airport, King County International Airport, and the Ports of Seattle and
Tacoma.
Although Tukwila is small based on square miles and residential population, it has a lot of jobs. Averaging
over 40 thousand jobs, more people are employed in the City of Tukwila than in 27 of the 39 counties in
the State of Washington. Over two thirds of those jobs are in services, manufacturing, and retail. The City
is home to the headquarters of industry leaders and brands such as BECU, Continental Mills, La
Panzanella, LeoStella, Red Dot Corporation, Sabey Corporation, Sahale Snacks, and Seattle
Chocolates. Tukwila is also home to hundreds of small businesses, many of which are owned by
members of the City's diverse international community.
Anchored by Westfield Southcenter, which is the largest mall in the Pacific Northwest, Tukwila has a
large retail economy. With a large presence of Boeing and other aerospace companies, Tukwila is also
strong in manufacturing. Although the Boeing Company has endured many challenges over the past few
years, it still employs thousands of people in Tukwila. Boeing continues to go through significant change
but it is anticipated that the aerospace and technology sectors will continue with the strength of aerospace
in the region.
Retail business significantly dropped during 2020 due to the COVID pandemic. In 2021 and 2022 retail
returned to pre -pandemic levels, except when adjusted for inflation. The tourism economy as indicated
by lodging tax revenue has rebounded to pre -pandemic levels. Industrial space has lower vacancy rates
and higher property values than ever before. These trends continued through 2023. Although
construction slowed during the pandemic, it still continued and total permit value for 2023 was only slightly
lower than 2022 values; $186 million vs $188 million.
Over the past twenty years, the number of jobs in Tukwila covered by Washington State's unemployment
insurance has ranged from a low of 41,500 to a high of 48,700. Employment has fluctuated over those
years with 2019's pre -pandemic numbers being slightly above average. 2021 employment was ten
percent below 2019's pre -pandemic levels with the decline primarily in services, retail, and
manufacturing. Depending on macro -economic events, we anticipate employment over the next few
years returning to pre -pandemic levels.
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 $2.55 billion dollars in taxable retail sales in 2023. The total retail sales tax
revenue amounted to $21.69 million in 2023, representing an increase of 4.0% from the $20.85 million
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CITY OF TUKWILA: 2023 ACFR LETTER OF TRANSMITTAL
collected in the prior year (Statistical section, schedule 10). Although this shows a significant increase
over 2022 levels, most of this increase can be attributed to high inflation that continued into 2023.
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 $9.5 billion, which is an
increase of 6.23% from 2022, allowing the City to pursue a long-term capital investment program. The
City's 2023-2028 Capital Improvement Program, which is adopted every two years, anticipates
approximately $138 million in general government capital projects, with only $5.65 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.
MAJOR INITIATIVES
The City made significant investments of time and financial resources into key public projects in 2023.
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 project staff continued to move forward on design of the 42nd Ave S Bridge
Replacement. Approximately $31.5 million in federal, state and local funds have been awarded for the
project. This structure serves as the connection to the residential community and the BNSF railroad
Intermodal Yard. The 60% plans and estimate was submitted to the City, reviewed internally, and
returned to the design consultant with comments. With the 60% plans and estimate returned to the
design consultant, the permit team could determine which permits needed to be applied for and the
estimated timeframe of the permit acceptance.
The City began work on the Transportation Element of the Comprehensive Plan in 2023 and will
complete the update in 2024, including establishing a Local Road Safety Plan. West Valley
Highway/Longacres Way roadway project saw most of the work completed in 2023 but some efforts
continue into 2024. It is anticipated that the bulk of the work will be fully completed in 2024, but a
possibility of a signal pole replacement (recently determined would be required) could possibly see an
extension into 2025 due to the long -lead time in obtaining the pole and mast arm.
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 $2 million for a 3 year project to reline the aging, existing pipes throughout the
City. The City completed phase 1 of the Sewer Lift Station 2 construction late in 2022 and is looking to
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CITY OF TUKWILA: 2023 ACFR LETTER OF TRANSMITTAL
start the construction of phase 2 later in 2024. Phase 2 will see improved maintenance access and
safety improvements to provide reliable service to the area.
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 annual
comprehensive financial report for the fiscal year that ended December 31, 2022. This was the 36th
consecutive year that Tukwila has achieved this prestigious award. To be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized annual
comprehensive 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 annual
comprehensive 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 2023 Annual Comprehensive
Financial Report take great pride in their work, and the entire team who worked on this project is to be
commended.
espectfully submitted,
Aaron BeMiller
Finance Director
CITY OF TUKWILA: 2023 ACFR LETTER OF TRANSMITTAL
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CITY OF TUKWILA: 2023 ACFR LETTER OF TRANSMITTAL
GD
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Tukwila
Washington
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2022
Executive Director/CEO
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INDEPENDENT AUDITOR'S REPORT
Report on the Audit of the Financial Statements
City of Tukwila
January 1, 2023 through December 31, 2023
Council
City of Tukwila
Tukwila, Washington
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinions
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, 2023, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements as listed in the
financial section of our report.
In our opinion, the accompanying 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, 2023, and the respective changes in financial position and cash flows thereof
for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (GAAS) and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for
the Audit of the Financial Statements section of our report. We are required to be independent of
the City and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinions.
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Responsibilities of Management 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, and
for 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.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the City's
ability to continue as a going concern for twelve months beyond the financial statement date,
including any currently known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
Performing an audit in accordance with GAAS and Government Auditing Standards includes the
following responsibilities:
• Exercise professional judgment and maintain professional skepticism throughout the audit;
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements;
• Obtain an understanding of internal control relevant to the audit 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, no such opinion
is expressed;
• Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements;
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• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City's ability to continue as a going
concern for a reasonable period of time; and
• Communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal
control -related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and required supplementary information listed in the
financial section of our report be presented to supplement the basic financial statements. Such
information is the responsibility of management and, 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.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING
STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated
November 18, 2024 on our consideration of the City's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of the City's internal control over financial reporting or on
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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.
Pat McCarthy, State Auditor
Olympia, WA
November 18, 2024
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CITY OF TUKWILA: 2023 ACFR AUDITOR'S OPINION LETTER
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CITY OF TUKWILA: 2023 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2023
The management discussion and analysis section of the City of Tukwila's Annual Comprehensive Financial Report
provides an overview of the City's financial activities for the year ended December 31, 2023. 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, 2023, the City of Tukwila's total assets and deferred outflows of resources exceeded
liabilities and deferred inflows of resources by $377.7 million. Of this amount, $70.4 million represents
unrestricted net position, which may be used to meet the government's ongoing obligations to residents
and creditors.
• The City of Tukwila's total net position increased $13.3 million, or 3.7%. Governmental activities increased
$8.1 million due in part to generally improving revenues, offset by rising expenditure costs. Business -type
activities increased $5.2 million which was primarily driven by rate increases which helped offset rising
costs. These increases were offset by the operations transfer of the City's fire department to a legally
separate regional fire authority, which included a reduction in capital assets and net pension assets.
• Government -wide, the City transferred $8.5 million in assets (net book value of $3.2 million) to the Puget
Sound Regional Fire Authority.
• At the close of the current fiscal year, the City of Tukwila's governmental funds reported combined fund
balances of $47.0 million, an increase of $3.4 million (7.8%). Approximately 51.8% ($24.4 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 assets, liabilities, and deferred
inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City of Tukwila is improving or
deteriorating.
The Statement of Activities presents information designed to show how the City's net position changed during the
year. The statement distinguishes revenue generated by specific functions from revenue provided by taxes and
other sources not related to a specific function. The revenue generated by the specific functions (charges for
services, grants, and contributions) is compared to the expenses for those functions to show the degree to which
each function supports itself or relies on taxes and other general funding sources for support. All activity on this
statement is reported on the accrual basis of accounting, requiring that revenues are reported when they are earned
and expenses are reported when they are incurred, regardless of when cash is received or disbursed. Items such
15
CITY OF TUKWILA: 2023 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
as (but not limited to) uncollected taxes, unpaid vendor invoices for goods or services received during the year, and
earned but unused vacation leave are included in the statement of activities as revenue and expenses even though
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 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 fifteen individual governmental funds. Of these, five are considered major (the general fund, the
arterial street fund, the local improvement district #33 fund, the public safety plan fund, and city facilities 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.
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 residents, while internal service funds are used to account for goods
16
CITY OF TUKWILA: 2023 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
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 Custodial 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: 2023 ACFR 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 $377.7 million at the close of the most recent fiscal year. Total net position increased by $13.3 million
(3.7%) when compared to 2022.
CITY OF TUKWILA'S NET POSITION
(in thousands)
Governmental Activities
Business -type Activities Total
2023 2022 2023 2022 2023 2022
Current and other assets
Capital assets, net of
accumulated depreciation
Total assets
Deferred Outflows of Resources
Long-term liabilities
Net pension liability
Total OPEB liabilities
Other liabilities
Total liabilities
Deferred Inflows of Resources
$92,626
$94,196 $31,707
324,239 330,014
$28,334 $124,334 $122,530
77,585 77,653
401,824 407,667
416,865 424,210
109,293 105,987
526,158 530,198
13,879 11,896 816 975 14,695 12,871
133,492 141,384
1,950 2,480
4,642 5,962
13,502 12,626
1,892 2,557 135,384 143,940
451 572 2,401 3,053
- 4,642 5,962
578 1,439 14,080 14,064
153,586 162,452
2,921 4,568 156,507 167,019
6,045 10,664
605 1,029 6,650 11,693
Net position
Net investment in
capital assets 196,460 199,058 76,180 75,309 272,640 274,366
Restricted 33,388 28,835 1,262 - 34,650 28,835
Unrestricted 41,264 35,098 29,141 26,057 70,405 61,155
Total net position $271,113 $262,991 $106,583 $101,365 $377,695 $364,356
By far, the largest portion of the City's net position ($272.6 million or 72.2%) reflects its investment in capital assets
(e.g., land, buildings, machinery, equipment, vehicles, and infrastructure), less any related outstanding debt that
was used to acquire those assets. The City uses these capital assets to provide a variety of services to residents.
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 ($34.7 million or 9.2%) represents resources that are subject to
external restrictions on how they may be used. The business -type activities restrictions are limited to the portion
related to net pension assets, the remaining $33.4 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 ($70.4
million, or 18.6%) 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 $13.3 million (3.7%) from the prior fiscal year. The reasons for
this overall increase are discussed in the following sections for governmental activities and business -type activities.
18
CITY OF TUKWILA: 2023 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
CITY OF TUKWILA'S CHANGES IN NET POSITION
(in thousands)
Governmental Activities
Business -type Activities Total
2023 2022 2023 2022 2023 2022
Revenues:
Program revenues
Charges for services $19,193 $15,969 $28,147 $26,244 $47,341 $42,213
Operating grants and contributions 3,802 2,771 2 364 3,803 3,135
Capital grants and contributions 1,874 3,469 681 175 2,554 3,644
General revenues
Property taxes 22,157 21,852 - 22,157 21,852
Sales and use taxes 22,852 21,977 - 22,852 21,977
Hotel/Motel taxes 971 897 - 971 897
Utility taxes 5,433 3,950 - 5,433 3,950
Interfund utility taxes 2,567 2,405 - 2,567 2,405
Business taxes 1,625 2,684 - 1,625 2,684
Excise taxes 5,465 6,609 - 5,465 6,609
Investment earnings 2,496 (107) 1,287 3,783 (107)
Miscellaneous 2,286 3,646 57 2,342 3,646
Total revenues 90,720 86,122 30,174 26,783 120,893 112,905
Expenses:
General government 15,092 14,314 - 15,092 14,314
Public safety 33,191 35,504 - 33,191 35,504
Transportation 15,429 13,806 - 15,429 13,806
Economic environment 7,014 5,599 - 7,014 5,599
Culture and recreation 6,200 6,148 - 6,200 6,148
Interest on long-term debt 4,190 4,303 - 4,190 4,303
Water/sewer - 15,735 15,457 15,735 15,457
Surface Water - 4,908 5,945 4,908 5,945
Foster golf course - 2,561 2,415 2,561 2,415
Total expenses 81,116 79,674 23,204 23,818 104,320 103,491
Increase (decrease) in net position before 9,604 6,448 6,970 2,965 16,574 9,413
transfers
Transfers 1,752 1,253 (1,752) (1,253) -
Change in net position before special item 11,356 7,701 5,217 1,712 16,574 9,413
Special Item -transfer of Fire services (3,235) - - - (3,235)
Change in net position 8,122 7,701 5,217 1,712 13,339 9,413
Net position -beginning of period 262,991 255,290 101,365 99,653 364,356 354,943
Net position -end of period $271,113 $262,991 $106,583 $101,365 $377,695 $364,356
Governmental Activities
During the current fiscal year, net position for governmental activities increased $8.1 million (3.1 %) from the prior
fiscal year for an ending balance of $271.1 million. The primary reasons for this are:
• Charges for services increased by $3.2 million compared to the prior year, 20.2% over the previous revenues.
This increase was primarily due to increases in permits & inspection revenues.
• Retail sales and use taxes totaled $22.8 million, which is an increase of $874.5 thousand or 4.0% compared
to the prior year.
• Generally improving revenues for all other taxes as well as increases in grant revenues account for the
remaining improvements to revenues over the prior year.
19
CITY OF TUKWILA: 2023 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
REVENUES BY SOURCE — GOVERNMENTAL ACTIVITIES
Other revenue
5%
Other taxes
9%
Utility taxes
9%
Sales and use taxes
25%
Charges for services
21%
Operating grants &
contributions
4%
Capital grants &
contributions
2%
Property taxes
25%
PROGRAM REVENUES AND EXPENSES — GOVERNMENTAL ACTIVITIES
$36,000,000
$33,000,000
$30,000,000
$27,000,000
$24,000,000
$21,000,000
$18,000,000
$15,000,000
$12,000,000
$9,000,000
$6,000,000
$3,000,000
$0
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20
CITY OF TUKWILA: 2023 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
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 $5.2 million (5.1%) to reach an ending balance of $106.6 million. The overall growth is
attributable to the following factors:
• In the Water Utility, total net position increased $497 thousand (2.3%). Operating revenues increased by
$591 thousand, primarily the result of a 7.0% rate increase effective January 1, 2023. This increase offset
the 2.0% increase in operating and maintenance expenses.
• In the Sewer Utility, total net position increased by $1.5 million (5.9%). Operating revenues increased by
$632 thousand, primarily the result of a 5.75% increase on commercial rates and 3% increase on the flat
rate for residential properties effective January 1, 2023. These increases offset the 1.7% increase in
operating and maintenance expenses.
• In the Surface Water Utility, total net position increased by $2.9 million (2.3%). Operating revenues
increased by $377 thousand (5.1 %) driven primarily by a 5.0% rate increase effective January 1, 2023.
• Of the $106.6 million total net position, $29.1 million (27.3%) is unrestricted and each fund can utilize their
portion for any purpose. This operating balance is necessary for future planned infrastructure replacements
and repairs.
The following chart shows the relative net position balances for each business -type fund:
BUSINESS -TYPE NET POSITION - BY FUND
Surface water
49%
Foster golf course
6%
Water
21%
Sewer
24%
21
CITY OF TUKWILA: 2023 ACFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
The majority of net position in the City's enterprise funds relate to capital asset infrastructure, such as water and
sewer mains, and the golf course land. As such, most of the net position is not available to support the ongoing
expenses of the funds. The following chart contrasts the total net position to the spendable portion of net position
for each enterprise fund:
COMPARISON OF TOTAL NET POSITION TO SPENDABLE NET POSITION -BUSINESS-TYPE FUNDS
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
• Spendable/Unrst Net Position
■ Total Net Position
Surface water
The following chart depicts the revenues and expenses for business -type funds:
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Foster golf course
BUSINESS -TYPE ACTIVITY REVENUES & EXPENSES
(before Capital Contributions & Transfers)
Water
1
■Revenues
•Expenses
I I
Surface Water Foster Golf Course
22
CITY OF TUKWILA: 2023 ACFR 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, 2023, the City's governmental funds had combined fund balances of $47.0 million, an increase
of $3.4 million (7.8%). The increase in overall fund balance reflects a combination of improving revenues offset by
the overall rising costs of programs and services due to inflation.
The change in fund balance for governmental funds compared to 2022 is as follows:
• General Fund $1,999,873
• Arterial Street Fund $627,725
• Local Improvement District #33 ($47,135)
• Public Safety Plan $232,556
• City Facilities Fund ($757,732)
• Other Governmental Funds $1,349,570
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 2023, the
general fund had a fund balance of $25.0 million, with $24.4 million (97.5%) of the balance classified as unassigned
and available to meet the City's general obligations. Unassigned fund balance increased from $22.5 million in 2022
to $24.4 million in 2023 due primarily to increases in most major revenue sources offsetting the inflationary increase
in costs of programs and services. Notable increases in taxes, licenses & permits, grant revenue, and investment
earnings account for the majority of revenue increases.
The Arterial Street Fund increase in fund balance is primarily related to unspent funding related to Green River Trail
improvement project. These expenditures were budgeted to occur in 2023 but will be carried into 2024
The Public Safety Plan Fund increase in fund balance is the result of higher than expected revenues received during
the year. This fund receives fire impact fees and real estate excise taxes which are used for a transfer to the general
fund to support the debt service related to the new fire stations 51 and 52.
The City Facilities Fund decrease is due to capital outlays of $2.8 million, which is primarily phase two of
improvements for the Public Works Shops project. While there were transfers into this fund, use of existing fund
balance of $757 thousand was utilized as planned. The second phase of the project is underway with design and
planning for a new Maintenance & Engineering facility, which will house operations for streets & utilities.
In Other Governmental Funds, the increase in fund balance can be attributed to several factors. Planned events in
the lodging tax fund did not occur in 2023 and lodging tax revenues exceeded budget resulting in an increase in
ending fund balance in the lodging tax fund of $735 thousand. Additionally, park impact fees exceeded budget by
$883 thousand and will be spent in future years..
23
CITY OF TUKWILA: 2023 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
The following chart shows the relative fund balances for governmental funds:
GOVERNMENTAL FUNDS — FUND BALANCES
Local Imprvmnt Dist #33
Public Safety Plan fund
3%
City Facilities
3%
Capital project funds
17%
Special revenue funds
7%
Debt service funds
3%
The general fund revenue increased a total of $5.75 million, which is comprised of the following sources:
GENERAL FUND REVENUE INCREASES/DECREASES — BY SOURCE
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000 Taxes Intergovernmental
$1,037,868 Cha rges for services Licenses and permits 1,024,285
$1,059,940
$1,000,000 $944,591
$500,000
$0
Investment earnings
$1,713,427
($500,000) Fines and forfeitures
($174,194)
($1,000,000)
Miscellaneous
$146,174
24
CITY OF TUKWILA: 2023 ACFR 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 2023 at $29.4 million, an increase of $3.1 million 11.8%
from 2022.
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.
In 2023, the City continued to face the financial challenges that resulted due to the COVID-19 pandemic coupled
with high inflation. The 2023-2024 biennial budget includes many of the same expenditure reductions that had been
implemented in 2020, with frozen positions and reduced department budgets for supplies and services. In March
2021, the federal government passed the American Rescue Plan Act (ARPA). The City received $5.68 million in
ARPA which allowed the City to bring back some services that had been reduced or eliminated due to the reduced
revenues caused by the pandemic.
The following is a summary of significant budget amendments that occurred in 2023:
• A grant for $1.3 million was received to provide internet access in residential areas surrounding schools.
• Budget of $370 thousand was moved from 2023 into 2024 for a financial sustainability plan project and costs
associated with the finance system replacement project. Both projects were expected to be further along in
2023 than was realized.
• Grants totaling $215 thousand and related expenditures were added to the recreation department for youth and
wellness activities.
• Just under $200 thousand in grant revenue and related expenditures for commute trip reduction initiatives.
• Budget for the fire department was increased by $729 thousand to account for higher than projected overtime
costs.
• A budget to transfer funds to the City's contingency fund for $170 thousand was added to meet fund balance
requirements in the contingency fund. The contingency fund is accounted for as a sub fund of the general fund.
CAPITAL ASSETS
The City's investment in capital assets for both its governmental and business -type activities as of December 31,
2023 totaled $401.8 million (net of accumulated depreciation), a decrease of $5.8 million (-1.4%) from 2022. This
investment in capital assets includes land, buildings, improvements, machinery and equipment, construction in
progress, utility transmission/distribution systems, roads, bridges, and infrastructure.
CITY OF TUKWILA'S CAPITAL ASSETS (net of depreciation)
Governmental Activities
Business -Type Activities Total
2023 2022 2023 2022 2023 2022
Land $ 61,580,992 $ 60,661,130 $ 2,350,969 $ 2,350,969 $ 63,931,961 $ 63,012,099
Buildings & Structures 99,322,742 100,657,683 8,360,979 8,781,754 107,683,721 109,439,438
Other Improvements 4,710,734 5,615,091 63,387,377 63,126,975 68,098,111 68,742,065
Machinery and Equipment 5,428,742 8,758,199 1,815,433 1,871,057 7,244,176 10,629,256
Leased Equipment 2,188,530 736,426 - - 2,188,530 736,426
Subscription based IT Agreements 1,952,342 - - 1,952,342
Infrastructure 131,986,055 133,538,293 - - 131,986,055 133,538,293
Construction in Progress 17,068,585 20,047,275 1,670,707 1,522,404 18,739,292 21,569,680
Total $ 324,238,723 $ 330,014,098 $ 77,585,466 $ 77,653,159 $ 401,824,188 $ 407,667,257
25
CITY OF TUKWILA: 2023 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
More detailed information on capital assets is provided in Note 7 to the financial statements.
Capital asset events during the current fiscal year included the following:
Governmental Activities:
• Residential and Arterial Street Funds: The West Valley Highway project (from 1-405 to Strander) was
substantially completed during 2023 and placed in service. Design and planning continues on the
replacement of the 42nd Ave Bridge, with $1.07 million in costs added to construction in progress.
• Public Works Shop and City Facilities: Additional costs of $1.4 million related to the new Fleet & Facilities
Building (phase 1 of the Public Works shops project) was capitalized during the year. Planning and design
work is underway for the second phase of the project, adding $1.3 million to construction in progress.
• Fleet Equipment: The fleet fund added $1.85 million in new vehicles and equipment (purchases and leases)
and disposed of $1.5 million in surplus & retired fleet assets. In addition, the Fleet fund disposed of $6.85
million in fire apparatus and equipment related to the transfer of fire operations to the Puget Sound Regional
Fire Authority (PSRFA).
• Construction in Progress (CIP): Construction in progress decreased by $6.5 million compared to the prior
year. While current year construction in progress additions were $3.5 million, $7.2 million of completed
projects were placed in service and capitalized to land, buildings, infrastructure and other improvements.
The decrease in construction in progress is primarily attributed to the completion of the West Valley project
($4.8M) and the cancellation of the Fire Station 54 project ($1.3M) The land acquired related to the fire
station project was capitalized to land assets for $911 thousand.
Business Type Activities:
• Water fund projects: The South 152nd Ave waterline extension project was completed during the year,
adding $1.6 million in new assets to mains, hydrants and services.
• Sewer fund projects: Work continues on the rebuild of lift station #5 as well as the Central Business District
sewer rehab projects, adding a total of $275 thousand to construction in progress
• Surface Water fund project: The Chinook Wind public access project was completed and placed in service,
adding $250 thousand of other improvements. In addition, the surface water improvements related to the
West Valley Highway project were placed in service, adding $283 thousand in intakes and mains.
LONG-TERM DEBT
The City had total long-term obligations outstanding of $131.7 million at the end of the current fiscal year. Of this
amount, $109.6 million is general obligation bonds which is backed by the full faith and credit of the City, $5.3 million
of general obligation direct placement/borrowings, $515 thousand is revenue bonds for the water/sewer and surface
water utilities, $903 thousand in public works trust fund loans, $4.2 million due to other governments, $8.9 million
premium on bonds, and the remaining $2.3 million is special assessment bonds which were issued to improve
access to the City's urban center.
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:
Governmental Activities
Business -type Activities
Total
2023
2022
2023
2022
2023
2022
General obligation bonds
$ 109,595,000
$ 113,895,000
$ -
$ -
$ 109,595,000
$ 113,895,000
General obligation- direct placement/borrowings
5,252,000
6,746,000
-
-
5,252,000
6,746,000
Revenue bonds
-
-
515,144
677,704
515,144
677,704
Premium on bonds issued
8,925,467
9,544,638
-
-
8,925,467
9,544,638
Special assessment bonds
2,285,000
2,685,000
-
-
2,285,000
2,685,000
Public Works Trust Fund Loans
-
-
902,817
1,476,233
902,817
1,476,233
Due to other governments
4,191,954
4,383,790
-
-
4,191,954
4,383,790
$ 130, 249, 421
$ 137, 254, 428
$ 1,417,961
$ 2,153, 937
$ 131, 667, 382
$ 139, 408, 365
26
CITY OF TUKWILA: 2023 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
More detailed information on long-term debt, including debt limitations, is provided in Note 10 to the financial
statements.
ECONOMIC FACTORS AND THE UPCOMING BIENNIAL BUDGET
Tukwila has a strong business community, largely due to its central location in the Puget Sound region. Tukwila is
located at the intersection of one of the State's busiest interchanges (1-5 and 1-405) and has excellent public
transportation including a commuter train, light rail, and multiple bus routes including two Rapid Ride lines. The
City also has quick, easy access to Sea-Tac International Airport, King County International Airport, the Ports of
Seattle and Tacoma, and downtown Seattle.
Tukwila has a very strong retail sector. Anchored by Westfield Southcenter, which is the largest mall in the Pacific
Northwest, the City has become a retail, restaurant, and entertainment hub. The City also has a high concentration
of light industrial jobs across many sectors and particularly aerospace. It is also home to hundreds of small
businesses, many of which are owned by members of Tukwila's diverse international community.
The effects of the pandemic that started in early 2020 continue to impact local economies, including Tukwila's.
Revenues such as sales taxes and lodging taxes have rebounded; both revenue streams were significantly
impacted during the early part of the pandemic due to shutdowns. It should be noted that the increase in sales tax
is primarily due to inflation, and not to increased sales volume. Continued remote working and ecommerce
shopping has prolonged the recovery for Tukwila. Over time, revenues have slowly recovered, with some returning
to pre -pandemic levels. With this recovery, however, historically high inflation has pushed program and service
costs even higher. Additionally, federal funding from the American Rescue and Recovery Act (ARPA) will be ending
at the end of 2024, making it more difficult to maintain existing levels of City programs and services without
increasing existing revenue streams or adding new ones to the mix.
Although the Tukwila economy continues to improve from the effects of the COVID-19 pandemic, the City still faces
some challenges entering 2024 and the upcoming 2025-2026 biennium. Federal, state and county governments
continue to devolve services down to cities and there is no evidence that the trajectory will slow or change anytime
soon. In Addition, the historically high inflation will continue to impact all expenditure types throughout the City,
which will cause additional pressures on limited resources. At the same time, some of the City's revenues are still
recovering from the effects of the pandemic and are not rising at the same pace as expenditures. It is with these
challenges in mind that the City will vigilantly strive to monitor and control expenses in order to remain 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.
27
CITY OF TUKWILA: 2023 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET POSITION
DECEMBER 31, 2023
Governmental Business -Type
Activities Activities
Total
ASSETS:
Cash and cash equivalents $ 36,703,750 $ 21,482,589 $ 58,186,340
Investments 15,069,598 5,796,660 20,866,257
Restricted cash and cash equivalents 1,628,554 160,417 1,788,970
Taxes receivable 1,954,635 1,954,635
Other receivables 1,006,127 1,950,475 2,956,603
Intergovernmental receivable 6,412,026 238,521 6,650,547
Leases receivable 134,347 134,347
Internal balances (966,375) 966,375
Inventory of materials and supplies 170,978 66,257 237,235
Notes receivable - Current 10,265 10,265
Notes receivable - Noncurrent 1,867,209 18,924 1,886,134
Real property held for resale 370,410 370,410
Net Pension asset 15,700,293 1,027,061 16,727,354
Investment in joint ventures 11,598,257 11,598,257
Capital assets not being depreciated 78,649,577 4,021,676 82,671,253
Capital assets, net of accumulated depreciation/amortization 245,589,146 73,563,789 319,152,935
Total Assets 415,898,797 109,292,745 525,191,542
DEFERRED OUTFLOWS OF RESOURCES:
Pension related
OPEB related
Deferred charge on refunding
Total Deferred Outflows Of Resources
13, 429, 281 803,452 14, 232, 733
449,737 449,737
12,376 12,376
13, 879, 018
815,828 14,694,846
LIABILITIES:
Accounts payable 2,315,912 114,848 2,430,760
Accrued wages and benefits payable 1,455,344 182,798 1,638,142
Accrued interest payable 535,358 3,638 538,996
Unearned revenue 1,982,084 16,265 1,998,349
Long-term liabilities
Due within one year: Bonds, notes, claims, leases, subscription
based IT agreements, OPEB, compensated absences 9,777,546 1,079,824 10,857,370
Due in more than one year:
Net pension liability 1,950,407 450,685 2,401,092
Total OPEB liability 4,641,640 4,641,640
Bonds, notes, leases, claims, subscriptions based IT
agreements, compensated absences 129,961,761 1,072,609 131,034,369
Total Liabilities 152,620,052 2,920,666 155,540,718
DEFERRED INFLOWS OF RESOURCES:
Pension related
Lease related
Deferred revenue -other
Total Deferred Inflows Of Resources
5,513,445
129,500
402,088
605,258
6,118,703
129,500
402,088
6,045,032
605,258 6,650,290
NET POSITION:
Net investment in capital assets 196,460,485 76,179,881 272,640,366
Restricted for.
Debt service 1,735,429 1,735,429
Tourism promotion 3,069,355 3,069,355
Arterial street improvements 1,424,543 1,424,543
Drug investigation and enforcement 340,970 340,970
Land and park acquisition, development 3,823,452 3,823,452
Pension Asset 22,994,367 1,261,911 24,256,278
Unrestricted net position 41,264,130 29,140,857 70,404,987
Total Net Position $ 271,112,731 $ 106,582,649 $ 377,695,380
The notes to the financial statements are an integral part of this statement.
28
CITY OF TUKWILA: 2023 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2023
Primary Government
--Expenses—
--- Program revenues ---- -Net (Expense) Revenue and Changes in Net Position -
Charges Operating Capital Grants Governmental Business -Type
For Services Grants and and Activities Activities
Contributions Contributions
Total
FUNCTIONS / PROGRAMS:
PRIMARY GOVERNMENT
Govemmental activities
General govemment $ 15,092,500 $ 9,368,454 $ 1,819,649 $ - $ (3,904,396) $ - $ (3,904,396)
Public safety 33,190,709 3,396,090 412,458 (29,382,161) (29,382,161)
Transportation 15,428,634 1,459,071 245,642 1,702,962 (12,020,958) (12,020,958)
Natural and economic environment 7,013,570 3,497,508 877,240 170,556 (2,468,267) (2,468,267)
Culture and recreation 6,200,186 1,471,954 446,738 (4,281,493) (4,281,493)
Interest on long-term debt 4,190,257 (4,190,257) (4,190,257)
Total Governmental Activities 81,115,855 19,193,077 3,801,728 1,873,518 (56,247,532) (56,247,532)
BUSINESS -TYPE ACTIVITIES:
Water
Sewer
Surface water
Foster golf course
Total Business -Type Activities
Total Primary Government
6,906,666
8,827,989
4,907,747
2,561,419
7,844,404
10,049,854
7,755,433
2,497,754
1,637
32,104
40,800
607,717
969,842 969,842
1,262,665 1,262,665
3,457,040 3,457,040
(63,665) (63,665)
23,203,822 28,147,445
1,637 680,622
5,625,882 5,625,882
$ 104,319,677 $ 47,340,522 $ 3,803,365 $ 2,554,140 $ (56,247,532) $
5,625,882 $ (50,621,650)
General Revenues:
Taxes
Property taxes $ 22,156,679 $
Retail sales and use taxes 22,851,709
Hotel/motel taxes 971,162
Utility taxes 5,432,796
Interfund utility taxes 2,567,243
Business taxes 1,625,073
Excise Taxes 5,465,302
Unrestricted investment eamings 2,495,712
Miscellaneous 2,285,888
1,287,325
56,507
$ 22,156,679
22,851,709
971,162
5,432,796
2,567,243
1,625,073
5,465,302
3,783,037
2,342,395
Total General Revenues 65,851,564
1,343,832 67,195,396
Excess of revenues over expenses 9,604,032 6,969,714 16,573,746
before transfers and special item
Transfers 1,752,366 (1,752,366)
Special Item - Transfer of Fire Operations
(3,234,674) (3,234,674)
Change in net position
Net position - beginning
8,121,723
262,991,008
5,217,349 13,339,072
101,365,300 364,356,308
Net position -ending $ 271,112,731 $ 106,582,649 $ 377,695,380
The notes to the financial statements are an integral part of this statement.
29
CITY OF TUKWILA: 2023 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2023
Local Public Other Total
General Arterial Improvement Safety City Governmental Govemmental
Fund Street District #33 Plan Facilities Funds Funds
ASSETS:
Cash and cash equivalents $ 8,901,073 $ 4,138,685 $ 535,318 $ 1,059,722 $ 1,513,818 $ 12,188,079 $ 28,336,695
Investments 15,069,598 - - 15,069,598
Taxes receivable 1,581,164 373,471 1,954,635
Other receivables 468,635 293,351 - - 761,986
Leases receivable 134,347 - - - - 134,347
Due from other govemmentalunits 5,480,515 302,734 165,000 415,146 6,363,395
Restricted assets:
Cash and cash equivalents
Special assessment receivable
Notes receivable -Current
Real property held for resale
Total Assets
1,424,543
10,265
1,867,209
204,010 1,628,554
1,867,209
10,265
370,410 370,410
$ 31,645,597 $ 6,532,784 $ 2,402,527 $ 1,224,722 $ 1,513,818 $ 13,177,645 $ 56,497,093
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES:
Liabilities:
Accounts payable 1,464,303 275,878 - - 312,184 136,573 2,188,936
Accrued wages & benefits 1,414,838 19,786 - 3,680 1,438,303
Uneamed revenue 1,982,084 - - 1,982,084
Due to other funds 966,375 - - - - 966,375
Other liabilities 286,643 74,904 300 21,895 383,742
Total Liabilities 6,114,241 370,567 300 312,184 162,148 6,959,439
Deferred inflow of resources
Unavailable revenue -special assessment
Unavailable revenue -property tax, other
Deferred revenue -leases
Total Deferred Inflow Of Resources
1,867,209
410,628
129,500
106,065
1,867,209
516,692
129,500
540,127 1,867,209
Fund balance:
Restricted:
Hotel/motel tax -
Arterial street capital improvements
Drug investigation and enforcement
Park and land acquisition/development -
Debt service guaranty fund -
Debt service public safety plan
Local Improvement District
Assigned:
Residential street improvements -
Arterial street improvements
Land & park acquisition
Facilities & urban renewal
General govemment improvements
Public safety facilities
City facilities
1% Arts -
Technology 537,773
Shoreline Restoration 93,849
Unassigned 24,359,607
1,424,543
4,737,674
535,318
1,224,422
1,201,634
106,065 2,513,401
3,069,355 3,069,355
1,424,543
340,970 340,970
3,823,452 3,823,452
788,243 788,243
481,683 481,683
535,318
1,422,929 1,422,929
4,737,674
144,231 144,231
2,195,136 2,195,136
425,712 425,712
1,224,422
1,201,634
217,722 217,722
537,773
93,849
24,359,607
Total Fund Balance 24,991,228
Total Liabilities, Deferred Inflows
And Fund Balances
6,162,217 535,318
1,224,422 1,201,634
12,909,433 47,024,252
$ 31,645,597 $ 6,532,784 $ 2,402,527 $ 1,224,722 $ 1,513,818 $ 13,177,645 $ 56,497,093
The notes to the financial statements are an integral part of this statement.
30
CITY OF TUKWILA: 2023 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2023
Total
Governmental
Funds
Amounts reported for governmental activities in the statement of net position are different because:
Total governmental fund balances as reported on this statement $ 47,024,252
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds.
Non -depreciable assets
Depreciable assets (net)
Internal service fund assets
The net pension asset is not an available resource and, therefore, is not reported in the funds.
Deferred outflows - pension related
Deferred outflows - OPEB related
Deferred inflows - pension related
78,649,577
240,454,662
5,134,484 324,238,723
15,700,293
13,429,281
449,737
(5,513,445) 8,365,573
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. 11,598,257
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
Unavailable revenue reported for special assessment
Some liabilities are not due and payable in the current period and therefore are not reported in the funds.
Long term liabilities due within one year
Long term liabilities due in more than one year
Lease liabilities payable
Subscription Based IT Agreement (SBITA) liabilities payable
Unfunded other post employment benefits (OPEB)
Accrued interest payable
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.
114,605
1,867,209 1,981,814
(7,395,967)
(128,004,603)
(189,364)
(1,804,284)
(5,058,252)
(523,993) (142,976,463)
5,180,283
Net Position of Government Activities as Reported on the Statement of Net Position $ 271,112,731
The notes to the financial statements are an integral part of this statement.
31
CITY OF TUKWILA: 2023 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2023
Local Public Other Total
General Arterial Improvement Safety City Govemmental Govemmental
Fund Street District #33 Plan Facilities Funds Funds
REVENUES:
Taxes $ 52,387,938 $ 1,940,464 $ $ 500,390 $ $ 6,312,086 $ 61,140,878
Licenses and permits 6,321,147 46,173 - - 6,367,320
Intergovernmental 7,620,041 1,710,530 - - 737,859 10,068,430
Charges for services 3,806,905 810,328 300,000 1,731,121 6,648,353
Fines and forfeitures 311,630 11,081 322,710
Investment eamings 1,077,390 266,657 113,883 50,212 26,709 544,060 2,078,911
Special assessments 382,843 382,843
Miscellaneous 486,216 453,234 327 (296,496) 643,281
Total Revenues 72,011,266 5,238,466 497,053 850,602 26,709 9,028,630 87,652,727
EXPENDITURES:
Current:
General government 10,280,988 - - 26,997 150,716 10,458,700
Public safety 37,773,695 (1,700) 188,493 37,960,489
Transportation 4,987,790 2,578,819 - - 445,616 8,012,225
Natural and economic environment 5,783,354 - - 414,803 6,198,158
Culture and recreation 5,184,824 345,535 5,530,360
Debt service:
Principal 776,163 - 400,000 - - 5,794,000 6,970,163
Interest 78,855 144,188 - 4,494,116 4,717,159
Capital outlay 3,654,499 2,031,923 2,757,444 270,327 8,714,193
Total Expenditures 68,520,169 4,610,742 544,188 (1,700) 2,784,441 12,103,605 88,561,445
Excess (deficiency)of revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Lease and subscription financing
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - Beginning
Fund Balances - Ending
3,491,098
1,323,249
(5,375,683)
2,561,209
627,725 (47,135)
852,302 (2,757,732) (3,074,975) (908,718)
699,274 2,000,000 6,128,049
(1,319,019) (1,703,504)
10,150, 571
(8,398,206)
2,561,209
(1,491,225) (619,745) 2,000,000 4,424,545 4,313,575
1,999,873 627,725
22,991,356 5,534,493
(47,135)
582,452
232,556 (757,732)
991,865 1,959,366
1,349,570 3,404,857
11,559,864 43,619,395
$ 24,991,228 $ 6,162,217 $ 535,318 $ 1,224,422 $ 1,201,634 $ 12,909,433 $ 47,024,252
The notes to the financial statements are an integral part of this statement.
32
CITY OF TUKWILA: 2023 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2023
Net change in fund balances per the Statement of Revenues, Expenditures, and Changes in Fund Balances
Amount reported as change in net position in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. In the current period, these amounts are:
Capital Outlay
Capital asset disposal
Depreciation Expense (excludes internal service fund depreciation which is reflected
in internal service fund change in net position listed below)
8,714,193
(1,095,749)
(11,227,830)
$ 3,404,857
Excess of Capital Outlay Over Depreciation Expense (3,609,386)
The net effect of various transactions involving the City's pension plans are:
Increase in pension contribution revenue 468,955
Reduction in Pension liability and expense 3,298,491 3,767,446
The City has equity interests in two joint ventures. The equity interests for the provision of governmental
services are not current financial resources and therefore are not reported in the funds. 467,854
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 6,970,163
Amortization expense
619,171 7,589,334
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 (2,369,373)
Internal service funds are used by management to charge the costs of certain activities to individual funds.
The change in net position of intemal service funds is reported with govemmental activities. (3,091,998)
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:
Mscellaneous receivables 79,372
Property taxes (70,914)
Special assessment (382,843) (374,385)
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 12,547
Increase in compensated absences 886,344
Change in OPEB Liability 1,438,485
Total additional expense (increase) decrease 2,337,376
Change In Net Position On The Statement Of Activities
$ 8,121,723
The notes to the financial statements are an integral part of this statement.
33
CITY OF TUKWILA: 2023 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2023
Governmental
Foster Surface Total Activities
Water Sewer Golf Water Enterprise Internal Svc
Utility Utility Course Utility Funds Funds
ASSETS:
Current assets:
Cash and cash equivalents
Investments
Other Receivables
Due from other governmental units
Inventory of materials and supplies
Restricted cash and cash equivalents
Total Current Assets
$ 2,733,714
954,993
630,171
20,850
$ 8,964,350 $ 2,117,841 $ 7,666,684 $ 21,482,589 $ 8,367,055
2,893,597 1,948,069 5,796,660
912,984 20,044 387,276 1,950,475 244,142
238,521 238,521 48,632
- 66,257 66,257 170,978
139,567 160,417
4,339,729 12,770,931
2,343,709 10,240,550
29,694,919 8,830,806
Noncurrent Assets:
Notes receivable - 18,924 - - 18,924
Due from other funds 966,375 966,375
Net Pension asset 198,080 262,648 218,326 348,008 1,027,061 95,757
Capital Assets:
Land 87,347 69,525 1,609,575 584,522 2,350,969
Building 1,416,567 4,006,475 6,627,496 3,724,281 15,774,819
Other improvements 29,856,287 17,533,725 3,599,021 59,223,056 110,212,089
Machinery and equipment 874,032 2,107,818 1,198,198 56,139 4,236,187 11,284,299
Leased Assets 2,291,750
Less: accumulated depreciation (14,690,506) (10,564,233) (8,633,860) (22,770,707) (56,659,306) (8,441,566)
Construction in progress 221,003 337,894 1,111,810 1,670,707
Total Capital Assets (Net Of A/D) 17,764,729 13,491,204 4,400,431 41,929,102 77,585,466 5,134,484
Total Noncurrent Assets
17,962,809 14,739,150
4,618,757 42,277,110 79,597,826 5,230,241
Total Assets 22,302,538 27,510,081 6,962,466 52,517,660 109,292,745 14,061,048
Deferred Outflows of Resources
Deferred pension 157,285 202,031 171,996 272,140 803,452 76,416
Deferred Loss on Refunding 3,218 7,673 1,485 12,376
Total Deferred Outflows Of Resources 160,503 209,704 171,996 273,625 815,828 76,416
LIABILITIES:
Current liabilities:
Accounts payable (158,730) 83,249 123,871 66,458 114,848 126,976
Accrued wages and benefits 31,220 48,416 37,991 65,171 182,798 17,041
Accrued interest payable 496 2,264 877 3,638 11,365
Lease liability due within one year 410,531
Uneamed revenue 16,082 183 16,265
Other current liabilities 33,675 2,000 185,479 39,496 260,650 576,400
Due to other goemments 80,626 233,436 259,356 573,417
Compensated absences 17,247 24,366 2,937 33,844 78,394
Revenue bond payable 43,514 103,765 20,084 167,363
Total Current Liabilities 64,130 497,496 350,277 485,469 1,397,372 1,142,313
Noncurrent liabilities:
Reserve for unreported claims 864,600
Lease liability due in more than one year 1,601,592
Revenue bonds payable 90,423 215,624 41,734 347,781
Net pension liability 86,920 115,252 95,804 152,709 450,685 42,019
Compensated absences 97,412 205,061 88,844 4,111 395,428
Due to other goemments 329,400 329,400
Total Noncurrent Liabilities 274,754 865,338 184,647 198,554 1,523,294 2,508,211
Total Liabilities
338,885 1,362,834
534,925 684,023
2,920,666 3,650,523
Deferred Inflows of Resources
Deferred inflow pension eamings 129,098 130,687 141,045 204,429 605,258 71,909
Total Deferred Inflows Of Resources 129,098 A30,687 • 141,045 204,429 • 605,258 71,909
NET POSITION:
Investment in capital assets
Restricted for Pension Assets
Unrestricted
Total Net Position
17,553,384
243,373
4,198,302
12,616,652
322,705
13,286,908
4,400,431
268,248
1,789,813
41,609,414
427,584
9,865,835
76,179,881
1,261,911
29,140,857
3,122,362
117,653
7,175,017
$ 21,995,059 $ 26,226,265 $ 6,458,493 $ 51,902,833 $ 106,582,649 $ 10,415,031
The notes to the financial statements are an integral part of this statement.
34
CITY OF TUKWILA: 2023 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2023
Governmental
Foster Surface Total Activities
Water Sewer Golf Water Enterprise Internal
Utility Utility Course Utility Funds Service Funds
OPERATING REVENUES:
Charges for services $ 7,851,541 $ 10,049,854 $ 2,370,028 $ 7,755,433 $ 28,026,856 $ 8,095,508
Other operating revenue 5,599 - 156,188 161,787 149,204
Total Operating Revenues 7,857,140 10,049,854 2,526,216 7,755,433 28,188,643 8,244,712
OPERATING EXPENSES:
Operating & maintenance 4,088,993 5,432,351 1,992,367
Administrative and general 1,082,954 1,764,654 219,309
Taxes 1,130,138 1,147,104 5,270
Depreciation and amortization 598,866 468,313 344,474
965,801
1,937,935
897,280
1,102,521
12,479,512
5,004,851
3,179,792
2,514,173
7,440,207
552,673
989,272
Total Operating Expenses 6,900,951 8,812,422
Operating Income (Loss)
NON -OPERATING REVENUE (EXPENSE):
Investment eamings
Interest expense
Gain (loss) on disposal of capital assets
Other non -operating revenue
Total Non -Operating Revenue (Expense)
Income (Loss) Before Contributions & Transfers
Capital contributions
Transfers in
Transfers out
Special Item - Transfer of Fire Operations
Change in Net Position
Total net position - beginning
Total Net Position - ending
2,561,419 4,903,536
23,178,328 8,982,152
956,189 1,237,432 (35,203) 2,851,897 5,010,315 (737,440)
218,990 597,865 72,111
(5,715) (15,567) -
(7,137) - 22,446
398,360
(4,211)
1,637
1,287,325
(25,493)
15,309
1,637
416,801
(104,816)
285,823
206,137 582,298 94,557 395,786 1,278,778 597,807
1,162,326 1,819,730 59,354 3,247,683 6,289,093 (139,633)
32,104 40,800 607,717 680,622 - 300,000 300,000 -
(697,804) (389,949) - (964,612) (2,052,366)
- - (2,952,366)
496,626 1,470,581 359,354 2,890,788 5,217,349 (3,091,998)
21,498,433 24,755,684 6,099,139 49,012,044 101,365,300 13,507,030
$ 21,995,059 $ 26,226,265 $ 6,458,493 $ 51,902,833 $ 106,582,649 $ 10,415,031
The notes to the financial statements are an integral part of this statement.
35
CITY OF TUKWILA: 2023 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2023
Page 1 of 2
Water
Utility
Sewer
Utility
Foster
Golf
Course
Surface
Water
Utility
Total
Enterprise
Funds
Governmental
Activities
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
Cash paid to supplier
Cash paid for taxes
Cash paid to or on behalf of employees
Interfund activity - payments to other funds
Other cash received
Net Cash Provided (Used)
By Operating Activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund loan receivable
Operating grant received
Transfers in
Transfers out
Net Cash Provided (Used) By Non -
Capital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Purchase of capital assets
Contributed capital
Capital grants
Principal payment on debt
Proceeds from lease financing
Interest payment on debt
Proceeds from sale of equipment
Net Cash Provided (used) for Capital
And Related Financing Activities
CASH FLOW FROM INVESTING ACTIVITIES:
Interest received
Net Cash Provided (Used) In Investing Activities
Net increase (decrease) in cash and
Cash equivalents
Cash and cash equivalents -beginning of year
Cash And Cash Equivalents- end of year
Cash at end of year consists of:
Cash and cash equivalents
Restricted cash -customer deposits
Total Cash and cash equivalents
$ 7,645,966 $ 9,987,624
(4,214,730) (5,234,570)
(1,130,138) (1,147,104)
(932,156) (1,298,057)
(755,347) (649,733)
5,599 -
619,193 1,658,159
(697,804)
(697,804)
(1,589,160)
32,104
(122,891)
(6,033)
(7,137)
(28,453)
(389,949)
$ 2,521,026
(824,714)
(5,270)
(1,165,907)
(219,309)
16,998
322,825
300,000
(418,402) 300,000
(275,813) (113,896)
40,800
(334,223) -
(16,444)
22,446
$ 7,683,121
(1,014,409)
(897,280)
(1,669,253)
(666,842)
3,435,338
$ 27,837,737
(11,288,423)
(3,179,792)
(5,065,373)
(2,291,231)
22,597
6,035,516
(28,453)
1,637 1,637
300,000
(964,612) (2,052,366)
(962,975) (1,779,181)
(467,611) (2,446,480)
72,904
746,056 746,056
(278,863) (735,977)
(5,006)
$ 7,995,861
(1,622,411)
(6,220,929)
(552,673)
85
(400,068)
(1,850,682)
(251,333)
1,707,785
(27,483) (95,073)
15,309 354,474
(1,693,116)
195,039
195,039
(585,680)
524,763
524,763
(91,450)
72,111
72,111
(1,576,688) 1,178,839 603,485
4,331,252 7,785,511 1,653,923
2,754,564 8,964,350 2,257,408
(5,424) (2,375,671)
361,479 1,153,392
361,479 1,153,392
2,828,419 3,034,055
4,838,266 18,608,951
7,666,684 21,643,006
(134,828)
416,801
416,801
(118,095)
8,485,150
8,367,055
2,733,714
20,850
$ 2,754,564
$ 8,964,350
8,964,350 2,117,841
139,567
$2,257,408
7,666,684 21,482,589 8,367,055
- 160,417
$ 7,666,684 $21,643,006 $ 8,367,055
The notes to the financial statements are an integral part of this statement.
36
CITY OF TUKWILA: 2023 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS (continued)
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2023
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) $ 956,189 $ 1,237,432 $ (35,203) $ 2,851,897 $ 5,010,315 $ (737,440)
Adjustments to reconcile operating income to net cash
Provided (used) by operating activities:
Depreciation 598,866 468,313 344,474 1,102,521 2,514,173 989,272
Asset (increase) decrease:
Accounts receivable (196,575) (64,230) (18,174) (72,489) (351,469) (248,767)
Inventory and other 3,168 3,168 (111,336)
Deferred outflow of resources (increase) decrease 11,994 22,808 38,751 81,062 154,615 38,715
Liability increases (decreases):
Accounts payable (539,284) 18,511 93,886 (208,253) (635,140) (246,505)
Other liabilities (122,045) 2,000 29,983 (68,638) (158,701) -
Wages & benefits payable 13,456 114,564 (4,831) (33,248) 89,942 (14,353)
Deferred inflow of resources increase (decrease) (103,406) (141,238) (129,228) (217,514) (591,387) (69,654)
Total Adjustments (336,995) 420,727 358,028 583,441 1,025,201 337,372
Net Cash Provided (Used) By Operating Activities $ 619,193 $ 1,658,159 $ 322,825 $ 3,435,338 $ 6,035,516 $ (400,068)
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital assets acquired by contributed capital $ - $ - $ $ (138,338) $ (138,338) $
Increase (decrease) in fair value of investment 23,950 73,102 - 36,881 133,934
Total Non Cash investing, Capital and
Financing Activities $ 23,950 $ 73,102 $ $ (101,457) $ (4,405) $
The notes to the financial statements are an integral part of this statement.
37
CITY OF TUKWILA: 2023 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF FIDUCIARY NET POSITON
FIDUCIARY FUNDS
DECEMBER 31, 2023
Pension and
Other Employee Benefit
Trust Funds
Custodial
Funds
ASSETS:
Cash and cash equivalents
Customer accounts
Total Assets
$
1,649,466 $ 173,606
10,001
1,649,466 183,607
LIABILITIES:
Accounts and other payables 176,795
Total Liabilities 176,795
NET POSITION:
Restricted for pensions
Restricted for individuals, organizations
and other governments
Total Net Position
1,649,466
6,812
$
1,649,466 $ 6,812
The notes to the financial statements are an integral part of this statement.
38
CITY OF TUKWILA: 2023 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2023
Pension and
Other Employee Benefit
Trust Funds
Custodial
Funds
ADDITIONS:
Contributions from nonemployer entities:
Fire Insurance Premiums Transferred in $ 86,708 $
Investment eamings/(loss) 76,006
Total Additions 162,714
DEDUCTIONS:
Benefit payments
Total Deductions
79,356
79,356
Change In Net Position 83,358
Net position - beginning
1,566,108 6,812
Net position - ending $ 1,649,466 $ 6,812
The notes to the financial statements are an integral part of this statement.
39
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2023
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 (police and fire), 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.
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.
40
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
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 balance, 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.
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.
41
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
Proprietary Funds
The City of Tukwila maintains two different types of proprietary funds: enterprise and internal service. 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,
taxes, 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, and other governments. The City has two fiduciary funds, Firemen's Pension Trust Fund and
Custodial 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 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
42
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
custodial fund functions primarily as a clearing mechanism for cash resources that are collected by the City, held
for a period of time, and then disbursed to authorized recipients. Examples include sales tax and leasehold tax
collected by the City then remitted to the State of Washington and court remittances due to King County and the
State of Washington. 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
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).
43
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
Other Revenue Sources
Revenue sources which are not considered to meet the measurable and available criteria for revenue recognition
include licenses and permits, fines and forfeitures, and other miscellaneous revenues since they are generally not
measurable until received.
Under the modified accrual basis, expenditures are recorded when the fund liability is incurred, except for principal
and interest on general long-term debt and vacation and sick pay which are recorded when paid.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements
via the process of consolidation. Internal service fund and similar internal activity has also been eliminated from the
government -wide statement 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 Annual Comprehensive Financial Report.
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.
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.
44
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
Expenditure Categories
General Government
Includes administration, finance, municipal court, attorney,
and city clerk activities.
Public Safety Includes all police and fire activities.
Transportation
Natural and Economic
Environment
Culture and Recreation
Includes all residential and arterial street maintenance and
construction.
Reflects all planning and building inspection as well as
environmental and community services.
Includes expenditures related to parks and recreational
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 primarily of the special assessment.
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, 2023, there is one interfund loan
outstanding from the sewer fund to the general fund for the purchase of a fire engine.
The non -current portion of interfund loans in the general fund and advances between funds, as reported in the fund
financial statements, are offset by a fund balance nonspendable account in applicable governmental funds to
indicate they are not available for appropriation and are not expendable available financial resources. See Note 4
on interfund transactions.
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.
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
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.
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 comprising approximately 2.3 acres. All structures on those properties were demolished in
2016. In 2021 the City sold 0.6 acres to the Tukwila Community Coalition, LLC for private development. In 2023
the City completed the sale of the remaining 1.7 acres of the land to HealthPoint, a federally recognized community
health center. HealthPoint plans to build a Health and Wellness Center on the site by 2026.
Leases
Lessee: The City is a lessee for noncancelable leases. The City recognizes a lease liability and an intangible right -
to -use lease asset in the government -wide and proprietary fund financial statements. The City recognizes lease
liabilities with an initial, individual value of $10,000 or more. This is an increase from $5,000 that took effect January
1, 2023.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments
expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of
lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for
lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently,
the lease asset is amortized using the straight-line basis method over its useful life.
Governmental funds recognize a capital outlay and other financing source at the commencement of a new lease.
Lease payments in governmental funds are reported as debt service principal and debt service interest
expenditures.
Key estimates and judgements related to leases include how the City determines (1) the discount rate it uses to
discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses the
interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided,
the City generally uses its incremental borrowing rate as the discount rate for leases. The lease term includes the
noncancelable period of the lease. Lease payments included in the measurement of the lease liability are composed
of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure
the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease
liability.
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
Lessor: The City is a lessor for noncancelable leases. The City recognizes a lease receivable and a deferred inflow
of resources in the government -wide and fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments
expected to be received during the lease term. Subsequently the lease receivable is reduced by the principal portion
of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease
receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the
deferred inflow of resources is recognized as revenue over the life of the lease term using the straight-line basis
method.
Key estimates and judgments related to lease include how the City determines (1) the discount rate it uses to
discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses its
estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancelable
period of the lease. Lease receipts included in the measurement of the lease liability are compose of fixed payments
from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure
the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly
affect the amount of the lease receivable.
Deferred Outflows/Inflows of Resources
Deferred outflow of resources represent a consumption of net assets that applies to future periods and so will not
be recognized as an outflow of resources (expense/expenditure) until then. The City has three items that qualify for
reporting in this category. The City reports a deferred outflow related to pension, deferred outflow related to OPEB
and a deferred loss on refunding water/sewer bonds.
Deferred inflow of resources represent an acquisition of net assets that applies to future periods and will not be
recognized as an inflow of resources (revenue) until that time. The City has three items that qualify for reporting in
this category. The City reports a deferred inflow related to pensions as well as unavailable revenues from special
assessments, and unavailable receivables including leases.
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 two capitalization thresholds
based on the type of asset being capitalized. The capitalization threshold for equipment and intangible items is ten
thousand ($10,000) dollars while the threshold for buildings and infrastructure is one hundred thousand ($100,000)
dollars. The City's infrastructure consists of roads, bridges, storm sewers, water and sewer distribution and
collection systems. Improvements are capitalized when they extend the useful life of the asset or increase the
assets capacity and/or efficiency. Costs incurred for maintenance and repairs that do not add to the value of the
asset, or materially extend an asset's life, are not capitalized.
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
Depreciation is computed using the straight-line method over estimated service lives, as follows:
Asset
Buildings
Non -Building Improvements
Machinery and Equipment
Intangibles
Infrastructure
See Note 7 for additional information on capital assets.
Other Liabilities and IBNR reserve
Estimated Service Life
25 to 50 years
25 to 50 years
2 to 50 years
2 to 50 years
25 to 50 years
Other liabilities include retainage, deposits and the incurred -but -not -reported (IBNR) claims. The IBNR reserve
includes the claim reserve for the self -insured healthcare funds. The self-insurance fund for active employees
includes an IBNR liability of $548,700 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 $1,371,750. The self-insurance fund for LEOFF 1 retirees includes an
IBNR liability of $27,700 and total liability of $69,250 utilizing the same calculations as the active employees' self-
insurance fund.
Compensated Absences
City policy and labor contracts with City of Tukwila employees call for the accumulation of vacation and sick leave.
At termination of employment, employees with the required length of service may receive cash payments for all
accumulated vacation leave to a maximum of 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.
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.
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 11.
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
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
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 investment in capital assets 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.
The City's current 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 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.
Fund Balance Components
The fund balance amounts for governmental funds have been classified in accordance with GASB Statement No.
54 and are reported as nonspendable, restricted, committed, assigned or unassigned.
• Nonspendable fund balance includes items that cannot be spent. This includes activity that is not in a
spendable form (inventories, prepaid amounts, long-term portion of loans/notes receivable, or property held
for resale unless the proceeds are restricted, committed or assigned) and activity that is legally or
contractually required to remain intact, such as a principal balance in a permanent fund.
• Restricted fund balances have constraints placed upon the use of the resources either by an external party
or imposed by law through a constitutional provision or enabling legislation.
• Committed fund balances can be used only for specific purposes pursuant to constraints imposed by a formal
action in the form of ordinances and resolutions of Tukwila Councilmembers, the City's highest level of
decision -making authority. This formal action is the passage of an ordinance by City Council creating,
modifying, or rescinding an appropriation. These committed amounts cannot be used for any other purpose
unless Council removes or changes the specified use by taking the same type of action it employed to
previously commit those amounts.
• Assigned fund balance includes amounts that are constrained by the City's intent to be used for a specific
purpose but are neither restricted nor committed. Intent of use 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.
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
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, 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.
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 $2,822,397
for 2023 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.
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: 2023 ACFR 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 169 as of December 31, 2023. WCIA provides pooled self-
insurance coverage for general liability, vehicle liability, false arrest, and errors and omissions. See Note 14 for
additional information on risk management.
H. Pensions
State Sponsored Pension Plans: For purposes of measuring the net pension liability, deferred outflows of resources
and deferred inflows of resources related to state sponsored 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.
Firemen's Pension: For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to firemen's pension and the pension expense, information about the fiduciary net
position of the City's Excess of Retirement Benefits Plan (the Plan) and additions to / deductions from the Plan's
fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose,
the Plan recognizes benefit payments when due and payable in accordance with the benefit terms.
Other Postemployment Benefits Other Than Pensions (OPEB): For purposes of measuring the net OPEB liability,
deferred outflows of resources and deferred inflows of resources related to OPEB and the OPEB expense
information about the fiduciary net position of the City's LEOFF 1 Retiree Health Benefits Plan (the Plan) and
additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are
reported by the Plan. For this purpose, the Plan recognizes benefit payments when due and payable in accordance
with the benefit terms.
I. Implementation of new GASB Statements
As of January 1, 2023, the City of Tukwila adopted GASB Statement No. 96, Subscription -Based Information
Technology arrangements (SBITA). The primary objective of this statement is to enhance the relevance and
consistency of information about the City's subscription activities. This statement establishes a single model for
subscription accounting based on the principle that subscriptions are financings of the right to use an underlying
asset. Under this Statement, the City is required to recognize a subscription liability and an intangible right -to -use
subscription asset. Additional disclosures required by this standard are included in Note 6.
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 $9,635,708. 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 $16,100.
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,
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
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
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 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, 2023, 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.
SCHEDULE OF INVESTMENTS BY MATURITY
Maturity Credit Fair
Date Rating Value
U.S. Government Agency Notes:
Federal Farm Credit Bank 9/19/2024 Aaa $ 994,155
Federal Home Loan Banks 9/30/2024 Aaa 940,299
Federal Home Loan Banks 12/10/2024 Aaa 965,346
Federal Home Loan Mortgage Corp 3/25/2025 Aaa 968,251
Federal Home Loan Bank 4/14/2025 Aaa 1,899,228
Federal Home Loan Bank 6/30/2025 Aaa 900,939
Federal Home Loan Mortgage Corp 10/15/2025 Aaa 870,815
Federal Home Loan Bank 12/17/2025 Aaa 954,993
Federal Home Loan Bank 2/24/2026 Aaa 921,933
Federal Farm Credit Bank 5/26/2026 Aaa 974,593
Federal Farm Credit Bank 6/15/2026 Aaa 918,807
Federal Farm Credit Bank 11/30/2026 Aaa 1,845,095
Federal Home Loan Bank 5/26/2027 Aaa 980,167
Federal Home Loan Bank 6/29/2027 Aaa 969,625
Federal Home Loan Bank 6/30/2027 Aaa 979,819
Federal Farm Credit Bank 9/20/2027 Aaa 994,369
Federal Home Loan Mortgage Corp 11/8/2027 Aaa 995,584
Total U.S. Agency Notes 18,074,017
Municipal Bonds:
Metro Oregon GO Taxable Bond 6/1/2026 Aaa 1,018,726
King Cnty Washington GO Taxable 12/1/2026 Aaa 895,551
Bellevue WA GO Taxable Ref 12/1/2026 Aaa 877,964
Total Municipal Bonds 2,792,241
TOTAL INVESTMENTS $ 20,866,257
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
RECONCILIATION OF ALL CASH, DEPOSITS AND INVESTMENTS
CASH & CASH RESTRICTED
SUMMARY BY FUNDS EQUIVALENTS CASH INVESTMENTS TOTAL
Governmental Funds
General Fund $ 8,901,073 $ - $ 15,069,598 $ 23,970,671
Arterial Street 4,138,685 1,424,543 5,563,229
Local Improvement District #33 535,318 535,318
Public Safety Plan 1,059,722 1,059,722
City Facilities 1,513,818 1,513,818
Other Governmental Funds 12,188,079 204,010 12,392,090
Internal Service Funds 8,367,055 8,367,055
Proprietary Funds
Water 2,733,714 20,850 954,993 3,709,558
Sewer 8,964,350 2,893,597 11, 857, 947
Foster Golf Course 2,117,841 139,567 2,257,408
Surface Water 7,666,684 1,948,069 9,614,753
Total as Reported on
Statement of Net Position
Firemen's Pension Trust Fund
Custodial Fund
Total Cash, Cash Equivalents
and Investments
58,186, 340 1,788,970 20, 866, 257 80, 841, 567
1,649,466 1,649,466
173,606 173,606
$ 60,009,411 $ 1,788,970 $ 20,866,257 $ 82,664,639
SUMMARY BY TYPE:
Cash and Cash Equivalents:
Local Government Investment Pool
Money market account
Cash on hand
Cash in bank -book balance
Total cash and cash equivalents
Investments:
U.S. Government Agency Notes
Municipal bonds
Total investments
Total Cash, Cash Equivalents, and Investments
$ 37,182,824
16,187,315
16,100
8,412,142
61, 798, 382
18, 074, 017
2,792,241
20, 866, 257
$ 82,664,639
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
RESTRICTED CASH SUMMARY
Restricted Assets - Governmental
Cash & cash equivalents
Drug Seizure funds - federal portion
Impact fees
Restricted Assets -Governmental
$ 204,010
1,424, 543
$ 1,628,554
Restricted Assets - Business -Type
Customer Deposits -Water Utility
Customer Deposits -Golf Course
Lease Deposits -Golf Course
Restricted Assets-Busi ness-Type
$ 20,850
124,567
15,000
$ 160,417
Total Restricted Assets $ 1,788,970
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: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
The City has the following recurring fair value measurements as of December 31, 2023:
Investments by Fair Value Level
US Government Agencies
Municipal Bonds 2,792,241
Total Investments by Fair Value Level
Interest Rate Risk
Total
$ 18,074,017
Fair Value Measurements Using
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
$ -
Significant
Other
Observable
Inputs
(Level 2)
$ 18,074,017
2,792,241
Significant
Unobservable
Inputs
(Level 3)
$ 20,866,257 $
- $ 20,866,257 $
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 %) 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.
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
5) General Obligation Bonds of a state or local government which have at the time of the investment one of the
three highest credit ratings of a nationally recognized rating agency.
6) The Washington State Local Government Investment Pool (LGIP), an unrated, external investment pool.
As of December 31, 2023, the City's investments in municipal bonds were rated Aaa or AAA 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 portfolio, at the time of purchase, shall be in any single financial
institution,
2) Investment of 100% of the City's portfolio in U.S. Treasury securities shall be allowed; this is a risk -free
investment, and in the event of unforeseen circumstances, the City shall have the ability to invest the entire
portfolio in a risk free investment.
3) 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
4) 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 utility, admission, gambling, parking and other taxes. Receivables due from other
governments includes property, sales and use and hotel/motel taxes as well as grants and other state shared
revenues. Customer accounts receivable consist 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.
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
Governmental Business -Type
Activities Activities
Total
Taxes Receivable
Utility Tax
Admission Tax
Gambling Tax
Parking Tax
Other Taxes
Total Taxes Receivable
$ 660,775 $
100,325
996,929
128,586
68,021
$ 660,775
100,325
996,929
128,586
68,021
1,954,635 1,954,635
Receivables due from other governments
Property 600,152
Sales & Use 3,942,787
Grants Receivable 393,480
Other 1,475, 607
Total Due from other governments 6,412,026
238,521
238,521
600,152
3,942,787
632,001
1,475,607
6,650,547
Customer Receivable
Miscellaneous 956,178 - 956,178
Utility Accounts 1,821,830 1,821,830
Interest 49,949 128,645 178,594
Total Customer Receivable 1,006,127 1,950,475 2,956,603
Notes due within one year 10,265 10,265
Total Receivables $ 9,383,054 $ 2,188,996 $ 11,572,050
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
February 14th
April 30th
May 31St
October 31 St
Taxes are levied and become an enforceable lien against properties.
Tax bills are mailed.
First of two equal installment payments is due. If taxes are less than $50, full payment
is due. (RCW 84.56.020)
Assessed value of property established for next year's levy at 100 percent of market
value.
Second installment is due. (RCW84.56.020)
Assessed values are established by the County Assessor at 100% of fair market value. A revaluation of all property
is required every two years. On May 31 of each year the assessed value of property is established for the next
year's property tax levy.
Property taxes levied by the County Assessor and collected by the County treasurer become a lien on the first day
of the levy year and may be paid in two equal installments if the total amount is $50 or more. The first half of real
property taxes is due on April 30 and the balance is due October 31. Delinquent taxes bear interest at the rate of
12% and are subject to additional penalties if not paid as scheduled.
During the year, property tax revenues are recognized when cash is received. At year-end, unpaid property taxes
are recorded as a receivable. Property tax receivables at year-end not expected to be collected within 60 days after
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
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
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 2023 was $1.94728 per $1,000 of assessed valuation of $8,970,452,548 for a total regular levy of $17,535.521.
Special levies approved by the voters are not subject to the limitations listed above. In 2023, the City levied an
additional $0.50506 per $1,000 for the Public Safety Plan approved by voters in November 2016. The total
additional levy in 2023 was $4,535,959.
Due from Other Governments
All receivables from other governments are recorded at year-end as amounts Due from Other Governmental Units.
These amounts represent property tax, sales tax, and other local taxes collected by either the State or County and
remitted to the City. Also included in this category are federal, state, and local reimbursement -type grants, and are
reported as receivables and intergovernmental revenues in the year when the related expenditures are incurred.
Balances due from other governments as of December 31, 2023 is shown in the previous chart.
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.
Notes receivable for business —type activities consists of the interfund loan to the general fund and the 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.
Business -
Governmental Type
Activities Activities Total
Notes Receivable
Special Assessments
Sewer Payment Plan
Total Receivables
$ 1,867,209 $ - $ 1,867,209
18,924 18,924
$ 1,867,209 $ 18,924 $ 1,886,134
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
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
balance/net position. Interfund loans are subject to elimination upon consolidation. As of December 31, 2023, the
City had one outstanding interfund loan. The loan is from the sewer utility fund to the general fund to purchase a
fire engine.
Nonreciprocal interfund activity does not involve the exchange of equal or almost equal value between funds.
Transfers — Transactions to support the operations of other funds are recorded as "Transfers" and classified with
"Other Financing Sources or Uses" in the fund statements. Transfers between governmental or proprietary funds
are netted as part of the reconciliation to the government -wide financial statements.
Contributions — Contributions to the capital of enterprise or internal service funds, transfers of capital assets
between proprietary and governmental funds, transfers to establish or reduce working capital in other funds, and
transfers of remaining balances when funds are closed are classified non -operating revenue.
Reimbursements — Repayments from funds responsible for expenditures or expenses to the funds that initially
paid for them. These transactions are expenditures/expense in the fund responsible and as a reduction of
expenditure/expensed in the fund being reimbursed.
Interfund transfers for the year were as follows:
SUMMARY OF INTERFUND TRANSFERS
Governmental Proprietary
Funds Funds
General Public Safety Other GoVt Total Golf Surface
Fund Plan Facilities Funds Governmental Water Sewer Course Water
TOTAL
Transfers In $ 1,323,249 $ 699,274 $ 2,000,000 $ 6,128,049 $ 10,150,571 $ - $ - $300,000 $ - $10,450,571
Transfers Out (5,375,683) (1,319,019) - (1,703,504) $ (8,398,206) (697,804) (389,949) - (964,612) (10,450,571)
Net Transfers In (Out) $ (4,052,434) $ (619,745) $ 2,000,000 $ 4,424,545 $ 1,752,366 $(697,804) $(389,949) $300,000 $(964,612) $ -
The principal purposes for interfund transfers include interfund subsidies and transfers into debt service and capital
projects funds.
NOTE 5 — LEASES
Leases Payable
In September 2022, City entered into a 36-month lease as Lessee for the use of 16 separate copiers/printers
deployed across City departments, referred to as the Electronic Business Machines — Supplement lease. An initial
lease liability was recorded in the amount of $98,699. As of December 31, 2023, the value of the lease liability is
$57,649. The City is required to make monthly fixed payments of $2,974. The lease has an interest rate of 3.5841 %.
The Equipment estimated useful life was 36 months as of the contract commencement. The value of the right to
use asset as of December 31, 2023, of $98,699 with accumulated amortization of $41,399 is included in the table
in Note 7. The lease has an unguaranteed residual value of $5,000.
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
In September 2020, the City entered into a 36-month lease as Lessee with Dell Financial Services for laptops which
are assigned to City employees. As of December 31, 2023, the lease had expired, and the City entered into a new
lease with Dell Financial Services.
In August 2018, the City entered into a 60-month lease as Lessee for the use of a copier for the finance department.
An initial lease liability was recorded in the amount of $20,596. As of December 31, 2023 the lease had expired and
the equipment is now covered by the Electronic Business Machines Supplemental lease.
In June 2018, the City entered into a 60-month lease as Lessee for the use of a copier for the fire prevention
department. An initial lease liability was recorded in the amount of $11,653. As of December 31, 2023 the lease
had expired and was not renewed.
In August 2021, the City entered into a 60-month lease as Lessee for the use of a copier for the police department,
patrol division. An initial lease liability was recorded in the amount of $7,704. As of December 31, 2023, the value
of the lease liability is $4,006. The City is required to make monthly fixed payments of $130. The lease has an
interest rate of 0.5773%. The estimated useful life was 60 months as of the contract commencement. The value of
the right to use asset as of December 31, 2023, of $7,704 with accumulated amortization of $3,658 is included in
the table in Note 7.
In June 2018, the City entered into a 60-month lease as Lessee for the use of a copier for the police department,
front office division. An initial lease liability was recorded in the amount of $13,778. As of December 31, 2023, the
lease had expired and the equipment is now covered by the Electronic Business Machines Supplemental lease.
In June 2018, the City entered into a 60-month lease as Lessee for the use of a plotter for the public works
department. An initial lease liability was recorded in the amount of $16,772. As of December 31, 2023, the lease
had expired and a replacement plotter was purchased rather than leased
In June 2018, the City entered into a 60-month lease as Lessee for the use of a copier for the Tukwila Community
Center, administration division. An initial lease liability was recorded in the amount of $13,276. As of December 31,
2023, the lease had expired and the equipment is now covered by the Electronic Business Machines Supplemental
lease.
In August 2021, the City entered into a 60-month lease as Lessee for the use of a copier for the technology
information services department. An initial lease liability was recorded in the amount of $7,704. As of December 31,
2023, the value of the lease liability is $4,006. The City is required to make monthly fixed payments of $130. The
lease has an interest rate of 0.5773%. The estimated useful life was 60 months as of the contract commencement.
The value of the right to use asset as of December 31, 2022, of $7,704 with accumulated amortization of $3,658 is
included in the table in Note 7.
In May 2018, the City entered into a 60-month lease as Lessee for the use of a postage machine: SendPro P Series.
An initial lease liability was recorded in the amount of $34,692. As of December 31, 2023, the lease had expired,
and the City entered into a new lease with Pitney Bowes.
In July 2023, the City entered into a 60-month lease as Lessee for the use of a Pitney Bowes postage meter. An
initial lease liability was recorded in the amount of $29,855. As of December 31, 2023, the value of the lease liability
is $27,472. The City is required to make monthly fixed payments of $540. The lease has an interest rate of 2.6600%.
The equipment estimated useful life was 60 months as of the contract commencement. The value of the right to
use asset as of December 31, 2023 of $29,855 with accumulated amortization of $2,985 is included in the table in
Note 7. The lease has an unguaranteed residual value of $5,000.
In August 2023, the City entered into a 36 month lease as Lessee with Dell Financial Services for laptops which are
assigned to City employees. An initial lease liability was recorded in the amount of $140,723. As of December 31,
2023, the value of the lease liability is $90,225. The City is required to make annual fixed payments of $50,498. The
lease has an interest rate of 7.8600%. The estimated useful life was 36 months as of the contract commencement.
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
The value of the right to use asset as of December 31, 2023 of $140,723 with accumulated amortization of $19,545
is included in the table in Note 7.
In August 2023, the City entered into a 36 month lease as Lessee with Dell Financial Services for10-key laptops
which are assigned to City employees. An initial lease liability was recorded in the amount of $9,346. As of
December 31, 2023, the value of the lease liability is $6,005. The City is required to make annual fixed payments
of $3,341. The lease has an interest rate of 7.4200%. The estimated useful life was 36 months as of the contract
commencement. The value of the right to use asset as of December 31, 2023 of $9,346 with accumulated
amortization of $1,298 is included in the table in Note 7.
In January 2022, the City entered into a 60-month lease as Lessee for the use of a Ford Explorer - 2576RG. An
initial lease liability was recorded in the amount of $31,726. As of December 31, 2023, the value of the lease liability
is $20,128. The City is required to make monthly fixed payments of $596. The lease has an interest rate of 4.1920%.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023, of $31,726 with accumulated amortization of $12,232 is included in the table in Note 7. The
lease has an unguaranteed residual value of $6,040.
In January 2022, the City entered into a 60-month lease as Lessee for the use of a Ford Explorer - 73917D. An
initial lease liability was recorded in the amount of $31,733. As of December 31, 2023, the value of the lease liability
is $20,091. The City is required to make monthly fixed payments of $593. The lease has an interest rate of 3.9536%.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023, of $31,733 with accumulated amortization of $12,482 is included in the table in Note 7. The
lease has an unguaranteed residual value of $5,818.
In March 2022, the City entered into a 60-month lease as Lessee for the use of a Ford Escape - 257XHG. An initial
lease liability was recorded in the amount of $25,862. As of December 31, 2023, the value of the lease liability is
$17,562. The City is required to make monthly fixed payments of $491. The lease has an interest rate of 5.2130%.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023, of $25,862 with accumulated amortization of $9,454 is included in the table in Note 7. The
lease has an unguaranteed residual value of $4,606.
In February 2022, the City entered into a 60-month lease as Lessee for the use of a Ford Explorer - 25999W. An
initial lease liability was recorded in the amount of $31,375. As of December 31, 2023, the value of the lease liability
is $20,424. The City is required to make monthly fixed payments of $589. The lease has an interest rate of 4.1964%.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023, of $31,375 with accumulated amortization of $12,027 is included in the table in Note 7. The
lease has an unguaranteed residual value of $5,956.
In December 2022, the City entered into a 60-month lease as Lessee for the use of a Ford Police - 26722H. An
initial lease liability was recorded in the amount of $65,173. As of December 31, 2023, the value of the lease liability
is $54,485. The City required to make monthly fixed payments of $1,419. The lease has an interest rate of
10.5032%. The estimated useful life was 60 months as of the contract commencement. The value of the right to
use asset as of December 31, 2023, of $65,173 with accumulated amortization of $13,940 is included in the table
in Note 7. The lease has an unguaranteed residual value of $5,818.
In September 2022, the City entered into a 60-month lease as Lessee for the use of a Ford 550 - 269CGP. An initial
lease liability was recorded in the amount of $87,171. As of December 31, 2023, the value of the lease liability is
$68,503. The City is required to make monthly fixed payments of $1,833. The lease has an interest rate of 8.9823%.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023, of $87,171 with accumulated amortization of $21,986 is included in the table in Note 7. The
lease has an unguaranteed residual value of $16,696.
In September 2022, the City entered into a 60-month lease as Lessee for the use of a Ford Explorer - 269CSM. An
initial lease liability was recorded in the amount of $46,365. As of December 31, 2023, the value of the lease liability
is $36,349. The City is required to make monthly fixed payments of $965. The lease has an interest rate of 8.5418%.
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023, of $46,365 with accumulated amortization of $11,849 is included in the table in Note 7. The
lease has an unguaranteed residual value of $8,826.
In November 2022, the City entered into a 60-month lease as Lessee for the use of a Ford XLT - 73913D - 26FZF8.
An initial lease liability was recorded in the amount of $48,893. As of December 31, 2023, the value of the lease
liability is $40,070. The City is required to make monthly fixed payments of $1,029. The lease has an interest rate
of 8.8190%. The estimated useful life was 60 months as of the contract commencement. The value of the right to
use asset as of December 31, 2023, of $48,893 with accumulated amortization of $11,245 is included in the table
in Note 7. The lease has an unguaranteed residual value of $9,059.
In November 2022, the City entered into a 60-month lease as Lessee for the use of a Ford Explorer XLT - 26FzJ6.
An initial lease liability was recorded in the amount of $48,909. As of December 31, 2023, the value of the lease
liability is $39,736. The City is required to make monthly fixed payments of $1,008. The lease has an interest rate
of 8.1026%. The estimated useful life was 60 months as of the contract commencement. The value of the right to
use asset as of December 31, 2023, of $48,909 with accumulated amortization of $11,249 is included in the table
in Note 7. The lease has an unguaranteed residual value of $8,872.
In December 2022, the City entered into a 60-month lease as Lessee for the use of a Ram 2500 - 26HM5G. An
initial lease liability was recorded in the amount of $66,626. As of December 31, 2023, the value of the lease liability
is $55,079. The City is required to make monthly fixed payments of $1,366. The lease has an interest rate of
7.8967%. The estimated useful life was 60 months as of the contract commencement. The value of the right to use
asset as of December 31, 2023, of $66,626 with accumulated amortization of $13,732 is included in the table in
Note 7. The lease has an unguaranteed residual value of $12,591.
In November 2022, the City entered into a 60-month lease as Lessee for the use of a Ford F-250 - 26FRX3. An
initial lease liability was recorded in the amount of $68,353. As of December 31, 2023, the value of the lease liability
is $55,393. The City is required to make monthly fixed payments of $1,407. The lease has an interest rate of
8.1934%. The estimated useful life was 60 months as of the contract commencement. The value of the right to use
asset as of December 31, 2023, of $68,353 with accumulated amortization of $14,956 is included in the table in
Note 7. The lease has an unguaranteed residual value of $12,825.
In September 2022, the City entered into a 60-month lease as Lessee for the use of a Ford Explorer - 25GQ4C. An
initial lease liability was recorded in the amount of $31,779. As of December 31, 2023, the value of the lease liability
is $24,752. The City is required to make monthly fixed payments of $644. The lease has an interest rate of 7.3561 %.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023, of $31,779 with accumulated amortization of $8,121 is included in the table in Note 7. The
lease has an unguaranteed residual value of $6,029.
In February 2023, the City entered into a 60-month lease as Lessee for the use of Ford F-150 - 26GFDC. An initial
lease liability was recorded in the amount of $53,845. As of December 31, 2023, the value of the lease liability is
$45,281. The City is required to make monthly fixed payments of $1,056. The lease has an interest rate of 7.4604%.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023 of $53,845 with accumulated amortization of $9,710 is included in the table in Note 7. The
lease has an unguaranteed residual value of $9,954.
In January 2023, the City entered into a 60-month lease as Lessee for the use of a Ford - 26722R. An initial lease
liability was recorded in the amount of $65,340. As of December 31, 2023, the value of the lease liability is $55,558.
The City is required to make monthly fixed payments of $1,422. The lease has an interest rate of 10.4876%. The
estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of
December 31, 2023 of $65,340 with accumulated amortization of $12,778 is included in the table in Note 7. The
lease has an unguaranteed residual value of $5,958.
In March 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Explorer - 26NLKD. An initial
lease liability was recorded in the amount of $46,284. As of December 31, 2023, the value of the lease liability is
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
$40,247. The City is required to make monthly fixed payments of $928. The lease has an interest rate of 7.6896%.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023 of $46,284 with accumulated amortization of $7,588 is included in the table in Note 7. The
lease has an unguaranteed residual value of $8,670.
In March 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Explorer - 26NLL2. An initial
lease liability was recorded in the amount of $46,284. As of December 31, 2023, the value of the lease liability is
$40,247. The City is required to make monthly fixed payments of $928. The lease has an interest rate of 7.6896%.
The estimated useful life was 600 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023 of $46,284 with accumulated amortization of $7,588 is included in the table in Note 7. The
lease has an unguaranteed residual value of $8,670.
In April 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Ranger - 26KQHD. An initial
lease liability was recorded in the amount of $31,209. As of December 31, 2023, the value of the lease liability is
$27,321. The City is required to make monthly fixed payments of $624. The lease has an interest rate of 8.0100%.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023 of $31,209 with accumulated amortization of $4,605 is included in the table in Note 7. The
lease has an unguaranteed residual value of $5,768.
In April 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Ranger-26KQJJ. An initial
lease liability was recorded in the amount of $31,209. As of December 31, 2023, the value of the lease liability is
$27,321. The City is required to make monthly fixed payments of $624. The lease has an interest rate of 8.0100%.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023 of $31,209 with accumulated amortization of $4,605 is included in the table in Note 7. The
lease has an unguaranteed residual value of $5,768.
In April 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Transit 250 Cargo - 26NPG7.
An initial lease liability was recorded in the amount of $66,539. As of December 31, 2023, the value of the lease
liability is $57,949. The City is required to make monthly fixed payments of $1,323. The lease has an interest rate
of 8.0100%. The estimated useful life was 600 months as of the contract commencement. The value of the right to
use asset as of December 31, 2023 of $66,539 with accumulated amortization of $9,893 is included in the table in
Note 7.
In April 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Transit 250 Cargo - 26NPN6.
An initial lease liability was recorded in the amount of $65,856. As of December 31, 2023, the value of the lease
liability is $57,949. The City is required to make monthly fixed payments of $1,323. The lease has an interest rate
of 8.0100%. The estimated useful life was 60 months as of the contract commencement. The value of the right to
use asset as of December 31, 2023 of $65,856 with accumulated amortization of $9,716 is included in the table in
Note 7.
In May 2023, the City entered into a 60-month lease as Lessee for the use of a Ford F-350 - 256GM8. An initial
lease liability was recorded in the amount of $60,052. As of December 31, 2023, the value of the lease liability is
$52,929. The City is required to make monthly fixed payments of $1,191. The lease has an interest rate of 7.3100%.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023 of $60,052 with accumulated amortization of $8,007 is included in the table in Note 7.
In June 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Explorer - 26RZ2P. An initial
lease liability was recorded in the amount of $51,284. As of December 31, 2023, the value of the lease liability is
$45,952. The City is required to make monthly fixed payments of $1,021. The lease has an interest rate of 7.4800%.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023 of $51,284 with accumulated amortization of $5,983 is included in the table in Note 7.
In June 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Explorer-26S2LG. An initial
lease liability was recorded in the amount of $53,618. As of December 31, 2023, the value of the lease liability is
$48,043. The City is required to make monthly fixed payments of $1,067. The lease has an interest rate of 7.4800%.
63
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023 of $53,618 with accumulated amortization of $6,255 is included in the table in Note 7.
In June 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Explorer - 26S2N8. An initial
lease liability was recorded in the amount of $53,061. As of December 31, 2023, the value of the lease liability is
$47,544. The City is required to make monthly fixed payments of $1,056. The lease has an interest rate of 7.4800%.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023 of $53,061 with accumulated amortization of $6,190 is included in the table in Note 7.
In July 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Explorer - 26ZKVK. An initial
lease liability was recorded in the amount of $46,464. As of December 31, 2023, the value of the lease liability is
$42,314. The City is required to make monthly fixed payments of $932.06. The lease has an interest rate of
7.8200%. The estimated useful life was 60 months as of the contract commencement. The value of the right to use
asset as of December 31, 2023 of $46,464 with accumulated amortization of $4,646 is included in the table in Note
7.
In August 2023, the City entered into a 60-month lease as Lessee for the use of a Ford F-150 - 26XM2M. An initial
lease liability was recorded in the amount of $86,116. As of December 31, 2023, the value of the lease liability is
$79,647. The City is required to make monthly fixed payments of $1,735. The lease has an interest rate of 8.0100%.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023 of $86,116 with accumulated amortization of $7,176 is included in the table in Note 7.
In September 2023, the City entered into a 60-month lease as Lessee for the use of a Chevrolet Silverado - 272TTP.
An initial lease liability was recorded in the amount of $96,538. As of December 31, 2023, the value of the lease
liability is $90,627. The City is required to make monthly fixed payments of $1,945. The lease has an interest rate
of 8.0100%. The estimated useful life was 60 months as of the contract commencement. The value of the right to
use asset as of December 31, 2023 of $96,538 with accumulated amortization of $6,436 is included in the table in
Note 7.
In September 2023, the City entered into a 60-month lease as Lessee for the use of a Ford F-150 - 273CV3. An
initial lease liability was recorded in the amount of $56,928. As of December 31, 2023, the value of the lease liability
is $53,442. The City is required to make monthly fixed payments of $1,147. The lease has an interest rate of
8.0100%. The estimated useful life was 60 months as of the contract commencement. The value of the right to use
asset as of December 31, 2023 of $56,928 with accumulated amortization of $3,795 is included in the table in Note
7.
In September 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Police Interceptor Utility
- 26722L. An initial lease liability was recorded in the amount of $97,800. As of December 31, 2023, the value of
the lease liability is $91,811. The City is required to make monthly fixed payments of $1,970. The lease has an
interest rate of 8.0100%. The Vehicles estimated useful life was 60 months as of the contract commencement. The
value of the right to use asset as of December 31, 2023 of $97,800 with accumulated amortization of $6,520 is
included in the table in Note 7.
In September 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Police Interceptor -
26722M. An initial lease liability was recorded in the amount of $97,824. As of December 31, 2023, the value of the
lease liability is $91,833. The City is required to make monthly fixed payments of $1,971. The lease has an interest
rate of 8.0100%. The estimated useful life was 60 months as of the contract commencement. The value of the right
to use asset as of December 31, 2023 of $97,824 with accumulated amortization of $6,522 is included in the table
in Note 7.
In September 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Police Interceptor -
26722N. An initial lease liability was recorded in the amount of $97,800. As of December 31, 2023, the value of the
lease liability is $91,811. The City is required to make monthly fixed payments of $1,970. The lease has an interest
rate of 8.0100%. The estimated useful life was 60 months as of the contract commencement. The value of the right
64
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
to use asset as of December 31, 2023 of $97,800 with accumulated amortization of $6,520 is included in the table
in Note 7.
In September 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Police Interceptor -
2725BG. An initial lease liability was recorded in the amount of $95,829. As of December 31, 2023, the value of the
lease liability is $91,811. The City is required to make monthly fixed payments of $1,970. The lease has an interest
rate of 8.0100%. The estimated useful life was 60 months as of the contract commencement. The value of the right
to use asset as of December 31, 2023 of $95,829 with accumulated amortization of $6,389 is included in the table
in Note 7.
In September 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Police Interceptor -
26722Q. An initial lease liability was recorded in the amount of $96,232. As of December 31, 2023, the value of the
lease liability is $90,339. The City is required to make monthly fixed payments of $1,9395. The lease has an interest
rate of 8.0100%. The estimated useful life was 60 months as of the contract commencement. The value of the right
to use asset as of December 31, 2023 of $96,232 with accumulated amortization of $6,415 is included in the table
in Note 7.
In September 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Police Interceptor -
26722F. An initial lease liability was recorded in the amount of $97,810. As of December 31, 2023, the value of the
lease liability is $91,827. The City is required to make monthly fixed payments of $1,976. The lease has an interest
rate of 8.1300%. The estimated useful life was 60 months as of the contract commencement. The value of the right
to use asset as of December 31, 2023 of $97,810 with accumulated amortization of $6,521 is included in the table
in Note 7.
In October 2023, the City entered into a 60-month lease as Lessee for the use of a Chevrolet Traverse - 277Q8G.
An initial lease liability was recorded in the amount of $38,678. As of December 31, 2023, the value of the lease
liability is $36,843. The City is required to make monthly fixed payments of $780. The lease has an interest rate of
8.0400%. The estimated useful life was 60 months as of the contract commencement. The value of the right to use
asset as of December 31, 2023 of $38,678 with accumulated amortization of $1,934 is included in the table in Note
7.
In December 2023, the City entered into a 60-month lease as Lessee for the use of a Chevrolet Silverado 2500HD
- 277LXS. An initial lease liability was recorded in the amount of $75,619. As of December 31, 2023, the value of
the lease liability is $74,086. The City is required to make monthly fixed payments of $1,533. The lease has an
interest rate of 8.2800%. The estimated useful life was 60 months as of the contract commencement. The value of
the right to use asset as of December 31, 2023 of $75,619 with accumulated amortization of $1,260 is included in
the table in Note 7.
In February 2023, the City entered into a 60-month lease as Lessee for the use of a Ford F-150 - 26GFHQ. An
initial lease liability was recorded in the amount of $53,100. As of December 31, 2023, the value of the lease liability
is $44,506. The City is required to make monthly fixed payments of $1,056. The lease has an interest rate of
7.4600%. The estimated useful life was 60 months as of the contract commencement. The value of the right to use
asset as of December 31, 2023 of $53,100 with accumulated amortization of $9,735 is included in the table in Note
7.
In July 2023, the City entered into a 60-month lease as Lessee for the use of a Ford Explorer - 26ZKHS. An initial
lease liability was recorded in the amount of $46,464. As of December 31, 2023, the value of the lease liability is
$42,314. The City is required to make monthly fixed payments of $932. The lease has an interest rate of 7.8200%.
The estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as
of December 31, 2023 of $46,464 with accumulated amortization of $4,646 is included in the table in Note 7.
65
CITY OF TUKWILA: 2023 ACFR
NOTES TO THE FINANCIAL STATEMENTS
Principal and Interest Requirements to Maturity
Governmental Activities
Year Ended
December 31
Principal
Payments
Interest
Payments
Total Payments
2024
2025
2026
2027
2028
$ 89,387
82,490
7,962
6,308
3,217
$ 9,744
4,747
346
177
25
$ 99,131
87,237
8,308
6,484
3,242
Totals
$ 189,364
$ 15,039
$ 204,403
Leases Receivable
Business-T pe Activities
Year Ended
Principal
Interest
December 31
Payments
Payments
Total Payments
2024
$ 410,531
$ 145,757
$ 556,288
2025
444,248
112,039
556,287
2026
480,784
75,503
556,287
2027
471,151
36,532
507,683
2028
205,408
5,696
211,104
Totals
$ 2,012,122
$ 375,527
$ 2,387,649
In July 2012, the City entered into a 180-month lease as Lessor for the use of a Billboard on city property. An initial
lease receivable was recorded in the amount of $375,000. As of December 31, 2023, the value of the lease
receivable is $113,927. The lessee is required to make annual fixed payments of $28,891. The lease has an interest
rate of 0.5727%. The infrastructure estimated useful life was 180 months as of the contract commencement. The
value of the deferred inflow of resources as of December 31, 2023 was $107,905, and the City recognized lease
revenue of $30,113 during the fiscal year.
In January 2023„ the City entered into a 24-month lease as Lessor for the use of 6300 Southcenter Boulevard
office space. An initial lease receivable was recorded in the amount of $43,189. As of December 31, 2023, the
value of the lease receivable is $20,420. The lessee is required to make monthly fixed payments of $2,251. The
lease has an interest rate of 2.6500%. The office space estimated useful life was 24 months as of the contract
commencement. The value of the deferred inflow of resources as of December 31, 2023 was $21,594, and the City
recognized lease revenue of $21,594 during the fiscal year.
Governmental Activities
Year Ended
Principal
Interest
Total Payments
2024
$ 48,658
$
947
$ 49,605
2025
28,400
491
28,891
2026
28,563
328
28,891
2027
28,726
165
28,891
Totals
$ 134,347
$ 1,930
$ 136,277
NOTE 6 - SUBSCRIPTION BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITA)
Subscriptions Payable
In December 2022, the City entered into a 107-month subscription for the use of Microsoft 365 Enterprise software.
An initial subscription liability was recorded in the amount of $897,802. As of December 31, 2023, the value of the
subscription liability is $793,884. The City is required to make annual fixed payments of $125,777. The subscription
has an interest rate of 2.6560%. The value of the right to use asset as of December 31, 2023 of $897,802 with
accumulated amortization of $100,688 and is included in the table in Note 7. The City has 1 extension option(s),
each for 36 months. The Vendor has 1 extension option(s), each for 36 months.
In September 2023, the City entered into a 60-month subscription for the use of Axon Enterprises - Fleet. An initial
subscription liability was recorded in the amount of $260,677. As of December 31, 2023, the value of the
subscription liability is $205,689. The City is required to make annual fixed payments of $60,541. The subscription
has an interest rate of 2.7360%. The value of the right to use asset as of December 31, 2023 of $260,677 with
accumulated amortization of $17,378 and is included in the table in Note 7.
In June 2022, the City entered into a 54-month subscription for the use of Axon Enterprises - Carte. An initial
subscription liability was recorded in the amount of $409,968. As of December 31, 2023, the value of the
66
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
subscription liability is $307,441. The City is required to make annual fixed payments of $117,471. The subscription
has an interest rate of 2.6760%. The value of the right to use asset as of December 31, 2023 of $409,968 with
accumulated amortization of $91,104 and is included in the table in Note 7.
In June 2023, the City entered into a 54-month subscription for the use of Axon Enterprises - Fleet 3A. An initial
subscription liability was recorded in the amount of $265,716. As of December 31, 2023, the value of the
subscription liability is $199,267. The City is required to make annual fixed payments of $77,078. The subscription
has an interest rate of 2.6760%. The value of the right to use asset as of December 31, 2023 of $265,716 with
accumulated amortization of $59,048 and is included in the table in Note 7.
In January 2023, the City entered into a 36-month subscription for the use of Falcon Platform. An initial subscription
liability was recorded in the amount of $80,393. As of December 31, 2023, the value of the subscription liability is
$52,890. The City is required to make annual fixed payments of $39,874. The subscription has an interest rate of
2.6560%. The value of the right to use asset as of December 31, 2023 of $80,393 with accumulated amortization
of $24,862 and is included in the table in Note 7.
In August 2023, the City entered into a 15-month subscription for the use of Policy Map Platform. An initial
subscription liability was recorded in the amount of $10,601. As of December 31, 2023, the value of the subscription
liability is $5,225. The City is required to make annual fixed payments of $5,376. The subscription has an interest
rate of 2.8943%. The value of the right to use asset as of December 31, 2023 of $10,601 with accumulated
amortization of $6,824 and is included in the table in Note 7.
In September 2023, the City entered into a 36-month subscription for the use of Freshservice. An initial subscription
liability was recorded in the amount of $34,015. As of December 31, 2023, the value of the subscription liability is
$22,351. The City is required to make annual fixed payments of $11,664. The subscription has an interest rate of
2.9010%. The value of the right to use asset as of December 31, 2023 of $34,015 with accumulated amortization
of $3,2131 and is included in the table in Note 7.
In January 2023, the City entered into a 35-month subscription for the use of Finance Enterprise. An initial
subscription liability was recorded in the amount of $214,406. As of December 31, 2023, the value of the
subscription liability is $108,507. The City is required to make annual fixed payments of $111,389. The subscription
has an interest rate of 2.6560%. The value of the right to use asset as of December 31, 2023 of $214,406 with
accumulated amortization of $72,339 and is included in the table in Note 7.
In March 2023, the City entered into a 60-month subscription for the use of Server Migration. An initial subscription
liability was recorded in the amount of $29,927. As of December 31, 2023, the value of the subscription liability is
$3,767. The City is required to make annual fixed payments of $26,160. The subscription has an interest rate of
2.6820%. The value of the right to use asset as of December 31, 2023 of $29,927 with accumulated amortization
of $4,556 and is included in the table in Note 7.
In January 2022, the City entered into a 48-month subscription for the use of Dynamic Bundle. An initial subscription
liability was recorded in the amount of $47,675. As of December 31, 2023, the value of the subscription liability is
$35,280. The City is required to make annual fixed payments of $16,584. The subscription has an interest rate of
2.6760%. The value of the right to use asset as of December 31, 2023 of $47,675 with accumulated amortization
of $11,919 and is included in the table in Note 7. The City had a termination period of 1 month as of the subscription
commencement.
In June 2023, the City entered into a 12-month subscription for the use of Debt Book. An initial subscription liability
was recorded in the amount of $13,457. As of December 31, 2023, the value of the subscription liability is $0. The
City is required to make annual fixed payments of $13,510. The subscription has an interest rate of 0.7400%. The
value of the right to use asset as of December 31, 2023 of $13,457 with accumulated amortization of $7,850 and is
included in the table in Note 7.
In January 2023, the City entered into a 48-month subscription for the use of Perfect Mind. An initial subscription
liability was recorded in the amount of $116,647. As of December 31, 2023, the value of the subscription liability is
67
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
$69,987. The City is required to make annual fixed payments of $23,600. The subscription has an interest rate of
0.5800%. The value of the right to use asset as of December 31, 2023 of $116,647 with accumulated amortization
of $29,162 and is included in the table in Note 7.
Principal and Interest Requirements to Maturity
Governmental Activities
Fiscal Year Ended
Interest
Total
December 31,
Principal Payments
Payments
Payments
2024
504,907
46,810
551,717
2025
401,185
33,767
434,952
2026
372,294
23,491
395,785
2027
167,759
14,011
181,769
2028
116,264
9,512
125,777
2029 - 2031
241,875
9,678
251,553
Totals
1,804,284
137,269
1,941,554
NOTE 7 - CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2023, was as follows:
GOVERNMENTAL ACTIVITIES
BEGINNING ENDING
BALANCE BALANCE
1/1/2023 INCREASES DECREASES 12/31/2023
Governmental Activities
Capital assets, not being depreciated:
Land $ 60,661,130 $ 919,861 $ $ 61,580,992
Construction in Progress 20,047,275 3,478,757 (6,457,448) 17,068,585
Total capital assets
not being depreciated 80,708,406 4,398,619 (6,457,448) 78,649,577
Capital assets, being depreciated:
Buildings
Other Improvements
Machinery and Equipment
Infrastructure
Intangible Assets
Leased Assets
Subscription Based IT Assets
Total capital assets
being depreciated
121,694,264
24, 335,111
26, 907, 041
230, 009, 898
1,960,917
1,057,346
1,384,201
1,266,914 (10,153,880)
4,927,823
(368,586)
1,887,709 (359,274)
2,381,285
123, 078,465
24, 335,111
18,020,075
234,937,721
1,592,331
2,585,781
2,381,285
405, 964, 578 11, 847, 932 (10, 881, 740) 406, 930, 770
Less accumulated depreciation for:
Buildings (21,036,581) (2,719,142)
Other Improvements (18,720,021) (904,356)
Machinery and Equipment (18,549,076) (1,078,194)
Infrastructure (96,471,605) (6,480,061)
Intangible Assets (1,560,683) (177,258)
Leased Assets (320,920) (429,148)
Subscription Based IT Assets (428,943)
6,812,961
368,586
352,817
(23, 755, 723)
(19,624,377)
(12, 814, 309)
(102,951,666)
(1,369,355)
(397,251)
(428,943)
Total accumulated depreciation (156,658,886) (12,217,102) 7,534,364 (161,341,624)
Total capital assets, being
depreciated, net 249,305,692 (369,170) (3,347,376) 245,589,146
Governmental activity capital assets, net $330,014,098 $ 4,029,449 $ (9,804,824) $324,238,723
68
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
BUSINESS -TYPE ACTIVITIES
BEGINNING ENDING
BALANCE BALANCE
1/1/2023 INCREASES DECREASES 12/31/2023
Business -Type Activities
Capital assets, not being depreciated:
Land $ 2,350,969 $ - $ - $ 2,350,969
Construction in Progress 1,522,404 2,339,720 (2,191,417) 1,670,707
Total capital assets,
not being depreciated 3,873,373 2,339,720 (2,191,417) 4,021,676
Capital assets, being depreciated:
Buildings
Other Improvements
Machinery and Equipment
Total capital assets
being depreciated
15, 774, 819
108,048,752
4,373,582
2,191,417
117,550
(28,080)
(254,945)
15, 774, 819
110, 212, 089
4,236,187
128,197,153
2,308,968 (283,025) 130,223,095
Less accumulated depreciation for:
Buildings (6,993,065) (420,775) - (7,413,840)
Other Improvements (44,921,777) (1,923,878) 20,943 (46,824,712)
Machinery and Equipment (2,502,525) (169,520) 251,291 (2,420,754)
Total accumulated depreciation (54,417,367) (2,514,173) 272,234 (56,659,306)
Total capital assets, being
depreciated, net 73,779,786 (205,206) (10,791) 73,563,789
Business -Type activity capital assets, net $ 77,653,159 $ 2,134,515 $ (2,202,208) $ 77,585,466
DEPRECIATION
Depreciation and Amortization expense for 2023 was charged to
functions/programs as follows:
Governmental Activities
General Government
Public Safety
Transportation
Economic Environment
Culture and Recreation
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets
$ 3,257,303
477,422
6,897,954
15,773
579,380
989,272
Total 2023 depreciation expense - governmental activities $12,217,102
Business -type activities:
Water Utility
Sewer Utility
Foster Golf Course
Surface Water Utility
Total 2023 depreciation expense - business -type activities
$ 598,866
468,313
344,474
1,102, 521
$ 2,514,173
69
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 8 — 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
Equity in Capital
Assets financed by
Outstanding Debt
Valley Com $4,615,420 $ -
SCORE 2,790,883 4,191,954
TOTAL
Investment in
Joint Ventures
$ 4,615,420
6,982,837
TOTAL $ 7,406, 303 $ 4,191, 954 $ 11, 598, 257
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 2023 cost distribution for the five (5) participating cities is as follows:
City
Dispatchable
Calls
Percent of Total
Renton
69,831
21.48%
Kent
87,959
27.06%
Auburn
67,644
20.81%
Tukwila
33,328
10.25%
Federal Way
66,332
20.40%
Total
325,093
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.
70
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
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 December 31, 2022
GASB 96 Adjusted Equity
Equity January 1, 2023, restated
Current Year Increase/(Decrease)
Equity December 31, 2023
Percent of Equity
$ 8,620,751
(10,014)
8,610,737
1,049,574
$11,574,131
(13,445)
11, 560, 686
1,322,034
$ 8,844,943
(10,274)
8,834,669
1,016,695
$ 4,119,279
(4,785)
4,114, 494
500,926
$ 7,636,612
(8,871)
7,627,741
996,975
$ 40,795,717
(47, 389)
40, 748, 328
4,886,204
$ 9,660,312 $12,882,719 $ 9,851,364 $ 4,615,420 $ 8,624,715 $ 45,634,532
21.17% 28.23%
21.59% 10.11%
18.90% 100.00%
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position. In August
1993, Valley Com entered into an interlocal cooperation agreement, pursuant to RCW 39.34 RCW, with the 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)
On February 25, 2009, the Cities of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila,
Washington (Member Cities) entered into a SCORE Facility Interlocal Agreement (as amended and restated on
October 1, 2009, the "2009 Interlocal Agreement") pursuant to chapter 39.34 RCW (Interlocal Cooperation Act) to
jointly construct, equip, maintain and operate a consolidated regional misdemeanant correctional facility located in
Des Moines, Washington (SCORE Facility) to serve the parties to the 2009 Interlocal Agreement and state agencies
and other local governments (Subscribing Agencies) to provide correctional services essential to the preservation
of the public health, safety and welfare. To carry out the purposes of the 2009 Interlocal Agreement and to operate,
manage and maintain the SCORE Facility, the Member Cities formed the South Correctional Entity (SCORE), a
separate governmental administrative agency pursuant to the 2009 Interlocal Agreement and RCW 39.34.030(3).
The 2009 Interlocal Agreement named the City of Des Moines as the "Host City" and the remaining Member Cities
as the "Owner Cities". 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 unexpended funds or
reserve funds shall be distributed based on the percentage of the Member City's average daily population at the
71
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
SCORE Facility for the last three (3) years regardless of its Owner City or Host City status. SCORE and 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.
SCORE, as a governmental administrative agency formed under the Interlocal Cooperation Act, is not expressly
authorized to issue bonds. To finance and refinance the costs of the SCORE Facility, the City of Renton,
Washington, chartered the South Correctional Entity Facility Public Development Authority as a public corporation
pursuant to RCW 35.21.730 through 35.21.757 (Public Corporation Act) and Ordinance No. 5444, passed on
February 2, 2009 (Charter Ordinance).
2009 Bonds. The SCORE PDA issued its Bonds, Series 2009A (2009A Bonds) and Bonds, Series 2009B (Taxable
Build America Bonds —Direct Payment) (2009B Bonds, and, together the 2009 Bonds) on November 4, 2009 in the
aggregate principal amount of $86,235,000. Proceeds of the 2009 Bonds were used to finance a portion of the
costs of acquiring, constructing, developing, equipping and improving the SCORE Facility, to capitalize interest
during construction, and to pay costs of issuance for the 2009 Bonds.
Pursuant to the 2009 Interlocal Agreement and the ordinances of each city, each Owner City (which included the
Cities of Auburn, Burien, Federal Way, Renton, SeaTac, and Tukwila) was obligated to budget for and pay its share,
and only its share, of the principal of and interest on the 2009 Bonds as the same become due and payable (referred
to as each Owner City's 2009 Capital Contribution). Each Owner City's obligation to pay its 2009 Capital
Contribution is an irrevocable, unconditional full faith and credit obligation of such Owner City, payable from regular
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.
Subsequent Activities: Refunding of 2009 Bonds and Amendment and Restatement of Interlocal
Agreement. Pursuant to the 2009 Interlocal Agreement, on September 5, 2018, the City of Federal Way gave its
notice of intent to withdraw from SCORE effective December 31, 2019. The remaining Member Cities (including
the cities of Auburn, Burien, Des Moines, Renton, SeaTac and Tukwila) entered into an Amended and Restated
SCORE Interlocal Agreement (2019 Interlocal Agreement), which amended and restated the 2009 Interlocal
Agreement in its entirety, removed Federal Way as a Member City and an Owner City, terminated the Host City
Agreement, and made other revisions to provide for the issuance of bonds to refund the 2009 Bonds. On December
11, 2019, the Authority issued its Refunding Bonds, Series 2019 in the aggregate principal amount of $51,055,000
(2019 Bonds). The 2019 Interlocal Agreement became effective on the date of issuance of the 2019 Bonds.
Proceeds of the 2019 Bonds were used to defease and refund all of the outstanding 2009 Bonds.
Pursuant to the 2019 Interlocal Agreement and the ordinances of each city, each Owner City (including the Cities
of Auburn, Burien, Des Moines, 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 2019 Bonds as the same become due and payable (referred to as
each Owner City's 2019 Capital Contribution). Each Owner City's obligation to pay its 2019 Capital Contribution is
an irrevocable, unconditional full faith and credit obligation of such Owner City, payable from regular property taxes
levied within the constitutional and statutory authority provided without a vote of the electors of the Owner City on
all of the taxable property within the Owner City and other sources of revenues available therefor.
The following is a summary of the debt service requirements for the 2019 Bonds:
72
CITY OF TUKWILA: 2023 ACFR
NOTES TO THE FINANCIAL STATEMENTS
SUMMARY OF DEBT SERVICE REQUIREMENTS
Debt Service Schedule
Debt Service Allocation to Owner Cities
Auburn
Burien
Des Moines
Renton
SeaTac
Tukwila
Year
Principal
Interest
Total
34.94%
4.82%
6.02%
40.96%
3.62%
9.64%
2024
2,070,000
1,839,900
3,909,900
1,366,120
188,457
235,376
1,601,495
141,538
376,914
2025
2,155,000
1,757,100
3,912,100
1,366,889
188,563
235,508
1,602,396
141,618
377,126
2026
2,260,000
1,649,350
3,909,350
1,365,927
188,431
235,343
1,601,270
141,518
376,861
2027
2,375,000
1,536,350
3,911,350
1,366,626
188,527
235,463
1,602,089
141,591
377,054
2028
2,490,000
1,417,600
3,907,600
1,365,315
188,346
235,238
1,600,553
141,455
376,693
2029-2033
14,430,000
5,120,300
19,550,300
6,830,875
942,324
1,176,928
8,007,803
707,721
1,884,649
2034-2038
17,705,000
1,840,250
19,545,250
6,829,111
942,081
1,176,624
8,005,734
707,538
1,884,162
Totals
$43,485,000
$15,160,850
$58,645,850
20,490,863
2,826,729
3,530,480
24,021,340
2,122,979
5,653,459
The City of Tukwila reports its share of equity interest in the Governmental Activities column within the Government -
wide financial statements under non -current assets. The following summary of the Capital Contributions for the
2019 Bonds is condensed (unaudited) financial information reported as of December 31, 2023 in relation to SCORE:
Member City
2022 Percent of
Equity
2022 Equity
Balance
2023 Percent of
Equity
2023
Apportionment
2023 Equity
Balance
Auburn
41.48%
14,096,126
41.38%
1,218,714
15,314,840
Burien
5.39%
1,831,888
5.68%
268,275
2,100,163
Des Moines
5.02%
1,707,548
5.11%
181,695
1,889,243
Renton
32.11%
10,913,931
32.11%
970,291
11,884,222
SeaTac
8.27%
2,812,314
8.18%
214,728
3,027,042
Tukwila
7.73%
2,627,335
7.54%1
163,548
2,790,883
Grand Totals
100.00%
33,989,142
100.00%
3,017,251
37,006,393
The investment in joint venture for SCORE on the Statement of Net Position includes Tukwila's share of debt
refinanced in 2019. As of December 31, 2023, the City's share of SCORE debt is $4,191,954. See Note 11 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 9 - PENSION PLANS
The following table represents the aggregate pension amounts for all plans for the year 2023:
Aggregate Pension Amounts — All Plans
Pension liabilities
$ (2,401,092)
Pension assets
16,727,354
Deferred outflows of resources
14,232,733
Deferred inflows of resources
(6,118,703)
Pension expense/expenditures
(930,267)
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.
73
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
The Department of Retirement Systems (DRS), a department within the primary government of the State of
Washington, issues a publicly available annual comprehensive financial report (ACFR) that includes financial
statements and required supplementary information for each plan.
The DRS ACFR 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 local governments; and higher education
employees not participating in higher education retirement programs.
PERS is composed of and reported as three separate plans for accounting purposes: Plan 1, Plan 2/3 and Plan 3.
Plan 1 accounts for the defined benefits of Plan 1 members. Plan 2/3 accounts for the defined benefits of Plan 2
members and the defined benefit portion of benefits for Plan 3 members. Plan 3 accounts for the defined contribution
portion of benefits for Plan 3 members. Although employees can be a member of only Plan 2 or Plan 3, the defined
benefits of Plan 2 and Plan 3 are accounted for in the same pension trust fund. All assets of Plan 2/3 may legally
be used to pay the defined benefits of any Plan 2 or Plan 3 members or beneficiaries.
PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as 2% 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. PERS Plan 1 retirement benefits are actuarially reduced if a survivor benefit is chosen. Members retiring
from active status prior to the age of 65 may also receive actuarially reduced benefits. Other benefits include an
optional cost -of -living adjustment (COLA). 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%. The employer contribution rate
is developed by the Office of the State Actuary, adopted by the Pension Funding Council and is subject to change
by the legislature. The PERS Plan 1 required contribution rates (expressed as a percentage of covered payroll)
for 2023 were as follows:
PERS Plan 1
Actual Contribution Rates
Employer
Employee*
January — June 2023
PERS Plan 1
6.36%
6.00%
PERS Plan 1 UAAL
3.85%
Administrative Fee
0.18%
Total
10.39%
6.00%
July — August 2023
PERS Plan 1
6.36%
6.00%
PERS Plan 1 UAAL
2.85%
Administrative Fee
0.18%
Total
9.39%
6.00%
September — December 2023
PERS Plan 1
6.36%
6.00%
PERS Plan 1 UAAL
2.97%
Administrative Fee
0.20%
Total
9.53%
6.00%
* For employees participating in JBM, the contribution rate was 12.26%.
PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits are determined as 2% of the
member's AFC times the member's years of service for Plan 2 and 1 % of AFC for Plan 3. The AFC is the average
74
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
of the member's 60 highest -paid consecutive service months. 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 retirement benefits are actuarially reduced if a survivor benefit is chosen. Other PERS Plan 2/3
benefits include a COLA based on the CPI, capped at 3% annually. 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. Members are eligible to withdraw their defined contributions upon separation.
Members have multiple withdrawal options, including purchase of an annuity. PERS Plan 3 members are
immediately vested in the defined contribution portion of their plan.
Contributions
The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State Actuary to
fully fund Plan 2 and the defined benefit portion of Plan 3.The rates are adopted by the Pension Funding Council,
and are subject to change by the Legislature. The employer rate includes a component to address the PERS Plan
1 Unfunded Actuarial Accrued Liability (UAAL).
As established by Chapter 41.34 RCW, Plan 3 defined contribution rates are set at a minimum of 5% and a
maximum of 15%. PERS Plan 3 members choose their contribution rate from six options when joining membership
and can change rates only when changing employers. Employers do not contribute to the defined contribution
benefits.
The PERS Plan 2/3 defined benefit required contribution rates (expressed as a percentage of covered payroll) for
2023 were as follows:
PERS Plan 2/3
Actual Contribution Rates
Employer 2/3
Employee 2*
Employee 3**
January — June 2023
PERS Plan 2/3
6.36%
6.36%
Varies
PERS Plan 1 UAAL
3.85%
Administrative Fee
0.18%
Total
10.39%
6.36%
July — August 2023
PERS Plan 2/3
6.36%
6.36%
Varies
PERS Plan 1 UAAL
2.85%
Administrative Fee
0.18%
Total
9.39%
6.36%
September — December 2023
PERS Plan 2/3
6.36%
6.36%
Varies
PERS Plan 1 UAAL
2.97%
Administrative Fee
0.20%
Total
9.53%
6.36%
* For employees participating in JBM, the contribution rate was 15.90%.
**For employees participating in JBM, the minimum contribution rate was 7.50%
The City of Tukwila's actual PERS plan contributions were $667,578 to PERS Plan 1 and $1,231,334 to PERS Plan
2/3 for the year ended December 31, 2023.
Public Safety Employees' Retirement System (PSERS)
PSERS Plan 2 was created by the 2004 Legislature and became effective July 1, 2006.
75
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
PSERS membership includes certain public employees whose jobs contain a high degree of physical risk to their
own personal safety. In addition to meeting strict statutory work requirements, membership is further restricted to
specific employers including:
• 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 2% of the
AFC times the member's years of service. The AFC is based on the member's 60 consecutive highest creditable
months of service. 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. 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. Retirement before
age 60 is considered an early retirement. PSERS members who retire before turning 60 receive reduced benefits.
If retirement is at age 53 or older with at least 20 years of service, a 3% per year reduction for each year between
the age at retirement and age 60 applies. PSERS Plan 2 retirement benefits are actuarially reduced if a survivor
benefit is chosen. Other benefits include a COLA, capped at 3% annually. 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 rates are adopted by the Pension Funding Council and are subject to change by the
Legislature. The Plan 2 employer rates include components to address the PERS Plan 1 UAAL.
The PSERS Plan 2 required contribution rates (expressed as a percentage of current -year covered payroll) for 2023
were as follows:
PSERS Plan 2
Actual Contribution Rates
Employer
Employee
January — June 2023
PSERS Plan 2
6.60%
6.60%
PERS Plan 1 UAAL
3.85%
Administrative Fee
0.18%
Total
10.63%
6.60%
July — August 2023
PSERS Plan 2
6.60%
6.60%
PERS Plan 1 UAAL
2.85%
Administrative Fee
0.18%
Total
9.63%
6.60%
September — December 2023
PSERS Plan 2
6.73%
6.73%
PERS Plan 1 UAAL
2.97%
Administrative Fee
0.20%
Total
9.90%
6.73%
The City of Tukwila's actual plan contributions were $20,700 to PSERS Plan 2 for the year ended December 31,
2023.
76
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF)
LEOFF was established in 1970, and its retirement benefit provisions are contained in Chapter 41.26 RCW. LEOFF
membership includes all of the state's full-time, fully compensated, local law enforcement commissioned officers,
fire fighters and, as of July 24, 2005, emergency medical technicians.
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 -paid
consecutive 24 months' 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 a COLA. 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
tarting on July 1, 2000, LEOFF Plan 1 employers and employees contribute 0%, as long as the plan remains fully
funded. The LEOFF Plan I had no required employer or employee contributions for fiscal year 2023. Employers
paid only the administrative expense of 0.20% of covered payroll.
LEOFF Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as 2% of the
FAS per year of service (the FAS is based on the highest -paid 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 — 52, the reduction is 3%
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
a COLA (based on the CPI), capped at 3% annually. 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 rates are adopted by the LEOFF Plan 2 Retirement Board and are subject to change by the
Legislature.
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 state contribution rate (expressed as a percentage of
covered payroll) was 3.41 % in 2023.
77
CITY OF TUKWILA: 2023 ACFR
NOTES TO THE FINANCIAL STATEMENTS
The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2023 were as
follows:
LEOFF Plan 2
Actual Contribution Rates
Employer
Employee
January — August 2023
State and local governments
5.12%
8.53%
Administrative Fee
0.18%
Total
5.30%
8.53%
Ports and Universities
8.53%
8.53%
Administrative Fee
0.18%
Total
8.71%
8.53%
September — December 2023
State and local governments
5.12%
8.53%
Administrative Fee
0.20%
Total
5.32%
8.53%
Ports and Universities
8.53%
8.53%
Administrative Fee
0.20%
Total
8.73%
8.53%
The City of Tukwila's actual contributions to the plan were $518,709 for the year ended December 31, 2023.
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 Office of the State Actuary 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, 2023, the state contributed $87,966,142 to LEOFF Plan 2. The amount recognized by the City as its
proportionate share of this amount is $468,955.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation
completed in 2023 with a valuation date of June 30, 2022. The actuarial assumptions used in the valuation were
based on the results of the Office of the State Actuary's (OSA) 2013-2018 Demographic Experience Study and
the 2021 Economic Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2022 actuarial valuation report.
The TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2023.
Plan liabilities were rolled forward from June 30, 2022, to June 30, 2023, reflecting each plan's normal cost (using
the entry -age cost method), assumed interest and actual benefit payments.
• Inflation: 2.75% total economic inflation; 3.25% salary inflation
• Salary increases: In addition to the base 3.25% salary inflation assumption, salaries are also expected to
grow by service -based salary increase.
• Investment rate of return: 7.00%
Mortality rates were developed using the Society of Actuaries' Pub. H-2010 mortality rates, which vary by member
status (e.g. active, retiree, or survivor), as the base table. OSA applied age offsets for each system, as appropriate,
to better tailor the mortality rates to the demographics of each plan. OSA applied the long-term MP-2017
generational improvement scale, also developed by the Society of Actuaries, to project mortality rates for every
year after the 2010 base table. Mortality rates are applied on a generational basis; meaning, each member is
assumed to receive additional mortality improvements in each future year throughout their lifetime.
78
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
Methods did not change from the prior contribution rate setting June 30, 2021 Actuarial Valuation Report (AVR).
OSA did make an assumption change to adjust TRS Plan 1 assets, LEOFF Plan 1/2 assets, and LEOFF participant
data to reflect certain material changes occurring after the June 30, 2022 measurement date.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.0%.
To determine that rate, an asset sufficiency test was completed to test whether each pension plan's fiduciary net
position was sufficient to make all projected future benefit payments for current plan members. Based on OSA's
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 7.0% 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 7.0% was determined using a
building -block -method. In selecting this assumption, OSA reviewed the historical experience data, considered the
historical conditions that produced past annual investment returns, and considered Capital Market Assumptions
(CMAs) and simulated expected investment returns provided by the Washington State Investment Board (WSIB).
The WSIB uses the CMA's and their target asset allocation to simulate future investment returns at various future
times.
Estimated Rates of Return by Asset Class
The table below summarizes the 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, 2021. The inflation component used to create
the table is 2.2% 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%
1.5%
Tangible Assets
7%
4.7%
Real Estate
18%
5.4%
Global Equity
32%
5.9%
Private Equity
23%
8.9%
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 7.0 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 (6.0 percent) or 1-percentage
point higher (8.0 percent) than the current rate.
1% Decrease
(6.0%)
Current Discount
Rate
(7.0%)
1% Increase
(8.0%)
PERS 1
$ 3,354,506
$ 2,401,092
$ 1,568,985
PERS 2/3
5,951,264
(5,471,824)
(14,856,613)
PSERS 2
64,866
(41,833)
(126,043)
LEOFF 1
(2,171,731)
(2,449,213)
(2,689,833)
LEOFF 2
1,292,089
(7,803,743)
(15,247,900)
79
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
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.
Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pensions
At June 30, 2023, the City of Tukwila reported a total pension asset of $16,727,354 and a total pension liability of
$2,401,092 for its proportionate share of the net pension liabilities as follows:
Liability or (Asset)
PERS 1
2,401,092
PERS 2/3
(5,471,824)
PSERS 2
(41,833)
LEOFF 1
(2,449,213)
LEOFF 2
(7,803,743)
Firemen's Pension
(960,741)
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
$ (2,449,213)
$ (7,803,743)
State's proportionate share of the net
pension asset associated with the
employer
(16,566,419)
(4,983,390)
TOTAL
$ (19,015,632)
$ (12,787,132)
At June 30, the City of Tukwila's proportionate share of the collective net pension liabilities was as follows:
Proportionate Share
6/30/22
Proportionate Share
6/30/23
Change in Proportion
PERS 1
0.109635%
0.105185%
-0.004450%
PERS 2/3
0.141085%
0.133502%
-0.007583%
PSERS 2
0.035312%
0.039451%
0.004139%
LEOFF 1
0.082276%
0.082520%
0.000244%
LEOFF 2
0.424099%
0.325346%
-0.098753%
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30, 2023 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 NonemployerAllocations for all plans except LEOFF 1.
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1 from
1971 through 2000 and the retirement benefit payments in fiscal year 2023. Historical data was obtained from a
2011 study by the Office of the State Actuary (OSA). 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.
80
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
In fiscal year 2023, the state of Washington contributed 39% of LEOFF 2 employer contributions pursuant to RCW
41.26.725 and all other employers contributed the remaining 61 % of employer contributions.
Pension Expense
For the year ended December 31, 2023, the City of Tukwila recognized pension expense as follows:
Pension Expense
PERS 1
(169,835)
PERS 2/3
(760,696)
PSERS 2
9,623
LEOFF 1
(221,329)
LEOFF 2
331,286
Firemen's Pension
(119,316)
Total
(930,267)
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2023, 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
Deferred
Inflows
Differences between expected and actual
experience
0
0
Net difference between projected and actual
investment earnings on pension plan investments
0
(270,854)
Changes of assumptions
0
0
Changes in proportion and differences between
contributions and proportionate share of
contributions
Contributions subsequent to the measurement
date
304,266
TOTAL
304,266
(270,854)
81
CITY OF TUKWILA: 2023 ACFR
NOTES TO THE FINANCIAL STATEMENTS
PERS 2/3
Deferred
Outflows
Deferred
Inflows
Differences between expected and actual
experience
I 1,114,604
(61,137)
Net difference between projected and actual
investment earnings on pension plan
investments
0
(2,062,114)
Changes of assumptions
2,297,261
(500,712)
Changes in proportion and differences
between contributions and proportionate
share of contributions
215,770
(393,495)
Contributions subsequent to the measurement
date
641,018
_ _
TOTAL
4,268,653
(3,017,458)
PSERS 2
Deferred
Outflows
Deferred
Inflows
Differences between expected and actual
experience
13,090
(10,765)
Net difference between projected and actual
investment earnings on pension plan
investments
0
(11,258)
Changes of assumptions
18,716
(7,280)
Changes in proportion and differences
between contributions and proportionate
share of contributions
815
(10,706)
Contributions subsequent to the
measurement date
10,452
TOTAL
43,073
(40,008)
82
CITY OF TUKWILA: 2023 ACFR
NOTES TO THE FINANCIAL STATEMENTS
LEOFF 1
Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and
actual experience
0
0
Net difference between projected and
actual investment earnings on pension
plan investments
0
(162,405)
Changes of assumptions
0
0
Changes in proportion and differences
between contributions and
proportionate share of contributions
Contributions subsequent to the
measurement date
TOTAL
0
(162,405)
LEOFF 2
Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience
3,187,608
(64,203)
Net difference between projected and
actual investment earnings on pension
plan investments
0
(1,651,255)
_
Changes of assumptions
1,993,437
(641,016)
Changes in proportion and differences
between contributions and proportionate
share of contributions
3,359,836
(95,065)
Contributions subsequent to the
measurement date
268,120
TOTAL
8,809,002
(2,451,539)
Deferred outflows of resources related to pensions resulting from the City's contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December 31,
2023. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
For Year Ended
December 31
PERS 1
PERS 2/3
PSERS 2
LEOFF 1
LEOFF 2
2024
(184,277)
(1,072,946)
(7,969)
(111,351)
(238,881)
2025
(231,751)
(1,254,862)
(9,643)
(139,731)
(505,537)
2026
142,894
1,653,920
7,218
86,680
1,844,180
2027
2,281
599,707
149
1,996
929,117
2028
-
626,939
253
-
957,262
Thereafter
-
57,419
2,605
-
3,103,201
Total
(270,854)
610,177
(7,387)
(162,405)
6,089,342
83
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
Firemen's Pension System
Plan Description
Plan Administration: The Firefighters' Pension Fund (FPF) 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 firefighter's 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 Firefighter's 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, 2021 (the census date), FPF membership consisted of the following:
Employees Covered by Benefit Terms
At December 31, 2021 (the census date), the benefit terms covered the following employees:
Type of Membership Total
Inactive employees, spouses, or beneficiaries currently receiving benefit payments 7
Inactive employees entitled to but not yet receiving benefit payments: 0
Active employees 0
Total 7
Benefits Provided
All benefit terms are in statutes RCW 41.16, 41.18, and 41.26. The FPF provides retirement, disability, and death
benefits. Each firefighter in service on March 1, 1970 receives the greater of the benefit payable under the
Washington Law Enforcement Officers' and Firefighters' Retirement System and the benefits available under the
provisions of prior law. Where benefits under the old law exceed those under the new law for any firefighter, the
excess benefits are paid from the FPF of the city employing the member on March 1, 1970.
All members are retired and drawing benefits. Benefit terms provide for cost -of -living adjustments to each member's
retirement benefit. There are two types of increases: escalation by salary in proportion to the current salary of the
rank from which the firefighter retired, or an increase proportionate to the increase in the Seattle area CPI, with the
change computed annually. Regardless of the increase (or decrease) in the CPI, the benefits are increased at least
2% each year. The former applies to firefighters who retired from service after 1969, their survivors, and to
firefighters who retired for duty disability (but not their survivors) after 1961. The latter applies to all other types of
monthly benefits.
Contributions
The City makes contributions based on an actuarially determined rate. 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
requires that each municipality levies up to $0.45 (only $0.225 of which can be in excess of the property tax limit
84
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
pursuant to RCW 84.52.043) per $1,000 of assessed valuation, based on reports by a qualified actuary, to maintain
the fund. Reporting period contributions were $74,397.
Net Pension Liability
The City's total pension liability was valued as of December 31, 2021 and was used to calculate the net pension
liability. The components of the City's net pension liability at December 31, 2022 are as follows:
Total pension liability $ 666,811
Less: Plan fiduciary net position (1,627,552)
City's net pension liability $ (960,741)
Plan fiduciary net position as a
percentage of the total pension liability 244.08%
Deferred Outflows of Resources and Deferred Inflows of Resources
For the report year ended December 31, 2023, the City recognized a pension expense credit of $(119,316). The
City 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
Net difference between projected and actual investment
earnings on pension plan investments
0
(7,102)
Contributions subsequent to the measurement date
86,708
0
Total
86,708
(7,102)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in the pension expense as follows:
Year ended December 31:
Amount
2024
$ 4,646
2025
761
2026
(1,141)
2027
(11, 368)
2028
0
Remaining
0
TOTAL
$ (7,102)
Actuarial Assumptions
The total pension liability in the December 31, 2022 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Measurment Date:
Discount Rate
Investment Rate of Return
Inflation
Salary Increases
Mortality Rates
December 31, 2021 December 31, 2022
1.84%
1.84%
2.75%
3.25%
4.05%
4.05%
2.75%
3.25%
Mortality Rates were based on tables from the Society of Actuaries.
85
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
Experience studies come from the State of Washington 2021 Actuarial Valuation.
There were no ad hoc postemployment benefit changes (including ad hoc COLAs) to the plan.
There were no changes between the measurement date and the report date that are expected to have a
significant effect on the net pension liability.
Discount Rate
GASB 68 allows the use of a discount rate that is up to the expected long-term rate of return on the assets in the
Trust set aside to pay benefits, if the plan sponsor makes regular contributions to the Trust such that the assets
are not depleted at any point in the future. If the Plans' actuary determines that contributions are not sufficient to
keep the Trust funded, a blend of the long-term rate of return and the yield or index rate for 20-year, tax-exempt
municipal bonds will be used for the periods when the Trust funds are not sufficient to cover benefit payments.
Based on this requirement, and with the approval of the plan sponsor, the discount rateused to measure the total
pension liability is 4.05%.
Long -Term Expected Real Rate of Return
The long-term expected real rate of return is the same as the discount rate.
Current Pension Liability $ 51,887
Non -Current Pension Liability 614,924
Total Pension Liability $ 666,811
Schedule of Changes in the City's Net Pension Liability and Related Ratios
Balance as of report date December 31, 2022
Changes for the year:
Service cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Contributions
Employer - City's contribution
Employee contributions
Net investment income
Benefit payments
Administrative Expenses
Other miscellanious income / (expense)
Net changes
Balance as of report date December 31, 2023
Increase / (Decreas
Total Pension Plan Fiduciary
Liability Net Position
(a) (b)
$ 829,479 $ 1,531,223
14,697
10,729
(126, 650)
(61,444)
74,397
85,126
(61,444)
(1,750) 1,750
e)
Net Pension
Liability
(c) _ (a) - (b)
$ (701,744)
14,697
10,729
(126, 650)
(74,397)
(85,126)
(162,668) 96,329 (258,997)
$ 666,811 $ 1,627,552 $ (960,741)
86
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
Sensitivity of Liabilities to Changes in the Discount Rate
Sensitivity of the total and net pension liability to changes in the discount rate. The total and net pension liability of
the City, as well as what the City's total and net pension liability would be if they were calculated using a discount
rate that is one percentage point lower (3.05%) or one percentage point higher (5.05%) follows:
1% Decrease
3.05%
Current Rate
4.05%
1% Increase
5.05%
Total pension liability (Asset) $ 719,724 $ 666,811 $ 620,012
Increase / (decrease) 52,913 (46,799)
% Change 7.94% -7.02%
Net pension liability (Asset) $ (907,828) $ (960,741) $ (1,007,540)
Increase / (decrease) 52,913 (46,799)
% Change -5.51% 4.87%
Basis of Valuation
A general summary of the substantive plan used as the basis of the valuation follows.
Retiree Pension Benefit
General
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 firefighters benefit. (If spouse — same, plus
additional 5% of salary per child. If no spouse — 30% of salary for first child, 10%
for each additional child. Maximum of 60% of salary).
Duty Disability Retirement Benefit
Member
Eligibility: disabled after six-month waiting period.
Amount of benefit: determined the same as Service Retirement Benefit.
Recovery: restoration to service.
Survivor
See Survivor's Benefit section under Service Retirement.
Non Duty Disability Retirement Benefit
Member
Eligibility: disabled after 90-day waiting period.
Amount of benefit: 50% of salary, or service retirement benefit, if greater.
Recovery: see Duty Disability Retirement.
Limitations: no benefits payable if firefighter employed elsewhere when disabled.
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.
87
CITY OF TUKWILA: 2023 ACFR
NOTES TO THE FINANCIAL STATEMENTS
Retiree Pension Benefit (Continued)
Death Benefit
Duty
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
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
Commencement
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 firefighter's deferred benefit to spouse or child.
Postretirement Increase
Benefits Payable
Annual increase proportionate to the increase in the Seattle -area CPI. Minimum
increase at least 2% each year.
Benefits Payable Under
LEOFF
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.
Participant Summary
December 31, 2021 - Age and service determined as of the census date.
LEOFF Plan 1 (Firemen's Pension) Inactive Participants
Service
Disabled
Surviving
Age
Retirees
Retirees
Spouses
Total
<70
0
0
0
0
70-74
0
0
0
0
75-79
1
1
1
3
80-84
1
1
0
2
85-89
0
1
1
2
90+
0
0
0
0
Total
2
3
2
7
Average Inactive Participant Age: 80.1
88
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
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
Valuation Date December 31, 2021
Measurement Date December 31, 2022
Report Date December 31, 2023
Discount Rate The discount rate selected is 1.84%. Since the assets of the
plan are invested entirely in short duration fixed income
investments, the City has decided to use the same discount rate
that is used for its unfunded OPEB valuation, which is the 20-
year tax-exempt municipal bond yield.
Healthy Mortality RP-2014 mortality table (adjusted to 2006), total dataset, fully
generational with mortaility improvement scale MP-2021.
Termination Rates n/a
Disability n/a
Retirement n/a
Cost of Living 2.75%, based on State of Washington 2021 actuarial valuation
report. Used to increase state paid benefits annually.
Salary Increases Salary Increases 3.50%, based on State of Washington 2021
actuarial valuation report. Used to increase FPF benefits
NOTE 10 — 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 2023:
Aggregate OPEB Amounts
OPEB Liabilities
$
5,058,252
OPEB Assets
-
Deferred outflows of resources
449,737
Deferrred inflows of resources
-
OPEB expenses/expenditures
(956,367)
Plan Description
The City of Tukwila's LEOFF Plan 1 (the Plan) is a single -employer defined -benefit post -employment 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
89
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
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 I OPEB plans are closed to new entrants.
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 Healthcare Management Administrators (HMA) 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, 2021 (the census date), the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits
30
Inactive employees entitled to but not yet receiving benefits
0
Active employees
0
Total
30
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.
Total OPEB Liability
The City's total OPEB liability was valued as of December 31, 2021, and the total OPEB liability used to calculate
the net OPEB liability was determined by an actuarial valuation as of December 31, 2022.
Actuarial Assumptions
The total OPEB liability in the December 31, 2022 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
Measurement Date: December 31, 2021 December 31, 2022
Discount Rate 1.84% 4.05%
Inflation 2.75% 2.75%
Healthcare Cost Trend Rates 4.80% 4.80%
Salary Increases n/a n/a
Mortality Rates Based on SOA Tables
• Projections of the sharing benefit -related costs are based on an established pattern of practice.
• Experience studies come from the State of Washington 2021 study.
• Inactive employees (retirees) pay 0% of the cost of benefits.
• There were no ad hoc postemployment benefit changes (including ad hoc COLAs) to the plan.
• There were no changes between the measurement date and the report date that are expected to have a
significant effect on the net OPEB liability.
The discount rate used to measure the total OPEB liability is 4.05%. 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.
90
CITY OF TUKWILA: 2023 ACFR
NOTES TO THE FINANCIAL STATEMENTS
Sensitivity of the total OPEB liability to changes in the discount rate. The total OPEB liability of the City, as well as
that the City's total OPEB liability would be if it were calculated using a discount rate that is one percentage point
lower (3.05%) or one percentage point higher (5.05%) as follows:
1% Decrease (3.05%)
Current Discount Rate
(4.05%)
1% Increase (5.05%)
Total OPEB Liability (Asset)
$
5,479,086
$
5,058,252
$
4,689,318
Increase (Decrease)
420,834
(368,934)
% Change
8.3%
-7.3%
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The healthcare trend for this
valuation started at 4.80% and decreased to 3.94% over 52 years. The total OPEB liability of the City, as well as
what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are one
percentage point lower (3.80%) or one percentage point higher (5.80%) than current healthcare cost trend rates as
follows:
1% Decrease (3.80%)
Current Healthcare Cost
Trend Rate (4.80%)
1% Increase (5.80%)
Total OPEB Liability (Asset)
$
4,665,571
$ 5,058,252
$
5,498,317
Increase (Decrease)
(392,681)
440,065
% Change
-7.8%
8.7%
Changes in the Total OPEB Liability — City of Tukwila LEOFF Plan 1
Balance as of December 31, 2022
Changes:
Service Cost
Interest 114,013 - 114,013
Changes of Benefit Terms - -
Difference Between Expected
and Actual Experience (56,710) - (56,710)
Changes of Assumptions (1,013,670) - (1,013,670)
Contributions
Employer - City's Contribution -
Employer - Implicit Subsidy -
Employee Net Investment Income -
Benefit Payments (363,452) - (363,452)
Implicit Rate Subsidy Fulfilled - -
Administrative Expenses Net Changes (1,319,819) - (1,319,819)
Balance as of December 31, 2023 $ 5,058,252 $ $ 5,058,252
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
$ 6,378,071 $ - $ 6,378,071
For the year ended December 31, 2023, the City recognized an OPEB expense of $(956,367).
91
CITY OF TUKWILA: 2023 ACFR
NOTES TO THE FINANCIAL STATEMENTS
At December 31, 2023, 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
0
0
Changes of assumptions
0
0
Contributions subsequent to the
measurement date
449,737
0
Total
449,737
0
Amounts reported as deferred outflows of resources
recognized in OPEB expense as follows:
Report Year Ending
and deferred inflows of resources related to OPEB will be
December 31: Amount
2024 $
2025
2026
2027
2028
Remaining
Current OPEB Liability
Non -Current OPEB Liability
Total OPEB Liability
Amount
$ 416,612
4,641,640
$ 5,058,252
Expected Average Remaining Service Lives (EARSL)
The effects on the total OPEB liability of (1) changes of economic and demographic assumptions or of other inputs
and (2) differences between expected and actual experience are required to be included in OPEB expense in a
systematic and rational manner over a closed period equal to the average of the expected remaining service lives
of all employees that are provided with benefits through the OPEB plan (active employees and inactive employees),
beginning in the current period. The expected average remaining service lives (EARSL) for the current period
follows. Note, however, that for calculation purposes, 1.0 is used when calculating amortizations if the EARSL is
less than 1 year.
NOTE 11 — 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:
• 2015 LTGO bonds were issued to pay for improvements to Interurban Avenue South and reconstruct or
retrofit Boeing Access Road Bridge. The City issued $5.825 million of general obligation bonds with an
interest rate of 2.25%-3.0% and a final maturity of December 2035.
• 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
92
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
equipment replacement for 20 years. The City issued $32.99 million of general obligation bonds with an
interest rate of 4.5%-5.0% and a final maturity of December 2036.
• 2017 LTGO bonds were issued to fund residential street improvements including adding sidewalks and
undergrounding utilities on 42"d and 53rd Avenues. The City issued $8.18 million of general obligation bonds
with an interest rate of 3.0%-3.5% and a final maturity of December 2037.
• 2018 LTGO bonds were issued to fund the purchase of land in order to consolidate the Public Works function
at one location. The City issued $18.365 million of general obligation bonds with an interest rate of 4.0%-
5.0% and a final maturity of December 2038.
• 2019 LTGO bonds were issued to fund the purchase of land and improvements in order to consolidate the
Public Works function at one location and to provide additional funding for construction of the new Justice
Center and fire stations as part of the Public Safety Plan. The City issued $22.83 million of general obligation
bonds with an interest rate of 3.0%-5.0% and a final maturity of December 2039.
• 2019 UTGO bonds were issued to fund construction of the new Justice Center and fire stations as part of the
Public Safety Plan. The City issued the remaining $37.77 million of the 2016 voter approved general
obligation bonds with an interest rate of 3.0%-5.0% and a final maturity of December 2038.
Direct borrowings and direct placements have terms negotiated directly with the investor or lender and are not
offered for public sale. The following General Obligation bonds are direct borrowings or direct placements:
• 2020 LTGO bonds were issued to refund a portion of the bonds issued in 2010 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. The City issued $1,995,000 of general obligation refunding bonds
with an interest rate of 1.29% and a final maturity date of December 2024.
• 2021A LTGO bonds were issued to fund a portion of the Public Works Shops Phase 1 project. The City
issued $2,867,300 of general obligation bonds with an interest rate of 1.7% and a final maturity of December
2031
• 2021B LTGO bonds were issued to refund the outstanding 2014 LTGO bonds that were issued to fund the
acquisition and capital costs of redevelopment activities within the City's Tukwila International Boulevard (TIB)
urban renewal area. The City issued $2,780,900 of general obligation refunding bonds with an interest rate
of 2.7% and a final maturity date of December 2034.
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. The City
issued $6,687,500 of special assessment bonds with an interest rate of 3.15%-5.375% and a final maturity of
January 2031.
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 a direct placement.
93
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
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.
These revenue bonds have an interest rate of 2.34% and a final maturity of December 2026.
State of Washington Public Works Trust Fund Loans are 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:
• 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.
The schedules that follow summarize the long-term debt transactions of the City for the year ended December 31,
2023.
CHANGES IN LONG-TERM LIABILITIES SUMMARY - GOVERNMENTAL ACTIVITIES
DUE TO OTHER
GENERAL PRIVATE SPECIAL COMPENSATED OTHER POST EMPLOY- LEASE SBITA NET PENSION
OBLIGATION PLACEMENT ASSESSMENT ABSENCES GOVERNMENTS MENT BENEFITS LIABILITY LIABILITY LIABILITY TOTAL
Outstanding 01/01/2023 $ 113,895,000 $ 6,746,000 $ 2,685,000 $ 4,129,105 $ 4,383,790 $ 6,378,071 $ 770,653 $ - $ 2,480,271 $ 141,467,890
Added 3,117,281 1,887,709 2,381,285 7,386,275
Retired / redeemed (4,300,000) (1,494,000) (400,000) (4,003,625) (191,836) (1,319,819) (456,876) (577,001) (529,864) (13,273,020)
Outstanding 12/31/2023 $ 109,595,000 $ 5,252,000 $ 2,285,000 $ 3,242,762 $ 4,191,954 $ 5,058,252 $ 2,201,486 $ 1,804,284 $ 1,950,407 $ 135,581,145
8,925,467
$ 144,506,612
Add Premiums, Subtract Discounts
Total Long -Term Liabilities
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, lease liabilities and pensions.
Governmental Activities
Year Ended
General Obligation
General Obligation
Due to Other Governments
Special Assessments
December
Bonds
Bonds - Private Placement
31
Principal Interest
Principal Interest
Principal Interest
Principal Interest
Total
2024
$ 4,825,000 $ 4,158,100
$ 977,000 $ 111,295
$ 199,548 $ 177,366
$ 390,000 $ 122,705
$ 10,961,014
2025
5,175,000 3,929,650
477,700 94,853
207,742 169,384
445,000 101,762
10,601,091
2026
5,540,000 3,684,100
486,800 84,747
217,864 158,997
445,000 77,865
10,695,373
2027
5,930,000 3,422,775
496,900 74,444
228,950 148,104
445,000 53,969
10,800,141
2028
6,340,000 3,140,175
507,100 63,915
240,036 136,657
560,000 30,072
11,017,955
2029-2033
37,655,000 11,800,075
2,059,600 159,006
1,391,052 493,598
- -
53,558,331
2034-2038
42,490,000 4,392,250
246,900 6,666
1,706,762 177,401
- -
49,019,979
2039-2043
1,640,000 49,200
- -
- -
- -
1,689,200
Totals
$109,595,000 $ 34,576,325
$ 5,252,000 $ 594,926
$ 4,191,954 $ 1,461,507
$ 2,285,000 $ 386,372
$158,343,083
94
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
CHANGES IN LONG-TERM LIABILITIES - GOVERNMENTAL ACTIVITIES
ITEM
Interest OUTSTANDING OUTSTANDING Due Within
Rates Maturity Authorized 12/31/2022 ISSUED REDEEMED 12/31/2023 One Year
GOVERNMENTAL ACTIVITIES:
Limited General Obligation (LTGO) Bonds Payable:
2015 LTGO-Interurban, BAR 2.25-3.00 12/01/35 $ 5,825,000 $ 4,155,000 $
2017 LTGO-42nd & 53rd Streets 3.00-3.50 12/01/37 8,180,000 6,565,000
2018 LTGO - Public Works Shops 4.00-5.00 12/01/38 18,365,000 17,635,000
2019 LTGO - Public Safety Plan 3.00-5.00 12/01/39 22,830,000 21,945,000
Total LTGO Bonds Payable 55,200,000 50,300,000
Unlimited General Obligation (UTGO) Bonds Payable:
2016 UTGO - Public Safety 4.50-5.00 12/01/35 77,385,000
2019 UTGO - Public Safety 3.00-5.00 12/01/38 37,770,000
Total UTGO Bonds Payable 115,155,000
Private Placement Bonds:
2020 Refunding Streets (2010G0) 1.29 12/01/24 1,995,000
2021 Refunding (Ref 11/14G0 & PWS) 1.15-2.70 12/01/34 6,720,500
Total Private Placement Bonds Payable 11,991,500
Issuance premiums
Net Bonds Payable
Due to Other Governments
2019 SCORE Refunding
Total Due Other Governments
Special Assessment Debt
Klickitat Urban Access Project
27,550,000
36,045,000
63,595,000
1,010,000
5,736,000
6,746,000
9,544,638
182, 346, 500 130,185, 638
$ 270,000 $ 3,885,000 $ 275,000
355,000 6,210,000 365,000
- 765,000 16,870,000 805,000
- 930,000 21,015,000 975,000
- 2,320,000 47,980,000 2,420,000
1,340,000
640,000
1,980,000
500,000
994,000
1,494,000
26,210,000
35,405,000
61,615,000
510,000
4,742,000
5,252,000
619,171 8,925,467
6,413,171 123,772,467
1,490, 000
915,000
2,405,000
510,000
467,000
977,000
619,171
6,421,171
4.00-5.00 01/01/39 4,921,702 4,383,790 - 191,836 4,191,954 199,548
4,921,702 4,383,790 - 191,836 4,191,954 199,548
3.150-5.375 01/15/29 6,687,500 2,685,000 400,000 2,285,000 390,000
Total Special Assessment Debt
Other Post -Employment Benefits Liability
Net Pension Liability
Lease Liability
Subscription Based Information Technology Agreements Liability
Compensated Absences
6,687,500 2,685,000 400,000 2,285,000 390,000
6,378,071
2,480,271
770,653
4,129,105
1,887,709
2,381,285
3,117,281
1,319,819
529,864
456,876
577,001
4,003,625
5,058,252 416,612
1,950,407
2,201,486 499,918
1,804,284 504,907
3,242,762 385,248
Total Governmental Funds $ 193,955,702 $ 151,012,528 $ 7,386,275 $ 13,892,191 $ 144,506,612 $ 8,817,404
All governmental activities debt is liquidated by the general fund except for the special assessment debt and the
2019 SCORE intergovernmental debt. The special assessment debt is liquidated from assessments collected
annually from property owners within boundaries of Local Improvement District #33. The 2019 SCORE debt was
paid by SCORE from user fees.
CHANGES IN LONG-TERM LIABILITIES SUMMARY - BUSINESS -TYPE ACTIVITIES
DIRECT PLACEMENT PUBLIC WORKS
REVENUE TRUST FUND COMPENSATED NET PENSION
BONDS LOANS ABSENCES LIABILITY
TOTAL
Outstanding 01/01/2023 $ 677,704 $ 1,476,234 $ 402,823 $ 572,370 $ 3,129,131
Added - - 437,435 - 437,435
Retired / redeemed (162,560) (573,417) (366,436) (121,685) (1,224,099)
Outstanding 12/31/2023 $ 515,144 $ 902,817 $ 473,821 $ 450,685 $ 2,342,467
95
CITY OF TUKWILA: 2023 ACFR
NOTES TO THE FINANCIAL STATEMENTS
Debt Service to Maturity
The following schedules show the debt service requirements to maturity for the City's long-term debt, excluding
compensated absences and net pension liability.
Business -Type Activities
Year Ended
Public Works Trust Fund
December
Direct Placement Revenue Bonds
Loans
31
Principal Interest
Principal Interest
Total
2024
$ 167,363 $ 12,054
$ 573,417 $ 4,514
$ 757,349
2025
171,830 8,138
41,175 1,647
222,790
2026
175,951 4,117
41,175 1,441
222,684
2027
- -
41,175 1,235
42,410
2028
- -
41,175 1,029
42,204
2029-2033
- -
164,700 2,059
166,759
Totals
$ 515,144 $ 24,310
$ 902,817 $ 11,926
$ 1,454,196
CHANGES IN LONG-TERM LIABILITIES - BUSINESS -TYPE ACTIVITIES
ITEM
Interest
OUTSTANDING
OUTSTANDING Due Within
Rates Maturity Authorized 12/31/2022 ISSUED REDEEMED 12/31/2023 One Year
BUSINESS -TYPE ACTIVITIES:
Direct Placement Revenue Bonds
2015 Water/Sewer/SWM Refunding
Total Bonds Payable
2.34 12/01/26 $ 1,742,527 $ 677,704 $
1,742,527 677,704
$ 162,560 $ 515,144 $ 167,363
162,560 515,144 167,363
Public Works Trust Fund Loans:
2003 Loan-Water/Sewer 0.50 06/01/21 273,870
2003 Loan -Surface Water 0.50 06/01/21 219,725
2004 Loan-Water/Sewer 0.50-2.00 06/01/24 5,016,000 545,773 272,886 272,886 272,886
2004 Loan -Surface Water 0.50-2.00 06/01/24 684,000 74,424 37,212 37,212 37,212
2004 Loan -Surface Water 1.00 06/01/24 4,196,056 444,288 222,144 222,144 222,144
2014 Loan -Sewer 0.5 06/01/32 750,000 411,750 41,175 370,575 41,175
Total Public Works Trust Fund Loans
11,139,651 1,476,234 573,417 902,817 573,417
Net Pension Liability 572,370
Compensated Absences
121,685 450,685
402,823 437,435 366,436 473,821 78,394
Total Business -Type Activities $ 12,882,178 $ 3,129,131 $ 437,435 $ 1,224,099 $ 2,342,467 $ 819,174
TOTAL ALL FUNDS $ 206,837,880 $ 154,141,659 $ 7,823,710 $ 15,116,290 $ 146,849,079 $ 9,636,578
96
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
LONG-TERM LIABILITIES RECONCILIATION
Governmental Business -Type Balance
Activities Activities 12/31/2023
General Obligation Bonds
General Obligation Bonds
- Private Placement
Special assessment bonds
Revenue Bonds - Direct Placement
Public Works Trust Fund loans
Due to Other Governments
Employee leave benefits
Net Premiums/Discounts
Other Post -Employment Benefits
Lease Liability
Subscription based IT agreements
Net Pension Liability
Total long-term debt
$ 109, 595, 000 $ $109, 595, 000
5,252,000 5,252,000
2,285,000 2,285,000
515,144 515,144
902,817 902,817
4,191, 954 4,191, 954
3,242,762 473,821 3,716,583
8,925,467 8,925,467
5,058,252 5,058,252
2,201,486 2,201,486
1,804,284 1,804,284
1,950,407 450,685 2,401, 092
$ 144,506,612 $ 2,342,467 $146,849,079
Debt Limit Capacities
State law provides that debt cannot be incurred in excess of the following percentages of the value of the taxable
property of the City: 1.5% without a vote of the people; 2.5% with a vote of the people; 5.0% with a vote of the
people, provided the indebtedness in excess of 2.5% is for utilities; 7.5% with a vote of the people, provided the
indebtedness in excess of 5.0% is for parks or open space development.
At December 31, 2023, the debt limits for the City were as follows:
Item
Legal Limit
Outstanding Net Indebtedness
Margin Available
Without a Vote
1.5%
$142,448,039
60, 369, 244
$ 82,078,795
With a Vote of the People
2.5% 5.0%
$237,413,398 $ 474,826,796
121,984,244 121,984,244
$115,429,154 $ 352,842,552
7.5%
$712,240,194
121,984,244
$590,255,950
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, 2023,
$660,000 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.
97
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
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 $515,266 to the guaranty fund. The tenth of 15
annual installments for the assessments was due by October 16, 2023.
As of December 31, 2023, all LID Special Assessments were current, nothing was delinquent. The City has sufficient
funds in the LID No. 33 funds to meet debt service requirements in 2023.
Estimated Arbitrage Rebate
The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt of over $5 million to make payments to
the United States Treasury of investment interest received at yields that exceed the issuer's tax-exempt borrowing
rates. Payments of arbitrage rebate amounts due under these regulations must be made to the U.S. Treasury every
five years. The City's estimated rebatable arbitrage amount as of December 31, 2023 is $0 for its tax-exempt bond
issues subject to the Tax Reform Act.
Unused Lines of Credit
As of December 31, 2023, the City had no open lines of credit.
Terms Specified in Debt Agreements
The City's bonds are not subject to acceleration upon the event of default. The City is liable for principal and interest
payments only as they become due. There are no termination events or events of default specified in the debt
agreements that would have financial consequences.
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CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 12 - COMMITMENTS
Construction Commitments. As of December 31, 2023, contractual obligations to contractors for construction
projects total $8,341,606.
Remaining
Governmental Activities Spent to Date Commitment
S 152nd Safe Routes to School $ 316,485 $ 121,963
Public Works Shops Phase 2 1,527,640 3,896,048
Green River Trail Improvements 113,796 174,591
42nd Ave S Bridge Replacement 1,653,305 876,067
Allentown Truck Reroute 265,740 620,046
TCC HVAC Replacement 35,000
Overlay 1,226,670 315,368
S 119th St Bridge Safety Improvements 166,008 60,450
West Valley Highway 4,959,691 135,759
Total Governmental Activities $ 10,229,334 $ 6,235,292
Business -Type Activities Projects
S 152nd Street Waterline Replacement
Water Reservoir and Pump Station
GIS Inventory
S 149th St & S 150th St Watermain Replacement
Andover Park W and 58th Sewer Repair
Sewer Lift Station No. 5 Rebuild
Small Drainage
Storm Water Quality Retrofit Program
Green the Green
Gilliam Creek Fish Barrier Removal
Surface Water Comprehensive Plan
S 131st Place Drainage Improvements
Chinook Wind Public Access
Total Business -Type Activities
Remaining
Spent to Date Commitment
$ 1,479,838 $ 205,923
46,264 135,876
163,022 36,948
119,760 228,575
351,546 847,556
198,333 48,443
12,365 87,420
74,479 132,799
59,988 17,427
295,571 39,500
336,514 66,158
178,346 214,508
119,279 45,181
$ 3,435,306 $ 2,106,314
Total Construction Commitments $ 13,664,641 $ 8,341,606
99
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 13 — POTENTIAL POLLUTION REMEDIATION AND OTHER LIABILITIES
There are several lawsuits in which the City is involved. The City Attorney estimates that the potential claims against
the City to have no material financial impact.
The City of Tukwila is expected to share in potential liability under the Comprehensive Environmental Response,
Compensation and Liability Act ("CERCLA") for sediment contamination within the Lower Duwamish Waterway
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 by the major liable parties remains on-
going. Once that process is completed and communicated to the City, which could occur in mid-2024, the City will
be in a better position to estimate its potential liability for cleanup costs within the Lower Duwamish Waterway
Superfund site.
NOTE 14 — RISK MANAGEMENT
The City of Tukwila is a member of the Washington Cities Insurance Authority (WCIA). Utilizing Chapter 48.62 RCW
(self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine cities originally formed WCIA
on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism for jointly purchasing
insurance, jointly self -insuring, and / or jointly contracting for risk management services. WCIA has a total of 169
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, prior wrongful acts, 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.
All Members are provided a separate cyber risk policy and premises pollution liability coverage group purchased by
WCIA. The cyber risk policy provides coverage and separate limits for security & privacy, event management, and
cyber extortion, with limits up to $1 million and subject to member deductibles, sublimits, and a $5 million pool
aggregate. Premises pollution liability provides Members with a $2 million incident limit and $10 million pool
aggregate subject to a $100,000 per incident Member deductible.
Insurance for property, automobile physical damage, fidelity, inland marine, and equipment breakdown coverage
are purchased on a group basis. Various deductibles apply by type of coverage. Property coverage is self -funded
from the members' deductible to $1,000,000, for all perils other than flood and earthquake, and insured above that
to $400 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
100
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
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.
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
$34,230 in unemployment in 2023. 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 $210,000. 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 by blending two actuarial methods. The first method is the claim -ladder development
method. This method calculates the IBNR by estimating monthly incurred claims based on the historical pattern of
claim lag experienced by the City and the claim lag triangles of the City. The second method is the Claims Per
Member Per Month (PMPM) Trended Method. This calculates an average PMPM claims cost for claims not yet paid
based on patterns of claims costs that have been recently incurred. Knowledge of external forces that may affect
future health care trends also impact the result of the calculation, along with general actuarial judgment.
The following table reflects changes in the balances of claims liabilities for 2023 and 2022.
SUMMARY OF HEALTH CARE CLAIM LIABILITIES
Active Employees Retired Employees LEOFF I
2023 2022 2023 2022
Claim Liabilities at Beginning of Year
Claim expenses:
Current year and changes in estimates
Claim payments and expenses
Claim Liabilities at End of Year
$ 1,505,500 $ 1,500,000 $ 69,500 $ 82,500
5,694,850 6,027,132 474,653 398,016
(5,828,600) (6,021,632) (474,903) (411,016)
$ 1,371,750 $ 1,505,500 $ 69,250 $ 69,500
101
CITY OF TUKWILA: 2023 ACFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 15 — SUBSEQUENT EVENTS
On January 1, 2023, the City entered into a contract for services with the Puget Sound Regional Fire Authority
(RFA) to provide fire, emergency medical services, and prevention & education services for the City of Tukwila. On
January 1, 2023, employees of the fire department were terminated from employment with the City and were hired
by the RFA. Additionally, all equipment and apparatus was transferred to the RFA as part of the contract. This
resulted in a disposal of $3.2 million, which is reported as a special item in the financial statements. In August 2023
the residents of the City of Tukwila voted to fully annex Tukwila's fire department into the Puget Sound Regional
Fire Authority.
102
CITY OF TUKWILA: 2023 ACFR REQUIRED SUPPLEMENTAL INFORMATION
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes $ 51,415,680 $ 52,415,680 $ 52,387,938 $ (27,742)
Licenses and permits 5,518,660 5,518,660 6,321,147 802,487
Intergovernmental 6,314,758 7,759,973 7,620,041 (139,932)
Charges for services 3,113,058 3,323,058 3,806,905 483,847
Fines and Forfeitures 765,475 765,475 311,630 (453,845)
Investment eamings 131,104 381,104 1,077,390 696,286
Miscellaneous 104,000 221,396 486,216 264,820
Total Revenues 67,362,735 70,385,346 72,011,266 1,625,920
EXPENDITURES:
Current:
General Government 10,537,155 10,724,674 10,280,988 443,687
Public safety 39,146,106 39,896,106 37,773,695 2,122,411
Transportation 5,652,943 5,652,943 4,987,790 665,153
Natural and economic environment 6,272,518 6,377,383 5,783,354 594,028
Culture and recreation 5,199,071 5,414,467 5,184,824 229,643
Debt service:
Principal - 776,163 (776,163)
Interest - 78,855 (78,855)
Capital outlay 420,000 1,227,831 3,654,499 (2,426,668)
Total Expenditures 67,227,793 69,293,404 68,520,169 773,235
Excess of Revenues And Expenditures
134,943 1,091,943
3,491,098 2,399,155
OTHER FINANCING SOURCES (USES):
Lease and subscription financing proceeds - 2,561,209 2,561,209
Transfers in 1,624,147 1,354,147 1,323,249 (30,898)
Transfers out (5,706,078) (5,657,759) (5,375,683) 282,076
Total Other Financing Sources And Uses (4,081,932) (4,303,613) (1,491,225) 2,812,388
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
(3,946,989)
26,127, 290
(3,211,670)
22,991,356
1,999,873
22,991,356
5,211,543
$ 22,180,301 $ 19,779,685 $ 24,991,228 $ 5,211,543
103
CITY OF TUKWILA: 2023 ACFR REQUIRED SUPPLEMENTAL INFORMATION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
The City of Tukwila budgets its funds in accordance with the Revised Code of Washington 35A.33. In compliance
with the code, biennial budgets are adopted for the general fund and special revenue funds. For governmental
funds, there are no substantial differences between the budgetary basis and generally accepted accounting
principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial statements
include budgetary comparisons for biennially budgeted governmental funds only. Budgets established for
proprietary and fiduciary funds are "management budgets" and are not legally required to be reported and, as such,
are not reported in the ACFR.
The biennial appropriated budgets are adopted at the fund level and the budgets constitute the legal authority for
expenditures at that level. Subsidiary revenue and expenditure records are used to compare the budgeted amounts
with actual revenues and expenditures. As a management control device, the subsidiary ledgers monitor
expenditures for individual functions and activities by object class. Any unexpended appropriation balances lapse
at the end of the biennium.
The City of Tukwila's budget procedures are mandated by RCW 35A.33. The steps in the budget process are as
follows:
1) Prior to November 1 on even numbered years, the Mayor submits a proposed budget to the City Council.
This budget is based on priorities established by the Council and estimates provided by the City
departments during the preceding months, and balanced with revenue estimates made by the Mayor.
2) The City Council conducts public hearings on the proposed budget in November and December.
3) The Council makes its adjustments to the proposed budget and adopts by ordinance a final balanced
budget no later than December 31.
4) The final operating budget as adopted is published and distributed within the first month of the following
year. Copies of the budget are made available to the public.
The City Council must approve by ordinance any amendments that increase the total for the fund. Budget
amounts presented in the basic financial statements include both the original amounts and the final amended
budget as approved by the City Council.
Expenditure Categories
General Government
Public Safety
Transportation
Natural and Economic
Environment
Culture and Recreation
Includes administration, finance, municipal court, attorney,
and city clerk activities.
Includes all police and fire activities.
Includes all residential and arterial street maintenance and
construction.
Reflects all planning and building inspection as well as
environmental and community services.
Includes expenditures related to parks and recreational
activities.
The information presented in the following required schedules was determined as part of the actuarial valuations
at the dates indicated.
104
CITY OF TUKWILA: 2023 ACFR
REQUIRED SUPPLEMENTAL INFORMATION
COST SHARING MULTIPLE EMPLOYER DEFINED BENEFIT PENSION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
PERS 1
Fiscal Year Ending
June 30, 2015
June 30, 2016
June 30, 2017
June 30, 2018
June 30, 2019
June 30, 2020
June 30, 2021
June 30, 2022
June 30, 2023
Employer's
proportion of the
net pension liability
(asset)
Employer's proportionate
share of the net pension
liability
0.135736% $
0.131354%
0.127058%
0.122630%
0.121291%
0.113704%
0.104195%
0.109635%
0.105185%
State's proportionate
share of the net
pension liability
(asset) associated
with the employer
7,100,255 $
7,054,328
6,029,001
5,476,697
4,664,070
4,014,365
1,272,465
3,052,641
2,401,092
Total: Proportionate
share of the net
pension liability (asset)
$ 7,100,255
7,054,328
6,029,001
5,476,697
4,664,070
4,014,365
1,272,465
3,052,641
2,401,092
Employer's covered
payroll
$ 15,561,015
15,736,921
16,022,842
16,327,082
16,858,481
17,063,647
15,827,030
17,683,212
18,458,622
Employer's
proportionate
share of the net
pension liability as
a percentage of
covered payroll
45.63%
44.83
37.63%
33.54%
27.67%
23.53%
8.04%
17.26%
13.01%
Plan fiduciary net
position as a
percentage of the
total pension
liability
59.10%
57.03%
61.24%
63.22%
67.12%
68.64%
88.74%
76.56%
80.16%
PERS 2/3
Fiscal Year Ending
June 30, 2015
June 30, 2016
June 30, 2017
June 30, 2018
June 30, 2019
June 30, 2020
June 30, 2021
June 30, 2022
June 30, 2023
Employer's
proportion of the
net pension liability
(asset)
Employer's proportionate
share of the net pension
liability
0.173592% $
0.166622%
0.161787%
0.156335 %
0.154903%
0.146296%
0.132317%
0.141085%
0.133502%
State's proportionate
share of the net
pension liability
(asset) associated
with the employer
6,202,541 $
8,389,286
5,621,325
2,669,281
1,504,635
1,871,042
(13,180,902)
(5,232,534)
(5,471,824)
Total: Proportionate
share of the net
pension liability (asset)
$ 6,202,541
8,389,286
5,621,325
2,669,281
1,504,635
1,871,042
(13,180,902)
(5,232,534)
(5,471,824)
Employer's covered
payroll
$ 15,406,589
15,579,718
15,861,514
16,228,608
16,843,895
17,053,352
15,827,030
17,683,212
18,458,622
Employer's
proportionate
share of the net
pension liability as
a percentage of
covered payroll
40.26%
53.85%
35.44%
16.45%
8.93%
10.97%
-83.28%
-29.59%
-29.64%
Plan fiduciary net
position as a
percentage of the
total pension
liability
89.20%
85.82%
90.97%
95.77%
97.77%
97.22%
120.29%
106.73%
107.02%
PSERS
Fiscal Year Ending
June 30, 2015
June 30, 2016
June 30, 2017
June 30, 2018
June 30, 2019
June 30, 2020
June 30, 2021
June 30, 2022
June 30, 2023
Employer's
proportion of the
net pension liability
(asset)
0.052748%
0.048428%
0.455650%
0.025080%
0.032158%
0.028557%
0.026736%
0.035312%
0.039451 %
Employer's proportionate
share of the net pension
liability
State's proportionate
share of the net
pension liability
(asset) associated
with the employer
9,628 $
20,581
8,928
311
(4,182)
(3,929)
(61,423)
(25,248)
(41,833)
Total: Proportionate
share of the net
pension liability (asset)
Employer's covered
payroll
9,628 $
20,581
8,928
311
(4,182)
(3,929)
(61,423)
(25,248)
(41,833)
154,426
157,203
161,328
98,474
147,556
175,312
181,231
240,700
302,683
Employer's
proportionate
share of the net
pension liability as
a percentage of
covered payroll
6.23%
13.09%
5.53%
0.32%
-2.83%
-2.24%
-33.89%
-10.49%
-13.82%
Plan fiduciary net
position as a
percentage of the
total pension
liability
95.08%
90.41%
96.26%
99.79%
101.85%
101.68%
123.67%
103.17%
107.90%
LEOFF 1
Fiscal Year Ending
June 30, 2015
June 30, 2016
June 30, 2017
June 30, 2018
June 30, 2019
June 30, 2020
June 30, 2021
June 30, 2022
June 30, 2023
Employer's
proportion of the
net pension liability
(asset)
0.077944%
0.077890%
0.082086%
0.083934%
0.082668%
0.081701%
0.083135%
0.082276%
0.082520%
Employer's proportionate
share of the net pension
liability
(939,397)
(802,490)
(1,245,425)
(1,523,823)
(1,634,025)
(1,542,931)
(2,847,841)
(2,360,180)
(2,449,213)
State's proportionate
share of the net
pension liability
(asset) associated
with the employer
Total: Proportionate
share of the net
pension liability (asset)
Employer's covered
payroll
$ - $ (939,397) $
(5,428,021) (6,230,511)
(8,424,025) (9,669,450)
(10,307,102) (11,830,925)
(11,052,506) (12,686,531)
(10,436,345) (11,979,276)
(19,262,726) (22,110,567)
(15,964,199) (18,324,379)
(16,566,419) (19,015,632)
76,144
Employer's
proportionate
share of the net
pension liability as
a percentage of
covered payroll
-1233.71 %
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Plan fiduciary net
position as a
percentage of the
total pension
liability
127.36%
123.74%
135.96%
144.42%
148.78%
146.88%
187.45%
169.62%
175.99%
LEOFF 2
State's proportionate
Employer's share of the net
proportion of the Employer's proportionate pension liability Total: Proportionate
net pension liability share of the net pension (asset) associated share of the net Employer's covered
Fiscal Year Ending (asset) liability with the employer pension liability (asset) payroll
June 30, 2015
June 30, 2016
June 30, 2017
June 30, 2018
June 30, 2019
June 30, 2020
June 30, 2021
June 30, 2022
June 30, 2023
0.519159% $
0.510663%
0.503269%
0.480347%
0.473755%
0.438096%
0.420145%
0.424099%
0.325346%
(5,335,916)
(2,970,169)
(6,983,743)
(9,752,091)
(10,975,449)
(8,936,519)
(24,403,761)
(11,525,730)
(7,803,743)
$ (2,123,832)
(1,936,334)
(4,530,224)
(6,314,295)
(7,106,396)
(5,714,227)
(15,743,090)
(7,466,117)
(4,983,390)
$ (7,459,748)
(4,906,503)
(11,513,967)
(16,066,386)
(18,081,845)
(14,650,746)
(40,146,851)
(18,991,847)
(12,787,133)
$ 15,113,237
15,480,062
15,743,133
15,759,700
16,581,465
16,552,520
16,037,465
16,902,693
13,688,491
Employer's
proportionate
share of the net
pension liability as
a percentage of
covered payroll
-49.36%
-31.70 %
-73.14%
-101.95%
-109.05%
-88.51%
-250.33%
-112.36%
-93.42%
Plan fiduciary net
position as a
percentage of the
total pension
liability
111.67%
106.04%
113.36%
118.50%
119.43%
115.83%
142.00%
116.09%
113.17%
'Until a full 10-year trend is compiled, govemments should present information only for those years of which information is available.
105
CITY OF TUKWILA: 2023 ACFR
REQUIRED SUPPLEMENTAL INFORMATION
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 Covered
deficiency (excess) Payroll
Contributions as a
percentage of covered
payroll
December 31, 2015 $
December 31, 2016
December 31, 2017
December 31, 2018
December 31, 2019
December 31, 2020
December 31, 2021
December 31, 2022
December 31, 2023
686,881
752,418
789,712
846,714
854,217
740,837
705,904
668,862
667,578
(686,881) $
(752,418)
(789,712)
(846,714)
(854,217)
(740,837)
(705,904)
(668,862)
(667,578)
$ 15,654,255
15,777,881
16,153,755
16,742,206
17,030,131
16,004,087
16,849,796
18,311,585
18,524,206
4.39%
4.77%
4.89%
5.06%
5.02%
4.63%
4.19%
3.65%
3.60%
PERS 2/3
Fiscal Year Ending
December 31, 2015
December 31, 2016
December 31, 2017
December 31, 2018
December 31, 2019
December 31, 2020
December 31, 2021
December 31, 2022
December 31, 2023
Statutorily or
contractually required
contributions
$ 873,248
972,612
1,090,715
1,245,790
1,310,892
1,267,208
1,160,770
1,115,620
1,231, 334
Less: Contributions in
relation to the statutorily
or contractually required
contributions
Contribution Covered
deficiency (excess) Payroll
(873,248) $
(972,612)
(1,090,715)
(1,245,790)
(1,310,892)
(1,267,208)
(1,160,770)
(1,115,620)
(1,231,334)
$ 15,498,171
15,616,400
16,024,008
16,629,084
17,014,243
16,000,110
16,849,796
18,311,585
18,524,206
Contributions as a
percentage of covered
payroll
5.63%
6.23%
6.81%
7.49%
7.70%
7.92%
6.89%
6.09%
6.65%
PSERS
Fiscal Year Ending
Statutorily or
contractually required
contributions
December 31, 2015 $
December 31, 2016
December 31, 2017
December 31, 2018
December 31, 2019
December 31, 2020
December 31, 2021
December 31, 2022
December 31, 2023
10,105
10,642
8,612
7,768
12,191
12,039
12,464
18,354
20,700
Less: Contributions in
relation to the statutorily
or contractually required
contributions
Contribution Covered
deficiency (excess) Payroll
(10,105) $
(10,642)
(8,612)
(7,768)
(12,191)
(12,039)
(12,464)
(18,354)
(20,700)
$ 156,084
161,481
129,747
113,122
170,971
174,773
189,293
293,269
298,562
Contributions as a
percentage of covered
payroll
6.47%
6.59%
6.64%
6.87%
7.13%
6.89%
6.58%
6.26%
6.93%
LEOFF 2
Fiscal Year Ending
Statutorily or
contractually required
contributions
December 31, 2015 $
December 31, 2016
December 31, 2017
December 31, 2018
December 31, 2019
December 31, 2020
December 31, 2021
December 31, 2022
December 31, 2023
776,719
787,110
815,548
855,040
868,767
831,485
813,295
872,391
518,709
Less: Contributions in
relation to the statutorily
or contractually required
contributions
Contribution Covered
deficiency (excess) Payroll
(776,719) $
(787,110)
(815,548)
(855,040)
(868,767)
(831,485)
(813,295)
(872,391)
(518,709)
$ 15,380,541
15,586,296
15,860,571
16,132,860
16,611,112
16,054,647
16,265,695
17,624,561
9,373,415
Contributions as a
percentage of covered
payroll
5.05%
5.05%
5.14%
5.30%
5.23%
5.18%
5.00%
4.95%
5.53%
*Until a full 10-year trend is compiled, governments should present information only for those years of which information is available.
106
CITY OF TUKWILA: 2023 ACFR REQUIRED SUPPLEMENTAL INFORMATION
FIREMEN'S PENSION TRUST FUND
Schedule of Changes in the City's Net Pension Liability and Related Ratios
Total Pension Liability
Service cost
Interest
Changes of benefit terms
Difference between expected & actual
experience
Changes of assumptions
Benefits payments, included refunds of
employee contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)
Plan Fiduciary Net Position
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds of
employee contributions
Administrative expense
Other
Net change in plan fiduciary net
position
Plan fiduciary net position -
beginning
Plan fiduciary net position - ending
(b)
City's net pension liability - ending (a)
- (b)
Plan fiduciary net position as a
percent of total pension liability
Covered payroll
City net pension liability as a percent
of covered employee payroll
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
50,098 49,716 49,332 38,796
39,385 42,542 29,959 22,655 14,697
(2,442) (311,190)
- (62,728)
(2,810) 17,256 (31,990) 1,774 (220,445) 10,729
(177,772) (51,490) (3,148) 75,346 (76,289) (126,650)
(61,863) (58,277) (59,988) (69,186) 17,700 (80,468) (60,172) (69,186) (58,330) (61,444)
(11,765)
1,852,693
1,840,928
(11,003) (384,574)
1,840,928 1,829,925
1,829,925 1,445, 351
(30,390)
1,445,351
1,414,961
(162,882)
1,414,961
1,252,079
(75,317)
1,252,079
1,176, 762
64,114 63,590 66,360 68,848 (139) 71,286
1,805 2,667 7,988 39,157 (39,477) 27,770
(61,863) (58,277) (59,988) (69,186) 17,700 (80,468)
- (4,500) (4,500) (4,624) 1,124
- 2,716
(52,768) 37,893
1,176,762 1,123,995
1,123,994 1,161,888
(332,409)
1,161,888
829,479
(162,668)
829,479
666,811
68,569 72,088 71,112 74,397
34,948 31,875 (20,255) 85,126
(60,172) (69,186) (58,330) (61,444)
- - (1,750)
- (500) -
4,056 3,480 9,860 34,195 (18,076) 18,588 43,345 34,777 (7,973) 96,329
1,408,970 1,413,026 1,416,506 1,426,366 1,460,561 1,442,485 1,461,073 1,504,419 1,539,196 1,531,223
1,413,026 1,416,506 1,426,366
427,902 413,419 18,985
76.76% 77.41% 98.69%
n/a
n/a
1,460,561 1,442,485
(45,600) (190,406)
103.22% 115.21%
n/a n/a
1,461, 073
(284,311)
124.16%
n/a n/a
1,504,418
(380,424)
133.85%
n/a
1,539,196
(377,308)
132.47%
n/a
1,531,223 1,627,552
(701,744) (960,741)
184.60% 244.08%
n/a n/a
107
CITY OF TUKWILA: 2023 ACFR REQUIRED SUPPLEMENTAL INFORMATION
Schedule of Employer Contributions
Less: Contributions in
Statutorily Relation to the Contribution Contribution as a
Determined Statutorily Determined Deficiency Covered Percentage of
Fiscal Year Ending Contribution Contribution (Excess) Payroll Covered Payroll
December 31, 2014 64,114 64,114 - - n/a
December 31, 2015 63,590 63,690 (100) n/a
December 31, 2016 66,360 66,360 - - n/a
December 31, 2017 64,223 68,848 (4,625) - n/a
December31,2018 (139) 139 - n/a
December 31, 2019 71,286 (71,286) - n/a
December 31, 2020 68,569 (68,569) - n/a
December 31, 2021 72,088 (72,088) - n/a
December 31, 2022 71,112 (71,112) - n/a
December 31, 2023 74,397 (74,397) 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
2014
0.13%
2015
0.19%
2016
0.56%
2017
2.75%
2018
-2.68%
2019
1.93%
2020
2.39%
2021
2.12%
2022
-1.31%
2023
5.54%
108
CITY OF TUKWILA: 2023 ACFR REQUIRED SUPPLEMENTAL INFORMATION
City of Tukwila
Schedule of Changes in Total OPEB Liability and Related Ratios
LEOFF Plan 1
For the year ended December 31, 2023
Last 10 Fiscal Years*
2018 2019 2020 2021 2022 2023
Total OPEB liability - beginning $ 26,383,115 $ 14,694,242 $ 12,700,180 $ 7,622,718 $ 7,898,399 $ 6,378,071
Serivce cost - - - - - -
Interest 469,303 471,554 462,935 204,469 154,176 114,013
Changes in benefit terms - - -
Differences between expected and actual experience (3,780,437) (199,491) (5,203,755) (92,607) (1,163,334) (56,710)
Changes of assumptions (7,947,448) (1,896,319) 107,644 538,778 (131,930) (1,013,670)
Benefit Payments (430,291) (369,806) (444,286) (374,959) (379,240) (363,452)
Other changes - - - - - -
Total OPEB liability - ending 14,694,242 12,700,180 7,622,718 7,898,399 6,378,071 5,058,252
Covered -employee payroll
Total OPEB liability as a % of covered payroll
n/a n/a n/a n/a n/a 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.
109
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Non -major Governmental Funds
Special Revenue Funds
Special Revenue Funds are established to account for proceeds of specific taxes or other specific revenue sources
that are legally restricted to 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.
• Special Assessment Bonds 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 General Obligation Debt Service Fund — 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 General Obligation Debt Service 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.
• 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: 2023 ACFR 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: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2023
Total Total Total Total
Special Revenue Debt Service Capital Project Governmental
Funds Funds Funds Funds
ASSETS:
Cash and cash equivalents
Due from other governmental units
Restricted Assets:
Cash and cash equivalents
Capital assets held for resale
Total Assets
$ 3,039,682
204,507
$ 1,252,905
123,085
$ 7,895,492
87,554
$ 12,188, 079
415,146
204,010 - 204,010
370,410 370,410
3,448, 200 1,375,990
8,353,455 13,177, 645
LIABILITIES AND FUND BALANCES:
Current liabilities
Accounts payable 19,807 - 116,765 136,573
Accrued wages and benefits 3,449 - 231 3,680
Customer deposit 14,618 - 7,277 21,895
Total Liabilities 37,874
Deferred inflows of resources
Unavailable revenue -property tax
Total Deferred Inflows of Resources
124,273 162,148
106,065 106,065
106,065 106,065
Fund balances:
Restricted 3,410,325 1,269,926 3,823,452 8,503,703
Assigned - - 4,188,008 4,188,008
Assigned - 1% arts - - 217,722 217,722
Total Fund balances 3,410,325 1,269,926 8,229,182 12,909,433
Total Liabilities and Fund Balances $ 3,448,200 $ 1,375,990 $ 8,353,455 $ 13,177,645
112
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON -MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2023
Total Total Total Total
Special Revenue Debt Service Capital Project Governmental
Funds Funds Funds Funds
REVENUES:
Taxes $ 971,162 $ 4,507,076 $ 833,848 $ 6,312,086
Charges for services - 1,731,121 1,731,121
Intergovernmental 278,243 459,616 737,859
Investment eamings 122,651 95,848 325,561 544,060
Miscellaneous - - (296,496) (296,496)
Total Revenues 1,372,056 4,602,924 3,053,650 9,028,630
EXPENDITURES:
Current:
General government - 150,716 150,716
Public safety 188,493 - 188,493
Transportation - 445,616 445,616
Natural and economic environment 410,877 3,927 414,803
Culture and recreation - 345,535 345,535
Debt service
Principal - 5,794,000 5,794,000
Interest - 4,494,116 4,494,116
Capital Outlay - - 270,327 270,327
Total Expenditures 599,370 10,288,116 1,216,120 12,103,605
Excess (deficiency) of revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
772,686 (5,685,191)
1,837,530 (3,074,975)
5,802,141 325,908 6,128,049
(1,703,504) (1,703,504)
772,686
2,637,639
5,802,141
116,949
1,152,976
(1,377,596) 4,424,545
459,934 1,349,570
7,769, 248 11, 559,864
$ 3,410,325 $ 1,269,926 $ 8,229,182 $ 12,909,433
113
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2023
Hotel/Motel Tax Drug Seizure
Total
Special Revenue
Funds
ASSETS:
Cash and cash equivalents $ 2,917,004 $ 122,678 $ 3,039,682
Due from other governmental units 158,607 45,900 204,507
Restricted Assets:
Cash and cash equivalents - 204,010 204,010
Total Assets 3,075,611 372,588 3,448,200
LIABILITIES AND FUND BALANCES:
Current liabilities
Accounts payable
Accrued wages and benefits
Customer deposit
2,807 17,000
3,449
14,618
19,807
3,449
14,618
Total Liabilities 6,256
Fund balances:
Restricted
Total Fund balances
3,069,355
31,618 37,874
340,970 3,410,325
3,069,355
340,970 3,410,325
Total Liabilities and Fund Balances $ 3,075,611 $ 372,588 $ 3,448,200
114
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON -MAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2023
Hotel/Motel Tax Drug Seizure
Total
Special Revenue
Funds
REVENUES:
Taxes $ 971,162 $
Intergovernmental 44,000
Investment earnings 122,651
234,243
$ 971,162
278,243
122,651
Total Revenues 1,137,813
EXPENDITURES:
Current:
Public safety
Natural and economic environment
Total Expenditures
Excess (deficiency) of revenues
Over (Under) Expenditures
234,243 1,372,056
188,493 188,493
410,877 410,877
410,877
188,493 599,370
726,937
Net change in fund balances 726,937
Fund balances - beginning 2,342,419
45,750 772,686
45,750 772,686
295,220 2,637,639
Fund Balances - Ending $ 3,069,355 $ 340,970 $ 3,410,325
115
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR DEBT SERVICE FUNDS
DECEMBER 31, 2023
Special
Assessment
Bonds Guaranty
Fund
Unlimited Tax
General
Obligation Debt
Service Fund
Limited Tax
General
Obligation Debt
Service Fund
Total Nonmajor
Debt Service
Funds
ASSETS:
Cash and cash equivalents
Due from other governmental units
Total Assets
LIABILITIES AND FUND BALANCES:
Total Liabilities
Deferred inflows of resources
Unavailable revenue -property tax
Total Deferred Inflows of Resources
Fund balances:
Restricted
Total Fund balances
$ 788,243
$ 464,663
123,085
$ 1,252,905
123,085
788,243
587,748
1,375,990
106,065
106,065
788,243
106,065
481,683
106,065
1,269,926
788,243
481,683
1,269,926
Total Liabilities and Fund Balances $ 788,243
$ 587,748
$ $ 1,375,990
116
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON -MAJOR DEBT SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2023
Special Assessment Unlimited Tax Limited Tax General Total Nonmajor
Bonds Guaranty General Obligation Obligation Debt Debt Service
Fund Debt Service Fund Service Fund Funds
REVENUES:
Taxes
Investment earnings
Total Revenues
37,896
$ 4,507,076 $
57,952
$ 4,507,076
95,848
37,896 4,565,028 - 4,602,924
EXPENDITURES:
Debt service
Principal - 1,980,000 3,814,000 5,794,000
Interest - 2,505,975 1,988,141 4,494,116
Total Expenditures - 4,485,975 5,802,141 10,288,116
Excess (deficiency) of revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Total Other Financing Sources And Uses
37,896 79,053 (5,802,141) (5,685,191)
5,802,141 5,802,141
Net change in fund balances 37,896
Fund balances - beginning 750,347
5,802,141 5,802,141
79,053 - 116,949
402,630 - 1,152,976
Fund Balances - Ending $ 788,243 $ 481,683 $ - $ 1,269,926
117
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR CAPITAL PROJECT FUNDS
DECEMBER 31, 2023
Land Acq. General Total Nonmajor
Residential Rec & Park Urban Government Fire Capital Project
Street Development Renewal Improvements Improvements Funds
ASSETS:
Cash and cash equivalents
Due from other governmental units
Restricted Assets:
Capital assets held for resale
$ 1,393,578 $ 4,244,199 $ 1,824,726 $ 432,989 $ $ 7,895,492
87,554 - - - - 87,554
- - 370,410 - - 370,410
Total Assets 1,481,131
4,244,199 2,195,136
432,989 8,353,455
LIABILITIES AND FUND BALANCES:
Current liabilities
Accounts payable 57,972
Accrued wages and benefits 231
Customer deposit -
58,794
7,277
116,765
231
7,277
Total Liabilities 58,202
58,794
7,277
124,273
Fund balances:
Restricted - 3,823,452 - - 3,823,452
Assigned 1,422,929 144,231 2,195,136 425,712 4,188,008
Assigned - 1% arts - 217,722 - - - 217,722
Total Fund balances 1,422,929
Total Liabilities and Fund Balances
4,185,405 2,195,136
425,712 8,229,182
S 1,481,131 $ 4,244,199 $ 2,195,136 $ 432,989 $ $ 8,353,455
118
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON -MAJOR CAPITAL PROJECT FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2023
Land Acq. General Total Nonmajor
Residential Rec & Park Urban Government Fire Capital Project
Street Development Renewal Improvements Improvements Funds
REVENUES:
Taxes $ 650,000 $
Charges for services
Intergovemmental 459,616
Investment eamings 36,871
Miscellaneous
Total Revenues
183,848 $
1,031,847
177,512
$ - $ $ 833,848
699,274 1,731,121
- - 459,616
88,137 23,042 - 325,561
(296,496) - (296,496)
1,146,488 1,393,206
(208,359) 23,042 699,274 3,053,650
EXPENDITURES:
Current:
General government - 150,716 150,716
Transportation 445,616 - - - 445,616
Culture and recreation 345,535 - 345,535
Natural and economic environment - 3,927 3,927
Capital Outlay 270,327 - - 270,327
Total Expenditures 715,942 345,535 3,927 150,716 1,216,120
Excess (deficiency) of revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
430,545 1,047,671
257,977
67,931
(212,286) (127,674)
(1,004,230)
699,274 1,837,530
325,908
(699,274) (1,703,504)
257,977 67,931 (1,004,230)
688,522 1,115,602 (1,216,516)
734,407 3,069,803 3,411,652
(127,674)
553,386
(699,274)
(1,377,596)
459,934
7,769,248
$ 1,422,929 $ 4,185,405 $ 2,195,136 $ 425,712 $ $ 8,229,182
119
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
ARTERIAL STREET CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes $ 1,590,000 $ 1,590,000 $ 1,940,464 $ 350,464
Licenses and permits 75,000 75,000 46,173 (28,827)
Intergovernmental 2,923,800 2,923,800 1,710,530 (1,213,270)
Fire Impact Fees 200,000 200,000 810,328 610,328
Fines and Forfeitures - - 11,081 11,081
Investment earnings 5,000 5,000 266,657 261,657
Miscellaneous 80,000 80,000 453,234 373,234
Total Revenues 4,873,800 4,873,800 5,238,466 364,666
EXPENDITURES:
Current:
Transportation
Capital outlay
Total Expenditures
Excess of Revenues And Expenditures
Net change in fund balances
Fund balances - beginning
3,252,662 2,202,662
2,897,000 1,647,000
2,578,819 (376,157)
2,031,923 (384,923)
6,149,662 3,849,662
4,610,742 (761,080)
(1,275,862) 1,024,138
627,725 (396,414)
(1,275,862)
6,570,879
1,024,138
627,725 (396,414)
5,534,493 5,534,493
Fund Balances - Ending $ 5,295,017 $ 6,558,631 $ 6,162,217 $ (396,414)
120
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
LOCAL IMPROVEMENT DISTRICT #33 DEBT SERVICE FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Special Assessment $ 400,000 $ 400,000 $ 382,843 $ (17,157)
Investment earnings 125,000 125,000 113,883 (11,117)
Miscellaneous - - 327 327
Total Revenues 525,000 525,000 497,053 (27,947)
EXPENDITURES:
Debt service:
Principal
Interest
Total Expenditures
400,000
125,000
400,000 400,000
144,188 144,188
525,000
544,188 544,188
Excess of Revenues And Expenditures (19,188)
(47,135) (27,947)
Net change in fund balances (19,188)
Fund balances - beginning 586,678
(47,135) (27,947)
582,452 582,452
Fund Balances - Ending $ 586,678 $ 563,265 $ 535,318 $ (27,947)
121
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
PUBLIC SAFETY PLAN CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes $ 500,000 $ 500,000 $ 500,390 $ 390
Fire Impact Fees 300,000 300,000 300,000 -
Investment earnings - - 50,212 50,212
Total Revenues 800,000 800,000 850,602 50,602
EXPENDITURES:
Current:
Public safety
Total Expenditures
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
(1,700) 1,700
(1,700) 1,700
800,000 800,000
852,302 52,302
300,000
(1,319,019)
750,000
(1,319,019)
699,274
(1,319,019)
(50,726)
(1,019,019) (569,019)
(619,745) (50,726)
(219, 019) 230,981
538,557 991,865
232,556 1,575
991,865 -
Fund Balances - Ending $ 319,538 $ 1,222,846 $ 1,224,422 $ 1,575
122
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
CITY FACILITIES CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Investment earnings $ 1,000 $ 1,000 $ 26,709 $ 25,709
Total Revenues 1,000 1,000 26,709 25,709
EXPENDITURES:
Current:
General Government
Capital outlay
Total Expenditures
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
2,700,000 2,700,000
26,997 (26, 997)
2,757,444 (57,444)
2,700,000 2,700,000
2,784,441 (84,441)
(2,699,000) (2,699,000)
(2,757,732) (58,732)
2,140, 000 3,140, 000
2,000,000 (1,140,000)
2,140, 000 3,140, 000
2,000,000 (1,140,000)
(559,000)
2,274,324
441,000
1,959,366
(757,732)
1,959,366
(1,198, 732)
Fund Balances - Ending $ 1,715,324 $ 2,400,366 $ 1,201,634 $ (1,198,732)
123
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
HOTEL/MOTEL TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes $ 720,000 $ 720,000 $ 971,162 $ 251,162
Intergovernmental 44,000 44,000
Investment earnings 6,000 6,000 122,651 116,651
Total Revenues 726,000 726,000 1,137, 813 411,813
EXPENDITURES:
Current:
Natural and economic environment
Total Expenditures
Excess of Revenues And Expenditures
938,890 938,890
410,877 528,013
938,890 938,890
410,877 528,013
(212,890) (212,890)
726,937 939,826
Net change in fund balances (212,890) (212,890) 726,937 939,826
Fund balances - beginning 2,048,201 2,342,419 2,342,419 -
Fund Balances - Ending $ 1,835,311 $ 2,129,529 $ 3,069,355 $ 939,826
124
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
DRUG SEIZURE SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Intergovernmental $ 35,000 $ 95,000 $ 234,243 $ 139,243
Investment earnings 500 500 - (500)
Miscellaneous 80,000 80,000 - (80,000)
Total Revenues 115,500 175,500 234,243 58,743
EXPENDITURES:
Current:
Public safety
Capital outlay
Total Expenditures
Excess of Revenues And Expenditures
231,008 231,008
188,493 42,514
35,000 35,000 - 35,000
266,008 266,008
188,493 77,514
(150,508) (90,508)
45,750 136,257
Net change in fund balances (150,508) (90,508) 45,750 136,257
Fund balances - beginning 435,515 295,220 295,220
Fund Balances - Ending $ 285,008 $ 204,713 $ 340,970 $ 136,257
125
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
RESIDENTIAL STREET CAPITAL PROJECTS FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes $ 650,000 $ 650,000 $ 650,000 $ -
Intergovernmental 4,301,800 301,800 459,616 157,816
Investment earnings 1,000 1,000 36,871 35,871
Total Revenues 4,952,800 952,800 1,146,488 193,688
EXPENDITURES:
Current:
Transportation 575,000 65,000 445,616 (380,616)
Capital outlay 5,337,000 1,072,000 270,327 801,673
Total Expenditures 5,912,000 1,137,000 715,942 421,058
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
(959,200) (184,200) 430,545 614,745
400,000 400,000
257,977 (142,023)
400,000 400,000
257,977 (142,023)
(559,200) 215,800
847,903
688,522 472,722
734,407 734,407
Fund Balances - Ending $ 288,703 $ 950,207 $ 1,422,929 $ 472,722
126
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
LAND & PARK ACQUISITION CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes $ 315,000 $ 315,000 $ 183,848 $ (131,152)
Charges for services 148,000 148,000 1,031,847 883,847
Investment earnings 8,000 8,000 177,512 169,512
Total Revenues 471,000 471,000 1,393,206 922,206
EXPENDITURES:
Current:
Culture and recreation
Total Expenditures
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
931,250 931,250
345,535 585,715
931,250 931,250
345,535 585,715
(460, 250) (460, 250) 1,047,671 1,507,921
16,250
67,931 67,931
16,250
67,931 67,931
(444, 000)
3,751,186
(392,319)
3,069,803
1,115, 602 1,507,921
3,069,803
Fund Balances - Ending $ 3,307,186 $ 2,677,484 $ 4,185,405 $ 1,507,921
127
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
URBAN RENEWAL CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Investment earnings $ - $ - $ 88,137 $ 88,137
Gain/(loss) on sale of assets held for resale 1,350,000 1,350,000 (296,496) (1,646,496)
Total Revenues 1,350,000 1,350,000 (208,359) (1,558,359)
EXPENDITURES:
Current:
Natural and economic environment
Total Expenditures
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Transfers out
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
3,927 (3,927)
3,927 (3,927)
1,350,000 1,350,000
(212,286) (1,562,286)
(300,000) (1,030,000)
(1,004,230) 25,770
(300,000) (1,030,000)
(1,004,230) 25,770
1,050,000 320,000
1,183, 800 1,404, 242
(1,216,516)
3,411,652
(1,536,516)
2,007,410
Fund Balances - Ending $ 2,233,800 $ 1,724,242 $ 2,195,136 $ 470,894
128
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL GOVERNMENT IMPROVEMENTS CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Intergovernmental $ 1,800,000 $ - $ - $ -
Investment earnings 1,000 1,000 23,042 22,042
Total Retinues 1,801,000 1,000 23,042 22,042
EXPENDITURES:
Current:
General Government
Capital outlay
Total Expenditures
Excess of Revenues And Expenditures
Transfers in
Transfers out
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
340,000 149,200
2,000,000
150,716 (1,516)
135,000 - 135,000
2,340,000 284,200
150,716 133,484
(539,000) (283,200) (127,674) 155,526
100,000
(5,128) (5,128)
94,872 (5,128)
5,128
5,128
(444,128) (288,328)
444,128
(127,674) 160,654
553,386 553,386
Fund Balances - Ending $ $ 265,058 $ 425,712 $ 160,654
129
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FIRE IMPROVEMENTS CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Charges for services $ 300,000 $ 750,000 $ 699,274 $ (50,726)
Total Revenues 300,000 750,000 699,274 (50,726)
EXPENDITURES:
Total Expenditures
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Transfers out
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
300,000 750,000
699,274 (50,726)
(300,000) (750,000)
(699,274) 50,726
(300,000) (750,000)
(699,274) 50,726
130
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
SPECIAL ASSESSMENT BONDS GUARANTY FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Investment earnings $ 3,000 $ 3,000 $ 37,896 $ 34,896
Total Revenues 3,000 3,000 37,896 34,896
EXPENDITURES:
Total Expenditures
Excess of Revenues And Expenditures
Net change in fund balances
3,000 3,000
37,896 34,896
3,000 3,000
Fund balances - beginning 758,958
37,896 34,896
750,347 750,347
Fund Balances - Ending $ 761,958 $ 753,347 $ 788,243 $ 34,896
131
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
UNLIMITED TAX GENERAL OBLIGATION DEBT SERVICE FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes $ 4,485,975 $ 4,485, 975 $ 4,507,076 $ 21,101
Investment earnings 1,200 1,200 57,952 56,752
Total Revenues 4,487,175 4,487,175 4,565,028 77,853
EXPENDITURES:
Debt service:
Principal
Interest
Total Expenditures
Excess of Revenues And Expenditures
1,980,000
2,505,975
1,980,000 1,980,000
2,505,975 2,505,975
4,485, 975
4,485,975 4,485,975
1,200 1,200
79,053 77,853
Net change in fund balances 1,200 1,200 79,053 77,853
Fund balances - beginning 314,818 402,630 402,630
Fund Balances - Ending $ 316,018 $ 403,830 $ 481,683 $ 77,853
132
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
LIMITED TAX GENERAL OBLIGATION DEBT SERVICE FUND
FOR THE YEAR ENDED DECEMBER 31, 2023
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Miscellaneous $ 376,876 $ 376,876 $ - $ (376,876)
Total Revenues 376,876 376,876 - (376,876)
EXPENDITURES:
Debt service:
Principal 4,005,836 4,005,836 3,814,000 191,836
Interest 2,173,234 2,173,234 1,988,141 185,093
Total Expenditures 6,179,070 6,179,070 5,802,141 376,929
Excess of Revenues And Expenditures
(5,802,194) (5,802,194) (5,802,141) 53
OTHER FINANCING SOURCES (USES):
Transfers in 5,802,194 5,802,194 5,802,141 (53)
Total Other Financing Sources And Uses 5,802,194 5,802,194 5,802,141 (53)
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
133
CITY OF TUKWILA: 2023 ACFR 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: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
DECEMBER31, 2023
Total
Insurance - Insurance - Internal
Equipment Active LEOFF I Service
Rental Employees Retirees Funds
ASSETS:
Current assets:
Cash and cash equivalents $ 4,199,583 $ 4,006,776 $ 160,696 $ 8,367,055
Other Receivables 49,632 243,142 - 292,774
Due from other gmernmental units 48,632 - - 48,632
Inventory of materials and supplies 170,978 - 170,978
Total Current Assets 4,420,193 4,249,917 160,696 8,830,806
Noncurrent Assets:
Net Pension asset 95,757 95,757
Capital Assets:
Machinery and equipment 11,284,299 - 11,284,299
Leased Assets 2,291,750 - - 2,291,750
Less: accumulated depreciation (8,441,566) - - (8,441,566)
Total Capital Assets (Net Of A/D) 5,134,484 5,134,484
Total Noncurrent Assets
5,230,241 - - 5,230,241
Total Assets 9,650,434 4,249,917 160,696 14,061,048
Deferred Outflows of Resources
Deferred outflow pension earnings 76,416 76,416
Total Deferred Outflows Of Resources 76,416 - 76,416
LIABILITIES:
Current liabilities:
Accounts payable 81,403 25,096 20,477 126,976
Accrued wages and benefits 17,041 - 17,041
Accrued interest payable 11,365 - 11,365
Lease liability due within one year 410,531 - 410,531
Claims incurred but not reported - 548,700 27,700 576,400
Total Current Liabilities 520,340 573,796 48,177 1,142,313
Noncurrent liabilities:
Reserve for unreported claims - 823,050 41,550 864,600
Lease liability due in more than one year 1,601,592 - - 1,601,592
Net pension liability 42,019 42,019
Total Noncurrent Liabilities 1,643,611 823,050 41,550 2,508,211
Total Liabilities
Deferred Inflows of Resources
Deferred inflow pension earnings
Total Deferred Inflows Of Resources
2,163, 951 1,396,846
89,727 3,650,523
71,909 71,909
71,909 - 71,909
NET POSITION:
Investment in capital assets 3,122,362 - 3,122,362
Restricted for Pension Assets 117,653 - 117,653
Unrestricted 4,250,976 2,853,072 70,969 7,175,017
Total Net Position $ 7,490,991 $ 2,853,072 $ 70,969 $ 10,415,031
135
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2023
Total
Insurance - Insurance- Internal
Equipment Active LEOFF I Service
Rental Employees Retirees Funds
OPERATING REVENUES:
Charges for services $ 2,121,715 $ 5,604,142 $ 369,650 $ 8,095,508
Other operating revenue 85 149,120 149,204
Total Operating Revenue 2,121,800 5,753,262 369,650 8,244,712
OPERATING EXPENSES:
Operations & maintenance 1,686,257 5,286,159 467,791 7,440,207
Administrative & general 350,392 189,639 12,642 552,673
Depreciation 989,272 989,272
Total Operating Expenses 3,025,921 5,475,798 480,433 8,982,152
Operating Income (Loss) (904,121)
NON -OPERATING REVENUE (EXPENSE):
Investment earnings
Gain (loss) on disposal of capital assets
Interest Expense
Total Non -Operating Revenue (Expense)
Income (Loss)
Special Item - Transfer of Fire Operations
Change In Net Position
Net position beginning of year
205,692
285,823
(104,816)
277,464 (110,783) (737,440)
203,911 7,198
416,801
285,823
(104,816)
386,699 203,911
7,198 597,807
(517,422) 481,374
(2,952,366)
(3,469,788)
(103,585) (139,633)
481,374 (103,585)
10, 960, 778 2,371,697
(2,952,366)
(3,091,998)
174,554 13, 507, 030
Net Position end of year $ 7,490,991 $ 2,853,072 $ 70,969 $ 10,415,031
136
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023
Page 1 of 2
Equipment
Rental
Insurance -
Active
Employees
Insurance-
LEOFF I
Retirees
Total
Internal
Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users
Cash paid to suppliers
Cash paid to, or on behalf of, employees
Interfund activity - payments to other funds
Other cash received (paid)
Net Cash Provided (Used)
By Operating Activities
$ 2,092,001
(1,414,813)
(533,415)
(350,392)
85
$ 5,534,210
(217,403)
(5,219,722)
(189,639)
$ 369,650
9,805
(467,791)
(12,642)
$ 7,995,861
(1,622,411)
(6,220,929)
(552,673)
85
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Net Cash Provided (Used) By Non -
Capital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Proceed from sale of equipment
Purchase of capital asset
Proceeds from lease financing
Principal payment on debt
Interest payment on debt
Net Cash Provided (Used) For Capital
And Related Financing Activities
CASH FLOW FROM INVESTING ACTIVITIES:
Interest received
Net Cash Provided (Used) In Investing Activities
(206,535) (92,554) (100,978) (400,068)
354,474
(1,850,682)
1,707,785
(251,333)
(95,073)
354,474
(1,850,682)
1,707,785
(251,333)
(95,073)
(134,828)
205,692
203,911
7,198
(134,828)
416,801
205,692
203,911
7,198
416,801
Net Increase (Decrease) In Cash And
Cash Equivalents (135,672) 111,357
Cash and cash equivalents -beginning of year 4,335,255
Cash And Cash Equivalents -End Of Year $ 4,199,583
3,895,419
$ 4,006,776
(93,780)
254,476
$ 160,696
(118,095)
8,485,150
$ 8,367,055
Cash at end of year consists of:
Cash and cash equivalents $ 4,199,583
$ 4,006,776
$ 160,696
8,367,055
Total Cash $ 4,199,583
$ 4,006,776
$ 160,696
$ 8,367,055
137
CITY OF TUKWILA: 2023 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS (continued)
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023
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) $ (904,121) $ 277,464 $ (110,783) $ (737,440)
Adjustments to reconcile operating income to net cash
Provided (used) by operating activities:
Depreciation 989,272 - 989,272
Asset (increases) decreases:
Accounts receivable (29,714) (219,052) - (248,767)
Inventory (111,336) - (111,336)
Deferred outflow of resources (increase) decrease 38,715 - 38,715
Liability increases (decreases):
Accounts payable (105,344) (150,966) 9,805 (246,505)
Wages and benefits payable (14,353) - (14,353)
Deferred inflow of resources increase (decrease) (69,654) - (69,654)
Total Adjustments
Net Cash Provided (Used) By Operating Activities
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Total Non Cash Investing, Capital And
Financing Activities
697,585 (370,018) 9,805 337,372
$ (206,535) $ (92,554) $ (100,978) $ (400,068)
$ - $
138
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
City of Tukwila
STATISTICAL SECTION
December 31, 2023
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 140
Schedule 2 Changes in Net Position 142
Schedule 3 Fund Balances, Governmental Funds 144
Schedule 4 Changes in Fund Balances of Governmental Funds 146
Schedule 5 General Governmental Tax Revenues by Source 148
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 149
Schedule 7 Assessed and Estimated Actual Value of Taxable Property 150
Schedule 8 Property Tax Rates -Direct and Overlapping Governments 151
Schedule 9 Principal Property Taxpayers 152
Schedule 10 Retail Sales Tax Collections by Sector 154
Schedule 11 Sales Tax Rate Direct and Overlapping Governments 156
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 158
Schedule 13 Ratios of General Bonded Debt Outstanding 160
Schedule 14 Computation of Direct and Overlapping Debt 161
Schedule 15 Legal Debt Margin Information 162
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 164
Schedule 17 Principal Employers 165
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 166
Schedule 19 Operating Indicators by Function 167
Schedule 20 Capital Assets by Function 168
139
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKW I LA
SCHEDULE 1
NET POSITION BY COMPONENT(a)
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Page 1 of 2
2014 2015 2016 2017
Governmental activities:
Net investment in capital assets $ 191,081,461 $ 191,331,156 $ 193,113,026 $ 199,328,694
Restricted 3,973,727 5,446,074 8,996,185 13,480,068
Unrestricted 25, 009,212 16,125, 592 15, 809,945 11, 366, 545
Total govemmental activities net position $ 220,064,400 $ 212,902,822 $ 217,919,156 $ 224,175,307
Business -type activities:
Net investment in capital assets $ 57,677,764 $ 59,483,424 $ 60,807,030 $ 65,355,778
Restricted 430,444 - -
Unrestricted 13, 839, 529 14, 658, 912 17, 240, 620 17,425, 401
Total business -type activities net position $ 71,947,737 $ 74,142,336 $ 78,047,650 $ 82,781,179
Primary government:
Net investment in capital assets $ 248,759,226 $ 250,814,581 $ 253,920,057 $ 264,684,472
Restricted 4,404,171 5,446,074 8,996,185 13,480,068
Unrestricted 38,848,741 30,784,504 33,050,565 28,791,946
Total primary govemment net position $ 292,012,138 $ 287,045,158 $ 295,966,806 $ 306,956,486
Notes:
(a) All amounts are reported on the accrual basis
Source:
Tukwila Finance Department
140
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKW I LA
SCHEDULE 1
NET POSITION BY COMPONENT (continued)
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2018 2019 2020 2021 2022
Page 2 of 2
2023
$ 201,997,812 $ 201,649,103 $ 201,887,136 $ 197,839,607 $ 199,057,806 $ 196,460,485
16, 962, 378 18, 692, 944 17, 784,194 25, 280, 715 28, 835, 065 33, 388,116
12, 407, 297 17, 772, 776 22, 003, 200 32,169, 525 35, 098,137 41, 264,130
$ 231, 367, 488 $ 238,114, 823 $ 241, 674, 530 $ 255, 289, 848 $ 262, 991, 008 $ 271,112, 731
$ 68, 680, 695 $ 68, 362,159 $ 69, 238, 961 $ 72, 559,196 $ 75, 308, 549 $ 76,179, 881
- - 1,261,911
18, 988, 782 22,104, 664 25, 231, 660 27, 093, 876 26, 056, 751 29,140, 857
$ 87,669,477 $ 90,466,823 $ 94,470,621 $ 99,653,072 $ 101,365,300 $ 106,582,649
$ 270,678,507 $ 270,011,262 $ 271,126,097 $ 270,398,803 $ 274,366,355 $ 272,640,366
16,962,378 18,692,944 17,784,194 25,280,715 28,835,065 34,650,027
31,396,080 39,877,441 47,234,860 59,263,401 61,154,888 70,404,987
$ 319,036,965 $ 328,581,646 $ 336,145,151 $ 354,942,919 $ 364,356,308 $ 377,695,380
141
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 2
CHANGES IN NET POSITION (a)
(accrual basis of accounting)
Page 1 of 2
Expenses
Governmental Activities (b)
General government
Public safety
Physical environment
Transportation
Culture and recreation
Natural and economic environment
Interest on Long Term Debt
Total Governmental Activities
Business Type Activities
Water/Sewer Utility
Foster Golf Course
Surface Water Utility
Total Business Type Activities
Total Primary Government Expenses
Program Revenues
Governmental Activities (b)
Charges for Services
General government
Public safety
Physical environment
Transportation
Culture and recreation
Natural and economic environment
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities Program Revenues
Business Type Activities
Charges for Services
Water/Sewer Utility
Foster Golf Course
Surface Water Utility
Operating Grants and Contributions
Capital Grants and Contributions
Total Business Type Activities Program Revenues
Total Primary Govemment Program Revenues
Net (Expense)/Revenue
Governmental Activities
Business Type Activities
Total Primary Govemment Net Expense
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property Tax
Retail Sales and Use Tax
Hotel/Motel Tax
Utility Tax
Interfund Utility Taxes
Business Tax
Excise Tax
Unrestricted Investment Eamings
Miscellaneous
Transfers
Total Governmental Activities
Business Type Activities
Unrestricted Investment Interest
Miscellaneous
Transfers
Total Business Type Activities
Total Primary Government
Change in Net Position Before Special Item
Special item
Change in Net Position
Governmental Activities
Business Type Activities
Total Primary Government
Notes:
(a) All amounts are reported on the accrual basis
(b) Governmental activity classifications changed beginning with the 2019 Annual report
Source: Tukwila Finance Department
2014 2015
2016
27.
$ 10,289,399 $ 8,042,254 $ 9,662,207 $ 9,835,290
29,292,587 29,403,206 31,418,713 31,190,347
11,668,098 2,611,297 2,554,259 2,545,144
2,479,533 11,069,605 11,188,189 12,236,551
5,336,659 5,125,227 5,431,324 5,582,038
5,716,091 5,782,907 4,410,841 4,523,596
1,204,771 1,033,440 1,075,729 2,481,559
65,987,138 63,067,935 65,741,262 68,394,526
12, 752,125 13,186, 236 13, 984, 368 14, 305,425
1,945,789 2,086,586 2,077,536 1,989,972
3,310,716 4,147,974 4,088,360 4,209,325
18,008,630 19,420,796 20,150,264 20,504,722
$ 83,995,768 $ 82,488,731 $ 85,891,525 $ 88,899,247
$ 3,858,862
970,594
196,506
8,425
2,793,185
726,869
2,563,002
8,053,435
$ 3,794,134 $ 3,742,937 $ 4,144,986
1,754,856 4,130,701 1,540,863
464 -
206,065 454,525 2,206,908
644,283 1,140,558 1,315,740
3,348,802 2,434,546 2,270,759
893,470 1,079,020 2,445,998
6,431,537 5,000,942 6,126,880
19,170, 878 17, 073,146 17, 983, 694 20, 052,136
14, 308, 945 15, 572, 709
1,406,440 1,482,288
4,168,313 5,286,233
1,548,280 2,039,890
15, 661,118 16, 580, 965
1,426,385 1,313,871
5,875,343 6,200,589
25,000 8,435
767,732 834,392
21,431,978 24,381,122
23,755,578 24,938,251
40,602,856 41,454,268
41,739,272 44,990,386
(46,816,260)
3,423,348
(45,994,789)
4,960,326
(47,757,567) (48,342,390)
3,605,314 4,433,529
$ (43,392,912) $ (41,034,463) $ (44,152,253) $ (43,908,861)
$ 14,870,621
17,105, 322
596,781
3,855,544
1,851,013
2,555,999
3,512,894
444,282
1,915,032
(600,000)
$ 14,320,085
19,334,152
677,971
4,019,288
2,061,098
2,749,140
5,321,281
475,345
2,124,185
(300,000)
$ 14, 562, 501 $ 17, 667, 590
18, 908,190 18, 807, 201
710,267 736,784
4,045,916 4,175,013
2,146,515 2,265,747
2,716,257 2,698,352
6,508,665 5,380,662
559,733 838,630
2,915,859 2,328,565
(300,000) (300,000)
46,107,488
50,782,545
52, 773, 904
54, 598, 542
600,000 300,000 300,000 300,000
600,000 300,000 300,000 300,000
$ 46,707,488 $ 51,082,545 $ 53,073,904 $ 54,898,542
3,314,576
(1,995,000)
10,048,082
(956,798)
8,921,651
10, 989, 681
1,319,576
(2,703,773)
4,023,348
$ 1,319.576
9,091,284
3,830,958
5,260,326
$ 9.091.284
8,921,651
5,016,337
3,905,314
$ 8,921,651
10, 989, 681
6,256,152
4,733,529
$ 10,989,681
142
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 2
CHANGES IN NET POSITION (continued)
(accrual basis of accounting)
Page 2 of 2
2018 2019 2020 2021 2022 2023
$ 10,763,025 $ 11,105,119 $ 10,792,736 $ 12,227,100 $ 14,314,373 $ 15,092,500
17,097,372 27,402,906 25,090,275 24,840,036 35,503,893 33,190,709
2,645,577
15,871,018 18,442,230 12,757,271 12,760,187 13,805,883 15,428,634
5,591,213 6,076,219 5,522,907 4,814,194 6,147,791 6,200,186
4,411,719 4,515,516 4,426,553 5,062,727 5,598,778 7,013,570
2,748,854 3,009,268 4,927,364 4,443,170 4,303,091 4,190,257
59,128,779 70,551,259 63,517,106 64,147,415 79,673,810 81,115,855
14,861,448 15,756,347 14,111,179 14,227,351 15,457,196 15,734,655
2,091,981 2,128,042 1,908,023 2,175,885 2,415,066 2,561,419
4,464,319 5,965,217 4,991,110 4,327,427 5,945,272 4,907,747
21,417,748 23,849,607 21,010,311 20,730,662 23,817,535 23,203,822
$ 80,546,527 $ 94,400,866 $ 84,527,417 $ 84,878,077 $ 103,491,345 $ 104,319,677
$ 5,989,077 $ 6,565,339 $ 7,481,748 $ 6,342,118 $ 9,058,384 $ 9,368,454
1,970,331 2,543,188 2,037,444 1,972,485 2,334,165 3,396,090
2,261,577 106,958 890,982 371,646 1,257,366 1,459,071
1,415,827 1,914,795 654,085 456,787 968,738 1,471,954
3,099,692 3,533,733 2,671,049 2,416,865 2,349,959 3,497,508
1,733,308 794,371 1,567,067 1,796,702 2,771,490 3,801,728
9,942,224 2,578,046 1,415,931 1,289,853 3,469,016 1,873,518
26,412,036 18,036,429 16,718,306 14,646,454 22,209,119 24,868,323
17,203,158 17,831,892 14,857,183 16,227,339 16,627,591 17,894,258
1,563,320 1,610,152 1,906,355 2,268,908 2,205,500 2,497,754
6,417,368 6,797,683 6,956,702 7,029,502 7,411,371 7,755,433
54,697 228,755 121,754 61,630 363,540 1,637
767,504 280,570 1,405,464 1,709,678 174,795 680,622
26,006,046 26,749,053 25,247,459 27,297,057 26,782,796 28,829,704
52,418,082 44,785,482 41,965,764 41,943,511 48,991,915 53,698,027
(32,716,743) (52,514,830) (46,798,800) (49,500,960) (57,464,691) (56,247,532)
4,588,299 2,899,445 4,237,148 6,566,394 2,965,262 5,625,882
$ (28,128,445) $ (49,615,384) $ (42,561,653) $ (42,934,566) $ (54,499,429) $ (50,621,650)
$ 18,008,738 $ 18,390,051 $ 19,839,475 $ 21,275,135 $ 21,852,111 $ 22,156,679
20,603,617 20,687,748 17,102,061 20,148,103 21,977,177 22,851,709
833,990 819,095 292,358 540,329 897,202 971,162
3,866,859 3,644,470 4,286,358 3,605,314 3,949,799 5,432,796
2,334,522 2,358,608 2,153,573 2,322,420 2,404,685 2,567,243
1,246,798 1,299,085 407,877 2,074,857 2,683,592 1,625,073
5,091,447 5,336,066 3,323,814 7,400,723 6,609,500 5,465,302
1,508,334 1,247,003 680,094 297,953 (107,223) 2,495,712
2,240,045 5,377,939 2,039,548 4,067,501 3,645,976 2,285,888
(300,000) 102,100 233,350 1,383,944 1,253,033 1,752,366
55,434,351 59,262,164 50,358,508 63,116,277 65,165,852 67,603,930
1,287,325
56,507
300,000 (102,100) (233,500) (1,383,944) (1,253,033) (1,752,366)
300,000 (102,100) (233,500) (1,383,944) (1,253,033) (408,533)
$ 55,734,351 $ 59,160,064 $ 50,125,008 $ 61,732,334 $ 63,912,819 $ 67,195,396
27,605,906 9,544,680 7,563,355 18,797,768 9,413,389
16,573,746
(3,234,674)
27,605,906 9,544,680 7,563,355 18,797,768 9,413,389 13,339,072
22,717,608 6,747,335 3,559,708 13,615,317 7,701,161 8,121,723
4,888,299 2,797,345 4,003,648 5,182,451 1,712,229 5,217,349
$ 27,605,906 $ 9,544,680 $ 7,563,355 $ 18,797,768 $ 9,413,389 $ 13,339,072
143
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
$70
O
$60
$50
$40
$30
$20
$10
$-
CITY OF TUKWILA, WASHINGTON
SCHEDULE 3
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Page 1 of 2
2014 2015 2016 2017
General Fund
Nonspendable $ 1,544,022 $ 1,340,914 $ 1,141,484 $ 927,373
Assigned 5,771,471 6,078,648 6,277,929 105,000
Unassigned 10,181,057 10,911,244 11,612,330 18,040,352
Total general fund $ 17,496,550 $ 18,330,806 $ 19,031,744 $ 19,072,725
All other governmental funds
Nonspendable $ 7,370,000 $ 7,645,000 $ 7,645,000 $
Restricted 3,973,726 5,446,074 45,986,463 51,236,443
Assigned 4,076,803 7,221,870 3,389,139 10,282,709
Unassigned (1,360,218) - - -
Total all other governmental funds $ 14,060,311 $ 20,312,943 $ 57,020,602 $ 61,519,152
Fund Balances
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
—.—General Fund —e—All Other Governmental Funds
144
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 3
FUND BALANCES, GOVERNMENTAL FUNDS (continued)
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Page 2 of 2
2018 2019 2020 2021 2022 2023
$ 718,190 $ 508,447 $ 292,498 $ 70,139 $ - $
181,078 397,736 660,425 491,143 527,347 631,622
19, 718, 745 19, 233, 980 18, 469, 248 23,180, 241 22, 464, 009 24, 359, 607
$ 20,618,013 $ 20,140,163 $ 19,422,170 $ 23,741,523 $ 22,991,356 $ 24,991,228
$ $ - $
32,531,984 48,694,929
11,819,299 17,705,991
5,483, 785
15,110, 785
$
7,231,746
12, 742, 716
$ - $
8,448,840 10,463, 564
12,179, 200 11, 569, 460
$ 44,351,283 $ 66,400,920 $ 20,594,569 $ 19,974,462 $ 20,628,040 $ 22,033,024
145
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (a)
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
page 1 of 2
2014 2015 2016 2017
Revenues
Taxes $ 44,441,783 $ 48,548,116 $ 49,588,492 $ 51,655,075
Licenses and Permits 2,114,638 2,242,256 2,129,221 2,749,137
Intergovernmental 14,298,126 11,839,883 10,067,413 12,739,774
Charges for Services 3,838,531 3,935,248 3,911,473 5,767,228
Fines and Forfeitures 264,934 261,457 318,459 325,216
Investment Income 479,219 475,345 541,299 826,864
Special Assessments 701,723 650,415 542,180 478,838
Miscellaneous 354,395 332,268 957,158 942,784
Total Revenues 66,493,348 68,284,989 68,055,695 75,484,915
Expenditures
General Government 7,505,173 7,708,394 9,405,989 9,585,551
Public Safety 27,254,312 29,035,165 29,366,198 30,899,412
Physical Environment 1,807,993 1,935,228 1,955,031 1,733,400
Transportation 5,820,601 5,792,668 5,238,468 6,532,195
Natural and Economic Environment 5,226,832 5,832,384 4,493,210 4,614,027
Culture and Recreation 4,680,651 4,350,052 4,543,339 4,664,129
Debt Service
Principal 2,288,988 2,480,507 2,602,782 3,713,928
Interest 961,457 1,125,609 1,093,584 2,603,869
Capital Outlay 10,150,912 11,426,274 8,358,450 14,761,715
Total Expenditures 65,696,921 69,686,279 67,057,051 79,108,226
Excess (Deficiency) of Revenues 796,428 (1,401,291) 998,643 (3,623,311)
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In 7,300,080 5,633,846 4,025,831 6,354,496
Transfers In - Assessment - -
Transfers Out (7,900,080) (5,933,846) (4,325,831) (6,654,496)
Lease financing - -
Sale of Capital Assets - (99,999)
General Obligation Bonds Issued 3,850,000 8,075,000 32,990,000 10,456,000
Refunding of General Obligation Bonds - (2,250,000)
LID Bonds Assessment - -
Premium on General Obligation Debt - 309,758 3,719,954 356,839
Total Other Financing Sources (Uses) 3,250,000 8,084,758 36,409,954 8,162,839
Change in Fund Balance Before Special Item 4,046,428 6,683,467 37,408,597 4,539,528
Special Item (1,995,000) (956,798)
Net Change in Fund Balances
$ 2,051,428 $ 5,726,669
$ 37,408,597 $ 4,539,528
Ratio of Debt Service Expenditures
to Total Non -Capital Expenditures
(a) All amounts are reported on the modified - accrual basis
Source:
Tukwila Finance Department
5.85% 6.19%
6.30% 9.82%
146
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (continued)
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
page 2 of 2
2018 2019 2020 2021 2022 2023
$ 51,988,591 $ 52,686,247 $ 47,560,434 $ 57,281,494 $ 60,381,870 $ 61,140,878
4,875,454 5,554,899 6,738,212 5,341,662 5,376,555 6,367,320
15,919,377 7,495,781 6,647,587 7,603,637 10,391,018 10,068,430
6,801,719 7,442,843 3,540,211 3,213,504 4,295,828 6,648,353
291,604 245,748 209,551 302,358 495,511 322,710
1,538,534 1,258,493 680,094 297,953 (247,462) 2,078,911
415,660 515,266 377,132 375,889 381,172 382,843
407,151 515,923 560,804 632,087 483,127 643,281
82,238,092 75,715,199 66,314,025 75,048,583 81,557,620 87,652,727
10,491,432 8,777,726 8,620,827 8,455,383 9,311,851 10,458,700
34,331,520 32,586,415 31,792,303 32,513,800 36,170,093 37,960,489
1,805,457 - - - -
10,015,938 9,717,429 6,346,303 6,612,101 7,421,513 8,012,225
4,686,528 4,752,115 4,659,575 5,917,214 5,977,731 6,198,158
4,852,138 5,328,994 4,551,092 4,614,034 5,172,376 5,530,360
4,092,196
2,977,523
47,601,490
120,854,221
(38, 616,129)
4,238,521
4,060,086
51,397,863
120,859,149
2,486,461
5,445,543
48,834,614
112,736,719
(45,143,950) (46,422,694)
3,000,560 8,375,416 6,970,163
5,097,555 4,951,500 4,717,159
10,381,479 7,125,461 8,714,193
76,592,127 84,505,941 88,561,445
(1,543,543) (2,948,321) (908,718)
7,742,669 7,233,686 8,867,680 9,904,409 14,544,789 10,150,571
3,119,513 - - - -
(8,042,669) (7,131,586) (8,634,330) (8,520,466) (13,291,756) (8,398,206)
98,699 2,561,209
- - 1,129,345 1,500,000 -
18,365,000 60,600,000 1,995,000 6,720,500
- (2,330,000) (3,991,000) -
1,809,036 6,013,637
22, 993, 549
(15,622,580)
66,715,737
21,571,787
(101,650)
(46, 524, 344)
5,242,789
3,699,245
2,851,732
(96,589)
4,313,575
3,404,857
$ (15,622,580) $ 21,571,787 $ (46,524,344) $ 3,699,245 $ (96,589) $ 3,404,857
9.65% 11.95% 12.41 % 12.23%
17.22% 14.64%
147
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 5
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Fiscal Year
Property(a) Sales & Use Utility(b) Excise Business Other Total Taxes
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
2019 18, 390, 051 20, 687, 748 3,644,470 5,336,066 1,299,085 3,177, 703 52, 535,122
2020 19,839,475 17,102,061 4,286,358 3,323,814 407,877 2,445,931 47,405,516
2021 21,275,135 20,148,103 3,605,314 7,400,723 2,074,857 2,862,749 57,366,880
2022 21,852,111 21,977,177 3,949,799 6,609,500 2,683,592 3,301,887 60,374,066
2023 22,156,679 22,851,709 5,432,447 5,465,302 1,625,073 3,538,406 61,069,616
Change 2014-2023 49.0% 33.6% 40.9% 55.6% -36.4% 44.6% 37.7%
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 and is currently assessed at a 16.0% rate.
Source:
Tukwila Finance Department
Tax Revenue by Source
0 Other
II Business
❑ Excise
• Utility
❑ Sales and Use
Tax
• Property
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
148
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 6
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected Within the Fiscal Year
of the Levy Total Collections to Date
Collections in
Fiscal Taxes Levied for Subsequent
Year Fiscal Year Amount % of Levy Years Amount % of Levy
2014 14,047,317 13,916,718 99.07% 123,482 14,040,200 99.95%
2015 14, 245, 846 14,113, 739 99.07% 132,108 14, 245, 846 100.00%
2016 14,516,623 14,375,358 99.03% 130,732 14,506,090 99.93%
2017* 17,551,561 17,262,965 98.36% 231,545 17,494,510 99.67%
2018 18,006,677 17,844,087 99.10% 152,758 17,996,846 99.95%
2019 18,796,071 18,648,149 99.21% 134,977 18,783,126 99.93%
2020 20, 044,161 19, 705, 761 98.31% 314,401 20, 020,161 99.88%
2021 21,049,466 20,796,453 98.80% 200,040 20,996,493 99.75%
2022 21,727,448 21,466,630 98.80% 125,151 21,591,781 99.38%
2023 22,070,488 21,738,755 98.50% - 21,738,755 98.50%
*First year of collection on 2016 voter -approved levy for Public Safety Plan
Source:
King County Office of Finance
Property Tax Levies and Collections
■ Taxes Levied
for Fiscal Year
■ Collected
Within the
Fiscal Year of
the Levy
2014 2015 2016 2017* 2018 2019 2020 2021 2022 2023
149
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 7
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Fiscal Year
Real Property
Personal Property
Public Utilities Total Assessed Value
Total Direct Tax
Rate
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
4,146,952,417
4,409,931,075
4, 763, 568,175
5, 242, 264, 743
5, 823, 887, 746
6,430,058,373
6, 809, 349, 200
6,890,134,092
7, 806, 820, 227
8,470,361,340
Note:
*Real, personal, and state public service property
Source:
King County Department of Assessments
744, 616, 273
810,422,092
849,695,435
780, 938, 084
678,435,063
760, 313, 756
826, 589, 881
882,202,099
954, 687, 537
833, 559, 342
have been assessed
162,510,057
174,971,951
150, 386, 219
161,740,436
171,517,113
214, 068, 301
247,118,481
238, 555, 841
208,944,784
225,204,285
at 100% of the estimated value.
5, 054, 078, 747
5, 395, 325,118
5, 763, 649, 829
6,184, 943, 263
6, 673, 839, 922
7,404,440,430
7, 883, 057, 562
8,010,892,032
8,970,452,548
9,529,124,967
2.84188
2.71073
3.05735
2.91864
2.81805
2.73416
2.67733
2.72071
2.45234
2.40193
$12,000
0
$10,000
$8,000
$6,000
$4,000
$2,000
$-
Assessed Value By Type
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Public Utilities
• Personal Property
IN Real Property
150
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 8
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1,000 OF ASSESSED VALUATION)
LAST TEN FISCAL YEARS
L.�
CITY OF TUKWILA
Central
Puget Sound
Regional
Emergency Tukwila Tukwila Pool Transit
General Special King Port of Medical School Dist Metropolitan Hospital Authority
Lew 1 e Total WA State Countylel Seattle Service #406 Flood Control Park District District #1 (RST3) Total
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 13.48427
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
2019 2.26293 0.47123 2.73416 3.02799 1.59993 0.11944 0.26500 3.42786 0.09199 0.15341 0.40069 0.19937 12.01984
2020 2.17985 0.49748 2.67733 3.08823 1.60421 0.11984 0.26499 3.78886 0.08909 0.15102 0.38511 0.19709 12.36577
2021 2.14677 0.57394 2.72071 2.81695 1.56491 0.11258 0.24841 4.21764 0.08146 0.15223 0.35434 0.18409 12.45332
2022 1.94728 0.50506 2.45234 2.31104 1.36024 0.09429 0.20922 3.69839 0.06717 0.15033 0.29817 0.15576 10.79695
2023 1.89534 0.50659 2.40193 2.51751 1.65891 0.10470 0.22678 3.51003 0.07067 0.15248 0.31254 0.16483 11.12038
Note:
(a) Includes King County Library District tax and Feny
Source:
King County Department of Assessments
$3.20000
$3.00000 -
$2.80000 -
$2.60000 -
$2.40000
$2.20000
$2.00000
Direct Property Tax Rates
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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CITY OF TUKWILA, WASHINGTON
SCHEDULE 9
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Percent of Percent of
2023 Total 2014 Total
2023 Assessed Assessed 2014 Assessed Assessed
Name Type of Business Valuation Value(a) Valuation Value )
Boeing Airplane company $ 530,356,127 5.57% $ 563,211,498 10.44%
Property Tax Resources LLC Commercial Properties 227,179,900 2.38% 66,917,200 1.24%
Segale Properties Commercial Properties 199,472,348 2.09% 186,552,266 3.46%
International Gateway East Data Center 195,396,154 2.05%
LIT Industrial LTD Partemership Commercial Properties 176,641,600 1.85%
Prologis Real Estate Development 160,318,900 1.68%
BKM Management Company Commercial Properties 159,147,600 1.67%
Westfield Property Department Stores 134,350,700 1.41% 291,267,487 5.40%
LIT Kent Valley Commercial Properties 78,461,000 0.82%
Macy's Logistics and Distribution 76,063,100 0.80%
KIR Tukwila 050 LLC Commercial Properties 85,051,300 1.58%
Qwest Corporation (US West Communications) Telephone Utility 80,999,544 1.50%
Anne Arundel Apartments LLC Apartments 52,802,552 0.98%
Boeing Employees Credit Union Credit Union 50,651,154 0.94%
CWWA Tukwila 1 LLC Investment Property 42,974,000 0.80%
Wig Properties LLC (JC Penny) Department Stores 37,147,522 0.69%
Notes:
(a) In 2023 the total assessed property value in the City of Tukwila ses $ 9,529,124,967
(b) In 2014 the total assessed property value in the City of Tukwila was $ 5,394,325,118
Source:
King County Department of Assessments
$ 1,937,387,429 20.33% $ 1,457,574,523 27.02%
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CITY OF TUKWILA, WASHINGTON
SCHEDULE 10
RETAIL SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
page 1 of 2
Major Industry Sector
2014 2015 2016 2017
Construction and Contracting $ 829,073 $ 1,255,650 $ 1,383,624 $ 1,413,773
Finance, Insurance & Real Estate 141,010 163,161 175,060 125,978
Manufacturing 322,189 281,501 269,117 177,788
Transportation, Communications & Utilities 549,126 743,746 746,115 721,413
Wholesale - Durable/Non-durable Goods 1,592,613 2,016,722 1,295,141 1,176,868
Retail Trade - General Merchandise 2,137,256 2,205,778 2,202,158 2,131,267
Retail Trade - Home Furnishings/Electronics 1,431,965 1,527,377 1,623,926 1,613,643
Retail Trade - Miscellaneous 1,973,478 1,954,150 2,032,967 2,077,239
Retail Trade - Clothing & Accessories 2,013,796 2,159,647 2,089,128 2,066,858
Retail Trade - Restaurants 1,611,860 1,703,187 1,751,724 1,886,139
Retail Trade - Automotive/Gas 765,765 825,143 743,468 800,580
Retail Trade - Building Materials 600,610 683,485 733,928 805,324
Service Industries - Business 1,073,511 1,265,789 1,467,620 1,436,825
Service Industries - Hotels 562,130 626,822 650,270 650,332
Service Industries - Other 274,497 273,514 253,089 267,544
All Other Categories 468,547 978,142 845,209 812,656
Total Retail Sales Tax Collections
$ 16,347,426 $ 18,663,814 $ 18,262,544 $ 18,164,227
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.
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CITY OF TUKWILA, WASHINGTON
SCHEDULE 10
RETAIL SALES TAX COLLECTIONS BY SECTOR (continued)
LAST TEN FISCAL YEARS
page 2 of 2
2018 2019 2020 2021 2022 2023
$ 1,623,112 $ 2,218,910 $ 2,389,360 $ 1,664,634 $ 1,704,697 $ 2,239,350
143,696 65,075 112,453 126,652 130,194 131,804
262,700 238,694 221,232 222,561 223,090 228,453
1,016,226 1,055,296 789,886 905,716 1,057,456 1,220,872
1,309,170 1,153, 607 1,101, 801 1,292,657 1,355,512 1,404, 809
2,187, 854 2,167, 481 1,836,829 1,886,826 1,739,575 1,926,985
1,649,843 1,715,419 1,419,767 1,866,419 1,875,690 1,902,006
2,131,804 2,089,854 1,994,491 2,897,074 2,856,649 3,018,848
2,084,482 1,996,280 1,186,857 1,920,971 1,837,386 1,958,083
2,009,051 2,080,421 1,273,300 1,815,023 2,160, 843 2,353,747
1,385,284 1,063,607 560,743 743,240 837,554 694,189
813,656 835,211 996,994 1,080,480 1,080,097 904,309
2,051,035 2,039,153 1,684,693 1,767,313 1,980,165 2,254,266
717,341 744,823 251,581 473,028 775,911 841,250
394,128 346,020 340,104 373,547 391,768 417,434
115,128 106,610 150,053 143,845 843,726 197,103
$ 19,894,510 $ 19,916,461 $ 16,310,144 $ 19,179,986 $ 20,850,313 $ 21,693,508
155
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 11
SALES TAX RATE DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
2014 2015 2016 2017 (b) 2018 2019 2020 2021(`) 2022 2023
BASIC SALES TAX RATES(e)
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% 0.35% 0.35% 0.35%
Regional Transit Authority 0.90% 0.90% 0.90% 0.90% 1.40% 1.40% 1.40% 1.40% 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% 10.00% 10.00% 10.00% 10.10% 10.10% 10.10%
Notes:
(a)
(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.
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 Tight -rail, commuter -rail, and express bus service, and improve access to transit facilities in King, Pierce, and Snohomish
Counties.
Effective January 1, 2021, sales and use tax within all of King County, except for Seattle, increased one -tenth of one percent (001), to three and five tenths of
one percent (0035). The tax will be used for affordable housing and realted services.
Source:
Washington State Department of Revenue Local Sales and Use Tax Rates.
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CITY OF TUKWILA, WASHINGTON
SCHEDULE 12
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Page 1 of 2
2014 2015 2016 2017
GOVERNMENTAL ACTIVITIES
General Obligation Bonds (°) $ 23,851,376 $ 30,084,437 $ 64,589,264 $ 69,576,786
Special Assessment (d) 6,687,500 6,082,500 5,412,500 4,805,000
Leases - - -
Total Governmental Activities 30,538,876 36,166,937 70,001,764 74,381,786
BUSINESS -TYPE ACTIVITIES
General Obligation Bonds - - -
Revenue Bonds 2,580,000 1,742,527 1,597,704 1,454,422
Public Works Trust Fund Loans 5,742,866 5,646,458 5,046,900 4,447,522
Leases - - -
Total Business -Type Activities 8,322,866 7,388,985 6,644,604 5,901,944
TOTAL PRIMARY GOVERNMENT $ 38,861,742 $ 43,555,922 $ 76,646,368 $ 80,283,729
Population (b) 19,920 19,300 19,540 19,660
Per Capita Personal Income (b) $ 72,696 $ 76,226 $ 79,323 $ 84,598
Percentage of Personal Income 2.68% 2.96% 4.95% 4.83%
Debt Per Capita $ 1,951 $ 2,257 $ 3,923 $ 4,084
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
$180
$160
$140
$120
$100
$80
$60
$40
$20
$0
Total Debt
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
158
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 12
RATIOS OF OUTSTANDING DEBT BY TYPE (continued)
LAST TEN FISCAL YEARS
Page 2 of 2
2018 2019 2020 2021 2022 2023
$ 85,625,504 $ 147,210,840 $ 144,037,716 $ 143,233,473 $ 134,569,428 $ 127,964,421
4,320,000 3,910,000 3,430,000 3,060,000 2,685,000 2,285,000
89, 945, 504 151,120, 840 147,467, 716 146, 293,473 137, 254,428 130, 249,421
1,304,763 1,154,027
3,848,055 3,248,587
997,413
2,649,119
840,235 677,704
2,075,702 1,476,234
515,144
902,817
5,152,818 4,402,614
3,646,532 2,915,937
2,153, 938 1,417, 961
$ 95,098,322 $ 155,523,454 $ 151,114,248 $ 149,209,410 $ 139,408,366 $ 131,667,382
19,800 20,930 21,360 21,798 22,620 22,780
$ 88,308 $ 92,026 $ 96,647 $ 108,212 $ 113,819 ***
5.44% 8.07% 7.32% 6.33% 5.41% ***
$ 4,803 $ 7,431 $ 7,075 $ 6,845 $ 6,163 $ 5,780
159
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Ratio of Net Net
Special Bonded Debt Bonded
Fiscal Gross Bonded Assessment Less Debt Net Bonded to Assessed Debt per
Year Population Assessed Value Debt Debt (a) Service Funds(b) Debt Value Capita
2014 19,920 5,054,078,747 23,851,376 6,687,500 1,687,497 28,851,379 0.57% 1,448
2015 19,300 5,395,325,118 30,084,437 6,082,500 1,910,940 34,255,997 0.63% 1,775
2016 19,540 5,763,649,829 64,589,264 5,412,500 1,962,497 68,039,267 1.18% 3,482
2017 19,660 6,155,826,776 69,576,786 4,805,000 1,855,519 72,526,267 1.18% 3,689
2018 19,800 6,685,919,176 85,625,504 4,320,000 1,903,729 88,041,775 1.32% 4,447
2019 20,930 6,673,839,922 147,210,840 3,910,000 1,995,748 149,125,092 2.23% 7,125
2020 21,360 7,883,057,562 144,037,716 3,430,000 1,353,344 146,114,372 1.85% 6,841
2021 21,798 8,010,892,032 143,233,473 3,060,000 1,653,564 144,639,909 1.81% 6,635
2022 22,620 8,970,452,548 134,569,428 2,685,000 1,653,564 135,600,864 1.51% 5,995
2023 22,780 9,529,124,967 127,964,421 2,285,000 1,735,429 128,513,992 1.35% 5,642
Note:
(a) Special assessment debt was issued in 2013 for the Klickitat Urban Access Project.
(b) Includes externally restricted fund balance available for debt service payment.
Sources:
U.S. Census Bureau
State of Washington Office of Financial Management
King County Department of Assessments
Tukwila Finance Department
$
$80
$60
$40
$20
$0
Net Bonded Debt
.„71.
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 14
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
AS OF DECEMBER 31, 2023
Jurisdiction
General Percentage Estimated
Obligation Debt Applicable to Applicable to
Outstanding Tukwila(1) Tukwila
Direct:
City of Tukwila $ 132,450,907 100.00% $ 132,450,907
Overlapping:
King County 886,503,000 1.03% 9,130,981
King County Library 13,937,971 1.59% 221,614
Port of Seattle 315,360,000 1.03% 3,248,208
Tukwila School District #406 66,070,159 99.80% 65,938,019
Total Overlapping Debt: 1,281,871,130 78,538,821
Total Direct and Overlapping Debt:
Sources:
King County Office of Finance
King County Office of Assessments
$ 1,414,322,037
$ 210, 989, 728
(1) The percentage of overlapping debt applicable is estimated using taxable county assessed property values.
$140
0
E $120
$100
$80
$60
$40
$20
$-
Direct and Overlapping Debt
n
■ City of Tukwila
■ King County
■ King County Library
• Port of Seattl e
• Tukwila School District
161
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 15
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2014 2015
2016
Page 1 of 2
2017
Debt Limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
Assessed Value as of December 31, 2023
Debt Limit (7.5% of assessed value)
Debt applicable to limit:
General obligation bonds
Other long-term debt
Less: Amount set aside for repayment of
general obligation debt and contracts payable
Total net debt applicable to limit
$ 356, 728, 027 $ 379, 055, 906 $ 432, 273, 737 $ 404, 649, 384
21, 727, 609 23, 288, 621 60, 208, 532 63, 662, 386
$ 335,000,418 $ 355,767,285 $ 372,065,205 $ 340,986,998
6.09%
$ 9,529,124,967
714, 684, 373
136, 889, 888
577, 794,485
1,735,429
Legal debt margin $ 712,948,944
Source:
Tukwila Finance Department
6.14%
13.93%
15.73%
162
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 15
LEGAL DEBT MARGIN INFORMATION (continued)
LAST TEN FISCAL YEARS
Page 2 of 2
2018 2019 2020 2021 2022 2023
$ 461, 687, 008 $ 500, 537, 994 $ 591, 229, 317 $ 600, 816, 902 $ 672, 783, 941 $ 714, 684, 373
79, 701, 909 135, 668,490 136, 578, 098 136,149, 662 141, 383, 534 136, 889, 888
$ 381, 985, 099 $ 364, 869, 504 $ 454, 651, 219 $ 464, 667, 240 $ 531, 400, 407 $ 577, 794,485
17.26% 27.10%
23.10% 22.66%
21.01% 19.15%
163
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 16
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
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 (°)
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 84,598 1,663,197 3,995 4,103 2,961 3.5%
2018 19,800 88,308 1,748,498 4,025 4,667 3,059 3.1%
2019 20,930 92,026 1,926,104 4,235 4,732 2,862 2.3%
2020 21,360 96,647 2,064,380 4,245 4,816 2,763 7.7%
2021 21,798 108,212 2,358,805 4,250 4,912 2,594 4.5%
2022 22,620 113,819 2,574,586 4,269 4,912 2,595 2.8%
2023 22,780 *** *** 4,281 5,251 2,715 3.5%
Notes:
(a) Per Capita Personal Income data shown is for King County. Specific data for City of Tukwila is not available.
(b) Personal Income estimates are calculated by multiplying Tukwila population by the Per Capita Personal Income
estimates for Tukwila and are based on a revised methodology that provides for more accuracy. See also Footnote (a).
(c) Unemployment rates are listed and estimated using the census -share method, reported as of December 31 each year.
*** 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
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Unemployment Rate
2014
2015
2016
2017 2018 2019
2020
2021
2022
2023
164
CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 17
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Name of Company/Employer
Product or Business
2023 Full &
Part -Time
Employment (a)
Rank
Percentage of
Total City
Employees
Rank
2014 Full &
Part -Time
Employment (b)
Percentage of
Total City
Employees
Boeing Employee's Credit Union
Boeing Company
WA State Dept. of Social & Health Svcs
King County Housing Authority
United Parcel Service
Amazon.Com Services LLC
Macy's
Costco
Hartun Glass Industries Inc
Cascade Behavioral Hospital LLC
Group Health Cooperative
King County Metro
Nordstrom
Real Time Staffing Services Inc.
Red Dot Corporation
Triumph Expo & Events Inc
Sub -total - Major Employers
All Other Employment
TOTAL EMPLOYMENT
Credit Union
Aircraft Manufacturing
Govemment
Housing Assistance
Shipping
E Commerce
Department Stores
Cash/Carry Warehouse
Manufacturing
Healthcare
Data Ctr/Lab/Pharmacy/Mfg.
Transit
Department Stores
Employment Agency
Heater/air Conditioning Equipment
Trade Show Services
Source:
(a) Washington State Department of Revenue - Business Licenses
(b) Tukwila Finance Department - Business Licenses
749 1 2.66%
617 2 2.19%
600 3 2.13%
555 4 1.97%
408 5 1.45%
393 6 1.39%
385 7 1.37%
297 8 1.05%
288 9 1.02%
282 10 1.00%
4,574
23,620
28,194
5
1
576 1.43%
7,516 18.69%
7 376 0.93%
4 823 2.05%
2 1,880 4.67%
3 914 2.27%
6 514 1.28%
8 338 0.84%
9 308 0.77%
10 300 0.75%
13,545
26,673
40,218
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CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 18
FULL TIME EQUIVALENT EMPLOYEE BY DEPARTMENT
LAST TEN FISCAL YEARS
2014 2%15 2016 2017 2018 2019 2020 2021 422 2023
DEPARTMENT
Administrative Services (a), (b) 10.00 10.00 24.00 24.00 24.00
Council 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
Mayor(a)• (b) 20.00 19.00 16.00 16.00 13.00 10.00 10.00 5.00 5.00 5.00
Human Resources (a) 4.00 4.00 4.00 4.00 4.00 - - - -
Finance (a) 12.00 12.00 12.00 11.00 11.00 12.00 12.00 12.00 13.00 14.00
Recreation 16.00 16.75 17.25 16.25 16.00 16.25 16.50 14.25 15.00 15.75
Community Development 21.63 21.00 23.75 23.00 25.00 24.00 22.00 29.00 28.75 28.75
Court 9.10 8.10 11.00 11.00 11.00 11.00 10.25 10.65 10.65 12.00
Police 89.00 93.00 93.75 92.75 97.00 98.00 84.00 86.00 81.00 93.00
Fire 67.00 70.00 71.00 72.00 73.00 66.00 64.00 61.00 64.00 64.00
Information Technology (b) 6.00 6.00 7.00 9.00 9.00 9.00 7.00 - - -
Public Works 31.00 32.00 32.00 27.00 27.00 27.20 22.00 27.00 24.00 29.00
Parks 7.00 7.00 8.00 8.00 9.00 9.00 7.00 9.75 9.75 8.50
Street 11.50 10.00 12.00 11.50 11.50 11.50 7.50 12.00 10.00 11.50
Water 7.00 6.00 7.00 7.50 7.50 7.40 7.50 6.00 6.00 6.00
Sewer 2.00 2.00 2.00 4.50 4.50 4.40 3.50 3.00 4.00 4.00
Golf 8.25 8.25 7.75 8.75 9.00 8.75 8.00 9.75 10.50 10.50
Surface Water 8.00 9.00 9.00 11.50 11.50 12.50 12.50 7.00 8.00 7.50
Equipment Rental 5.00 5.00 5.00 5.00 5.00 5.00 3.00 5.00 5.00 4.00
Metropolitan Park District Pool (d) 2.00 - - - -
334.48 337.10 346.50 346.75 352.00 350.00 314.75 329.40 326.65 345.50
Notes:
Based on filled positions not budgeted positions.
(a) Administrative Services includes Human Resources, Community Services and Engagement (previously reported in the Mayor's Office),
and Admin Services Administration as of 2019.
(b) Administrative Services includes City Clerk (previously reported in the Mayor's Office) and Information Technology (previously reported
as a separate department).
(c) Finance added a temporary full-time position specific to ARPA compliance. Position expires when funds are fully spent.
(d) On September 12, 2011, the Board of Commissioners approved the formation of the Tukwila Metropolitan Park District (MPD) Pool.
For the comprehensive annual financial report years of 2011 and 2012, the MPD Pool was treated as a discretely presented component
unit. In 2013 and 2014, the MPD presented as a blended component unit. Effective in 2015, the MPD is no longer a component unit.
Sources:
Tukwila Finance Department
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CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 19
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
FUNCTION
Police
Number of Calls for Sertice 29,840 32,946 34,229 33,123 33,288 32,465 30,079 31,338 34,345 34,805
Fire
Number of Responses 5,156 5,549 5,754 5,840 5,734 5,724 5,284 6,869 7,527 6,227
Total Fire Loss $2,738,080 $1,926,944 $2,821,016 $1,142,486 $527,687 $742,362 $3,187,074 $12,317,319 $1,482,921 $3,022,500
Total Inspections 3,850 2,331 1,860 1,951 2 7 5 927 611 1,421
Parks and Recreation
Class Participants
Community Ctr Admissions
Rounds of Golf Played
Pool Attendance
45,514
132,397
47,267
79,537
68,970
136,984
51,017
64,782
141,218
47,595
83,030
143,872
43,568
73,906
143,160
49,357
78,435
175,311
50,561
Street
Miles 79 79 79 79 79 79
Hours Maintaining 8,627 4,716 4,836 4,936 5,120 5,028
Streets/Sidewalks
Signalized Intersections 62 62 64 66 68 68
Hours Maintaining 3,012 2,408 2,135 2,986 2,415 2,701
Signals/Lights
27,741
24,804
58,028
79
3,764
74
1,810
26,000
20,726
64,203
79
2,866
74
2,113
38,407
38,507
58,856
79
3,548
74
2,393
50,936
46,073
60,011
79
5,566
74
2,714
Water Utility Services
Total Customers 2,126 2,145 2,160 2,176 2,185 2,195 2,205 2,215 2,208 2,289
Total Gallons; Water
(in thousands) 668,740 697,147 655,472 697,210 672,700 618,194 543,468 597,831 605,637 642,289
Sanitary Sewer
Total Customers
1,752 1,775
1,789 1,808
1,836 1,845
1,860 1,872
1,876 1,876
Surface Water
Total Customers 5,239 5,242 5,249 5,282 5,286 5,289 5,261 5,278 5,282 5,282
Licenses
Business Licenses 2,208 2,220 1,909 2,120 2,078 1,976 2,132 2,218 2,322 2,338
Outside Contractors 1,216 1,215 945 1,437 1,319 1,688 2,081 2,532 2,719 3,004
Permits
Building Permits 347 277 311 348 381 371 262 266 262 256
Mechanical Permits 216 154 192 198 169 193 165 166 173 217
Electrical Permits 1,223 1,119 1,175 1,047 1,046 1,059 875 928 933 1,202
Plumbing Permits 184 140 185 165 161 176 133 138 121 141
Public Works Permits 152 163 175 136 152 153 249 242 257 267
Libraries
Number of Libraries
Total Circulation
2 2 2 2 2 2 2 2
284,667 214,520 184,492 157,168 180,155 151,578 125,609 132,695
Sources:
Tukwila Departments, King County Library System
2 2
157,962 171,922
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CITY OF TUKWILA: 2023 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 20
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
FUNCTION
General Government
Total City Area (Square Miles)
Public Safety
Police:
Number of Vehicle Units
9.63 9.63 9.63 9.63 9.63 9.63 9.63 9.63 9.63 9.63
89 89 93 93 80 88 88 88 89 90
Fire:
Number of Fire Stations 4 4 4 4 4 4 4 4 4 4
Number of Engines/Rescue Trucks/Ladders 9 9 9 8 8 11 8 8 8 8
Number of Medical Aid Vehicles 1 1 1 1 1 1 1 1 2 2
Number of Hazardous Materials Trailer Units 2 2 2 2 1 1 1 1 1 1
Transportation
Paved Streets (lane miles) 188.2 188.2 188.2 188.2 188.2 188.2 188.2 188.2 188.2 188.2
Sidewalks (miles) 64.8 64.8 64.8 64.8 65.0 65.0 66.0 66.0 66.0 66.0
Number of Traffic Signals 63 63 74 76 74 74 74 74 74 74
Number of Streetlights Owned by Seattle City Light 902 902 902 902 908 910 910 910 910 910
Number of Streetlights Owned by Puget Sound Energy 187 187 187 187 187 187 187 187 187 187
Number of Streetlights Owned by City of Tukwila 1,224 1,224 1,224 1,224 1,224 1,224 1,224 1,224 1,224 1,224
Culture and Recreation
Parks Acreage 176 190 190 191 191 191 193 193 193 193
Number of Parks 19 19 19 20 20 20 21 21 21 21
Golf Course Acreage 77.26 77.26 77.26 77.26 77.26 77.26 77.26 77.26 77.26 77.26
Maintained Trails (miles) 15 15 15 15 15 15 13 13 13 13
Number of Playgrounds 11 11 11 11 11 11 11 11 11 11
Visitor Center 1 1 1 1 1 1 1 1 1 1
Community Center/Recreation Facilities 1 1 1 1 1 1 1 1 1 1
Number of Libraries 2 2 2 2 2 2 2 2 2 2
Water
Water Distribution Mains (miles) 49 49 49 49 49 49 49 49 50 50
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) 576 577 577 579 579 589 601 601 603 603
Vehicles 9 9 9 9 8 8 8 8 8 8
Sewer
Sanitary Sewers (miles) 37 37 37 39 39 39 39 40 40 40
Average Daily Dry Weather Flow (millions of gallons) 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5
Vehicles 4 4 5 5 3 3 3 3 3 3
Surface Water
Storm Drains (miles) 70.0 70.5 70.5 97.4 97.4 97.4 97.4 111.0 111.0 111.0
Vehicles 8 8 8 8 9 9 8 8 8 8
Sources:
Various City of Tukwila departments
168