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2024 Comprehensive Annual Financial Report (CAFR)
ILA m: ILA wqs p Z aCityof • Washington 1906 The city of opportunity, the community of choice To provide superior services that support a safe, inviting and healthy environment for our residents, businesses and guests. UA community of inviting neighborhoods and vibrant business districts Caring Professional Responsive f Cultivate community ownership of shared spaces. ♦ Build a broad and collaborative approach to preventing crime and increasing the sense of safety. f Focus City planning and investments on creating a connected, dynamic urban environment. f Use City efforts and investments to realize established visions for specific sub -areas. f 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. f Strive for excellent education, vocational supports, and personal growth opportunities through effective partnerships and City services. f Encourage maintenance, improvements and diversity in the City's housing stock. ♦ 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. f Encourage development, maintenance, improvements, and diversity in the City's stock of business space. UA high -performing and effective organization f Use Tukwila's Vision, Mission, and Strategic Plan to focus and prioritize City efforts. f Advance Tukwila's interests through participation in regional partnerships. f Continue to develop as an organization and support individual growth. f Ensure City facilities are safe, efficient and inviting to the public. f Ensure the long-term fiscal sustainability of the City. © 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. f Promote a positive identity and image of Tukwila. The City of Tukwila, Washington ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended December 31, 2024 Prepared by the City of Tukwila, Finance Department Aaron BeMiller, Finance Director Thomas McLeod, MAYOR 2024 TUKWILA CITY COUNCIL Mohamed Abdi, Council President Armen Papyan De'Sean Quinn Jovita McConnell Hannah Hedrick Tosh Sharp Dennis Martinez J% ILA wq CITY OF TUKWILA: 2024 ACFR TABLE OF CONTENTS ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended December 31, 2024 TABLE OF CONTENTS I. INTRODUCTORY SECTION Page Administrative Organizational Structure, Principal Officials, and Council Committees ........................... iii Letterof Transmittal............................................................................................................... 1 II. FINANCIAL SECTION Auditor's Report..................................................................................................................... 9 Management's Discussion and Analysis...................................................................................... 13 Basic Financial Statements Government -wide Financial Statements: Statement of Net Position.............................................................................................. 26 Statement of Activities.................................................................................................. 27 Fund Financial Statements: Balance Sheet — Governmental Funds............................................................................. 28 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position............................................................................................ 29 Statement of Revenues, Expenditures, and Changes in Fund Balance — Governmental Funds............................................................................ 30 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................... 31 Statement of Net Position — Proprietary Funds................................................................... 32 Statement of Revenues, Expenses, and Changes in Net Position — Proprietary Funds................................................................................... 33 Statement of Cash Flows — Proprietary Funds................................................................... 34 Statement of Fiduciary Net Position — Fiduciary Funds ........................................................ 36 Statement of Changes in Fiduciary Net Position — Fiduciary Funds ........................................ 37 Notes to the Financial Statements...................................................................................... 38 Required Supplemental Information: Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual GeneralFund.............................................................................................................. 96 Arterial Street Capital Project Fund................................................................................. 97 Local Improvement District #33 Debt Service Fund............................................................. 98 Land & Park Acquisition Capital Project Fund................................................................... 99 Notes to the Required Supplementary Information................................................................. 101 Schedule of Proportionate Share of the Net Pension Liability ................................................... 102 Schedule of Employer Contributions................................................................................... 104 Firemen's Pension Trust Fund.......................................................................................... 106 Retiree Medical and Long -Term Care Benefits for LEOFF I Employees ..................................... 108 CITY OF TUKWILA: 2023 ACFR TABLE OF CONTENTS TABLE OF CONTENTS - continued Page Combining and Individual Fund Financial Statements and Schedules Combining Balance Sheet — Non -Major Governmental Funds .................................................. 110 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — Non -Major Governmental Funds............................................................ 111 Combining Balance Sheet — Non -Major Special Revenue Funds .............................................. 112 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — Non -Major Special Revenue Funds......................................................... 113 Combining Balance Sheet — Non -Major Debt Service Funds ...................................................... 114 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — Non -Major Debt Service Funds............................................................... 115 Combining Balance Sheet — Non -Major Capital Project Funds ................................................... 116 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — Non -Major Capital Project Funds............................................................. 117 Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual: Hotel/Motel Tax Special Revenue Fund............................................................................. 118 Drug Seizure Special Revenue Fund.............................................................................. 119 Special Assessment Bonds Guaranty Fund..................................................................... 120 Unlimited Tax General Obligation Debt Service Fund ......................................................... 121 Limited Tax General Obligation Debt Service Fund............................................................ 122 Residential Street Capital Project Fund............................................................................ 123 Urban Renewal Capital Project Fund.............................................................................. 124 General Government Improvements Capital Project Fund .................................................... 125 Fire Improvements Capital Project Fund........................................................................... 126 Public Safety Plan Capital Project Fund........................................................................... 127 City Facilities Capital Project Fund................................................................................... 128 Combining Statements of Net Position — Internal Service Funds ................................................ 131 Combining Statement of Revenues, Expenses, and Changes in Net Position — Internal Service Funds............................................................................. 132 Combining Statement of Cash Flows — Internal Service Funds .................................................. 133 III. STATISTICAL SECTION FinancialTrends Information......................................................................................................... 136 Revenue Capacity Information...................................................................................................... 145 DebtCapacity Information............................................................................................................. 154 Demographic and Economic Information...................................................................................... 160 OperatingInformation.................................................................................................................... 162 CITY OF TUKWILA: 2024 ACFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS Administrative Organizational Structure and Principal Officials as of December 31, 2024 RESIDENTS CITY COUNCIL I MAYOR Thomas McLeod CITY ADMINISTRATOR Marty Wine FIRE Puget Sound Regional Fire Authority" Brian Carson STRATEGIC INITIATIVES COMMUNITY FINANCE & GOVERNMENT DEVELOPMENT Aaron Be Miller RELATIONS Nora Gierloff Brandon Miles 'Services provided by outside entities. Finance & Governance Committee De'Sean Quinn, Chair Tosh Sharp, Member JmAta McConnell, Member Community Services & Safety JmAta McConnell, Chair De'Sean Quinn, Member Hannah Hedrick, Member 2024 Council Committees Council President Mohamed Abdi MUNICIPAL COURT Kimberly Walden CITY ATTORNEY s OFFICE` Kari Sand POLICE DEPUTY CITY Eric Drever ADMINISTRATOR Pete Mayer Transportation & Infrastructure Services Armen Papyan, Chair Dennis Martinez, Member Hannah Hedrick, Member Planning & Community Development Dennis Martinez, Chair Tosh Sharp, Member Armen Papyan, Member n PARKS & RECREATION Pete Mayer PUBLIC WORKS Vacant CITY OF TUKWILA: 2024 ACFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS iv City of Tukwila 6200 Southcenter Blvd, Tukwila, WA 98188 Thomas McLeod, Mayor July 15, 2025 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 2024 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, 2024. 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. CITY OF TUKWILA: 2024 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, 2023 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 22,930, making it the 51st 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 2024. 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. CITY OF TUKWILA: 2024 ACFR LETTER OF TRANSMITTAL LOCALECONOMY 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 2.34 million in December of 2024, which was an increase compared to the previous year. At the same time the already low unemployment rate decreased from 3.9% to 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, , Sabey Corporation, Starfish Space, and Seattle Chocolate Company. 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 we anticipate 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.. The number of building permits declined by 15% from 2023 to 2024 but the total permit valuation remained flat at $186 million. 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 $2.6 billion dollars in taxable retail sales in 2024. The total retail sales tax revenue amounted to $22.10 million in 2024, representing an increase of 1.9% from the $21.69 million collected in the prior year (Statistical section, schedule 10). Although this shows a modest increase over 2023 levels, most of this increase can be attributed to high inflation that continued into 2024. 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 CITY OF TUKWILA: 2024 ACFR LETTER OF TRANSMITTAL 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 $9.95 billion, which is an increase of 4.42% from 2023, allowing the City to pursue a long-term capital investment program. The City's 2025-2030 Capital Improvement Program, which is adopted every two years, anticipates approximately $158 million in general government capital projects, with only $12.1 million of that paid by transfers from the General Fund. 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 2024. 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 Transportation The City of Tukwila continued significant progress on the 42nd Avenue S Bridge Replacement project in 2024. Originally built in 1949, this critical infrastructure is approaching the end of its serviceable lifespan, necessitating replacement to maintain essential connectivity for residents and the BNSF Railroad Intermodal Yard. Key project milestones were achieved, including the Type, Size, and Location (TS&L) report, and the 30%, 60%, and 90% plan reviews. Following feedback from stakeholders and permitting agencies, particularly addressing environmental considerations and comments from the Duwamish Tribe, the temporary bridge component was removed from the scope. Final construction documents are expected to be ready by August 2026. In April 2025, a significant funding challenge arose when state -level budget decisions deferred the anticipated $17 million in Move Ahead Washington funds for the bridge, pushing funding availability to 2029 or later. The City continues actively seeking alternative federal grant opportunities to address an additional $14.4 million in rising construction costs. Additionally, the City advanced the Transportation Element of the Comprehensive Plan update in 2024, which includes the establishment of a Local Road Safety Plan, with completion of that portion anticipated by late 2025. Utilities The City continued critical infrastructure upgrades across all utility enterprise funds. In the Sewer Fund, major projects planned for the 2025-2026 biennium include the Sewer Lift Station 12 Retrofit, Sewer Lift Station 5 Rebuild, and Southcenter Blvd. Sewer improvements, which will enhance system capacity and operational reliability. The Annual Sewer Repair Program addresses ongoing rehabilitation needs, while the Ryan Hill Sewer Revitalization project focuses on transitioning residents from failing septic systems to a modernized sewer network. CITY OF TUKWILA: 2024 ACFR LETTER OF TRANSMITTAL In the Surface Water Fund, key capital improvements were directed at drainage and water quality projects to support compliance with the National Pollutant Discharge Elimination System (NPDES) permit. Projects such as the S 131st Place Drainage Improvements, Gilliam Creek Fish Barrier Removal, and Chinook Wind Extension are designed to reduce flooding and improve habitat. The Water Fund saw continued investment in system resilience through planned water main replacements and the feasibility analysis of the new Tukwila Water Reservoir. This reservoir will increase water storage capacity and ensure adequate pressure and supply for emergencies and future demand. These investments are supported by planned rate increases, grant funding, and a continued focus on phased infrastructure improvements AWARDS AND ACKNOWLEDGEMENTS For the fiscal year ended December 31, 2022, 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 36th time. While the City ultimately did not submit for this award for the fiscal year that ended December 31, 2023, 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 2024 Annual Comprehensive Financial Report take great pride in their work, and the entire team who worked on this project is to be commended. Respectfully submitted, 6 4Jl Aaron BeMiller, Finance Director CITY OF TUKWILA: 2024 ACFR LETTER OF TRANSMITTAL CITY OF TUKWILA: 2023 ACFR LETTER OF TRANSMITTAL CITY OF TUKWILA: 2023 ACFR LETTER OF TRANSMITTAL Office of the Washington State Auditor Pat McCarthy Mayor and City 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 then ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. 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, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GARS) 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. 9 Matters of Emphasis As discussed in Note 1 to the financial statements, in 2024, the City adopted new accounting guidance, Governmental Accounting Standards Board Statement No. 101, Compensated Absences. Our opinion is not modified with respect to this matter. 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; 10 • 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; • 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 as listed in the table of contents 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. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. This information has been subjected to auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. 11 Other Information The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditor's report thereon. Management is responsible for the other information included in the financial statements. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or provide any assurance thereon. In connection with the audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING In accordance with Government Auditing Standards, we will also issue our report dated July 1, 2025, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. That report will be issued under separate cover in the City's Single Audit Report. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Sincerely, Pat McCarthy, State Auditor Olympia, WA July 1, 2025 12 CITY OF TUKWILA: 2024 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2024 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, 2024. 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, 2024, the City of Tukwila's total assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $385.3 million. Of this amount, $79.9 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 $7.0 million, or 2.0%. Governmental activities increased $1.9 million due in part to generally improving revenues, offset by rising expenditure costs. Business -type activities increased $5.1 million which was primarily driven by rate increases which helped offset rising costs. • At the close of the current fiscal year, the City of Tukwila's governmental funds reported combined fund balances of $48.9 million, an increase of 1.9 million (4.0%). Approximately 49.17% ($24.0 million) of the fund balance is available for spending at the City's discretion (unassigned fund balance). OVERVIEW OF THE FINANCIAL STATEMENTS The discussion and analysis is intended to serve as an introduction to the City of Tukwila's basic financial statements. The City's basic financial statements are presented in three parts: 1. Government -wide financial statements 2. Fund financial statements 3. Notes to the financial statements This report also includes supplementary information intended to furnish additional detail to support the basic financial statements. Government -wide Financial Statements The government -wide financial statements provide both long-term and short-term information about the City's overall financial status, in a manner similar to private -sector business. The Statement of Net Position presents financial information on all the City's 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 as (but not limited to) uncollected taxes, unpaid vendor invoices for goods or services received during the year and 13 CITY OF TUKWILA: 2024 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS 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, four are considered major (the general fund, the arterial street fund, the local improvement district #33 fund, and the land acquisition rec & parks 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 14 CITY OF TUKWILA: 2024 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 government -wide and individual fund statements. Enterprise funds report the same functions presented as business -type activities in 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. Required Supplementary 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 9. Other Information The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information. 15 CITY OF TUKWILA: 2024 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 $358.3 million at the close of the most recent fiscal year. Total net position increased by $7.6 million (2.0%) when compared to 2023. CITY OF TUKWILA'S NET POSITION (in thousands) By far, the largest portion of the City's net position ($274.6 million or 71.3%) 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 ($30.7 million or 8.0%) 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 $14.1 million is restricted in governmental activities funds. The remaining $14.9 million in restricted net position is related to tourism, net pension assets, and ongoing debt obligations. The remaining net position balance ($79.9 million, or 20.8°/x) 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 decreased $5.0 million (41.6%) from the prior fiscal year. The reasons for this overall increase are discussed in the following sections for governmental activities and business -type activities. 16 Governmental ActiHties Business -type Activities Total 2024 2023 2024 2023 2024 2023 Current and other assets $88,569 $92,626 $36,645 $31,707 $125,214 $124,333 Capital assets, net of accumulated depreciation 320,790 324,239 77,532 77,586 398,321 401,825 Total assets 409,359 416,865 114,177 109,293 523,536 526,158 Deferred Outflows of Resources 16,581 13,879 1,189 816 17,771 14,695 Long-term liabilities outstanding 140,493 140,084 2,091 2,343 142,583 142,427 Other liabilities 7,567 13,502 1,228 578 8,795 14,080 Total liabilities 148,060 153,586 3,318 2,921 151,378 156,507 Deferred Inflows of Resources 4,394 6,045 266 605 4,660 6,650 Net position Net imrestment in capital assets 197,716 196,460 76,863 76,180 274,579 272,640 Restricted 29,048 33,388 1,694 1,262 30,742 34,650 Unrestricted 46,722 41,264 33,226 29,141 79,947 70,405 Total net position $273,486 $271,112 $111,782 $106,583 $385,268 $377,695 By far, the largest portion of the City's net position ($274.6 million or 71.3%) 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 ($30.7 million or 8.0%) 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 $14.1 million is restricted in governmental activities funds. The remaining $14.9 million in restricted net position is related to tourism, net pension assets, and ongoing debt obligations. The remaining net position balance ($79.9 million, or 20.8°/x) 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 decreased $5.0 million (41.6%) from the prior fiscal year. The reasons for this overall increase are discussed in the following sections for governmental activities and business -type activities. 16 CITY OF TUKWILA: 2024 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS CITY OF TUKWILA'S CHANGES IN NET POSITION (in thousands) Expenses: Governmental Activities 2024 2023 Business -type 2024 Activities 2023 Total 2024 2023 Revenues: General government 21,582 15,093 21,582 Program revenues Public safety 44,219 33,191 (1,753) (1,752) 44,219 Charges for services $18,560 $19,193 $29,191 $28,147 $47,751 $47,341 Operating grants and contributions 2,803 3,802 35 2 2,838 3,803 Capital grants and contributions 2,074 1,874 1,499 681 3,573 2,554 General revenues Interest on long-term debt 4,031 4,190 - - 4,031 Property taxes 23,186 22,157 - - 23,186 22,157 Sales and use taxes 24,846 22,852 - 5,724 24,846 22,852 Hotel/Motel taxes 984 971 - 2,675 984 971 Utility taxes 5,901 5,433 - 25,916 5,901 5,433 Interfund utility taxes 2,685 2,567 - 2,685 2,567 Business taxes 3,895 1,625 - 3,895 1,625 Excise taxes 5,416 5,465 - - 5,416 5,465 Investment earnings 2,555 2,496 1,401 1,287 3,957 3,783 Miscellaneous 2,528 2,286 680 57 3,208 2,343 Total revenues 95,435 90,720 32,806 30,174 128,241 120,894 Expenses: 119 9,604 6,890 6,970 7,008 16,574 General government 21,582 15,093 21,582 15,093 Public safety 44,219 33,191 (1,753) (1,752) 44,219 33,191 Transportation 14,194 15,429 5,137 5,218 14,194 15,429 Economic environment 5,458 7,014 - - 5,458 7,014 Culture and recreation 5,832 6,200 5,137 5,218 5,832 6,200 Interest on long-term debt 4,031 4,190 - - 4,031 4,190 Water/sewer - - 17,517 15,735 17,517 15,735 Surface Water 271,614 262,991 5,724 4,908 5,724 4,908 Foster golf course - - 2,675 2,561 2,675 2,561 Total expenses 95,316 81,116 25,916 23,204 121,232 104,320 Increase (decrease) in net position before 119 9,604 6,890 6,970 7,008 16,574 transfers Transfers 1,753 1,752 (1,753) (1,752) - - Change in net position before special item 1,872 11,356 5,137 5,218 7,008 16,574 Special Item -transfer of Fire services - (3,235) - - - (31235) Change in net position 1,872 8,122 5,137 5,218 7,008 13,339 Net position -beginning of period 271,113 262,991 106,583 101,365 377,695 364,356 Change in Accounting Principle 501 - 63 - 565 - Net position -beginning balance, as restated 271,614 262,991 106,646 101,365 378,260 364,356 Net position -end of period $273,486 $271,113 $111,782 $106,583 $385,268 $377,695 Governmental Activities During the current fiscal year, net position for governmental activities decreased $6.3 million (77.0%) from the prior fiscal year for an ending balance of $237.5 million. The primary reasons for this are: General Government expenses increased by $6.5 million compared to the prior year, 43.0% over the previous year. This increase included $3.1 million in increases to salaries and benefits, due to pay increases as well as retro pay back to 2023, due to protracted labor negotiations. Additionally, $2.6 million in increases to professional services, due to caring for asylee needs. Public Safety expenses increased by $11.0 million compared to the prior year, 33.2% over the previous year. This increase included $9.7 million in increases to salaries and benefits, due to a $7.6 million increase in pension and reported compensated absences benefits recognized during 2024, as well as $2.1 million in increased insurance liabilities. Additionally, there was an increase of $1.7 million in increased professional services, due to the transfer of fire services. 17 CITY OF TUKWILA: 2024 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS • These increases were offset by an increase of $1.0 million in property taxes, $2.0 million in sales taxes, and $2.3 million in increased business and occupancy taxes collected during 2024. REVENUES BY SOURCE — GOVERNMENTAL ACTIVITIES Oth Utility taxes 9% Sales and us( 26% Otherrevenue C 6/ Charges for services Ina/ aerating grants & contributions 3% .apital grants & contributions 2% (taxes /k PROGRAM REVENUES AND EXPENSES — GOVERNMENTAL ACTIVITIES $36,000,000 ■ Program revenues $33,000,000 $30,000,000 ■ Expenses $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 �e� �ai�Qn fat �a[�S�Q E��'to pec (1 0111-1 �a�a a�' atu�aR N 18 CITY OF TUKWILA: 2024 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 $5.1 million (4.8%) to reach an ending balance of $111.8 million. The overall growth is attributable to the following factors: • In the Water Utility, total net position increased $180 thousand (0.8%). • In the Sewer Utility, total net position increased by $675 thousand (2.6%). • In the Surface Water Utility, total net position increased by $4.2 million (8.1 • Of the $111.8 million total net position, $33.2 million (29.7%) 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 }urface water 50% Foster golf course 6% Water 19 Sewer 24% CITY OF TUKWILA: 2024 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 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,o0o $20,000,0oo $10,000,000 $0 Water ■ Spendable(Unrst Net Position ■ Total Net Position Seager Surface water The following chart depicts the revenues and expenses for business -type funds: BUSINESS -TYPE ACTIVITY REVENUES & EXPENSES (before Capital Contributions & Transfers) Foster golf course $12,000,000 ■ Revenues $10,000,000 ■ Expenses $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Water Sewer Surface Water Foster Golf Course 20 CITY OF TUKWILA: 2024 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, 2024, the City's governmental funds had combined fund balances of $48.9 million, an increase of $1.9 million (4.0%). 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 2024 is as follows: • General Fund ($269,003) • Arterial Street Fund $1,163,953 • Local Improvement District #33 $1,310 • Other Governmental Funds $987,751 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 2024, the general fund had a fund balance of $24.7 million, with $24.0 million (97.3%) of the balance classified as unassigned and available to meet the City's general obligations. Unassigned fund balance decreased from $24.4 million in 2023 to $24.0 million in 2024 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 a $994 thousand increase in tax revenue over the prior year and a reduction in planned projects. The Land, Acquisition, Rec & Park Development Fund was previously reported as a non -major fund. During the 2024 ACFR preparation process, it was deemed to be a major fund. The Tukwila Community Center HVAC project was paid for out of this Fund in 2024 and the resulting increase in activity caused it to qualify as a major fund. All costs borne by the Fund are expected to be recovered through grant funding. The Public Safety Plan Fund was previously reported as a major fund. During the 2024 ACFR preparation process, it was deemed to be a non -major fund since the activities currently flowing through this fund are minimal compared to prior years. Activities have slowed due to the completion of the major projects previously managed via this fund, such as the Tukwila Justice Center. The City Facilities Fund was previously reported as a major fund. During the 2024 ACFR preparation process, it was deemed to be a non -major fund since the activities currently flowing through this fund are minimal compared to prior years. Activities have slowed due to the completion of the major projects previously managed via this fund, such as the Minkler Public Works Shops. Therefore, the effects of any change in fund balance for this fund is reflected within the narrative of Other Governmental Funds. 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 2024 and lodging tax revenues exceeded budget resulting in an increase in ending fund balance in the lodging tax fund of $659 thousand. Additionally, planned residential street projects did not occur, resulting in an increase to fund balance of $348 thousand. PA CITY OF TUKWILA: 2024 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS The following chart shows the relative fund balances for governmental funds: Arterial street fund 15% General fund 51% GOVERNMENTAL FUNDS — FUND BALANCES Local Imprvmnt Dist #33 1% Capital project funds 22% ecial revenue funds 8% Debt service funds 3% The general fund revenue increased a total of $5.0 million, which is comprised of the following sources: GENERAL FUND REVENUE INCREASES/DECREASES — BY SOURCE Taxes $4,971,503 $5,0©0,000 $4,000;000 $3,000,000 $2, 000, 000 Charges for services $1,000,000 $809,324 Fines and forfeitures $131,731 Miscellaneous $104,368 Licenses and permits • Investment earnings ($416,508) Intergovernmental ($7,517) {$1,0(70,000] {$572,145} `0a CITY OF TUKWILA: 2024 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 2024 at $33.2 million, an increase of $4.1 million 14% from 2023. 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 2024, 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 2024: • The city recognized their remaining $1.7 million in ARPA funding as an offset to an increase in primarily public safety expenditures due to protracted negotiations of and retroactively applicable salary increases. • An increase of $1 million was made to support additional fire services overtime. • An increase of $313 thousand was made to support recreation department services to senior adult programs, youth programs, and general administrative functions of the department. • An increase of $122 thousand was made to support community development's TDM Program. CAPITAL ASSETS The City's investment in capital assets for both its governmental and business -type activities as of December 31, 2024 totaled $398.3 million (net of accumulated depreciation), a decrease of $5.8 million (-1.4%) from 2023. 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) More detailed information on capital assets is provided in Note 7 to the financial statements. 23 Governmental Activities Business -Type Activities Total 2024 2023 2024 2023 2024 2023 Land $ 61,580,992 $ 61,580,992 $ 2,350,969 $ 2,350,969 $ 63,931,961 $ 63,931,961 Buildings & Structures 96,773,589 99,322,742 7,940,672 8,360,979 104,714,260 107,683,721 Other Improvements 3,912,104 4,710,734 61,489,531 63,387,377 65,401,635 68,098,111 Machinery and Equipment 5,176,605 5,428,743 2,094,757 1,815,433 7,271,362 7,244,176 Leased Equipment 4,193,498 2,188,530 - - 4,193,498 2,188,530 Subscription based ITAgreements 1,646,245 1,952,342 1,646,245 1,952,342 Infrastructure 125,341,738 131,986,055 - - 125,341,738 131,986,055 Construction in Progress 22,164,779 17,068,585 3,655,859 1,670,707 25,820,638 18,739,292 Total $ 320, 789, 550 $ 324, 238, 723 $ 77, 531, 788 $ 77, 585, 466 $ 398, 321, 337 $ 401, 824,188 More detailed information on capital assets is provided in Note 7 to the financial statements. 23 CITY OF TUKWILA: 2024 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS Capital asset events during the current fiscal year included the following: Governmental Activities: Fleet Equipment: The fleet fund added $3.9 million in new vehicles and equipment (purchases and leases) and disposed of $646 thousand in surplus & retired fleet assets. Technology and Information Services added $561 thousand in new subscription -based IT assets while $285 thousand of contracts related to those services expired. Construction in Progress (CIP): Construction in progress increased $5.1 million compared to the prior year. The increase in construction projects is consists of $2.3 million in costs for the Public Works Shops Phase Il, $1.2 million in costs related to the Tukwila Community Center HVAC replacement project, $994 thousand in costs related to the Green River Trail Improvements, $432 thousand in costs related to the 42nd avenue S Bridge Replacement, and $231 thousand in smaller projects and Fleet vehicles in process of being upfitted for use. Business Type Activities: • Water fund projects: $209 thousand was added to CIP in improvements to the water reservoir and pump station as well as the S 1491h and S 150th streets watermain replacements. • Sewer fund projects: $105 thousand was added to CIP as work continues on the rebuild of lift station #5. • Surface Water fund project: $1.6 million was added to CIP as surface water improvements related to the storm water quality retrofit, Gilliam creek fish barrier removal, Nelsen salmon habitat side channel, and the S 131St place drainage improvement projects continue into 2024. LONG-TERM DEBT The City had total long-term obligations outstanding of $123.9 million at the end of the current fiscal year. Of this amount, $104.8 million is general obligation bonds which is backed by the full faith and credit of the City, $4.3 million of general obligation direct placement/borrowings, $348 thousand is revenue bonds for the water/sewer and surface water utilities, $329 thousand in public works trust fund loans, $4.0 million due to other governments, $8.3 million premium on bonds, and the remaining $1.9 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 "AaY with Moody's for its general obligation debt. The following schedule summarizes the City's long-term debt: More detailed information on long-term debt, including debt limitations, is provided in Note 11 to the financial statements. 24 Governmental Activities Business -type Activities Total 2024 2023 2024 2023 2024 2023 General obligation bonds $ 104,770,000 $ 109,595,000 $ $ $ 104,770,000 $ 109,595,000 General obligation- direct placement/borrowings 4,275,000 5,252,000 4,275,000 5,252,000 Revenue bonds - - 347,781 515,144 347,781 515,144 Premium on bonds issued 8,306,296 8,925,467 - - 8,306,296 8,925,467 Special assessment bonds 1,895,000 2,285,000 - - 1,895,000 2,285,000 Public Works Trust Fund Loans - - 329,400 902,817 329,400 902,817 Due to other governments 3,992,406 4,191,954 - - 3,992,406 4,191,954 $ 123,238,702 $ 130,249,421 $ 677,181 $ 1,417,961 $ 123,915,883 $ 131,667,382 More detailed information on long-term debt, including debt limitations, is provided in Note 11 to the financial statements. 24 CITY OF TUKWILA: 2024 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS 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. 25 CITY OF TUKWILA: 2024 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF NET POSITION DECEMBER 31, 2024 26 Governmental Business -Type Activities Activities Total ASSETS: Cash and cash equivalents $ 39,451,081 $ 25,811,641 $ 65,262,722 Investments 11,476,234 5,940,318 17,416,552 Restricted cash and cash equivalents 193,719 165,817 359,536 Taxes receivable 7,614,282 - 7,614,282 Customer receivable 4,183,092 1,646,230 5,829,321 Due from other governmental units 1,549,609 1,133,691 2,683,300 Leases receivable 115,966 - 115,966 Internal balances (995,690) 995,690 - Inventory of materials and supplies 203,963 68,316 272,279 Special assessment receivable - Current 10,265 - 10,265 Special assessment receivable - Noncurrent 1,493,767 13,312 1,507,081 Real property held for resale 370,410 - 370,410 Net Pension asset 10,935,031 870,093 11,805,124 Investment in joint ventures 11,967,386 - 11,967,386 Capital assets not being depreciated 83,745,771 6,006,829 89,752,600 Capital assets, net of accumulated depreciation/amortization 237,043,780 71,524,960 308,568,740 Total Assets 409,358,666 114,176,897 523,535,563 DEFERRED OUTFLOWS OF RESOURCES: Pension related 16,172,838 1,181,139 17,353,977 OPEB related 408,558 - 408,558 Deferred charge on refunding - 8,133 8,133 Total Deferred Outflows Of Resources 16,581,396 1,189,272 17,770,668 LIABILITIES: Accounts payable 2,873,530 781,723 3,655,253 Accrued wages and benefits payable 1,653,038 199,279 1,852,317 Accrued interest payable 502,897 1,759 504,656 Unearned revenue 1,895,338 12,338 1,907,676 Reserve for unreported claims 990,150 - 990,150 Other liabilities 244,429 232,690 477,119 Long-term liabilities due w ithin one year: OPEB liability 398,089 - 398,089 Bonds, notes, leases, IBNR, claims, subscriptions based IT agreements, compensated absences 8,606,461 335,531 8,941,992 Long-term liabilities due in more than one year: Net pension liability 1,490,604 371,487 1,862,091 OPER liability 4,328,418 - 4,328,418 Bonds, notes, leases, subscriptions based TTagreements, compensated absences 125,077,110 1,383,485 126,460,595 Total Liabilities 148,060,064 3,318,292 151,378,356 DEFERRED INFLOWS OF RESOURCES: Pension related 2,947,956 265,508 3,213,464 Lease related 107,857 - 107,857 Deferred revenue -other 399,378 399,378 Deferred revenue -special assessment 939,061 - 939,061 Total Deferred Inflows Of Resources 4,394,252 265,508 4,659,760 NET POSITION: Net investment in capital assets 197,716,199 76,862,741 274,578,940 Restricted for: Debt service 1,805,243 - 1,805,243 Tourism promotion 3,728,106 3,728,106 Arterial street improvements 4,626,194 4,626,194 Drug investigation and enforcement 436,911 436,911 Land and park acquisition, development 4,322,362 - 4,322,362 Pension Asset 14,129,072 1,693,961 15,823,033 Unrestricted net position 46,721,659 33,225,667 79,947,326 Total Net Position $ 273,485,746 $ 111,782,369 $ 385,268,115 The notes to the financial statements are an integral partofthis statement. 26 CITY OF TUKWILA: 2024 ACFR $ 23,186,100 $ $ 23,186,100 BASIC FINANCIAL STATEMENTS 24,846,451 CITY OF TUKWILA, WASHINGTON 984,326 984,326 Utility taxes 5,901,264 STATEMENT OF ACTIVITIES 5,901,264 Interfund utility taxes 2,684,965 FOR THE YEAR ENDED DECEMBER 31, 2024 Business taxes 3,894,820 3,894,820 Excise Taxes 5,416,330 Primary Government 5,416,330 Unrestricted investment earnings 2,555,465 1,401,260 --Expenses-- -------- Program revenues -------- -Net (Expense) Revenue and Changes in Net Position - 679,733 3,207,928 Charges Operating Capital Grants Governmental Business -Type Total Excess of revenues over expenses 118,586 For Services Grants and and Activities Activities Transfers 1,753,076 Contributions Contributions - Change in net position 1,871,662 FUNCTIONS / PROGRAMS: 7,008,172 PRIMARY GOVERNMENT Governmental activities General government $ 21,582,025 $ 9,235,478 $ 531,872 $ 246,870 $ (11,567,805) $ $ (11,567,805) Public safety 44,218,679 3,560,097 1,493,280 - (39,165,302) (39,165,302) Transportation 14,193,779 1,246,780 179,587 1,577,943 (11,189,469) (11,189,469) Natural and economic environment 5,458,446 2,887,841 389,125 249,043 (1,932,437) (1,932,437) Culture and recreation 5,831,822 1,629,977 208,916 - (3,992,929) (3,992,929) Interest on long-term debt 4,031,388 - - - (4,031,388) (4,031,388) Total Governmental Activities 95,316,139 18,560,173 2,802,780 2,073,856 (71,879,330) (71,879,330) BUSINESS -TYPE ACTIVITIES: Water 7,477,041 8,186,770 - - 709,729 709,729 Sewer 10,040,338 10,544,982 - - 504,644 504,644 Surface water 5,724,035 8,090,765 35,126 1,498,723 3,900,579 3,900,579 Foster golf course 2,674,833 2,368,474 - - (306,359) (306,359) Total Business -Type Activities 25,916,247 29,190,991 35,126 1,498,723 4,808,593 4,808,593 Total Primary Government $ 121,232,386 $ 47,751,164 $ 2,837,906 $ 3,572,579 $ (71,879,330) $ 4,808,593 $ (67,070,737) General Revenues: Taxes Property taxes $ 23,186,100 $ $ 23,186,100 Retail sales and use taxes 24,846,451 24,846,451 Flotel/motel taxes 984,326 984,326 Utility taxes 5,901,264 5,901,264 Interfund utility taxes 2,684,965 2,684,965 Business taxes 3,894,820 3,894,820 Excise Taxes 5,416,330 5,416,330 Unrestricted investment earnings 2,555,465 1,401,260 3,956,725 Mscellaneous 2,528,195 679,733 3,207,928 Total General Revenues 71,997,916 2,080,993 74,078,909 Excess of revenues over expenses 118,586 6,889,586 7,008,172 before transfers and special item Transfers 1,753,076 (1,753,076) - Change in net position 1,871,662 5,136,510 7,008,172 Net position - beginning 271,112,731 106,582,649 377,695,380 Change in accounting principle - Compensated Absences 501,353 63,211 564,564 Net position -beginning restated 271,614,084 106,645,860 378,259,944 Net position -ending $ 273,485,746 $ 111,782,368 $ 385,268,116 The notes to the financial statements are an integral part ofthis statement 27 CITY OF TUKWILA: 2024 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2024 LIABILITIES, DEFERRED INFLOWS General Fund Arterial Street Local Improvement District #33 Land Acq. Rec & Park Development Other Governmental Funds Total Governmental Funds ASSETS: Liabilities: Cash and cash equivalents $ 8,151,165 $ 7,320,221 $ 536,627 $ 5,140,532 $ 11,439,680 $ 32,588,224 Investments 11,476,234 - - - - 11,476,234 Taxes receivable 7,473,686 48,631 1,395,338 - 91,967 7,614,284 Other receivables 3,266,856 541,948 80,139 79,011 3,967,954 Leases receivable 115,966 - - - - 115,966 Due from other governmental units 1,036,042 - 1,361,537 236,055 500,000 134,114 1,670,156 Restricted assets: Unavailable revenue -special assessment 939,061 - Cash and cash equivalents - 2,432,828 - - 193,719 193,719 Special assessment receivable - Deferred revenue -leases 1,493,767 - 1,493,767 Notes receivable -Current 10,265 1,456,793 - 1,493,767 - - 10,265 Real property held for resale - - - - 370,410 370,410 Total Assets $ 31,530,213 $ 7,910,800 $ 2,030,394 $ 5,720,671 $ 12,308,901 $ 59,500,979 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES: Liabilities: Accounts payable 1,153,173 559,804 861,537 209,177 2,783,691 Accrued w ages & benefits 1,584,759 24,826 - 4,685 1,614,271 Unearned revenue 1,395,338 - 500,000 - 1,895,338 Due to other funds 995,690 - - 995,690 Other liabilities 222,234 - - 22,193 244,427 Total Liabilities 5,351,194 584,630 - 1,361,537 236,055 7,533,417 Deferred inflow of resources Unavailable revenue -special assessment 939,061 - 1,493,767 - - 2,432,828 Unavailable revenue -property tax, other 409,875 - 108,734 518,609 Deferred revenue -leases 107,857 - - 107,857 Total Deferred Inflow Of Resources 1,456,793 1,493,767 - 108,734 3,059,294 Fund balance: Restricted: Hotel/motel tax - - - 3,728,106 3,728,106 Arterial street capital improvements 4,626,194 - 4,626,194 Drug investigation and enforcement - - 436,912 436,912 Park and land acquisition/development 4,174,962 - 4,174,962 Debt service guaranty fund - 829,009 829,009 Debt service public safety plan - 494,144 494,144 Local Improvement District 536,626 - 536,626 Assigned: Residential street improvements - - 1,770,619 1,770,619 Arterial street improvements 2,699,976 - - 2,699,976 CFT - 25,000 - 25,000 Facilities & urban renewal - 2,055,907 2,055,907 General government improvements 41,694 41,694 Public safety facilities 1,617,834 1,617,834 City facilities - 989,887 989,887 1% Arts - 159,173 - 159,173 Technology 579,494 - 579,494 Shoreline Restoration 93,849 93,849 Unassigned 24,048,882 - - - - 24,048,882 Total Fund Balance 24,722,225 7,326,170 536,626 4,359,134 11,964,111 48,908,268 Total Liabilities, Deferred Inflows And Fund Balances $ 31,530,213 $ 7,910,800 $ 2,030,394 $ 5,720,671 $ 12,308,901 $ 59,500,979 The notes to the financial statements are an integral part of this statement 28 CITY OF TUKWILA: 2024 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION DECEMBER 31, 2024 Amounts reported for governmental activities in the statement of net position are different because: Total governmental fund balances as reported on this statement Total Governmental Funds $ 48,908,268 Capital assets used in governmental activities are notfinancial resources and therefore not reported in the funds. Non -depreciable assets 83,698,208 Depreciable assets (net) 229,618,159 Internal service fund assets 7,425,618 320,741,985 The net pension asset is not an available resource and, therefore, is not reported in the funds. 10,935,031 Deferred outflows - pension related 16,172,838 Deferred outflows - OPEB related 408,558 Deferred inflows - pension related (2,947,956) 13,633,440 The City has an equity interest in two joint ventures. This equity interestfor the provision ofgovernmental services is nota current financial resource and therefore is not reported in the funds. 11,967,718 Revenue thatwas not collected within the recognition period and therefore was not available to paycurrent liabilities: Unavailable revenue reported for propertytaxand other receivables 119,231 Unavailable revenue reported for special assessment 1,493,767 1,612,998 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 (7,334,641) Long term liabilities due in more than one year (121,418,459) Lease liabilities payable (99,976) Subscription Based IT Agreement(SBITA) liabilities payable (1,293,811) Unfunded other post employment benefits (OPEB) (4,726,507) Accrued interest payable (487,339) (135,360,733) Internal service funds are used bymanagementto charge the cost ofcertain 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 statementof net position. 1,047,039 Net Position of Government Activities as Reported on the Statement of Net Position $ 273,485,746 The notes to the financial statements are an integral part of this statement 29 CITY OF TUKWILA: 2024 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS FOR THE YEAR ENDED DECEMBER 31, 2024 Local Land Acq. public Other Total General Arterial Inprovement Rec & Park Safety City Governmental Governmental Fund Street District #33 Development Ran Facilities Funds Funds REVENUES: Taxes $ 57,359,441 $ 2,934,789 $ - $ 197,905 $ - $ - $ 6,338,121 $ 66,830,256 Licenses and permits 5,904,639 418,424 - - - - - 6,323,063 Intergovernmental 7,047,896 1,773,927 - 82,919 - - 617,883 9,522,625 Charges for services 4,616,229 328,192 - 981,266 - - 1,091,836 7,017,522 Fines and forfeitures 443,361 3,102 - - - - - 446.,463 Investment earnings 1,069,873 317,097 94,990 210,072 - - 480,269 2,172,305 Special assessments - - 418,885 - - - - 418,885 Miscellaneous 590,584 144,600 254 157,393 892,831 Total Revenues 77,032,023 5,920,131 514,129 1,472,162 - 8,685,501 93,623,950 EXPENDITURES: Current: General government 13,117,335 - - - - - 943,307 14,060,642 public safety 41,682,819 - - - - - 61,451 41,744,270 Transportation 4,617,714 2,917,338 - - - - 419,950 7,955,002 Natural and economic environment 6,441,212 - - - - - 497,360 6,938,572 Culture and recreation 5,349,458 - - 143,051 - - - 5,492,509 Debt service: Principal 759,414 - 390,000 - - - 5,802,000 6,951,414 Interest 92,094 - 122,821 - - - 4,269,323 4,484,238 Capital outlay 785,431 1,838,840 1,174,382 1,920,048 5,718,701 Total Expenditures 72,845,477 4,756,178 512,821 1,317,433 - - 13,913,439 93,345,348 Excess (deficiency)of revenues Over (Under) Expenditures q,186,546 1,163,953 1,308 154,729 - - (5,227,938) 278,601 OTHER FINANCING SOURCES (USES): Transfers in 1,543,740 - - 19,000 - - 8,377,537 9,940,277 Transfers out (5,851,627) - - - - - (2,335,575) (8,187,202) Lease and subscription financing (147,662) (147,662) Total Other Financing Sources And Uses (4,455,549) - - 19,000 -. - 6,041,963 1,605,414 Net change in fund balances (269,003) 1,163,953 1,308 173,729 - - 814,026 1,884,016 Fund balances - Beginning 24,991,228 6,162,217 535,318 - 1,224,422 1,201,634 12,909,433 47,024,252 Presentation Change- Major vs Non -Major - - - 4,185,405 (1,224,422) (1,201,634) (1,759,349) - Fund balance -beginning restated 24,991,228 6,162,217 535,318 4,185,405 11,150,084 47,024,252 Fund Balances - Ending $ 24,722,225 $ 7,326,170 $ 536,626 $ 4,359,134 $ - $ - $ 11,964,111 $ 48,908,268 The notes to the financial statements are an integral part of this statement 30 CITY OF TUKWILA: 2024 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. 2024 Net change in fund balances per the Statement of Revenues, Expenditures, and Changes in Fund Balances $ 1,884,016 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 ofactivities the cost ofthose assets is allocated overtheir estimated useful lives and reported as depreciation expense. In the current period, these amounts are: Capital Outlay 5,718,701 Depreciation Expense (excludes internal service fund depreciation which is reflected in internal service fund change in net position listed below) (11,349,910) Excess of Capital Outlay Over Depreciation Expense (5,631,209) The net effect of various transactions involving the Citys pension plans are: Increase in pension contribution revenue 358,212 Reduction in Pension liabilityand expense 580,821 939,033 The Cityhas equityinterests in two joint ventures. The equityinterests forthe provision ofgovernmental services are not current financial resources and therefore are notreported in the funds. 369,129 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 currentyear, these amounts consist of: Bond principal retirement 6,951,414 Amortization expense 619,171 7,570,585 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 (100,790) Internal service funds are used bymanagementto charge the costs ofcertain activities to individual funds. The change in net position of internal service funds is reported with governmental activities. (1,780,657) Because some revenues will not be collected for several months after the City's fiscal year ends, theyare not considered "available" revenues in the government funds. Changes this year are for: (501,353) Miscellaneous receivables (79,372) Property taxes 83,999 Special assessment (373,442) (368,815) 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 36,654 Increase in compensated absences (835,496) Change in OPEB Liability 290,566 Total additional expense (increase) decrease (508,276) Change In Net Position On The Statement Of Activities $ 1,871,662 The notes to the financial statements are an integral part of this statement. 31 CITY OF TUKWILA: 2024 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKW ILA, WASHINGTON STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2024 32 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 $ 3,433,117 $ 9,546,584 $ 1,981,861 $ 10,850,079 $ 25,811,641 $ 6,862,859 Investments 977,643 2,979,081 - 1,983,594 5,940,318 - Customer Receivable 611,651 874,378 1,971 158,230 1,646,230 212,256 Due from other governmental units - - - 1,133,691 1,133,691 - Inventory of materials and supplies - 68,316 - 68,318 203,961 Restricted cash and cash equivalents 26,250 - 139,567 - 165,817 - Total Current Assets 5,048,661 13,400,043 2,191,715 14,125,594 34,766,015 7,279,077 Noncurrent Assets: Notes receivable - 13,312 - - 13,312 - Due from other funds - 995,690 - - 995,690 Net Pension asset 165,296 216,324 173,146 315,327 870,093 91,153 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 29,815,544 17,533,725 3,599,021 59,223,056 110,171,346 - Machinery and equipment 874,032 2,107,818 1,665,892 56,139 4,703,881 11,205,882 Leased Assets - - - - - 5,268,250 Subscription Assets - - - - - 260,677 Less: accumulated depreciation (15,216,054) (11,022,116) (9,002,952) (23,883,964) (59,125,086) (9,309,188) Construction in progress 429,603 443,013 23,591 2,759,653 3,655,860 47,563 Total Capital Assets (Net Of A/D) 17,407,039 13,138,440 4,522,623 42,463,687 77,531,789 7,473,184 Total Noncurrent Assets 17,572,335 14,363,766 4,695,769 42,779,014 79,410,884 7,564,337 Total Assets 22,620,996 27,763,809 6,887,484 56,904,608 114,176,899 14,843,414 Deferred Outflows of Resources Deferred pension 226,676 290,121 236,052 428,290 1,181,139 125,412 Deferred Loss on Refunding 2,115 5,042 976 8,133 Total Deferred Outflows Of Resources 228,791 295,163 236,052 429,266 1,189,272 125,412 LIABILITIES: Reserve for unreported claims - - - - - 990,150 Current liabilities: Accounts payable 75,133 96,565 4,536 605,491 781,725 207,839 Accrued wages and benefits 40,039 47,497 38,328 73,414 199,279 23,222 Accrued interest payable 176 1,501 - 81 1,759 15,558 Lease liability due within one year - - - - - 602,680 Subscription liability due w Rhin one year - - - - - 50,710 Unearned revenue 12,155 - - 183 12,338 - Other current liabilities 26,250 2,000 176,802 27,638 232,690 660,100 Due to other governments - 41,175 - - 41,175 - Compensated absences 25,560 24,773 20,849 51,343 122,525 - Revenue bond payable 44,676 106,535 20,620 171,831 Total Current Liabilities 223,989 320,046 240,515 778,770 1,563,322 1,560,109 Noncurrent liabilities: Lease liability due in more than one year - - - - - 3,584,805 Subscription liability due in more than one year - - - - 105,620 Revenue bonds payable 45,747 109,090 - 21,114 175,951 - Net pension liability 70,573 92,360 73,925 134,629 371,487 38,918 Compensated absences 235,576 375,149 164,126 144,458 919,309 - Due to other governments - 288,225 - - 288,225 - Total Noncurrent Liabilities 351,896 864,823 238,051 300,201 1,754,972 3,729,342 Total Liabilities 575,885 1,184,869 478,566 1,078,971 3,318,294 5,289,452 Deferred Inflows of Resources Deferred inflow pension earnings 85,231 (45,628) 89,361 136,544 265,508 54,847 Total Deferred Inflow s Of Resources 85,231 (45,628) 89,361 136,544 265,508 54,847 NET POSITION: Investment in capital assets 17,318,730 12,598,458 4,522,624 42,422,930 76,862,742 3,129,370 Restricted for Pension Assets 321,810 421,155 337,094 613,902 1,693,961 177,463 Unrestricted 4,548,131 13,900,117 1,695,891 13,081,527 33,225,666 5,327,545 Total Net Position $ 22,188,671 $ 26,919,730 $ 6,555,609 $ 56,118,359 $111,782,369 $ 8,634,377 The notes to the financial statements are an integral part of this statement. 32 CITY OF TUKWILA: 2024 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, 2024 OPERATING EXPENSES: Operating & maintenance Administrative and general Taxes Depreciation and amortization Total Operating Expenses Operating Income (Loss) 4,713,470 6,563,729 2,087,844 1,352,975 14,718,018 8,311,489 Governmental 1,826,940 230,274 2,371,202 Foster Surface Total Activities 527 Water Sewer Golf Water Enterprise Internal 1,113,256 Utility Utility Course Utility Funds Service Funds OPERATING REVENUES: 10,335,848 Total Non -Operating Revenue (Expense) 156,239 568,137 86,906 594,561 1,405,841 Charges for services $ 8,209,537 $ 10,543,595 $ 2,253,331 $ 8,090,765 $ 29,097,228 $ 7,973,486 Other operating revenue 4,372 - 131,714 718,000 854,086 214,160 Total Operating Revenues 8,213,909 10,543,595 2,385,045 8,808,765 29,951,314 8,187,646 OPERATING EXPENSES: Operating & maintenance Administrative and general Taxes Depreciation and amortization Total Operating Expenses Operating Income (Loss) 4,713,470 6,563,729 2,087,844 1,352,975 14,718,018 8,311,489 940,379 1,826,940 230,274 2,371,202 5,368,795 580,310 1,196,291 1,198,411 527 902,458 3,297,687 - 641,563 457,883 369,092 1,113,256 2,581,794 1,444,049 7,491,703 10,046,963 2,687,737 5,739,891 25,966,294 10,335,848 722,206 496,631 (302,693) 3,068,874 3,985,020 (2,148,201) NON-OPERATING REVENUE ( EXPENSE): 21,995,059 26,226,265 6,458,493 51,902,833 106,582,649 10,415,031 Investment earnings 177,557 578,904 82,906 561,892 1,401,259 382,831 Interest expense (4,321) (12,156) - (2,457) (18,934) (202,977) Gain (loss) on disposal of capital assets (16,997) 1,387 4,000 - (11,610) 187,692 Other non-operating revenue - - - 35,126 35,126 - Total Non -Operating Revenue (Expense) 156,239 568,137 86,906 594,561 1,405,841 367,546 Income (Loss) Before Contributions & Transfers 878,445 1,064,768 (215,787) 3,663,435 5,390,861 (1,780,655) Capital contributions - 1,498,723 1,498,723 Transfers in 300,000 - 300,000 Transfers out (698,046) (390,084) - (964,946) (2,053,076) Change in Net Position 180,399 674,684 84,213 4,197,212 5,136,508 (1,780,655) Total net position - beginning 21,995,059 26,226,265 6,458,493 51,902,833 106,582,649 10,415,031 Grange in accounting principle - Compensated Absences 13,213 18,781 12,903 18,314 63,211 - Total net position - beginning restated 22,008,272 26,245,046 6,471,396 51,921,147 106,645,860 10,415,031 Total Net Position - ending $ 22,188,671 $ 26,919,730 $ 6,555,609 $ 56,118,359 $111,782,369 $ 8,634,377 The notes to the financial statements are an integral part ofthis statement 33 CITY OF TUKWILA: 2024 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2024 Page 1 of 2 Governmental Foster Surface Total Activities Water Sewer Golf Water Enterprise Internal Utility Utility Course Utility Funds Service Funds CASH ROWS 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 ROWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund loan issued Operating grant received Transfers in Transfers out Net Cash Provided (Used) ByNon- Capital Financing Activities CASH ROWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchase of capital assets Capital grants Principal payment on debt Interest payment on debt Proceeds from sale ofequipment Net Cash Provided (used) for Capital And Related Financing Activities CASH ROW FROM INVESTING ACTIVITIES: Interest received Net Cash Provided (Used) In Investing Activities $ 8,217,809 $ 10,590,443 $ 2,362,018 $ 9,038,320 $ 30,208,591 $ 8,266,582 (3,371,183) (6,141,145) (784,494) (807,905) (11,104,728) (1,242,543) (1,196,291) (1,198,411) (527) (902,458) (3,297,687) (1,216,749) (1,628,901) (1,398,898) (1,714,293) (5,958,842) (6,871,866) (777,364) (659,920) (230,274) (699,834) (2,367,392) (580,307) 4,372 20,572 24,944 1,709 1,660,593 962,065 (31,602) 4,913,830 7,504,886 (426,424) (29,316) - (29,316) - 35,126 35,126 300,000 - 300,000 (698,046) (390,084) - (964,945) (2,053,076) (698,046) (419,400) 300,000 (929,820) (1,747,266) (283,872) (105,119) (491,285) (1,647,843) (2,528,118) (2,802,566) 603,553 603,553 - (124,140) (337,201) (279,439) (740,780) 1,353,054 (4,641) (12,919) - (3,253) (20,812) (198,784) 1,387 4,000 5,387 187,692 (412,652) (453,851) (487,285) (1,326,982) (2,680,770) (1,460,603) 154,907 493,421 82,906 526,367 1,257,601 382,831 154,907 493,421 82,906 526,367 1,257,601 382,831 Net increase (decrease) in cash and Cash equivalents 704,803 582,235 (135,981) 3,183,395 4,334,452 (1,504,196) Cash and cash equivalents -beginning ofyear 2,754,564 8,964,350 2,257,408 7,666,684 21,643,006 8,367,055 Cash And Cash Equivalents -end ofyear 3,459,367 9,546,584 2,121,427 10,850,079 25,977,458 6,862,859 Cash at end ofyear consists of: Cash and cash equivalents 3,433,117 9,546,584 1,981,861 10,850,079 25,811,641 6,862,859 Restricted cash -customer deposits 26,250 - 139,567 - 165,817 - Total Cash and cash equivalents $ 3,459,367 $ 9,546,584 $2,121,427 $10,850,079 $ 25,977,458 $ 6,862,859 The notes to the financial statements are an integral part of this statement 34 CITY OF TUKWILA: 2024 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF CASH FLOWS (continued) PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31. 2024 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) $ 722,206 $ 496,631 $ (302,693) $ 3,068,874 $ 3,985,018 $ (2,148,201) Adjustments to reconcile operating income to net cash Provided (used) by operating activities: Depreciation 641,563 457,883 369,092 1,113,256 2,581,794 1,444,049 Asset (increase) decrease: Accounts receivable 15,697 46,849 11,717 229,555 303,818 80,645 Inventory and other (16,997) - (2,057) - (19,054) (32,983) Deferred outflow of resources (increase) decrease (69,391) (88,090) (64,056) (156,151) (377,688) (48,995) Liability increases (decreases): Accounts payable 159,874 13,319 (119,340) 539,034 592,887 288,439 Other liabilities (7,745) - (8,677) (11,858) (28,279) - Wages & benefits payable 242,816 188,357 112,794 184,403 728,369 6,181 Deferred inflow of resources increase (decrease) (27,428) (152,884) (28,383) (53,284) (261,979) (15,559) Total Adjustments 938,388 465,434 271,091 1,844,956 3,519,868 1,721,777 Net Cash Provided (Used) By Operating Activities $ 1,660,594 $ 962,065 $ (31,602) $ 4,913,830 $ 7,504,887 $ (426,424) SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Capital assets acquired by contributed capital $ - $ - $ Increase (decrease) in fair value of investment 22,650 85,483 _ Total Non Cash investing, Capital and Financing Activities $ 22,650 $ 85,483 $ The notes to the financial statements are an integral part of this statement 35 $ 895,170 $ 895,170 $ 35,525 143,658 $ 930,696 $ 1,038,829 $ CITY OF TUKWILA: 2024 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF FIDUCIARY NET POSITON FIDUCIARY FUNDS DECEMBER 31, 2024 Pension and Other Employee Benefit Custodial Trust Funds Funds ASSETS: Cash and cash equivalents Total Assets LIABILITIES: Accounts and other payables Total Liabilities $ 1,652,177 $ 151,069 1,652,177 NET POSITION: Restricted for pensions 1,652,177 Restricted for individuals, organizations and other governments - Total Net Position $ 1,652,177 The notes to the financial statements are an integral part of this statement. 36 151,069 144,257 144,257 6,812 $ 6,812 CITY OF TUKWILA: 2024 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2024 ADDITIONS: Contributions from nonemployer entities: Investment earnings/(loss) Total Additions DEDUCTIONS: Benefit payments Total Deductions Pension and Other Employee Benefit Custodial Trust Funds Funds $ 81,929 $ 81,929 79,218 79,218 Change In Net Position 2,711 Net position - beginning 1,649,466 Net position - ending $ 1,652,177 $ The notes to the financial statements are an integral part of this statement. 37 6,812 6,812 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2024 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Tukwila have been prepared in conformity Generally Accepted Accounting Principles (GAAP) 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. Effective for the fiscal year 2024, the City implemented the following new accounting and reporting standards, issued by GASB: GASB Statement No. 100 — Accounting Changes and Error Corrections — an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. GASB Statement No. 101— Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. 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. The City of Tukwila is served by a mayor and seven councilmembers, all elected at large to four-year terms. The city provides a full range of municipal supportive services, including police, a municipal court, city parks, utilities services (water, sewer, surface water), a municipal golf complex, and municipal community center. The City of Tukwila has no component units (either blended or discretely presented) included in these statements. B. Basis of Presentation Government -Wide and Fund Financial Statements Government -Wide Funds The government -wide financial statements (i.e., the statement of net position and statement of activities) report information on all nonfiduciary activities of the City. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business -type activities of the city. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges to external parties. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements or a particular function or segment. Internally dedicated resources are reported as general revenues rather than program revenues. Taxes and other items not properly included among program revenues are reported instead as general revenues. As a general rule, the effect of the interfund activity has been eliminated for the government -wide financial statements. 38 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS Fund Financial Statements Separate fund financial statements are provided for governmental funds, proprietary (enterprise and internal service) funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The accounts of the City are organized on the basis of these 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 — within 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 Land Acquisition Rec & Parks Development fund accounts for park levies against property taxes as well as park impact fees as well as any allowable expenditures for upkeep and maintenance of parks and recreational facilities. The other governmental funds of the City account for the proceeds of specific revenue sources that are segregated to ensure that expenditure is made exclusively for qualified purposes. 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 39 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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. All Medical and dental costs for covered employees are charged to the respective user departments. 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 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. C. Measurement Focus and Basis of Accounting Government -wide and Governmental Funds The government -wide financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting, similar to the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year in which they are levied. Grants and similar items are recognized as revenue as soon as eligibility requirements imposed by the provider have been met. 40 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS Governmental funds financial statements are reported using the current financial resources measurement focus and modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the city considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for business licenses, which are considered available within 14 days of the end of the current fiscal period. Expenditures generally are recorded with a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, licenses, and interest associated within the current period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessment receivable due within the current fiscal period is susceptible to accrual as revenue of the current period. All other revenue items are considered measurable and available only when cash is received by the city. 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 and 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). Proprietary Funds The proprietary fund statements are reported using the economic resources measurement focus and full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when liability is incurred regardless of the timing of the cash flows. Proprietary funds distinguish operating revenues and expenses from nonoperating 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 are water, sewer, and storm drainage utility services. Operating expenses for the district include the cost of sales and services, administrative expenses, depreciation on assets, etc. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. D. 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 into 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 this Annual Comprehensive Financial Report (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 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. Cy CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS E. Assets, Liabilities, Fund Balance, Net Position Cash and Cash Equivalents The city considers cash and cash equivalents to be cash on hand and demand deposits. IN addition, because the LGIP is sufficiently liquid to permit withdrawal of cash at any time without prior notice or penalty, equity in the pool is also deemed to be a cash equivalent. For the purposes of the statement of cash flows, the city considers all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased to be cash equivalents. 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. All investments in the LGIP are reported at amortized cost. Additional deposit and investment information is presented in Note 2. Receivables Taxes receivables consist of utility taxes, admission taxes, gambling taxes, parking taxes, other taxes and their related interest and penalties. Accrued interest receivable consists of amounts earned on investments, notes, and contracts at the end of the year. Receivables due from other governments consist of property taxes, sales and use tax, grants receivable, and other amounts due from other governmental entities. Customer accounts receivable in the enterprise funds consists of amounts owed from private individuals or organizations for goods and services. In the governmental funds, it consists primarily of the special assessment for the local improvement district. 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, 2024, 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. 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 EVA CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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. 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. As of 2024, the Newporter location is the last land held for resale at a value of $370,410. Leases & SBITAs Lessee/SBITA: The City recognizes a lease/SBITA liability and an intangible right -to -use lease/SBITA asset in the government -wide and proprietary fund financial statements. The City recognizes lease/SBITA liabilities with an initial, individual value of $10,000 or more. This is an increase of $5,000 from the original implementation date of January 1, 2023. At the commencement of a lease/SBITA, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease/SBITA liability is reduced by the principal portion of lease payments made. The lease/SBITA asset is initially measured as the initial amount of the lease/SBITA liability, adjusted for lease/SBITA payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease/SBITA 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/SBITA. Lease/SBITA payments in governmental funds are reported as debt service principal and debt service interest expenditures. Key estimates and judgements related to lease/SBITAs include how the City determines (1) the discount rate it uses to discount the expected lease/SBITA payments to present value, (2) lease/SBITA term, and (3) lease/SBITA 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 lease/SBITAs. The lease/SBITA term includes the noncancelable period of the lease/SBITA. Lease/SBITA payments included in the measurement of the lease/SBITA 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/SBITA and will remeasure the lease/SBITA asset and liability if certain changes occur that are expected to significantly affect the amount of the lease/SBITA liability. 43 CITY OF TUKWILA: 2024 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. 44 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS Depreciation is computed using the straight-line method over estimated service lives, as follows: Asset Estimated Service Life Buildings 25 to 50 years Non -Building Improvements 25 to 50 years Machinery and Equipment 2 to 50 years Intangibles 2 to 50 years Infrastructure 25 to 50 years See Note 7 for additional information on capital assets. Deficit Net Position The city has one internal service fund with a deficit net position caused by a lower than expected stop loss reimbursement received in 2024. Internal Service Fund Deficit Net Position Insurance - LEOFF 1 Retirees $58,262 Other Liabilities and IBNR reserve 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 $630,900 determined using actuarial methods. They City elects to hold an additional 1.5 times the amount of IBNR ($946,350) as a reserve for unreported claims. The self-insurance fund for LEOFF 1 retirees includes an IBNR liability of $29,200. Using the same calculations the active employees' self-insurance fund, the City elects to hold an additional 1.5 times the amount of IBNR ($43,800) as a reserve for unreported claims. 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 720 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. 101. 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 45 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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 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. The portion of net position restricted for pensions is equal to the net pension asset. 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. 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. 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 evaluated 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. 46 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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 $2,963,517 for 2024 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. 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 168 as of December 31, 2024. 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. 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 47 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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. The portion of net position restricted for net pensions of all types of pension plans is equal to the net pension asset. 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, 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 48 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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, 2024, 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 49 Maturity Date Credit Rating Fair Value U.S. Government Agency Notes. Federal Home Loan Mortgage Corp 3/25/2025 Aaa 994,868 Federal Home Loan Bank 4/14/2025 Aaa 1,979,135 Federal Home Loan Bank 6/30/2025 Aaa 952,124 Federal Home Loan Mortgage Corp 10/15/2025 Aaa 901,140 Federal Home Loan Bank 12/17/2025 Aaa 977,643 Federal Home Loan Bank 2/24/2026 Aaa 958,976 Federal Farm Credit Bank 5/26/2026 Aaa 984,523 Federal Farm Credit Bank 6/15/2026 Aaa 951,358 Federal Farm Credit Bank 11/30/2026 Aaa 1,893,045 Federal Home Loan Bank 5/26/2027 Aaa 989,112 Federal Home Loan Bank 6/29/2027 Aaa 979,749 Federal Home Loan Bank 6/30/2027 Aaa 988,726 Federal Farm Credit Bank 9/20/2027 Aaa 999,945 Total U.S. Agency Notes 14,550,346 Municipal Bonds. Metro Oregon GO Taxable Bond 6/1/2026 Aaa 1,007,841 King Cnty Washington GO Taxable 12/1/2026 Aaa 933,549 Bellevue WA GO Taxable Ref 12/1/2026 Aaa 924,817 Total Municipal Bonds 2,866,207 TOTAL INVESTMENTS $ 17,416,552 No credit rating with certificate of deposit accounts; accounts are insured by the Public Depository Protection Commission. 49 CITY OF TUKWILA: 2024 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 $ 8,151,165 $ - $ 11,476,234 $ 19,627,399 Arterial Street 7,320,221 - - 7,320,221 Local Improvement District #33 536,627 - - 536,627 Other Governmental Funds 16,580,209 193,719 - 16,773,928 Internal Service Funds 6,862,859 - - 6,862,859 Proprietary Funds Water 3,433,117 26,250 977,643 4,437,010 Sewer 9,546,584 - 2,979,081 12, 525, 665 Foster Golf Course 1,981,861 139,567 - 2,121,427 Surface Water 10, 850, 079 - 1,983,594 12, 833, 674 Total as Reported on Statement of Net Position 65,262,722 359,536 17,416,552 83,038,810 Firemen's Pension Trust Fund 1,652,177 - - 1,652,177 Custodial Fund 151,069 - - 151,069 Total Cash, Cash Equivalents and Investments $ 67,065,968 $ 359,536 $ 17,416,552 $ 84,842,056 SUMMARY BY TYPE: Cash and Cash Equivalents: Local Government Investment Pool $ 35,025,257 Money market account 17,078,934 Cash on hand 13,653 Cash in bank -book balance 15,307,660 Total cash and cash equivalents 67,425,504 Investments: U.S. Government Agency Notes 14,550,346 Municipal bonds 2,866,207 Total investments 17,416,552 Total Cash, Cash Equivalents, and Investments $ 84,842,056 50 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS Restricted Cash Summary Restricted Assets - Governmental Cash & cash equivalents Drug Seizure funds - federal portion $ 193,719 Impact fees - Restricted Assets -Governmental $ 193,719 Restricted Assets - Business -Type Customer Deposits -Water Utility $ 26,250 Customer Deposits -Golf Course 124,567 Lease Deposits -Golf Course 15,000 Restricted Assets -Business -Type $ 165,817 Total Restricted Assets $ 359,536 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. 51 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS The City has the following recurring fair value measurements as of December 31, 2024: Fair Value Measurements Usina Quoted Prices in Active Markets for Identical Assets Significant Other Significant Observable Unobservable Inputs Inputs Investments by Fair Value Level Total (Level 1) (Level 2) (Level 3) US Government Agencies $ 14,550,346 $ - $ 14,550,346 $ Municipal Bonds 2,866,207 - 2,866,207 Total Investments by Fair Value Level $ 17,416,552 $ - $ 17,416,552 $ Interest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy limits investment maturities as follows: 1) At the time of investment, a minimum of thirty percent (30%) of the cash and investment portfolio will be comprised of investments maturing or available within one year. 2) At the time of investment, eighty percent (80%) of the portfolio will be comprised of investments maturing or available within five (5) years and no instruments shall have a maturity exceeding ten (10) years, except when compatible with a specific fund's investment needs. 3) The average maturity of the portfolio shall not exceed three and one half (3'/2) years or forty-two (42) months. The City uses the weighted average maturity method to manage interest rate risk. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State statutes and the City's investment policy limit the types of securities authorized for investment by the City. The principal governing statutes are RCW 39.59 and RCW 39.60. The Finance Director may further restrict eligible investments by this policy at his/her discretion. Authorized investments include (but are not limited to): 1) U.S. Treasury Securities. 2) U.S. Agency Securities (i.e., obligations of any government-sponsored corporation eligible for collateral purposes at the Federal Reserve). 3) Certificates of Deposit, Money Market Deposit Accounts and savings deposits with qualified depositories within statutory limits as promulgated by the WPDPC at the time of investment. 4) Bankers Acceptances (BA's) purchased on the secondary market with a rating of A-1, P-1, its equivalent or better. 5) General Obligation Bonds of a state or local government which have at the time of the investment one of the three highest credit ratings of a nationally recognized rating agency. 6) The Washington State Local Government Investment Pool (LGIP), an unrated, external investment pool. As of December 31, 2024, the City's investments in municipal bonds were rated Aaa or AAA by Moody's Investor Service. 52 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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 sales/use tax, utility, admission, gambling, parking, and other taxes. Receivables due from other governments includes property tax 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. 53 Governmental Activities Business -Type Activities Total Taxes Receivable Sales & Use $ 4,551,940 $ $ 4,551,940 Utility Tax 831,874 831,874 Admission Tax 126,610 126,610 Gambling Tax 900,785 900,785 Parking Tax 118,864 118,864 Other Taxes 1,084,209 1,084,209 Total Taxes Receivable 7,614,282 7,614,282 Receivables due from other governments Property Tax 702,907 702,907 Grants Receivable 629,457 167,342 796,798 Other 217,246 966,350 1,183,596 Total Due from other governments 1,549,609 1,133,691 2,683,301 Customer Receivable Miscellaneous 4,154,492 - 4,154,492 Utility Accounts - 1,511,191 1,511,191 Interest 28,600 135,038 163,638 Total Customer Receivable 4,183,092 1,646,229 5,829,321 Notes due within one year 10,265 - 10,265 Total Receivables $ 13,357,248 $ 2,779,920 $ 16,137,169 53 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS Property Taxes Receivable The County Treasurer acts as an agent to collect property taxes levied in the County for all taxing authorities. Collections are distributed daily via wire transfer. Pronertv Tax Calendar January 1St Taxes are levied and become an enforceable lien against properties. February 141h Tax bills are mailed. April 301h First of two equal installment payments is due. If taxes are less than $50, full payment is due. (RCW 84.56.020) May 31St Assessed value of property established for next year's levy at 100 percent of market value. October 31St Second installment is due. (RCW84.56.020) Assessed values are established by the County Assessor at 100% of fair market value. A revaluation of all property is required every two years. On May 31 of each year the assessed value of property is established for the next year's property tax levy. Property taxes levied by the County Assessor and collected by the County treasurer become a lien on the first day of the levy year and may be paid in two equal installments if the total amount is $50 or more. The first half of real property taxes is due on April 30 and the balance is due October 31. Delinquent taxes bear interest at the rate of 12% and are subject to additional penalties if not paid as scheduled. During the year, property tax revenues are recognized when cash is received. At year-end, unpaid property taxes are recorded as a receivable. Property tax receivables at year-end not expected to be collected within 60 days after the current period are reported as other unavailable revenue in the deferred inflow of resources section of the governmental funds financial statements. The tax rate for general City operations is limited to $3.60 per $1,000 of assessed value. An additional levy rate of $0.225 is available to the City because the City funds a Firemen's Pension Fund. The payment of principal and interest on limited tax (non -voted) bonds issued by the City is made from the general levy. Accordingly, the issuance of limited tax general obligation bonds has the effect of reducing property taxes available for the general operations of City government. State law also provides that the City's operating levy may not exceed 101% of the largest single levy since 1985. The State Constitution provides that the total of all taxes upon real and personal property by the State and all taxing entities, including the City, shall not in any year exceed 1% ($10 per $1,000) of the true and fair monetary value of such property. This limitation may be exceeded upon the approval of 60% of the City voters at an election in which the total vote exceeds 40% of the votes cast at the last general election. Washington State Constitution and Washington State law, RCW 84.55.010, limit the rate. The City's regular levy in 2024 was $1.89534 per $1,000 of assessed valuation of $9,529,124,967for a total regular levy of $18,060,932. Special levies approved by the voters are not subject to the limitations listed above. In 2024, the City levied an additional $0.50659 per $1,000 for the Public Safety Plan approved by voters in November 2016. The total additional levy in 2024 was $4,827,359. 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, franchise fees, as well as federal, state, and local reimbursement -type grants. The grants 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, 2024 is shown in the previous chart. 54 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS Notes Receivable Notes receivable for governmental activities consists of the long-term portion of the special assessments related to Local Improvement District (LID) No. 33. Special assessments are levied against certain property owners benefited by the improvement. The current portion of outstanding assessments is reported in the receivables category on the Statement of Net Position and consists of assessments which are due within one year and delinquent assessments from the prior year. Assessments are charged to property owners within the LID annually with payments due in October of each year. The repayment period for the assessments is 15 years with the first installment due in 2014 and the final installment due in 2028. 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. Notes Receivable Special Assessments Sewer Payment Plan Total Receivables NOTE 4 — INTERFUND TRANSACTIONS Business - Governmental Type Activities Activities Total 1,493,767 $ - $ 1,493,767 - 13,312 13,312 $ 1,493,767 $ 13,312 $ 1,507,080 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— Loans between funds are classified as interfund loans payable 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, 2024, the City had one outstanding interfund loan in the amount of $995,690 from the sewer utility fund to the general fund. This loan was provided prior to purchase a fire engine, as agreed during the City's process of joining the Puget Sound Regional Fire Authority. This loan is expected to be paid in full by December 31, 2026. 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. 55 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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 Net Transfers In (Out) $ (4,307,888) $ 6,060,963 $ 1,753,076 $(698,046) $ (390,084) $300,000 $(964,945) $ The principal purposes for interfund transfers include interfund subsidies and transfers into debt service and capital projects funds. NOTE 5 — LEASES Leases Payable In August 2021, the city entered into a 60 -month lease as Lessee for the use of Copier - TIS Dept.. An initial lease liability was recorded in the amount of $7,704. As of 12/31/2024, the value of the lease liability is $2,463, and the value of the short-term lease liability is $1,553. The city is required to make monthly fixed payments of $130. The lease has an interest rate of 0.5773%. The Equipment estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of 12/31/2024 of $7,704 with accumulated amortization of $5,224 is included with Equipment on the Lease Class activities table found below. In August 2021, the city entered into a 60 -month lease as Lessee for the use of Copier - PD Patrol. An initial lease liability was recorded in the amount of $7,704. As of 12/31/2024, the value of the lease liability is $2,463, and the value of the short-term lease liability is $1,553. The city is required to make monthly fixed payments of $130. The lease has an interest rate of 0.5773%. The Equipment estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of 12/31/2024 of $7,704 with accumulated amortization of $5,224 is included with Equipment on the Lease Class activities table found below. In September 2022, the city entered into a 36 -month lease as Lessee for the use of Electronic Business Machines - Supplement. An initial lease liability was recorded in the amount of $98,699. As of 12/31/2024, the value of the lease liability is $23,475, and the value of the short-term lease liability is $23,475. 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 12/31/2024 of $98,699 with accumulated amortization of $74,298 is included with Equipment on the Lease Class activities table found below. The lease has an unguaranteed residual value of $5,000. In August 2023, the city entered into a 36 -month lease as Lessee for the use of Dell Financial Services Refresh. An initial lease liability was recorded in the amount of $140,723. As of 12/31/2024, the value of the lease liability is $46,818, and the value of the short-term lease liability is $46,818. The city is required to make annual fixed payments of $50,498. The lease has an interest rate of 7.8600%. The Computer Equipment estimated useful life was 36 months as of the contract commencement. The value of the right to use asset as of 12/31/2024 of $140,723 with accumulated amortization of $66,453 is included with Computer Equipment on the Lease Class activities table found below. 56 Governmental Proprietary Funds Funds TOTAL General Other Go\/t Total Golf Surface Fund Funds Governmental Water Sewer Course Water Transfers In $ 1,543,740 $ 8,396,537 $ 9,940,277 $ - $ - $300,000 $ - $10,240,277 Transfers Out (5,851,627) (2,335,574) $ (8,187,202) (698,046) (390,084) - (964,945) (10,240,277) Net Transfers In (Out) $ (4,307,888) $ 6,060,963 $ 1,753,076 $(698,046) $ (390,084) $300,000 $(964,945) $ The principal purposes for interfund transfers include interfund subsidies and transfers into debt service and capital projects funds. NOTE 5 — LEASES Leases Payable In August 2021, the city entered into a 60 -month lease as Lessee for the use of Copier - TIS Dept.. An initial lease liability was recorded in the amount of $7,704. As of 12/31/2024, the value of the lease liability is $2,463, and the value of the short-term lease liability is $1,553. The city is required to make monthly fixed payments of $130. The lease has an interest rate of 0.5773%. The Equipment estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of 12/31/2024 of $7,704 with accumulated amortization of $5,224 is included with Equipment on the Lease Class activities table found below. In August 2021, the city entered into a 60 -month lease as Lessee for the use of Copier - PD Patrol. An initial lease liability was recorded in the amount of $7,704. As of 12/31/2024, the value of the lease liability is $2,463, and the value of the short-term lease liability is $1,553. The city is required to make monthly fixed payments of $130. The lease has an interest rate of 0.5773%. The Equipment estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of 12/31/2024 of $7,704 with accumulated amortization of $5,224 is included with Equipment on the Lease Class activities table found below. In September 2022, the city entered into a 36 -month lease as Lessee for the use of Electronic Business Machines - Supplement. An initial lease liability was recorded in the amount of $98,699. As of 12/31/2024, the value of the lease liability is $23,475, and the value of the short-term lease liability is $23,475. 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 12/31/2024 of $98,699 with accumulated amortization of $74,298 is included with Equipment on the Lease Class activities table found below. The lease has an unguaranteed residual value of $5,000. In August 2023, the city entered into a 36 -month lease as Lessee for the use of Dell Financial Services Refresh. An initial lease liability was recorded in the amount of $140,723. As of 12/31/2024, the value of the lease liability is $46,818, and the value of the short-term lease liability is $46,818. The city is required to make annual fixed payments of $50,498. The lease has an interest rate of 7.8600%. The Computer Equipment estimated useful life was 36 months as of the contract commencement. The value of the right to use asset as of 12/31/2024 of $140,723 with accumulated amortization of $66,453 is included with Computer Equipment on the Lease Class activities table found below. 56 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS In August 2023, the city entered into a 36 -month lease as Lessee for the use of Dell Financial Services Refresh 10 Key. An initial lease liability was recorded in the amount of $9,346. As of 12/31/2024, the value of the lease liability is $3,110, and the value of the short-term lease liability is $3,110. The city is required to make annual fixed payments of $3,341. The lease has an interest rate of 7.4200%. The Computer Equipment estimated useful life was 36 months as of the contract commencement. The value of the right to use asset as of 12/31/2024 of $9,346 with accumulated amortization of $4,414 is included with Computer Equipment on the Lease Class activities table found below. In July 2023, the city entered into a 60 -month lease as Lessee for the use of Pitney Bowes Postage Meter. An initial lease liability was recorded in the amount of $29,855. As of 12/31/2024, the value of the lease liability is $21,648, and the value of the short-term lease liability is $5,981. 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 12/31/2024 of $29,855 with accumulated amortization of $8,956 is included with Equipment on the Lease Class activities table found below. The lease has an unguaranteed residual value of $5,000. As of 12/31/2024, City of Tukwila, WA had 71 active vehicle leases. The leases have payments that range from $491 to $2,168 and interest rates that range from 2.7620% to 10.5032%. As of 12/31/2024, the total combined value of the lease liability is $4,187,484, the total combined value of the short-term lease liability is $1,013,210. The combined value of the right to use asset, as of 12/31/2024 of $5,268,251 with accumulated amortization of $1,204,213 is included within the Lease Class activities table found below. Amount of Lease Assets by Major Classes of Underlying Asset As of Fiscal Year-end Asset Class Lease Asset Value Accumulated Amortization Vehicles 5,268,251 1,204,214 Equipment 143,961 93,703 Computer Equipment 150,070 70,866 Total Leases 5,562,282 1,368,783 Principal and Interest Requirements to Maturity Leases Receivable 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 12/31/24, the value of the lease receivable is $85,689. 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 12/31/24 was $77,792, and the City recognized lease revenue of $30,113 during the fiscal year. 57 Governmental Activities Year Ended December 31 Principal Payments Interest Payments Total Payments 2025 1,095,700 188,368 1,284,068 2026 1,075,336 129,803 1,205,139 2027 1,082,231 72,481 1,154,712 2028 832,149 22,741 854,890 2029 202,045 202,045 404,090 Totals 4,287,461 615,438 4,902,899 Leases Receivable 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 12/31/24, the value of the lease receivable is $85,689. 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 12/31/24 was $77,792, and the City recognized lease revenue of $30,113 during the fiscal year. 57 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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 12/31/24, the value of the lease receivable is $0. 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 12/31/24 was $0, and the City recognized lease revenue of $21,594 during the fiscal year. In June 2024, the city entered into a 31 -month lease as Lessor for the use of a separate area of 6300 Southcenter Boulevard. An initial lease receivable was recorded in the amount of $38,834. As of 12/31/2024, the value of the lease receivable is $30,278 and the value of the short-term lease receivable is $14,878. The lessee is required to make monthly fixed payments of $1,500. The lease has an interest rate of 3.4500%. The Buildings estimated useful life was 24 months as of the contract commencement. The value of the deferred inflow of resources as of 12/31/2024 was $30,065, and City of Tukwila, WA recognized lease revenue of $8,769 during the fiscal year. 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. An initial subscription liability was recorded in the amount of $897,802. As of 12/31/2024, the value of the subscription liability is $689,193, and the value of the short-term subscription liability is $107,472. 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 12/31/2024 of $897,802 with accumulated amortization of $201,376 is included with Software on the Subscription Class activities table found below. 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 12/31/2024, the value of the subscription liability is $156,330, and the value of the short-term subscription liability is $50,710. 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 12/31/2024 of $260,677 with accumulated amortization of $69,514 is included with Software on the Subscription Class activities table found below. 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 12/31/2024, the value of the subscription liability is $207,655, and the value of the short-term subscription liability is $102,456. 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 12/31/2024 of $409,968 with accumulated amortization of $182,208 is included with Software on the Subscription Class activities table found below. 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 12/31/2024, the value of the subscription liability is $134,589, and the value of the short-term subscription liability is $66,406. 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 58 Governmental Activities Year Ended December 31 Principal Interest Total Payments 2025 43,278 1,301 44,579 2026 43,962 617 44,579 2027 28,726 165 28,891 Totals 115,966 2,083 118,049 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. An initial subscription liability was recorded in the amount of $897,802. As of 12/31/2024, the value of the subscription liability is $689,193, and the value of the short-term subscription liability is $107,472. 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 12/31/2024 of $897,802 with accumulated amortization of $201,376 is included with Software on the Subscription Class activities table found below. 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 12/31/2024, the value of the subscription liability is $156,330, and the value of the short-term subscription liability is $50,710. 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 12/31/2024 of $260,677 with accumulated amortization of $69,514 is included with Software on the Subscription Class activities table found below. 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 12/31/2024, the value of the subscription liability is $207,655, and the value of the short-term subscription liability is $102,456. 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 12/31/2024 of $409,968 with accumulated amortization of $182,208 is included with Software on the Subscription Class activities table found below. 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 12/31/2024, the value of the subscription liability is $134,589, and the value of the short-term subscription liability is $66,406. 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 58 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS of 12/31/2024 of $265,716 with accumulated amortization of $118,096 is included with Software on the Subscription Class activities table found below. 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 12/31/2024, the value of the subscription liability is $26,792, and the value of the short-term subscription liability is $26,792. 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 12/31/2024 of $80,393 with accumulated amortization of $51,660 is included with Software on the Subscription Class activities table found below. In August 2023, the city entered into a 15 -month subscription for the use of PolicyMap Platform. An initial subscription liability was recorded in the amount of $10,601. As of 12/31/2024, the value of the subscription liability is $0, and the value of the short-term subscription liability is $0. The city is required to make annual fixed payments of $5,376. The subscription has an interest rate of 2.8943°/x. The value of the right to use asset as of 12/31/2024 of $0 with accumulated amortization of $0 is included with Software on the Subscription Class activities table found below. 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 12/31/2024, the value of the subscription liability is $11,335, and the value of the short-term subscription liability is $11,335. 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 12/31/2024 of $34,015 with accumulated amortization of $14,551 is included with Software on the Subscription Class activities table found below. 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 12/31/2024, the value of the subscription liability is $0, and the value of the short-term subscription liability is $0. The city is required to make annual fixed payments of $111,388. The subscription has an interest rate of 2.6560%. The value of the right to use asset as of 12/31/2024 of $214,406 with accumulated amortization of $144,679 is included with Software on the Subscription Class activities table found below. 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 12/31/2024, the value of the subscription liability is $2,862, and the value of the short-term subscription liability is $929. 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 12/31/2024 of $29,927 with accumulated amortization of $10,541 is included with Software on the Subscription Class activities table found below. 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 12/31/2024, the value of the subscription liability is $23,829, and the value of the short-term subscription liability is $11,757. 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 12/31/2024 of $47,675 with accumulated amortization of $23,838 is included with Software on the Subscription Class activities table found below. Tukwila, WA 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 DebtBook. An initial subscription liability was recorded in the amount of $13,457. As of 12/31/2024, the value of the subscription liability is $0, and the value of the short-term 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 12/31/2024 of $0 with accumulated amortization of $0 is included with Software on the Subscription Class activities table found below. In January 2023, the city entered into a 48 -month subscription for the use of PerfectMind. An initial subscription liability was recorded in the amount of $116,647. As of 12/31/2024, the value of the subscription liability is $46,793, and the value of the short-term subscription liability is $23,329. 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 12/31/2024 59 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS of $116,647 with accumulated amortization of $58,323 is included with Software on the Subscription Class activities table found below. In December 2024, the city entered into a 108 -month subscription for the use of Flock Group Inc. An initial subscription liability was recorded in the amount of $776,180. As of 12/31/2024, the value of the subscription liability is $675,092, and the value of the short-term subscription liability is $72,808. The city is required to make annual fixed payments of $101,000. Additionally, there are one-time other reasonably certain payments of $6,300. The subscription has an interest rate of 4.1760%. In July 2024, the city entered into a 132 -month subscription for the use of LexisNexis Virtual Crime Center. An initial subscription liability was recorded in the amount of $195,202. As of 12/31/2024, the value of the subscription liability is $174,149, and the value of the short-term subscription liability is $14,212. The city is required to make annual variable fixed in substance principal and interest payments of $4,064. The city is required to make annual variable principal and interest payments of $16,336 based on a prime rate of 4.00%. The subscription has an interest rate of 3.9220%. The value of the right to use asset as of 12/31/2024 of $195,202 with accumulated amortization of $8,873 is included with Software on the Subscription Class activities table found below. In February 2024, the city entered into a 34 -month subscription for the use of SeeClickFix - Civic Plus. An initial subscription liability was recorded in the amount of $49,193. As of 12/31/2024, the value of the subscription liability is $34,614, and the value of the short-term subscription liability is $16,795. The city is required to make annual fixed payments of $14,591. The subscription has an interest rate of 2.9150%. The value of the right to use asset as of 12/31/2024 of $49,193 with accumulated amortization of $14,613 is included with Software on the Subscription Class activities table found below. In January 2024, the city entered into a 24 -month subscription for the use of ESRI GIS System 2024-2026. An initial subscription liability was recorded in the amount of $55,943. As of 12/31/2024, the value of the subscription liability is $27,543, and the value of the short-term subscription liability is $27,543. The city is required to make annual fixed payments of $28,400. The subscription has an interest rate of 3.1100%. The value of the right to use asset as of 12/31/2024 of $55,943 with accumulated amortization of $26,806 is included with Software on the Subscription Class activities table found below. Amount of Subscription Assets by Major Classes of Underlying Assets As of Fiscal Year-end Asset Class Subscription Asset Value Accumulated Amortization Software 2,657,565 1,011,320 Total Subscriptions 2,657,565 1,011,320 Principal and Interest Requirements to Maturity 60 Governmental Activities Year Ended December 31 Principal Payments Interest Payments Total Payments 2025 532,545 66,388 548,223 2026 480,734 52,552 481,190 2027 262,131 40,228 248,836 2028 214,542 33,288 247,830 2029 221,698 26,132 247,830 2030-2034 495,186 38,857 534,044 2035 3,939 124 4,064 Totals 2,210,775 257,569 2,312,017 60 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS NOTE 7 — CAPITAL ASSETS Capital asset activity for the year ended December 31, 2024, was as follows: GOVERNMENTAL ACTIVITIES 61 BEGINNING BALANCE 1/1/2024 INCREASES DECREASES ENDING BALANCE 12/31/2024 Governmental Activities Capital assets, not being depreciated: Land $ 61,580,992 $ - $ - $ 61,580,992 Construction in Progress 17,068,585 5,096,194 - 22,164,779 Total capital assets not being depreciated 78,649,577 5,096,194 - 83,745,771 Capital assets, being depreciated: Buildings 123,078,465 - - 123,078,465 Other Improvements 24,335,111 - - 24,335,111 Machinery and Equipment 18,020,075 901,449 (645,800) 18,275,724 Infrastructure 234,937,721 - - 234,937,721 Intangible Assets 1,592,331 - - 1,592,331 Leased Assets 2,585,781 2,976,500 - 5,562,282 Subscription Based IT Assets 2,381,285 561,015 (284,735) 2,657,565 Total capital assets being depreciated 406,930,769 4,438,964 (930,535) 410,439,198 Less accumulated depreciation for: Buildings (23,755,723) (2,549,153) - (26,304,876) Other Improvements (19,624,377) (798,630) - (20,423,007) Machinery and Equipment (12,814,309) (1,076,263) 645,800 (13,244,772) Infrastructure (102,951,666) (6,644,317) - (109,595,983) Intangible Assets (1,369,355) (77,323) - (1,446,678) Leased Assets (397,251) (971,532) - (1,368,783) Subscription Based IT Assets (428,943) (675,809) 93,432 (1,011,320) Total accumulated depreciation (161,341,624) (12,793,027) 739,232 (173,395,419) Total capital assets, being depreciated, net 245,589,145 (8,354,063) (191,303) 237,043,779 Governmental activity capital assets, net $ 324,238,722 $ (3,257,869) $ (191,303) $320,789,550 61 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS BUSINESS -TYPE ACTIVITIES BEGINNING ENDING BALANCE BALANCE 1/1/2024 INCREASES DECREASES 12/31/2024 Business -Type Activities Capital assets, not being depreciated: Land $ 2,350,969 $ - $ - $ 2,350,969 Construction in Progress 1,670,707 1,985,152 - 3,655,859 Total capital assets, not being depreciated 4,021,676 1,985,152 - 6,006,828 Capital assets, being depreciated: Buildings 15,774,819 - - 15,774,819 Other Improvements 110,212,089 92,269 (133,012) 110,171,346 Machinery and Equipment 4,236,187 467,694 - 4,703,881 Total capital assets being depreciated 130,223,095 559,963 (133,012) 130,650,046 Less accumulated depreciation for: Buildings (7,413,840) (420,307) - (7,834,147) Other Improvements (46,824,712) (1,973,117) 116,014 (48,681,815) Machinery and Equipment (2,420,754) (188,370) - (2,609,124) Total accumulated depreciation (56,659,306) (2,581,794) 116,014 (59,125,086) Total capital assets, being depreciated, net 73,563,789 (2,021,831) (16,998) 71,524,960 Business -Type activity capital assets, net $ 77,585,465 $ (36,679) $ (16,998) $ 77,531,788 Total Capital Assets, net $ 401,824,187 $ (3,294,548) $ (208,301) $398,321,338 DEPRECIATION Depreciation and Amortization expense for 2024 was charged to functions/programs as follows: Governmental Activities General Government $ 3,286,312 Public Safety 379,586 Transportation 7,147,402 Culture and Recreation 466,304 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 1,444,049 Total 2024 depreciation expense - governmental activities $ 12,723,653 Business -type activities: Water Utility $ 641,563 Sewer Utility 457,883 Foster Golf Course 369,092 Surface Water Utility 1,113,256 Total 2024 depreciation expense - business -type activities $ 2,581,794 62 CITY OF TUKWILA: 2024 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 Equity in Capital Total Operations Assets financed by Investment in Outstanding Debt Joint Ventures Valley Com $5,067,155 $ - $ 5,067,155 SCORE 2,907,825 3,992,406 6,900,231 Total $7,974,980 $3,992,406 $ 11, 967, 386 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 2024 cost distribution for the five (5) participating cities is as follows: City Dispatchable Calls Percent of Total Renton 68,801 21.17% Kent 89,716 27.61% Auburn 64,168 19.75% Tukwila 32,611 10.04% Federal Way 69,670 21.44% Total 324,965 100.00% 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 63 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS Administration Board; (2) Makes recommendation on Director selection; (3) Presents proposed policies and budgets to the Administration Board; (4) Approves disbursement of funds by the Director. The Director presents a proposed budget to the Operating Board on or before August 15 of each year. The proposed budget is then presented to the Administration Board by September 1 of each year. The Administration Board can make changes to the proposed Valley Com budget as it finds necessary, but final approval falls to the legislative body of each participating city, in accordance with the provisions of the Interlocal Agreement. The share of equity belonging to the five (5) participating cities is as follows: ITEM RENTON KENT AUBURN TUKWILA FEDEARYAL TOTAL Equity December 31, 2023 $ 9,660,311 $12,882,720 $ 9,851,364 $ 4,615,420 $ 8,624,717 $ 45,634,533 GASB 96 Adjusted Equity (141,590) (188,821) (144,390) (67,647) (126,412) (668,860) Equity January 1, 2024, restated 9,518,721 12,693,899 9,706,974 4,547,773 8,498,305 44,965,673 Current Year Increase/(Decrease) 1,095,758 1,428,863 1,021,978 519,382 1,109,598 5,175,579 Equity December 31, 2024 $10,614,480 $14,122,761 $ 10,728,952 $ 5,067,155 $ 9,607,902 $ 50,141,252 Percent of Equity 21.17% 28.17% 21.40% 10.11% 19.16% 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 1081h 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 64 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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 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. 65 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS The following is a summary of the debt service requirements for the 2019 Bonds: 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, 2024 in relation to SCORE: Member City Debt Service Schedule 2023 Equity Balance 2024 Percent of Equity Debt Service Allocation to Owner Cities 2024 Equity Balance Auburn 41.38% 15,314,840 41.90% Auburn Burien Des Moines Renton SeaTac Tukwila Year Principal Interest Total 34.94% 4.82% 6.02% 40.96% 3.62% 9.64% 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 2,615,000 1,293,100 3,908,100 1,365,490 188,370 235,268 1,600,758 141,473 376,741 2030-2034 15,090,000 4,460,600 19,550,600 6,830,979 942,339 1,176,946 8,007,926 707,732 1,884,678 2035-2038 14,430,000 1,206,850 15,636,850 1 5,463,516 753,696 941,338 6,404,854 566,054 1,507,392 Totals $ 41.415.000 $13.320.950 $ 54.735.950 1 19.124.742 2.638.272 3.295.104 22.419.846 1.981.441 5.276.545 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, 2024 in relation to SCORE: Member City 2023 Percent of Equity 2023 Equity Balance 2024 Percent of Equity 2024 Apportionment 2024 Equity Balance Auburn 41.38% 15,314,840 41.90% 1,218,459 16,533,299 Burien 5.68% 2,100,163 5.78% 181,287 2,281,450 Des Moines 5.11% 1,889,243 5.08% 115,427 2,004,670 Renton 32.11% 11, 884, 222 31.91% 705,931 12, 590,153 SeaTac 8.18% 3,027,042 7.96% 114,579 3,141,621 Tukwila 7.54% 2,790,883 7.37% 116,942 2,907,825 Grand Totals 1 100.00%1 37,006,393 1 100.00%1 2,452,6251 39,459,018 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, 2024, the City's share of SCORE debt is $5,276,545. 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 2024: Aggregate Pension Amounts — All Plans Pension liabilities $ (1,862,091) Pension assets 11,085,124 Deferred outflows of resources 17,353,977 Deferred inflows of resources (3,213,464) Pension expense/expenditures 2,988,372 66 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS State Sponsored Pension Plans Substantially all the City of Tukwila's full-time and qualifying part-time employees participate in one of the following statewide retirement systems administered by the Washington State Department of Retirement Systems, under cost-sharing, multiple -employer public employee defined benefit and defined contribution retirement plans. The state Legislature establishes, and amends, laws pertaining to the creation and administration of all public retirement systems. The Department of Retirement Systems (DRS), a department within the primary government of the State of Washington, issues a publicly available 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. 67 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS Cnntrihutinns 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 2024 were as follows: PERS Plan 1 Actual Contribution Rates Employer Employee* Januar — June 2024 PERS Plan 1 6.36% 6.00% PERS Plan 1 UAAL 2.97% Administrative Fee 0.20% Total 9.53% 6.00% Jul — August 2024 PERS Plan 1 6.36% 6.00% PERS Plan 1 UAAL 2.47% Administrative Fee 0.20% Total 9.03% 6.00% September — December 2024 PERS Plan 1 6.36% 9.11% PERS Plan 1 UAAL 2.55% Administrative Fee 0.20% Total 9.11% 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 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 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 33he 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. 68 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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** Januar —June 2024 PERS Plan 2/3 6.36% 6.36% Varies PERS Plan 1 UAAL 2.97% Administrative Fee 0.20% Total 9.53% 6.36% Jul — August 2024 PERS Plan 2/3 6.36% 6.36% Varies PERS Plan 1 UAAL 2.47% Administrative Fee 0.20% Total 9.03% 6.36% September — December 2024 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 $659,733 to PERS Plan 1 and $1,481,386 to PERS Plan 2/3 for the year ended December 31, 2024. Public Safety Employees' Retirement System (PSERS) PSERS Plan 2 was created by the 2004 Legislature and became effective July 1, 2006. 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. 69 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS Cnntrihutinns 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 Januar — June 2024 PSERS Plan 2 6.73% 6.73% PERS Plan 1 UAAL 2.97% Administrative Fee 0.20% Total 9.90% 6.73% Jul — August 2024 PSERS Plan 2 6.73% 6.73% PERS Plan 1 UAAL 2.47% Administrative Fee 0.20% Total 9.40% 6.73% September — December 2024 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 $25,200 to PSERS Plan 2 for the year ended December 31, 2024. 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 Starting 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 2024. Employers paid only the administrative expense of 0.20% of covered payroll. 70 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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 2024. The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2024 were as follows: LEOFF Plan 2 Actual Contribution Rates Employer Employee Januar — August 2024 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% September — December 2024 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 $584,270 for the year ended December 31, 2024. 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, 2024, the state contributed $96,422,231 to LEOFF Plan 2. The amount recognized by the City as its proportionate share of this amount is $551,989. 71 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS Actuarial Assumptions The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation completed in 2024 with a valuation date of June 30, 2023. 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 2023 Economic Experience Study. Additional assumptions for subsequent events and law changes are current as of the 2024 actuarial valuation report. The TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2024. Plan liabilities were rolled forward from June 30, 2023, to June 30, 2024, 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. Assumptions did not change from the prior contribution rate setting June 30, 2022 Actuarial Valuation Report (AVR). OSA adjusted their method for calculating UAAL contribution rates in PERS 1 and TRS Plan 1, to reflect the delay between the measurement date of calculated Plan 1 rates and when the rates are collected. Additionally, OSA made an adjustment to their model to reflect past inflation experience when modeling future COLAs for current annuitants in all plans except PERS 1 and TRS 1. 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, 2024. The inflation component used to create the table is 2.5% and represents the WSIB's most recent long-term estimate of broad economic inflation consistent with their 2023 CMAs. 72 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS Asset Class Target Allocation % Long -Term Expected Real Rate of Return Arithmetic Fixed Income 19% 2.1% Tangible Assets 8% 4.5% Real Estate 18% 4.8% Global Equity 30% 5.6% Private Equity 25% 8.6% 2,384,004 100% LEOFF 2 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. 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, 2024, the City of Tukwila reported a total pension asset of $11,805,124 and a total pension liability of $1,862,091 for its proportionate share of the net pension liabilities as follows: 1% Decrease (6.0%) Current Discount Rate 7.0% 1% Increase (8.0%) PERS 1 $ 2,739,089 $ 1,862,091 $ 1,092,943 PERS 2/3 7,862,195 4,361,366 14,440,322 PSERS 2 95,570 14,756 102,048 LEOFF 1 2,098,104 2,384,004 2,633,323 LEOFF 2 2,795,303 (4,219,238) (9,956,922) 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, 2024, the City of Tukwila reported a total pension asset of $11,805,124 and a total pension liability of $1,862,091 for its proportionate share of the net pension liabilities as follows: 73 Liability or (Asset) PERS 1 1,862,091 PERS 2/3 (4,361,366) PSERS 2 (14,756) LEOFF 1 (2,384,004) LEOFF 2 (4,219,238) Firemen's Pension (825,760) 73 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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: At June 30, the City of Tukwila's proportionate share of the collective net pension liabilities was as follows: LEOFF 1 Asset LEOFF 2 Asset Employer's proportionate share $ 2,384,004 $ 4,219,238 State's proportionate share of the net pension asset associated with the employer (16,125,342) (2,738,062) TOTAL $ 18,509,346 $ 6,957,300 At June 30, the City of Tukwila's proportionate share of the collective net pension liabilities was as follows: Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30, 2024 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 Nonemployer Allocations 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 2024. 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. In fiscal year 2024, the state of Washington contributed 39.36% of LEOFF 2 employer contributions pursuant to RCW 41.26.725 and all other employers contributed the remaining 60.64% of employer contributions. Pension Expense For the year ended December 31, 2024, the City of Tukwila recognized pension expense as follows: Proportionate Share 6/30/23 Proportionate Share 6/30/24 Change in Proportion PERS 1 0.105185% 0.104798% 0.000387% PERS 2/3 0.133502% 0.132300% 0.001202% PSERS 2 0.039451% 0.034604% 0.004847% LEOFF 1 1 0.082520%1 0.083829% -0.0013095/o LEOFF 2 1 0.325346%1 0.225297%1 0.100049% Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30, 2024 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 Nonemployer Allocations 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 2024. 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. In fiscal year 2024, the state of Washington contributed 39.36% of LEOFF 2 employer contributions pursuant to RCW 41.26.725 and all other employers contributed the remaining 60.64% of employer contributions. Pension Expense For the year ended December 31, 2024, the City of Tukwila recognized pension expense as follows: 74 Pension Expense PERS 1 $ (659,733) PERS 2/3 (1,481,386) PSERS 2 (25,200) LEOFF 1 (7,087) LEOFF 2 (584,270) Firemen's Pension (230,696) Total $ (2,988,372) 74 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS Deferred Outflows of Resources and Deferred Inflows of Resources At December 31, 2024, the City of Tukwila reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: PERS 2/3 Deferred Deferred PERS 1 Outflows Inflows Differences between expected and actual Outflows Inflows Differences between expected and actual experience 0 0 Net difference between projected and actual 0 (1,249,843) investment earnings on pension plan 0 (149,000) investments 2,408,355 (276,335) Changes of assumptions 0 0 Changes in proportion and differences 227,390 (259,403) between contributions and proportionate share of contributions 811,380 Contributions subsequent to the measurement date 339,387 (1,795,679) TOTAL 339,387 (149,000) PERS 2/3 Deferred Deferred Outflows Inflows Differences between expected and actual 2,478,221 (10,098) experience Net difference between projected and actual investment earnings on pension plan 0 (1,249,843) investments Changes of assumptions 2,408,355 (276,335) Changes in proportion and differences between contributions and proportionate 227,390 (259,403) share of contributions Contributions subsequent to the 811,380 measurement date TOTAL 5,925,346 (1,795,679) 75 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 76 Deferred Deferred PSERS 2 Outflows Inflows Differences between expected and actual experience 38,253 (8,441) Net difference between projected and actual investment earnings on pension plan 0 (7,145) investments Changes of assumptions 14,729 (5,513) Changes in proportion and differences between contributions and proportionate 5,620 (9,423) share of contributions Contributions subsequent to the 14,135 measurement date TOTAL 72,738 (30,521) 76 Deferred Deferred LEOFF 1 Outflows Inflows Differences between expected and actual experience 0 0 Net difference between projected and actual investment earnings on pension plan 0 (90,109) investments 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 (90,109) 76 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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, 2024. 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 Deferred Deferred LEOFF 2 Outflows Inflows Differences between expected and actual (246,583) (1,014,960) experience 3,105,280 (32,110) Net difference between projected and actual 126,683 1,867,743 investment earnings on pension plan 0 (694,174) investments (13,413) 823,330 Changes of assumptions 1,736,898 (354,650) Changes in proportion and differences (15,685) 850,657 between contributions and proportionate (9,561) 1,211,763 share of contributions 5,880,677 (83,329) Contributions subsequent to the 293,650 1,296,691 measurement date 347,835 TOTAL 11,016,506 (1,164,263) 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, 2024. 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 2025 (246,583) (1,014,960) (6,160) (151,508) 204,315 2026 126,683 1,867,743 8,629 78,494 1,831,457 2027 (13,413) 823,330 2,429 (7,533) 1,197,042 2028 (15,685) 850,657 2,520 (9,561) 1,211,763 2029 443,682 3,683 1,296,691 Thereafter 347,835 16,981 3,817,325 Total (149,000) 3,318,286 28,081 (90,109) 9,558,592 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. 77 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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, 2023 (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 Z 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 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 $86,708. Net Pension Liability The City's total pension liability was valued as of December 31, 2022 and was used to calculate the net pension liability. The components of the City's net pension liability at December 31, 2024 are as follows: Total pension liability $ 816,729 Less: Plan fiduciary net position (1,642,489) City's net pension liability $ (825,760) Plan fiduciary net position as a percentage of the total pension liability 201.11% 78 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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: 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: Deferred Outflows of Resources Deferred Inflows of Resources Net difference between projected and actual investment earnings on pension plan investments 0 (16,109) Contributions subsequent to the measurement date - 0 Total - (16,109) 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 2025 $ (330) 2026 (2,232) 2027 (12,459) 2028 (1,088) 2029 0 Remaining 0 TOTAL $ (16,109) 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, 2022 December 31, 2023 4.05% 3.77% 4.05% 3.77% 2.75% 2.75% 3.25% 3.25% Based on SOA Tables - 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 rate used to measure the total pension liability is 3.77%. 79 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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 $ 70,084 Non -Current Pension Liability 746,645 Total Pension Liability $ 816,729 Schedule of Changes in the City's Net Pension Liability and Related Ratios Increase / (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (c) = (a) - (b) Balance as of report date December 31, 2023 Changes for the year: Interest Differences between expected and actual experience Changes of assumptions Contributions Employer - City's contribution Net investment income Benefit payments Other miscellanious income / (expense) Net changes Balance as of report date December 31, 2024 Sensitivity of Liabilities to Changes in the Discount Rate $ 666,811 $ 1,627,552 $ (960,741) 25,399 - 25,399 217,330 - 217,330 (13,455) - (13,455) - 86,708 (86,708) - 69,029 (69,029) (79,356) (79,356) - - (61,444) 61,444 149,918 14,937 134,981 $ 816,729 $ 1,642,489 $ (825,760) 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 (2.77%) or one percentage point higher (4.77%) follows: 80 1% Decrease Current Rate 1% Increase 2.77% 3.77% 4.77% Total pension liability (Asset) $ 879,738 $ 816,729 $ 760,946 Increase / (decrease) 63,009 (55,783) % Change 7.7% -6.8% Net pension liability (Asset) $ (762,751) $ (825,760) $ (881,543) Increase / (decrease) 63,009 (55,783) % Change -7.6% 6.8% 80 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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 cit 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 uly 1, 2006. Survivor Eligibility: spouse or child. Amount of benefit: continuation of the firefighter's benefit. (If spouse — same, plus additional 5% of salary per child. If no spouse — 30% of salary for first child, 10% for each additional child. Maximum of 60% of salary). Duty Disability Retirement Benefit Member Eligibility: disabled after six-month waiting period. Amount of benefit: determined the same as Service Retirement Benefit. Recovery: restoration to service. Survivor See Survivor's Benefit section under Service Retirement. 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. 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 81 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS Retiree Pension Benefit (Continued) Special Provisions Age Under disability or death benefits, a surviving spouse may elect a lump -sum payment of $5,000 in lieu of future monthly benefits. Vesting Surviving I Spouses Termination after 20 years of service (RCW 41.18.130) or five years of service (RCW 41.26.090). Deferred Benefit 0 0 1 0 0 Commencement When a firefighter would have had 25 years of service (RCW 41.18.130) or age 50 RCW 090). Amount of Benefit 2% of salary for each year of service. Other provisions apply, see statutes. Death While Vested Prior to Payment of firefighter's deferred benefit to spouse or child. Commencement of Benefits Postretirement Increase 90+ 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 Age Service Retirees Disabled I Retirees Surviving I Spouses Total <75 0 0 1 0 0 0 1 0 2 0 0 1 2 0 0 0 2 3 2 0 75-79 80-84 85-89 90+ Total 1 3 3 7 Average Inactive Participant Age: 81.5 82 CITY OF TUKWILA: 2024 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, 2023 Measurement Date December 31, 2023 Report Date December 31, 2024 Discount Rate The discount rate selected is 3.77%. 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 PUB -10 Safety Headcount -Weighted Healthy Mortality Projected Generationally with MP -2021 Setback 1 for Males. 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 3.25%, based on State of Washington 2021 actuarial valuation report. Used to increase FPF benefits annually. 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 2024: Aggregate OPEB Amounts OPER Liabilities $ 4,726,507 OPEB Assets - Deferred outflows of resources 408,558 Deferrred inflows of resources - OPEB expenses/expenditures 131, 369 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. 83 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS Benefits Provided As mandated by RCW 41.26, RCW 41.18, and RCW 41.20, the City reimburses 100% of allowable healthcare costs for LEOFF 1 retirees. All firefighters and law enforcement officers employed between 3/1/1970 and 10/31/1977 are members of a single employer defined benefit OPEB plan and are provided lifetime insurance coverage for medical, hospital and nursing care costs. These benefits are accounted for in Police and Fire Pension and Relief Funds and are considered, in substance, a postemployment healthcare plan administered by, but not part of, the Police and Fire Pension Plans. Extraordinary health and dental expenses, as determined by the Pension Board, require prior approval. Insurance policies for this benefit are underwritten as part of the City's overall insurance program. The LEOFF 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, 2023 (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 - Active employees - 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. Net OPEB Liability The City's total OPEB liability was valued as of December 31, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of December 31, 2023. Actuarial Assumptions The total OPEB liability in the December 31, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Measurement Date: December 31, 2022 December 31, 2023 Discount Rate 4.05% 3.77% Inflation 2.75% 2.75% Healthcare Cost Trend Rates 4.80% 4.90% 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 Actuarial Valuation. • Inactive employees (retirees) pay 0% of the cost of benefits. 84 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS • 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 3.77%. 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. 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 (2.77%) or one percentage point higher (4.77%) as follows: Current Discount Rate 1% Decrease 2.77% 3.77% 1% Increase 4.77% Total OPEB Liability Asset $ 5,107,896 $ 4,726,507 $ 4,390,920 Increase Decrease 381,389 335,587 Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The healthcare trend for this valuation started at 6.80% and decreased to 4.01 % over 51 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 (5.80%) or one percentage point higher (7.80%) than current healthcare cost trend rates as follows: Current Healthcare Cost 1% Decrease 5.80% Trend Rate 6.80% 1% Increase 7.80% Total OPEB Liability Asset $ 4,412,043 $ 4,726,507 $ 5,076,040 Increase Decrease 314,464 349,533 Changes in the Total OPEB Liability — City of Tukwila LEOFF Plan 1 Total OPEB Liability Balance as of December 31, 2023 $ 5,058,252 Changes: Interest 195,481 Difference Between Expected and Actual Experience 27,405 Changes of Assumptions (91,517) Benefit Payments (463,114) Net Changes (331,745) Balance as of December 31, 2024 $ 4,726,507 For the year ended December 31, 2024, the City recognized an OPEB expense of $131,369. Contributions subsequent to the measurement date of $408,558 will be reported as an expense in the next fiscal year. 85 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS At December 31, 2024, the City reported current and non-current OPEB liability as follows: Report Year Ending December 31: Amount Current OPEB Liability $ 398,089 Non -Current OPEB Liability 4,328,418 Total OPEB Liability $ 4,726,507 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 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 42nd and 53,d 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. 86 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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. • 2021 B 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. 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: 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. 87 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS The schedules that follow summarize the long-term debt transactions of the City for the year ended December 31, 2024. CHANGES IN LONG-TERM LIABILITIES SUMMARY - GOVERNMENTAL ACTIVITIES 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 DUE TO TOTAL OTHER Year Ended General Obligation General Obligation GENERAL PRIVATE SPECIAL COMPENSATED OTHER POSTEMPLOY- LEASE SBTrA NET PENSION CLAIMS INCURRED Special Assessments OBLIGATION PLACEMENT ASSESSMENT ABSENCES GOVERNMENTS MEM BENEFITS LIABILITY LIABILITY LIABILITY NOT REPORTED TOTAL Outstanding 01/01/2024 $ 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 $ 1,441,000 $ 137,022,145 Added - - - 819,951 - - 2,085,974 - - - 2,905,925 Retired / redeemed (4,825,000) (977,000) (390,000) 10,695,373 (199,548) (331,745) 3,422,775 (369,688) (459,803) (780,900) (8,333,685) Outstanding 12/31/2024 $ 104,770,000 $ 4,275,000 $ 1,895,000 $ 4,062,712 $ 3,992,406 $ 4,726,507 $ 4,287,461 $ 1,434,596 $ 1,490,604 $ 660,100 $ 131,594,386 Add Premiums, Subtract Discounts 2029-2033 37, 655, 000 11, 800, 075 2,059,600 159,006 1,391,052 493,598 - - 53, 558, 331 8,306,296 Total Long -Term Liabilities 4,392,250 246,900 6,666 1,706,762 177,401 49,019,979 2039-2043 1,640,000 $ 139,900,681 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. 88 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 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 $ 104,770,000 $ 30,418,225 $ 4,275,000 $ 483,631 $ 3,992,406 $ 1,284,141 $ 1,895,000 $ 263,667 $ 147,382,070 88 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS CHANGES IN LONG-TERM LIABILITIES - GOVERNMENTAL ACTIVITIES Interest OUTSTANDING OUTSTANDING Due Within ITEM Rates Maturitv Authorized 12/31/2023 ISSUED REDEEMED 12/31/2024 One Year GOVERNMENTAL ACTIVITIES: 5,058,252 331,745 4,726,507 398,089 Net Pension Liability 1,950,407 - 459,803 Limited General Obligation (LTGO) Bonds Payable: - Lease Liability 2,201,486 2,085,974 - 4,287,461 685,170 2015 LTGO-Interurban, BAR 2.25-3.00 12/01/35 $ 5,825,000 $ 3,885,000 $ $ 275,000 $ 3,610,000 $ 285,000 2017 LTGO-42nd & 53rd Streets 3.00-3.50 12/01/37 8,180,000 6,210,000 365,000 5,845,000 375,000 2018 LTGO- Public Works Shops 4.00-5.00 12/01/38 18,365,000 16,870,000 805,000 16,065,000 845,000 2019LTGO - Public Safety Plan 3.00-5.00 12/01/39 22,830,000 21,015,000 975,000 20,040,000 1,025,000 Total LTGO Bonds Payable 55,200,000 47,980,000 2,420,000 45,560,000 2,530,000 Unlimited General Obligation (UTGO) Bonds Payable: 2016UTGO-Public Safety 4.50-5.00 12/01/35 77,385,000 26,210,000 1,490,000 24,720,000 1,560,000 2019UTGO-Public Safety 3.00-5.00 12/01/38 37,770,000 35,405,000 915,000 34,490,000 1,085,000 Total UTGO Bonds Payable 115,155,000 61,615,000 2,405,000 59,210,000 2,645,000 Private Placement Bonds: 2020 Refunding Streets (2010GO) 1.29 12/01/24 1,995,000 510,000 510,000 - - 2021 Refunding (Ref 11/14GO & PWS) 1.15-2.70 12/01/34 6,720,500 4,742,000 467,000 4,275,000 477,700 Total Private Placement Bonds Payable 11,991,500 5,252,000 977,000 4,275,000 477,700 Issuance premiums - 8,925,467 619,171 8,306,296 619,171 Net Bonds Payable 182,346,500 123,772,467 6,421,171 117,351,296 6,271,871 Due to Other Governments 2019 SCORE Refunding 4.00-5.00 01/01/39 4,921,702 4,191,954 199,548 3,992,406 207,742 Total Due Other Governments 4,921,702 4,191,954 199,548 3,992,406 207,742 Special Assessment Debt Klickitat Urban Access Project 3.150-5.375 01/15/29 6,687,500 2,285,000 390,000 1,895,000 445,000 Total Special Assessment Debt 6,687,500 2,285,000 390,000 1,895,000 445,000 Total Other Post -Em ploymentBenefits Liability 5,058,252 331,745 4,726,507 398,089 Net Pension Liability 1,950,407 - 459,803 1,490,604 - Lease Liability 2,201,486 2,085,974 - 4,287,461 685,170 Subscription Based Information Technology Agreements Liability 1,804,284 - 369,688 1,434,596 (73,450) Claims Incurred but not reported 1,441,000 - 780,900 660,100 660,100 Compensated Absences 3,242,762 819,951 - 4,062,712 819,951 Total Governmental Funds $ 193,955,702 $ 145,947,612 $ 2,905,925 $ 8,952,856 $ 139,900,681 $ 9,414,472 All governmental activities debt listed above is liquidated by the general fund in the current and prior years, 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. Compensated absences are reported at net under GASB 101. CHANGES IN LONG-TERM LIABILITIES SUMMARY - BUSINESS -TYPE ACTIVITIES 89 DIRECT PLACEMENT PUBLIC WORKS REVENUE TRUST FUND COMPENSATED NET PENSION BONDS LOANS ABSENCES LIABILITY TOTAL Outstanding 01/01/2024 $ 515,144 $ 902,817 $ 473,821 $ 450,685 $2,342,467 Added - - 568,012 - 568,012 Retired / redeemed (167,363) (573,417) - (79,198) (819,978) Outstanding 12/31/2024 $ 347,781 $ 329,400 $ 1,041,834 $ 371,487 $2,090,502 89 CITY OF TUKWILA: 2024 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. CHANGES IN LONG-TERM LIABILITIES - BUSINESS -TYPE ACTIVITIES Interest OUTSTANDING Business -Type Activities Due Within ITEM Year Ended REDEEMED 12/31/2024 One Year Public Works Trust Fund 5,016,000 272,886 272,886 Direct Placement Revenue Bonds Loans 684,000 2015 Water/Sewer/SWM Refunding 2.34 12/01/26 $ 1,742,527 $ 515,144 $ December $ 171,830 Total Bonds Payable 1,742,527 515,144 167,363 347,781 171,830 2014 Loan -Sewer 31 Principal Interest Principal Interest Total Public Works Trust Fund Loans Total 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 $ 347,781 $ 12,255 $ 329,400 $ 7,412 $ 696,848 CHANGES IN LONG-TERM LIABILITIES - BUSINESS -TYPE ACTIVITIES Public Works Trust Fund Loans: Interest OUTSTANDING OUTSTANDING Due Within ITEM Rates Maturity Authorized 12/31/2023 ISSUED REDEEMED 12/31/2024 One Year BUSINESS -TYPE ACTIVITIES: 5,016,000 272,886 272,886 Direct Placement Revenue Bonds 0.50-2.00 06/01/24 684,000 2015 Water/Sewer/SWM Refunding 2.34 12/01/26 $ 1,742,527 $ 515,144 $ $ 167,363 $ 347,781 $ 171,830 Total Bonds Payable 1,742,527 515,144 167,363 347,781 171,830 Public Works Trust Fund Loans: 2004 Loan-Water/Sewer 0.50-2.00 06/01/24 5,016,000 272,886 272,886 2004 Loan -Surface Water 0.50-2.00 06/01/24 684,000 37,212 37,212 2004 Loan -Surface Water 1.00 06/01/24 4,196,056 222,144 222,144 - - 2014 Loan -Sewer 0.5 06/01/32 750,000 370,575 41,175 329,400 41,175 Total Public Works Trust Fund Loans 11,139,651 902,817 573,417 329,400 41,175 Net Pension Liability 450,685 - 79,198 371,487 - Compensated Absences 473,821 568,012 - 1,041,834 568,012 Total Business -Type Activities $ 12,882,178 $ 2,342,467 $ 568,012 $ 819,978 $ 2,090,502 $ 781,017 TOTAL ALL FUNDS $ 206,837,880 $ 148,290,079 $ 3,473,937 $ 9,772,834 $ 141,991,183 $ 10,195,490 All business -type activities debt listed above is liquidated by the respective utility funds. Compensated absences are reported at net under GASB 101. 90 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS LONG-TERM LIABILITIES RECONCILIATION 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, 2024, the debt limits for the City were as follows: Without a Vote -------------With a Vote of the People ---------- Item 1.5% 2.5% 5.0% 7.5% Legal Limit Governmental Activities Business -Type Activities Balance 12/31/2024 General Obligation Bonds $ 104,770,000 $ - $104,770,000 General Obligation Bonds 115,491,516 Margin Available $ 92,976,894 - Private Placement 4,275,000 - 4,275,000 Special assessment bonds 1,895,000 - 1,895,000 Revenue Bonds - Direct Placement - 347,781 347,781 Public Works Trust Fund loans - 329,400 329,400 Due to Other Governments 3,992,406 - 3,992,406 Employee leave benefits 4,062,712 1,041,834 5,104,546 Net Premiums/Discounts 8,306,296 - 8,306,296 Other Post -Employment Benefits 4,726,507 - 4,726,507 Lease Liability 4,287,461 - 4,287,461 Subscription based IT agreements 1,434,596 - 1,434,596 Claims Incurred but not reported 660,100 - 660,100 Net Pension Liability 1,490,604 371,487 1,862,091 Total long-term debt $ 139,900,681 $ 2,090,502 $ 141,991,183 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, 2024, the debt limits for the City were as follows: Without a Vote -------------With a Vote of the People ---------- Item 1.5% 2.5% 5.0% 7.5% Legal Limit $ 149,258,410 $ 248,764,016 $ 497,528,032 $746,292,048 Outstanding Net Indebtedness 56,281,516 115,491,516 115,491,516 115,491,516 Margin Available $ 92,976,894 $ 133,272,500 $ 382,036,516 $630,800,532 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, 2024, $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. 91 CITY OF TUKWILA: 2024 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, 2024, 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 2024. 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, 2024 is $0 for its tax-exempt bond issues subject to the Tax Reform Act. Unused Lines of Credit As of December 31, 2024, 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. iI CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS NOTE 12 — ACCOUNTING CHANGES AND ERROR CORRECTIONS Change in accounting principle. As of December 31, 2024, the City implemented GASB 101- Compensated Absences. As a result of that implementation, an adjustment of $564,564 to the December 31, 2023 ending net position/fund balance was posted, adjusting the prior reporting period presented. Change to or within the financial reporting entity. As of December 31, 2024, both the Public Safety Plan and the City Facilities capital project funds were deemed to be Non -Major governmental funds. As a result, the December 31, 2023 fund balances were moved to "Other Governmental Funds". This adjustment was also reflected within the required supplementary information pages, outlining the details of the "Other Governmental Funds" within the Capital Project Funds statements. As of December 31, 2024, the Land Acquisition, Rec & Park Development capital project fund was deemed to be a Major governmental fund. As a result, the December 31, 2023 fund balance was moved from "Other Governmental Funds" to its own column within the Governmental Funds financial statements. Government -wide Governmental Activities Business -Type Activities Total Primary Government Governmental Funds Major Funds General Fund Arterial Street LID #33 Public Safety Plan City Facilities Land Acq Rec & Park Development Other Governmental Funds Total Governmental Funds Enterprise Funds Water Utility Sewer Utility Foster Golf Course Surface Water Utility Total Enterprise Funds December 31, 2023 December 31, 2024 Net Position / Fund Balance Change in Change to or within the Net Position /Fund Balance as previously reported Accounting; Principle financial reporting entity as restated/adiusted 271,112,731 106,582,649 377,695,380 24,991,228 6,162,217 535,318 1,224,422 1,201,634 12,909,433 47,024,252 21,995,059 26,226,265 6,458,493 51,902,833 106,582,650 501,353 271,614,084 63,211 106,645,860 564,564 378,259,944 - 24,991,228 6,162,217 535,318 13,213 18,781 12,903 18,314 63,211 (1,224,422) (1,201,634) 4,185,405 (1,759,349) NOTE 13 — POTENTIAL POLLUTION REMEDIATION AND OTHER LIABILITIES 4,185,405 11,150,084 47,024,252 22,008,272 26,245,046 6,471,396 51,921,147 106,645,861 There are several lawsuits in which the City is involved. The City Attorney estimates that the potential claims against the City 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 has reached a settlement with the City and all "small" parties, which will become effective once the government lodges the Consent Decree with the court, after the public notice and comment period, likely by the end of 2025. While the Consent Decree is being finalized, the major liable parties (Seattle, King County, and Boeing) have agreed to perform the remedy and this remedial work began under a 2024 Cleanup Order. 93 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS 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 / orjointly contracting for risk management services. As of December 31, 2024, WCIA has a total of 168 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 sub -limits. 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, sub -limits, 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 sub -limits. 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 sub -limits. In-house services include risk management consultation, loss control field services, and claims and litigation administration. WCIA contracts for certain claims investigations, consultants for personnel and land use issues, insurance brokerage, actuarial, and lobbyist services. WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an outside, independent actuary. The assessment covers loss, loss adjustment, reinsurance and other administrative expenses. As outlined in the interlocal, WCIA retains the right to additionally assess the membership for any funding shortfall. An investment committee, using investment brokers, produces additional revenue by investment of WCIA's assets in financial instruments which comply with all State guidelines. A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day to day operations of WCIA. 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. 94 CITY OF TUKWILA: 2024 ACFR NOTES TO THE FINANCIAL STATEMENTS The City self -insures for unemployment benefits. This is a budgeted expenditure each year and the City paid $59,196 in unemployment in 2024. 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). A reserve equal to 1.5 times the IBNR liability is recorded as a Reserve for Unreported Claims and is listed separately on the face of the financials. 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 2024 and 2023. SUMMARY OF HEALTH CARE CLAIM LIABILITIES Claim Liabilities at Beginning of Year Claim expenses: Current year and changes in estimates Claim payments and expenses Claim Liabilities at End of Year NOTE 15 — SUBSEQUENT EVENTS Active Employees Retired Employees LEOFF 1 2024 2023 2024 2023 $ 1,371,750 $ 1,505,500 $ 69,250 $ 69,500 4,992,441 5,694,850 114,365 474,653 (4,361,541) (5,828,600) (85,165) (474,903) $ 630,900 $ 1,371,750 $ 29,200 $ 69,250 In accordance with accounting standards generally accepted in the United States, subsequent events have been evaluated through the June 30, 2025, the date in which the financial statements have been issued. On May 27, 2025, a fire suppression pipe burst at the Tukwila Community Center causing a sizable flood. As of June 30, 2025, the City estimates the total cost of the entire repair at $300 thousand. The City's assumption is the project costs will be covered by insurance, minus the City's $25 thousand deductible. In December 2021, the City Council authorized the sale of the George Long Shops property to King County. This property, comprised of four parcels and an unnamed right of way, is located at 1400 Interurban Ave South and had been utilized by the City's fleet and facilities crews. On June 9, 2025, the purchase of this property was completed for a total of $4.5 million. 95 CITY OF TUKWILA: 2024 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, 2024 EXPENDITURES: Current: General Government Public safety Transportation Natural and economic environment Culture and recreation Debt service: Principal Interest Capital outlay Total Expenditures Excess of Revenues And Expenditures OTHER FINANCING SOURCES (USES): 10,944,938 Original Budget (GAAP Basis) Final Budget (GAAP Basis) Actual Results Variance With Final Budget Positive (Negative) REVENUES: 41,682,819 209,396 5,670,080 5,714,662 Taxes $ 55,304,000 $ 56,404,000 $ 57,359,441 $ 955,441 Licenses and permits 5,596,743 5,596,743 5,904,639 307,896 Intergovernmental 5,129,201 6,270,484 7,047,896 777,412 Charges for services 4,075,021 4,536,691 4,616,229 79,538 Fines and Forfeitures 759,275 759,275 443,361 (315,914) Investment earnings 130,550 380,550 1,069,873 689,323 Miscellaneous 104,100 104,100 590,584 486,484 Total Revenues 71,098,890 74,051,843 77,032,023 2,980,180 EXPENDITURES: Current: General Government Public safety Transportation Natural and economic environment Culture and recreation Debt service: Principal Interest Capital outlay Total Expenditures Excess of Revenues And Expenditures OTHER FINANCING SOURCES (USES): 10,944,938 12,685,519 13,117,335 (431,816) 40,757,544 41,892,215 41,682,819 209,396 5,670,080 5,714,662 4,617,714 1,096,948 6,178,547 6,368,003 6,441,212 (73,209) 5,392,469 5,784,439 5,349,458 434,980 - 759,414 (759,414) - - 92,094 (92,094) 320,000 590,000 785,431 (195,431) 69,263,579 73,034,838 72,845,477 189,360 1,835,311 1,017,005 4,186,546 3,169,541 Lease and subscription financing proceeds - - (147,662) (147,662) Transfers in 1,517,849 1,787,849 1,543,740 (244,109) Transfers out (5,765,345) (5,865,345) (5,851,627) 13,717 Total Other Financing Sources And Uses (4,247,496) (4,077,496) (4,455,549) (378,054) Net change in fund balances Fund balances - beginning Fund Balances - Ending (2,412,184) (3,060,490) (269,003) 2,791,487 22,230,656 20,330,040 24,991,228 4,661,188 $ 19,818,472 $ 17,269,550 $ 24,722,225 $ 7,452,675 The notes to the financial statements are an integral part of this statement. 96 CITY OF TUKWILA: 2024 ACFR REQUIRED SUPPLEMENTAL INFORMATION 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, 2024 97 Original Budget (GAAP Basis) Final Budget (GAAP Basis) Actual Results Variance With Final Budget Positive (Negative) REVENUES: Taxes $ 2,200,000 $ 2,200,000 $ 2,934,789 $ 734,789 Licenses and permits 450,000 450,000 418,424 (31,576) Intergovernmental 16,369,800 16,569,800 1,773,927 (14,795,873) Fire Impact Fees 200,000 200,000 328,192 128,192 Fines and Forfeitures - - 3,102 3,102 Investment earnings 5,000 5,000 317,096 312,096 Miscellaneous 80,000 80,000 144,600 64,600 Total Revenues 19,304,800 19,504,800 5,920,131 (13,584,669) EXPENDITURES: Current: Transportation 2,484,451 3,784,451 2,917,338 867,113 Capital outlay 16,725,000 17,975,000 1,838,840 16,136,161 Total Expenditures 19,209,451 21,759,451 4,756,178 17,003,273 Excess of Revenues And Expenditures 95,349 (2,254,651) 1,163,953 3,418,604 Net change in fund balances 95,349 (2,254,651) 1,163,953 3,418,604 Fund balances - beginning 5,295,017 6,558,631 6,162,217 (396,414) Fund Balances - Ending $ 5,390,366 $ 4,303,980 $ 7,326,170 $ 3,022,190 97 CITY OF TUKWILA: 2024 ACFR REQUIRED SUPPLEMENTAL INFORMATION 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, 2024 Variance With Original Final Final Budget Budget Budget Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative) REVENUES: Special Assessment $ 400,000 $ 400,000 $ 418,885 $ 18,885 Investment earnings 104,000 104,000 85,990 (18,010) Miscellaneous - - 254 254 Total Revenues 504,000 504,000 505,129 1,129 EXPENDITURES: Debt service: Principal 400,000 400,000 390,000 10,000 Interest 104,000 104,000 113,821 (9,821) Total Expenditures 504,000 504,000 503,821 179 Excess of Revenues And Expenditures - - 1,308 1,308 Net change in fund balances Fund balances - beginning Fund Balances - Ending - - 1,308 1,308 586,678 563,265 535,318 (27,947) $ 586,678 $ 563,265 $ 536,626 $ (26,640) 98 CITY OF TUKWILA: 2024 ACFR REQUIRED SUPPLEMENTAL INFORMATION 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, 2024 Variance With Original Final Final Budget Budget Budget Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative) REVENUES: Taxes $ 315,000 $ 315,000 $ 197,905 $ (117,095) Intergovernmental - - 82,919 82,919 Charges for services 112,000 112,000 981,266 869,266 Investment earnings 8,000 150,000 210,072 60,072 Total Revenues 435,000 577,000 1,472,162 895,162 EXPENDITURES: Current: Culture and recreation 1,179,000 1,321,000 143,051 1,177,949 Capital outlay - - 1,174,382 (1,174,382) Total Expenditures 1,179,000 1,321,000 1,317,433 3,567 Excess of Revenues And Expenditures (744,000) (744,000) 154,729 898,729 OTHER FINANCING SOURCES (USES): Transfers in 19,000 19,000 19,000 - Total Other Financing Sources And Uses 19,000 19,000 19,000 - Net change in fund balances (725,000) (725,000) 173,729 898,729 Fund balances - beginning 3,307,186 2,677,484 4,185,405 1,507,921 Fund Balances - Ending $ 2,582,186 $ 1,952,484 $ 4,359,134 $ 2,406,650 99 CITY OF TUKWILA: 2024 ACFR REQUIRED SUPPLEMENTAL INFORMATION 100 CITY OF TUKWILA: 2024 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 Includes administration, finance, municipal court, attorney, and city clerk activities. Public Safety Includes all police and fire activities. Includes all residential and arterial street maintenance and Transportation construction. Natural and Economic Reflects all planning and building inspection as well as Environment environmental and community services. Culture and Recreation Includes expenditures related to parks and recreational activities. The information presented in the following required schedules was determined as part of the actuarial valuations at the dates indicated. 101 CITY OF TUKWILA: 2024 ACFR REQUIRED SUPPLEMENTAL INFORMATION COST SHARING MULTIPLE EMPLOYER DEFINED BENEFIT PENSION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PERS 1 PERS 2/3 State's Employer's proportionate share proportionate Plan fiduciary Employer's Employer's of thenet pension Total: Proportionate share of the net net position as a proportion of the proportionate share of liability (asset) share of the net pension liability as percentage of net pension the net pension liability associated with the pension liability Employer's covered a percentage of the total pension Fiscal Year Ending liability (asset) (asset) employer (asset) payroll covered payroll liability (asset) June 30, 2015 0.135736% $ 7,100,255 $ $ 7,100,255 $ 15,561,015 45.63% 59.10% June 30, 2016 0.131354% 7,054,328 7,054,328 15,736,921 44.83% 57.03% June 30, 2017 0.127058% 6,029,001 6,029,001 16,022,842 37.63% 61.24% June 30, 2018 0.122630% 5,476,697 5,476,697 16,327,082 33.54% 63.22% June 30, 2019 0.121291% 4,664,070 4,664,070 16,858,481 27.67% 67.12% June 30, 2020 0.113704% 4,014,365 4,014,365 17,063,647 23.53% 68.64% June 30, 2021 0.104195% 1,272,465 1,272,465 15,827,030 8.04% 88.74% June 30, 2022 0.109635% 3,052,641 3,052,641 17,683,212 17.26% 76.56% June 30, 2023 0.105185% 2,401,092 2,401,092 18,458,622 13.01% 80.16% June 30, 2024 0.104798% 2,392,257 2,392,257 23,279,694 10.28% 84.059/o PERS 2/3 PSERS State's Employer's proportionate share proportionate Plan fiduciary Employer's Employer's of the net pension Total: Proportionate share of the net net position as a proportion of the proportionate share of liability (asset) share of the net pension liability as percentage of net pension the net pension liability associated with the pension liability Employer's covered a percentage of the total pension Fiscal Year Ending liability (asset) (asset) employer (asset) payroll covered payroll liability (asset) June 30, 2015 0.173592% $ 6,202,541 $ $ 6,202,541 $ 15,406,589 40.26% 89.20% June 30, 2016 0.166622% 8,389,286 8,389,286 15,579,718 53.85% 85.82% June 30, 2017 0.161787% 5,621,325 5,621,325 15,861,514 35.44% 90.97% June 30, 2018 0.156335% 2,669,281 2,669,281 16,228,608 16.45% 95.77% June 30, 2019 0.154903% 1,504,635 1,504,635 16,843,895 8.93% 97.77% June 30, 2020 0.146296% 1,871,042 1,871,042 17,053,352 10.97% 97.22% June 30, 2021 0.132317% (13,180,902) (13,180,902) 15,827,030 -83.28% 120.29% June 30, 2022 0.141085% (5,232,534) (5,232,534) 17,683,212 -29.59% 106.73% June 30, 2023 0.133502% (5,471,824) (5,471,824) 18,458,622 -29.64% 107.02% June 30, 2024 0.132300% (5,422,558) (5,422,558) 23,279,694 -23.29% 105.179/o PSERS 102 State's Employer's proportionate share proportionate Plan fiduciary Employers Employer's of the net pension Total: Proportionate share of the net net position as a proportion of the proportionate share of liability (asset) share of the net pension liability as percentage of net pension the net pension liability associated with the pension liability Employer's covered a percentage of the total pension Fiscal Year Ending liability (asset) (asset) employer (asset) payroll covered payroll liability (asset) June 30, 2015 0.052748% $ 9,628 $ $ 9,628 $ 154,426 6.23% 95.08% June 30, 2016 0.048428% 20,581 20,581 157,203 13.09% 90.41% June 30, 2017 0.455650% 8,928 8,928 161,328 5.53% 96.26% June 30, 2018 0.025080% 311 311 98,474 0.32% 99.79% June 30, 2019 0.032158% (4,182) (4,182) 147,556 -2.83% 101.85% June 30, 2020 0.028557% (3,929) (3,929) 175,312 -2.24% 101.68% June 30, 2021 0.026736% (61,423) (61,423) 181,231 -33.89% 123.67% June 30, 2022 0.035312% (25,248) (25,248) 240,700 -10.49% 103.17% June 30, 2023 0.039451% (41,833) (41,833) 302,683 -13.82% 107.90% June 30, 2024 0.034604% (36,694) (36,694) 374,130 -9.81% 102.61°/ 102 CITY OF TUKWILA: 2024 ACFR REQUIRED SUPPLEMENTAL INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (continued) LEOFFI LEOFF 2 State's Employer's Employer's proportionate share proportionate share proportionate Plan fiduciary proportionate Employer's Employer's of the net pension Total: Proportionate share of the net net position as a proportion of the proportionate share of liability (asset) share of the net pension liability as percentage of share of the net net pension the net pension liability associated with the pension liability Employer's covered a percentage of the total pension Fiscal Year Ending liability (asset) (asset) employer (asset) payroll covered payroll liability (asset) June 30, 2015 0.077944% $ (939,397) $ - $ (939,397) $ 76,144 -1233.71% 127.36% June 30, 2016 0.077890% (802,490) (5,428,021) (6,230,511) - n/a 123.74% June 30, 2017 0.082086% (1,245,425) (8,424,025) (9,669,450) n/a 135.96% June 30, 2018 0.083934% (1,523,823) (10,307,102) (11,830,925) n/a 144.42% June 30, 2019 0.082668% (1,634,025) (11,052,506) (12,686,531) n/a 148.78% June 30, 2020 0.081701% (1,542,931) (10,436,345) (11,979,276) n/a 146.88% June 30, 2021 0.083135% (2,847,841) (19,262,726) (22,110,567) n/a 187.45% June 30, 2022 0.082276% (2,360,180) (15,964,199) (18,324,379) n/a 169.62% June 30, 2023 0.082520% (2,449,213) (16,566,419) (19,015,632) n/a 175.99% June 30, 2024 0.128800% (2,384,004) (16,125,342) (18,509,346) n/a 168.48% LEOFF 2 103 State's Employer's proportionate share proportionate Plan fiduciary Employer's Employer's of the net pension Total: Proportionate share of the net net position as a proportion of the proportionate share of liability (asset) share of the net pension liability as percentage of net pension the net pension liability associated with the pension liability Employer's covered a percentage of the total pension Fiscal Year Ending liability (asset) (asset) employer (asset) payroll covered payroll liability (asset) June 30, 2015 0.519159% $ (5,335,916) $ (2,123,832) $ (7,459,748) $ 15,113,237 -49.36% 111.67°/ June 30, 2016 0.510663% (2,970,169) (1,936,334) (4,906,503) 15,480,062 -31.70% 106.04% June 30, 2017 0.503269% (6,983,743) (4,530,224) (11,513,967) 15,743,133 -73.14% 113.36% June 30, 2018 0.480347% (9,752,091) (6,314,295) (16,066,386) 15,759,700 -101.95% 118.50% June 30, 2019 0.473755% (10,975,449) (7,106,396) (18,081,845) 16,581,465 -109.05% 119.43°% June 30, 2020 0.438096% (8,936,519) (5,714,227) (14,650,746) 16,552,520 -88.51% 115.83% June 30, 2021 0.420145°% (24,403,761) (15,743,090) (40,146,851) 16,037,465 -250.33% 142.00% June 30, 2022 0.424099% (11,525,730) (7,466,117) (18,991,847) 16,902,693 -112.36% 116.09°% June 30, 2023 0.325346% (7,803,743) (4,983,390) (12,787,133) 13,688,491 -93.42% 113.17% June 30, 2024 0.606448°% (4,219,238) (2,738,062) (6,957,300) 11,197,742 -62.13°% 109.27°% 103 CITY OF TUKWILA: 2024 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 Contribution contractually required deficiency contributions (excess) Covered Payroll Contributions as a percentage of covered payroll December 31, 2015 $ 686,881 $ (686,881) $ - $15,654,255 4.39% December 31, 2016 752,418 (752,418) - 15,777,881 4.77% December 31, 2017 789,712 (789,712) - 16,153,755 4.89% December 31, 2018 846,714 (846,714) - 16,742,206 5.06% December 31, 2019 854,217 (854,217) - 17,030,131 5.02% December 31, 2020 740,837 (740,837) - 16,004,087 4.63% December 31, 2021 705,904 (705,904) - 16,849,796 4.19% December 31, 2022 668,862 (668,862) - 18,311,585 3.65% December 31, 2023 667,578 (667,578) - 18,524,206 3.60% December 31, 2024 659,733 (659,733) - 19,765,129 3.34% PERS 2/3 Fiscal Year Ending Statutorily or contractually required contributions Less: Contributions in relation to the statutorily or Contribution contractually required deficiency contributions excess Covered Payroll Contributions as a percentage of covered payroll December 31, 2015 $ 873,248 $ (873,248) $ - $15,498,171 5.63% December 31, 2016 972,612 (972,612) - 15,616,400 6.23% December 31, 2017 1,090,715 (1,090,715) - 16,024,008 6.81% December 31, 2018 1,245,790 (1,245,790) - 16,629,084 7.49% December 31, 2019 1,310,892 (1,310,892) - 17,014,243 7.70% December 31, 2020 1,267,208 (1,267,208) - 16,000,110 7.92% December 31, 2021 1,160,770 (1,160,770) - 16,849,796 6.89% December 31, 2022 1,115,620 (1,115,620) - 18,311,585 6.09% December 31, 2023 1,231,334 (1,231,334) - 18,524,206 6.65% December 31, 2024 1,481,386 1,481,386 - 19,765,129 7.49% PSERS Fiscal Year Ending Statutorily or contractually required contributions Less: Contributions in relation to the statutorily or Contribution contractually required deficiency contributions excess Covered Payroll Contributions as a percentage of covered payroll December 31, 2015 $ 10,105 $ (10,105) $ - $ 156,084 6.47% December 31, 2016 10,642 (10,642) - 161,481 6.59% December 31, 2017 8,612 (8,612) - 129,747 6.64% December 31, 2018 7,768 (7,768) - 113,122 6.87% December 31, 2019 12,191 (12,191) - 170,971 7.13% December 31, 2020 12,039 (12,039) - 174,773 6.89% December 31, 2021 12,464 (12,464) - 189,293 6.58% December 31, 2022 18,354 (18,354) - 293,269 6.26% December 31, 2023 20,700 (20,700) - 298,562 6.93% December 31, 2024 25,200 25,200 - 307,690 8.19% 104 CITY OF TUKWILA: 2024 ACFR REQUIRED SUPPLEMENTAL INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS (continued) LEOFF 2 Fiscal Year Ending Statutorily or contractually required contributions Less: Contributions in relation to the statutorily or Contribution contractually required deficiency contributions excess Covered Payroll Contributions as a percentage of covered payroll December 31, 2015 $ 776,719 $ (776,719) $ - $15,380,541 5.05% December 31, 2016 787,110 (787,110) - 15,586,296 5.05% December 31, 2017 815,548 (815,548) - 15,860,571 5.14% December 31, 2018 855,040 (855,040) - 16,132,860 5.30% December 31, 2019 868,767 (868,767) - 16,611,112 5.23% December 31, 2020 831,485 (831,485) - 16,054,647 5.18% December 31, 2021 813,295 (813,295) - 16,265,695 5.00% December 31, 2022 872,391 (872,391) - 17,624,561 4.95% December 31, 2023 518,709 (518,709) - 9,373,415 5.53% December 31, 2024 584,270 584,270 - 10,182,759 5.74% 105 CITY OF TUKWILA: 2024 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Interest 49,716 49,332 38,796 - 39,385 42,542 29,959 22,655 14,697 25,399 Difference between expected & actual experience (2,442) (311,190) - (2,810) 17,256 (31,990) 1,774 (220,445) 10,729 217,330 Changes of assumptions - (62,728) - (177,772) (51,490) (3,148) 75,346 (76,289) (126,650) (13,455) Benefits payments, included refunds of employee contributions (58,277) (59,988) (69,186) 17,700 (80,468) (60,172) (69,186) (58,330) (61,444) (79,356) Net change in total pension liability (11,003) (384,574) (30,390) (162,882) (75,317) (52,768) 37,893 (332,409) (162,668) 149,918 Total pension liability - beginning 1,840,928 1,829,925 1,445,351 1,414,961 1,252,079 1,176,762 1,123,995 1,161,888 829,479 666,811 Total pension liability - ending (a) 1,829,925 1,445,351 1,414,961 1,252,079 1,176,762 1,123,994 1,161,888 829,479 666,811 816,729 Plan Fiduciary Net Position Contributions - employer 63,590 66,360 68,848 (139) 71,286 68,569 72,088 71,112 74,397 69,029 Net investment income 2,667 7,988 39,157 (39,477) 27,770 34,948 31,875 (20,255) 85,126 86,708 Benefit payments, including refunds of employee contributions (58,277) (59,988) (69,186) 17,700 (80,468) (60,172) (69,186) (58,330) (61,444) (79,356) Administrative expense (4,500) (4,500) (4,624) 1,124 - (1,750) Other - - - 2,716 - - - (500) - (61,444) Net change in plan fiduciary net position 3,480 9,860 34,195 (18,076) 18,588 43,345 34,777 (7,973) 96,329 14,937 Plan fiduciary net position - beginning 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 1,627,552 Plan fiduciary net position - ending (b) 1,416,506 1,426,366 1,460,561 1,442,485 1,461,073 1,504,418 1,539,196 1,531,223 1,627,552 1,642,489 City's net pension liability - ending (a) -(b) 413,419 18,985 (45,600) (190,406) (284,311) (380,424) (377,308) (701,744) (960,741) (825,760) Plan fiduciary net position as a percent of total pension liability 77.41°% 98.69% 103.22% 115.21% 124.16% 133.85% 132.47°% 184.60% 244.08% 201.11°% Covered payroll - - - - - - - - - - City net pension liability as a percent of covered employee payroll n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 106 CITY OF TUKWILA: 2024 ACFR REQUIRED SUPPLEMENTAL INFORMATION Schedule of Employer Contributions Less: Contributions in Statutorily Relation to the Contribution as a Determined Statutorily Determined Contribution Percentage of Covered Fiscal Year Ending Contribution Contribution Deficiency (Excess) 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 December 31, 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 December 31, 2024 - 69,029 (69,029) 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 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% 2024 4.40% 107 CITY OF TUKWILA: 2024 ACFR REQUIRED SUPPLEMENTAL INFORMATION 108 City of Tukwila Schedule of Changes in Total OPEB Liability and Related Ratios LEOFF Plan 1 For the year ended December 31, 2024 Last 7 Fiscal Years* 2018 2019 2020 2021 2022 2023 2024 TotaIOPEBliability - beginning $26,383,115 $14,694,242 $12,700,180 $7,622,718 $7,898,399 $6,378,071 $5,058,252 Interest 469,303 471,554 462,935 204,469 154,176 114,013 195,481 Differences between expected and actual experience (3,780,437) (199,491) (5,203,755) (92,607) (1,163,334) (56,710) 27,405 Changes of assumptions (7,947,448) (1,896,319) 107,644 538,778 (131,930) (1,013,670) (91,517) Benefit Payments (430,291) (369,806) (444,286) (374,959) (379,240) (363,452) (463,114) Other changes - TotalOPEBliability -ending 14,694,242 12,700,180 7,622,718 7,898,399 6,378,071 5,058,252 4,726,507 Covered -employee payroll - - Total OPEB liability as a % of covered payroll n/a 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 a\railable is presented. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75. 108 CITY OF TUKWILA: 2024 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 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 street purposes, state and federal grants, and the General Fund. • 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. • 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. • The Public Safety Plan — This 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 — This 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. 109 CITY OF TUKWILA: 2024 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING BALANCE SHEET NON -MAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2024 ASSETS: Cash and cash equivalents Taxes receivable Customer receivables Due from other governmental units Restricted Assets: Cash and cash equivalents Capital assets held for resale Total Assets LIABILITIES AND FUND BALANCES: Current liabilities Accounts payable Accrued wages and benefits Customer deposit Total Liabilities Deferred inflows of resources Unavailable revenue -property tax Total Deferred Inflows of Resources Fund balances: Restricted Assigned Total Fund balances Total Liabilities and Fund Balances Total Total Total Total Special Revenue Debt Service Capital Project Governmental Funds Funds Funds Funds $ 3,921,322 46,895 65,012 4,000 193,719 $ 1,323,153 108,734 $ 6,195,205 45,072 13,999 21,380 370,410 $ 11,439,680 91,967 79,011 134,114 193,719 370,410 4,230,949 1,431,887 6,646,065 12,308,901 46,627 - 162,551 209,177 4,685 - - 4,685 14,618 - 7,575 22,193 65,930 - 170,126 236,055 - 108,734 - 108,734 108,734 108,734 4,165,018 1,323,153 - 5,488,171 - - 6,475,941 6,475,941 4,165,018 1,323,153 6,475,941 11,964,111 $ 4,230,948 $ 1,431,887 $ 6,646,065 $ 12,308,901 me CITY OF TUKWILA: 2024 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, 2024 EXPENDITURES: Current: General government Total Total Total Total 61,451 Special Revenue Debt Service Capital Project Governmental 496,889 - 471 Funds Funds Funds Funds REVENUES: - 5,802,000 - 5,802,000 Interest 4,269,323 - Taxes $ 984,326 $ 4,797,284 $ 556,510 $ 6,338,121 Charges for services - - 1,091,836 1,091,836 Intergovernmental 14,000 - 603,883 617,883 Investment earnings 157,314 67,918 255,038 480,269 Miscellaneous 157,393 - - 157,393 Total Revenues 1,313,033 4,865,202 2,507,267 8,685,501 EXPENDITURES: Current: General government - 943,307 943,307 Public safety 61,451 - - 61,451 Transportation - 419,950 419,950 Natural and economic environment 496,889 - 471 497,360 Debt service Principal - 5,802,000 - 5,802,000 Interest 4,269,323 - 4,269,323 Capital Outlay - - 1,920,048 1,920,048 Total Expenditures 558,340 10,071,323 3,283,776 13,913,439 Excess (deficiency) of revenues 754,693 (5,206,121) (776,509) (5,227,938) Over (Under) Expenditures OTHER FINANCING SOURCES (USES): Transfers in 5,259,348 3,118,189 8,377,537 Transfers out - (2,335,575) (2,335,575) Total Other Financing Sources And Uses - 5,259,348 782,614 6,041,963 Net change in fund balances 754,693 53,227 6,105 814,026 Fund balances - beginning 3,410,325 1,269,926 8,229,182 12,909,433 Presentation Change - Major vs Non -Major - - (1,759,349) (1,759,349) FUND BALANCES - BEGINNING AS RESTATED 3,410,325 1,269,926 6,469,833 11,150,084 Fund Balances - Ending $ 4,165,018 $ 1,323,153 $ 6,475,941 $ 11,964,111 INS CITY OF TUKWILA: 2024 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING BALANCE SHEET NON -MAJOR SPECIAL REVENUE FUNDS DECEMBER 31, 2024 ASSETS: Cash and cash equivalents Taxes receivable Customer receivables Due from other governmental units Restricted Assets: Cash and cash equivalents Total Assets LIABILITIES AND FUND BALANCES: Current liabilities Accounts payable Accrued wages and benefits Customer deposit Total Liabilities Fund balances: Restricted Total Fund balances Total Liabilities and Fund Balances Total Hotel/Motel Tax Drug Seizure Special Revenue Funds $ 3,663,511 $ 257,811 $ 3,921,322 46,895 - 46,895 65,012 - 65,012 4,000 - 4,000 - 193,719 193,719 3,779,418 451,530 4,230,948 46,627 - 46,627 4,685 - 4,685 - 14,618 14,618 51,312 14,618 65,930 3,728,106 436,912 4,165,018 3,728,106 436,912 4,165,018 $ 3,779,418 $ 451,530 $ 4,230,948 `fm CITY OF TUKWILA: 2024 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, 2024 Total Hotel/Motel Tax Drug Seizure Special Revenue Funds REVENUES: Taxes $ 984,326 $ - $ 984,326 Intergovernmental 14,000 - 14,000 Investment earnings 157,314 - 157,314 Miscellaneous - 157,393 157,393 Total Revenues 1,155,640 157,393 1,313,033 EXPENDITURES: Current: Public safety - 61,451 61,451 Natural and economic environment 496,889 - 496,889 Total Expenditures 496,889 61,451 558,340 Excess (deficiency) of revenues Over (Under) Expenditures Net change in fund balances Fund balances - beginning Fund Balances - Ending 658,751 95,942 754,693 658,751 95,942 754,693 3,069,355 340,970 3,410,325 $ 3,728,106 $ 436,912 $ 4,165,018 113 CITY OF TUKWILA: 2024 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES 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 Total Liabilities and Fund Balances CITY OF TUKWILA, WASHINGTON COMBINING BALANCE SHEET NON -MAJOR DEBT SERVICE FUNDS DECEMBER 31, 2024 Special Unlimited Tax Limited Tax Total Nonmajor Assessment General General Debt Service Bonds Obligation Debt Obligation Debt Funds Guaranty Fund Service Fund Service Fund $ 829,009 $ 494,144 $ - $ 1,323,153 - 108,734 - 108,734 829,009 602,878 - 1,431,887 108,734 - 108,734 108,734 - 108,734 829,009 494,144 - 1,323,153 829,009 494,144 - 1,323,153 $ 829,009 $ 602,878 $ - $ 1,431,887 ISM CITY OF TUKWILA: 2024 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, 2024 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 $ - $ 4,797,284 $ $ 4,797,284 Investment earnings 40,766 27,152 67,918 Total Revenues 40,766 4,824,436 - 4,865,202 EXPENDITURES: Debt service Principal - 2,405,000 3,397,000 5,802,000 Interest 2,406,975 1,862,348 4,269,323 Total Expenditures - 4,811,975 5,259,348 10,071,323 Excess (deficiency) of revenues 40,766 12,461 (5,259,348) (5,206,121) Over (Under) Expenditures OTHER FINANCING SOURCES (USES): Transfers in - - 5,259,348 5,259,348 Total Other Financing Sources And Uses - - 5,259,348 5,259,348 Net change in fund balances 40,766 12,461 - 53,227 Fund balances - beginning 788,243 481,683 1,269,926 Fund Balances - Ending $ 829,009 $ 494,144 $ $ 1,323,153 115 CITY OF TUKWILA: 2024 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES ASSETS: Cash and cash equivalents Taxes receivable Customer receivables Due from other governmental units Restricted Assets: Capital assets held for resale Total Assets LIABILITIES AND FUND BALANCES: Current liabilities Accounts payable Customer deposit Total Liabilities Fund balances: Assigned Total Fund balances CITY OF TUKWILA, WASHINGTON COMBINING BALANCE SHEET NON -MAJOR CAPITAL PROJECT FUNDS DECEMBER 31, 2024 General Public Total Nonmajor Residential Urban Government Fire Safety CRY Capital Project Street Renewal Improvements Improvements Plan Facilities Funds $ 1,756,524 $ 1,685,497 $ 48,969 $ - $ 1,578,936 $ 1,125,278 $ 6,195,205 19,874 - - - 25,198 - 45,072 - - - - 14,000 - 14,000 21,380 - - 21,380 - 370,410 - - - - 370,410 1,797,778 2,055,907 48,969 - 1,618,134 1,125,278 6,646,066 27,159 - - - - 135,391 162,551 7,275 - 300 7,575 27,159 7,275 300 135,391 170,126 1,770,619 2,055,907 41,694 1,617,834 989,887 6,475,941 1,770,619 2,055,907 41,694 1,617,834 989,887 6,475,941 Total Liabilities and Fund Balances $ 1,797,778 $ 2,055,907 $ 48,969 $ 116 $ 1,618,134 $ 1,125,278 $ 6,646,065 CITY OF TUKWILA: 2024 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, 2024 Land Acq. General Public Total Nonmajor Residential Rec R Park Urban Government Fre Safety Qty Capital Project Street Development Renewal Improvements Improvements Ran Facilities Funds REVENUES: Taxes $ $ $ $ $ - $ 556,511 $ $ 556,510 Charges for services 791,835 300,000 1,091,836 Intergovernmental 357,013 - - - - - 246,870 603,883 Investment earnings 67,100 87,133 22,126 - 62,915 15,764 255,038 Total Revenues 424,113 87,133 22,126 791,835 919,426 262,634 2,507,267 EXPENDITURES: Current: General government - - 506,146 - - 437,161 943,307 Transportation 419,950 - - - 419,950 Natural and economic environment - 471 - 471 Capital Outlay 58,045 - - 1,862,003 1,920,048 Total Expenditures 477,995 - 471 506,146 - - 2,299,164 3,283,776 Excess (deficiency) of revenues (53,882) - 86,662 (484,020) 791,835 919,426 (2,036,530) (776,509) Over (Under) Expenditures OTHER FINANCING SOURCES (USES): Transfers in 401,572 - 100,000 - 791,835 1,824,783 3,118,189 Transfers out - (225,891) - (791,835) (1,317,849) - (2,335,575) Total Other Financing Sources And Uses 401,572 - (225,891) 100,000 (791,835) (526,014) 1,824,783 782,614 Net change in fund balances 347,690 (139,229) (384,020) 393,412 (211,747) 6,106 Fund balances - beginning 1,422,929 4,185,405 2,195,136 425,712 - - 8,229,182 Presentation Change- Major vs Non -Major - (4,185,405) - - 1,224,422 1,201,634 (1,759,349) FUND BALANCES- BEGINNING AS RESTATED 1,422,929 2,195,136 425,712 1,224,422 1,201,634 6,469,833 Fund Balances - Ending $1,770,619 $ $ 2,055,907 $ 41,694 $ $1,617,834 $ 989,887 $ 6,475,941 "m CITY OF TUKWILA: 2024 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, 2024 REVENUES: Taxes Intergovernmental Investment earnings Total Revenues EXPENDITURES: Current: Natural and economic environment Total Expenditures Excess of Revenues And Expenditures Net change in fund balances Fund balances - beginning Fund Balances - Ending Variance With Original Final Final Budget Budget Budget Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative) $ 750,000 $ - 6,000 750,000 $ - 6,000 984,326 $ 14,000 157,314 234,326 14,000 151,314 756,000 756,000 1,155,640 399,640 944,668 944,668 496,889 447,779 944,668 944,668 496,889 447,779 (188,668) (188,668) 658,751 847,419 (188,668) 1,835,311 (188,668) 2,129,529 658,751 3,069,355 847,419 939,826 $ 1,646,643 $ 1,940,861 $ 3,728,107 $ 1,787,246 118 CITY OF TUKWILA: 2024 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, 2024 REVENUES: Intergovernmental Investment earnings Miscellaneous Total Revenues EXPENDITURES: Current: Public safety Capital outlay Total Expenditures Excess of Revenues And Expenditures Net change in fund balances Fund balances - beginning Fund Balances - Ending Variance With Original Final Final Budget Budget Budget Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative) $ 35,000 $ 500 80,000 35,000 $ 500 80,000 - $ - 157,393 (35,000) (500) 77,393 115,500 115,500 157,393 41,893 244,297 35,000 244,297 35,000 61,451 - 182,845 35,000 279,297 279,297 61,451 217,845 (163,797) (163,797) 95,942 259,739 (163,797) 285,008 (163,797) 204,713 95,942 340,970 259,739 136,257 $ 121,211 $ 40,916 $ 436,912 $ 395,996 1w CITY OF TUKWILA: 2024 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, 2024 REVENUES: Investment earnings Total Revenues EXPENDITURES: Total Expenditures Excess of Revenues And Expenditures Net change in fund balances Fund balances - beginning Fund Balances - Ending Variance With Original Final Final Budget Budget Budget Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative) $ 3,000 $ 3,000 $ 40,766 $ 37,766 3,000 3,000 40,766 37,766 3,000 3,000 40,766 37,766 3,000 761,958 3,000 753,347 40,766 788,243 37,766 34,896 $ 764,958 $ 756,347 $ 829,009 $ 72,663 120 CITY OF TUKWILA: 2024 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, 2024 REVENUES: Taxes Investment earnings Total Revenues EXPENDITURES: Debt service: Principal Interest Total Expenditures Excess of Revenues And Expenditures Net change in fund balances Fund balances - beginning Fund Balances - Ending Variance With Original Final Final Budget Budget Budget Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative) $ 4,811,975 $ 1,200 4,811,975 $ 1,200 4,797,284 $ 27,152 (14,691) 25,952 4,813,175 4,813,175 4,824,436 11,261 2,405,000 2,406,975 2,405,000 2,406,975 2,405,000 2,406,975 - - 4,811,975 4,811,975 4,811,975 - 1,200 1,200 12,461 11,261 1,200 316,018 1,200 403,830 12,461 481,683 11,261 77,853 $ 317,218 $ 405,030 $ 494,144 $ 89,114 `PJI CITY OF TUKWILA: 2024 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, 2024 REVENUES: Miscellaneous Total Revenues EXPENDITURES: Debt service: Principal Interest 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 Fund Balances - Ending Variance With Original Final Final Budget Budget Budget Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative) $ 376,914 $ 376,914 $ - $ (376,914) 376,914 376,914 - (376,914) 3,596,548 2,039,786 3,596,548 2,039,786 3,397,000 1,862,348 199,548 177,438 5,636,334 5,636,334 5,259,348 376,986 (5,259,420) (5,259,420) (5,259,348) 72 5,259,420 5,259,420 5,259,348 (72) 5,259,420 5,259,420 5,259,348 (72) `PA CITY OF TUKWILA: 2024 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, 2024 Variance With Original Final Final Budget Budget Budget Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative) REVENUES: Taxes $ 100,000 $ 100,000 $ - $ (100,000) Intergovernmental 2,624,800 6,624,800 357,013 (6,267,787) Investment earnings 1,000 1,000 67,100 66,100 Total Revenues 2,725,800 6,725,800 424,113 (6,301,687) EXPENDITURES: Current: Transportation 770,000 1,530,000 419,950 1,110,050 Capital outlay 2,375,000 6,390,000 58,045 6,331,955 Total Expenditures 3,145,000 7,920,000 477,995 7,442,005 Excess of Revenues And Expenditures (419,200) (1,194,200) (53,882) 1,140,318 OTHER FINANCING SOURCES (USES): Transfersin 400,000 400,000 401,572 1,572 Total Other Financing Sources And Uses 400,000 400,000 401,572 1,572 Net change in fund balances (19,200) (794,200) 347,690 1,141,889 Fund balances - beginning 288,703 950,207 1,422,929 472,722 Fund Balances- Ending $ 269,503 $ 156,007 $ 1,770,619 $ 1,614,612 123 CITY OF TUKWILA: 2024 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, 2024 REVENUES: Investment earnings Total Revenues 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 Fund Balances - Ending Variance With Original Final Final Budget Budget Budget Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative) $ - $ $ 87,133 $ 87,133 - 87,133 87,133 - 471 (471) - 471 (471) - 86,662 86,662 (200,000) (470,000) (225,891) 244,109 (200,000) (470,000) (225,891) 244,109 (200,000) 2,233,800 (470,000) 1,724,242 (139,229) 2,195,136 330,772 470,894 $ 2,033,800 $ 1,254,242 $ 2,055,907 $ 801,666 `PZ'1 CITY OF TUKWILA: 2024 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, 2024 Variance With Original Final Final Budget Budget Budget Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative) REVENUES: Intergovernmental $ - $ 1,800,000 $ - $ (1,800,000) Investment earnings - - 22,126 22,126 Total Revenues - 1,800,000 22,126 (1,777,874) EXPENDITURES: Current: General Government - 340,000 506,146 (166,146) Capital outlay - 1,825,000 - 1,825,000 Total Expenditures - 2,165,000 506,146 1,658,854 Excess of Revenues And Expenditures - (365,000) (484,020) (119,020) Transfersin - 100,000 100,000 Transfers out - - - Total Other Financing Sources And Uses - 100,000 100,000 - Net change in fund balances - (265,000) (384,020) (119,020) Fund balances - beginning - 265,058 425,712 160,654 Fund Balances - Ending $ - $ 58 $ 41,694 $ 41,634 125 CITY OF TUKWILA: 2024 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, 2024 REVENUES: Charges for services Total Revenues 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 Variance With Original Final Final Budget Budget Budget Actual Positive (GAAP Basis) (GAAP Basis) Results (Negative) $ 300,000 $ 300,000 $ 791,835 $ 491,835 300,000 300,000 791,835 491,835 300,000 300,000 791,835 491,835 (300,000) (300,000) (791,835) (491,835) (300,000) (300,000) (791,835) (491,835) The revenues collected into this fund w ere budgeted to be transferred to the public safety plan fund for projects w ithin that fund. While the budget w as not increased to account for the total actual amounts received, the budgetary intention w as met with the transfers out. 126 CITY OF TUKWILA: 2024 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, 2024 REVENUES: Taxes Fire Impact Fees Investment earnings Total Revenues 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 Fund Balances - Ending Original Final Budget Budget (GAAP Basis) (GAAP Basis) Variance With Final Budget Actual Positive Results (Negative) $ 500,000 $ 500,000 $ 556,511 $ 56,511 300,000 300,000 300,000 - - - 62,915 62,915 800,000 800,000 919,426 119,426 800,000 800,000 919,426 119,426 300,000 300,000 791,835 491,835 (1,317,849) (1,317,849) (1,317,849) - (1,017,849) (1,017,849) (526,014) 491,835 (217,849) (217,849) 393,412 611,261 319,538 1,222,846 1,224,422 1,575 $ 101,689 $ 1,004,997 $ 1,617,834 $ 612,836 IPA CITY OF TUKWILA: 2024 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, 2024 REVENUES: Sales Tax Mitigation Investment earnings Total Revenues 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 Fund Balances - Ending Original Final Budget Budget (GAAP Basis) (GAAP Basis) Variance With Final Budget Actual Positive Results (Negative) $ - $ $ 1,000 $ - $ 1,000 $ 246,870 $ 15,764 $ 246,870 14,764 1,000 1,000 262,634 261,634 - 3,000,000 - 3,200,000 437,161 1,862,003 (437,161) 1,337,997 3,000,000 3,200,000 2,299,164 900,836 (2,999,000) (3,199,000) (2,036,529) 1,162,471 1,840,000 1,840,000 1,824,783 (15,217) 1,840,000 1,840,000 1,824,783 (15,217) (1,159,000) 1,715,324 (1,359,000) 2,400,366 (211,747) 1,201,634 1,147,253 (1,198,732) $ 556,324 $ 1,041,366 $ 989,887 $ (51,479) 128 CITY OF TUKWILA: 2024 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. 129 CITY OF TUKWILA: 2024 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS DECEMBER 31, 2024 130 Total Insurance - Insurance - Internal Equipment Active LEOFF I Service Rental Employees Retirees Funds ASSETS: Current assets: Cash and cash equivalents $ 1,924,614 $ 4,899,341 $ 38,904 $ 6,862,859 Other Receivables 79,876 132,381 - 212,256 Inventory of materials and supplies 203,961 - - 203,961 Total Current Assets 2,208,451 5,031,722 38,904 7,279,077 Noncurrent Assets: Net Pension asset 91,153 - - 91,153 Capital Assets: Machinery and equipment 11,205,882 11,205,882 Subscription Assets 260,677 260,677 Leased Assets 5,268,250 5,268,250 Less: accumulated depreciation (9,309,188) (9,309,188) Construction in progress 47,563 47,563 Total Capital Assets (Net Of A/D) 7,473,184 7,473,184 Total Noncurrent Assets 7,564,337 - - 7,564,337 Total Assets 9,772,788 5,031,722 38,904 14,843,414 Deferred Outflows of Resources Deferred outflow pension earnings 125,412 - - 125,412 Total Deferred Outflows Of Resources 125,412 - - 125,412 LIABILITIES: Reserve for unreported claims - 946,350 43,800 990,150 Current liabilities: Accounts payable 183,673 - 24,166 207,839 Accrued wages and benefits 23,222 - 23,222 Accrued interest payable 15,558 15,558 Subscription liability due w ithin one year 50,710 50,710 Lease liability due within one year 602,680 - - 602,680 Claims incurred but not reported - 630,900 29,200 660,100 Total Current Liabilities 875,843 630,900 53,366 1,560,109 Noncurrent liabilities: Subscription liability due in more than one year 105,620 - - 105,620 Lease liability due in more than one year 3,584,805 3,584,805 Net pension liability 38,918 38,918 Total Noncurrent Liabilities 3,729,343 - - 3,729,342 Total Liabilities 4,605,186 1,577,249 97,165 6,279,600 Deferred Inflows of Resources Deferred inflow pension earnings 54,847 - - 54,847 Total Deferred Inflows Of Resources 54,847 54,847 NET POSITION: Investment in capital assets 3,129,370 3,129,370 Restricted for Pension Assets 177,463 - 177,463 Unrestricted 1,931,334 3,454,472 (58,262) 5,327,544 Total Net Position $ 5,238,167 $ 3,454,472 $ (58,262) $ 8,634,377 130 CITY OF TUKWILA: 2024 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, 2024 OPERATING REVENUES: Charges for services Other operating revenue Total Operating Revenue OPERATING EXPENSES: Operations & maintenance Administrative & general Depreciation Total Operating Expenses Operating Income (Loss) 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 Net Position end of year Total Insurance - Insurance- Internal Equipment Active LEOFF I Service Rental Employees Retirees Funds $ 1,491,269 $ 6,159,160 $ 323,057 $ 7,973,486 1,709 212,451 - 214,160 1,492,978 6,371,611 323,057 8,187,646 2,075,138 5,793,578 442,773 8,311,489 367,915 199,121 13,274 580,310 1,444,049 - - 1,444,049 3,887,101 5,992,699 456,047 10,335,848 (2,394,124) 378,912 (132,990) (2,148,201) 156,585 222,487 3,759 382,831 187,692 - - 187,692 (202,977) - - (202,977) 141,300 222,487 3,759 367,546 (2,252,824) 601,400 (129,231) (1,780,655) (2,252,824) 601,400 (129,231) (1,780,655) 7,490,991 2,853,072 70,969 10,415,031 $ 5,238,167 $ 3,454,472 $ (58,262) $ 8,634,377 131 CITY OF TUKWILA: 2024 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON 187,692 COMBINING STATEMENT OF CASH FLOWS (2,802,566) INTERNAL SERVICE FUNDS Cash received from users FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024 $ 6,482,500 $ 323,057 Page 1 of 2 Cash paid to suppliers (1,367,862) 119,881 Total Insurance - Insurance- Internal Equipment Active LEOFF I Service Rental Employees Retirees Funds CASH FLOWS FROM OPERATING ACTIVITIES: 187,692 (2,802,566) (2,802,566) 1,353,054 Cash received from users $ 1,461,025 $ 6,482,500 $ 323,057 $ 8,266,582 Cash paid to suppliers (1,367,862) 119,881 5,439 (1,242,543) Cash paid to, or on behalf of, employees (697,910) (5,733,182) (440,773) (6,871,866) Interfund activity- payments to other funds (367,912) (199,121) (13,274) (580,307) Other cash received (paid) 1,709 - 1,709 Net Cash Provided (Used) By Operating Activities (970,951) 670,078 (125,551) (426,424) 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 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 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 Total Cash 187,692 187,692 (2,802,566) (2,802,566) 1,353,054 1,353,054 (198,784) (198,784) (1,460,603) (1,460,603) 156,585 222,487 3,759 382,831 156,585 222,487 3,759 382,831 (2,274,969) 892,565 (121,792) (1,504,196) 4,199,583 4,006,776 160,696 8,367,055 $ 1,924,614 $ 4,899,341 $ 38,904 $ 6,862,859 $ 1,924,614 $ 4,899,341 $ 38,904 6,862,859 $ 1,924,614 $ 4,899,341 $ 38,904 $ 6,862,859 132 CITY OF TUKWILA: 2024 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON 80,645 COMBINING STATEMENT OF CASH FLOWS (continued) (32,983) INTERNAL SERVICE FUNDS - (48,995) FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024 7,439 288,439 6,181 - Page 2 of 2 (15,559) (15,559) 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) $ (2,394,124) $ 378,912 $ (132,990) $ (2,148,201) Adjustments to reconcile operating income to netcash Provided (used) byoperating activities: Depreciation Asset (increases) decreases: Accounts receivable Inventory Deferred outflow of resources (increase) decrease Liability increases (decreases): Accounts payable Wages and benefits payable Deferred inflow of resources increase (decrease) Total Adjustments Net Cash Provided (Used) By Operating Activities $ (970,951) $ 670,078 $ (125,551) $ (426,424) SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Total Non Cash Investing, Capital And Financing Activities $ - $ - $ - $ 1,444,049 1,444,049 (30,244) 110,889 80,645 (32,983) - (32,983) (48,995) - - (48,995) 100,724 180,276 7,439 288,439 6,181 - - 6,181 (15,559) (15,559) 1,423,173 291,165 7,439 1,721,777 133 CITY OF TUKWILA: 2024 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES 134 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION City of Tukwila STATISTICAL SECTION December 31, 2024 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......................................................................................................136 Schedule 2 Changes in Net Position............................................................................................................138 Schedule 3 Fund Balances, Governmental Funds.......................................................................................140 Schedule 4 Changes in Fund Balances of Governmental Funds................................................................142 Schedule 5 General Governmental Tax Revenues by Source....................................................................144 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.........................................................................................145 Schedule 7 Assessed and Estimated Actual Value of Taxable Property .....................................................146 Schedule 8 Property Tax Rates -Direct and Overlapping Governments ......................................................147 Schedule 9 Principal Property Taxpayers....................................................................................................148 Schedule 10 Retail Sales Tax Collections by Sector.....................................................................................150 Schedule 11 Sales Tax Rate Direct and Overlapping Governments.............................................................152 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.........................................................................................154 Schedule 13 Ratios of General Bonded Debt Outstanding............................................................................156 Schedule 14 Computation of Direct and Overlapping Debt...........................................................................158 Schedule 15 Legal Debt Margin Information..................................................................................................159 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..............................................................................................................160 Schedule 17 Principal Employers...................................................................................................................161 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.........................................................................162 Schedule 19 Operating Indicators by Function..............................................................................................163 Schedule 20 Capital Assets by Function........................................................................................................164 135 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE1 NET POSITION BY COMPONENT(a) LAST TEN FISCAL YEARS (accrual basis of accounting) Paae 1 of 2 Notes: (a) All amounts are reported on the accrual basis Source: Tukwila Finance Department 136 2015 2016 2017 2018 2019 Governmental activities: Net investment in capital assets $ 191,331,156 $ 193,113,026 $ 199,328,694 $ 201,997,812 $ 201,649,103 Restricted 5,446,074 8,996,185 13,480,068 16,962,378 18,692,944 Unrestricted 16,125,592 15,809,945 11, 366,545 12,407,297 17,772,776 Total governmental activities net position $ 212,902,822 $ 217,919,156 $ 224,175,307 $ 231,367,488 $ 238,114,823 Business -type activities: Net investment in capital assets $ 59,483,424 $ 60,807,030 $ 65,355,778 $ 68,680,695 $ 68,362,159 Restricted - - - - - Unrestricted 14,658,912 17,240,620 17,425,401 18,988,782 22,104,664 Total business -type activities net position $ 74,142,336 $ 78,047,650 $ 82,781,179 $ 87,669,477 $ 90,466,823 Primary government: Net investment in capital assets $ 250,814,581 $ 253,920,057 $ 264,684,472 $ 270,678,507 $ 270,011,262 Restricted 5,446,074 8,996,185 13,480,068 16,962,378 18,692,944 Unrestricted 30,784,504 33,050,565 28,791,946 31,396,080 39,877,441 Total primary government net position $ 287,045,158 $ 295,966,806 $ 306,956,486 $ 319,036,965 $ 328,581,646 Notes: (a) All amounts are reported on the accrual basis Source: Tukwila Finance Department 136 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE1 NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (accrual basis of accounting) Page 2 of 2 2020 2021 2022 2023 2024 Governmental activities: $ 201,887,136 $ 197,839,607 $ 199,057,806 $ 196,460,485 $ 197,716,199 Net investment in capital assets 17,784,194 25,280,715 28,835,065 33,388,116 29,047,888 Restricted 22,003,200 32,169,525 35,098,137 41,264,130 46,721,659 Unrestricted $ 241,674,530 $ 255,289,848 $ 262,991,008 $ 271,112,731 $ 273,485,746 Total governmental activities net position Business -type activities: $ 69,238,961 $ 72,559,196 $ 75,308,549 $ 76,179,881 $ 76,862,741 Net investment in capital assets - - - 1,261,911 1,693,961 Restricted 25,231,660 27,093,876 26,056,751 29,140,857 33,225,667 Unrestricted $ 94,470,621 $ 99,653,072 $ 101,365,300 $ 106,582,649 $ 111,782,369 Total business -type activities net positior Primary government: $ 271,126,097 $ 270,398,803 $ 274,366,355 $ 272,640,366 $ 274,578,940 Net investment in capital assets 17,784,194 25,280,715 28,835,065 34,650,027 30,741,849 Restricted 47,234,860 59,263,401 61,154,888 70,404,987 79,947,326 Unrestricted $ 336,145,151 $ 354,942,919 $ 364,356,308 $ 377,695,380 $ 385,268,115 Total primary government net position 137 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE2 CHANGES IN NET POSITION (a) (accrual basis of accounting) Change in Net Position Before Special Rem 10,048,082 8,921,651 10,989,681 27,605,906 Page 1 of 2 Special item 2015 2016 2017 2018 2019 Expenses - - - - - Governmental Activities ro 9,091,284 8,921,651 10,989,681 27,605,906 9,544,680 General government $ 8,042,254 $ 9,662,207 $ 9,835,290 $ 10,763,025 $ 11,105,119 Public safety 29,403,206 31,418,713 31,190,347 17,097,372 27,402,906 Physical environment 2,611,297 2,554,259 2,545,144 2,645,577 - Transportation 11,069,605 11,188,189 12,236,551 15,871,018 18,442,230 Culture and recreation 5,125,227 5,431,324 5,582,038 5,591,213 6,076,219 Natural and economic environment 5,782,907 4,410,841 4,523,596 4,411,719 4,515,516 Interest on Long Term Debt 1,033,440 1,075,729 2,481,559 2,748,854 3,009,268 Total Governmental Activities 63,067,935 65,741,262 68,394,526 59,128,779 70,551,259 Business Type Activities Water/Sewer Utility 13,186,236 13,984,368 14,305,425 14,861,448 15,756,347 Foster Goff Course 2,086,586 2,077,536 1,989,972 2,091,981 2,128,042 Surface Water Utility 4,147,974 4,088,360 4,209,325 4,464,319 5,965,217 Total Business Type Activities 19,420,796 20,150,264 20,504,722 21,417,748 23,849,607 Total Primary Government Expenses $ 82,488,731 $ 85,891,525 $ 88,899,247 $ 80,546,527 $ 94,400,866 Program Revenues Governmental Activities Charges for Services General government $ 3,794,134 $ 3,742,937 $ 4,144,986 $ 5,989,077 $ 6,565,339 Public safety 1,754,856 4,130,701 1,540,863 1,970,331 2,543,188 Physical environment - 464 - - - Transportation 206,065 454,525 2,206,908 2,261,577 106,958 Culture and recreation 644,283 1,140,558 1,315,740 1,415,827 1,914,795 Natural and economic environment 3,348,802 2,434,546 2,270,759 3,099,692 3,533,733 Operating Grants and Contributions 893,470 1,079,020 2,445,998 1,733,308 794,371 Capital Grants and Contributions 6,431,537 5,000,942 6,126,880 9,942,224 2,578,046 Total Governmental Activities Program Revenues 17,073,146 17,983,694 20,052,136 26,412,036 18,036,429 Business Type Activities Charges for Services Water/Sewer Utility 15,572,709 15,661,118 16,580,965 17,203,158 17,831,892 Foster Golf Course 1,482,288 1,426,385 1,313,871 1,563,320 1,610,152 Surface Water Utility 5,286,233 5,875,343 6,200,589 6,417,368 6,797,683 Operating Grants and Contributions - 25,000 8,435 54,697 228,755 Capital Grants and Contributions 2,039,890 767,732 834,392 767,504 280,570 Total Business Type Activities Program Revenues 24,381,122 23,755,578 24,938,251 26,006,046 26,749,053 Total Primary Government Program Revenues 41,454,268 41,739,272 44,990,386 52,418,082 44,785,482 Net(Expense)lRevenue Governmental Activities (45,994,789) (47,757,567) (48,342,390) (32,716,743) (52,514,830) Business Type Activities 4,960,326 3,605,314 4,433,529 4,588,299 2,899,445 Total Primary Government Net Expense (41,034,463) (44,152,253) (43,908,861) (28,128,445) (49,615,384) General Revenues and Other Changes in Net Position Governmental Activities Taxes Property Tax $ 14,320,085 $ 14,562,501 $ 17,667,590 $ 18,008,738 $ 18,390,051 Retail Sales and Use Tax 19,334,152 18,908,190 18,807,201 20,603,617 20,687,748 HoteVNbtel Tax 677,971 710,267 736,784 833,990 819,095 Utility Tax 4,019,288 4,045,916 4,175,013 3,866,859 3,644,470 Interfund Utility Taxes 2,061,098 2,146,515 2,265,747 2,334,522 2,358,608 Business Tax 2,749,140 2,716,257 2,698,352 1,246,798 1,299,085 Excise Tax 5,321,281 6,508,665 5,380,662 5,091,447 5,336,066 Unrestricted Investment Earnings 475,345 559,733 838,630 1,508,334 1,247,003 MSGellaneous 2,124,185 2,915,859 2,328,565 2,240,045 5,377,939 Transfers (300,000) (300,000) (300,000) (300,000) 102,100 Total Governmental Activities 50,782,545 52,773,904 54,598,542 55,434,351 59,262,164 Business Type Activities Unrestricted Investment Interest - - - - - Mscellaneous - - - - - Transfers 300,000 300,000 300,000 300,000 (102,100) Total Business Type Activities 300,000 300,000 300,000 300,000 (102,100) Total Primary Government $ 51,082,545 $ 53,073,904 $ 54,898,542 $ 55,734,351 $ 59,160,064 Change in Net Position Before Special Rem 10,048,082 8,921,651 10,989,681 27,605,906 9,544,680 Special item (956,798) - - - - Change in Accounting Principle - - - - - Change in Net Position 9,091,284 8,921,651 10,989,681 27,605,906 9,544,680 Governmental Activities 3,830,958 5,016,337 6,256,152 22,717,608 6,747,335 Business Type Activities 5,260,326 3,905,314 4,733,529 4,888,299 2,797,345 Total Primary Government $ 9,091,284 8,921,651 10,989,681 27,605,906 9,544,680 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 138 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE2 CHANGES IN NET POSITION (accrual basis of accounting) Page 2 of 2 2020 2021 2022 2023 2024 Expenses Governmental Activities rol $ 10,792,736 $ 12,227,100 $ 14,314,373 $ 15,092,500 $ 21,582,025 General government 25,090,275 24,840,036 35,503,893 33,190,709 44,218,679 Public safety - - - - Physical environment 12,757,271 12,760,187 13,805,883 15,428,634 14,193,779 Transportation 5,522,907 4,814,194 6,147,791 6,200,186 5,458,446 Culture and recreation 4,426,553 5,062,727 5,598,778 7,013,570 5,831,822 Natural and economic environment 4,927,364 4,443,170 4,303,091 4,190,257 4,031,388 Interest on Long Term Debt 63,517,106 64,147,415 79,673,810 81,115,855 95,316,139 Total Governmental Activities Business Type Activities 14,111,179 14,227,351 15,457,196 15,734,655 17,517,379 Water/Sewer Utility 1,908,023 2,175,885 2,415,066 2,561,419 2,674,833 Foster Golf Course 4,991,110 4,327,427 5,945,272 4,907,747 5,724,035 Surface Water Utility 21,010,311 20,730,662 23,817,535 23,203,822 25,916,247 Total Business Type Activities $ 84,527,417 $ 84,878,077 $103,491,345 $104,319,677 $121,232,386 Total Primary Government Expenses Program Revenues Governmental Activities rol Charges for Services $ 7,481,748 $ 6,342,118 $ 9,058,384 $ 9,368,454 $ 9,235,478 General government 2,037,444 1,972,485 2,334,165 3,396,090 3,560,097 Public safety - - - - - Physical environment 890,982 371,646 1,257,366 1,459,071 1,246,780 Transportation 654,085 456,787 968,738 1,471,954 1,629,977 Culture and recreation 2,671,049 2,416,865 2,349,959 3,497,508 2,887,841 Natural and econorrc environment 1,567,067 1,796,702 2,771,490 3,801,728 2,802,780 Operating Grants and Contributions 1,415,931 1,289,853 3,469,016 1,873,518 2,073,856 Capital Grants and Contributions 16,718,306 14,646,454 22,209,119 24,868,323 23,436,809 Total Governmental Activities Program Revenues Business Type Activities Charges for Services 14,857,183 16,227,339 16,627,591 17,894,258 18,731,752 Water/Sewer Utility 1,906,355 2,268,908 2,205,500 2,497,754 2,368,474 Foster Golf Course 6,956,702 7,029,502 7,411,371 7,755,433 8,090,765 Surface Water Utility 121,754 61,630 363,540 1,637 35,126 Operating Grants and Contributions 1,405,464 1,709,678 174,795 680,622 1,498,723 Capital Grants and Contributions 25,247,459 27,297,057 26,782,796 28,829,704 30,724,840 Total Business Type Activities Program Revenues 41,965,764 41,943,511 48,991,915 53,698,027 54,161,649 Total Primary Government Program Revenues Net (46,798,800) (49,500,960) (57,464,691) (56,247,532) (71,879,330) Governmental Activities 4,237,148 6,566,394 2,965,262 5,625,882 4,808,593 Business Type Activities (42,561,653) (42,934,566) (54,499,429) (50,621,650) (67,070,737) Total Primary Government Net Expense General Revenues and Other Changes in Net Position Governmental Activities Taxes $ 19,839,475 $ 21,275,135 $ 21,852,111 $ 22,156,679 $ 23,186,100 Property Tax 17,102,061 20,148,103 21,977,177 22,851,709 24,846,451 Retail Sales and Use Tax 292,358 540,329 897,202 971,162 984,326 HoteVNbtel Tax 4,286,358 3,605,314 3,949,799 5,432,796 5,901,264 Utility Tax 2,153,573 2,322,420 2,404,685 2,567,243 2,684,965 Interfund Utility Taxes 407,877 2,074,857 2,683,592 1,625,073 3,894,820 Business Tax 3,323,814 7,400,723 6,609,500 5,465,302 5,416,330 Excise Tax 680,094 297,953 (107,223) 2,495,712 2,555,465 Unrestricted Investment Earnings 2,039,548 4,067,501 3,645,976 2,285,888 2,528,195 MSGellaneous 233,350 1,383,944 1,253,033 1,752,366 1,753,076 Transfers 50,358,508 63,116,277 65,165,852 67,603,930 73,750,992 Total Governmental Activities Business Type Activities - - - 1,287,325 1,401,260 Unrestricted Investment Interest 56,507 679,733 Miscellaneous (233,500) (1,383,944) (1,253,033) (1,752,366) (1,753,076) Transfers (233,500) (1,383,944) (1,253,033) (408,533) 327,917 Total Business Type Activities $ 50,125,008 $ 61,732,334 63,912,819 $ 67,195,396 $ 74,078,909 Total Primary Government 7,563,355 18,797,768 9,413,389 16,573,746 7,008,172 Change in Net Position Before Special Rem - - - (3,234,674) - Special item - - - - 564,564 Change in Accounting Principle 7,563,355 18,797,768 9,413,389 13,339,072 7,572,736 Change in Net Position 3,559,708 13,615,317 7,701,161 8,121,723 2,373,015 Governmental Activities 4,003,648 5,182,451 1,712,229 5,217,349 5,199,721 Business Type Activities $ 7,563,355 18,797,768 9,413,389 13,339,072 7,572,736 Total Primary Government 139 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE3 FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) Page 1 of 2 2015 2016 2017 2018 2019 General Fund Nonspendable $ 1,340,914 $ 1,141,484 $ 927,373 $ 718,190 $ 508,447 Assigned 6,078,648 6,277,929 105,000 181,078 397,736 Unassigned 10,911,244 11,612,330 18,040,352 19,718,745 19,233,980 Total general fund $ 18,330,806 $ 19,031,744 $ 19,072,725 $ 20,618,013 $ 20,140,163 All other governmental funds Nonspendable $ 7,645,000 $ 7,645,000 $ - $ - $ - Restricted 5,446,074 45,986,463 51,236,443 32,531,984 48,694,929 Assigned 7,221,870 3,389,139 10,282,709 11,819,299 17,705,991 Total all other governmental funds $ 20,312,943 $ 57,020,602 $ 61,519,152 $ 44,351,283 $ 66,400,920 $70 0 $60 $50 $40 $30 $20 $10 Fund Balances 2015 2016 2017 2018 2019 2020 2021 2022 ♦General Fund All Other Governmental Funds 140 2023 2024 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE3 FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) Page 2of2 2020 2021 2022 2023 2024 General Fund $ 292,498 $ 70,139 $ - $ - $ - Nonspendable 660,425 491,143 527,347 631,622 673,343 Assigned 18,469,248 23,180,241 22,464,009 24,359,607 24,048,882 Unassigned $ 19,422,170 $ 23,741,523 $ 22,991,356 $ 24,991,228 $ 24,722,225 Total general fund All other governmental funds $ - $ - $ - $ - $ - Nonspendable 5,483,785 7,231,746 8,448,840 10,463,564 14,825,953 Restricted 15,110,785 12,742,716 12,179,200 11,569,460 9,360,089 Assigned $ 20,594,569 $ 19,974,462 $ 20,628,040 $ 22,033,024 $ 24,186,042 Total all other governmental funds `ul CITY OF TUKWILA: 2024 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 oft Note: (a) All amounts are reported on the modified - accrual basis Source: Tukwila Finance Department 2015 2016 2017 2018 2019 Revenues Taxes $48,548,116 $49,588,492 $51,655,075 $ 51,988,591 $52,686,247 Licenses and Permits 2,242,256 2,129,221 2,749,137 4,875,454 5,554,899 Intergovernmental 11,839,883 10,067,413 12,739,774 15,919,377 7,495,781 Charges for Services 3,935,248 3,911,473 5,767,228 6,801,719 7,442,843 Fines and Forfeitures 261,457 318,459 325,216 291,604 245,748 Investment Income 475,345 541,299 826,864 1,538,534 1,258,493 Special Assessments 650,415 542,180 478,838 415,660 515,266 Miscellaneous 332,268 957,158 942,784 407,151 515,923 Total Revenues 68,284,989 68,055,695 75,484,915 82,238,092 75,715,199 Expenditures General Government 7,708,394 9,405,989 9,585,551 10,491,432 8,777,726 Public Safety 29,035,165 29,366,198 30,899,412 34,331,520 32,586,415 Physical Environment 1,935,228 1,955,031 1,733,400 1,805,457 - Transportation 5,792,668 5,238,468 6,532,195 10,015,938 9,717,429 Natural and Econornic Environment 5,832,384 4,493,210 4,614,027 4,686,528 4,752,115 Culture and Recreation 4,350,052 4,543,339 4,664,129 4,852,138 5,328,994 Debt Service Principal 2,480,507 2,602,782 3,713,928 4,092,196 4,238,521 Interest 1,125,609 1,093,584 2,603,869 2,977,523 4,060,086 Bond Issuance Costs - Capital Outlay 11,426,274 8,358,450 14,761,715 47,601,490 51,397,863 Total Expenditures 69,686,279 67,057,051 79,108,226 120,854,221 120,859,149 Excess (Deficiency) of Revenues (1,401,291) 998,643 (3,623,311) (38,616,129) (45,143,950) Over (Under) Expenditures Other Financing Sources (Uses) Transfers In 5,633,846 4,025,831 6,354,496 7,742,669 7,233,686 Transfers In - Assessment - - - 3,119,513 - Transfers Out (5,933,846) (4,325,831) (6,654,496) (8,042,669) (7,131,586) Lease financing Sale of Capital Assets - - (99,999) - - General Obligation Bonds Issued 8,075,000 32,990,000 10,456,000 18,365,000 60,600,000 Refunding of General Obligation Bonds - - (2,250,000) - - LID Bonds Assessment Operating Loan-Tukw ila MPD - - - - - Premium on General Obligation Debt 309,758 3,719,954 356,839 1,809,036 6,013,637 Total Other Financing Sources (Uses) 8,084,758 36,409,954 8,162,839 22,993,549 66,715,737 Change in Fund Balance Before Special Item 6,683,467 37,408,597 4,539,528 (15,622,580) 21,571,787 Special Rem (956,798) - - - Net Change in Fund Balances $ 5,726,669 $37,408,597 $ 4,539,528 $(15,622,580) $21,571,787 Ratio of Debt Service Expenditures 6.19% 6.30% 9.82% 9.65% 11.95% to Total Non -Capital Expenditures Note: (a) All amounts are reported on the modified - accrual basis Source: Tukwila Finance Department CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 4 CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) e2of2 2020 2021 2022 2023 2024 Other Financing Sources (Uses) 8,867,680 9,904,409 14,544,789 10,150,571 9,940,277 Revenues $ 47,560,434 $57,281,494 $60,381,870 $61,140,878 $66,830,256 Taxes 6,738,212 5,341,662 5,376,555 6,367,320 6,323,063 Licenses and Permits 6,647,587 7,603,637 10,391,018 10,068,430 9,522,625 Intergovernmental 3,540,211 3,213,504 4,295,828 6,648,353 7,017,522 Charges for Services 209,551 302,358 495,511 322,710 446,463 Fines and Forfeitures 680,094 297,953 (247,462) 2,078,911 2,172,305 Investment Income 377,132 375,889 381,172 382,843 418,885 Special Assessments 560,804 632,087 483,127 643,281 892,831 Mscellaneous 66,314,025 75,048,583 81,557,620 87,652,727 93,623,950 Total Revenues (101,650) 5,242,789 2,851,732 4,313,575 1,605,414 Expenditures 8,620,827 8,455,383 9,311,851 10,458,700 14,060,642 General Government 31,792,303 32,513,800 36,170,093 37,960,489 41,744,270 Public Safety - - - - - Physical Environment 6,346,303 6,612,101 7,421,513 8,012,225 7,955,002 Transportation 4,659,575 5,917,214 5,977,731 6,198,158 6,938,572 Natural and Economic Environment 4,551,092 4,614,034 5,172,376 5,530,360 5,492,509 Culture and Recreation Debt Service 2,486,461 3,000,560 8,375,416 6,970,163 6,951,414 Principal 5,445,543 5,097,555 4,951,500 4,717,159 4,484,238 Interest Bond Issuance Costs 48,834,614 10,381,479 7,125,461 8,714,193 5,718,701 Capital Outlay 112,736,719 76,592,127 84,505,941 88,561,445 93,345,348 Total Expenditures (46,422,694) (1,543,543) (2,948,321) (908,718) 278,601 Excess (Deficiency) of Revenues Over (Under) Expenditures 12.41% 12.23% 17.22% 14.64% 13.05% Ratio of Debt Service Expenditures to Total Non -Capital Expenditures 143 Other Financing Sources (Uses) 8,867,680 9,904,409 14,544,789 10,150,571 9,940,277 Transfers In - - - - - Transfers In - Assessment (8,634,330) (8,520,466) (13,291,756) (8,398,206) (8,187,202) Transfers Out 98,699 2,561,209 (147,662) Lease financing - 1,129,345 1,500,000 - Sale of Capital Assets 1,995,000 6,720,500 - General Obligation Bonds Issued (2,330,000) (3,991,000) Refunding of General Obligation Bonds LID Bonds Assessment Operating Loan-Tukw ila MPD - - - - Premium on General Obligation Debt (101,650) 5,242,789 2,851,732 4,313,575 1,605,414 Total Other Financing Sources (Uses) (46,524,344) 3,699,245 (96,589) 3,404,857 1,884,016 Change in Fund Balance Before Special Item - - - Special Item $(46,524,344) $ 3,699,245 $ (96,589) $ 3,404,857 $ 1,884,016 Net Change in Fund Balances 12.41% 12.23% 17.22% 14.64% 13.05% Ratio of Debt Service Expenditures to Total Non -Capital Expenditures 143 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE5 GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS Fiscal Year Property�a) Sales & Use Utility (b) Excise Business Other Total Taxes 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 2024 23,186,100 24,846,451 5,901,264 5,416,330 3,894,820 3,669,290 66,914,255 Change 2015-2024 61.9% 28.5% 46.8% 1.8% 41.7% 34.0% 38.0% Notes: (a) Beginning in 2017, property tax includes a voter approved excess levy for public safety facilities. (b) Utility taxes enacted beginning in 2003 for electric, natural gas, cable and telephone utilities are assessed at rates of 6.0%. A utility tax was added in 2009 for solid waste and recycling and is currently assessed at a 16.0% rate. Source: Tukw ila Finance Department Tax Revenue by Source $60 ❑ Other ❑ Business $50 n ■ Excise N $40 C m Utl I ity O $30 ❑Sales and Use Tax $20 $10 $0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 101 CITY OF TUKWILA: 2024 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 Property Tax Levies and Collections c 21 0 18 ■Taxes 15 Levied for Fiscal Year 12 9 ■ Collected 6 Within the Fiscal Year of 3 the Levy 2015 2016 2017* 2018 2019 2020 2021 2022 2023 2024 145 Collections in Fiscal Taxes Levied for Subsequent Year Fiscal Year Amount % of Levy Years Amount % of Levy 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% 141,265 14,516,623 100.00% 2017' 17,551,561 17,262,965 98.36% 259,862 17,522,827 99.84% 2018 18,006,677 17,844,087 99.10% 127,746 17,971,833 99.81% 2019 18,796,071 18,648,149 99.21% 137,680 18,785,829 99.95% 2020 20,044,161 19,705,761 98.31% 320,588 20,026,349 99.91% 2021 21,049,466 20,796,453 98.80% 229,524 21,025,977 99.89% 2022 21,727,448 21,466,630 98.80% 192,180 21,658,810 99.68% 2023 22,070,488 21,959,324 99.50% - 21,959,324 99.50% 2024 23,544,584 23,296,850 98.95% - 23,296,850 98.95% "First year of collection on 2016 voter -approved levy for Public Safety Plan Source: King County Office of Finance Property Tax Levies and Collections c 21 0 18 ■Taxes 15 Levied for Fiscal Year 12 9 ■ Collected 6 Within the Fiscal Year of 3 the Levy 2015 2016 2017* 2018 2019 2020 2021 2022 2023 2024 145 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE7 ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Fiscal Year Real Property Personal Property Rublic Utilities Total Assessed Value Total Direct Tax Rate 2015 4,409,931,075 810,422,092 174,971,951 5,395,325,118 2.71073 2016 4,763,568,175 849,695,435 150,386,219 5,763,649,829 3.05735 2017 5,242,264,743 780,938,084 161,740,436 6,184,943,263 2.91864 2018 5,823,887,746 678,435,063 171,517,113 6,673,839,922 2.81805 2019 6,430,058,373 760,313,756 214,068,301 7,404,440,430 2.73416 2020 6,809,349,200 826,589,881 247,118,481 7,883,057,562 2.67733 2021 6,890,134,092 882,202,099 238,555,841 8,010,892,032 2.72071 2022 7,806,820,227 954,687,537 208,944,784 8,970,452,548 2.45234 2023 8,470,361,340 833,559,342 225,204,285 9,529,124,967 2.40193 2024 8,866,570,083 907,470,581 176,519,976 9,950,560,640 1.71676 Note: "Real, personal, and state public service property have been assessed at 100% of the estimated value. Source: King County Department of Assessments Assessed Value By Type (A $12,000 r- 0 $10,000 $8,000 Public Utilities $6,000 M Personal $4,000 Property $2,000 $- 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 146 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE8 PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS (PER $1,000 OF ASSESSED VALUATION) LAST TEN FISCAL YEARS Fiscal Year General Levy Special Levy Total WA State King County(al Port of Seattle Emergency Medical Fire Levy Service Tukwila School Dist #406 Flood Control Tukwila Fool Metropolitan Park District Hospital District #1 Central Puget Sound Regional Transit Authority (RST3) Total 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 2024 1.21723 0.49953 1.71676 2.24653 1.60702 0.10196 0.89296 0.22146 3.62389 0.09757 0.15074 029559 0.16382 11.11830 Note: (a) Includes King County Library District tax and Ferry Source: King County Department of Assessments Direct Property Tax Rates $3.10000 $2.90000 $2.70000 $2.50000 $2.30000 $2.10000 $1.90000 $1.70000 $1.50000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 147 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE9 PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 148 Percent of 2024 Total 2024 Assessed Assessed Valuation Value(' $ 736,330,973 Type of Business Boeing Airplane company Property Tax Resources LLC Conrnercial Properties Segale Properties Commercial Properties International Gateway East Data Center LIT Industrial LTD Parternership Commercial Properties Prologis Real Estate Development BKM Management Company Commercial Properties Westfield Property Department Stores Desirnone Tr W Marinal PI Consulting Firm USPS - Western FSO Shipping WEA Southcenter LLC Department Stores KIR Tukwila 050 LLC Commercial Properties Qwest Corporation (US West Communications) Telephone Utility E Property Tax Dept Commercial Properties CWWA Tukwila 1 LLC Investment Property Anne Arundel Apartments LLC Apartments Boeing Employees Credit Union Credit Union Costco Cash & Carry Warehouse on Notes: (a) In 2023 the total assessed property value in the City of Tukwila was $ 9,529,124, 967 (b) In 2015 the total assessed property value in the City of Tukwila was $ 5,395,325,118 Source: King County Department of Assessments 148 Percent of 2024 Total 2024 Assessed Assessed Valuation Value(' $ 736,330,973 7.40% 223,812,400 2.25% 221,413,780 2.23% 227,196,452 2.28% 196,531,800 1.98% 194,025,600 1.95% 160,339,100 1.61% 139,683,600 1.40% 104,167,700 1.05% 81,755,000 0.82% 296,255,581 5.49% 87,805,800 1.63% 80,519,779 1.49% 79,841,600 1.48% 63,807,600 1.18% 50,996,857 0.95% 48,178,411 0.89% 44,420,188 0.82% $ 2,285,256,405 22.97% $ 1,432,039,189 26.54% Percent of 2015 Total 2015 Assessed Assessed Valuation Value(') $ 552,951,680 10.25% 127,261,693 2.36% 296,255,581 5.49% 87,805,800 1.63% 80,519,779 1.49% 79,841,600 1.48% 63,807,600 1.18% 50,996,857 0.95% 48,178,411 0.89% 44,420,188 0.82% $ 2,285,256,405 22.97% $ 1,432,039,189 26.54% CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION 149 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE10 RETAIL SALES TAX COLLECTIONS BY SECTOR LAST TEN FISCAL YEARS page 1 of 2 Major Industry Sector 2015 2016 2017 2018 2019 Construction and Contracting $ 1,255,650 $ 1,383,624 $ 1,413,773 $ 1,623,112 $ 2,218,910 Finance, Insurance & Real Estate 163,161 175,060 125,978 143,696 65,075 Manufacturing 281,501 269,117 177,788 262,700 238,694 Transportation, Communications & Utilities 743,746 746,115 721,413 1,016,226 1,055,296 Wholesale - Durable/Non-durable Goods 2,016,722 1,295,141 1,176,868 1,309,170 1,153,607 Retail Trade - General Merchandise 2,205,778 2,202,158 2,131,267 2,187,854 2,167,481 Retail Trade - Home Furnishings/Dectronics 1,527,377 1,623,926 1,613,643 1,649,843 1,715,419 Retail Trade - Miscellaneous 1,954,150 2,032,967 2,077,239 2,131,804 2,089,854 Retail Trade - Clothing & Accessories 2,159,647 2,089,128 2,066,858 2,084,482 1,996,280 Retail Trade - Restaurants 1,703,187 1,751,724 1,886,139 2,009,051 2,080,421 Retail Trade - Automotive/Gas 825,143 743,468 800,580 1,385,284 1,063,607 Retail Trade - Building Materials 683,485 733,928 805,324 813,656 835,211 Service Industries - Business 1,265,789 1,467,620 1,436,825 2,051,035 2,039,153 Service Industries - Hotels 626,822 650,270 650,332 717,341 744,823 Service Industries - Other 273,514 253,089 267,544 394,128 346,020 All Other Categories 978,142 845,209 812,656 115,128 106,610 Total Retail Sales Tax Collections $ 18,663,814 $ 18,262,544 $ 18,164,227 $ 19,894,510 $ 19,916,461 Notes: By State law, the City of Tukwila is prohibited from reporting individual sales tax payers. Sources: Tukw ila Finance Department and Washington State Department of Revenue. 150 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE10 RETAIL SALES TAX COLLECTIONS BY SECTOR (continued) LAST TEN FISCAL YEARS page 2 of 2 2020 2021 2022 2023 2024 Major Industry Sector $ 2,389,360 $ 1,664,634 $ 1,704,697 $ 2,239,350 $ 2,336,635 Construction and Contracting 112,453 126,652 130,194 131,804 142,899 Finance, Insurance & Real Estate 221,232 222,561 223,090 228,453 249,653 Manufacturing 789,886 905,716 1,057,456 1,220,872 1,225,200 Transportation, Communications & Utilities 1,101,801 1,292,657 1,355,512 1,404,809 1,352,956 Wholesale - Durable/Non-durable Goods 1,836,829 1,886,826 1,739,575 1,926,985 1,867,660 Retail Trade - General Merchandise 1,419,767 1,866,419 1,875,690 1,902,006 1,804,535 Retail Trade - Home Furnishings/Bectronics 1,994,491 2,897,074 2,856,649 3,018,848 3,827,741 Retail Trade - Miscellaneous 1,186,857 1,920,971 1,837,386 1,958,083 2,100,617 Retail Trade - Clothing & Accessories 1,273,300 1,815,023 2,160,843 2,353,747 2,429,910 Retail Trade - Restaurants 560,743 743,240 837,554 694,189 659,278 Retail Trade - Automotive/Gas 996,994 1,080,480 1,080,097 904,309 781,223 Retail Trade - Building Materials 1,684,693 1,767,313 1,980,165 2,254,266 2,024,349 Service Industries - Business 251,581 473,028 775,911 841,250 862,491 Service Industries - Hotels 340,104 373,547 391,768 417,434 392,337 Service Industries - Other 150,053 143,845 843,726 197,103 44,858 All Other Categories $ 16,310,144 $ 19,179,986 $ 20,850,313 $ 21,693,508 $ 22,102,343 Total Retail Sales Tax Collections 151 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 11 SALES TAX RATE DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS 2015 2016 2017 (a) 2018 2019 2020 2021 (') 2022 2023 2024(`) BASIC SALES TAX RATES �e1 City of Tukw ila 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% Washington State 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% King County 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.35% 0.35% 0.35% 0.45% Regional Transit Authority 0.90% 0.90% 0.90% 1.40% 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% 10.00% 10.00% 10.00% 10.10% 10.10% 10.10% 10.20% Notes: lal Effective April 1, 2017, the Regional Transit Authority Tax increased five -tenths of one percent (.005), to one and four -tenths of one percent (.014). The tax will be used to expand and coordinate light-rail, commuter -rail, and express bus service, and improve access to transit facilities in King, Pierce, and Snohomish Counties. (b) 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. ` Effective July 1, 2024, sales and use tax within all of King County, except for Seattle, increased one-tenth of one percent (.001). The tax W11 be used for affordable housing and realted services. Source: Washington State Department of Revenue Local Sales and Use Tax Rates. 152 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION 153 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE12 RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Page 1 of 2 2015 2016 2017 2018 2019 GOVERNMENTAL ACTIVITIES General Obligation Bonds (`) $ 30,084,437 $ 64,589,264 $ 69,576,786 $ 85,625,504 $ 147,210,840 Special Assessment (d) 6,082,500 5,412,500 4,805,000 4,320,000 3,910,000 Total Governmental Activities 36,166,937 70,001,764 74,381,786 89,945,504 151,120,840 BUSINESS -TYPE ACTIVITIES General Obligation Bonds - - - - - Revenue Bonds 1,742,527 1,597,704 1,454,422 1,304,763 1,154,027 Public Works Trust Fund Loans 5,646,458 5,046,900 4,447,522 3,848,055 3,248,587 Leases - - - - - Total Business -Type Activities 7,388,985 6,644,604 5,901,944 5,152,818 4,402,614 TOTAL PRIMARY GOVERNMENT(a) $ 43,555,922 $ 76,646,368 $ 80,283,729 $ 95,098,322 $ 155,523,454 Population (b) 19,300 19,540 19,660 19,800 20,930 Per Capita Personal Income (b) $ 76,226 $ 79,323 $ 84,598 $ 88,308 $ 92,026 Percentage of Personal Income 2.96% 4.95% 4.83% 5.44% 8.07% Debt Per Capita $ 2,257 $ 3,923 $ 4,084 $ 4,803 $ 7,431 Notes: (a) Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements section. (b) Reference SCHEDULE 16, Demographic Statistics, for population and personal income data. (c) Includes amounts Due to Other Governments. (d) Special assessment debt was issued in 2013 for the Klickitat Urban Access Project. *** Data not available at time of publication. Sources: U.S. Census Bureau WA State Office of Financial Management City of Tukw ila Finance Department $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 Total Debt wl�i�l.�IQi[�I���,i►IAF:�I�Ci►I�y��il�ylFi►��Y.yi�I�►ICirI�►L! 154 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 12 RATIOS OF OUTSTANDING DEBT BY TYPE (continued) LAST TEN FISCAL YEARS Page 2 of 2 2020 2021 2022 2023 2024 155 GOVERNMENTAL ACTIVITIES $ 144,037,716 $ 143,233,473 $ 134,569,428 $ 127,964,421 $121,343,702 General Obligation Bonds (°) 3,430,000 3,060,000 2,685,000 2,285,000 1,895,000 Special Assessment (d) 147,467,716 146,293,473 137,254,428 130,249,421 123,238,702 Total Governmental Activities BUSINESS -TYPE ACTIVITIES - - - - - General Obligation Bonds 997,413 840,235 677,704 515,144 347,781 Revenue Bonds 2,649,119 2,075,702 1,476,234 902,817 329,400 Public Works Trust Fund Loans - - - - - Leases 3,646,532 2,915,937 2,153,938 1,417,961 677,181 Total Business -Type Activities $ 151,114,248 $ 149,209,410 $ 139,408,366 $ 131,667,382 $123,915,883 TOTAL PRIMARY GOVERNMENT(a) 21,360 21,798 22,620 22,780 22,930 Population (b) $ 96,647 $ 108,212 $ 113,819 $ 122,235 — Per Capita Personal Income (b) 7.32% 6.33% 5.41% 4.73% "' Percentage of Personal Income $ 7,075 $ 6,845 $ 6,163 $ 5,780 $ 5,404 Debt Per Capita 155 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE13 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS 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 156 Ratio of Net Net Special Less Debt Bonded Debt Bonded Fiscal Gross Bonded Assessment Service Net Bonded to Assessed Debt per Year Population Assessed Value Debt Debt(a) Funds (b) Debt Value Capita 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 2024 22,930 9,950,560,640 121,343,702 1,895,000 1,859,780 121,378,922 1.22% 5,293 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 156 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE14 COMPUTATION OF DIRECT AND OVERLAPPING DEBT AS OF DECEMBER 31, 2024 Total Direct and Overlapping Debt: $ 1,644,041,268 $ 198,953,875 Sources: King County Office of Finance King County Office of Assessments (1) The percentage of overlapping debt applicable is estimated using taxable county assessed property values. General Percentage Estimated c 0 Obligation Debt Applicable to Applicable to Jurisdiction Outstanding Tukw ila(') Tukw ila $80 ■ King County $60 ■ Port of Seattle Direct: ■Tukwila School District $20 City of Tukwila $ 121,343,702 100.00% $ 121,343,702 Overlapping: King County 1,016,169,000 1.14% 11,584,327 Port of Seattle 445,465,000 1.14% 5,078,301 Tukwila School District #406 61,063,566 99.81% 60,947,545 Total Overlapping Debt: 1,522,697,566 77,610,173 Total Direct and Overlapping Debt: $ 1,644,041,268 $ 198,953,875 Sources: King County Office of Finance King County Office of Assessments (1) The percentage of overlapping debt applicable is estimated using taxable county assessed property values. 157 Direct and Overlapping Debt $140 c 0 $120 $100 ■ City of Tukwila $80 ■ King County $60 ■ Port of Seattle $40 ■Tukwila School District $20 $- 157 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE15 LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Paae 1 of 2 Assessed Value as of December 31, 2024 $9,950,560,640 Debt Limit (7.5% of assessed value) 746,292,048 Debt applicable to limit: General obligation bonds 121,343,702 Other long-term debt - 624,948,346 Less: Amount set aside for repayment of general obligation debt and contracts payable Total net debt applicable to limit 1,859,780 Legal debt margin $ 744,432,268 Source: Tukw ila Finance Department 158 2015 2016 2017 2018 2019 Debt Limit $ 379,055,906 $ 432,273,737 $ 404,649,384 $ 461,687,008 $ 500,537,994 Total net debt applicable to limit 23,288,621 60,208,532 63,662,386 79,701,909 135,668,490 Legal debt margin $ 355,767,285 $ 372,065,205 $ 340,986,998 $ 381,985,099 $ 364,869,504 Total net debt applicable to the limit as a percentage of debt limit 6.14% 13.93% 15.73% 17.26% 27.10% Assessed Value as of December 31, 2024 $9,950,560,640 Debt Limit (7.5% of assessed value) 746,292,048 Debt applicable to limit: General obligation bonds 121,343,702 Other long-term debt - 624,948,346 Less: Amount set aside for repayment of general obligation debt and contracts payable Total net debt applicable to limit 1,859,780 Legal debt margin $ 744,432,268 Source: Tukw ila Finance Department 158 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE15 LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS 2 of 2 2020 2021 2022 2023 2024 $ 591,229,317 $ 600,816,902 $ 672,783,941 $ 714,684,373 $ 746,292,048 Debt Limit 136,578,098 136,149,662 141,383,534 136,889,888 121,343,702 Total net debt applicable to limit $ 454,651,219 $ 464,667,240 $ 531,400,407 $ 577,794,485 $ 624,948,346 Legal debt margin Total net debt applicable to the limit 23.10% 22.66% 21.01% 19.15% 16.26% as a percentage of debt limit 159 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 16 DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS 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) Tukw ila School District #406 US Bureau of Economic Analysis Unemployment Rate 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 160 Per Capita Personal Number of Number of Tukw ila School Fiscal Personal Income (b) Single -Family Multi -Family District Unemployment Year Population Income (a) (in thousands) Homes Units Enrollment Rate (`) 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 22,780 122,235 2,784,513 4,281 5,251 2,715 3.5% 2024 22,930 *** *** 3,973 5,258 2,828 4.2% 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) Tukw ila School District #406 US Bureau of Economic Analysis Unemployment Rate 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 160 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 17 PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Source: (al Washington State Department of Revenue. The Qty of Tukw ila contracts w ith the State to manage its business licenses. In accordance w ith state law , empoyee count by business is confidential. Starting w ith the 2024 ACFR, only the total numberof employers and employees by Industry is available for comparison. Ib�Tukwila Finance Department 161 2015 Full & Percentage of 2024 Number of Percent Number of Part -Time Total Qty Name of Company/Employer Industry Employees (al of Total Employers Employment (b) Employees Rank Rank Construction 1 4,517 18.4% 67 Manufacturing 2 4,054 16.5% 383 Wholesale Trade 3 2,764 11.2% 187 Retail Trade 4 2,221 9.0% 138 Transportation and Warehousing 5 2,055 8.4% 199 Information 6 1,328 5.4% 138 Finance and Insurance 7 1,205 4.9% 154 Real Estate and Rental and Leasing 8 1,153 4.7% 56 Professional, Scientific, and Technical Services 9 1,109 4.5% 150 Management of Companies and Enterprises 10 1,064 4.3% 79 Boeing Company Aircraft Manufacturing 7,144 1 20.9% Group Health Cooperative Data Ctr/Lab/Pharmacy/Mfg. 1,550 2 4.5% Costco Cash/Carry Warehouse 807 3 2.4% King County Metro Transit 500 4 1.5% Boeing Employee's Credit Union Credit Union 499 5 1.5% Nordstrom Department Stores 483 6 1.4% Real Time Staffing Services Inc. Employment Agency 363 7 1.1% Red Dot Corporation Heater/air Conditioning Equipment 352 8 1.0% Qty of Tukw ila Municipality 334 9 1.0% Macy's Department Stores 280 10 0.8% Sub -total - Major Employers 21,470 12,312 All Other Employment 3,114 12.7% 267 21,867 TOTAL EMPLOYMENT 24,584 34,179 Source: (al Washington State Department of Revenue. The Qty of Tukw ila contracts w ith the State to manage its business licenses. In accordance w ith state law , empoyee count by business is confidential. Starting w ith the 2024 ACFR, only the total numberof employers and employees by Industry is available for comparison. Ib�Tukwila Finance Department 161 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE18 FULL TIME EQUIVALENT EMPLOYEE BY DEPARTMENT LAST TEN FISCAL YEARS 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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) 19.00 16.00 16.00 13.00 10.00 10.00 5.00 5.00 5.00 29.50 Human Resources (a) 4.00 4.00 4.00 4.00 - - - - - - Finance 12.00 12.00 11.00 11.00 12.00 12.00 12.00 13.00 14.00 15.00 Recreation 16.75 17.25 16.25 16.00 16.25 16.50 14.25 15.00 15.75 16.00 Community Development 21.00 23.75 23.00 25.00 24.00 22.00 29.00 28.75 28.75 28.75 Court 8.10 11.00 11.00 11.00 11.00 10.25 10.65 10.65 12.00 12.00 Police 93.00 93.75 92.75 97.00 98.00 84.00 86.00 81.00 93.00 98.00 Fire 70.00 71.00 72.00 73.00 66.00 64.00 61.00 64.00 64.00 - Information Technology (b) 6.00 7.00 9.00 9.00 9.00 7.00 - - - - Public Works 32.00 32.00 27.00 27.00 27.20 22.00 27.00 24.00 29.00 28.00 Parks 7.00 8.00 8.00 9.00 9.00 7.00 9.75 9.75 8.50 8.50 Street 10.00 12.00 11.50 11.50 11.50 7.50 12.00 10.00 11.50 4.50 Water 6.00 7.00 7.50 7.50 7.40 7.50 6.00 6.00 6.00 8.00 Sew er 2.00 2.00 4.50 4.50 4.40 3.50 3.00 4.00 4.00 8.50 Golf 8.25 7.75 8.75 9.00 8.75 8.00 9.75 10.50 10.50 10.75 Surface Water 9.00 9.00 11.50 11.50 12.50 12.50 7.00 8.00 7.50 15.50 Equipment Rental 5.00 5.00 5.00 5.00 5.00 3.00 5.00 5.00 4.00 5.00 TOTAL 337.10 346.50 346.75 352.00 350.00 314.75 329.40 326.65 345.50 296.00 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 and again in 2024. (b) Administrative Services includes City Clerk (previously reported in the Mayor's Office) and Information Technology (previously reported as a separate department). Sources: Tukw ila Finance Department 162 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE19 OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 FUNCTION Total Customers 2,145 2,160 Police 2,185 2,195 2,205 2,215 2,208 Total Gallons; Water Number of Calls for Service 32,946 34,229 33,123 33,288 32,465 30,079 31,338 34,345 34,805 Fire(') 605,637 Sanitary Sewer Number of Responses 5,549 5,754 5,840 5,734 5,724 5,284 6,869 7,527 6,227 Total Fre Loss $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 2,331 1,860 1,951 2 7 5 927 611 1,421 Parks and Recreation Tukwila Business Licenses 2,220 1,909 2,120 2,078 1,976 2,132 2,218 2,322 Class Participants 68,970 64,782 83,030 73,906 78,435 27,741 26,000 38,407 50,936 Community Ctr Admissions 136,984 141,218 143,872 143,160 175,311 24,804 20,726 38,507 46,073 Rounds of Golf Rayed 51,017 47,595 43,568 49,357 50,561 58,028 64,203 58,856 60,011 Street 173 9ectricalPermts 1,119 1,175 1,047 1,046 1,059 875 928 933 Mies 79 79 79 79 79 79 79 79 79 Flours Maintaining 4.716 4,836 4,936 5,120 5,028 3,764 2,866 3,548 5,566 Streets/Sidew elks Number of Libraries 2 2 2 2 2 2 Signalized Intersections 62 64 66 68 68 74 74 74 74 Flours Maintaining 2,408 2,135 2,986 2,415 2,701 1,810 2,113 2,393 2,714 Signals/Lights Water Utility Services Total Customers 2,145 2,160 2,176 2,185 2,195 2,205 2,215 2,208 Total Gallons; Water (in thousands) 697,147 655,472 697,210 672,700 618,194 543,468 597,831 605,637 Sanitary Sewer Total Customers 1,775 1,789 1,808 1,836 1,845 1,860 1,872 1,876 Surface Water Total Customers 5,242 5,249 5,282 5,286 5,289 5,261 5,278 5,282 Licenses Tukwila Business Licenses 2,220 1,909 2,120 2,078 1,976 2,132 2,218 2,322 Non -Resident Business Licenses 1,215 945 1,437 1,319 1,688 2,081 2,532 2,719 Permits Building Permits 277 311 348 381 371 262 266 262 Mechanical Permits 154 192 198 169 193 165 166 173 9ectricalPermts 1,119 1,175 1,047 1,046 1,059 875 928 933 Plumbing Permits 140 185 165 161 176 133 138 121 Public Works Permits 163 175 136 152 153 249 242 257 Libraries Number of Libraries 2 2 2 2 2 2 2 2 Total Circulation(" 214,520 184,492 157,168 180,155 151,578 125,609 132,695 157,962 Notes: (a) Due to information system and data program transitioning, this total does not include fire prevention staff inspections. (b) During 2012, Outside Contractors began their ow n business licensing category. Prior to this, outside contractors w ere consolidated w ith current year issued licenses. (c) The City transferred its fire services to the RFA in 2023. (d) Starting in 2024, reporting all physical and electronic library media. Sources: Tukw He Departments, King County Library System 163 2,289 642,289 1,876 5,282 2,338 3,004 256 217 1,202 141 267 2 171,922 32,923 0 $0 0 51,819 66,802 57,105 79 4,222 65 2,903 2,331 640,661 1,883 5,285 2,328 3,365 239 170 1,025 133 278 2 310,373 CITY OF TUKWILA: 2024 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 20 CAPITAL ASSETS BY FUNCTION LAST TEN FISCAL YEARS 2015 2016 2017 2018 2019 2020(') 2021(') 2022 2023 2024 FUNCTION 49 49 49 49 49 49 49 50 50 50 General Government 10 10 10 10 10 10 10 10 10 10 Total City Area (Square Miles) 9.63 9.63 9.63 9.63 9.63 9.63 9.63 9.63 9.63 9.63 Public Safety 9 9 9 8 8 8 8 8 8 8 Police: Number of Vehicle Units 89 93 93 80 88 88 88 89 90 101 Fire:M 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 Number of Fire Stations 4 4 4 4 4 4 4 4 4 0 Number of Engines/Rescue Trucks/Ladders 9 9 8 8 11 8 8 8 8 0 Number of Medical Aid Vehicles 1 1 1 1 1 1 1 2 2 0 Number of Hazardous Materials Trailer Units 2 2 2 1 1 1 1 1 1 0 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 65.0 65.0 66.0 66.0 66.0 66.0 66.0 Number of Traffic Signals 63 74 76 74 74 74 74 74 74 74 Number of Streetlights Ow ned by Seattle City Light 902 902 902 908 910 910 910 910 910 910 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 190 190 191 191 191 193 193 193 193 193 Number of Parks 19 19 20 20 20 21 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 13 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 50 50 50 Maximum Daily Capacity (millions of gallons) 10 10 10 10 10 10 10 10 10 10 Number of Fire Hydrants (Ow ned by City of Tukw ila) 577 577 579 579 589 601 601 603 603 603 Vehicles 9 9 9 8 8 8 8 8 8 8 Sewer Sanitary Sewers (miles) 37 37 39 39 39 39 40 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 5 5 3 3 3 3 3 3 3 Surface Water Storm Drains (miles) 70.5 70.5 97.4 97.4 97.4 97.4 111.0 111.0 111.0 111.0 Vehicles 8 8 8 9 9 8 8 8 8 10 Notes: (a) Reflects number of active stations. In 2020, a new Station 51 was opened and the former Station 51 has not yet been surplused. (b) Reflects number of active station. In 2021, a new Station 52 was opened and the former Station 52 has not yet been surplused. (c) The City transferred its fire services to the RFA in 2023. Sources: Various City of Tukw ila departments 164