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Home My WebLink AboutCOW 2009-11-23 Item 4B - Resolution - 2010-2015 Financial Planning Model and Capital Improvement Program CouNcIL AGENDA SYNOPSIS 1LQ y J E f Inetialr ITEM NO. 4 1 1 Meettnn Date Prepared by 1 Mayor's review Council review —1I .4 11/23/09 1 GL I I .;�x v�\ f 12/07/09 1 GL 1 1 f 4. _'-;'ITEM INFORMATION- cAS NUMBER: 09-163 ORIGINAL AGENDA DATE: NOVEMBER 23, 2009 A GENDA ITEM TITLE Resolution adopting the 2010 -2015 Financial Planning Model and Capital Improvement Program 2ATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 11/23/09 Mtg Date Mtg Date 12/07/09 Mtg Date Mtg Date Mtg Date Mtg Date >PONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P &R Police PW/ ;PONSOR'S This Resolution will adopt the 2010 2015 Financial Planning Model and Capital ;UMMARY Improvement Program. Council reviewed the Proposed 2010 2015 CIP at the Budget Workshop held 11/5/09. The City's Fund Balance Policy (page V, 2010 Proposed CIP) states that accumulated totals within the six -year Financial Planning Model may not recede below $3 million. LEV EWE D BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DA'Z'E: 11/17/09 tECOMMENDATIONS: SPONSOR /ADMIN. Public Works COMMITTEE Forward to Committee of the Whole for discussion COST IMPACT /.FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 $0.00 'und Source: 7omrents: MTG,: DATE) RECORD,OF,COUNCIL ACTION 11/23/09 12/07/09 f MTG. DATE) 'ATTACHMENTS 11/23/09 Informational Memorandum dated 11/10/09 Draft Resolution Attachment A (3 versions) Minutes from the Finance Safety Committee meeting of 11/17/09 12/07/09 1 13 14 TO: ISSUE Attachments: Resolution Attachment A (3 versions) H: \CIP \Resolution 2010 -2015 Info Memo.doc City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton FINANCE SAFETY COMMITTEE FROM: 4g:5 Interim Public Works Director Finance Director DATE: November 10, 2009 SUBJECT: 2010 2015 Financial Planning Model and Capital Improvement Program Resolution Approve Resolution adopting the 2010 2015 Financial Planning Model and Capital Improvement Program (CIP). BACKGROUND The City now has a biennial budget for 2009 2010 so we do not have to review the budget for 2010, however the six -year 2010 2015 Financial Planning Model and CIP still have to be approved. The Council reviewed the Attachments and the CIP projects at the CIP Workshop held on November 5, 2009. Council requested some additional options for Attachment A in order to adhere to the policy that the accumulated totals do not recede below $3 million. ANALYSIS The first Attachment A is what is currently in the Proposed 2010 2015 CIP with a deficient of $11.629 million in 2015. The second Attachment A has additional revenue or reduced expenditures of approximately $3 million each year in order to balance Attachment A with $3 million in 2015, as City policy requires. This second Attachment A also refunds the Utility Enterprise Funds for the utility tax that was implemented in October, 2009, should Council decide to repay this money. Both of these Attachments have very limited Capital projects that show no significant improvements in the years 2013 through 2015. The third Attachment A shows additional revenue or reduced expenditures of approximately $5 million each year with a "realistic" CIP that includes additional capital projects to maintain service levels from before recent budget reductions and project deferrals. This version also refunds the Utility Enterprise funds in 2014 and 2015. Also under consideration is the Attachments D through F for the Water, Sewer and Surface Water funds with the new utility tax. Future rate increases will have to be determined depending if the enterprise funds are refunded in 2014 and 2015. RECOMMENDATION The Council is being asked to approve the Resolution for the 2010 2015 Financial Planning Model and Capital Improvement Program for consideration at the November 23, 2009 Committee of the Whole meeting and subsequent December 7, 2009 Regular Meeting. 15 16 A cT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE 2010 -2015 FINANCIAL PLANNING MODEL AND THE CAPITAL IMPROVEMENT PROGRAM FOR GENERAL GOVERNMENT AND THE CITY'S ENTERPRISE FUNDS. WHEREAS, when used in conjunction with the biennial City budget, the Capital Improvement Program (CIP) and the Financial Planning Model for the period 2010 -2015 are resource documents to help plan directions the City will consider for the future; and WHEREAS, the Financial Planning Model and Capital Improvement Program are not permanent fixed plans, but are guidelines or tools to help reflect future goals and future resources at the time budgets are being planned; and WHEREAS, the commitment of funds and resources can only be made through the budget process; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City Council hereby adopts the 2010 -2015 Financial Planning Model and accompanying Capital Improvement Program, incorporated by this reference as if fully set forth herein. Section 2. A copy of the 2010 -2015 Financial Planning Model and accompanying Capital Improvement Program shall be kept on file in the City Clerk's Office. Section 3. The assumptions, revenues and expenditures will be reviewed and updated annually, or as necessary, by the City Council. Section 4. The detail of Capital Improvement Program projects will be reflected in the published Financial Planning Model and Capital Improvement Program 2010 -2015. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2009 ATTEST/ AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney W. \Word Processing Resolutions \2010 -2015 Financial Planning Model CIP.doc GLksn 11/18/2009 Joan Hernandez, Council President Filed with the City Clerk: Passed by the City Council. Resolution Number Attachment: Financial Planning Model and Capital Improvement Program 2010 -2015 Page 1 of 1 17 18 REVENUES (see A -1) General Revenues Sales Tax 15,502 15,967 16,446 16,940 17,448 17,971 100,274 Property Taxes 12,400 12,710 13,028 13,353 13,687 14,029 79,208 Utility Taxes 4,747 4,889 5,036 5,187 5,343 5,503 30,706 Interfund Utility Taxes 2,600 900 900 0 0 0 4,400 Gambling Taxes 2,099 2,162 2,227 2,294 2,362 2,433 13,577 Contract Agreement SCL 1,976 2,035 2,096 2,159 2,224 2,291 12,782 Charges /Fees for Services 5,273 5,431 5,594 5,762 5,935 6,113 34,108 Transfers In Other Funds 2,493 2,568 2,645 2,724 2,806 2,890 16,126 Intergovernmental Revenue 922 950 978 1,007 1,038 1,069 5,964 Other Taxes /Miscellaneous 1,640 1,689 1,740 1,792 1,846 1,901 10,608 Subtotal 49,652 49,302 50,690 51,219 52,689 54,201 307,752 Dedicated Revenues (Capital) Real Estate Taxes 500 515 530 546 563 580 3,234 Motor Vehicle Taxes 455 469 483 497 512 527 2,943 Investment Interest/Misc. 500 515 530 546 563 580 3,234 Property Taxes 130 130 130 130 130 130 780 Parking Taxes 140 140 140 140 140 140 840 Transfers from Golf Course 0 0 150 150 175 175 650 Subtotal 1,725 1,769 1,964 2,010 2,083 2,132 11,682 TOTAL REVENUE AVAILABLE 51,377 51,070 52,654 53,229 54,771 56,333 319,434 ATTACHMENT A CITY OF TUKWILA TOTAL REVENUES EXPENDITURES 2010 2015 Analysis in 000's 2010 2011 2012 2013 2014 2015 Totals EXPENDITURES Operations Maintenance: 45,376 49,652 51,680 54,221 56,900 59,175 317,005 (See Attachment B) Howard Hanson Dam Response 2,500 2,500 300 300 300 300 6,200 Debt Service 2,466 2,464 2,460 2,467 2,457 1,974 14,288 Admin /Engineering Overhead 300 309 318 328 338 348 1,941 Subtotal Available 735 (3,855) (2,104) (4,088) (5,223) (5,464) (20,000) Capital Attachment C Residential Streets 0 0 0 0 150 300 450 Bridges 245 145 205 205 270 270 1,340 Arterial Streets 3,515 2,444 1,580 1,355 1,355 1,365 11,614 Parks Trails 624 459 284 390 237 274 2,268 General Government Facilities 121 (2,177) (2,178) 0 110 140 (3,984) General Improvements 200 535 500 500 500 500 2,735 Fire Improvements (50) (50) 0 0 0 (55) (155) Subtotal Capital 4,655 1,356 391 2,450 2,622 2,794 14,268 Balance by Year Carryover from 2009 (3,920) (5,211) (2,495) (6,538) (7,845) (8,258) (34,268) 22,639 0 0 0 0 0 22,639 Accumulated Totals 18,719 13,508 11,013 4,475 (3,370) (11,629) 2010 2015 Financial Planning Model 'Original "Draft" VII 11/09/2009 19 REVENUES (seeA -1) General Revenues Sales Tax Property Taxes Utility Taxes Interfund Utility Taxes Gambling Taxes Contract Agreement SCL Charges /Fees for Services Transfers In Other Funds Intergovernmental Revenue Other Taxes /Miscellaneous Subtotal Dedicated Revenues (Capital) Real Estate Taxes Motor Vehicle Taxes Investment Interest/Misc. Property Taxes Parking Taxes Transfers from Golf Course Subtotal TOTAL REVENUE AVAILABLE EXPENDITURES Operations Maintenance: (See Attachment B) Howard Hanson Dam Response Debt Service Admin /Engineering Overhead Subtotal Available Capital Attachment C Residential Streets Bridges Arterial Streets Parks Trails General Govemment Facilities General Improvements Fire Improvements Subtotal Capital Balance by Year Carryover from 2009 Accumulated Totals 20 2010 2015 Financial Planning Model ATTACHMENT A With Additional Revenue 1 CITY OF TUKWILA TOTAL REVENUES EXPENDITURES 2010 2015 Analysis in 000's 2010 2011 2012 2013 2014 2015 15,502 12,400 4,747 2,600 2,099 1,976 5,273 2,493 922 1,640 52,652 121 200 (50) 4,655 22,639 15,967 12,710 4,889 ,jt 900 2,162 2,035 5,431 2,568 950 1,689 52,377 (2,177) 535 (50) 1,356 16,446 13,028 5,036 900 2,227 2,096 5,594 2,645 978 1,740 53,842 (2,178) 500 0 391 16,940 17,448 17,971 13,353 13,687 14,029 5,187 5,343 5,503 0 2,294 2,362 2,433 2,159 2,224 2,291 5,762 5,935 6,113 2,724 2,806 2,890 1,007 1,038 1,069 1,792 1,846 1,901 54,449 53,800 55,395 500 515 530 546 563 580 455 469 483 497 512 527 500 515 530 546 563 580 130 130 130 130 130 130 140 140 140 140 140 140 0 0 150 150 175 175 1,725 1,769 1,964 2,010 2,083 2,132 54,377 54,145 55,806 56,459 55,883 57,527 45,376 49,652 51,680 54,221 56,900 59,175 2,500 2,500 300 300 300 300 2,466 2,464 2,460 2,467 2,457 1,974 300 309 318 328 338 348 3,735 (780) 1,048 (857) (4,112) (4,270) 0 0 0 0 150 300 245 145 205 205 270 270 3,515 2,444 1,580 1,355 1,355 1,365 624 459 284 390 237 274 0 110 140 500 500 500 0 0 (55) 2,450 2,622 2,794 (920) (2,136) 657 (3,307) (6,734) (7,064) 0 0 0 0 0 21,719 19,583 20,239 16,933 10,199 3,134 VII 11/09/2009 Totals 100,274 79,208 30,706 iotitt 13,577 12,782 34,108 16,126 5,964 10,608 322,515 3,234 2,943 3,234 780 840 650 11,682 334,197 317,005 6,200 14,288 1,941 (5,237) 450 1,340 11,614 2,268 (3,984) 2,735 (155) 14,268 (19,505) 22,639 Accumulated Totals 2010 2015 Financial Planning Model ATTACHMENT A CITY OF TUKWILA TOTAL REVENUES EXPENDITURES 2010 2015 Analysis in 000's 23,369 21,685 23,072 18,597 9,606 3,138 With Additional Revenue "Realistic" CIP REVENUES (see A -1) 2010 2011 2012 2013 2014 2015 Totals General Revenues Sales Tax 15,502 15,967 16,446 16,940 17,448 17,971 100,274 Property Taxes 12,400 12,710 13,028 13,353 13,687 14,029 79,208 Utility Taxes 4,747 4,889 5,036 5,187 5,343 5,503 30,706 SR ev Esc Redgt flr� a 5 =t 0 y e vn,. y :5 ,28 ,58 5929`= 5,fi29 x5,774 ,,577., Interfund Utility Taxes 2,600 900 3 900 0 s 2,20U TAT Gambling Taxes 2,099 2,162 2,227 2,294 2,362 2,433 13,577 Contract Agreement SCL 1,976 2,035 2,096 2,159 2,224 2,291 12,782 Charges /Fees for Services 5,273 5,431 5,594 5,762 5,935 6,113 34,108 Transfers In Other Funds 2,493 2,568 2,645 2,724 2,806 2,890 16,126 Intergovernmental Revenue 922 950 978 1,007 1,038 1,069 5,964 Other Taxes /Miscellaneous 1,640 1,689 1,740 1,792 1,846 1,901 10,608 Subtotal 54,752 54,529 56,048 56,711 56,118 57,771 335,930 Dedicated Revenues (Capital) Real Estate Taxes 500 515 530 546 563 580 3,234 Motor Vehicle Taxes 455 469 483 497 512 527 2,943 Investment Interest/Misc. 500 515 530 546 563 580 3,234 Property Taxes 130 130 130 130 130 130 780 Parking Taxes 140 140 140 140 140 140 840 Transfers from Golf Course 0 0 150 150 175 175 650 Subtotal 1,725 1,769 1,964 2,010 2,083 2,132 11,682 TOTAL REVENUE AVAILABLE 56,477 56,298 58,012 58,721 58,201 59,903 347,611 EXPENDITURES Operations Maintenance: 45,376 49,652 51,680 54,221 56,900 59,175 317,005 (See Attachment B) Howard Hanson Dam Response 2,500 2,500 300 300 300 300 6,200 Debt Service 2,466 2,464 2,460 2,467 2,457 1,974 14,288 Admin /Engineering Overhead 300 309 318 328 338 348 1,941 Subtotal Available 5,835 1,373 3,254 1,405 (1,794) (1,894) 8,178 Capital Attachment C Residential Streets 250 400 100 150 150 175 1,225 Bridges 245 145 205 205 270 270 1,340 Arterial Streets 3,715 2,744 2,480 4,305 5,180 2,790 21,214 Parks Trails 624 459 585 435 782 719 3,604 General Government Facilities 121 (2,177) (2,178) 110 140 0 (3,984) General Improvements 200 1,535 675 675 675 675 4,435 Fire Improvements (50) (50) 0 0 0 (55) (155) Subtotal Capital 5,105 3,056 1,867 5,880 7,197 4,574 27,679 Balance by Year 730 (1,683) 1,387 (4,475) (8,991) (6,468) (19,501) Carryover from 2009 22,639 0 0 0 0 0 22,639 VII 11/09/2009 21 22 Finance Safety Committee Minutes November 17. 2009 Pao 2 C. Contract Amendment for Commercial Development Solutions Administration is seeking full Council approval for a contract amendment for Commercial Development Solutions (Lisa Verner, Tukwila South Project Manager). Due to Commercial Development Solutions in -depth and on -going involvement in the project, as well as efforts to keep the continuity of work moving forward, Administration is requesting Council approval of a contract amendment that will extend the current Commercial Development Solutions contract through December 31, 2010 (see Finance Safety Committee minutes dated, October 6, 2009). Activities relative to this project have increased, requiring Ms. Verner to spend additional time (billable hours) working on project management; therefore, the contract amendment calls for increase in the monthly billing limit from $8,000 to $11,000. In response to Committee member questions regarding other alternatives for management of this project (due to the current financial situation of the City), staff replied that a major information exchange would need to take place prior to the end of the year and a staff person would need to be indentified to take over the project. The Committee acknowledges the priority of managing this project prior to construction, as well as the City's current budgetary concerns, and made special note of the contract's 30 -day termination clause. The termination clause could allow the City to revisit priorities and take appropriate action if necessary. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 23 COW FOR DISCUSSION. D. 2010 Property Tax Lew Staff is seeking full Council approval of an ordinance increasing the City's Regular Property Tax Levy from the previous year; an ordinance levying the General Taxes and a resolution declaring a finding of substantial need relating to the Property Tax Levy. Shawn Hunstock reported that assessed values have decreased by over 4 however, several neighboring communities have experienced decreases as high as 10 Staff is recommending levying full 1% increase to property taxes due to a negative Implicit Price Deflator and a decline in assessed values which would result in levy rate that would result in a decline of property tax revenue to the City of approximately $250,000. This will be the first increase in the levy rate since 2005. Due to increased values over the past 4 or 5 years, no increase was necessary. The proposed levy rate for 2010 is $2.52 per $1,000 of assessed value as compared to $2.39 in 2009. In order to levy the full 1 Council will need to pass a resolution declaring a finding of substantial need relating to the property tax levy. A public hearing is scheduled for November 23, 2009. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 23 COW FOR DISCUSSION. E. A Resolution Adopting the 2010 -2015 CIP Staff is seeking full Council approval of a resolution adopting the 2010 -2015 CIP. Based on information that was requested at the November 5 Council Budget Update and CIP Review, staff has provided Council with three versions of Attachment A of the CIP: Scenario #1 Current Draft Attachment A which reflects two consecutive years with Accumulated Totals below $3 million. a Scenario #2 Draft Attachment A with additional revenues and/or expenditure reductions of approximately $3 million each year and refunds to the Utility Enterprise Funds. Scenario 113 Draft Attachment A with additional revenues and/or expenditure reductions of approximately $5 million each year with a CIP that returns levels of service to the pre- existing level prior to recent budget cuts. 23 24 Finance Safety Committee Minutes November 17. 2009 Paae 3 Council will need to determine which of the above scenario's to adopt as Attachment A. For informational purposes, staff reminded the Committee that there is a Financial Planning Model Policy (Policy FP -7) that indicates the Accumulated Totals within the 6 -Year Financial Planning Model may not recede below $3 million in Attachment A, Total Revenues and Expenditures. The draft CIP, as presented with Scenario #1, does not comply with the document's policy objectives. NO COMMITTEE RECCOMENDATION. FORWARD TO NOVEMBER 23 COW FOR DISCUSSION. B. 2009 3r Ouarter Reports The Committee had no questions regarding the status of program goals as outlined in the 2009 3r Quarter Report. INFORMATION ONLY. III. MISCELLANEOUS Meeting adjourned at 5:55 p.m. Next meeting: Tuesday, October 20, 2009 5:00 p.m. Conference Room #3 Committee Chair Approval Minutes by KAM. Reviewed by RB and SH.