HomeMy WebLinkAboutFS 2010-04-06 COMPLETE AGENDA PACKET1. PRESENTATION(S)
2. BUSINESS AGENDA
City of Tukwila
Finance and Safety
Committee
O De'Sean Quinn, Chair
O Allan Ekberg
O Kathy Hougardy
Item
b. Sales Tax Report;
Shawn Hunstock, Finance Director.
AGENDA
TUESDAY, APRIL 6, 2010
CONFERENCE ROOM #3; 5:00 PM
a. A resolution urging the United States Department
of Defense to select the Boeing Company to build
the next mid -air refueling tanker;
Steve Lancaster, City Administrator.
Distribution:
D. Quinn
A. Ekberg
K. Hougardy
D. Robertson
Mayor Haggerton
S. Lancaster
C. O'Flaherty
S. Brown
J. Ferrer -Santa Ines
B. Giberson
Action to be Taken
a. Forward to 4/12 C.O.W.
and 4/29 Regular.
Next Scheduled Meeting: Tuesday, Apri/ 20, 2010
The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206 433 -1800 for assistance.
D. Haynes J. Pace
S. Hunstock D. Speck
M. Hart R. Still
S. Kerslake D. Tomaso
K. Kertzman M. Villa
T. Kinlow Judge Walden
K. Matej B. Arthur
M. Miotke C. Parrish
G. Labanara K. Narog
D. Lincoln S. Kirby
N. Olivas S. Norris
Page
Pg.1
b. Information only. Pg.5
Committee Goals:
Work together in cooperation with nearby cities to address common problems in the Highway 99 corridor and Military
Road.
Ensure a commitment to continued human services funding in relation to the cost of living through consistent review
of regional, state and federal budgets affecting human services progams and services (also assigned to CAP).
Research the viability of sponsoring a City-wide Citizens' Academy (also assigned to CAP).
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Steve Lancaster, City Administrator
DATE: April 2, 2010
SUBJECT: Resolution urging the U.S. Department of Defense to select The Boeing
Company to build the next mid -air refueling tanker.
ISSUE
The Boeing Company has requested City support in its bid to be selected to build the next
generation of mid -air refueling tanker airplanes for the U.S. Air Force.
BACKGROUND
The Boeing Company is competing for a major Department of Defense contract to build the next
mid -air refueling tanker for the U.S. Air Force. Although this airplane will be built primarily in
Everett if Boeing is awarded the contract, the beneficial economic impacts will be felt throughout
the Puget Sound region and beyond. Boeing estimates this contract would create or retain
40,000 to 50,000 American jobs.
DISCUSSION
Similar resolutions have been adopted by the Cities of Seattle and Bellevue, King County, the
Greater Seattle Chamber of Commerce and seventeen other government and business entities
throughout the Puget Sound region.
RECOMMENDATION
City of Tukwila
w: \2010 infomemos \hoeing res apr52010.doc
INFORMATIONAL MEMORANDUM
Jim Haggerton, Mayor
Approve the proposed resolution and forward to the April 12, 2010 Committee of the Whole
meeting for consideration and subsequent adoption at the April 19, 2010 City Council meeting.
ATTACHMENTS
Draft resolution
City of Tukwila
Washington
Resolution No.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, URGING THE UNITED STATES DEPARTMENT OF
DEFENSE TO SELECT THE BOEING COMPANY TO BUILD THE NEXT
MID -AIR REFUELING TANKER.
WHEREAS, the United States Department of Defense has begun the process to
procure the Air Force's next mid -air refueling tanker; and
WHEREAS, a contract could be worth $35 billion; and
WHEREAS, the United States economy is currently struggling through a recession
of historic magnitude; and
WHEREAS, unemployment nationally and in Washington State remains around 10
percent; and
WHEREAS, United States taxpayers and our men and women in uniform deserve
the best tanker at the least cost; and
WHEREAS, the United States Air Force has thoroughly studied its needs and has
clearly articulated those needs in its Tanker Request for Proposal; and
WHEREAS, The Boeing Company's NewGen Tanker meets all of the United States
Air Force's requirements and brings the latest and most advanced technology to our
troops; and
WHEREAS, The Boeing Company has a history of producing successful tankers for
the United States Air Force and air forces of other countries; and
WHEREAS, The Boeing Company can deliver a better aircraft and provide its
services more quickly to our soldiers, sailors, airmen and women, and marines; and
WHEREAS, The Boeing Company will build its tankers in Everett, Washington, at
a proven plant, with a highly skilled and dedicated regional workforce that has a
tradition of building the best airplanes in the world; and
WHEREAS, Seattle and the Puget Sound region are home to the vast majority of
The Boeing Company's more than 75,000 employees; and
WHEREAS, each Boeing Company job supports nearly three additional jobs in the
region; and
WHEREAS, aerospace workers earn an average of more than $50,000 per year,
which is 60 percent higher than the national average for all private sector industries;
and
WHEREAS, approximately $5.4 billion is paid in annual wages to aerospace
workers, which is five percent of all wages paid in the State of Washington; and
WHEREAS, the Tukwila City Council values these jobs and the people who hold
them and will make it a priority to ensure Washington State and the Puget Sound
region remain the best places to design, build and market commercial airplanes; and
WHEREAS, The Boeing Company and their employees donate millions of dollars
and volunteer countless hours to community service organizations benefitting our
entire region; and
W: \Word Processing \Resolutions \Boeing Mid -Air Refueling Tanker.doc
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Page 1 of 2
WHEREAS, our national security interests are not served by sending this valuable
and strategic program overseas; and
WHEREAS, awarding the contract to The Boeing Company can create or retain
40,000 to 50,000 American jobs at a time in history when we desperately need them;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. The United States Department of Defense should select The Boeing
Company to build the next mid -air refueling tanker.
Section 2. The United States Department of Defense should not split the contract
between two competitors.
Section 3. Upon passage of this resolution, the Tukwila City Council hereby directs
the City Clerk to immediately forward copies of this resolution to:
x The Boeing Company Corporate Office in Chicago, Illinois
x Boeing Commercial Airplanes in Seattle, Washington
x The International Association of Machinists and Aerospace Workers (IAMAW)
x The Society of Professional Engineering Employees in Aerospace (SPEEA)
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of 2010.
ATTEST/ AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY:
Office of the City Attorney
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Dennis Robertson, Council President
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Page 2 of 2
TO:
FROM: Shawn Hunstock, Finance Director
DATE: March 31, 2010
SUBJECT: Sales Tax Revenue for January 2010
Schedule I
City of Tukwila
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance and Safety Committee
in 1,000's
Sales Receipt 2009 2010 2010 Increase /(Decrease) %Increase /(Decrease)
Month Month Actual Estimated Actual Month YTD Month YTD
Jan Mar 1,172 1,483 1,036 (447) (447) 30.14% 0.00%
Feb Apr 1,051 1,462 (1,462) (1,909) 100.00% 64.82%
Mar May 1,146 1,705 (1,705) (3,614) 100.00% 77.72%
Apr June 1,191 1,578 (1,578) (5,192) 100.00% 83.37%
May July 1,082 1,603 (1,603) (6,795) 100.00% 86.77%
June Aug 1,217 1,812 (1,812) (8,607) 100.00% 89.26%
July Sept 1,473 1,793 (1,793) (10,400) 100.00% 90.94%
Aug Oct 1,118 1,656 (1,656) (12,056) 100.00% 92.09%
Sept Nov 1,110 1,682 (1,682) (13,738) 100.00% 92.99%
Oct Dec 1,032 1,556 (1,556) (15,294) 100.00% 93.66%
Nov Jan11 1,140 1,631 (1,631) (16,925) 100.00% 94.23%
Dec Feb11 1,690 2,270 (2,270) (19,195) 100.00% 94.88%
Totals 14,422 20,231 1,036
Mitigation Received
312
1,348 90.90% of Budget Incl. Mitigation
Jim Haggerton, Mayor
Sales tax collections showed the seventeenth consecutive decrease in January compared to the
same period in the prior year. For January, collections were less than both budget and the same
month in the prior year. Actual receipts for January were $447,000 less than budget, and
$136,000 less than the same period last year. We are down 30.14% for the month compared to
budget, and 11.64% compared to the same period last year.
The chart above also includes the mitigation payment we received at the end of March, which is
actually for the fourth quarter of 2009 but is included in 2010 revenue because it will be received
so far after the end of the year. Including the mitigation payment, we are currently at 90.90% of
budget for the year to date. The mitigation payment we will receive on March 31s' will be
$311,653.10. This the same amount as the last mitigation payment received on December 31S
because the payments are now annualized and will only be adjusted once per year in the fall.
Schedule II shows the year -to -date sales tax from the top ten industry classifications. As this
schedule indicates, the trend is flat or down for most of the classifications.
INFORMATIONAL MEMO
Page 2
Schedule II
Group
423*
452*
448*
722*
443*
441*
451*
444*
453*
517
Mitigated NAICS Code
Schedule III
Name
Wholesale Trade, Durable Goods
General Merchandise Stores
Clothing and Accessories
Food Services, Drinking Places
Electronics and Appliances
Motor Vehicle and Parts Dealer
Sporting Goods, Hobby, Books
Building Material and Garden
Miscellaneous Store Retailers
Telecommunications
Group Name
238 Specialty Trade Contractors
236 Construction of Buildings
441* Motor Vehicle and Parts Dealer
453* Miscellaneous Store Retailers
721* Accommodation
532 Rental and Leasing Services
443* Electronics and Appliances
442* Furniture and Home Furnishings
451* Sporting Goods, Hobby, Books
452* General Merchandise Stores
Mitigated NAICS Code
YTD
Current
156,125
128,004
120,791
116,390
68,754
49,738
40,760
35,582
35,174
34,678
YTD
Current
12,255
34,407
49,738
35,174
30,787
21,242
68,754
28,130
40,760
128,004
YTD
Prior
156,793
136,403
122,233
102,459
78,402
72,948
43,963
34,636
48,794
28,005
Dollar
Diff. Diff.
(668) 0.43%
(8,399) 6.16%
(1,442) -1.18%
13,931 13.60%
(9,648) -12.31%
(23,210) 31.82%
(3,203) 7.29%
946 2.73%
(13,620) -27.91%
6,673 23.83%
As you can see there are large variances from last year for the same time period. For instance,
sales tax for Motor Vehicle and Parts Dealer is down by 31.82 and Miscellaneous Store
Retailers is down by 27.91%. As you can see from Schedule II, seven of the top ten merchant
categories have declined versus prior year, and all but one of the ten industry classification
codes are ones for which we receive streamlined sales tax mitigation.
Schedule Ill shows the ten largest declines in sales tax revenue for industries with over $10,000
collected in January.
Attached is a Sales Tax Summary comparing year -to -date 2010 vs. 2009 by major NAICS
codes. Also included is a comparison of total receipts year -to -date for the last five years.
Please let me know if you have any comments or questions. Thank you.
W:1FIN Projects\Sales Tax Information\Sales Tax Files from Shawn1201011nfo Memo Sales Tax 033010.docx
YTD Dollar
Prior Diff. Diff.
30,959 (18,703) -60.41%
83,683 (49,276) 58.88%
72,948 (23,210) 31.82%
48,794 (13,620) 27.91%
39,891 (9,104) 22.82%
24,502 (3,260) -13.31%
78,402 (9,648) -12.31%
30,630 (2,500) 8.16%
43,963 (3,203) 7.29%
136,403 (8,399) 6.16%
NAICS CONSTRUCTION 09 TOTAL
236 Construction of Buildings 416,992
237 Heavy Civil Construction 98,105
238 Specialty Trade Contractors 347,910
TOTAL CONSTRUCTION 863,006
Overall Construction Change from Previous Year
MANUFACTURING 09 TOTAL
311 Food Manufacturing 1,173
312 Beverage Tobacco Products 3,070
313 Textile Mills 259
314 Textile Product Mills 12,852
315 Apparel Manufacturing 59
316 Leather Allied Products 7
321* Wood Product Manufacturing 2,701
322* Paper Manufacturing 20,392
323* Printing Related Support 59,298
324 Petroleum Coal Products 8,157
325 Chemical Manufacturing 6,368
326 Plastic Rubber Products 3,928
327* Nonmetallic Mineral Products 2,279
331 Primary Metal Manufacturing 534
332 Fabricated Metal Mfg Products 3,789
333 Machinery Manufacturing 5,586
334' Computer Electronic Products 19,797
335 Electric Equipment Appliances 137
336 Transportation Equipment Mfg 135,430
337' Fumiture Related Products 8,575
339' Miscellaneous Manufacturing 10,665
TOTAL MANUFACTURING 305,059
Overall Manufacturing Change from Previous Year
TRANSPORTATION WAREHOUSING 09 TOTAL
481 Air Transportation 0
482 Rail Transportation 924
484 Truck Transportation 3,294
485 Transit and Ground Passengers 11,105
488 Transportation Support 21,879
491 Postal Services 0
492 Couriers Messengers 149
I 493' Warehousing Storage 1,051
TOTAL TRANSP WHSING 38,401
Overall Transportation Change from Previous Year
WHOLESALE TRADE
423' WhIs Trade Durable Goods
424' WhIs Trade Nondurable Goods
425' Wholesale Electronic Markets
Sales Tax Mitigation NAICS Codes
03/30/2010
09 TOTAL
1,339,565
105,260
2,208
WHOLESALE TRADE TOTAL 1,447,033
Overall Wholesale Change from Previous Year
SALES TAX SUMMARY
January 2010 (Received in March)
YTD
09 YTD 10 YTD Diff
83,683 34,407 -58.9%
1,124 666 -40.8%
30,959 12,255 -60.4%
115,765 47,328
($68,437) -59.1%
YTD
09 YTD 10 YTD Diff
354 65 -81.5%
161 -4,585 2940.3%
2 0 100.0%
502 991 97.5%
30 0 -98.4%
0 0 #DIV /O!
619 45 -92.7%
1,661 1,576 -5.1%
6,137 4,151 -32.4%
510 505 -1.0%
354 367 3.7%
137 51 -62.8%
418 409 -2.1%
0 15 #DIV/0!
80 608 659.9%
271 156 -42.6%
47 114 144.5%
13 35 174.1%
10,248 4,841 -52.8%
551 555 0.6%
1,147 1,128 -1.6%
23,241 11,028
($12,214)
-52.6%
YTD
09 YTD 10 YTD Diff
0 0 0.0%
134 26 -80.6%
129 5 -96.2%
557 835 50.0%
1,873 1,152 -38.5%
0 0 #DIV /0!
20 29 45.1%
70 74 5.0% I
2,783 2,120
($662) -23.8%
YTD
09 YTD 10 YTD Diff
156,793 156,125 -0.4%
9,568 7,082 -26.0%
165 93 -43.3%
166,526 163,300
($3,226) -1.9%
NAICS AUTOMOTIVE 09 TOTAL
441* Motor Vehicle Pads Dealer 686,478
447' Gasoline Stations 62,584
TOTAL AUTOMOTIVE 749,063
Overall Automotive Change from Previous Year
NAICS
442'
443*
444*
445*
446*
448"
451"
452'
453*
454*
RETAIL TRADE
Furniture Home Furnishings
Electronics &Appliances
Building Material Garden
Food Beverage Stores
Health Personal Care
Clothing Accessories
Sporting Goods, Hobby, Books
General Merchandise Stores
Miscellaneous Store Retailers
Nonstore Retailers
TOTAL RETAIL TRADE
09 TOTAL
350,625
954,375
506,177
86,349
189,603
2,015,184
589,522
2,044,042
506,005
209,564
7,451,446
Overall General Retail Change from Previous Year
09 TOTAL
51X 528,044
52X 53,850
53X 412,907
541 227,255
551 985
56X 123,115
611 47,324
62X 91,637
71X 93,799
72X' 1,745,512
81X 183,887
92X 32,268
3,540,583
Overall Services Change from Previous Year
MISCELLANEOUS 09 TOTAL
000 Unknown 397
111 -115 Agriculture, Forestry, Fishing 221
211 -221 Mining Utilities 14,549
999 Unclassifiable Establishments 12,331
MISCELLANEOUS TOTAL 27,499
Overall Miscellaneous Change from Previous Year
Page 1
SERVICES
Information
Finance Insurance
Real Estate, Rental, Leasing
Professional, Scientific, Tech
Company Management
Admin, Supp, Remed Svcs
Educational Services
Health Care Social Assistance
Arts Entertainment
Accommodation Food Svcs
Other Services
Public Administration
TOTAL SERVICES
09 TOTAL
GRAND TOTALS $14,422,090
Grand Total Change from Previous Year
YTD
09YTD 10YTD %Diff
72,948 49,738 -31.8% I
4,542 4,986 9.8% 1
77,490 54,724
($22,766) -29.4%
09 YTD 10 YTD Diff
30,630 28,130 -8.2% I
78,402 68,754 -12.3%
34,636 35,582 2.7%
6,107 6,326 3.6%
11,200 13,653 21.9%
122,233 120,791 -1.2%
43,963 40,760 -7.3% I
136,403 128,004 -6.2% 1
48,794 35,174 -27.9% 1
6,408 7,234 12.9% 1
518,776 484,407
($34,368) -6.6%
YTD
09 YTD 10 YTD Diff
34,933 41,929 20.0%
2,267 1,941 -14.3%
27,649 23,116 -16.4%
16,343 16,116 -1.4%
14 11 -17.8%
15,876 8,440 -46.8%
1,431 4,305 200.9%
9,299 3,242 -65.1%
-556 6,757 -1315.6%
142,349 147,177 3.4%
14,214 14,449 1.7%
321 2,133 564.0%
264,140 269,616
$5,477 2.1%
YTD
09 YTD 10 YTD Diff
397 0 100.0%
0 15 #DIV /0!
524 436 -16.9%
2,446 2,665 8.9%
3,367 3,115
(6252) -7.5%
YTD
09 YTD 10 YTD Dlff
51,172,088 $1,035,639
($136,449) 11.64%
Toe Sales Tax Rp1 201001xism
Five Year Comparison
Taxes Collected Year to Date