HomeMy WebLinkAboutReg 2014-10-06 Item 5.03 - 2015-2016 Biennial Budget - Budget Summary2015 - 2016 Biennial Budget City of Tukwila, Washington
BUDGET SUMMARY
This section summarizes the 2015 -2016 biennial budget and provides comparisons to previous years'
revenues and expenditures. The section begins with an overview of the City's general fiscal
environment followed by a discussion the budget development process, then a financial summary of
budget data of revenues and expenditures for all funds combined. The reader is encouraged to refer to
other sections of the budget for more details.
GENERAL FISCAL ENVIRONMENT
Effective budget and financial policies are developed gradually over a period of time in response to
long -term fiscal and social- economic conditions. Accordingly, although this document responds to the
City's financial policies, framework has been developed in response to multi -year fiscal pressures.
Tukwila's economy generally follows the economic cycles of the surrounding region. However, the
economic down periods in the cycles have generally been less severe for Tukwila than for other
municipalities in the region due to the relatively stable nature of Tukwila's economy. While the last
economic downturn has been a challenge for Tukwila, the City's financial position is improving and
reserve levels exceed policy requirements.
Gradual, but continual improvement in Tukwila's economy is expected into the biennium.
Construction activity on Tukwila International Boulevard associated with the build out of the Tukwila
Village complex and with the redevelopment of the urban renewal area is expected to boost
construction related revenues including sales tax, permit fees and utility taxes with an acceleration of
activity expected in 2016. Additionally, 500 acres of land ripe for development lies within the Tukwila
South section of the urban center. A 19 story apartment -hotel complex, Washington Place, is planned
for the urban area; the first residential structure in the area. The City is optimistic about this project but
has not included it in our revenue assumptions in order to maintain a conservative approach.
Economic cycles are not the only determinants of revenues for municipal budgeting. Even with an
improving economy, laws that determine who pays taxes and how much they pay can also have a
major impact. The Washington State Legislature adopted several pieces of legislation which have
limited the ability of local governments to increase revenues and future taxing ability. Although
Tukwila's economy has stabilized, these revenue limitations have negatively impacted Tukwila's
largest revenue streams. Revenue is growing slowly while demand for services continues to increase at
a faster pace than revenues. This trend will continue to have a substantial impact on Tukwila's budget.
Challenges for the future remain. Federal, state and county governments continue to devolve services
down to cities and there is no evidence the trajectory will slow or change anytime soon. Agencies are
no longer the partners they once were in funding critical infrastructure projects. Over the past 7 years
the City has leveraged hundreds of millions in federal and state dollars to accomplish road and other
projects, but these dollars are becoming scarcer. There is concern about the upcoming state legislative
session and the possibility of additional state shared revenues going away, which would further
burden cities across the state. Additionally, health care costs continue to go up. Like every other city
and all 39 counties in the state, revenues continue to be constrained by the 1% property tax cap
imposed by the state legislature. At some point, without a fundamental change, expenses will outstrip
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2015 - 2016 Biennial Budget City of Tukwila, Washington
revenues and the City will be faced with very difficult choices. This budget has kept this reality in
mind and is crafted to ensure the City remains in the best fiscal health possible.
BUDGET DEVELOPMENT
The 2015 -2016 biennial budget is fiscally prudent with no expected drawdowns to our general fund
balance or the contingency reserves. In fact, our contingency reserve goal was reached in 2013, one
year ahead of schedule. This budget includes no new taxes. As bonds mature, the budget uses a small
portion of the City's considerable bonding capacity to tackle the identified key priorities of sidewalks,
curbs, gutters and undergrounding and capitalizes on a new favorable agreement with Seattle City
Light that has them covering 60% of the cost of undergrounding on 42nd Avenue South and 53rd
Avenue South.
This budget season was different. This is the first budget developed since the adoption of the City's
Strategic Plan which occurred in December 2012. The budget focuses on City priorities; priorities that
align with the City's strategic goals. The 2015 -2016 priorities were identified through a collaborative
process between the Council and the Administration and with input from the business and residential
communities. In October of 2013, a joint Council /Administration workshop was held to discuss
budget priorities; the Administration did some refinements in December and the Council made
additional refinements at their retreat in January. In February, a Business Vitality Forum was held and
in March, a Community Budget Forum. A Budget Survey was also conducted to learn more about
community opinions and priorities. Together the budget priorities were finalized and the Council
approved them in June of this year. The budget presented is the result of this work and adheres to both
the priorities and the adopted strategic plan.
The six priorities identified are:
1. Tukwila International Boulevard Community Transformation
2. Community Livability
3. Create Community Partners to Implement City -wide Plans and Visions
4. Develop /Implement Comprehensive Economic Development Plan
5. Continue to create a more effective organization
6. Improved communications and community identity
Once the priorities were identified, the Administration solicited new ideas from staff. The staff
proposals were evaluated and vetted based on these priorities and six were selected for funding as
2015 -16 initiatives. The budget responds to the priorities both through the new initiatives and through
continued work on initiatives already underway to help the City meet the Strategic plan goals, as
shown below.
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2015 - 2016 Biennial Budget City of Tukwila, Washington
Priority 1 - Tukwila International Boulevard Community Transformation
• Tukwila International Boulevard motel seizure & property redevelopment
• Neighborhood Resource Center
• 8 additional police personnel hired since 2012
• 1 additional police sergeant hired for the Auto Theft Task Force
• Trash clean up on Tukwila International Boulevard
• Tukwila Village development
• 2015 -16 Initiative - Enhanced Code Enforcement
❖ 2015 -16 Initiative - Economic Development Plan
Priority 2 - Community Livability
• 2014 Code Enforcement enhancement
• Park & Recreation Open Space (PROS) plan complete
• Comprehensive Plan update
• Complaint tracking through new Trakit permitting system
❖ 2015 -16 Initiative - Enhanced Code Enforcement
Priority 3 - Community Partners to Implement City -wide Plans and Visions
• Expanded collaboration with Tukwila School District
• Outreach to community through Community Connectors
• Increased City participation at school and community functions
• Recreation department collaboration with Tukwila School District and YMCA to offer
after school enrichment programs to elementary school students.
Priority 4 - Develop/Implement Comprehensive Economic Development Plan
• Reorganization of Economic Development division
• Economic element of Comprehensive Plan
❖ 2015 -16 Initiative - Economic Development Plan
Priority 5 - Continue to create a more effective organization
• High Performing Organization, Cultural Competency and Lean City -wide training
• Process improvement study conducted by State Auditor
• Process improvement study conducted by outside consultant
❖ 2015 -16 Initiative - Mandated public defender funding
❖ 2015 -16 Initiative - Public records request assistance
❖ 2015 -16 Initiative - Fire safety equipment
Priority 6 - Improved communications and Community identity.
• Establishment of communications division; staffing of 3
• 1% of CIP projects dedicated to art
❖ 2015 -16 Initiative - City identity /communication strategy
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2015 - 2016 Biennial Budget
City of Tukwila, Washington
The proposal vetting process culminated in a clear ranking of three proposals, which became known as
the Tier 1 Initiatives, and a four -way tie for 4 others, which are referred to as Tier 2 Initiatives. A table
describing the initiatives and the additional budget appropriated for them in the 2015 -2016 budget
follows:
PRIORITY BASED INITIATIVES
Additional budget
— In Thousand $
Description
2015
1 2016
Legally Mandated
Public Defender caseload limitation
$275
$275
In Mayor's budget as professional services
Tier One
Code enforcement
$87
$87
In Community Development budget as
professional services
Public Records request assistant
$90
$90
In Mayor /Attorney budget as professional
services
Fire equipment
$137
$0
In Fire budget as supplies: Airpack cylinders,
thermal imaging cameras, defibrillators
Tier Two
City identity / communication
strategy
$80
$40
In Communications budget as professional
services
Economic Development plan
$60
$0
In Economic Development budget as
professional services
_
Recreation after school program
$0
$0
Accomplished with existing budget through
partnership with Tukwila School District and
YMCA
Police Recruitment coordinator
$0
$0
Accomplished with existing budget through
process improvements
Legally Mandated Initiative
One initiative made the list, not based on Administration selection, but because it is legally mandated.
Based on a Supreme Court case that becomes effective January 1, 2015, public defender caseloads will
be limited to 400 per year driving up the cost of providing public defender services. The budget
responds to this new requirement.
Tier One Initiatives
Code enforcement - Resources are added to the code enforcement function to assist in the continual
effort to improve the image of Tukwila International Boulevard and residential neighborhoods.
Public records request assistant - The additional resources will allow placement of the review and
redaction of the majority of the City's public records in the hands of a dedicated public records
specialist freeing up the City's Attorney to work on legal issues.
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2015 - 2016 Biennial Budget City of Tukwila, Washington
Fire equipment -The proposal funds the replacement of critical equipment such as defibrillators,
thermal imaging cameras - used in low to zero light and visibility conditions - and airpacks.
Tier Two Initiatives
City identity /communication strategy - The City identity /communication strategy initiative would
provide banners for Tukwila International Boulevard and elsewhere, gateway signs, fund other
communication initiatives such as website design and update, and cable TV.
Economic Development Plan - The Plan would create a roadmap of goals and strategies for the City's
continued and sustained economic growth and development.
Recreation after school programs - The City leveraged its partnership with the Tukwila School District
and YMCA to develop after school programing that meets the needs of the elementary school children.
Under this arrangement, no additional budget was required. This initiative is an alternative to the full
scale proposal originally submitted.
Police recruitment coordinator - By adjusting priorities and process, additional resources are not
considered necessary at this time. Although police recruitment remains a high priority of the City,
through a big push in 2014 to hire up all the open and pipeline positions, the need to recruit is expected
to subside.
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2015 - 2016 Biennial Budget City of Tukwila, Washington
FINANCIAL SUMMARY
The 2015 -16 budget reflects a City -wide net expenditure of $5.5 million in 2015 and $3 million in 2016
or $8.5 million over the biennium. No drawdown of the general fund or the contingency reserve is
expected in the biennium, the result of an emphasis on maintaining structural balance for continued
financial stability and sustainability. Debt financing is contemplated for three important capital
projects - the 42nd Avenue South road improvement including sidewalks and undergrounding of
utilities; the Interurban Avenue South improvement and the Boeing Access Road bridge retrofitting for
increased public safety. Use of the City's considerable debt capacity is considered fiscally prudent
especially as existing bonds mature and debt service on the retiring bonds can be replaced with debt
service on the new bonding. In this biennial budget, the City's debt service level remains below 6% of
ongoing general fund revenues which is 2% lower than the 8% rule of thumb often used as a guideline
for affordability. In addition to debt - financed capital projects, cash investments are planned for
maintenance of capital assets including roads and bridges and for improvements to the residential
street, 53rd Avenue South, which includes sidewalks and undergrounding of utilities.
The budget also includes investment in the utility funds. A water fund drawdown of over $3.8 million
will allow investment in the Andover Park East water main replacement project among other projects.
A sewer fund drawdown of over $1.7 million will allow investment the Central Business District sewer
system upgrade and other projects. Investments in the Duwamish River waterway for fish habitat and
other environmental interests and other surface water management projects are included for the
surface water fund.
The City -wide picture also includes a re- balancing of the healthcare funds. As a result of an
overfunding situation, the fund balance in both the employee and the Leoff 1 retiree healthcare plans
has been lowered through lower premium charges in the last biennium. This budget includes
premium increases for both plans based on actuarial projections and the City's Reserve Policy. The
employee plan structure will be evaluated for cost savings opportunities and to avoid the Patient
Protection and Affordability Care Act (PPACA) 40% excise tax, the "Cadillac tax ", which goes into
effect in 2018; the retiree plan will be evaluated to ensure medicare coverage and other cost saving
options are fully utilized.
Budget Summary Schedules - Fund Groupings. The funds have been grouped according to their
function within the City. The contingency reserve is displayed with the general fund since the sole
funding source is the general fund (with the exception of investment earnings) and no external
restrictions have been placed on it. As a side note, for purposes of financial reporting the general fund
and contingency reserve are combined in the Comprehensive Annual Financial Report (CAFR) as well.
The residential street fund and the arterial street fund have been grouped with the capital project funds
since their main activity is capital improvements. The Local Improvement District (LID) fund and
associated guaranty fund are shown separately from the general obligation debt; the LID debt is
secured by the property assessed in the district and is not considered a direct obligation of the City.
The estimated beginning fund balances, revenues, expenditures and ending fund balances for each of
the funds and fund groups is shown below for both 2015 and 2016. The governmental funds included
in the Financial Planning Model Attachment A are identified with an asterisk. They exclude the Special
Revenue funds which are self- supporting and the allowable activities are very specific and restricted.
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2015 - 2016 Biennial Budget
City of Tukwila, Washington
2015 BUDGET SUMMARY - ALL FUNDS
Fund
2015
Beginning
Fund Balance
2015
Resources
2015
Expenditures
2015
Change in
Fund Balance
2015
Ending
Fund
GENERAL &
CONTIN-
GENCY
Fund 000 - General
$ 9,500,000
$ 56,731,999
$ 56,528,833
$ 203,167
$ 9,703,167
Fund 105 - Contingency
5,700,000
1,816
-
1,816
5,701,816
Total General & Contingency
15,200,000
56,733,815
56,528,833
204,983
15,404,983
SPECIAL
REVENUE
Fund 101- Hotel /Motel Tax
500,000
1,467,316
1,577,642
(110,326)
389,674
Fund 109 - Drug Seizure
60,000
60,000
55,000
5,000
65,000
Total Special Revenue Funds
560,000
1,527,316
1,632,642
(105,326)
454,674
DEBT SVC
Funds 2 * * -LTGO Debt Service Funds
5,000
3,259,059
3,259,059
-
5,000
Fund 206 - Guaranty
668,000
500
-
500
668,500
Fund 233 - Local Imp. Dist. Bonds, 2013
805,000
810,140
794,284
15,856
820,856
Local Imp. Dist #33, Guaranty Funds
1,473,000
810,640
794,284
16,356
1,489,356
CAPITAL PROJECTS
Fund 103 - Residential Streets
1,400,000
524,842
1,868,000
(1,343,158)
56,842
Fund 104 - Bridges & Arterial Streets
600,000
21,302,000
21,557,511
(255,511)
344,489
Fund 301- Land Acq, Rec, Park Develop
1,100,000
2,491,000
3,273,000
(782,000)
318,000
Fund 302 - Facility Replacement
1,800,000
4,453,602
4,380,000
73,602
1,873,602
Fund 303 - General Government Imp
500,000
200,500
320,550
(120,050)
379,950
Fund 304 - Fire Improvements
450,000
50,100
-
50,100
500,100
Total Capital Projects Funds
5,850,000
29,022,044
31,399,061
(2,377,016)
3,472,984
ENTERPRISE
Fund 401- Water
6,500,000
5,829,000
7,448,185
(1,619,185)
4,880,815
Fund 402 - Sewer
3,400,000
8,262,000
8,636,400
(374,400)
3,025,600
Fund 411- Foster Golf Course
600,000
1,769,747
1,768,017
1,730
601,730
Fund 412 - Surface Water
2,200,000
11,261,000
11,070,311
190,689
2,390,689
Total Enterprise Funds
12,700,000
27,121,747
28,922,912
(1,801,165)
10,898,835
INTERNAL
SERVICE
Fund 501- Equip Rental & Replacement
4,500,000
3,613,043
3,555,343
57,700
4,557,700
Fund 502 - Self- Insured Healthcare Plan
3,500,000
5,186,929
6,342,002
(1,155,073)
2,344,927
Fund 503 - LEOFF I Self -Ins Health Plan
500,000
703,851
948,819
(244,968)
255,032
Total Internal Service Funds
8,500,000
9,503,823
10,846,164
(1,342,341)
7,157,659
Q :,5,
Fund 611- Firemen's Pension
1,500,000
58,650
132,727
(74,077)
1,425,923
TOTAL BUDGET
$ 45,788,000
$128,037,095
$ 133,515,682
$ (5,478,587)
$ 40,309,413
** Included in Financial Planning Model, Attachment A
$ 18,882,966
**
**
**
**
**
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2015 - 2016 Biennial Budget
City of Tukwila, Washington
Budgeted Revenues by Fund - 2015
Internal Service Funds 7.62%
Enterprise Funds 21.74%
Fiduciary Funds 0.05%
Capital Projects 23.26%
Debt
rvice 0.65%
General Fund 45.47%
Special Revenue Funds 1.22%
General Fund
Special Revenue Funds
Debt Service
Capital Projects
Enterprise Funds
Internal Service Funds
Fiduciary Funds
Budgeted Expenditures by Fund - 2015
Internal Service Funds 8.33%
Enterprise Funds 22.20%
Fiduciary Funds 0.10%
General Fund 43.40%
Capital Projects 24.11%
Debt Service 0.6
Special Revenue Funds 1.25%
General Fund
Special Revenue Funds
Debt Service
Capital Projects
Enterprise Funds
Internal Service Funds
Fiduciary Funds
30
2015 - 2016 Biennial Budget
City of Tukwila, Washington
2016 BUDGET SUMMARY - ALL FUNDS
Fund
2016
Beginning
Fund Balance
2016
Resources
2016
Expenditures
2016
Change in
Fund Balance
2016
Ending
Fund
GENERAL &
CONTIN-
GENCY
Fund 000 - General
$ 9,703,167
$ 59,585,779
$ 59,761,699
$ (175,920)
$ 9,527,247
Fund 105 - Contingency
5,701,816
1,816
-
1,816
5,703,632
Total General & Contingency
15,404,983
59,587,595
59,761,699
(174,104)
15,230,879
SPECIAL
REVENUE
Fund 101 - Hotel/Motel Tax
389,674
630,000
427,500
202,500
592,174
Fund 109 - Drug Seizure
65,000
60,000
45,000
15,000
80,000
Total Special Revenue Funds
454,674
690,000
472,500
217,500
672,174
DEBT SVC
Funds 2 * * -LTGO Debt Service Funds
5,000
3,364,649
3,364,649
-
5,000
Fund 206 - Guaranty
668,500
500
-
500
669,000
Fund 233 - Local Imp. Dist. Bonds, 2013
820,856
785,673
736,005
49,668
870,524
Local Imp. Dist #33, Guaranty Funds
1,489,356
786,173
736,005
50,168
1,539,524
CAPITAL PROJECTS
Fund 103 - Residential Streets
56,842
9,156,878
8,823,000
333,878
390,721
Fund 104 - Bridges & Arterial Streets
344,489
14,004,080
14,200,217
(196,137)
148,353
Fund 301- Land Acq, Rec, Park Develop
318,000
311,000
292,000
19,000
337,000
Fund 302 - Facility Replacement
1,873,602
4,328,602
4,415,000
(86,398)
1,787,204
Fund 303 - General Government Imp
379,950
200,500
330,641
(130,141)
249,809
Fund 304 - Fire Improvements
500,100
50,100
-
50,100
550,200
Total Capital Projects Funds
3,472,984
28,051,160
28,060,857
(9,697)
3,463,287
ENTERPRISE
Fund 401- Water
4,880,815
6,093,000
8,298,949
(2,205,949)
2,674,866
Fund 402 - Sewer
3,025,600
8,324,000
9,796,006
(1,472,006)
1,553,594
Fund 411- Foster Golf Course
601,730
1,811,747
1,812,394
(647)
601,083
Fund 412 - Surface Water
2,390,689
6,968,000
6,591,228
376,772
2,767,461
Total Enterprise Funds
10,898,835
23,196,747
26,498,578
(3,301,831)
7,597,004
INTERNAL
SERVICE
Fund 501- Equip Rental & Replacement
4,557,700
3,454,093
2,409,952
1,044,141
5,601,841
Fund 502 - Self- Insured Healthcare Plan
2,344,927
5,594,029
6,344,241
(750,212)
1,594,715
Fund 503 - LEOFF I Self -Ins Health Plan
255,032
568,340
617,391
(49,051)
205,981
Total Internal Service Funds
7,157,659
9,616,462
9,371,584
244,878
7,402,537
Q d
Fund 611- Firemen's Pension
1,425,923
58,650
132,727
(74,077)
1,351,846
TOTAL BUDGET
$ 40,309,413
$ 125,351,436
$128,398,599
$ (3,047,163)
$ 37,262,250
** Included in Financial Planning Model, Attachment A
$ 18,699,165
**
**
**
**
**
**
**
**
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2015 - 2016 Biennial Budget
City of Tukwila, Washington
Budgeted Revenues by Fund - 2016
Internal Service Funds 7.88%
Enterprise Funds 19.02%
1
Fiduciary Funds 0.05%
Capital Projects 23.00%
Debt Service 0.64%
Special Revenue Funds 0.57%
General Fund 48.85%
General Fund
Special Revenue Funds
Debt Service
Capital Projects
Enterprise Funds
Internal Service Funds
Fiduciary Funds
Budgeted Expenses by Fund - 2016
Internal Service Funds 7.50%
Enterprise Funds 21.19%
Fiduciary Funds 0.11%
General Fund 47.80%
Capital P
Debt Service 0.59 °°
Special Revenue Funds 0.38%
General Fund
Special Revenue Funds
Debt Service
Capital Projects
Enterprise Funds
Internal Service Funds
Fiduciary Funds
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2015 - 2016 Biennial Budget City of Tukwila, Washington
REVENUE - ALL FUNDS
The 2014 budget has not been adjusted to reflect 2014 estimated actual revenues. For some revenue
items, this results in an understatement of the 2014 budget and an overstatement of the increase in the
2015 budget. To get a more accurate picture of the revenue change, the average increase from 2013
actual revenues to the 2015 budgeted revenues should be considered. Also, it should be noted that the
revenue totals for all funds include a gross up, and sometimes duplication, of amounts transferred
between funds (transfers -in and transfers -out); the internal transactions are shown both in the
originating fund and the recipient fund.
The total revenue and transfers budgeted is $128 million for 2015 and $125 million for 2016. This is an
.8% reduction in growth in 2015 over the 2014 budgeted revenue. Revenue declines in 2015 because of a
reduction in transfers -in; the 2014 budget included Local Improvement Fund transfers among the LID
fund, the arterial street fund and the general fund. The 2015 budget includes transfers of Tukwila
Village land sale proceeds from the Facility Fund 302 to the general fund.
In addition to this decline in transfers in, other revenue changes include an increase in other
intergovernmental revenue for the $6 million that may be received from King County Conservation
Futures and King County Mitigation Bank for the Chinook Wind salmon habitat restoration land
purchase; a reduction in property sales due to the inclusion of $4.3 million of Tukwila Village land sale
revenue in the 2014 budget -- the land sale proceeds are now expected to be received over a three year
period from 2014 - 2016; increase in employer trust contributions reflecting the premium increase for
the healthcare plans; interfund utility tax increases reflecting the budgeted rate increases in the City's
utility funds; increase in gambling taxes from the ramp up in gambling activity at the casino added in
2012 and increased activity at the other establishments; increase in permitting and plan check fees
reflecting the expectation of an active construction season.
The 2016 revenue projection is 2.1% less than the 2015 projected amount. Grant revenue declines as
capital projects are completed; bond proceeds decline as financing is obtained for capital projects. The
$8.3 million bond proceeds budgeted for 2015 are comprised of $3.1 million Interurban Avenue South,
$2.5 million Boeing Access Road bridge, $2.25 million line of credit financing for urban renewal and
$455 thousand for the sewer fund public works trust fund loan. The 2016 bond proceeds help fund the
42nd Avenue South residential street project. Property sales in 2016 include an estimate for the
Longacres property, the third payment phase on the Tukwila Village land sale and the urban renewal
property sale and sale of surplus fleet equipment.
Revenue projections for ongoing sources are conservative estimates based on local economic factors as
well as historical data. Sales and use tax is the City's largest revenue source. Sales & use tax revenue is
projected to increase to $17 million in 2015 which represents an average annual increase over 2013
actual revenues of 1.6 %. The 2016 increase is projected at 3.5% and is predicated on the anticipated
construction activity on Tukwila International Boulevard and elsewhere in the City. Projections for
sales and use tax revenue are based on historical trends as well as selected economic indicators
including changes in unemployment, disposable income, and anticipated construction of major
projects.
Property tax, which is the second largest revenue source, is used for general governmental operations
and is limited to the lesser of 1% or inflation. Property tax growth resulting from new construction,
33
2015 - 2016 Biennial Budget City of Tukwila, Washington
changes in value of state - assessed utility property, and newly annexed property are exempted from the
limit factor and may be added to the tax value. The City anticipates that property tax revenue will be
at $14.4 million in 2015, an average annual increase of 2.3% over 2013 actual taxes and at $14.8 million
in 2016, an increase of 2.7 %. The additional property tax in 2016 is expected from new construction.
Cities and towns in Washington State are authorized to levy a tax on public utility businesses based on
revenues they generate within the city or town, known as a utility tax. The city currently levies a 6%
tax on electricity, natural gas, cable, telephone, and solid waste /recycling. Utility tax revenue is
projected to be $4 million in 2015 and $4.1 in 2016. Telephone utility tax has been declining in recent
years. Taxes appear to have stabilized and a slight increase is expected in the biennium.
The City also receives revenue from other sources to pay for providing general government services.
These revenue sources include other taxes (admissions, excise, hotel /motel), fees and charges, interest
earnings, and grants.
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2015 - 2016 Biennial Budget
City of Tukwila, Washington
Revenue - All Funds
Revenues
2012
Actual
2013
Actual
2014
Budget
2015
Budget
2016
Budget
Percentage Change
2013 2014 2015
2016
Property Taxes
$ 14,072,015
$ 13,790,658
$ 14,321,617
$ 14,435,171
$ 14,819,046
-2.0%
3.9%
0.8%
2.7%
Sales and Use Taxes
15,673,891
16,520,856
15,679,917
17,033,731
17,631,462
5.4%
-5.1%
8.6%
3.5%
RGRL Tax
1,755,618
1,724,557
1,767,500
1,820,525
1,875,141
-1.8%
2.5%
3.0%
3.0%
Parking /Admissions Tax
736,478
845,500
763,000
858,000
877,160
14.8%
-9.8%
12.5%
2.2%
Utility Taxes
4,001,385
3,879,992
4,154,592
4,024,592
4,105,084
-3.0%
7.1%
-3.1%
2.0%
Interfund Utility Tax
1,534,581
1,686,859
1,585,500
1,855,900
1,981,000
9.9%
-6.0%
17.1%
6.7%
Gambling, Excise Taxes
3,210,139
2,749,999
2,469,958
2,940,641
3,007,301
-14.3%
-10.2%
19.1%
2.3%
Hotel /Motel Tax
522,033
526,832
565,000
600,000
630,000
0.9%
7.2%
6.2%
5.0%
Total Taxes
41,506,139
41,725,252
41,307,084
43,568,561
44,926,194
0.5%
-1.0%
5.5%
3.1%
Business Licenses and Permits
716,459
790,947
780,089
826,089
846,691
10.4%
-1.4%
5.9%
2.5%
Building Permits and Fees
888,135
1,222,929
1,166,100
1,279,000
1,318,970
37.7%
-4.6%
9.7%
3.1%
Total Licenses & Permits
1,604,594
2,013,875
1,946,189
2,105,089
2,165,661
25.5%
-3.4%
8.2%
2.9%
Sales Tax Mitigation
1,127,394
1,122,631
1,200,000
1,140,000
1,140,000
-0.4%
6.9%
-5.0%
0.0%
Seattle City Light franchise fee
2,147,366
2,084,039
2,250,471
2,211,910
2,267,208
-2.9%
8.0%
-1.7%
2.5%
Other State shared revenues
379,186
342,560
329,860
370,860
381,594
-9.7%
-3.7%
12.4%
2.9%
Federal and State Grants
1,540,232
2,180,191
18,279,705
14,505,142
12,655,822
41.5%
738.4%
-20.6%
-12.7%
Other intergovernmental
3,596,862
2,425,959
3,458,043
8,714,087
1,668,811
-32.6%
42.5%
1.52.0%
-80.8%
Total Intergovernmental
8,791,040
8,155,380
25,518,079
26,941,999
18,113,435
-7.2%
212.9%
5.6%
- 32.8%
General Government
183,769
278,790
202,430
202,913
207,913
51.7%
-27.4%
0.2%
2.5%
Security
543,486
399,817
555,725
554,725
559,225
-26.4%
39.0%
-0.2%
0.8%
Transportation
2,529,546
2,635,301
2,549,242
3,264,983
3,106,033
4.2%
-3.3%
28.1%
-4.9%
Plan Check and Review Fees
1,486,367
1,124,384
793,500
1,051,500
991,210
-24.4%
-29.4%
32.5%
-5.7%
Culture and Rec Fees
1,443,496
1,413,584
1,590,265
1,499,710
1,540,906
-2.1%
12.5%
-5.7%
2.7%
Utilities & Environment
15,325,990
17,006,817
15,841,309
18,554,000
19,800,000
11.0%
-6.9%
17.1%
6.7%
Total Charges for Services
21,512,654
22,858,693
21,532,471
25,127,831
26,205,287
6.3%
-5.8°/o
16.7%
4.3%
Total Fines and Penalties
220,752
242,638
234,829
242,829
242,829
9.9%
-3.2%
3.4%
0.0%
Investment Earnings
542,475
197,385
549,313
645,317
629,763
- 63.6%
178.3%
17.5%
-2.4%
Rents and Concessions
630,935
709,948
682,500
645,839
654,479
12.5%
-3.9%
-5.4%
1.3%
Contributions /Donations
316,072
274,901
1,045,100
1,420,955
2,857,100
-13.0%
280.2%
36.0%
101.1%
Employer Trust Contributions
4,796,490
4,375,649
4,483,192
5,715,582
5,981,244
-8.8%
2.5%
27.5%
4.6%
Special assessments
-
2,788,350
631,300
474,447
474,447
0.0%
-77.4%
-24.8%
0.0%
Other Financing
363,869
338,522
226,518
237,581
231,508
-7.0%
-33.1%
4.9%
-2.6%
Total Miscellaneous
6,649,841
8,684,755
7,617,923
9,139,721
10,828,541
30.6%
- 12.3%
20.0%
18.5%
Transfers In
5,618,587
22,105,277
12,847,050
7,159,846
9,228,791
293.4%
-41.9%
-44.3%
28.9%
Debt proceeds
-
7,687,500
11,004,457
8,305,000
4,400,000
0.0%
43.1%
-24.5%
-47.0%
Property sales
69,621
65,869
4,797,791
2,842,791
6,367,791
-5.4%
7183.8%
-40.7%
124.0%
Indirect Cost Allocation
2,330,665
2,035,687
2,085,208
2,255,320
2,233,476
-12.7%
2.4%
8.2%
-1.0%
Other Financing
135,603
874,825
170,000
348,108
639,430
545.1%
-80.6%
104.8%
83.7%
Other Financing
8,154,477
32,769,158
30,904,506
20,911,065
22,869,488
301.9%
-5.7%
-32.3%
9.4%
Total Revenues
$ 88,439,498
$ 116,449,751
$ 129,061,081
$ 128,037,095
$ 125,351,436
31.7%
10.8%
-0.8%
-2.1%
35
Revenue Budget by Type - 2016
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
$44,926,194
$2,16
$18,113,435 $26,205,287
$10,828,541 $9,228,791
Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Penalties
Miscellaneous
$242 $639,430 Transfers - I n
Other Financing
2015 - 2016 Biennial Budget
City of Tukwila, Washington
Revenue Budget by Type - 2015
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
$43,568,561
$2,105
$26,941,999
$25,127,831
$9,139,721
$242,82
$7,159,846
Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Penalties
Miscellaneous
Transfers - I n
348 108 Other Financing
36
2015 - 2016 Biennial Budget City of Tukwila, Washington
EXPENDITURES - ALL FUNDS
The expenditure totals for all funds include a gross up, and sometimes duplication, of amounts
transferred between funds, (the transfers -in and the transfers -out); the internal transactions are shown
both in the originating fund and the recipient fund.
The total expenditure and transfers out budgeted is $133 million for 2015 and $128 million for 2016.
This is an overall growth in 2015 of 2% over the 2014 budgeted expenditures. The 2016 expenditure
projection is 3.8% less than the 2015 projected amount due mainly to the timing of land purchases.
Land purchases of $9 million are budgeted in 2015 with $6 million of this designated for the Chinook
Winds salmon habitat restoration project along the Duwamish River. Transfers between funds are
shown as other expenditures and include transfers to the general fund for anticipated Tukwila Village
land sales of $2.2 million in 2015 and $2.075 million in 2017. Professional service costs decline in 2016
by 30 %; this is due to the timing and completion of engineering services on the major capital projects.
The budget continues to fund all existing positions and places an emphasis on public safety and
community livability. An additional police officer has been added for participation in the Auto Theft
Task Force and additional funding has been allocated to code enforcement activities. A part -time
planner position has been made full time. The CERT trainer position remains full -time even though the
grant funding that paid for half of the position is no longer available. Three additional staff have been
added to the surface water fund to manage the multiple projects and responsibilities. The Park &
Recreation department reorganized its staffing structure to better serve those who enjoy the parks, the
recreation programs and the golf course. The Communications and Economic Development divisions
are staffed up and well - positioned to meet the challenges required of these functions.
The City is self - insured for health costs. Premiums have been increased for both the active employees
and retiree plans based on actuarial projections and requirements of the City's reserve policy. Claim
experience has been high in 2014 for both plans. The Administration's expectation is that claim history
will normalize and cost saving opportunities will be identified and implemented through a plan
evaluation process.
As a result of the priority based initiative process, the purchase of essential fire equipment and
development of an economic plan have been budgeted for 2015. Increased funding for public defense,
code enforcement, public records requests and the communications /city identity initiative have been
included in both years.
The budget also includes funding for routine capital maintenance such as street overlay and bridge
inspections. The major capital projects include residential street improvements for 42nd Avenue South
and 53rd Avenue South; arterial street and bridge improvements for Interurban Avenue South and
Boeing Access Road bridge; water system upgrade for Andover Park East; sewer system rehabilitation
for the Central Business District and salmon habitat restoration and other environmental and surface
water management projects.
Departments continue to find operating efficiencies in an effort to lower costs for supplies and services.
Operations and maintenance costs are funded for same level of services except where noted in
individual department budgets. General cost increases include utility rate increases, equipment rental
operating and maintenance costs, insurance, and excise tax.
37
2015 - 2016 Biennial Budget
City of Tukwila, Washington
Expenditure Summary - All Funds (table is continued on following page)
Expenditures - All Funds
General Fund Expenditures
2012
Actual
2013
Actual
2014
Budget
2015
Budget
2016
Budget
Percentage Change
2013 2014 2015
2016
Salaries
$ 26,914,881
$ 27,651,583
$ 28,861,272
$ 28,950,340
$ 29,389,668
2.7%
4.4%
0.3%
1.5%
Extra Labor
518,442
638,621
719,645
708,158
700,857
23.2%
12.7%
-1.6%
-1.0%
Overtime
1,426,822
1,843,822
1,410,734
1,407,420
1,403,350
29.2%
-23.5%
-0.2%
-0.3%
Total Wages
28,860,145
30,134,027
30,991,651
31,065,918
31,493,875
4.4%
2.8%
0.2%
1.4%
Fica
1,712,912
1,801,601
1,769,212
1,782,436
1,807,371
5.2%
-1.8%
0.7%
1.4%
Leoff
751,374
806,007
686,745
757,242
773,632
7.3%
-14.8%
10.3%
2.2%
Pers
1,047,157
1,262,950
1,437,712
1,576,021
1,711,508
20.6%
13.8%
9.6%
8.6%
Industrial Insurance
393,464
472,054
542,808
715,957
784,771
20.0%
15.0%
31.9%
9.6%
Med,Dntl,Disability,Life
10,248,437
10,190,372
10,833,274
13,244,261
13,161,256
-0.6%
6.3%
22.3%
-0.6%
Unemployment
14,945
30,794
6,000
19,000
19,120
106.1%
-80.5%
216.7%
0.6%
Clothing Allowance
9,243
10,250
15,514
18,069
16,637
10.9%
51.4%
16.5%
-7.9%
Total Benefits
14,177,531
14,574,028
15,291,265
18,112,986
18,274,296
2.8%
4.9%
18.5%
0.9%
Office Supplies
364,128
488,045
436,002
432,934
411,974
34.0%
-10.7%
-0.7%
-4.8%
Small Tools & Minor Equip
192,027
263,416
269,404
429,804
295,114
37.2%
2.3%
59.5%
-31.3%
Recreation Frog Supplies
62,113
100,295
76,511
97,340
97,340
61.5%
-23.7%
27.2%
0.0%
Fire Supplies
147,594
179,562
155,977
176,977
141,977
21.7%
-13.1%
13.5%
-19.8%
Street Maint Supplies
243,403
184,571
278,300
259,300
259,300
-24.2%
50.8%
-6.8%
0.0%
Water /sewer /sewage treat.
5,814,322
5,780,704
6,069,175
6,385,000
6,410,000
-0.6%
5.0%
5.2%
0.4%
Resale items -fuel, other
801,044
775,712
773,428
834,428
836,028
-3.2%
-0.3%
7.9%
0.2%
Other
366,927
411,105
439,680
508,846
507,981
12.0%
7.0%
15.7%
-0.2%
Total Supplies
8,029,636
8,183,410
8,498,477
9,124,629
8,959,714
1.9%
3.9%
7.4%
-1.8%
Professional Services
7,251,660
5,098,805
11,838,173
11,350,476
7,927,467
-29.7%
132.2%
-4.1%
-30.2%
Communication
392,224
398,081
462,446
502,821
399,924
1.5%
16.2%
8.7%
-20.5%
Travel
114,865
114,585
144,315
176,778
156,293
-0.2%
25.9%
22.5%
-11.6%
Advertising
647,455
611,792
674,200
673,400
59,980
-5.5%
10.2%
-0.1%
-91.1%
Operating Rents & Leases
230,446
249,489
335,123
347,423
286,991
8.3%
34.3%
3.7%
-17.4%
Equipment Replacment
551,729
801,722
734,922
864,646
742,125
45.3%
-8.3%
17.7%
-14.2%
Equip Operations & Maint
1,433,094
1,300,470
1,175,572
1,561,933
1,586,874
-9.3%
-9.6%
32.9%
1.6%
Insurance
655,643
669,245
694,250
846,872
868,296
2.1%
3.7%
22.0%
2.5%
Utilities
1,590,826
1,684,875
1,786,040
1,947,454
2,040,705
5.9%
6.0%
9.0%
4.8%
Repairs and Maintenance
947,306
1,043,018
1,132,908
984,690
987,746
10.1%
8.6%
-13.1%
0.3%
Miscellaneous
643,806
979,871
1,038,282
1,130,989
1,079,258
52.2%
6.0%
8.9%
-4.6%
Claims & Judgements
440,285
519,959
370,000
450,000
450,000
18.1%
-28.8%
21.6%
0.0%
Credit Card Fees
23,192
21,901
26,799
33,299
33,299
-5.6%
22.4%
24.3%
0.0%
Other
407,125
605,209
588,648
748,103
683,716
48.7%
-2.7%
27.1%
-8.6%
Total Services
15,329,657
14,099,023
21,001,678
21,618,884
17,302,673
-8.0%
49.0%
2.9%
- 20.0%
SCORE Jail
881,125
965,288
1,071,000
1,233,000
1,294,650
9.6%
11.0%
15.1%
5.0%
Valley Communications
874,543
956,718
1,013,722
1,071,661
1,129,661
9.4%
6.0%
5.7%
5.4%
Animal Control
97,520
45,089
90,000
75,000
82,500
-53.8%
99.6%
-16.7%
10.0%
Excise tax
356,912
437,202
255,400
411,405
411,405
22.5%
-41.6%
61.1%
0.0%
Interfund utility taxes
1,593,849
1,745,000
1,654,000
1,915,900
2,041,000
9.5%
-5.2%
15.8%
6.5%
Other
70,489
106,377
88,400
97,900
97,900
50.9%
-16.9%
10.7%
0.0%
Total Intergovernmental
3,874,438
4,255,675
4,172,522
4,804,866
5,057,116
9.8%
-2.0%
15.2%
5.2%
38
2015 - 2016 Biennial Budget
City of Tukwila, Washington
Expenditures - All Funds (Continued)
General Fund Expenditures
2012
Actual
2013
Actual
2014
Budget
2015
Budget
2016
Budget
Percentage Change
2013 2014 2015
2016
Machinery and Equipment
755,510
2,703,038
1,216,181
1,883,000
648,000
257.8%
-55.0%
54.8%
-65.6%
Capital projects
7,218,140
2,396,405
26,913,000
23,155,001
27,936,001
-66.8%
1023.1%
-14.0%
20.6%
Land
1,888,688
687,228
2,500,000
9,000,000
-
-63.6%
263.8%
260.0%
0.0%
Total Capital
9,862,337
5,786,671
30,629,181
34,038,001
28,584,001
- 41.3%
429.30/0
11.1%
-16.0%
Principal
3,252,493
6,153,495
3,849,296
3,996,503
6,055,567
89.2%
-37.4%
3.8%
51.5%
Interest
1,590,942
1,460,238
1,309,789
1,338,730
1,209,090
-8.2%
-10.3%
2.2%
-9.7%
Total Debt Service
4,843,435
7,613,734
5,159,085
5,335,233
7,264,657
57.2%
- 32.2%
3.4%
36.2%
Loans to MPD
658,706
1,250,000
-
-
-
89.8%
0.0%
0.0%
0.0%
Transfers from GF:
Capital funds & other
2,847,592
2,363,919
2,757,400
2,200,000
3,851,000
-17.0%
16.6%
-20.2%
75.0%
Contingency fund
-
4,300,000
2,200,000
-
-
0.0%
-48.8%
0.0%
0.0%
Debt service funds
2,770,995
2,940,244
3,428,650
2,759,846
3,302,791
6.1%
16.6%
-19.5%
19.7%
Indirect cost allocation to GF
2,330,665
2,035,687
2,089,178
2,255,320
2,233,476
-12.7%
2.6%
8.0%
-1.0%
Transfers to GF:
-
8,500,000
4,355,000
2,200,000
2,075,000
0.0 %
-48.8 %
-49.5 %
-5.7%
Transfers among other funds
145,054
3,897,434
-
-
-
2586.9%
0.0%
0.0%
0.0%
Total Other Expenditures
8,753,012
25,287,284
14,830,228
9,415,166
11,462,266
188.9%
- 41.40/0
- 36.5%
21.7%
Total Expenditures
$ 93,730,191
$109,933,852
$130,574,087
$133,515,682
$128,398,599
17.3%
18.8%
2.30/0
-3.8%
2015 -2016 Expenditure Budget by Type
Transfers - Out
Debt Service
Capital Outlays
Intergovernmental
Other Services and Charges
Supplies
Salaries and Benefits
$- $5 $10 $15 $20 $25 $30 $35 $40
Millions
2016
2015
39
2015 - 2016 Biennial Budget
City of Tukwila, Washington
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40