HomeMy WebLinkAboutReg 2014-10-06 Item 5.14 - 2015-2016 Biennial Budget - Appendix2015 - 2016 Biennial Budget City of Tukwila, Washington
DEBT POLICY
City of Tukwila
Washitigton
Resolution No. i
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING A DEBT POLICY
AND PROVIDING FOR APPROPRIATE MANAGEMENT OF
DEBT ISSUED BY THE CITY OF TUKWILA.
WHEREAS, a debt policy and appropriate management of debt issued by the City
is an important factor in measuring the City's financial performance and condition; and
WHEREAS, proper use and management of borrowing can yield significant
advantages; and
WHEREAS, the use of debt is a mechanism to equalize costs of needed
improvements to both present and future citizens; and
WHEREAS, d is the respnnsibiiity of the City Council of the City cif Tukwila to
provide policy direction through the passage of motions and ordinances, adoption of
resolutions, and final approval of the budget; a nd
WIrIEREAS , a debt poky establishes the purposes type, and use of debt;
responsibilities, of Bran ou s City officials; method of sale cf bends; refu ridings (bonds or
notes); structural elements; credit objective; and the use of professional and other
service providers;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. The deb policy dated August 2014, attached hereto as "Exhibit A," is
hereby adopted by this reference as ff set forth in full.
Section 2_ The debt policy shall be reviewed on a regular basis and updated as
necessary
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City of Tukwila, Washington
pt U.s[_p LW THE CM( ON N OF TI 1E CI OF TUJ MLA, WASHINGTON, at
a Regular M eeiing t ereorf ihiri days or , 2014.
ATTESTLAUTIHEIITI TEI1:
ti
l a
Chris O'Flahe MC. City Clark.
APPROVED AS TO FORM 8Y:
WA, FD51E.
14arher Turpin, City Atiorney
D San Quinn, Cyril Fresideni
Filed with the City Clerk: -31 41
Palmed byr 1ha City Courcil -) LI
Heal:11010n IluiiibPF. " 0
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2015 - 2016 Biennial Budget City of Tukwila, Washington
CITY OF TUKWILA DEBT POLICY
A debt policy and appropriate management of debt issued by the City of Tukwila (the "City ") is an important
factor in measuring its financial performance and condition. Proper use and management of borrowing can
yield significant advantages. From a policy perspective, the City uses debt as a mechanism to equalize the
costs of needed improvements to both present and future citizens.
SECTION 1. PURPOSE, TYPE AND USE OF DEBT
In the issuance and management of debt, the City shall comply with the Washington State constitution
and with all other applicable legal requirements imposed by federal, state and local laws, rules and
regulations. Approval from the City Council (the "Council ") is required prior to the issuance of all debt.
Long -term debt will only be used for improvements that cannot be financed from current revenues or to
fulfill the purposes set forth in the first paragraph of this Debt Policy (the "Policy ").
Long -term debt will only be issued after reviewing the impact on the Six Year Financial Planning
Model and its policy guidelines. When both tax exempt and taxable debt is under consideration,
priority will be given to issuing the tax exempt debt, unless otherwise justified.
Limited Tax General Obligation (LTGO) Bonds. The City is authorized to sell LTGO bonds under
RCW 39.36.020, subject to the approval of the Council. LTGO bonds will be issued only if: (1) a
project requires funding not available from alternative sources; (2) the project has a useful life longer than
five years, and the Council determines it is appropriate to spread the cost over that useful life, to achieve
intergenerational equity, so those benefiting will also be the ones paying; (3) matching money is available
which may be lost if not applied for in a timely manner; or (4) emergency conditions exist as determined
by the Council. LTGO (non- voted) debt of the City shall not exceed an aggregate total of 1.5 percent
of the City's assessed value of taxable property within the City.
Unlimited Tax General Obligation (UTGO) Bonds. The City is authorized to sell UTGO bonds
under RCW 39.36.020, subject to the approval of the Council, and subject to voter approval. UTGO
debt will be used for capital purposes when the use of an excess tax levy is necessary for debt service
payments. No combination of UTGO (voter approved) debt and LTGO debt of the City shall exceed an
aggregate total of: (a) 2.5 percent of the City's assessed value of the taxable property within the City
for general purposes; (b) 2.5 percent of the City's assessed value of the taxable property within the City
for parks, open spaces and capital facilities associated with economic development; and (c) 2.5 percent
of the City's assessed value of the taxable property within the City for utility purposes.
Revenue Bonds. The City is authorized to sell revenue bonds under RCW 35.41.030, subject to the
approval of the Council. Revenue bonds will be issued to finance the acquisition, construction or
improvements to facilities of enterprise systems operated by the City, in accordance with a system and
plan of improvements. The enterprise system must be legally authorized for operation by the City.
There are no legal limits to the amount of revenue bonds the City can issue, but the City will not
incur revenue obligations without first ensuring the ability of an enterprise system to meet all pledges
and covenants customarily required by investors in such obligations during the term of the obligation.
Local Improvement District Bonds. The City is authorized to sell local improvement district (special
assessment) bonds ( "LID bonds ") under RCW 35.45.010, subject to the approval of the Council. LID
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2015 - 2016 Biennial Budget City of Tukwila, Washington
bonds are issued to finance projects that will provide special benefit to certain property owners. The
specially benefiting property owners are levied an assessment, based upon a formula developed to fairly
reflect the benefit received by each property owner in the local improvement district. After
consideration and review, the City may form local improvement districts upon petition of benefiting
property owner(s), unless the Council determines to establish such districts by resolution, pursuant to
statutory authority. LIDs for utility improvements may be authorized as ULIDs, which may be financed
through issuance of Revenue Bonds.
Lease Purchase Financing. Lease purchase financing may be used when the cost of borrowing or other
factors make it in the City's best interest.
Short -Term Debt. The City is authorized to incur short-term debt under chapter 39.50 RCW, subject to
the approval of the Council. Short-term debt may be issued to meet: (1) the immediate financing needs
of a project for which long -term financing has been identified and is likely or secured but not yet
received; or (2) cash flow needs within authorized budgets and anticipated receipts for the budget year.
The Finance Director is authorized to make loans from one City fund to another City fund for periods not
exceeding twelve months. The Finance Director or designee is required to assure that the loaning fund will
have adequate cash balances to continue to meet current expenses after the loan is made and until repayment
from the receiving fund. All interfund short-term borrowing will bear interest based upon prevailing Local
Government Investment Pool rates.
SECTION 2. RESPONSIBILITIES
The primary responsibility for debt management rests with the City's Finance Director.
The Finance Director shall (or shall cause the following to occur):
• Provide for the issuance of debt at the lowest cost and risk;
• Determine the available debt capacity;
• Provide for the issuance of debt at appropriate intervals and in reasonable amounts as required to
fund approved projects;
• Recommend to the Council the manner of sale of debt;
• Monitor opportunities to refund debt and recommend such refunding as appropriate;
• Comply with all Internal Revenue Service (IRS), Securities and Exchange Commission (SEC) and
Municipal Securities Rulemaking Board (MSRB) rules and regulations governing the issuance of
debt pursuant to the City's Post Issuance Compliance Policy;
• Provide information for and participate in the preparation and review of bond offering or disclosure
documents;
• Comply with all terms, conditions and disclosures required by Ordinances governing the debt
issued;
• Submit to the Council all recommendations to issue debt;
• Distribute to appropriate repositories, such as the EMMA repository managed by the Municipal
Securities Rulemaking Board, information regarding financial condition and affairs at such times
and in the form required by contract, regulation and general practice, including Rule 15c2 -12
regarding continuing disclosure;
• Provide for the distribution of pertinent information to rating agencies;
• Coordinate and lead presentations to rating agencies, when appropriate;
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• Maintain a database with all outstanding debt;
• Apply and promote prudent fiscal practices;
• Select a qualified financial advisor with experience in municipal finance in Washington, and
registered with the SEC and MSRB as a "municipal advisor," and
• Account for and pay all bonded indebtedness for the City , by specifically providing for the timely
payment of principal of and interest on all debt; and ensuring that the fiscal agent receives funds
for payment of debt service on or before the payment date.
The Council shall:
• Approve the Debt Policy;
• Approve indebtedness;
• Approve budgets sufficient to provide for the timely payment of principal and interest on debt;
• Determine the most appropriate financing plan for proposed debt, based on recommendation from
the Finance Director, upon advice of the City's financial advisor; and
• By Ordinance, delegate broad or limited authority to the Finance Director relative to execution of a
financing plan approved by the Council.
SECTION 3: METHOD OF SALE OF BONDS
Competitive Sale. The Finance Director may, upon the advice of the City's financial advisor, submit
to the Council a recommendation to sell debt on a competitive bid basis. City debt issued on a
competitive bid basis will be sold to the bidder proposing the lowest true interest cost to the City. Such
bid may take the form of electronically transmitted offers to purchase the bonds.
Negotiated Sale. The Finance Director may, upon the advice of the City's financial advisor, submit to
the Council a recommendation to sell debt on a negotiated basis. If debt is sold on a negotiated basis,
the negotiations of terms and conditions shall include, but not be limited to, prices, interest rates,
redemption provisions and underwriting compensation. The Finance Director, with the assistance of its
financial advisor, shall evaluate the terms offered by the underwriter including comparison of terms with
prevailing terms and conditions in the marketplace for comparable issues. If more than one underwriter
is included in the negotiated sale of debt, the Finance Director shall establish appropriate levels of
liability, participation and priority of orders and, with the assistance of its financial advisor, oversee the
bond allocation process.
Private or Direct Placement. When deemed appropriate to minimize the direct or indirect costs and
risks of a debt issue, the Finance Director will, upon the advice of the City's financial advisor, submit to
the Council a request to incur debt issue through a private placement or direct bank placement.
SECTION 4. REFUNDING BONDS OR NOTES
Refundings will be conducted in accordance with chapter 39.53 RCW. Unless otherwise justified, the
City will refinance debt to either achieve debt service savings as market opportunities arise, or to
eliminate restrictive covenants.
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Unless otherwise justified, an "advance refunding" transaction will require a present value savings of five
percent of the principal amount of the debt being refunded. In addition to the savings, any determination
to refund debt should take into consideration all costs and negative arbitrage in the refunding escrow.
A "current refunding" transaction will require present value savings in an amount or percentage to be
determined by the Finance Director based upon the advice of the City's financial advisor.
SECTION 5. STRUCTURAL ELEMENTS
Maturity Term. The City shall issue debt with an average life less than or equal to the average life
of the assets being financed. Unless otherwise stated in law, the final maturity of the debt shall be no
longer than 40 years (RCW 39.46.110).
Debt Service Structure. Unless otherwise justified and deemed necessary, debt service should be
structured on a level annual basis. Refunding bonds should be structured to produce debt service
savings as determined by the Finance Director, based upon the advice of the City's financial advisor, to
be in the best interest of the City. Unless specifically justified and deemed necessary, debt shall not
have capitalized interest. If appropriate, debt service reserve funds may be used for revenue bonds.
Maturity Structure. The City's long -term debt may include serial and term bonds. Unless otherwise
justified, term bonds should be sold with mandatory sinking fund requirements.
Price Structure. The City's long -term debt may include par, discount and premium bonds. Discount
and premium bonds must be demonstrated to be advantageous relative to par bond structures, given
applicable market conditions and the City's financing goals.
Interest Payments. Unless otherwise justified and deemed necessary, long -term debt will bear interest
payable semiannually.
Redemption Features. For each transaction, the City shall evaluate the costs and benefits of call
provisions.
Capitalization. Debt service reserves may be capitalized for enterprise activities only. Costs of
issuance may be capitalized for all debt. Interest costs may be capitalized upon the advice of the City's
financial advisor for any type of debt.
Bond Insurance. The City may evaluate the costs and benefits of bond insurance or other credit
enhancements. Any credit enhancement purchased by the City shall be competitively procured unless
otherwise justified.
Tax - exemption. Unless otherwise justified and deemed necessary, the City shall issue its debt on a tax -
exempt basis. Taxable debt may be justified based on a need for flexibility in use of proceeds, or when
expected to reduce burdens relative to IRS rules.
SECTION 6. CREDIT OBJECTIVE
The City shall seek to maintain and improve its bond rating or ratings, as applicable.
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SECTION 7. USE OF PROFESSIONALS AND OTHER SERVICE PROVIDERS
Bond Counsel. All debt issued by the City will include a written opinion by bond counsel affirming
that the City is authorized to issue the debt, and that all statutory requirements have been met. The
bond counsel opinion and other documents relating to the issuance of debt will be prepared by
nationally recognized bond counsel with extensive experience in public finance and tax issues.
Bond counsel will be appointed by the Finance Director consistent with the City's general authority
to contract. .
Financial Advisor. The Finance Director will appoint a financial advisor for each debt issue, or for a
specified term, consistent with the City's general authority to contract. The financial advisor shall be
nationally recognized, have comprehensive municipal debt experience, including debt structuring and
pricing of municipal securities, be registered as a "municipal advisor" with the MSRB and SEC, and
have knowledge of State laws relating to City finances. The City financial advisor is to be available
for general purposes, and will assist the City with all financing issues. In no case shall the financial
advisor serve as underwriter for the City's debt issues.
Underwriter. The Finance Director in consultation with the City's financial advisor will select an
underwriter for any negotiated sale of bonds. The selection of an underwriter may be for an
individual bond issue, series of financings or a specified time period, as determined by the Finance
Director. Depending upon the nature and amount of each financing, the Finance Director is authorized,
in consultation with the City's financial advisor, to appoint more than one underwriter for each
financing and to designate one underwriting firm as the managing underwriter.
Other Service Providers. Professional services such as verification agent, escrow agent or rebate
analyst shall be appointed by the Finance Director in consultation with the City's financial advisor
and/or bond counsel.
Other City Policies and Procedures. The City shall comply with its Post - Issuance Tax Compliance
Policy, and shall provide the appropriate department heads and staff with educational opportunities to
ensure they are aware of requirements that may pertain to bond financed facilities and assets relating to
their duties.
SECTION 8. POST - ISSUANCE COMPLIANCE PROCEDURES
Continuing Disclosure Obligations for All Bonds
Purpose. At the time of issuance of any Bonds, regardless of tax status, the City is required to enter
into a Continuing Disclosure Undertaking ( "Undertaking ") in order to allow the underwriter of the
Bonds to comply with Securities and Exchange ( "SEC ") Rule 15(c)2 -12. The Undertaking is a
contract between the City and the underwriter in which the City agrees to provide certain information
to an "information repository" operated by the Municipal Securities Rulemaking Board ( "MSRB ") to
ensure investors have access to annual updates and related events that occur during the year.
Responsibility for Undertaking. The Finance Director is responsible for negotiating the terms of and
complying with each of the City's Undertakings. The Finance Director will negotiate the terms of the
Undertaking at the time of each bond issuance, with a goal of meeting the requirements of Rule
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2015 - 2016 Biennial Budget City of Tukwila, Washington
15(c)2 -12, without undue burden on the City. The Finance Director will strive to ensure that each
Undertaking is similar to prior Undertakings to the extent possible, to simplify future compliance.
Compliance with Undertaking. The Finance Director will have responsibility for ensuring
compliance with each Undertaking, which activities may be delegated to staff within the finance
depaitment. This will require certain annual filings, by a set due date, as well as periodic filings as
certain specified events arise. Filings are to be made through the Electronic Municipal Market Access
( "EMMA ") portal, managed by the MSRB. The Finance Director is responsible for knowing the terms
of the City's Undertakings, and ensuring appropriate staff within the finance department and other
departments of the City are aware of the events that may require a filing.
Certification of Compliance. At the time of each subsequent bond issue, the Finance Director is
responsible for reviewing all prior compliance, and providing a statement as to that prior compliance,
as required by Rule 15(c)2 -12. Each official statement will include a statement that describes
compliance (or non - compliance) with each prior undertaking, which statement will be certified by the
Finance Director.
Compliance Relating to Tax Exempt Bonds
Purpose. The purpose of these post- issuance compliance procedures ( "Compliance Procedures ") for
tax - exempt bonds and other obligations issued by the City for which federal tax exemption is provided
by the Internal Revenue Code of 1986, as amended (the "Code "), is to facilitate compliance by the
City with the applicable requirements of the Code that must be satisfied after the issue date of the
bonds to maintain the tax exemption for the bonds after the issue date.
Responsibility for Monitoring Post - Issuance Tax Compliance. The City Council of the City has the
overall, final responsibility for monitoring whether the City is in compliance with post - issuance
federal tax requirements for the City's tax - exempt bonds. However, the City Council has delegated the
primary operating responsibility to monitor the City's compliance with post- issuance federal tax
requirements for the City's bonds to the Finance Director and has authorized and directed the Finance
Director of the City to adopt and implement on behalf of the City these Compliance Procedures.
Arbitrage Yield Restriction and Rebate Requirements. The Finance Director will maintain or cause to
be maintained records of:
(a) purchases and sales of investments made with bond proceeds (including amounts treated as "gross
proceeds" of bonds under section 148 of the Code) and receipts of earnings on those investments;
(b) expenditures made with bond proceeds (including investment earnings on bond proceeds) in a
timely and diligent manner for the governmental purposes of the bonds, such as for the costs of
purchasing, constructing and/or renovating property and facilities;
(c) information showing, where applicable for a particular calendar year, that the City was eligible to
be treated as a "small City" in respect of bonds issued in that calendar year because the City did
not reasonably expect to issue more than $5,000,000 of tax - exempt bonds in that calendar year;
(d) calculations that will be sufficient to demonstrate to the Internal Revenue Service ( "IRS ") upon an
audit of a bond issue that, where applicable, the City has complied with an available spending
exception to the arbitrage rebate requirement in respect of that bond issue;
(e) calculations that will be sufficient to demonstrate to the IRS upon an audit of a bond issue for
which no exception to the arbitrage rebate requirement was applicable, that the rebate amount, if
any, that was payable to the United States of America in respect of investments made with gross
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2015 - 2016 Biennial Budget City of Tukwila, Washington
proceeds of that bond issue was calculated and timely paid with Form 8038 -T timely filed with the
IRS; and
(f) information and records showing that investments held in yield- restricted advance refunding or
defeasance escrows for bonds, and investments made with unspent bond proceeds after the
expiration of the applicable temporary period, were not invested in higher - yielding investments.
Restrictions on Private Business Use and Private Loans. The Finance Director will adopt procedures
calculated to educate and inform the principal operating officials of those departments, including
utility depailinents, if any, of the City (the "users ") for which land, buildings, facilities and equipment
( "property ") are financed with proceeds of tax - exempt bonds about the restrictions on private business
use that apply to that property after the bonds have been issued, and of the restriction on the use of
proceeds of tax - exempt bonds to make or finance any loan to any person other than a state or local
government unit. In particular, following the issuance of bonds for the financing of property, the
Finance Director shall provide to the users of the property a copy of these Compliance Procedures and
other appropriate written guidance advising that:
(a) "private business use" means use by any person other than a state or local government unit,
including business corporations, partnerships, limited liability companies, associations, nonprofit
corporations, natural persons engaged in trade or business activity, and the United States of
America and any federal agency, as a result of ownership of the property or use of the property
under a lease, management or service contract (except for certain "qualified" management or
service contracts), output contract for the purchase of electricity or water, privately sponsored
research contract (except for certain "qualified" research contracts), "naming rights" contract,
"public- private partnership" arrangement, or any similar use arrangement that provides special
legal entitlements for the use of the bond - financed property;
(b) under section 141 of the Code, no more than 10% of the proceeds of any tax - exempt bond issue
(including the property financed with the bonds) may be used for private business use, of which no
more than 5% of the proceeds of the tax - exempt bond issue (including the property financed with
the bonds) may be used for any "unrelated" private business use —that is, generally, a private
business use that is not functionally related to the governmental purposes of the bonds; and no
more than the lesser of $5,000,000 or 5% of the proceeds of a tax - exempt bond issue may be used
to make or finance a loan to any person other than a state or local government unit;
(c) before entering into any special use arrangement with a nongovernmental person that involves the
use of bond - financed property, the user must consult with the Finance Director, provide the
Finance Director with a description of the proposed nongovernmental use arrangement, and
determine whether that use arrangement, if put into effect, will be consistent with the restrictions
on private business use of the bond - financed property;
(d) the Finance Director is to communicate with the City's bond counsel and/or financial advisor
relative to any proposed change in use or special use arrangement that may impact the status of
the bonds, before entering into such agreement.
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RESERVE POLICY
City of Tukwila
Washington
Re nludon No _ 17.1 94
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING A FUNANCIAL RESERVE
POLICY TO MAINTAIN AN ADEQUATE FUND BALANCE,
ALLOWING MITIGATION OF RISKS TO REVENUES.
WHEREAS, for the bell -being and sustainability of the community, its residents, .
and businesses, it is important that the City of Tukwila be prepared to respond to any and
all situations that could resJlt in a risk and/or crisis to the City's finances, including but not
limited to revenue shortfalls and unanticipated expenditures; and
WHEREAS, it is the responsibility of the City Council of the City of Tukwila to provide
policy direction for the City's biennial budget through the passage of motions and
ordinances, adoption of resolutions, and final approval of said budget; and
WHEREAS, a financial reserve polio establishes, attains, and restores minimum
fund balances, including self- insured health care reserve funds, and specifies review and
reporting of such;
NOW, THEREFORE, THE CITY COUNCIL OF THE DIT'1f OF TIJKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. At the close of each f seal year, the General Fund balance and the
Reserve Fund balance shall each equal or exceed 10% of the previous year General
Fund revenue, exclusive of significant non-operating, nun - recurring revenues. such as
real estate sales or transfers in from other funds. In regard to the Enterprise Funds, at
the close of each fiscal year the unrestricted fund balance shall equal or exceed 20%
of the previous year revenue, exclusive of significant non - operating, non- recurring
revenues such as real estate ales, transfers in frorn other funds or debt proceeds.
Section 2. All expenditures from the Rave Fund shall be authorized by the City
Council.
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City of Tukwila, Washington
Section 3. The prescribed minimum fund balances outlined in motion 1 shall be
attained no later than the end of the 2014 fiscal year_ Should a fund balance decline
below the prescribed minimum balance after 2014, City Administration shall establish
a plan, no later than the end of the fiscal year following the year of decline, to restore
the fund balance to the prescribed minimum Icvel. The plan shall be presented to and
approved by the City Council_
Section 4. In regard to the self- insured health care funds, the City shall maintain a
reserve balance in each of its self - insured health care funds in an amount equal to 2.5
times, or 250 %, of the actuarially deterrnined IBNR (incurred but not reported)
reserve. The contingency reserve balance will be combined with the IBNR reserve
balance and recorded as one liability in each of the self- insured health care plan
fund s.
Section 6. A report showing compliance with the Financial Reserve Policy shall
be provided to the City Council on an annual basis, no lamer than July 1 of each year.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this / sr day of , 2012.
ATTEST /AUTHENTICATED'
Christy O'Flah "rty, MMCP City Cler :' Verna Seal, Council President
APPROVED AS TO FORM BY:
ouzikek
Sheller M. Kerslake, City Attorney
Filed with the City Clerk:
Pasted by the City Council:
Resolution Number:
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2015 - 2016 Biennial Budget City of Tukwila, Washington
FINANCIAL POLICIES
The City's Financial Policies are intended to serve as a Council- approved set of values and expectations
for Council Members, City staff, citizens and other interested parties who may do business with the
City. The use of the term "City" refers to all City officials and staff who are responsible for the activities
to carry out these policies. The policies describe expectations for financial planning, budgeting,
accounting, reporting and other management practices. They have been prepared to assure prudent
financial management and responsible stewardship of the City's financial and physical resources.
The debt policy and reserve fund policy can be found in the appendix of the budget document.
Other policies adopted by the City include:
Financial Planning Model Policies
The Six -Year Financial Planning Model and Capital Improvement Program is the primary financial
policy document. It represents the culmination of all financial policies.
Revenues
Policy FP -1 - Revenues will be estimated on a conservative basis. Increases greater than
inflation in Attachment A, Revenues and Expenditures Governmental Funds, will
require additional documentation.
Policy FP -2 -Major revenue sources will require explanation in Attachment A -1, Notes
to Revenues, Expenditures and Fund Balance.
Operations & Maintenance Expenditures
Policy FP -3 - Expenditures for the General Fund operations (Attachment B, General
Fund Operating Expenditures) will only include basic inflationary increases at the
beginning of the budget preparation process. Proposed increases in programs or
personnel will require an issues and options paper and Council approval before being
added to the operating expenditures estimate.
Capital Expenditures
Policy FP -4 - Project capital grants with local matching requirements can only be
applied for with express approval by the City Council. Grant applications shall be
made only for projects listed in the six -year Capital Improvement Program.
Policy FP -5 - If the proposed grants or mitigation are either not funded or are reduced,
the respective project will be re- evaluated on the basis of its value and priority level
placement in the Capital Improvement Program.
Policy FP -6 - The financing of limited benefit capital improvements (i.e. private
development) should be borne by the primary beneficiaries of the improvement. The
principle underlying limited benefit is that the property is peculiarly benefited and
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2015 - 2016 Biennial Budget City of Tukwila, Washington
therefore the owners do not in fact pay anything in excess of what they receive by
reason of such improvement.
Enterprise Funds
Policy FP -7 - Each Enterprise Fund will be reviewed annually and it must have a rate
structure adequate to meet its operations & maintenance and long -term capital
requirements.
Policy FP -8 - Rate increases should be small, applied frequently, and staggered to avoid
an overly burdensome increase and undue impact in any given year.
Policy FP -9 - Rate increases of external agencies (i.e. King County secondary
wastewater treatment fees) will be passed through to the users of the utility.
Other General Financial Policies
Policy GF -1 - The City's various user charges and fees will be reviewed at least every
two years for proposed adjustments based on services provided and comparisons with
other jurisdictions.
Policy GF -2 - The Finance Director will provide a financial status update at least
quarterly.
Policy GF -3 - Budget amendments during the year will be approved by budget motion
until the end of the budget year, when a formal comprehensive budget amendment is
submitted.
Policy GF -4 - The City shall, whenever practical and advantageous, take advantage of
grants, loans, or other external financing sources. With the exception of capital
improvement program grants requiring a local match, staff shall report to and seek the
approval of the appropriate council committee before finalizing the grant.
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2015 - 2016 Biennial Budget City of Tukwila, Washington
CAPITAL IMPROVEMENT PROGRAM POLICIES
1) Utility rates should be structured to ensure adequate infrastructure development and
replacement.
2) Late -comer agreements (where appropriate) shall be considered an acceptable means of
funding capital projects, improvements and replacements, in whole or in part.
3) Infrastructure improvements such as water reuse should consider conservation of resources
such as water and electricity.
4) For City - scheduled projects located on residential streets, the City will evaluate for inclusion
the costs of undergrounding the overhead utilities that exist within the right -of -way.
5) Right -of -way agreements for cable and electrical services should be utilized to discourage
excessive wiring throughout the City.
6) Donation of the property needed for rights -of -way and easements shall be pursued.
7) Residential street designs will follow basic designs for arterials, collectors, and local access
streets. Designs to accommodate individual properties shall be avoided.
8) The City strongly encourages design of connecting streets.
9) Residential streets with safety issues, high traffic volumes, high pedestrian activity and poor
roadway conditions will be considered the highest priority projects.
10) A majority of citizens on a street may petition the City to set up a Local Improvement
District (LID) to pay for residential street improvement projects, sidewalks and
undergrounding of utilities. The City will evaluate the possibility of paying for the design,
preliminary engineering, construction engineering, and LID formulation. The residents will
pay for undergrounding utilities in the street, undergrounding from the street to their house,
the actual construction costs, and for any improvements on private property such as
rockeries, paved driveways, or roadside plantings.
11) Capital improvements shall be coordinated, whenever feasible, with related improvements
of other jurisdictions.
12) Capital Improvement Program (CIP) projects shall, whenever possible, take advantage of
grants, loans or other financing external to the City. Staff shall obtain approval from the
appropriate committee before applying for grants, and the Committee Chair shall report for
approval the proposed applications to the full Council. Grant applications shall be made
only for projects listed in the six -year Capital Improvement Program. Staff shall also get
approval from the full Council before accepting grants.
13) Current arterial street improvements determined in the six -year CIP may be funded through
a LID or financing external to the City. The City may participate by using operating
358
2015 - 2016 Biennial Budget City of Tukwila, Washington
revenues, grants or bonds based on health and safety needs or public benefit. The City may
participate in the funding by financing the preliminary engineering design and professional
service costs associated with planning and creating the LID.
14) Street and road improvement projects on slopes will include roadside plantings wherever
feasible to help mitigate the land used for roadway and sidewalk improvements.
15) The first 1/4 -cent real estate transfer tax shall be dedicated to park and open space land
acquisition. The second 1/4 -cent tax shall be used for arterial streets along with the parking
tax.
16) Non - transportation capital projects and improvements (i.e. new community center) shall be
funded by operating revenues, grants or bonds as determined in the six -year Financial
Planning Model.
17) A dedicated facility replacement fund will be used to help pay for future facilities.
18) Transportation improvements will be coordinated with related improvements such as
utility, landscaping, sidewalks, etc.
19) No capital improvement projects located outside the city limits will be approved without
specific City Council approval.
20) Policies will be reviewed annually and in concert with the adoption of growth management
policies to ensure continuity.
21) Street and road improvement projects shall be evaluated for the inclusion of features that
support the Walk and Roll Plan in order to encourage walking, bicycling, and transit use.
22) Transportation impact fees shall be collected so that "growth may pay for growth" and
growth- caused improvements may be constructed.
A summary of the Capital Improvement Program can be found in the Capital Budget tab section.
The 2015 -2016 Biennial Budget incorporates the first two years of the Capital Improvement
Program.
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2015 - 2016 Biennial Budget
City of Tukwila, Washington
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2015 - 2016 Biennial Budget
City of Tukwila, Washington
2015 POSITION SALARY SCHEDULE
Elected Officials
Minimum
Maximum
COUNCIL MEMBER
12,600
15,000
MAYOR
101,335
101,335
Fire IAFF
Minimum
Maximum
FIRE BATTALION CHIEF
108,569
108,569
FIRE CAPTAIN
96,035
96,035
FIREFIGHTER
66,806
83,514
Non - represented
Minimum
Maximum
ASSISTANT FIRE CHIEF
102,951
131,090
ASSISTANT TO THE CHIEF
61,041
70,233
ASSISTANT TO THE DIRECTOR
64,713
74,493
BUILDING OFFICIAL
91,017
113,759
CITY ADMINISTRATOR
123,024
159,965
CITY CLERK
79,805
95,827
CITY ENGINEER
102,951
131,090
CIVIL SERVICE EXAMINER
61,041
70,233
COMMUNICATIONS & GOV RELATIONS MANAGER
91,017
113,759
COURT ADMINISTRATOR
95,888
119,866
DCD DIRECTOR
111,029
144,371
DEPUTY CITY CLERK
64,713
74,493
DEPUTY DCD DIRECTOR
95,888
119,866
DEPUTY FINANCE DIRECTOR
95,888
119,866
DEPUTY POLICE CHIEF
107,859
140,307
DEPUTY PUBLIC WORKS DIRECTOR
95,888
119,866
ECONOMIC DEVELOPMENT ADMINISTR
104,028
136,182
ECONOMIC DEVELOPMENT LIAISON
83,354
100,086
EXECUTIVE ASSISTANT
64,713
74,493
FINANCE DIRECTOR
111,029
144,371
FIRE CHIEF
114,897
149,426
HUMAN RESOURCES ANALYST
79,805
95,827
HUMAN RESOURCES ASSISTANT
75,558
90,674
HUMAN RESOURCES DIRECTOR
111,029
144,371
HUMAN RESOURCES TECHNICIAN
57,308
65,961
IT DIRECTOR
111,029
144,371
LEGISLATIVE ANALYST COUNCIL
79,805
95,827
MAINTENANCE OPERATIONS MANAGER
92,657
115,778
PARKS AND RECREATION ANALYST
79,805
95,827
PARKS AND RECREATION DIRECTOR
111,029
144,371
POLICE CHIEF
114,897
149,426
POLICE RECORDS MANAGER
79,805
95,827
PROJECT DEVELOPMENT MANAGER
86,072
105,435
PUBLIC WORKS ANALYST
79,805
95,827
PUBLIC WORKS DIRECTOR
114,897
149,426
SENIOR PROGRAM MANAGER
91,017
113,759
SYSTEMS ADMINISTRATOR
75,558
90,674
361
2015 - 2016 Biennial Budget
City of Tukwila, Washington
Police Non- Commisioned
Minimum
Maximum
POLICE RECORDS SPECIALIST
45,552
56,340
SERVICE TRANSPORT OFFICER
52,932
62,880
EVIDENCE TECHNICIAN
52,932
63,612
POLICE INFORMATION ANALYST
60,000
73,752
COMMUNITY POLICING COORD
67,908
78,588
PATROL ADMIN ASSISTANT
46,116
56,400
DOMESTICE VIOLENCE ADVOCATE
53,436
66,336
PROF STAND ADMIN SPECIALIST
50,340
61,188
Police Guild
Minimum
Maximum
MASTER POLICE OFFICER
65,136
82,572
POLICE OFFICER
65,136
82,572
MASTER POLICE SERGEANT
87,636
95,688
POLICE SERGEANT
87,636
95,688
Teamsters
Minimum
Maximum
ADMIN SUPPORT ASSISTANT
42,681
51,873
ADMIN SUPPORT COORD
52,265
63,526
ADMIN SUPPORT SPECIALIST
48,874
59,401
ADMIN SUPPORT TECHNICIAN
45,667
55,521
ASSISTANT PLANNER
73,318
89,095
BAILIFF COURT
52,265
63,526
BUSINESS COMMUNITY LIAISON
55,912
67,981
CODE ENFORCEMENT OFFICER
55,912
67,981
COMBINATION INSPECTOR
64,027
77,834
DATABASE SYSTEMS ADMINIS'1'RATOR
73,318
89,095
DIRECTOR OF INSTRUCTION - GOLF
64,027
77,834
EMERGENCY MANAGEMENT SPECIALIST
51,362
62,479
ENGINEER
78,434
95,350
FACILITIES CUSTODIAN
45,667
55,521
FACILITIES OPS 'I'ECHNICIAN
55,912
67,981
FIRE PROJECT COORDINATOR
73,318
89,095
FISCAL COORDINATOR
78,434
95,350
FISCAL SPECIALIST
52,265
63,526
FISCAL SUPPORT TECHNICIAN
45,667
55,521
FLEET TECHNICIAN
55,912
67,981
GIS COORDINATOR
64,027
77,834
GOLF MAINTENANCE SUPERVISOR
64,027
77,834
INFO TECHNOLOGY SPECIALIST
52,265
63,526
LEAD FACILITIES CUSTODIAN
59,841
72,742
LEAD MAINT SPECIALIST
59,841
72,742
MAINT & OPS FOREMAN
64,027
77,834
MAINT & OPS SPECIALIST
55,912
67,981
MAINT & OPS SUPERINTENDENT
78,434
95,350
MAINTENANCE SPECIALIST
52,265
63,526
MAINTENANCE TECHNICIAN
36,661
44,554
362
2015 - 2016 Biennial Budget
City of Tukwila, Washington
Teamsters (continued)
Minimum
1r Maximum
MAINTENANCE WORKER
42,681
51,873
MARKETING COMMUNICATIONS COORD
55,912
67,981
NPDES COORDINATOR
78,434
95,350
PARKS MAIN PENANCE SUPERVISOR
64,027
77,834
PERMIT COORDINATOR DCD
73,318
89,095
PLANNING SUPERVISOR DCD
89,817
109,193
PLANS EXAMINER
55,912
67,981
POLICE RECORDS SUPERVISOR
59,841
72,742
PROBATION OFFICER COURT
73,318
89,095
PROGRAM MANAGER HUMAN SERVICES
83,942
102,033
PROGRAM MANAGER MARKTNG & TRSM
83,942
102,033
PROJECT INSPECTOR PW ENG
59,841
72,742
PROJECT MANAGER
83,942
102,033
RECREATION PROG ASSISTANT
42,681
51,873
RECREATION PROG COORDINATOR
64,027
77,834
RECREATION PROG SPECIALIST
52,265
63,526
RECREATION SUPERIN1ENDENT
78,434
95,350
SENIOR ELECTRICAL INSPECTOR
68,483
83,305
SENIOR FISCAL COORDINATOR
83,942
102,033
SENIOR PLANNER DCD
78,434
95,350
SENIOR PLANS EXAMINER DCD
64,027
77,834
SR INFO TECHNOLOGY SPECIALIST
55,912
67,981
SR MAINT & OPS SPECIALIST
59,841
72,742
SR PROJECT INSPECTOR
64,027
77,834
TRAFFIC OPERATIONS COORDINATOR
73,318
89,095
URBAN ENVIRONMENTALIST DCD
39,218
47,672
WATER QUALITY SPECIALIST
59,841
72,742
363
2015 - 2016 Biennial Budget City of Tukwila, Washington
STAFFING LEVELS
ACTUAL
BUDGETED
DEPARTMENT 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Administrative Services (a) 21.75 22.75 23.75 26.75 19.75
Council 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Mayor (b) 11.50 11.00 11.00 12.00 11.00 16.00 17.00 15.75 16.75 17.75 17.75 21.00 17.00
Human Resources (a) - - - 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00
Finance 13.00 12.00 11.00 11.00 12.00 12.00 13.00 11.00 12.00 12.00 12.00 12.00 12.00
Recreation 20.25 22.00 22.50 23.50 23.50 22.50 20.75 16.25 16.25 16.25 16.25 16.50 16.50
Department of Community Development 19.88 20.88 20.88 20.25 24.25 24.25 23.00 22.63 23.38 22.13 23.00 22.50 22.50
Court (a) 9.75 8.75 8.75 9.00 9.00 8.75 8.85 8.85
Police 78.00 81.00 83.00 80.00 83.00 82.00 80.00 83.00 88.00 87.50 92.00 93.00 93.00
Fire 63.00 67.00 65.00 66.00 64.00 63.00 65.00 66.00 67.00 67.00 67.00 67.00 67.00
Information Technology (a) - - 7.00 8.00 8.00 8.00 8.00 7.00 8.00 6.00 6.00
Public Works 35.00 35.00 34.00 32.00 33.00 32.00 30.00 30.00 30.00 31.00 30.00 33.00 33.00
Parks 9.50 10.50 10.25 7.50 7.50 7.50 7.50 7.50 7.50 6.00 7.50 8.50 8.50
Street 11.00 11.00 10.00 11.00 12.00 12.00 11.00 12.00 12.00 12.50 12.00 12.00 12.00
Water 5.00 6.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Sewer 3.00 3.00 3.00 3.00 2.00 2.00 1.00 2.00 2.00 2.00 3.00 3.00 3.00
Golf 9.50 9.50 9.25 9.25 9.75 9.75 10.00 9.25 8.25 9.25 9.75 8.25 8.25
Suface Water 5.00 7.00 7.00 7.00 8.00 8.00 7.00 8.00 8.00 8.00 7.50 8.50 8.50
Equipment Rental 4.00 4.00 5.00 4.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
TOTAL 316.38 329.63 329.63 327.25 335.75 331.75 325.00 323.13 331.13 330.38 337.50 343.10 339.10
(a) The departments for Human Resources, Court, City Clerk and Information Technology were previously reported under Administrative Services.
0') The department of City Clerk began reporting to the Mayor's department in 2009.
Major Position Changes for 2015 -2016:
Mayor: Additions to staff include the position of Economic Development Liaison (1 FTE),
Communications Staff (2 FTE) and Administrative Support Coordinator (.25 FTE).
Recreation: Additions to staff include the position of Recreation Superintendent (.25 FTE), Recreation
Program Coordinator (.5 FTE) and Pre - School Teacher (.5 FTE). There is a reduction in staff for the
position of Park and Facility Coordinator (1 FTE).
Department of Community Development: Reduction in staff for Senior Planner (1 FTE) moved to the
Mayor Department as Economic Development Liaison.
Court: Addition to staff include Judge (.1 FTE).
Police: Addition to staff include Police Sergeant - Grant funded (1 FTE).
Information Technology: Reduction in staff for Admin Support Coordinator (2 FTE) which moved to
the Communication division within the Mayor department.
Public Works: Additions to staff include the position of Senior Program Manager - Grant funded
(1 FTE), Surface Water Project Manager (1 FTE) and Surface Water Inspector (1 FTE).
364
2015 - 2016 Biennial Budget City of Tukwila, Washington
Parks Maintenance: Addition to staff include the position of Park Supervisor (1 FTE) which moved
from the Recreation department.
Golf: Addition to staff include the position of Director of Golf Instruction (.25 FTE) and reductions in
staff for the position of Golf Superintendent (1 FTE) and Golf Maintenance Specialist (.75 FTE)
Surface Water: Addition to staff include the position of Maintenance and Operations Specialist (1 FTE)
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2015 - 2016 Biennial Budget
City of Tukwila, Washington
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2015 - 2016 Biennial Budget
City of Tukwila, Washington
CITY STATISTICS
Date of Incorporation
June 23, 1908
Form of Government
Mayor - Council
Type of Government
Non - Charter, Optional Code City
Area
9.6 Square Miles
Population
19,765
Number of City Employees
343
Number of Businesses
2,180 (approximate)
Number of people employed in Tukwila
40,700 (approximate)
Levy Rate
Taxable Property Values
$2.89598
$4,913,428,890
Fire Protection- -
Number of Fire Personnel:
Number of Stations:
Number of Responses:
Total Fire Loss:
67.00
4
4,799
$523,250
Police Protection- -
Number of Police Personnel:
93
Parks and Recreation- -
18 Public Developed Parks
Playgrounds
Maintained Trails
Golf Courses
162 Acres
11
15 Miles
1
Street Miles:
188.2 Miles
Libraries- -
Number of Libraries:
2
367
2015 - 2016 Biennial Budget City of Tukwila, Washington
MAJOR EMPLOYERS IN TUKWILA
Tukwila's residents work in the City and commute to other nearby cities, including Seattle, and
Bellevue. The City's economy is based on a variety of government, health care, commercial, and retail
enterprises. The largest local employers are listed below:
CITY OF TUKWILA, WASHINGTON
SCHEDULE 20
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Name of Company /Employer
Product or Business
2013 Full &
Part -Time
Employment
Percentage of
Total City
Employees
2004 Full &
Part -Time
Employment
Percentage of
Total City
Employees
Boeing Company
King County Metro
Costco Wholesale
Boeing Employees Credit Union
Group Health Cooperative
Nordstrom
Red Dot Corporation
Macy's
United Parcel Service
Hartung Glass Industries Inc.
Sub- total - Major Employers
All Other Employment
Airplane company 7,799 19.80%
Transit operating base 800 2.03%
Cash /carry Warehouse 727 1.85%
Banking /Credit Union 566 1.44%
Data Ctr /Lab /Pharmacy /Mfg. 561 1.42%
Department Store 523 1.33%
Heater /air conditioning equipment 447 1.13%
Department Store 382 0.97%
Postal Delivery Service 329 0.84%
Manufacturing 275 0.70%
11,382
700
314
600
1,800
264
414
288
288
12,409
16,050
26,983
27,827
TOTAL EMPLOYMENT
39,392
43,877
Source:
Tukwila Finance Department - Business Licenses
25.94%
1.60%
0.72%
1.37%
4.10%
0.00%
0.60%
0.94%
0.66%
0.66%
368
2015 - 2016 Biennial Budget
City of Tukwila, Washington
CITY OF TUKWILA, WASHINGTON
SCHEDULE9
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
N
IMF
2013 Assessed
Name Type of Business Valuation
Percent of
2013 Total
Assessed
Value(')
2004 Assessed
Valuation
Percent of
2004 Total
Assessed
Value
Boeing Company
WEA Southcenter LLC
La Pianta LP /Segale Properties
E Property Tax Dept
KIR Tukwila 050 LLC /KIMCO
Qwest Corporation (US West Communications)
CWWA Tukwila 1 LLC
COSTCO Wholesale
Sea -Tuk Warehouse LLC
Wig Properties LLC (JC Penney)
Jorgensen Forge Corporation
Anne Arundel Apartments LLC (Group Health)
Puget Sound Energy /Gas - Electric
Southcenter Corporate Square
Boeing Employees Credit Union
BRCP Riverview Plaza LLC
Koar - Seatac Partners LP (Embassy Suites)
Federated Department Stores (Macys)
Merrill Creek Holding LLC (Kenworth Motors)
Harnish Group Incorporated
Walton CWWA Eproperty Tax Incorporated (McElroy)
CHA Southcenter LLC (Doubletree Inn)
Home Depot
Sterling Realty Organization
Lowe's HEW Incorporated
Hill Investment Company
AMB Institutional Alliance
Group Health Cooperative
Heitman
Calwest Industrial
TOTALS
Airplane company
Department Stores
Commercial Properties
Commercial Properties
Commercial Properties
Telephone Utility
Investment Property
Cash Sr Carry Warehouse
Food Distribution
Department Stores
Steel Manufacturer
Apartments
Electric /Gas Utility
Hair Loss Center
Credit Union
Commercial Properties
Lodging
Department Stores
Truck Manufacturer
Truck Equipment
Investment Property
Lodging
Home Improvement
Commercial Properties
Home Improvement
Commercial Properties
Commercial Properties
Healthcare Admiin
Commercial Properties
Property Management
422,762,422
298,510,135
165,317,953
119,869,800
82,015,900
78,499,861
40,938,100
37,164,419
34,302,000
33,924,982
32,431,256
29,618,300
28,736,298
27,361,300
26,496,457
25,377,700
22,487,678
21,269,000
20,112,600
17,896,665
17,778,300
17,474,495
15,931,771
14,293,700
13,665,439
7,518,800
8.89%
6.28%
3.48%
2.52%
1.72 %
1.65 %
0.86%
0.78%
0.72%
0.71%
0.68%
0.62%
0.60%
0.58%
0.56%
0.53%
0.47%
0.45%
0.42%
0.38%
0.37%
0.37%
0.33%
0.30%
0.29%
0.16%
$ 419,851,874
141,434,500
92,300,242
49,151,700
36,003,800
17,418,740
18,397,800
13,672,025
11,025,216
12.20%
4.11%
2.68%
1.43 %
1.05 %
0.51%
0.53%
0.40%
0.32%
21,983,036 0.64%
56,694,529 1.65%
16,029,335 0.47%
31,557,034 0.92%
10,047,486 0.29%
17,600,900
7,459,900
17,099,833
6,007,100
74,506,600
31,503,118
46,235,000
42,612,000
0.51%
0.22%
0.50%
0.17%
2.17%
0.92%
1.34%
1.24 %
34.25%
$ 1,651,755,331
34.73% $ 1,178,591,768
Notes:
In 2013 the total assessed property value in the City of Tukwila was $4,756,373,688.
mn In 2004 the total assessed property value in the City of Tukwila was $3,441,123,525.
Source:
King County Department of Assessments
369
2015 - 2016 Biennial Budget City of Tukwila, Washington
GLOSSARY OF TERMS
ACCOUNT. A classification established for the purpose of recording revenues and expenditures.
ACCOUNTING SYSTEM. The methods and records established to identify, assemble, analyze,
classify, record and report a government's transactions and to maintain accountability for the related
assets and liabilities.
ACCRUAL BASIS. The recording of the financial effects on a government of transactions and other
events and circumstances that have cash consequences for the government in the periods in which
those transactions, events, and circumstances occur, rather than only in the periods in which cash is
received or paid by the government.
ANNUAL BUDGET. A budget applicable to a single fiscal year.
APPROPRIATED BUDGET. The expenditure authority created by the appropriation bills or
ordinances, which are signed into law, and the related estimated revenues. The appropriated budget
would include all reserves, transfers, allocations, supplemental appropriations and other legally
authorized legislative and executive changes.
APPROPRIATION. A legal authorization granted by a legislative body to make expenditures and to
incur obligations for specific purposes. An appropriation usually is limited in amount and time it may
be expended.
ASSESSED VALUATION. A valuation set upon real estate or other property by a government as a
basis for levying taxes.
BALANCED BUDGET. A budget with revenues equal to expenditures. Total Revenues are equal to
or greater than Total Expenses.
BARS. Budgeting, Accounting & Reporting System. Refers to the accounting rules established by the
Washington State Auditor's Office, including a prescribed chart of accounts.
BASIS OF ACCOUNTING. A term used in reference to when revenues, expenditures, expenses and
transfers -and the related assets and liabilities -are recognized in the accounts and reported in the
financial statements. Specifically, it relates to the timing of the measurements made, regardless of the
nature of the measurement, on either the accrual method for proprietary funds or modified accrual
method for governmental funds.
BENEFITS. Costs paid by the City on behalf of its employees. Examples include: medical and dental
insurance, retirement, deferred compensation, life insurance and worker's compensation.
BIENNIAL BUDGET. A budget applicable to a two -year period.
BUDGET. A plan of financial operation embodying an estimate of proposed expenditures for a given
period and the proposed means of financing them. Used without any modifier, the term usually
indicates a financial plan for a single fiscal year.
370
2015 - 2016 Biennial Budget City of Tukwila, Washington
BUDGET AMENDMENT. The method used to make revisions to the adopted budget. Adjustments
are made through an ordinance approved by the City Council.
BUDGET CALENDAR. The schedule of events that need to occur and the date or period of time for
each to occur in the preparation, review and adoption of a budget.
BUDGET DOCUMENT. The instrument used to present a comprehensive financial program to the
appropriating governing body. The budget document usually consists of three parts. The first part
contains a message from the budget - making authority, together with a summary of the proposed
expenditures and the means of financing them. The second consists of schedules supporting the
summary. These schedules show in detail the past years' actual revenues, expenditures and other data
used in making the estimates. The third part is composed of drafts of the appropriation, revenue and
borrowing measures necessary to put the budget into effect.
BUDGET MESSAGE. A general discussion of the proposed budget as presented in writing by the
budget- making authority to the legislative body. The budget message should contain an explanation of
the principal budget items, an outline of the government's actual financial experience during the past
period and its financial status at the time of the message, and recommendations regarding the financial
policy for the coming period.
BUDGETARY CONTROL. The control or management of a government or enterprise in accordance
with an approved budget to keep expenditures within the limitations of available appropriations and
available revenues.
CAPITAL ASSETS. Long term assets such as land, improvements to land, easements, buildings and
related improvements, vehicles, machinery and equipment, infrastructure, and all other tangible or
intangible assets that are used in operations and that have initial useful lives extending beyond a single
reporting period. See also Fixed Assets.
CAPITAL EXPENDITURES. Expenditures of current financial resources for constructing or
purchasing capital assets. Under the modified accrual basis of accounting these acquired assets appear
as expenditures in the fund statements, however under the current reporting model these acquired
assets are recognized as assets in the basic financial statements.
CAPITAL IMPROVEMENT PROGRAM. A program for capital expenditures to be incurred each
year over a fixed period of years to meet capital needs arising from the long -term work program or
other capital needs. It sets forth each project or other contemplated expenditure in which the
government is to have a part and specifies the resources estimated to be available to finance the
projected expenditures.
CAPITAL PROJECT FUND. A fund created to account for financial resources to be used for the
acquisition or construction of major capital facilities.
CAPITALIZATION THRESHOLD. Dollar value at which a government elects to capitalize tangible or
intangible assets that are used in operations and that have initial useful lives extending beyond a single
reporting period. The City's capitalization threshold is established at a cost of $5,000.00, or greater.
CONTINGENCY FUND. An account set aside for emergencies or other unanticipated needs not
371
2015 - 2016 Biennial Budget City of Tukwila, Washington
otherwise included as part of the budget.
DEBT. An obligation resulting from the borrowing of money or from the purchase of goods and
services. Debts of governments include bonds, time warrants and notes.
DEBT SERVICE FUND. A fund established to account for the accumulation of resources for, and the
payment of, general long -term debt principal and interest.
DELINQUENT TAXES. Taxes remaining unpaid on and after the date to which a penalty for
nonpayment is attached. Even though the penalty may be subsequently waived and a portion of the
taxes may be abated or canceled, the unpaid balances continue to be delinquent taxes until abated,
canceled, paid or converted into tax liens.
EXPENDITURES. Decreases in net financial resources. Expenditures include current operating
expenses requiring the present or future use of net current assets, debt service and capital outlays, and
intergovernmental grants, entitlement and shared revenues.
FISCAL YEAR. A 12 -month period to which the annual operating budget applies and at the end of
which a government determines its financial position and the results of its operations.
FIXED ASSETS. Long -lived tangible assets obtained or controlled as a result of past transactions,
events or circumstances. Fixed assets include buildings, equipment, improvements other than
buildings and land. See also Capital Assets.
FULL -TIME EQUIVALENT (FTE). An employment indicator that translates the total number of hours
worked in a year by all employees, including part -time workers, to an equivalent number of work
years. For example, one FTE equals 2,080 hours and .75 FTE equals 1,560 hours.
FUND. A fiscal and accounting entity with a self - balancing set of accounts in which cash and other
financial resources, and related liabilities and residual equities, or balances, and changes therein, are
recorded and segregated to carry on specific activities or attain certain objectives in accordance with
special regulations, restrictions or limitations.
FUND BALANCE. The difference between assets and liabilities reported in a governmental fund.
Fund balances are either designated to a particular purpose or undesignated as to the remaining un-
appropriated balance of the fund after accounting for the designated funds.
GENERAL FUND. The fund used to account for all financial resources, except those required to be
accounted for in another fund.
GENERAL LONG TERM DEBT. Long term debt expected to be repaid from governmental funds.
GENERAL OBLIGATION BONDS. Bonds that are secured by the local government's full faith and
credit to use legally available resources, including tax revenues to repay bond holders.
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). Uniform minimum standards and
guidelines for financial accounting and reporting. The primary authoritative body on the application
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of GAAP to state and local governments is the Government Accounting Standards Board.
GOVERNMENTAL FUNDS. Funds generally used to account for tax supported activities. There are
five different types of governmental funds, of which the city uses four of these. The general fund, is the
main operating fund of the city. The special revenue funds, are used to account for proceeds from
specific sources to be used for legally restricted purposes, but normally not for major capital projects.
The debt service funds, which are for the accumulation of resources to pay principle and interest on the
City's general long term debt. The capital project funds, which are used for the acquisition or
construction of major capital facilities.
LEGAL LEVEL OF BUDGETARY CONTROL. The level at which spending in excess of budgeted
amounts would be a violation of law. The legal level of budgetary control is at the fund level.
LEVEL OF BUDGETARY CONTROL. One of the three possible levels of budgetary control and
authority to which organizations, programs, activities and functions may be subject. These levels of
budgetary control are (a) appropriated budget, (b) legally authorized non - appropriated budget process
or (c) non - budgeted financial activities, which are not subject to the appropriated budget and the
appropriation process or to any legally authorized non - appropriated budget review and approval
process, but still are relevant for sound financial management and oversight.
LEVY. (1) (verb) To impose taxes, special assessments or service charges for the support of
government activities. (2) (Noun) The total amount of taxes, special assessments or service charges
imposed by a government.
MODIFIED ACCRUAL BASIS. The basis of accounting associated with the governmental fund -type
measurement focus. Under it, revenues and other financial resources are recognized when they
become susceptible to accrual, that is when they become both "measurable" and "available" to finance
expenditures of the current period. Expenditures are recognized when the fund liability is incurred
except for inventories of materials and supplies that may be considered expenditures either when
purchased or when used. All governmental funds, expendable trust funds and agency funds are
accounted for using the modified accrual basis of accounting.
OBJECT DESCRIPTION. The classification of expenditures on the basis of categories called line -items
or objects -of- expenditure (e.g., 10- Salaries & Wages, 20- Personnel Benefits, 40 -Other Services &
Charges, 60- Capital Outlay, etc.) and within each category more detailed line -items (e.g., salaries,
travel, telephone expense, etc.).
OPERATING BUDGET. Plans of current expenditures and the proposed means of financing them.
The annual operating budget is the primary means by which most of the financing, acquisition,
spending and service delivery activities of a government are controlled. The use of annual operating
budgets is usually required by law. Even when not required by law, however, annual operating
budgets are essential to sound financial management and should be adopted by every government.
OPERATING TRANSFERS. All interfund transfers other than residual equity transfers (e.g., legally
authorized transfers from a fund receiving revenue to the fund through which the resources are to be
expended).
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2015 - 2016 Biennial Budget City of Tukwila, Washington
PROGRAM BUDGET. A budget wherein expenditures are based primarily on programs of work and
secondarily on character and object class.
PROPRIETARY FUND TYPES. Sometimes referred to as income determination or commercial -type
funds, the classification used to account for a government's ongoing organizations and activities that
are similar to those often found in the private sector. The GAAP used are generally those applicable to
similar businesses in the private sector and the measurement focus is on determination of net income,
financial position and changes in financial position.
REVENUES. (1) Increases in the net current assets of a governmental fund type from other than
expenditure refunds and residual equity transfers. Also, general long -term debt proceeds and
operating transfers in are classified as "other financing sources" rather than as revenues. (2) Increases
in the net total assets of a proprietary fund type from other than expense refunds, capital contributions
and residual equity transfers. Also, operating transfers in are classified separately from revenues.
SPECIAL ASSESSMENTS. A compulsory levy made against certain properties to defray all or part of
the cost of a specific capital improvement or service deemed to benefit primarily those properties.
SPECIAL REVENUE FUND. A fund used to account for the proceeds of specific revenue sources
(other than expendable trusts or major capital projects) that are legally restricted to expenditure for
specified purposes. GAAP only require the use of special revenue funds when legally mandated.
TAXES. Compulsory charges levied by a government to finance services performed for the common
benefit. This term does not include specific charges made against particular persons or property for
current or permanent benefits, such as special assessments. Neither does the term include charges for
services rendered only to those paying such charges (e.g., sewer service charges).
TAX LEVY ORDINANCE. An ordinance through which taxes are levied.
TAX RATE. The amount of tax stated in terms of a unit of the tax base (e.g., specified amount per
$1,000 of assessed valuation of taxable property).
TAX RATE LIMIT. The maximum rate at which a government may levy a tax. The limit may apply to
taxes raised for a particular purpose or to taxes imposed for all purposes, and may apply to a single
government or to a class of governments operating in a particular area. Overall tax -rate limits usually
restrict levies for all purposes and of all governments, state and local, having jurisdiction in a given
area.
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2015 - 2016 Biennial Budget City of Tukwila, Washington
LIST OF ACRONYMS AND ABBREVIATIONS
AWC- Association of Washington Cities
CBD - Central Business District
CCS - Catholic Community Services
CDBG - Community Development Block Grant
CIP - Capital Improvement Program
COLA - Cost of Living Adjustment
DUI /DWI - Driving Under the Influence /Driving While Intoxicated
DWLS - Driving While License Suspended
SKCEDI - Southwest King County Economic Development Initiative
EIS - Environmental Impact Statement
FEMA - Federal Emergency Management Agency
FEMA CERT - Federal Emergency Mgmt Agency, Community Emergency Response Team
FTE - Full Time Equivalent
GAAP - Generally Accepted Accounting Principles
GASB - Governmental Accounting Standards Board
GFOA - Government Finance Officers Association
GIS - Geographic Information System
HUD - Housing and Urban Development, United States Department of
KCHA - King County Housing Authority
LID - Local Improvement District
MVET - Motor Vehicle Excise Tax
NLC - National League of Cities
NPDES - National Pollutant Discharge Elimination System
PSRC - Puget Sound Regional Council
PWTFL - Public Works Trust Fund Loan
REET - Real Estate Excise Tax
ROW - Right Of Way
SCA - Suburban Cities Association
SEPA - State Environmental Policy Act
SSRTA - Seattle Southside Regional Tourism Authority
SWKCC - Southwest King County Chamber of Commerce
SWM - Surface Water Management
TIB - Tukwila International Boulevard
TOD - Transit Oriented Development
VAL VUE - Valley View Sewer District
WCIA - Washington Cities Insurance Authority
WD 111- Water District #111
WRIA - Water Resource Inventory Area (Watershed Management Project)
WSDOT - Washington State Department of Transportation
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City of Tukwila, Washington
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