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Home My WebLink AboutSpecial 2014-10-27 - Powerpoint Presentation Shownat at Meeting - Proposed 2015-2016 Budget Presentation.f October 27, 2014 2015 -16 Proposed Budget Presentation City of Tukwila October 27, 2014 2015 -16 Proposed Budget Presentation 1 1 • e Budget Review - October 27 Workshop, 5:30 — 6:45 PM, Council Chambers, Tukwila City Hall Attachment A Governmental Funds CIP Internal Service Funds Debt Service Enterprise Funds including Capital Improvement Program Policy Considerations & Next steps October 27, 2014 Schedule 1 1/4 Hour I minutes : 10 minutes 10 minutes 10 minutes 20 minutes 15 minutes 2015 -16 Budget Review Presentation 2 Financial Planning Model Section 4, pages 42 -45 October 27, 2014 2015 -16 Proposed Budget Presentation 3 CITY OF TUKWILA ATTACHMENT A - REVENUES AND EXPENDITURES GOVERNMENTAL FUNDS 2015 -2020 Analysis in 000's REVENUES ACTUAL ADOPTS D PROPOSED BUDGET PROJECTIONS TOTAL 2015 -2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 General Revenues Sales and Use Taxes $ 15,674 $ 16,521 $ 15,680 $ 17,034 $ 17,631 $ 18,160 $ 18,705 $ 19,266 $ 19,844 $ 110,642 Property Taxes 13,830 13,757 14,322 14,329 14,759 15,128 15,506 15,894 16,291 91,908 Utility Taxes 4,001 3,880 4,155 4,025 4,105 4,187 4,292 4,421 4,553 25,583 Interfund Utility Tax 1,535 1,687 1,586 1,856 1,981 2,080 2,184 2,293 2,408 12,802 Gambling and other taxes 3,045 3,047 2,819 3,238 3,317 3,416 3,519 3,624 3,733 20,847 RGRL 1,756 1,725 1,768 1,821 1,875 1,922 1,970 2,019 2,070 11,677 Licenses & permits 1,605 2,014 1,946 2,105 2,166 2,232 2,301 2,374 2,449 13,626 SCL Agreement 2,147 2,084 2,250 2,212 2,267 2,335 2,405 2,477 2,552 14,249 Intergovernmental 2,663 2,620 2,379 2,503 2,585 2,614 2,643 2,673 2,704 15,721 Charges for Services 2,442 2,785 3,064 2,955 2,991 3,081 3,173 3,269 3,367 18,836 Indirect cost allocation 1,872 2,036 2,085 2,255 2,233 2,289 2,358 2,429 2,502 14,066 One -time revenue - 9,500 4,355 2,400 3,675 6,075 Sub -total 50,569 61,655 56,408 56,732 59,586 57,445 59,056 60,739 62,472 356,031 Dedicated Revenues 1,332 955 797 967 980 1,010 1,040 1,067 1,099 6,162 TOTAL REVENUES 51,901 62,609 57,204 57,699 60,566 58,455 60,096 61,806 63,571 362,193 EXPENDITURES Maintenance 44,636 47,321 49,119 51,569 52,608 53,923 55,271 56,653 58,069 328,093 (see Attachment B) Debt Service 3,075 6,023 3,026 2,760 3,303 3,507 3,499 3,493 2,669 19,231 Reserve Fund - 4,225 2,200 - - 41 161 168 370 Operating transfers 982 1,734 675 300 300 308 315 323 331 1,877 Adm /Engineering 641 602 419 545 567 581 596 610 626 3,525 Subtotal Available 2,566 2,704 1,765 2,525 3,788 136 374 565 1,708 9,097 Capital Projects Residential Street 108 115 660 1,614 141 413 750 750 750 4,418 Arterial Street 7,475 1,062 3,318 2,022 3,411 2,118 2,883 2,263 2,273 14,970 Land & Park Acquisition 696 47 647 983 182 172 166 321 162 1,986 Governmental Facilities 23 104 10 (70) 90 - - - - 20 General Government 812 280 200 200 200 200 200 200 200 1,200 Fire Improvements (34) (89) (45) (50) (50) (550) (350) (350) (350) (1,700) Sub total Capital 9,080 1,519 4,790 4,699 3,974 2,353 3,649 3,184 3,035 20,894 Change in fund balance (6,513) 1,185 (3,025) (2,174) (186) (2,217) (3,275) (2,619) (1,327) (11,797) Beginning fund balance 21,439 14,926 15,011 15,355 13,181 12,996 10,778 7,504 4,885 15,355 Ending Fund Balance $ 14,926 $ 16,111 $ 11,986 $ 13,181 $ 12,996 $ 10,778 $ 7,504 $ 4,885 $ 3,558 $ 3,558 Reserve fund balance $ 1,460 $ 5,763 $ 5,279 $ 5,702 5 5,704 $ 5,704 $ 5,745 $ 5,906 $ 6,074 $ 6,074 BALANCE $ 16,386 $ 21,874 $ 17,264 $ 18,883 $ 18,699 $ 16,482 $ 13,248 $ 10,791 $ 9,632 $ 9,632 October 27, 2014 2015 -16 Proposed Budget Presentation Page 42 of budget book 4 Governmental Funds CIP October 27, 2014 2015 -16 Proposed Budget Presentation 5 Governmental Funds CIP • Cover sheet listing 2015 -2016 projects and references page number for details • Detail sheet includes: • Project Number • Description • Justification • Status • Maintenance Impact • Comment • Detailed expenses 2015 — 2020 • Detailed fund sources 2015 — 2020 • Project location map October 27, 2014 2015 -16 Proposed Budget Presentation 6 General Fund CIP • Residential Streets o 42nd Avenue South page 2 o 53rd Avenue South page 6 o $750,000 annually to other Residential Street Improvements page 8 • Arterial Streets & Bridges o Boeing Access Road Bridge page 11 o TUC Pedestrian /Bicycle Bridge page 12 o S. 144th Street Phase 11 42nd to TIB page 15 o Annual Overlay & Repair Program page 18 October 27, 2014 2015 -16 Proposed Budget Presentation 7 General Fund CIP cont. • TIB Redevelopment Project Page 43 • Facilities Plan Page 44 • General Improvements Page 47 • Fire Improvements Page 51 October 27, 2014 General Fund CIP Park CIP 2015 & 2016 - Habitat • Duwamish Gardens Page 36 Grant funded • Chinook Wind Page 85 Grant dependent Transitioning from the 301 fund to 412 fan vmarsh dvtr Entry/ parking area . Proposed Duwamish Gardens Expansion Area Propose Entry/. parking area To DIIWamish Hill Preserve Pete nrial link to bike tra i a nd ( North WI nd Wee Ouwamish River To existing bike trail Proposed Chinook Wind Project Area Existing biiv trail t:=1 = = r' Duwamish Gardens Site October 27, 2014 2015 -16 Budget Review Presentation 9 General Fund CIP Park CIP 2015 & 2016 • Duwamish Hill Preserve Construction 2015 Phase 2 DHP - Phase 2 Conceptual Design • Fort Dent Park Page 33 c Overlay and curb repairs in parking lot c Move sewer line Page 32 SAVA WET MEADOW WETLAND October 27, 2014 2015 -16 Budget Review Presentation FOREST AND SHRUB BUFFER 10 Debt Service October 27, 2014 2015 -16 Proposed Budget Presentation 11 $4,000 c $3,500 $3,000 — $2,500 $2,000 — $1,500 — $1,000 — $500 — so City of Tukwila General Obligation Bond Debt Service 2015 Score pays debt service GO 03 paid off (TCC, FS53) 2016 Valley Com paid off 2019 GO 08 refunding paid off (Tukwila Village, 6300 bldg) 2020 Debt service drops $800K 1111111111111 4.` 1y .f;) LO LO 'LO '1'b L� � 41' '�) �D` '4 LO 4 O LO '')\ LO ')`b cb0) 'LO 'LO '12 'LO 'LO 1,° '12 1° 1° '19 LO ® SCORE City Hall Annex, Tukwila Village • MPD Capital Loan NEW -Urban Renewal October 27, 2014 SC Parkway Extension /HHD Valley Com NEW- Interurban Ave S NEW -42nd Ave S Arterial Street, KC Bridge TCC, Fire Station #53 NEW -BAR Bridge 2015 -16 Proposed Budget Presentation 12 NENE Cl1Y OF TUKWILA ATTACHMENT A - 2015 -2020 Analysis in 000's DEBT SERVICE DEBT SERVICE Use of Debt Proceeds BUDGET 1 PROJECTIONS TOTAL 2015 -2020 2013 2014 2015 2016 2017 2018 2019 2020 EXISTING DEBT: LTGO 2003 LTGO 2003 Refunding LTGO 2008 Refunding SCORE 2009 LTGO 2010 Valley Com 2010 Refunding LTGO 2011 Refunding LTGO 2012 Golf course club house Early payoff Community center and Fire station #53 TCC Fire Station #53 City Hall Annex, 6300 bldg, and Urban revitalization - Tukwila Village City Hall Annex, 6300 bldg Tukwila Village South County Corretional Entity, SCORE Jail facility Scheduled debt service Estimated contribution by SCORE Southcenter Parkway Extension, emergency management Southcenter Pkwy Extension Emergency Management Valley Communications Center operating facility Arterial street portion of 2003 bond -- South Park bridge transaction Tukwila Metropolitan Park District $ 715 $ - 2,665 491 488 392 98 737 812 332 405 _: 431 431 518 521 380 138 241 229 168 548 113 113 $ - $ - - - 811 811 365 365 446 446 - 428 430 (430) 524 524 384 384 140 140 229 - 546 549 113 113 $ - $ - - - - 809 809 364 364 445 445 427 428 - - 519 513 381 376 138 137 - - 552 549 113 113 $ - $ - - - - - 811 - 365 - 446 428 428 505 496 370 364 135 132 - - 549 545 113 113 $ - - 4,051 _,_ _ 2,139 430 3,080 2,259 229 3,290 679 Existing debt $ 6,079 $ 3,142 $ 2,223 $2,424 $ 2,420 $ 2,412 $ 2,406 $ 1,582 $ 13,468 PLANNED DEBT: 313 313 124 248 100 200 287 287 248 248 200 200 287 287 248 248 200 200 1,774 1,364 1,100 LTGO 2014 2015 Credit line LTGO 2015 TIB Redevelopment $ 3,850 TIB Redevelopment 2,250 Interurban Ave South 3,100 Boeing Access Road bridge 2,500 Planned debt $11,700 $ - $ - $ 537 $ 761 $ 735 $ 735 $ 735 $ 735 $ 4,238 PROPOSED DEBT: LTGO 2016 42nd $ 4,400 53rd 117 - 352 352 - - 352 352 - - 1,525 - Proposed debt $ 4,400 $ - $ - $ - $ 117 $ 352 $ 352 $ 352 $ 352 $ 1,525 TOTAL Estimate / Projections $ 6,079 $ 3,142 $ 2,760 $3,303 $ 3,507 $ 3,499 $ 3,493 $ 2,669 $ 19,231 October 27, 2014 2015 -16 Proposed Budget Presentation Page 44 of budget book 13 Internal Service Funds October 27, 2014 2015 -16 Proposed Budget Presentation 14 Active Employees Healthcare Plan, Fund 502 Page 335 October 27, 2014 2015 -16 Budget Review Presentation 15 $1,800 $1,600 $1,400 $1,200 Cost PENA saw CITY OF TUKWILA Medical Trend; Rolling -12 -Month Exponential Trend so JA a 014 0 J F A I A M J J A S O N D J F M A M J J A 5 O N D J F M A M J . 2842 2413 20141 —2E Rigged C -, -ins Rr,llrna l2 -Month .400-ase — Uponertml Trent Ei 9.21 city of Tukwila 2015 Rerkewal Recat 4 October 27, 2014 2015 -16 Budget Review Presentation ,+111201. 16 Active Employees Healthcare • High claim experience in 2014 • Reserve policy met through 2015 • Actuarial valuation update September 2015 for 2016 • Review of plan structure to avoid the 40% excise tax ( "Cadillac tax ") in 2018 October 27, 2014 LEOFF 1 Retiree Healthcare Plan, Fund 503 Page 339 October 27, 2014 2015 -16 Budget Review Presentation 18 1 Cort PERM S3. S2- $2,000 S1, CITY OF TU K ILA Medical Trend: Ra &Ming - t 2 -Month Exponential Trend (LEOFF 1 Retirees) SO SO N D J F M A M J J A S 0 I f 1 i? J F M A hi J J i, 5 0 N 0 J F M A M J 2Dt2 20-13 2D11 PERM Maimed D me ttt i mmimpP,iidluti 12.M:4ith Average EnWatitrrtial Trend $' '146.61 cit. cif 2D15 Rer4wat R Ercrk October 27, 2014 4 2015 -16 Budget Review Presentation 91412014 19 LEOFF 1 Retiree Healthcare • High claim experience in 2013 and 2104 • 2014 budget amendment to add funding to plan • Reserve policy met in 2015 • Actuarial valuation update in September 2015 for 2106 • All retirees except 2 will be eligible for Medicare by the end of 2015 October 27, 2014 Equipment Rental & Replacement, Fund 501 Page 327 October 27, 2014 2015 -16 Budget Review Presentation 21 Equipment Repair & Replacement • All City Fleet now included in the Full Replacement Program with each vehicle's platform • Included Fire Apparatus from Fund 107 into the 501 Fund, yet Fire Replacement not funded in 2015 and 2016 due to RFA discussion • Continue to promote City Pool Car Program October 27, 2014 2015 -16 Proposed Budget Presentation 22 Enterprise Funds October 27, 2014 2015 -16 Proposed Budget Presentation 23 Utilities October 27, 2014 2015 -16 Proposed Budget Presentation 24 Utilities CIP • Water Utility - Page 293, Attachment D o Cascade Water 2.75% increase in 2015 & 2016 o City Water has 5% increases in 2015 through 2020. Base Rates, Multi- family & Commercial consumption and fire line increases in 2015. o Projects CIP Page 57 • Sewer Utility - Page 301, Attachment E o King County Sewer Treatment increase 5.6% in 2015 o City Sewer has 10% increase in 2015 and 5% in 2016 through 2020 o Projects CIP Page 69 October 27, 2014 Utilities CIP continued • Surface Water - Attachment F o Proposed increase of 20% in 2015, 15% in 2016 o Three new Full -time Employees; 1 new M &O Specialist in Operations and Maintenance and 2 in Engineering for a NPDES Inspector and a Habitat Project Manager. o Projects CIP Page 81 October 27, 2014 • New page for Tukwila 205 Levee Certification 2015 -16 Budget Review Presentation 26 Golf, Fund 411 Page 309 Attachment G, page XXXIX October 27, 2014 2015 -16 Proposed Budget Presentation 27 Golf Enterprise Fund Foster Golf Links 2015 & 2016 • Marketing Plan E FootGolf ❑ Player Development Membership Program • Capital Plan Course Improvements — Greens & Bunkers Aerating Program Life Expectancy Replacements October 27, 2014 2015 -16 Budget Review Presentation 28 Policy Considerations October 27, 2014 2015 -16 Proposed Budget Presentation 29 Policy Considerations • Healthcare — plan structure and funding • Capital projects — timing and funding • Financial goals — structural balance and reserves • Utility tax — reauthorize • Revenues — additional or increases • Debt — appropriate levels • Utility improvements — financing options, who pays October 27, 2014 2015 -16 Proposed Budget Presentation 30 Next Steps October 27, 2014 2015 -16 Proposed Budget Presentation 31 Fourth Budget Work Session • October 30th • Council led agenda • Review of questions and /or policy considerations October 27, 2014 2015 -16 Budget Review Presentation 32 Questions October 27, 2014 2015 -16 Proposed Budget Presentation 33