HomeMy WebLinkAboutCOW 2016-05-09 Item 2B - Powerpoint Presentation Shown at Meeting - 2015 Annual Financial Report2015 Annual
Financial Report
City of Tukwila
May 9, 2016
2015 Financial Highlights
1. Investment in Public safety
2. Revenue growth
3. Healthy fund balances
4. Reserve Policy compliance
5. Departmental expenditures within budget
May 9, 2016 2015 Annual Financial Report
Investments in Public Safety
• Police Department was fully staffed with 93 total staff at
year -end.
• Over $5 million additional investment since 2012 ramp -up
• 10 additional staff since 2011
• Tukwila International Boulevard Redevelopment
• Two additional properties were acquired for $1.6 million
• Brings the City's total investment to over $6 million.
• Fire Department deployed all three pipeline positions.
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May 9, 2016 2015 Annual Financial Report
Revenue Growth
• General Fund ongoing revenues of $58 million
• Exceeded 2014 by $2.9 million or 5 %.
• Exceeded original budget by 3.6% and amended budget by 2%
• Retail Sales tax revenue of $18.7 million generated most
of the General Fund growth
• Exceeded 2014 by $2.3 million or 14%
• $1.2 million of construction sales tax collected
• Real Estate Excise Tax (REST) revenue
• Totaled $2.4 million
• Exceeded budget by $2 million
• Stems largely from a $220 million business park sale
in December
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May 9, 2016 2015 Annual Financial Report
Healthy Fund Balances
• The General Fund ended the year with total revenues
exceeding total expenditures by $1.2 million bringing
the year -end fund balance to $11.4 million.
• The governmental fund balances included in
Attachment A of the Financial Planning Model
increased by $3.6 million exceeding projections.
• 2014 fund balances $21.2 million
• 2015 fund balances $24.8 million
• Fund balance provides resources for future services
and projects
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May 9, 2016 2015 Annual Financial Report
Reserve Policy Compliance
• The General Fund ending fund balance of $11.4
million exceeded the minimum requirement of $9.9
million by $1.5 million.
• Reserve Policy. The General Fund minimum fund balance
must equal or exceed 18% of the prior year ongoing General
Fund revenues.
• The Contingency Fund ending fund balance of $5.58
million met the minimum requirement.
• Reserve Policy. The Contingency Fund minimum fund
balance must equal or exceed 10% of the prior year ongoing
General Fund revenues plus 10% of the prior year one -time
General Fund revenue.
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May 9, 2016 2015 Annual Financial Report
Departmental Expenditures Remained
Within Budget
• The additional budget for Police and Fire department
existing services, allocated through the November
mid - biennial budget amendment, was offset by budget
savings in other departments.
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May 9, 2016 2015 Annual Financial Report
Actual Departmental Expenditures
Compared with Budget
• Original budget
(Budget book page 62) $51, 568, 987
* Additional budget $430,727 .8%
• Actual Expenditures $51,999,714
* Additional budget authorized through the budget
amendment process totaled $981,059; of this, $430,727
was used and $550,332 was not used.
May 9, 2016 2015 Annual Financial Report
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Ongoing General Fund Revenues of $58M
• Taxes = $43M or 75%
of total
May 9, 2016
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iiilintergovernmental,
$5M, 8%
Other taxes, Licenses /Permits,
$10M, 17% $4M, 7%
Other ongoing
Property tax,
$14M, 25% $6M, 10%
revenues,
Sales tax,
$19M, 33%
2015 Annual Financial Report
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Departmental Expenditures of $52M
OTHER
$6M, 12 %_/
POLICE
$16M,32%
FIRE
$12M, 23%
PUBLIC WORK
$6M, 12%
COMMUNITY DEV
$3M, 6%
MAYOR, **
RECREATION & $4M, 7%
PARKS
$4M, 8%
** includes City Clerk, Economic Development,
Communications and Human Services divisions
May 9, 2016 2015 Annual Financial Report
Highlights of Other Governmental Funds
• Purchase of two additional properties on Tukwila International
Boulevard for $1.6M
• Issuance of $5.8M in 20 -year bonds
• Interurban Avenue South Improvements
• Boeing Access Road Bridge Rehabilitation
• Tukwila Urban Center Pedestrian Bridge design and right of way
• Duwamish Hill Preserve improvements
• Duwamish Gardens excavation and site work
• Safe Routes to School Phase I for Thorndyke and Cascade View
completed
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May 9, 2016 2015 Annual Financial Report
$8.0
$7.0
$6.0
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
Enterprise Funds
Fund Balances
Year over Year and Budget to Actual
in Millions
$7.2
$5.8
$42
• 2014 Actuals
❑ 2015 Budget
❑ 2015 Actuals
$6.1
Water
$5.8
$4.2
$6.1
5.3 $4.9
Sewer
$0.7 $0 6
II 1$0.1
Golf Course
$5.3
$0.7
$4.9
$0.6
$2.1 $2.1
$1.3
Surface Water
$7.2
May 9, 2016 2015 Annual Financial Report
$0.1
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$6.0
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
-$1.0
Internal Service Funds
$4.7
Fund Balances -
Year Over Year and Budget to Actual
in Millions
$4.9
$4.2
Equipment
Rental,Replacement
• 2014 Actuals
$4.7
$2.0
Insurance Employees
$2.5
❑ 2015 Budget
❑ 2015 Actuals
$4.2
$4.9
$1.3
$0.8
$0.2 f
� l
$0.0
Insurance LEOFF 1
Retirees
$0.2
$0.0
May 9, 2016 2015 Annual Financial Report
$2.0
$0.8
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Looking Forward
➢ Local economy remains strong but growth is slowing.
King County Economist's forecast projects declining rate of
growth in:
Assessed
Valuation
Local Retail
Sales Tax
2016
10%
5%
2017
8%
4%
2018
5%
3%
> Focus on financial fundamentals
• Structural balance, sufficient ongoing revenue to meet
ongoing expenditures
• Reserve policy compliance
➢ Opportunities under consideration
• Facilities Plan
May 9, 2016 2015 Annual Financial Report
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Q &A
The city of opportunity,
the community of choice.
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May 9, 2016 2015 Annual Financial Report
Approximately $3 million available for Capital
Projects or reserves from General Fund
Ongoing
Revenues
Ongoing Expenditures
Depart-
mental Debt Service
Available
for Capital
Projects,
Reserves, other
2012 $51.0 $44.7 $2.8
$ 47.5
$ 3.5
2013 $ 52.1 $ 47.3 $ 2.9 $ 50.2
$ 1.9
2014 $55.0 $48.7 $3.2 $51.9
$ 3.1
2015 $ 57.9 $ 52.0 $ 2.8 $ 54.8 $ 3.1
May 2, 2016
2015 Annual Financial Report
Departmental Savings
Budgetary
Savings
Savings Generated fro
Mayor
Finance
City Attorney
Community
Development
Public Works
Streets
TOTAL
May 2, 2016
$135,000 Communications Division; City Clerk and
Human Services Division
300,000
80,000
275,000
Salary and benefits from open position; claims
and judgments and extra labor.
Special matters
Salary and benefits from open positions;
slower ramp up of grant funded program.
150,000 Salary and benefits from open position and
other.
240,000 Salary and benefit savings from open position;
utility savings from use of LED street lights
$1,180,000
2015 Annual Financial Report
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