HomeMy WebLinkAbout2014 Comprehensive Annual Financial Report (CAFR)1
City of Tukwila, Washington
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the fiscal year ended December 31, 2014
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City of Tukwila, Washington
VISION
The city of opportunity,
the community of choice
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MISSION
To provide superior services
that support a safe, inviting and
healthy environment for our
residents, businesses and guests.
VALUES
Caring
Professional
Responsive
STRATEGIC GOALS AND OBJECTIVES
A community of inviting neighborhoods and vibrant business districts
Cultivate community ownership of shared spaces.
Build a broad and collaborative approach to preventing crime and increasing the sense of safety.
Focus City planning and investments on creating a connected, dynamic urban environment.
Use City efforts and investments to realize established visions for specific sub - areas.
A solid foundation for all Tukwila residents
Partner with organizations that help meet the basic needs of all residents.
Strive for excellent education, vocational supports, and personal growth opportunities
through effective partnerships and City services.
Encourage maintenance, improvements and diversity in the City's housing stock.
A diverse and regionally competitive economy
Embrace the City's economic potential and strengthen the City's role as a regional
business and employment center.
Strengthen the City's engagement and partnership with the business community.
A high - performing and effective organization
Use Tukwila's Vision, Mission, and Strategic Plan to focus and prioritize City efforts.
Advance Tukwila's interests through participation in regional partnerships.
Continue to develop as an organization and support individual growth.
Ensure City facilities are safe, efficient and inviting to the public.
Ensure the long -term fiscal sustainability of the City.
A positive community identity and image
Improve the City's ability to build trust and work with all members of the Tukwila community.
Facilitate connections among Tukwila's communities.
Promote a positive identity and image of Tukwila.
COVER PHOTOS
(clockwise from upper left)
Groundbreaking at Washington Place site
Arbor Day tree planting by Duwamish River
Crowd attending Tukwila Village ceremony
"Safe Routes to School" construction project
New Community Resource Center at mall
The City of Tukwila, Washington
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
For the Year Ended December 31, 2014
Prepared by the City of Tukwila, Finance Department
Peggy McCarthy, Finance Director
JIM HAGGERTON, MAYOR
TUKWILA CITY COUNCIL
Kate Kruller, Council President
Verna Seal
Kathy Hougardy
De'Sean Quinn
Joe Duffie
Dennis Robertson
Allan Ekberg
CITY OF TUKWILA: 2014 CAFR TABLE OF CONTENTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2014
TABLE OF CONTENTS
Page
I. INTRODUCTORY SECTION
Administrative Organizational Structure, Principal Officials, and Council Committees 1
Letter of Transmittal 3
Certificate of Achievement 9
II. FINANCIAL SECTION
Auditor's Report 11
Management's Discussion and Analysis 15
Basic Financial Statements
Government -wide Financial Statements:
Statement of Net Position 31
Statement of Activities 32
Fund Financial Statements:
Balance Sheet — Governmental Funds 33
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 34
Statement of Revenues, Expenditures, and Changes in
Fund Balance — Governmental Funds 35
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 36
Statement of Net Position — Proprietary Funds 37
Statement of Revenues, Expenses, and Changes in
Net Position — Proprietary Funds 38
Statement of Cash Flows — Proprietary Funds 39
Combining Statement of Fiduciary Net Position — Fiduciary Fund 41
Statement of Changes in Fiduciary Net Position — Fiduciary Fund 42
Notes to the Financial Statements 43
Required Supplemental Information:
Schedules of Revenues, Expenditures, and Changes in
Fund Balances — Budget and Actual
General Fund 99
Metropolitan Park District 100
Notes to the Required Supplementary Information 101
Firemen's Pension Trust Fund 102
Retiree Medical and Long -Term Care Benefits for LEOFF I Employees 105
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet — Non -Major Governmental Funds 108
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Governmental Funds 109
Combining Balance Sheet — Non -Major Special Revenue Funds 112
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Special Revenue Funds 113
CITY OF TUKWILA: 2014 CAFR TABLE OF CONTENTS
TABLE OF CONTENTS - continued
Page
Combining Balance Sheet — Non -Major Debt Service Funds 116
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Debt Service Funds 117
Combining Balance Sheet — Non -Major Capital Project Funds 120
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Capital Project Funds 121
Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual:
Local Improvement District #33 Debt Service Fund 122
Arterial Street Capital Project Fund 123
Facilities Capital Project Fund 124
Hotel /Motel Special Revenue Fund 125
Drug Seizure Special Revenue Fund 126
Debt Service Funds 127
Residential Street Capital Project Fund 128
Land & Park Acquisition Capital Project Fund 129
General Government Improvements Capital Project Fund 130
Fire Improvements Capital Project Fund 131
Combining Statements of Net Position — Internal Service Funds 133
Combining Statement of Revenues, Expenses, and Changes in
Net Position — Internal Service Funds 134
Combining Statement of Cash Flows — Internal Service Funds 135
Statement of Changes in Assets and Liabilities — Agency Fund 139
III. STATISTICAL SECTION
Schedule
Net Position by Component 1 143
Changes in Net Position 2 145
Fund Balances, Governmental Funds 3 147
Changes in Fund Balances of Governmental Funds 4 149
General Government Tax Revenues by Source 5 151
Property Tax Levies and Collections 6 152
Assessed and Estimated Actual Value of Taxable Property 7 153
Property Tax Rates — Direct and Overlapping Governments 8 154
Principal Property Taxpayers 9 155
Retail Sales Tax Collections by Sector 10 157
Sales Tax Rate Direct and Overlapping Governments 11 159
Ratios of Outstanding Debt by Type 12 161
Ratios of General Bonded Debt Outstanding 13 163
Computation of Direct and Overlapping Debt 14 164
Legal Debt Margin Information 15 165
Revenue Bond Coverage — Water Bonds 16 167
Revenue Bond Coverage — Sewer Bonds 17 168
Revenue Bond Coverage — Surface Water Bonds 18 169
Water System Customers by Category 19 170
Largest Customers of the Water System 20 171
Sewer System Customers by Category 21 172
Largest Customers of the Sewer System 22 173
Demographic Statistics 23 174
Principal Employers 24 175
Full -Time Equivalent City Government Employees by Department 25 176
Operating Indicators by Function 26 177
Capital Assets by Function 27 178
ADMINISTRATIVE ORGANIZATIONAL STRUCTURE
AND PRINCIPAL OFFICIALS
CITIZENS OF TUKWILA
COUNCIL
MEMBERS
MAYOR
Jim Haggerton
C TY
ADMINISTRATOR
David Cline
MUNICIPAL
COURT
Kimberly Walden
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CITY ATTORNEY
Kenyon Disend PLLC
(Contracted)
HUMAN
RESOURCES
Stephanie Brown
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INFORMATION
TECHNOLOGY
Mary Miotke
FINANCE
Peggy McCarthy
COMMUNITY
DEVELOPMENT
Jack Pace
PARKS AND
RECREATION
Rick Still
FIRE
Chris Flores
(Interim)
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COUNCIL COMMITTEES
COUNCIL PRESIDENT
Kate Kruller
FINANCE AND SAFETY COMMITTEE
Kathy Hougardy, Chairperson
Joe Duffle, Member
De'Sean Quinn, Member
COMMUNITY AFFAIRS AND PARKS
Verna Seal, Chairperson
Dennis Robertson, Member
Allan Ekberg, Member
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PUBLIC WORKS
Bob Giberson
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POLICE
Mike Villa
TRANSPORTATION
Joe Duffle, Chairperson
Allan Ekberg, Member
Kathy Hougardy, Member
UTILITIES
Dennis Robertson, Chairperson
Verna Seal, Member
De'Sean Quinn, Member
City of Tukwila
6200 Southcenter Blvd, Tukwila, WA 98188 Jim Haggerton, Mayor
July 27, 2015
Honorable Jim Haggerton, Mayor
Members of the Tukwila City Council
Citizens of Tukwila
City of Tukwila
6200 Southcenter Boulevard
Tukwila, Washington 98188 -2599
Subject: TRANSMITTAL OF 2014 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Dear Mayor, Councilmembers, and Citizens:
State law requires that cities publish financial statements in conformity with Generally Accepted
Accounting Principles (GAAP), which are audited in accordance with generally accepted auditing
standards by the State Auditor's Office, under the Revised Code of Washington (RCW) 43.09.230.
Therefore, we issue and transmit to you the City of Tukwila's Comprehensive Annual Financial Report
(CAFR) for the fiscal year that ended December 31, 2014. This transmittal letter provides an overview
of the report and the financial condition of the City. It also provides insight into the history of Tukwila and
the economic conditions affecting it, and describes the systems and controls employed by the Finance
Department.
The CAFR has several significant uses. First, it provides a general overview of the City's finances to the
general public and taxpayers. Second, it is referenced by bond buyers and rating agencies to evaluate
the City's fiscal stability and creditworthiness. Finally, the CAFR is a series of financial statements that
have been audited by the State Auditor's Office and provides assurances that assets are safeguarded
and funds are expended as they were legally appropriated in the adopted budget.
I. INTRODUCTION
A. MANAGEMENT REPRESENTATION
The Tukwila Finance Department prepared the report and accepts responsibility for the accuracy,
completeness, and fairness of presentation of the information included. The data is believed to be
accurate in all material respects, and it is believed that the data is presented in a manner that fairly sets
forth the results of operations and financial position of the City, as measured by the financial activity of
the City's various funds. All disclosures necessary to enable the reader to gain the maximum
understanding of the City's financial activity have been included. The report has been prepared in
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conformance with GAAP and in conformance with financial reporting standards issued by the
Governmental Accounting Standards Board (GASB).
City management has developed and evaluated a comprehensive internal control structure that is
designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets
against loss from unauthorized use or disposition, and the reliability of financial records for preparing
financial statements and maintaining accountability for assets. The concept of reasonable assurance is
based on the assumption that the cost of internal controls should not exceed the benefits expected to be
derived. As management, we attest that, to the best of our knowledge and belief, this financial report is
complete and reliable in all material aspects.
As a recipient of federal, state and county financial assistance, the City is required to undergo an annual
single audit in conformity with the provisions of the Single Audit Act amendments of 1996 and U.S. Office
of Management and Budget Circular A -133, Audits of States, Local Governments, and Non - profit
Organizations. The audit is conducted by the State Auditor's Office in conjunction with the City's annual
independent audit. Information related to this single audit includes the Schedule of Expenditures of
Federal Awards, findings and recommendations, if applicable, and auditor's reports on internal control
and compliance with applicable laws, regulations, contracts and agreements. The results of the City's
annual single audit for the fiscal year ended December 31, 2014 provided no instances of material
weaknesses in the internal control structure or significant violations of applicable laws.
B. REPORTING ENTITY
The City of Tukwila is a non - charter optional code City, operating under Section 35A of the Revised Code
of Washington. It has a strong Mayor form of government with a seven - member City Council elected by
the voters of the City. Councilmembers are elected at large rather than by district, are responsible for
establishing the general guidelines and policies for the City, and each serves a four -year term. The Mayor
appoints the City Administrator as the City's chief administrative officer responsible for carrying out the
policies and direction set by the Mayor and City Council.
The City of Tukwila provides a full range of local government services. These services include police and
fire protection, emergency medical services, construction and maintenance of streets and traditional
municipal infrastructure, planning and zoning, park and recreational activities, and cultural events. In
addition, the City operates an equipment maintenance /rental fund. The City operates its own municipal
18 -hole golf course and provides sewer, water, and surface water services. Tukwila has a municipal court
for traffic infractions, misdemeanors, and gross misdemeanors. Other jurisdictions provide jail services
to the City. Tukwila residents receive library services from the King County Library System.
Incorporated in 1908, the City of Tukwila abuts the City of Seattle on the north and is one mile east of
Seattle- Tacoma International Airport. Tukwila has a small residential population of 19,765; however, the
daytime shopper /visitor and working population can reach over 150,000 during the holiday shopping
season.
II. ECONOMIC CONDITION
A. SUMMARY OF LOCAL ECONOMY
A diverse regional economy is led by The Boeing Company and other smaller manufacturing companies.
The Puget Sound region is a major international trade gateway to the Far East. Also, high tech industries
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such as Microsoft and Amazon have made their home in this region. This diversity has now become the
strength of our economic well being.
Tukwila enjoys a strong position in the Puget Sound region as well as the state of Washington. Tukwila's
location is at the crossroads of the state's most significant freeway network (the 1 -5 and 1 -405
interchange), and includes all modes of public transportation. Tukwila's transit stations include the
commuter Sounder train, Sound Transit's light rail, and the just completed Tukwila Transit Center that all
reinforce the well - established advantages of Tukwila as an employement and retail hub. These major
transportation systems, the strategic access to Seattle, Tacoma, Sea -Tac Airport, and the population
base of the south Puget Sound region provide a natural setting for commercial and industrial activity.
Tukwila enjoys one of the largest local retail sales tax bases in the state of Washington, with the City
collecting $16.3 million in sales tax revenue for 2014. The total retail sales activity amounted to
approximately $1.95 billion in 2014, representing a 2.9% increase in sales tax revenue and retail activity
within Tukwila, as compared to the previous year. Although the manufacturing sector was down 22.2%
and construction was down 29.6 %, the wholesale trade was up 43.7 %. The strength of the City's retail
sales activity is the Westfield Southcenter Shopping Center and Parkway Plaza retail development, which
combine to create one of the largest retail concentrations on the west coast. This strength continues to
attract new retail establishments to locate in Tukwila.
This diversified revenue base is further supported by an assessed valuation of $5.0 billion as well as the
above - mentioned local retail sales tax base, and has allowed the City to pursue a long -term capital
investment program.
Permit activity continues to remain solid with 1,970 permits issued in 2014 for a total value of $91.4
million. Permit activity related to commercial property accounts for 92% of 2014 permits issued.
B. FUTURE ECONOMIC OUTLOOK
Tukwila is in a continuous process of both short -term and long -term financial planning. Short -term
financial planning is inherent in the development of the City's biennial budget. Concurrent with the
biennial budget is the City's long -term capital needs and potential funding is assessed with the
development of the six -year capital facility plan. The capital facility plan is a component of the
Comprehensive Master Plan, which outlines how the City should look and function in twenty years and
creates a vision that can be realistically implemented. An integral part of this vision is determining how
to allocate the City's financial resources to achieve the desired goals.
One of the City's highest priorities has been to reduce crime along Tukwila International Boulevard (TIB)
since it was annexed into the City in the early 1990's. The multi - jurisdictional raid and seizure of motels
along TIB that occurred in August, 2013 and was the largest event of this kind in the state. The raid was
the result of a year -long investigation which proved the owners and managers of these properties allowed
crime to occur and they were actively profiting from the activity. After the seizure, crime took a sharp
decrease and when compared to a year later, in 2014, violent crime was down by 40% and all crimes
were down by 30% on the TIB corridor.
The Southcenter Parkway Extension project, the new five -lane roadway from 180th Street to 200th Street
has improved traffic flows, and provides the infrastructure needed for future development of the Tukwila
South area, expected to bring new businesses, housing and jobs into the City.
The newly completed Tukwila Transit Center on Andover Park West provides a safer, expanded, high -
quality bus stop with shelters, larger bus pullouts, and improved lighting, sidewalks and landscaping.
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Construction of the new Tukwila Sounder commuter rail station was also completed in 2014 and includes
improved walkways for pedestrians and bicyclists. The Sounder Station serves Sound Transit commuter
riders and also handles Amtrak's four trains per day. Both the Tukwila Transit Center and the Sounder
station serve numerous King County Metro transit buses, including the new RapidRide F Line, which
operates between Burien, SeaTac, Tukwila and Renton. Both transit stations, along with Sound Transit's
Light Rail station at Tukwila International Boulevard, offer a great travel option for residents and people
coming into Tukwila to work, shop or visit.
The City of Tukwila has begun reconstruction of a portion of Interurban Avenue South from Fort Dent
Way to South 143rd Street. Interurban Ave S is an arterial street that runs between 1 -405 to 1 -5 and State
Route 599, and travels past Tukwila's Foster Golf Links. The $11.4 million project will include a new
retaining wall to support the roadway adjacent to the Green River, extensive storm drainage
improvements, new pavement, lighting, pedestrian facilities, landscaping and other improvements.
Funding for this project is from Federal and State grants, mitigation from an adjoining property owner,
and a City bond.
Two Safe Routes to School (SRTS) projects began construction in 2014. Tukwila received federal funding
for the Thorndyke Elementary SRTS for safety improvements and to encourage walking and riding
bicycles. The Thorndyke SRTS Project includes adding a sidewalk on South 150th Street in conjunction
with previously planned surface water and overlay improvements. The drainage work was completed in
2014 and the final sidewalk and overlay work is scheduled for completion in 2015. Tukwila also received
State SRTS funding to construct a trail /path, from South 140th Street to 37th Avenue South, which serves
the Cascade View Elementary School. The Cascade View SRTS Project was substantially completed in
2014. The trail /path utilizes newly- acquired easements from the Tukwila School District and the Riverton
Park United Methodist Church. The SRTS funding also provided for an education and enforcement
aspect to be fulfilled by the Tukwila School District. The total budget for these two projects is $2.16 million.
The Tukwila South project comprises about 512 acres between South 180th Street and the City's
southern limits and is expected to become a major urban area in the Puget Sound region. The project is
estimated to bring 20,000 new jobs and 10 million square feet of office, technology and retail space to
the City. A new fire station will be built near the intersection of Southcenter Parkway and South 180th
Street.
In 2012, the City Council approved a development agreement with Tukwila Village Development
Associates for this major project on Tukwila International Boulevard at South 144th Street. Tukwila
Village will be home to a new King County Library, 400 apartments (including 320 for seniors), a Police
Neighborhood Resource Center, retail shops, and community plaza. Permits for the first three buildings
are in review and construction will start this summer. The addition of Tukwila Village is going to do much
to bring positive changes to this important part of our City and catalyze additional development along
Tukwila International Boulevard.
In 2015 the City completed the purchase of four motels adjacent or near to Tukwila Village in order to
reduce crime. The City will demolish the motels in 2015 and plans to seek a developer to further improve
the neighborhood.
In 2013, Council approved a development agreement for the former Circuit City site on Andover Park
East to allow a 19 -story building comprising 370 residential units and 180 hotel rooms. The Board of
Architecture Review approved the project design and the developers are preparing permit applications
and arranging financing. If constructed, this project will be the tallest building and the first high -rise
between Seattle and Tacoma.
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Outside of development, revenue growth is predicted to continue at a slow but steady rate. As expenses
outside of the City's control increase, such as pension plan contributions and contractual increases in
salaries and benefits, determining how resources will be distributed to meet expanding needs will remain
a challenge.
As Tukwila moves forward, economic conditions will be continually monitored and adjustments to City
spending and services made to maintain the City's financial health. Long -term plans will focus on
ensuring the City continues to remain economically strong and viable. Our Strategic Plan will help draw
on and enhance the strengths of individual neighborhoods and groups and build stronger relationships
with our stakeholders.
III. OTHER RELEVANT INFORMATION
A. INDEPENDENT AUDIT
State law requires an annual audit of all City books of accounts and financial records by the Office of the
State Auditor, which is headed by the independently elected State Auditor. The Auditor has broad legal
authority to inquire into all financial and legal compliance matters and such audits are considered equal
to audits by certified public accounting firms. The 2014 financial audit of the City is complete and was
conducted in conformance with Generally Accepted Auditing Standards. The financial statements of all
City funds have been included in this audit. The City has been given an unqualified opinion for 2014.
Please see the Auditor's Report. The State Auditor's Office also audits the City's administration of its
federal grants under the single audit concept. There were no instances of questioned costs as part of the
City's single audit for 2014.
B. MANAGEMENT DISCUSSION AND ANALYSIS
Accounting principles generally accepted in the United States of America require that management
provide a narrative introduction, overview and analysis to accompany the basic financial statements in
the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is designed to
complement the MD &A and should be read in conjunction with it. Tukwila's MD &A can be found
immediately following the independent auditor's report.
C. RELEVANT FINANCIAL POLICIES
In 2014, the City Council approved a revised debt policy. The debt policy and appropriate management
of debt issued by the City of Tukwila is an important factor in measuring the financial performance and
condition of the city. The City uses debt as a mechanism to equalize the costs of needed improvements
to both present and future citizens.
As part of the revised debt policy, the City will appoint a financial advisor for each debt issue and will also
be available to assist the City with all financing issues. The financial advisor will not serve as the
underwriter for the City's debt issues.
D. AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Tukwila for its
comprehensive annual financial report for the fiscal year that ended December 31, 2013. This was the
27th consecutive year that Tukwila has achieved this prestigious award. In order to be awarded a
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Certificate of Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
E. ACKNOWLEDGEMENTS
Preparation of this report could not have been accomplished without the professional, efficient, and
dedicated services of the entire staff of the Finance Department and the cooperation of other City
departments. Their long hours of assistance with the preparation and review of this report are greatly
appreciated. The Mayor, City Administrator and City Council are to be complimented for their
encouragement, interest, and support in conducting the financial operations of the City in a sound and
progressive manner. The efficient assistance of examiners from the Office of the State Auditor is also
appreciated. Staff who had a direct role in preparing Tukwila's 2014 Comprehensive Annual Financial
Report take great pride in their work, and the entire team who worked on this project is to be commended.
Respectfully submitted,
I-
Peggy McCarthy, CPA
Finance Director
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Tukwila
Washington
For its Comprehensive Annual
Finawidl Report
for the Fiscal Year landed
December 31, 2013
Exeiulive Directnrt LO
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1 0
Washington State Auditor's Office
INDEPENDENT AUDITOR'S REPORT ON FINANICAL STATEMENTS
July 27, 2015
Mayor and City Council
City of Tukwila
Tukwila, Washington
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund and the aggregate remaining fund information of the City of Tukwila, King
County, Washington, as of and for the year ended December 31, 2014, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements as listed in the
table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund
and the aggregate remaining fund information of the City of Tukwila, King County, Washington, as of
December 31, 2014, and the respective changes in financial position and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Matters of Emphasis
As described in Note 1, during the year ended December 31, 2014, the City has implemented the
Governmental Accounting Standards Board Statement No. 67, Financial Reporting for Pension Plans —
an amendment of GASB Statement No. 25. Our opinion is not modified with respect to this matter.
As discussed in Note 15 to the financial statements, the City has elected to change its method of valuation
of inventories in 2014. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages 15 through 29, budgetary comparison information on pages 99 through
100, pension trust fund information on pages 102 through 104 and information on postemployment
benefits other than pensions on pages 105 through 106 be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The accompanying information listed as combining and
individual financial statements and schedules on pages 108 through 139 is presented for purposes of
additional analysis and is not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the financial statements. This information has been subjected to auditing
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procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the financial statements or to the financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic
financial statements taken as a whole.
The information identified in the table of contents as the Introductory and Statistical Sections is presented
for purposes of additional analysis and is not a required part of the basic financial statements of the City.
Such information has not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we do not express an opinion or provide any assurance on it.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated July 24, 2015, on
our consideration of the City's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts and grant agreements and other matters. That
report will be issued under separate cover in the City's Single Audit Report. The purpose of that report is
to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City's internal control over financial reporting and compliance.
Sincerely,
JAN M. JUTTE, CPA, CGFM
ACTING STATE AUDITOR
OLYMPIA, WA
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MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2014
The discussion and analysis of the City of Tukwila's financial performance provides an overall review of the City's
financial activities for the year ended December 31, 2014. The intent of this discussion and analysis is to look at the
City's financial performance as a whole. Readers should also review the transmittal letter, and the basic financial
statements to enhance their understanding of the City's financial performance.
FINANCIAL HIGHLIGHTS
• Total net position, the amount by which total assets plus deferred outflow of resources exceed total liabilities
plus deferred inflow of resources, equals $292.0 million. A total of 85 percent or $248.8 million of total net
position is invested in capital assets such as streets, land, buildings, equipment, and other improvements.
The remaining net position of $43.2 million is available for debt service, capital projects, and to meet the
government's ongoing activities and obligations.
• The City's net position decreased by $15.5 million. Governmental activities decreased by $18.1 million, and
business -type activities increased by $2.6 million. The primary reason for the governmental decrease is due
to two prior period adjustments; an $11.6 million adjustment that removed previously capitalized overlay,
bridge inspection and other repair and maintenance costs from capital assets, and a $3.6 million valuation
adjustment that reduced Tukwila Village property to net realizable value. The business -type activities
increase is due primarily to fee increases to fund future capital projects.
• As of the close of the current fiscal year, the City of Tukwila's governmental funds reported combined ending
fund balances of $31.6 million, an increase of $7.8 million in comparison with the prior year. The increase is
attributable primarily to the $5.75 million reclassification of the Tukwila Village property to property held for
resale in the governmental funds from a capital asset in the government -wide Statement of Net Position.
• At the end of the current fiscal year, unassigned fund balance for the general fund was $10.1 million, or 22
percent of total general fund expenditures.
• The City of Tukwila's total outstanding long -term debt increased by $3.0 million during the current fiscal year.
This change is a combination of new debt issued in December for $3.9 million offset by principal payments
on existing debt, increases in compensated absences, and increases in other post - employment benefits.
USING THIS ANNUAL FINANCIAL REPORT
This annual report consists of a series of financial statements and notes to those statements. These statements are
organized so the reader can understand the City of Tukwila as an entire operating entity. The statements then
proceed to provide an increasingly detailed look at specific financial conditions.
The Statement of Net Position and Statement of Activities provide information about the activities of the whole City
presenting both an aggregate view of the City's finances and a longer -term view of those assets. Major fund financial
statements provide the next level of detail. For governmental funds, these statements tell how services were
financed in the short -term as well as what dollars remain for future spending. The fund financial statements also
look at the City's most significant funds with all other non -major funds presented in total in one column.
Overview of the Financial Statements
The City's basic financial statements are presented in three parts:
1) Government -wide financial statements
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2) Fund financial statements
3) Notes to the financial statements
Other supplementary information, in addition to the basic financial statements, is also contained in this report. This
section of the Management's Discussion and Analysis is intended to introduce and explain the basic financial
statements.
Government -wide Financial Statements
The government -wide financial statements are designed to be corporate -like in that all governmental and business -
type activities are consolidated into columns which add to a total for the City.
The focus of the Statement of Net Position is designed to be similar to bottom -line results for the City and its
governmental and business -type activities. This statement combines and consolidates governmental funds' current
financial resources (short -term spendable resources) with capital assets and long -term obligations. Over time,
increases or decreases in net position may be one indicator of improvement or deterioration in the City's overall
financial health.
The Statement of Activities is focused on both the gross and net cost of various functions, including both
governmental and business -type activities, which are supported by the City's general tax and other revenues. This
is intended to summarize and simplify the user's analysis of the cost of various governmental services and /or
subsidy to various business -type activities. The revenue generated by the specific functions (charges for services,
grants, and contributions) is compared to the expenses for those functions to show how much each function either
supports itself or relies on taxes and other general funding sources for support. All activity on this statement is
reported on the accrual basis of accounting, requiring that revenues are reported when they are earned and
expenses are reported when they are incurred, regardless of when cash is received or disbursed.
Governmental activities of the City include general government (executive, finance, legal, human resources, and
court), public safety, physical environment, economic environment, transportation, mental and physical health, and
culture and recreation. The City's business -type activities include a water and sanitary sewer utility, surface water
utility, and a municipal golf course. Governmental activities are primarily supported by taxes, charges for services,
and grants, while business -type activities are self - supporting through user fees and charges.
Fund Financial Statements
The fund financial statements are the traditional reporting format for governments. A fund is a fiscal and accounting
entity with a self - balancing set of accounts used to account for specific activities or meet certain objectives. While
the government -wide statements present the City's finances based on the type of activity (general government vs.
business type), the Fund Financial Statements are presented by fund type, such as the general fund, special
revenue funds and proprietary funds, with the focus on major funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions that are reported as governmental
activities in the government -wide financial statements. The governmental major fund presentation is used, utilizing
the current financial measurement focus and the modified accrual basis of accounting. This is the manner in which
the budget is typically developed. The basis of accounting is different between the governmental fund statements
and the government -wide financial statements. The governmental fund statements focus on the near -term
revenues /financial resources and expenditures while the government -wide financial statements include both near -
term and long -term revenues /financial resources and expenditures. The information in the governmental fund
statements can be used to evaluate the City's near -term financing requirements and immediate fiscal health.
Comparing the governmental fund statements with the government -wide statements can help the reader better
understand the long -term impact of the City's current year financing decisions.
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Because the basis of accounting is different between the governmental fund statements and the government -wide
financial statements, reconciliations are provided. The reconciliation between the governmental fund Balance
Sheets and the government -wide Statement of Net Position is found on the page following the governmental funds'
Balance Sheet, while the reconciliation between the governmental fund Statement of Revenues, Expenditures and
Changes in Fund Balance and the government -wide Statement of Activities is found directly following the
governmental funds' Statement of Revenues, Expenditures, and Changes in Fund Balance.
The City maintains twenty individual governmental funds. Of these, five are considered major (the general fund,
the arterial street fund, the local improvement district #33 fund, the metropolitan park district fund, and facilities
(urban renewal) fund) and are presented separately in the governmental funds' Balance Sheet and the
governmental funds' Statement of Revenues, Expenditures and Changes in Fund Balances. The remaining
governmental funds are combined into a single column labeled "Other Governmental Funds." Individual fund data
for each of the other governmental funds can be found in the combining statements later in this report.
The City maintains budgetary control over its operating funds through the adoption of a biennial budget. Budgets
are adopted at the fund level according to state law. Budgetary comparison schedules are presented for the general
and major special revenue funds in the "Required Supplemental Information" section of the report. Other budgetary
comparison schedules are included following the other governmental funds' combining statements in this report.
Proprietary Funds
Proprietary funds are used by governments to account for their business -type activities and use the same basis of
accounting as utilized in private industry. Business -type activities provide specific goods or services to a group of
customers that are paid for by fees charged to those customers. There is a direct relationship between the fees
paid and the services rendered.
The City has two types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used
to account for goods and services provided to citizens, while internal service funds are used to account for goods
and services provided internally to various City departments.
Enterprise funds report the same functions presented as business -type activities in the government -wide
statements, but in greater detail. The City's enterprise fund statements provide information on the City's three
utilities (water, sanitary sewer, surface water) as well as the City -owned golf course.
Internal service funds are an essential accounting tool used to accumulate and allocate costs internally among the
City's various functions. The City uses internal service funds to account for its fleet of vehicles, and its insurance
prem iums.
Fiduciary Funds
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private
organizations, other governments or other funds. Fiduciary funds are not included in the government -wide financial
statements because their assets are not available to support the City's activities.
The City has two fiduciary funds: a firemen's pension trust fund and an agency fund, which are accounted for on
the accrual basis. As agency funds are custodial in nature, they do not include revenues and expenses.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government -wide and fund financial statements. The notes to the financial statements can be found at the end of
the Basic Financial Statements section.
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Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information including budget and actual schedules for the City's general fund and, budgeted
major /non -major special revenue funds; and a schedule of funding progress for the Firemen's Pension Trust Fund
and other post - employment benefits. Additional pension benefit information is found in Note 9.
The combining statements referred to earlier in connection with non -major governmental funds and internal service
funds are presented in the section titled "Fund Financial Statements and Schedules."
Government -wide Financial Analysis
The Statement of Net Position can serve as a useful indicator of the City's financial position. The City of Tukwila's
net position at December 31, 2013 and 2014 totaled $307.5 million and $292.0 million respectively. The City's
overall net position decreased $15.5 million, or 5.0 %, from the prior fiscal year. The reasons for the overall decrease
are discussed in the following sections for governmental activities and business -type activities.
By far, the largest portion of the City's net position of $249 million, or 85.2% reflects investment in capital assets
(e.g., land, building, machinery, equipment, vehicles, and infrastructure), less any related outstanding debt that was
used to acquire those assets. The City uses these capital assets to provide a variety of services to citizens.
Accordingly, these assets are not available for future spending. Although investment in capital assets is reported
net of related debt, it should be noted that the resources used to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of
the City's net position, $4.4 million, or 1.5% represents resources that are subject to external restrictions on how
they may be used. The remaining balance of $38.8 million, or 13.3% is unrestricted and may be used to meet the
City's ongoing obligations to its citizens and creditors.
Following is a condensed version of the government -wide Statement of Net Position for 2014 compared to 2013.
CITY OF TUKWILA NET POSITION
(in thousands)
Governmental Activities Business -type Activities Total
As of 12/31/14 As of 12/31/13 As of 12/31/14 As of 12/31/13 As of 12/31/14 As of 12/31/13
Current and other assets $63,671 $57,557 $15,562 $14,603 $79,233 $72,160
Capital assets, net of
accumulated depreciation 203,975 223,051 66,036 65,140 270,011 288,190
Total assets 267,646 280,608 81,598 79,742 349,244 360,350
Deferred Outflows of Resources
Long -term liabilities
Other liabilities
Total liabilities
Deferred Inflows of Resources
457 524
457 524
40,049 32,437 8,665 1,058 48,714 33,496
7,385 10,057 985 9,333 8,371 19,391
47,434 42,495 9,650 10,392 57,085 52,887
604 515 - 604 515
Net position
Net investment in
capital assets 191,081 207,660 57,678 55,956 248,759 260,606
Restricted 3,974 3,480 430 430 4,404 3,910
Unrestricted 25,009 26,981 13,840 12,965 38,849 42,955
Total net position $220,064 $238,121 $71,948 $69,351 $292,012 $307,472
The governmental unrestricted net position comprises $25.0 million. The general fund unrestricted net position is
available for functions such as public safety employee salaries and supplies, park and road maintenance, and other
general government services. The unrestricted net position of business -type activities, $13.8 million, may only be
spent on activities related to one of the three City utilities (water, sewer, and surface water) or on the golf course
18
activities. Examples of utility activities include: maintenance of water /sewer mains, pump and lift stations, storm
drain flushing, and water meter reading.
The $6.1 million increase in current and other assets for governmental activities stems primarily from the $5.75
million of Tukwila Village property that was transferred into the governmental funds as an asset held for investment.
This asset had previously been classified as a capital asset in the government -wide Statement of Net Position. The
increase of $1.0 million in current and other assets for business -type activities is comprised of a net increase of
$808 thousand in cash and investments. This increase results from a rate structure design in the utility funds that
build reserves for major infrastructure replacement and improvement.
Changes in Net Position
The change in net position represents the increase or decrease in City net position resulting from its various
activities.
Following is a condensed version of the City's changes in net position. The table shows the revenues, expenses
and related changes in net position for both governmental -type and business -type activities:
CITY OF TUKWILA CHANGES IN NET POSITION
(in thousands)
Governmental Activities Business -type Activities Total
2014 2013 2014 2013 2014 2013
Revenues:
Program revenues
Charges for services $8,554 $6,213 $19,884 $18,464 $28,438 $24,676
Operating grants and contributions 2,563 3,290 2,563 3,290
Capital grants and contributions 8,053 16,948 1,548 339 9,602 17,286
General revenues
Property taxes 14,871 14,510 - - 14,871 14,510
Sales and use taxes 17,105 16,316 17,105 16,316
Natural gas use tax 0 204 0 204
Hotel /Motel taxes 597 527 597 527
Utility taxes 3,856 3,880 3,856 3,880
Interfund utility taxes 1,851 1,687 1,851 1,687
Business taxes 2,556 2,570 2,556 2,570
Excise taxes 3,513 2,745 3,513 2,745
State entitlements 1,736 1,862 1,736 1,862
Investment earnings 444 102 - - 444 102
Miscellaneous 179 305 - 179 305
Total revenues 65,878 71,159 21,432 18,803 87,310 89,962
Expenses:
General government 10,289 10,195 10,289 10,195
Public safety 29,293 25,939 29,293 25,939
Transportation 11,668 7,658 11,668 7,658
Physical environment 2,480 2,611 - 2,480 2,611
Culture and recreation 5,716 5,635 5,716 5,635
Economic environment 5,337 5,210 5,337 5,210
Interest on long -term debt 1,205 1,039 - 1,205 1,039
Water /sewer 12,752 10,421 12,752 10,421
Foster golf course 1,946 1,708 1,946 1,708
Surface water 3,311 2,563 3,311 2,563
Total expenses 65,987 58,287 18,009 14,692 83,996 72,979
Increase (decrease) in net position before transfers -109 12,872 3,423 4,110 3,315 16,983
Transfers -600 1,061 600 -1,061 0 0
Change in net position before special item -709 13,933 4,023 3,050 3,315 16,983
Special Item -1,995 0 0 0 -1,995 0
Change in net position -2,704 13,933 4,023 3,050 1,320 16,983
Net position- beginning of period 238,121 227,888 69,351 64,354 307,472 292,242
Change in accounting principle 0 -250 -557 -67 -557 -316
Prior Period Adjustment - 15,353 -3,450 -870 2,014 - 16,223 -1,436
Net position- beginning balance, as restated 222,768 224,189 67,924 66,301 290,693 290,489
Net position -end of period $220,064 $238,121 $71,948 $69,351 $292,012 $307,472
Restated for current year classifications
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Governmental Activities
Governmental activities ended the year with an $18.1 million decrease in the City's net position. Revenues to fund
capital assets are recorded as program or general revenues in the statement of activities. However, asset
purchases are not recorded as expenses in the year purchased and construction costs are not recorded as
expenses in the year incurred. Instead, the costs are recorded as long -term assets and are depreciated over their
useful life.
The primary reason net position decreased was due to prior period adjustments of $15.4 million. The prior period
adjustments are as follows:
• Valuation reduction of Tukwila Village properties held for resale by $3.6 million.
• Removal of $11.6 million of previously capitalized repair and maintenance costs from capital assets. Costs
include overlay, bridge inspection and other miscellaneous project costs.
A special item representing the 2014 urban renewal motel purchase $1.9 million valuation reduction also reduced
net position.
Revenues from governmental activities decreased $5.3 million from 2013 activity. The components and explanation
of the decrease follows.
• Charges for services increased $2.3 million or 37.7 %in 2014. The annual contract with Seattle City Light
for $2.2 million was reclassified from an operating grant to a charge for service. Additionally, general
charges for services have increased city -wide, and $212 thousand was received as reimbursement for
assisting at the Oso landslide clean up.
• Operating grants decreased by $726 thousand or 22.1 % primarily due to the $2.2 million reclassification of
the Seattle City Light contract to charges for services offset by an increase in operating grants, especially
the $1 million received for the East Marginal Way overlay project and the $335 thousand received from the
Department of Homeland Security for Fire Department radio replacement.
• Capital grants and contributions decreased $8.9 million or 52.5 %. In 2013, the City recognized $9.5 million
in special assessment revenue to reimburse the City for costs related to the Klickitat urban access project.
This transaction was specific to 2013. Also specific to 2013, the City received $5.4 million of donated assets
from private contributors. The reduction due to one -time revenue is offset by an increase in federal and
state grant revenue received for regional mobility projects.
• Sales and use taxes category increased $789 thousand primarily due to an overall increase in wholesale
trade activity of $485 thousand and services activity of $286 thousand.
• Excise taxes increased $767 thousand primarily due to gambling excise taxes. Casinos in the City showed
increases in activity in 2014 over 2013.
Total governmental expenses increased by $7.6 million. Public safety costs increased by $3.4 million. The City
implemented programs in the Police Department to reduce crime in the Tukwila International Boulevard urban
renewal area. Additionally, Fire Department costs were above normal in 2014 due to participating in the Oso
landslide emergency. Transportation increased $4 million due to an increase in Arterial Street road projects
including $3.0 million in overlay and other roadway repair..
Additional information on the special item and prior period adjustment can be found in Note 16 and Note 15,
respectively, to the financial statements.
The next chart summarizes the governmental activity revenue by source, while the second one reflects the specific
program revenues and related expenses for the various activities of the City. Gaps between specific program
revenues and their related expenses are funded through general tax revenues.
20
Revenues by Source - Governmental Activities
Utility taxes
9%
Other taxes
10%
Other revenue
4%
Charges for services
13%
Operating grants &
contributions
4%
Sales and use taxes
26%
Capital grants &
contributions
12%
Property taxes
22%
Program Revenues and Expenses - Governmental Activities
$30,000,000
$27,000,000
$24,000,000
$21,000,000
$18,000,000
$15,000,000
$12,000,000
$9,000,000
$6,000,000
$3,000,000
$0
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21
O Program revenues
• Expenses
Business -Type Activities
Business -type net position increased by $2.6 million during 2014. Key components of this increase include:
• A change in accounting principal to expense supplies and small tools that had previously been reported as
inventory resulted in a decrease to net position of $557 thousand. This is reflected in the Statement of
Activities as a Change in Accounting Principle.
• A prior period adjustment of $870 thousand also resulted in a decrease to net position. The adjustment
was a result expensing assets that had previously been reported as construction on progress.
• $1.4 million or a 7.7% increase in charges for services primarily due to utility rate increase effective January
2014, and water and sewer hook -up fees on new construction.
• Income before capital contributions and transfers amounted to:
o Water fund: $ 328,499
o Sewer fund: 1,228,321
o Foster golf course fund: (539,350)
o Surface water fund: 527,598
$ 1,875,068
The following chart shows the relative net position balances for each business -type fund:
Business -Type Net Position - By Fund
Foster golf
course
11%
Surface water
45%
Sewer
19%
Water
25%
The majority of net position in the City's enterprise funds relate to capital asset infrastructure, such as water and
sewer mains, and the golf course land. As such, most of the net position is not available to support the ongoing
22
expenses of the funds. The following chart contrasts the total net position to the spendable portion of net position
for each enterprise fund:
Comparison of Total Net Position to Spendable Net Position
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
Business -Type Funds
• Spendable /Unrst Net Position
• Total Net Position
$0
Water
Sewer
Surface water Foster golf course
The following chart depicts the revenues and expenses for business -type funds:
$10,000,000
$8,000,000
$6,000,000
$4,000,0W
$2,000,000
$0
Business -type Activity Revenues and Expenses
Before Capital Contributions and Transfers
1
Water Sewer Surface Water Foster Gdf Course
23
❑ Revenues
• Expenses
Financial Analysis of Governmental Funds
The purpose of the City's governmental funds is to report on near -term revenues /financial resources and
expenditures. This information helps determine the City's financial requirements in the near future. Specifically,
the fund balance is a good indicator of the City's financial resources.
As of December 31, 2014, the City's governmental funds had combined fund balances of $31.6 million, an increase
of $7.8 million or 33 %. The increase is primarily due to a prior period adjustment in the Facilities — Urban Renewal
fund. Property held as capital assets were reclassified as assets held as investments.
The change in prior year fund balances for other major funds are as follows:
• General fund $210,564
• Arterial Street fund 279,977
• Local Improvement District No. 33 1,042,024
• Tukwila Metropolitan Park District 205,957
• Facilities — Urban Renewal 6,403,851
• Other governmental funds (295,945)
The Local Improvement District No. 33 fund increased because the first of fifteen annual assessment installments
was due in October 2014. Bond payment associated with the assessments is not made until January of the following
year.
Other major governmental funds remained stable, with moderate increases in total fund balance. Of the non -major
governmental funds, special revenue funds decreased $153 thousand and capital projects funds decreased $140
thousand.
Of the governmental fund balances $7.4 million is nonspendable for capital assets held for resale and $1.5 million
is nonspendable for outstanding notes receivable owed to the City from the Tukwila Metropolitan Park District.
Restricted fund balances constrained for a specific purpose by external parties or enabling legislation consist of
$575,844 for tourism, $832,875 for residential street improvements, $287,846 for arterial street improvements,
$61,787 for drug seizure, $504,500 for fire improvements, and $1,710,873 for debt service. Assigned fund balances
intended to be used for specific purposes consist of $1,087,666 for arterial streets, $936,453 for facilities -urban
renewal, $4,955 for debt service, $331,418 for residential street improvements, $184,335 for land acquisition,
recreation and park development, $414,133 for general government improvements, $350,000 for public safety
equipment and $5,421,471 for contingencies.
The general fund is the primary operating fund of the City. All receipts and payments of ordinary City operations
are processed through this fund unless they are required to be accounted for in another. At the end of 2014, the
general fund had an unassigned fund balance of $10.1 million.
24
1
The following chart shows the relative fund balances for governmental funds:
General fund
67%
Governmental Funds — Fund Balances
Arterial street fund
5%
Land acq, rec & park
improvement funds
0%
LID Guarantee Fund
4%
Metropolitan Park
District
-5%
Capital project funds
13%
Special revenue funds
3%
Debt service funds
3%
The general fund revenue increase of $2.7 million came from the following sources:
51,800,000
$1,600,000
51,400,000
$1,200,000
51,000,000
$800,000
5600,000
$400,000
5200,000
$o
General Fund Revenue I ncreases / (Decreases) - By Source
Taxes
51,603,136
Intergovernmental
5588,278
Cha rges for servi ces
5351,383
Licenses and permits
$100,763
■
25
Fi nes a nd forfeitures
522,296
Investment earnings
$22,806
Miscellaneous
$34,361
Financial Analysis of Proprietary Funds
The City's proprietary funds provide the same type of information as found in the government -wide financial
statements, but in greater detail. Factors affecting the finances of the City's proprietary funds have already been
addressed in the discussion of the City's business -type activities.
General Fund Budgetary Highlights
The City budgets biennially by adopting a budget at the end of the preceding biennium, and then making
adjustments as necessary via budget amendments throughout the next two years. Following is a summary of such
budget amendments that occurred in 2014:
Net Expenditure increases:
Purchase 2 SANS servers, one replacement, one backup $70,000
Additional budget for software enhancements for the Court 50,000
Additional budget for LEOFF 1 retiree healthcare 564,000
Budget adjusted for response assistance to Oso landslide 259,600
Adjust budget to account for grant funding received for emergency 335,000
radios
Net Revenue Increase:
Grant received 133,000
OSO Reimbursement 170,000
Grant received to purchase 800 MHz radios 335,000
Increase in sales tax revenue 600,000
Reasons for the significant variances in the general fund between the final budget and actual results include:
• Revenue from taxes were $1.3 million, or 5 %, higher than budget. Property taxes increased $360 thousand
and sales tax increased $584 thousand. In addition, there was a gain of 27 percent, or $600 thousand in
gambling taxes.
• Licenses and permits were $168 thousand, or 8.6 %, above budget due to an increase in number of
businesses that operated in the City during 2014 and an increase in permit revenue.
• Expenditures were below budget by $761 thousand, or 1.6 %. Transportation costs were lower than
expected due to the timing of capital outlay on projects that were delayed or where completion timelines
extended. Not all budgeted capital items were purchased in 2014.
Capital Asset and Debt Administration
Capital Assets
The City's investment in capital assets for both its governmental and business -type activities as of December 31,
2014 totaled $270 million (net of accumulated depreciation), a decrease of $18.2 million, or 6.3 %, from 2013. This
investment in capital assets includes land, buildings, improvements, machinery and equipment, construction in
progress, utility transmission /distribution systems, roads, bridges, and other infrastructure.
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SUMMARY OF CAPITAL ASSETS (NET OF DEPRECIATION)
Land
Construction in Progress
Buildings
Other Improvements
Machinery and Equipment
Infrastructure
Total
Governmental Activities Business -Type Activities Total
As of 12/31/14 As of 12/31/13 As of 12/31/14 As of 12/31/13 As of 12/31/14 As of 12/31/13
$ 35, 312, 814 $ 42, 961, 328 $ 2,346,231 $ 2,237,759 $ 37, 659, 045 $ 45,199, 087
16, 718, 203 10, 483, 961 4,200,272 3,104, 261 20, 918, 475 13, 588, 222
13,810,448 14,466,801 9,397,907 8,947,243 23,208,355 23,414,044
6,775,474 7,587,916 49, 607, 584 50, 348, 041 56, 383, 058 57, 935, 957
6,841,516 5,938,946 484,324 502,211 7,325,840 6,441,157
124,516,494 141,611,727 124,516,494 141,611,727
$203,974,948 $223,050,679 $66,036,318 $65,139,514 $270,011,266 $288,190,192
More detailed information on capital assets is provided in Note 7 to the financial statements.
General capital outlay purchases added $421,933 in machinery and equipment and included various computer
equipment purchases in the amount of $90,626, closed circuit TV street monitoring equipment for $8,498, Seattle
Southside Visitor Center back wall unit in the amount of $14,533, and Police Department surveillance equipment
and Fire Department mobile communications radios totaling $308,276.
Many of the remaining projects in the Arterial Street Fund continue to be in the construction phase adding nearly
$8.3 million in construction -in- progress for the period. The major arterial street fund activities are comprised of the
following:
• Tukwila Urban Center (TUC) Transit Center, $4,009,647
• Interurban Avenue South, $1,591,193
• Andover Park West, $1,248,908
• Boeing Access Road Bridge Rehabilitation, $579,199
• Various other Arterial Street Fund projects total $853,790
Ongoing Residential Street fund construction projects added $1.0 million to construction -in- progress and include
the following:
• Thorndyke Safe Routes to School, $405,508
• 40 — 42nd Ave S, $299,918
• Cascade View Safe Routes to School, $282,883
• 42nd Ave S Roadside Barriers, $50,727
Land Acquisition, Recreation & Park Development activities consist of $247,936 for the Duwamish Gardens and
Duwamish Hill Preserve work in progress improvements.
Other governmental funds' activity in the area of facilities improvements provided an additional $139,277 to work in
progress costs for the year.
Business -type activities consisted of $4.0 million in added construction in progress work for the year. Major projects
in the utility funds comprise of the following:
• East Marginal Way S Pipe, $1.18 million
• Andover Park West/Strander, $950,778
• Interurban Ave S, $749,793
A total of $1 million in other ongoing utility construction projects were added to construction -in- progress during the
current period.
27
Long -term Debt
At the end of the current fiscal year, the City had total bonded debt outstanding of $19,218,221. Of this amount,
$16,638,221 is general obligation bonds, and $2,580,000 is revenue bonds for the water /sewer and surface water
utilities. The increase in outstanding bonds is due to the principal payments redeemed for the year netted against
new debt of $3.9 million issued in 2014. The City currently maintains a rating of AA with Standard and Poor's, AA-
with Fitch's Investor Service and Al with Moody's for its general obligation debt. The City also has $6.7 million in
special assessment debt.
The following schedule summarizes the City's bonded debt:
SUMMARY OF BONDED DEBT
Governmental Activities Business -type Activities Total
As of 12/31/14 As of 12/31/13 As of 12/31/14 As of 12/31/13 As of 12/31/14 As of 12/31/13
General obligation bonds $ 16,638,221 $ 14,706,009 $ - $ - $ 16,638,221 $ 14,706,009
Revenue bonds - - 2,580,000 3,075,000 2,580,000 3,075,000
$ 16,638,221 $ 14,706,009 $ 2,580,000 $ 3,075,000 $ 19,218,221 $ 17,781,009
Other
Special assessment bonds
$ 6,687,500 $ 6,687,500 $
$
- $ 6,687,500 $ 6,687,500
ADDITIONAL LONG -TERM DEBT
Other long term debt
Governmental Activities
Business -type Activities Total
As of 12/31/14 As of 12/31/13 As of 12/31/14 As of 12/31/13
As of 12/31/14 As of 12/31/13
Public Works Trust Fund Loans
Other Post Employment Benefits
Net Pension Liability
Employee leave benefits
Due to other governments
$
5,341,973
427,903
3,740,161
6,650,400
$ 16,160,437
$
4,561,781
$ 5,742,867
3,337,967 306,441
7,021,600
$ 14, 921, 348 $ 6,049,308
$ 6,063,071
319,303
$ 6,382,374
$ 5,742,867
5,341,973
427,903
4,046,602
6,650,400
$ 22,209,745
$ 6,063,071
4,561,781
3,657,270
7,021,600
$ 21,303,721
More detailed information on long -term debt is provided in Note 11 to the financial statements.
Economic Factors
The outlook for 2015 is positive. The economy in King County is showing steady signs of recovery. The City of
Tukwila has a small residential population, yet the City serves the regional economy and has become an economic
powerhouse, providing jobs and revenue for the region and state. Several major pending developments will have
significant impacts on the future of Tukwila's economy:
• Projects planned within Tukwila include a 19 -story combination hotel and apartments; a four -story extended
stay hotel, and a warehouse conversion into retail and covered parking. Additionally, several tenant
improvements to existing structures will increase property values, therefore increasing property tax revenue
in future years.
• Tukwila Village - The City has approved the building permit for the library and a grading permit for the entire
site. The City is reviewing building permit applications for an apartment building with ground floor retail, a
building with a cafe and meeting room, and two senior apartment buildings with office. Construction on the
28
first two buildings will start in summer 2015 with the first buildings schedule to open in late 2016. The last
building is scheduled to open in 2018.
• The newly completed Tukwila Transit Center on Andover Park West provides a safer, expanded, high -
quality bus stop with shelters, larger bus pullouts, and improved lighting, sidewalks and landscaping.
Construction of the new Tukwila Sounder commuter rail station was also completed in 2014 and includes
improved walkways for pedestrians and bicyclists. The Sounder Station serves Sound Transit commuter
riders. Both transit stations, along with Sound Transit's Light Rail station at Tukwila International Boulevard,
offer a great travel option for our residents and people coming into Tukwila to work, shop or visit.
• The City of Tukwila has an extensive rehabilitation program in the Sewer Fund for the Commercial Business
District. As the sewer mains are reaching their 50 -year life span, the City has budgeted over $1 million in
each of the next 5 years to reline the asbestos concrete pipes in the Southcenter area. The relining of the
sewer pipes will reinforce the strength with little impact to the roadway and minimal excavation.
• Tukwila was also awarded $5.2 million in December 2014 for major maintenance on three City bridges that
include seismic retrofit, deck and joint repair, and painting. This work will preserve the City -owned
infrastructure and extend the service lives of the bridges. Aging infrastructure is a nationwide problem that
the City of Tukwila takes very seriously, and we are actively trying to mitigate the impacts while remaining
fiscally conservative. The receipt of this Federal bridge funding is an example of the City's commitment to
prudent fiscal management.
• Urban Renewal - Safety along Tukwila International Boulevard is a major concern for the City. Reducing
crime was the City's highest priority for 2013 and 2014, with an emphasis on Tukwila International
Boulevard. Certain areas along Tukwila International Boulevard have long been identified as "hot spots,"
where a large amount of serious crime occurs. In early 2013 the Tukwila Police Department evaluated crime
for all commercial properties in the City's community renewal area and recommended the City purchase
certain properties in order to reduce crime. The City has since purchased four motels. Three, in 2014, from
the US Attorney's Office after a year -long criminal investigation and seizure of the properties. A fourth motel
was purchased in 2015 after threat of condemnation and subsequent negotiation with the owner. In 2015
the City will demolish the motels and prepare the properties for revitalization. As a result of these actions
and a significantly decreased crime rate the city's police force has placed more resources into the
residential areas and focused on other "hot spots" within the city.
Requests for Information
This financial report is designed to provide a general overview of the City of Tukwila's finances for readers with an
interest in the City's finances. Questions concerning this report, or requests for additional information, may be
addressed to the Finance Director, City of Tukwila, 6200 Southcenter Blvd, Tukwila, WA 98188 -2544.
29
30
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET POSITION
DECEMBER 31, 2014
Primary Government
Governmental Business -Type
Activities Activities
Total
ASSETS:
Cash and cash equivalents $ 22,770,449 $ 10,420,332 $ 33,190,780
Investments 7,955,406 2,098,901 10,054,307
Receivables:
Taxes 5,380,469 97 5,380,566
Customer accounts 791,720 1,568,975 2,360,695
Interest 77,267 - 77,267
Due from other governmental units 2,769,253 562,972 3,332,225
Inventory of materials and supplies 14,971 57,821 72,791
Restricted cash and cash equivalents 308,900 514,125 823,025
Notes receivable 5,527,223 338,621 5,865,844
Real property held for resale 7,370,000 7,370,000
Investment in joint ventures 10,705,153 - 10,705,153
Non - depreciable capital assets 52,031,017 6,546,502 58,577,519
Depreciable capital assets (net of accumulated
depreciation) 151,943,933 59,489,815 211,433,748
Total Assets 267,645,759 81,598,160 349,243,919
DEFERRED OUTFLOWS OF RESOURCES:
Deferred loss on refunding 457,487 457,487
Total Deferred Outflows Of Resources 457,487 457,487
LIABILITIES:
Accounts payable 2,290,985 658,051 2,949,036
Accrued wages and benefits payable 1,503,803 109,638 1,613,441
Accrued interest payable 386,861 76,842 463,703
Unearned revenue 217,453 14,612 232,065
Other liabilities 2,986,395 126,284 3,112,679
Bonds and other debt payable
Due w ithin one year 2,645,707 1,107,749 3,753,456
Due in more than one year 37,403,206 7,557,246 44,960,452
Total Liabilities 47,434,410 9,650,423 57,084,833
DEFERRED INFLOWS OF RESOURCES:
Business taxes received in advance 604,437 - 604,437
Total Deferred Inflow s Of Resources 604,437 604,437
NET POSITION:
Net investment in capital assets 191,081,461 57,677,764 248,759,226
Restricted for:
Debt service 1,710,873 430,444 2,141,317
Tourism promotion 575,844 - 575,844
Residential street improvements 832,875 - 832,875
Arterial street improvements 287,846 287,846
Drug investigation and enforcement 61,787 - 61,787
Fire improvements 504,500 - 504,500
Unrestricted net position 25,009,212 13,839,529 38,848,741
Total Net Position $ 220,064,400 $ 71,947,737 $ 292,012,138
The notes to the financial statements are an integral part of this statement.
31
Total Business -Type Activities
Total Primary Government $ 83,995,769 $ 28,438,140 $ 2,563,002 $ 9,601,715 $ (46,816,260) $ 3,423,348 $ (43,392,912)
18, 008, 631 19, 883, 699
1,548,280
3,423,348 3,423,348
CITY OF TUKWILA, WASHINGTON
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2014
Primary Government
-- Expenses --
Program revenues --Net Expense (Revenue) and Changes in Net Position--
Charges Operating Capital Grants Governmental Business -Type Total
For Services Grants and and Activities Activities
Contributions Contributions
FUNCTIONS / PROGRAMS:
PRIMARY GOVERNMENT
Governmental activities
General Governenmt $ 10,289,399 $ 3,858,862 $ 150,410 $ - $ (6,280,126) $ (6,280,126)
Public safety 29,292,587 970,594 1,261,285 66,862 (26,993,846) (26,993,846)
Transportation 11,668,098 196,506 993,308 7,838,976 (2,639,307) (2,639,307)
Physical environment 2,479,533 8,425 (2,471,108) (2,471,108)
Culture and recreation 5,716,091 726,869 105,354 147,597 (4,736,271) (4,736,271)
Economic environment 5,336,659 2,793,185 52,644 (2,490,831) (2,490,831)
Interest on long -term debt 1,204,771 (1,204,771) (1,204,771)
Total Governmental Activities 65,987,138 8,554,441 2,563,002 8,053,435 (46,816,260) (46,816,260)
BUSINESS -TYPE ACTIVITIES:
Water 5,669,082 5,997,581 122,740 451,239 451,239
Sewer 7,083,043 8,311,364 261,745 1,490,066 1,490,066
Surfacewater 3,310,716 4,168,313 - 1,163,795 - 2,021,393 2,021,393
Foster golf course 1,945,789 1,406,440 - (539,350) (539,350)
General Revenues:
Taxes
Property taxes $ 14,870,621 $ - $ 14,870,621
Retail sales and use taxes 17,105,322 17,105,322
Hotel /motel taxes 596,781 - 596,781
Utility taxes 3,855,544 3,855,544
Interfund utility taxes 1,851,013 1,851,013
Business taxes 2,555,999 2,555,999
Excise Taxes 3,512,894 3,512,894
State entitlements 1,735,637 1,735,637
Unrestricted investment earning 444,282 444,282
Miscellaneous 179,394 179,394
Transfers (600,000) 600,000
Total General Revenues and Transfers 46,107,488 600,000 46,707,488
Change In net position before Special Item (708,772) 4,023,348 3,314,576
Special item (1,995,000) (1,995,000)
Change in net position (2,703,772) 4,023,348 1,319,576
Net position - beginning 238,121,495 69,350,576 307,472,071
Change in accounting principle - (556,539) (556,539)
Prior period adjustment (15,353,323) (869,647) (16,222,970)
Net position- beginning restated 222,768,172 67,924,390 290,692,562
Net position- ending $ 220,064,400 $ 71,947,737 $ 292,012,138
The notes to the financial statements are an integral part of this statement.
32
Total Fund Balance (Deficit) 17,496,550 1,375,512 1,042,024 (1,360,218) 8,306,453 4,696,539 31,556,861
Total Liabilities, Deferred Inflow s And
Fund Balances $ 20,875,567 $ 2,877,843 $ 7,028,629 $ 404,346 $ 8,473,366 $ 5,029,641 $ 44,689,392
CITY OF TUKWILA, WASHINGTON
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2014
Local Metropolitan Other Total
General Arterial Improvement Park Facilities Governmental Governmental
Fund Street District #33 District Funds Funds
ASSETS:
Cash and cash equivalents $ 10,497,806 $ 172,742 $ 1,013,693 $ 403,130 $ 1,103,366 $ 4,581,844 $ 17,772,581
Investments 2,993,995 - - - - - 2,993,995
Receivables:
Taxes 5,239,186 23,430 - - 117,852 5,380,469
Customer accounts 231,586 - - 1,216 95,679 328,481
Current assessment - 487,713 - - 487,713
Interest 4,681 - - 4,681
Interfund loan receivable 205,847 - - 205,847
Due from other governmental units 162,213 2,393,825 213,215 2,769,253
Restricted assets:
Cash and cash equivalents 287,846 - 21,054 308,900
Special assessment receivable - 5,527,223 - 5,527,223
Advances to other funds 1,540,253 1,540,253
Real property held for resale - 7,370,000 7,370,000
Total Assets $ 20,875,567 $ 2,877,843 $ 7,028,629 $ 404,346 $ 8,473,366 $ 5,029,643 $ 44,689,394
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES:
Liabilities:
Accounts payable 635,223 1,268,717 4,123 66,913 296,572 2,271,547
Accrued wages & benefits 1,431,671 19,517 11,791 22,070 1,485,049
Unearned revenue 214,903 - 2,550 - 217,453
Interfund loan payable - - 205,847 - 205,847
Other liabilities 100,534 214,098 - 100,000 14,459 429,091
Advances from other funds - - 1,540,253 1,540,253
Total Liabilities 2,382,331 1,502,331 - 1,764,564 166,913 333,101 6,149,240
Deferred inflow of resources
Unavailable revenue - special assessment - 5,986,605 - 5,986,605
Business taxes received in advance 604,437 - - 604,437
Unavailable revenue - property tax, other 392,250 - - 392,250
Total Deferred Inflow Of Resources 996,687 5,986,605 6,983,291
Fund balance (deficit):
Nonspendable 1,544,022 7,370,000 - 8,914,022
Restricted - 287,846 1,042,024 2,643,855 3,973,726
Assigned for:
Arterial street improvements 1,087,666 - - 1,087,666
Contingencies 5,421,471 - 5,421,471
Land & park acquisition - 1,302,180 1,302,180
Facilities & urban renewal - - 936,453 - 936,453
General government improvements 414,133 414,133
Residential street improvements - - - - 331,418 331,418
Riblic safety equipment 350,000 - - - - 350,000
Debt service - - 4,953 4,953
Unassigned 10,181,057 - - (1,360,218) - - 8,820,839
The notes to the financial statements are an integral part of this statement.
33
CITY OF TUKWILA, WASHINGTON
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2014
Total
Governmental
Funds
Total governmental fund balances as reported on this statement $ 31,556,861
Capital assets used in governmental activities are not financial resources and therefore not reported in the
funds.
Non - depreciable assets
Depreciable assets (net)
Internal service fund assets
52,031,017
147,705,870
4,238,063
203,974,950
The City has an equity interest in two joint ventures. This equity interest for the provision of governmental services
is not a current financial resource and therefore is not reported in the funds. 10,705,153
Revenue that was not collected witin the recognition period and therefore was not available to pay current liabilities:
Unavailable revenue reported for property tax and other receivables
Unavailable revenue reported for special assessment
Some liabilities are not due and payable in the current period and therefore are not reported in the funds.
Long term liabilities due within one year
Long term liabilities due in more than one year
Accrued interest payable
Deferred outflow on refunding
Internal service funds are used by management to charge the cost of certain activities, such as
health insurance and fleet maintenance, to individual funds. The assets and liabilities of these
internal service funds are included in governmental activities in the statement of net position.
392,250
5,986,605 6,378,855
(2,645,707)
(37,403,206)
(386,861)
457,487
(39,978,288)
7,426,866
Net Position Of Government Activities As Reported On The Statement Of Net Position $ 220,064,398
The notes to the financial statements are an integral part of this statement.
34
CITY OF TUKWILA, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2014
Local Metropolitan Other Total
General Arterial Improvement Park Facilities Governmental Governmental
Fund Street Distric #33 District Urban Renew al Funds Funds
REVENUES:
Taxes $ 42,219,026 $ 496,017 $ - $ 698,279 $ $ 1,028,462 $ 44,441,783
Licenses and permits 2,114,638 2,114,638
Intergovernmental 5,307,861 8,123,368 24,001 842,896 14,298,126
Charges for services 2,553,690 165,181 - 218,662 900,999 3,838,531
Fines and forfeitures 264,934 - 264,934
Investment earnings 130,859 3,653 338,950 1,216 4,541 479,219
Special assessments 701,723 - 701,723
Miscellaneous 144,678 139,494 1,352 12,781 56,089 354,395
Total Revenues 52,735,687 8,927,713 1,042,024 953,722 1,216 2,832,986 66,493,348
EXPENDITURES:
Current:
General government 7,146,957 247,365 110,851 7,505,173
Public safety 27,204,740 49,572 27,254,312
Physical environment 1,789,658 18,335 1,807,993
Transportation 2,605,602 3,214,999 - - 5,820,601
Cuture and recreation 3,808,476 - 709,100 163,075 4,680,651
Economic environment 3,662,211 - - 1,564,621 5,226,832
Debt service:
Principal - 2,288,988 2,288,988
Interest 34,936 926,521 961,457
Capital outlay 407,400 8,282,737 - 3,728 1,457,047 10,150,912
Total Expenditures 46,625,044 11,497,736 - 747,765 247,365 6,579,011 65,696,921
Excess (deficiency) of revenues
Over (Under) Expenditures
6,110,644 (2,570,023) 1,042,024 205,957 (246,149) (3,746,025) 796,428
OTHER FINANCING SOURCES (USES):
Transfers in 1,000,000 2,850,000 - - 3,450,080 7,300,080
Transfer out (6,900,080) - (1,000,000) (7,900,080)
Bond proceeds - 3,850,000 3,850,000
Total Other Financing Sources And
Uses (5,900,080) 2,850,000 - 2,850,000 3,450,080 3,250,000
Net change before Special Item 210,564 279,977 1,042,024 205,957 2,603,851 (295,945) 4,046,428
Special Item- asset valuation (1,995,000) (1,995,000)
Net change in fund balances 210,564 279,977 1,042,024 205,957 608,851 (295,945) 2,051,428
Fund balance (deficit)- beginning 17,285,986 1,095,535 (1,566,175) 1,902,602 4,992,487 23,710,435
Prior period adjustment 5,795,000 5,795,000
Fund balance (deficit)- beginning restated 17,285,986 1,095,535 (1,566,175) 7,697,602 4,992,487 29,505,435
Fund Balance (Deficit) - Ending $ 17,496,550 $ 1,375,512 $ 1,042,024 $ (1,360,218) $ 8,306,453 $ 4,696,541 $ 31,556,863
The notes to the financial statements are an integral part of this statement.
35
CITY OF TUKWILA, WASHINGTON
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2014
Net change in fund balances per the Statement of Revenues, Expenditures, and Changes in Fund Balances
Amount reported as change in net position in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. In the current period, these amounts are:
Capital Outlay
Depreciation Expense (excludes internal service fund depreciation which is reflected in internal
service fund change in net position listed below)
Excess of Capital Outlay Over Depreciation Expense
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade -ins, and
donations) is to decrease net position.
Contributed capital assets
Net book value of disposed assets
10,150,912
(8,054,137)
$ 2,051,428
2,096,775
311,530
(140,821) 170,709
The net pension obligation is not a financial use and therefore not reported in the funds. (808,796)
The City has equity interests in two joint ventures. The equity interests for the provision of governmental 277,261
services are not current financial resources and therefore are not reported in the funds.
Repayment of long -term debt is reported as an expenditure in governmental funds, but the repayment
reduces long -term liabilities in the Statement of Net Position. In the current year, these amounts
consist of:
Bond principal retirement 2,288,988
Amortization expense 121,525 2,410,513
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases
long -term liabilities in the statement of net position.
General Obligation Bonds issued
Internal service funds are used by management to charge the costs of certain activities to individual funds.
The change in net position of internal service funds is reported with governmental activities.
(3,850,000)
(2,383,081)
Because some revenues will not be collected for several months after the City's fiscal year ends,
they are not considered "available" revenues in the government funds. Decreases this year are for:
Miscellaneous receivables (97,027)
Property taxes (93,609)
Special Assessment (700,940) (891,576)
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
These activities consist of:
Increase in accrued interest
Amortization of deferred charge on bond refunding
Increase in compensated absences
Increase in unfunded other post employment benefits
Decrease in inventory
Total additional expense (increase) decrease
(333,161)
(66,613)
(402,194)
(780,192)
(194,845)
(1,777,005)
Change In Net Position On The Statement Of Activities $ (2,703,772)
The notes to the financial statements are an integral part of this statement.
36
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2014
Governmental
Foster Surface Total Activities
Water Sewer Golf Water Enterprise Internal
Utility Utility Course Utility Funds Service Funds
Current assets:
Cash and cash equivalents $ 3,445,416 $ 4,572,392 $ 760,375 $ 1,642,149 $ 10,420,332 $ 4,997,868
Investments 2,098,901 - - 2,098,901 4,961,411
Receivables
Taxes - - 97 97
Customer accounts 452,715 834,076 4,382 277,802 1,568,975 3,858
Interest on investments - - - 44,255
Due from other governmental units 1,855 561,117 562,972
Inventory of materials and supplies 57,821 57,821 14,971
Current assets restricted
Cash and cash equivalents 23,250 - 60,431 83,681
Total Current Assets 6,022,137 5,406,468 883,105 2,481,068 14,792,778 10,022,362
Noncurrent assets:
Restricted cash, cash equivalents 266,713 126,834 36,897 430,444
Notes receivable - 338,621 338,621
Capital assets
Land 87,347 69,525 1,609,575 579,783 2,346,230
Building 1,416,567 3,364,962 6,627,496 1,875,395 13,284,419
Other improvements 19,851,205 14,586,442 3,559,992 42,055,778 80,053,417
Machinery and equipment 820,244 1,242,767 209,806 49,776 2,322,594 13,799,027
Less: accumulated depreciation (10,025,265) (7,511,407) (4,789,340) (13,844,603) (36,170,615) (9,560,964)
Contruction in progress 1,233,751 188,561 2,777,960 4,200,272
Total capital assets (net of 13,383,849 11,940,849 7,217,530 33,494,089 66,036,317 4,238,063
accumulated depreciation)
Total Noncurrent Assets 13,650,562 12,406,304 7,217,530 33,530,986 66,805,382 4,238,063
Total Assets 19,672,699 17,812,772 8,100,635 36,012,054 81,598,160 14,260,425
LIABILITIES:
Current Liabilities
Account payable
Accrued w ages and benefits
Accrued interest payable
Unearned revenue
Other current liabilities
Due to other governments
Compensated absences
Revenue bond payable
Total Current Liabilities
9,407 370,133 8,653 269,858 658,051 30,992
27,408 16,207 29,072 36,951 109,638 18,754
39,635 21,145 16,062 76,842
7,501 4 7,107 14,612
58,353 12,335 55,496 100 126,284 2,545,750
95,080 205,488 270,953 571,520
2,634 10,251 3,344 16,229
412,700 89,900 17,400 520,000
650,082 717,843 103,476 621,775 2,093,177 2,595,496
Noncurrent liabilities:
Revenue bonds payable 545,324 1,298,953 251,410 2,095,687
Compensated absences 102,983 37,715 65,088 84,427 290,212
Due to other governments 812,355 1,955,209 2,403,783 5,171,347
Total Noncurrent Liabilities 1,460,662 3,291,877 65,088 2,739,620 7,557,246
Total Liabilities 2,110,744 4,009,720 168,564 3,361,395 9,650,423 2,595,496
NET POSITION:
Net investment in capital assets 11,518,390 8,391,299 7,217,531 30,550,544 57,677,764 4,238,064
Restricted for:
Debt service 266,713 126,834 36,897 430,444
Unrestricted 5,776,851 5,284,919 714,540 2,063,218 13,839,529 7,426,866
Total Net Position $ 17,561,955 $ 13,803,052 $ 7,932,071 $ 32,650,659 $ 71,947,737 $ 11,664,929
The notes to the financial statements are an integral part of this statement.
37
$ 17,561,954 $ 13,803,052 $ 7,932,071 $ 32,650,659 $ 71,947,737 $ 11,664,929
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2014
Water
Utility
Sew er
Utility
Foster
Golf
Course
Surface
Water
Utility
Total
Enterprise
Funds
Governmental
Activities
Internal
Service Funds
OPERATING REVENUES:
Charges for services
Other operating revenue
Total Operating Revenues
OPERATING EXPENSES:
Operating & maintenance
Administrative and general
Taxes
Depreciation and amortization
Total Operating Expenses
Operating Income (Loss)
NON - OPERATING REVENUE (EXPENSE):
Investment earnings
Interest expense
Gain (loss) on disposal of capital assets
Amortization of bond premium (discount)
Total Non- Operating Revenue (Expense)
Income (Loss) Before Contributions & Transfers
Capital contributions
Transfers in
Change in Net Position
Total net position - beginning
Change in accounting principle
Prior period adjustment
Total net position - beginning restated
$ 5,970,803 $ 8,290,309 $ 1,304,050 $ 4,225,742 $ 19,790,904 $ 7,265,731
6,158 101,998 330 108,485 62,488
5,976,961 8,290,309 1,406,048 4,226,072 19,899,389 7,328,220
3,515,054 5,116,454
676,681 514,531
868,091 952,130
533,999 416,303
5,593,825 6,999,417
383,135 1,290,892
25,055 21,055
(83,239) (85,451)
(4,435)
7,982 1,825
(54,636) (62,571)
328,499 1,228,321
122,740 261,745
1,387,230
197,486
63,051
298,023
1,945,789
(539,742)
451,239 1,490,066
17, 360, 896 12, 763, 306
(250,180) (51,826)
(398,495)
17,110, 716 12, 312, 986
1,067,897
841,286
474,211
892,873
3,276,268
949,804
392 22,102
(34,801)
(79,860)
353
392 (92,206)
857,598
(539,350)
600,000
60,650
8,077,576
(206,154)
7,871,421
1,163,795
11,086,634
2,229,984
2,357,484
2,141,198
17,815,300
2,084,089
2,021,393
31,148,798
(48,379)
(471,152)
30,629,266
68,605
(203,491)
(84,296)
10,161
(209,021)
1,875,068
1,548,280
600,000
4,023,348
69,350,576
(556,539)
(869,647)
67,924,389
8,749,661
384,336
778,985
9,912,982
(2,584,762)
165,519
36,162
201,681
(2,383,081)
(2,383,081)
14,048,010
14,048,010
Total Net Position - ending
The notes to the financial statements are an integral part of this statement.
38
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2014
Page 1 of 2
Government
Foster Surface Total Activities
Water Sewer Golf Water Enterprise Internal
Utility Utility Course Utility Funds Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
Cash paid to supplier
Cash paid for taxes
Cash paid to or on behalf of employees
Other cash received (paid)
Net Cash Provided (Used)
By Operating Activities
$ 5,952,098 $ 8,170,181 $ 1,408,682 $ 4,190,961 $ 19,721,921 $ 7,324,362
(3,367,247) (4,879,505) (658,944) (1,212,513) (10,118,209) (520,862)
(868,091) (952,130) (63,051) (474,211) (2,357,484) -
(784,722) (435,168) (954,919) (987,560) (3,162,369) (7,977,034)
6,158 (513) 330 5,975 -
938,196 1,903,379
(268,745) 1,517,006 4,089,835 (1,173,534)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in 600,000 600,000
Net Cash Provided (Used) By Non -
Capital Financing Activities
600,000
600,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Purchase of capital assets (1,007,127) (126,122) (47,967) (2,807,531) (3,988,747) (584,097)
Contributed capital 61,620 261,745 - - 323,365 -
Debt proceeds - 248,516 - - 248,516 -
Capital grants 59,264 - - 650,066 709,330 -
Principalpaymentondebt (486,480) (289,487) - (287,753) (1,063,719) -
Interestpaymentondebt (68,501) (74,933) - (27,137) (170,570) -
Proceeds from sale of equipment - - - 36,162
Other (3,197) (0) 0 0 (3,197) -
Net Cash Provided (used) for Capital
And Related Financing Acivities
(1,444,421) 19,718
(47,967) (2,472,354)
(3,945,023)
(547,934)
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of investments
Interest received
Net Cash Provided (Used) In Investing Activities
Net increase (decrease) in cash and
Cash equivalents
Cash and cash equivalents- beginning of year
Cash And Cash Equivalents- end of year
Cash at end of year consists of:
Cash and cash equivalents
Restricted cash - customer deposits
Restricted cash -bond payments
Total Cash and cash equivalents
(20,625) - - (20,625)
25,055 21,055 392 22,102 68,605 169,880
4,430 21,055 392 22,102 47,980 289,880
(501,795) 1,944,152 283,679 (933,246) 792,791 (1,431,589)
4,237,174 2,755,073 537,126 2,612,292 10,141,665 6,429,460
$ 3,735,380 $ 4,699,225 $ 820,805 $ 1,679,046 $ 10,934,457 $ 4,997,871
3,445,416 4,572,392 760,375 1,642,149 10,420,332 $ 4,997,868
23,250 - 60,431 83,681
266,713 126,834 - 36,897 430,444
$ 3,735,380 $ 4,699,225 $ 820,805 $ 1,679,046 $ 10, 934, 457 $ 4,997,868
The notes to the financial statements are an integral part of this statement.
39
Net Cash Provided (Used) By Operating Activities $ 938,196 $ 1,903,379 $ (268,745) $ 1,517,006 $ 4,089,835 $(1,173,536)
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2014
Page 2 of 2
Government
Foster Surface Total Activities
Water Sewer Golf Water Enterprise Internal
Utility Utility Course Utility Funds Service Funds
RECONCILIATION OF NET OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss) $ 383,135 $ 1,290,892 $ (539,742) $ 949,804 $ 2,084,089 $(2,584,762)
Adjustments to reconcile operating income to net cash
Provided (used) by operating activities:
Depreciation 533,999 416,303 298,023 892,873 2,141,198 778,985
Asset (increase) decrease:
Accounts receivable (21,340) (120,128) 523 (34,781) (175,726) (3,858)
Inventoryand other - 0 (16,814) (0) (16,814) (1,635)
Liability increases (decreases):
Accounts payable (399) 319,144 2,495 (266,457) 54,783
Other liabilities 39,238 4,719 1,598 (19,730) 25,825
Wages & benefits payable 3,562 (7,552) (14,829) (4,703) (23,522)
Total Adjustments 555,060 612,487 270,997 567,202 2,005,746
637,847
(114)
1,411,225
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Increase (decrease) in fair value of investment $ - $ $ - $ $ $ 11,131
Amortization of bond premium 7,982 1,825 - 353 10,161
Total Non Cash investing, Capital and
Financing Activities $ 7,982 $ 1,825 $ $ 353 $ 10,161 $ 11,131
The notes to the financial statements are an integral part of this statement.
40
CITY OF TUKWILA, WASHINGTON
STATEMENT OF FIDUCIARY NET POSITON
FIDUCIARY FUND
DECEMBER 31, 2014
Firemen's
Pension Agency
Trust Fund Fund
ASSETS:
Cash and cash equivalents $ 1,413,026 $ 161,249
Receivable
Customer accounts - 5,184
Total Assets 1,413,026 166,433
LIABILITIES:
Accounts and other payables
Total Liabilities
166,433
166,433
NET POSITION: 1,413,026
Held In Trust For Pension Benefits And Other Purposes $ 1,413,026 $
The notes to the financial statements are an integral part of this statement.
41
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUND
FOR THE YEAR ENDED DECEMBER 31, 2014
Firemen's
Pension
Trust Fund
ADDITIONS:
Other contributions:
Intergovernmental revenue $ 64,114
Investment earnings 1,805
Total Additions 65,919
DEDUCTIONS:
Benefit payments $ 61,863
Total Deductions 61,863
Change In Net Position 4,056
Net position - beginning 1,408,970
Net Position - ending $ 1,413,026
The notes to the financial statements are an integral part of this statement.
42
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Tukwila was incorporated on June 23, 1908, and operates under the laws of the State of Washington
applicable to a non - charter optional code city with a Mayor /Council form of government. Tukwila is served by a
Mayor and seven councilmembers, all elected at large to four -year terms. The City provides what are considered
general government services including public safety, streets, parks, planning and zoning, permits and inspection,
general administrative, water services, sanitary sewer collection, and storm drainage.
The accounting and reporting policies of the City of Tukwila conform to generally accepted accounting principles as
applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard
setting body for establishing governmental accounting and financial reporting principles. The City's significant
accounting policies are described in this note.
A. The Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City and its
component unit, an entity for which the government is considered to be financially accountable. The component
unit discussed below is included in the reporting entity because of the significance of its operational or financial
relationship with the City.
See Note 8, Joint Ventures, for a discussion of Valley Communications Center, which is a joint public safety
dispatching authority for five member cities, and South Correctional Entity (SCORE), which is a governmental
administrative agency. Also, see Note 14, Risk Management, for a discussion of the Washington Cities Insurance
Authority.
The City of Tukwila is a party to the following interlocal agreements (not all inclusive):
• Cascade Water Alliance
• Valley Cities — SCORE Jail
• Valley Communications Center
• Valley Narcotics Enforcement Team
• Valley Special Weapons and Tactics Team
• Valley Civil Disturbance Unit
• Metropolitan Park District
• Regional Animal Services of King County
• King County Water Resource Inventory Area 9
• City of SeaTac Probation Services
• King County Reclaimed Water
• Community Connectivity Consortium
The organizations above are separate entities in the State of Washington, whereby the City may enter into these
agreements pursuant to, and as authorized by, the Interlocal Cooperation Act under RCW 39.34. The City of Tukwila
is not financially accountable to these organizations, none of the organizations have an ongoing financial interest
in the City, and the City is not financially dependent upon these organizations.
43
Blended Component Unit
The Tukwila Metropolitan Park District (District) was formed on August 16, 2011. The City Council of the City of
Tukwila is authorized pursuant to RCW 35.61.050 to serve in an ex- officio capacity as the Board of Metropolitan
Park Commissioners. Through this shared governance, it is a component unit of the City. The Metropolitan Park
District provides a benefit to the residents of Tukwila, serving the community as a multigenerational facility that
provides health and recreation benefits to all ages. Component units are legally separate entities but so closely
related to the City through shared governance that their exclusion would cause the City's financials to be misleading
or incomplete.
The District is a component unit of the City of Tukwila, which operates pool programs within the City and the District.
When the District was formed in 2011, it was reported on the City's financial statements as a discretely presented
component unit and was shown as a separate column in the govern -wide financial statements. However, with the
implementation of GASB Statement No. 61, The Financial Reporting Entity: Omnibus, in 2013, the District is now
reported as blended and is shown as a major fund in the Basic Financial Statements section. The component unit's
fund is blended into those of the City by appropriate activity type to compose the primary government presentation.
Requests for the District's separately issued financial statements may be addressed to the Finance Director, City
of Tukwila, 6200 Southcenter Blvd., Tukwila, WA 98188 -2544.
B. Basis of Presentation
The City's basic financial statements consist of government -wide statements, including a statement of net position
and a statement of activities, and fund financial statements which provide a more detailed level of financial
information.
Government -wide Financial Statements
The statement of net position and the statement of activities display information about the City and its component
unit. These statements include the financial activities of the government, except for fiduciary funds. The activity of
the internal service funds is eliminated to avoid "doubling up" revenues and expenses.
The statements distinguish between governmental activities and business -type activities.
The statement of net position presents the financial condition of the governmental and business -type activities of
the City at year -end. The statement of activities presents a comparison between direct expenses and program
activity of the City. Direct expenses are those specifically associated with a service, program or department and
therefore clearly identifiable to a particular function. Indirect costs are included in the program expense reported for
individual functions and activities.
The statement of activities reports the expenses of a given function offset by program revenues directly connected
with the functional program. A function is an assembly of similar activities and may include portions of a fund or
summarize more than one fund to capture the expenses and program revenues associated with a distinct functional
activity. Program revenues include charges paid by the recipient of the goods or services offered by the program,
grants and contributions that are restricted to meeting the operational or capital requirements of a particular program
and interest earned on grants that is required to be used to support a particular program.
For identifying to which function program revenue pertains, the determining factor for charges for services is which
function generates the revenue. For grants and contributions, the determining factor is to which functions the
revenues are restricted.
Revenues which are not classified as program revenues are presented as general revenues of the City, and certain
limited exceptions. The comparison of direct expenses with program revenues identifies the extent to which each
business segment or governmental function is self- financing or draws from the general revenues of the City.
44
Fund Financial Statements
During the year, the City segregates transactions related to certain City functions or activities in separate funds in
order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed
to present financial information of the City at this more detailed level. The focus of governmental and enterprise
fund financial statements is on major funds. Each major fund is presented in a separate column. Non -major funds
are aggregated and presented in a single column. Internal service funds are combined and the totals are presented
in a single column on the face of the proprietary fund statements. Fiduciary funds are reported by type. While
fiduciary funds are excluded from the government -wide statements, they are included in the fund financial
statements.
C. Fund Accounting
The accounts of the City are organized on the basis of funds; each of which is considered a separate accounting
entity. Each fund is accounted for with a separate set of self - balancing accounts that are comprised of assets,
deferred outflow of resources, liabilities, deferred inflow of resources, fund equity, revenues and expenditures or
expenses, as appropriate. The City's resources are allocated to - and accounted for - in individual funds according
to the purpose for which they are spent and how they are controlled. There are three categories of funds:
governmental, proprietary and fiduciary.
Governmental Funds
All governmental funds are accounted for on a "flow of current financial resources" measurement focus. This means
only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance
(net current assets) is considered a measure of "available spendable resources." Governmental fund operating
statements focus on measuring changes in current financial position, rather than net income; they present increases
(revenues and other financing sources) and decreases (expenditures and other financing uses) in net current
assets. The following are the City's major governmental funds:
• The general fund accounts for all of the City's financial resources except those required by statute or generally
accepted accounting principles to be accounted for in another fund. As is the case with most municipalities,
the general fund is the largest and most important accounting entity of the City. As noted in the statements
that follow, the general fund receives the bulk of its revenues from local taxes, followed by State shared
revenues, service charges, and other income.
• The Arterial Street Fund was established in accordance with RCW 82.36.020 for the administration of the
State - levied motor vehicle half -cent gasoline tax distributed to Tukwila and is used primarily to account for
capital arterial street projects. In addition to the State - levied motor vehicle gasoline tax, other revenue
includes state and federal grants, impact fees, and transfers in from the general fund.
• The Local Improvement District (LID) #33 accounts for assessments related to the LID and provides payment
to the Fiscal Agent for principal and interest on bonds issued in November 2013.
• The Metropolitan Park District is a blended component unit of the City of Tukwila, which operates pool
programs within the City and the District. Revenue includes property tax levy and user fees.
• The Facilities Fund was established in 1988 for the replacement of existing general government facilities,
including property owned by the City that will be utilized for redevelopment or renewal purposes.
The other governmental funds of the City, account for the proceeds of specific revenue sources that are segregated
to ensure that expenditures are made exclusively for qualified purposes.
45
Proprietary and Internal Service Funds
Proprietary and internal service funds are accounted for on a "flow of economic resources" measurement focus.
This means all assets and all liabilities (whether current or noncurrent) associated with their activity are included on
their balance sheets. Proprietary fund operating statements present increases (revenues and gains) and decreases
(expenses and losses) in net total assets. Proprietary funds measurement focus is based upon determination of net
income, financial position, and cash flows.
Proprietary and internal service funds distinguish operating revenues and expenses from non - operating items.
Operating revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's
enterprise and internal service funds are charges to the City's customers for sales and services. Operating
expenses for the enterprise funds and internal service funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported
as non - operating revenues and expenses. As described further below, there are two fund types in this category -
enterprise and internal service.
Restricted assets shown in the government -wide financial statements and the proprietary funds balance sheet
include monies reserved for payment of revenue bond debt, and deposits held for utility and golf course customer
accounts. When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed.
The City's enterprise funds account for utility and golf course operations, which are self - supported through user
charges. The utilities are financed and operated like a private business enterprise, which requires periodic
determination of revenues earned, expenses incurred, and net income for capital maintenance, public policy,
management control and accountability. The City's major enterprise funds are as follows:
• Water Utility Fund accounts for operations and capital improvements to provide water services to the City.
• Sewer Utility Fund accounts for operations and capital improvements to provide sanitary sewer services to
the City.
• Foster Golf Course Fund is used to account for the operation, maintenance, and improvements of the
municipal golf course facility.
• Surface Water Utility Fund accounts for the operations and capital improvements for the City's storm drainage
and surface water management function.
The City has three internal service funds. The Equipment Rental Fund is used to account for the costs of maintaining
and replacing all City vehicles and auxiliary equipment. All equipment costs, including depreciation, are factors in
calculating the rates charged to each user department. The Insurance and Insurance — LEOFF I Funds are used to
account for the costs of the City's self- insured medical plan for active employees and retired LEOFF I employees
respectively. Medical and dental costs for covered employees are charged to the respective user departments. All
premiums, medical and dental costs and ancillary charges are included.
Fiduciary Funds
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private
organizations, other governments, and other funds. The City has two fiduciary funds, Firemen's Pension Trust Fund
and Agency Fund. The Firemen's Pension Trust Fund is accounted for in essentially the same manner as
proprietary funds. The agency fund is custodial in nature (assets equal liabilities) and does not involve a
measurement of results of operations. Fiduciary funds are excluded from the government -wide financial
statements.
46
D. Measurement Focus
Government -wide Financial Statements
The government -wide financial statements are prepared using the economic resources measurement focus. All
assets, deferred outflow of resources, liabilities, and deferred inflow of resources associated with the operation of
the City are included on the Statement of Net Position.
Fund Financial Statements
All governmental funds are accounted for using a flow of current financial resources measurement focus. With this
measurement focus, only current assets, current liabilities, and deferred inflow of resources generally are included
on the balance sheet. The statement of revenues, expenditures and changes in fund balances reports on the
sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of
current financial resources. This approach differs from the manner in which the government activities of the
government -wide financial statements are prepared. Governmental fund financial statements therefore include a
reconciliation with brief explanations to better identify the relationship between the government -wide statements
and statements for governmental funds.
Like the government -wide statements, all proprietary and internal service fund types are accounted for on a flow of
economic resources measurement focus. All assets and all liabilities associated with the operation of these funds
are included on the statement of net position. The statement of changes in fund net position presents increases
(i.e., revenues) and decreases (i.e., expenses) in net total position. The statement of cash flows provides
information about how the City finances and meets the cash flow needs of its proprietary activities.
Fiduciary funds are reported using the economic resources measurement focus.
E. Basis of Accounting
Basis of accounting refers to the recognition of revenues and expenditures or expenses in the accounts and
reporting them in the financial statements. Government -wide financial statements are prepared using the accrual
basis of accounting. Governmental funds use the modified accrual basis of accounting. Proprietary and fiduciary
funds use the accrual basis of accounting.
Revenues — Exchange and Non - exchange Transactions
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is
recorded on the accrual basis when the exchange takes place. The modified accrual basis of accounting is followed
in all governmental funds of the City. Under the modified accrual basis of accounting, revenues are recorded when
susceptible to accrual, i.e., both measurable and available. "Measurable" means the amount of the transaction can
be determined and "available" means collectible within the current period or soon enough thereafter to pay current
liabilities. For the City, available means expected to be received within sixty (60) days of year -end. The primary
accrued revenues that meet these criteria are sales and utility taxes.
Non - exchange transactions, in which the City receives value without directly giving equal value in return, include
property taxes, sales and use taxes, admission taxes, gambling taxes, utility taxes, hotel /motel taxes, grants,
entitlements, and donations. These revenues are on an accrual basis. On the accrual basis, the revenue is
recognized in the period in which the income is earned. Revenue from property taxes is recognized in the fiscal
year for which the taxes are levied. (See Note 4 on receivables).
47
Other Revenue Sources
Revenue sources which are not considered to meet the measurable and available criteria for revenue recognition
include licenses and permits, fines and forfeitures, and other miscellaneous revenues since they are generally not
measurable until received.
Under the modified accrual basis, expenditures are recorded when the fund liability is incurred, except for principal
and interest on general long -term debt and vacation and sick pay which are recorded when paid.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements
via the process of consolidation. Internal service fund and similar internal activity has been eliminated from the
government -wide statement of activities so expenses are not reported twice. Exceptions to this general rule are
payments for interfund services provided and used, such as between the City's water, sewer, and surface water
functions and various other functions of the City, which are not eliminated in the process of consolidation.
Elimination of these charges would distort the direct costs and program revenues reported for the various functions
concerned. Amounts reported on the government -wide statements as program revenues include, charges to
customers or applicants for goods, operating grants and contributions, and capital grants and contributions. General
revenues include all taxes. The accrual basis of accounting is followed in all proprietary funds. Under the accrual
basis of accounting, revenues are recognized when earned and expenses are recorded when incurred. All assets
and liabilities are recorded in the fund.
F. Budgets and Budgetary Accounting
The City of Tukwila budgets its funds in accordance with the Revised Code of Washington 35A.33. In compliance
with the code, biennial budgets are adopted for the general fund and special revenue funds. For governmental
funds, there are no substantial differences between the budgetary basis and generally accepted accounting
principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial statements
include budgetary comparisons for biennially budgeted governmental funds only. Budgets established for
proprietary and fiduciary funds are "management budgets" and are not legally required to be reported and, as such,
are not reported in the CAFR.
The biennial appropriated budgets are adopted at the fund level and the budgets constitute the legal authority for
expenditures at that level. Subsidiary revenue and expenditure records are used to compare the budgeted amounts
with actual revenues and expenditures. As a management control device, the subsidiary ledgers monitor
expenditures for individual functions and activities by object class. Any unexpended appropriation balances lapse
at the end of the biennium.
The City of Tukwila's budget procedures are mandated by RCW 35A.33. The steps in the budget process are as
follows:
1) Prior to November 1 on even numbered years, the Mayor submits a proposed budget to the City Council.
This budget is based on priorities established by the Council and estimates provided by the City departments
during the preceding months, and balanced with revenue estimates made by the Mayor.
2) The City Council conducts public hearings on the proposed budget in November. Public hearings are also
held in December, if necessary.
3) The Council makes its adjustments to the proposed budget and adopts by ordinance a final balanced budget
no later than December 31.
4) The final operating budget as adopted is published and distributed within the first month of the following
year. Copies of the budget are made available to the public.
48
The City Council must approve, by ordinance, any amendments that increase the total for the fund. Budget amounts
presented in the basic financial statements include both the original amounts and the final amended budget as
approved by the City Council.
Expenditure Categories
General Government Includes administration, finance, municipal court, attorney, and city clerk
activities.
Public Safety Includes all police and fire activities.
Physical Environment Includes expenditures for the public works activities not chargeable to the
enterprise funds.
Transportation Includes all street and arterial street maintenance and construction.
Economic Development Reflects the planning and building inspection activities.
Culture and Recreation Includes the parks and recreation activities.
G. Assets, Liabilities, and Fund Equity
Cash and Cash Equivalents
All cash and cash equivalents, restricted and unrestricted, consists of cash balances in the checking account,
money market account, imprest funds, and the State Treasurer's Local Government Investment Pool. All funds in
the care of other institutions are considered investments. Cash equivalents are short -term, highly liquid investments
that are readily convertible to known amounts of cash.
Investments
Investments are held separately by each fund with interest earned directly for the benefit of each fund. Investments
are reported in the financial statements at fair value, cost or amortized cost, depending on the type and maturity
length of each investment as required by GASB Statement 31. Washington State statutes provide for the City to
hold investments consisting of obligations of the Federal Government, repurchase agreements, prime banker's
acceptances, and time certificates of deposit. Additional deposit and investment information is presented in Note 3.
Notes Receivable
Notes receivable in the enterprise funds consists of sewer connection fees due from customers to the utility. In the
governmental funds, it consists of the current portion of the special assessment receivable.
Amounts Due to and From Other Funds and Governments, Interfund Loans and Advances Receivable
Activity between funds that is representative of lending /borrowing arrangements outstanding at the end of the fiscal
year are referred to as either "interfund loans receivable /payable" or "advances to /from other funds." Any residual
balances outstanding between the governmental activities and business -type activities are reported in the
government -wide financial statements as "internal balances." As of December 31, 2014, there are no residual
balances outstanding between the governmental activities and business -type activities.
The non - current portion of interfund loans and advances between funds, as reported in the fund financial
statements, are offset by a fund balance unspendable account in applicable governmental funds to indicate they
49
are not available for appropriation and are not expendable available financial resources. See Note 5 on interfund
transactions.
Special Assessments
Special assessments are amounts levied against benefited properties to recover costs associated with the
construction of Local Improvement District (LID) projects. A lien is recorded against benefited properties until the
assessment has been paid. Special assessments receivable represent all outstanding assessment amounts
including current assessments billed but not collected, delinquent assessments unpaid at year -end, and special
assessment amounts due in future years, which are recorded in a deferred inflow of resources account in the fund
financial statements. Since special assessments are secured by liens against related properties, no allowance for
uncollectible amounts is made.
Inventories
Inventory is defined as items purchased for resale to external customers or other City departments, or supplies and
small tools used in normal operations that are considered material in amount. The inventory amount on this year's
financial statements reflect only those items that will be resold. The inventory is valued at average cost using the
consumption method and there is a physical inventory count taken annually at year -end.
Governmental funds use the purchase method whereby inventory items are considered expenditures when
purchased.
Real Property Held for Resale
Governmental funds do not report property, plant, and equipment because such assets normally are used in
operations, and therefore will never be available for spending (they are not financial assets). However, specific
items of property occasionally are acquired with the intent of sale. Examples include foreclosure properties,
redevelopment properties, and donated assets held for resale rather than retained for use in operations.
Governments often acquire redevelopment properties to attract private- sector investment in an economically
depressed area and are willing to sell the property at a price that may be far less that the government's cost to
acquire and improve the property. Since assets held for sale can never be reported at an amount higher than their
net realizable value, any cost in excess of net realizable value must be excluded from the property value reported
in the financial statements.
The City acquired redevelopment properties in its urban renewal area along Tukwila International Boulevard.
Acquisition of the Tukwila Village property began in 1999 and an agreement to develop the property was secured
in 2012. Three crime - ridden motels were acquired in 2014 with the intent to demolish the structures and sell the
vacant land for redevelopment. All redevelopment properties are reported at net realizable value in the financial
statements.
Deferred Outflows /Inflows of Resources
Deferred outflow of resources is a consumption of net position by the government that is applicable to a future
reporting period. Deferred inflow of resources is acquisition of net position by the government that is applicable to
a future reporting period.
Capital Assets and Depreciation
The accounting and reporting treatment applied to the capital assets associated with a fund are determined by its
measurement focus. Capital assets acquired in governmental funds are accounted for as expenditures in the fund
when the asset is purchased. These assets are reported in the governmental activities column of the government-
50
wide statement of net position but are not reported in the fund financial statements. Capital assets utilized by the
proprietary funds are reported both in the business -type activities column of the government -wide statement of net
position and in the respective funds.
All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and retirements
during the year. Donated assets are valued at estimated fair market value at time of acquisition. Where historical
cost is not known, assets are recorded at estimated historical costs. The City maintains a capitalization threshold
of five thousand dollars. The City's infrastructure consists of roads, bridges, storm sewers, water and sewer
distribution and collection systems. Improvements are capitalized; the costs of normal maintenance and repairs that
do not add to the value of the asset or materially extend an asset's life are not.
Depreciation is computed using the straight line method over estimated service lives, as follows:
Asset Estimated Service Life
Buildings 25 to 50 years
Non - Building Improvements 25 to 50 years
Machinery and Equipment 2 to 50 years
Intangibles 2 to 50 years
Infrastructure 25 to 50 years
See Note 7 for additional information on capital assets.
Other Liabilities
Other liabilities include retainage, deposits and the incurred - but - not - reported (IBNR) claims and claim reserve for
the self- insured healthcare funds. The Self Insurance fund includes an IBNR liability of $1,018,300 determined using
actuarial methods. This liability is multiplied by a factor of 2.5 to meet the City's financial goal of maintaining reserves
at 1 x IBNR for claim fluctuations plus 1.5 x IBNR for the IBNR liability of $2,545,750.
Compensated Absences
City policy and labor contracts with City of Tukwila employees call for the accumulation of vacation and sick leave.
At termination of employment, employees with the required length of service may receive cash payments for all
accumulated vacation leave to a maximum of 384 hours. Sick leave termination benefits are based on a percentage
of accumulated sick leave up to a maximum of 180 hours. The payment is based on current wages at termination.
The entire compensated absence liability, which includes salary and wages as well as related taxes, is reported on
the government -wide financial statements. In the enterprise funds, the entire amount of compensated absences is
reported as a fund liability. This reporting format is in compliance with GASB Statement No. 16.
The current portion reported on the schedule of long -term liabilities is calculated using the last -in- first -out (LIFO)
approach. Anticipated subsequent yearly usage is used to determine the current portion of the liability. There is
no current portion to report when the anticipated leave usage is less than the anticipated leave to be accrued during
the next year.
Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund financial statements, long -term
debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -
type activities, or proprietary fund type statement of net position. Bond premiums and discounts are amortized over
the life of the bonds using the straight line method. Bonds payable are reported net of the applicable bond premium
51
or discount. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
expenses.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during the
current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt
issuances are reported as other financing sources while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures. Long -term debt outstanding at year -end is outlined in Note 11.
Fund Balance /Net Position
A fund balance represents the difference between the current assets and current liabilities. The City restricts those
portions of fund balance which are legally segregated for a specific future use or which do not represent available,
spendable resources and therefore are not available for general appropriation or expenditure.
Net position represents the difference between assets plus deferred outflow of resources and liabilities plus deferred
inflow of resources. Net position invested in capital assets, net of related debt, consists of capital assets, net of
accumulated depreciation, reduced by the outstanding balances of any borrowing used (i.e., the amount that the
City has spent) for the acquisition, construction or improvement of those assets. Net position is reported as restricted
when there are limitations imposed on their use either through the enabling legislation adopted by the City or through
external restrictions imposed by creditors, grantors or laws or regulations of other governments. The remaining
balance is reported as unrestricted.
In 2012, the City revised the Reserve Policy which addresses the various types of the City's operating and restricted
use funds. The objectives of this Policy are to establish, attain, and restore minimum fund balances, including self -
insurance health care reserve funds, and specified review and reporting of fund balances.
At the close of each fiscal 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, non - recurring
revenues such as real estate sales or transfers in from other funds.
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 non - operating, non - recurring revenues such as real estate sales, transfers in
from other funds or debt proceeds.
The City shall maintain a reserve balance in each of its self- insured health care funds an amount equal to 2.5 times
or 250 %, of the actuarially determined IBNR 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 funds.
Fund Balance Components
The fund balance amounts for governmental funds have been classified in accordance with GASB Statement No.
54 and are reported as nonspendable, restricted, committed, assigned or unassigned.
• Nonspendable fund balance includes items that cannot be spent. This includes activity that is not in a
spendable form (inventories, prepaid amounts, long -term portion of loans /notes receivable, or property held
for resale unless the proceeds are restricted, committed or assigned) and activity that is legally or
contractually required to remain intact, such as a principal balance in a permanent fund. The general fund's
nonspendable fund balance of $1.5 million is the outstanding balance of an interfund loan from the general
fund to the Metropolitan Park District, a blended component unit. The facilities fund has a nonspendable fund
balance of $7.4 million representing real property held as an investment.
• Restricted fund balances have constraints placed upon the use of the resources either by an external party
or imposed by law through a constitutional provision or enabling legislation.
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• Committed fund balances can be used only for specific purposes pursuant to constraints imposed by a formal
action in the form of ordinances and resolutions of Tukwila Councilmembers, the City's highest level of
decision - making authority. This formal action is the passage of an ordinance by City Council creating,
modifying, or rescinding an appropriation. These committed amounts cannot be used for any other purpose
unless Council removes or changes the specified use by taking the same type of action it employed to
previously commit those amounts.
• Assigned fund balance includes amounts that are constrained by the City's intent to be used for a specific
purpose, but are neither restricted nor committed. Intent of use is determined through the budgetary
process and is expressed by the Finance Director.
• Unassigned fund balance is the residual amount not included in the four categories described above. Also,
any deficit fund balances within the other governmental fund types are reported as unassigned.
Each fund has been analyzed to classify the fund balance in accordance with GASB Statement No. 54. Funds are
created by the City Council and money is authorized to be transferred to the fund for a particular purpose. At this
point, balances in these funds are at least committed, and may be further restricted depending on whether there is
an external party, constitutional provision, or enabling legislation constraint involved. The City applies restricted
resources first when an expense is incurred for purposes of which both restricted and unrestricted net position is
available in the governmental funds. When expenditures are incurred for purposes, for which unrestricted
(committed, assigned, and unassigned) resources are available, and amounts in any of these unrestricted
classifications can be used, it is the City's policy to spend committed resources first, the assigned, followed by
unassigned.
Operating Revenues and Expenses
Operating revenues are generated directly from the primary activity of the proprietary funds. For the City, these
revenues are charges for services for the use of the golf course and the internal use of vehicles, computers and
facilities. Operating expenses are necessary costs incurred to provide the good or service that are the primary
activity of each fund. All other revenues and expenses are classified as non - operating including investment
earnings, interest expense and the gain or loss on the disposition of capital assets.
Contributions of Capital
Contributions of capital in proprietary fund financial statement arise from outside contributions of capital assets, for
example, developers, and grants or outside contributions of resources restricted to capital acquisition and
construction. It also includes water and sewer connection charges.
Indirect Cost Allocation
Indirect costs, also referred to as overhead costs, consist of the cost of central services or support functions shared
across departments. They include accounting, human resources, payroll, information technology, janitorial services
and others. These services are paid through the general fund and charged back to the proprietary funds that directly
benefit from them. In prior years, the indirect costs allocated to the proprietary funds were recorded as a transfer
out of the proprietary funds and a transfer in to the general fund. Pursuant to guidance by the Washington State
Auditor's Office, Budgeting, Accounting, and Reporting System (BARS), the indirect costs allocated to the
proprietary and other funds of $2,089,178 for 2014 are reported as a reduction of general government expenditures
on the Statement of Activities rather than as transfers in and transfers out.
Interfund Activity
Exchange transactions between funds are reported as revenues in the seller funds and as expenditures /expenses
in the purchaser funds. On the government -wide statement of activities, the exchange transactions between the
53
internal service funds and the user funds are eliminated. Flows of cash or goods from one fund to another without
a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing
sources /uses in governmental funds and after non - operating revenues /expenses section in proprietary funds.
Transfers between governmental and business -type activities on the government -wide statement of activities are
reported separately after general revenues. Transfers between funds reported in the governmental activities column
are eliminated. Transfers between funds reported in the business type activities column are eliminated.
Special Item
Special items are transactions that are either unusual in nature or infrequent in occurrence. They must also be
within the control of management. They are reported as a separate line item entitled Special Item. The City has
one special item reported in 2014. The City purchased motels in the Tukwila International Boulevard urban renewal
area for redevelopment. The assets were written down to the net realizable value because the structures on the
land will be demolished and the property sold as raw land. The reduction in value is reported as a special item.
Estimates
The preparation of the financial statements in conformity with GAAP requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results
may differ from those estimates.
Risk Management
It is the City of Tukwila's policy to self- insure for unemployment benefits because of the insignificant liability. Medical
and dental self- insurance coverage is also provided for employees. All buildings, City equipment, and City vehicles
are insured by carriers for property coverage at replacement value.
The City of Tukwila is a member of the Washington Cities Insurance Authority (WCIA) as of January 1, 1984. WCIA
is an organization of Washington entities numbering 175 as of December 31, 2014. WCIA provides pooled self -
insurance coverage for general liability, vehicle liability, false arrest, and errors and omissions. See Note 14 for
additional information on risk management.
H. Changes in Reporting
The City implemented the following Governmental Accounting Standards Board (GASB) statements in 2014:
The City implemented GASB Statement No. 67, Financial Reporting for Pension Plans, amending GASB Statement
No. 25. GASB Statement No. 67 relates to pension plans that are administered through trusts or equivalent
arrangements that meet certain criteria. This statement addresses accounting and financial reporting for the
activities of pension plans.
Implementation of Statement No. 67 reporting requirements are for the Firemen's Pension Plan is reflected in Note
9 and in Required Supplementary Information (RSI).
NOTE 2 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
There have been no material violations of finance - related legal or contractual provisions, and there have been no
expenditures exceeding legal appropriations in any of the funds of the City of Tukwila.
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NOTE 3 — DEPOSITS AND INVESTMENTS
The City maintains a cash and investment pool available for use by all funds. Interest earned on pooled investments
is recorded in the participating funds. Investments are also held separately by several of the funds, with interest
earned directly for the benefit of each fund.
Cash and Cash Equivalents
Custodial credit risk is the risk associated with the failure of a depository financial institution. In the event of a
depository financial institution's failure, it is the risk that the City would not be able to recover its deposits or
collateralized securities that are in the possession of the outside parties. The City minimizes custodial credit risk
by following the restrictions set forth in state law.
At year -end, the carrying amount of the City's cash balance held in banks was $17,899,318. Of the bank balance,
$250,000 was covered by Federal depository insurance and the Washington Public Deposit Protection Commission
(WPDPC) insured the remainder. The City also maintains imprest funds totaling $14,200. The City participates in
the State Treasurer's Investment Pool, which is a 2a7 -like unrated pool, overseen by the State Treasurer's Office.
The fair value of the City's position in the pool is the same as the value of the pool shares. Because of its highly
liquid nature, the Pool funds are considered cash equivalents.
Investments
The City's investment portfolio includes certificate of deposits insured by the Washington State Public Depository
Commission, U.S. Government Agency Notes, and municipal bonds issued by state and local agencies. These
investments are reported at fair value based on quoted market prices. Fair value is the amount at which a financial
instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation
sale. Also, the Firemen's Pension Fund is authorized to invest in stocks, bonds, and mutual funds.
At December 31, 2014, the City had the following deposits and investments:
SCHEDULE OF INVESTMENTS BY MATURITY
Maturity Credit Market
Date Rating Value
Certificates of Deposit:
Sound Community Bank 3/4/2017 $ 3,141,083
Regal Bank 12/20/2015 * 250,000
Total Certificate of Deposits 3,391,083
U.S. Government Agency Notes:
Federal Home Loan Mtg Corp
Federal Natl Mortgage Assn
Total U.S. Agency Notes
5/13/2016 AAA / AA+ 2,000,892
8/23/2017 Aaa / AA+ 993,103
2,993,995
Municipal Bonds:
Washington State Convention Center: Lodging Tax 7/1/2016 Aa3 / A+ 513,925
Washington State Biomedical Research: Revenue - Facilities 7/1/2017 Aaa / AA+ 532,635
Marysville Washington: Limited General Obligation 12/1/2017 Aa3 / Al 438,319
Washington State Biomedical Research:Revenue - Facilities 7/1/2019 Aaa / AA+ 555,200
Port ofAnacortes, Washington: Limited General Obligation 9/1/2020 Al 365,191
Douglas County School District, Washington: Unlimited General Obligation 12/1/2020 Aal / Aa3 1,263,959
Total Municipal Bonds
TOTAL INVESTMENTS
3,669,228
$ 10,054,306
* No credit rating with certificate of deposit accounts; accounts are insured by the Public Depository Protection Commission.
55
$ 514,125
RECONCILIATION OF ALL CASH, DEPOSITS AND INVESTMENTS
AS REPORTED ON STATEMENT OF NET POSITION:
Cash and Cash Equivalents:
Investments
Current Assets Restricted:
Cash and cash equivalents
Total Cash, Cash Equivalents and Investments
$ 33,190,780
10, 054, 307
823,025
$ 44, 068,112
SUMMARY BY TYPE:
Cash and Cash Equivalents:
Local Government Investment Pool
Money market account
Cash on hand
Cash in bank -book balance
Total cash and cash equivalents
Investments:
Certificates of deposit
U.S. Government Agency Notes
Municipal bonds
Total investments
3,694,540
13,121, 439
14,200
17,183, 627
34, 013, 805
3,391,084
2,993,995
3,669,228
10, 054, 307
Total Cash, Cash Equivalents, and Investments
$ 44, 068,112
Restricted Assets - Governmental
Drug Seizure funds - federal portion
Impact Fees
Restricted Assets - Governmental
Restricted Assets - Business -Type
Customer Deposits -Water Utility
Customer Deposits -Golf Course
Lease Deposits -Golf Course
Revenue Bond Reserve Account - Water /Sewer /Surface Water
$ 21,054
287,846
$ 308,900
$ 23,250
45,431
15,000
430,444
Restricted Assets - Business -Type
Total Restricted Assets $ 823,025
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Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of
an investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's
investment policy limits at least half of the City's cash and investment portfolio to maturities of less than one year.
Investment maturities are limited as follows:
1) At the time of investment, a minimum of thirty percent (30 %) of the cash and investment portfolio will be
comprised of investments maturing or available within one year.
2) At the time of investment, eighty percent (80 %) of the portfolio will be comprised of investments maturing or
available within five (5) years and no instruments shall have a maturity exceeding ten (10) years, except
when compatible with a specific fund's investment needs.
3) The average maturity of the portfolio shall not exceed three and one half (3 1/2) years or forty -two (42) months.
The City uses the weighted average maturity method to manage interest rate risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State statutes
and the City's investment policy limit the types of securities authorized for investment by the City. The principal
governing statutes are RCW 39.59 and RCW 39.60. The Finance Director may further restrict eligible investments
by this policy at his /her discretion. Authorized investments include (but are not limited to):
1) U.S. Treasury Securities.
2) U.S. Agency Securities (i.e., obligations of any government- sponsored corporation eligible for collateral
purposes at the Federal Reserve).
3) Certificates of Deposit, Money Market Deposit Accounts and savings deposits with qualified depositories
within statutory limits as promulgated by the PDPC at the time of investment.
4) Bankers Acceptances (BA's) purchased on the secondary market with a rating of A -1, P -1, its equivalent or
better.
5) General Obligation Bonds of a state or local government which have at the time of the investment one of the
three highest credit ratings of a nationally- recognized rating agency.
6) The Washington State Local Government Investment Pool (LGIP).
As of December 31, 2014, the City's investments in municipal bonds were rated Aal to Al by Moody's Investor
Service.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The
City of Tukwila diversifies its investments by security type and institution as described below:
1) No more than fifty percent (50 %) of the City's cash and investment portfolio, at the time of purchase, shall
be in any single financial institution.
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2) Except, that no more than seventy -five percent (75 %) of the City's portfolio, at the time of purchase, shall be
invested in the Washington State Local Government Investment Pool, and
3) No more than seventy -five percent (75 %) of the City's portfolio, at the time of purchase, shall be invested in
U.S. Treasury or Agency securities.
NOTE 4 — RECEIVABLES
Taxes Receivable
Taxes receivable consists of property, sales and use, gambling, leasehold, and hotel /motel taxes. Customer
accounts receivable consists of amounts owed by private individuals or organizations for good and services
provided. Uncollectible amounts are considered immaterial and the direct write -off method is used. Customer
accounts receivable also includes the current portion of special assessments due from property owners within Local
Improvement District No. 33. Other types of accounts receivable include utility taxes due from private organizations
and customer accounts receivable for amounts owed which billings have not been prepared.
Governmental Business -Type
Activities Activities
Total
Taxes Receivable
Property $ 266,477 $ - $ 266,477
Sales & Use 3,599,169 - 3,599,169
Utility Tax 626,518 626,518
Admission /Gambling /Parking /Other 888,305 97 888,402
Total Taxes Receivable 5,380,469 97 5,380,566
Customer Receivable
Miscellaneous 332,338
Special Assessments - current portion 459,382
Utility Accounts
Total Customer Receivable 791,720
Interest
4,382
1,564,593
1,568,975
336,720
459,382
1,564,593
2,360,695
77,267 77,267
Total Receivables $ 6,249,455 $ 1,569,072 $ 7,818,527
Property Taxes Receivable
The County Treasurer acts as an agent to collect property taxes levied in the County for all taxing authorities.
Collections are distributed daily via wire transfer.
January 1st
February 14th
April 30th
May 31St
October 31st
Property Tax Calendar
Taxes are levied and become an enforceable lien against properties.
Tax bills are mailed.
First of two equal installment payments is due. If taxes are less than $50, full payment is due.
(RCW 84.56.020)
Assessed value of property established for next year's levy at 100 percent of market value.
Second installment is due. (RCW84.56.020)
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Assessed values are established by the County Assessor at 100% of fair market value. A revaluation of all property
is required every two years. On May 31 of each year the assessed value of property is established for the next
year's property tax levy.
Property taxes levied by the County Assessor and collected by the County treasurer become a lien on the first day
of the levy year and may be paid in two equal installments if the total amount exceeds $50. The first half of real
property taxes is due on April 30 and the balance is due October 31. Delinquent taxes bear interest at the rate of
12% and are subject to additional penalties if not paid as scheduled.
During the year, property tax revenues are recognized when cash is received. At year -end, unpaid property taxes
are recorded as a receivable. Property tax receivables at year -end not expected to be collected within 60 days after
the current period are reported as other unavailable revenue in the deferred inflow of resources section of the
governmental funds financial statements. The tax rate for general City operations is limited to $3.60 per $1,000 of
assessed value. An additional levy rate of $0.225 is available to the City because the City funds a Firemen's
Pension Fund.
The payment of principal and interest on limited tax (non- voted) bonds issued by the City is made from the general
levy. Accordingly, the issuance of limited tax general obligation bonds has the effect of reducing property taxes
available for the general operations of City government. State law also provides that the City's operating levy may
not exceed 101% of the largest single levy of the past three years. The State Constitution provides that the total of
all taxes upon real and personal property by the State and all taxing entities, including the City, shall not in any year
exceed 1% ($10 per $1,000) of the true and fair monetary value of such property. This limitation may be exceeded
upon the approval of 60% of the City voters at an election in which the total vote exceeds 40% of the votes cast at
the last general election.
Washington State Constitution and Washington State law, RCW 84.55.010, limit the rate. The City's regular levy
in 2014 was $2.97799 per $1,000 of assessed valuation of $4,756,373,688 for a total regular levy of $14,129,531.
Due from Other Governments
All receivables from other governments are recorded at year -end as amounts Due from Other Governmental Units.
These amounts represent federal, state, and local reimbursement -type grants, and are reported as receivables and
intergovernmental revenues in the year when the related expenditures are incurred. As of December 31, 2014, the
majority represents grants.
Notes Receivable
Notes receivable for governmental activities consists of the long -term portion of the special assessments related to
Local Improvement District (LID) No. 33. Special assessments are levied against certain property owners benefited
by the improvement. The current portion of outstanding assessments is reported in the receivables category on the
Statement of Net Position and consists of assessments which are due within one year and delinquent assessments
from the prior year. Assessments are charged to property owners within the LID annually with payments due in
October of each year. The repayment period for the assessments is 15 years with the first installment due in 2014
and the final installment due in 2028.
Notes receivable for business —type activities consists of outstanding payment plans for sewer connection fees. The
City designed and constructed sewer infrastructure in both the Allentown and Foster Point neighborhoods, which
was previously on septic. The project was completed and accepted by City Council in 2007. The connection fees
to be paid by property owners were established by ordinance, effective in August, 2007. One option given to
property owners was an installment payment plan. This option allowed owners to sign an agreement to have the
connection charge added to their monthly water bill and repaid over 5, 10, or 15 years with an 4% annual interest
rate. The balance reflects all principal outstanding at year -end.
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$ 5,527,223 $ 338,621 $ 5,865,844
Governmental Business -Type
Activities Activities
Total
Notes Receivable
Special Assessments - Non - Current Portion
Sewer Payment Plan
Total Receivables
5,527,223
338,621
5,527,223
338,621
NOTE 5 — INTERFUND TRANSACTIONS
Interfund activity is the term used to describe similar financial transactions between funds of the primary
government.
Reciprocal interfund activity involves the exchange of equal or almost equal value between funds.
Services Provided /Used — Transactions that would be treated as revenues, expenditures or expenses if they
involve external organizations, such as buying goods and services in return for equal or almost equal value, are
similarly treated when they involve other funds of the City of Tukwila.
Interfund Loans /Advances — Loans between funds are classified as interfund loans receivable and payable or as
advances to and from other funds in the fund statements. Interfund loans are offset by a reservation of fund equity.
Interfund loans are subject to elimination upon consolidation.
Nonreciprocal interfund activity does not involve the exchange of equal or almost equal value between funds.
Transfers — Transactions to support the operations of other funds are recorded as "Transfers" and classified with
"Other Financing Sources or Uses" in the fund statements. Transfers between governmental or proprietary funds
are netted as part of the reconciliation to the government -wide financial statements.
Contributions — Contributions to the capital of enterprise or internal service funds, transfers of capital assets
between proprietary and governmental funds, transfers to establish or reduce working capital in other funds, and
transfers of remaining balances when funds are closed are classified non - operating revenue.
Reimbursements — Repayments from funds responsible for expenditures or expenses to the funds that initially
paid for them. These transactions are expenditures /expense in the fund responsible and as a reduction of
expenditure /expensed in the fund being reimbursed.
Interfund transfers for the year were as follows:
SUMMARY OF INTERFUND TRANSFERS
Governmental Proprietary
Funds Funds
General Capital Debt Total Golf
Fund Project Service Governmental Course
TOTAL
Transfers In $ 1,000,000 $ 3,150, 000 $ 3,150, 080 $ 7,300,080 $ 600,000 $ 7,900,080
Transfers Out (6,900,080) (1,000,000) - (7,900,080) - (7,900,080)
Net Transfers In
(Out) $ (5,900,080) $ 2,150, 000 $ 3,150, 080 $ (600, 000) $ 600,000 $
60
The principal purposes for interfund transfers include interfund subsidies and transfers into debt service and capital
projects funds.
NOTE 6 — OPERATING LEASES
During 2014 the City maintained operating lease agreements for the purpose of leasing City operated machinery
and equipment.
Tukwila leases office/ storage space for the purposes of the Records Center, Seattle Southside Visitor Center and
the Neighborhood Resource Center. In addition the City leased a postage machine and copiers during 2014. Costs
associated with these activities are as follows.
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS
2014 2015 2016 2017 2018
Records Center 1 67,674 28,544 - -
Neighborhood Resource Center 2 20,400 10,200 - -
Seattle Southside Visitors Center 41,520 42,132 42,132 42,132 42,132
Postage Machines 10,067 10,067 10,067 10,067 10,067
Office Equipment 49,841 51,358 51,358 49,606 47,855
Total Lease Payments 189,503 142,301 103,557 101,805 100,054
1 Leasing of the Records Center expires on 5/31/2015. The tenant is responsible for the cost of utilities and
maintenance of building, w hich is estimated, based on square footage and reconciled annually by the lessor.
2 Leasing of the Neighborhood Resource Center expires on 6/30/2015.
61
$ 223, 050, 679 $ (21,148, 323) $ 3,827,662 $ (1,755,069) $ 203, 974, 949
NOTE 7 — CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2014, was as follows:
GOVERNMENTAL ACTIVITIES
BEGINNING PRIOR ENDING
BALANCE PERIOD BALANCE
1/1/2014 ADJUSTMENT INCREASES DECREASES 12/31/2014
Governmental Activities
Capital assets, not being depreciated:
Land $ 42,961,328 $ (7,732,514) a $ 84,000 $ - $ 35,312,814
Construction in Progress 10,483,961 (1,736,585) a 9,729,700 (1,758,873) 16,718,203
Total capital assets,
not being depreciated 53,445,289 (9,469,099) 9,813,700 (1,758,873) 52,031,017
Capital assets, being depreciated:
Buildings 25,277,239 - 147,402 - 25,424,641
Other Improvements 18,130,493 18,130,493
Machinery and Equipment 17,695,670 (14,461) b 2,309,632 (390,722) 19,600,119
Infrastructure 191,316,770 (19,543,689) b 390,051 - 172,163,132
Total capital assets
being depreciated 252,420,172 (19,558,150) 2,847,085 (390,722) 235,318,385
Less accumulated depreciation for:
Buildings (10,810,438) - (803,755) - (11,614,193)
Other Improvements (10,542,577) - (812,443) - (11,355,020)
Machinery and Equipment (11,756,724) 4,338 b (1,400,743) 394,526 (12,758,603)
Infrastructure (49,705,043) 7,874,588 b (5,816,183) - (47,646,638)
Total accumulated depreciation
Total capital assets, being
depreciated, net
Governmental activity capital assets, net
(82,814,782)
169, 605, 390
7,878,926 (8,833,124)
(11,679,224) (5,986,038)
394,526 (83,374,454)
3,804 151, 943, 932
aln previous years of the Governmental Activities Section, the City had recorded all purchases pertaining to the
Tukwila Village Redevelopment Project, totaling $7,732,514 in Land and $1,736,585 in Construction Work in
Progress, as capital assets not being depreciated within its General Fixed Asset Account Group (GFAAG)
classification. In 2014, a valuation adjustment of $3,674,099 was recorded to reduce the capitalized costs to net
realizable value. The resulting $5,795,000 was transferred from the General Fixed Asset Account Group to the
Facilities Capital Project Fund, the originating fund, and reclassified as redevelopment properties held for resale.
Since this reclassification and cost adjustment should have occurred in 2012 when the developer agreement was
approved, the correction in 2014 has resulted in a prior period adjustment which is reflected as decreases to both
the Land and Construction in Progress categories of total capital assets not being depreciated.
bEffective with the 2014 financial report year, the City will report all infrastructure construction costs incurred for
routine maintenance such as repairs and overlays, bridge inspections and other nominal improvements as non -
capitalizable expensed costs rather than as capitalizable depreciable assets as it has been in previous years. Thus,
62
for the current year of 2014, it was necessary to reclassify $19,558,150 of capitalized historical Infrastructure and
as well as certain Machinery and Equipment costs with related accumulated depreciation of $7,878,926 as
expensed items. This has resulted in a prior period adjustment of $11,679,224. (See Note 16, Change in Accounting
Principle and Prior Period Adjustments).
BUSINESS -TYPE ACTIVITIES
BEGINNING
BALANCE
1/1/2014
PRIOR
PERIOD
ADJUSTMENT INCREASES DECREASES
ENDING
BALANCE
12/31/2014
Business -Type Activities
Capital assets, not being depreciated:
Land
Construction in Progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Buildings
Other Improvements
Machinery and Equipment
Total capital assets
being depreciated
Less accumulated depreciation for:
Buildings
Other Improvements
Machinery and Equipment
Total accumulated depreciation
Total capital assets, being
depreciated, net
Business -Type activity capital assets, net
$ 2,237,758 $
3,104, 260
- $ 108,472 $ - $ 2,346,230
(869,647) 3,883,473 (1,917,814) 4,200,272
5,342,018 (869,647)
12,543,164
79,147, 004
2,261,349
3,991,945
791,255
1,063,795
62,764
(1,917,814)
(50,000)
(157,382)
(1,519)
93, 951, 517
(3,595,921)
(28,798,964)
(1,759,138)
(34,154,023)
59,797,496
$ 65,139, 514 $
- 1,917,814
(327,592)
- (1,732,956)
- (80,651)
- (2,141,198)
(208,901)
37,000
86,086
1,519
124,605
6,546,502
13,284,419
80,053,417
2,322,594
95,660,430
(3,886,513)
(30,445,833)
(1,838,270)
(36,170,616)
- (223,384) (84,296) 59,489,816
(869,647) $ 3,768,560 $ (2,002,110) $ 66,036,318
The prior period adjustment represents Construction in Progress costs that are repair and maintenance in nature
and should have been expensed rather than capitalized.
63
COMPONENTS OF NET CAPITAL ASSET CHANGES
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES
TOTAL
CAPITAL ASSET CHANGES
Increases/ Additions
Capital outlay
Land turnovers, contributions, other
Internal service funds (Equipment rental)
Additions before CIP capitalization
Capitalization of Construction in Progress
Total capital asset additions
Decreases/ Disposals
Sale or disposal of assets
Internal service funds (Equipment rental)
Sub -total
Capitalization of Construction in Progress
Total capital asset disposals
$ 10,150, 912
311,530
584,097
11,046,539
$ 3,988,747
3,198
1,614,248 (a)
12,660,786
(181, 039)
(354,309)
(535,348)
(1,614,248) (a)
(2,149, 596)
3,991,945
1,917,814 (a)
5,909,759
(208,901)
$ 14,139, 659
314,728
584,097
15, 038, 484
3,532,062
18, 570, 545
(208,901)
(1,917,814) (a)
(2,126, 715)
(389,940)
(354,309)
(744,249)
(3,532,062)
(4,276,311)
Net Increase in Capital Assets
$ 10,511,191 $ 3,783,044
$ 14,294,235
ACCUMULATED DEPRECIATION CHANGES
Increases/ Additions
Depreciation:
Governmental
General government
Public safety
Physical Environment
Transportation
Economic Environment
Culture and recreation
Governmental total
Internal service funds (Equipment rental)
Business -type funds
$ 355,357 $
138,109
677,797
5,849,924
3,560
1,029,392
8,054,138
778,986
Total capital asset additions 8,833,124
Decreases/ Disposals
Accumulated depreciation on assets sold
or disposed:
Governmental
Internal service funds (Equipment rental)
Business -type funds
2,141,198
2,141,198
$ 355,357
138,109
677,797
5,849,924
3,560
1,029,392
8,054,138
778,986
2,141,198
10,974,322
(40, 217)
(354,309)
Total accumulated depreciation disposal (394,526)
Net Increase in Accumulated Depreciation $ 8,438,598
(124,605)
(124,605)
$ 2,016,593
(40, 217)
(354,309)
(124,605)
(519,131)
$ 10,455,191
NET CHANGE IN CAPITAL ASSETS
INCREASE (DECREASE) IN NET CAPITAL ASSETS $
2,072,592 $ 1,766,451
$ 3,839,044
a) Closed construction projects are shown as an addition to capital assets and a reduction of
construction in progress.
64
Project Description
GOVERN- BUSINESS -
MENTAL TYPE
ACTIVITIES ACTIVITIES TOTAL
Thorndyke Safe Routes $ 405,508 $ 202,053 $ 607,560.91
Cascade View Safe Routes 110,031 110,031
Boeing Access Road Bridge Rehab 579,199 579,199
TUC Transit Center 4,009,647 150,224 4,159,871
Interurban Avenue South 1,591,193 749,793 2,340,986
Andover Park West 1,248,908 950,778 2,199,686
Internal Service fund - Fleet 584,097 584,097
Water Reservoir 2,861 2,861
E Marginal Way S Storm Pipe 1,185,365 1,185,365
Sewer Lift Station #2 Upgrades 95,133 95,133
Sewer Lift Station #9 Upgrades 30,989 30,989
E Marginal Way S Outfalls 59,892 59,892
Chinook Wind salmon habitat restoration 25,162 25,162
Small Drainage Projects - 2015 17,321 17,321
40 -42nd Ave S 37,173 37,173
Andover Park East Waterline 4,136 4,136
Other 2,627,987 371,035 2,999,022
TOTALS $ 11,046,539 $ 3,991,945 $ 15,038,484
65
NOTE 8 — JOINT VENTURES
A joint venture is a legal entity or other organization that results from a contractual agreement and that is owned,
operated, or governed by two or more participants as a separate and specific activity subject to joint control in which
the participants retain (a) an on -going financial interest or (b) an on -going financial responsibility. The City
participates in two joint ventures. A summary of the City's investment in joint ventures follows.
SUMMARY OF INVESTMENT IN JOINT VENTURES
Equity in Equity in Capital Assets TOTAL
Operations financed by Outstanding Investment in
Debt Joint Ventures
Valley Com $ 2,974,283 $ 220,000 $ 3,194,283
SCORE 1,080,470 6,430,400 7,510,870
TOTAL $ 4,054,753 $ 6,650,400 $ 10,705,153
Valley Communications Center
The "Valley Communications Center" was established August 20, 1976, when an Interlocal Agreement was entered
into by the four original participating municipal corporations, including the cities of Renton, Kent, Auburn, and
Tukwila. Federal Way was formally admitted during 2000. The agreement is sanctioned by the provisions and terms
of the Interlocal Cooperation Act pursuant to RCW 39.34. The initial duration of the agreement was five years, and
thereafter is automatically extended for consecutive five -year periods.
The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved consolidated
emergency communications (dispatch) services for police, fire, and medical aid, to the five participating cities and
to several subscribing agencies. Separate agreements between Valley Com and the subscribing agencies have
been executed, which set forth conditions of services and rates charged. The allocation of prorated financial
participation among the five participating cities is the percentage of estimated dispatched calls attributed to each
jurisdiction compared to the total estimated dispatched calls for the current 12 -month period ending December 31.
The 2014 cost distribution for the five (5) participating cities is as follows:
City
Dispatchable
Calls
Percent of
Total
Renton
75,345
20.31%
Kent
104,448
28.15%
Auburn
82,276
22.17%
Tukwila
32,383
8.73%
Federal Way
76,602
20.64%
Total
371,054
100.00%
Valley Com is governed by an Administration Board composed of the Mayors from the five participating cities of
Renton, Kent, Auburn, Tukwila, and Federal Way. The Board is responsible for the following functions: (1) Adopting
an annual budget after review by participating legislative bodies; (2) Appointment and /or discharge of the Director;
(3) Approves personnel policy and makes final decisions on all major policy changes; (4) Reviews and approves all
contracts.
66
In addition, an Operating Board was established and consists of two members of each participating City's Public
Safety Departments, including the heads of such departments or their designees. The Operating Board performs
the following functions: (1) Oversees the operation of Valley Com and advises and makes recommendations to the
Administration Board; (2) Makes recommendation on Director selection; (3) Presents proposed policies and budgets
to the Administration Board; (4) Approves disbursement of funds by the Director.
The Director presents a proposed budget to the Operating Board on or before August 15 of each year. The proposed
budget is then presented to the Administration Board by September 1 of each year. The Administration Board can
make changes to the proposed Valley Com budget as it finds necessary, but final approval falls to the legislative
body of each participating city, in accordance with the provisions of the Interlocal Agreement.
The share of equity belonging to the five (5) participating cities is as follows:
ITEM
FEDERAL
RENTON KENT AUBURN TUKWILA WAY TOTAL
Equity January 1, 2014 $ 5,240,607 $7,378,791 $4,959,646 $2,927,158 $3,508,470 $24,014,672
Current Year Increase /(Decrease) 109,645 151,995 119,731 47,125 111,474 539,970
Equity December31, 2014 $ 5,350,252 $7,530,786 $5,079,377 $2,974,283 $3,619,944 $24,554,642
Percent of Equity 21.79% 30.67% 20.69% 12.11% 14.74% 100.00%
Liabilities are the responsibility of the five participating cities in direct proportion to their equity position. In August
1993, Valley Com entered into an interlocal cooperation agreement, pursuant to RCW 39.34 RCW, with the sub-
regions of King County, Seattle, and the Eastside Public Safety Communications Agency. This agreement governs
the development, acquisition and installation of the 800 MHz emergency radio communications system funded by
a $57 million King County levy approved in November 1992. This agreement provides that upon voluntary
termination of any sub - region's participation in the system, it surrenders its radio frequencies, relinquishes its
equipment and transfers any unexpended levy proceeds and associated equipment replacement reserves to
another sub - region or consortium of sub - regions. Thus, in accordance with this agreement, the participating cities
of Valley Com have no equity interest in Valley Com's 800 -MHz communications system.
During 2000, the Valley Communications Center Development Authority was created to issue $12,758,000 in
General Obligation Bonds to finance construction, equipment, and land for a new facility completed in 2002. Each
of the five participating cities is responsible for one -fifth of the debt obligation, which originally was $2,551,600 per
City. The basic agreement shall not be terminated until all bonds issued by Valley Communications Center
Development Authority have been paid and retired. The investment in joint venture fore Valley Com on the
Statement of Net Assets includes Tukwila's $220,000 share of the outstanding Valley Com debt.
A complete set of financial statements are available from Valley Communications Center, 27519 108th Ave SE,
Kent, WA 98030, or by telephone 253 - 372 -1300.
South Correctional Entity (SCORE)
The South Correctional Entity (SCORE) consolidated correctional facility was established February 25, 2009, when
an Interlocal Agreement (the "Original Interlocal Agreement ") was entered into by seven participating municipal
governments, the "Member Cities" of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila,
under the authority of the "Interlocal Cooperation Act" (RCW 39.34). This "Original Interlocal Agreement" was
amended and restated October 1, 2009 and named the City of Des Moines as the "Host City" and the remaining
Member Cities as "Owner Cities ". This interlocal agreement is known as the "Formation Interlocal Agreement ".
Pursuant to a separate "Host City Agreement" dated October 1, 2009, the Host City will not enjoy the same equity
position as the Owner Cities until all debts issued are paid and the Host City fulfills all of its obligations as outlined
67
in the Host City Agreement. Pursuant to SCORE financial policies, all unexpected funds or reserve funds shall be
distributed based on the percentage of the Member City's average daily population at the SCORE Facility for the
last three (3) years regardless of its Owner City or Host City status.
SCORE, a governmental administrative agency pursuant to RCW 39.34.030(3), has the power to acquire, construct,
own, operate, maintain, equip, and improve a correctional facility known as the "SCORE Facility" and to provide
correctional services and functions incidental thereto, for the purpose of detaining arrestees and sentenced
offenders in the furtherance of public safety and emergencies within the jurisdiction of the Member Cities. The
SCORE Facility may serve the Member Cities and Subscribing Agencies which are in need of correctional facilities.
Any agreement with a Subscribing Agency shall be in writing and approved by SCORE as provided within the
SCORE Formation Interlocal Agreement.
Financing for the acquisition, construction, equipping, and improvement of the SCORE Facility was provided by
bonds issued by the South Correctional Entity Facility Public Development Authority (the "SCORE PDA "), a public
development authority chartered by the City of Renton pursuant to RCW 35.21.730 through 35.21.755. The SCORE
PDA issued $86 million in special obligation bonds in 2009 (the "Bonds ") to construct, develop, acquire and equip
the SCORE Facility. Pursuant to the Formation Interlocal Agreement and the ordinances of each city, each Owner
City (which includes the Cities of Auburn, Burien Federal Way, Renton, SeaTac, and Tukwila) is obligated to budget
for and pay its share, and only its share, of the principal of and interest on the Bonds as the same become due and
payable. Each Owner City's obligation to pay its portion is an irrevocable, unconditional full faith and credit
obligation of such Owner City, payable from property taxes levied within the constitutional and statutory authority
provided without a vote of the electors of the Owner City on all of the taxable property within the Owner City and
other sources of revenues available therefor. The following is a summary of the debt service requirements for the
Bonds:
SUMMARY OF DEBT SERVICE REQUIREMENTS
The City of Tukwila reports its share of equity interest in the Governmental Activities column within the Government -
wide financial statements under non - current assets. The following is condensed (unaudited) financial information
as of December 31, 2014 related to SCORE:
ITEM
DES FEDERAL
AUBURN BURIEN MOINES WAY RENTON SEATAC TUKWILA TOTAL
Equity January 1, 2014 $ 2,517,237 $ 294,323 $ 107,970 $ 1,820,940 $ 2,548,219 $ 331,708 $ 601,934 $ 8,222,331
Current Year Increase /(Decrease) 1,725,997 221,087 184,190 1,855,784 1,672,186 380,958 478,536 6,518,738
Equity December31, 2014 $ 4,243,234 $ 515,410 $ 292,160 $ 3,676,724 $ 4,220,405 $ 712,666 $ 1,080,470 $14,741,069
Percent of Equity 28.79% 3.50% 1.98% 24.94% 28.63% 4.83% 7.33% 100.00%
68
Debt Service Schedule
Debt Service Allocation to Owner Cities
35% BABs
Auburn
Buden
Federal Way
Renton
SeaTac
Tukwila
Year
Principal
Interest
Subsidy
Total
31%
4%
18%
36%
3%
8%
2015
$ 1,990,000
$ 4,995,069
$ (1,514,410)
$ 5,470,659
$ 1,695,905
$ 218,826
$ 984,718
$ 1,969,438
$ 164,120
$ 437,653
2016
2,065,000
4,911,886
(1,513,594)
5,463,292
1,693,621
218,531
983,392
1,966,785
163,899
437,064
2017
2,145,000
4,820,241
(1,503,576)
5,461,665
1,693,116
218,466
983,100
1,966,200
163,850
436,933
2018
2,240,000
4,715,979
(1,503,576)
5,452,403
1,690,245
218,096
981,433
1,962,865
163,572
436,192
2019
2,310,000
4,602,229
(1,467,237)
5,444,992
1,687,948
217,799
980,099
1,960,197
163,350
435,599
2020 -2024
12,905,000
21,102,168
(7,183,090)
26,824,078
8,315,464
1,072,963
4,828,334
9,656,668
804,722
2,145,926
2025 -2029
15,675,000
16,833,706
(6,067,796)
26,440,910
8,196,682
1,057,636
4,759,364
9,518,728
793,227
2,115,273
2030 -2034
19,265,000
11,158,380
(4,128,483)
26,294,897
8,151,418
1,051,796
4,733,081
9,466,163
788,847
2,103,592
2035 -2039
23,775,000
4,064,705
(1,697,914)
26,141,791
8,103,955
1,045,672
4,705,522
9,411,045
784,254
2,091,343
Totals
$82,370,000
$77,204,363
$ (26,579,676)
$132,994,687
$41,228,354
$ 5,319,786
$23,939,043
$47,878,090
$ 3,989,841
$10,639,575
The City of Tukwila reports its share of equity interest in the Governmental Activities column within the Government -
wide financial statements under non - current assets. The following is condensed (unaudited) financial information
as of December 31, 2014 related to SCORE:
ITEM
DES FEDERAL
AUBURN BURIEN MOINES WAY RENTON SEATAC TUKWILA TOTAL
Equity January 1, 2014 $ 2,517,237 $ 294,323 $ 107,970 $ 1,820,940 $ 2,548,219 $ 331,708 $ 601,934 $ 8,222,331
Current Year Increase /(Decrease) 1,725,997 221,087 184,190 1,855,784 1,672,186 380,958 478,536 6,518,738
Equity December31, 2014 $ 4,243,234 $ 515,410 $ 292,160 $ 3,676,724 $ 4,220,405 $ 712,666 $ 1,080,470 $14,741,069
Percent of Equity 28.79% 3.50% 1.98% 24.94% 28.63% 4.83% 7.33% 100.00%
68
The investment in joint venture for SCORE on the Statement of Net Position includes Tukwila's share of debt issued
in 2009. The City's share of SCORE debt is $6,430,400. See Note 11 for additional information on long -term debt.
Completed financial statements for SCORE and SCORE PDA can be obtained from the SCORE office, 20817 17th
Avenue South, Des Moines, WA 98198.
NOTE 9 — PENSION PLANS
Washington State Department of Retirement Systems
Substantially all City of Tukwila full -time and qualifying part -time employees participate in one of the following
statewide retirement systems administered by the Washington State Department of Retirement Systems, under
cost - sharing multiple - employer public employee defined benefit retirement plans. The Department of Retirement
Systems (DRS), a department within the primary government of the State of Washington, issues a publicly available
comprehensive annual financial report (CAFR) that includes financial statements and required supplementary
information for each plan. The DRS CAFR may be obtained by writing to: Department of Retirement Systems,
Communications Unit, P.O. Box 48380, Olympia, WA 98504 -8380; or it may be downloaded from the DRS website
at www.drs.wa.gov.
A. Public Employees Retirement System (PERS) Plans 1, 2, and 3
Plan Description
The Legislature established PERS in 1947. Membership in the system includes: elected officials; state employees;
employees of the Supreme, Appeals, and Superior courts; employees of legislative committees; employees of
district and municipal courts; and employees of local governments. Membership also includes higher education
employees not participating in higher education retirement programs. Approximately 49 percent of PERS salaries
are accounted for by state employment. PERS retirement benefit provisions are established in Chapters 41.34 and
41.40 RCW and may be amended only by the State Legislature.
PERS is a cost - sharing multiple - employer retirement system comprised of three separate plans for membership
purposes: Plans 1 and 2 are defined benefit plans and Plan 3 is a defined benefit plan with a defined contribution
component.
PERS members who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or after
October 1, 1977 and by either, February 28, 2002 for state and higher education employees, or August 31, 2002
for local government employees, are Plan 2 members unless they exercised an option to transfer their membership
to Plan 3. PERS members joining the system on or after March 1, 2002 for state and higher education employees,
or September 1, 2002 for local government employees have the irrevocable option of choosing membership in
either PERS Plan 2 or PERS Plan 3. The option must be exercised within 90 days of employment. Employees who
fail to choose within 90 days default to Plan 3.
PERS is comprise of and reported as three separate plans for accounting purposes: Plan 1, Plan 2/3, and Plan 3.
Plan 1 accounts for the defined benefits of Plan 1 members. Plan 2/3 accounts for the defined benefits of Plan 2
members and the defined benefit portion of benefits for Plan 3 members. Plan 3 accounts for the defined contribution
portion of benefits for Plan 3 members. Although members can only be a member of either Plan 2 or Plan 3, the
defined benefit portions of Plan 2 and Plan 3 are accounted for in the same pension trust fund. All assets of this
Plan 2/3 may legally be used to pay the defined benefits of any of the Plan 2 or Plan 3 members or beneficiaries,
as defined by the terms of the plan. Therefore, Plan 2/3 is considered to be a single plan for accounting purposes.
PERS Plan 1 and Plan 2 retirement benefits are financed from a combination of investment earnings and employer
and employee contributions. Employee contributions to the PERS Plan 1 and Plan 2 defined benefit plans accrue
interest at a rate specified by the Director of DRS. During DRS' Fiscal Year 2013, the rate was five and on -half
percent compounded quarterly. Members in PERS Plan 1 and Plan 2 can elect to withdraw total employee
69
contributions and interest thereon, in lieu of any retirement benefit, upon separation from PERS- covered
employment.
PERS Plan 1 members are vested after the completion of five years of eligible service.
PERS Plan 1 members are eligible for retirement from active status at any age with at least 30 years of service, at
age 55 with 25 years of service, or at age 60 with at least 5 years of service. Plan 1 members retiring from inactive
status prior to the age of 65 may receive actuarially reduced benefits.
The monthly benefit is two percent of the average final compensation (AFC) per year of service, but the benefit may
not exceed 60 percent of AFC. The AFC is the monthly average of the 24 consecutive highest -paid service credit
months.
PERS Plan 1 retirement benefits are actuarially reduced to reflect the choice, if made, of a survivor option.
PERS Plan 1 members may elect to receive an optional COLA that provides an automatic annual adjustment based
on the Consumer Price Index. The adjustment is capped at three percent annually. To offset the cost of this annual
adjustment, the benefit is reduced.
PERS Plan 1 provides duty and non -duty disability benefits. Duty disability retirement benefits for disablement prior
to the age of 60 consist of a temporary life annuity. The benefit amount is $350 a month, or two- thirds of the monthly
AFC, whichever is less. The benefit is reduced by any workers' compensation benefit and is payable as long as the
member remains disabled or until the member attains the age of 60, at which time the benefit is converted to the
member's service retirement amount.
A member with five years of covered employment is eligible for non -duty disability retirement. Prior to the age of 55,
the benefit amount is two percent of the AFC for each year of service reduced by two percent for each year that the
member's age is less than 55. The total benefit is limited to 60 percent of the AFC and is actuarially reduced to
reflect the choice of a survivor option. Plan 1 members may elect to receive an optional COLA amount (based on
the Consumer Price Index), capped at 3 percent annually. To offset the cost of this annual adjustment, the benefit
is reduced.
PERS Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members are eligible
for normal retirement at the age of 65 with five years of service. The monthly benefit is two percent of the AFC per
year of service. The AFC is the monthly average of the 60 consecutive highest -paid service months. There is now
cap on years of service credit; and a cost -of- living allowance is granted (based on the Consumer Price Index),
capped at 3 percent annually.
PERS Plan 2 members who have at least 20 years of service credit, and are 55 years of age or older, are eligible
for early retirement with a reduced benefit. The benefit is reduced by an early retirement factor (ERF) that varies
according to age, for each year before age 65.
PERS Plan 2 members who have 30 or more years of service credit and are at least 55 years old can retire under
one of two provisions, if hired prior to May 1, 2013:
• With a benefit that is reduced by three percent for each year before age 65; or
• With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return -to -work
rules.
PERS Plan 2 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of 5
percent for each year of retirement before age 65. This option is available only to those who are age 55 or older
and have at least 30 years of service.
70
PERS Plan 2 retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor option.
PERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component and member
contributions finance a defined contribution component. As established by Chapter 41.34 RCW, employee
contribution rates to the defined contribution component range from 5 percent to 15 percent of salaries, based on
member choice. Members who do not choose a contribution rate default to a 5 percent rate. There are currently no
requirements for employer contributions to the defined contribution component of PERS Plan 3
PERS Plan 3 defined contribution retirement benefits are dependent upon the results of investment activities.
Members may elect to self- direct the investment of their contributions. Any expenses incurred in conjunction with
self- directed investments are paid by members. Absent a member's self- direction. PERS Plan 3 contributions are
invested in the Retirement Strategy Fund that assumes the member will retire at age 65.
For DRS' fiscal year 2014, PERS Plan 3 employee contributions were $105.2 million, and plan refunds paid out
were $82.0 million.
The defined benefit portion of PERS Plan 3 provides members a monthly benefit that is one percent of the AFC per
year of service. The AFC is the monthly average of the 60 consecutive highest -paid service months. There is no
cap on years of service credit, and Plan 3 provides the same cost -of- living allowance as Plan 2.
Effective June 7, 2006, PERS Plan 3 members are vested in the defined benefit portion of their plan after ten years
of service; or after five years of service, if twelve months of that service are earned after age 44; or after five service
credit years earned in PERS Plan 2 by June 1, 2003. Plan 3 members are immediately vested in the defined
contribution portion of their plan.
Vested Plan 3 members are eligible for normal retirement at age 65, or they may retire early with the following
conditions and benefits:
• If they have at least ten service credit years and are 55 years old, the benefit is reduced by an ERF that varies
with age, for each year before age 65.
• If they have 30 service credit years and are at least 55 years old, and were hired before May 1, 2013, they
have the choice of a benefit that is reduced by three percent for each year before age 65; or a benefit with a
smaller (or no) reduction factor (depending on age) that imposes stricter return -to -work rules.
• If they have 30 service credit years, are at least 55 years old, and were hired after May 1, 2013, they have
the option to retire early by accepting a reduction of 5 percent for each year before age 65.
PERS Plan 3 benefit retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor
option.
PERS Plan 2 and Plan 3 provide disability benefits. There is no minimum amount of service credit required for
eligibility. The Plan 2 monthly benefit amount is two percent of the AFC per year of service. For Plan 3, the monthly
benefit amount is one percent of the AFC per year of service. These disability benefit amounts are actuarially
reduced for each year that the member's age is less than 65, and to reflect the choice of a survivor option. There is
no cap on years of service credit, and a cost -of- living allowance is granted (based on the Consumer Price Index)
capped at three percent annually.
PERS members meeting specific eligibility requirements have options available to enhance their retirement benefits.
Some of these options are available to their survivors.
A one -time duty - related death benefit is provided to the beneficiary or estate of a PERS member who dies as a
result of injuries sustained in the course of employment, or if the death resulted from an occupational disease or
71
infection that arose naturally and proximately out of the member's covered employment, if found eligible by the
Department of Labor and Industries.
From January 1, 2007 through December 31, 2007, judicial members of PERS were given the choice to elect
participation in the Judicial Benefit Multiplier (JBM) Program enacted in 2006. Justices and judges in PERS Plan 1
and Plan 2 were able to make an irrevocable election to pay increased contributions that would fund a retirement
benefit with a 3.5 percent multiplier. The benefit would be capped at 75 percent of AFC. Judges in PERS Plan 3
could elect a 1.6 percent of pay per year of service benefit, capped at 37.5 percent of AFC.
Newly elected or appointed justices and judges who chose to become PERS members on or after January 1, 2007,
or who had not previously opted into PERS membership, were required to participate in the JBM Program.
There are 1,176 participating employers in PERS. Membership in PERS consisted of the following as of the latest
actuarial valuation date for the plans of June 30, 2013:
Type of Membership Membership
Retirees and Beneficiaries Receiving Benefits 85,328
Terminated Plan Members Entitled to but not yet Receiving Benefits 31,047
Active Plan Members Vested 150,706
Active Plan Members Non - vested 101,191
Total 368,272
Funding Policy
Each biennium, the state Pension Funding Council adopts PERS Plan 1 employer contribution rates, PERS Plan 2
employer and employee contribution rates, and PERS Plan 3 employer contribution rates. Employee contribution
rates for Plan 1 are established by statute at six percent for state agencies and local government unit employees,
and at 7.5 percent for state government elected officials. The employer and employee contribution rates for Plan 2
and the employer contribution rate for Plan 3 are developed by the Office of the State Actuary to fully fund Plan 2
and the defined benefit portion of Plan 3. Under PERS Plan 3, employer contributions finance the defined benefit
portion of the plan and member contributions finance the defined contribution portion. The Plan 3 employee
contribution rates range from 5 to 15 percent.
As a result of the implementation of the Judicial Benefit Multiplier Program in January 2007, a second tier of
employer and employee rates was developed to fund, along with investment earnings, the increased retirement
benefits of those justices and judges that participate in the program.
The methods used to determine the contribution requirements are established under state statute in accordance
with RCW 41.40 and RCW 41.45.
The required contribution rates expressed as a percentage of current -year covered payroll, as of December 31,
2014, are as follows:
Members Not Participating in JBM:
PERS Plan II PERS Plan III
Employer* 9.21% 9.21% **
Employee 4.92% Minimum 5 %°to
maximum 15 /o
* The employer rates include the employer administrative expense fee currently set at 0.18 %.
** Plan 3 defined benefit portion only.
72
Both the City and the employees made the required contributions. The City's required contributions for the years
ended December 31 were as follows:
PERS Plan II PERS Plan III
2014 $ 1,214,094 $ 201,370
2013 1,069,130 177,312
2012 902,516 144,456
B. Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) Plan 1 and 2
Plan Description
LEOFF was established in 1970 by the Legislature. Membership includes all full -time, fully compensated, local law
enforcement commissioned officers, firefighters and, as of July 24, 2005, emergency medical technicians. LEOFF
membership is comprised primarily of non -state employees, with Department of Fish and Wildlife enforcement
officers, who were first included effective July 27, 2003, being an exception. LEOFF retirement benefit provisions
are established in chapter 41.26 RCW and may be amended only by the State Legislature.
LEOFF is a cost - sharing multiple - employer retirement system comprised of two separate defined benefit plans.
LEOFF members who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or after
October 1, 1977 are Plan 2 members.
Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 to provide governance
of LEOFF Plan 2. The Board's duties include adopting contribution rates and recommending policy changes to the
Legislature.
LEOFF retirement benefits are financed from a combination of investment earnings, employer and employee
contributions, and a special funding situation in which the state pays through legislative appropriations. Employee
contributions to the LEOFF Plan 1 and Plan 2 defined benefit plans accrue interest at a rate specified by the Director
of DRS. During DRS' Fiscal Year 2013, the rate was five and one -half percent compounded quarterly. Members in
LEOFF Plan 1 and Plan 2 can elect to withdraw total employee contributions and interest earnings, in lieu of any
retirement benefit, upon separation from LEOFF- covered employment.
LEOFF Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members are eligible
for retirement with five years of service at the age of 50.
The benefit per year of service calculated as a percent of final average salary (FAS) is as follows:
Term of Service Percent of final Average
20 or more years
10 but less than 20 years
5 but less than 10 years
2.0%
1.5%
1.0%
The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same
position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest
consecutive 24 months' salary within the last ten years of service. A cost -of- living allowance is granted (based on
the Consumer Price Index).
LEOFF Plan 1 provides death and disability benefits. Death benefits for survivors of Plan 1 members on active duty
consist of the following: (1) If there is an eligible spouse, 50 percent of the FAS, plus 5 percent of FAS for each
73
eligible surviving child, with a limitation on the combined allowances of 60 percent of the FAS; or (2) If there is no
eligible spouse, eligible children receive 30 percent of FAS for the first child plus 10 percent for each additional
child, subject to a 60 percent limitation of FAS, divided equally.
A one -time duty - related death benefit is provided to the beneficiary or the estate of a LEOFF Plan 1 member who
dies as a result of injuries or illness sustained in the course of employment, or if the death resulted from an
occupational disease or infection that arose naturally and proximately out of the member's covered employment, if
found eligible by the Department of Labor and Industries.
The LEOFF Plan 1 disability allowance is 50 percent of the FAS plus 5 percent for each child up to a maximum of
60 percent. Upon recovery from disability before the age of 50, a member is restored to service with full credit for
service while disabled. Upon recovery after the age of 50, the benefit continues as the greater of the member's
disability benefit or service retirement benefit.
LEOFF Plan 2 members are vested after the completion of five years of eligible service.
Plan 2 members are eligible for retirement at the age of 53 with five years of service, or at the age of 50 with 20
years of service. Plan 2 members receive a benefit of two percent of the FAS per year of service. (the FAS is based
on the highest consecutive 60 months), actuarially reduced to reflect the choice of a survivor option. Members who
retire prior to the age of 53 receive reduced benefits. If the member has at least 20 years of service and is age 50,
the reduction is three percent for each year prior to age 53. Otherwise, the benefits are actuarially reduced for each
year prior to age 53. A cost -of- living allowance is granted (based on the Consumer Price Index), capped at three
percent annually.
LEOFF Plan 2 provides disability benefits. There is no minimum amount of service credit required for eligibility. The
Plan 2 benefit amount is two percent of the FAS for each year of service. Benefits are reduced to reflect the choice
of survivor option and for each year that the member's age is less than 53, unless the disability is duty - related. If
the member has at least 20 years of service and is age 50, the reduction is three percent for each year prior to age
53.
A disability benefit equal to 70 percent of their FAS, subject to offsets for workers' compensation and Social Security
disability benefits received, is also available to those LEOFF Plan 2 members who are catastrophically disabled in
the line of duty and incapable of future substantial gainful employment in any capacity. Effective June 2010, benefits
to LEOFF Plan 2 members who are catastrophically disabled include payment of eligible health care insurance
prem i um s.
Members of LEOFF Plan 2 who leave service because of a line of duty disability are allowed to withdraw 150 percent
of accumulated member contributions. This withdrawal benefit is not subject to federal income tax. Alternatively,
members of LEOFF Plan 2 who leave service because of a line of duty disability may be eligible to receive a
retirement benefit of at least 10 percent of FAS and two percent per year of service beyond five years. The first 10
percent of the FAS is not subject to federal income tax.
LEOFF Plan 2 retirees may return to work in an eligible position covered by another retirement system, choose
membership in that system and suspend their pension benefits, or not choose membership and continue receiving
pension benefits without interruption.
A one -time duty - related death benefit is provided to the beneficiary or the estate of a LEOFF Plan 2 member who
dies as a result of injuries or illness sustained in the course of employment, or if the death resulted from an
occupational disease or infection that arose naturally and proximately out of the member's covered employment, if
found eligible by the Department of Labor and Industries.
Benefits to eligible surviving spouses and dependent children of LEOFF Plan 2 members killed in the course of
employment include the payment of eligible health care insurance premiums.
74
Legislation passed in 2009 provides to the Washington state registered domestic partners of LEOFF Plan 2
members the same treatment as married spouses, to the extent that the treatment is not in conflict with federal
laws.
LEOFF members meeting specific eligibility requirements have options available to enhance their retirement
benefits. Some of these options are available to their survivors.
There are 374 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest
actuarial valuation date for the plans of June 30, 2013:
Type of Membership Membership
Retirees and Beneficiaries Receiving Benefits 10,511
Terminated Plan Members Entitled to But Not Yet Receiving Benefits 699
Active Plan Members Vested 16,830
Active Plan Members Non - vested 1,600
Total 29,640
Funding Policy
Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund the plans.
Starting on July 1, 2000, Plan 1 employers and employees contribute zero percent, as long as the plan remains
fully funded. Plan 2 employers and employees are required to pay at the level adopted by the LEOFF Plan 2
Retirement Board.
The Legislature, by means of a special funding arrangement, appropriates money from the state General Fund to
supplement the current service liability and fund the prior service costs of Plan 2 in accordance with the
recommendations of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. This special funding
situation is not mandated by the state constitution and this funding could be changed by statute. For DRS' Fiscal
Year 2014, the state contributed $55.6 million to LEOFF Plan 2.
The methods used to determine the contribution requirements are established under state statute in accordance
with Chapters 41.26 and 41.45 RCW.
The required contribution rates expressed as a percentage of current -year covered payroll, as of December 31,
2014, are as follows:
Employer
Employee
State
LEOFF Plan I LEOFF Plan II
0.18%
0.00%
5.23%
8.41%
3.36%
Both the City and the employees made the required contributions. The City's required contributions for the years
ended December 31 were as follows:
LEOFF Plan I LEOFF Plan 11
2014 $182 $772,102
2013 229 737,626
2012 410 691,175
75
C. Public Safety Employee's Retirement System (PSERS) Plan 2
Plan Description
PSERS was created by the 2004 Legislature and became effective July 1, 2006. PSERS retirement benefit
provisions have been established by Chapter 41.37 RCW and may be amended only by the State Legislature.
PSERS is a cost - sharing multiple - employer retirement system comprised of a single defined benefit plan, PSERES
Plan 2.
PSERS Plan 2 membership includes:
• PERS 2 or 3 employees hired by a covered employer before July 1, 2006, who meet at least one of the
PSERS eligibility criteria and elected membership during the election period of July 1, 2006 to September 30,
2006; and
• Employees, hired on or after July 1, 2006 by a covered employer, that meet at least one of the PSERS
eligibility criteria.
Covered employers include:
• State of Washington agencies: Department of Corrections, Department of Natural Resources, Gambling
Commission, Liquor Control Broad; Parks and Recreation Commission, and Washington State Patrol;
• Washington State counties;
• Washington State cities except for Seattle, Spokane and Tacoma; and
• Correctional entities formed by PSERS employers under the Interlocal Cooperation Act.
To be eligible for PSERS, an employee must work on a full -time basis and:
• Have completed a certified criminal justice training course with authority to arrest, conduct criminal
investigations, enforce the criminal laws of Washington and carry a firearm as part of the job; or
• Have primary responsibility to ensure the custody and security of incarcerated or probationary individuals; or
• Function as a limited authority Washington peace officer, as defined in RCW 10.93.020; or
• Have primary responsibility to supervise eligible members who meet the above criteria.
PSERS retirement benefits are financed from a combination of investment earnings and employer and employee
contributions. Employee contributions to the plan accrue interest at a rate specified by the Director of DRS. During
DRS' Fiscal Year 2014, the rate was five and one -half percent compounded quarterly. Members in PSERS Plan 2
can elect to withdraw total employee contributions and interest thereon, in lieu of any retirement benefit, upon
separation from PSERS- covered employment.
PSERS Plan 2 members are vested after the completion of five years of eligible service.
PSERS members may retire with a monthly benefit of two percent of the average final compensation (AFC) at the
age of 65 with five years of service, or at the age of 60 with at least 10 years of PSERS service credit, or at age 53
with 20 years of service. The AFC is the monthly average of the member's 60 consecutive highest -paid service
credit months. There is no cap on years of service credit; and a cost -of- living allowance is granted (based on the
Consumer Price Index), capped at three percent annually.
PSERS members who retire prior to the age of 60 receive reduced benefits. If retirement is at age 53 or older with
at least 20 years of service, a three percent per year reduction for each year between the age at retirement and
age 60 applies.
76
PSERS Plan 2 provides disability benefits. There is no minimum amount of service credit required for eligibility. The
monthly benefit is two percent of the AFC for each year of service. The AFC is based on the member's 60
consecutive highest creditable months of service. Benefits are actuarially reduced for each year that the member's
age is less than 60 (with ten or more service credit years in PSERS), or less than 65 (with fewer than ten service
credit years). There is no cap on years of service credit, and a cost -of- living allowance is granted (based on the
Consumer Price Index), capped at three percent annually.
PSERS members meeting specific eligibility requirements have options available to enhance their retirement
benefits. Some of these options are available to their survivors.
A one -time duty - related death benefit is provided to the beneficiary or the estate of a PSERS member who dies as
a result of injuries or illness sustained in the course of employment, or if the death resulted from an occupational
disease or infection that arose naturally and proximately out of the member's covered employment, if found eligible
by the Department of Labor and Industries.
There are 75 participating employers in PSERS. Membership in PSERS consisted of the following as of the latest
actuarial valuation date for the plan of June 30, 2013:
Type of Membership Membership
Retirees and Beneficiaries Receiving Benefits 43
Terminated Plan Members Entitled to But Not Yet Receiving Benefits 119
Active Plan Members Vested 4,513
Active Plan Members Non - vested 1,383
Total 6,058
Funding Policy
Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee contribution rates. The
employer and employee contribution rates for Plan 2 are developed by the Office of the State Actuary to fully fund
Plan 2.
The methods used to determine the contribution requirements are established under state statue in the accordance
with Chapters 41.37 and 41.45 RCW.
The required contribution rates expressed as a percentage of current -year covered payroll, as of December 31,
2014 are as follows:
Employer
Employee
PSERS Plan II
10.54%
6.36%
Both the City and the employees made the required contributions. The City's required contributions for the years
ended December 31 were as follows:
PSERS Plan 11
2014 $15,773
2012 14,175
2011 11,187
77
D. Firemen's Pension System
Summary of Significant Accounting Policies
Investments are valued and reported at fair value.
Plan Description
Plan Administration: The Firefighters" Pension Fund is administered by the City of Tukwila. The plan is a single -
employer defined benefit pension plan that provides pensions for firefighters that were hired prior to 1970.
The firefighters' pension board consists of the following five members: the chairperson of the fire commissioners for
said district who shall be chairperson of the board, the county auditor, county treasurer, and in addition, two regularly
employed or retired firefighters elected by secret ballot of the employed and retired firefighters. Retired members
who are subject to the jurisdiction of the pension board have both the right to elect and the right to be elected under
this section. The first members to be elected by the firefighters shall be elected annually for a two -year term. The
two firefighter - elected members shall, in turn, select a third eligible member who shall serve in the event of an
absence of one of the regularly elected members.
Plan membership is limited to active members of the Firefighters' Pension Fund (FPF) as of March 1, 1970. On that
date, the Washington Law Enforcement Officers' and Firefighters' System (LEOFF) was established. FPF is
responsible for paying the pensions of those members retired prior to March 1, 1970 and for providing the "excess
benefit ", the excess of FPF formula benefits over the LEOFF benefits. Therefore, the plan is closed to new
members. At December 31, 2014, FPF membership consisted of the following:
Type of Membership Total
Inactive plan members retired prior to March 1, 1970 0
Inactive plan members retired March 1, 1970 or after 11
Active Plan Members 0
Total 11
Benefits Provided
All benefit terms are in statutes RCW 41.16, 41.18, and 41.26. FPF provides retirement, disability, and death
benefits. Each firefighter in service on March 1, 1970 receives the greater of the benefit payable under the
Washington Law Enforcement Officers' and Firefighters' Retirement System and the benefits available under the
provisions of prior law. Where benefits under the old law exceed those under the new law for any firefighter, the
excess benefits are paid from the FPF of the city employing the member on March 1, 1970.
All members are retired and drawing benefits. Benefit terms provide for cost -of- living adjustments to each member's
retirement benefit. There are two types of increases: escalation by salary in proportion to the current salary of the
rank from which the firefighter retired, or an increase proportionate to the increase in the Seattle -area CPI, with the
change computed annually. Regardless of the increase (or decrease) in the CPI, the benefits are increased at least
2% each year. The former applies to firefighters who retired from service after 1969, their survivors, and to
firefighters who retired for duty disability (but not their survivors) after 1961. The latter applies to all other types of
monthly benefits.
Contributions
As long as the FPF provides for benefits to covered members, the City will be eligible to receive a share of the
State's distribution of the fire insurance premium taxes. The amount the City receives is 25% of all monies received
by the State from taxes on fire insurance premiums. Contributions can also come from taxes paid pursuant to the
provisions of RCW 41.16.060. This statute require that each municipality levy up to $0.45 (only $0.225 of which can
78
be in excess of the property tax limit pursuant to RCW 84.52.043) per $1,000 of assessed valuation, based on
reports by a qualified actuary, to maintain the fund.
The actuarial assumptions were provided by an independent actuary.
Investments
It is the policy of the City of Tukwila to invest public funds in a manner that will provide maximum security with the
highest investment return while meeting the daily cash flow demands of the City, while conforming to all state and
local statutes governing the investment of public funds.
The money- weighted rate of return expresses investment performance, net of investment expense, adjusted for the
changing amount actually invested.
Concentrations. Approximately 70% of investments held are with Columbia Bank
City's Net Pension Liability
The components of the City's net pension liability at December 31, 2014 are as follows:
Total pension liability $ 1,840,929
Less: Plan fiduciary net position 1,413,026
City's net pension liability $ 427,903
Plan fiduciary net position as a percentage of
the total pension liability
Actuarial Assumptions
76.76%
The total pension liability was determined by an actuarial valuation as of December 31, 2014, using the following
actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.75%
Salary increases 3.75%
Investment rate of return 2.75%
Healthy life mortality rates were based on the RP -2014 mortality table, total dataset, fully generational projected
with Scale MP -2014, set back one year for males and set forward one year for females. Disabled life mortality rates
were based on the RP -2014 mortality table, total dataset, fully generational projected with Scale MP -2014, set back
two years for males and females.
The long -term expected rate of return on pension plan investments assumption was based on the nature and mix
of current and expected pension plan assets over a period of time representative of the expected length of time
between the first day of service and date of the last benefit payment.
The discount rate used to measure the total pension liability was 2.75 %. The projection of cash flows used to
determine the discount rate assumed City contributions were equal to revenue received from Fire Insurance
premiums and the amount received would increase at the inflation rate of 2.75 %. Based on this assumption, the
pension plan's fiduciary net position was projected to be available to make all projected future benefit payment of
current plan members. Therefore, the long -term expected rate of return on pension plan investments was applied
to all periods of projected benefit payments to determine the total pension liability.
79
Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension liability
of the City, calculated using the discount rate of 2.75 %, as well as what the City's net pension liability would be if it
were calculated using a discount rate that is 1- percentage -point lower, 2.75 %, or 1- percentage point higher, 3.75 %,
than the current rate:
City's net pension liability 1')/0 Decrease
Basis of Valuation
Current Discount 1% Increase
Rate
$ 2,095,120 $ 1,840,929 $ 1,629,202
A general summary of the substantive plan used as the basis of the valuation follows.
Applicable Statutes
Benefits
RCW 41.16, 41.18, 41.26
Each firefighter in service on March 1, 1970 receives the greater of the benefit
payable under LEOFF or FPF. Where benefits under the old law exceed those
under the new for any firefighter, the excess benefits are paid from the FPF of
the city employing the member on March 1, 1970.
Service Retirement Benefit
Member Eligibility: age 50 and 25 years of service (RCW 41.18.040) or Age 50 and five
years of service (RCW 41.26.090).
Survivor
Amount of benefit: 50% of salary plus an additional 2% for each year of service
in excess of 25 years. Maximum benefit of 60% of salary (does not apply for
those retiring after July 1, 2006).
Eligibility: spouse or child
Amount of benefit: continuation of the firefighter's benefit. (If spouse — same,
plus additional 5% of salary per child. If no spouse — 30% of salary for first
child, 10% for each additional child. Maximum of 60% of salary).
Duty Disability Retirement Benefit
Member
Eligibility: disabled after six -month waiting period.
Amount of benefit: determined the same as Service Retirement Benefit.
Recovery: restoration to service.
Survivor See Survivor's Benefit section under Service Retirement.
Non Duty Disability Retirement Benefit
Member
Survivor
Eligibility: disabled after 90 -day waiting period. Amount of benefit: 50% of
salary, or service retirement benefit, if greater.
Recovery: see Duty Disability Retirement.
Limitations: no benefits payable if firefighter employed elsewhere when
disabled.
Eligibility: spouse or child
Amount of benefit:
33.3% to widow or children only.
45.8% to widow and one child.
47.6% to widow and two children.
50.0% to widow and three children.
80
Duty Death Benefit
Non Duty Death Benefit
Special Provisions
Vesting
Deferred Benefit
Postretirement Increase
Benefits Payable
Under LEOFF
Type 1
Type 2
Applicability
Minimum Benefit
Funeral Benefit
Participant Summary
January 1, 2015
Age and service determined as of the census date.
Eligibility: spouse or child
Amount of benefit: If spouse — 50% of salary plus an additional 5% of salary
per child; maximum benefit of 60% of salary. If no spouse — 50% of salary to
children.
Eligibility: spouse or child
Amount of benefit: provisions the same as Survivor's Benefit under Non -Duty
Disability Retirement.
Under disability or death benefits, a surviving spouse may elect a lump -sum
payment of $5,000 in lieu of future monthly benefits.
Termination after 20 years of service (RCW 41.18.130) or five years of service
(RCW 41.26.090).
Commences: when a firefighter would have had 25 years of service (RCW
41.18.130) or age 50 (RCW 41.26.090).
Amount of benefit: 2% of salary for each year of service. Other provisions
apply, see statutes.
Death while vested prior to commencement of benefits: payment of firefighters
deferred benefit to spouse or child.
Annual increase proportionate to the increase in the Seattle -area CPI.
Minimum increase at least 2% each year.
Escalation by salary in proportion to current salary or rank from which the
firefighter retired.
Annual increase proportionate to the increase in the Seattle -area CPI.
Minimum increase at least 2% each year.
Type 1 applies to firefighters who retired from service after 1969, their
survivors, and to firefighters who retired for duty disability (but not their
survivors) after 1961. Type 2 applies to all other types of monthly benefits
After April 25, 1973, a minimum benefit of $300 per month to all retired
firefighters and their survivors. This minimum is increased by the CPI.
$500 RCW 41.18.140, no provision under RCW 41.26.
LEOFF Plan 1 (Firemen's Pension) Inactive Participants
Age
Service
Retirees
Disabled
Retirees
Surviving
Spouses
Total
< 65
0
0
0
0
65 – 69
0
1
0
1
70 – 74
1
1
1
3
75 – 79
2
3
0
5
80 – 84
0
1
0
1
85 -89
1
0
0
1
90 +
0
0
0
0
Total
4
6
1
11
81
Annual pension amounts through December 31, 2014:
Paid by City
Paid by LEOFF
$61,862
$460,921
The information presented in the preceding required schedules were determined as part of the actuarial valuations
at the dates indicated.
The key actuarial assumptions used for the January 1, 2015 valuation were:
Assumption
Rates
Actuarial Cost Method
Asset Valuation Method
Measurement Date
Inflation Rate
Discount Rate (or Investment
Return)
Cost of Living
Salary Increases (for calculated
benefit increases based on
rank)
Healthy Mortality
Disabled Mortality
Spouse Age
Entry Age
Fair Market Value
January 1, 2015
2.75%
We based the long -term expected rate of return on
pension plan investments assumption on the nature
and mix of current and expected pension plan assets
over a period of time representative of the expected
length of time between the first day of service and date
of the last benefit payment. The rate of 2.75% was
selected.
2.75 %, based on SSA OASDI 2014 report.
3.75 %, based on SSA OASDI 2014 report.
RP -2014 mortality table, total dataset, fully generational
with mortality improvement scale MP -2014 setback one
year for males and set forward one year for females.
RP -2014 mortality table, total dataset, fully generational
with mortality improvement scale MP -2014 set forward
two years for males and females.
We assumed that wives are three years younger than
husbands.
NOTE 10 — OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLAN
During the year ended December 31, 2008, the City elected to adopt the provisions of GASB Statement No. 45,
"Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions" (GASB No.
45), which requires the City to accrue other postemployment benefits (OPEB) expense related to its postretirement
healthcare plan based on a computed annual required contribution (ARC) that includes the current period's service
cost and an amount to amortize unfunded actuarial accrued liabilities. Instead of recording expense on a "pay -as-
you-go" basis, the City, under GASB No. 45, has recorded a liability of approximately $5,341,973 for the difference
between the actuarially calculated ARC and the estimated contributions made since the adoption of GASB No. 45.
This liability is included in other noncurrent liabilities in the accompanying December 31, 2014 balance sheet. The
82
effect of GASB No. 45 for the current fiscal year was to decrease the City's excess of revenue over expenses before
capital contributions and the City's net position for the year ended December 31, 2014 by approximately $780,192.
Plan Description
The City of Tukwila's LEOFF Plan 1 (the Health Plan) is a single - employer defined - benefit healthcare plan
administered by the City. The Health Plan provides medical, prescription drug, dental, Medicare Part B premiums,
long -term care, and vision expenses for LEOFF Plan 1 retirees. Dependent spouses and children are not covered.
The Health Plan's actuary is Healthcare Actuaries. The Health Plan does not issue a separate standalone financial
report.
Membership
As of December 31, 2014, there was 1 active employee and 40 retirees meeting the eligibility requirements of a
LEOFF 1 member. This is considered a closed group with no new members.
Funding Policy
Funding for LEOFF 1 retiree healthcare costs is provided entirely by the City as required by RCW. The City's funding
policy is based upon pay -as- you -go financing requirements. For the fiscal year ended December 31, 2014, the City
contributed $905,974 to the Health Plan through use of existing fund balance. The City's contribution was entirely
to fund 'pay -as- you -go' costs under the Health Plan and not to prefund benefits. There were no retiree contributions.
Annual OPEB Cost and Net OPEB Obligation
The City's annual other postemployment benefit (OPEB) cost is calculated based on the annual required
contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No.
45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each
year and amortize unfunded actuarial liabilities over a period 21 years as of January 1, 2008. The following tables
show the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and
changes in the City's net OPEB obligation.
ANNUAL OPEB COST AND NET OPEB OBLIGATION
2012 2013 2014
4 ARC at EOY 1,264,522 1,264,522 1,903,679
5 Interest on Net OPEB Obligation 145,727 174,458 171,067
6 Adjustment to ARC (287,945) (359,904) (388,580)
7 Annual OPEB cost 1,122,304 1,079,076 1,686,166
8 Employer contributions (404,007) (878,755) (905,974)
9 Change in Net OPEB Obligation 718,297 200,321 780,192
10 Net OPEB Obligation at BOY 3,643,163 4,361,460 4,561,781
11 Net OPEB Obligation at EOY (9 + 10) $ 4,361,460 $ 4,561,781 $ 5,341,973
(i) is the assumed interest rate that year: 4% in 2012, 4% in 2013, and 2.75% in 2014.
The net OPEB obligation of $5,341,973 is included as a non - current liability on the Statement of Net Position.
83
ANNUAL DEVELOPMENT OF OPEB COST
Fiscal
Year
Ended
Annual
Requi red
Contribution
Interest on
Net OPEB ARC Annual
Obligation Adjustment OPEB Cost
Total
Employer
Contri-
butions
Change in
Net OPEB
Obligation
Net OPEB
Obligation (Gain)/
Balance Loss
2008
2009
2010
2011
2012
2013
2014
$ 1,366,284
1,366,284
1,366,284
1,264,522
1,264,522
1,264,522
$ - $ -
40,459 61,839
90,941 143,332
112,598 213,809
145,727 287,945
174,458 359,904
$1,366,284
1,344,904
1,313,893
1,163,311
1,122, 304
1,079,076
1,903,679 171,067 388,580 1,686,166
" Based on a 21 -year closed amortization as of January 1, 2008
$ 557,103
335,265
317,771
335,090
404,007
878,755
905,974
$ 809,181
1,009,639
996,122
828,221
718,297
200,321
780,192
$ 809,181
1,818,820
2,814,942
3,643,163
4,361,460
4,561,781
5,341,973
$ 809,181
1,031,019
1,048,513
929,432
860,515
385,767
997,705
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation were as follows:
PERCENTAGE OF ANNUAL OPEB COST CONTRIBUTED
Fiscal Year Ending
Percentage of
Annual OPEB Employer Annual OPEB
Cost Contribution Cost Contributed
Net OPEB
Obligation
December 31, 2012
December 31, 2013
December 31, 2014
Funded Status and Funding Progress
1,122, 304
1,079,076
1,686,166
404,007
878,755
905,974
36
81
54
4,361,460
4,561,781
5,341,973
As of January 1, 2015, the most recent actuarial valuation date, the plan was 0% funded. The actuarial accrued
liability for benefits was $29.5 million, and the actuarial value of assets was $0, resulting in an unfunded actuarial
accrued liability (UAAL) of $29.5 million and a funded ratio of 0 %. The funded ratio is 0 %, because the City funds
benefits on a pay -as- you -go basis.
SCHEDULE OF FUNDING PROGRESS (rounded to thousands)
Actuarial
Actuarial Value Accrued
Valuation Date of Assets Liabilities
Unfunded Actuarial
Accrued Liabilities Funded Covered
(UAAL)* Ratio Payroll
UAAL as a
Percentage of
Covered Payroll
January 1, 2008
January 1, 2011
January 1, 2014
$0
0
0
$16,103
14,805
21,264
84
$16,103
14,805
21,264
0%
0
0
$581
371
195
4%
3
1
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future. Examples include assumptions about future employment,
mortality, and healthcare cost trend. Actuarially determined amounts are subject to continual revision as actual
results are compared with past expectations and new estimates are made about the future. GASB 45 requires that
the schedule of funding progress, presented as required supplementary information following the notes to the
financial statements, presents multi -year trend information that shows whether the actuarial value of Health Plan
assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions
The basis of projections of benefits for financial reporting purposes is the substantive plan (the Health Plan as
understood by the City and members of the Health Plan) and includes the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the City and Members of the Health
Plan members to that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent
with the long -term perspective of the calculations.
The January 1, 2015 valuation used the entry age normal actuarial cost method. The actuarial assumptions included
a 2.75% investment rate of return (net of administrative expenses) and an initial annual healthcare cost trend rate
of 9.0% for pre- Medicare expenses, to an ultimate rate of 3.8% after 61 years. The Medicare trend assumption is
6.5 %, to an ultimate rate of 3.8% after 61 years. The dental trend assumption is 5.5 %, to an ultimate rate of 3.5%
after 4 years. The Medicare premium trend rate is 5.4% for all years. The long -term care trend rate is 5.0% for all
years. The trend for the Excise Tax threshold is 0% until 2018, when a trend rate of 4.24% is used. The trend for
all future years after that year is 3.24 %. All trend rates include a 3.0% inflation assumption. The UAAL is amortized
as a level dollar amount on a closed basis over 21 years beginning January 1, 2008. The remaining amortization
period at December 31, 2015 was 13.0 years.
Assumption
Rates
Actuarial Cost Method
Entry Age Normal method.
Measurement Date
January 1, 2015
Inflation Rate
2.75%
Discount Rate (or Investment
Return)
Selected the assumed discount rate of 2.75% based on the five -
year average investment yield on the investments expected to
finance the payment of benefits.
Healthy Mortality
RPH -2014 mortality table (headcount weighted), total dataset, fully
generational with mortality improvement scale MP -2014 setback
one year for males and set forward one year for females.
Disabled Mortality
RPH -2014 mortality table (headcount weighted), total dataset, fully
generational with mortality improvement scale MP -2014 set forward
two years for males and females.
Turnover
None assumed. All LEOFF 1 actives are fully eligible for retirement.
85
Per Capita Claims Cost
Assumed annual per capita claims costs are as follows:
Age Medical /Rx Dental Vision LTC
55 $ 21,875 $ 966 $ 181 $ 133
60 28,071 966 181 220
65 15,406 966 181 448
70 16,924 966 181 1,183
75 17,984 966 181 3,028
80 18,348 966 181 6,499
Aging or Morbidity Factors
Aging /morbidity factors are included in the per capita claims costs
shown above (except dental and vision).
Medicare Part B Premium
Reimbursements
The City reimburses Medicare retirees for Part B premiums. The
2015 annual premium is $1,258.80.
Affordable Care Act (ACA)
Excise Tax Threshold
Ages 55 -64 All Other
Single $ 11,850 $ 10,200
ACA Base Premium
Assumed annual plan costs upon which the ACA tax calculation is
based:
Medicare ineligible $ 28,071
Medicare eligible $ 16,557
ACA Tax
• We assumed a 40% excise tax rate on premiums above the ACA
threshold.
• We assumed the City of Tukwila pays no federal taxes.
• We assumed the excise tax will apply to medical /Rx and Medicare
premium reimbursements.
Trend Rates
Medical Long -Term Trends* from Getzen SOA Model version
2014_b using baseline assumptions.
Excise
Pre- Part B Long -Term Tax
Year Medicare Medicare Dental Vision Premiums Care Thresh old
2015 9.00% 6.501% 5.5% 4.O% 5.4% 5, { }4, {},[1o`',
2016 7.50% 6.50% 5.O% 4.O% 5.4% 5, { }% 0.00%
2017 6.50% 6.00% 4.5% 4.O% 5.4% 5, { }% 0.00%
2018 5.50% 5.50% 4.0% 4.0% 5.4% 5, { }% 4.24%
2019 5.50% 5.50% 3.5% 3.5% 5.4% 5. {}% 3.24%
2020 5.46% 5.46% 3.5% 3.5% 5.4% 5.0% 3.24%
2021 -2074 - -- - -- 3.5% 3.5% 5.4% 5.0% 3.24%
2075+ 3.80% 3.80% 3.5% 3.5% 5.4% 5.0% 3.24%
* The trend rates include assumed inflation of 3% for all future years.
The Schedule of Funding Progress, presented as required supplementary information following the notes to the
financial statements, provides the multi -year trend information showing whether the actuarial value of plan assets
is increasing or decreasing over time relative to the actual.
86
NOTE 11 — LONG -TERM DEBT
Governmental Activities Long -Term Debt
General Obligation Bonds are direct obligations of the City for which its full faith and credit are pledged. Debt
service for voter - approved issues, of which the City has none, would be funded by special property tax levies. Debt
service for City Council authorized bonds, also called councilmanic bonds, is funded from regular property taxes,
sales taxes, or other general revenues, and is generally paid from debt service funds. The City currently maintains
a rating of Al from Moody's Investor Service, AA from Standard & Poor's, and a rating of AA- from Fitch's Rating
Service for its General Obligation Bonds.
General Obligation Bonds outstanding at year -end are as follows:
• 2008 LTGO bonds were issued to refund the remaining debt of the 1999 LTGO bonds. The 1999 LTGO
bonds were issued to purchase an additional City Hall Annex (6300 building) and economic revitalization
projects.
• 2010 LTGO bonds were issued for the construction and realignment of Southcenter Parkway in the Tukwila
South Annexation area and for the cost of emergency preparedness capital and other equipment.
• 2011 LTGO refunding bonds were issued to refund a portion of the bonds issued in 2003 for the City's Arterial
Street program.
• 2013 LTGO bonds were issued and the proceeds loaned to the Tukwila Metropolitan Park District to pay for
improvements to the pool.
• 2014 LTGO bonds were issued to fund the purchase of land acquisition and capital costs of redevelopment
activities within the City's Tukwila International Boulevard (TIB) urban renewal area.
Special assessment bonds are issued to finance construction of local improvement district (LID) projects and are
repaid through assessments collected from property owners benefiting from related improvements. Although the
bonds are secured by liens against assessed properties, the City is required under state law to establish a guaranty
fund to provide a means of paying LID bond debt service obligations in the event there are insufficient resources in
the LID debt service fund. The special assessment bonds are not general obligation debt but the City is obligated
in some manner to cover the interest on the bonds. Therefore, the bonds are reported as Special Assessment Debt
with Governmental Commitment.
Special assessments outstanding at year -end are as follows:
• 2013 special assessment bonds LID No. 33 were issued to reimburse the City for a portion of the costs of a
major reconstruction of Klickitat and Southcenter Parkway to improve access to the urban center.
In December 2014, the City entered into a Line of Credit Agreement with Bank of the West; Limited tax General
Obligation Bond Anticipation Note, 2014 (Taxable Non - Revolving Line of Credit). The principal amount, not to
exceed $2,250,000, can be used for general City purposes but will be utilized for TIB redevelopment projects in the
City's urban renewal area. As of December 31, 2014, no draws occurred against the line of credit.
Business -Type Activities Long -Term Debt
Revenue bond indebtedness issued to fund proprietary activities is recorded in proprietary funds. Debt service
payments are made from operating revenues generated by the proprietary funds. In proprietary funds, bonds are
displayed net of unamortized premium or discount; annual interest expense is decreased by amortization of debt
premium and increased by the amortization of debt discount. The City currently maintains a rating of Aaa from
Moody's Investor Service for debt in this category.
87
Totals $ 16,638,221 $ 4,057,739 $ 6,650,400 $ 4,063,824 $ 6,687,500 $ 2,682,505 $ 40,780,190
State of Washington Public Works Trust Fund Loans are a low interest rate loans available from the State of
Washington Department of Commerce, Local Government & Infrastructure Division for qualifying projects and are
a direct responsibility of the City. This debt is repaid by proprietary fund revenues.
The City is in compliance with all Washington State debt limitation statutes and bond indenture agreements.
The schedules that follow summarize the long -term debt transactions of the City for the year ended December 31,
2014.
CHANGES IN LONG -TERM LIABILITIES SUMMARY
REVENUE PUBLIC WORKS DUE TO OTHER
GENERAL SPECIAL BONDS TRUST FUND COMPENSATED OTHER POST EMPLOY- NET PENSION
OBLIGATION ASSESSMENT UTILTIES LOANS ABSENCES GOVERNMENTS MENT BENEFITS LIABILITY TOTAL
Outstanding 01/01/2014 $ 14,706,009 $ 6,687,500 $ 3,075,000 $ 6,063,071 $ 3,657,270 $ 7,021,600 $ 4,561,781 $ - $ 45,772,232
Added 3,850,000 - 248,516 3,419,713 - 780,192 427,903 8,726,324
Retired /redeemed (1,917,788) - (495,000) (568,721) (3,030,381) (371,200) (6,383,090)
Outstanding 12/31/2014 $ 16,638,221 $ 6,687,500 $ 2,580,000 $ 5,742,866 $ 4,046,602 $ 6,650,400 $ 5,341,973 $ 427,903 $ 48,115,465
Add Premiums, Subtract Discounts
Total Long -Term Liabilities
Debt Service to Maturity
598,443
$ 48,713,908
Following are schedules showing the debt service requirements to maturity for the City's long -term debt, excluding
compensated absences.
2015
2016
2017
2018
2019
2020 -2024
2025 -2029
2030 -2034
2035 -2039
1,655,507 $
1,712,737
1,766,428
1,832,196
1,903,521
5,529,832
1,041,000
1,197, 000
649,801
606,536
550,267
475,211
396,971
1,013,470
261,231
104,253
$ 220,000 $
165,200
171,600
179,200
184,800
1,032,400
1,254,000
1,541,200
1,902,000
282,485
262,760
255,861
249,088
243,173
1,103, 504
875,353
580,236
211,365
605,000 $
450,000
450,000
445,000
445,000
2,225,000
2,067,500
346,784
286,005
271,830
257,655
243,638
917,813
358,781
$ 3,759,577
3,483,238
3,465,986
3,438,350
3,417,102
11, 822, 019
5,857,865
3,422,689
2,113, 365
88
Governmental Activities
Year Ended
December
31
General Obligation
Bonds
Principal Interest
Due to Other Governments
Principal Interest
Special Assessments
Principal Interest
Total
2015
2016
2017
2018
2019
2020 -2024
2025 -2029
2030 -2034
2035 -2039
1,655,507 $
1,712,737
1,766,428
1,832,196
1,903,521
5,529,832
1,041,000
1,197, 000
649,801
606,536
550,267
475,211
396,971
1,013,470
261,231
104,253
$ 220,000 $
165,200
171,600
179,200
184,800
1,032,400
1,254,000
1,541,200
1,902,000
282,485
262,760
255,861
249,088
243,173
1,103, 504
875,353
580,236
211,365
605,000 $
450,000
450,000
445,000
445,000
2,225,000
2,067,500
346,784
286,005
271,830
257,655
243,638
917,813
358,781
$ 3,759,577
3,483,238
3,465,986
3,438,350
3,417,102
11, 822, 019
5,857,865
3,422,689
2,113, 365
88
2015
2016
2017
2018
2019
2020 -2024
2025 -2029
2030 -2032
Totals
$ 520,000
150,000
155,000
165,000
170,000
970,000
450,000
$ 110,172
91,950
85,950
78,975
71,550
235,575
30,600
$ 571,520
571,520
571,520
571,520
571,520
2,779,427
66,136
39,682
$
26,440
25,857
22,999
20,142
17,284
43,946
1,984
397
$ 2,580,000 $ 704,772 $ 5,742,846 $ 159,050
$ 1,228,133
839,327
835,469
835,637
830,354
4,028,949
548,720
40,078
$ 9,186, 668
89
Business -Type Activities
Year Ended
December
31
Revenue Bonds
Principal Interest
Public Works Trust Fund Loans
Principal Interest
Total
2015
2016
2017
2018
2019
2020 -2024
2025 -2029
2030 -2032
Totals
$ 520,000
150,000
155,000
165,000
170,000
970,000
450,000
$ 110,172
91,950
85,950
78,975
71,550
235,575
30,600
$ 571,520
571,520
571,520
571,520
571,520
2,779,427
66,136
39,682
$
26,440
25,857
22,999
20,142
17,284
43,946
1,984
397
$ 2,580,000 $ 704,772 $ 5,742,846 $ 159,050
$ 1,228,133
839,327
835,469
835,637
830,354
4,028,949
548,720
40,078
$ 9,186, 668
89
CHANGES IN LONG -TERM LIABILITIES — GOVERNMENTAL FUNDS
ITEM
Interest OUTSTANDING OUTSTANDING Due Within
Rates Maturity Authorized 12/31/2013 ISSUED REDEEMED 12/31/14 One Year
GOVERNMENTAL ACTIVITIES:
Limited General Obligation (GO) Bonds Payable:
2003 Refunding - TCC,Fire Stn 4.00 -5.00 12/01/14 $ 4,195,000 $ 465,000 $
2008 Refunding- Streets /Facilities 4.00 -6.00 12/01/19 6,180,000 4,045,000
2010 Streets / Equipment 2.00 -5.41 12/01/24 5,870,000 4,715,000
2011 Refunding Streets (2003 GO 1.25 -4.00 12/01/23 4,620,000 4,580,000
2013 LTGO -MPD Pool Improve 2.00 -4.00 12/01/22 1,000,000 901,009
2014 LTGO -Urban Renewal 0.85 -4.86 12/01/34 3,850,000 -
3,850,000
$ 465,000
595,000
365,000
395,000
97,788
3,450,000
4,350,000
4,185,000
803,221
3,850,000
Total Bonds Payable 25,715,000
14,706,009 3,850,000
Issuance premiums 684,280
1,917,788 16,638,221
121,525 562,755
630,000
380,000
405,000
99,507
141,000
1,655,507
Net Bonds Payable
Due to Other Governments
2009 Facility SCORE
2010 ValleyCom Refunding
3.00 -6.62 01/01/39
4.30 -5.75 12/01/15
25,715,000
15,390,290 3,850,000
6,898,800 6,589,600
1,065,000 432,000
2,039,313 17,200,976 1,655,507
Total Due Other Governments
7,963,800 7,021,600
Special Assessment Debt
Klickitat Urban Access Project 3.150 - 5.375 01/15/29
Total Special Assessment Debt
6,687,500 6,687,500
6,687,500 6,687,500
159,200 6,430,400 165,200
212,000 220,000 220,000
371,200 6,650,400 385,200
6,687,500 605,000
6,687,500 605,000
Other Post - Employement Benefits Payable (1) 4,561,781 780,192
Net Pension Liability (1) - 427,903
Compensated Absences: 3,337,967 3,171,199
2,769,004
5,341,973
427,903
3,740,162
Total Governmental Funds
$ 40,366,300 $ 36,999,138 $ 8,229,294 $ 5,179,517 $ 40,048,915 $2,645,707
(1) Other Post-Emloyrnent Benefits Payable and Net Pension Liability were not reported on this schedule in previous years.
Due to Other Governments
Valley Communication Center Public Development Authority issued General Obligation bonds in 2000 for a new
dispatch facility and refunded the debt in April 2010. The City is contracted to pay 20% of the debt service of these
15 -year bonds that mature in 2015. This debt is paid from the General fund.
SCORE Public Development Authority issued General Obligation bonds in 2009 to acquire, construct, improve, and
equip a consolidated correctional facility to be located in Des Moines, Washington. The City is contracted to pay
8% of the debt service of these 30 year bonds that mature in 2039. This debt is paid from the General fund.
90
CHANGES IN LONG -TERM LIABILITIES - BUSINESS -TYPE ACTIVITIES
ITEM
Interest OUTSTANDING OUTSTANDING Due Within
Rates Maturity Authorized 12/31/2013 ISSUED REDEEMED 12/31/14 One Year
BUSINESS -TYPE ACTIVITIES:
Bonds Payable:
1995 Water /Sewer Revenue 4.15 -6.63 02/01/15 $ 4,500,000 $ 730,000 $ - $ 355,000 375,000 $ 375,000
2006 Water /Sewer /SWM Revenue 4.00 -4.50 12/01/26 3,180,000 2,345,000 - 140,000 2,205,000 145,000
Total Bonds Payable 7,680,000 3,075,000 - 495,000 2,580,000 520,000
Unamortized Deferred Credits (Charges):
Issuance Premiums - 46,920 11,150 35,770 -
Issuance Discounts (1,072) - (989) (82) -
Net Bonds Payable 7,680,000 3,120,848 505,161 2,615,687 520,000
Public Works Trust Fund Loans:
2003 Loan -Water /Sewer 0.50 06/01/21 273,870 115,634 14,454 101,180 14,454
2003 Loan- Surface Water 0.50 06/01/21 219,725 92,773 11,598 81,175 11,597
2004 Loan - Water /Sewer 0.50 -2.00 06/01/24 5,016,000 3,001,749 - 272,886 2,728,863 272,886
2004 Loan - Surface Water 0.50 -2.00 06/01/24 684,000 409,329 37,211 372,118 37,212
2004 Loan - Surface Water 1.00 06/01/24 4,196,056 2,443,586 - 222,145 2,221,441 222,144
2014 Loan -Sewer 0.5 06/01/32 - - 248,516 10,426 238,090 13,227
Total Public Works Trust Fund Loans 10,389,651 6,063,071 248,516 568,721 5,742,866 571,520
Compensated Absences: 319,303
248,514 261,377
306,440 16,229
Total Business-Type Activities
$ 18,069,651 $ 9,503,222 $ 497,030 $ 1,335,259 $ 8,664,994 $ 1,107,749
TOTAL ALL FUNDS $ 58,435,951 $ 46,502,360 $ 8,726,324 $ 6,514,776 $ 48,713,909 $ 3,753,456
91
LONG -TERM LIABILITIES RECONCILIATION
Government Enterprise Balance
Funds Funds 12 -31 -14
General obligation bonds $16,638,221 $ $16,638,221
Special assessment bonds $ 6,687,500 - 6,687,500
Revenue bonds - 2,580,000 2,580,000
Public Works Trust Fund loans - 5,742,866 5,742,866
Due to Other Governments 6,650,400 - 6,650,400
Employee leave benefits 3,740,162 306,440 4,046,602
Net Premiums /Discounts 562,755 35,687 598,443
Other Post - Employment Benefits 5,341,973 5,341,973
Net Pension Liability 427,903 427,903
Total long -term debt $40,048,915 $ 8,664,993 $48,713,908
Debt Limit Capacities
State law provides that debt cannot be incurred in excess of the following percentages of the value of the taxable
property of the City: 1.5% without a vote of the people; 2.5% with a vote of the people; 5.0% with a vote of the
people, provided the indebtedness in excess of 2.5% is for utilities; 7.5% with a vote of the people, provided the
indebtedness in excess of 5.0% is for parks or open space development.
At December 31, 2014, the debt limits for the City were as follows:
SUMMARY OF DEBT LIMIT CAPACITIES
Item
Without a Vote
1.5%
With a Vote of the People
2.5% 5.0%
7.5%
Legal Limit
Outstanding Net
Indebtedness
$ 75, 811,181 $ 126, 351, 969 $ 252, 703, 937 $ 379, 055, 906
23,177, 573 23,177, 573
23,177, 573 23,177, 573
Margin Available $ 52,633,608 $ 103,174,396 $ 229,526,365 $ 355,878,333
Long -term Liabilities other than debt
Claims are paid from one or more funds based on the nature of the transaction. Employees' compensable leave is
the City's liability for all unused vacation and sick leave and unpaid overtime accrued by employees and, payable
under specified conditions. This obligation is paid only at the time of termination, usually from the same funding
source(s) from which the employee's salary or wage compensation was paid.
The City does not report a liability for termination benefits because it is not reasonably estimable.
Local Improvement District No. 33
Tukwila Urban Access Improvement Project Local Improvement District (LID) No. 33 was formed on November 16,
2009 by Ordinance No. 2260. The project was designed to improve congestion within the City's Urban Center. The
project included a partial lid over Southcenter Parkway, removal of conflicting turning movements, and the widening
of Southcenter Parkway.
92
Construction for the project began in March 2011 and was completed in October 2011. The project was closed out
and accepted as complete by City Council on February 19, 2013.
A variety of funding sources were used to pay for the project including federal and state grants, impact fees, City
funds, a right -of -way donation, and special assessments. The City chose to fund the project internally, rather than
obtain external, short-term financing then apply special assessments to property owners after the project was
completed. Fund 104 Arterial Streets, where the project was accounted for, loaned the project funds as needed
using a draw method at an interest rate of 1.80 %. This loan was repaid in 2013 when special assessment bonds
were issued.
The City confirmed the assessment roll with a final assessment of $9,475,894. The prepayment period for the
special assessments was open in the fall of 2013 and during that time the City received $2,788,350 in prepayments.
Once the prepayment window closed, the City issued bonds for the remaining outstanding assessments in the
amount of $6,687,500. From these proceeds, the City deposited $668,750 to the guaranty fund. The first of 15
annual installments for the assessments was due by October 16, 2014.
As of December 31, 2014, the amount of LID Special Assessments that were delinquent was $34,211. During
2014, several property owners chose to pay the assessment in full. Because of the additional principal payments
received, the City has enough funds in the LID No. 33 funds to meet debt service requirements in 2015.
Estimated Arbitrage Rebate
The Federal Tax Reform Act of 1986 requires issuers of tax - exempt debt of over $5 million to make payments to
the United States Treasury of investment interest received at yields that exceed the issuer's tax - exempt borrowing
rates. Payments of arbitrage rebate amounts due under these regulations must be made to the U.S. Treasury every
five years. The City's estimated rebatable arbitrage amount as of December 31, 2014 is $0 for its tax - exempt bond
issues subject to the Tax Reform Act.
NOTE 12 — COMMITMENTS
Property Sale Commitment. In December 2014, the City agree to a sell the land parcel commonly known as the
Longacre Property for $1.6 million. The sale is contingent upon the suitability of the property as determined by the
purchaser. The examination period to determine suitability expires July 1, 2016.
Construction Commitments. As of December 31, 2014, the City share of contractual obligations on construction
projects total $7,481,806.
93
Governmental Activities
Remaining
Commitment
Interurban Avenue South
Cascade View Safe Routes to School
Thorndykd Elementary Safe Routes to School
City Facilities Needs Assessment & Feasibility
42nd Ave South Road Improvements
Boeing Access Road Bridge Rehabilitation
South 144th Street
Tukwila Urban Center - Pedestrian /Bicyle Bridge
Other governmental projects
$ 2,505,008
51,900
825,173
161,945
116,614
322,938
99,757
406,719
549,993
Total Governmental Activities $ 5,040,047
Business -Type Activities Projects
Remaining
Commitment
CBD Sewer Rehabilitation
EMW South Storm Pipe Replacement
Tukwila 205 Levee Certification
Andover Park West
Other Utility related projects
Total Business -Type Activities
$ 425,242
1,093,384
434,015
219,754
269,364
$ 2,441,759
Total CIP /Commitments $ 7,481,806
NOTE 13 — POLLUTION REMEDIATION AND OTHER POTENTIAL LITIGATION
There are several lawsuits in which the City is involved. The City Attorney estimates that the potential claims against
the City to have no material financial impact.
The City of Tukwila may share in potential liability under the Comprehensive Environmental Response,
Compensation and Liability Act ( "CERCLA ") for sediment contamination within the Lower Duwamish Waterway
Superfund site. The Environmental Protection Agency has estimated the total costs to be $342 million with 120
parties sharing in the liability. While it is impossible to accurately estimate the City's potential CERCLA liability at
this time, the relatively small size of the City's storm water system within the Lower Duwamish Waterway Superfund
site area, as well as the system's recent establishment in 1989, gives reason to the City to believe that its share of
the potential liability is not significant and not estimable.
NOTE 14 — RISK MANAGEMENT
The City of Tukwila is a member of the Washington Cities Insurance Authority (WCIA).
Utilizing Chapter 48.62 RCW (self- insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine
cities originally formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling
mechanism for jointly purchasing insurance, jointly self- insuring, and / or jointly contracting for risk management
services. WCIA has a total of 175 Members.
New members initially contract for a three -year term, and thereafter automatically renew on an annual basis. A
one -year withdrawal notice is required before membership can be terminated. Termination does not relieve a former
member from its unresolved loss history incurred during membership.
94
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile,
police, public officials' errors or omissions, stop gap, and employee benefits liability. Limits are $4 million per
occurrence self- insured layer, and $16 million per occurrence in the re- insured excess layer. The excess layer is
insured by the purchase of reinsurance and insurance and is subject to aggregate limits. Total limits are $20 million
per occurrence subject to aggregate sublimits in the excess layers. The Board of Directors determines the limits
and terms of coverage annually.
Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and machinery are
purchased on a group basis. Various deductibles apply by type of coverage. Property insurance and auto physical
damage are self- funded from the members' deductible to $750,000, for all perils other than flood and earthquake,
and insured above that amount by the purchase of insurance.
In -house services include risk management consultation, loss control field services, claims and litigation
administration, and loss analyses. WCIA contracts for the claims investigation consultants for personnel issues and
land use problems, insurance brokerage, and lobbyist services.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined
by an outside, independent actuary. The assessment covers loss, loss adjustment, and administrative expenses.
As outlined in the interlocal, WCIA retains the right to additionally assess the membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by investment of WCIA's assets
in financial instruments which comply with all State guidelines.
A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The
Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the
organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting
the day to day operations of WCIA.
The City insures its buildings, equipment, and vehicle property insurance with WCIA. They self -fund up to $250,000
with standard property insurance purchased above that amount. Traveler's insures boiler machinery and provides
for employee dishonesty coverage.
The City of Tukwila has a Risk Management and a Safety Committee to oversee risk management. In addition, the
WCIA provides support for a proactive risk analysis program and a loss control manual.
There were no significant reductions in insurance coverage in the past year. During the year under audit and in the
past three years, no settlement has exceeded insurance coverage.
The City self- insures for unemployment benefits. This is budgeted each year and has not exceeded $60,000 per
year. This expense is budgeted in the Finance Department within the general fund and no reserves are allocated
because of the limited liability and historical cost.
The City also self- insures for medical, dental and other health care benefits. A third -party administrator, Healthcare
Management Administrators, Inc., provides claims administration. The City has a stop -loss policy with Sun Life
Insurance Company, which provides individual limits of $150,000 and a plan limit of $9,045,316 in 2014. Each fund
contributes an appropriate amount each year to pay premiums and claims. Liabilities include an actuarially
determined amount for claims that have been incurred but not reported (IBNR's) and a contingency reserve equal
to 2.5 times the IBNR reserve.
The IBNR liability is estimated using actuarial methods. Based on results as well as a review of actual run -out,
average lag days of 67.0 days for medical, 20.1 days for pharmacy, 32.6 days for dental, and 53.6 days for vision
were selected. Using average lag days and net adjusted paid claims, the IBNR liability was estimated as of June
30, 2014. Next, the estimated IBNR liability as of December 31, 2014 was developed by trending the June 30, 2014
95
estimates to year -end. No explicit margin for claims fluctuations was added because the amount of the reserve in
the fund balance is sufficient to cover expected claims fluctuations. Administrative costs were then added.
The following table reflects changes in the balances of claims liabilities for 2014 and 2013.
SUMMARY OF HEALTH CARE CLAIM LIABILITIES
Active Employees Retired Employees LEOFF I
ITEM
2014 2013 2014 2013
Claim Liabilities at Beginning of Year
Claim expenses:
Current year and changes in estimates
Claim payments and expenses
Claim Liabilities at End of Year
$ 1,669,250 $ 1,638,250 $ 214,250 $ 209,500
6,633,199 4,745,675 959,835 817,357
(6,042,449) (4,714,675) (888,335) (812,607)
$ 2,260,000 $ 1,669,250 $ 285,750 $ 214,250
NOTE 15 — CHANGE IN ACCOUNTING PRINCIPLE AND PRIOR PERIOD ADJUSTMENTS
Change in Accounting Principle. The City of Tukwila recorded a Change in Accounting Principle concerning
valuation of inventory in the enterprise funds. Previously, inventory was report for items purchased for resale as
well as supplies and small tools used to maintain the City's utility systems. Inventory is now defined as items
purchased for resale to external customers or other City departments, or supplies used in normal operations that
are considered material in amount. The inventory amount on this year's financial statements reflect only those
items that will be resold. There were no material amount on -hand for supplies at year -end. The inventory is valued
at average cost using the consumption method and there is a physical inventory count taken annually at year -end.
Inventory adjustment is as follows:
Water Fund $250,180
Sewer Fund 51,826
Golf Course Fund 206,154
Surface Water Fund 48,379
Total Inventory Adjustment $556,539
Prior Period Adjustments. Prior to 2014, the City recorded all purchases pertaining to the Tukwila Village
Redevelopment Project totaling $7,732,514 in Land and $1,736,585 in Construction Work in Progress as capital
assets not being depreciated. In 2014, an entry was made to reduce the cost of property by $3,674,099 to net
realizable value and reclassify the resulting $5,795,000 property value as redevelopment property held for resale.
Since this reduction and reclassification should have occurred in 2012 when the developer agreement was
approved, the correction in 2014 has resulted in a prior period adjustment which is reflected as decreases to both
the Land and Construction in Progress categories of total capital assets not being depreciated.
Additionally, in prior years certain road construction and other repair and maintenance project costs were classified
as construction in progress rather than as expense. This resulted in construction in- progress being overstated by
$11,679,224 in the governmental funds and $869,657 in the enterprise funds. A recap of the prior period
adjustments follows:
96
PRIOR PERIOD ADJUSTMENT RECAP
Description of Adjustment
Governmental
Total
Govern-
mental
Business-
Type
TOTAL
General Fixed
Asset Group
Facilities
Fund
Tukwila Village Real Property:
Reduce property held for resale to net
realizable value
$ (3,674,099)
$ -
$ (3,674,099)
$ (3,674,099)
Report property held for resale in the
acquiring fund, the Facilities fund
(5,795,000)
5,795,000
-
-
Repair and Maintenance Costs:
-
-
Remove repair and maintenance costs
from capital assets
(11,679,224)
(11,679,224)
(869,647)
(12,548,871)
Total Prior Period Adjustment
$ (21,148,323)
$ 5,795,000
$ (15,353,323)
$ (869,647)
$ (16,222,970)
NOTE 16 — SPECIAL ITEM
The City purchased 3 motels in the Tukwila International Boulevard urban renewal area in 2014. The motels were
purchased for a total of $3,570,000. The City plans to demolish the motels and hold the property as an investment
until sale to a developer. Because assets held for resale cannot be reported at more than the anticipated net
realizable value, the City reduced the asset cost by $1,995,000 as a valuation adjustment. This valuation
adjustment is reported as a special item on the Statement of Activities and the Statement of Revenues,
Expenditures, and Changes in Fund Balances.
NOTE 17 - SUBSEQUENT EVENTS
On April 14, 2015, the City sold $5,825,000 limited tax general obligation bonds to pay for the rehabilitation of
Boeing Access Road Bridge and improvements to Interurban Avenue South including the design and construction
of sidewalks and other improvements. The bonds will be repaid over a 20 year period. Other funding sources for
these projects include both federal and state grants as well as mitigation payments from developers.
As part of the City's Urban Renewal Tukwila International Boulevard Redevelopment Project, the City purchased a
motel for $1,240,000 on February 12, 2015. This is the fourth property in the Urban Renewal area that the City has
purchased. The City purchased 3 properties in 2014 for a total of $3,570,000 to be sold to a developer in the future.
Additionally, the City drew $1,240,000 on January 28, 2015 in connection with an additional property purchase.
97
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31,2014
Original Final
Budget Budget
(Gaap Basis) (Gaap Bais)
Actual
Results
Variance With
Final Budget
Pos itive
(Negative)
REVENUES:
Taxes $ 40,531,227 $ 40,928,467 $ 42,219,026 $ 1,290,559
Licenses and permits 1,946,189 1,946,189 2,114,638 168,449
Intergovernmental 4,431,126 5,194,126 5,307,861 113,735
Charges for services 2,434,606 2,532,366 2,553,690 21,324
Fines and Foreitures 234,829 234,829 264,934 30,105
Investment earnings 147,573 147,573 130,859 (16,714)
Miscellaneous 122,318 122,318 144,678 22,360
Total Revenues 49,847,868 51,105,868 52,735,687 1,629,819
EXPENDITURES:
Current:
General Government 7,524,598 7,760,615 7,146,957 613,658
Public Safety 26,591,487 27,144,970 27,204,740 (59,770)
Physical environment 2,024,753 1,794,753 1,789,658 5,095
Transportation 2,910,132 2,910,132 2,605,602 304,530
Economic environment 3,783,890 3,855,890 3,662,211 193,679
Culture and recreation 3,706,321 3,827,021 3,808,476 18,545
Capital outlay 161,540 672,540 407,400 265,140
Total Expenditures 46,702,721 47,965,921 46,625,044 1,340,877
Excess Of Revenues And Expenditures
3,145,147 3,139,947
6,110,644 2,970,697
OTHER FINANCING SOURCES (USES):
Bond proceeds
Transfers in
Transfers out
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
Fund balances - beginning as restated
Fund Balances - Ending
121,457 121,457 - (121,457)
6,555,000 6,555,000 1,000,000 (5,555,000)
(8,671,650) (8,492,050) (6,900,080) 1,591,970
(1,995,193) (1,815,593) (5,900,080) (4,084,487)
1,149, 954
8,385,069
8,385,069
1,324,354
10,660,069
10,660,069
210,564 (1,113,791)
17,285,986 6,625,917
17,285,986 6,625,917
$ 9,535,023 $ 11,984,423 $ 17,496,550 $ 5,512,126
99
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
METROPOLITAN PARK DISTRICT SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31,2014
Original Final
Budget Budget
(Gaap Basis) (Gaap Bais)
Actual
Results
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Taxes $ 704,395 $ 704,395 $ 698,279 $ (6,116)
Intergovernmental 30,000 30,000 24,001 (5,999)
Charges for services 248,310 248,310 218,662 (29,648)
Miscellaneous (9,000) (9,000) 12,781 21,781
Total Revenues 973,705 973,705 953,722 (19,983)
EXPENDITURES:
Current:
Culture and recreation
Debt service:
Interest
Capital outlay
685,085 685,085
35,249 35,249
709,100 (24,015)
34,936 313
3,728 (3,728)
Total Expenditures
720,334 720,334
747,765 (27,431)
Excess Of Revenues And Expenditures
253,371 253,371
205,957 (47,414)
OTHER FINANCING SOURCES (USES):
Transfers out (80,000)
Total Other Financing Sources And Uses (80,000)
Net change in fund balances 173,371 253,371 205,957 (47,414)
Fund balances - beginning 440,537 440,537 (1,566,175) (2,006,712)
Fund Balances - Ending $ 613,908 $ 693,908 $ (1,360,218) $ (2,054,126)
100
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
The City of Tukwila budgets its funds in accordance with the Revised Code of Washington 35A.33. In compliance
with the code, biennial budgets are adopted for the general fund and special revenue funds. For governmental
funds, there are no substantial differences between the budgetary basis and generally accepted accounting
principles. Budgetary accounts are integrated in fund ledgers for all budgeted funds, but the financial statements
include budgetary comparisons for biennially budgeted governmental funds only. Budgets established for
proprietary and fiduciary funds are "management budgets" and are not legally required to be reported and, as such,
are not reported in the CAFR.
The biennial appropriated budgets are adopted at the fund level and the budgets constitute the legal authority for
expenditures at that level. Subsidiary revenue and expenditure records are used to compare the budgeted amounts
with actual revenues and expenditures. As a management control device, the subsidiary ledgers monitor
expenditures for individual functions and activities by object class. Any unexpended appropriation balances lapse
at the end of the biennium.
The City of Tukwila's budget procedures are mandated by RCW 35A.33. The steps in the budget process are as
follows:
1) Prior to November 1 on even numbered years, the Mayor submits a proposed budget to the City Council.
This budget is based on priorities established by the Council and estimates provided by the City
departments during the preceding months, and balanced with revenue estimates made by the Mayor.
2) The City Council conducts public hearings on the proposed budget in November and December.
3) The Council makes its adjustments to the proposed budget and adopts by ordinance a final balanced
budget no later than December 31.
4) The final operating budget as adopted is published and distributed within the first month of the following
year. Copies of the budget are made available to the public.
The City Council must approve by ordinance any amendments that increase the total for the fund. Budget
amounts presented in the basic financial statements include both the original amounts and the final amended
budget as approved by the City Council.
Expenditure Categories
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Includes administration, finance, municipal court, attorney, and city
clerk activities.
Includes all police and fire activities.
Includes expenditures for the public works activities not chargeable
to the enterprise funds.
Includes all street and arterial street maintenance and construction.
Reflects the planning and building inspection activities.
The information presented in the following required schedules was determined as part of the actuarial valuations
at the dates indicated.
101
FIREMEN'S PENSION TRUST FUND
SCHEDULE OF FUNDING PROGRESS
(Rounded to thousands)
Actuarial Actuarial Value
Valuation Date of Assets
Actuarial
Accrued
Liabilities
Unfunded Actuarial
Accrued Liabilities
(UAAL)
Funded Covered
Ratio Payroll
UAAL as a
Percentage of
Covered Payroll
January 1, 2005
January 1, 2007
January 1, 2009
January 1, 2011
January 1, 2013
January 1, 2014*
$1,265
1,336
1,445
1,430
1,416
1,409
$1,182
1,310
1,610
1,582
1,296
1,853
* January 1, 2014 change in actuary and adoption of GASB 67
($83)
(26)
165
152
(120)
444
107%
102
90
90
109
76
$608
463
442
0
0
0
N/A
N/A
37
N/A
N/A
N/A
Schedule of Changes in the City's Net Pension Liability and Related Ratios J
Total Pension Liability
2014
Service Cost
Interest
Changes of benefit terms
Differences between expected and actual experience
Changes in assumptions
Benefit payments, included refunds of employee contributions
Net change in total pension liability
Total pension liability — beginning
Total pension liability — ending (a)
50,098
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(61,863)
(11,764)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :
1,852,693
1,840,929
Plan Fiduciary Net Position
Contributions — employer
Contributions — employee
Net investment income
Benefit payments, including refunds of employee contributions
Administrative expense
Other
Net change in plan fiduciary net position
102
64,114
1,805
(61,863)
4,056
Plan fiduciary net position — beginning
Plan fiduciary net position — ending (b)
: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
City's net pension liability — ending (a) — (b)
Plan fiduciary net position as a percentage of the total pension
liability
Covered- employee payroll
City's net pension liability as a percentage of covered - employee
payroll
Notes to schedule:
1,408,970
1,413,026
427,903
76.76%
n/a
The following assumptions were changed as of 1/1/2014: discount rate changed to 2.75 %, salary increases
changed to 3.75 %, CPI changed to 2.75 %, mortality tables updated to RP -2014 with Scale MP -2014 projections.
These changes to assumptions and experience differences increased liabilities approximately $567,000. GASB 67,
Financial Reporting for Pension Plans, was adopted as of January 1, 2014, therefore liabilities were fresh - started
at this date.
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Fiscal
Year Ending
Statutorily
Determined
Contribution
Less: Contributions
in Relation to the
Statutorily
Determined
Contribution
Contribution
Deficiency
(Excess)
Covered
Employee
Payroll
Contribution as a
Percentage of
Covered Employee
Payroll
December 31, 2005
December 31, 2006
December 31, 2007
December 31, 2008
December 31, 2009
December 31, 2010
December 31, 2011
December 31, 2012
December 31, 2013
December 31, 2014
$ 40,983 $
45,951
50,555
52,571
48,537
49,989
54,865
52,249
56,962
64,114
52,571
45,951
50,555
52,571
48,537
49,989
54,865
52,249
56,962
64,114
Notes to Schedule:
Contributions are a portion of State Fire Insurance Premiums.
$ - $
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Schedule of Investment Returns
2014
2013
201 2
2011
Annual money- weighted rate of return, net of 0.13%
investment expense
103
0.17%
0.20%
0.12%
Notes to Schedule:
Ten -year schedule required. However, until a full 10 -year trend is compiled, information is presented for those
years where information is available.
The key actuarial assumptions used for the January 1, 2015 valuation were:
Assumption
Rates
Actuarial Valuation Date
January 1, 2015
Actuarial Cost Method
I Asset Valuation Method
: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Measurement Date
: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Entry Age
: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair Market Value
: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
January 1, 2015
I We based the long -term expected rate of return on pension
plan investments assumption on the nature and mix of
Discount Rate (or Investment Return) current and expected pension plan assets over a period of
time representative of the expected length of time between
the first day of service and date of the last benefit payment.
The rate of 2.75% was selected.
Cost of Living 2.75 %, based on SSA OASDI 2014 report.
Salary Increases (for calculated
benefit increases based on rank)
Healthy Mortality
3.75 %, based on SSA OASDI 2014 report.
RP -2014 mortality table, total dataset, fully generational with
mortality improvement scale MP -2014 setback one year for
males and set forward one year for females.
RP -2014 mortality table, total dataset, fully generational with
Disabled Mortality mortality improvement scale MP -2014 set forward two years
for males and females.
Spouse Age 1 We assumed that wives are three years younger than
husbands.
Under the Firemen's Pension Trust fund, most adjustments are based on the change in salary for the
rank of members held at retirement or based on the Consumer Price Index. Adjustments are
determined in accordance with RCW 41.18.150, RCW 41.20 and RCW 41.26
104
RETIREE MEDICAL AND LONG -TERM CARE BENEFITS
FOR LEOFF 1 EMPLOYEES
SCHEDULE OF FUNDING PROGRESS
(Rounded to thousands)
Actuarial
Actuarial Value Accrued
Valuation Date of Assets Liabilities
Unfunded Actuarial
Accrued Liabilities
(UAAL)*
UAAL as a
Funded Covered Percentage of
Ratio Payroll Covered Payroll
January 1, 2008
January 1, 2011
January 1, 2014
January 1, 2015
$0
0
0
0
$16,103
14,805
21,264
29,538
$16,103
14,805
21,264
29,538
0%
0
0
0
SCHEDULE OF EMPLOYER CONTRIBUTIONS
$581
371
195
132
Fiscal Employer
Year Ending Contributions
Annual Required
Contributions Percentage of
(ARC) ARC Contributed
December 31, 2009
December 31, 2010
December 31, 2011
December 31, 2012
December 31, 2013
December 31, 2014
$335, 265
317,771
335,090
404,007
878,755
905,974
$1,366,284
1,366,284
1,264,522
1,264,522
1,264,522
1,903,679
25%
23
26
32
69
48
RETIREE MEDICAL AND LONG -TERM CARE BENEFITS
FOR LEOFF 1 EMPLOYEES
4%
3
1
0
Assumption
Rates
Actuarial Cost Method
Entry Age Normal method.
Measurement Date
January 1, 2015
Discount Rate (or Investment
Return)
Selected the assumed discount rate of 2.75% based on the five -
year average investment yield on the investments expected to
finance the payment of benefits.
Healthy Mortality
RPH -2014 mortality table (headcount weighted), total dataset, fully
generational with mortality improvement scale MP -2014 setback
one year for males and set forward one year for females.
Disabled Mortality
RPH -2014 mortality table (headcount weighted), total dataset, fully
generational with mortality improvement scale MP -2014 set forward
two years for males and females.
105
Turnover
None assumed. All LEOFF 1 actives are fully eligible for retirement.
Per Capita Claims Cost
Assumed annual per capita claims costs are as follows:
Age Medical /Rx Dental Vision LTC
55 $ 21,875 $ 966 $ 181 $ 133
60 28,071 966 181 220
65 15,406 966 181 448
70 16,924 966 181 1,183
75 17,984 966 181 3,028
80 18,348 966 181 6,499
Aging or Morbidity Factors
Aging /morbidity factors are included in the per capita claims costs
shown above (except dental and vision).
Medicare Part B Premium
Reimbursements
The City reimburses Medicare retirees for Part B premiums. The
2015 annual premium is $1,258.80.
Affordable Care Act (ACA)
Excise Tax Threshold
Ages 55 -64 All Other
Single $ 11,850 $ 10,200
ACA Base Premium
Assumed annual plan costs upon which the ACA tax calculation is
based:
Medicare ineligible $ 28,071
Medicare eligible $ 16,557
ACA Tax
• We assumed a 40% excise tax rate on premiums above the ACA
threshold.
• We assumed the City of Tukwila pays no federal taxes.
• We assumed the excise tax will apply to medical /Rx and Medicare
premium reimbursements.
Trend Rates
Medical Long -Term Trends* from Getzen SOA Model version
2014_b using baseline assumptions.
Excise
Pre- Part B Long -Term Tax
Year Medicare Medicare Dental Vision Premiums Care Threshold
2015 9. {H}% 6.50°;; 5.5% 4.0% 5.4% 5. { }% 0.40%
2016 7.50% 6.50% 5.0% 4.0% 5.4% 5.0% 0.00%
2017 6.50% .00% 4.5% 4.0% 5.4% 5.0% 0.00%
2018 5.50% 5.50 4.0% 4.0% 5.4% 5.0% 4.24%
2019 5.50% 5.50% 3.5% 3.5% 5.4% 5.0% 3.24%
202[} 5.46% 5.46% 3.5% 3.5% 5.4% 5.0% 3.24%
2021 -2074 _ -- - -- 3.5% 3.5% 5.4% 5.0% 3.24%
2075+ 3.80% 3.8(J% 3.5% 3.5% 5.4% 5.0% 3.2 .4%
The trend rates include assumed inflation of 3% for all future years.
106
NON -MAJOR GOVERNMENTAL FUNDS
The City has three types of non -major governmental funds:
Special Revenue Funds
Special Revenue Funds are established to account for proceeds of specific taxes or other
specific revenue sources that are legally restricted to expenditures for particular purposes. This
revenue is segregated into individual Special Revenue Funds to classify expenditures for
specified purposes.
Debt Service Funds
Debt Service Funds are used to account for payment of principal and interest on general
obligation long -term debt. The City maintains Debt Service Funds to provide debt service
payments on General Obligation Bonds both voted and councilmanic.
Capital Projects Funds
Capital Projects Funds account for the acquisition or development of major capital facilities,
except those projects financed by proprietary funds. Sources of revenue to these funds include
general obligation bond proceeds, federal and state grants, general property taxes, real estate
excise taxes, sales taxes, interest earnings, and transfers from other funds.
107
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENT FUNDS
DECEMBER 31, 2014
Total Total Total Total
Special Revenue Debt Service Capital Projects Governmental
Funds Funds Funds Funds
ASSETS:
Cash and cash equivalents $ 502,966 $ 673,804 $ 3,405,074 $ 4,581,844
Receivables:
Taxes 75,021 - 42,831 117,852
Customer accounts 95,679 - - 95,679
Due from other governmental units - 213,215 213,215
Current assets restricted:
Cash and cash equivalents 21,054 - - 21,054
Total Assets $ 694,719 673,804 3,661,120 5,029,643
LIABILITIES AND FUND BALANCES:
Current liabilities
Acoounts payable 41,900 - 254,672 296,572
Accrued wages and benefits 15,187 - 6,883 22,070
Customer deposit - - 14,459 14,459
Total Liabilities 57,087 - 276,014 333,101
Fund balances:
Restricted 637,632 668,849 2,455,219 3,761,700
Assigned - 4,955 929,886 934,841
Total Fund balances 637,632 673,804 3,385,106 4,696,541
Total Liabilities and Fund Balances $ 694,719 $ 673,804 $ 3,661,120 $ 5,029,643
108
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON -MAJOR GOVERNMENT FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2014
Total
Special Revenue
Funds
Total
Debt Service
Funds
Total
Capital Projects
Funds
Total
Governmental
Funds
REVENUES:
TAXES:
Taxes
Intergovernmental
Charged for services
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES:
Current:
General government
Economic environment
Physical environment
Public safety
CULTURAL AND RECREATION
Debt service
Principal
Interest
Capital Outlay
Total Expenditures
Execs (deficiency) of revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
$ 596,781 $
6,500
834,137
587
56,089
1,494,094
1,564,621
49,572
32,825
1,647,018
61,825
298
62,123
2,288,988
926,521
3,215,510
$ 431,680
774,571
66,862
3,655
1,276,768
110,851
18,335
163,075
1,424,223
1,716,484
$ 1,028,462
842,896
900,999
4,541
56,089
2,832,986
(152,923)
(3,153,386)
(152,923)
790,555
$ 637,632 $
3,150, 080
3,150,080
(439,716)
300,000
110,851
1,564,621
18,335
49,572
163,075
2,288,988
926,521
1,457,047
6,579,011
(3,746,025)
300,000
(3,306)
677,110
673,804
3,450,080
3,450,080
(139,716) (295,945)
3,524,822 4,992,487
$ 3,385,106 $ 4,696,541
109
110
NON -MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special Revenue Funds are established to account for proceeds of specific taxes or other
specific revenue sources that are legally restricted to expenditures for particular purposes. This
revenue is segregated into individual Special Revenue Funds to classify expenditures for
specified purposes.
Hotel /Motel Tax Fund
Established to account for the proceeds of a special excise tax on the sale of or charge made
for the furnishing of lodging that is subject to tax under Chapter 82.08 RCW. The tax applies to
lodging by hotel, rooming house, tourist court, motel or trailer camp. Proceeds from this tax may
only be used to promote tourism.
Drug Seizure Fund
Established to account for the yearly accumulation of drug seizure revenues and related
expenditures.
111
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2014
Hotel /Motel Tax Drug Seizure
Total
Special Revenue
Funds
ASSETS:
Cash and cash equivalents
Receivables:
Current taxes receivables
Customer Accounts
Current Assets Restricted:
Cash and cash equivalents
Total Assets
$ 431,858 $ 71,108 $ 502,966
75,021 75,021
95,679 - 95,679
21,054 21,054
602,558
92,161 694,719
LIABILITIES AND FUND BALANCES:
Accounts payable
Accrued w ages and benefits
Total Liabilities
11,526
15,187
26,714
30,374 41,900
15,187
30,374 57,087
Fund balances:
Restricted 575,844 61,787 637,632
Total Fund Balances 575,844 61,787 637,632
Total Liabilities and Fund Balances $ 602,558 $ 92,161 $ 694,719
112
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON -MAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2014
Total
Special Revenue
Hotel /Motel Tax Drug Seizure Funds
REVENUES:
Taxes $ 596,781 $ - $ 596,781
Intergovernmental 6,500 6,500
Charges for services 834,137 - 834,137
Investment earnings 555 32 587
Miscellaneous 8,580 47,509 56,089
Total Revenue 1,440,053 54,042 1,494,094
EX PENDITURES:
Current:
Public safety
Economic environment 1,564,621
Debt service: -
Capital outlay 14,533
Total Expenditures 1,579,154
Excess (deficiency) of revenues
Over (Under) Expenditures (139,101)
Net change in fund balances (139,101)
49,572
18,292
67,864
(13,822)
Fund balances - beginning 714,946
Fund Balances - ending $ 575,844 $
(13,822)
75,609
61,787 $
49,572
1,564,621
32,825
1,647,018
(152,923)
(152,923)
790,555
637,632
113
114
NON -MAJOR GOVERNMENTAL FUNDS
Debt Service Funds
Debt Service Funds are used to account for payment of principal and interest on general obligation long -term debt. The
City maintains Debt Service Funds to provide debt service payments on General Obligation Bonds both voted and
councilmanic.
Local Improvement District Guaranty Fund
The City is required under state law to establish a guaranty fund to provide a means of paying LID bond debt service
obligations in the event there are insufficient resources in the LID debt service fund.
Limited Tax G.O. Refunding 2003
This fund provides payment to the Fiscal Agent for principal and interest payments required per the debt service schedule
for the refunded Limited Tax G.O. 1994 Bonds for the construction of a new Community Center and replacement Fire
Station. Revenues are provided by allocation of sales tax proceeds.
Limited Tax G.O. Refunding 2008
This fund provides payment to the Fiscal Agent for principal and interest payments required per the debt service schedule
for the refunded Limited Tax G.O. 1999 Bonds for the purchase of an additional City Hall Annex and economic
revitalization projects. Revenues are provided by allocation of sales tax proceeds.
Limited Tax G.O. 2009A, Taxable Build America Bonds 2009B
This fund provides payment to the Fiscal Agent for principal and interest payments required per the debt service schedule
for the City's portion of the construction of a correctional facility along with six other cities.
Limited Tax G.O. Bonds, 2010A, Taxable Build America Bonds 2010B
This fund provides payment to the Fiscal Agent for principal and interest payments required per the debt service schedule
for bonds issued for the construction and realignment of Southcenter Parkway in the Tukwila South Annexation area and
for the cost of emergency preparedness capital and other equipment.
Limited Tax G.O. Refunding 2010
This fund provides payment to Valley Communications Center for principal and interest on bonds issued in April 2010 to
refund bonds that were originally issued in 2000 to pay for the new Valley Communications Center. This debt reflects
Tukwila's share with four other cities. Each of the five cities is responsible for one -fifth of the annual debt service.
Limited Tax G.O. Refunding 2011
This fund provides payment to the Fiscal Agent for principal and interest on bonds issued in December 2011 to refund a
portion of the bonds that were originally issued in 2003 for the City's Arterial Street program.
Limited Tax G.O. 2013
This fund provides payment to the Fiscal Agent for principal and interest on bonds issued in November 2013. The
proceeds were loaned to the Tukwila Metropolitan Park District to pay for improvements to the pool.
115
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR DEBT SERVICE FUNDS
DECEMBER 31, 2014
Special LTGO LTGO Score LTGO Bonds Valley Com LTGO LTGO
Assesment Refunding Refunding LTGO 2010** LTGO Refunding Bonds
Bonds Bonds 2003 Bonds 2008 Bonds Refunding Bonds 2011 2013
Guaranty (Ref 1999) (Ref 1999) 2009* Bonds 2010 (Ref 2003)
Fund 2013 (Ref 2000)
Total
Nonmajor
Debt Service
Funds
ASSETS:
Cash and cash equivalents
TOTAL ASSETS
LIABILITIES AND FUND BALANCES:
Total Liabilities
$ 669,147 $ 195 $ 416 $ 2 $ 2,710 $ 794 $ 539 $ - $ 673,804
669,147 195 416 2 2,710 794 539 - 673,804
Fund balances:
Restricted 668,849 - - 668,849
Assigned 298 195 416 2 2,710 794 539 - 4,955
Total Fund Balances 669,147 195 416 2 2,710 794 539 673,804
Total Liabilities and Fund Balances $ 669,147 $ 195 $ 416 $ 2 $ 2,710 $ 794 $ 539 $ - $ 673,804
Limited Tax GO Bonds 2009A also includes Lirrited Tax GO Bonds 2009B
Limited Tax GO Bonds 2010A also includes Taxable Build America Bonds 2010B
116
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON -MAJOR DEBT SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2014
Special LTGO LTGO Score LTGO LTGO Bonds Valley Com LTGO LTGO Bonds Total
Assessment Refunding Refunding Bonds 2010** LTGO Refunding 2013 Nonnrajor
Bonds Guaranty Bonds 2003 Bonds 2008 2009* Refunding Bonds 2011 Debt Service
Fund 2013 (Ref 1994) (ref 1999) Bonds 2010 (Ref 2003) Funds
(Raf 20061
REVENUES:
Intergovernmental
Investment earnings
Total revenues
$
- $ - $ - $ - $ 61,825 $ - $ - $ - $ 61,825
298 - - 298
298
61,825 - 62,123
EXPENDITURES:
Debt service
Principal 465,000 595,000 159,200 365,000 212,000 395,000 97,788 2,288,988
Interest - 23,250 217,000 282,551 218,425 17,280 152,675 15,342 926,522
Total Expenditures 488,250 812,000 441,751 583,425 229,280 547,675 113,130 3,215,511
Excess (deficiency) of revenues
Over (Under) Expenditures
298 (488,250) (812,000) (441,751) (521,600) (229,280) (547,675) (113,130) (3,153,387)
OTHER FINANCING SOURCES (USES):
Transfers in 488,250 812,000 440,300 518,400 230,000 548,000 113,130 3,150,080
Total Other Financing Source And Uses 488,250 812,000 440,300 518,400 230,000 548,000 113,130 3,150,080
Net change in fund balances 298 (1,451) (3,200) 720 325 - (3,307)
Fund balances - beginning 668,849 195 416 1,453 5,910 74 214 - 677,110
Fund Balances - Ending $ 669,147 $ 195 $ 416 $ 2 $ 2,710 $ 794 $ 539 $ $ 673,803
* Limited Tax GO Bonds 2009A also includes Limited Tax GO Bonds 2009B
** Lirrited Tax GO Bonds 2010A also includes Taxable Build America Bonds 2010B
117
118
NON -MAJOR GOVERNMENTAL FUNDS
Capital Projects Funds
Capital Projects Funds account for the acquisition or development of major capital facilities,
except those projects financed by proprietary funds. Sources of revenue to these funds include
general obligation bond proceeds, federal and state grants, general property taxes, real estate
excise taxes, sales taxes, interest earnings, and transfers from other funds.
Street
Established in accordance with RCW 35A.37.010 to account for maintenance and improvement
of the City's street and traffic control systems. Major sources of support are general tax revenues
and the State - levied tax on motor vehicle fuels distributed to Tukwila, to be used for City Street
purposes.
Land Acquisition, Recreation, and Park Development
This fund is to be used for the acquisition of land, development of land, and construction of park
facilities. Street, utility, golf course improvements, or general government facilities
improvements are not included in this fund.
General Government Improvements
This fund was established in 1992 to provide funding for minor capital improvements not related
to parks, land acquisition, or major building replacements.
Fire Improvements
This fund is to be used for the acquisition of land, development of land, and construction of fire
facilities. Source of revenue from this fund comes primarily from fire impact fees.
119
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR CAPITAL PROJECTS FUNDS
DECEMBER 31, 2014
Land ACQ. General Total Nonmajor
Residential Rec & Park Government Fire Capital Project
Street Development Improvements Improvements Funds
ASSETS:
Cash and cash equivalents $ 1,175,916 $ 1,293,747 $ 430,911 $ 504,500 $ 3,405,074
Receivables:
Taxes 42,831 - - 42,831
Due from other governmental units 115,233 97,982 - 213,215
Total Assets 1,333,980 1,391,728 430,911 504,500 3,661,120
LIABILITIES AND FUND BALANCES:
Current payables:
Accounts payables 153,989 89,076 11,608 - 254,672
Accrued wages and benefits 2,866 473 3,543 - 6,883
Customer deposit 12,832 - 1,627 - 14,459
Total Liabilities 169,687 89,549 16,778 - 276,014
Fund balances:
Restricted 832,875 1,117,845 504,500 2,455,219
Assigned 331,418 184,335 414,133 - 929,886
Total Fund Balace 1,164,293 1,302,180 414,133 504,500 3,385,106
Total Liabilities and Fund Balances $ 1,333,980 $ 1,391,728 $ 430,911 $ 504,500 $ 3,661,120
120
CITY OFTUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON -MAJOR CAPITAL PROJECTS FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2014
Land ACQ. General Total Nonmajor
Residential Rec & Park Government Fire Capital Projects
Street Development Improvements Improvements Funds
REVENUES:
Taxes
Charges for services
Intergovernmental
Investment earnings
Total Revenues
EXPENDITURES:
Current:
General government
Physical environment
Culture and recreation
Capital Outlay
Total Expenditures
685,954
1,418
687,372
$ 431,680 $
88,617
1,400
521,697
421
421
$ $ 431,680
66,862 66,862
774,571
416 3,655
67,278 1,276,768
110,851 - 110,851
11,398 6,937 - 18,335
163,075 - - 163,075
1,039,035 264,933 120,254 - 1,424,223
1,039,035 439,407 238,042 - 1,716,484
Exces (deficiency) of revenues
Over (Under) Expenditures (351,663)
82,290 (237,621)
67,278 (439,716)
OTHER FINANCING SOURCES (USES):
Transfers in 100,000 200,000
Total Other Financing Sources And Uses 100,000 200,000 -
Net change in fund balances (251,663) 82,290 (37,621) 67,278
300,000
300,000
(139,716)
Fund balances - beginning 1,415,955 1,219,890 451,755 437,222 3,524,822
Fund Balances - ending $ 1,164,293 $ 1,302,180 $ 414,133 $ 504,500 $
121
3,385,106
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
LOCAL IMPROVEMENT DISTRICT #33 DEBT SERVICE FUND
FOR THE YEAR ENDED DECEMBER 31,2014
Original Final
Budget Budget
(Gaap Basis) (Gaap Bais)
Actual
Results
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Special assessment $ 600,000 $ 600,000 $ 701,723 $ 101,723
Investment earnings 248,400 248,400 338,950 90,550
Miscellaneous - - 1,352 1,352
Total Revenues
848,400 848,400
1,042,024 193,624
EXPENDITURES:
Debt service:
Principal
Interest
600,000 600,000 600,000
248,400 248,400 - 248,400
Total Expenditures 848,400
848,400 848,400
Excess Of Revenues And Expenditures
1,042,024 1,042,024
Net change in fund balances - 1,042,024 1,042,024
Fund balances - beginning
Fund Balances - Ending $ - $ - $ 1,042,024 $ 1,042,024
122
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
ARTERIAL STREET CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31, 2014
Original Final
Budget Budget
(Gaap Basis) (Gaap Basis)
Actual
Results
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Taxes $ 281,000 $ 281,000 $ 496,017 $ 215,017
Intergovernmental 18,862,000 16,412,000 8,123,368 (8,288,632)
Charges for services - - 165,181 165,181
Investment earnings - - 3,653 3,653
Micellaneous 80,000 538,000 139,494 (398,506)
Total Revenues
EXPENDITURES:
Current:
Transportation
Capital ourlay
19,223,000 17,231,000 8,927,713 (8,303,287)
25,212,291
25,500 3,214,999 (3,189,499)
26, 574, 791 8,282,737 18, 292, 054
Total Expenditures
25,212,291 26,600,291 11,497,736 15,102,555
Excees (deficiency) of revenues
Over (Under) Expenditures
(5,989,291) (9,369,291) (2,570,023) 6,799,268
OTHER FINANCING SOURCES (USES):
Transfers in 1,850,000 1,850,000 2,850,000 1,000,000
Transfers out - -
General obligation bonds proceeds 3,920,000 5,900,000 (5,900,000)
Total Other Financing Sources And Uses 5,770,000 7,750,000 2,850,000 (4,900,000)
Net change in fund balances (219,291) (1,619,291) 279,977 1,899,268
Fund balance - beginning 311,395 2,781,395 1,095,535 (1,685,860)
Fund Balances - Ending $ 92,104 $ 1,162,104 $ 1,375,512 $ 213,408
123
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FACILITIES CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31,2014
Original Final
Budget Budget
(Gaap Basis) (Gaap Bais)
Actual
Results
Variance With
Final Budget
Pos itiv e
(Negative)
REVENUES:
Investment earnings
Miscellaneous
Total Revenues
EXPENDITURES:
Current:
General Government
Capital outlay
Total Expenditures
Excess Of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Sales of capital assets
Bond proceeds
Transfers out
Total Other Financing Sources And Uses
Net change in fund balances before special item
Special item
Net change in fund balances after special item
Fund balances - beginning
Prior period adjustment
Fund balances - beginning as restated
Fund Balances - Ending
$ 5,602 $
5,602 $
1,216 $ (4,386)
5,602 5,602
1,216 (4,386)
10,000
10,000
10,000
10,000
247,365
(247,365)
10,000
247,365 (237,365)
(4,398) (4,398) (246,149) (241,751)
4,355,000 4,355,000 - (4,355,000)
- - 3,850,000 3,850,000
(4,355,000) (4,355,000) (1,000,000) 3,355,000
- - 2,850,000 2,850,000
(4,398) (4,398) 2,603,851 2,608,249
(1,995,000) (1,995,000)
(4,398) (4,398) 608,851 613,249
1,415,602 1,415,602 1,902,602 487,000
5,795,000 5,795,000
1,415,602 1,415,602 7,697,602 6,282,000
$ 1,411,204 $ 1,411,204 $ 8,306,453 $ 6,895,249
124
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
HOTEL /MOTEL TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2014
Variance With
Original Final Final Budget
Budget Bduget Actual Positive
(Gaap Basis) (Gaap Basis) Results (Negative)
REVENUES:
Taxes:
Taxes $ 565,000 $ 565,000 $ 596,781 $ 31,781
Charges for services 838,550 853,550 834,137 (19,413)
Investment earnings 1 ,766 1,766 555 (1,211)
Miscellaneous 12,000 12,000 8,580 (3,420)
Total Revenues 1,417,316 1,432,316 1,440,053 7,737
EXPENDITURES:
Current:
Economic environment 1,639,003 1,631,103 1,564,621 66,482
Capital outlay:
Economic environment 10,000 10,000 14,533 (4,533)
Total Expenditures 1,649,003 1,641,103 1,579,154 61,949
Excess (deficiency) of revenues
Over (Under) Expenditures (231,687) (208,787) (139,101) 69,686
Net change in fund balances (231,687) (208,787) (139,101) 69,686
Fund balances - beginning $ 528,484 $ 525,584 714,946 189,362
Fund Balances - Ending $ 296,797 $ 316,797 $ 575,844 $ 259,047
125
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
DRUG SEIZURE SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2014
Variance With
Original Final Final Budget
Budget Budget Actual positive
(Gaap Basis) (Gaap Basis) Results (Negative)
REVENUES:
Investment earnings $ 1,000 $ 1,000 $ 32 $ (968)
Intergovernmental - - 6,500 6,500
Fines and forfeitures 20,000 20,000 47,509 27,509
Total Revenues 21,000 21,000 54,042 33,042
EXPENDITURES:
Current:
Public safety 55,000 55,000 49,572 5,428
Capital outlay:
Public safety - 18,292 (18,292)
Total Expenditures 55,000 55,000 67,864 5,428
Excess (deficiency) of revenues
Over (Under) Expenditures (34,000) (34,000) (13,822) 20,178
OTHER FINANCING SOURCES (USES):
Transfers in 75,000 75,000 - (75,000)
Total Other Financing Sources And Uses 75,000 75,000 - (75,000)
Net change in fund balances 41,000 41,000 (13,822) (54,822)
Fund Balances - beginning 321,000 246,000 75,609 (170,391)
Fund Balances - Ending $ 362,000 $ 287,000 $ 61,787 $ (225,213)
126
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
DEBT SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31,2014
Original Final
Budget Budget
(Gaap Basis) (Gaap Bais)
Actual
Results
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Intergovernmental $ 66,657 $ 66,657 $ 61,825 $ (4,832)
Investment earnings 298 298
Total Revenues 66,657 66,657 62,123 (4,534)
EXPENDITURES:
Debt service: -
Principal 2,191,000 2,191,200 2,288,988
Interest 901,795 912,195 926,521
(97,788)
(14,326)
Total Expenditures
3,092,795 3,103,395
3,215,510 (112,115)
Excess Of Revenues And Expenditures (3,026,138)
(3,036,738)
(3,153,386) (116,648)
OTHER FINANCING SOURCES (USES):
Transfers in 3,028,650
Total Other Financing Sources And Uses 3,028,650
3,093,515
3,150,080 56,565
3,093,515
3,150,080 56,565
Net change in fund balances 2,512 56,777 (3,306) (60,083)
Fund balances - beginning 8,289 688,289 677,110 (11,179)
Fund Balances - Ending $ 10,801 $ 745,066 $ 673,804 $ (71,262)
127
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
RESIDENTIAL STREET CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31,2014
Original Final
Budget Budget
(Gaap Basis) (Gaap Bais)
Actual
Results
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Intergovernmental
Investment earnings
Total Revenues
EXPENDITURES:
Current:
Transportation
Capital outlay
Total Expenditures
$ 660,000 $ 955,000 $ 685,954 $ (269,046)
1,000 1,000 1,418 418
661,000 956,000 687,372 (268,628)
650,0- 00
650,000
1,350,0- 00
1,350,000
1,039,035
1,039,035
310,9- 65
310,965
Excess Of Revenues And Expenditures 11,000 (394,000) (351,663) 42,337
OTHER FINANCING SOURCES (USES):
Transfers in 100,000 100,000 100,000
Total Other Financing Sources And Uses 100,000 100,000 100,000
Net change in fund balances 111,000 (294,000) (251,663) 42,337
Fund balances - beginning 512,000 1,107,000 1,415,955 308,955
Fund Balances - Ending $ 623,000 $ 813,000 $ 1,164,293 $ 351,293
128
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
LAND & PARK ACQUISITION CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31,2014
r
Original Final
Budget Budget
(Gaap Basis) (Gaap Bais)
Actual
Results
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Taxes $ 130,000 $ 130,000 $ 431,680 $ 301,680
Intergovernmental 1,970,000 2,500,000 88,617 (2,411,383)
Charges for services 115,000 115,000 - (115,000)
Fines and Foreitures - - -
Investment earnings 1,000 1,000 1,400 400
Miscellaneous 500,000 500,000 - (500,000)
Total Revenues 2,716,000 3,246,000 521,697 (2,724,303)
EXPENDITURES:
Current:
Physical environment - - 11,398 (11,398)
Culture and recreation - 163,075 (163,075)
Capital outlay 2,682,000 3,762,000 264,933 3,497,067
Total Expenditures 2,682,000 3,762,000 439,407 3,322,593
Excess Of Revenues And Expenditures 34,000 (516,000) 82,290 598,290
OTHER FINANCING SOURCES (USES):
Transfers in 212,000 212,000 - (212,000)
Total Other Financing Sources And Uses 212,000 212,000 - (212,000)
Net change in fund balances 246,000 (304,000) 82,290 386,290
Fund balances - beginning 527,000 1,027,000 1,219,890 192,890
Fund Balances - Ending $ 773,000 $ 723,000 $ 1,302,180 $ 579,180
129
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL GOVERNMENT IMPROVEMENTS CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31,2014
Original Final
Budget Budget
(Gaap Basis) (Gaap Bais)
Actual
Results
Variance With
Final Budget
Positive
(Negative)
REVENUES:
Investment earnings $ 842 $
Total Revenues 842
842 $
421 $ (421)
842 421 (421)
EXPENDITURES:
Current:
General Government
Physical environment
Capital outlay
Total Expenditures
110,851 (110,851)
- 6,937 (6,937)
335,205 335,205 120,254 214,951
335,205 335,205 238,042 97,163
Excess Of Revenues And Expenditures
(334,363) (334,363) (237,621) 96,742
OTHER FINANCING SOURCES (USES):
Transfers in
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
500,000 500,000 200,000 (300,000)
500,000 500,000 200,000 (300,000)
165,637 165,637 (37,621) (203,258)
92,905 792,905 451,755 (341,150)
$ 258,542 $ 958,542 $ 414,133 $ (544,409)
130
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FIRE IMPROVEMENTS CAPITAL PROJECT FUND
FOR THE YEAR ENDED DECEMBER 31,2014
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(Gaap Basis) (Gaap Bais) Results (Negative)
REVENUES:
Fire impact fees
Investment earnings
Total Revenues
EXPENDITURES:
Current:
Public Safety
Capital outlay
$ 50,000 $ 50,000 $ 66,862 $ 16,862
100 100 416 316
50,100 50,100 67,278 17,178
5,000
5,000
5,000
Total Expenditures 5,000
Excess Of Revenues And Expenditures 50,100 45,100 67,278 22,178
Net change in fund balances 50,100 45,100 67,278 22,178
Fund balances - beginning 350,100 295,100 437,222 142,122
Fund Balances - Ending $ 400,200 $ 340,200 $ 504,500 $ 164,300
131
NON -MAJOR INTERNAL SERVICE FUNDS
Internal Service Funds
The City Internal Service Funds are used to account for the financing of special services
performed by designated department within the City of Tukwila to other departments within the
City. They provide a service and then generate revenue by billing the department for which the
service was provided.
Equipment Rental Fund
Accounts for the costs of maintaining and replacing all City vehicles and auxiliary equipment.
All equipment costs, including depreciation, are factors in calculating the rates which are charged
to each user department.
Insurance Fund - Active Employees
Accounts for the costs of the City's self- insured medical plan. Medical and dental costs for
covered employees are charged to the respective user departments. All premiums, medical and
dental costs and ancillary charges are included. The LEOFF I retiree portion of this program was
split off into a separate Insurance Fund to accommodate new reporting regulations as of January
1, 2004.
Insurance LEOFF I Fund
This fund was created to account for the City's self- insured medical plan for LEOFF I retirees.
This fund receives contributions on behalf of retired LEOFF I employees through their respective
organization units. Medical, dental and prescription claims and program administrative fees are
expensed in this fund.
132
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
DECEMBER 31, 2014
Equipment
Rental
Insurance
Active Employees
Total
Insurance - Internal
Leoff I Service
Retirees Funds
ASSETS:
Current assets
Cash and cash equivalents $ 4,040,340 $ 430,878 $ 526,650 4,997,868
Investments 681,526 4,279,885 - 4,961,411
Receivables
Customer accounts 3,858 - - 3,858
Interest on investments 1,879 42,375 - 44,255
Inventory of materials and supplies 14,971 - - 14,971
Total Current Assets 4,742,574 4,753,138 526,650 10,022,362
NONCURRENT ASSETS:
Capital Assets:
Machinery and equipment
Less: accumulated depreciation
Total Capital Assets (Net Of A /D)
Total Noncurrent Assets
13,799,027 - - 13,799,027
(9,560,964) - - (9,560,964)
4,238,063 - - 4,238,063
4,238,063 - - 4,238,063
Total Assets
8,980,637 4,753,138 526,650 14,260,425
LIABILITIES:
Accounts payable
Accrued w ages and benefits
Other liabilities
Total Liabilities
NET POSITION:
Net investment in capital assets
Unrestricted
Total Net Position
27,736 - 3,256 30,992
18,754 - - 18,754
2,260,000 285,750 2,545,750
46,490 2,260,000 289,006 2,595,496
4,238,064 - - 4,238,064
4,696,083 2,493,138 237,644 7,426,866
$ 8,934,147 $ 2,493,138 $ 237,644 $ 11,664,929
133
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2014
Total
Insurance- Internal
Equipment Insurance Leoff I Service
Rental Active Employees Retirees Funds
OPERATING REV ENUES:
Charges for services
Other operating revenue
Total Operating Revenue
$ 2,528,690
1,108
2,529,798
$ 4,437,041
61,380
4,498,422
$ 300,000 $ 7,265,731
62,488
300,000 7,328,220
OPERATING EXPENSES:
Operations & maintenance 1,243,020 6,556,711
Administrative & general 298,930 75,500
Depreciation 778,985 -
949,930
9,906
8,749,661
384,336
778,985
Total Operating Expenses
Operating Income (Loss)
2,320,935
208,863
6,632,211
(2,133,789)
959,836
(659,836)
9,912,982
(2,584,762)
NON - OPERATING REVENUE ( EXPENSE) :
Investment earnings (1,662) 166,583 598 165,519
Sale of capital assets 36,162 - 36,162
Total Non- Operating Revenue (Expense) 34,500
Income (Loss Before Contributions & Transfers 243,363
166,583
(1,967,207)
598
(659,238)
201,681
(2,383,081)
Change In Net Position
Net position beginning of year
Net Position end of year
243,363
8,690,784
$ 8,934,147
(1,967,207) (659,238) (2,383,081)
4,460,344 896,882 14,048,010
$ 2,493,138 $ 237,644 $ 11,664,929
134
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2014
Page 1 of 2
Equipment
Rental
Insurance
Total
Internal
Insurance - Service
Leoff I Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users
Cash paid to suppliers
Cash paid to, or on behalf of, employees
$ 2,525,941 $ 4,498,422 $ 300,000 $ 7,324,362
(1,035,335) 465,988 48,485 (520,862)
(536,021) (6,507,449) (933,565) (7,977,034)
Net Cash Provided (Used)
By Operating Activities
954,585 (1,543,039)
(585,080) (1,173,534)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Proceed from sale of equipment
Purchase of capital asset
Net Cash Provided (Used) For Capital
And Related Financing Activities
36,162 36,162
(584,097) (584,097)
(547,934) (547,934)
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from sale of investments 120,000 120,000
Interest received 32,955 136,326 598 169,880
Net Cash Provided (Used) In Investing Activities 152,955 136,326 598 289,880
Net Increase (Decrease) In Cash And
Cash Equivalents
559,606 (1,406,713)
(584,482) (1,431,589)
Cash and cash equivalents
Cash and cash equivalents- beginning of year
Cash And Cash Equivalents -End Of Year
Cash at end of year consists of:
Cash and cash equivalents
(1,431,589)
3,480,738 1,837,591 1,111,132 6,429,460
$ 4,040,340 $ 430,878 $ 526,650 $ 4,997,871
Total Cash
$ 4,040,340 $ 430,878 $ 526,650 4,997,868
$ 4,040,340 $ 430,878 $ 526,650 $ 4,997,868
135
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2014
Page 2 of 2
Equipment
Rental
Insurance
Total
Internal
Insurance - Service
Leoffl Funds
RECONCILIATION OF NET OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)
$ 208,863 $ (2,133,789) $ (659,836) $ (2,584,762)
Adjustments to reconcile operating income to net cash
Provided (used) by operating activities:
Depreciation 778,985 - 778,985
Asset (increases) decreases: -
Accounts receivable (3,858) - (3,858)
Inventory (1,635) - (1,635)
Accounts payable (27,659) 590,750 74,756 637,847
Wages and benefits payable (114) - (114)
Total Adjustments
745,719 590,750
74,756 1,411,225
Net Cash Provided (Used) By Operating Activities $ 954,582 $ (1,543,039) $ (585,080) $ (1,173,536)
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Increase in fair value of investment $ 11,131 $ - $ $ 11,131
Total Non Cash Investing, Capital And
Financing Acitivties $ 11,131 $
$
- $ 11,131
136
FIDUCIARY FUNDS
Fiduciary Funds
Fiduciary funds are used to account for assets held by the City of Tukwila as a trustee or agent
for various individuals, private organizations, and other governmental units.
Agency Fund
Agency funds are used to account for short -term custodial collections on resources on behalf
of another individual, entity, or government.
138
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
FOR THE YEAR ENDED DECEMBER 31, 2014
Balance Balance
January 1, 2014 Additions Deductions December 31,2014
ASSETS
Cash and cash equivalents $ 177,206 $ 784,219 $ (800,176) $ 161,249
Receivables 2,934 186,489 (184,239) 5,184
Total Assets 180,140 970,708 (984,415) 166,433
LIABILITIES
Accounts and other payables 180,140 1,488,834 (1,502,542) 166,433
Total Liabilities $ 180,140 $ 1,488,834 $ (1,502,542) $ 166,433
139
140
City of Tukwila
STATISTICAL SECTION
December 31, 2014
Financial Trends Information
Financial trends schedules are intended to provide users with information to assist them in understanding and
assessing how the City's financial position has changed over time.
Schedule 1 Net Position by Component 143
Schedule 2 Changes in Net Position 145
Schedule 3 Fund Balances, Governmental Funds 147
Schedule 4 Changes in Fund Balances, Governmental Funds 149
Schedule 5 General Governmental Tax Revenues by Source 151
Revenue Capacity Information
The objective of providing revenue capacity information is to help users understand and assess the factors
affecting the City's ability to generate its most significant local source revenues.
Schedule 6 Property Tax Levies and Collections 152
Schedule 7 Assessed and Estimated Actual Value of Taxable Property 153
Schedule 8 Property Tax Rates - Direct and Overlapping Governments 154
Schedule 9 Principal Property Taxpayers 155
Schedule 10 Retail Sales Tax Collections by Sector 157
Schedule 11 Sales Tax Rate Direct and Overlapping Governments 159
Debt Capacity Information
Debt capacity information is intended to assist users to understand and assess the City's current levels of
outstanding debt and ability to issue additional debt in the future.
Schedule 12 Ratios of Outstanding Debt by Type 161
Schedule 13 Ratios of General Bonded Debt Outstanding 163
Schedule 14 Computation of Direct and Overlapping Debt 164
Schedule 15 Legal Debt Margin Information 165
Schedule 16 Revenue Bond Coverage- Water Bonds 167
Schedule 17 Revenue Bond Coverage- Sewer Bonds 168
Schedule 18 Revenue Bond Coverage- Surface Water Bonds 169
Demographic and Economic Information
These Schedules offer demographic and economic information to assist users in understanding certain aspects
of the environment within which the City operates and to provide information that facilitates comparisons of
financial statement information over time and across governmental units.
Schedule 19 Water System Customers by Category 170
Schedule 20 Largest Customers of the Water System 171
Schedule 21 Sewer System Customers by Category 172
Schedule 22 Largest Customers of the Sewer System 173
Schedule 23 Demographic Statistics 174
Schedule 24 Principal Employers 175
Operating Information
These Schedules contain service and infrastructure data to help users understand how the information in the
City's financial report relates to the services the City provides and the activities it performs.
Schedule 25 Full -time Equivalent Employee by Department 176
Schedule 26 Operating Indicators by Function 177
Schedule 27 Capital Assets by Function 178
141
142
CITY OF TUKWILA
SCHEDULE 1
NET POSITION BY COMPONENT(a)
LAST TEN FISCAL YEARS
Page 1 of 2
2005 2006 2007 2008 2009
Governmental activities:
Invested in capital assets, net of
related debt $ 129,855,251 $ 133,129,382 $ 136,053,013 $ 136,742,368 $ 155,847,012
Restricted 1,305,239 1,305,239 1,233,234 19,720,546 16,360,097
Unrestricted 25,289, 571 29,506, 541 35,520,681 18,476,837 16,031,473
Total governmental activities net position $ 156,450,061 $ 163,941,162 $ 172,806,928 $ 174,939,751 $ 188,238,582
Business -type activites:
Invested in capital assets, net of
related debt $ 31,370,812 $ 34,017,190 $ 36,083,972 $ 36,071,402 $ 38,052,488
Restricted 577,587 435,995 441,073 439,100 438,619
Unrestricted 9,909,896 12,070,451 11,267,171 13,335,836 10,987,162
Total business -type activities net position $ 41,858,295 $ 46,523,636 $ 47,792,216 $ 49,846,338 $ 49,478,269
Primary government:
Invested in capital assets, net of
related debt $ 161,226,063 $ 167,146,572 $ 172,136,985 $ 172,813,770 $ 193,899,500
Restricted 1,882,826 1,741,234 1,674,307 20,159,646 16,798,716
Unrestricted 35,199,467 41,576,992 46,787,852 31,812,673 27,018,635
Total primary government net position $ 198,308,356 $ 210,464,798 $ 220,599,144 $ 224,786,089 $ 237,716,851
Notes:
(a) All amounts are reported on the accrual basis
Source:
Tukw ila Finance Department
143
Page 2 of 2
2010 2011 2012 2013 2014
$ 177,078,793 $ 199,511,779 $ 203,206,940 $207,660,389 $ 191,081,461
23,005,792 5,019,817 2,749,680 3,480,002 3,973,726
12,119,923 21,479,064 20,194,333 26,981,105 25,009,212
$ 212,204,508 $ 226,010,660 $ 226,150,953 238,121,496 $ 220,064,400
$ 44,759,489 $ 52,134,799 $ 52,911,741 55,955,595 $ 57,677,764
430,444 430,444 430,444 430,444 430,444
11,158,081 10,225,558 11,011, 319 12,964, 539 13,839, 529
$ 56,348,014 $ 62,790,801 $ 64,353,504 69,350,577 $ 71,947,737
$ 221,838,282 $ 248,636,920 $ 253,253,170 $263,615,984 $ 248,759,225
23,436,236 5,450,261 3,180,123 3,910,445 4,404,170
23,278,004 34,714,280 34,071,164 39,945,644 38,848,741
$ 268,552,522 $ 288,801,461 $ 290,504,457 307,472,073 $ 292,012,137
CITY OF TUKWILA, WASHINGTON
SCHEDULE 2
CHANGES IN NET POSITION (a)
Page 1 of 2
2005
2006
2007 A. 2008
Expenses
Governmental Activities
General Government
Public Safety
Transportation
Physical Environment
Culture and Recreation
Econonic Environment
Health and Human Services
Interest on Long Term Debt
Total Governmental Activities
Business Type Activities
Water/Sew er Utility
Foster Golf Course
Surface Water Utility
Total Business Type Activities
Total Primary Government Expenses
Program Revenues
Governmental Activities
Charges for Services
General Government
Public Safety
Physical Environment
Transportation
Cultural and Recreation
Economic Environment
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities Program Revenues
Business Type Activities
Charges for Services
Water /Sew er Utility
Foster Golf Course
Surface Water Utility
Capital Grants and Contributions
Total Business Type Activities Rogram Revenues
Total Primary Government Rogram Revenues
Net (Expense) /Revenue
Governmental Activities
Business Type Activities
Total Primary Government Net Expense _
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property Tax
Retail Sales and Use Tax
Natural Gas Use Tax
Hotel/Motel Tax
Utility Tax
hterfund Utility Taxes
Business Tax
Excise Tax
State Entitlements
Unrestricted hvestment Earnings
Gain /Loss on Sale of Capital Assets
Mscellaneous
Transfers
Total Governmental Activities
Business Type Activities
Retail Sales and Use Taxes
Unrestricted Investment Interest
Gain /Loss on Sale of Capital Assets
Mscellaneous
Transfers
Total Business Type Activities
Total Primary Government
$ 6,421,839
20,300,709
4,171,173
1,363,049
3,887,871
3,404,605
1,012,239
40,561,485
7,105,020
1,751,709
1,685,663
10,542,392
51,103,877
$ 7,402,398
21,839,070
5,335,214
2,734,592
4,234,889
3,600,158
3,683
981,573
46,131,577
7,354,876
1,832,303
1,642,204
10,829,383
56,960,960
$ 7,456,335 $ 4,723,103
21,726,932 24,147,992
5,310,247 5,864,297
2,764,373 2,862,487
4,506,223 4,797,856
3,890,845 5,017,935
4,204 4,173
896,215 1,844,224
46,555,374 49,262,067
7,046,603 7,293,362
1,849,542 1,968,595
1,920,194 1,762,417
10,816,339 11,024,374
57,371,713 60,286,441
1,376,749 1,243,936 1,590,553 895,966
1,328,369 538,576 425,241 1,184,530
12,400 10,000 25,341 1,200
122,201 247,026 133,500 130,637
693,857 758,385 777,484 711,542
1,027,812 1,756,240 2,319,634 2,476,501
1,525,579 1,897,543 1,692,766 1,325,163
3,060,960 5,675,493 3,746,743 2,282,592
9,147,927 12,127,199 10,711,262 9,008,131
7,604,711 7,354,876 8,272,647 8,621,909
1,434, 933 1,832,303 1,272,425 1,563,681
1,839,760 1,642,204 2,208,549 2,642,325
319,439 1,255,360 347,416 756,400
11,198,843 12,084,743 12,101,037 13,584,315
20,346,770 24,211,942 22,812,299 22,592,446
(31,413,558) (34,004,378) (35,844,111) (40,253,937)
656,451 2,031,638 1,284,700 2,559,941
(30,757,107) (31,972,740) (34,559,411) (37,693,996)
10,631,036 10,973,030 11,302,099 11,656,979
16,887,846 18,236,733 19,355,867 18,009,297
381,706 415,652 344,748 643,037
443,605 501,478 583,232 587,216
2,646,356 2,930,332 3,666,079 5,136,444
1,732,739 2,097,082 2,236,675 2,497,705
3,229,155 4,941,461 4,127,360 983,078
192,816 185,475 217,600 874,046
768,097 1,923,171 1,727,879 801,847
106,776 467,510 13,652 (186,663)
824,118 1,372,652 1,134,683 1,383,774
37,844,250 44,044,576 44,709,874 42,386,760
241,723 645,473 500,000 500,000
310,750 539,463 618,563 377,955
(824,118)
(271,645)
37,572,605
Change in Net Position Before Special Item 6,815,498
Special item
Change in Net Position 6,815,498
Governmental Activities $ 6,430,692
Business Type Activities 384,806
Total Primary Government $ 6,815,498
Notes:
(a) All amounts are reported on the accrual basis
145
1,250,000
2,434,936
46,479,512
14,506,772
(1,134,683) (1,383,774)
(16,120) (505,819)
44,693,754 41,880,941
10,134,343 4,186,945
14,506,772 10,134,343 4,186,945
$ 7,491,102 $ 8,865,765 $ 2,132,823
4,580,734 1,268,580 2,054,122
$ 12,071,836 $ 10,134,345 $ 4,186,945
Page 2 of 2
2009 = 2010 2011 A. 2012 7 2013 2014
$ 6,689,659 $ 7,052,717 $ 9,150,573 $ 8,343,107 $ 10,195,049 $ 10,289,399
26,959,352 26,088,644 25,348,318 26,598,432 25,938,946 29,292,587
5,541,367 6,015,197 6,872,708 7,314,707 7,658,280 11,668,098
2,575,405 2,533,394 2,885,175 3,625,696 2,610,591 2,479,533
4,914,256 4,756,676 4,203,824 4,242,725 5,635,347 5,716,091
4,637,531 4,579,338 4,712,832 4,801,342 5,209,954 5,336,659
4,332 4,539 4,591 -
753,904 1,061,419 472,438 1,152,063 1,038,851 1,204,771
52,075,806 52,091,924 53,650,459 56,078,072 58,287,017 65,987,138
9,293,434 9,343,368 10,092,903 10,149,557 10,421,064 12,752,125
2,050,172 1,935,014 1,986,747 1,701,131 1,707,993 1,945,789
2,299,394 2,476,170 2,588,098 2,699,767 2,563,132 3,310,716
13,643,000 13,754,552 14,667,748 14,550,455 14,692,189 18,008,631
65,718,806 65,846,476 68,318,207 70,628,527 72,979,205 83,995,769
1,136,642 1,080,801 2,462,671 1,332,418 1,495,438 3,858,862
572,094 819,043 809,806 684,744 871,919 970,594
- 6,200 7,572 4,939 27,407 196,506
103,311 571,110 345,373 1,004,911 287,956 8,425
647,354 811,679 1,001,117 481,404 744,014 726,869
1,001,511 1,787,274 1,722,285 2,323,528 2,786,178 2,793,185
3,386,269 2,139,029 2,250,601 4,411,618 3,289,818 2,563,002
14,784,074 23,992,563 18,495,127 1,581,882 16,947,529 8,053,435
21,631,255 31,207,699 27,094,552 11,825,444 26,450,258 19,170,879
10,124,653 9,665,095 11,711,242 11,758,658 13,146,131 14,308,945
1,424, 595 1,425, 327 1,304,016 1,448,729 1,404,264 1,406,440
2,641,313 3,029,630 3,355,956 3,827,010 3,913,184 4,168,313
515,633 7,390,545 1,993,537 135,603 338,943 1,548,280
14,706,194 21,510,597 18,364,751 17,170,000 18,802,521 21,431,978
36,337,449 52,718,296 45,459,303 28,995,444 45,252,779 40,602,857
(30,444,551) (20,884,225) (26,555,907) (44,252,628) (31,836,759) (46,816,260)
1,063,194 7,756,045 3,697,003 2,619,546 4,110,332 3,423,348
(29,381,357) (13,128,180) (22,858,904) (41,633,082) (27,726,426) (43,392,912)
11,901,072 13,363,096 13,443,137 14,131,605 14,510,241 14,870,621
14,588,297 14,669,328 15,796,054 15,441,683 16,316,398 17,105,322
748,772 533,811 317,531 232,208 204,457
489,806 458,092 555,682 522,033 526,832 596,781
7,390,860 5,600,683 7,534,260 5,535,966 3,879,992 3,855,544
- - - 1,686,859 1,851,013
3,196,178 4,205,574 667,679 2,497,606 2,570,111 2,555,999
367,198 507,798 2,170,293 2,860,948 2,745,475 3,512,894
2,233,445 1,951,936 2,085,740 1,895,647 1,861,511 1,735,637
246,287 108,929 275,477 116,694 102,486 444,282
980,267 - - -
- - 101,688 304,704 179,394
1,601,200 1,399,310 525,864 1,056,843 1,060,650 (600,000)
43,743,382 42,798,557 43,371,717 44,392,921 45,769,716 46,107,488
327,999 329,527 -
106,032 85,942 61,119 -
(264,093) -
97,541 200,871
(1,601,200) (1,399,310) (525,864) (1,056,843) (1,060,650) 600,000
(1,431,262) (886,300) (263,874) (1,056,843) (1,060,650) 600,000
42,312,120 41,912,257 43,107,843 43,336,078 44,709,066 46,707,488
12,930,763 28,784,077 20,248,939 1,702,996 16,982,640 3,314,576
(1,995,000)
12,930,763 28,784,077 20,248,939 1,702,996 16,982,640 1,319,576
$ 13,298,831 $ 21,914,332 $ 16,815,810 $ 140,293 $ 13,932,957 $ (2,703,772)
(368,068) 6,869,745 3,433,129 1,562,703 3,049,682 4,023,348
$ 12,930,763 $ 28,784,077 $ 20,248,939 $ 1,702,996 $ 16,982,640 $ 1,319,576
146
CITY OF TUKWILA, WASHINGTON
SCHEDULE 3
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Page 1 of 2
2005 2006 2007 2008 2009
General Fund (GASB 54)
Nonspendable $ - $ - $ $ - $ -
Restricted - - -
Cormiitted - - -
Assigned - - - - -
Unassigned - - -
General Fund (Prior to GASB 54)
Reserved 557,690 13,250 12,650 17,800 17,900
Unreserved 8,408,104 8,693,215 10,504,748 7,687,515 7,371,530
Total general fund $ 8,965,794 $ 8,706,465 $ 10,517,398 $ 7,705,315 $ 7,389,430
All other governmental funds (GASB 54)
Nonspendable $ - $ - $ $ - $
Restricted - -
Committed - - - -
Assigned - - -
Unassigned - - -
All other governmental funds (Prior to GASB 54)
Reserved
Unreserved, reported in:
Special revenue funds
Debt service funds
Capital Projects funds
Total all other governmental funds
Source:
Tukw ila Finance Department
$ 705,560
5,669,921
1,305,239
5,677,953
$ 13,358,673
8,500,342
1,075,347
7,245,827
$ 16,821,516
1 0,834,781
1,233,234
8,113,739
$ 20,181,754
12,943,487
1,248,901
6,831,634
$ 21,024,022
9,123,401
135,438
7,101, 258
$ 16,360,097
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
Fund Balances
e
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
■All Other
Governmental
General Fund
147
Page 2 of 2
2010 2011 2012 2013 2014
$ - $ 5,000 $ - $ 1,743,362 $ 1,544,022
- 18,000 - - -
- - 225,000 5,771,471
8,237,141 8,378,557 15, 317, 624 10,181, 057
17,900 - - - -
5,739,140 - - - -
$ 5,757,040 $ 8,260,141 $ 8,378,557 $ 17,285,986 $ 17,496,550
$ - $ - $ - $ - $ 7,370,000
5,014,817 2,749,681 3,480,001 3,973,726
- 402,306 - - -
- 11,127,221 7,021,183 4,510,623 4,076,803
- - - (1,566,175) (1,360,218)
14,461,546 - - - -
3,051 - - - -
8,541,195 - - - -
$ 23,005,792 $ 16,544,344 $ 9,770,864 $ 6,424,449 $ 14,060,311
148
CITY OF TUKWILA, WASHINGTON
SCHEDULE 4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (a)
LAST TEN FISCAL YEARS
Revenues
Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Investment Income
Special Assessments
Miscellaneous
Total Revenues
Expenditures
General Government
Judicial
Public Safety
Physical Environment
Transportation
Economic Environment
Health and human services
Culture and Recreation
Debt Service
Frincipal
Interest
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers In - Assessment
Transfers Out
Capital Leases
page 1 of 2
2005
2006
2007
2008
$ 34,624,875 $
1,002,683
5,672,810
2,649,678
116,737
638,196
1,000,775
45,705,754
37,801,814
1,273,228
7,083,032
2,345,931
221,097
1,159,971
1,397,585
51,282,658
$ 39,660,792
1,827,709
6,403,217
2,024,892
266,188
1,425,423
1,751,145
53,359,366
$ 37,412,569
2,022,851
5,697,598
2,569,381
259,991
926,913
816,054
49,705,357
6,136,540
19,604,151
788,105
1,705,692
3,384,928
3,358,583
851,000
1,033,474
7,344,326
44,206,799
1,498,955
150,000
(1,305,000)
6,882,594
20,953,226
2,139,959
2,447,096
3,539,657
3,683
3,687,580
888,000
1,006,161
6,540,452
48,088,408
7,034,602
21,038,810
2,196,422
2,413,390
3,878,658
4,204
3,938,779
930,000
914,584
7,243,879
49,593,328
7,992,286
22,878,689
2,255,880
2,783,077
4,995,514
4,173
4,293,658
972,000
872,224
6,089,703
53,137,204
Sale of Capital Assets 35,600
General Obligation Bonds Issued -
General Obligation Refunding Bonds Issued
LID Bonds Assessment
Operating Loan -Tukw ila MPD
Premium on General Obligation Debt
Premium on General Obligation Refunding Debt
Issuance Costs on General Obligation Refunding Debt
Payment to Refunded Bond Escrow Agent
Total Other Financing Sources (Uses) (1,119,400)
Change in fund balance before special item 379,555
Special item
Net Change in Fund Balances $ 379,555
Ratio of Debt Service Expenditures 5.4%
To Total Non - Capital Expenditures
3,194,250
2,143,581
(2,430,769)
296,451
4,036,039
2,266,349
(1,131,666)
100
(a) All amounts are reported on the modified - accrual basis
Source:
Tukw ila Finance Department
149
9,263
3,203,513
1,134,783
5,170,822
(3,431,846)
2,515,982
(1,107,543)
53,592
6,180,000
483,599
(108,326)
(6,555,273)
1,462,031
(1,969,815)
$ 3,203,513 $ 5,170,822
$ (1,969,815)
4.1%
4.8% 4.6%
page 2 of 2
2009 2010 2011 2012 2013 2014
$ 37,167,281 $ 37,267,918 $ 38,035,681 $ 41,502,608 $ 42,402,070 $ 44,441,783
1,283,463 1,618,830 3,473,910 1,604,594 2,013,875 2,114,638
17,596,486 14,525,872 24,059,907 7,626,487 7,190,325 14,298,126
1,443,680 2,366,174 2,359,600 3,974,356 3,747,646 3,838,531
301,761 390,079 308,027 220,752 242,638 264,934
282,604 144,258 275,479 106,286 151,911 479,219
- - - 2,788,350 701,723
701,957 891,307 356,409 131,979 427,368 354,395
58,777,232 57,204,438 68,869,013 55,167,062 58,964,183 66,493,348
8,574,563 8,387,317 8,253,440 8,504,511 9,303,742 7,505,173
25,576,932 24,676,370 24,327,498 24,918,306 25,720,884 27,254,312
2,058,913 1,724,147 2,060,482 3,022,516 1,935,895 1,807,993
2,334,298 2,332,178 2,676,511 2,769,182 3,111,493 5,820,601
4,601,391 4,541,845 4,682,646 4,767,944 5,224,964 5,226,832
4,332 4,539 4,591 - - -
4,365,023 4,163,503 3,507,150 3,373,000 4,386,392 4,680,651
1,316,297 1,555,028 1,766,774 1,991,540 5,024,991 2,288,988
778,018 849,148 881,850 1,178,464 1,162,649 961,457
16,860,362 11,513,976 25,643,704 12,099,293 5,854,962 10,150,912
66,470,129 59,748,051 73,804,646 62,624,756 61,725,970 65,696,921
(7,692,894) (2,543,613) (4,935,633) (7,457,694) (2,761,786) 796,428
3,865,744 2,461,806 11,001,619 7,625,792 20,918,983 7,300,080
2,788,350 -
(2,234,444) (1,020,857) (10,061,205) (6,174,358) (23,301,516) (7,900,080)
- 110,509 15,468 - - -
1,014,608 27,308 21,406 9,903 5,493 -
6,935,000 5,055,688 - 1,000,000 3,850,000
6,947,574 - -
- - 6,687,500 -
(658,706)
(6,880,397) (1,069,000) (5,055,688) - -
2,713,085 7,556,917 977,288 802,631 8,098,809 3,250,000
(4,979,809) 5,013,304 (3,958,345) (6,655,063) 5,337,023 4,046,428
(1,995,000)
$ (4,979,809) $ 5,013,304 $ (3,958,345) $ (6,655,064) $ 5,337,023 $ 4,046,428
4.4% 5.2% 5.8% 6.7% 12.5% 6.2%
CITY OF TUKWILA, WASHINGTON
SCHEDULE 5
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Fiscal Year
Property Sales & Use Utilityw Excise Business Other(b) Total Taxes
2005 10,627,410 16,887,845 2,646,356 3,222,936 408,798 831,530 34,624,875
2006 11,018,846 17,591,260 2,930,332 4,938,515 402,784 920,077 37,801,814
2007 11,177,532 19,355,867 3,666,079 4,124,168 405,973 931,173 39,660,792
2008 11,245,973 17,709,319 3,934,210 3,003,438 475,500 1,089,344 37,457,785
2009 12,190,219 14,585,015 6,172,569 2,824,407 738,341 656,730 37,167,281
2010 13,188,942 14,251,312 6,134,494 2,488,357 727,151 301,867 37,092,122
2011 13,427,139 16,113,584 5,424,643 1,780,294 667,064 622,955 38,035,681
2012 14,072,015 15,441,683 4,001,385 3,201,098 2,497,606 2,288,822 41,502,608
2013 14,510,241 16,316,398 3,879,992 2,745,475 2,570,111 2,418,148 42,440,365
2014 14,870,621 17,105,322 3,855,544 3,512,894 2,555,999 2,447,794 44,348,175
Change 2005 -2014 39.9% 1.3% 45.7% 9.0% 525.2% 194.4%
Notes:
(a) Utility taxes enacted beginning in 2003 for electric, natural gas, cable and telephone utilities are assessed at rates of 6.0 %.
A utility tax was added in 2009 for solid waste and recycling assessed at a 6.0% rate.
A utility tax rate of 10.0% was added in 2010 on the City's water, sewer, and stormwater utilities.
(b) "Other Taxes" include a hotel /motel tax, natural gas use tax and interfund utility taxes.
Source:
Tukw ila Finance Department
28.1%
$50, 000,000
$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
$-
Tax Revenue by Source
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
❑ Other
• Business Tax
• Excise Tax
❑ Utility Tax
• Sales & Use Tax
• Property Tax
151
SCHEDULE6
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected Within the Fiscal
Year of the Levy Total Collections to Date
Collections in
Fiscal Taxes Levied for Subsequent
Year Fiscal Year Amount % of Levy Years Amount % of Levy Levy Balance
2005 10,731,724 10,593,753 98.71% 137,447 10,731,200 100.00% 524
2006 10,973,030 10,844,728 98.83% 127,384 10,972,112 99.99% 918
2007 11,176,155 10,994,127 98.37% 181,457 11,175,584 99.99% 2,699
2008 11,414,256 11,194,247 98.07% 215,455 11,409,701 99.96% 1,646
2009 12,283,169 12,017,213 97.83% 262,003 12,279,216 99.97% 4,106
2010 13,233,882 13,152,012 99.38% 76,918 13,228,930 99.96% 7,942
2011 13,383,657 13,225,338 98.82% 150,336 13,375,674 99.94% 36,339
2012 13,698,229 13,521,621 98.71% 148,889 13,670,510 99.80% 74,964
2013 13,744,054 13,549,525 98.58% 127,308 13,676,833 99.51% 67,221
2014 14,058,979 13,916,718 98.99% 13,916,718 98.99% 142,262
Source:
King County Office of Finance
152
CITY OF TUKWILA, WASHINGTON
SCHEDULE 7
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Fiscal Year
Real Property Personal Property Public Utilities
Total Assessed Total Direct
Value Tax Rate
2005 3,091,233,279 457,546,448 61,779,040 3,610,558,767 3.03706
2006 3,399,709,737 482,100,071 66,123,704 3,947,933,512 2.84033
2007 3,853,680,774 509,151,926 87,410,974 4,450,243,674 2.56911
2008 4,470,042,539 595,268,205 110,399,231 5,175,709,975 2.37324
2009 4,122,961,628 746,710,751 112,779,972 4,982,452,351 2.66345
2010 3,950,829,851 717,795,417 119,827,058 4,788,452,326 2.82566
2011 3,833,295,985 712,607,656 129,726,102 4,675,629,743 2.95408
2012 3,778,571,709 736,480,616 134,138,983 4,649,191,308 2.98778
2013 3,824,448,044 779,103,146 152,822,498 4,756,373,688 2.97799
2014 4,146,952,417 744,616,273 162,510,057 5,054,078,747 2.84188
Note:
*Real, personal, and state public service property have been assessed at 100% of the estimated value.
Source:
King County Department of Assessments
$6,000,000,000
$5,000,000,000
$4,000,000,000
$3,000,000,000
$2,000,000,000
$1,000,000,000
$-
Assessed Value By Type
I I I I I I I I I
I I I I I I I I I
1 1 1 1 1 1 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Public Utilities
• Personal
Property
• Real Property
153
CITY OF TUKWILA, WASHINGTON
SCHEDULE 8
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1,000 OF ASSESSED VALUATION)
LAST TEN FISCAL YEARS
CITY OF TUKWILA
Emergency Tukw ila Tukw ila Pool
General Special King Port of Medical School Dist Flood Metropolitan Hospital
Fiscal Year Levy Levy Total WA State County(a) Seattle Service #406 Control Park District District #1 Total
2005 3.03706 3.03706 2.49787 1.86293 0.23330 0.21982 5.01637 0.04482 - 0.59000 13.50217
2006 2.84033 2.84033 2.32535 1.75139 0.23158 0.20621 4.78874 0.04212 - 0.55652 12.74224
2007 2.56911 2.56911 2.13233 1.66106 0.22359 0.30000 4.73164 0.10000 0.50854 12.22627
2008 2.37324 2.37324 1.96268 1.51508 0.19700 0.27404 4.12360 0.09123 0.47141 11.00828
2009 2.66345 2.66345 2.22253 1.74587 0.21597 0.30000 3.89183 0.10514 0.53290 11.67769
2010 2.82566 2.82566 2.27990 1.90797 0.22366 0.30000 5.03380 0.10976 0.55753 13.23828
2011 2.95408 2.95408 2.42266 1.98580 0.22982 0.30000 5.44659 0.11616 0.50372 13.95883
2012 2.98778 2.98778 2.56720 2.11172 0.23324 0.30000 5.69832 0.13210 0.15000 0.50000 14.68036
2013 2.97799 2.97799 2.47044 2.08129 0.21533 0.33500 5.89098 0.15369 0.14944 0.50000 14.77416
2014 2.84188 2.84188 2.28514 1.84798 0.18885 0.30217 5.50160 0.13860 0.14962 0.50000 13.75584
Note:
(a ) Includes King County Library District tax and Ferry
Source:
King County Department of Assessments
3.50000
3.00000 -
2.50000 -
2.00000
1.50000
1.00000
0.50000
Direct Property Tax Rates
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
154
CITY OF TUKWILA, WASHINGTON
SCHEDULE 9
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Type of Business
2014 Assessed
Valuation
Percent of
2014 Total
Assessed
Value )
2005 Assessed
Valuation
Percent of
2005 Total
Assessed
Valuelbi
Boeing Company
WEA Southcenter LLC
La Ranta LP /Segale Properties
KIR Tukw ila 050 LLGKIMCO
Owest Corporation (US West Communications)
E Property Tax Dept
Anne Arundel Apartments LLC (Group Health)
Boeing Employees Credit Union
CWWA Tukwila 1 LLC
Wig Properties LLC (JC Penney)
3301 South Norfolk LLC (Sea -Tuk Warehouse LLC)
COSTCO Wholesale
Puget Sound Energy /Gas - Electric
Jorgensen Forge Corporation
Southcenter Corporate Square
BRCP Riverview Flaza LLC
Koar - Seatac Partners LP (Embassy Suites)
Federated Department Stores (Macys)
Merrill Creek Holding LLC (Kenw orth Motors)
CHA Southcenter LLC (Doubletree Inn)
Walton CWWA Eproperty Tax Incorporated (McElroy)
Harnish Group Incorporated
Home Depot
Sterling Realty Organization
Low e's HM/ Incorporated
Hill Investment Company
Cigna Life Insurance Company
AMB Institutional Alliance
Group Health Cooperative
Heitman
Airplane company
Department Stores
Commercial Properties
Commercial Properties
Telephone Utility
Commercial Properties
Apartments
Credit Union
Investment Property
Department Stores
Food Distribution
Cash & Carry Warehouse
Electric /Gas Utility
Steel Manufacturer
Hair Loss Center
Commercial Properties
Lodging
Department Stores
Truck Manufacturer
Lodging
Investment Property
Truck Equipment
Home Improvement
Commercial Properties
Home Improvement
Commercial Properties
Insurance Company
Commercial Properties
Healthcare Adrr®in
Commercial Properties
$ 563,211,498
291,267,487
186,552,266
85,051,300
80,999,544
66,917,200
52,802,552
50,651,154
42,974,000
37,147,522
36,584,800
34,838,243
34,302,568
32,079,978
25,160,600
24,869,600
24,372,008
21,269,000
21,171,200
20,332,730
18,605,400
18,262,855
16,492,811
14,521,400
13,018,811
7,855,700
11.14%
5.76%
3.69%
1.68%
1.60%
1.32%
1.04%
1.00%
0.85%
0.74%
0.72%
0.69%
0.68%
0.63%
0.50%
0.49%
0.48%
0.42%
0.42%
0.40%
0.37%
0.36%
0.33%
0.29%
0.26%
0.16%
$ 406,629,442
127,027,984
68,037,854
35,894,700
10,867,469
50,578,300
55,835,408
15,160,200
21,378,700
21,718,812
14,436,596
16,728,035
24,784,700
15,018,800
17,030,718
10,286,052
11,717,000
14,330,067
6,318,400
14,932,400
72,288,400
47,327,334
47,209,629
11.26%
3.52%
1.88%
0.99%
0.30%
1.40%
1.55%
0.42%
0.59%
0.60%
0.40%
0.46%
0.69%
0.47%
0.28%
0.32%
0.40%
0.17%
0.41%
2.00%
1.31%
1.31%
$ 1,821,312,227 36.04% $ 1,125,537,000 30.76%
Notes:
(a) In 2014 the total assessed property value in the City of Tukwila was $5,054,078,747.
rol In 2005 the total assessed property value in the City of Tukwila was $3,610,558,767.
Source:
King County Department of Assessments
155
CITY OF TUKWILA, WASHINGTON
SCHEDULE 10
RETAIL SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
page 1 of 2
Major Industry Sector 2005(a) 2006 2007
Construction and Contracting $ 676,427 $ 1,166,088 $ 2,018,058
Finance, Insurance & Real Estate 102,130 93,747 121,879
Manufacturing 503,778 450,138 590,455
Transportation, Communications & Utilities 384,703 436,260 483,419
Wholesale - Durable /Non - durable Goods 2,337,018 2,048,517 2,457,437
Retail Trade - General Merchandise 2,563,103 2,667,481 2,571,601
Retail Trade - Furniture /Home Furnishings 2,342,553 2,531,049 2,399,347
Retail Trade - Miscellaneous 1,497,474 1,642,722 1,766,853
Retail Trade - Clothing & Accessories 1,636,183 1,704,213 1,838,646
Retail Trade - Restaurants 1,072,275 1,119,859 1,158,424
Retail Trade - Automotive /Gas 980,006 1,053,184 1,026,778
Retail Trade - Building Materials 815,379 855,243 777,870
Service Industries - Business 979,752 1,141,632 1,198,690
Service Industries - Hotels 406,547 453,376 531,836
Service Industries - Other 278,041 278,777 294,869
All Other Categories 188,540 205,644 179,421
Total Retail Sales Tax Collections $ 16,763,909 $ 17,847,930 $ 19,415,583
Notes:
(a) Effective March 2005, the Department of Revenue changed reporting retail sales industries
from using the Standard Industrial Classification (SIC) code to use of the North American
Industry Classification System (NAICS). Retail sales tax collections prior to the time
of this change have not been adjusted.
By State law, the City of Tukwila is prohibited from reporting individual sales tax payers.
Sources:
Tukw ila Finance Department and Washington State Department of Revenue.
157
page 2 of 2
2008
2009
2010
2011
2012
2013 2014
$ 1,967,785
118,780
375,263
492,960
1,760,449
2,231,745
1,830,576
1,718,898
2,103,630
1,312,603
1,066,183
619,657
1,129,380
548,962
318,696
185,312
$ 869,640
119,121
246,429
440,206
1,436,045
2,072,356
1,304,234
1,473,496
2,017,904
1,292,252
748,482
589,341
868,260
453,657
283,319
208,467
$ 917,250
99,975
387,234
441,822
1,346,750
2,068,263
1,380,407
1,521,741
2,018,304
1,342,964
664,310
499,383
882,012
428,450
215,045
366,925
$ 1,390,952
115,123
232,737
405,197
1,119,527
2,003,947
1,771,083
1,626,452
2,037,554
1,337,067
670,806
487,620
932,422
459,606
202,217
553,493
$ 961,125
143,792
390,252
432,608
1,077,613
2,000,865
1,537,143
1,703,741
2,082,930
1,472, 343
690,076
516,861
928,610
487,977
234,870
381,693
$ 1,212,594
174,705
386,964
475,688
1,108, 771
2,154, 523
1,405,274
1,870,200
2,070,198
1,529,101
690,691
565,734
968,996
502,721
246,802
525,133
$ 829,073
141,010
322,189
549,126
1,592,613
2,137,256
1,431,965
1,973,478
2,013,796
1,611,860
765,765
600,610
1,073,511
562,130
274,497
468,547
$ 17,780,879 $ 14,423,209 $
14,580,835 $
15,345,801 $ 15,042,499 $ 15,888,089 $ 16,347,426
158
CITY OF TUKWILA, WASHINGTON
SCHEDULE 11
SALES TAX RATE DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
2005 2006 2007(e) 2008 (d) 2009 (e) 2010 2011 2012 2013 2014
BASIC SALES TAX RATES
City of Tukwila 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84%
Washington State 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50%
King County 0.15% 0.15% 0.15% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Regional Transit Authority 0.40% 0.40% 0.40% 0.40% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90%
Metro 0.80% 0.80% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90%
Criminal Justice 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
Department of Revenue 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
Administration Fee
Total Basic Combined Sales Tax Rate 8.80% 8.80% 8.90% 9.00% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50%
SPECIAL SALES TAX RATES
Restaurants (a) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% -
Motor Vehicles (b) 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%
Notes:
(a) King County Food & Beverage tax is in addition to the combined sales tax rate for restaurants, taverns and bars.
The funds are used to finance the professional baseball stadium in Seattle.
* NOTE: This tax expired on October 1, 2011 as taxes imposed to pay the construction bonds for the Seattle baseball stadium expired.
(b) Effective July 1, 2003, all retail sales, leases and transfers of motor vehicles are subject to the additional sales tax of three - tenths of one percent
(.003). The funds are used to finance transportation improvements.
(°) Effective April 1, 2007, King County increased the local sales & use fax rate one -tenth of one percent (.001).
The tax will be used for transportation purposes.
(tl) Effective April 1, 2008, King County increased the local sales & use fax rate one -tenth of one percent (.001).
The tax will be used for chemical dependency or mental health treatment services.
(a) Effective April 1, 2009, the Regional Transit Authority Tax increased five - tenths of one percent (.005).
The tax will be used to expand and coordinate light -rail, commuter -rail, and express bus service, and
improve access to transit facilities in King, Pierce, and Snohomish Counties.
Source:
Washington State Department of Revenue Local Sales and Use Tax Rates.
159
160
$ 32,911,193 $ 39,112,848 $ 36,943,090 $35,049,696 $ 39,072,197
CITY OF TUKWILA, WASHINGTON
SCHEDULE 12
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Page 1 of 2
2005
2006 2007
2008
2009
GOVERNMENTAL ACTIVITIES
General Obligation Bonds (°)
Special Assessment (e)
Leases
Total Governmental Activities
$ 19,775,262 $ 18,881,798 $ 17,946,335 $17,261,348 $ 22,453,003
19,775,262 1 8,881,798
BUSINESS -TYPE ACTIVITIES
General Obligation Bonds 4,972,500
Revenue Bonds 3,143,360
Public Works Trust Fund Loans 4,911,253
Leases 108,818
Total Business -Type Activities 13,135,931
TOTAL PRIMARY GOVERNMENT(e)
4,547,500
5,824,452
9,781 ,151
77,947
20,231 ,050
17,946,335
4,102,500
5,470,162
9,378,506
45,587
18, 996, 755
17,261,348
3,642,500
5,1 12,231
9,021,951
11,666
17, 788, 348
22,453,003
3,423,797
4,790,000
8,405, 397
16,619,194
Population (b)
Per Capita Personal Income (b)
Percentage of Personal Income
Debt Per Capita
Notes:
Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements section.
(b) Reference SCHEDULE 19, Demographic Statistics, for population and personal income data.
"`" Data not available at time of publication.
(Q) Includes amounts Due to Other Governments.
(d) Prior year estimated population used due to unavailability of current year estimate.
(e) Special assessment debt was issued in 2013 for the Klickitat Urban Access Project.
Sources:
U.S. Census Bureau, City of Tukw ila Finance Department.
17,110
$ 48,789 $
3.97%
$ 1,935 $
17,930
52,655
4.16%
2,193
18,000
$ 57,409
3.58%
$ 2,052
18,080 18,170
$ 58,141 $ 56,904
3.33% 3.78%
$ 1,939 $ 2,150
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
Total Debt
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
161
$ 42,226,827 $ 39,202,326 $ 35,913,942 $ 37,553,180 $ 38,861,742
Page 2 of 2
2010 2011 2012 2013 2014
$ 26,763,975 $ 28,006,800 $ 25,752,600 $ 21,727,609 $ 23,851,376
- - 6,687,500 6,687,500
40,184 35,891 - - -
26,804,159 28,042,691 25,752,600 28,415,109 30,538,876
3,238,825
4,395,000
7,788,843
3,980,000
7,179,635
3,540,000
6,621,342
3,075,000
6,063,071
2,580,000
5,742,866
15,422,668 11,159,635 10,161,342 9,138,071 8,322,866
19,107 19,486 19,611 19,765
$ 44,271 $ 43,887 $ 43,333 $ 43,331
4.99% 4.58% 4.23% 4.38%
$ 2,210 $ 2,012 $ 1,831 $ 1,900 $
19,765 (d)
162
1,938
CITY OF TUKWILA, WASHINGTON
SCHEDULE 13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Net
Debt Payable Ratio of Net Bonded
Special Less Debt from Bonded Debt Debt
Fiscal Gross Bonded Assessment Service Enterprise Net Bonded to Assessed per
Year Population Assessed Value Debt Debt (a) Funds (b) Revenues Debt Value Capita
2005 17,110 3,610,558,767 24,713,000 1,305,239 4,972,500 18,435,261 0.51% 1,077
2006 17,930 3,947,933,512 25,648,290 - 1,075,347 4,547,500 20,025,443 0.51% 1,117
2007 18,000 4,450,243,674 24,421,474 - 1,233,234 4,102,500 19,085,740 0.43% 1,060
2008 18,080 5,175,709,975 23,125,007 - 1,250,275 3,642,500 18,232,231 0.35% 1,008
2009 18,170 4,973,984,133 25,876,800 - 135,438 3,423,797 22,317,565 0.45% 1,228
2010 19,107 4,809,486,786 29,950,150 3,050 3,238,825 26,708,275 0.56% 1,398
2011 19,107 4,752,606,030 28,006,800 - 3,330,312 24,676,488 0.52% 1,291
2012 19,486 4,649,191,308 25,752,600 - 3,012,381 22,740,219 0.49% 1,167
2013 19,611 4,756,373,688 21,727,609 6,687,500 696,346 27,718,763 0.58% 1,413
2014 19,765 5,054,078,747 23,851,376 6,687,500 673,804 29,865,072 0.59% 1,511
Note:
(a) Special assessment debt was issued in 2013 for the Klickitat Urban Access Project.
(b) Includes both restricted and assigned fund balance available for debr service payment.
(c) These amounts are the general obligation bonds that are being repaid by the Foster Golf Course Fund.
Sources:
State of Washington Office of Financial Management
King County Department of Assessments
Tukw ila Finance Department
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
Net Bonded Debt
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
163
CITY OF TUKWILA, WASHINGTON
SCHEDULE 14
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
AS OF DECEMBER 31, 2014
Jurisdiction
Net General Percentage Estimated
Obligation Debt Applicable to Applicable to
Outstanding Tukw ila(1) Tukwila
Direct:
City of Tukw ila
Overlapping:
King County
King County Library
Port of Seattle
Tukw ila School District #406
Hospital District #1
Total Overlapping Debt:
Total Direct and Overlapping Debt:
Sources:
King County Office of Finance
King County Office of Assessments
$ 23,851,376
100.00%
796,669,841 1.40%
118,264,183 2.26%
225,420,000 1 .40%
13,238,402 90.87%
5.55%
1,153,592,426
$
1,177,443,802
$ 23,851,376
11,153,378
2,672,771
3,155, 880
12, 029, 735
29,011,764
$ 52,863,140
(1) The percentage of overlapping debt applicable is estimated using taxable county assessed property values.
$30,000,000
525,000,000
$20,000,000 -
$15,000,000 -
$10,000,000
$5,000,000
$- -
Direct and Overlapping Debt
■ City of Tukwila
■ King County
■ King County Library
• Port of Seattle
■ Tukwila School District
• Hospital District
164
Legal debt margin $ 340,243,551
CITY OF TUKWILA, WASHINGTON
SCHEDULE 15
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Page 1 of 2
2005 2006 2007 2008 2009
Debt Limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
Assessed Value as of December 31, 2014
Debt Limit (7.5% of assessed value)
Debt applicable to limit:
General obligation bonds
Other long -term debt
Less: Amount set aside for repayment of
general obligation debt and contracts payable
Total net debt applicable to limit
$ 270,791,907 $ 296,095,014 $ 333,768,277 $ 388,178,248 $ 373,048,810
23,407,761 24,494,996 23,188,240 21,881,765 28,291,920
$ 247,384,146 $ 271,600,018 $ 310,580,037 $ 366,296,483 $ 344,756,890
8.64%
$ 5,054,078,747
379, 055, 906
23,288,621
16,197, 538
39,486,159
(673, 804)
38,812,355
Source:
Tukw ila Finance Department
165
8.27% 6.95%
5.64% 7.58%
Page 2 of 2
2010 2011 2012 2013 2014
$ 360, 711, 509 $ 356,445,452 $ 348, 689, 348 $ 356, 728, 027 $ 379, 055, 906
32,919,123 29,703,995 25,884,632 31,056,730 38,812,355
$ 327, 792, 386 $ 326, 741,457 $ 322, 804, 716 $ 325, 671, 297 $ 340, 243, 551
9.13%
8.33% 7.42%
8.71% 10.24%
CITY OF TUKWILA, WASHINGTON
SCHEDULE 16
REVENUE BOND COVERAGE - WATER BONDS
LAST THREE FISCAL YEARS
Net Revenue
Fiscal Gross Operating Available for Debt Average Annual Debt Service Requirements Times
Year Revenue) Expenses(b) Service Principal Interest Total Coverage)
2012 5,250,929 3,985,190 1,265,739 136,573 30,240 166,813 7.59
2013 5,763,713 4,363,133 1,400,580 121,771 24,534 146,305 9.57
2014 6,002,016 5,064,262 937,754 103,054 19,685 122,739 7.64
Notes:
(a) Includes operating and non - operating revenue. Excludes capital contributions.
(b) Includes operating expenses and non - operating expenses exclusive of depreciation, amortization and interest charges.
(°) Bond financing requirements are that the average annual coverage is at least 1.25 times the average annual debt service
for Water and Sewer revenue bonds.
Sources:
Tukw ila Finance Department
167
CITY OF TUKWILA, WASHINGTON
SCHEDULE 17
REVENUE BOND COVERAGE - SEWER BONDS
LAST THREE FISCAL YEARS
Net Revenue
Fiscal Gross Operating Available for Debt Average Annual Debt Service Requirements Times
Year Revenue(') Expenses(b) Service Principal Interest Total Coverage(`)
2012 6,505,121 5,076,916 1,428,205 107,880 42,094 149,974 9.52
2013 7,387,048 5,032,120 2,354,928 109,829 40,054 149,883 15.71
2014 8,311,364 6,583,114 1,728,250 111,838 37,949 149,787 11.54
Notes:
(a) Includes operating and non - operating revenue. Excludes capital contributions.
(b) Includes operating expenses and non - operating expenses exclusive of depreciation, amortization and interest charges.
(°) Bond financing requirements are that the average annual coverage is at least 1.25 times the average annual debt service
for Water and Sewer revenue bonds.
Sources:
Tukw ila Finance Department
168
CITY OF TUKWILA, WASHINGTON
SCHEDULE 18
REVENUE BOND COVERAGE - SURFACE WATER BONDS
LAST NINE FISCAL YEARS
Net Revenue
Fiscal Gross Operating Available for Debt Average Annual Debt Service Requirements Times
Year Revenue(') Expenses(b) Service Principal Interest Total Coverage(`)
2006 $2,434,657 $ 1,185,799 $ 1,248,858 $ 18,171 $ 9,501 $ 27,672 45.13
2007 2,393,067 1,335,256 1,057,811 19,080 9,976 29,056 36.41
2008 2,765,320 1,133,871 1,631,449 19,453 9,614 29,067 56.13
2009 2,672,554 1,670,565 1,001,989 19,800 9,263 29,063 34.48
2010 3,141,153 1,833,245 1,307,908 20,153 8,902 29,055 45.01
2011 3,493,373 1,813,223 1,680,150 20,513 8,530 29,043 57.85
2012 3,761,197 1,906,766 1,854,431 20,880 8,147 29,027 63.89
2013 3,886,734 1,774,380 2,112,354 21,257 7,752 29,009 72.82
2014 4,248,174 2,463,255 1,784,919 21,646 7,345 28,991 61.57
Notes:
(a) Includes operating and non - operating revenue. Excludes capital contributions.
(b) Includes operating expenses and non - operating expenses exclusive of depreciation, amortization and interest charges.
(°) Bond financing requirements are that the average annual coverage is at least 1.25 times the average annual debt service
for Surface Water revenue bonds.
No revenue bond coverage for surface water bonds prior to 2006.
Source:
Tukw ila Finance Department
Coverage
Rati o
100.00
80.00
60.00
40.00
20.00
Surface Water Revenue Bonds
2006 2007 2008 2009 2010 2011 2012 2013 2014
169
CITY OF TUKWILA, WASHINGTON
SCHEDULE 19
WATER SYSTEM CUSTOMERS BY CATEGORY
LAST 5 FISCAL YEARS
TYPE
2010 2011 2012 2013 2014
No. % No. % No. % No. % No.
Residential 1,221 58.1 1,227 58.0 1,227 58.0 1,238 58.5 1,246 58.6
Commercial /Industrial 707 33.7 716 33.9 718 33.9 708 33.4 708 33.3
Multi - Family 172 8.2 172 8.1 172 8.1 172 8.1 172 8.1
TOTAL 2,100 100.0 2,115 100.0 2,117 100.0 2,118 100.0 2,126 100.0
Data is not available prior to 2010.
Source:
City of Tukw ila
170
PERCENT OF
TOTAL
REVENUES REVENUES
CITY OF TUKWILA, WASHINGTON
SCHEDULE 20
LARGEST CUSTOMERS OF THE WATER SYSTEM
AS OF DECEMBER 31, 2014
CUSTOMER
INDUSTRY
PERCENT OF
CUBIC FEET TOTAL
(00) CONSUMPTION
Boeing Co
Westfield Shoppingtown
Shasta Beverage
Hilton Hotels
City of Tukwila
Regency Cleaners
CHA Southcenter LLC
Riverside Residences
Canyon Estates
Costco
Total
Total System -wide
Source:
City of Tukwila
Airplane manufacturer
Shopping mall
Food Products
Lodging
Municipality
Cleaners
Lodging
Lodging
Condominiums
Cash & carry warehouse
128,802
43,089
41,346
21,597
16,757
14,817
13,557
11,715
11,653
11,596
314,929
12.81
4.29
4.11
2.15
1.67
1.47
1.35
1.17
1.16
1.15
31.33
1,005,253 100.00
171
% $ 753,059
235,156
199,334
108,624
147,174
71,952
69,946
57,230
76,843
63,190
$ 1,782,508
12.70
3.97
3.36
1.83
2.48
1.21
1.18
0.97
1.30
1.07
30.07
$ 5,927,963 100.00 %
CITY OF TUKWILA, WASHINGTON
SCHEDULE 21
SEWER SYSTEM CUSTOMERS BY CATEGORY
LAST 5 FISCAL YEARS
TYPE
2010 2011 2012 2013 2014
No. % No. % No. % No. % No.
Residential 898 52.9 909 53.0 919 53.2 944 54.2 954 54.5
Commercial /Industrial 641 37.7 645 37.6 647 37.5 637 36.6 637 36.4
Multi - Family 160 9.4 160 9.3 161 9.3 161 9.2 161 9.2
TOTAL 1,699 100.0 1,714 100.0 1,727 100.0 1,742 100.0 1,752 100.0
Data is not available prior to 2010.
Source:
City of Tukw ila
172
CITY OF TUKWILA, WASHINGTON
SCHEDULE 22
LARGEST CUSTOMERS OF THE SEWER SYSTEM
AS OF DECEMBER 31, 2014
CUSTOMER
INDUSTRY
PERCENT OF
CUBIC FEET TOTAL
(00) CONSUMPTION
PERCENT OF
TOTAL
REVENUES REVENUES
Boeing Co
Seattle Rendering Works
Westfield Shoppingtown
Hilton Hotels
Regency Cleaners
City of Tukwila
CHA Southcenter LLC
Canyon Estates
Costco
Terrace Apartments
Airplane manufacturer
Food by- products
Shopping mall
Lodging
Cleaners
Municipality
Lodging
Condominiums
Cash & carry warehouse
Apartments
58,730
46,931
42,294
18,573
14,817
14,076
13,557
11,653
10,847
9,978
8.39
6.70
6.04
2.65
2.12
2.01
1.94
1.66
1.55
1.42
$ 725,805
539,899
514,001
213,689
170,475
78,185
155,978
120,971
125,834
113,675
9.03
6.72
6.40
2.66
2.12
0.97
1.94
1.51
1.57
1.41
Total
241,456
34.48 $ 2,758,512
34.33
Total System -wide
Source:
City of Tukw ila
OA
700,232 100.00 % $ 8,034,451 100.00 %
173
CITY OF TUKWILA, WASHINGTON
SCHEDULE 23
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Per Capita Personal Number of Number of Tukw ila School
Fiscal Personal Income (b) Single- Family Multi - Family District Unemployment
Year Population Income (a) (in thousands) Homes Units Enrollment Rate (`)
2005 17,110 48,789 834,780 3,791 4,107 2,650 6.4%
2006 17,930 52,655 944,104 3,838 4,107 2,698 5.7%
2007 18,000 57,409 1,033,362 3,864 4,107 2,862 5.0%
2008 18,080 58,141 1,051,189 3,884 4,107 2,769 5.9%
2009 18,170 56,904 1,033,946 3,885 4,107 2,795 10.9%
2010 19,107 44,271 845,886 3,892 4,107 2,907 11.7%
2011 19,107 43,887 838,549 3,894 4,094 2,870 7.6%
2012 19,486 43,333 844,387 3,896 4,094 2,902 7.4%
2013 19,611 43,331 849,764 3,915 4,094 2,882 5.2%
2014 19,765 . "* "'. 3,920 4,103 2,978 4.1%
Notes:
(a) Per Capita Personal Income data shown is for King County. Specific data for City of Tukwila is not available.
(b) Personal Income estimates are calculated by multiplying Tukwila population by the Per Capita Personal Income
estimates for Tukwila and are based on a revised methodology that provides for more accuracy. See also Footnote (a).
(c) Unemployment rates are listed and estimated using the census -share method.
" "" Data not available at time of publication.
Sources:
Tukwila Planning Division, Department of Community Development
State of Washington Office of Financial Management
Work Force Development Council of Seattle - King County (Unemployment Data)
Tukw ila School District #406
US Bureau of Economic Analysis
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Unemployment Rate
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
174
CITY OF TUKWILA, WASHINGTON
SCHEDULE 24
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Name of Company/Employer
Product or Business
2014 Full & Percentage of
Part -Time Total City
Employment Employees
2005 Full &
Part -Time
Employment
Percentage of
Total City
Employees
Boeing Company
Group Health Cooperative
King County Metro
Costco Wholesale
Boeing Employees Credit Union
Nordstrom
Macy's
Real Time Staffing Services Inc.
Red Dot Corporation
Triumph Expo & Events Inc
Sub -total - Major Employers
All Other Employment
Airplane company
Data Ctr /Lab /Pharmacy /Mfg.
Transit operating base
Cash /carry Warehouse
Banking /Credit Union
Department Store
Department Store
Employment Agency
Heater /air conditioning equipment
Trade Show Services
7,516
1,880
914
823
576
514
376
338
308
300
13,545
26,673
18.69%
4.67%
2.27%
2.05%
1.43%
1.28%
0.93%
0.84%
0.77%
0.75%
9,638
1,400
559
589
384
398
375
357
13,700
28,180
TOTAL EMPLOYMENT
40,218
41,880
Source:
Tukw ila Finance Department - Business Licenses
175
23.01%
3.34%
1.33%
1.41%
0.92%
0.95%
0.90%
0.00%
0.85%
0.00%
CITY OF TUKWILA, WASHINGTON
SCHEDULE 25
FULL TIME EQUIVALENT EMPLOYEE BY DEPARTMENT
LAST TEN FISCAL YEARS
2005 2006 2007 2008 2009 2010 - 2011 2012 2013 2014
DEPARTM ENT
Administrative Services (a) 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
Mayor (b) 11.00 11.00 12.00 11.00 16.00 17.00 15.75 16.75 17.75 21.00
Human Resources (a) - - - 4.00 4.00 4.00 4.00 4.00 4.00
Finance 12.00 11.00 11.00 12.00 12.00 13.00 11.00 12.00 12.00 12.00
Recreation 22.00 22.50 23.50 23.50 22.50 20.75 16.25 16.25 16.25 16.00
Community Development 20.88 20.88 20.25 24.25 24.25 23.00 22.63 23.38 22.13 21.63
- - 9.75 8.75 8.75 9.00 9.00 9.10
81.00 83.00 80.00 83.00 82.00 80.00 83.00 88.00 87.50 89.00
67.00 65.00 66.00 64.00 63.00 65.00 66.00 67.00 67.00 67.00
- - - 8.00 8.00 8.00 8.00 7.00 6.00
35.00 34.00 32.00 33.00 32.00 30.00 30.00 30.00 31.00 31.00
10.50 10.25 7.50 7.50 7.50 7.50 7.50 7.50 6.00 7.00
11.00 10.00 11.00 12.00 12.00 11.00 12.00 12.00 12.50 11.50
6.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
3.00 3.00 3.00 2.00 2.00 1.00 2.00 2.00 2.00 2.00
9.50 9.25 9.25 9.75 9.75 10.00 9.25 8.25 9.25 8.25
7.00 7.00 7.00 8.00 8.00 7.00 8.00 8.00 8.00 8.00
4.00 5.00 4.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Court (a)
Police (o)
Fire
Information Technology (a)
Public Works
Parks
Street
Water
Sew er
Golf
Surface Water
Equipment Rental
Metropolitan Park District Pool (d)
2.00 2.00 2.00 2.00
329.63 329.63 327.25 328.75 331.75 325.00 325.13 333.13 332.38 334.48
Notes:
Based on filled positions not budgeted positions.
The departments for Human Resources, Court, City Clerk and Information Technology were previously reported under Administrative Services.
(b) The department of City Clerk began reporting to the Mayor's department in 2009.
( °) The department of City Clerk began reporting to the Mayor's department in 2009.
(d) On September 12, 2011, the Board of Commissioners approved the formation of the Tukwila Metropolitan Park District (MPD) Pool.
For the comprehensive annual financial report years of 2011 and 2012, the MPD Pool was treated as a discretely presented component
unit. Effective with the report year 2013, statistical information is now included for the MPD and presented as a blended component unit.
Sources:
Tukw ila Finance Department
176
CITY OF TUKWILA, WASHINGTON
SCHEDULE 26
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
FUNCTION
Police
Number of Calls for Service
32,922 33,686 33,985 35,816 33,095 32,889 30,272 31,916 31,355 29,840
Fire
Number of Responses 4,710 4,921 4,673 4,824 4,654 4,574 4,649 4,844 4,604 5,156
Total Fire Loss $1,414,741 $2,982,265 $3,065,005 $2,300,685 $1,934,596 $1,655,571 $1,601,596 $675,847 $343,495 $2,738,080
Total Inspections 5,482 4,705 4,845 6,787 6,787 i0 1,550 mi 1,360 ibi 4,541 3,389 3,850
Parks and Recreation
Class Participants 64,000 64,000 98,087 109,273 103,603 85,693 64,049 58,260 52,319 45,514
Community Ctr Admissions 33,750 34,850 90,141 117,533 134,183 134,275 115,728 116,136 114,748 132,397
Rounds of Golf Rayed 54,449 55,195 55,446 53,565 53,800 50,445 45,947 47,392 47,757 47,267
Pool Attendance 72,778 72,963 57,624 59,077 80,727 101,128 66,213 69,332 71,233 79,537
Street
Mles 79 79 79 79 79 79 79 79 79 79
Hours Maintaining 15,243 16,970 17,540 19,840 22,140 20,360 20,360 22,920 16,767 8,627
Signalized Intersections 61 61 63 63 59 59 59 62 62 62
Hours Maintaining 9,054 7,642 7,540 7,540 6,700 6,925 6,925 7,000 8,815 3,012
Water Utility Services
Total Customers 2,164 2,117 2,113 2,109 2,112 2,100 2,109 2,117 2,118 2,126
Total Gallons/Water(in
thousands) 886,000 789,981 680,649 660,915 731,469 630,755 625,976 650,659 645,982 668,740
Sanitary Sewer
Total Customers 1,710 1,720 1,718 1,684 1,694 1,699 1,710 1,727 1,742 1,752
Surface Water
Total Customers
Licenses
Business Licenses
Outside Contractors
5,100 5,107 5,156 5,164 5,204 5,207 5,207 5,212 5,226 5,239
2,286 2,354 2,350 2,523 2,422 2,454 2,611 2,030 1,877 2,208
6I 1,066 1,132 1,216
Permits
Building Permits 430 422 425 423 265 290 389 354 374 347
Mechanical Permits 193 239 238 256 159 160 180 191 221 216
Electrical Permits N/A N/A 758 1,533 821 955 1,158 1,175 1,337 1,223
Plumbing Permits N/A 192 306 264 145 163 187 210 167 184
Public Works Pernits 112 144 136 154 131 138 106 126 155 152
Libraries
Number of Libraries 3 3 3 3 3 2 2 2 2 2
Total Circulation 215,115 320,794 306,001 303,665 318,991 327,004 333,451 332,509 313,571 284,667
Notes:
iai Construction of new clubhouse completed and opened in 2003.
0) Due to information system and data program transitioning, this total does not include fire prevention staff inspections at this time as reported in prior years.
r`i During 2012, Outside Contractors began their ow n business licensing category. Prior to this, outside contractors w ere consolidated w ith current year issued licenses.
* Information not available.
** Pool facilities acquired from King County in 2003.
Sources:
Tukwila Departments, King County Library System
177
CITY OF TUKWILA, WASHINGTON
SCHEDULE 27
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
FUNCTION
General Government
Total City Area (Square Miles) 8.6 8.6 8.6 8.6 9.7 9.7 9.7 9.6 9.6 9.6
Public Safety
Police:
Number of Vehicle Units 64 64 64 67 70 76 84 88 81 89
Fire:
Number of Fire Stations 4 4 4 4 4 4 4 4 4 4
Number of Engines /Rescue Trucks /Ladders 8 9 9 9 9 8 7 7 7 9
Number of Medical Aid Vehicles 2 2 2 2 2 2 1 1 1 1
Number of Hazardous Materials Trailer Units 1 1 2 2 2 2 2 2 2 2
Transportation
Paved Streets (lane miles) 163 163 163 163 178 178 178 188.2 188.2 188.2
Sidewalks (miles) 54 54 54 54 56 56 56 64.8 64.8 64.8
Number of Traffic Signals 55 55 57 57 59 59 59 64 63 63
Number of Streetlights Owned by Seattle City Light 1,180 1,180 1,180 1,180 1,180 1,335 1,335 (`) 901 901 902
Number of Streetlights Owned by Puget Sound Energy 670 670 670 670 696 696 623 cc> 187 187 187
Number of Streetlights Owned by City of Tukwila - - - - (c) 1,210 1,216 1224
Culture and Recreation
Parks Acreage (a) 158 161 160 162 162 162 162 175.6 175.6 175.6
Number of Parks 15 16 18 18 18 18 18 19 19 19
Golf Course Acreage 67 67 67 67 67 67 67 77.26 77.26 77.26
Maintained Trails (stiles) 11 11 11 11 15 15 15 15 15 15
Nurrber of Playgrounds 13 13 13 13 11 11 11 11 11 11
Swimming Pool 1 1 1 1 1 1
Visitor Center 1 1 1 1 1 1 1 1 1 1
Community Center /Recreation Facilities 1 1 1 1 1 1 1 1 1 1
Number of Libraries 3 3 3 3 3 2 2 2 2 2
Water
Water Distribution Mains (miles) 45 45 47 47 41 41 41 41 41 49
Maximum Daily Capacity (millions of gallons) 10 10 10 10 10 10 10 10 10 10
Number of Fire Hydrants (Ow ned by City of Tukw ila) 533 537 555 572 541 542 554 576 576 576
Vehicles 7 7 8 8 8 8 8 8 8 9
Sewer
Sanitary Sewers (miles) 33 33 37 37 37 37 37 37 37 37
Maximum Daily Treatment Capacity (millions of gallons) 6.33 6.33 6.33 6.33 6.33 6.33 6.33 6.33 6.33 6.33
Vehicles 3 5 5 6 6 6 6 6 5 4
Surface Water
Storm Drains (miles) (b) 60 62 67 67 69 69 70 70 70 70
Vehicles 5 4 4 4 4 4 4 4 4 8
Notes:
(a) Reflects the correct reporting of data for Culture and Recreation - Parks Acreage for the years 2001 through 2006. Parks
acreage previously reported included golf course acreage.
(b) Reflects the correct reporting of data for Surface Water - Storm Drains (miles) for the years 2001 through 2006. Miles
previously reported were incorrect data estimates.
(`) Reflects changes in 2012 inventory and ownership of street lights due to the routing of more units into the City's meters. Also,
additional street lights were added due to new construction for Southcenter Parkway Extension and Klickitat Projects.
Sources:
Various Departments-Tukw ila
178