HomeMy WebLinkAbout2012 Comprehensive Annual Financial Report (CAFR)1908
City of Tukwila, Washington
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the fiscal year ended December 31, 2012
Community Commons Building, Tukwila Village — View from public plaza
Proposed June 2013 by Tukwila Village Development Associates
The City of Tukwila, Washington
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
For the Year Ended December 31, 2012
Prepared by the City of Tukwila, Finance Department
Peggy McCarthy, Finance Director
JIM HAGGERTON, MAYOR
TUKWILA CITY COUNCIL
Kathy Hougardy, President
Joe Duffle Verna Seal
Dennis Robertson De'Sean Quinn
Allan Ekberg Kate Kruller
CITY OF TUKWILA: 2012 CAFR TABLE OF CONTENTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2012
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 32
Statement of Activities 33
Fund Financial Statements:
Balance Sheet — Governmental Funds 36
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 37
Statement of Revenues, Expenditures, and Changes in
Fund Balance — Governmental Funds 38
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 39
Statement of Net Position — Proprietary Funds 42
Statement of Revenues, Expenses, and Changes in
Net Position — Proprietary Funds 43
Statement of Cash Flows — Proprietary Funds 44
Combining Statement of Fiduciary Net Position — Fiduciary Fund 48
Statement of Changes in Fiduciary Net Position — Fiduciary Fund 49
Notes to the Financial Statements 51
Required Supplemental Information:
Schedules of Revenues, Expenditures, and Changes in
Fund Balances — Budget and Actual:
General Fund 103
Arterial Street Fund 104
Firemen's Pension Trust Fund 105
Retiree Medical and Long -Term Care Benefits for LEOFF I Employees 105
Notes to the Required Supplementary Information 106
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet — Non -Major Governmental Funds 112
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Governmental Funds 113
Combining Balance Sheet — Non -Major Special Revenue Funds 116
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Special Revenue Funds 117
CITY OF TUKWILA: 2012 CAFR TABLE OF CONTENTS
TABLE OF CONTENTS - continued
Page
Combining Balance Sheet — Non -Major Debt Service Funds 120
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Debt Service Funds 122
Combining Balance Sheet — Non -Major Capital Project Funds 126
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Capital Project Funds 127
Combining Statements of Net Position — Internal Service Funds 130
Combining Statement of Revenues, Expenses, and Changes in
Fund Net Position — Internal Service Funds 131
Combining Statement of Cash Flows — Internal Service Funds 132
III. STATISTICAL SECTION
Schedule
Net Position by Component 1 136
Changes in Net Position 2 138
Fund Balances, Governmental Funds 3 140
Changes in Fund Balances of Governmental Funds 4 142
General Government Tax Revenues by Source 5 144
Property Tax Levies and Collections 6 145
Assessed and Estimated Actual Value of Taxable Property 7 146
Property Tax Rates — Direct and Overlapping Governments 8 147
Principal Property Taxpayers 9 148
Retail Sales Tax Collections by Sector 10 150
Sales Tax Rate Direct and Overlapping Governments 11 152
Ratios of Outstanding Debt by Type 12 154
Ratios of General Bonded Debt Outstanding 13 156
Computation of Direct and Overlapping Debt 14 157
Legal Debt Margin Information 15 158
Revenue Bond Coverage — Water Bonds 16 160
Revenue Bond Coverage — Sewer Bonds 17 161
Revenue Bond Coverage — Surface Water Bonds 18 162
Demographic Statistics 19 163
Principal Employers 20 164
Full -Time Equivalent City Government Employees by Function 21 165
Operating Indicators by Function 22 166
Capital Assets by Function 23 167
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COMMUNITY
DEVELOPMENT
Jack Pace
)
CITY OF TUKWILA: 2012 CAFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
ADMINISTRATIVE ORGANIZATIONAL STRUCTURE
AND PRINCIPAL OFFICIALS
CITIZENS OF TUKWILA
COUNCIL
MEMBERS
MAYOR
Jim Haggerton
\
1
CITY
ADMINISTRATOR
David Cline
J
r \
MUNICIPAL
COURT
Kimberly Walden
\ J
CITY ATTORNEY
Kenyon Disend PLLC
(Contracted)
HUMAN
RESOURCES
Stephanie Brown
i
INFORMATION
TECHNOLOGY
Mary Miotke
FINANCE
Peggy McCarthy
PARKS AND
RECREATION
Rick Still
FIRE
Nick Olivas
J
COUNCIL COMMITTEES
FINANCE AND SAFETY COMMITTEE
Dennis Robertson, Chairperson
Verna Seal, Member
De'Sean Quinn, Member
COMMUNITY AFFAIRS AND PARKS
Allan Ekberg, Chairperson
De'Sean Quinn, Member
Kate Kruller, Member
1
PUBLIC WORKS
Bob Giberson
POLICE
Mike Villa
TRANSPORTATION
Kate Kruller, Chairperson
Joe Duffle, Member
Dennis Robertson, Member
UTILITIES
Joe Duffle, Chairperson
Allan Ekberg, Member
Verna Seal, Member
CITY OF TUKWILA: 2012 CAFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
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City of Tukwila
6200 Southcenter Blvd, Tukwila, WA 98188 Jim Haggerton, Mayor
June 28, 2013
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 2012 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Dear Mayor, Council Members, 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 ended December 31, 2012. This transmittal letter provides an
overview of the report and the financial condition of the City. It also provides insight into the
history of the City and the economic conditions affecting it, and describes the systems and
controls employed by the Finance department.
The Comprehensive Annual Financial Report 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
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CITY OF TUKWILA: 2012 CAFR LETTER OF TRANSMITTAL
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 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, 2012 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. The City provides sewer, water, and
surface water services. The City 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
19,486; however, the daytime shopper /visitor and working population can reach over 150,000
during the holiday shopping season.
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CITY OF TUKWILA: 2012 CAFR LETTER OF TRANSMITTAL
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 such as Microsoft 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 at the crossroads of the State's most significant freeway network (the 1 -5 and
1 -405 interchange) and planned multi -modal transit center and commuter light rail reinforces the
well - established advantages of Tukwila as a business location. These major transportation
systems and 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 sales tax bases in the State of Washington, with over $15
million in revenue for 2012. The total combined retail sales activity amounted to approximately
$1.79 billion in 2012, representing a slight decrease in sales tax revenue and retail activity
within Tukwila, as compared to last year. Although the manufacturing sector was up 54 %, both
construction and transportation and warehousing activity were down 31 percent and 20 percent
respectively. 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 has attracted new retail
establishments to locate in Tukwila.
This diversified revenue base is further supported by an assessed valuation of $4.6 billion as
well as our above - mentioned sales tax base, and has allowed the City to pursue a long -term
capital investment program.
The City experienced modest growth in overall development activities but a slight decline in
development value. Permitting activity increased from 2,020 permits issued in 2011 for a total
value of $92.4 million to 2,056 permits issued in 2012 for a total value of $52.4 million.
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.
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CITY OF TUKWILA: 2012 CAFR LETTER OF TRANSMITTAL
In December 2012, the City adopted its first Strategic Plan which will guide our actions and
investments for many years. The process was led by a Steering committee, comprised of
community representatives and a staff committee who helped identify the community's vision
and translate it into five goals. These five goals, describing the desired future of Tukwila,
comprise the following:
• A community of inviting neighborhoods & vibrant business districts
• A solid foundation for all Tukwila residents
• A diverse & regionally competitive economy
• A high performing and effective organization
• A positive community identity and image
The Southcenter Parkway Extension project, widening the two lane roadway to five lanes
between South 180th and South 200th Street, was completed and the road re- opened in
December 2012. This roadway expansion provides the infrastructure needed for future
development of the Tukwila South area bringing new businesses, housing and jobs into the
region.
Groundbreaking at the Tukwila Village site at South 144th Street and Tukwila International
Boulevard is planned for the fall of 2013. Stakeholders have developed a conceptual site plan
for location of the buildings and parking. In addition, key deal terms were approved and Tukwila
City Council approved the main agreement in October 2012. Tukwila Village will be home to a
new King County Library, senior housing, Neighborhood Resource Center, retail shops, health
clinic and plaza /park, and will create a special place for this important area.
The Boeing Access Road is a key east /west arterial that serves our north manufacturing
industrial center. The bridge over the Burlington Northern and Union Pacific railroads is near
the end of its serviceable life. Lost capacity of this critical City and regional facility would create
a negative impact to an employment center, an international airport, and a regional hub. To
help fund the rehabilitation of the bridge structure, Council accepted a $9.7 million federal grant.
In March 2013, Council approved a proposed development agreement for the former Circuit City
site on Andover Park East. The proposal includes several buildings with approximately 170
hotel rooms, 300 residential units and space for retail business.
On June 24, 2013, groundbreaking for the construction of a $46 million permanent Tukwila
Sounder commuter rail station took place. When complete, the permanent station will replace a
temporary structure and offer double the amount of parking, improved transit connections, and
improved passenger shelters among other benefits. The temporary Tukwila Station currently
services more than 1,300 weekday boardings on average.
Outside of the development arena, 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
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CITY OF TUKWILA: 2012 CAFR LETTER OF TRANSMITTAL
be focused on ensuring the City continues to be an economically strong and viable City. Our
Strategic Plan will help us 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 an independently elected State official, the 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
2012 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 2012. 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 2012.
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. 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 ended December 31,
2011. This was the 25th consecutive year that the government has achieved this prestigious
award. In order to be awarded a 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.
CITY OF TUKWILA: 2012 CAFR LETTER OF TRANSMITTAL
D. 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 2012 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,
p7c
Peggy McCarthy, CPA
Finance Director
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CITY OF TUKWILA: 2012 CAFR
LETTER OF TRANSMITTAL
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Tukwila
Washington
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2011
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
P
Executive Director
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CITY OF TUKWILA: 2012 CAFR
LETTER OF TRANSMITTAL
10
CITY OF TUKWILA: 2012 CAFR AUDITOR'S OPINION LETTER
Washington State Auditor
Troy Kelley
INDEPENDENT AUDITOR'S REPORT
June 28, 2013
Council
City of Tukwila
Tukwila, Washington
REPORT ON FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, the aggregate discretely presented component units, 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, 2012, 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.
Insurance Building, P.O. Box 40021 • Olympia, Washington 98504-0021 • (360) 902 -0370 • TDD Relay (800) 833 -6388
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CITY OF TUKWILA: 2012 CAFR AUDITOR'S OPINION LETTER
Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting
estiniates made by management, as well as evaluating the overall presentation of the financial
statements.
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, the
aggregate discretely presented component units, each major fund and the aggregate remaining
fund information of the City of Tukwila, King County, Washington, as of December 31, 2012,
and the respective changes in financial position and, where applicable, cash flaws 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, 2012, the City has implemented
the Governmental Accounting Standards Board Statement No 63, Financial Reporting of
Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position, 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 on
pages 103 and 104, information on postemployment benefits other than pensions on page 105
and pension trust fund information 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 as a whole. The accompanying
information listed as combining and individual fund financial statements and schedules on
pages 111 through 133 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 procedures
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CITY OF TUKWILA: 2012 CAFR AUDITOR'S OPINION LETTER
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 June
28, 2013, 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,
TROY KELLEY
STATE AUDITOR
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CITY OF TUKWILA: 2012 CAFR
AUDITOR'S OPINION LETTER
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CITY OF TUKWILA: 2012 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2012
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, 2012. 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 exceed total liabilities, equals $290.5
million. A total of 87 percent or $253.3 million of total net assets is invested in capital assets
such as streets, land, buildings, equipment, and other improvements. The remaining net
assets of $37.3 million is available for debt service, capital projects, and to meet the
government's ongoing activities and obligations.
• The City's net position increased by $1.7 million in 2012. Governmental activities provided a
$140,293 increase and business -type activities accounted for the difference.
• As of the close of the current fiscal year, the City of Tukwila's governmental funds reported
combined ending fund balances of $18.1 million, a decrease of $6.7 million in comparison with
the prior year due primarily to the City's self- financing of the Turkwila Urban Center Access
project (Klickitat). The City will be reimbursed over $8 million for these costs upon the sale of
Local Improvement District (LID) bonds.
• At the end of the current fiscal year, unassigned fund balance for the general fund was $8.4
million, or 19 percent of total general fund expenditures.
• The City of Tukwila's total debt decreased by $2.9 million during the current fiscal year from
debt service payments.
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.
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CITY OF TUKWILA: 2012 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Overview of the Financial Statements
The City's basic financial statements are presented in three parts:
1) Government -wide financial statements
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 assets 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, 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 "sources and uses of resources" basis. 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
16
CITY OF TUKWILA: 2012 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
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.
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 bottom of 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 nineteen individual governmental funds. Of these, three are considered major
(the general fund, the arterial street fund, and the land acquisition recreation & park development
fund) and are presented separately in the governmental fund Balance Sheet and the governmental
fund 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
statements are presented for the general, arterial street, and special revenue funds in the "Required
Supplemental Information" section of the 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 premiums. Internal service funds benefit both governmental and
business -type activities, and are allocated accordingly in the government -wide statement of
activities.
17
CITY OF TUKWILA: 2012 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
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.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information including a budget vs. actuals report for the City's
general fund, a schedule of 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
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. For the City of Tukwila, total assets exceeded liabilities by $291 million at December 31,
2012.
The largest portion of the City's net position, $253.3 million, or 87 percent, reflects its investment in
capital assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire
those assets that is still outstanding. The governmental activities net invested in capital assets
excludes debt issued for the construction of the golf course clubhouse.
The City of Tukwila uses these capital assets to provide services to citizens; consequently, these
assets are not available for future spending. Although the City of Tukwila's investment in its capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities:
18
CITY OF TUKWILA: 2012 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
CITY OF TUKWILA NET POSITION
(in thousands)
Governmental Activities Business -type Activities Total
As of 12/31/12 As of 12/31/11 As of 12/31/12 As of 12/31/11 As of 12/31/12 As of 12/31/11
Current and other assets $46,928 $51,018 $12,476 $11,248 $59,403 $62,266
Capital assets, net of
accumulated depreciation 218,767 213,700 63,118 63,403 281,885 277,103
Total assets 265,695 264,718 75,594 74,651 341,289 339,369
Long -term liabilities 29,126 31,008 10,515 10,276 39,642 41,284
Other liabilities 10,417 7,700 725 1,584 11,142 9,284
Total liabilities 39,544 38,707 11,240 11,860 50,784 50,567
Net position
Net investment in
capital assets 203,207 199,512 52,912 52,135 253,253 248,637
Restricted 2,750 5,020 430 430 3,180 5,450
Unrestricted 20,194 21,479 11,011 10,226 34,071 34,714
Total net position $226,151 $226,011 $64,354 $62,791 $290,504 $288,801
The governmental unrestricted net assets comprise $20.2 million. The general fund unrestricted net
assets are available for functions such as public safety employee salaries and supplies, park and
road maintenance, and other general government services. The unrestricted net assets of business -
type activities, $11 million, may only be spent on activities related to one of the three City utilities
(water, sewer, and surface water) or to the golf course activities. Examples of utility activities include
maintenance of water /sewer mains, pump and lift stations, storm drain flushing, and water meter
reading.
The $4.1 million decrease in current and other assets for governmental activities is comprised of a
$1.6 million net decrease in cash and investments from the use of bond funding on the Southcenter
Parkway and emergency preparedness capital purchases. The increase of $1.2 million in current
and other assets for business -type activities is comprised of an increase of $1.2 million in cash and
nominal increase in investments. This increase results from a rate structure design in the utility
funds that build reserves for major infrastructure replacement and improvement.
Governmental capital assets increased by $5.1 million due to capital outlays of $12.1 million and
developer contributions of $23,813, offset by depreciation. The addition is due to the activities in the
major projects below:
• Duwamish Hill Preserve -Land, $1.1 million
• Arterial Street Overlay, $1.3 million
• Klickitat/Southcenter Parkway /I -5 Access Revision, $2.3 million
• Southcenter Parkway Extension, $4.7 million
The $1.9 million decrease in long -term liabilities for governmental activities is due to the $790,000
increase in other post - employment benefits (OPEB) offset by principal payments on existing debt.
The increase in other liabilities comprise year -end payables that were settled in 2013.
Business -type activity capital assets decreased by $284,577 due to capital outlays of $1.66 million
and developer contributions of $28,253, offset by depreciation. Capital outlays primarily include small
drainage projects and construction activity on the Southcenter Parkway extension project.
19
CITY OF TUKWILA: 2012 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Changes in Net Position
The change in net position represents the increase or decrease in City net assets 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 assets for both governmental -type and business -
type activities:
CITY OF TUKWILA CHANGES IN NET POSITION
(in thousands)
Governmental Activities
2012 2011
Business -type Activities
Total
2012 2011
2012 2011
Revenues:
Program revenues
Charges for services $5,832 $4,708 $17,034 $16,371 $22,866 $21,079
Operating grants and contributions 4,412 4,360 4,412 4,360
Capital grants and contributions 1,582 18,495 136 1,994 1,717 20,489
General revenues
Property taxes 14,132 13,443 - 14,132 13,443
Sales and use taxes 15,442 15,796 15,442 15,796
Hotel /Motel taxes 522 556 - 522 556
Natural gas use tax 232 318 232 318
Utility taxes 4,001 4,052 4,001 4,052
Interfund utility taxes 1,535 1,372 - 1,535 1,372
Business taxes 2,498 2,309 - 2,498 2,309
Excise taxes 2,861 2,170 2,861 2,170
State entitlements 1,896 2,086 1,896 2,086
Investment earnings 117 275 61 117 337
Miscellaneous 102 - 201 102 201
Total revenues 55,162 69,940 17,170 18,627 72,332 88,567
Expenses:
General government 8,343 9,151 - 8,343 9,151
Public safety 26,598 25,348 26,598 25,348
Physical environment 3,626 2,885 3,626 2,885
Transportation 7,315 6,873 7,315 6,873
Economic environment 4,801 4,713 - 4,801 4,713
Mental and physical health - 5 0 5
Culture and recreation 4,243 4,204 4,243 4,204
Interest on long -term debt 1,152 472 - - 1,152 472
Water /sewer - 10,150 10,093 10,150 10,093
Foster golf course 1,701 1,987 1,701 1,987
Surface water 2,700 2,588 2,700 2,588
Total expenses 56,078 53,650 14,550 14,668 70,629 68,318
Increase (decrease) in net assets before transfers -917 16,290 2,620 3,959 1,703 20,249
Transfers 1,057 -2,484 -1,057 2,484
Change in net position 140 13,806 1,563 6,443 1,703 20,249
Net position- beginning of period 226,011 212,205 62,791 56,348 288,801 268,553
Net position -end of period $226,151 $226,011 $64,354 $62,791 $290,504 $288,801
" Restated for current year classifications
Governmental activities ended the year with $140 thousand increase 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.
20
CITY OF TUKWILA: 2012 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Revenues from governmental activities decreased $14.8 million from 2011 activity. The components
and explanation of this decrease follows.
• Capital grants and contributions decreased $16.9 million due to the completion of two major
arterial street projects.
• Charges for services increased $1.1 million primarily due to the recognition of developer fees
and increase in adult probation service charge receipts.
• Increase in excise tax receipts of $690 thousand were due to recognition of outstanding
gambling taxes and revenues from real estate excise tax.
Total governmental expenses increased by $2.4 million due to additional salaries and removal of
hesco fences. Physical environment expenses increased by $740 thousand or 26% primarily due to
the removal of flood response protective measures. Public safety expenses increased by $1.3
million, or 5 %, as a result of wage and benefits increases per new labor agreement, addition of three
officers and the improvements to the new Neighborhood Resource Center. Interest expense on
long -term debt increased by $679 thousand.
The next chart summarizes the governmental activity revenue by source, while the second one
reflects the specific programs' revenues and related expenses for the various activities of the City.
Gaps between specific programs' revenues and their related expenses are funded through general
tax revenues.
Utility taxes
10%
Sales /use taxes
28%
Revenues by Source — Governmental Activities
Other taxes,
1%
Other revenue
4%
Charges for
services
11%
21
Capital grants &
contri buti ons
8%
Operating grants
& contributions
3%
Property taxes
25%
CITY OF TUKWILA: 2012 CAFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
$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
Program Revenues and Expenses - Governmental Activities
1 1
occs
• cs
C���� Qr -�\ GJ�J�� 5'
❑Program revenues
■ Expenses
Business -type net position increased by $1.6 million during 2012. Key components of this increase
include:
• $663,183 or 4% increase in charges for services primarily due to utility rate increase
effective January 2012.
• Income before capital contributions and transfers amounted to:
o Water fund: $ 625,687
o Sewer fund 980,804
o Foster golf course fund: (252,402)
o Surface water fund: 1,061,358
$ 2,415,447
22
CITY OF TUKWILA: 2012 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
The following chart shows the relative net position balances for each business -type fund:
Business -Type Net Position - By Fund
Foster golf course
Water
28
Surface water Sewer
42% 17%
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 assets are not
available to support the ongoing expenses of the funds. The following chart contrasts the total net
assets to the spendable portion of net assets for each enterprise fund:
Comparison of Total Net Position to Spendable Net Position
Business -Type Funds
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
❑Spendable /Unrst Net Position
■Total Net Position
Sewer
23
Surface water
Foster golf
course
CITY OF TUKWILA: 2012 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
The following chart depicts the revenues and expenses for business -type funds:
$8,000,000 —
$6,000,000
$4,000,000
$2,000,000
$0
Business -type Activity Revenues and Expenses
Before Capital Contributions and Transfers
IN-
Water
Sewer Surface Water
Financial Analysis of Governmental Funds
il ,
Foster Gdf Course
❑ Revenues
• Expenses
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, fund balance is a good indicator of the City's financial resources.
As of December 31, 2012, the City's governmental funds had combined fund balances of $18.1
million, a decrease of $6,655,064 or 26.8 %. This decrease is related to a decrease in arterial street
fund of $6.4 million due to the completion of two major arterial street projects and expenditures
incurred on the Local Improvement District. Reimbursement will take place in 2013.
The change in prior year fund balances for other major funds are as follows:
• General fund $118,415
• Land Acq., Rec & Park Development ($337,784)
• Other governmental funds $10,370
Of the governmental fund balances, restricted fund balances constrained for a specific purpose by
external parties consist of $710,707 for tourism, $1,046,772 for streets, $394,755 for arterial street
improvements, $85,125 for drug seizure, $164,312 for general government improvement, and
$348,010 for fire improvements. Fund balances intended to be used for specific purposes consists
of $88,576 for arterial streets, $1,090,188 for land acquisition recreation and park development,
24
CITY OF TUKWILA: 2012 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
$2,005,520 for facility replacement, $749,518 for general government improvements, and
$3,012,381 dedicated for debt repayment and $75,000 for public safety equipment.
The general fund is the primary operating fund of the City. All receipts and payments of ordinary City
operations are processed through it unless they are required to be accounted for in another fund. At
the end of 2012, the general fund had an unassigned fund balance of $8,378,557.
The following chart shows the relative fund balances for governmental funds:
Governmental Funds — Fund Balances
Debt service funds
18%
Special revenue funds
11%
Capital projectfunds
18%
\g.Mh7
Land acq, rec & park
improvementfunds
6%
General fund
46%
Arterial street fund
1%
The $118,416 increase in the general fund balance results from revenue of $48,704,332, expenses
of $44,638,728, transfers into the fund of $2,330,665, transfers out of $5,619,148, and a loan to
Tukwila Metropolitan Park District in the amount of $658,706. In comparison with 2011, revenue
increased $814,838, expenses increased of $937,338, decrease of transfers into the fund of
$642,178 and decrease in transfers out of $4,449.
The fund balance decrease of $6,446,065 in the arterial street fund is primarily due to expenditures
for two major arterial street projects. Land acquisition, recreation and park development fund
balance decreased by $337,784.
25
CITY OF TUKWILA: 2012 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
The general fund revenue increase of $814 thousand came from the following sources:
1,500,000
1,000,000
500,000
0
(500,000)
General Fund Revenue Increases (Decreases) - By Source
Taxes
$1,194,902
Charges forServices
$76,134
Intergovem ment al
($47,259)
Licenses &Permits ($228,077)
Fines & Forfeitures
($9,155)
InvestmentEarnings
($66,870)
Miscellaneous
($67,963)
Revenue from revenue generating regulatory fee was previously categorized under licenses and
permits in prior years. This fee is currently included in taxes.
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:
• Funding for Strategic Plan $ 130,000
• Increase in wages and benefits per new labor agreement 551,768
• Reinstatement of 1.5 FTE -Parks Maintenance 117,620
• Additional funding for legal matters 100,000
• Additional funding for dispatch and monitoring 77,000
• Additional funding for debt service 167,965
• Delayed transfers to Contingency Fund (3,000,000)
• Increase in revenue for indirect cost allocation charge 605,618
• Reduction of overbudgeted revenue for sale of capital assets (627,618)
• Delayed debt proceeds (1,000,000)
26
CITY OF TUKWILA: 2012 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Reasons for the significant variances in the general fund between the final budget and actual results
include:
• Charges for services are down by $500,000 due to reduction in programs offered in the
community center with $273,000 of it from reduced revenue from licensing and permitting
activities as a result of decreased construction activities.
• Previously owed revenue from gambling tax were settled in 2012.
• The budget for proceeds from sales of capital assets was significantly higher than actual
results resulting in a negative variance of $662,000. Properties that were originally
scheduled to be sold were kept for alternative use.
• A contingency fund transfer of $3 million and debt proceeds of $1 million did not take place
until the first quarter in 2013.
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, 2012 totaled $281.8 million (net of accumulated depreciation), an increase of $4.8
million, or 1.7 %, from 2011. This investment in capital assets includes land, buildings, improvements,
machinery and equipment, construction in progress, utility transmission /distribution systems, roads,
bridges, and other infrastructure.
SUMMARY OF CAPITAL ASSETS (NET OF DEPRECIATION)
Govemmental Activities
Business -Type Activities Total
As of 12/31/12 As of 12/31/11 As of 12/31/12 As of 12/31/11 As of 12/31/12 As of 12/31/11
Land $40,501,509 $39,459,061 $2,214,118 $2,214,118 $42,715,627 $41,673,179
Buildings 12,181,708 12,231,995 8,099,221 8,403,761 20,280,929 20,635,756
Other Improvements 7,943,508 8,639,571 44,569,513 44,188,248 52,513,021 52,827,819
Machinery and Equipment 5,597,527 6,525,286 584,202 687,756 6,181,728 7,213,042
Infrastructure 104, 089, 598 107,103, 876 104, 089, 598 107,103, 876
Intangible Assets 510,592 286,711 510,592 286,711
Construction in Progress 47,942,200 39,453,817 7,595,365 7,850,959 55,537,566 47,304,776
Total $218,766,642 $213,700,317 $63,062,420 $63,344,843 $281,829,061 $277,045,159
More detailed information on capital assets is provided in Note 7.
General capital outlay purchases added $273,560 in machinery and equipment. Among these
include a partial payment for new permitting software of $177,938, agenda manager software totaling
$22,000, and various computer equipment purchases in the amount of $39,513.
Many of the projects in the Arterial Street Fund are in the construction stage adding $8.3 million in
construction in progress for the period. The major arterial street fund activities comprise of the
following:
• Tukwila Urban Center Access Project (Klickitat Southcenter Parkway /I -5 Access Revision),
$2.3 million
• Southcenter Parkway Extension, $4.7 million
• Transit Center, $603,000
27
CITY OF TUKWILA: 2012 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Arterial street overlay and work on bridges contributed the additional $1.4 million in capital assets.
Land Acquisition, Recreation & Park Development activities consist of $1.1 million in land acquisition
for the Duwamish Hill Preserve and improvements. Several projects have added $270,736 in
construction in progress costs for the year.
Other governmental funds' activity provided an additional $472,215 in capital assets and $266,348 in
work in progress for the year. The Neighborhood Resource Center improvements, City Hall
Police /Suite 205 /Conference Room #3 remodels, and various software and licensing purchases are
some of the completed projects in 2012.
Business -type activities consisted of $1.5 million in additional construction in progress work for the
year. Major projects in the utility funds comprise of the following:
• Small Drainage Projects, $883,000
• Southcenter Parkway Extension, $403,000
• Andover Park West Strander, $106,000
A total of $143,000 in purchases of meters, hydrants, mains, intakes and service connections were
capitalized for the year.
Long -term Debt
At the end of the current fiscal year, the City had total bonded debt outstanding of $21,900,000. Of
this amount, $18,360,000 is general obligation bonds, and $3,540,000 is revenue bonds for the
water /sewer and surface water utilities. The reduction in outstanding bonds is due to the principal
payments redeemed for the year. The City currently maintains a rating of Al with Moody's and AA-
with Fitch's Investor Service for its general obligation debt.
The following schedule summarizes the City's bonded debt:
Governmental Activities Business -type Activities Total
As of 12/31/12 As of 12/31/11 As of 12/31/12 As of 12/31/11 As of 12/31/12 As of 12/31/11
General obligation bonds $ 18,360,000 $ 20,260,000 $ - $ - $ 18,360,000 $ 20,260,000
Revenue bonds - - 3,540,000 3,980,000 3,540,000 3,980,000
$ 18, 360, 000 $ 20, 260, 000 $ 3,540,000 $ 3,980,000 $ 21, 900, 000 $ 24, 240, 000
Below is a summary of additional long -term debt of the City:
Other Long -term Debt
Public Works Trust Fund loans
Employee leave benefits
Due to other governments
$ 6,621,364
3,452,943
7,392,600
$ 17,466,907
More detailed information on long -term debt is provided in Note 11.
28
CITY OF TUKWILA: 2012 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Economic Factors
The outlook for 2013 is positive. The economy is showing steady signs of recovery. The City of
Tukwila has a small residential population, yet the City works hard to serve 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 positive impacts on the future of Tukwila's
economy:
• Tukwila South — In 2009, the City executed development agreements and completed
annexation of 259 acres as part of the 500 acre Tukwila South development. Development
activities in 2012 were minimal. The new Southcenter Parkway Extension project was
completed in 2012 and will allow for the future development to continue.
• Tukwila Village - On June 6, 2011 the City Council selected Tukwila Village Development
Associates, LLC (also known as the Senior Housing Assistance Group or "SHAG ") as the
developer and authorized the Mayor to enter into negotiations. In June 2012 the Board of the
King County Library System (KCLS) voted to undertake a fundraising program to increase
the size of the future Tukwila Library to be 10,000 square feet. The key deal terms between
the City and KCLS were approved by City Council on June 25, 2012.
On October 22, 2012, City Council approved the main agreement (Disposition and
Development Agreement, DDA). Project design is scheduled to be completed in 2013 with
construction starting in 2013. The first phase is scheduled to open in late 2014 and the final
phase in 2015.
• Tukwila Urban Center Access — Designed to improve traffic flow, Southcenter Parkway
reopened on October 13, 2011. The preliminary assessment roll for Local Improvement
District No. 33 to fund a portion of the project is estimated to be $9.9 million and the
assessment is scheduled for 2013.
• Major Tenant Improvements /Additions — Tenant improvements and additions were
completed for Sabey Data Center, Boeing renovation, King County Housing Authority, and
re- roofing of King County Metro and Boeing. Completed demolitions for the year include
Bow Lake and Boeing Plant 2. This added $235,651 in revenue receipts, which added $19.7
million in property values.
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
CITY OF TUKWILA: 2012 CAFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
30
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The City presents two government -wide financial statements:
The Statement of Net Position provides information on all City assets and
liabilities, with the difference between the two reported as net position.
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.
31
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET POSITION
DECEMBER 31, 2012
COMPONENT
PRIMARY GOVERNMENT UNIT
GOVERNMENTAL BUSINESS -TYPE TUKWILA
ACTIVITIES ACTIVITIES TOTAL METROPOLITAN
PARK DISTRICT
ASSETS:
CASH AND CASH EQUIVALENTS (Note 3) $ 19,537,919 $ 4,931,861 $ 24,469,780 $ 182,136
INVESTMENTS (Note 3) 7,329,634 3,450,000 10,779,634
RECEIVABLES:
TAXES (Note 4) 4,440,757 - 4,440,757
CUSTOMER ACCOUNTS 1,062,613 1,196,224 2,258,837
INTEREST ON INVESTMENTS 44,798 33,105 77,903
DUE FROM OTHER GOVERNMENTAL UNITS 2,009,171 1,309,301 3,318,472 416,666
INVENTORY OF MATERIALS AND SUPPLIES 402,010 598,013 1,000,024
DUE FROM COMPONENT UNIT 860,408 860,408
NOTES RECEIVABLE 407,215 407,215
RESTRICTED CASH AND CASH EQUIVALENTS (Note 3) 559,067 493,777 1,052,844
DEFERRED CHARGES 249,721 56,028 305,749
NET PENSION ASSET (Note 9) 336,352 - 336,352
INVESTMENT IN JOINT VENTURES (Note 8) 10,095,461 - 10,095,461
NON- DEPRECIABLE CAPITAL ASSETS (Note 7) 88,443,709 9,809,483 98,253,192
DEPRECIABLE CAPITAL ASSETS (NET OF ACCUMULATED
DEPRECIATION): (Note 7) 130,322,933 53,308,949 183,631,882 2,801,132
TOTAL ASSETS 265,694,552 75,593,958 341,288,510 3,399,934
LIABILITIES:
ACCOUNTS PAYABLE
ACCRUED WAGES AND BENEFITS PAYABLE
ACCRUED INTEREST PAYABLE
DUE TO PRIMARY GOVERNMENT
REVENUES COLLECTED IN ADVANCE
OTHER LIABILITIES
BONDS AND OTHER DEBT PAYABLE (Note 11):
DUE WITHIN ONEYEAR
DUE IN MORE THAN ONE YEAR
NET OTHER POST EMPLOYMENT OBLIGATION (Note 10)
TOTAL LIABILITIES
NET POSITION: (Note 1)
NET INVESTMENT IN CAPITAL ASSETS
RESTRICTED FOR DEBT SERVICE
RESTRICTED BY ENABLING LEGISLATION:
TOURISM PROMOTION
RESIDENTIAL STREET IMPROVEMENTS
ARTERIAL STREET IMPROVEMENTS
DRUG INVESTIGATION AND ENFORCEMENT
FIRE IMPROVEMENTS
GENERAL GOVERNMENT IMPROVEMENTS
UNRESTRICTED NET ASSETS
1,716,714 486,429 2,203,143
1,353,296 107,669 1,460,964
69,185 54,876 124,061
695,979 17,804 713,783
2,148,610 58,407 2,207,017
2,261,000 1,026,292 3,287,292
26,865,489 9,488,977 36,354,466
4,433,326 - 4,433,326
39,543,599 11,240,454 50,784,053
203,206,940
710,707
1,046,772
394,755
85,125
348,010
164,312
20,194,333
52,911,741 253, 253,169
430,444 430,444
766,129
11,593
860,408
24,362
1,662,493
710,707
1,046,772
394,755
85,125
348,010
164,312
11,011,319 34,071,164
2,801,132
(1,063,691)
TOTAL NET POSITION $ 226,150,953 $ 64,353,504 $ 290,504,457 $ 1,737,441
The notes to the financial statements are an integral part of this statement.
32
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2012
PRIMARY GOVERNMENT
COMPO-
NENT UNIT
PROGRAM REVENUES --NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION --
CHARGES OPERATING CAPITAL GOVERNMENTAL BUSINESS- TOTAL TOTAL
For Services Grants and Grants and Activities TYPE
EXPENSES Contributions Contribution Activities
FUNCTIONS / PROGRAM S:
PRIMARY GOV ERNM ENT
GOVERNMENTAL ACTIVITIES:
GBJERAL GOVERNMENT $ 8,343,107 $ 1,332,418 $2,214,024 $ - $ (4,796,666) $ $ (4,796,666) $
PUBLIC SAFETY 26,598,432 684,744 829,187 262,660 (24,821,841) (24,821,841)
TRANSPORTATION 7,314,707 1,004,911 83,495 964,037 (5,262,264) - (5,262,264)
PHYSICAL ENVIRONMENT 3,625,696 4,939 1,148,507 - (2,472,250) (2,472,250)
CULTURE AND RECREATION 4,242,725 481,404 57,606 355,184 (3,348,530) (3,348,530)
ECONOMIC ENVIRONMENT 4,801,342 2,323,528 78,801 (2,399,014) (2,399,014)
INTEREST ON LONG -TERM DEBT 1,152,063 (1,152,063) (1,152,063)
Total Governmental Activities 56,078,072 5,831,944 4,411,618 1,581,882 (44,252,628) - (44,252,628)
BUSINESS -TYPE ACTIVITIES:
WATER 4,625,242
SEWER 5,524,315
SURFACE WATER 2,699,767
FOSTER GOLF COURSE 1,701,131
Total Business -Type Activities 14,550,455
5,252,024
6,506,634
3,827,010
1,448,729
3,550
103,800
28,253
630,332
1,086,119
1,155,496
(252,401)
17,034,397
135,603
2,619,546 2,619,546
TOTAL PRIMARY GOVERNMENT $ 70,628,527 $ 22,866,341 $4,411,618 $1,717,485 $ (44,252,628) $ 2,619,546 $ (41,633,082) $
COMPONENT UNIT:
METROPOLITAN PARK DISTRICT $ 659,775 $ 210,098
$ 416,666 (33,011)
TOTAL COMPONENT UNIT $ 659,775 $ 210,098 $ 416,666 $ (33,011)
GENERAL REVENUES:
TAXES
PROPERTY TAXES $ 14,131,605 $
RETAIL SALES AND USE TAXES 15,441,683
NATURAL GAS USE TAX 232,208
HOTEUMOTEL TAXES 522,033
UTILITY TAXES 4,001,385
INTERFUND UTILITY TAXES 1,534,581
BUSINESS TAXES 2,497,606
EXCISE TAXES 2,860,948
STATE ENTITLEMENTS 1,895,647
UNRESTRICTED INVESTMENT EARNINGS 116,694
MISCELLANEOUS 101,688
TRANSFERS (Note 5) 1,056,843
(1,056,843)
$ 14,131,605 $
15,441,683
232,208
522,033
4,001,385
1,534,581
2,497,606
2,860,948
1,895,647
116,694
101,688
TOTAL GENERAL REVENUES
44,392,921 (1,056,843) 43,336,078
CHANGE N NET POSITION
NET POSITION - BEGINNING
140,293 1,562,703 1,702,996
226,010,660 62,790,801 288,801,461
(33,011)
1,770,452
NET POSITION - ENDING $ 226,150,953 $ 64,353,504 $ 290,504,457 $ 1,737,441
The notes to the financial statements are an integral part of this statement.
33
CITY OF TUKWILA: 2012 CAFR
BASIC FINANCIAL STATEMENTS
34
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
MAJOR GOVERNMENTAL FUNDS
General Fund
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 general fund is accounted for on a modified accrual basis. Biennial budgets are
adopted with appropriations lapsing at the end of each year of the biennium.
Arterial Street Fund
This fund is supported by the State's one -half cent gas tax and is used for major
street construction.
Land Acquisition, Recreation and Park Development Fund
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.
35
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2012
LAND ACQ. OTHER TOTAL
GENERAL ARTERIAL REC & PARK GOVERNMENTAL GOVERNMENTAL
FUND STREET DEVELOPMENT FUNDS FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 6,262,710 $ - $ 1,068,126 $ 5,008,571 $ 12,339,407
INVESTMENTS - 2,049,464 2,049,464
RECEIVABLES:
TAXES 4,292,038 35,821 1,447 111,452 4,440,757
CUSTOMER ACCOUNTS 772,196 - 290,021 1,062,218
DUE FROM OTHER GOVERNMENTAL UNITS 219,770 782,613 36,753 970,035 2,009,171
RESTRICTED ASSETS:
CASH AND CASH EQUIVALENTS 394,755 - 164,312 559,067
TOTAL ASSETS $ 11,546,714 $ 1,213,189 $ 1,106,326 $ 8,593,854 $ 22,460,083
LIABILITIES AND FUND BALANCES:
ACCOUNTS PAYABLE
ACCRUED WAGES & BENEFITS
REVENUE COLLECTED IN ADVANCE
OTHER CURRENT LIABILITIES
DEFERRED REVENUE
TOTAL LIABILITIES
676,734
1,301,140
695,979
200,360
293,944
712,108
17,750
15,286 280,346 1,684,475
351 16,162 1,335,403
695,979
500 100,000 300,860
293,944
3,168,158
729,858 16,137
396,508 4,310,661
FUND BALANCES:
RESTRICTED FOR:
HOTEL MOTEL TAX
RESIDENTIAL STREET IMPROVEMENTS
ARTERIAL STREET IMPROVEMENTS
DRUG INVESTIGATION AND ENFORCEMENT
FIRE IMPROVEMENTS
GENERAL GOVERNMENT IMPROVEMENTS
ASSIGNED FOR:
ARTERIAL STREET
LAND ACQ. REC & PARK DEVELOPMENT
FACILITY REPLACEMENT
GENERAL GOVERNMENT IMPROVEMENTS
PUBLIC SAFETY EQUIPMENT
DEBT SERVICE
UNASSIGNED
710,707 710,707
1,046,772 1,046,772
394,755 394,755
85,125 85,125
348,010 348,010
164,312 164,312
88,576 - 88,576
1,090,188 1,090,188
2,005,520 2,005,520
749,518 749,518
75,000 75,000
3,012,381 3,012,381
8,378,557 - 8,378.557
TOTAL FUND BALANCES
8,378,557 483,331 1,090,188 8,197,345 18,149,421
TOTAL LIABILITIES AND FUND BALANCES $ 11,546,714 $ 1,213,189 $ 1,106,326 $ 8,593,854 $ 22,460,083
The notes to the financial statements are an integral part of this statement.
36
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2012
Total governmental fund balances as reported on this statement $ 18,149,420
Amounts reported for governmental activities in the statement of net position are different because:
The purchases method is used in Governmental Funds to account for Materials and Supplies - Inventory
amount outstanding. 389,691
The cost of issuing long -term debt is amortized over the life of the debt in the statement of net position 249,721 639,412
and expensed w hen paid in the governmental funds.
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds.
Governmental funds assets
Internal service fund assets
216,720,883
2,045,759
218,766,642
The net pension asset resulting from contributions in excess of the annual required contribution are not
financial resources and therefore is not reported in the funds. 336,352
The City has an equity interest in tw o 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. 10,095,461
Deferred revenue reported for property taxes that are current and prior year tax levies that w ere not collected
and available to pay current year liabilities 293,944
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
Due to Other Governmental Units
Unfunded Other Post Employment Benefits
Accrued Interest Payable
(2,261,000)
(19,472,889)
(7,392,600)
(4,433,326)
(69,185)
(33,629,000)
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. 10,638,313
Amount due from Component Unit is expensed in governmental funds and recorded as a receivable in the statement
of net position 860,408
Net position of government activities as reported on the statement of net position $ 226,150,953
The notes to the financial statements are an integral part of this statement.
37
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2012
LANDACO. OTHER TOTAL
GENERAL ARTERIAL REC & PARK GOVERNMENTAL GOVERNMENTAL
FUND STREET DEVELOPMENT FUNDS FUNDS
REVENUES:
TAXES $ 39,840,364 $ 523,084 $ 617,105 $ 522,056 $ 41,502,609
LICENSES AND PERMITS 1,604,594 - 1,604,594
INTERGOVERNMENTAL 4,708,774 1,006,599 410,888 1,762,886 7,889,147
CHARGES FOR SERVICES 2,184,369 846,240 52,229 891,518 3,974,356
FINES AND FORFEITURES 220,752 - 220,752
INVESTMENT EARNINGS 64,418 3,153 2,678 36,036 106,286
MISCELLANEOUS 71,159 43,271 17,547 131,977
TOTAL REVENUES 48,694,430
2,422,347 1,082,901
3,230,044 55,429,722
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 8,344,177
PUBLIC SAFETY 24,907,510
PHYSICAL ENVIRONMENT 1,673,956 -
TRANSPORTATION 2,682,877 86,305
ECONOMIC ENVIRONMENT 3,394,823 -
CULTURE AND RECREATION 3,361,825
DEBT SERVICE:
PRINCIPAL
INTEREST
CAPITAL OUTLAY
273,560
11,175
9,709,676 1,377,494
160,334
10,796
1,348,560
1,373,121
2,254,200
1,178,464
738,564
8,504,511
24,918,306
3,022,516
2,769,182
4,767,944
3,373,000
2,254,200
1,178,464
12,099,293
TOTAL EXPENDITURES 44,638,728
9,795,981 1,388,669 7,064,039 62,887,416
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER) EXPENDITURES 4,055,702 (7,373,634) (305,768) (3,833,995) (7,457,694)
OTHER FINANCING SOURCES (USES):
SALES OF CAPITAL ASSETS 9,903 -
TRANSFERS IN (Note 5) 2,330,665 1,314,132
TRANSFERS OUT (Note 5) (5,619,148) (386,563)
LOAN TO TUKWILA MPD (658,706)
3,980,995
(32,016) (136,631)
9,903
7,625,792
(6,174,358)
(658,706)
TOTAL OTHER FINANCING
SOURCES AND USES
(3,937,286) 927,569 (32,016) 3,844,364 802,631
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
118,416
8,260,141
(6,446,065) (337,784)
6,929,396 1,427,972
10,369 (6,655,064)
8,186,976 24,804,485
$ 8,378,557 $ 483,331 $ 1,090,188 $ 8,197,345 $ 18,149,421
The notes to the financial statements are an integral part of this statement.
38
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
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, 2012
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
Excess of Capital Outlay Over Depreciation Expense
The net pension asset (negative net pension obligation) amortization amount is not a financial
resource and therefore not reported in the funds.
The City has equity interests in two joint ventures. The equity interests for the provision of governmental
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 assets. In the current year, these amounts
consist of
12,099,298
(6,548,605)
Bond Principal Retirement 2,290,091
Amortization Expense 50,971
Internal service funds are used by management to charge the costs of certain activities
to individual funds. The net revenue (expense) of certain internal service funds is reported with
governmental activities.
Because some revenues will not be collected for several months after the Citys fiscal year ends,
theyare not considered "available" revenues in the government funds. Deferred revenues
decreased bythis amount this year.
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:
Decrease in Accrued Interest
Increase in Compensated Absences
Increase in Unfunded Other Post Employment Benefits
Amortization of Cost of issuance
Decrease in inventory
Total Additional Expense (Increase) Decrease
Due from Component Unit
Loan Principal
Interest
10,251
(175,287)
(790,163)
(34,822)
(167,010)
658,706
10,408
$ (6,655,064)
5,550,693
26,520
(371,958)
2,341,063
17,488
(280,533)
(1,157,030)
669,114
Change in net assets on the Statement of Activities $ 140,293
The notes to the financial statements are an integral part of this statement.
39
CITY OF TUKWILA: 2012 CAFR
BASIC FINANCIAL STATEMENTS
40
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
MAJOR PROPRIETARY FUNDS
ENTERPRISE FUNDS
The City's enterprise funds are used to account for operations that are financed and
operated in a manner similar to private business operations. The goods and
services these funds provide to the general public are primarily financed by service
charges. Enterprise funds are self- supporting and use the accrual method of
accounting. Tukwila has four major enterprise funds.
Water Utility Fund
This fund accounts for all maintenance, construction, and debt service requirements
associated with the water system.
Sewer Utility Fund
This fund accounts for all maintenance, construction, and debt service requirements
associated with the sanitary sewer system.
Foster Golf Course Fund
Accounts for services, maintenance, operations, and debt service requirements
associated with the Foster Golf Course.
Surface Water Utility Fund
This fund accounts for the maintenance, construction and debt service requirements
of Tukwila's storm drainage system.
41
GOVERNMENTAL
FOSTER SURFACE TOTAL ACTIVITIES
WATER SEWER GOLF WATER ENTERPRISE INTERNAL
UTILITY UTILITY COURSE UTILITY FUNDS SERVICE FUNDS
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2012
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 912,764 $ 1,457,624 $ 253,483 $ 2,307,990 $ 4,931,861 $ 7,198,512
INVESTMENTS 3,450,000 - 3,450,000 5,280,170
RECEIVABLES:
CUSTOMER ACCOUNTS 380,970 635,750 5,982 206,628 1,229,330 395
INTEREST ON INVESTMENTS - 44,798
DUE FROM OTHER GOVERNMENTAL UNITS 1,261,696 47,605 1,309,301
INVENTORY OFMATERIALS AND SUPPLIES 240,508 52,195 255,978 49,332 598,013 12,319
CURRENT ASSETS RESTRICTED:
CASH AND CASH EQUIVALENTS 6,035 57,297 63,332
TOTAL CURRENT ASSETS 6,251,973 2,145,569 572,740 2,611,556 11,581,838 12,536,195
NONCURRENT ASSETS:
RESTRICT EU CASH, CASH EQUIVALENTS 266,713 126,834 - 36,897 430,444 -
NOTES RECEIVABLE 407,215 - 407,215
DEFERRED CHARGES 14,567 34,737 6,723 56,028
CAPITAL ASSETS:
LAND 87,347 69,525 1,609,575 447,671 2,214,118
BUILDINGS AND EQUIPMENT 1,416,567 2,181,410 6,627,496 1,165,129 11,390,602
OTHER IMPROVEMENTS 18,707,738 13,199,956 3,559,992 36,361,529 71,829,216
MACHINERY AND EQUIPMENT 825,311 1,249,739 169,496 50,707 2,295,253 9,390,266
CONSTRUCTION IN PROGRESS 2,705,804 2,618,502 - 2,271,059 7,595,365
LESS: ACCUMULATED DEPRECIATION (8,992,732) (6,753,598) (4,196,843) (12,318,962) (32,262,134) (7,344,507)
TOTAL CAPITAL ASSETS (NET OF A /D) 14,750,035 12,565,535 7,769,716 27,977,134 63,062,420 2,045,759
PLANT ACQUISITION ADJUSTMENT (NET OF
ACCUMULATED AMORTIZATION) 56,012 56,012
TOTAL NONCURRENT ASSETS 15,087,328 13,134,321 7,769,716 28,020,754 64,012,120 2,045,759
TOTAL ASSETS 21,339,301 15,279,890 8,342,456 30,632,310 75,593,958 14,581,953
LIABILITIES:
CURRENT LIABILITIES:
ACCOUNTS PAYABLE 22,463 313,530 1,684 148,753 486,430
ACCRUED WAGES AND BENEFITS 26,900 15,179 28,098 37,491 107,669
DUE TO OTHER GOVERNMENTAL UNITS 95,080 192,261 270,953 558,293
ACCRUED INTEREST PAYABLE 34,361 11,387 9,129 54,876
OTHER CURRENT LIABILITIES - 964 2,035 - 2,999
UNEARNED REVENUE 5,042 129 12,633 17,804
REVENUE BOND PRINCIPAL 365,100 83,700 16,200 465,000
DEPOSITS 6,035 52,372 58,407
17,892
1,879,990
TOTAL CURRENTLIABILMES 554,981 617,021 84,318 495,159 1,751,477
1,897,882
NONCURRENT LIABILITIES:
REVENUE BONDS PAYABLE (NET OFUNAMORTIZEDPREMUMS) 1,354,755 1,479,304 286,317 3,120,376
(NET OF UNAMORTIZED PREMIUMS), Note 11
COMPENSATED ABSENCES 93,767 46,639 84,033 81,092 305,531
OTHER LONG- TERM LIABILITIES 1,002,514 2,114,869 2,945,688 6,063,071
TOTAL NONCURRENT LIABILITIES 2,451,036 3,640,812 84,033 3,313,097 9,488,976
TOTAL LIABILITIES 3,006,017 4,257,833 168,351 3,808,256 11,240,455 1,897,882
NET POSITION:
NET INVESTMENT IN CAPITAL ASSETS 11,988,622 8,695,401 7,769,717 24,458,000 52,911,740 2,045,759
RESTRICTED FOR
DEBT SERVICE 266,713 126,834 36,897 430,444
UNRESTRICTED 6,077,949 2,199,821 404,389 2,329,158 11,011,318 10,638,313
TOTAL NET POS $ 18,333,285 $ 11,022,056 $ 8,174,106 $ 26,824,055 $ 64,353,503 $ 12,684,072
The notes to the financial statements are an integral part of this statement.
42
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA. WASHINGTON
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2012
GOVERNMENTAL
FOSTER SURFACE TOTAL ACTIVITIES
WATER SEWER GOLF WATER ENTERPRISE INTERNAL
UTILITY UTILITY COURSE UTILITY FUNDS SERVICE FUNDS
OPERATING REVENUES:
TAXES $ - $ $ 3,531 $ - $ 3,531 $
CHARGES FOR SERVICES 5,184,979 6,487,708 1,423,538 3,690,773 16,786,998 7,181,113
INTERGOVERNMENTAL 10,783
OTHER OPERATING REVENUE 362 362 64,018
TOTAL OPERATING REVENUES A 5,184,979 6,487,708 1,427,069 3,691,135 16,790,890 7,255,914
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE 3,158,877 4,198,885 1,388,527 1,001,207 9,747,495 6,499,079
ADMINISTRATIVE A ND GENERAL 90,982 147,920 485,682 724,584
TAXES 735,331 730,112 6,203 419,805 1,891,451
DEPRECIATION AND AMORTIZATION 519,221 379,795 306,401 762,537 1,967,954 717,452
TOTAL OPERATING EXPENSES 4,504,411 5,456,712 1,701,131 2,669,231 14,331,484 7,216,531
OPERATING INCOME (LOSS) 680,568 1,030,996 (274,062) 1,021,903 2,459,406 39,383
NON - OPERATING REVENUE (EXPENSE):
INVESTMENT EARNINGS 54,216 2,307 21,660 5,232 83,415 312,905
INTEREST EXPENSE (122,663) (66,933) (30,406) (220,002)
GAIN/(LOSS) FR DISPOSAL OF CAPITAL ASSETS (72) (72) 59,790
AMORTZATION OF BOND PREMIUM 8,973 1,825 353 11,151
AMORTIZATION OF BOND DISCOUNT (6,093) - (483) (6,576)
BOND ISSUE COSTS (1,047) (2,496) (3,543)
OTHER NON-OFERATING REVENUE 11,734 15,106 - 64,829 91,669 -
TOTAL NON - OPERATING REVENUE (EXPENSE)
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS
(54,881) (50,192) 21,660 39,454 (43,959) 372,695
625,687 980,804 (252,402) 1,061,357 2,415,447 412,078
CAPITAL CONTRBUTIONS 4,645 105,314 94,138 204,097 -
TRANSFERS IN (Note 5) 98,460 225,000 323,460
TRANSFERS OUT (Note 5) (517,377) (446,980) (15,160) (400,786) (1,380,303) (394,591)
CHANGE IN NET POSITION _A 211,415 639,138 (42,562) 754,710 1,562,702 17,487
TOTAL NET POSITION BEGINNING OF YEAR 18,121,870 10,382,918 8,216,668 26,069,345 62,790,801 12,666,585
TOTAL NET POSITION END OF YEAR il= $ 18,333,285 $ 11,022,056 $ 8,174,106 $ 26,824,055 $ 64,353,503 $ 12,684,072
The notes to the financial statements are an integral part of this statement.
43
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2012
Page 1 oft
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 $ 5,166,491 $ 6,485,479 $ 1,336,482 $ 3,648,413 $ 16,636,865 $ 7,244,484
CASH PAID TO SUPPLIERS (2,489,057) (3,662,869) (316,445) (424,750) (6,893,122) (5,935,324)
CASH PAID FOR TAXES (735,331) (730,112) (65,471) (419,805) (1,950,719)
CASH PAID FOR INVENTORY 6,059 (806) (82,649) (77,397) (48,317)
CASH PAID TO EMPLOYEES (736,511) (410,537) (919,548) (960,500) (3,027,097) (477,030)
OTHER CASH RECEIVED (PAID) - - 93,701 2,429 96,131 154,950
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
1,211,651 1,681,154 46,069 1,845,787 4,784,661 938,763
CASH FLOWS FROM NONCAPITAL RNANCING ACTIVITIES:
OPERATING GRANT RECEIVED 64,829 64,829 -
TRANSFERS IN 98,460 225,000 323,460
TRANSFERS OUT (517,377) (446,980) (15,160) (400,786) (1,380,303) (394,591)
NET CASH PROVIDED (USED) BY NON-
CAPITAL FINANCING ACTIVITIES (418,917) (446,980) 209,840 (335,957) (992,014) (383,808)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM SALE OF EQUIPMENT 9,038 (72) 8,966 79,251
PURCHASE OF CAPITAL ASSETS (196,456) (434,592) - (1,024,079) (1,655,127) (233,086)
CONTRIBUTED CAPITAL 3,550 103,800 - 107,350
CAPITAL GRANTS 3,791 1,513 65,885 71,189
PREMIUM& BOND ISSUANCE COSTS 2,628 1,638 (36) 4,229
PRINCIPAL PAYMENT ON DEBT (438,880) (272,861) (286,553) (998,293) -
INTERESTPAYMENTONDEBT (131,548) (67,682) (31,112) (230,342)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES (1418 (668,184) (1275,967) (2,692,027) (153,835)
CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF INVESTMENTS 2,669,266
PURCHASE OF INVESTMENTS (908,579)
INTEREST RECEIVED 53,895 21,084 21,660 13,744 110,384 259,881
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 53,895 21,084 21,660 13,744 110,384 2,020,568
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS -END OF YEAR
98,753 587,075 277,569 247,607 1,211,003 2,421,688
1,086,760 997,382 33,212 2,097,280 4,214,634 4,776,824
$ 1,185,512 $ 1,584,458 $ 310,781 $ 2,344,887 $ 5,425,638 $ 7,198,512
CASH AT END OF YEAR CONSISTS OF:
CASH AND CASH EQUIVALENTS $ 912,764 $ 1,457,624 $ 253,483 $ 2,307,990 $ 4,931,861 $ 7,198,512
RESTRICTED CASH -BOND PAYMENTS 266,713 126,834 36,897 430,444
RESTRICTED CASH- CUSTOMER DEPOSITS 6,035 - 57,297 - 63,332
TOTAL CASH $ 1,185,512 $ 1,584,458 $ 310,781 $ 2,344,887 $ 5,425,638 $ 7,198,512
The notes to the financial statements are an integral part of this statement.
44
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2012
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)
$ 680,568 $ 1,030,996 $ (274,062) $ 1,021,903 $ 2,459,406 $ 39,383
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 519,221 379,795 306,401 762,537 1,967,954 717,452
ASSET (INCREASES) DECREASES:
ACCOUNTS RECEIVABLE (15,905) (57,312) 2,888 (6,920) (77,248) -
MISCELLANEOUS NR-REVENUE 3,984 17,524 (22,584) (1,076) 5,412
INVENTORY 6,059 (806) 12,835 1,118 19206 (5,429)
LIABILITY INCREASES (DECREASES) :
ACCOUNTS & VOUCHERS PAYABLE
OTHER LIABILITIES PAYABLE
DEPOSITS PAYABLE
WAGES & BENEFITS PAYABLE
COMPENSATED ABSENCES PAYABLE
TOTAL ADJUSTMENTS
21,501 317,879 1,684 (120,319) 220,744
(10,828) (2,575) 129 72,346 59,073
(445) 96 - (349)
(48,973) (40,205) (76,219) 61,013 (104,384)
56,469 35,857 72,317 76,691 241,334
181,942
531,083 650,157 320,131 823,883 2,325,254 899,378
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 1,211,651 $ 1,681,154 $ 46,069 $ 1,845,787 $ 4,784,661 $ 938,763
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
CAPITAL ASSETS ACQUIRED BY CONTRIBUTED CAPITAL $ 3,550 $ 103,800 $ - $ 28,253 $ 135,603 $
INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT 3,475 - - 3,475
446,604
TOTAL NON CASH INVESTING, CAPITAL AND
FINANCING ACTMTIES '$ 7,025 $ 103,800 $ - $ 28,253 $ 139,078
The notes to the financial statements are an integral part of this statement.
45
446.604
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
46
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
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. The Firemen's Pension Trust Fund is accounted for on an
accrual basis.
Firemen's Pension Trust Fund
This fund accounts for the payment of administrative costs and benefits for retired
firefighters (and beneficiaries) who were employed prior to March 1, 1970. Primary
revenue sources are general property tax allocations, fire insurance premium tax,
and investment interest, in accordance with actuarial recommendations.
Agency Fund
This fund accounts for the funds over which the City is strictly a short -term
custodian.
47
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF FIDUCIARY NET POSITON
FIDUCIARY FUND
DECEMBER 31, 2012
FIREMEN'S ■Zill
PENSION AGENCY
TRUST FUND FUND
ASSETS:
CASH AND CASH EQUIVALENTS
TOTAL ASSETS
$
1,415,638 $ 32,030
1,415,638 32,030
LIABILITIES:
CURRENT PAYABLES
TOTAL LIABILITIES
32,030
32,030
NET POSITION:
HELD IN TRUST FOR PENSION BENEFITS AND OTHER PURPOSES $ 1,415,638 $
The notes to the financial statements are an integral part of this statement.
48
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUND
FOR THE YEAR ENDED DECEMBER 31, 2012
FIREMEN'S
PENSION
TRUST FUND
ADDITIONS:
OTHER CONTRIBUTIONS:
FIRE INSURANCE PREMIUM TAXES $ 52,249
INVESTMENT EARNINGS 2,770
TOTAL ADDITIONS 55,019
DEDUCTIONS:
BENEFIT PAYMENTS
ADMINISTRATIVE EXPENSES
60,288
1,150
TOTAL DEDUCTIONS 61,438
CHANGE IN NET POSITION (6,419)
NET POSITION - BEGINNING 1,422,057
NET POSITION - ENDING $ 1,415,638
The notes to the financial statements are an integral part of this statement.
49
CITY OF TUKWILA: 2012 CAFR BASIC FINANCIAL STATEMENTS
50
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2012
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Tukwila was incorporated on June 29, 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 council members, 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
discretely presented component unit is reported in a separate column in the government -wide financial
statements to emphasize that it is legally separate from the government.
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 15, Risk Management, for a discussion of the
Washington Cities Insurance Authority.
The City of Tukwila is a party to the following interlocal agreements;
• Cascade Water Alliance
• Jail Administration Group
• Valley Narcotics Enforcement Team
• Valley Special Weapons and Tactics Team
• Valley Civil Disturbance Unit
• Metropolitan Park District
• Regional Animal Services of King County
• City of Sea Tac Probation Services
• King County Reclaimed Water
• eCity.gov Alliance
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.
51
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
Discretely presented Component Unit
The 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 citizens 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 parks and recreation programs
within the City and the District. Financial data for the District is included in the City's financial
statements by discrete 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.
52
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
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
comprise its assets, liabilities, 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 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 is the general operating fund of the City. It accounts for all
financial resources and transactions except those required to be accounted for in
another fund.
• The Arterial Street Fund, a special revenue fund, is established in accordance with
RCW 82.36.020 for the administration of the State - levied motor vehicle half -cent
gasoline tax distributed to Tukwila.
• The Land Acquisition, Recreation and Park Development Fund is used to account for
financial resources to be used for the acquisition of land, development of land, and
construction of park facilities.
The other governmental funds of the City, which are Special Revenue Funds, account for the proceeds
of specific revenue sources that are segregated to ensure that expenditures are made exclusively for
qualified purposes.
Proprietary Funds
Proprietary 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.
53
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
Proprietary 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.
54
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
D. Measurement Focus
Government -wide Financial Statements
The government -wide financial statements are prepared using the economic resources measurement
focus. All assets and liabilities 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 and current liabilities 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 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 assets. 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 property, 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).
55
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 via the process of consolidation
from the government -wide financial statements. 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 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.
56
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 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 Environment 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, 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 of the funds with interest earned directly for the benefit of each
fund. Investments are reported on 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.
Due from Component Unit
The City has advanced funds to the Metropolitan Park District in the form of an operating loan. The
advance earns interest at 2% per annum and will be repaid over a 10 year period with the first payment
due June 1, 2013.
Notes Receivable
Notes receivable in the enterprise funds consists of sewer connection fees due from customers to the
utility.
57
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
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." All other outstanding balances between funds are reported as "due 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."
Interfund loans and advances between funds, as reported in the fund financial statements, are offset by
a fund balance reserve account in applicable governmental funds to indicate they are not available for
appropriation and are not expendable available financial resources. See Note 5 on interfund
transactions.
Inventories
Inventories carried in proprietary funds are valued at average cost using the consumption method. A
physical count is taken at year -end. Governmental funds use the purchase method whereby inventory
items are considered expenditures when purchased.
Deferred Charges
Unamortized debt issuance costs are those costs incurred for the issuance of long -term debt, such as
legal fees, printing costs and other costs. These costs are deferred and amortized over the lives of the
related issues.
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 -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.
58
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
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
Utility Plant 10 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 Long -Term Liabilities
These liabilities are current obligations that are due within one year and include accounts payable,
accrued liabilities, and other debts. The Self Insurance fund includes an incurred but not reported
(IBNR) liability of $655,300 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 IBR for claim fluctuations plus 1.5 x
IBNR for the IBNR liability of $1,638,250.
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 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 first-in- first-
out (FIFO) approach.
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, as well as issuance costs, are deferred and amortized over the life of
the bonds using the straight line method. Bonds payable are reported net of the applicable bond
premium or discount. Bond issuance costs are reported as deferred charges and amortized over the
term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, 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.
59
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
Fund Balance /Net Position
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 and liabilities. 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 not 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.
The City applies restricted resources first when an expense is incurred for purposes of which both
restricted and unrestricted net position is available. This is followed by committed resources, then
assigned, and lastly unassigned resources.
In 2011, the 2003 Limited General Obligation Bond debt obtained to finance the construction of the golf
course clubhouse was transferred from the Foster Golf Course fund to a governmental debt service
fund. This amount is excluded from the net investment in capital assets for the governmental activities.
It is included in the total for the net investment in capital assets calculation for the primary government.
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 (incurred but not reported) reserve. The
contingency reserve balance will be combined with the IBNR reserve balance and recorded as one
liability in each of the self- insured health care plan 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.
• 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.
60
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
• 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. For governmental funds, other than
the General Fund, this is the residual amount within the fund that is not restricted or committed.
• Unassigned fund balance is the residual amount of the General Fund 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 Legislature 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 following table illustrates the use of fund balance resources for governmental funds. 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.
General Fund
Nonspendable Restricted Committed Assigned Unassigned Total
Beginning Fund Balance $ $ - $ - $ $ 8,260,142 $ 8,260,142
Additions - 51,052,023 51,052,023
Expenditures (50,933,608) (50,933,608)
Ending Fund Balance $ - $ - $ $ $ 8,378,557 $ 8,378,557
Restricted-Committed-Assigned-Unassigned
Arterial Street
Nonspendable Restricted Committed Assigned Unassigned Total
Beginning Fund Balance $ - $2,696,537 $ - $4,232,859 $ - $ 6,929,396
Additions - 3,737,157 192,353 - 3,929,510
Expenditures - (6,038,939) (192,353) (4,144,283) - (10,375,575)
Ending Fund Balance $ - $ 394,755 $ $ 88,576 $ $ 483,331
Restricted - Committed - Assigned - Unassigned
Land Acquisition Recreation & Park Development
Nonspendable Restricted Committed Assigned Unassigned Total
Beginning Fund Balance $ - $ 88,487 $ - $1,339,485 $ $ 1,427,972
Additions 1,049,120 33,779 1,082,899
Expenditures (1,137,607) (33,779) (249,298) (1,420,684)
Ending Fund Balance $ - $ $ $1,090,188 $ - $ 1,090,188
Restricted - Committed - Assigned - Unassigned
61
CITY OF TUKWILA: 2012 CAFR
NOTES TO THE FINANCIAL STATEMENTS
Hotel Motel Tax
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ 787,568
1,393,197
(1,470,058)
$ -
-
-
$ -
-
-
$ -
-
-
$ 787,568
1,393,197
(1,470,058)
Ending Fund Balance $ -
$ 710,707
$ -
$ -
$ -
$ 710,707
Restricted - Committed - Assigned- Unassigned
Street
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ 903,937
266,340
(123,506)
$ -
-
-
$ -
-
-
$ -
-
-
$ 903,937
266,340
(123,506)
Ending Fund Balance $ -
$1,046,771
$ -
$ -
$ -
$ 1,046,771
Restricted - Committed - Assigned- Unassigned
Drug Seizure
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ 154,711
-
(69,586)
$ -
-
-
$ 75,000
-
-
$ -
-
-
$ 229,711
-
(69,586)
Ending Fund Balance $ -
$ 85,125
$ -
$ 75,000
$ -
$ 160,125
Restricted - Committed - Assigned - Unassigned
Debt Service Funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ -
-
-
$ -
-
-
$3,316,313
3,128,732
(3,432,664)
$ -
-
-
$ 3,316,313
3,128,732
(3,432,664)
Ending Fund Balance $ -
$ -
$ -
$3,012,381
$ -
$ 3,012,381
Restricted-Committed-Assigned-Unassigned
Facility Replacement
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ -
-
$ -
-
-
$2,027,014
3,752
(25,246)
$ -
-
-
$ 2,027,014
3,752
(25,246)
Ending Fund Balance $ -
$ -
$ -
$2,005,520
$ -
$ 2,005,520
Restricted - Committed - Assigned- Unassigned
General Government Improvement
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ 397,064
1,846,858
(2,079,610)
$ -
-
-
$ 211,549
537,969
-
$ -
-
-
$ 608,613
2,384,827
(2,079,610)
Ending Fund Balance $ -
$ 164,312
$ -
$ 749,518
$ -
$ 913,830
Restricted-Committed-Assigned-Unassigned
Fire Improvement
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
Beginning Fund Balance $ -
Additions -
Expenditures -
$ 313,819
34,191
-
$ -
-
-
$ -
-
-
$ -
-
-
$ 313,819
34,191
-
Ending Fund Balance $ -
$ 348,010
$ -
$ -
$ -
$ 348,010
Restricted - Committed - Assigned- Unassigned
62
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
Risk Management and Risk Retention
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. The WCIA is an organization of Washington municipal entities numbering 153 as of December
31, 2012. WCIA provides pooled self- insurance coverage for general liability, vehicle liability, false
arrest, and errors and omissions. See Note 15 for additional information on risk management.
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.
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 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.
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.
H. Changes in Accounting Standards
The City implemented the following Government Accounting Standards Board (GASB) statement in
2012:
GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in
Pre - November 30, 1989 FASB and AICPA Pronouncements. The objective of this Statement is to
incorporate into the GASB's authoritative literature certain accounting and financial reporting guidance
63
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
that is included in the following pronouncements issued on or before November 30, 1989, which does
not conflict with or contradict GASB pronouncements:
• Financial Accounting Standards Board (FASB) Statements and Interpretations
• Accounting Principles Board Opinions
• Accounting Research Bulletins of the American Institute of Certified Public Accountants'
(AICPA) Committee on Accounting Procedure.
GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources, and Net Position. The requirements of this Statement will improve financial reporting by
standardizing the presentation of deferred outflows of resources and deferred inflows of resources and
their effects on a government's net position. It alleviates uncertainty about reporting those financial
statement elements by providing guidance where none previously existed.
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.
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. As required by State law, all
investments of the City's funds are obligations of the U.S. Government, or deposits with Washington
State banks that participate in the Washington Public Deposit Protection Commission (WPDPC).
Cash and Cash Equivalents
At year -end, the carrying amount of the City's bank balance was $3,598,223. Of the bank balance,
$250,000 was covered by Federal depository insurance and the WPDPC insured the remainder. The
City also maintains imprest funds totaling $19,250. 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.
Deposits and Investments
The City's investment portfolio includes certificate of deposits insured by the Washington State Public
Depository Commission 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.
64
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
At December 31, 2012, the City had the following deposits and investments:
SCHEDULE OF INVESTMENTS BY MATURITY
Maturity Credit
Date Rating
Market Value
Certificates of Deposit:
US Bank 2/15/2013 * $ 3,450,000
Sound Community Bank 3/4/2014 * 3,074,090
Regal Bank 12/20/2014 * 250,000
Total Certificate of Deposits 6,774,090
Municipal Bonds:
Lodging Tax 7/1/2016 Aa3 / A+ 538,465
Revenue - Facilities 7/1/2017 Aal / AA+ 563,050
Limited General Obligation 12/1/2017 Aa3 / Al 607,134
Revenue - Facilities 7/1/2019 Aal / AA+ 585,195
Limited General Obligation 9/1/2020 Al 377,213
Unlimited General Obligation 12/1/2020 Aal / Aa3 1,334,487
Total Municipal Bonds 4,005,544
TOTAL INVESTMENTS $ 10,779,634
* No credit rating with certificate of deposit accounts; accounts are insured by the
Public Depository Protection Commission.
65
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
RECONCILIATION OF ALL CASH, DEPOSITS AND INVESTMENTS
AS REPORTED ON STATEMENT OF NET POSITION:
Cash and Cash Equivalents: $24,469,780
Investments 10,779,634
Current Assets Restricted:
Cash and cash equivalents 1,052,844
Total Cash, Cash Equivalents and Investments $36,302,258
SUMMARY BY TYPE:
Cash and Cash Equivalents:
Cash on hand
Cash in bank -book balance
Total cash and cash equivalents
Investments:
Certificates of deposit
Municipal bonds
Total investments
$ 19,250
25, 503, 374
25, 522, 624
6,774,090
4,005,545
10, 779, 634
Total Cash, Cash Equivalents, and Investments $36,302,258
Restricted Assets - Governmental
Bond Proceeds - General Govt Improvement
Impact Fees
Restricted Assets - Governmental
$ 164,312
394,755
$ 559,067
Restricted Assets - Business -Type
Customer Deposits -Water Utility
Customer Deposits -Golf Course
Lease Deposits -Golf Course
Revenue Bond Reserve Account - Water /Sewer /Surface Water
$ 6,035
42,298
15,000
430,444
Restricted Assets - Business -Type $ 493,777
Total Restricted Assets $ 1,052,844
66
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 '/2) years
or forty -two (42) months.
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, 2012, the City's investments in municipal bonds were rated Aal to Al by Moody's
Investor Service. The City currently maintains a rating of AA- with Fitch's Investor Service for its general
obligation debt and Al with Moody's Investor Service.
67
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
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.
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 taxes, sales and use tax, and gambling 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.
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.
Business -
Governmental Type
Activities Activities Total
Taxes Receivable
Property $ 317,035 $ - $ 317,035
Sales & Use 3,380,239 3,380,239
Admission /Gambling /Parking 743,484 - 743,484
Total Taxes Receivable 4,440,757 - 4,440,757
Customer Receivable
Utility Tax 590,383 - 590,383
Miscellaneous 472,230 1,196,224 1,668,454
Total Customer Receivable 1,062,613 1,196,224 2,258,837
Interest 44,798 33,105 77,903
Total Receivables $ 5,548,167 $ 1,229,329 $6,777,496
68
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
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
Februar' 14th
April 30t
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)
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 deferred revenue in the governmental
funds financial statements. The tax rate for general City operations is limited to $3.60 per $1,000 of
assessed value. Of this amount, up to $0.45 per thousand may be designated for contribution to the
Firemen's Pension Fund, if a report by a qualified actuary indicates that additional funds are required.
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.
The City's regular levy for 2012 was $2.95408 per $1,000 of assessed valuation of $4,649,191,308 for a
total regular levy of $13,705,220.
Intergovernmental Grants and Entitlements
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.
69
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
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.
There were no interfund loans outstanding at December 31, 2012. Interfund transfers were as follows:
SUMMARY OF INTERFUND TRANSFERS
Other Internal
Government and Internal General Government Service
Service Funds Fund Funds Funds Total
Transfers In
Transfers Out
Net Transfers In (Out)
$ 2,330,665 $ 5,295,127 $ - $ 7,625,792
(5,619,148) (555,210) (394,591) (6,568,949)
$(3,288,483) $ 4,739,917 $(394,591) $ 1,056,843
Proprietary Funds
Water /Sewer Surface Water Foster Golf
Utility Utility Course Total
Transfers In $ 98,460 $ - $ 225,000 $ 323,460
Transfers Out (964,357) (400,786) (15,160) (1,380,303)
Net Transfers In (Out) $ (865,897) $ (400,786) $ 209,840 $(1,056,843)
The principal purposes for interfund transfers include interfund subsidies and transfers into debt service
and capital projects funds.
70
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 6 — OPERATING LEASES
During 2012 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, copiers
and a fax machine during 2012. Costs associated with these activities are as follows.
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS
2012 2013 2014 2015 2016
Records Center 1
Neighborhood Resource Center 2
Seattle Southside Visitors Center
Postage Machines
Office Equipment
63,185
8,790
39,144
11,966
39,056
66,510
19,800
40,314
11,966
52,545
27,713
20,400
41,520
11,966
53,909
10,200
42,132
11,966
53,200
42,132
11,966
53,414
Total Lease Payments 162,141 191,135 155,508 117,498 107,512
1 Leasing of the Records Center expires on 5/31/2014. 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.
71
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 7 — CAPITAL ASSETS
Primary Government
Capital asset activity for the year ended December 31, 2012, was as follows:
GOVERNMENTAL ACTIVITIES
BEGINNING ENDING
BALANCE INCREASES DECREASES BALANCE
Governmental Activities
Capital assets, not being depreciated:
Land $ 39,459,061 $ $ 1,042,448 $ - $
Construction in Progress 39,453,817 10,023,011 (1,534,628)
Total capital assets,
not being depreciated 78,912,878 11,065,459 (1,534,628)
Capital assets, being depreciated:
Buildings
Other Improvements
Machinery and Equipment
Infrastructure
Intangible Assets
Total capital assets
being depreciated
Less accumulated depreciation for:
Buildings
Other Improvements
Machinery and Equipment
Infrastructure
Intangible Assets
Total accumulated depreciation
Total capital assets, being
depreciated, net
21,771,200 502,357
17,570,236 129,568
17,022,319 401,799
148,134,969 1,460,891
372,141 333,043
(431,810)
40,501,509
47,942,200
88,443,709
22,273,557
17,699,804
16,992,308
149,595,860
(99,422) 605,762
204,870,865
2,827,658
(9,539,205) (552,644)
(8,930,665) (825,631)
(10,497,033) (1,319,555)
(41,031,093) (4,475,169)
(85,430) (85,108)
(531,232) 207,167,290
- (10,091,849)
- (9,756,296)
421,807 (11,394,781)
(45,506,262)
75,368 (95,170)
(70,083,426)
134,787,439
(7,258,107)
(4,430,449)
497,175 (76,844,358)
(34,057) 130,322,932
Governmental activity capital assets, net $
213,700,317
$ 6,635,010 $
(1,568,685) $ 218,766,642
72
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
BUSINESS -TYPE ACTIVITIES
BEGINNING ENDING
BALANCE INCREASES DECREASES BALANCE
Business -type Activities
Capital assets, not being depreciated:
Land $ 2,214,118 $ - $ - $ 2,214,118
Construction in Progress 7,850,959 1,607,440 (1,863,034) 7,595,365
Total capital assets,
not being depreciated 10,065,077 1,607,440 (1,863,034) 9,809,483
Capital assets, being depreciated:
Buildings
Other Improvements
Machinery and Equipment
Intangible Assets
Total capital assets
being depreciated
11, 390, 601
69, 891,182
2,295,765
90,647
11, 390, 601
1,939,042 (1,009) 71, 829, 216
(512) 2,295,253
90,647
83, 668,195
1,939,042 (1,521) 85,605,717
Less accumulated depreciation for:
Buildings (2,986,840) (304,540) (3,291,381)
Other Improvements (25,702,935) (1,557,705) 937 (27,259,703)
Machinery and Equipment (1,608,009) (103,555) 512 (1,711,052)
Intangible Assets (32,480) (2,154) (34,635)
Total accumulated depreciation (30,330,265) (1,967,954) 1,449 (32,296,770)
Total capital assets, being
depreciated, net 53,337,930 (28,912) (72) 53,308,949
Business Type activity capital assets, net $ 63,403,007 $ 1,578,528 $ (1,863,106) $ 63,118,432
73
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
CAPITAL ASSET INCREASES
Governmental Activities
Capital Asset- Increases:
Capital Outlays
Capital Improvements
Developer Turnovers
Construction in Progress to Capital (Infrastructure)
Internal Service Funds (Equipment Rental)
$12,099,297
(5,868)
23,813
1,534,629
241,246
Capital Assets - Total Increases 13,893,117
Business -Type Activities
Capital Asset - Increases:
Capital Outlays
Developer Turnovers
Construction in Progress to Capital - Infrastructure
Capital Assets - Total Increases
$ 1,655,196
28,253
1,863,034
$ 3,546,484
74
$ 7,258,107
Total 2012 accumulated depreciation increases -
business-type activities $ 1,967,954
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
DEPRECIATION
Depreciation expense for 2012 was charged to
functions /programs as follows:
Governmental Activities:
General Government $ 149,282
Public Safety 346,061
Physical Environment 610,548
Transportation 4,501,922
Economic Environment 4,835
Culture and Recreation 842,899
Intangible Assets 85,108
Capital assets held by the government's internal
service funds are charged to the various functions
based on their usage of the assets 717,452
Total 2012 depreciation expense - governmental activities
Business -type Activities
Water Utility - Depreciation
Sewer Utility - Depreciation
Foster Golf Course - Depreciation
Surface Water Utility - Depreciation
$ 519,221
379,795
306,401
762,537
75
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 8 — JOINT VENTURES
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, with Federal Way 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 2012 cost distribution for the five participating cities is as follows:
City
Dispatchable Calls
Percent of Total
Renton
72,004
21.18%
Kent
96,126
28.28%
Auburn
65,612
19.30%
Tukwila
33,645
9.90%
Federal Way
72,547
21.34%
Total
339,934
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.
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.
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CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
The share of equity belonging to the five participating cities is as follows:
ITEM
FEDERAL
RENTON KENT AUBURN TUKWILA WAY TOTAL
Equity January 1, 2012 $4,996,753 $7,052,093 $4,723,727 $2,812,717 $3,258,408 $22,843,698
Current Year Increase /(Decrease 65,681 87,685 59,850 30,690 66,176 310,082
Equity December 31, 2012 $5,062,434 $7,139,778 $4,783,577 $2,843,407 $3,324,584 $23,153,780
Percent of Equity
21.86% 30.84% 20.66% 12.28% 14.36% 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 subregions 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 subregion'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 subregion or
consortium of subregions. 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.
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 in the Agreement.
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
77
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 will be
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 and secured by the full faith and credit of the Cities of Auburn, Burien,
Federal Way, Renton, SeaTac, and Tukwila (the "Owner Cities "). The SCORE PDA issued $86 million in
special obligation bonds in 2009 to carry out the facility development project. The following is a summary
of the debt service requirements for the bond issue:
SUMMARY OF DEBT SERVICE REQUIREMENTS
Debt Service Schedule Debt Service Allocation to Owner Cities
35% BABs Auburn Burien Federal Way Renton SeaTac Tukwila
Year Principal Interest Subsidy Total 31% 4% 18% 36% 3% 8%
2013 $ 1,915,000 $ 5,126,998 $ (1,675,089) $ 5,366,909 $ 1,663,742 $ 214,676 $ 966,044 $ 1,932,087 $ 161,007 $ 429,353
2014 1,950,000 5,066,566 (1,654,975) 5,361,591 1,662,093 214,464 965,087 1,930,173 160,848 428,927
2015 1,990,000 4,995,069 (1,632,787) 5,352,282 1,659,207 214,091 963,411 1,926,822 160,568 428,183
2016 2,065,000 4,911,886 (1,632,787) 5,344,099 1,656,671 213,764 961,938 1,923,876 160,323 427,528
2017 2,145,000 4,820,241 (1,621,980) 5,343,261 1,656,411 213,730 961,787 1,923,574 160,298 427,461
2018 -2022 11,990,000 22,399,915 (7,748,350) 26,641,565 8,258,885 1,065,663 4,795,482 9,590,963 799,247 2,131,325
2023 -2027 14,485,000 18,727,798 (6,710,481) 26,502,317 8,215,718 1,060,093 4,770,417 9,540,834 795,070 2,120,185
2028 -2032 17,725,000 13,590,870 (4,959,695) 26,356,175 8,170,414 1,054,247 4,744,112 9,488,223 790,685 2,108,494
2033 -2037 21,855,000 7,082,263 (2,731,829) 26,205,434 8,123,685 1,048,217 4,716,978 9,433,956 786,163 2,096,435
2038 -2039 10,115,000 676,321 (353,824) 10,437,497 3,235,624 417,500 1,878,749 3,757,499 313,125 835,000
Totals $86,235,000 $87,397,927 $ (30,721,797) $ 142,911,130 $44,302,450 $ 5,716,445 $25,724,004 $51,448,007 $4,287,334 $11,432,891
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 share of equity belonging to the six
participating cities is as follows:
ITEM
FEDERAL
AUBURN BURIEN WAY RENTON SEATAC TUKWILA TOTAL
Equity January 1, 2012 $3,189,320 $411,525 $1,851,863 $3,703,728 $308,643 $823,050 $10,288,129
Current Year Increase /(Decrease) (1,820,461) (234,898) (1,057,043) (2,114,084) (176,174) (469,796) (5,872,456)
Equity December 31, 2012 $1,368,859 $176,627 $ 794,820 $1,589,644 $132,469 $353,254 $ 4,415,673
Percent of Equity 31.00% 4.00% 18.00% 36.00% 3.00% 8.00% 100.00%
Note: Interest is to be paid from bond proceeds during the construction period (2010- 2011).
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 $6,898,800. 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.
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CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 9 — PENSION PLANS
Washington State Department of Retirement Systems
Substantially all of the City's 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, PO Box 48380,
Olympia, WA 98504 -8380; or it may be downloaded from the DRS website at
www.drs.wa.gov/ administration /annual- report/cafr /. The following disclosures are made pursuant to
GASB Statements No. 27, Accounting for Pensions by State and Local Government Employers and No.
50, Pension Disclosures, an Amendment of GASB Statements No. 25 and No. 27.
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 ( other than judges currently in the
Judicial Retirement System); employees of legislative committees; community and technical colleges,
college and university employees not participating in higher education retirement programs; employees of
district and municipal courts; and employees of local governments. Approximately 50 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
PERS Plan 3. Notwithstanding, PERS Plan 2 and Plan 3 members may opt out of plan membership if
terminally ill, with less than five years to live.
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 PIan2 and Plan 3 are accounted
for in the same pension trust fund. All assets of this Plan 2/3 defined benefit plan 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 2012,
the rate was five and on -half percent compounded quarterly. Members in PERS Plan 1 and Plan 2 can
79
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
elect to withdraw total employee contributions and interest thereon upon separation from PERS- covered
employment.
PERS Plan 1 members are vested after the completion of five years of eligible service.
Plan 1 members are eligible for retirement after 30 years of service, or at the age of 60 with five years of
service, or at the age of 55 with 25 years of service. 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.
The monthly benefit is subject to a minimum for retirees who have 25 years of service and have been
retired 20 years, or who have 20 years of service and have been retired 25 years. If a survivor option is
chosen, the benefit is reduced. 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 1 members can receive credit for military service while actively serving in the military if such
credit makes them eligible to retire. Members can also purchase up to 24 months of service credit lost
because of an on- the -job injury.
The survivor of a PERS Plan 1 member who dies after having earned ten years of service credit has the
option, upon the member's death, of either a monthly survivor benefit or the lump sum of contributions
plus interest.
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:
• With a benefit that is reduced by three percent for each year before age 65.
• With a benefit that has a smaller (or no) reduction (depending on age) that
imposes stricter return -to -work rules.
80
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
PERS Plan 2 retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor
option. The surviving spouse or eligible child(ren) of a PERS Plan 2 member who dies after having
earned ten years of service credit has the option of either a monthly benefit or lump sum payment of the
member's contributions plus interest. 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 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. 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 investments are made in the same portfolio as that of PERS 2/3 defined benefit plan.
For DRS' fiscal year 2012, PERS Plan 3 employee contributions were $95.2 million, and plan refunds
paid out were $66.2 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:
• 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, 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.
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 Plan 2 and Plan 3 member may have up to ten years of interruptive military service credit; five
years at no cost and five years that may be purchased by paying the required contributions.
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CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
PERS Plan 2 and Plan 3 members who become totally incapacitated for continued employment while
serving the uniformed services, or a surviving spouse or eligible child(ren), may request interruptive
military service credit.
PERS Plan 2 and Plan 3 members can also purchase up to 24 months of service credit lost because of
an on- the -job injury.
PERS members may also purchase up to five years of additional service credit once eligible for
retirement. This credit can only be purchased at the time of retirement and can be used only to provide
the member with a monthly annuity that is paid in addition to the member's retirement benefit.
Beneficiaries of a PERS Plan 2 or Plan 3 member with ten years of service who is killed in the course of
employment receive retirement benefits without actuarial reduction. This provision applies to any member
killed in the course of employment, on or after June 10, 2004, if found eligible by the Director of the
Department of Labor and Industries.
A one -time duty - related death benefit is provided to the estate (or duly designated nominee) of a PERS
member who dies in the line of service as a result of injuries sustained in the course of employment, or if
the death resulted from an occupational disease or infection that arose naturally and proximately out of
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.
Members who chose to participate would: accrue service credit at the higher multiplier beginning with the
date of their election; be subject to the benefit cap of 75 percent of AFC; stop contributing to the Judicial
Retirement Account (JRA); pay higher contributions; and be given the option to increase the multiplier on
past judicial service. Members who did not choose to participate would: continue to accrue service credit
at the regular multiplier; not be subject to a benefit cap; continue to participate in JRA, if applicable;
continue to pay contributions at the regular PERS rate; and never be a participant in the JBM Program.
Newly elected or appointed justices and judges who choose 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. Members required into the JBM program would: return to prior PERS Plan if
membership had previously been established; be mandated into Plan 2 and not have a Plan 3 transfer
choice, if a new PERS member; accrue the higher multiplier for all judicial service; not contribute to JRA;
and not have the option to increase the multiplier for past judicial service.
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CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
There are 1,184 participating employers in PERS. Membership in PERS consisted of the following as of
the latest actuarial valuation date for the plans of June 30, 2011:
Type of Membership Membership
Retirees and Beneficiaries Receiving Benefits 79,363
Terminated Plan Members Entitled to but not yet Receiving Benefits 29,925
Active Plan Members Vested 105,578
Active Plan Members Non - vested 46,839
Total 261,705
Funding Policy
Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates, Plan 2
employer and employee contribution rates, and 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. All employers are
required to contribute at the level established by the Legislature. Under PERS Plan 3, employer
contributions finance the defined benefit portion of the plan, and member contributions finance the
defined contribution portion. The Director of the Department of Retirement Systems sets Plan 3 employee
contribution rates. Six rate options are available ranging from 5 to 15 percent; two of the options are
graduated rates dependent on the employee's age. 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 covered payroll as of December 31, 2011,
are as follows:
Members Not Participating in JBM:
PERS Plan 1
Employer*
Employee
PERS Plan 11 PERS Plan 111
7.21% 7.21%
6.00% 4.64%
7.21% **
Minimum 5% to
maximum 15%
* The employer rates include the employer administrative expense fee currently set at 0.16%.
** Plan 3 defined benefit portion only.
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CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
Both the City and the employees made the required contributions. The City's contributions to PERS for
the years ended December 31 were as follows:
PERS Plan I
PERS Plan 11 PERS Plan III
2012 $ - $ 902,516 $ 144,456
2011 2,078 753,456 113,753
2010 3,494 640,034 98,350
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF)
Plan Description
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. Membership in the system includes all full -time,
fully compensated, local law enforcement commissioned officers, firefighters and, as of July 24, 2005,
those emergency medical technicians who were given the option and chose LEOFF Plan 2 membership.
LEOFF membership is comprised primarily of non -state employees, with Department of Fish and Wildlife
enforcement officers, who were first included prospectively effective July 27, 2003, being an exception.
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 for the LEOFF Plan 2 retirement plan.
LEOFF defined benefit 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
state legislative appropriations. LEOFF retirement benefit provisions are established in Chapter 41.26
RCW and may be amended only by the State Legislature.
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 eligible spouse, 50 percent of the FAS, plus 5 percent of FAS for
each eligible surviving child, with a limitation on the combined allowances of 60 percent of the FAS; or (2)
If 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.
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CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
A one -time duty - related death benefit is provided to the estate (or duly designated nominee) of a LEOFF
Plan 1 member who dies as a result of injuries or illness sustained in the course of 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 allowance or service retirement allowance.
LEOFF Plan 1 members may purchase up to five years of additional service credit once eligible for
retirement. This credit can only be purchased at the time of retirement and can be used only to provide
the member with a monthly annuity that is paid in addition to the member's allowance.
LEOFF Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members
may retire at the age of 50 with 20 years of service, or at the age of 53 with five years of service, with an
allowance of two percent of the FAS per year of service. (FAS is based on the highest consecutive 60
months.) Plan 2 members who retire prior to the age of 53 receive reduced benefits. Benefits are
actuarially reduced for each year that the benefit commences prior to age 53 and to reflect the choice of a
survivor option. 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 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 allowance amount is two percent of the FAS for each year of service. Benefits are
actuarially reduced for each year that the member's age is less than 53, unless the disability is duty -
related, and to reflect the choice of a survivor option. 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 catastrophic 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 severely 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 premiums.
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 allowance 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,
chose membership in that system and suspend their pension benefits, or not choose membership and
continue receiving pension benefits without interruption.
LEOFF Plan 2 members who apply for retirement may purchase up to five years of additional service
credit. The cost of this credit is the actuarial equivalent of the resulting increase in the member's benefit
LEOFF Plan 2 members can purchase service credit for military service that interrupts employment.
Additionally, LEOFF Plan 2 members who become totally incapacitated for continued employment while
servicing in the uniformed services may apply for interruptive military service credit. Should any such
member die during this active duty, the member /s surviving spouse or eligible child(ren) may purchase
service credit on behalf of the deceased member.
LEOFF Plan 2 members may also purchase up to 24 consecutive months of service credit for each period
of temporary duty disability.
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CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
Beneficiaries of a LEOFF Plan 2 member who is killed in the course of employment receive retirement
benefits without actuarial reduction, if found eligible by the Director of 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 on -going health care insurance premiums paid to the
Washington State Health Care Authority.
A one -time duty - related death benefit is provided to the estate (or duly designated nominee) of a LEOFF
Plan 2 member who dies as a result of injuries or illness sustained in the course of employment, if found
eligible by the Department of Labor and Industries.
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, 2011:
Type of Membership Membership
Retirees and Beneficiaries Receiving Benefits 9,947
Terminated Plan Members Entitled to but not yet Receiving Benefits 656
Active Plan Members Vested 13,942
Active Plan Members Non - vested 3,113
Total 27,658
Funding Policy
Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent as long as the
plan remains fully funded. Employer and employee contribution rates are developed by the Office of the
State Actuary to fully fund the plan. LEOFF Plan 2 employers and employees are required to pay at the
level adopted by the LEOFF Plan 2 Retirement Board. All employers are required to contribute at the
level required by state law. The Legislature, by means of a special funding arrangement, appropriated
money from the state General Fund to supplement the current service liability and fund the prior service
costs of LEOFF Plan 2 in accordance with the requirements of the Pension Funding Council and the
LEOFF Plan 2 Retirement Board. However, this special funding situation is not mandated by the state
constitution and this funding requirement could be returned to the employers by a change of statute.
The required contribution rates expressed as a percentage of covered payroll as of December 31, 2012
are as follows:
LEOFF Plan I LEOFF Plan 11
Employer 0.16% 5.24%
Employee 0.00% 8.46%
Both the City and the employees made the required contributions. The City's required contributions to
the LEOFF system for the years ended December 31 are as follows:
LEOFF Plan I LEOFF Plan 11
2012 $ 410 $ 691,175
2011 489 654,131
2010 714 640,494
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CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
Public Safety Employee's Retirement System (PSERS) Plan 2
Plan Description
PSERS is a cost - sharing multiple - employer retirement system comprised of a single defined benefit
plan, PSERS Plan 2. PSERS was created by the 2004 legislature and became effective July 1, 2006.
PSERS Plan 2 membership includes full -time employees of a covered employer on or 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 those full -time employees, hired on or after July 1,
2006 by a covered employer, that meet at least one of the PSERS eligibility criteria.
A covered employer is one that participates in PSERS. Covered employers include the following: state of
Washington agencies: Department of Corrections, Department of Natural Resources, Parks and
Recreation Commission, Gambling Commission, Washington State Patrol, and Liquor Control Broad;
Washington State counties; and Washington State cities except for Seattle, Tacoma and Spokane.
To be eligible for PSERS, an employee must work on a full -time basis and have one of the following:
• 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.
• Primary responsibility to ensure the custody and security of incarcerated or probationary
individuals.
• Limited authority to function as a Washington peace officer, as defined in RCW 10.93.020.
• Primary responsibility to supervise eligible members who meet the above criteria.
PSERS defined benefit retirement benefits are financed from a combination of investment earnings and
employer and employee contributions. PSERS retirement benefit provisions are established in Chapter
41.37 RCW and may be amended only by the State Legislature.
PSERS Plan 2 members are vested after the completion of five years of eligible service. PSERS Plan 2
members may retire 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, with an allowance of two percent of the average final compensation (AFC) per
year of service. The AFC is the monthly average of the member's 60 consecutive highest -paid service
credit months, excluding any severance pay such as lump -sum payments for deferred sick leave,
vacation or annual leave. Plan 2 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. 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 Plan 2 provides disability benefits. There is no minimum amount of service credit required for
eligibility. Eligibility is based on the member being totally incapacitated for continued employment with a
PSERS employer and leaving that employment as a result of the disability. The disability allowance is
two percent of the average final compensation (AFC) for each year of service. AFC is based on the
member's 60 consecutive highest creditable months of service. Service credit is the total years and
months of service credit at the time the member separates from employment. 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).
PSERS Plan 2 members can purchase service credit for military service that interrupts employment.
Additionally, PSERS members who become totally incapacitated for continued employment while
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CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
serving in the uniformed services, may apply for interruptive military service credit. Should any such
member die during this active duty, the member's surviving spouse or eligible child(ren) may purchase
service credit on behalf of the deceased member.
PSERS members may also purchase up to 24 consecutive months of service credit for each period of
temporary duty disability.
Beneficiaries of a PSERS Plan 2 member with ten years of service who is killed in the course of
employment receive retirement benefits without actuarial reduction, if the member was not at normal
retirement age at death. This provision applies to any member killed in the course of employment, if
found eligible by the Director of the Department of Labor and Industries.
There are 76 participating employers in PSERS. Membership in PSERS consisted of the following as of
the latest actuarial valuation date for the plan of June 30, 2011:
Type of Membership Membership
Retirees and Beneficiaries Receiving Benefits 15
Terminated Plan Members Entitled to but not yet Receiving Benefits 1
Active Plan Members Vested 167
Active Plan Members Non - vested 4,020
Total 4,203
Funding Policy
Each biennium, the state Pension Funding Council adopts PSERS 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. All employers are required to contribute at the level established
by the Legislature. 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 covered payroll as of December 31, 2012
are as follows:
Employer
Employee
PSERS Plan 11
8.887%
6.36%
Both the City and the employees made the required contributions. The City's required contributions to
the LEOFF system for the years ended December 31 are as follows:
PSERS Plan II
2012 $ 11,187
2011 8,712
2010
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CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
Firemen's Pension System
Plan Description
The City is the administrator of the Firemen's Pension Plan which is a closed, single - employer, defined
benefit pension plan that was established in conformance with RCW Chapter 41.18. This plan provides
retirement and disability benefits, annual cost -of- living adjustments, and death benefits to plan members
and beneficiaries. Membership is limited to fire fighters employed prior to March 1, 1970 when the LEOFF
retirement system was established. The City's obligation under the Firemen's Pension Plan consists of
paying all benefits, including payments to beneficiaries, for fire fighters who retired prior to March 1, 1970
and excess benefits over LEOFF for covered fire fighters who retired after March 1, 1970. Benefits and
refunds of the defined benefit pension plan are recognized when due and payable in accordance with the
Plan. The Plan does not issue a separate financial report.
Membership of the Firemen's Pension Plan consisted of the following at December 31, 2012.
Type of Membership Total
Retirees and beneficiaries receiving benefits 9
Retirees currently receiving full retirement benefits through the
Law Enforcement Officers and Fire Fighters Retirement Plan (LEOFF) 2
Total 11
Funding Policy
Under State law, the Firemen's Pension Plan is provided an allocation of all monies received by the State
from taxes on fire insurance premiums; interest earnings; member contributions made prior to the
inception of LEOFF; and City contributions required to meet projected future pension obligations. An
actuarial valuation was completed as of January 1, 2011 and it was determined that current assets of the
fund, along with future revenues from state fire insurance taxes and interest earnings, will be sufficient to
pay all future Firemen's Pension Plan pension benefits. In 2012 $52,249 was received from the state
from taxes on fire insurance premiums. On- behalf payments of fringe benefits and salaries for the City's
employees were recognized as revenues and expenditures /expenses during the period. Costs to
administer the plan are paid for through investment earnings and General Fund resources. The Actuarial
Valuation of Firefighters' Pension Fund table is reported in the Required Supplemental Information
section, and a recap of the Schedule of Funding Progress is as follows:
PENSION SCHEDULE OF FUNDING PROGRESS
Actuarial Unfunded Actuarial UAAL as a
Actuarial Actuarial Value Accrued Accrued Liabilities Percentage of
Valuation Date of Assets Liabilities (UAAL) Funded Ratio Covered Payroll Covered Payroll
January 1, 2000 $1,076 $1,243 $167 87% $112 149%
January 1, 2003 1,215 1,135 (80) 107 0 N/A
January 1, 2005 1,265 1,182 (83) 107 0 N/A
January 1, 2007 1,336 1,310 (26) 102 0 N/A
January 1, 2009 1,445 1,610 165 90 442 37
January 1, 2011 1,430 1,582 152 90 371 41
The Firemen's Pension Plan does not issue a stand -alone financial report and is not included in another
Public Employee Retirement System or another entity. Biennially a complete actuarial valuation financial
report, including an accounting update for intervening years, is prepared by Milliman USA, Incorporated.
This report is available from the City of Tukwila.
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CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
Basis of Accounting
The financial statements are prepared using the accrual basis of accounting. Benefits are recognized
when due and payable in accordance with the plan.
ANNUAL PENSION COST AND NET PENSION OBLIGATION
2010 2011 2012
1 Annual normal cost (BOY) $ - $ - $
2 Amortization of UAAL (BOY) 11,185 11,523 11,523
3 Interest to EOY (1 + 2 x i *) 391 461 461
4 ARC at EOY (1 + 2 + 3) 11,576 11,984 11,984
5 Interest on NPO
6 Adjustment to ARC
7 Annual Pension cost
8 Employer contributions **
9 Change in NPO
10 NPO at BOY
(4 + 5 - 6)
(9,057)
(18,236)
20,755
46,989
(11,400)
(21,647)
22,231
(12, 393)
(24,488)
24,079
47,065 50,599
(7- 8) (26,234) (24,834) (26,520)
(11 prior yr) (258,764) (284,998) (309,832)
11 NPO at EOY (9 + 10) $ (284,998) $ (309,832) $ (336,352)
* (i) is the assumed interest rate that year: 3.5% in 2010, 4.0% in 2011, and 4.00% in 2012.
** Employer contributions for pensions are total contributions to the Fund net of disbursements from the Fund for medical
expenses under RCW 41.26.150 and administrative expenses.
The Annual Required Contribution (ARC) was computed using the Entry Age Normal Cost Method.
Under this method, the projected benefits are allocated on a level basis as a percentage of salary over
the earnings of each individual between entry age and exit age. The amount allocated to each year is
called the Normal Cost and the portion of the Actuarial Present Value of all benefits not provided for by
future Normal Cost payments is called the Actuarial Accrued Liability. Since all members have already
retired, the amount of the Normal Cost is zero. The Unfunded Actuarial Accrued Liability (UAAL) is the
Actuarial Accrued Liability minus the actuarial value of the Fund's assets.
ANNUAL DEVELOPMENT OF PENSION COST
Interest on Total Change in
Fiscal Annual Net Annual Employer Net Net Pension Amortization-- -
Year Required Pension ARC Pension Contri- Pension Obligation (Gain)/ (Gain)/ Ending
Ended Contribution Obligation Adjustment Cost butions Obligation Balance Loss Factor Loss Balance
2010 11,576 (9,057) (18,236) 20,755 46,989 (26,234) (284,998) (35,413) 14.1897 (18,236) (284,998)
2011 11,984 (11,400) (21,647) 22,231 47,065 (24,834) (309,832) (35,081) 13.1657 (21,647) (309,832)
2012 11,984 (12,393) (24,488) 24,079 50,599 (26,520) (336,352) (38,615) 12.6523 (24,488) (336,352)
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CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
PERCENTAGE OF ANNUAL PENSION COST CONTRIBUTED
Fiscal Year Ending
Annual Contribution as a* Net Pension
Pension Cost Percentage of Obligation
(APC) APC (Asset)
December 21, 2010
December 21, 2011
December 21, 2012
20,755
22,231
24,079
226
212
210
* In years with a negative APC, this percentage is not applicable.
(284, 998)
(309, 832)
(336, 352)
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, 2011 valuation were:
Actuarial Valuations
Actuarial valuation date
Actuarial cost method
Amortization Method
Remaining amortization period
Asset valuation method
Assumptions
January 1, 2012
Entry Age Normal
30 -year, closed as of January 1, 1999
18 years
Fair market value
Investment rate of return
Projected salary increases
Price inflation
Cost -of- living adjustments
3.75%
3.50%
2.50%
Based upon salary increase assumption
when appropriate, for FPF benefits.*
Based upon inflation assumption for some
FPF benefits and all LEOFF benefits.
* 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
The Schedule of Funding progress, presented as required supplementary information following the notes
of the financial statements, presents multiyear trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. The
Schedule of Employer Contributions is also included as required supplementary information following the
notes to the financial statements.
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CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 10 — OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLAN
Plan Description
The City is the administrator of the Retiree Medical and Long -Term Care Benefits for LEOFF 1
Employees Plan which is a closed, single - employer, defined benefit, other post - employment benefit plan
(OPEB). The benefits are authorized under state statute, RCW Chapters 41.16 and 41.18 and 41.26 and
may be amended by the state legislature. This plan provides medical, dental and long -term care benefits
to eligible retirees. Membership is limited to eligible law enforcement officers and fire fighters hired prior
to the March 1, 1970 establishment of LEOFF, as well as eligible members of LEOFF hired prior to
October 1, 1977. Financial reporting for the LEOFF retiree healthcare plan is included in the City's
Comprehensive Annual Financial Report. Triennially, a complete actuarial valuation financial report is
prepared by Milliman USA, Incorporated. This report is available from the City.
Membership
As of December 31, 2012, there were 3 active employees and 38 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. The employee or retiree is not
required to contribute to the cost of the plan. The annual contribution represents the cost of employer -
paid benefits.
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
2010
2011 2012
1 Annual normal cost (BOY)
2 Amortization of UAAL (BOY)
3 Interest to EOY
4 ARC at EOY
5 Interest on Net OPEB Obligation
6 Adjustment to ARC
7 Annual OPEB cost
(1 + 2 x i *)
(1 + 2 + 3)
(4 + 5 - 6)
$ 105,058 $ 91,385 $ 91,385
1,196,165 1,124, 502 1,124, 502
65,061 48,635 48,635
1,366,284
90,941
143,332
1,264,522 1,264,522
112,598
213,809
145,727
287,945
1,313,893
1,163, 311 1,122, 304
8 Employer contributions 317,771 335,090 332,141
9 Change in Net OPEB Obligation (7- 8) 996,122 828,221 790,163
10 Net OPEB Obligation at BOY (11 prior yr) 1,818,820 2,814,942 3,643,163
11 Net OPEB Obligation at EOY (9 + 10) $ 2,814,942 $ 3,643,163 $ 4,433,326
* (i) is the assumed interest rate that year: 5% in 2009, 4% in 2011, and 4% in 2012.
The net OPEB obligation of $4,433,326 is included as a non - current liability on the Statement of Net
Position.
92
Total
Fiscal Annual Interest on Employer Change in Net OPEB Amortization-- -
Year Required Net OPEB ARC Annual Contri- Net OPEB Obligation (Gain)/ (Gain)/ Ending
Ended Contribution Obligation Adjustment OPEB Cost butions Obligation Balance Loss Factor * Loss Balance
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
ANNUAL DEVELOPMENT OF OPEB COST
2008 $ 1,366,284 $ $ $1,366,284 $ 557,103 $ 809,181 $ 809,181 $ 809,181 13.4622 $ - $ 809,181
2009 1,366,284 40,459 61,839 1,344,904 335,265 1,009,639 1,818,820 1,031,019 13.0853 61,839 1,818,820
2010 1,366,284 90,941 143,332 1,313,893 317,771 996,122 2,814,942 1,048,513 12.6896 143,332 2,814,942
2011 1,264,522 112,598 213,809 1,163,311 335,090 828,221 3,643,163 929,432 13.1657 213,809 3,643,163
2012 1,264,522 145,727 287,945 1,122,304 332,141 790,163 4,433,326 932,381 12.6523 287,945 4,433,326
* Based on a 21 -year closed amortization as of January 1, 2008
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 Net OPEB
Cost Contribution Cost Contributed Obligation
December21, 2010 1,313,893 317,771 24 2,814,942
December21, 2011 1,163,311 335,090 29 3,643,163
December 21, 2012 1,122, 304 332,141 30 4,433,326
Funded Status and Funding Progress
As of January 1, 2011, the most recent actuarial valuation date, the plan was 0% funded. The actuarial
accrued liability for benefits was $14.8 million, and the actuarial value of assets was $0, resulting in an
unfunded actuarial accrued liability (UAAL) of $14.8 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 Unfunded Actuarial UAAL as a
Actuarial Value Accrued Accrued Liabilities Percentage of
Valuation Date of Assets Liabilities (UAAL) Funded Ratio Covered Payroll Covered Payroll
January 1, 2008 $0 $16,103 $16,103 0% $581 4%
January 1, 2011 0 14,805 14,805 0% 371 3
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. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared with past expectations and new estimates are made
about the future.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the
time of each valuation. 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
93
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
value of assets, consistent with the long -term perspective of the calculations. Significant methods and
assumptions were as follows:
Actuarial Valuations
Valuation date
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
January 1, 2011
Entry Age Normal
21 -year, closed as of January 1, 2008
18 years
Fair market value
Assumptions
Investment rate of return
Medical inflation
Long -term care inflation
4.00%
Year Medical Cost Rate
2011 7.80%
2012 7.10%
2013 6.50%
2014 -2019 5.90%
2020 -2030 5.80%
2031 -2036 5.70%
4.75%
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.
94
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 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:
• 2003 Limited Tax General Obligation (LTGO) bonds were issued as payment to King County for
Arterial Street projects including South Park Bridge transfer and for construction of a new golf
course clubhouse. In December 2011, this fund assumed the Golf Course portion of this debt
and the Arterial Street portion was refunded.
• 2003 LTGO refunding bonds were issued to refund the remaining debt of the 1994 LTGO bonds.
1994 LTGO bonds were issued to pay for the Community Center and Fire Station #53.
• 2008 LTGO bonds were issued to refund the remaining debt the 1999 LTGO bonds. 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.
95
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
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, unamortized debt issue costs are recorded as deferred charges and bonds are displayed net of
premium or discount; annual interest expense is decreased by amortization of debt premium and
increased by the amortization of debt issue costs and discount. The City currently maintains a rating of
Aaa from Moody's Investor Service for debt in this category.
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, 2012.
CHANGES IN LONG -TERM LIABILITIES SUMMARY
REVENUE PUBLIC WORKS DUE TO
GENERAL BONDS TRUST FUND COMPENSATED OTHER CAPITAL
OBLIGATION UTILTIES LOANS ABSENCES GOVERNMENTS LEASES TOTAL
Outstanding 01/01/2012 $20,260,000 $3,980,000 $7,179,635 $3,260,355 $7,746,800 $35,891 $42,462,681
Added - 2,871,748 2,871,748
Retired / redeemed (1,900,000) (440,000) (558,271) (2,679,160) (354,200) (35,891) (5,967,522)
Outstanding 12/31/2012 $18,360,000 $3,540,000 $6,621,364 $3,452,943 7,392,600 $ - 39,366,907
Add: Premium net of deferred charges 274,852
Total Long -Term Liabilities $39,641,758
96
CITY OF TUKWILA: 2012 CAFR
NOTES TO THE FINANCIAL STATEMENTS
Debt Service to Maturity
Following is a schedule showing the debt service requirements to maturity for the City's long -term debt,
excluding compensated absences.
2013
2014
2015
2016
2017
2018 - 2022
2023 - 2027
2028 - 2032
2033 - 2037
2038 - 2042
Totals
$ 1,890,000 $ 804.337
2,040, 000 728,137
1,645,000 635,872
1,710,000 574,007
1,765,000 512,213
7,175,000 1,388, 590
2,135, 000 125,031
$ 371,000 $ 431,205
371,200 416,886
385,200 401,751
171,600 385,619
179,200 377,278
994,800 1,741,759
1,204,800 1,424,774
1,478,000 992,274
1,823,600 448,419
413.200 13.669
$ 3,496,542
3,556223
3,067,823
2,841,226
2,833,691
11, 300,149
4,889,605
2,470,274
2,272,019
426.869
$ 37.154,420
$ 18,360,000
S 4,768,186
$ 7.392,600
$ 6.633,634
Year Ended
December
31
Government Activities
Year Ended
December
31
General Obligation
Bonds
Due to Other Governments
TOTAL
Principal Interest
Principal Interest
2013
2014
2015
2016
2017
2018 - 2022
2023 - 2027
2028 - 2032
2033 - 2037
2038 - 2042
Totals
$ 1,890,000 $ 804.337
2,040, 000 728,137
1,645,000 635,872
1,710,000 574,007
1,765,000 512,213
7,175,000 1,388, 590
2,135, 000 125,031
$ 371,000 $ 431,205
371,200 416,886
385,200 401,751
171,600 385,619
179,200 377,278
994,800 1,741,759
1,204,800 1,424,774
1,478,000 992,274
1,823,600 448,419
413.200 13.669
$ 3,496,542
3,556223
3,067,823
2,841,226
2,833,691
11, 300,149
4,889,605
2,470,274
2,272,019
426.869
$ 37.154,420
$ 18,360,000
S 4,768,186
$ 7.392,600
$ 6.633,634
Year Ended
December
31
Business-Type Activities
Revenue Bonds
Public Works Trust Fund
Loans
TOTAL
Principal Interest
Principal interest
2013
2014
2015
2016
2017
2018 - 2022
2023 - 2027
2028 - 2032
2033 - 2037
2038 - 2042
$ 465,000 $ 168,044
495,000 139,953
520,000 110,172
150,000 91,950
155,000 85,950
895,000 317,700
860,000 99.000
$ 558.293 $ 33,107
558.293 30,315
558.293 27,524
558,293 24,732
558.293 21,941
2,765,414 19,149
1,064,484 5,322
$ 1,224,443
1,223,561
1,215,989
824,975
821,184
3,997,264
2,028,807
Totals $ 3,540000 $ 1.012,769 $ 6,621.364 $ 162,091 $ 11,336,224
97
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
Changes in Long -Term Debt
CHANGES IN LONG -TERM LIABILITIES - GOVERNMENTAL FUNDS
Interest OUTSTANDING OUTSTANDING Due Within
ITEM ' Rates Maturity Authorized 12/31/2011 ISSUED REDEEMED 12/31/12 One Year
GOVERNMENTAL ACTIVITIES:
Limited General Obligation (GO) Bonds Payable:
2003 Refunding Facilities
2003 Streets & Golf Course
2008 Refunding Streets /Facilities
2010 Streets / Equipment
2011 Refunding Streets (2003 GO)
Total Bonds Payable
Unamortized Deferred Credits (Charges):
Issuance premiums
Issuance discounts /defeasance
4.00 -5.00 12/01/14 $ 4,195,000 $ 1,335,000 $
4.25 -4.65 12/01/23 6,277,500 3,795,000
4.00 -6.00 12/01/19 6,180,000 5,095,000
2.00 -5.41 12/01/24 5,870,000 5,415,000
4,620,000 4,620,000
27,142,500 20,260,000
$ 425,000 $ 910,000 $ 445,000
555,000 3,240,000 575,000
550,000 4,545,000 500,000
345,000 5,070,000 355,000
25,000 4,595,000 15,000
1,900,000 18,360,000 1,890,000
953,059 - 125,227
(672,611) - (74,255)
Net Bonds Payable
Due to Other Governments
2009 SCORE
2010 Valley Com
27,142,500 20,540,448 - 1,950,971
3.00 -6.62 01/01/39 6,898,800 6,898,800
4.30 -5.75 12/01/15 1,065,000 848,000
Total Due Other Governments
Unamortized Deferred Credits (Charges):
Issuance premiums
Issuance discounts and costs
7,963,800 7,746,800
827,832
(598,356)
18,589,476 1,890,000
153,200 6,745,600 156,000
201,000 647,000 215,000
354,200 7,392,600 371,000
Net Due Other Governments
7,963,800 7,746,800
354,200 7,392,600 371,000
Capital leases 125,977 35,891 35,891 - -
Compensated Absences: - 2,969,125 2,630,026 2,454,738 3,144,413 -
Total Governmental Funds $35,232,277 $ 31,292,264 $2,630,026 $ 4,795,800 $ 29,126,489 $2,261,000
Note: The beginning balance has been restated due to current year reclassifications.
CHANGES IN LONG -TERM LIABILITIES - BUSINESS -TYPE ACTIVITIES
Interest OUTSTANDING OUTSTANDING Due Within
ITEM 1 Rates Maturity Authorized 12/31/2011 ISSUED REDEEMED 12/31/12 One Year
BUSINESS -TYPE ACTIVITIES:
Bonds Payable:
1995 Water /Sewer Revenue 4.15 -6.63 02/01/15 $ 4,500,000 $ 1,370,000 $ - $ 310,000 $ 1,060,000 $ 330,000
2006 Water /Sewer /SWM Revenue 4.00 -4.50 12/01/26 3,180,000 2,610,000 - 130,000 2,480,000 135,000
Total Bonds Payable 7,680,000 3,980,000 - 440,000 3,540,000 465,000
Unamortized Deferred Credits (Charges):
Issuance Premiums - 69,221 - 11,150 58,070
Issuance Discounts /defdefeasance - (18,788) - (6,093) (12,695)
Net Bonds Payable AlMMII=MMW - 445,057 3,585,376 465,000
Public Works Trust Fund Loans:
2003 Loan - Water /Sewer 0.50 07/01/21 273,870 144,543 14,581 129,962 14,454
2003 Loan - Surface Water 0.50 07/01/21 219,725 115,944 11,448 104,496 11,597
2004 Loan - Water /Sewer 0.50 -2.00 07/01/24 5,016,000 3,547,522 - 272,886 3,274,635 272,886
2004 Loan - Surface Water 0.50 -2.00 07/01/24 684,000 483,753 37,212 446,541 37,212
2004 Loan - Surface Water 1.00 07/01/24 4,196,056 2,887,874 - 222,144 2,665,730 222,144
Total Public Works Trust Fund Loans 10,389,651 7,179,635 558,271 6,621,364 558,293
Compensated Absences:
291,230 241,722 224,422 308,530 2,999
Total Business -Type Activities
$19,382,651 $ 11,501,298 $ 241,722 $ 1,227,750 $ 10,515,269 $1,026,292
TOTAL ALL FUNDS $54,614,928 $ 42,793,563 $2,871,748 $ 6,023,551 $ 39,641,758 $3,287,292
98
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
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.
LONG -TERM LIABILITIES RECONCILIATION
Government Enterprise Balance
Funds Funds 12 -31 -12
General obligation bonds $18,360,000 $ - $18,360,000
Revenue bonds 3,540,000 3,540,000
Public Works Trust Fund loans 6,621,364 6,621,364
Due to Other Governments 7,392,600 - 7,392,600
Capital Leases - - -
Employee leave benefits 3,144,413 308,530 3,452,943
Net Premiums / Deferred charge: 229,476 45,376 274,852
Total long -term debt $29,126,489 $ 10,515,270 $39,641,758
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, 2012, 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
$ 70,134,446 $ 116,890,744 $ 233,781,487 $ 350,672,231
27, 655, 096 27, 655, 096
27, 655, 096 27, 655, 096
Margin Available $ 42,479,350 $ 89,235,648 $ 206,126,391 $ 323,017,135
99
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
Long -term Liabilities other than debt
Claims are paid from one or more fund 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 reasonable estimable.
LID 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.
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 %. As of December
31, 2012, the total amount of the loan is $8,137,082 plus accrued interest of $193,032. The loan will be
repaid when the special assessment bonds are issued in 2013.
Since the loan payable by the LID project and the loan receivable by the arterial street fund are contained
within the same fund, the transactions have been eliminated in the consolidation and reporting process.
100
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 12 — CONSTRUCTION COMMITMENT
Upon completion, the projects will be capitalized in their appropriate categories in the Government Wide
Statements and in the proprietary fund financials, if applicable. As of December 31, 2012 the City had
$5.1 million contractual obligations on construction projects.
NOTE 13 — LITIGATION
There are several lawsuits in which the City is involved. The City Attorney estimates that the potential
claims against the will have no material financial impact.
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 153 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.
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 $20 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 $16 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 and 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. These revenues directly
offset portions of the membership's annual assessment.
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
101
CITY OF TUKWILA: 2012 CAFR NOTES TO THE FINANCIAL STATEMENTS
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. Travelers insures boiler
machinery and Anderson & Black Insurance insures 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 department 20 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 $125,000 and a plan limit of
$7,480,385 in 2012. 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 following table reflects changes in the balances of claims liabilities for 2012 and 2011.
SUMMARY OF HEALTH CARE CLAIM LIABILITIES
ITEM
Health Health
Benefit Benefit Insurance — Insurance —
Insurance Insurance LEOFF 1 2012 LEOFF 1 2011
2012 2011
Claims Liabilities at Beginning of Year $1,499,600 $ 1,155,647 $ 193,200 $ 97,401
Claims expenses:
Current year and changes in estim 4,426,949 4,300,120 426,251 249,957
Claims payments and expenses (4,082,996) (4,312,224) (303,351) (277,058)
Claims Liabilities at End of Year $1,843,553 $1,143,543 $ 316,100 $ 70,300
NOTE 15 — SUBSEQUENT EVENTS
On February 1, 2013 the City sold a $1 million limited tax general obligation bond to Cashmere Valley
Bank in a private sale. The City and the Tukwila Metropolitan Park District (MPD) entered into an
interlocal agreement for the City to loan the proceeds to the MPD. The proceeds will be used to pay for
improvements to the pool and related facilities owned by the MPD. The MPD will repay the loan in
installments equal to the debt service payments required by the City. The bonds will be paid back over
10 years with the first payment due June 1, 2013 and the final payment due December 1, 2022.
102
CITY OF TUKWILA: 2012 CAFR REQUIRED SUPPLEMENTAL INFORMATION
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31,2012
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES:
TAXES $ 40,550,620 $ 40,550,620 $ 39,840,363 $ (710,257)
LICENSES AND PERMITS 1,908,566 1,908,566 1,604,594 (303,972)
INTERGOVERNMENTAL 4,060,841 4,143,051 4,708,774 565,723
CHARGES FOR SERVICES 2,678,400 2,700,400 2,184,369 (516,031)
FINES AND FORFEITURES 213,270 213,270 220,752 7,482
INVESTMENT EARNINGS 137,258 137,258 64,418 (72,840)
MISCELLANEOUS 51,800 51,800 71,159 19,359
TOTAL REVENUES
49,600,755 49,704,965
48,694,430 (1,010,536)
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 8,688,421 8,918,421 8,344,177 574,244
PUBLIC SAFETY 24,566,657 25,100,635 24,907,510 193,125
PHYSICAL ENVIRONMENT 1,994,094 1,994,094 1,673,956 320,138
TRANSPORTATION 2,676,535 2,756,535 2,682,877 73,658
ECONOMIC ENVIRONMENT 3,439,920 3,439,920 3,394,823 45,097
CULTURE AND RECREATION 3,492,862 3,630,482 3,361,825 268,657
CAPITAL OUTLAY 84,000 307,000 273,560 33,440
TOTAL EXPENDITURES
44,942,489 46,147,087 44,638,728 1,508,359
EXCESS OF REVENUES OVER EXPENDITURES
4,658,266 3,557,878
4,055,702 497,823
OTHER FINANCING SOURCES (USES):
SALES OF CAPITAL ASSETS
BOND PROCFPDDS
TRANSFERS IN (Note 5)
TRANSFERS OUT (Note 5)
LOAN TO TUKWILA METROPOLITAN PARK DISTRICT
1,300,500 672,882
1,100,000
3,298,617 2,391,235
(7,444,767) (7,532,732)
(1,825,000)
9,903 (662,979)
(1,100,000)
2,330,665 (60,570)
(5,619,148) 1,913,584
(658,706) 1,166,294
TOTAL OTHER FINANCING SOURCES AND USES
(2,845,650) (5,193,615) (3,937,286) 1,256,329
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
1,812,616
6,505,139
$ 8,317,755 $
(1,635,737) 118,416 1,754,152
6,505,139 8,260,141 1,755,002
4,869,402 $
The notes to the financial statements are an integral part of this statement.
103
8,378,557 $
3,509,154
CITY OF TUKWILA: 2012 CAFR REQUIRED SUPPLEMENTAL INFORMATION
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
ARTERIAL STREET FUND
FOR THE YEAR ENDED DECEMBER 31, 2012
ORIGINAL
BUDGET
(GAAP BASIS)
FINAL
BUDGET
(GAAP BASIS)
VARIANCE WITH
FINAL BUDGET
ACTUAL POSITIVE
RESULTS (NEGATIVE)
REVENUES:
TAXES
INTERGOVERNMENTAL
CHARGES FOR SERVICES
INVESTMENT EARNINGS
MISCELLANEOUS
$ 211,257 $
580,581
3,820
1,061,000
211,257 $ 523,083
9,941,581 1,006,599
846,240
3,820 3,153
466,000 43,271
$ 311,826
(8,934,982)
846,240
(667)
(422,729)
TOTAL REVENUES
1,856,658 10,622,658
2,422,347
(8,200,312)
EXPENDITURES:
CURRENT:
TRANSPORTATION
CAPITAL OUTLAY
6,359,204 16,083,204
86,305
9,709,676
(86,305)
6,373,528
TOTAL EXPENDITURES
6,359,204
16,083,204
9,795,981
6,287,223
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(4,502,546) (5,460,546)
(7,373,634) (1,913,088)
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5)
TRANSFERS OUT (Note 5)
GENERAL OBLIGATION BONDS PROCEEDS
2,000,000
(123,933)
350,000
2,000,000
(123,933)
9,230,000
1,314,132
(386,563)
(685,868)
(262,630)
(9,230,000)
TOTAL OTHER FINANCING SOURCES AND USES
2,226,067 11,106,067
927,569 (10,178,498)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
(2,276,479)
4,789,469
5,645,521
4,789,469
(6,446,065) (12,091,586)
6,929,396
2,139,927
$ 2,512,990 $ 10,434,990 $ 483,331 $ (9,951,659)
The notes to the financial statements are an integral part of this statement.
104
CITY OF TUKWILA: 2012 CAFR REQUIRED SUPPLEMENTAL INFORMATION
The information presented in the following required schedules was determined as part of the
actuarial valuations at the dates indicated.
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)
UAAL as a
Funded Covered Percentage of
Ratio Payroll Covered Payroll
January 1, 2000
January 1, 2003
January 1, 2005
January 1, 2007
January 1, 2009
January 1, 2011
$1,076
1,215
1,265
1,336
1,445
1,430
$1,243
1,135
1,182
1,310
1,610
1,582
$167
(80)
(83)
(26)
165
152
87%
107
107
102
90
90
$112
0
0
0
442
371
SCHEDULE OF EMPLOYER CONTRIBUTIONS
149%
N/A
N/A
N/A
37
41
Fiscal
Year Ending
Employer
Contributions
Fire Insurance Total Employer Annual Required Percentage of ARC
Premiums Contributions Contribution (ARC) Contributed
December 31, 2008
December 31, 2009
December 31, 2010
December 31, 2011
December 31, 2012
$ (1,841) $
(18,425)
(3,000)
(7,800)
(1,650)
52,571 $
48,537
49,989
54,865
52,249
50,730
30,112
46,989
47,065
50,599
$ (1,998)
11,576
11,576
11,984
11,984
RETIREE MEDICAL AND LONG -TERM CARE BENEFITS
FOR LEOFF 1 EMPLOYEES
SCHEDULE OF FUNDING PROGRESS
(rounded to thousands)
-%
260
406
393
422
Actuarial
Actuarial Value Accrued
Valuation Date of Assets Liabilities
Unfunded Actuarial
Accrued Liabilities Funded
(UAAL)* Ratio
Covered
Payroll
UAAL as a
Percentage of
Covered Payroll
January 1, 2008 $0
January 1, 2011 0
* Only two valuations completed to date
$16,103
14,805
105
$16,103 0%
14,805 0%
$581 4%
371 3
CITY OF TUKWILA: 2012 CAFR REQUIRED SUPPLEMENTAL INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Fiscal Employer Fire Insurance Percentage of ARC
Year Ending Contributions Premiums Contributed
December 31, 2009 $335,265 $1,366,284 25%
December 31, 2010 317,771 1,366,284 23
December 31, 2011 335,090 1,264,522 26
December31, 2012 332,141 1,264,522 26
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.
106
CITY OF TUKWILA: 2012 CAFR REQUIRED SUPPLEMENTAL INFORMATION
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
Culture and Recreation
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.
Includes the parks and recreation activities.
107
CITY OF TUKWILA: 2012 CAFR REQUIRED SUPPLEMENTAL INFORMATION
FIREMEN'S PENSION TRUST FUND
Actuarial Valuations
Actuarial valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
January 1, 2011
Entry Age Normal
30 -year, closed as of January 1, 1999
18 years
Fair market value
Assumptions
Investment rate of return 4.00%
Projected salary increases 3.75%
Price inflation 2.75%
Cost -of- living adjustments Based upon salary increase assumption
when appropriate, for FPF benefits.*
Based upon inflation assumption for some
FPF benefits and all LEOFF benefits.
* 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
108
CITY OF TUKWILA: 2012 CAFR REQUIRED SUPPLEMENTAL INFORMATION
RETIREE MEDICAL AND LONG -TERM CARE BENEFITS
FOR LEOFF 1 EMPLOYEES
Actuarial Valuations
Valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
January 1, 2011
Entry Age Normal
21 -year, closed as of January 1, 2008
18 years
Fair market value
Assumptions
Investment rate of return
Medical inflation
Long -term care inflation
4.00%
Year Medical Cost Rate
2011 7.80%
2012 7.10%
2013 6.50%
2014 -2019 5.90%
2020 -2030 5.80%
2031 -2036 5.70%
4.75%
109
CITY OF TUKWILA: 2012 CAFR REQUIRED SUPPLEMENTAL INFORMATION
110
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
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.
111
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENT FUNDS
DECEMBER 31, 2012
TOTAL TOTAL TOTAL TOTAL
SPECIAL REVENUE DEBT SERVICE CA PITA L PROJECTS GOVERNMENTAL
FUNDS FUNDS FUNDS FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 1,591,491 $ 962,917 $ 2,454,161 $ 5,008,571
INVESTMENTS 2,049,464 2,049,464
DEPOSTS WITH FISCAL AGENT
RECEIVABLES:
TAXES 111,452 111,452
CUSTOMER ACCOUNTS 290,021 290,021
DUE FROM OTHER GOVERNMENTAL UNITS - 970,035 970,035
CURRENT ASSETS RESTRICTED:
CASH AND CASH EQUIVALENTS 164,312 164,312
TOTAL ASSETS $ 1,992,964 $ 3,012,381 $ 3,588,508 $ 8,593,854
LIABILITIES AND FUND BALANCES:
CURRENT LA BILITIES:
ACCRUED WAGES AND BENEFITS 14,667 1,496 16,162
ACCOUNTS PAYABLE 60,694 168,704 229,398
RETAINAGEPAYABLE 50,948 50,948
OTHER CURRENT LIABILITIES - 100,000 100,000
TOTAL LIABILMES 75,361 321,148 396,508
FUND BALANCES:
RESTRICTED
COMMITTED
ASSIGNED
TOTAL FUND BALANCES
1,842,603
75,000
1,917,603
3,012,381
3,012,381
512,322 2,354,925
2,755,038 5,842,419
3,267,360 8,197,345
TOTAL LABILITIES AND FUND BALANCES
$ 1,992,964 $ 3,012,381 $ 3,588,508 $ 8,593,854
112
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON -MAJOR GOVERNMENT FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2012
udiE
TOTAL TOTAL TOTAL TOTAL
SPECIAL REVENUE DEBT SERVICE CAPITAL PROJECTS GOVERNMENTAL
FUNDS FUNDS FUNDS FUNDS
REVENUES:
TAXES
INTERGOVERNMENTAL
CHARGES FOR SERV ICES
INVESTMENT EARNINGS
MISCELLANEOUS
TOTAL REVENUES Mr—
$ 522,033 $ - $ 25 $ 522,058
264,565 329,318 1,169,003 1,762,886
857,832 - 33,686 891,518
2,499 28,421 5,117 36,036
12,608 - 4,939 17,547
1,659,537 357,738 ir 1,212,770 3,230,044
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT - 160,334 160,334
ECONOMIC ENVIRONMENT 1,373,121 1,373,121
PHYSICAL ENVIRONMENT 1,348,560 1,348,560
PUBLIC SAFETY 10,796 - 10,796
DEBT SERVICE
PRINCIPAL 2,254,200 2,254,200
INTEREST - 1,178,464 1,178,464
CAPITAL OUTLAY 170,401 - 568,162 738,564
TOTAL EXPENDITURES 1,554,319 3,432,664 2,077,056 7,064,039
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER) EXPENDITURES 105,218 (3,074,927) (864,286) (3,833,995)
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5) - 2,770,995 1,210,000 3,980,995
TRANSFERSOUT(Note5) (108,831) - (27,800) (136,631)
TOTAL OTHER FINANCING SOURCES AND USES (108,831) 2,770,995 1,182,200 3,844,364
NET CHANGE IN FUND BALANCES (3,613) (303,932) 317,913 10,369
FUND BALANCES - BEGINNING 1,921,216 3,316,313 2,949,447 8,186,976
FUNDBALANCES - ENDING $ 1,917,603 $ 3,012,381 $ 3,267,360 $ 8,197,345
113
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
114
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
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.
Street Fund
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.
Drug Seizure Fund
Established to account for the yearly accumulation of drug seizure revenues and
related expenditures.
115
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2012
TOTAL
HOTEL/MOTEL SPECIAL REVENUE
TAX STREET DRUG SEIZURE FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 398,376 $ 1,031,761 $ 161,355 $ 1,591,491
RECEIVABLES:
CURRENT TAXES RECEIVABLE 69,590 41,861 111,452
DUE FROM OTHER GOVERNMENTAL UNITS 290,021 - 290,021
TOTAL ASSETS 757,987 1,073,622 161,355 1,992,964
LIABILITIES AND FUND BALANCES:
ACCOUNTS PAYABLE 32,847 26,617 1,230 60,694
ACCRUED WAGES AND BENEFITS PAYABLE 14,433 234 14,667
TOTAL LIABILITIES 47,280 26,851 1,230 75,361
FUND BALANCES:
RESTRICTED 710,707 1,046,771 85,125 1,842,603
ASSIGNED 75,000 75,000
TOTAL FUND BALANCES 710,707 1,046,771 160,125 1,917,603
TOTAL LIABILITIES AND FUND BALANCES $ 757,987 $ 1,073,622 $ 161,355 $ 1,992,964
116
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
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, 2012
HOTEL /MOTEL
TAX
STREET
TOTAL
DRUG SPECIAL REVENUE
SEIZURE FUNDS
REVENUES:
TAXES $ 522,033 $ $ $ 522,033
INTERGOVERNMENTAL 264,565 - 264,565
CHARGES FOR SERVICES 857,832 - - 857,832
INVESTMENT EARNINGS 724 1,775 2,499
MISCELLANEOUS 12,608 - 12,608
TOTAL REVENUES 1,393,197 266,340 1,659,537
EXPENDITURES:
CURRENT:
PUBLIC SAFETY - 10,796 10,796
ECONOMIC ENVIRONMENT 1,373,121 - 1,373,121
CAPITAL OUTLAY - 111,612 58,790 170,401
TOTAL EXPENDFTURES 1,373,121 111,612 69,586 1,554,319
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER) EXPENDFTURES 20,076 154,728 (69,586) 105,218
OTHER FINANCING SOURCES (USES):
TRANSFERS OUT (Note 5)
TOTAL OTHER FINANCING SOURCES AND USES
(96,937)
(11,894)
(108,831)
(96,937)
(11,894)
(108,831)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
(76,861) 142,834
787,568 903,937
(69,586) (3,613)
229,711 1,921,216
FUND BALANCES - ENDING
$ 710,707 $ 1,046,771 $ 160,125 $ 1,917,603
117
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
118
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
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.
Limited Tax G.O. 2003
This fund provides payment to the Fiscal Agent for principal and interest payments required per the debt
service schedule for the City of Tukwila's Arterial Street program. Revenues are provided by allocation of
sales tax proceeds.
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
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.
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.
Taxable Build America Bonds 2010A and 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.
119
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR DEBT SERVICE FUNDS
December 31, 2012
Page 1 of 2
LIMITED TAX
G.O. BONDS
2003
LIMITED TAX
G.O. REFUNDING
BONDS 2003
(REF 1994)
LIMITED TAX G.O.
BONDS / G.O.
REFUNDING 2008
(REF 1999)
LIMITED TAX
BONDS G.O.
BONDS 2009A
ASSETS:
CASH AND CASH EQUIVALENTS
INVESTMENTS
TOTAL ASSETS
$ 956,671
2,049,464
$ 246 $
217 $
126
$ 3,006,134 $ 246 $
217 $
126
LIABILITIES AND FUND BALANCES:
TOTAL LIABILITIES
FUND BALANCES:
ASSIGNED
TOTAL FUND BALANCES
3,006,134
246
217
126
3,006,134
246
217
126
TOTAL LIABILITIES AND FUND BALANCES $ 3,006,134
$ 246 $
217 $ 126
120
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Page 2 of 2
LIMITED TAX
BONDS G.O.
BONDS 2009B
LIMITED TAX
BONDS G.O.
BONDS 2010A
TAXABLE BUILD
AMERICA
BONDS 2010B
LIMITED TAX
G.O. REFUNDING
BONDS
2010 /(REF 2000)
LIMITED TAX
G.O. REFUNDING
BONDS 2011
(REF 2003)
TOTAL
NONMAJOR
DEBT SERVICE
FUNDS
995 $
37 $
4,612 $
14
$ 962,917
2,049,464
$ 995 $ 37 $ 4,612 $ 14
$ 3,012,381
995 37 4,612 14 - 3,012,381
995 37 4,612 14 - 3,012,381
$ 995 $ 37 $ 4,612 $ 14 $ $ 3,012,381
121
393,350 486,893
804,042 105,184
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
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, 2012
Page 1 of 2
LIMITED TAX
LIMITED TAX G.O. BONDS /
G.O. G.O.
LIMITED TAX REFUNDING REFUNDING LIMITED TAX
G.O. BONDS BONDS 2003 2008 (REF G.O. BONDS
2003 (REF1994) 1999) 2009A
REVENUES:
INTERGOVERNMENTAL $ - $ - $ $ 186,660
INVESTMENT EARNINGS 28,421
TOTAL REVENUES
28,421 186,660
EXPENDITURES:
DEBT SERVICE
PRINCIPAL 555,000 425,000 550,000 153,200
INTEREST 163,678 62,803 259,303 139,226
TOTAL EXPENDITURES
718,678 487,803 809,303 292,426
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(690,257) (487,803) (809,303) (105,765)
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5)
393,350 486,893
804,042 105,184
TOTAL OTHER FINANCING SOURCES AND USES
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
(296,907) (910) (5,261) (581)
3,303,041 1,156 5,478 707
FUND BALANCES - ENDING
$ 3,006,134 $ 246 $ 217 $ 126
122
139,605 393,975 123,793 156,910 167,243 2,770,995
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Page 2 of 2
LIMITED TAX
TAXABLE G.O. LIMITED TAX TOTAL
BUILD REFUNDING G.O. NONMAJOR
LIMITED TAX LIMITED TAX AMERICA BONDS REFUNDING DEBT
G.O. BONDS G.O. BONDS BONDS 2010 /(REF BONDS 2011 SERVICE
2009B 2010A 2010B 2000) (REF 2003) FUNDS
$
- $ - $ 66,657 $ 76,000 $ - $ 329,318
- 28,421
- 66,657 76,000 357,739
139,226
345,000
48,975 191,102
201,000 25,000
31,910 142,243
2,254,200
1,178,464
139,226 393,975 191,102 232,910 167,243 3,432,664
(139,226) (393,975) (124,445) (156,910) (167,243) (3,074,925)
139,605 393,975
123,793 156,910
167,243 2,770,995
379 (652) (303,932)
616 37 5,264 14 - 3,316,313
$ 995 $ 37 $ 4,612 $ 14 $ - $ 3,012,381
123
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
124
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
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.
Facility Replacement Fund
This fund was established in 1988 for the replacement of existing general
government facilities.
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.
125
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR CAPITAL PROJECTS FUNDS
DECEMBER 31, 2012
GENERAL TOTAL NONMAJOR
FACILITY GOVERNMENT FIRE CAPITAL PROJECTS
REPLACEMENT IMPROVEMENTS IMPROVEMENTS FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 2,105,864 $ 287 $ 348,010 $ 2,454,161
RECEIVABLES:
DUE FROM OTHER GOVERNMENTAL UNFTS - 970,035 - 970,035
CURRENT ASSETS RESTRICTED:
CASH AND CASH EQUIVALENTS 164,312 - 164,312
TOTAL ASSETS 2,105,864 1,134,634 348,010 3,588,508
LIABILITIES AND FUND BALANCES:
CURRENT PAYABLES:
ACCRUED WAGES AND BENEFITS 1,496 - 1,496
ACCOUNTS PAYABLE 344 168,360 168,704
RETAINAGE PAYABLE 50,948 50,948
OTHER CURRENT LABILFTIES 100,000 - 100,000
TOTAL LIABILITIES 100,344 220,804 321,148
FUND BALANCES:
RESTRICTED 164,312 348,010 512,322
ASSIGNED 2,005,520 749,518 - 2,755,039
TOTAL FUND BALANCES 2,005,520 913,830 348,010 3,267,360
TOTAL LABILFFIES AND FUND BALANCES $ 2,105,864 $ 1,134,634 $ 348.010 $ 3,588,508
126
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON -MAJOR CAPITAL PROJECTS FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2012
GENERAL TOTAL NONMAJOR
FACILITY GOVERNMENT FIRE CAPffALPROJECTS
REPLACEMENT IMPROVEMENTS IMPROVEMENTS FUNDS
REVENUES:
CHARGES FOR SERVICES - 33,686 33,686
INTERGOVERNMENTAL - 1,169,003 - 1,169,003
INVESTMENT EARNINGS 3,752 885 505 5,142
MISCELLANEOUS - 4,939 4,939
TOTAL REVENUES 3,752 1,174,827 34,191 1,212,770
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 160,334 - 160,334
PHYSICAL ENVIRONMENT - 1,348,560 - 1,348,560
CAPITAL OUTLAY 24,120 544,043 568,162
TOTAL EXPENDITURES 24,120 2,052,937 - 2,077,056
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER) EXPENDITURES (20,368) (878,109) 34,191 (864,286)
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5) - 1,210,000 1,210,000
TRANSFERS OUT (Note 5) (1,127) (26,673) (27,800)
TOTAL OTHER FINANCING SOURCES AND USES (1,127) 1,183,327 1,182,200
NET CHANGE IN FUND BALANCES (21,495) 305,218 34,191 317,913
FUND BALANCES - BEGINNING 2,027,015 608,612 313,819 2,949,446
FUND BALANCES - ENDING $ 2,005,520 $ 913,830 $ 348,010 $ 3,267,360
127
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
128
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON -MAJOR PROPRIETARY FUNDS
Internal Service Funds
The City Internal Service Funds are used to account for the financing of special
services performed by designated organizations within the City of Tukwila to other
organizations within the City. They provide a service and then generate revenue by
billing the organization for which the service was provided.
Equipment Rental Fund
Accounts for the costs of maintaining and replacing all City vehicles and auxiliary
equipment except for major fire apparatus. 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.
129
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
DECEMBER 31, 2012
TOTAL
INSURANCE- INTERNAL
EQUIPMENT INSURANCE LEOFF I SERVICE
RENTAL ACTIVE EMPLOYEES RETIREES FUNDS
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 3,310,257 $ 1,967,224 $ 1,921,032 7,198,512
INVESTMENTS 857,133 4,423,037 5,280,170
RECEIVABLES:
CUSTOMER ACCOUNTS 395 395
INTEREST ONINVESTMFNTS 2,423 42,375 - 44,798
INVENTORY OF MATERIALS AND SUPPLIES 12,319 12,319
TOTAL CURRENT ASSETS 4,182,527 6,432,636 1,921,032 12,536,195
CAPITAL ASSETS:
MACHINERY AND EQUIPMENT 9,390,266 - 9,390,266
LESS: ACCUMULATED DEPRECIATION (7,344,507) (7,344,507)
TOTAL CAPITAL ASSETS (NET OF A /D) 2,045,759 2,045,759
TOTAL NONCURRENT ASSETS 2,045,759 - 2,045,759
TOTAL ASSETS 6,228,286 6,432,636 1,921,032 14,581,953
LIABILITIES:
ACCRUED WAGES AND BENEFITS 17,892 17,892
OTHER CURRENT LIABILITIES 32,240 1,638,250 209,500 1,879,990
i TOTAL LIABILITIES 50,132 1,638,250 209,500 1,897,882
NET POSITION:
NET INVESTMENT IN CAPITAL ASSETS 2,045,759 2,045,759
UNRESTRICTED 4,132,395 4.794,386 1,711,532 10,638,313
TOTAL NET POSITION $ 6,178,154 $ 4,794,386 $ 1,711,532 $ 12,684,072
130
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2012
TOTAL
INSURANCE- INTERNAL
EQUIPMENT INSURANCE LEOFF I SERVICE
RENTAL ACTIVE EMPLOYEES RETIREES FUNDS
OPERATING REVENUES:
CHARGES FOR SERVICES $ 2,383,875 $ 4,330,231 $ 467,007 $ 7,181,113
INTERGOVERNMENTAL 10,783 - 10,783
OTHER OPERATING REVENUE 252 63,766 64,018
TOTAL OPERATING REVENUES 2,394,911 4,393,996 467,007 7,255,914
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE 1,351,217 4,764,454 383,408 6,499,079
DEPRECIATION 717,452 - 717,452
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
2,068,669 4,764,454 383,408 7,216,531
326,241 (370,457) 83,599 39,383
NON - OPERATING REVENUE (EXPENSE):
INVESTMENT EARNINGS
SALE OF CAPITAL ASSETS
47,672 261,668
3,565 312,905
59,790 59,790
TOTAL NON - OPERATING REVENUE(EXPENSE) 107,462 261,668 3,565 372,695
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 433,703 (108,789) 87,164 412,078
TRANSFERS OUT (Note 5)
CHANGE IN NET POSITION
TOTAL NET POSITION BEGINNING OF YEAR
TOTAL NET POSITION END OF YEAR
(309,667)
124,036
6,054,118
$ 6,178,154
131
(80,305)
(189,094)
4,983,480
(4,619)
82,545
1,628,987
$ 4,794,386 $ 1,711,532
(394,591)
17,487
12,666,585
$ 12,684,072
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2012
Page 1 of 2
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
1
TOTAL
INTERNAL
EQUIPMENT INSURANCE- SERVICE
RENTAL INSURANCE LEOFFI FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM USERS
CASH PAID TO SUPPLIERS
CASH PAID FOR INVENTORY
CASH PAID TO EMPLOYEES
OTHER CASH RECEIVED (PAID)
$ 2,383,480 $ 4,393,996 $ 467,007 $ 7,244,484
(787,463) (4,764,454) (383,407) (5,935,324)
(48,317) (48,317)
(477,030) - (477,030)
138,650 16,300 154,950
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
1,070,670 (231,808)
99,900 938,763
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
OPERATING GRANT RECEIVED 10,783 10,783
TRANSFERS OUT (309,667) (80,305) (4,619) (394,591)
NET CASH PROVIDED (USED) BY NON -
CAPITAL FINANCING ACTIVITIES
(298,884) (80,305) (4,619) (383,808)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM SALE OF EQUIPMENT 79,251 - 79,251
PURCHASE OF CAPITAL ASSETS (233,086) (233,086)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES
(153,835) (153,835)
CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF INVESTMENTS
PURCHASE OF INVESTMENTS
INTEREST RECEIVED
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES
1,665,791
(785,000)
(10,385)
870,406
1,003,475
(123,579)
266,701
1,146,597
3,565
2,669,266
(908,579)
259,881
3,565 2,020,568
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
1,488,358 834,484 98,846 2,421,688
CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR
1,821,899 1,132,739
1,822,186 4,776,824
CASH AND CASH EQUIVALENTS -END OF YEAR $ 3,310,257 $ 1,967,224 $ 1,921,032 $ 7,198,512
CASH AT END OF YEAR CONSISTS OF:
CASH AND CASH EQUIVALENTS
TOTAL CASH
$ 3,310,257 $ 1,967,224 $ 1,921,032 7,198,512
$ 3,310,257 $ 1,967,224 $ 1,921,032 $ 7,198,512
132
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2012
Page 2 of 2
TOTAL
INTERNAL
EQUIPMENT INSURANCE- SERVICE
RENTAL INSURANCE LEOFFI FUNDS
RECONCILIATION OF NET OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
OPERATING INCOME (LOSS)
$ 326,241 $ (370,457) $ 83,599 $ 39,383
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 717,452 - 717,452
ASSET (INCREASES) DECREASES:
MISCELLANEOUS NR- REVENUE 5,412 5,412
INVENTORY (5,429) - (5,429)
LIABILITY INCREASES (DECREASES) :
ACCOUNTS & VOUCHERS PAYABLE 26,993 138,649 16,300 181,942
TOTAL ADJUSTMENTS 744,429 138,649 16,300 899,378
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 1,070,670 $ (231,808) $ 99,900 $ 938,763
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT 44,655 401,949 446,604
TOTAL NON CASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES $ 44,655 $ 401,949 $ - $ 446,604
133
CITY OF TUKWILA: 2012 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
134
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
City of Tukwila
STATISTICAL SECTION
December 31, 2012
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 136
Schedule 2 Changes in Net Position 138
Schedule 3 Fund Balances, Governmental Funds 140
Schedule 4 Changes in Fund Balances, Governmental Funds 142
Schedule 5 General Governmental Tax Revenues by Source 144
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 145
Schedule 7 Assessed and Estimated Actual Value of Taxable Property 146
Schedule 8 Property Tax Rates - Direct and Overlapping Governments 147
Schedule 9 Principal Property Taxpayers 148
Schedule 10 Retail Sales Tax Collections by Sector 150
Schedule 11 Sales Tax Rate Direct and Overlapping Governments 152
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 154
Schedule 13 Ratios of General Bonded Debt Outstanding 156
Schedule 14 Computation of Direct and Overlapping Debt 157
Schedule 15 Legal Debt Margin Information 158
Schedule 16 Revenue Bond Coverage- Water 160
Schedule 17 Revenue Bond Coverage- Sewer Bonds 161
Schedule 18 Revenue Bond Coverage- Surface Water Bonds 162
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 Demographic Statistics 163
Schedule 20 Principal Employers 164
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 21 Staffing Levels by Department 165
Schedule 22 Operating Indicators by Function 166
Schedule 23 Capital Assets by Function 167
135
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA
SCHEDULE 1
NET POSITION BY COMPONENT(a)
LAST TEN FISCAL YEARS (b)
Paae 1 of 2
2003M 2004 2005 EIM 2006
Govemmental activities:
Invested in capital assets, net of
related debt $ 118,950,364 $ 123,038,903 $ 129,855,251 $ 133,129,382 $ 136,053,013
Restricted 809,002 1,107,362 1,305,239 1,305,239 1,233,234
Unrestricted 24,341,822 25,873,104 25,289,571 29,506,541 35,520,681
Total governmental activities net position $ 144,101,188 $ 150,019,369 $ 156,450,061 $ 163,941,162 $ 172,806,928
Business -type activites:
Invested in capital assets, net of
related debt $ 29,807,787 $ 30,848,350 $ 31,370,812 $ 34,017,190 $ 36,083,972
Restricted 887,398 960,485 577,587 435,995 441,073
Unrestricted 9,070,664 9,664,654 9,909,896 12,070,451 11,267,171
Total business -type activities net position $ 39,765,849 $ 41,473,489 $ 41,858,295 $ 46,523,636 $ 47,792,216
Primary government:
Invested in capital assets, net of
related debt $ 148,758,151 $ 153,887,253 $ 161,226,063 $ 167,146,572 $ 172,136,985
Restricted 1,696,400 2,067,847 1,882,826 1,741,234 1,674,307
Unrestricted 33,412,486 35,537,758 35,199,467 41,576,992 46,787,852
Total primary government net position $ 183,867,037 $ 191,492,858 $ 198,308,356 $ 210,464,798 $ 220,599,144
Notes:
(a) All amounts are reported on the accrual basis
(b) Amounts presented from year of implementation of GASB -34 (2002) forward
Source:
Tukwila Finance Department
136
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
Page 2of2
2008 2009 2010 2011 2012
$ 136,742,368
19,720,546
18,476,837
$ 155,847,012
16,360,097
16, 031,473
$ 177,078,793
23,005,792
12,119,923
$ 199,511,779
5,019,817
21,479, 064
$ 203,206,940
2,749,680
20,194, 333
$ 174,939,751 $ 188,238,582 $ 212,204,508 $ 226,010,660 $ 226,150,953
$ 36,071,402 $ 38,052,488 $ 44,759,489 $ 52,134,799 $ 52,911,741
439,100 438,619 430,444 430,444 430,444
13,335,836 10,987,162 11,158,081 10,225, 558 11,011, 319
$ 49,846,338 $ 49,478,269 $ 56,348,014 $ 62,790,801 $ 64,353,504
$ 172,813,770
20,159,646
31,812,673
$ 193,899,500
16,798,716
27,018,635
$ 221,838,282
23,436,236
23,278,004
$ 248,636,920
5,450,261
34,714,280
$ 253,253,170
3,180,123
34,071,164
$ 224,786,089 $ 237,716,851 $ 268,552,522 $ 288,801,461 $ 290,504,457
137
2004(b) I 2005 • 2006 7
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 2
CHANGES IN NET POSITION (')
Page 1 of 2
Expenses
Governmental Activities
General Government $ 6,167,738 $ 6,421,839 $ 7,402,398
Public Safety 18,769,074 20,300,709 21,839,070
Physical Environment 1,442,209 1,363,049 2,734,592
Transportation 4,962,043 4,171,173 5,335,214
Economc Environment 3,469,673 3,404,605 3,600,158
Mental and Fhyscial Health 3,683
Culture and Recreation 3,680,402 3,887,871 4,234,889
Interest on Long Term Debt 1,034,841 1,012,239 981,573
Total Governmental Activities 39,525,980 40,561,485 46,131,577
Business Type Activities
Water/Sew er Utility 6,774,102 7,105,020 7,354,876
Foster Golf Course 1,670,400 1,751,709 1,832,303
Surface Water Utility 1,625,579 1,685,663 1,642,204
Total Business Type Activities 10,070,081 10,542,392 10,829,383
Total Primary Government Expenses $ 49,596,061 $ 51,103,877 $ 56,960,960
Program Revenues
Governmental Activities
Charges for Services
General Government $ 781,653 $ 1,376,749 $ 1,243,936
Public Safety 937,873 1,328,369 538,576
Physical Environment 5,005 12,400 10,000
Transportation 102,614 122,201 247,026
Economic Environment 1,977,676 1,027,812 1,756,240
Cultural and Recreation 894,681 693,857 758,385
Operating Grants and Contributions 1,607,688 1,525,579 1,897,543
Capital Grants and Contributions 3,705,424 3,060,960 5,675,493
Total Governmental Activities Rogram Revenues 10,012,614 9,147,927 12,127,199
Business Type Activities
Charges for Services
Water/Sew er Utility 7,620,572 7,604,711 7,354,876
Foster Golf Course 1,239,274 1,434,933 1,832,303
Surface Water Utility 1,819,703 1,839,760 1,642,204
Operating Grants and Contributions
Capital Grants and Contributions 588,891 319,439 1,255,360
Total Business Type Activities Program Revenues 11,268,440 11,198,843 12,084,743
Total Primary Government Program Revenues 21,281,054 20,346,770 24,211,942
Net (Expense) /Revenue
Governmental Activities (29,513,366) (31,413,558) (34,004,378)
Business Type Activities 1,198,359 656,451 2,031,638
Total Primary Government Net Expense $ (28,315,007) $ (30,757,107) $ (31,972,740)
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property Tax $ 10,336,366 $ 10,631,036 $ 10,973,030
Retail Sales and Use Tax 16,492,528 16,887,846 18,236,733
Natural Gas Use Tax 29,667 381,706 415,652
Hotel /Motel Tax 390,221 443,605 501,478
Utility Tax 2,309,787 2,646,356 2,930,332
Business Tax 1,614,587 1,732,739 2,097,082
Excise Tax 4,100,309 3,229,155 4,941,461
State Entitlements 191,589 192,816 185,475
Unrestricted Investment Earnings 416,483 768,097 1,923,171
Gain /Loss on Sale of Capital Assets - 106,776 467,510
Mscellaneous -
Transfers (450,000) 824,118 1,372,652
Total Governmental Activities 35,431,537 37,844,250 44,044,576
Business Type Activities
Retail Sales and Use Taxes 228,458 241,723 645,473
Unrestricted Investment Interest 188,242 310,750 539,463
Gain /Loss on Sale of Capital Assets - - -
Miscellaneous - - -
Transfers 450,000 (824,118) 1,250,000
Total Business Type Activities 866,700 (271,645) 2,434,936
Total Primary Government $ 36,298,237 $ 37,572,605 $ 46,479,512
Change in Net Position
Governmental Activities $ 5,918,171 $ 6,430,692 $ 7,491,102
Business Type Activities 2,065,059 384,806 4,580,734
Total Prirrnry Government $ 7,983,230 $ 6,815,498 $ 12,071,836
Notes:
(a) All amounts are reported on the accrual basis
(b) Amounts presented from year of implementation of GASB -34 forward (2004 for capital assets)
Source: Tukw ila Finance Department
138
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
2007 1 2008
Page 2 of 2
2009 2010 Z 2011 = 2012
$ 7,456,335 $ 4,723,103 $ 6,689,659
21,726,932 24,147,992 26,959,352
2,764,373 2,862,487 2,575,405
5,310,247 5,864,297 5,541,367
3,890,845 5,017,935 4,637,531
4,204 4,173 4,332
4,506,223 4,797,856 4,914,256
896,215 1,844,224 753,904
46,555,374 49,262,067 52,075,806
7,046,603 7,293,362 9,293,434
1,849,542 1,968,595 2,050,172
1,920,194 1,762,417 2,299,394
10, 816, 339 11,024, 374 13,643,000
$ 57,371,713 $ 60,286,441 $
$ 1,590,553
425,241
25,341
133,500
2,319,634
777,484
1,692,766
3,746,743
10,711,262
$ 895,966
1,184,530
1,200
130,637
2,476,501
711,542
1,325,163
2,282,592
9,008,131
8,272,647 8,621,909
1,272,425 1,563,681
2,208,549 2,642,325
347,416 756,400
12,101,037 13, 584,315
22,812,299 22,592,446
$ 7,052,717
26,088,644
2,533,394
6,015,197
4,579,338
4,539
4,756,676
1,061,419
$ 9,150,573
25,348,318
2,885,175
6,872,708
4,712,832
4,591
4,203,824
472,438
52,091,924 53,650,459
9,343,368
1,935,014
2,476,170
10,092,903
1,986,747
2,588,098
13,754,552 14,667,748
$ 8,343,107
26,598,432
3,625,696
7,314,707
4,801,342
4,242,725
1,152,063
56,078,072
10,149,557
1,701,131
2,699,767
14,550,455
65,718,806 $ 65,846,476 $ 68,318,207 $ 70,628,527
$ 1,136,642
572,094
103,311
1,001,511
647,354
3,386,269
14,784,074
21,631,255
10,124,653
1,424,595
2,641,313
$ 1,080,801
819,043
6,200
571,110
1,787,274
811,679
2,139,029
23,992,563
31,207,699
9,665,095
1,425,327
3,029,630
$ 2,462,671 $ 1,332,418
809,806 684,744
7,572 4,939
345,373 1,004,911
1,722,285 2,323,528
1,001,117 481,404
2,250,601 4,411,618
18,495,127 1,581,882
27,094, 552 11,825,444
11,711,242
1,304,016
3,355,956
515,633 7,390,545 1,993,537
11,758,658
1,448,729
3,827,010
135,603
14,706,194 21,510,597 18,364,751 17,170,000
36,337,449 52,718,296 45,459,303 28,995,444
(35,844,111) (40,253,937) (30,444,551) (20,884,225) (26,555,907) (44,252,628)
1,284,700 2,559,941 1,063,194 7,756,045 3,697,003 2,619,546
$ (34,559,411) $ (37,693,996) $ (29,381,357) $ (13,128,180) $ (22,858,904) $ (41,633,082)
$ 11,302,099
19,355,867
344,748
583,232
3,666,079
2,236,675
4,127,360
217,600
1,727,879
13,652
1,134,683
44,709,874
500,000
618,563
(1,134,683)
(16,120)
$ 44,693,754
$ 11,656,979
18,009,297
643,037
587,216
5,136,444
2,497,705
983,078
874,046
801,847
(186,663)
1,383,774
42,386,760
500,000
377,955
(1,383,774)
(505,819)
$ 41,880,941
$ 11,901,072
14,588,297
748,772
489,806
7,390,860
3,196,178
367,198
2,233,445
246,287
980,267
1,601,200
43,743,382
327,999
106,032
(264,093)
(1,601,200)
(1,431,262)
$ 42,312,120
$ 13,363,096
14,669,328
533,811
458,092
5,600,683
4,205,574
507,798
1,951,936
108,929
1,399,310
42,798,557
329,527
85,942
97,541
(1,399,310)
(886,300)
$ 41,912.257
$ 13,443,137 $ 14,131,605
15,796,054 15,441,683
317,531 232,208
555,682 522,033
7,534,260 5,535,966
667,679 2,497,606
2,170,293 2,860,948
2,085,740 1,895,647
275,477 116,694
101,688
525,864 1,056,843
43,371,717 44,392,921
61,119
200,871
(525,864)
(263,874)
$ 43,107,843
(1,056,843)
(1,056,843)
$ 43,336,078
$ 8,865,765 $ 2,132,823 $ 13,298,831 $ 21,914,332 $ 16,815,810 $ 140,293
1,268,580 2,054,122 (368,068) 6,869,745 3,433,129 1,562,703
$ 10,134,345 $ 4,186,945 $ 12,930,763 $ 28,784,077 $ 20,248,939 $ 1,702,996
139
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 3
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Page 1 of 2
2003 2004 2005 2006
General Fund (GASB 54)
Nonspendable
Restricted
Committed
Assigned
Unassigned
General Fund (Prior to GASB 54)
Reserved
Unreserved
Total general fund
613,000 557,690
6,247,054 8,533,639
557,690 13,250
8,408,104 8,693,215
$ 6,860,054 $ 9,091,329 $ 8,965,794 $ 8,706,465
All other governmental funds (GASB 54)
Nonspendable $ - $ - $ - $
Restricted - - -
Committed - - -
Assigned - - -
Unassigned - - -
All other governmental funds (Prior to GASB 54)
Reserved 765,300 720,860 $ 705,560
Unreserved, reported in:
Special revenue funds 8,939,830 6,933,242 5,669,921 8,500,342
Debt service funds 809,012 1,107,362 1,305,239 1,075,347
Capital Projects funds 3,888,305 4,092,179 5,677,953 7,245,827
Total all other governmental funds $ 14,402,447 $ 12,853,643 $ 13,358,673 $ 16,821,516
Source:
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
$
Fund Balances
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
■All Other
Governmental
neraI Fund
140
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
Page 2 of 2
2007 2008 2009 2010 2011 2012
$
12,650
10,504,748
$ $ $ $ 5,000 $
- - - 18,000
- - - 8,237,141 8,378,557
17,800 17,900
7,687,515 7,371,530
17,900
5,739,140
$ 10,517,398 $ 7,705,315 $ 7,389,430 $ 5,757,040 $ 8,260,141 $ 8,378,557
$ $ - $ - $ - $ - $ -
- - - 5,014,817 2,749,681
- - - 402,306 -
- - - 11,127,221 7,021,183
10,834,781 12,943,487 9,123,401 14,461,546
1,233,234 1,248,901 135,438 3,051
8,113,739 6,831,634 7,101,258 8,541,195
$ 20,181,754 $ 21,024,022 $ 16,360,097 $ 23,005,792 $ 16,544,344 $ 9,770,864
141
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (a)
LAST TEN FISCAL YEARS
page 1 of 2
=EL
• 2003 2004 2005 2006
Revenues
Taxes $ 31,986,222 $ 34,148,173 $ 34,624,875 $ 37,801,814
Licenses and Permits 785,823 808,821 1,002,683 1,273,228
Intergovernmental 15,005,227 6,306,463 5,672,810 7,083,032
Charges for Services 1,796,946 2,919,115 2,649,678 2,345,931
Fines and Forfeitures 245,585 147,137 116,737 221,097
Investment Income 222,460 356,625 638,196 1,159,971
Miscellaneous 1,066,247 993,386 1,000,775 1,397,585
Total Revenues 51,108,510 45,681,724 45,705,754 51,282,658
Expenditures
General Government 5,892,912 5,982,594 6,136,540 6,882,594
Public Safety 17,532,136 18,393,514 19,604,151 20,953,226
Physical Environment 1,509,946 883,914 788,105 2,139,959
Transportation 4,779,885 2,620,038 1,705,692 2,447,096
Economic Environment 3,429,674 3,461,092 3,384,928 3,539,657
Mental & Physical Health 3,683
Culture and Recreation 2,985,083 3,187,113 3,358,583 3,687,580
Debt Service
Principal 754,000 804,000 851,000 888,000
Interest 924,964 1,057,974 1,033,474 1,006,161
Bond Issuance Costs 112,363 - - -
Capital Outlay 15,636,782 8,057,070 7,344,326 6,540,452
Total Expenditures 53,557,745 44,447,309 38,070,259 48,088,408
Excess (Deficiency) of Revenues (2,449,235) 1,232,411 1,498,955 3,194,250
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Capital Leases
Sale of Capital Assets
General Obligation Bonds Issued
General Obligation Refunding Bonds Issued
Operating Loan -Tukw ila MPD
A-enium 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)
Net Change in Fund Balances
5,513,212 350,000 150,000 2,143,581
(5,288,570) (900,000) (1,305,000) (2,430,769)
- 35,600 296,451
6,277,500
4,195,000
65,392
248,672
(4,439,240)
6,571,966
Ratio of Debt Service Expenditures 5.0%
To Total Non - Capital Expenditures
Note:
(a) All amounts are reported on the modified - accrual basis
Source:
Tukw ila Finance Department
142
(550,000) (1,119,400)
5.4%
5.4%
9,263
4.8%
CITY OF TUKWILA: 2012 CAFR
STATISTICAL SECTION
$ 39,660,792 $ 37,412,569 $ 37,167,281 $ 37,267,918 $ 38,035,681 $ 41,502,608
1,827,709 2,022,851 1,283,463 1,618,830 3,473,910 1,604,594
6,403,217 5,697,598 17,596,486 14,525,872 24,059,907 7,626,487
2,024,892 2,569,381 1,443,680 2,366,174 2,359,600 3,974,356
266,188 259,991 301,761 390,079 308,027 220,752
1,425,423 926,913 282,604 144,258 275,479 106,286
1,751,145 816,054 701,957 891,307 356,409 131,979
53,359,366 49,705,357 58,777,232 57,204,438 68,869,013 55,167,062
7,034,602 7,992,286 8,574,563 8,387,317 8,253,440 8,504,511
21,038,810 22,878,689 25,576,932 24,676,370 24,327,498 24,918,306
2,196,422 2,255,880 2,058,913 1,724,147 2,060,482 3,022,516
2,413,390 2,783,077 2,334,298 2,332,178 2,676,511 2,769,182
3,878,658 4,995,514 4,601,391 4,541,845 4,682,646 4,767,944
4,204 4,173 4,332 4,539 4,591
3,938,779 4,293,658 4,365,023 4,163,503 3,507,150 3,373,000
930,000 972,000 1,316,297 1,555,028 1,766,774 1,991,540
914,584 872,224 778,018 849,148 881,850 1,178,464
7,243,879 6,089,703 16,860,362 11,513,976 25,643,704 12,099,293
49,593,328 53,137,204 66,470,129 59,748,051 73,804,646 62,624,756
4,036,039 (3,431,846) (7,692,894) (2,543,613) (4,935,633) (7,457,694)
2,266,349 2,515,982 3,865,744 2,461,806 11,001,619 7,625,792
(1,131,666) (1,107,543) (2,234,444) (1,020,857) (10,061,205) (6,174,358)
110,509 15,468 -
100 53,592 1,014,608 27,308 21,406 9,903
6,935,000 5,055,688
6,180,000 6,947,574
- - (658,706)
- - 112,151
483,599
(108,326)
(6,555,273) (6,880,397) (1,069,000)
1,134,783 1,462,031 2,713,085 7,556,917
(5,055,688)
5,013,304 $
4.6% 4.1% 4.4% 5.2%
143
977,288
802,631
(3,958,345) $ (6,655,064)
5.8%
6.7%
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 5
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Fiscal Year
Property Sales & Use Utility(') Excise Business Other') Total Taxes
2003 $ 9,854,007 $ 16,171,756 $ 1,591,922 $ 3,500,318 $ 431,188 $ 437,031 $ 31,986,222
2004 10,493,728 16,293,960 2,309,787 4,068,110 530,725 451,863 34,148,173
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
change 2002 -2011 73.2% 479.2% 423.7%
Notes:
w 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.
(0) "Other Taxes" include a hotel /motel tax, penalties and interest on delinquent taxes and other miscellaneous tax revenues.
Source:
Tukwila Finance Department
$50,000,000 -
$40,000,000 -
$30,000,000 -
$20,000,000 -
$10,000,000
$-
Tax Revenue by Source
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
• Other
• Business Tax
• Excise Tax
❑ Utilty Tax
• Sales & Use Tax
• Property Tax
144
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 6
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected Within the Fiscal Year
of the Levy Total Collections to Date
Taxes Levied for Collections in
Fiscal Year Fiscal Year Amount % of Levy Subsequent Years Amount % of Levy
2003 $ 10,136,315 $ 9,924,909 97.91% $ 210,119 $ 10,135,028 99.99%
2004 10,489,114 10,345,276 98.63% 143,328 10,488,604 100.00%
2005 10,731,724 10,593,753 98.71% 137,447 10,731,200 100.00%
2006 10,973,030 10,844,728 98.83% 124,953 10,969,681 99.97%
2007 11,177,532 10,994,127 98.36% 181,457 11,175,584 99.98%
2008 11,411,293 11,194,247 98.10% 213,805 11,408,051 99.97%
2009 12,283,193 12,017,213 97.83% 255,352 12,272,564 99.91%
2010 13,234,489 13,152,036 99.38% 38,253 13,190,289 99.67%
2011 13,385,080 13,225,338 98.81% 91,997 13,317,336 99.49%
2012 13,705,220 13,521,621 98.66% 13,521,621 98.66%
Source:
King County Office of Finance
145
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 7
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Fiscal Year
Total Assessed Total Direct
Real Property Personal Property Public Utilities Value Tax Rate
2003 $ 2,832,422,720 $ 471,448,140 $ 80,219,849 $ 3,384,090,709 $ 3.10754
2004 2,916,855,190 447,099,099 77,169,236 3,441,123,525 3.11712
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
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
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
W Public Utilities
Personal Property
iiii Real Property
146
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
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
General Special King Port of Medical School Dist Flood Hospital
Fiscal Year Levy Levy Total WA State County(e) Seattle Service #406 Control District #1 Total
2003 $3.10754 $
2004 3.11712
2005 3.03706
2006 2.84033
2007 2.56911
2008 2.37324
2009 2.66345
2010 2.82566
2011 2.95408
2012 2.98778
$3.10754 $2.75678 $ 1.96799 $0.25402 $ 0.23717 $ 5.05267 $ 0.04669 $ 0.09200 $13.51486
3.11712 2.68951 1.91484 0.25321 0.23182 5.04535 0.04658 0.09039 13.38882
3.03706 2.49787 1.86293 0.23330 0.21982 5.01637 0.04482 0.59000 13.50217
2.84033 2.32535 1.75139 0.23158 0.20621 4.78874 0.04212 0.55652 12.74224
2.56911 2.13233 1.66106 0.22359 0.30000 4.73164 0.10000 0.50854 12.22627
2.37324 1.96268 1.51508 0.19700 0.27404 4.12360 0.09123 0.47141 11.00828
2.66345 2.22253 1.74587 0.21597 0.30000 3.89183 0.10514 0.53290 11.67769
2.82566 2.27990 1.90797 0.22366 0.30000 5.03380 0.10976 0.55753 13.23828
2.95408 2.42266 1.98580 0.22982 0.30000 5.44659 0.11616 0.50372 13.95883
2.98778 2.56720 2.11172 0.23324 0.30000 5.69832 0.13210 0.50000 14.53036
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
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
147
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 9
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Type of Business
2012 Assessed
Valuation
Percent of
2012 Total
Assessed
Value)
Percent of
2002 Total
2003 Assessed Assessed
Valuation • Valuem
Boeing Company
WEA Southcenter LLC
La Ranta LP /Segale Properties
KIR Tukw ila 050 LL /KIMCO
E Property Tax Dept
Walton CWWA Eproperty Tax Incorporated (McElroy)
Boeing Employees Credit Union
Sea -Tuk Warehouse LLC
Wig Properties LLC (JC Penney)
Anne Arundel Apartments LLC
Jorgensen Forge Corporation
Federated Department Stores (Macys)
Puget Sound Energy /Gas - Bectric
Southcenter Corporate Square
BRCP Riverview Raze LLC
Koar - Seatac Partners LP (Embassy Suites)
Merrill Creek Holding LLC (Kenw orth Motors)
CHA Southcenter LLC (Doubletree Inn)
Harnish Group lncorporated
Low e's HM/ Incorporated
Sterling Realty Organization
Hill Investment Company
Qwest Corporation (US West Communications)
AMB Institutional Alliance
Group Health Cooperative
Heitman
Calw est Industrial
TOTALS
Airplane company
Department Stores
Commercial Roperties
Commercial Roperties
Commercial Properties
Investment Property
Credit Union
Food Distribution
Department Stores
Apartments
Steel Manufacturer
Department Stores
Bectric /Gas Utility
Hair Loss Center
Commercial Properties
Lodging
Truck Manufacturer
Lodging
Truck Equipment
Home Improvement
Commercial Roperties
Cormiercial Roperties
Telephone Utility
Commercial Properties
Healthcare Admiin
Commercial Roperties
Property Management
$ 490,724,957
295,766,166
161,151,755
81,486,500
66,723,700
58,562,300
41,292,565
34,167,200
32,877,852
30,034,300
29,667,335
29,561,600
26,771,162
26,070,700
25,353,700
22,718,522
20,112,600
17,277,300
17,150,770
16,521,414
14,292,600
7,445,700
5,170,472
10.56%
6.36%
3.47%
1.75%
1.44%
1.26%
0.89%
0.73%
0.71%
0.65%
0.64%
0.64%
0.58%
0.56%
0.55%
0.49%
0.43%
0.37%
0.37%
0.36%
0.31%
0.16%
0.11%
0.00%
0.00%
0.00%
0.00%
$ 434,871,892
132,667,647
67,619,800
19,438,600
58,056,588
18,332,500
10,694,100
9,367,255
33,668,500
21,770,807
16,821,766
15,029,000
16,754,400
10,135,918
15,273,613
6,007,100
19,556,132
73,517,700
30,012,408
43,561,900
42,612,000
12.9%
3.9%
2.0%
0.6%
1.7%
0.5%
0.3%
0.3%
1.0%
0.6%
0.5%
0.4%
0.5%
0.3%
0.5%
0.2%
0.6%
2.2%
1.0%
1.4%
1.4%
$ 1,550,901,170 33.36% $ 1,095,769,626 32.8%
Notes:
(°) In 2012 the total assessed property value in the City of Tukwila was $4,649,191,308.
rol In 2003 the total assessed property value in the City of Tukwila was $3,384,090, 709.
Source:
King County Department of Assessments
148
CITY OF TUKWILA: 2012 CAFR
STATISTICAL SECTION
149
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 10
RETAIL SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
page 1 of 2
Major Industry Sector 2003 2004 2005(a)
Construction and Contracting $ 1,119,595 $ 958,758 $ 676,427
Finance, Insurance & Real Estate 54,992 82,794 102,130
Manufacturing 520,474 446,965 503,778
Transportation, Communications & Utilities 377,596 387,148 384,703
Wholesale - Durable /Non - durable Goods 1,761,749 1,862,528 2,337,018
Retail Trade - General Merchandise 2,545,631 2,574,671 2,563,103
Retail Trade - Furniture /Home Furnishings 2,304,037 2,405,967 2,342,553
Retail Trade - Miscellaneous 1,723,147 1,735,045 1,497,474
Retail Trade - aothing & Accessories 1,197,591 1,247,109 1,636,183
Retail Trade - Restaurants 933,886 1,031,625 1,072,275
Retail Trade - Automotive /Gas 847,864 982,413 980,006
Retail Trade - Building Materials 763,013 850,109 815,379
Service Industries - Business 530,833 488,857 979,752
Service Industries - Hotels 361,789 355,514 406,547
Service Industries - Other 507,935 486,215 278,041
All Other Categories 292,827 288,169 188,540
Total Retail Sales Tax Collections $ 15,842,959 $ 16,183,887 $ 16,763,909
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.
150
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
page 2 of 2
2006 2007 2008 2009 2010 2011 2012
$ 1,166,088 $ 2,018,058 $ 1,967,785 $ 869,640
93,747 121,879 118,780 119,121
450,138 590,455 375,263 246,429
436,260 483,419 492,960 440,206
2,048,517 2,457,437 1,760,449 1,436,045
2,667,481 2,571,601 2,231,745 2,072,356
2,531,049 2,399,347 1,830,576 1,304,234
1,642,722 1,766,853 1,718,898 1,473,496
1,704,213 1,838,646 2,103,630 2,017,904
1,119,859 1,158,424 1,312,603 1,292,252
1,053,184 1,026,778 1,066,183 748,482
855,243 777,870 619,657 589,341
1,141, 632 1,198, 690 1,129, 380 868,260
453,376 531,836 548,962 453,657
278,777 294,869 318,696 283,319
205,644 179,421 185,312 208,467
$ 917,250 $ 1,390,952 $ 961,125
99,975 115,123 143,792
387,234 232,737 390,252
441,822 405,197 432,608
1,346,750 1,119,527 1,077,613
2,068,263 2,003,947 2,000,865
1,380,407 1,771,083 1,537,143
1,521,741 1,626,452 1,703,741
2,018,304 2,037,554 2,082,930
1,342,964 1,337,067 1,472,343
664,310 670,806 690,076
499,383 487,620 516,861
882,012 932,422 928,610
428,450 459,606 487,977
215,045 202,217 234,870
366,925 553,493 381,693
$ 17,847,930 $ 19,415,583 $ 17,780,879 $ 14,423,209 $ 14,580,835 $ 15,345,801 $ 15,042,499
151
2003 2004 2005 2006 2007(c) 2008 (d) 2009 e) 2010 2011 2012 J
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 11
SALES TAX RATE DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
BASIC SALES TAX RATES
City of Tukw ila 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% 0.15% 0.15% 0.25% 0.25% 0.25% 0.25% 0.25%
Regional Transit Authority 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.90% 0.90% 0.90% 0.90%
Metro 0.80% 0.80% 0.80% 0.80% 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 Administration Fee 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
Total Basic Combined Sales Tax Rate 8.80% 8.80% 8.80% 8.80% 8.90% 9.00% 9.50% 9.50% 9.50% 9.50%
SPECIAL SALES TAX RATES
Restaurants (e)
Motor Vehicles (b)
0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%
Notes:
r 0 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 fax expired on October 1, 2011 as taxes imposed to pay the construction bonds for the Seattle baseball stadium expired.
rol 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.
(0 Effective April 1, 2007, King County increased the local sales & use tax rate one -tenth of one percent (.001).
The tax will be used for transportation purposes.
(d0 Effective April 1, 2008, King County increased the local sales & use tax rate one -tenth of one percent (.001).
The tax will be used for chemical dependency or mental health treatment services.
lei 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.
152
CITY OF TUKWILA: 2012 CAFR
STATISTICAL SECTION
153
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 12
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Page 1 of 2
2003 2004 2005 2006 2007
GOVERNMENTAL ACTIVITIES
General Obligation Bonds (c) $ 21,628,591 $ 20,806,553 $ 19,775,262 $ 18,881,798 $ 17,946,335
Leases
Total Governmental Activities 21,628,591 20,806,553 19,775,262 18,881,798 17,946,335
BUSINESS -TYPE ACTIVITIES
General Obligation Bonds 5,772,500 5,382,500 4,972,500 4,547,500 4,102,500
Revenue Bonds 4,168,910 3,710,438 3,143,360 5,824,452 5,470,162
Public Works Trust Fund Loans 1,032,364 2,924,739 4,911,253 9,781,151 9,378,506
Leases - 108,818 77,947 45,587
Total Business -Type Activities 10,973,774 12,017,677 13,135,931 20,231,050 18,996,755
TOTAL PRIMARY GOVERNMENT(a) $ 32,602,365 $ 32,824,230 $ 32,911,193 $ 39,112,848 $ 36,943,090
Population (b) 17,270 17,240 17,110 17,930 18,000
Per Capita Personal Income (b) $ 44,704 $ 49,533 $ 48,789 $ 52,655 $ 57,409
Percentage of Personal Income 4.24% 3.87% 3.97% 4.16% 3.58%
Debt Per Capita $ 1,897 $ 1,915 $ 1,935 $ 2,193 $ 2,052
Notes:
(a) Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements section.
(b) Reference SCHEDULE 17, Demographic Statistics, for population and personal income data.
" "" Data not available at time of publication.
(c) Includes amounts Due to Other Governments.
(d) Prior year estimated population used due to unavailability of current year estimate.
Sources:
$50,000,000
$40,000,000
530,000,000
$20,000,000
$10,000,000
$-
Total Debt
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
154
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
Page 2 of 2
2008 2009 2010 2011 2012
$ 17,261,348 $ 22,453,003 $ 26,763,975 $ 28,006,800 $ 25,752,600
40,184 35,891 -
17,261,348 22,453,003 26,804,159 28,042,691 25,752,600
3,642,500 3,423,797 3,238,825 - -
5,112,231 4,790,000 4,395,000 3,980,000 3,540,000
9,021,951 8,405,397 7,788,843 7,179,635 6,621,342
11,666 - - -
17, 788,348 16, 619,194 15,422, 668 11,159, 635 10,161,342
$ 35,049,696 $ 39,072,197 $ 42,226,827 $ 39,202,326 $ 35,913,942
18,080 18,170 19,107 19,486 19,486 0)
$ 58,141 $ 56,904 $ 44,271 $ 43,887 * **
3.33% 3.78% 4.99% 4.58%
$ 1,939 $ 2,150 $ 2,210 $ 2,012 $ 1,843
155
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Debt Payable Ratio of Net Net
Less Debt from Bonded Debt Bonded
Fiscal Gross Bonded Service Enterprise Net Bonded to Assessed Debt per
Year Population Assessed Value Debt Funds(e) Revenues' Debt Value Capita
2003 17,270 $ 3,384,090,709 $ 27,168,000 $ 809,012 $ 5,772,500 $ 20,586,488 0.61% $ 1,192
2004 17,240 3,441,123,525 25,974,000 1,107,362 5,382,500 19,484,138 0.57% 1,130
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
Note:
(a) In 2011, the Debt Payable Balance from Enterprise Revenues was transferred to the Debt Service Funds.
(b) 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
Tukwila Finance Department
$30,000,000
$25,000,000
$20, 000,000
$15,000,000
$10,000,000
$5,000,000
$-
Net Bonded Debt
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
156
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 14
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
AS OF DECEMBER 31, 2012
Jurisdiction
Net General Percentage Estimated
Obligation Debt Applicable to Applicable to
Outstanding Tukw ila(1) Tukw ila
Direct:
City of Tukwila $ 25,752,600 100.00% $ 25,752,600
Overlapping:
King County 845,717,000 1.46% 12,347,468
King County Library 136,748,287 2.34% 3,199,910
Port of Seattle 312,005,000 1.46% 4,555,273
Tukwila School District#406 22,690,199 90.41% 20,514,209
Hospital District #1 5.34%
Total Overlapping Debt: 1,317,160,486 40,616,860
Total Direct and Overlapping Debt: $ 1,342,913,086 $ 66,369,460
Sources:
King County Office of Finance
King County Office of Assessments
(1) The percentage of overlapping debt applicable is estimated using taxable county assessed property values.
$30,000,000
$25,000,000
$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
157
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 15
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Page 1 of 2
2003 2004 2005 2006
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, 2012
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
$ 253, 806, 804 $ 258, 084, 264 $ 270, 791, 907 $ 296, 095, 014
26, 358, 988 24, 866, 638 23, 407, 761 24, 494, 996
$ 227, 447, 816 $ 233, 217, 626 $ 247, 384,146 $ 271, 600, 018
10.39% 9.64% 8.64% 8.27%
$ 4,649,191,308
348,689,348
25,752,600
3,144, 413
28, 897, 013
51,784
28, 948, 797
$ 319,740,551
Legal debt margin
Source:
Tukw ila Finance Department
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CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
Page 2 of 2
2007 2008 2009 2010 2011 2012
$ 333, 768, 277 $ 388,178, 248 $ 373, 048, 810 $ 360, 711, 509 $ 356,445, 452 $ 348, 689, 348
23,188, 240 21, 881, 765 28, 291, 920 32, 919,123 29, 703, 995 28, 948, 797
$ 310, 580, 037 $ 366, 296, 483 $ 344, 756, 890 $ 327, 792, 386 $ 326, 741,457 $ 319, 740, 551
6.95% 5.64%
7.58% 9.13%
159
8.33% 8.30%
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
SCHEDULE 16
REVENUE BOND COVERAGE - WATER AND SEWER BONDS (d)
LAST TEN FISCAL YEARS
Net Revenue
Fiscal Gross Operating Available for Debt Average Annual Debt Service Requirements Times
Year Revenueo) Expenses(b) Service Principal Interest Total Coverageec)
2003 $ 7,308,831 $ 5,784,330 $ 1,524,501 $ 352,692 $ 129,354 $ 482,046 3.16
2004 7,746,252 5,876,411 1,869,841 345,000 119,647 464,647 4.02
2005 7,804,815 6,161,436 1,643,379 334,091 110,015 444,106 3.70
2006 8,052,850 6,418,607 1,634,243 285,162 116,973 402,135 4.06
2007 8,574,512 6,774,625 1,799,887 273,920 113,819 387,739 4.64
2008 8,854,566 6,099,295 2,755,271 271,337 105,850 377,187 7.30
2009 10,196,365 8,384,852 1,811,513 267,144 97,348 364,492 4.97
2010 9,833,857 8,196,277 1,637,580 261,612 88,884 350,496 4.67
2011 11,921,278 8,965,455 2,955,823 254,175 80,517 334,692 8.83
2012(d) 5,250,929 3,985,190 1,265,739 136,573 30,240 166,813 7.59
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.
(c) 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.
(d) In 2012, the Water and Sewer Bond Funds were segregated. Thus, 2012 data includes only the Water Bond Fund.
Sources:
Tukw ila Finance Department
Coverage
Ratio
10.00
8.00
6.00
4.00
2.00
Water and Sewer Revenue Bonds
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (d)
160
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 17
REVENUE BOND COVERAGE - SEWER BONDS
2012
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
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.
(c) 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
161
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 18
REVENUE BOND COVERAGE - SURFACE WATER BONDS
LAST SEVEN FISCAL YEARS
Net Revenue
Fiscal Gross Operating Available for Debt Average Annual Debt Service Requirements Times
Year Revenueeai Expenses(') 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
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.
(0 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
Cove rage
Ratio
100.00
80.00
60.00
40.00
20.00
Surface Water Revenue Bonds
2006 2007 2008 2009 2010 2011 2012
162
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 19
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Per Capita Number of Number of Tukw ila School
Fiscal Personal Personal Single- Farnily Multi - Family District Unemployment
Year Population Income (a) Income (b) Homes Units Enrollment Rate (°)
2003 17,270 $ 44,704 $ 772,038 3,468 4,196 2,568 8.4%
2004 17,240 49,533 853,949 3,732 4,107 2,628 7.0%
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 * ** * ** 3,896 4,094 2,902 7.4%
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:
Tukw ila 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
-
1
1
1
-
■
-
T-
t
2003
2004
2005
2006
2007
2008
2009
2010 2011
2012
163
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 20
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Name of Company /Employer Product or Business
2012 Full & Percentage of 2003 Full & Percentage of
Part -Time Total City Part -Time Total City
Employment Employees Employment Employees
Boeing Company Airplane company 7,572 18.86% 6,882 17.15%
Group Health Cooperative Data Ctr /Lab /Pharmacy /Mfg. 2,386 5.94% 1,900 4.74%
King County Metro Transit operating base 778 1.94% 700 1.74%
Costco Wholesale Cash /carry Warehouse 703 1.75% 352 0.88%
Carlisle Interconnect Technologies Wire /Cable Connectors 567 1.41% 0.00%
Boeing Employees Credit Union Banking /Credit Union 543 1.35% 793 1.98%
Macy's Department Store 445 1.11% 381 0.95%
Red Dot Corporation Heater /air conditioning equipment 348 0.87% 246 0.61%
J.C. Penney Department Store 337 0.84% 400 1.00%
United Parcel Service Postal Delivery Service 335 0.83% 320 0.80%
Sub-total - Major Employers 14,014 11,974
All Other Employment 26,142 28,148
TOTAL EMPLOYMENT
40,156 40,122
Source:
Tukw ila Finance Department - Business Licenses
164
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 21
STAFFING LEVELS BY DEPARTMENT
LAST TEN FISCAL YEARS
2003 2004 2005 2006 2007 2008 • 2009 1 2010 2011 2012
DEPARTM ENT
Administrative Services (e) 21.75 21.75 22.75 23.75 26.75 19.75 - -
Council 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Mayor (0 9.50 11.50 11.00 11.00 12.00 11.00 16.00 17.00 15.75 16.75
Human Resources (a) - - 4.00 4.00 4.00 4.00
Finance 12.00 13.00 12.00 11.00 11.00 12.00 12.00 13.00 11.00 12.00
Recreation 20.50 20.25 22.00 22.50 23.50 23.50 22.50 20.75 16.25 16.25
Community Development 20.88 19.88 20.88 20.88 20.25 24.25 24.25 23.00 22.63 23.38
Court (a) - - - 9.75 8.75 8.75 9.00
Police i0 81.50 78.00 81.00 83.00 80.00 83.00 82.00 80.00 83.00 88.00
Fire 64.00 63.00 67.00 65.00 66.00 64.00 63.00 65.00 66.00 67.00
Information Technology (a) - 7.00 8.00 8.00 8.00 8.00
Public Works 35.00 35.00 35.00 34.00 32.00 33.00 32.00 30.00 30.00 30.00
Parks 9.50 9.50 10.50 10.25 7.50 7.50 7.50 7.50 7.50 7.50
Street 10.00 11.00 11.00 10.00 11.00 12.00 12.00 11.00 12.00 12.00
Water 5.00 5.00 6.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Sewer 3.00 3.00 3.00 3.00 3.00 2.00 2.00 1.00 2.00 2.00
Golf 9.50 9.50 9.50 9.25 9.25 9.75 9.75 10.00 9.25 8.25
Surface Water 5.00 5.00 7.00 7.00 7.00 8.00 8.00 7.00 8.00 8.00
Equipment Rental 4.00 4.00 4.00 5.00 4.00 5.00 5.00 5.00 5.00 5.00
318.13 316.38 329.63 329.63 327.25 335.75 331.75 325.00 323.13 331.13
Notes:
Based on filled positions not budgeted positions.
(a) The departments for Human Resources, Court, City Clerk and Information Technology were previously reported under Administrative Services.
roi The department of City Clerk began reporting to the Mayor's department in 2009.
(c) Added 5.0 FTE to focus on crime prevention /reduction efforts
Sources:
Tukw ila Finance Department
Public Works
Information Technology
Fire
Staffing Levels by Department
Surface Water
Sewer
Water
Street
Parks
Golf
Equipment Rental
Council Mayor
Human Resources
Finance
Recreation
Community
Development
-Court
Police (c)
165
2007 I 2008 2009 2010 2011 2012.
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 22
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2003 2004 2005
FUNCTION
Police
Number of Calls for Service
31,000 30,032 32,922 33,686 33,985 35,816 33,095 32,889 30,272 31,916
Fire
Number of Responses 4,250 4,229 4,710 4,921 4,673 4,824 4,654 4,574 4,649 4,844
Total Fire Loss $910,655 $910,655 $1,414,741 $2,982,265 $3,065,005 $2,300,685 $1,934,596 $1,655,571 $1,601,596 $675,847
Total Inspections 5,549 5,855 5,482 4,705 4,845 6,787 6,787 0) 1,550 0) 1,360 0) 4,541
Parks and Recreation
Class Participants
Community Ctr Admissions
Rounds of Golf Rayed
Pool Attendance
61,000 64,000 64,000 64,000 98,087 109,273 103,603 85,693 64,049 58,260
30,800 35,150 33,750 34,850 90,141 117,533 134,183 134,275 115,728 116,136
(*) 35,764 53,070 54,449 55,195 55,446 53,565 53,800 50,445 45,947 47,392
42,917 59,996 72,778 72,963 57,624 59,077 80,727 101,128 66,213 69,332
Street
Mies 79 79 79 79 79 79 79 79 79 79
Fours Maintaining 14,587 13,706 15,243 16,970 17,540 19,840 22,140 20,360 20,360 22,920
Signalized Intersections 61 61 61 61 63 63 59 59 59 62
Hours Maintaining 6,855 6,445 9,054 7,642 7,540 7,540 6,700 6,925 6,925 7,000
Water Utility Services
Total Customers 2,079 2,107 2,164 2,117 2,113 2,109 2,112 2,100 2,109 2,117
Total Gallons/Water(in
thousands) 702,364 765,000 886,000 789,981 680,649 660,915 731,469 630,755 625,976 650,659
Sanitary Sewer
Total Customers 1,671 1,698 1,710 1,720 1,718 1,684 1,694 1,699 1,710 1,727
Surface Water
Total Customers
Licenses
Business Licenses
Outside Contractors
5,015 5,064 5,100 5,107 5,156 5,164 5,204 5,207 5,207 5,226
2,262 2,292 2,286 2,354 2,350 2,523 2,422 2,454 2,611 2,030
al 1,066
Permits
Building Permits 353 364 430 422 425 423 265 290 389 354
Mechanical Permits 183 182 193 239 238 256 159 160 180 191
Bectrical Permits WA WA WA WA 758 1,533 821 955 1,158 1,175
Rurrbing Permits WA WA WA 192 306 264 145 163 187 210
Public Works Permits 83 97 112 144 136 154 131 138 106 126
Libraries
Number of Libraries 2 3 3 3 3 3 3 2 2 2
Total Orculation 121,468 215,115 215,115 320,794 306,001 303,665 318,991 327,004 333,451 332,509
Notes:
0) 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.
0) 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:
Tukw ila Departments, King County Library System
166
CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 23
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
FUNCTION
General Government
Total City Area (Square Miles) 8.6 8.6 8.6 8.6 8.6 8.6 9.7 9.7 9.7 9.6
Public Safety
Police:
Number of Vehicle Units 59 63 64 64 64 67 70 76 84 88
Fire:
Number of Fire Stations 4 4 4 4 4 4 4 4 4 4
Number of Engines /Rescue Trucks /Ladders 8 8 8 9 9 9 9 8 7 7
Number of Medical Aid Vehicles 2 2 2 2 2 2 2 2 1 1
Number of Hazardous Materials Trailer Units N/A N/A 1 1 2 2 2 2 2 2
Transportation
Paved Streets (lane miles) 163 163 163 163 163 163 178 178 178
Sidewalks (miles) 54 54 54 54 54 54 56 56 56
Number of Traffic Signals 55 55 55 55 57 57 59 59 59
Number of Streetlights Owned by Seattle City Light 1,180 1,180 1,180 1,180 1,180 1,180 1,180 1,335 1,335
Number of Streetlights Ow ned by Puget Sound Energy 670 670 670 670 670 670 696 696 623
Number of Streetlights Ow ned by City of Tukw ila - - - -
l°)
(°)
(c)
188.2
64.8
64
901
187
1,210
Culture and Recreation
Parks Acreage (a) 158 158 158 161 160 162 162 162 162 166
Number of Parks 15 15 15 16 18 18 18 18 18 19
Golf Course Acreage 67 67 67 67 67 67 67 67 67 67
Maintained Trails (miles) 11 11 11 11 11 11 15 15 15 15
Number of Flaygrounds 13 13 13 13 13 13 11 11 11 11
Swimming Pool 1 1 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 2 3 3 3 3 3 3 2 2 2
Water
Water Distribution Mains (miles) 45 45 45 45 47 47 41 41 41 41
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) 513 527 533 537 555 572 541 542 554 576
Vehicles 7 6 7 7 8 8 8 8 8 8
Sewer
Sanitary Sewers (miles) 33 33 33 33 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 3 3 5 5 6 6 6 6 6
Surface Water
Storm Drains (miles) (b) 58 59 60 62 67 67 69 69 70 70
Vehicles 4 5 5 4 4 4 4 4 4 4
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
167
CITY OF TUKWILA: 2012 CAFR
STATISTICAL SECTION
168