HomeMy WebLinkAbout2011 Comprehensive Annual Financial Report (CAFR)City of Tukwila, Washington
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended December 31, 2011
Foster Golf Links - Tukwila, Wa
The City of Tukwila, Washington
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
For the Year Ended December 31, 2011
Prepared by the City of Tukwila, Finance Department
Peggy McCarthy, Finance Director
JIM HAGGERTON, MAYOR
TUKWILA CITY COUNCIL
Verna Seal, President
Joe Duffie Kate Kruller
Dennis Robertson Allan Ekberg
Kathy Hougardy De'Sean Quinn
Cover photo by Craig Zellerhoff
Foster Golf Course
CITY OF TUKWILA: 2011 CAFR TABLE OF CONTENTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2011
TABLE OF CONTENTS
Page
I. INTRODUCTORY SECTION
Table of Contents
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 13
Basic Financial Statements
Government -wide Financial Statements:
Statement of Net Assets 31
Statement of Activities 32
Fund Financial Statements:
Balance Sheet — Governmental Funds 35
Statement of Revenues, Expenditures, and Changes in
Fund Balance — Governmental Funds 36
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 37
Statement of Revenues, Expenditures, and Changes in
Fund Balance — Budget and Actual:
General Fund 38
Arterial Street Fund 39
Statement of Net Assets — Proprietary Funds 42
Statement of Revenues, Expenses, and Changes in
Fund Net Assets — Proprietary Funds 43
Statement of Cash Flows — Proprietary Funds 44
Statement of Fiduciary Net Assets — Fiduciary Fund 48
Statement of Changes in Fiduciary Net Assets — Fiduciary Fund 49
Notes to the Financial Statements 51
Required Supplemental Information:
Firemen's Pension Trust Fund 99
Retiree Medical and Long -Term Care Benefits for LEOFF I Employees 99
Notes to the Required Supplementary Information 100
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet — Non -Major Governmental Funds 102
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Governmental Funds 103
Combining Balance Sheet — Non -Major Special Revenue Funds 106
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Special Revenue Funds 107
Schedules of Revenues, Expenditures, and Changes in
Fund Balances — Budget and Actual:
Hotel /Motel Tax Fund 108
Street Fund 109
CITY OF TUKWILA: 2011 CAFR TABLE OF CONTENTS
Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual:
(continued)
Page
Drug Seizure Special Revenue Fund 110
Combining Balance Sheet — Non -Major Debt Service Funds 112
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance — Non -Major Debt Service Funds 114
Combining Balance Sheet — Non -Major Capital Project Funds 118
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Capital Project Funds 119
Combining Statements of Net Assets — Internal Service Funds 122
Combining Statement of Revenues, Expenses, and Changes in
Fund Net Assets — Internal Service Funds 123
Combining Statement of Cash Flows — Internal Service Funds 124
III. STATISTICAL SECTION
Schedule
Net Assets by Component 1 128
Changes in Net Assets 2 130
Fund Balances, Governmental Funds 3 132
Changes in Fund Balances of Governmental Funds 4 134
General Government Tax Revenues by Source 5 136
Property Tax Levies and Collections 6 137
Assessed and Estimated Actual Value of Taxable Property 7 138
Property Tax Rates — Direct and Overlapping Governments 8 139
Principal Property Taxpayers 9 140
Retail Sales Tax Collections by Sector 10 142
Sales Tax Rate Direct and Overlapping Governments 11 144
Ratios of Outstanding Debt by Type 12 146
Ratios of General Bonded Debt Outstanding 13 148
Computation of Direct and Overlapping Debt 14 149
Legal Debt Margin Information 15 150
Revenue Bond Coverage — Water and Sewer Bonds 16 152
Demographic Statistics 17 154
Principal Employers 18 155
Full -Time Equivalent City Government Employees by Function 19 156
Operating Indicators by Function 20 157
Capital Assets by Function 21 158
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COMMUNITY
DEVELOPMENT
Jack Pace
)
CITY OF TUKWILA: 2011 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
De'Sean Quinn, Chairperson
Dennis Robertson, Member
Kate Kruller, Member
COMMUNITY AFFAIRS AND PARKS
Kathy Hougardy, Chairperson
Joe Duffle, Member
Allan Ekberg, Member
1
PUBLIC WORKS
Bob Giberson
POLICE
Mike Villa
TRANSPORTATION
Allan Ekberg, Chairperson
Kathy Hougardy, Member
De'Sean Quinn, Member
UTILITIES
Dennis Robertson, Chairperson
Joe Duffle, Member
Kate Kruller, Member
CITY OF TUKWILA: 2011 CAFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
2
City of Tukwila
6200 Southcenter Blvd, Tukwila, WA 98188 Jim Haggerton, Mayor
July 23, 2012
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 2011 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, 2011. 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
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
3
CITY OF TUKWILA: 2011 CAFR LETTER OF TRANSMITTAL
position of the City as measured by the financial activity of the City's various funds. All
disclosures necessary to enable the reader to gain the maximum understanding of the
City's financial activity have been included. The report has been prepared in
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, 2011 provided no instances of material weaknesses in the
internal control structure or significant violations of applicable laws.
B. ORGANIZATION OF THE REPORT
The report is divided into three sections: the Introductory Section, the Financial Section,
and the Statistical Section. The Introductory Section contains the table of contents, a
list of the City's principal officials, an organizational chart, this letter of transmittal, and
the Certificate of Achievement for Excellence in Financial Reporting from the
Government Finance Officers' Association of the United States and Canada (GFOA) for
the 2010 CAFR. The Financial Section contains the Auditor's Report, completed by the
Washington State Auditor, Management's Discussion and Analysis, Government -Wide
Financial Statements, the Fund Financial Statements, Notes to the Financial
Statements and Other Required Combining and Supplemental Information. The
Statistical Section, which is unaudited, contains a range of statistical tables and charts
that present various financial, economic, social, and demographic data about the City.
This information depicts various trends that have affected the fiscal condition of the City
over the last ten years.
C. 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
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CITY OF TUKWILA: 2011 CAFR LETTER OF TRANSMITTAL
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
19,107; however, the daytime shopper /visitor and working population can reach over 150,000
during the holiday shopping season.
II. ECONOMIC CONDITION
A. SUMMARY OF LOCAL ECONOMY
A diverse regional economy is led by The Boeing Company and other smaller manufacturing
companies. The Puget Sound region is a major international trade gateway to the Far East.
Also, high tech industries 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 Tight 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 $15.3 million
in revenue for 2011. The total combined retail sales activity amounted to approximately $1.8
billion in 2011. While this represents a slight increase in sales tax revenue and retail activity
within Tukwila, as compared to last year, the City continues to be impacted by the current
economic climate. Although construction activity was up 51%, manufacturing and wholesale
trade sectors were down 38 percent and 18 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 $4.7 billion as
well as our above - mentioned sales tax base, and has allowed the City to pursue a long -term
capital investment program.
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CITY OF TUKWILA: 2011 CAFR LETTER OF TRANSMITTAL
The City is experiencing modest growth in overall development activities and in retail sales.
Permitting activity increased from 1,706 permits issued in 2010 for a total value of $89.9 million
to 2,020 permits issued in 2011 for a total value of $92.4 million. The total retail sales activity of
$1.8 billion in 2011 was an increase of $76.2 million over 2010. The trend of modest but
consistent growth has continued into 2012.
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.
The Southcenter Parkway Extension project to widen the two lane roadway to five lanes
between South 180th and South 200th Street will facilitate the Tukwila South development. The
master plan for Tukwila South anticipates the creation of 25,000 jobs through the addition of 5 to
10 million square feet of office technology / flex -tech space, 1 to 2 million square feet of goods
and services, and 1,700 units of housing.
Tukwila designated the North Highline as a potential annexation area in 1995 in response to
King County's desire for all unincorporated areas to be incorporated to the cities per their county
wide planning policies. This area is approximately 166 acres with a small residential population.
The area's boundary is South Director Street on the north, South 101st Street in the south, West
Marginal Place South on the west, and the Duwamish River on the east. . The City continues
to work with the community to provide information on the impact of the annexation on
businesses and property owners.
Progress on Tukwila Village is slow, yet steady. 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. SHAG shares
ownership and operations for over thirty multi - family housing developments in the Puget Sound.
Their properties serve people of all ages with a strong emphasis on affordable senior housing.
The City, SHAG, and the King County Library System are currently working on the basic plan for
the location of buildings and parking on the site. The development agreements are scheduled
to be completed in 2012 and the first phase opening in 2014.
Outside of the development area, growth is predicted to continue but recovery will be slow.
With declining revenues and increasing expenses outside of the City's control such as pension
plan contributions and contractual increases in salaries and benefits, determining how fewer
resources will be distributed when the needs are greater 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
be focused on ensuring the City continues to be an economically strong and viable City.
Towards that end, the City is developing a strategic plan that will guide priorities and actions of
the City for future years to come. Tukwila is excited to have this opportunity to work with
citizens and the community to enhance its vision and its plans to accomplish that goal.
6
CITY OF TUKWILA: 2011 CAFR LETTER OF TRANSMITTAL
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
2011 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 2011. 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 2011.
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,
2010. This was the 24th 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: 2011 CAFR LETTER OF TRANSMITTAL
D. ACKNOWLEDGMENTS
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 2011 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
8
CITY OF TUKWILA: 2011 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, 2010
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 ietirement
systems whose comprehensive animal financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
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9
CITY OF TUKWILA: 2011 CAFR
LETTER OF TRANSMITTAL
10
CITY OF TUKWILA: 2011 CAFR AUDITOR'S OPINION LETTER
Washington State Auditor
Brian Sonntag
INDEPENDENT AUDITOR'S REPORT
July 23, 2012
Council
City of Tukwila
Tukwila, Washington
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, 2011, which collectively comprise the City's basic financial statements as listed in
the table of contents. These financial statements are the responsibility of the City's management. 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 of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
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, 2011, and the respective changes in
financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for
the General and Arterial Street funds for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
As described in Note 1, during the year ended December 31, 2011, the City has implemented the
Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions.
Insurance Building, P.O. Box 40021 • Olympia, Washington 98504 -0021 • (360) 902 -0370 • TDD Relay (800) 833 -6388
FAX (360) 753 -0646 • http: /Jwww.sao.wa.gov
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CITY OF TUKWILA: 2011 CAFR AUDITOR'S OPINION LETTER
In accordance with Government Auditing Standards, we will also issue our report dated July 23, 2012, 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 the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages 13 through 28, pension trust fund on pages 99 through 100 and
information on postemployment benefits other than pensions on pages 99 through 100 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 the 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.
Our audit was performed for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The accompanying information listed as combining
fmancial statements and supplementary information on pages 102 through 125 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 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.
Sincerely,
BRIAN SONNTAG, CGFM
STATE AUDITOR
12
CITY OF TUKWILA: 2011 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2011
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, 2011. 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 assets, the amount by which total assets exceed total liabilities, equal $288.8 million.
A total of 86 percent or $248.6 million of total net assets is invested in capital assets such as
streets, land, buildings, equipment, and other improvements. The remaining net assets of
$40.2 million is available for debt service, capital projects, and to meet the government's
ongoing activities and obligations.
• The government's net assets increased by $20.2 million in 2011. Governmental activities
provided a $13.8 million 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 $24,804,485 a decrease of $3,958,347 in comparison with
the prior year.
• At the end of the current fiscal year, unassigned fund balance for the general fund was
$8,237,141, or 19 percent of total general fund expenditures.
• The City of Tukwila's total debt decreased by $2,950,990 during the current fiscal year. The
City incurred $4.6 million in additional debt for refunding a portion of the 2003 Street general
obligation bonds and assumed debt of $3 million transferred from the Golf Course. This
increase was offset by $10.7 million in payments on existing debt.
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 a financial whole or as
an entire operating entity. The statements then proceed to provide an increasingly detailed look at
specific financial conditions.
The Statement of Net Assets 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: 2011 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 Assets 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 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
14
CITY OF TUKWILA: 2011 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 Assets 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. Due to GASB 54, two
of the governmental funds do not meet the criteria to be reported separately as special revenue
funds. As such, the Contingency Fund and Fire Equipment Cumulative Reserve Fund are reported
under General Fund. 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 and arterial street funds within the financial statements.
Other budgetary comparison schedules are included following the other governmental funds'
combining statements in this report.
Proprietary Funds
Proprietary funds are used by governments to account for their business -type activities and use the
same basis of accounting as utilized in private industry. Business -type activities provide specific
goods or services to a group of customers that are paid for by fees charged to those customers.
There is a direct relationship between the fees paid and the services rendered.
The City has two types of proprietary funds: enterprise funds and internal service funds. Enterprise
funds are used to account for goods and services provided to citizens, while internal service funds
are used to account for goods and services provided internally to various City departments.
Enterprise funds report the same functions presented as business -type activities in the government -
wide statements, but in greater detail. The City's enterprise fund statements provide information on
the City's three utilities (water, sanitary sewer, surface water) as well as the City -owned golf course.
Internal service funds are an essential accounting tool used to accumulate and allocate costs
internally among the City's various functions. The City uses internal service funds to account for its
fleet of vehicles, and its insurance premiums. Internal service funds benefit both governmental and
business -type activities, and are allocated accordingly in the government -wide statement of
activities.
15
CITY OF TUKWILA: 2011 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 concerning 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,
nonmajor enterprise funds, and internal service funds are presented in the section titled "Fund
Financial Statements and Schedules ".
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. For the City of Tukwila, total assets exceeded liabilities by $288,801,461 at December 31,
2011.
The largest portion of the City's net assets, $248.6 million, or 86 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 transfer of debt from the Golf Course was excluded from
the calculation for the governmental activities, since the proceeds were used to acquire capital asset
that is reported under business -type activities.
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:
16
CITY OF TUKWILA: 2011 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
CITY OF TUKWILA NET ASSETS
Governmental Activities Business -type Activities Total
As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10
Current and other assets
Capital assets, net of
accumulated depreciation
Total assets
Long -term liabilities
Other liabilities
Total liabilities
Net assets
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
$ 51,017,626
213,700,317
264,717,943
$ 53,165,106 $ 11,247,960 $ 12,166,042 $ 62,265,586 $ 65,331,148
195,938,217 63,403,009 60,321,804 277,103,326 256,260,021
249,103,323 74,650,969 72,487,846 339,368,912 321,591,169
23,260,921
15,446,362
38,707,283
21,739,892
15,158,923
36,898,815
10,275,993
1,584,175
11,860,168
14,335,996
1,803,836
16,139,832
33,536,914
17,030,537
50,567,451
36,075,888
16,962,759
53,038,647
199,511,779 177,078,793 52,134,799 44,759,489 248,636,920
5,019,817 23,005,792 430,444 430,444 5,450,261
21,479,064 12,119,923 10,225,558 11,158,081 34,714,280
$ 226,010,660 $ 212,204,508 $ 62,790,801 $ 56,348,014 $ 288,801,461
221,838,282
23,436,236
23,278,004
$ 268,552,522
The governmental unrestricted net assets comprise $21.5 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, $10.2 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.
Effective with 2011 financial reporting under the five categories of fund balances are as follows:
General Fund Arterial Street
Land Acquisition.
Park &
Development
Other
Governmental
Funds
Total
Governmental
Funds
NONSPENDABLE:
Prepaid Items
RESTRICTED FOR:
Hotel Motel Tax
Street
Drug Seizure
Arterial Street
General Government Improvement
COMMITTED FOR:
Other Purposes
Fire Improvement
Land Acq. Rec & Park Development
ASSIGNED FOR:
Arterial Street
Land Acq. Rec & Park Development
Facility Replacement
General Government Improvement
Fire Improvement
Debt Seance
UNASSIGNED
TOTAL FUND BALANCES
$ 5,000
2,696,537
18,000
4,232,859
8,237,141
$ $
88,487
1,339,485
787,568
903,937
229,711
397,064
$ 5,000
787,568
903,937
229,711
2,696,537
397,064
18,000
313,819 313,819
88,487
4,232,859
1,339,485
2,027,015 2,027,015
211,549 211,549
3,316,313 3,316,313
8,237,141
$ 8,260,141 $ 6,929,396 $ 1,427,972 $ 8,186,976 $ 24,804,485
17
CITY OF TUKWILA: 2011 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
The $2.1 million decrease in current and other assets for governmental activities is comprised of a
$1.4 million decrease in unrestricted and restricted cash, and a $2.5 million decrease in investments.
The decrease of $859,915 in current and other assets for business -type activities is comprised of a
decrease of $338,928 in cash offset by a decrease of $1.8 million in investments.
Governmental capital assets increased by $17.8 million due to capital outlays of $25.7 million and
developer contributions of $68,718, offset by depreciation. The addition is due to two major street
projects, the Southcenter Access Project and the Southcenter Parkway Extension Project.
The $1.8 million increase in long -term liabilities for governmental activities is due to the partial
refunding of the 2003 Streets general obligation bonds and transfer of $3 million debt from the Golf
Course fund to governmental funds offset by principal payments on existing debt.
Business -type activity capital assets increased by $3.1 million due to capital outlays of $5 million and
developer contributions of $12,583, offset by depreciation. Most of the increase is due to water and
sewer utility improvements with the Southcenter Parkway Extension project.
Changes in Net Assets
The change in net assets 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 assets. The table shows the revenues,
expenses and related changes in net assets for both governmental -type and business -type activities:
18
CITY OF TUKWILA: 2011 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
CITY OF TUKWILA CHANGES IN NET ASSETS
Governmental Activities
Business -type Activities Total
2011 2010 2011 2010 2011 2010
Revenues:
Program revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues
Property taxes
Sales taxes
Hotel /Motel taxes
Natural gas use tax
Utility taxes
Interfund utility taxes
Business taxes
Excise taxes
State entitlements
Investment earnings
Miscellaneous
Gain /(loss) on sale of capital assets
Total revenues
$ 6,348,824 $ 5,076,107 $ 16,371,214 $ 14,117,185 $ 22,720,038 $ 19,193,292
2,250,601 2,139,029 - 3,502 2,250,601 2,142,531
18,495,127 23,992,563 1,993,537 7,389,910 20,488,664 31,382,473
13,443,137
15,796,054
555,682
317,531
6,161,880
1,372,380
667,679
2,170,293
2,085,740
275,477
13,363,096
14,669,328
458,092
533,811
5,600,683
1,497,782
2,707,792
507,798
1,951,936
108,929
61,119
200,871
69,940,405
72,606,946 18,626,741
13,443,137 13,363, 096
329,527 15, 796, 054 14,998,855
555,682 458,092
317,531 533,811
6,161,880 5,600,683
1,372,380 1,497, 782
667,679 2,707,792
2,170,293 507,798
2,085, 740 1,951, 936
85,942 336,596 194,871
97,541 200,871 97,541
22,023,607 88,567,146 94,630,553
Expenses:
General government 9,150,573 7,052,717 9,150,573 7,052,717
Public safety 25,348,318 26,088,644 25,348,318 26,088,644
Physical environment 2,885,175 2,533,394 2,885,175 2,533,394
Transportation 6,872,708 6,015,197 6,872,708 6,015,197
Economic environment 4,712,832 4,579,338 - - 4,712,832 4,579,338
Mental and physical health 4,591 4,539 - 4,591 4,539
Culture and recreation 4,203,824 4,756,676 4,203,824 4,756,676
Interest on long -term debt 472,438 1,061,419 472,438 1,061,419
Water /sewer - - 10,092,903 9,343,368 10,092,903 9,343,368
Foster golf course 1,986,747 1,935,014 1,986,747 1,935,014
Surface water 2,588,098 2,476,170 2,588,098 2,476,170
Total expenses 53,650,459 52,091,924 14,667,748 13,754,552 68,318,207 65,846,476
Increase in net assets before transfers 16,289,946 20,515,022 3,958,993 8,269,055 20,248,939 28,784,077
Transfers (2,483,794) 1,399,310 2,483,794 (1,399,310)
Change in net assets 13,806,152 21,914,332 6,442,787 6,869,745 20,248,939 28,784,077
Net assets - beginning of period 212,204,508 190,290,176 56,348,014 49,478,269 268,552,522 239,768,445
Net assets -end of period $ 226,010,660 $ 212,204,508 $ 62,790,801 $ 56,348,014 $ 288,801,461 $ 268,552,522
Governmental activities contributed $13.8 million to the total increase in City net assets. 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.
Revenues from governmental activities decreased $2.7 million from 2010 activity. The components
and explanation of this increase follows.
• Operating grants and contributions increased by $111,572, or 5.2 %.
• Capital grants and contributions decreased $5.5 million.
• Charges for services increased by $1.3 million which is attributable to a new revenue
generating regulatory license fee on business licenses.
19
CITY OF TUKWILA: 2011 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
• Natural gas use tax receipts decreased by $216,280 or 41%, which may be attributable to
reduced consumption due to a weak economy.
• Business taxes and excise taxes combined decreased by $377,618.
Governmental activity expenses increased by $1.6 million. Culture and recreation expenses
decreased by $552,852, or 11.6% partially due to the formation of a metropolitan park district to
operate the pool, general government expenses increased by $2.1 million, or 30 %, and interest
expense on long -term debt decreased by $588,981, or 56 %.
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.
Revenues by Source — Governmental Activities
Charges for services
9%
Utility taxes
11%
Sales taxes
23%
Other revenue
Other taxes 3%
5% \
Capital grants&
contributions
3%
20
Property taxes
19%
Operating grants &
contributions
27%
CITY OF TUKWILA: 2011 CAFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
$27,000,000
$24,000,000
$21,000,000
$18,000,000
$15,000,000
$12,000,W0
$9,000,000
$6,000,000
$3,000,000
$0
Program Revenues and Expenses - Governmental Activities
1
•
�`��Q Z GeC` e
r
C~��e Qr�y� GJ\�J�e cp��� raffia
•se
❑Program revenues
• Expenses
Business -type net assets increased by $6.44 million during 2011. Key components of this increase
include:
• $5,396,373 decrease in capital grants and contributions due to developer contributions
received from utility improvements related to completion of Sound Transit's Link light rail in
the prior year.
• $2,254,029 or 16% increase in charges for services primarily due to utility rate increase
effective January 2011.
• $525,864 net transfer out from the business -type activity funds.
• $3,009,658 in debt transfer from the Foster Golf Course fund to governmental fund. The
asset remained in the enterprise fund.
• Income before capital contributions and transfers amounted to:
o Water fund: $ 1,697,961
o Sewer fund 42,752
o Foster golf course fund: (680,886)
o Surface water fund: 905,629
$ 1,965,456
21
CITY OF TUKWILA: 2011 CAFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following chart shows the relative net asset balances for each business -type fund:
Business -Type Net Assets - By Fund
Foster golf course
13 %_
Water
29%
Su rface water
41%
Sewer
17%
The majority of net assets 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:
$30,000,000 -
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$o
Water
Comparison of Total Net Assets to Spendable Net Assets
Business -Type Funds
❑ Spendable net assets
■Total net assets
Sewer
Surface water
22
Foster golf
course
CITY OF TUKWILA: 2011 CAFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following chart depicts the revenues and expenses for business -type funds:
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
so
Business -type Activity Revenues and Expenses
Before Capital Contributions and Transfers
Water
Sewer
Financial Analysis of Governmental Funds
Surface water
Foster golf 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, 2011, the City's governmental funds had combined fund balances of
$24,804,485 a decrease of $3,958,347 or 13.7 %. This decrease is related to:
• General fund
• Arterial street fund
• Land Acq., Rec & Park Development
• Other governmental funds
$2,503,101
($4,124,014)
($3,345,540)
$1,008,106
Of the governmental funds' total fund balances, $5,000 is nonspendable prepaid items. Restricted
fund balances constrained for a specific purpose by external parties consist of $787,568 for tourism,
$903,937 for Streets, $229,711 for drug seizure, and $2,696,537 for Arterial Street. Committed fund
balances constrained by the government's Councilmembers comprise of $18,000 for imprest funds,
$313,819 for fire improvements, and $88,487 for land acquisition recreation and park development.
Fund balances intended to be used for specific purposes consists of $4,232,859 for Arterial Street,
$1,339,485 for land acquisition recreation and park development, $2,027,015 for facility replacement,
$211,549 for general government improvements, and $3,316,313 dedicated for debt repayment.
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
23
CITY OF TUKWILA: 2011 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
the end of 2011, the general fund had a fund balance of $8,260,141, of which substantially all is
unassigned and is available for any purpose.
The following chart shows the relative fund balances for governmental funds:
Governmental Funds — Fund Balances
Debt service funds
13%
Special revenue funds
8%
Capital projectfunds
12%
General fund
33%
Land acq, rec & park
improvementfunds
6%
Arterial street fund
28%
The $868,741 increase in the general fund balance results from revenue of $47,842,717, expenses
of $43,701,390, transfers into the fund of $2,972,843 and transfers out of $6,282,303. In comparison
with 2010, revenue increased by $7.1 million, expenditures decreased by $941,351, transfers out
decreased by $6,026,828 and transfers in increased by $511,037.
24
CITY OF TUKWILA: 2011 CAFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
The general fund revenue increase of $7,133,582 came from the following sources:
6,000, 000
5,000, 000
4,000, 000
3,000, 000
2,000, 000
1,000, 000
0
(1,000,000)
General Fund Revenue Increases (Decreases) - By Source
pUS
The fund balance decrease of $4,124,014 in the arterial street fund is primarily due to expenditures
for the nearly completed Tukwila Urban Center Access Project. Land acquisition, recreation and
park development fund balance decreased by $3,345,540 due to a transfer out of funds to service
the transfer of debt from the enterprise fund.
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:
• Increase in JAG Recovery Act grant revenue for Mobile Command Unit $ 104,417
• Increase in revenue for insurance reimbursement 50,000
• Increase in JAG grant for School Resource Officer 76,437
• Additional funding for Contingency reserve 166,260
• Additional funding for Golf course operations 550,000
• Funding for operating loan to Metropolitan Park District 375,000
• Additional funding for debt payment on 2010 issued bonds 6,000
• Reduction in funding for SCORE debt service (250,000)
25
Taxes
$5,265,486
Licenses & Perm its
$1,855,080
Intergovernmental
$280,097 Fines& Forfeitures
$2,355
Investment Earnings
$63,638
Charges for Services
($7,379)
Miscellanea
($325,694
pUS
The fund balance decrease of $4,124,014 in the arterial street fund is primarily due to expenditures
for the nearly completed Tukwila Urban Center Access Project. Land acquisition, recreation and
park development fund balance decreased by $3,345,540 due to a transfer out of funds to service
the transfer of debt from the enterprise fund.
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:
• Increase in JAG Recovery Act grant revenue for Mobile Command Unit $ 104,417
• Increase in revenue for insurance reimbursement 50,000
• Increase in JAG grant for School Resource Officer 76,437
• Additional funding for Contingency reserve 166,260
• Additional funding for Golf course operations 550,000
• Funding for operating loan to Metropolitan Park District 375,000
• Additional funding for debt payment on 2010 issued bonds 6,000
• Reduction in funding for SCORE debt service (250,000)
25
CITY OF TUKWILA: 2011 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
• Funding to acquire Mobile command unit previously not budgeted 104,417
• Funding for School Resource Officer grant expenditures 76,437
• Additional funding for repair of damaged signal pole 50,000
Reasons for the significant variances in the general fund between the final budget and actual results
include:
• Sales tax revenue was $1,145,800 more than budgeted. This reflects the $474,200 increase
in receipts related to construction activities.
• Expected revenue from gambling tax came in below budget by $965,664.
• Other business taxes that contributed to a negative variance in revenue receipts include
admissions tax down by $122,389 and utility tax down by $670,736 or 14.2 %.
• The budget for proceeds from sales of capital assets was significantly higher than actual
results resulting in a negative variance of $653,000. Properties that were originally
scheduled to be sold were kept for alternative use.
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, 2011 totaled $277.1 million (net of accumulated depreciation), an increase of $20.8
million, or 8.1 %, from 2010. This investment in capital assets includes land, buildings, improvements,
machinery and equipment, construction in progress, utility transmission /distribution systems, roads,
bridges, and other infrastructure.
Major capital asset changes during the year include:
• Tukwila Urban Center Access Project (Klickitat Southcenter Parkway /I -5 Access Revision
totaled $13.3 million.
• Southcenter Parkway and S 180th St arterial street construction totaled $9.5 million.
26
CITY OF TUKWILA: 2011 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
A summary of the City's net assets follows:
SUMMARY OF CAPITAL ASSETS (NET OF DEPRECIATION)
Governmental Activities
Business -type Activities Total
As of 12/31/11 As of 12/31/10
As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10
Land $ 39,459,061 $ 39,472,061 $ 2,214,118 $ 2,214,118 $ 41,673,179 $ 41,686,179
Buildings 12,231,995 14,718,746 8,403,761 8,709,277 20,635,756 23,428,023
Other Improvements 8,639,571 4,983,563 44,188,248 45,634,422 52,827,819 50,617,985
Machinery and Equipment 6,525,286 6,175,182 687,756 809,984 7,213,042 6,985,166
Infrastructure 107,103,876 97,249,360 - 107,103,876 97,249,360
Intangible Assets 286,711 208,021 - 286,711 208,021
Construction in Progress 39,453,817 33,131,284 7,850,959 2,893,683 47,304,776 36,024,967
IMII 213,700,317 $ 195,938,217 $ 63,344,843 $ 60,261,484 $277,045,159 $256,199,701
More detailed information on capital assets is provided in note 7.
Long -term Debt
At the end of the current fiscal year, the City had total bonded debt outstanding of $24,240,000. Of
this amount, $20,260,000 is general obligation bonds, and $3,980,000 is revenue bonds for the
water /sewer and surface water utilities. The City currently maintains a rating of Aa3 with Moody's
and AA- with Fitch's Investor Service for its general obligation debt.
The following schedule summarizes the City's bonded debt:
SUMMARY OF BONDED DEBT
Governmental Activities Business -type Activities Total
As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10 As of 12/31/11 As of 12/31/10
General obligation bonds $ 20,260,000 $ 18,821,175 $ - $ 3,238,825 $ 20,260,000 $ 22,060,000
Revenue bonds - 3,980,000 4,395,000 3,980,000 4,395,000
$ 20,260,000 $ 18,821,175 $ 3,980,000 $ 7,633,825 $ 24,240,000 $ 26,455,000
Below is a summary of additional, non - bonded long -term debt of the City:
Other Long -term Debt
Public Works Trust Fund loans
Employee leave benefits
Due to other governments
Capital lease payable
$ 7,179, 635
3,260,355
7,746,800
35,891
$ 18, 222, 681
More detailed information on long -term debt is provided in note 11.
27
CITY OF TUKWILA: 2011 CAFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Economic Factors
The outlook for 2011 is positive despite the recession that the region and nation are currently
experiencing. 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 2011 were minimal. Wetland mitigation plantings at the south end and fisheries
habitat construction along the river north of South 200th Street is scheduled for 2012.
Completion of the new Southcenter Parkway Extension project 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. SHAG shares ownership and
operations for over thirty multi - family housing developments in the Puget Sound. Their
properties serve people of all ages with a strong emphasis on affordable senior housing.
The City, SHAG, and the King County Library System are currently working on the basic
plan for the location of buildings and parking on the site. The draft deal terms with the
developer and library were discussed at the City Council meeting on December 19, 2011.
The development agreements are scheduled to be completed in 2012 and the first phase
opening in 2014.
• Tukwila Urban Center Access — Designed to improve traffic flow, Southcenter Parkway
reopened on October 13, 2011. Local improvement district funding for the project in the
range of $6.5 to $10.5 million is scheduled for 2012.
• Major Tenant Improvements /Additions — The largest new tenant improvements and additions
were completed for Shasta Beverages, Toys R Us, Continental Mills, Sabey Data Center,
Boeing, Target, and re- roofing of Costco totaling $197,664 in revenue receipts, which added
$13.6 million in property values.
• New Construction — Completed in 2011 include Riverton Court mixed use building, DRA
Professional Center, Segale office building, and Museum of Flight Space Shuttle Gallery
totaling $703,197 in revenue receipts, which added $13.8 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.
28
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The City presents two government -wide financial statements:
The Statement of Net Assets provides information on all City assets and liabilities,
with the difference between the two reported as net assets.
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.
29
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
30
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET ASSETS
DECEMBER 31, 2011
PRIMARY GOVERNMENT COMPONENT UNIT
GOVERNMENTAL BUSINESS -TYPE METROPOLITAN
ACTIVITIES ACTIVITIES TOTAL PARK DISTRICT
ASSETS:
CASH AND CASH EQUIVALENTS (Note 3) $ 18,591,697 $ 3,725,808 $ 22,317,505 $ 69,462
INVESTMENTS (Note 3) 10,124,278 3,446,525 13,570,803
RECEIVABLES:
TAXES (Note 4) 3,803,424 - 3,803,424
CUSTOMER ACCOUNTS 714,461 1,151,035 1,865,496
INTEREST ON INVESTMENTS 57,368 - 57,368
DUE FROM COMPONENT UNIT 191,294 - 191,294
DUE FROM OTHER GOVERNMENTAL UNITS (Note 4) 3,084,834 1,308,225 4,393,059
INVENTORY OF MATERIALS AND SUPPLIES 574,449 617,219 1,191,668
NET PENSION ASSET (Note 9) 309,832 - 309,832
INVESTMENT IN JOINT VENTURES (Note 8) 10,467,389 10,467,389
RESTRICTED ASSETS:
CASH AND CASH EQUIVALENTS (Note 3) 3,093,600 488,825 3,582,425
NOTES RECEMABLE - 450,270 450,270
DEFERRED CHARGES 5,000 60,053 65,053
NON - DEPRECIABLE CAPITAL ASSETS (Note 7) 78,912,878 2,214,118 81,126,996
DEPRECIABLE CAPITAL ASSETS (NET OF ACCUMULATED
DEPRECIATION): (Note 7) 134,787,439 61,130,724 195,918,163 1,923,626
PLANT ACQUISITION ADJUSTMENT (NET OF ACCUMULATED
AMORTIZATION) 58,167 58,167
TOTAL ASSETS
264,717,943 74,650,969 339,368,912
1,993,088
LIABILITIES:
ACCOUNTS PAYABLE 219,413 103,772 323,185
ACCRUED WAGES AND BENEFITS PAYABLE 1,283,384 337,077 1,620,461 10,198
DUE TO OTHER GOVERNMENTAL UNITS 7,746,800 558,247 8,305,047 -
ACCRUED INTEREST PAYABLE 79,436 65,262 144,698 1,143
DUE TO PRIMARY GOVERNMENT - - 191,294
REVENUES COLLECTED IN ADVANCE 505,686 - 505,686
OTHER CURRENT LIABILffIES 1,915,900 - 1,915,900 -
PAYABLE FROM RESTRICTED ASSETS:
REVENUE BOND PRINCIPAL (Note 11) 440,000 440,000
DEPOSITS 500 58,756 59,256
UNEARNED REVENUE 52,080 21,061 73,141
BONDS AND OTHER DEBT PAYABLE
DUE WITHIN ONE YEAR (Note 11) 4,498,347 - 4,498,347
DUE IN MORE THAN ONE YEAR (Note 11) 18,762,574 10,275,993 29,038,567 20,001
UNFUNDED OTHER POST EMPLOYMENT BENEFITS (Note 10) 3,643,163 - 3,643,163
TOTAL LIABILITIES 38,707,283 11,860,168 50,567,451 222,636
NET ASSETS:
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT (Note 1) 199,511,779 52,134,799 248,636,920 2,114,920
RESTRICTED NET ASSETS:
PREPAID ITEMS 5,000 5,000
ARTERIAL STREET 2,696,537 2,696,537
HOTEL/MOTEL TAX 787,568 787,568
STREET 903,937 903,937
DRUG SEIZURE 229,711 - 229,711
DEBT SERVICE - 430,444 430,444
GENERAL GOVERNMENT IMPROVEMENTS 397,064 397,064
UNRESTRICTED NETASSETS (Note 1) 21,479,064 10,225,558 34,714,280 (344,468)
TOTAL NET ASSETS $ 226,010,660 $ 62,790,801 $ 288,801,461 $ 1,770,452
The notes to the financial statements are an integral part of this statement.
31
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2011
Page 1 of 2
PROGRAM REVENUES
OPERATING CAPITAL
CHARGES GRANTS AND GRANTS AND
EXPENSES FOR SERVICES CONTRIBUTIONS CONTRIBUTIONS
FUNCTIONS / PROGRAMS:
PRIMARY GOV ERNM ENT
GOVERNMENTAL ACTIVITIES:
GENERAL GOVERNMENT $ 9,150,573 $ 2,462,671 $ 261,848 $ 167,286
PUBLIC SAFETY 25,348,318 809,806 941,118 482,994
TRANSPORTATION 6,872,708 345,373 62,538 17,844,847
PHYSICAL ENVIRONMENT 2,885,175 7,572 72,488
CULTURE AND RECREATION 4,203,824 1,001,117 6,509 -
ECONOMIC ENVIRONMENT 4,712,832 1,722,285 906,100
MENTAL AND PHYSICAL HEALTH 4,591 - - -
INTEREST ON LONG -TERM DEBT 472,438
53,650,459 6,348,824 2,250,601 18,495,127
BUSINESS -TYPE ACTIVITIES:
WATER 4,435,400 6,038,887 636,714
SEWER 5,657,503 5,672,355 - 1,343,297
SURFACE WATER 2,588,098 3,355,956 13,526
FOSTER GOLF COURSE 1,986,747 1,304,016 -
14,667,748 16,371,214 - 1,993,537
TOTAL PRIMARY GOVERNMENT $ 68,318,207 $ 22,720,038 $ 2,250,601 $ 20,488,664
COMPONENT UNIT:
MEIROPOLITAN PARK DISTRICT $ 198,321 $ 45,147 $ - $ 1,923,626
TOTAL COMPONENT UNIT $ 198,321 $ 45,147 $ $ 1,923,626
GENERAL REVENUES:
PROPERTY TAXES
RETAIL SALES AND USE TAXES
NATURAL GAS USE TAX
HOTEL /MOTEL TAXES
UTILITY TAXES
INTERFUND UTILITY TAXES
BUSINESS TAXES
EXCISE TAXES
STATE ENTITLEMENTS
UNRESTRICTED INVESTMENT EARNINGS
MISCELLANEOUS
TRANSFERS (Note 5)
TOTAL GENERAL REVENUES
TRANSFER BETWEEN GOVERNMENTAL AND BUSINESS ACTIVITIES
CHANGE IN NET ASSETS
NET ASSETS - BEGINNING
NET ASSETS - ENDING
The notes to the financial statements are an integral part of this statement.
32
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
Page 2 of 2
PRIMARY GOVERNMENT
NET (EXPENSE) REVENUE AND
CHANGES IN NET ASSETS
COMPONENT UNIT
NET (EXPENSE) REVENUE AND
CHANGES IN NET ASSETS
GOVERNMENTAL BUSINESS -TYFE
ACTIVITIES ACTNffIES TOTAL
1
TOTAL
$ (6,258,768) $
(23,114,400)
11,380,050
(2,805,115)
(3,196,198)
(2,084,447)
(4,591)
(472,438)
(26,555,907)
I
2,240,201
1,358,149
781,384
(682,731)
3,697,003
$ (6,258,768) $
(23,114,400)
11,380,050
(2,805,115)
(3,196,198)
(2,084,447)
(4,591)
(472,438)
(26,555,907)
2,240,201
1,358,149
781,384
(682,731)
3,697,003
$ (26,555,907) $ 3,697,003 $ (22,858,904) $
$ 1,770,452
$
1,770,452
$ 13,443,137 $ - $ 13,443,137 $
15,796,054 15,796,054
317,531 - 317,531
555,682 555,682
6,161,880 6,161,880
1,372,380 1,372,380
667,679 667,679
2,170,293 2,170,293
2,085,740 2,085,740
275,477 61,119 336,596
200,871 200,871
525,864 (525,864) -
43,371,717 (263,874) 43,107,843
(3,009,658) 3,009,658 -
13,806,152 6,442,787 20,248,939
212,204,508 56,348,014 268,552,522
1,770,452
$ 226,010,660 $ 62,790,801 $ 288,801,461 $ 1,770,452
The notes to the financial statements are an integral part of this statement.
33
CITY OF TUKWILA: 2011 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.
34
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2011
LANDACQ. OTHER TOTAL ei
GENERAL ARTERIAL REC & PARK GOVERNMENTAL GOVERNMENTAL.
FUND STREET DEVELOPMENT FUNDS FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 5,991,837 $ 837,076 $ 1,662,953 $ 5,323,009 $ 13,814,875
INVESTMENTS 1,107,034 - 2,021,043 3,128,077
RECEIVABLES:
TAXES 3,662,032 32,348 109,042 3,803,422
CUSTOMER ACCOUNTS 713,766 713,766
INTEREST ON INVESTMENTS 2,423 2,423
DUE FROM OTHER GOVERNMENTAL UNITS 235,698 2,458,857 - 390,279 3,084,834
PREPAID EXPENSES 5,000 - 5,000
DEFERRED CHARGES - - - -
RESTRICTED ASSETS:
CASH AND CASH EQUIVALENTS 2,696,537 - 397,064 3,093,601
TOTAL ASSETS $ 10,608,333 $ 7,134,275 $ 1,662,953 $ 8,240,437 $ 27,645,998
LIABILITIES AND FUND BALANCES:
ACCOUNTS PAYABLE $ 17,171 $ 192,094 $ - $ 10,148 $ 219,413
ACCRUED WAGES & BENEFITS 1,235,940 12,785 126 17,379 1,266,230
RETAINAGE PAYABLE - 11,934 11,934
REVENUE COLLECTED IN ADVANCE 529,412 - - 529,412
OTHER CURRENT LIABILITIES 211,166 - 500 14,000 225,666
DEFERRED REVENUE 354,503 - 234,354 - 588,857
TOTAL LIABILITIES 2,348,192 204,879 234,980 53,461 2,841,512
FUND BALANCES:
NONSPENDABLE
PREPAID ITEMS 5,000 - - 5,000
RESTRICTED FOR:
HOTEL MOTEL TAX - - 787,568 787,568
STREET - - 903,937 903,937
DRUG SEIZURE - - 229,711 229,711
ARTERIAL STREET - 2,696,537 - 2,696,537
GENERAL GOVERNMENT IMPROVEMENTS - - 397,064 397,064
COMMITTED FOR
OTHER PURPOSES 18,000 - - 18,000
FIRE IMPROVEMENTS 313,819 313,819
LAND ACQ. REC & PARK DEVELOPMENT 88,487 88,487
ASSIGNED FOR
ARTERIAL STREET 4,232,859 4,232,859
LAND ACO. REC & PARK DEVELOPMENT 1,339,485 1,339,485
FACILITY REPLACEMENT - - - 2,027,015 2,027,015
GENERAL GOVERNMENT IMPROVEMENTS 211549 211,549
FIRE IMPROVEMENTS
DEBT SERVICE - 3,316,313 3,316,313
UNASSIGNED 8,237,141 - 8,237,141
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
8,260,141 6,929,396 1,427,972 8,186,976 24,804,485
$ 10,608,333 $ 7,134,275 $ 1,662,952 $ 8,240,437 $ 27,645,997
Total governmental fund balances as reported on this statement $ 24,804,485
Amounts reported for governmental activities in the statement of net assets are different because:
The purchases method is used in Governmental Funds to account for Materials and Supplies - hventory
amount outstanding. 556,701
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds.
Non - Depreciable Assets $ 78,912,878
Depreciable Assets (Net) 134,787,439
213,700,317
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. 309,832
The City has an equity interest in two joint ventures. This equity interest for the provision of governmental services
is not a current financial resource and therefore is not reported in the funds. 10,467,389
Deferred revenue reported for property taxes that are current and prior year tax levies that were not collected
and available to pay current year liabilities applicable to beginning net assets and current year revenues. 574,504
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 (4,498,347)
Long Term Liabilities Due in More Than One Year (18,762,575)
Due to Other Governmental Units (7,746,800)
Unfunded Other Post Errployment Benefits (3,643,163)
Accrued Interest Payable (79,436)
hternal service funds are used by management to charge the cost of certain activities, such as 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 assets.
Amount due from Component Unit
Net assets of government activities as reported on the statement of net assets
The notes to the financial statements are an integral part of this statement.
35
(34,730,321)
10,136,459
191,294
$ 226,010,660
CITY OF TUKWILA: 2011 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, 2011
LANDACQ. OTHER TOTAL
GENERAL ARIEI -tIAL REC &PARK GOVERNMENTAL GOVERNMENTAL
FUND STREET DEVELOPMENT FUNDS FUNDS
REVENUES:
TAXES $ 37,004,222 $ 281,297 $ 127,822 $ 622,340 $ 38,035,681
LICENSES AND PERMITS 3,473,910 3,473,910
INTERGOVERNMENTAL 4,756,033 17,930,718 (76,852) 1,450,008 24,059,907
CHARGES FOR SERVICES 2,108,235 - 92,845 158,520 2,359,600
FINES AND FORFEITURES 229,907 - - 78,120 308,027
INVESTMENT EARNINGS 131,288 100,930 35,347 7,914 275,479
MISCELLANEOUS 139,122 164,584 - 52,703 356,409
TOTAL REVENUES 47,842,717 18,477,529 179,162 2,369,605 68,869,013
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 8,233,654
PUBLIC SAFETY 24,324,023
PHYSICAL ENVIRONMENT 1,686,755 -
TRANSPORTATION 2,481,836 194,675
ECONOMIC ENVIRONMENT 3,259,887 -
MENTAL AND PHYSICAL HEALTH 4,591
CULTURE AND RECREATION 3,502,447
DEBT SERVICE
PRINCIPAL
INTEREST AND OTHER COSTS
CAPITAL LEASES
CAPITAL OUTLAY 208,197 24,269,418
4,703
19,786 8,253,440
3,475 24,327,498
373,727 2,060,482
2,676,511
1,422,759 4,682,646
4,591
3,507,150
1,766,774
881,850
119,318 1,046,771
1,766,774
881,850
25,643,704
TOTAL EXPENDITURES
43,701,390 24,464,093 124,021 5,515,142 73,804,646
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
4,141,327 (5,986,564) 55,141 (3,145,537) (4,935,633)
OTHER FINANCING SOURCES (USES):
PROCEEDS FROM CAPITAL LEASE 15,468 15,468
SALES OF CAPITAL ASSETS 21,406 - - 21,406
TRANSFERS IN (Note 5) 2,972,843 2,000,000 - 6,028,776 11,001,619
TRANSFERS OUT (Note 5) (6,282,303) (137,450) (3,400,681) (240,771) (10,061,205)
GENERAL OBLIGATION BONDS ISSUED - - 5,055,688 5,055,688
PREMIUM ON GENERAL OBLIGATION DEBT
PAYAVE T TO REFUNDED BOND ESCROW AGENT (5,055,688) (5,055,688)
TOTAL OTHER FINANCING SOURCES AND USES
(3,272,586) 1,862,550 (3,400,681) 5,788,005 977,288
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
868,741 (4,124,014) (3,345,540)
7,391,400 11, 053,410
2,642,468 (3,958,345)
4,773,512 5,544,510 28,762,832
FUNDBALANCES - ENDING $ 8,260,141 $ 6,929,396 $ 1,427,972 $ 8,186,978 $ 24,804,487
The notes to the financial statements are an integral part of this statement.
36
CITY OF TUKWILA: 2011 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, 2011
Net change in fund balances per the Statement of Revenues, Expenditures, and Changes in Fund Balances $ (3,958,345)
Amount reported as change in net assets 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 $ 25,659,173
Developer Contributions 68,718
Depreciation Expense (5,715,115)
Excess of Capital Outlay and Donations Over Depreciation Expense 20,012,776
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade -ins, and
donations) is to decrease net assets. Donated net capital assets to Metropolitan Park District total $1,923,626. (1,943,351)
The net pension asset (negative net pension obligation) amortization amount is not a financial
resource and therefore not reported in the funds. 24,834
The City has equity interests in two joint ventures. The equity interests for the provision ofgovernmental
services are not current financial resources and therefore are not reported in the funds. 482,994
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:
Bond Principal Retirement 1,766,774
Proceeds from Capital Lease (15,468)
Amortization Expense 19,761
4,293
Issuance of long -term debt is reported as revenue in governmental funds, but the issuance
increases long -term liabilities in the statement of net assets.
Proceeds from Issuance of Bonds -Debt Transfer between funds (3,046,599)
Issuance of long -term debt is reported as revenue in governmental funds, but the issuance
increases long -term liabilities in the statement of net assets.
Proceeds from Issuance of Bonds for Refunding
Payment to Refunded Bond Escrow Agent
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,
they are not considered "available" revenues in the government funds. Deferred revenues
decreased bythis amount this year.
(5,055,689)
5,055,689
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 325,218
Increase in Compensated Absences (128,841)
Increase in Unfunded Other Post Employment Benefits (828,221)
Amortization of Bond Discount and Deferred Charges (79,383)
Amortization of Bond Premiums 106,725
Total Additional Expense (Increase) Decrease
Due from Component Unit
Change in net assets on the Statement of Activities
The notes to the financial statements are an integral part of this statement.
37
454,509
421,475
(604,502)
191,294
$ 13,806,152
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2011
VARIANCE WITH
ORIGINAL ANAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES:
TAXES $ 37,725,798 $ 37,725,798 $ 37,004,222 $ (721,576)
LICENSES AND PERMITS 3,754,892 3,754,892 3,473,910 (280,982)
INTERGOVERNMENTAL 4,005,177 4,186,031 4,756,033 570,002
CHARGES FOR SERVICES 2,340,533 2,390,533 2,108,235 (282,298)
FINES AND FORFEITURES 205,408 205,408 229,907 24,499
INVESTMENT EARNINGS 132,258 132,258 131,288 (970)
MISCELLANEOUS 504,757 504,757 139,122 (365,635)
TOTAL REVENUES 48,668,823 48,899,677 47,842,717 (1,056,960)
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 8,410,319 8,580,319 8,233,654 346,665
PUBLIC SAFETY 24,487,087 24,532,941 24,324,023 208,918
PHYSICAL ENVIRONMENT 1,898,626 1,828,626 1,686,755 141,871
TRANSPORTATION 2,603,943 2,603,943 2,481,836 122,107
ECONOMIC ENVIRONMENT 3,368,326 3,368,326 3,259,887 108,439
MENTAL & PHYSICAL HEALTH 4,000 4,000 4,591 (591)
CULTURE AND RECREATION 3,920,566 3,870,566 3,502,447 368,119
CAPITAL OUTLAY 58,000 94,000 208,197 (114,197)
TOTAL EXPENDITURES
44,750,867 44,882,721
43,701,390 1,181,331
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
3,917,956 4,016,956 4,141,327 124,371
OTHER FINANCING SOURCES (USES):
SALES OF CAPITAL ASSETS
PROCEEDS FROM CAPITAL LEASE
TRANSFERS IN (Note 5)
TRANSFERS OUT (Note 5)
700,000 5,000
2,344,192
(8,039,495)
2,510,452
(7,511 ,755)
21,406
15,468
2,972,843
(6,282,303)
16,406
15,468
462,391
1,229,452
TOTAL OTHER FINANCING SOURCES AND USES
(4,995,303) (4,996,303) (3,272,586) 1,723,717
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING (RESTATED, Note 1)
(1,077,347) (979,347) 868,741
7,632,000 7,632,000 7,391,400
6,554,653 $ 6,652,653 $ 8,260,141
FUND BALANCES - ENDING $
1,848,088
(240,600)
$ 1,607,488
The notes to the financial statements are an integral part of this statement.
38
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
ARTERIAL STREET FUND
FOR THE YEAR ENDED DECEMBER 31, 2011
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAPBASIS) (GAAPBASIS) RESULTS (NEGATIVE)
REVENUES:
TAXES $ 208,017 $ 208,017 $ 281,297 $ 73,280
INTERGOVERNMENTAL 15,353,302 15,353,302 17,930,718 2,577,416
INVESTMENT EARNINGS 3,820 3,820 100,930 97,110
MISCELLANEOUS 324,000 324,000 164,584 (159,416)
TOTAL REVENUES 15,889,139 15,889,139 18,477,529 2,588,390
EXPENDITURES:
CURRENT:
TRANSPORTATION -
CAPITAL OUTLAY 33,880,346 24,650,346
194,675
24,269,418
(194,675)
380,928
TOTAL EXPENDITURES
33,880,346 24,650,346 24,464,093 186,253
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(17,991,207) (8,761,207)
(5,986,564) 2,774,643
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5)
TRANSFERS OUT (Note 5)
GENERAL OBLIGATION BONDS PROCEEDS
TOTAL OTHER FINANCING SOURCES AND USES
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
2,000,000 2,000,000 2,000,000
(120,324) (120,324) (137,450) (17,126)
15,901,000 6,671,000 - (6,671,000)
17,780,676 8,550,676 1,862,550 (6,688,126)
(210,531) (210,531)
5,000,000 5,000,000
(4,124,014) (3,913,483)
11,053,410 6,053,410
FUND BALANCES - ENDING $ 4,789,469 $ 4,789,469 $ 6,929,396 $ 2,139,927
The notes to the financial statements are an integral part of this statement.
39
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
40
CITY OF TUKWILA: 2011 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
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
DECEMBER 31, 2011
GOVERNMENTAL
FOSTER SURFACE TOTAL ACM/ TIES
WATER SEWER GOLF WATER ENTERPRISE INTERNAL
UTILITY A UTILITY COURSE UTILITY FUNDS SERVICE FUNDS
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS
INVESTMENTS
RECEVABLES:
CUSTOMER ACCOUNTS
INTEREST ON INVESTMENTS
DUE FROM OTHER GOVERNMENTAL UNITS
INVENTORY OF MATERIALS AND SUPPLIES
CURRENT ASSETS RESTRICTED:
CASH AND CASH EQUIVALENTS
L TOTAL CURRENT ASSETS ■
NONCURRENT ASSETS:
RESTRICTED CASH, CASH EQUIVALENTS, BOND RESERVES
NOTES RECENABLE
DEFERRED CHARGES
CAPITAL ASSETS:
LAND
BUILDINGS AND EQUIPMENT
OTHER IMPROVEMENTS
MACHINERY AND EQUIPMENT
CONSTRUCTION IN PROGRESS
LESS: ACCUMULATED DEPRECIATION
TOTAL CAPITAL ASSETS (NET OF A /D)
RANT ACQUISITION ADJUSTMENT (NET OF
ACCUMULATED AMORTIZATION)
TOTAL NONCURRENT ASSETS
$ 813,565 $ 870,549 $ (18,689) $ 2,060,383 $ 3,725,808 $ 4,776,824
3,446,525
364,019 578,438 8,870 199,708 1,151,035 695
3,446,525 6,996,201
1,265,680 17,524
246,567 51,389
25,021 1,308,225
268,813 50,450 617,219
6,480 51,901 58,381
6,142,836 1,517,900 310,895 2,335,562
266,713 126,834
450,270
15,614 37,233
54,944
17,748
36,897 430,444
450,270
7,206 60,053
87,347 69,525 1,609,575 447,671 2,214,118
1,416,567 2,181,410 6,627,496 1,165,128 11,390,601
18,674,055 12,348,687 3,559,992 35,308,449 69,891,183
825,311 1,249,740 170,008 50,706 2,295,765 9,502,619
2,543,591 3,035,181 - 2,272,187 7,850,959
(8,476,224) (6,373,804) (3,890,954) (11,556,802) (30,297,784) (6,972,494)
15,070,647 12,510,739 8,076,117 27,687,339 63,344,842 2,530,125
58,167 - 58,167
15,411,141 13,125,076 8,076,117 27,731,442 64,343,776 2,530,125
TOTAL ASSETS
21,553,977 14,642,976 8,387,012 30,067,004 74,650,969 14,376,537
LIABILITIES:
CURRENT LIABILITIES:
ACCOUNTS PAYABLE
ACCRUED WAGES AND BENEFITS
DUE TO OTHER GOVERNMENTAL UNITS
ACCRUED INTEREST PAYABLE
OTHER CURRENT LIABILITIES
UNEARNED REVENUE
REVENUE BOND PRINCIPAL
DEPOSITS
TOTAL CURRENT LIABILITIES
5,920 35,972 - 61,880 103,772
75,873 56,348 106,352 98,504 337,077
95,057 192,261 270,929 558,247
43,268 12,136 9,858 65,262
4,084 16,977 21,061
343,800 80,600 15,600 440,000
6,480 - 52,276 - 58,756
574,482 377,317 158,628 473,748
17,154
1,692,800
1,584,175 1,709,954
NONCURRENT LIABILITIES:
REVENUE BONDS PAYABLE (NET OF UNAMORTIZED PREMIUMS) 1,722,733 1,564,830 302,870 3,590,433
COMPENSATED ABSENCES 37,298 10,782 11,716 4,401 64,197
OTHER LONG-TERM LIABILITIES 1,097,594 2,307,129 - 3,216,640 6,621,363
TOTAL NONCURRENT LIABILITIES 2,857,625 3,882,741 11,716 3,523,911 10,275,993
TOTAL LIABILITIES 3,432,107 4,260,058 170,344 3,997,659 11,860,168 1,709,954
NET ASSETS:
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT 11,811,463 8,365,919 8,076,117 23,881,300 52,134,799 2,530,125
RESTRICTED FOR:
DEBT SERVICE 266,713 126,834 36,897 430,444
UNRESTRICTED 6,043,694 1,890,165 140,551 2,151,148 10,225,558 10,136,460
■
TOTAL NET ASSETS
$ 18,121,870 $ 10,382,918 $ 8,216,668 $ 26,069,345 $ 62,790,801 $ 12,666,585
The notes to the financial statements are an integral part of this statement.
42
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2011
GOVERNMENTAL
FOSTER SURFACE TOTAL ACTNTTIES
WATER SEWER GOLF WATER ENTERPRISE INTERNAL
_UTILTTY i UTILITY COURSE UTILf1Y FUNDS SERVICE FUNDS
OPERATING REVENUES:
CHARGES FOR SERVICES $ 4,775,181 $ 5,672,355 $ 1,300,285 $ 3,353,506 $ 15,101,327 $ 6,944,185
INTERGOVERNMENTAL 1,261,696 - - - 1,261,696
OTHER OPERATING REVENUE 35,861 22,794 3,731 2,450 64,836
TOTAL OPERATING REVENUES 6,072,738 5,695,149 1,304,016 3,355,956 16,427,859 6,944,185
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE 2,978,262 4,395,371 1,538,939 935,216 9,847,788 5,939,117
ADMINISTRATIVE AND GENERAL 123,217 144,619 - 496,038 763,874
TAXES 689,684 632,644 5,739 381,969 1,710,036
DEPRECIATION AND AMORTIZATION 523,450 378,782 308,386 741,775 1,952,393 734,247
TOTAL OPERATING EXPENSES 4,314,613 5,551,416 1,853,064 2,554,998 14,274,091 6,673,364
OPERATING INCOME (LOSS) 1,758,125 143,733 (549,048) 800,958 2,153,768 270,821
NON - OPERATING REVENUE (EXPENSE):
INVESTMENT EARNINGS
INTEREST EXPENSE
SALE OF CAPITAL ASSETS
AMORTIZATION OF BOND PREMIUM
AMORTIZATION OF BOND DISCOUNT
BOND ISSUE COSTS
OTHER NON - OPERATING REVENUE
51,651 3,281
(113,647) (101,932) (129,138)
(1,659) 400
8,972 1,825 1,845
(6,093) - -
(1,047) (2,496) (4,945)
6,187
(32,617)
353
(483)
131,231
61,119
(377,334)
(1,259)
12,995
(6,093)
(8,971)
131,231
558,082
40,160
TOTAL NON - OPERATING REVENUE (EXPENSE)
(60,164) (100,981) (131,838) 104,671 (188,312) 598,242
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 1,697,961
42,752 (680,886) 905,629 1,965,456 869,063
CAPITAL CONTRIBUTIONS 636,714 1,343,297 3,009,658 13,526 5,003,195
TRANSFERS IN (Note 5) 98,460 - 775,000 - 873,460
TRANSFERS OUT (Note 5) (487,107) (329,131) (221,515) (361,571) (1,399,324) (414,552)
CHANGE IN NET ASSETS 1M1111 1,946,028 1,056,918 2,882,257 557,584 6,442,787 454,511
TOTAL NET ASSETS BEGINNING OF YEAR 16,175,842
9,326,000 5,334,411 25,511,761
56,348,014 12,212,074
TOTAL NET ASSETS END OF YEAR $ 18,121,870 $ 10,382,918 $ 8,216,668 $ 26,069,345 $ 62,790,801 $ 12,666,585
The notes to the financial statements are an integral part of this statement.
43
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2011
Page 1 of2
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 USERS $ 4,763,532 $ 5,695,320 $ 1,116,837 $ 3,297,072 $ 14,872,760 $ 6,975,460
CASH PAID TO SUPPLIERS (2,392,412) (4,126,052) (450,534) (443,685) (7,412,683) (5,411,734)
CASH PAID FOR TAXES (689,684) (632,644) (60,123) (381,969) (1,764,420) -
CASH PAID FOR INVENTORY (23,475) 320 (85,827) - (108,982) (43,430)
CASH PAID TO EMPLOYEES (738,315) (377,932) (958,322) (1,011,133) (3,085,703) (487,159)
OTHER CASH RECEIVED (PAID) 259,425 259,425 460,429
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
559,011 (178,544) 1,460,285 2,760,398 1,493,566
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
OPERATING GRANT RECEIVED 131,231 131,231
TRANSFERS IN 98,460 775,000 873,460
TRANSFERS OUT (487,107) (329,131) (221,515) (361,571) (1,399,324) (414,552)
NET CASH PROVIDED (USED) BY NON-
CAPITAL FINANCING ACTIVITIES @ 47 (329,131) 553,485 (230,340) (394,632) (414,552)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM SALE OF EQUIPMENT 400 400 39,924
PURCHASE OF CAPITAL ASSETS (1,931,700) (1,931,304) (67,444) (1,089,214) (5,019,662) (514,280)
CONTRIBUTED CAPITAL 10,139 189,563 3,009,657 3,209,359
CAPITAL GRANTS 626,576 1,153,734 1,780,310
PROCEEDS FROM OTHER GOVERNMENTS
PROCEEDS FROM INSURANCE SETTLEMENT - - - - -
PREMIUM & BOND ISSUANCE COSTS 2,878 (1,825) 60,548 3,862 65,463
PRINCIPAL PAYMENT ON & TRANSFER OF DEBT (417,603) (269,760) (3,262,661) (286,307) (4,236,330)
INTEREST PAYMENT ON DEBT (120,768) (102,858) (140,628) (22,795) (387,048)
DEBT PROCEEDS - - - - -
OTHER CASH RECEIVED (PAID)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES (1,830,477) (962,450) (400,128) (1,394,453) (4,587,509) (474,356)
CASH FLOW FROM INVESTINGACTIVITIES:
PROCEEDS FROM SALE OF INVESTMENTS 529,003 207,190 - 1,114,356 1,850,548 -
PURCHASE OF INVESTMENTS - - (2,839,478)
INTEREST RECEIVED 44,098 3,281 - (15,112) 32,266
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 573,100 210,471 - 1,099,244 1,882,814 (2,839,478)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (726,379) (522,099) (25,186) 934,735 (338,930) (2,234,820)
CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR 1,813.137 1,519,482 58,398 1,162,545 4,553,562 7,011,643
CASH AND CASH EQUIVALENTS -END OF 'YE $ 1,086,759 $ 997,382 $ 33,212 $ 2,097,280 $ 4,214,632 $ 4,776,823
CASH AT END OF YEAR CONSISTS OF:
CASH AND CASH EQUIVALENTS $ 813,565 $ 870,548 $ (18,689) $ 2,060,383 $ 3,725,807 $ 4,776,823
RESTRICTED CASH -BOND PAYMENTS 266,713 126,834 - 36,897 430,444 -
RESTRICTED CASH- CUSTOMER DEPOSITS 6,480 - 51,901 - 58,381
TOTAL CASH $ 1,086,759 $ 997,382 $ 33,212 $ 2,097,280 $ 4,214,633 $ 4,776,823
The notes to the financial statements are an integral part of this statement.
44
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2011
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)
AIM 1,758,125 $ 143,733 $ (549,048) $ 800,958 $ 2,153,768 $ 270,821
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 523,450 378,782 308,386 741,775 1,952,392 734,247
ASSET (INCREASES) DECREASES:
ACCOUNTS RECEIVABLE (27,423) (134,987) 649 (39,735) (201,496) -
MISCELLANEOUS NR-REVENUE (1,265,680) 91,978 69,891 - (1,103,811) 32,348
INVENTORY - (320) 1,458 (1,741) (603) (4,213)
LIABILITY INCREASES (DECREASES) :
ACCOUNTS & VOUCHERS PAYABLE (45,022) 28,132 (1,646) 25,695 7,158 460,363
OTHER LIABILITIES PAYABLE (36,767) 44,010 8,438 15,680
DEPOSITS PAYABLE (2,560) - 1,707 - (853)
WAGES & BENEFITS PAYABLE (871) 7,729 (2,972) (79,506) (75,619)
COMPENSATED ABSENCES PAYABLE 16,395 (44) (6,969) 4,401 13,783
TOTAL ADJUSTMENTS (838,479) 415,278 370,504 659,327 606,630 1,222,745
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 919,646 $ 559,011 $ (178,544) $ 1,460,285 $ 2,760,398 $ 1,493,566
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
CAPITAL ASSETS ACQUIRED BY CONTRIBUTED CAPITAL $ 10,139 $ 189,563 $ - $ 12,582 $ 212,284 $
INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT 7,553 - - 7,553
(75,388)
TOTAL NON CASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES FrY. 17,692 $ 189,563 $ - $ 12,582 $ 219,837 $ (75,388)
The notes to the financial statements are an integral part of this statement.
45
CITY OF TUKWILA: 2011 CAFR
BASIC FINANCIAL STATEMENTS
46
CITY OF TUKWILA: 2011 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: 2011 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUND
DECEMBER 31, 2011
FIREMEN'S
PENSION AGENCY
TRUST FUND FUND
ASSETS:
CASH AND CASH EQUIVALENTS
TOTAL ASSETS
$
1,422,057 $ 9,186
1,422,057 9,186
LIABILITIES:
CURRENT PAYABLES
TOTAL LIABILITIES
9,186
9,186
NET ASSETS:
HELD IN TRUST FOR PENSION BENEFITS AND OTHER PURPOSES $ 1,422,057 $
The notes to the financial statements are an integral part of this statement.
48
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUND
FOR THE YEAR ENDED DECEMBER 31, 2011
FIREMEN'S
PENSION
TRUST FUND
ADDITIONS:
FIRE INSURANCE PREMIUM TAXES $ 54,865
INVESTMENT EARNINGS 1,746
TOTAL ADDITIONS 56,611
DEDUCTIONS:
BENEFIT PAYMENTS
ADMINISTRATIVE EXPENSES
56,576
7,800
TOTAL DEDUCTIONS 64,376
CHANGE IN NET ASSETS (7,765)
NET ASSETS - BEGINNING 1,429,822
NET ASSETS - ENDING $ 1,422,057
The notes to the financial statements are an integral part of this statement.
49
CITY OF TUKWILA: 2011 CAFR BASIC FINANCIAL STATEMENTS
50
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2011
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, which conform to generally accepted
accounting principles for governments, are regulated by the Washington State Auditor's Office. The
City's significant accounting policies are described in this note.
For business -type activities and enterprise funds reporting, the City applies all applicable GASB
pronouncements and all FASB Statements and Interpretations, Accounting Principles Board (APB)
Opinions and Accounting Research Bulletins (ARB) issued on or before November 30, 1989, unless
they conflict with or contradict GASB pronouncements.
A. The Reporting Entity
Based on the criteria of Statement No. 14 of the Governmental Accounting Standards Board (GASB),
the City's Comprehensive Annual Financial Report (CAFR) includes all funds, agencies and boards for
which the City is financially accountable. Financial accountability is defined as appointment of a voting
majority of the component unit's board, and either the ability to impose will by the primary government,
or the possibility that the component unit will provide a financial benefit to or impose a financial burden
on the primary 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 16, 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
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: 2011 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. 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 assets 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 assets and the statement of activities display information about the City as a
whole. 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 city government activities and business -type activities.
The statement of net assets 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: 2011 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.
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 legally restricted for expenditures for specified 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.
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
53
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
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 below, there are two generic fund types in this category.
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 recreation 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 except for major fire apparatus.
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. 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: 2011 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 Assets.
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 assets. The statement of changes in fund net assets
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: 2011 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 each year.
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: 2011 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
Public Safety
Physical Environment
Transportation
Economic Environment
Culture and Recreation
Mental and Physical Health
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.
Includes services provided for the care, treatment, and control of
mental and physical illnesses.
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: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
Receivables and Payables
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 also 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 assets 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 assets and in the respective
funds.
All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and
retirements during the year. Donated assets are valued at estimated fair market value at time of
acquisition. Where historical cost is not known, assets are recorded at estimated historical costs. The
City maintains a capitalization threshold of five thousand dollars. The City's infrastructure consists of
roads, bridges, storm sewers, water and sewer distribution and collection systems. Improvements are
capitalized; the costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend an asset's life are not.
Depreciation is computed using the straight line method over estimated service lives, as follows:
Asset Estimated Service Life
Buildings 25 to 50 years
Non - Building Improvements 25 to 50 years
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.
58
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
Plant Acquisition Adjustments
The State Auditor's Office promulgates a chart of accounts which defines Plant Acquisition Adjustments
as an intangible asset account used only in proprietary fund utilities. This account includes the
difference between the cost to the current governmental owner and the cost incurred by the person or
company that first devoted the property to utility service. These costs are being amortized using the
straight -line method over the estimated service lives of the related capital assets.
Compensated Absences
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.
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 assets. 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.
Fund Equity
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 assets represent the difference between assets and liabilities. Net assets 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 assets are 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.
All other net assets are reported as unrestricted.
The 2003 Limited General Obligation Bond debt to finance the construction of a clubhouse was
transferred from the Foster Golf Course fund due to insufficient operating revenue to service the debt.
This amount is excluded from the Invested in Capital Assets, Net of Related Debt calculation for the
59
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
governmental activities. It is included in the total for the Invested in Capital Assets, Net of Related Debt
calculation for the primary government.
The City applies restricted resources first when an expense is incurred for purposes of which both
restricted and unrestricted net assets are available.
In 2011, the City established a Reserve Policy capable of addressing the various types of the City's
operating and restricted use funds. The objectives of this Policy are to maintain a reserve between
75% and 100% of the minimum of the targeted balances, provide clear guidance on the use and
replenishment of City reserves, and establish a process for periodic review of City reserves.
Fund Balance Components
The fund balance amounts for governmental funds have been reclassified in accordance with GASB
Statement No. 54. As a result, amounts previously reported as reserved and unreserved are now
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.
• 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.
• 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 appropriated balance in the General Fund is committed, and the remaining balance is unassigned.
All other governmental funds, including subfunds of the General Fund are presented as restricted or
committed, with the exception of the two subfunds of the General Fund, which are unassigned.
60
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
Beginning Fund Balances Reclassification Beginning Fund Balances
before GASB 54 after GASB 54
General Fund
Contingency Reserve - Subfund of General Fund
Fire Equipment Cumulative Reser e- Subfund of General Fund
$
5,757,040 $ 1,634,360 $
889,470 (889,470)
744,890 (744,890)
7,391,400
$ 7,391,400 $ $ 7,391,400
Budget information for the General Fund includes budgets for both Contingency Fund and Fire
Equipment Cumulative Reserve Fund. With the implementation of GASB 54, these funds do not meet
the criteria to be reported separately and for financial reporting purposes, they are subfunds of the
General Fund.
Below is a reconciliation of the restated beginning fund balance for Special Revenue funds due to the
implementation of GASB 54.
Beginning Fund Balances Reclassification Beginning Fund Balances
before GASB 54 after GASB 54
Hotel /Motel Tax
Street
Contingency
Fire Equipment Cumulative Reserve
Drug Seizure
$
850,106 $ - $ 850,106
607,646 - $ 607,646
889,470 (889,470) $ -
744,890 (744,890) $
316,024 316,024
$ 3,408,136 $ (1,634,360) $ 1,773,776
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 assets are available in the governmental funds.
General Fund and Subfunds
Nonspendable Restricted Committed Assigned Unassigned Total
Beginning Fund Balance $ 5,000 $ - $ 17,900 $ - $ 7,368,500 $ 7,391,400
Additions - - 100 - 50,852,334 50,852,434
Expenditures - (49,983,692) (49,983,692)
Ending Fund Balance $ 5,000 $ $ 18,000 $ $ 8,237,142 $ 8,260,142
Restricted - Committed - Assigned- Unassigned *
Arterial Street
Nonspendable Restricted Committed Assigned Unassigned Total
Beginning Fund Balance $ - $ 2,714,991 $ 6,551,442 $ 1,786,977 $ - $ 11,053,410
Additions - 17,922,408 109,239 2,164,584 - 20,196,231
Expenditures - (17,940,862) (6,660,681) 281,298 (24,320,245)
Ending Fund Balance $ $ 2,696,537 $ $ 4,232,859 $ $ 6,929,396
Restricted - Committed - Assigned- Unassigned **
Land Acquisition Recreation & Park Development
Nonspendable Restricted Committed Assigned Unassigned Total
Beginning Fund Balance $ - $ - $ 108,177 $ 4,665,335 $ - $ 4,773,512
Additions 88,487 90,676 - 179,163
Expenditures - (108,177) (3,416,526) - (3,524,703)
Ending Fund Balance $ $ $ 88,487 $ 1,339,485 $ $ 1,427,972
Restricted-Committed-Assigned-Unassigned
$18,000 is conxritted for petty cash change funds
* $2.7 million remains in restricted fund balance for Arterial Street, w hich can only be used tow ards approved flood related equipment purchases
61
CITY OF TUKWILA: 2011 CAFR
NOTES TO THE FINANCIAL STATEMENTS
Hotel Motel Tax
Beginning Fund Balance
Additions
Expenditures
Ending Fund Balance
Restricted-Committed-Assigned-Unassigned
Nonspendable
Restricted
Committed
Assigned
Unassigned
$ -
-
-
$ 850,106
1,463,461
(1,525,999)
$ -
-
-
$ -
-
-
$ -
-
-
$ 850,106
1,463,461
(1,525,999)
$ -
$ 787,568
$ -
$ -
$ -
$ 787,568
Street
Beginning Fund Balance
Additions
Expenditures
Ending Fund Balance
Restricted-Committed-Assigned-Unassigned
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
$ -
-
$ 607,646
314,746
(18,455)
$ -
-
-
$ -
-
-
$ -
-
-
$ 607,646
314,746
(18,455)
$ -
$ 903,937
$ -
$ -
$ -
$ 903,937
Drug Seizure
Beginning Fund Balance
Additions
Expenditures
Ending Fund Balance
Restricted-Committed-Assigned-Unassigned
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
$ -
-
-
$ 316,024
153,425
(239,738)
$ -
-
-
$ -
-
-
$ -
-
-
$ 316,024
153,425
(239,738)
$ -
$ 229,711
$ -
$ -
$ -
$ 229,711
Debt Service Funds
Beginning Fund Balance
Additions
Expenditures
Ending Fund Balance
Restricted-Committed-Assigned-Unassigned
Nonspendable
Restricted
Committed
Assigned J Unassigned
Total
$ -
-
-
$ -
-
-
$ -
-
-
$ 3,051
11,076,127
(7,762,865)
$ -
-
-
$ 4,545
11,382,977
(8,242,341)
-
$ -
$ -
$ 3,316,313
$ -
$ 3,145,181
Facility Replacement
Beginning Fund Balance
Additions
Expenditures
Ending Fund Balance
Restricted-Committed-Assigned-Unassigned
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
$ -
-
-
$ -
-
-
$ -
-
-
$ 2,058,647
3,126
(34,759)
$ -
-
-
$ 2,058,647
3,126
(34,759)
$ -
$ -
$ -
$ 2,027,014
$ -
$ 2,027,014
General Government Improvement
Beginning Fund Balance
Additions
Expenditures
Ending Fund Balance
Restricted-Committed-Assigned-Unassigned
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total '
$ -
-
-
$ 397,064
-
-
$ -
-
-
$ -
-
-
$ 1,155,954
285,380
(1,229,785)
$ 1,553,018
285,380
(1,229,785)
$ -
$ 397,064
$ -
$ -
$ 1 211,549
$ 608,613
Fire Improvement
Beginning Fund Balance
Additions
Expenditures
Ending Fund Balance
Restricted - Committed - Assigned- Unassigned
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total
$ -
-
-
$ -
-
-
$ 156,018
157,801
-
$ -
-
-
$ -
-
-
$ 156,018
157,801
-
$ -
$ -
$ 313,819
$ -
$ -
$ 313,819
62
CITY OF TUKWILA: 2011 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 150 as of December
31, 2011. WCIA provides pooled self- insurance coverage for general liability, vehicle liability, false
arrest, and errors and omissions. See Note 16 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, for the rental of the
community center, 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.
lnterfund 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. Repayments from funds
responsible for particular expenditures /expenses to the funds that initially paid for them are not
presented on financial statements.
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.
63
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
H. Changes in Accounting Standards
The City implemented the following Government Accounting Standards Board (GASB) statements in
2011:
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The
objective of this Statement is to improve the usefulness, including the understandability, of
governmental fund balance information. This Statement provides more clearly defined categories to
make the nature and extent of the constraints placed on a government's fund balance more
transparent. It also clarifies the existing governmental fund type definitions to improve the comparability
of governmental fund financial statements and help financial statement users to better understand the
purposes for which governments have chosen to use particular funds for financial reporting.
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 — EQUITY IN POOLED CASH AND INVESTMENTS, CASH, DEPOSITS AND
INVESTMENTS
The City maintains a cash and investment pool available for use by all funds. Interest earned on pooled
investments is recorded in the participating funds. Investments are also held separately by several of
the funds, with interest earned directly for the benefit of each fund.
Cash and Cash Equivalents
At year -end, the carrying amount of the City's bank balance was $28,509,428. Of the bank balance,
$250,000 was covered by Federal depository insurance and the Washington State Public Depository
Protection Commission insured the remainder. The City also maintains imprest funds totaling $19,400.
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: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
At December 31, 2011, the City had the following deposits and investments:
SCHEDULE OF INVESTMENTS BY MATURITY
Maturity Credit Market
Date Rating Value
Certificates of Deposit:
Sound Community Bank 03/04/2014 * $ 3,031,564
Sound Community Bank 05/15/2012 507,839
US Bank 02/15/2013 3,450,000
Total Certificate of Deposits 6,989,403
Agencies:
FNMA 07/01/2016 1,001,676
FHLB 07/01/2017 1,504,688
Municipal Bonds:
Lodging Tax 07/01/2016 AA3 / A+
Revenue - Facilities 07/01/2017 AA1 / AA+
Limited General Obligation 12/01/2017 AA3 / A+
Revenue - Facilities 07/01/2019 AA1 / AA+
Revenue - School Improvements 12/01/2012 AA1 /AA+
Limited General Obligation 09/01/2020 Al
Unlimited General Obligation 12/01/2020 AA1 / AA3
Total Municipal Bonds
2,506,364
535,065
566,150
599,195
549,650
188,582
359,917
1,276,478
4,075,037
TOTAL INVESTMENTS $ 13,570,803
No credit rating with certificate of deposit accounts; accounts are insured by the Public
Depository Protection Commission
65
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
RECONCILIATION OF ALL CASH, DEPOSITS AND INVESTMENTS
AS REPORTED ON STATEMENT OF NET ASSETS:
Cash and Cash Equivalents: $ 22,317,506
Investments 13,570,803
Current Assets Restricted:
Cash and cash equivalents 3,582,423
Total Cash, Cash Equivalents and Investments $ 39,470,732
SUMMARY BY TYPE:
Cash and Cash Equivalents:
Cash on hand $ 19,400
Cash in bank -book balance 25,880,530
Total cash and cash equivalents 25,899,929
Investments:
Certificates of deposit 6,989,402
Federal agencies 2,506,364
Municipal bonds 4,075,037
Total investments 13,570,803
Total Cash, Cash Equivalents, and Investments $ 39,470,732
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair
value of an investment. As a means of limiting its exposure to fair value losses arising from rising interest
rates, the City's investment policy limits at least half of the City's cash and investment portfolio to
maturities of less than one year. Investment maturities are limited as follows:
1) At the time of investment, a minimum of thirty percent (30 %) of the cash and
investment portfolio will be comprised of investments maturing or available within one
year.
2) At the time of investment, eighty percent (80 %) of the portfolio will be comprised of
investments maturing or available within five (5) years and no instruments shall have
a maturity exceeding ten (10) years, except when compatible with a specific fund's
investment needs.
3) The average maturity of the portfolio shall not exceed three and one half (3 1/2) years
or forty -two (42) months.
66
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
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, 2011, 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.
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.
67
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 4 — RECEIVABLES
Property Taxes Receivable
The County Finance Director acts as an agent to collect property taxes levied in the County for all taxing
authorities. Taxes are levied annually on January 1 on property value listed as of the prior August 31.
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 Finance Director 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 normally are not
expected to be collected within 60 days after the current period and are, therefore, 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.
For 2011, the City's general tax levy was $2.82566 per each $1,000 of assessed valuation. Total
assessed valuation for 2010 was $4,969,600,046 and was the basis for the 2011 assessments. Actual
2011 general levy property taxes collected were $13,427,445.
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.
68
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 5 — INTERFUND TRANSACTIONS
Interfund transactions are classified as follows:
Services Provided — Transactions that would be treated as revenues, expenditures or expenses if they
involve external organizations, such as buying goods and services or payments in lieu of taxes, are
similarly treated when they involve other funds of the City of Tukwila.
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.
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.
There were no interfund loans outstanding at December 31, 2011. Interfund transfers were as follows:
SUMMARY OF INTERFUND TRANSFERS
Government and Internal General
Service Funds Fund
Other
Government
Funds
Internal
Service
Funds
Total
Transfers In
Transfers Out
$ 2,276,584 $ 8,725,036 $ - $ 11, 001, 620
(6,282,292) (3,778,916) (414,552) (10,475,760)
Net Transfers In (Out) $(4,005,708) $ 4,946,120 $(414,552) $ 525,860
Proprietary Funds
Water /Sewer Surface Water Foster Golf
Utility Utility Course Total
Transfers In
Transfers Out
Net Transfers In (Out)
$ 98,460 $ - $ 775,000 $ 873,460
(816,234) (361,571) (221,515) (1,399,320)
$ (717,774) $ (361,571) $ 553,485 $ (525,860)
The principal purposes for interfund transfers include interfund subsidies and transfers into debt service
and capital projects funds. Also, the 2003 Limited General Obligation Bond debt to finance the
construction of a clubhouse was transferred from the Foster Golf Course fund to a governmental fun due
to insufficient operating revenue to service the debt. Removal of the debt from the enterprise fund was
treated as a capital contribution.
69
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 6 — CAPITAL LEASES
During 2011 the City maintained capital lease agreements with various financing sources as lessee for
the leasing of City operated machinery and equipment.
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS
Lease
Payable
2012 $18,446
2013 12,076
2014 4,830
2015 3,213
2016 1,364
Total minimum lease payments
Less: Amounts representing interest
Present value of future minimum lease payments
$39, 929
(4,038)
$35, 892
As of December 31, 2011, the value of capital assets acquired under the various capital leases total
$99,422. Base monthly lease payments totaling $1,938 are payable through the end of the various lease
periods. Interest rates for the individual lease agreements vary. Amortization expense in the amount of
$55,484 was recorded for 2011.
70
Governmental activity capital assets, net $ 195,938,218 $ 36,860,949 $ (19,098,850) $ 213,700,317
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 7 — CAPITAL ASSETS
Primary Government
Capital asset activity for the year ended December 31, 2011, was as follows:
GOVERNMENTAL ACTIVITIES
BEGINNING
ENDING
BALANCE INCREASES DECREASES BALANCE
Governmental Activities
Capital assets, not being depreciated:
Land $ 39,472,061 $ $ 77,000 $ (90,000) $ 39,459,061
Construction in Progress 33,131,284 23,388,032 (17,065,499) 39,453,817
Total capital assets,
not being depreciated 72,603,345 23,465,032 (17,155,499) 78,912,878
Capital assets, being depreciated:
Buildings 24,029,326 33,089 (2,291,215) 21,771,200
Other Improvements 13,373,499 4,206,330 (9,593) 17,570,236
Machinery and Equipment 16,400,432 1,609,158 (987,271) 17,022,319
Infrastructure 134,267,302 13,867,667 - 148,134,969
Intangible Assets 269,661 129,035 (26,555) 372,141
Total capital assets
being depreciated 188,340,220 19,845,279 (3,314,634) 204,870,865
Less accumulated depreciation for:
Buildings (9,310,579) (591,569) 362,943 (9,539,205)
Other Improvements (8,389,936) (545,658) 4,929 (8,930,665)
Machinery and Equipment (10,225,250) (1,248,639) 976,856 (10,497,033)
Infrastructure (37,017,942) (4,013,151) - (41,031,093)
Intangible Assets (61,640) (50,345) 26,555 (85,430)
Total accumulated depreciation
Total capital assets, being
depreciated, net
(65,005,347) (6,449,362) 1,371,283 (70,083,426)
123,334,873 13,395,917 (1,943,351) 134,787,439
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CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
BUSINESS -TYPE ACTIVITIES
BEGINNING ENDING
BALANCE INCREASES DECREASES BALANCE
Business -type Activities
Capital assets, not being depreciated:
Land
Construction in Progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Buildings
Other Improvements
Machinery and Equipment
Total capital assets
being depreciated
Less accumulated depreciation for:
Buildings
Other Improvements
Machinery and Equipment
Total accumulated depreciation
Total capital assets, being
depreciated, net
Business Type activity capital assets, net
$ 2,214,118 $ - $
2,893,683 4,957,276
5,107, 801 4,957,276
$ 2,214,118
7,850,959
0 10,065,077
11,390,601
69,891,182
2,295,765
83,577,548
11, 398, 719 (8,118)
69, 835,131 80,027 (23, 976)
2,391,630 (95, 865)
83,625,480 80,027 (127,959)
(2,689,444) (304,703) 7,306
(24,200,709) (1,523,308) 21,082
(1,581,646) (122,228) 95,865
(28,471,799) (1,950,238) 124,253
55,153,682 (1,870,211)
$ 60,261,484 $ 3,087,065 $
(2,986,840)
(25, 702, 935)
(1,608,009)
(30, 297, 784)
(3,706) 53, 279, 765
(3,706) $ 63, 344, 843
All reported capital assets of the City are depreciated. Improvements are depreciated over the remaining
useful lives of the related capital assets. Useful lives for infrastructure were estimated based on the
City's historical records of necessary improvements and replacement.
Donated Capital Assets to Component Unit
Capital assets donated to the Metropolitan Park District total $1,923,626.
Cost
Accumulated
Depreciation Net Book Value
Buildings and Structures
$ 1,938,376 $ 14,750 $ 1,923,626
72
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
CAPITAL ASSET INCREASES
Governmental Activities
Capital Asset - Increases:
Capital Outlays
Capital Improvements
Land Turnover
Developer Turnovers
Construction in Progress to Capital (Infrastructure)
Internal Service Funds (Equipment Rental)
$ 25, 659,173
68,718
17, 065,499
516,921
Internal Service Fur Capital Assets - Total Increases 43,310,311
Business -Type Activities
Capital Asset - Increases:
Capital Outlays
Capital Improvements
Land Turnover
Developer Turnovers
Construction in Progress to Capital - Infrastructure
Capital Assets - Total Increases
DEPRECIATION
$ 5,024,721
12,583
$ 5,037,304
Depreciation expense for 2011 was charged to
functions /programs as follows:
Governmental Activities:
General Government $ 92,214
Public Safety 327,517
Physical Environment 636,703
Transportation 4,036,932
Economic Environment 7,991
Culture and Recreation 563,413
Intangible Assets 50,345
Capital assets held by the government's internal
service funds are charged to the various functions
based on their usage of the assets 734,248
Total 2011 depreciation expense - governmental activities $ 6,449,363
Business -type Activities
Water Utility - Depreciation
Sewer Utility - Depreciation
Foster Golf Course - Depreciation
Surface Water Utility - Depreciation
$ 521,295
$ 378,782
308,386
741,775
Total 2011 accumulated depreciation increases -
business-type activities $ 1,950,238
73
CITY OF TUKWILA: 2011 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 2011 cost distribution for the five participating cities is as follows:
City
Dispatchable
Calls
Percent of
Total
Renton
73,519
21.39%
Kent
94,760
27.57%
Auburn
66,805
19.43%
Tukwila
33,025
9.61%
Federal Way
75,628
22.00%
Total
343,737
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.
74
CITY OF TUKWILA: 2011 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, 2011 $ 4,833,671 $6,841,894 $4,575,538 $2,739,460 $3,090,648 $22,081,211
Current Year Increase /(Decrease) 163,082 210,199 148,189 73,257 167,760 762,487
Equity December31, 2011 $ 4,996,753 $7,052,093 $4,723,727 $2,812,717 $3,258,408 $22,843,698
Percent of Equity 21.87% 30.87% 20.68% 12.31% 14.26% 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
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.
75
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
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
35% BABs
Year Principal Interest Subsidy Total
Debt Service Allocation to Owner Cities
Auburn Burien Federal Way Renton SeaTac Tukwila
31% 4% 18% 36% 3% 8%
2012 $ - $ 5,155,732 $ (1,675,089) $ 3,480,643
2013 1,915,000 5,126,998 (1,675,089) 5,366,909
2014 1,950,000 5,066,566 (1,654,975) 5,361,591
2015 1,990,000 4,995,069 (1,632,787) 5,352,282
2016 2,065,000 4,911,886 (1,632,787) 5,344,099
2017 -2021 11,545,000 22,986,907 (7,869,713) 26,662,194
2022-2026 13,945, 000 19, 586,127 (6,994,733) 26, 536, 394
2027 -2031 17,010,000 14,723,464 (5,346,730) 26,386,734
2032-2036 20,955,000 8,498,417 (3,217,063) 26,236,354
2037 -2039 14,860,000 1,502,494 (697,922) 15,664,572
Totals $86,235,000 $ 92,553,660 $ (32,396,888) $146,391,772
$ 1,078,999 $ 139,226 $ 626,516 $ 1,253,031 $ 104,419 $ 278,451
1,663,742 214,676 966,044 1,932,087 161,007 429,353
1,662,093 214,464 965,086 1,930,173 160,848 428,927
1,659,207 214,091 963,411 1,926,822 160,568 428,183
1,656,671 213,764 961,938 1,923,876 160,323 427,528
8,265,280 1,066,488 4,799,195 9,598,390 799,866 2,132,976
8,226,282 1,061,456 4,776,551 9,553,102 796,092 2,122,912
8,179,888 1,055,469 4,749,612 9,499,224 791,602 2,110,939
8,133,270 1,049,454 4,722,544 9,445,087 787,091 2,098,908
4,856,017 626,583 2,819,623 5,639,246 469,937 1,253,166
$ 45,381,449 $ 5,855,671 $26,350,520 $52,701,038 $ 4,391,753 $11,711,343
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
AUBURN BURIEN FEDERAL WAY RENTON SEATAC TUKWILA TOTAL
Equity January 1, 2011 $ 1,601,588 $ 206,656 $ 929,954 $ 1,859,910 $ 154,992 $ 413,313 $ 5,166,413
Current Year Increasel(Decrease) 1,587,732 204,869 921,909 1,843,818 153,651 409,737 5,121,716
Equity December 31, 2011 $ 3,189,320 $ 411,525 $ 1,851,863 $ 3,703,728 $ 308,643 $ 823,050 $10,288,129
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 Assets 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: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 9 — PENSION PLANS
The City implemented GASB Statements 25 and 27 for reporting of pension plans in 1996. For all plans
the pension liability (asset) was determined in accordance with GASB Statement 27 to be zero both
before and at the effective date of the transition.
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 and defined contribution
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
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.
Membership in the system includes: elected officials; state employees; employees of the Supreme,
Appeals, and Superior courts (other than judges currently in a judicial retirement system); employees of
legislative committees; community and technical colleges, college and university employees not
participating in national higher education retirement programs; judges of district and municipal courts; and
employees of local governments.
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 exercise 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. An employee is reported in Plan 2 until a choice is made.
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 Plan 1 and Plan 2 defined benefit retirement benefits are financed from a combination of
investment earnings and employer and employee contributions. PERS retirement benefit provisions are
established in Chapters 41.34 and 41.40 RCW and may be amended only by the State Legislature.
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, (AFC is the monthly average of the 24 consecutive highest -paid service credit
months.) The retirement benefit may not exceed 60 percent of AFC. The monthly benefit is subject to a
minimum for PERS Plan 1 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. Plan 1 members who retire from inactive status
77
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
prior to the age of 65 may receive actuarially reduced benefits. If a survivor option is chosen, the benefit
is further reduced. A cost -of living allowance (COLA) is granted at age 66 based upon years of service
times the COLA amount, which is increased three percent annually. Plan 1 members may also 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 payable to the age of 60. The
allowance 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. A member with five years of covered employment is eligible for
non -duty disability retirement. Prior to the age of 55, the allowance 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. A cost -of living allowance is granted at age 66 based upon years of service times the
COLA amount (based on the consumer Price Index), capped at three 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.
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. (AFC is the monthly average of the 60 consecutive highest -paid
service months.)
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.
PERS Plan 2 retirement benefits are also actuarially reduced to reflect the choice, if made, 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.
The surviving spouse or eligible child or children of a PERS Plan 2 member who dies after leaving eligible
employment having earned ten years of service credit may request a refund of the member's
accumulated contributions. Effective July 22, 2007, said refund (adjusted as needed for specified legal
reductions) is increased from 100 percent to 200 percent of the accumulated contributions if the
member's death occurs in the uniformed service to the United States while participating in Operation
Enduring Freedom or Persian Gulf, Operation Iraqi Freedom.
PERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component
and member contributions finance a defined contribution component. The defined benefit portion provides
78
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
a monthly benefit that is one percent of the AFC per year of service. (AFC is the monthly average of the
60 consecutive highest -paid service months.)
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 prior to 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, fore 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 defined benefit retirement benefits are also actuarially reduced to reflect the choice, if
made, of a survivor option. There is no cap on years of service credit and Plan 3 provides the same cost -
of- living allowance as Plan 2.
PERS Plan 3 defined contribution retirement benefits are solely dependent upon the results of investment
activities.
The defined contribution portion can be distributed in accordance with an option selected by the member,
either as a lump sum or pursuant to other options authorized by the Director of the Department of
Retirement Systems.
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. Effective July
24, 2005, a member who becomes totally incapacitated for continued employment while serving the
uniformed services, or a surviving spouse or eligible children, may apply for interruptive military service
credit. Additionally, 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, if the member was not at normal
retirement age at death. This provision applies to any member killed in the course of employment, on or
after June 10, 2004, if found eligible by the Department of Labor and Industries.
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CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
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
said member's covered employment, if found eligible by the Department of Labor and Industries.
There are 1,197 participating employers in PERS. Membership in PERS consisted of the following as of
the latest actuarial valuation date for the plans of June 30, 2010:
Type of Membership Membership
Retirees and Beneficiaries Receiving Benefits 76,899
Terminated Plan Members Entitled to but not yet Receiving Benefits 28,860
Active Plan Members Vested 105,521
Active Plan Members Non - vested 51,005
Total 262,285
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 I
Employer*
Employee
PERS Plan II PERS Plan III
7.25% 7.25%
6.00% 4.64%
7.25% **
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: 2011 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
2011 $ 2,078 $ 753,456 $ 113,753
2010 3,494 640,034 98,350
2009 4,080 800,885 136,877
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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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: 2011 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, 2010:
Type of Membership Membership
Retirees and Beneficiaries Receiving Benefits 9,647
Terminated Plan Members Entitled to but not yet Receiving Benefits 782
Active Plan Members Vested 13,420
Active Plan Members Non - vested 3,656
Total 27,505
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, 2011
are as follows:
LEOFF Plan I LEOFF Plan II
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 II
2011 $ 489 $ 654,131
2010 714 640,494
2009 643 630,453
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CITY OF TUKWILA: 2011 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: 2011 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, 2010:
Type of Membership Membership
Retirees and Beneficiaries Receiving Benefits
Terminated Plan Members Entitled to but not yet Receiving Benefits
Active Plan Members Vested
Active Plan Members Non - vested
Total
7
4,210
4,217
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, 2011
are as follows:
Employer
Employee
PSERS Plan II
8.86%
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:
2011
2010
2009
PSERS Plan II
$ 8,712
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CITY OF TUKWILA: 2011 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, 2011.
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) 3
Total 12
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 December 31, 2010 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 2011 $54,865 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: 2011 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
2009 2010 2011
1 Annual normal cost (BOY) $ - $ - $
2 Amortization of UAAL (BOY) 11,185 11,185 11,523
3 Interest to EOY (1 + 2 x i *) 391 391 461
4 ARC at EOY (1 + 2 + 3) 11,576 11,576 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)
(8,695)
(16, 888)
19,769
30,112
(9,057)
(18,236)
20,755
(11,400)
(21,647)
22,231
46,989 47,065
(7- 8) (10,343) (26,234) (24,834)
(11 prior yr) (248,421) (258,764) (284,998)
11 NPO at EOY (9 + 10) $ (258,764) $ (284,998) $ (309,832)
* (i) is the assumed interest rate that year: 3.5% in 2009, 3.5% in 2010, 4.0% in 2011.
** Employer contributions for pensions are total contributions to the Fund net of disbursements from the Fund for medical
expenses under ROW 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
2009 11,576 (8,695) (16,888) 19,769 30,112 (10,343) (258,764) (18,536) 14.7098 (16,888) (258,764)
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)
PERCENTAGE OF ANNUAL PENSION COST CONTRIBUTED
Fiscal Year Ending
Annual Contribution as a* Net Pension
Pension Cost Percentage of Obligation
(APC) APC (Asset)
December 31, 2009 $ 19,769 152% $ (258,764)
December 21, 2010 20,755 226 (284,998)
December 21, 2011 22,231 212 (309,832)
* In years with a negative APC, this percentage is not applicable.
87
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
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
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
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.
88
CITY OF TUKWILA: 2011 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, 2011, there were 3 active employees and 39 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
2009 2010 2011
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
$ 105,058 $ 105,058 $ 91,385
1,196,165 1,196,165 1,124, 502
(1 + 2 x 1*) 65,061 65,061 48,635
(1 + 2 + 3) 1,366,284 1,366,284 1,264,522
40,459 90,941 112,598
61,839 143,332 213,809
(4 + 5 - 6) 1,344,904 1,313,893 1,163,311
8 Employer contributions 335,265 317,771 335,090
9 Change in Net OPEB Obligation (7- 8) 1,009,639 996,122 828,221
10 Net OPEB Obligation at BOY (11 prior yr) 809,181 1,818,820 2,814,942
11 Net OPEB Obligation at EOY (9 + 10) $ 1,818,820 $ 2,814,942 $ 3,643,163
* (i) is the assumed interest rate that year: 5% in 2009, 5% in 2010, 4% in 2011.
89
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
The net OPEB obligation of $3,643,163 is included as a non - current liability on the Statement of Net
Assets.
ANNUAL DEVELOPMENT OF OPEB COST
Fiscal Annual Interest on
Year Required Net OPEB
Ended Contribution Obligation
ARC Annual
Adjustment OPEB Cost
Total
Employer Change in Net OPEB Amortization-- -
Contri- Net OPEB Obligation (Gain)/ (Gain)/
butions Obligation Balance Loss Factor * Loss
Ending
Balance
2008 $ 1,366,284 $ -
2009 1,366,284 40,459
2010 1,366,284 90,941
2011 1,264,522 112,598
* Based on a 21 -year closed
$ - $1,366,284 $ 557,103 $ 809,181 $ 809,181
61,839 1,344,904 335,265 1,009,639 1,818,820
143,332 1,313,893 317,771 996,122 2,814,942
213,809 1,163, 311 335,090 828,221 3,643,163
amortization as of January 1, 2008
$ 809,181
1,031,019
1,048,513
929,432
13.4622 $ - $ 809,181
13.0853 61,839 1,818,820
12.6896 143,332 2,814,942
13.1657 213,809 3,643,163
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
Annual OPEB Employer
Cost Contribution
Percentage of
Annual OPEB Net OPEB
Cost Contributed Obligation
December 31, 2009
December 21, 2010
December 21, 2011
$ 1,344,904 $
1,313,893
1,163,311
335,265
317,771
335,090
25%
24
29
$ 1,818,820
2,814,942
3,643,163
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
Actuarial Value Accrued
Liabilities
Valuation Date of Assets
Unfunded Actuarial
Accrued Liabilities
(UAAL)
UAAL as a
Percentage of
Funded Ratio Covered Payroll Covered Payroll
January 1, 2008
January 1, 2011
$0 $16,103 $16,103 0%
0 14,805 14,805 0%
$581 4%
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
90
CITY OF TUKWILA: 2011 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.
91
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 11 — LONG -TERM DEBT
The City of Tukwila's long -term debt consists of Governmental Activities Long -Term Debt and Business -
Type Activities Long -Term Debt. The City is in compliance with all Washington State debt limitation
statutes and bond indenture agreements. The City's long -term debt is accounted for in two areas:
1. Governmental Activities Long -Term Debt - Debt in this classification is paid from property and
sales tax revenues and is a general obligation of the City. The City currently maintains a rating of
Aa3 from Moody's Investor Service and a rating of AA- from Fitch's Rating Service for its General
Obligation Bonds.
2. Business -Type Activities Long -Term Debt - Operating revenues of the individual proprietary
funds are used to satisfy this debt. The City's bond rating from Moody's Investors Service is Aaa
for the 1995 Revenue Bonds, the 2006 Revenue Bonds and the 2003 General Obligation Bonds.
Public Works Trust Fund loans are low interest rate loans available from the Washington State
Department of Commerce, Local Government & Infrastructure Division for qualifying projects.
The schedules that follow summarize the long -term debt transactions of the City for the year ended
December 31, 2011.
CHANGES IN LONG -TERM LIABILITIES SUMMARY
GENERAL
OBLIGATION
REVENUE PUBLIC WORKS DUE TO
BONDS TRUST FUND COMPENSATED OTHER CAPITAL
UTILTIES LOANS ABSENCES GOVERNMENTS LEASES
TOTAL
Outstanding 0110112011 $ 22,060,000
Added 4,620,000
Retired 1 redeemed (6,420,000)
Outstanding 1213112011 $ 20,260,000
Add: Premium net of deferred charges
$4,395,000 $7,788,844 $ 3,115,607 $ 7,942,800 $ 40,184 $45,342,435
- 2,769,889 - 15,468 7,405,357
(415,000) (609,209) (2,625,140) (196,000) (19,761) (10,285,110)
$ 3,980,000 $ 7,179,635 $ 3,260,356 $ 7,746,800 $ 35,891 42,462,682
46,338
Total Long -Tenn Liabilities $ 42,509,020
92
CITY OF TUKWILA: 2011 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.
GOVERNMENTAL ACTIVITIES
Year Ended
December
31
General Obligation
Bonds
Due to Other Governments
Capital Leases
TOTAL
Principal
Interest
Principal
Interest
Principal
Interest
2012
$ 1,900,000
$ 1,001,870
$ 201,000
$ 310,361
$ 15,984
$ 2,391
$ 3,431,607
2013
1,890,000
1,006,172
368,200
302,033
11,027
1,049
3,578,481
2014
2,040,000
726,911
368,000
290,207
4,480
351
3,429,948
2015
1,645,000
634,740
379,200
277,783
3,055
158
2,939,936
2016
- 2020
8,425,000
2,107,154
891,600
1,242,665
1,345
19
12, 667, 782
2021
- 2025
4,360,000
445,268
1,072,400
1,053,320
-
-
6,930,988
2026
- 2030
-
-
1,306,000
807,025
-
-
2,113,025
2031
- 2035
-
-
1,607,600
493,917
-
-
2,101, 517
2036
- 2040
-
-
1,552,800
119,101
-
-
1,671,901
Totals $20,260,000 $ 5,922,114 $ 7,746,800 $ 4,896,412 $ 35,891 $ 3,968 $ 38,865,185
BUSINESS -TYPE ACTIVITIES
Year Ended
December
31
General Obligation
Bonds
Revenue Bonds
Public Works Trust Fund
Loans
TOTAL
Principal
Interest
Principal
Interest
Principal
Interest
2012
$ -
$ -
$ 440,000
$ 194,444
$ 558,293
$ 35,898
$ 1,228,635
2013
-
-
465,000
168,044
558,293
33,107
1,224,443
2014
-
-
495,000
139,953
558,293
30,315
1,223,561
2015
-
-
520,000
110,172
558,293
27,524
1,215,989
2016
- 2020
-
-
820,000
392,325
2,791,465
24,732
4,028,523
2021
- 2025
-
-
1,010,000
191,925
2,154, 998
10,775
3,367,698
2026
- 2030
-
-
230,000
10,350
-
-
240,350
2031
- 2035
-
-
-
-
-
-
-
2036
- 2040
-
-
-
-
-
-
-
Totals
$ - $ 3,980,000 $ 1,207,212 $ 7,179,635 $ 162,352 $ 12,529,199
93
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
Changes in Long -Term Debt
On December 12, 2011, the City of Tukwila issued $4,620,000 of Limited Tax General Obligation
Refunding bonds, 2011 with an average interest rate of 3.38 %, to refund $4,605,000 of the Arterial Street
portion of the Limited Tax General Obligation Bonds, 2003 with an average interest rate of 4.46 %. The
refunding resulted in $402,965 gross debt service savings over the next eleven years, and a present
value economic gain of $357,673.
Also, the 2003 Limited General Obligation Bond debt to finance the construction of a clubhouse was
transferred from the Foster Golf Course fund due to insufficient operating revenue to service the debt.
This amount is excluded from the Invested in Capital Assets, Net of Related Debt calculation for the
governmental activities. It is included in the total for the Invested in Capital Assets, Net of Related Debt
calculation for the primary government. Removal of the debt from the enterprise fund was treated as a
capital contribution. The debt is now included in the governmental activities general long term debt
account group, however, the asset remains in the enterprise fund.
CHANGES IN LONG -TERM LIABILITIES — GOVERNMENTAL FUNDS
Interest OUTSTANDING OUTSTANDING Due Within
ITEM Rates Maturity Authorized 1213112010 ISSUED REDEEMED 12/31/11 One Year
GOVERNMENTAL ACTIVITIES:
Limited General Obligation (GO) Bonds Payable:
2004 Refunding Facilities 4.00-5.00 12/01/14 $ 4,195,000 $ 1,745,000 $ $ 410,000 $ 1,335,000 $ 425,000
2003 Streets 4.25 -4.65 12/01/23 6,277,500 5,691,175 3,046,599 4,942,774 3,795,000 555,000
2008 Refunding Streets /Facilities 4.00 -6.00 12/01/19 6,180,000 5,630,000 535,000 5,095,000 550,000
2010 Streets /Equipment 2.00-5.41 12/01/24 5,870,000 5,755,000 340,000 5,415,000 345,000
2011 Refunding Streets (2003 GO) 4,620,000 4,620,000 4,620,000 25,000
Total Bonds Payable 27,142,500 18,821,175 7,666,599 6,227,774 20,260,000 1,900,000
Unamortized Deferred Credits (Charges):
Issuance premiums 624,096 457,679 128,716 953,059
Issuance discounts and costs (585,847) (509,621) (138,314) (957,154)
Net Bonds Payable
27,142,500 18,859,424 7,614,657 6,218,176 20,255,905 1,900,000
Due to Other Governments
2009 FacilitySCORE 3.00 -6.62 01/01/39 6,898,800 6,898,800 6,898,800
2010 Refunding facility 4.30 -5.75 12/01/15 1,065,000 1,044,000 196,000 848,000 201,000
Total Due Other Governments 7,963,800 7,942,800 196,000 7,746,800 201,000
Net Due Other Governments
7,963,800 7,942,800 196,000 7,746,800 201,000
Capital leases 125,977 40,184 15,468 19,761 35,891 15,879
Compensated Absences: - 2,840,284 2,510,309 2,381,468 2,969,125 2,381,468
Total Governmental Funds
$ 35,232,277 $ 29,682,692 $ 10,140,434 $
8,815,405 $ 31,007,721 $4,498,347
94
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
CHANGES IN LONG -TERM LIABILITIES - BUSINESS -TYPE ACTIVITIES
ITEM
Interest OUTSTANDING
OUTSTANDING Due Within
Rates Maturity Authorized 12/31/2010 ISSUED REDEEMED 12/31/11 One Year
BUSINESS -TYPE ACTIVITIES:
Bonds Payable:
1995 Water /Sewer Revenue 4.15 -6.63 02/01/15 $ 4,500,000 $ 1,660,000 $ $ 290,000 $ 1,370,000 $ 310,000
2003 Limited G.O. Golf Course 3.21 -4.65 12/01/23 5,772,500 3,238,825 3,238,825
2006 Water /Sewer /SWM Revenue 4.00 -4.50 12/01/26 3,180,000 2,735,000 125,000 2,610,000 130,000
Total Bonds Payable 13,452,500 7,633,825 3,653,825 3,980,000 440,000
Unamortized Deferred Credits (Charges):
Issuance Premiums 104,207 34,986 69,221
Issuance Discounts (24,881) (6,093) (18,788)
Net Bonds Payable 13,452,500 7,713,151 3,682,718 4,030,433 440,000
Public Works Trust Fund Loans:
1991 Loan - Surface Water 1.00 07/01/11 1,313,000 50,893 50,893
2003 Loan - Water /Sewer 0.50 07/01/21 273,870 158,997 14,454 144,543 14,454
2003 Loan - Surface Water 0.50 07/01/21 219,725 127,563 11,619 115,944 11,594
2004 Loan - Water /Sewer 0.50 -2.00 07/01/24 5,016,000 3,820,408 272,886 3,547,522 272,886
2004 Loan - Surface Water 0.50 -2.00 07/01/24 684,000 520,965 37,212 483,753 37,212
2004 Loan - Surface Water 1.00 07/01/24 4,196,056 3,110,018 - 222,144 2,887,874 222,144
Total Public Works Trust Fund Loans 11,702,651 7,788,844 609,209 7,179,635 558,290
Compensated Absences:
275,323 259,580 243,672 291,230 227,033
Total Business -Type Activities
$ 25,155,151 $ 15,777,318 $ 259,580 $ 4,535,599 $ 11,501,299 $ 1,225,323
TOTAL ALL FUNDS $ 60,387,428 $ 45,460,010 $ 10,400,014 $ 13,351,004 $ 42,509,020 $ 5,723,670
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 -11
General obligation bonds $ 20,260,000 $ - $ 20,260,000
Revenue bonds - 3,980,000 3,980,000
Public Works Trust Fund loans 7,179,635 7,179,635
Due to Other Governments 7,746,800 7,746,800
Capital Leases 35,891 - 35,891
Employee leave benefits 2,969,125 291,230 3,260,355
Net Premiums / Deferred charges (4,095) 50,434 46,339
Total long -term debt $ 31,007,721 $ 11,501,299 $ 42,509,020
95
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
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, 2011, 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
$ 71, 289, 090 $ 118, 815,151 $ 237, 630, 302 $ 356,445,452
29, 703, 995 29, 703, 995 29, 703, 995 29, 703, 995
Margin Available $ 41,585,096 $ 89,111,156 $ 207,926,307 $ 326,741,457
NOTE 12 — CONSTRUCTION COMMITMENTS
As of December 31, 2011 the City had $2.1 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 City to be less than $100,000.
96
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 14 — RESTRICTED ASSETS
The balances of the restricted asset accounts in the enterprise funds are as follows:
SUMMARY OF RESTRICTED ASSETS
Restricted Assets
Customer Deposits -Water Utility
Customer Deposits -Golf Course
Lease Deposits -Golf Course
Revenue Bond Reserve Account -Water /Sewer /Surface Water
$ 6,480
36,901
15,000
430,444
Total Restricted Assets $ 488,825
NOTE 15 — 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 150 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 $16 million per occurrence in the re- insured
excess layer. The excess layer is insured by the purchase of reinsurance and insurance and is subject
to aggregate limits. Total limits are $20 million per occurrence subject to aggregate sublimits in the
excess layers. The Board of Directors determines the limits and terms of coverage annually.
Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and
machinery are purchased on a group basis. Various deductibles apply by type of coverage. Property
insurance and auto physical damage are self- funded from the members' deductible to $500,000, for all
perils other than flood and earthquake, and insured above that amount by the purchase of insurance.
In -house services include risk management consultation, loss control field services, claims and litigation
administration, and loss analyses. WCIA contracts for the claims investigation consultants for personnel
issues and land use problems, insurance brokerage, and lobbyist services.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as
determined by an outside, independent actuary. The assessment covers loss, loss adjustment, and
administrative expenses. As outlined in the interlocal, WCIA retains the right to additionally assess the
membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by investment of
WCIA's assets in financial instruments which comply with all State guidelines. These revenues directly
offset portions of the membership's annual assessment.
97
CITY OF TUKWILA: 2011 CAFR NOTES TO THE FINANCIAL STATEMENTS
A Board of Directors governs WCIA, which is comprised of one designated representative from each
member. The Board elects an Executive Committee and appoints a Treasurer to provide general policy
direction for the organization. The WCIA Executive Director reports to the Executive Committee and is
responsible for conducting the day to day operations of WCIA.
The City insures its buildings, equipment, and vehicle property insurance with WCIA. They self -fund up
to $250,000 with standard property insurance purchased above that amount. 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.
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
$7,048,279 in 2011. 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 2011 and 2010.
SUMMARY OF HEALTH CARE CLAIM LIABILITIES
ITEM
Health Benefit Health Benefit
Insurance Insurance Insurance — Insurance —
2011 2010 LEOFF 1 2011 LEOFF 1 2010
Claims Liabilities at Beginning of Year
Claims expenses:
Current year and changes in estimates
Claims payments and expenses
Claims Liabilities at End of Year
NOTE 16 — SUBSEQUENT EVENTS
$ 1,155, 647 $ 1,167, 751 $ 70,300 $ 97,401
4,426,949 4,300,120 426,251 249,957
(4,082,996) (4,312,224) (303,351) (277,058)
$ 1,499,600 $ 1,155,647 $ 193,200 $ 70,300
Potential Annexation Area — North Highline
The North Highline area is approximately 166 acres with a small residential population of 30 residents.
Tukwila designated this area as its potential annexation area in 1995. King County desires all
unincorporated areas to be incorporated to the cities per their County Wide Planning Policies. As of June
5, 2012, the City received 60% petition from property owners.
98
CITY OF TUKWILA: 2011 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 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
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Fiscal Employer Fire Insurance Total Employer Annual Required Percentage of ARC
Year Ending Contributions Premiums Contributions Contribution (ARC) Contributed
December 31, 2006 ($2,114) $45,951 $43,837 ($6,547) N/A %
December 31, 2007 (8,575) 50,555 41,980 (1,998) N/A
December31, 2008 (1,841) 52,571 50,730 (1,998) N/A
December3l, 2009 (18,425) 48,537 30,112 11,576 260
December 31, 2010 (3,000) 49,989 46,989 11,576 406
December31, 2011 (7,800) 54,865 47,065 11,984 393
RETIREE MEDICAL AND LONG -TERM CARE BENEFITS
FOR LEOFF 1 EMPLOYEES
SCHEDULE OF FUNDING PROGRESS
(rounded to thousands)
Actuarial Unfunded Actuarial UAAL as a
Actuarial Value Accrued Accrued Liabilities Percentage of
of Assets Liabilities (UAAL) Funded Ratio Covered Payroll Covered Payroll
$0 $16,103 $16,103 0% $581 4%
0 14,805 14,805 0% 371 3
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
99
CITY OF TUKWILA: 2011 CAFR REQUIRED SUPPLEMENTAL INFORMATION
NOTES TO REQUIRED SUPPLEMENTARY 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
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 4.00%
Medical inflation
Long -term care inflation
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%
100
CITY OF TUKWILA: 2011 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.
101
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENT FUNDS
DECEMBER 31, 2011
TOTAL TOTAL TOTAL TOTAL y
NONMAJOR NONMAJOR NONMAJOR NONMAJOR
SPECIAL REVENUE DEBT SERVICE CAPITAL PROJECTS GOVERNMENTAL
FUNDS FUNDS FUNDS FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 1,508,025 $ 1,309,270 $ 2,505,714 $ 5,323,009
INVESTMENTS - 2,021,043 2,021,043
RECEIVABLES:
TAXES 109,042 - 109,042
DUE FROM OTHER GOVERNMENTAL UNITS 327,984 - 62,295 390,279
CURRENT ASSETS RESTRICTED:
CASH AND CASH EQUIVALENTS - - 397,064 397,064
TOTAL ASSETS $ 1,945,051 $ 3,330,313 $ 2,965,073 $ 8,240,437
LIABILITIES AND FUND BALANCES:
CURRENT LIABILITIES:
ACCRUED WAGES AND BENEFITS $ 13,835 $ - $ 3,544 $ 17,379
ACCOUNTS PAYABLE 10,000 148 10,148
RETAINAGEPAYABLE - - 11,934 11,934
OTHER CURRENT LIABILITIES 14,000 - 14,000
TOTAL LIABILITIES 23,835 14,000 15,626 53,461
FUND BALANCES:
RESTRICTED
COMMITTED
ASSIGNED
TOTAL FUND BALANCES
1,921,216
3,316,313
397,064
313,819
2,238,564
2,318,280
313,819
5,554,877
1,921,216 3,316,313
2,949,447 8,186,976
TOTAL LIABILITIES AND FUND BALANCES
$ 1,945,051 $ 3,330,313 $ 2,965,073 $ 8,240,437
102
CITY OF TUKWILA: 2011 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, 2011
TOTAL
NONMAJOR
SPECIAL REVENUE
FUNDS
i
TOTAL
NONMAJOR
DEBT SERVICE
FUNDS
TOTAL
NONMAJOR
CAPITAL PROJECTS
FUNDS
TOTAL
NONMAJOR
GOVERNMENTAL
FUNDS
REVENUES:
TAXES
INTERGOVERNMENTAL
CHARGES FOR SERVICES
FINES AND FORFEITURES
INVESTMENT EARNINGS
MISCELLANEOUS
TOTAL REVENUES
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT
PHYSICAL ENVIRONMENT
ECONOMIC ENVIRONMENT
PUBLIC SAFETY
DEBT SERVICE
PRINCIPAL
INTEREST
CAPITAL OUTLAY
GBJERALGOVERNNIIVT
PUBLIC SAFETY
$ 555,682 $
1,165,981
216
78,120
3,930
52,703
66,657 $
6
284,026
158,304
3,978
$ 622,339
1,450,007
158,520
78,120
7,914
52,703
1,856,632
1,422,759
3,475
236,263
PHYSICAL ENVIRONMENT -
TRANSPORTATION 8,626
ECONOMIC ENVIRONMENT 14,461
TOTAL EXPENDITURES 1,685,584
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5)
TRANSFERS OUT (Note 5)
GENERAL OBLIGATION BONDS ISSUED
PAYMENT TO FISCAL AGENT
TOTAL OTHER FINANCING SOURCES AND USES
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING (RESTATED, Note 1)
FUND BALANCES - ENDING
66,663
1,766,774
881,850
446,308
19,786
373,727
627,225
150,000
10,196
2,369,603
19,786
373,727
1,422,759
3,475
1,766,774
881,850
627,225
386,263
10,196
8,626
14,461
2,648,624
1,180, 934
5,515,142
(2,581,961)
(734,626)
(3,145,539)
75,000 5,953,776 -
(98,608) (58,553) (83,610)
- 5,055,688 -
(5,055,688) -
(23,608) (83,610)
147,440 3,313,262 (818,236)
1,773,776 3,051
6,028,776
(240,771)
5,055,688
(5,055,688)
5,788,005
2,642,466
3,767,683 5,544,510
$ 1,921,216 $ 3,316,313 $
2,949,447 $ 8,186,976
103
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
104
CITY OF TUKWILA: 2011 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.
105
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2011
TOTAL
NONMAJOR
HOTEL /MOTEL DRUG SPECIAL REVENUE
TAX STREET SEIZURE FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 416,364 $ 861,950 $ 229,711 $ 1,508,025
RECEIVABLES:
CURRENT TAXES RECEIVABLE 67,055 41,987 - 109,042
DUE FROM OTHER GOVERNMENTAL UNITS 327,984 - - 327,984
TOTAL ASSETS $ 811,403 $ 903,937 $ 229,711 $ 1,945,051
LIABILITIES AND FUND BALANCES:
ACCOUNTS PAYABLE $ 10,000 $ - $ - $ 10,000
ACCRUED WAGES AND BENEFITS PAYABLE 13,835 - - 13,835
TOTAL LIABILITIES 23,835 - - 23,835
FUND BALANCES:
RESTRICTED
TOTAL FUND BALANCES
787,568
787,568
903,937 229,711
903,937 229,711
1,921,216
1,921,216
TOTAL LIABILITIES AND FUND BALANCES
$ 811,403 $ 903,937 $ 229,711 $ 1,945,051
106
CITY OF TUKWILA: 2011 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, 2011
HOTEL /MOTEL
TAX
STREET
TOTAL
NONMAJOR
DRUG SPECIAL REVENUE
SEIZURE FUNDS
REVENUES:
TAXES $ 555,682 $ - $ - $ 555,682
INTERGOVERNMENTAL 853,397 312,584 1,165,981
CHARGES FOR SERVICES 216 216
FINES AND FORFEITURES - 78,120 78,120
INVESTMENT EARNINGS 1,463 2,162 305 3,930
MISCELLANEOUS 52,703 52,703
TOTAL REVENUES 1,463,461 314,746 78,425 1,856,632
EXPENDITURES:
CURRENT:
PUBLIC SAFETY - 3,475 3,475
ECONOMIC ENVIRONMENT 1,422,759 1,422,759
CAPITAL OUTLAY :
PUBLIC SAFETY 236,263 236,263
TRANSPORTATION - 8,626 8,626
ECONOMIC ENVIRONMENT 14,461 14,461
TOTAL EXPENDITURES 1,437,220 8,626 239,738 1,685,584
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER) EXPENDITURES 26,241 306,120 (161,313) 171,048
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5)
TRANSFERS OUT (Note 5)
TOTAL OTHER FINANCING SOURCES AND USES
(88,779)
(9,829)
75,000
(88,779)
(9,829)
75,000
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING (RESTATED, Note 1)
(62,538) 296,291
850,106 607,646
75,000
(98,608)
(23,608)
(86,313) 147,440
316,024 1,773,776
FUND BALANCES - ENDING
$ 787,568 $ 903,937 $ 229,711 $ 1,921,216
107
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
HOTEL /MOTEL TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2011
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES:
TAXES $ 379,706 $ 379,706 $ 555,682 $ 175,976
INTERGOVERNMENTAL 853,000 853,000 853,397 397
CHARGES FOR SERVICES - - 216 216
INVESTMENT EARNINGS 1,766 1,766 1,463 (303)
MISCELLANEOUS 15,489 54,089 52,703 (1,386)
TOTAL REVENUES 1,249,961 1,288,561 1,463,461 174,900
EXPENDITURES:
CURRENT:
ECONOMIC ENVIRONMENT
CAPITAL OUTLAY:
ECONOMIC ENVIRONMENT
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
1,499,230 1,537,830 1,422,759
10,000 10,000 14,461
1,509,230 1,547,830 1,437,220
115,071
(4,461)
110,610
(259,269) (259,269) 26,241
285,510
OTHER FINANCING SOURCES (USES):
TRANSFERS OUT (Note 5)
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
(88,779) (88,779) (88,779)
(88,779) (88,779) (88,779)
(348,048) (348,048) (62,538)
285,510
800,000 800,000 850,106 50,106
$ 451,952 $ 451,952 $ 787,568 $ 335,616
108
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
STREET SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2011
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAP BASIS) (GAAP BASIS) RESULTS (NEGATIVE)
REVENUES:
INTERGOVERNMENTAL $ 230,000 $ 230,000 $ 312,584 $ 82,584
INVESTMENT EARNINGS 1,000 1,000 2,162 1,162
TOTAL REVENUES 231,000 231,000 314,746 83,746
EXPENDITURES:
CAPITAL OUTLAY:
TRANSPORTATION 150,000 20,000 8,626 11,374
TOTAL EXPENDITURES 150,000 20,000 8,626 11,374
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 81,000 211,000 306,120 95,120
OTHER FINANCING SOURCES (USES):
TRANSFERS OUT (Note 5) (9,829) (9,829) (9,829)
TOTAL OTHER FINANCING SOURCES AND USES (9,829) (9,829) (9,829)
NET CHANGE IN FUND BALANCES 71,171 201,171 296,291 95,120
FUND BALANCES - BEGINNING 500,000 500,000 607,646 107,646
FUND BALANCES - ENDING $ 571,171 $ 701,171 $ 903,937 $ 202,766
109
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
DRUG SEIZURE SPECIAL REVENUE FUND
FOR THE YEAR ENDED DECEMBER 31, 2011
VARIANCE WITH
ORIGINAL FINAL FINAL BUDGET
BUDGET BUDGET ACTUAL POSITIVE
(GAAPBASIS) (GAAPBASIS) RESULTS (NEGATIVE)
REVENUES:
INVESTMENT EARNINGS $ 1,000 $ 1,000 $ 305 $ (695)
FINES AND FORFEITURES 110,000 110,000 78,120 (31,880)
TOTAL REVENUES 111,000 111,000 78,425 (32,575)
EXPENDITURES:
CURRENT:
PUBLIC SAFETY
CAPITAL OUTLAY:
PUBLIC SAFETY
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5)
TOTAL OTHER FINANCING SOURCES AND USES
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
25,000 25,000 3,475 21,525
269,000 269,000 236,263 32,737
294,000 294,000 239,738 54,262
(183,000) (183,000) (161,313) 21,687
75,000 75,000
75,000 75,000
(183,000) (108,000) (86,313) 21,687
220,000 220,000 316,024 96,024
$ 37,000 $ 112,000 $ 229,711 $ 117,711
110
CITY OF TUKWILA: 2011 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.
111
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR DEBT SERVICE FUNDS
December 31, 2011
Page 1 of 2
LIMITED TAX
G.O. BONDS /
G.O. REFUNDING
2008 (REF 1999)
LIMITED TAX G.O.
REFUNDING
BONDS
2010 /(REF 2000)
LIMITED TAX
G.O. BONDS
2003
LIMITED TAX
G.O. REFUNDING
BONDS 2003
(REF 1994)
ASSETS:
CASH AND CASH EQUIVALENTS
INVESTMENTS
TOTAL ASSETS
$ 5,408 $
14,084 $
14,084 $ 3,303,041 $
14,000
14,000
1,281,998 $
2,021,043
1,156
$ 5,408 $
1,156
LIABILITIES AND FUND BALANCES:
DUE TO OTHER GOVERNMENTAL UNITS
TOTAL LIABILITIES
FUND BALANCES:
ASSIGNED
TOTAL FUND BALANCES
$ 5,408 $
84 $ 3,303,041 $
1,156
5,408
84 3,303,041
1,156
TOTAL LIABILITIES AND FUND BALANCES $ 5,408 $ 14,084 $ 3,303,041 $ 1,156
112
TOTAL y
NONMAJOR
DEBT SERVICE
FUNDS
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Page 2 of 2
LIMITED TAX
LIMITED TAX LIMITED TAX LIMITED TAX TAXABLE BUILD G.O. REFUNDING
BONDS G.O. BONDS G.O. BONDS G.O. AMERICA BONDS 2011
BONDS 2009A BONDS 2009B BONDS 2010A BONDS 2010B (REF 2003)
$ 707 $ 616 $ 37 $ 5,264 $ $ 1,309,270
- - 2,021,043
$ 707 $ 616 $ 37 $ 5,264 $ $ 3,330,313
- - - 14,000
- - 14,000
$ 707 $ 616 $ 37 $ 5,264 $ $ 3,316,313
707 616 37 5,264 3,316,313
$ 707 $ 616 $ 37 $ 5,264 $ $ 3,330,313
113
CITY OF TUKWILA: 2011 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, 2011
Page 1 of 2
G.O. LIMITED TAX
LIMITED TAX G.O. REFUNDING G.O.
BONDS / G.O. BONDS LIMITED TAX REFUNDING
REFUNDING 2008 2010 /(REF G.O. BONDS BONDS 2003
(REF1999) 2000) 2003 (REF1994)
REVENUES:
TAXES
INVESTMENT EARNINGS
TOTAL REVENUES
6
EXPENDITURES:
DEBT SERVICE
INTEREST 280,701 27,790 247,180 79,201
PRINCIPAL 535,000 144,000 337,774 410,000
TOTAL EXPENDITURES 815,701 171,790 584,954 489,201
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(815,695) (171,790) (584,954) (489,201)
OTHER FINANCING SOURCES (USES):
TRANSFERS IN (Note 5) 854,277 170,990 3,894,532 500,932
TRANSFERS OUT (Note 5) (33,677) - (6,690) (12,032)
GENERAL OBLIGATION BONDS ISSUED - - - -
PAYMENT TO FISCAL AGENT - - - -
TOTAL OTHER FINANCING SOURCES AND USES 820,600 170,990 3,887,842 488,900
NET CHANGE IN FUND BALANCES 4,905 (800) 3,302,888 (301)
FUND BALANCES - BEGINNING
503 884 153 1,457
FUND BALANCES - ENDING
$ 5,408 $ 84 $ 3,303,041 $ 1,156
114
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
Page 2 of 2
TAXABLE LIMITED TAX TOTAL
BUILD G.O. NONMAJOR
LIMITED TAX LIMITED TAX LIMITED TAX AMERICA REFUNDING DEBT
G.O. BONDS G.O. BONDS G.O. BONDS BONDS BONDS 2011 SERVICE
2009A 2009B 2010A 2010B (REF 2003) FUNDS
$ $ $ 66,657 $ - $ 66,657
6
66,657 66,663
55,775 191,203 881,850
340,000 - - 1,766,774
395,775 191,203 2,648,624
(395,775)
(124,546) (2,581,961)
1,293 6,184 395,775 129,793 - 5,953,776
(586) (5,568) - - (58,553)
5,055,688 5,055,688
- - (5,055,688) (5,055,688)
707 616 395,775 129,793 5,895,223
707 616 - 5,247 - 3,313,262
37 17 - 3,051
$ 707 $ 616 $ 37 $ 5,264 $ - $ 3,316,313
115
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
116
CITY OF TUKWILA: 2011 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.
117
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR CAPITAL PROJECTS FUNDS
DECEMBER 31, 2011
GENERAL TOTAL NONMAJOR
FACILITY GOVERNMENT FIRE CAPITAL PROJECTS
REPLACEMENT IMPROVEMENTS IMPROVEMENTS FUNDS
ASSETS:
CASH AND CASH EQUIVALENTS $ 2,027,271 $ 164,624 $ 313,819 $ 2,505,714
RECEIVABLES:
DUE FROM OTHER GOVERNMENTAL UNITS - 62,295 - 62,295
CURRENT ASSETS RESTRICTED:
CASH AND CASH EQUIVALENTS 397,064 397,064
TOTAL ASSETS $ 2,027,271 $ 623,983 $ 313,819 $ 2,965,073
LIABILITIES AND FUND BALANCES:
CURRENT PAYABLES:
ACCRUED WAGES AND BENEFITS $ 256 $ 3,288 $ $ 3,544
ACCOUNTS PAYABLE 148 148
RETAINAGE PAYABLE 11,934 11,934
TOTAL LIABILITIES 256 15,370 15,626
FUND BALANCES:
RESTRICTED 397,064 - 397,064
COMMI I I EL) 313,819 313,819
ASSIGNED 2,027,015 211,549 - 2,238,564
TOTAL FUND BALANCES 2,027,015 608,613 313,819 2,949,447
TOTAL LIABILITIES AND FUND BALANCES $ 2,027,271 $ 623,983 $ 313,819 $ 2,965,073
118
CITY OF TUKWILA: 2011 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, 2011
GENERAL TOTAL NONMAJOR
FACILITY GOVERNMENT FIRE CAPITAL PROJECTS
REPLACEMENT IMPROVEMENTS IMPROVEMENTS FUNDS
REVENUES:
CHARGES FOR SERVICES $ 650 $ $ 157,654 $ 158,304
INTERGOVERNMENTAL - 284,026 - 284,026
INVESTMENT EARNINGS 2,477 1,354 147 3,978
TOTAL REVENUES 3,127 285,380 157,801 446,308
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT
PHYSICAL ENVIRONMENT
CAPITAL OUTLAY
GENERAL GOVERNMENT
PUBLIC SAFETY
PHYSICAL ENVIRONMENT
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
19,786
373,727
19,786
373,727
627,226 627,226
150,000 - 150,000
10,196 10,196
10,196 1,170,739 1,180,935
(7,069) (885,359) 157,801 (734,627)
OTHER FINANCING SOURCES (USES):
TRANSFERS OUT (Note 5)
TOTAL OTHER FINANCING SOURCES AND USES
NET CHANGE IN FUND BALANCES
(24,563) (59,047)
(24,563) (59,047)
(83,610)
(83,610)
(31,632) (944,406)
157,801
(818,237)
FUND BALANCES - BEGINNING 2,058,647 1,553,018 156,018 3,767,683
FUND BALANCES - ENDING $ 2,027,015 $ 608,612 $
313,819 $ 2,949,447
119
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
120
CITY OF TUKWILA: 2011 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
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.
121
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENTS OF NET ASSETS
INTERNAL SERVICE FUNDS
DECEMBER 31, 2011
TOTAL
INTERNAL
EQUIPMENT INSURANCE- SERVICE
RENTAL INSURANCE LEOFF I FUNDS
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 1,821,899 $ 1,132,739 $ 1,822,186 $ 4,776,824
INVESTMENTS 1,693,269 5,302,932 - 6,996,201
RECEIVABLES:
CUSTOMER ACCOUNTS 695 - - 695
INTEREST ON INVESTMENTS 7,535 47,409 - 54,944
INVENTORY OF MATERIALS AND SUPPLIES 17,748 - - 17,748
TOTAL CURRENT ASSETS 3,541,146 6,483,080 1,822,186 11,846,412
NONCURRENT ASSETS:
CAPITAL ASSETS:
MACHINERY AND EQUIPMENT
LESS: ACCUMULATED DEPRECIATION
TOTAL CAPITAL ASSETS (NET OF A /D)
9,502,619
(6,972,494)
2,530,125
9,502,619
(6,972,494)
2,530,125
TOTAL NONCURRENT ASSETS
2,530,125 - 2,530,125
TOTAL ASSETS 6,071,271 6,483,080 1,822,186 14,376,537
LIABILITIES:
ACCRUED WAGES AND BENEFITS
OTHER CURRENT LIABILITIES
TOTAL LIABILITIES
17,154 - 17,154
1,499,600 193,200
1,692,800
17,154
1,499,600 193,200
1,709,954
NET ASSETS:
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT
UNRESTRICTED
2,530,125
3,523,993
4,983,480 1,628,987
2,530,125
10,136,460
TOTAL NET ASSETS $ 6,054,118 $ 4,983,480 $ 1,628,987 $ 12,666,585
122
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2011
TOTAL
INTERNAL
EQUIPMENT INSURANCE- SERVICE
RENTAL INSURANCE LEOFFI FUNDS
OPERATING REVENUES:
CHARGES FOR SERVICES
TOTAL OPERATING REVENUES
$ 2,149,296 $ 4,329,953 $ 464,936 $ 6,944,185
2,149,296 4,329,953 464,936 6,944,185
OPERATING EXPENSES:
OPERATIONS & MAINTENANCE 1,198,461 4,324,109 416,547 5,939,117
DEPRECIATION/AMORTIZATION 734,247 734,247
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
1,932,708 4,324,109
416,547 6,673,364
216,588 5,844
48,389 270,821
NON - OPERATING REVENUE (EXPENSE):
INVESTMENT EARNINGS
SALE OF CAPITAL ASSETS
19,901 534,629
3,552 558,082
40,160 40,160
TOTAL NON - OPERATING REVENUE (EXPENSE)
INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS
60,061 534,629
3,552 598,242
276,649 540,473 51,941 869,063
TRANSFERS OUT (Note 5)
(294,607) (110,241)
(9,704) (414,552)
CHANGE IN NET ASSETS lil
(17,958) 430,232 42,237 454,511
TOTAL NET ASSETS BEGINNING OF YEAR
6,072,076 4,553,248
1,586,750 12,212,074
TOTAL NET ASSETS END OF YEAR $ 6,054,118 $ 4,983,480 $ 1,628,987 $ 12,666,585
123
CITY OF TUKWILA: 2011 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, 2011
Page 1 oft
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)
$ 2,149,531 $ 4,360,993 $ 464,936 $ 6,975,460
(671,078) (4,324,109) (416,547) (5,411,734)
(43,430) (43,430)
(487,159) - - (487,159)
337,529 122,900 460,429
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
947,864 374,413 171,289 1,493,565
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
TRANSFERS IN
TRANSFERS OUT
(294,607) (110,241)
(9,704) (414,552)
NET CASH PROVIDED (USED) BY NON -
CAPITAL FINANCING ACTIVITIES
(294,607) (110,241) (9,704) (414,552)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM SALE OF EQUIPMENT 39,924 - 39,924
PURCHASE OF CAPITAL ASSETS (514,280) - (514,280)
NET CASH PROVIDED (USED) FOR CAPITAL
AND RELATED FINANCING ACTIVITIES
(474,356) - (474,356)
CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF INVESTMENTS
PURCHASE OF INVESTMENTS
INTEREST RECEIVED
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES
(1,687,090)
5,492
3,522,052
(5,383,328)
492,656
207,188
3,552
3,729,240
(7,070,418)
501,700
(1,681,598) (1,368,620)
210,740 (2,839,478)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
(1,502,697) (1,104,448)
372,325 (2,234,820)
CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR
3,324,596 2,237,187
1,449,860 7,011,643
CASH AND CASH EQUIVALENTS -END OF YEAR $ 1,821,899 $ 1,132,739 $ 1,822,185 $ 4,776,823
CASH AT END OF YEAR CONSISTS OF:
CASH AND CASH EQUIVALENTS
TOTAL CASH
$ 1,821,899 $ 1,132,739 $ 1,822,185 $ 4,776,823
$ 1,821,899 $ 1,132,739 $ 1,822,185 $ 4,776,823
124
CITY OF TUKWILA: 2011 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, 2011
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)
$
216,588 $ 5,844 $
48,389 $ 270,821
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 734,247 - - 734,247
ASSET (INCREASES) DECREASES :
MISCELLANEOUS NR- REVENUE 235 32,113 32,348
INVENTORY (4,213) - (4,213)
LIABILITY INCREASES (DECREASES) :
ACCOUNTS & VOUCHERS PAYABLE 1,007 336,456 122,900 460,363
TOTAL ADJUSTMENTS 731,276 368,569 122,900 1,222,745
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 947,864 $ 374,413 $ 171,289 $ 1,493,566
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
INCREASE (DECREASE) IN FAIR VALUE OF INVESTMENT
6,179 (81,567) - (75,388)
TOTAL NON CASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES $ 6,179 $ (81,567) $ $ (75,388)
125
CITY OF TUKWILA: 2011 CAFR FUND FINANCIAL STATEMENTS AND SCHEDULES
126
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
City of Tukwila
STATISTICAL SECTION
December 31, 2011
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 Assets by Component 124
Schedule 2 Changes in Net Assets 126
Schedule 3 Fund Balances, Governmental Funds 128
Schedule 4 Changes in Fund Balances, Governmental Funds 130
Schedule 5 General Governmental Tax Revenues by Source 133
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 133
Schedule 7 Assessed and Estimated Actual Value of Taxable Property 134
Schedule 8 Property Tax Rates - Direct and Overlapping Governments 135
Schedule 9 Principal Property Taxpayers 136
Schedule 10 Retail Sales Tax Collections by Sector 138
Schedule 11 Sales Tax Rate Direct and Overlapping Governments 140
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 142
Schedule 13 Ratios of General Bonded Debt Outstanding 144
Schedule 14 Computation of Direct and Overlapping Debt 145
Schedule 15 Legal Debt Margin Information 146
Schedule 16A Revenue Bond Coverage- Water and Sewer Bonds 148
Schedule 16B Revenue Bond Coverage- Surface Water Bonds 149
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 17 Demographic Statistics 150
Schedule 18 Principal Employers 151
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 19 Staffing Levels by Department 152
Schedule 20 Operating Indicators by Function 153
Schedule 21 Capital Assets by Function 154
127
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA
NET ASSETS BY COMPONENTIa)
LAST TEN FISCAL YEARS (b)
page 1 of 2
me 2002(b)
2003 2004 M 2005 ' 2006
Governmental activities:
Invested in capital assets, net of
related debt $ 102,619,488 $ 118,950,364 $ 123,038,903 $ 129,855,251 $ 133,129,382
Restricted 389,322 809,002 1,107,362 1,305,239 1,305,239
Unrestricted 23,825,950 24,341,822 25,873,104 25,289,571 29,506,541
Total governmental activities net assets $ 126,834,760 $ 144,101,188 $ 150,019,369 $ 156,450,061 $ 163,941,162
Business -type activites:
Invested in capital assets, net of
related debt $ 29,032,974 $ 29,807,787 $ 30,848,350 $ 31,370,812 $ 34,017,190
Restricted 1,311,344 887,398 960,485 577,587 435,995
Unrestricted 8,785,499 9,070,664 9,664,654 9,909,896 12,070,451
Total business -type activities net assets $ 39,129,817 $ 39,765,849 $ 41,473,489 $ 41,858,295 $ 46,523,636
Primary government:
Invested in capital assets, net of
related debt $ 131,652,462 $ 148,758,151 $ 153,887,253 $ 161,226,063 $ 167,146,572
Restricted 1,700,666 1,696,400 2,067,847 1,882,826 1,741,234
Unrestricted 32,611,449 33,412,486 35,537,758 35,199,467 41,576,992
Total primary government net assets $ 165,964,577 $ 183,867,037 $ 191,492,858 $ 198,308,356 $ 210,464,798
Notes:
(a) All amounts are reported on the accrual basis
(b) Amounts presented from year of implementation of GASB -34 (2002) forward
Source:
Tukw ila Finance Department
128
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
page 2 of 2
2011
$ 136,053,013 $ 136,742,368 $ 155,847,012 $ 177,078,793 $ 199,511,779
1,233,234 19,720,546 16,360,097 23,005,792 5,019,817
35,520,681 18,476,837 16,031,473 12,119,923 21,479,064
$ 172,806,928 $ 174,939,751 $ 188,238,582 $ 212,204,508 $ 226,010,660
$ 36,083,972 $ 36,071,402 $ 38,052,488 $ 44,759,489 $ 52,134,799
441,073 439,100 438,619 430,444 430,444
11,267,171 13,335,836 10,987,162 11,158,081 10,225,558
$ 47,792,216 $ 49,846,338 $ 49,478,269 $ 56,348,014 $ 62,790,801
$ 172,136,985 $ 172,813,770 $ 193,899,500 $ 221,838,282 $ 248,636,920
1,674,307 20,159,646 16,798,716 23,436,236 5,450,261
46,787,852 31,812,673 27,018,635 23,278,004 34,714,280
$ 220,599,144 $ 224,786,089 $ 237,716,851 $ 268,552,522 $ 288,801,461
129
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 2
CHANGES IN NET ASSETS (a)
Page 1 of 2
2004 (b)
$ 6,167,738
18,769,074
1,442,209
4,962,043
3,469,673
3,680,402
1,034,841
39,525,980
6,774,102
1,670,400
1,625,579
10,070,081
2005 '
2006
Expenses
Governmental Activities
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Mental and Physcial Health
Culture and Recreation
Interest on Long Term Debt
Total Governmental Activities
Business Type Activities
Water /Sew er Utility
Foster Golf Course
Surface Water Utility
Total Business Type Activities
Total Primary Government Expenses
Program Revenues
Governmental Activities
Charges for Services
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Cultural and Recreation
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities Program Revenues
Business Type Activities
Charges for Services
Water /Sew er Utility
Foster Golf Course
Surface Water Utility
Operating Grants and Contributions
Capital Grants and Contributions
Total Business Type Activities Program Revenues
Total Primary Government Program Revenues
Net (Expense) /Revenue
Governmental Activities
Business Type Activities
Total Primary Government Net Expense
General Revenues and Other Changes in Net Assets
Governmental Activities
Taxes
Property Tax
Retail Sales and Use Tax
Natural Gas Use Tax
Hotel/Motel Tax
Utility Tax
Business Tax
Excise Tax
State Entitlements
Unrestricted Investment Earnings
Gain /Loss on Sale of Capital Assets
Transfers
Total Governmental Activities
Business Type Activities
Retail Sales and Use Taxes
Unrestricted Investment Interest
Gain /Loss on Sale of Capital Assets
Miscellaneous
Transfers
Total Business Type Activities
Total Primary Government
Change in Net Assets
Governmental Activities
Business Type Activities
Total Primary Government
$ 6,421,839
20,300,709
1,363,049
4,171,173
3,404,605
3,887,871
1,012,239
40, 561,485
7,105,020
1,751,709
1,685,663
10, 542, 392
$ 7,402,398
21, 839,070
2,734,592
5,335,214
3,600,158
3,683
4,234,889
981,573
46,131,577
7,354,876
1,832,303
1,642,204
10, 829, 383
$ 49,596,061 $ 51,103,877 $ 56,960,960
$ 781,653
937,873
5,005
102,614
1,977,676
894,681
1,607, 688
3,705,424
10,012,614
7,620,572
1,239,274
1,819,703
588,891
11,268,440
21,281,054
$ 1,376,749
1,328,369
12,400
122,201
1,027,812
693,857
1,525,579
3,060,960
9,147,927
$ 1,243,936
538,576
10,000
247,026
1,756,240
758,385
1,897,543
5,675,493
12,127,199
7,604,711 7,354,876
1,434,933 1,832,303
1,839,760 1,642,204
319,439 1,255,360
11,198,843 12, 084,743
20,346,770 24,211,942
(29,513,366) (31,413,558) (34,004,378)
1,198,359 656,451 2,031,638
$ (28,315,007) $ (30,757,107) $ (31,972,740)
$ 10,336,366
16,492,528
29,667
390,221
2,309,787
1,614,587
4,100,309
191,589
416,483
(450,000)
35,431,537
228,458
188,242
$ 10,631,036
16,887,846
381,706
443,605
2,646,356
1,732,739
3,229,155
192,816
768,097
106,776
824,118
37,844,250
$ 10,973,030
18,236,733
415,652
501,478
2,930,332
2,097,082
4,941,461
185,475
1,923,171
467,510
1,372,652
44,044,576
241,723 645,473
310,750 539,463
450,000 (824,118) 1,250,000
866,700 (271,645) 2,434,936
$ 36,298,237 $ 37,572,605 $ 46,479,512
$ 5,918,171 $ 6,430,692 $ 7,491,102
2,065,059 384,806 4,580,734
$ 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
130
$ (34,559,411) $ (37,693,996) $ (29,381,357) $ (13,128,180) $ (22,858,904)
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
Page 2 of 2
$ 7,456,335
21,726,932
2,764,373
5,310,247
3,890,845
4,204
4,506,223
896,215
$ 4,723,103
24,147, 992
2,862,487
5,864,297
5,017,935
4,173
4,797,856
1,844,224
$ 6,689,659
26,959,352
2,575,405
5,541, 367
4,637,531
4,332
4,914,256
753,904
46,555,374
7,046,603
1,849,542
1,920,194
49,262,067 52,075,806
7,293,362
1,968,595
1,762,417
9,293,434
2,050,172
2,299,394
10, 816, 339
11, 024, 374 13, 643, 000
$ 57,371,713 $ 60,286,441 $ 65,718,806
$ 1,590,553
425,241
25,341
133,500
2,319,634
777,484
1,692,766
3,746,743
$ 895,966
1,184, 530
1,200
130,637
2,476,501
711,542
1,325,163
2,282, 592
10,711,262 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
$ 1,136,642
572,094
103,311
1,001,511
647,354
3,386,269
14,784,074
$ 7,052,717 $ 9,150,573
26,088,644 25,348,318
2,533,394 2,885,175
6,015,197 6,872,708
4,579,338 4,712,832
4,539 4,591
4,756,676 4,203,824
1,061,419 472,438
52,091,924 53,650,459
9,343,368 10,092,903
1,935,014 1,986, 747
2,476,170 2,588,098
13, 754, 552 14, 667, 748
$ 65,846,476 $ 68,318,207
$ 1,080,801 $ 2,462,671
819,043 809,806
6,200 7,572
571,110 345,373
1,787,274 1,722,285
811,679 1,001,117
2,139,029 2,250,601
23, 992, 563 18,495,127
21,631,255 31,207,699 27,094,552
10,124,653
1,424,595
2,641,313
515,633
14, 706,194
36,33 /,449
9,665,095 11,711,242
1,425,327 1,304,016
3,029,630 3,355,956
7,390,545 1,993,537
21,510,597 18,364,751
52, /18,296 45,459,303
(35,844,111) (40,253,937) (30,444,551) (20,884,225) (26,555,907)
1,284,700 2,559,941 1,063,194 7,756,045 3,697,003
$ 11,302,099 $ 11,656,979 $ 11,901,072
19,355,867 18,009,297 14,588,297
344,748 643,037 748,772
583,232 587,216 489,806
3,666,079 5,136,444 7,390,860
2,236,675 2,497,705 3,196,178
4,127,360 983,078 367,198
217,600 874,046 2,233,445
1,727,879 801,847 246,287
13,652 (186,663) 980,267
1,134, 683 1,383,774 1,601,200
44,709,874 42,386,760 43,743,382
$ 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
500,000 500,000 327,999
618,563 377,955 106,032
- - (264,093)
(1,134,683) (1,383,774) (1,601,200)
(16,120) (505,819) (1,431,262)
$ 44,693,754 $ 41,880,941 $ 42,312,120
42,798,557
329,527
85,942
97,541
(1,399,310)
(886,300)
$ 41,912,257
$ 13,443,137
15,796,054
317,531
555,682
7,534,260
667,679
2,170,293
2,085,740
275,477
525,864
43,371,717
61,119
200,871
(525,864)
(263,874)
$ 43,107,843
$ 8,865,765 $ 2,132,823 $ 13,298,831 $ 21,914,332 $ 16,815,810
1,268,580 2,054,122 (368,068) 6,869,745 3,433,129
$ 10,134,345 $ 4,186,945 $ 12,930,763 $ 28,784,077 $ 20,248,939
131
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 3
FUND BALANCES, GOVERNMENTAL FUNDS
LAST NINE FISCAL YEARS (')
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Page 1 of 2
2002 2003 2004 2005 2006
General Fund (GASB 54)
Nonspendable $ $ $ - $ $ -
Restricted
Committed
Assigned
Unassigned - - -
General Fund (Prior to GASB 54)
Reserved 12,700 613,000 557,690 557,690 13,250
Unreserved 3,380,158 6,247,054 8,533,639 8,408,104 8,693,215
Total general fund $ 3,392,858 $ 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 15,300 765,300 720,860 $ 705,560 -
Unreserved, reported in:
Special revenue funds 11,021,202 8,939,830 6,933,242 5,669,921 8,500,342
Debt service funds 389,322 809,012 1,107,362 1,305,239 1,075,347
Capital Projects funds 2,321,088 3,888,305 4,092,179 5,677,953 7,245,827
Total all other governmental funds $ 13,746,912 $ 14,402,447 $ 12,853,643 $ 13,358,673 $ 16,821,516
Note:
(1) Information available for 2002 -2010 only due to new accounting and
reporting standards beginning 2002 with GASB Statement No. 34.
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
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
■All Other
Governmental
General Fund
132
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
Page 2 of 2
2007 2008 2009 2010 2011
$ $ $ $ - $ 5,000
- 18,000
8,237,141
12,650 17,800 17,900 17,900
10,504,748 7,687,515 7,371,530 5,739,140
$ 10,517,398 $ 7,705,315 $ 7,389,430 $ 5,757,040 $ 8,260,141
$ - $ - $ - $ - $ -
- - 5,014,817
- - 402,306
- 11,127,221
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
133
CITY OF TUKWILA: 2011 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
2002 2003 2004 2005
Revenues
Taxes $ 28,156,041 $ 31,986,222 $ 34,148,173 $ 34,624,875
Licenses and Permits 822,810 785,823 808,821 1,002,683
Intergovernmental 16,689,193 15,005,227 6,306,463 5,672,810
Charges for Services 1,201,080 1,796,946 2,919,115 2,649,678
Fines and Forfeitures 338,484 245,585 147,137 116,737
Investment Income 859,765 222,460 356,625 638,196
Miscellaneous 489,806 1,066,247 993,386 1,000,775
Total Revenues 48,557,179 51,108,510 45,681,724 45,705,754
Expenditures
General Government 5,648,745 5,892,912 5,982,594
Public Safety 16,711,088 17,532,136 18,393,514
Physical Environment 1,228,774 1,509,946 883,914
Transportation 2,202,888 4,779,885 2,620,038
Economic Environment 2,974,513 3,429,674 3,461,092
Mental & Physical Health
Culture and Recreation 2,457,973 2,985,083 3,187,113
Debt Service
Principal 718,000 754,000 804,000
Interest 925,414 924,964 1,057,974
Bond Issuance Costs 112,363 -
Capital Outlay 17,306,146 15,636,782 8,057,070
Total Expenditures 50,173,541 53,557,745 44,447,309
Excess (Deficiency) of Revenues (1,616,362) (2,449,235) 1,232,411
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
Premium on General Obligation Debt
Premium on General Obligation Refunding Debt
Issuance Costs on General Obligation Refunding Debt
Payment to Refunded Bond Escrow Agent
Total Other Financing Sources (Uses)
1,706,973 5,513,212
(1,845,331) (5,288,570)
177,995
39,637
350,000
(900,000)
6,136,540
19,604,151
788,105
1,705,692
3,384,928
3,358,583
851,000
1,033,474
7,344,326
38,070,259
1,498,955
150,000
(1,305,000)
- 35,600
6,277,500
4,195,000
65,392
248,672
(4,439,240)
6,571,966 (550,000) (1,119,400)
4,122,731 $ 682,411 $ 379,555
Net Change in Fund Balances $ (1,576,725)
Ratio of Debt Service Expenditures 5.3%
To Total Non - Capital Expenditures
Note:
(a) All amounts are reported on the modified - accrual basis
Source:
Tukwila Finance Department
134
5.0% 5.4% 5.4%
CITY OF TUKWILA: 2011 CAFR
STATISTICAL SECTION
page 2 of 2
$ 37,801,814 $ 39,660,792 $ 37,412,569 $ 37,167,281 $ 37,267,918 $ 38,035,681
1,273,228 1,827,709 2,022,851 1,283,463 1,618,830 3,473,910
7,083,032 6,403,217 5,697,598 17,596,486 14,525,872 24,059,907
2,345,931 2,024,892 2,569,381 1,443,680 2,366,174 2,359,600
221,097 266,188 259,991 301,761 390,079 308,027
1,159,971 1,425,423 926,913 282,604 144,258 275,479
1,397,585 1,751,145 816,054 701,957 891,307 356,409
51,282,658 53,359,366 49,705,357 58,777,232 57,204,438 68,869,013
6,882,594 7,034,602 7,992,286 8,574,563 8,387,317 8,253,440
20,953,226 21,038,810 22,878,689 25,576,932 24,676,370 24,327,498
2,139,959 2,196,422 2,255,880 2,058,913 1,724,147 2,060,482
2,447,096 2,413,390 2,783,077 2,334,298 2,332,178 2,676,511
3,539,657 3,878,658 4,995,514 4,601,391 4,541,845 4,682,646
3,683 4,204 4,173 4,332 4,539 4,591
3,687,580 3,938,779 4,293,658 4,365,023 4,163,503 3,507,150
888,000 930,000 972,000 1,316,297 1,555,028 1,766,774
1,006,161 914,584 872,224 778,018 849,148 881,850
6,540,452 7,243,879 6,089,703 16,860,362 11,513,976 25,643,704
48,088,408 49,593,328 53,137,204 66,470,129 59,748,051 73,804,646
3,194,250 4,036,039 (3,431,846) (7,692,894) (2,543,613) (4,935,633)
2,143,581 2,266,349 2,515,982 3,865,744 2,461,806 11,001,619
(2,430,769) (1,131,666) (1,107,543) (2,234,444) (1,020,857) (10,061,205)
- - - - 110,509 15,468
296,451 100 53,592 1,014,608 27,308 21,406
- - - 6,935,000 5,055,688
- - 6,180,000 6,947,574
- - 112,151
483,599
(108,326)
- - (6,555,273) (6,880,397) (1,069,000) (5,055,688)
9,263 1,134,783 1,462,031 2,713,085 7,556,917 977,288
$ 3,203,513 $ 5,170,822 $ (1,969,815) $ (4,979,809) $ 5,013,304 $ (3,958,345)
4.8% 4.6% 4.1% 4.4% 5.2% 5.8%
135
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 5
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
■
neagyjill Property Sales & Use Utility(e) Excise Business ()therm Total Taxes
2002 $ 9,487,241 $ 15,494,343 $ - $ 2,406,132 $ 390,725 $ 377,600 $ 28,156,041
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
change 2002 -2011
Notes:
(a) Utility taxes enacted beginning in 2003 for electric, natural gas, cable and telephone utilities are assessed at rates of 6.0 %.
A utility fax 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 stormwafer utilities.
(b) "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
1 1 1 1 1 1
1 1 1 1 1 1 1 1 1
I I I I I I I I I
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
• Other
• Business Tax
• Excise Tax
• Utilty Tax
• Sales & Use Tax
• Property Tax
136
CITY OF TUKWILA: 2011 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
2002 $ 9,843,102 $ 9,526,236 96.78% $ 115,859 $ 9,642,095 97.96%
2003 10,136,315 9,924,909 97.91% 175,949 10,100,858 99.65%
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% 134,345 10,728,098 99.97%
2006 10,973,030 10,844,728 98.83% 127,017 10,971,745 99.99%
2007 11,177,532 10,994,127 98.36% 115,199 11,109,326 99.39%
2008 11,411,293 11,194,247 98.10% 132,633 11,326,880 99.26%
2009 12,283,193 12,017,213 97.83% 143,156 12,160,369 99.00%
2010 13,234,489 13,152,036 99.38% 8,305 13,160,341 99.44%
2011 13,385,080 13,225,338 98.81% 0 13,225,338 98.81%
Source:
King County Office of Finance
137
CITY OF TUKWILA: 2011 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
2002 $ 2,715,355,120 $ 604,479,409 $ 169,870,128 $ 3,489,704,657 $ 2.91064
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
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
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Public Utilities
id Personal Property
YI Real Property
138
CITY OF TUKWILA: 2011 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
King Port of Medical School Dist Flood Hospital
Fiscal Year General Levy Special Levy Total WA State County(e) Seattle _ Service #406 Control District #1 Total
2002 $ 2.91064 $2.91064 $2.89680 $ 1.34948 $0.25895 $ 0.24143 $ 4.85812 $ 0.04688 $ 0.09254 $12.65484
2003 3.10754 3.10754 2.75678 1.96799 0.25402 0.23717 5.05267 0.04669 0.09200 13.51486
2004 3.11712 3.11712 2.68951 1.91484 0.25321 0.23182 5.04535 0.04658 0.09039 13.38882
2005 3.03706 3.03706 2.49787 1.86293 0.23330 0.21982 5.01637 0.04482 0.59000 13.50217
2006 2.84033 2.84033 2.32535 1.75139 0.23158 0.20621 4.78874 0.04212 0.55652 12.74224
2007 2.56911 2.56911 2.13233 1.66106 0.22359 0.30000 4.73164 0.10000 0.50854 12.22627
2008 2.37324 2.37324 1.96268 1.51508 0.19700 0.27404 4.12360 0.09123 0.47141 11.00828
2009 2.66345 2.66345 2.22253 1.74587 0.21597 0.30000 3.89183 0.10514 0.53290 11.67769
2010 2.82566 2.82566 2.27990 1.90797 0.22366 0.30000 5.03380 0.10976 0.55753 13.23828
2011 2.95408 2.95408 2.42266 1.98580 0.22982 0.30000 5.44659 0.11616 0.50372 13.95883
Note:
r) Includes King County Library District tax.
Source:
King County Department of Assessments
$3.50000
$3.00000
$2.50000
$2.00000
$1.50000
$1.00000
$0.50000
$-
Direct Property Tax Rates
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
139
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 9
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Type of Business
2011 Assessed
Valuation
Percent of
2011 Total
Assessed
Value(a)
2002 Assessed
Valuation
Percent of
2002 Total
Assessed
Valueibl
Boeing Company
WEA Southcenter LLC
La Pianta LP /Segale Roperties
KIR Tukw ila 050 LLGKIMCO
E Property Tax Dept
Walton CWWA Eproperty Tax Incorporated (McBroy)
Boeing Employees Credit Union
Jorgensen Forge Corporation
Sterling Realty Organization
Sea -Tuk Warehouse LLC
Wig Properties LLC (JC Penney)
Federated Department Stores (Macys)
BRCP Riverview Flaza LLC
Puget Sound Energy /Gas - Bectric
Southcenter Corporate Square
Anne Arundel Apartments LLC (Group Health)
Koar - Seatac Partners LP (Embassy Suites)
Merrill Creek Holding LLC (Kenw orth Motors)
Harnish Group Incorporated
CHA Southcenter LLC (Doubletree Inn)
Low e's HM/ Incorporated
Qw est Corporation (US West Communications)
Hill Investment Company
AMB Institutional Alliance
Group Health Cooperative
MBK Northw est
Rreef America Reit II Corporation (Pacific Gulf)
TOTALS, 1
Airplane company
Department Stores
Commercial Roperties
Commercial Roperties
Commercial Properties
Investment Property
Credit Union
Steel Manufacturer
Commercial Properties
Food Distribution
Department Stores
Department Stores
Commercial Properties
Bectric /Gas Utility
Hair Loss Center
Apartments
Lodging
Truck Manufacturer
Truck Equipment
Lodging
Home Improvement
Telephone Utility
Commercial Properties
Commercial Properties
Healthcare Admiin
Commercial Properties
Commercial Properties
$ 458,280,291
295,868,612
152,244,367
77,505,900
65,994,500
58,335,900
39,493,834
37,422,406
35,128,100
34,558,400
31,303,052
29,559,500
26,154,200
25,413,084
24,897,400
23,604,800
21,684,248
20,112,600
16,939,386
15,582,600
13,515,521
11,094,861
6,914,900
9.80%
6.33%
3.26%
1.66%
1.41%
1.25%
0.84%
0.80%
0.75%
0.74%
0.67%
0.63%
0.56%
0.54%
0.53%
0.50%
0.46%
0.43%
0.36%
0.33%
0.29%
0.24%
0.15%
0.00%
0.00%
0.00%
0.00%
$ 1,521,608,462
32.54%
Notes:
r) In 2011 the total assessed property value in the City of Tukwila was $4,675,629, 743.
tb) In 2002 the total assessed property value in the City of Tukwila was $3,489,704,657.
Source:
King County Department of Assessments
140
$ 477,839,583
132,881, 542
65,606,000
17,783,900
50,679,758
9,335,896
18,333,719
12,834,174
28,880,357
13.7%
3.8%
1.9%
0.5%
1.5%
0.3%
0.5%
0.4%
0.8%
22,189,987 0.6%
18,961,200
22,083,500
10,159,379
17,402,649
17,570,400
19,358,908
5,844,700
54,186,700
25,987,089
67,105,300
40,462,600
$ 1,135,487,341
0.5%
0.6%
0.3%
0.5%
0.5%
0.6%
0.2%
1.6%
0.9%
2.2%
1.3%
33.2%
CITY OF TUKWILA: 2011 CAFR
STATISTICAL SECTION
141
CITY OF TUKWILA: 2011 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 2002 2003 2004 2005(a)
Construction and Contracting $ 991,702 $ 1,119,595 $ 958,758 $ 676,427
Finance, Insurance & Real Estate 57,919 54,992 82,794 102,130
Manufacturing 563,919 520,474 446,965 503,778
Transportation, Communications & Utilities 350,258 377,596 387,148 384,703
Wholesale - Durable /Non - durable Goods 1,374,271 1,761,749 1,862,528 2,337,018
Retail Trade - General Merchandise 2,570,883 2,545,631 2,574,671 2,563,103
Retail Trade - Furniture /Home Furnishings 1,815,168 2,304,037 2,405,967 2,342,553
Retail Trade - Miscellaneous 2,044,562 1,723,147 1,735,045 1,497,474
Retail Trade - Clothing & Accessories 1,175,074 1,197,591 1,247,109 1,636,183
Retail Trade - Restaurants 887,103 933,886 1,031,625 1,072,275
Retail Trade - Automotive /Gas 768,664 847,864 982,413 980,006
Retail Trade - Building Materials 712,723 763,013 850,109 815,379
Service Industries - Business 824,497 530,833 488,857 979,752
Service Industries - Hotels 357,940 361,789 355,514 406,547
Service Industries - Other 373,911 507,935 486,215 278,041
All Other Categories 296,953 292,827 288,169 188,540
Total Retail Sales Tax Collections $ 15,165,547 $ 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.
142
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
page 2 of 2
2006 2007 2008 2009 2010 2011
$ 1,166,088 $ 2,018,058 $ 1,967,785 $ 869,640 $ 917,250 $ 1,390,952
93,747 121,879 118,780 119,121 99,975 115,123
450,138 590,455 375,263 246,429 387,234 232,737
436,260 483,419 492,960 440,206 441,822 405,197
2,048,517 2,457,437 1,760,449 1,436,045 1,346,750 1,119,527
2,667,481 2,571,601 2,231,745 2,072,356 2,068,263 2,003,947
2,531,049 2,399,347 1,830,576 1,304,234 1,380,407 1,771,083
1,642, 722 1,766,853 1,718,898 1,473,496 1,521,741 1,626,452
1,704,213 1,838,646 2,103,630 2,017,904 2,018,304 2,037,554
1,119, 859 1,158,424 1,312,603 1,292,252 1,342,964 1,337,067
1,053,184 1,026,778 1,066,183 748,482 664,310 670,806
855,243 777,870 619,657 589,341 499,383 487,620
1,141,632 1,198,690 1,129,380 868,260 882,012 932,422
453,376 531,836 548,962 453,657 428,450 459,606
278,777 294,869 318,696 283,319 215,045 202,217
205,644 179,421 185,312 208,467 366,925 553,493
$ 17,847,930 $ 19,415,583 $ 17,780,879 $ 14,423,209 $ 14,580,835 $ 15,345,801
143
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 11
SALES TAX RATE DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
2002 2003 2004 2005 2006 2007( 0 2008 Id) 2009 (e) 2010 I 2011
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% 0.15% 0.25% 0.25% 0.25% 0.25%
Regional Transit Authority 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.90% 0.90% 0.90%
Metro 0.80% 0.80% 0.80% 0.80% 0.80% 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% 8.80% 8.90% 9.00% 9.50% 9.50% 9.50%
SPECIAL SALES TAX RATES
Restaurants 0)
Motor Vehicles (b)
0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
0.00% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%
Notes:
King County Food & Beverage tax is in addition to the combined sales tax rate for restaurants, taverns and bars.
The funds are used to finance the professional baseball stadium in Seattle.
* NOTE: This tax expired on October 1, 2011 as taxes imposed to pay the construction bonds for the Seattle baseball stadium expired.
(5) 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.
(d) 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.
(e 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.
144
CITY OF TUKWILA: 2011 CAFR
STATISTICAL SECTION
145
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 12
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Page 1 of 2
2002(a) 2003 2004 2005 2006
GOV ERNM ENTAL ACTIVITIES
General Obligation Bonds (d)
Special Assessments
Leases
Total Governmental Activities
$ 15,847,000 $ 21,628,591 $ 20,806,553 $ 19,775,262 $ 18,881,798
15,847,000 21,628,591 20,806,553 19,775,262 18,881,798
BUSINESS -TYPE ACTIVITIES
General Obligation Bonds - 5,772,500 5,382,500 4,972,500 4,547,500
Revenue Bonds 4,568,782 4,168,910 3,710,438 3,143,360 5,824,452
Public Works Trust Fund Loans 573,234 1,032,364 2,924,739 4,911,253 9,781,151
Leases - - - 108,818 77,947
Total Business -Type Activities 5,142,016 10,973,774 12,017,677 13,135,931 20,231,050
TOTAL PRIMARY GOVERNMENT(b) $ 20,989,016 $ 32,602,365 $ 32,824,230 $ 32,911,193 $ 39,112,848
Population (c) 17,270 17,270 17,240 17,110 17,930
Per Capita Personal Income (c) $ 44,153 $ 44,704 $ 49,533 $ 48,789 $ 52,655
Percentage of Personal Income 2.77% 4.24% 3.87% 3.97% 4.16%
Debt Per Capita $ 1,225 $ 1,897 $ 1,915 $ 1,935 $ 2,193
Notes:
(a) For years 1999 through 2002, premiums and discounts were omitted on all bonds.
(b) Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements section.
(c) Reference SCHEDULE 17, Demographic Statistics, for population and personal income data.
"' Data not available at time of publication.
(d) Includes amounts Due to Other Governments.
Sources:
City of Tukw ila Finance Dept., Department of Community Development, and Office of the City Clerk.
$50,000,000
$40, 000,000
$30,000,000
$20,000,000
$10,000,000
$-
Total Debt
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
146
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
Page 2 of 2
2007 2008 2009 2010 2011
$ 17,946,335 $ 17,261,348 $ 22,453,003 $ 26,763,975 $ 28,006,800
- - 40,184 35,891
17,946,335 17,261,348 22,453,003 26,804,159 28,042,691
4,102,500 3,642,500 3,423,797 3,238,825 -
5,470,162 5,112,231 4,790,000 4,395,000 3,980,000
9,378,506 9,021,951 8,405,397 7,788,843 7,179,635
45,587 11,666 - -
18,996,755 17,788,348 16,619,194 15,422,668 11,159,635
$ 36,943,090 $ 35,049,696 $ 39,072,197 $ 42,226,827 $ 39,202,326
18,000 18,080 18,170 19,107 19,107
$ 57,409 $ 58,141 $ 56,904 $ 44,271
3.58% 3.33% 3.78% 4.99%
$ 2,052 $ 1,939 $ 2,150 $ 2,210 $ 2,052
147
CITY OF TUKWILA: 2011 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('> Revenues(» Debt Value Capita
2002 17,270 $ 3,489,704,657 $ 15,847,000 $ 389,322 $ - $ 15,457,678 0.44% $ 895
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
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
Tukw ila Finance Department
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
Net Bonded Debt
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
148
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 14
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
AS OF DECEMBER 31, 2011
Jurisdiction
Net General Percentage Estimated
Obligation Debt Applicable to Applicable to
Outstanding Tukw ila(1) Tukw ila
Direct:
City of Tukwila $ 30,975,925 100.00% $ 30,975,925
Overlapping:
King County 458,500,240 1.45% 6,648,253
King County Library 114,907,952 2.30% 2,642,883
Port of Seattle 336,120,000 1.45% 4,873,740
Tukw ila School District #406 24,890,451 90.04% 22,411,362
Hospital District #1 33,932,240 5.15% 1,747,510
Total Overlapping Debt: 968,350,883 38,323,749
Total Direct and Overlapping Debt: $ 999,326,808 $ 69,299,674
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.
$35,000,000
$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
0 King County Library
• Port of Seattle
■ Tukwila School District
0 Hospital District
149
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 15
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Page 1 of 2
2002
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
$ 261,727,848 $ 253,806,804 $ 258,084,264 $ 270,791,907 $ 296,095,014
15,457,678 26,358,988 24,866,638 23,407,761 24,494,996
$ 246,270,170 $ 227,447,816 $ 233,217,626 $ 247,384,146 $ 271,600,018
Assessed Value as of December 31, 2011
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
5.91%
10.39%
$ 4,752,606,030
356,445,452
28,006,800
3,005,016
31,011,816
(1,307,821)
29,703,995
$ 326,741,457
Legal debt margin
Source:
Tukw ila Finance Department
150
9.64%
8.64%
8.27%
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
Page 2 of 2
2007 2008 2009 2010 2011
$ 333, 768, 277 $ 388,178, 248 $ 373, 048, 810 $ 360, 711, 509 $ 356,445,452
23,188,240 21,881,765 28,291,920 32,919,123 29,703,995
$ 310,580,037 $ 366,296,483 $ 344,756,890 $ 327,792,386 $ 326,741,457
6.95%
5.64% 7.58%
151
9.13% 8.33%
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 16A
REVENUE BOND COVERAGE - WATER AND SEWER BONDS
LAST TEN FISCAL YEARS
Net Revenue
Fiscal Gross Operating Available for Debt Average Annual Debt Service Requirements Times
Year Revenueea) Expenses(b) Service Principal Interest Total Coverageec)
2002 $ 7,108,468 $ 5,808,561 $ 1,299,907 $ 358,214 $ 139,047 $ 497,261 2.61
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
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
10.00
8.00
Coverage 6.00
Ratio
4.00
2.00
Water and Sewer Revenue Bonds
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
152
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 16B
REVENUE BOND COVERAGE - SURFACE WATER BONDS
LAST SIX FISCAL YEARS
Net Revenue
Fiscal Gross Operating Available for Debt Average Annual Debt Service Requirements Times
Year Revenueea) Expenses(b) Service Principal Interest Total Coverage)
2006 $2,434,657 $ 1,185,799 $ 1,248,858 $ 18,171 $ 9,501 $ 27,672
2007 2,393,067 1,335,256 1,057,811 19,080 9,976 29,056
2008 2,765,320 1,133,871 1,631,449 19,453 9,614 29,067
2009 2,672,554 1,670,565 1,001,989 19,800 9,263 29,063
2010 3,141,153 1,833,245 1,307,908 20,153 8,902 29,055
2011 3,493,373 1,813,223 1,680,150 20,513 8,530 29,043
45.13
36.41
56.13
34.48
45.01
57.85
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 Surface Water revenue bonds.
No revenue bond coverage for surface water bonds prior to 2006.
Source:
Tukw ila Finance Department
Coverage
Ratio
100.00
80.00
60.00
40.00
20.00
Surface Water Revenue Bonds
2006 2007 2008 2009 2010 2011
153
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 17
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Per Capita Number of Number of Tukw ila School
Fiscal Personal Personal Single - Family Multi - Family District Unemployment
Year Population Income (a) Income (b) Homes Units Enrollment Rate (°)
2002 17,270 $ 44,153 $ 762,522 3,433 4,196 2,474
2003 17,270 44,704 772,038 3,468 4,196 2,568
2004 17,240 49,533 853,949 3,732 4,107 2,628
2005 17,110 48,789 834,780 3,791 4,107 2,650
2006 17,930 52,655 944,104 3,838 4,107 2,698
2007 18,000 57,409 1,033,362 3,864 4,107 2,862
2008 18,080 58,141 1,051,189 3,884 4,107 2,769
2009 18,170 56,904 1,033,946 3,885 4,107 2,795
2010 19,107 44,271 845,886 3,892 4,107 2,907
2011 19,107 "' ' *` 3,894 4,094 2,870
8.3%
8.4%
7.0%
6.4%
5.7%
5.0%
5.9%
10.9%
11.7%
7.6%
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
Washington State Employment Security Department
Tukw ila School District #406
US Bureau of Economic Analysis
Unemployment Rate
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
-
i 1 1 1 1
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
154
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 18
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Name of Company /Employer
Product or Business
2011 Full & Percentage of
Part -Time Total City
Employment Employees
2002 Full &
Part -Time
Employment
Percentage of
Total City
Employees
Boeing Company
Group Health Cooperative
Costco Wholesale
King County Metro
Carlisle Interconnect Technologies
Boeing Employees Credit Union
J.C. Penney
Macy's
United Parcel Service
Red Dot Corporation
Airplane company
Data Ctr /Lab /Pharmacy /Mfg.
Cash /carry Warehouse
Transit operating base
Wire /Cable Connectors
Banking /Credit Union
Department Store
Department Store
Postal Delivery Service
Heater /air conditioning equipment
6,544
1,940
675
664
600
466
350
327
294
286
16.29%
4.83%
1.68%
1.65%
1.49%
1.16%
0.87%
0.81%
0.73%
0.71%
6,882
2,100
352
700
793
400
381
320
246
Sub -total - Major Employers
12,146
12,174
All Other Employment
TOTAL EMPLOYMENT
Source:
28,037
26,697
40,183
38,871
Tukw ila Finance Department - Business Licenses
155
17.70%
5.40%
0.91%
1.80%
0.00%
2.04%
1.03%
0.98%
0.82%
0.63%
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 19
STAFFING LEVELS BY DEPARTMENT
LAST TEN FISCAL YEARS
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
DEPARTM ENT
Administrative Services (a ) 21.75 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) 10.50 9.50 11.50 11.00 11.00 12.00 11.00 16.00 17.00 15.75
Human Resources (a) - - 4.00 4.00 4.00
Finance 12.00 12.00 13.00 12.00 11.00 11.00 12.00 12.00 13.00 11.00
Recreation 17.75 20.50 20.25 22.00 22.50 23.50 23.50 22.50 20.75 16.25
Community Development 19.88 20.88 19.88 20.88 20.88 20.25 24.25 24.25 23.00 22.63
Court (e ) - - 9.75 8.75 8.75
Police 86.50 81.50 78.00 81.00 83.00 80.00 83.00 82.00 80.00 83.00
Fire 64.00 64.00 63.00 67.00 65.00 66.00 64.00 63.00 65.00 66.00
Information Technology (a) - - - 7.00 8.00 8.00 8.00
Public Works 37.00 35.00 35.00 35.00 34.00 32.00 33.00 32.00 30.00 30.00
Parks 8.50 9.50 9.50 10.50 10.25 7.50 7.50 7.50 7.50 7.50
Street 9.00 10.00 11.00 11.00 10.00 11.00 12.00 12.00 11.00 12.00
Water 6.00 5.00 5.00 6.00 7.00 7.00 7.00 7.00 7.00 7.00
Sewer 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 1.00 2.00
Golf 9.50 9.50 9.50 9.50 9.25 9.25 9.75 9.75 10.00 9.25
Surface Water 5.00 5.00 5.00 7.00 7.00 7.00 8.00 8.00 7.00 8.00
Equipment Rental 4.00 4.00 4.00 4.00 5.00 4.00 5.00 5.00 5.00 5.00
321.38 318.13 316.38 329.63 329.63 327.25 335.75 331.75 325.00 323.13
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.
(b) The department of City Clerk began reporting to the Mayor's department in 2009.
Sources:
Tukw ila Finance Department
Public Works
Information Technology
Fire
Staffing Levels by Department
Surface Water
Golf
Sewer
Water
Street
Parks
Equipment Rental
1 Council Mayor Human Resources
Finance
Recreation
Community
Development
Court
Police
156
CITY OF TUKWILA: 2011 CAFR
STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 20
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2006 2007 2008 2009 2010 2011
FUNCTION
Police
Number of Calls for Service
Fire
Number of Responses
Total Fire Loss
Total Inspections
30,106 31,000 30,032 32,922 33,686 33,985 35,816 33,095 32,889 30,272
4,100 4,250 4,229 4,710 4,921 4,673 4,824 4,654 4,574 4,649
$485,765 $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
4,516 5,549 5,855 5,482 4,705 4,845 6,787 6,787 0) 1,550 lb) 1,360
Parks and Recreation
Gass Participants 61,000 61,000 64,000 64,000 64,000 98,087 109,273 103,603 85,693 64,049
Community Ctr Admissions 35,500 30,800 35,150 33,750 34,850 90,141 117,533 134,183 134,275 115,728
Rounds of Golf Rayed 57,490 10 35,764 53,070 54,449 55,195 55,446 53,565 53,800 50,445 45,947
Pool Attendance 42,917 59,996 72,778 72,963 57,624 59,077 80,727 101,128 66,213
Street
Mles 77 79 79 79 79 79 79 79 79 79
Hours Maintaining 13,425 14,587 13,706 15,243 16,970 17,540 19,840 22,140 20,360 20,360
Signalized Intersections 59 61 61 61 61 63 63 59 59 59
Hours Maintaining 6,388 6,855 6,445 9,054 7,642 7,540 7,540 6,700 6,925 6,925
Water Utility Services
Total Customers 2,027 2,079 2,107 2,164 2,117 2,113 2,109 2,112 2,100 2,109
Total Gallons/Water(in
thousands) 683,065 702,364 765,000 886,000 789,981 680,649 660,915 731,469 630,755 625,976
Sanitary Sewer
Total Customers 1,622 1,671 1,698 1,710 1,720 1,718 1,684 1,694 1,699 1,710
Surface Water
Total Customers
5,019 5,015 5,064 5,100 5,107 5,156 5,164 5,204 5,207 5,207
Licenses
Business Licenses 2,247 2,262 2,292 2,286 2,354 2,350 2,523 2,422 2,454 2,611
Amusement Licenses 18 22 22 19 21 22 22 24 23 18
Permits
Building Permits 401 353 364 430 422 425 423 265 290 389
Mechanical Permits 238 183 182 193 239 238 256 159 160 180
Bectrical Forrrits N/A WA N/A WA WA 758 1,533 821 955 1,158
Rurrbing Permits WA WA WA WA 192 306 264 145 163 187
Public Works Permits 114 83 97 112 144 136 154 131 138 106
Libraries
Number of Libraries 2 2 3 3 3 3 3 3 2 2
Total Circulation 143,150 121,468 215,115 215,115 320,794 306,001 303,665 318,991 327,004 333,451
Notes:
1el 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.
Information not available.
Pool facilities acquired from King County in 2003.
Sources:
Tukwila Departments, King County Library System
157
CITY OF TUKWILA: 2011 CAFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 21
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
FUNCTION
General Government
Total City Area (Square Miles)
Public Safety
Police:
Number of Vehicle Units
8.6 8.6 8.6 8.6 8.6 8.6 8.6 9.7 9.7 9.7
63 59 63 64 64 64 67 70 76 84
Fire:
Number of Fire Stations 4 4 4 4 4 4 4 4 4 4
Number of Engines /Rescue Trucks /Ladders 8 8 8 8 9 9 9 9 8 7
Number of Medical Aid Vehicles 2 2 2 2 2 2 2 2 2 1
Number of Hazardous Materials Trailer Units WA WA WA 1 1 2 2 2 2 2
Transportation
Paved Streets (lane miles) 163 163 163 163 163 163 163 178 178 178
Sidewalks (miles) 54 54 54 54 54 54 54 56 56 56
Number of Traffic Signals 55 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 1,180 1,335 1,335
Number of Streetlights Ow ned by Puget Sound Energy 670 670 670 670 670 670 670 696 696 623
Culture and Recreation
Parks Acreage(') 143 158 158 158 161 160 162 162 162 162
Number of Parks 13 15 15 15 16 18 18 18 18 18
Golf Course Acreage 67 67 67 67 67 67 67 67 67 67
Maintained Trails (miles) 11 11 11 11 11 11 11 15 15 15
Number of Playgrounds 11 13 13 13 13 13 13 11 11 11
Swimming Pool WA 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 2 3 3 3 3 3 3 2 2
Water
Water Distribution Mains (miles) 45 45 45 45 45 47 47 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 Tukwila) 509 513 527 533 537 555 572 541 542 554
Vehicles 6 7 6 7 7 8 8 8 8 8
Sewer
Sanitary Sewers (miles) 33 33 33 33 33 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 3 5 5 6 6 6 6
Surface Water
Storm Drains (miles) b) 57 58 59 60 62 67 67 69 69 70
Vehicles 4 4 5 5 4 4 4 4 4 4
Notes:
r') 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.
Sources:
Various Departments -Tukw ila
158