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2007 Comprehensive Annual Financial Report (CAFR)
The City of Tukwila, Washington COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2007 Prepared by the City of Tukwila Finance Department JIM HAGGERTON, MAYOR TUKWILA CITY COUNCIL Joe Duffle, President Dennis Robertson Joan Hernandez De'Sean Quinn Kathy Hougardy Verna Griffin Pam Linder 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2007 TABLE OF CONTENTS I INTRODUCTORY SECTION Table of Contents PAGE Table of Contents i Letter of Transmittal 1 GFOA Certificate of Achievement 5 Administrative Organization Structure, Principal Officials, and Council Committees 7 IL FINANCIAL SECTION Auditor's Opinion 9 Management's Discussion and Analysis 11 Basic Financial Statements Government -wide Financial Statements Statement of Net Assets 23 Statement of Activities 24 Fund Financial Statements Balance Sheet — Governmental Funds 26 Statement of Revenues, Expenditures, and Changes in Fund Balances --- Governmental Funds 28 Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget (GAAP Basis) and Actual General Fund 30 Arterial Street 31 Statement of Net Assets — Proprietary Funds 32 Statement of Revenues, Expenses, and Changes in Fund Net Assets — Proprietary Funds 33 Statement of Cash Flows — Proprietary Funds 34 Statement of Fiduciary Net Assets — Fiduciary Fund — Firemen's Pension Trust Fund 35 Statement of Changes in Fiduciary Net Assets — Fiduciary Fund — Firemen's Pension Trust Fund 36 Notes to the Financial Statements 38 Required Supplementary Information Firemen's Pension Trust Fund 70 Notes to the Required Supplementary Information -- Firemen's Pension Trust Fund 71 Combining and Individual Fund Statements and Schedules Combining Statements — All Non -major Governmental Funds Fund Descriptions 75 Combining Balance Sheet 76 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 77 City of Tukwila Table of Contents Combining Statements — Special Revenue Funds Fund Descriptions 79 Combining Balance Sheet 80 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 81 Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget (GAAP Basis) and Actual Hotel /Motel Tax 82 Street Fund 83 Contingency Fund 84 Fire Equipment Cumulative Reserve Fund 85 Combining Statements — Debt Service Funds Fund Descriptions 87 Combining Balance Sheet 88 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 89 Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget (GAAP Basis) and Actual Limited Tax G.O. Bonds, 1999 90 Limited Tax G.O. Bonds, 2000 91 Limited Tax G.O. Bonds, 2003 92 Limited Tax G.O. Refunding Bonds, 2003 93 Combining Statements — Capital Projects Funds Fund Descriptions 95 Combining Balance Sheet 96 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 97 Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget (GAAP Basis) and Actual Land Acquisition, Recreation and Park Development Fund 98 Facility Replacement Fund 99 General Government Improvements 100 Combining Statements — Internal Service Funds Fund Descriptions 101 Combining Statement of Net Assets 102 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 103 Combining Statement of Cash Flows 104 III. STATISTICAL SECTION Government -wide Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Information: Net Assets by Component Last Five Fiscal Years 107 Changes in Net Assets — Last Five Fiscal Years 108 Fund Balances of Governmental Funds 111 Changes in Fund Balances of Governmental Funds 112 General Governmental Tax Revenues by Source 114 Property Tax Levies and Collections 115 Assessed and Estimated Actual Value of Taxable Property 116 Property Tax Rates — Direct and Overlapping Governments 117 Principal Property Taxpayers 118 Retail Sales Tax Collections by Sector 119 Sales Tax Rate Direct and Overlapping Governments 120 Ratios of Outstanding Debt by Type 121 Ratios of General Bonded Debt Outstanding 122 Computation of Direct and Overlapping Debt 123 Legal Debt Margin information 124 Revenue Bond Coverage — Water and Sewer Bonds 125 -Il- 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Table of Contents Table 17 — Demographic Statistics 126 Table 18 - - Principal Employers 127 Table 19 — Full-Time Equivalent City Government Employees by Function 128 Table 20 — Operating Indicators by Function 129 Table 21 — Capital Assets by Function 130 City of Tukwila Table of Contents 1 1 City of Tukwila FINANCE DEPARTMENT 6200 Southcenter Boulevard Tukwila, Washington 98188 -2599 (206) 433 -1835 August 29, 2008 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 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Dear Mayor, Council Members, and Citizens: The City of Tukwila Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31, 2007 is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of my knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and agencies of the City. All disclosures necessary to enable the reader to gain an understanding of Tukwila's financial activities have been included. PROFILE OF THE GOVERNMENT The City of Tukwila is a noncharter optional code City, operating under Section 35A of the Revised Code of Washington. It has a strong mayor form of government with a seven - member City Council elected by the voters of the City. Councilmembers are elected at large rather than by district, are responsible for establishing the general guidelines and policies for the City, and each serves a four - year term. The mayor appoints the City Administrator as the City's chief administrative officer responsible for carrying out the policies and direction set by the mayor and 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 and a utility. The City operates its own municipal 18 -hole golf course. The utility provides sewer, water, and storm & 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 17,930; however, the daytime shopper /visitor and working population can reach over 100,000 during the holiday shopping season. -1- City of Tukwila Letter of Transmittal FACTORS AFFECTING FINANCIAL CONDITION Local Economy A diverse regional economy is led by the Boeing Airplane 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 I -5 and I -405 interchange) and planned multi -modal transit center and commuter light rail, reinforces the well- established advantages of Tukwila as a business location. These major transportation systems and strategic access to Seattle, Tacoma, Sea -Tac Airport and the population base of the south Puget Sound region provide a natural setting for commercial and industrial activity. Tukwila enjoys one of the largest -sales tax bases in the State of Washington, with $18.9 million in revenue for 2007. The total combined retail sales activity amounted to approximately $2.95 billion in 2007. At the center of this strength is the Westfield Shoppingtown Southcenter 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 $4.45 billion as well as our above - mentioned sales tax base, and has allowed the City to pursue an aggressive capital improvement program. Long -term Financial Planning The City adopts a new six -year financial planning model each year. This model includes the current year budget and five future years. This model includes all government operations including the six -year capital plan. There is a separate section for the General Government and the Business Activities. This model, which is updated each year, provides a long -term look at the City's ability to complete its mission and capital plan. New revenue generation and new program development is overlaid on the model to determine fiscal impacts. Cash Management and Investments The City operates an aggressive cash management program, investing all surpluses as determined by anticipated cash flow needs. Investment decisions are based on established investment policies, analysis of liquidity requirements, safety assurances and yield. The City's portfolio has included U.S. Government Securities, Bankers Acceptances, and time deposits with maturities ranging from twenty -nine days to three years during 2007. -2- 2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT Letter of Transmittal Also, the Washington State Treasurer has oversight responsibility for an investment pool for use by any city, county, town, municipal corporation, or special taxing district within the state. Municipalities determine the amount and length of investment based on individual cash flow needs. Interest is earned based on the pool's actual experience for the month, less an administrative fee. The interest rate earned by the pool has become a recognized benchmark for entities to measure their own portfolio performance. The City had $20,540,726 in the pool at year -end, and during the year this vehicle was used frequently for short -term investing. Risk Management It is the City's policy to self- insure for unemployment benefits as well as medical and dental costs. All buildings, equipment and vehicles are insured by carriers for coverage at replacement value. The City is a member of the Washington Cities Insurance Authority (WCIA) as of January 1, 1984. The WCIA is a municipal corporation and not a joint venture per the Washington State Auditor's Office. The pooling arrangement with 114 other entities provides the City's general liability, vehicle liability, false arrest, and errors and omissions coverage. (See Note 14 for a more expansive discussion). Pension and Other Post Employment Benefits All employees are covered by State of Washington pension systems, public safety employees by the Law Enforcement Officers and Fire Fighters system ( LEOFF), and non - public safety personnel by the Public Employees Retirement System (PERS). Also, there is a separate firemen's pension system for firefighters who retired prior to March 1, 1970. (See Note 8 Pension Plans for a more detailed review of these pension systems). Post retirement benefits are available currently to 39 LEOFF retirees. The total amount paid in 2007 was $542,868. (See Note 15 Other Post Employment Benefits for further information). Independent Audit State law requires an annual audit of all books of account, financial records and transactions by the State Auditor, who is an independently elected state official. The State Auditor has broad legal authority to inquire into all financial and legal compliance matters, and his audit opinion is considered to be at least equal in authority to that made by an independent certified public accounting firm. The audit is conducted under the Federal Government's Single Audit Act (as revised in 1996), and is conducted in conformance with generally accepted auditing standards. The financial statements of all City funds are included in this audit, and the City has been given an unqualified opinion for 2007. Please see the Auditor's Opinion directly following the divider entitled "Financial Section" in this document. - 3 - City of Tukwila Letter of Transmittal CERTIFICATE OF ACHIEVEMENT 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, 2006. This was the 20th 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. 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 data collection, document processing, layout and formatting 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 2007 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, Robert F. Noland Interim Finance Director cc: Office of the State Auditor 2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT Letter of Transmittal Certificate of Achievement for Excellence in Finaneial Reporting Presented to City of Tukwila Washington For its Comprehensive Annual Financial Report for the Fiscal Your Ended December 31, 2005 A Certificate of Achievement for Excellence. in Finnneinl Reporting is presented by. the Oovortmtent Vinnnoo Officers Associntion of the United Stntos ntid Canada to government units and public employee. retirement systems, whose comprehensive annual financial reports (CAFRH) achieve tho highest standards in government accounting and fiiutnoinl reporting; President Executive • Director City of Tukwila Letter of Transmittal IIi ,,. 11. 411 ND-.1111 45 qi oto lY 11:1:91,.t.rT!,1, tkel' 11' ,VI r V.:, .hInk IT;i1111",,, 41,NITI el iql, ill '414-h1Fil['' qq= „ 11 11 1i 0 0, r]igill'° - 6 - City of Tukwila Administrative Organization Structure, Principal Officials, and Council Committees ADMINISTRATIVE ORGANIZATION STRUCTURE AND PRINCIPAL OFFICIALS KIMBERLY WALDRON Municipal Court Judge JIM HAGGERTON Mayor RHONDA BERRY City Administrator CITY COUNCIL KENYON DISEND, PLLC City Attorney ROBERT NOLAND Finance Director VIKI JESSOP Administrative Services Director BRUCE FLETCHER Parks and Recreation Director DAVID HAYNES Police Chief JACK PACE Director, Community Development NICK OLNAS Fire Chief COUNCIL COMMITTEES FINANCE AND SAFETY COMMITTEE Dennis Robertson, Chairperson Pam Linder, Member Kathy Hougardy, Member COMMUNITY AFFAIRS AND PARKS Joan Hernandez, Chairperson Verna Griffin, Member De'Sean Quinn, Member JIM MORROW Public Works Director TRANSPORTATION Pam Linder, Chairperson Dennis Robertson, Member De'Sean Quinn, Member UTILITIES Verna Griffin, Chairperson Joan Hernandez, Member Kathy Hougardy, Member 7 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Introductory Section - 8 - Washington State Auditor Brian Sonntag INDEPENDENT AUDITOR'S REPORT August 28, 2008 Council City of Tukwila Tukwila, Washington We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Tukwila, King County, Washington, as of and for the year ended December 31, 2007, 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. 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, each major fund, and the aggregate remaining fund information of the City of Tukwila, King County, Washington, as of December 31, 2007, 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. The management's discussion and analysis on pages 11 through 21 and pension trust fund information on pages 70 through 71 are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary Information. However, we did not audit the information and express no opinion on it. 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 and Individual Fund Statements and Schedules on pages 75 through 104 is presented for purposes of additional analysis and is not a required part of the basic financial statements. This information has been subjected to auditing procedures applied in the audit of the basic financial statements and, in our opinion, 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 express no opinion on it. Sincerely, BRIAN SONNTAG, CGFM STATE AUDITOR Insurance Building, PO Box 40021 • Olympia, Washington 98504 -0021 • (360) 902 -0370 • (866) 902 -3900 • TDD Relay (800) 833 -6388 i.� FAX (360) 753 -0646 • http: /Iwww.sao.wa,gov City of Tukwila Auditor's Opinion 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Management's Discussion and Analysis CITY OF TUKWILA MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended December 31, 2007 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, 2007. 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 $220.6 million. A total of 78 percent or $172.1 million of total net assets is invested in capital assets such as streets, land, buildings, equipment, and other improvements. The remaining net assets of $48.4 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 $10.1 million in 2007. Government activities provided $8.9 million or 87.5 percent with the remainder being provided by the business -type activities. • As of the close of the current fiscal year, the City of Tukwila's governmental funds reported combined ending fund balances of $30,699,152 an increase of $5,171,171 in comparison with the prior year. Approximately 57.3 percent of this total amount, $17,588,189, is available for spending at the government's discretion (unreserved fund balance). • At the end of the current fiscal year, unreserved fund balance for the general fund was $6,740,398, or 17.2 percent of total general fund expenditures. • The City of Tukwila's total debt decreased by $1,963,494 (4.7 percent) during the current fiscal year. The key factor in this net decrease was due to the retirement of bond principal. 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 nonmajor funds presented in total in one column. City of Tukwila Management's Discussion and Analysis OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City of Tukwila's basic financial statements. The City of Tukwila's basic financial statements include three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. With the implementation of Governmental Accounting Standards Board (GASB) Statement No. 34 during the 2002 year, we have changed the presentation of the City's financial statements. The new focus is on both the City as a whole (government -wide) and the major individual funds. The dual perspectives allow the reader to address relevant questions, broaden a basis for comparison (year to year or government to government) and enhance the City's accountability. The GASB establishes reporting standards for state and local governments whereas the City's budget is the responsibility of City elected officials and officers. Government -wide Financial Statements The Government -wide Financial Statements are designed to provide readers with a broad overview of the City of Tukwila's finances, in a manner similar to a private sector business. The Statement of Net Assets presents information on all of the City of Tukwila's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Tukwila is improving or deteriorating. The Statement of Activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). The Statement of Activities is focused on both the gross and net cost of various activities (including governmental and business - type). This is intended to summarize and simplify the reader's analysis of the revenues and costs of various city activities and the degree to which activities are subsidized by general revenues. Both of the government -wide financial statements distinguish functions of the City of Tukwila that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Tukwila include general government, public safety, physical environment, transportation, economic environment, culture and recreation, and interest on long -term debt. The business -type activities of the City of Tukwila include the Water /Sewer Utility, Foster Golf Course, and Surface Water Utility. The Government -wide Financial Statements can be found on pages 23 — 25 of this report. - 12 - 2007 COMPREHENSIVE ANNUAL FINANCL4L REPORT Management's Discussion and Analysis Fund Financial Statements Traditional readers of governmental financial statements will find the Fund Financial Statements presentation familiar. However, the focus is now on major funds, rather than fund types. A fund is a grouping of related accounts used to maintain control over resources that are segregated for specific activities or objectives. The City of Tukwila, like other state and local governments, used fund accounting to ensure and demonstrate compliance with finance- related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for three major funds and an aggregate total for all nonmajor funds. The City's major governmental funds are the General Fund, Hotel /Motel Tax Fund, and the Arterial Street Fund. Individual fund data for each of the nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The Governmental Fund Financial Statements can be found on pages 26 — 32 of this report. Proprietary Funds. The City of Tukwila maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. Internal service funds represent an accounting device used to accumulate and allocate costs internally among the City of Tukwila's various functions. The City of Tukwila uses internal service funds to account for general services such as equipment rental and the City's self- insured medical plan. Because internal service funds predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. Proprietary fund financial statements provide the same type of information as the government - wide financial statements, but in greater detail. The internal service funds are combined for presentation purposes. Individual fund data for the City's nonmajor proprietary funds are provided in the form of combining statements elsewhere in this report. The Proprietary Fund Financial Statements can be found on pages 33 — 35 of this report. - 13 - City of Tukwila Management's Discussion and Analysis Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The Fiduciary Fund Financial Statements can be found on pages 36 — 37 of this report. 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 on pages 38 — 68 of this report. Other Required Information. In addition to this discussion and analysis, this report also presents required supplementary information on pension plan funding. Required supplementary information can be found on pages 69 - 72 of this report. The combining statements referred to earlier are presented immediately following the required supplementary information. Combining and individual fund statements can be found on pages 73 - 104 of this report. 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 $220,599,145 at December 31, 2007. The largest portion of the City's net assets (78 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 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. Current and Other Assets Capital Assets Total Assets Long -term Liabilities Outstanding Other Liabilities Total Liabilities City of Tukwila's Net Assets Governmental Business•Type Activities Activities Total 2007 2006 2007 2006 2007 2006 $ 42,770,035 $ 36,627,475 $ 12,800,899 $ 4,950,226 $ 55,570,934 $ 51,577,701 153,921,280 151,823,685 54,755,424 52,605,895 208,676,704 204,429,580 196,691,315 188,451,160 67,556,323 67,556,121 264,247,638 256,007,281 20,297,222 21,052,141 18,364,509 19,935,267 38,661,731 40,987,408 3,587,165 3,457,857 1,399,598 1,097,218 4,986,763 4,555,075 23,884,387 24,509,998 19,764,106 21,032,485 43,648,493 45,542,483 Net Assets: Invested In Capital Assets, Net of Related Debt 136,05.3,013 133,129,382 36,083,972 34,017,190 172,136,985 1 67,146,572 Restricted 1,233,234 1,305,239 441,074 435,995 1,674,308 1,741,234 Unrestricted 35,520,681 29,506,541 11,267,171 12,070,451 46 787,852 41,576,992 Total Net Assets $172,806,928 $163 941,162 $47,792,217 $46 523 636 $220,599,145 $210,464,798 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Management's Discussion and Analysis A portion of the City of Tukwila's net assets (0,8 percent) represents resources that are subject to constitutional or external restrictions on how they may be used. The remaining balance of unrestricted net assets of $46,787,852 (21.2 percent) may be used to meet the City's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of Tukwila is able to report positive balances in all categories of net assets, both for the government as a whole, as well as for its separate governmental and business -type activities. The same situation held true for the prior fiscal year. The decrease in the total long -term debt of $1,963,497 is comprised of the City utility funds' new Public Works Trust Fund loans of $209,803, and $1,389,553 of debt principal repayments (net of deferred amounts), and the net increase in compensated absence liability ($3,533). Net assets increased by $10,134,347 over 2006. The largest portion of this increase was the addition of $6,690,327 to plant, property, equipment, and infrastructure. The remainder of the increase in net assets reflects the net change in revenue and expenditure actuals. - 15 - City of Tukwila Management's Discussion and Analysis Governmental Activities. Governmental activities resulted in a net increase in the City of Tukwila's net assets of $8,865,765 accounting for 87.5 percent of the total growth in the City's net assets. Key elements of this increase are as follows: Revenues: Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions General Revenues: Property Taxes Retail Sales and Use Taxes Natural Gas Use Tax Hotel /Motel Taxes Utility Taxes Business Taxes Excise Taxes State Entitlements, Impact Fees, In -Lieu Taxes Investment Earnings Gain on Sale of Capital Assets Total Revenues Program Expenses Including Indirect Expenses: General Government Public Safety Physical Environment Transportation Economic Environment Mental & Physical Health Culture and Recreation Interest on Long -term Debt Water /Sewer Utility Foster Golf Course Surface Water Utility Total Expenses Increase (Decrease) in Net Assets Before Transfers Transfers Increase (Decrease) in Net Assets Net Assets - Beginning Balance Prior Period Adjustments Net Assets - Ending Balance City of Tukwila's Changes in Net Assets Governmental Activities Business -Type Activities Total 2007 2006 2007 2006 2007 2006 $ 5,271,753 1,692,766 3,746,743 11,302,099 19,355,869 344,748 583,232 3,666,079 2,236,675 4,127,360 217,600 1,727,879 13,652 54,286,455 7,456,335 21,726,932 2,764,373 5,310,247 3,890, 845 4,204 4,506,223 896,215 0 0 0 46,555,373 7,731,082 1,134,683 9,632,098 163,941,163 0 $172,806,928 $ 4,554,163 1,897,543 5,675,493 10,973,030 17,591,260 415,652 501,478 2,930,332 2,097,082 4,941,461 185,475 1,383,708 353,350 53,500,027 $ 11,753,622 0 347,416 $ 11,605,661 0 1,255,360 0 0 500,000 645,473 0 0 0 0 0 0 0 0 0 0 0 0 618,563 539,463 0 114,160 13,219,603 14,160,117 $17,025,375 1,692,766 4,094,159 11,302,099 19,855,869 344,748 583,232 3,666,079 2,236,675 4,127,360 217,600 2,346,442 13,652 67,506,056 7,402,398 21,839,070 2,734,592 5,335,214 3,600,158 3,683 4,234,889 981,573 0 0 0 46,131,577 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7,046,603 7,354,876 1,849,542 1,832,303 1,920,194 1,642,204 10, 816,339 10,829,383 7,456,335 21,726,932 2,764,373 5,310,247 3,890,845 4,204 4,506,223 896,215 7,046,603 1,849,542 1,920,194 57,371,712 7,402,450 2,403,263 122,652 (1,134,683) 7,491,102 1,268,580 156,450,061 44,184,984 0 0 $163,941,163 $ 45,453,564 3,330,734 10,134,344 1,250,000 0 4,580,734 1 0,134,344 41,942,902 210,464,799 0 $ 46,523,636 $220,599,143 $16,159,824 1,897,543 6,930,853 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 67,660,144 7,402,398 21, 839,070 2,734,592 5,335,214 3,600,158 3,683 4,234,889 981,573 7,354,876 1,832,303 1,642,204 56,690,960 10,699,184 1,372,652 12,071,836 198,392,963 0 $210,464,799 As previously mentioned, the City's activities are divided between governmental and business - type. The majority of support for governmental activities comes from taxes and intergovernmental grants, while the business -type activities are supported primarily through user charges. 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Management's Discussion and Analysis Revenues by Source — Governmental Activities Other Taxes Business Taxes Excise Taxes 4% 8% Utility Taxes 7% Hotel /Motel Taxes 1% Investment Earnings 3% Gain on Sale of Capital Assets Charges for Services 0% 10% Operating Grants and Contributions 3% Capital Grants and Contributions 11% Natural Gas Use Tax 1% Retail Sales & Use Taxes 35% Property Taxes 21% Expenses and Program Revenues — Governmental Activities $ in 000's $24,000 $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000. $8,000 $6,000 $4,000 $2,000 $0 O Expenses ® Program Revenues General Public Safety Physical Transportation Economic Mental & Culture & Interest on Government Environment Development Physical Recreation Long -term Health Debt - 17 - City of Tukwila Management's Discussion and Analysis Business -type Activities. Business -type activities increased the City of Tukwila's net assets by $1,268,581, accounting for 12.5 percent of the total growth in the City's net assets. Key elements of this increase are as follows: • Net operating income of $1,551,030 and non - operating income of $504,817 account for $2,055,847 of the increase. • Capital contributions of $347,416 and net transfers -out of ($1,134,683) account for ($787,267) of the net change. Revenues by Source — Business -Type Activities Retail Sales and Use Taxes 4% Capital Grants and Contributions 3% Investment Earnings 5% Charges for Services 88% Expenses and Program Revenues — Business -Type Activities $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 ($ in 000's) p Expenses gt Program Revenues Water /Sewer Utility Foster Golf Course Surface Water Utility - 18 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Management's Discussion and Analysis FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted earlier, the City of Tukwila uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental Funds. As discussed earlier, the focus of the City of Tukwila's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Tukwila's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of Tukwila's governmental funds reported combined ending fund balances of $30,698,792. Approximately 87.7 percent of this total amount ($26,922,152) constitutes unreserved fund balance, which is available for spending at the government's discretion. The remaining 12.3 percent ($3,776,640) of fund balance is reserved to indicate that it is not available for new spending because it has already been committed to Imprest Funds and to protect cash liquidity. The General Fund is the primary operating fund of the City of Tukwila. At the end of the fiscal year, total fund balance for the General Fund equaled $10,517,038. Unreserved fund balance, the amount considered available to spend, totaled $6,740,398. Of the General Fund balance, $3,763,990, relates to certain accrued revenues and has been designated for unknown contingent liabilities. It is not considered available to spend. The fund balance of the City of Tukwila's General Fund increased by $1,810,573 during the current fiscal year. The fund balance of the Land Acquisition, Recreation, and Park Development Capital Project Fund increased by $448,809 due to delays in budgeted expenditures. The fund balance of the Arterial Street Fund increased by $2,100,587 due to delays in budgeted expenditures. Proprietary Funds. The City of Tukwila's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. GENERAL FUND BUDGETARY HIGHLIGHTS The General Fund original budget and the final amended budget totals did not change. There were no changes in appropriation required to sustain the City's operations. Actual General Fund revenues were over the budgeted amount by only 2.8% or $1,079,266. This immaterial variance is indicative of the strength of the City's comprehensive budget analysis and review. Actual expenditures were $39,232,572, which were $2,541,068 under the appropriated amount. The budget surplus was evenly distributed among General Fund activities. City of Tukwila Management's Discussion and Analysts CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets. The City of Tukwila's investment in capital assets for its governmental and business - type activities as of December 31, 2007, amounts to $213,207,995 (net of accumulated depreciation). This investment in capital assets includes land, buildings, system improvements, machinery and equipment, park facilities, roads, highways, and bridges. Major capital asset events during 2007 included the following: • Various repair and overlay projects to the City's arterial streets totaled $1.297 million. • The Traffic Signal Interconnect project amounted to $1.867 million. • Capitalization of sewer improvements to the Allentown- Foster Point project amounted to $7.5 million. • Capitalization of drainage improvements to the Cascade View project amounted to $3.2 million. • Capitalization of two new sewer lift stations amounted to $1.5 million. • Acquisition of land for parks and sewer lift stations amounted to $260,000. City of Tukwila's Capital Assets (net of depreciation) Governmental Business -Type Activities Activities Total 2007 Land $ 35,901,461 Buildings 15,495,904 Other Improvements 4,734,374 Machinery and Equipment 5,518,517 Infrastructure 81,653,216 Construction in Progress 10,617,808 Total $ 153,921,280 2006 $ 35,701,817 16,025,182 4,258,829 5,441,903 79,366,248 11,029,706 151,823,685 2007 $ 1,907,416 9,200,918 43,461,549 1,441,790 0 2,308,146 $ 58,319,819 2006 $ 1,847,416 7,401,482 30,560,906 1,152,783 0 11,643,308 $ 52,605,895 2007 $ 37,808,877 24,696,822 48,195, 923 6,960,307 81,653,216 12,925,954 $ 212,241,099 2006 $ 37,549,233 23,426,664 34,819,735 6,594,686 79,366,248 22,673,014 $ 204,429,580 Additional information on the City of Tukwila's capital assets can be found in Note 6 on pages 51 — 52 of this report. Long -term Debt. At the end of the current fiscal year, the City of Tukwila had total bonded debt outstanding of $27,550,000. Of this amount, $22,025,000 comprises debt backed by the full faith and credit of the government and the remainder of $5,525,000 of the City of Tukwila's debt represent bonds secured solely by specified revenue sources (Le., revenue bonds). City of Tukwila's Outstanding Debt General Obligation and Revenue Bonds Governmental Business -Type Activities Activities Total 2007 2006 2007 2006 2007 2006 General Obligation Bonds $ 17,922,500 $ 18,852,500 $ 4,102,500 $ 4,547,500 $ 22,025,000 $ 23,400,000 Revenue Bonds 0 0 5,525,000 5,860,000 5,525,000 5,860,000 Total $ 17,922,500 $ 18,852,500 $ 9,627,500 $ 10,407,500 $ 27,550,000 $ 29,260,000 The City of Tukwila's total long -term debt decreased by $1,710,000 (5.8 %) during the current fiscal year. The change in long -term debt is explained by redemption of bond principal of $1,71 0,000. 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Management's Discussion and Analysis Governmental Activities Long-Term Debt --- The City's 1999, 2000, 2003, and 2003 Refunding General Obligation Bond issues have been rated Aaa by Moody's Investor Service. Business -Type Activities Long-Term Debt — The City's 1993, 1995, and 2006 Revenue Bond issues have been rated Aaa by Moody's Investor Service. Additional information on the City of Tukwila's long -term debt can be found in Note 10 on pages 61 — 63 of this report. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES • The State's unemployment rate was 5.7 percent which is down 0.7 percent from 2005. • The area mall and other retail establishments are experiencing increasing revenues, and several new businesses have located in the City. • The King County housing market continues to surge forward. In 2006, the median price of a single- family home weighed in at $425,250 and amounted to a 5% increase in value over 2005. All of these factors were considered in preparing the budget for the 2008 Budget and Fiscal year. During the 2008 budget year, fund balance from 2007 will be used to balance the budget along with a fourth full year of the newly implemented utility tax on energy consumption and communications services. Also, there will be consideration for utility rate increases in the sewer and surface water utilities in order to finance capital needs. REQUESTS FOR INFORMATION This financial report is designed to provide our citizens, taxpayers, creditors, and investors with a general overview of the City of Tukwila's finances and to show the City's accountability for the money it receives. If you have any questions about this report or need additional financial information, contact the Finance Director, 6200 Southcenter Boulevard, Tukwila, Washington, 98188, (206) 433 -1800, or email at tukfin @ci.tukwila.wa.us. -21 - City of Tukwila Management's Discussion and Analysis City of Tukwila Government -wide Financial Statements Page 1 of 1 STATEMENT OF NET ASSETS December 31, 2007 GOVERNMENTAL BUSINESS -TYPE DESCRIPTION ACTIVITIES ACTIVITIES TOTAL ASSETS Cash and Cash Equivalents $ 22,404,548 $ 1,790,600 $ 24,195,148 Deposits with Fiscal Agent 0 0 0 Investments 11,754,975 8,586,081 20,341,056 Receivables: Taxes 4,285,093 68,542 4,353,635 Customer Accounts 157,432 921,538 1,078,970 Interest on Investments 119,972 52,683 172,655 Due From Other Governmental Units 821,797 45,663 867,460 Inventory of Materials and Supplies 596,700 499,341 1,096,041 Net Pension Asset 200,563 200,563 Investment in Joint Venture 2,428,955 0 2,428,955 Restricted Assets: Cash and Cash Equivalents 0 41,742 41,742 Investments 0 391,000 391,000 Notes Receivable 0 248,837 248,837 Deferred Charges 0 154,871 154,871 Land and Construction in Progress 46,519,269 4,215,562 50,734,831 Depreciable Capital Assets, Net 107,402,011 50,473,079 157,875,090 Plant Acquisition Adjustment (Net of Accumulated Amortization) 0 66,784 66,784 TOTAL ASSETS 196,691,315 67,556,323 264,247,638 LIABILITIES Accounts Payable 521,750 51,792 573,542 Accrued Wages and Benefits Payable 1,078,296 0 1,078,296 Due To Other Governmental Units 13,074 624,790 637,864 Accrued Interest Payable 72,609 134,676 207,285 Revenues Collected in Advance 101,143 0 101,143 Other Current Liabilities 1,407,964 167,779 1,575,743 Liabilities Payable from Restricted Assets: Revenue Bond Principal 0 360,000 360,000 Deposits 0 60,562 60,562 Unearned Revenue 392,329 0 392,329 Long-Term Liabilities Due Within One Year 1,037,464 460,000 1,497,464 Due in More Than One Year 19,259,758 17,904,509 37,164,267 TOTAL LIABILITIES 23,884,387 19,764,106 43,648,493 NET ASSETS Invested in Capital Assets, Net of Related Debt 136,053,013 36,083,972 172,136,985 Restricted for: Capital Projects 0 10,629 10,629 Debt Service 1,233,234 430,444 1,663,678 Unrestricted 35,520,681 11,267,171 46,787,852 TOTAL NET ASSETS $ 172,806,928 $ 47,792,217 $ 220,599,145 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT. - 23 - City of Tukwila Government -wide Financial Statements FUNCTIONS /PROGRAMS STATEMENT OF ACTMTIES For the Year Ended December 31, 2007 EXPENSES Page 1 of 2 CHARGES FOR SERVICES PROGRAM REVENUES OPERATING CAPITAL GRANTS GRANTS AND AND CONTRIBUTIONS CONTRIBUTIONS GOVERNMENTAL ACTIVITIES: General Government $ Public Safety Physical Environment Transportation Economic Development Mental and Physical Health Culture & Recreation Interest on Long -Term Debt TOTAL GOVERNMENTAL ACTIVITIES $ 7,456,335 21,726,932 2,764,373 5,310,247 3,890,845 4,204 4,506,223 896,215 46,555,373 $ 1,590,553 $ 425,241 25,341 133,500 2,319,634 0 777,484 0 $ 5,271,753 $ 30,505 $ 460,481 139 434,452 757,698 0 9,492 0 1,692,766 $ 0 29,980 0 3,022,387 0 0 694,375 0 3,746,743 BUSINESS -TYPE ACTIVITIES: Water /Sewer Utility Foster Golf Course Surface Water Utility TOTAL BUSINESS -TYPE ACTIVITIES $ 7,046,603 $ 8,272,647 $ 1,849,542 1,272,425 1,920,194 2,208,549 $ 10,816,338 $ 11,753,622 $ 0 $ 0 0 0 $ 341,126 0 6,290 347,416 General Revenues: Property Taxes Retail Sales and Use Taxes Natural Gas Use Tax Hotel /Motel Taxes Utility Taxes Business Taxes Excise Taxes State Entitlements Unrestricted Investment Earnings Gain on Sale of Capital Assets Transfers Total General Revenues and Transfers Change in Net Assets Net Assets Beginning of Year Net Assets End of Year THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT. - 24 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Page 2 of 2 Government -wide Financial Statements NET (EXPENSES) REVENUE AND CHANGES IN NET ASSETS GOVERNMENTAL BUSINESS -TYPE ACTIVITIES ACTIVITIES TOTAL $ (5,835,277) $ 0 $ (5,835,277) (20,811,230) 0 (20,811,230) (2,738,893) 0 (2,738,893) (1,719,907) 0 (1,719,907) (813,513) 0 (813,513) (4,204) 0 (4,204) (3,024,872) 0 (3,024,872) (896,215) 0 (896,215) $ (35,844,111) $ 0 $ (35,844,111) $ 0 $ 1,567,171 $ 1,567,171 0 (577,116) (577,116) 0 294,646 294,646 $ 0 $ 1,284,700 $ 1,284,700 $ 11,302,099 $ 0 $ 11,302,099 19,355,867 500,000 19,855,867 344,748 0 344,748 583,232 0 583,232 3,666,079 0 3,666,079 2,236,675 0 2,236,675 4,127,360 4,127,360 217,600 0 217,600 1,727,879 618,563 2,346,442 13,652 0 13,652 1,134,683 (1,134,683) 0 44,709,876 (16,120) 44,693,756 8,865,765 1,268,581 10,134,346 163,941,163 46,523,636 210,464,799 $ 172,806,928 $ 47,792,217 $ 220,599,145 City of Tukwila Fund Financial Statements Page 1 of 2 DESCRIPTION BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2007 OTHER GENERAL ARTERIAL GOVERNMENTAL FUND STREET FUNDS ASSETS Cash and Cash Equivalents $ 5,524,756 $ 6,162,260 $ 8,974,661 Deposit with Fiscal Agent/Trustee 0 0 Investments 3,465,024 2,151,072 1,934,745 Receivables: Taxes 3,386,463 458,646 443,483 Customer Accounts 153,932 0 0 Interest on Investments 49,261 35,280 12,793 Due From Other Governmental Units 134,221 385,380 302,555 TOTAL ASSETS $ 12,713,658 $ 9,192,638 $ 11,668,238 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable 24,266 494,167 3,317 Accrued Wages & Benefits 1,049,077 13,265 13,313 Due To Other Governmental Units 13,074 0 3,430 Revenues Collected in Advance 101,143 0 0 Other Current Liabilities 399,635 131,062 17,333 Deferred Revenues 609,065 0 3,235 Total Liabilities 2,196,260 638,495 40,628 Fund Balances: Reserved for: Imprest Funds 12,650 0 0 Loans Receivable 0 0 0 Unreserved, Designated for: Unknown Contingent Liabilities 3,763,990 0 0 Unreserved, Undesignated Reported in: General Fund 6,740,398 0 0 Special Revenue Funds 0 8,554,144 2,280,637 Debt Service Funds 0 0 1,233,234 Capital Projects Funds 0 0 8,113,739 Total Fund Balances 10,517,038 8,554,144 11,627,610 TOTAL LIABILITIES AND FUND BALANCES $ 12,713,298 $ 9,192,638 $ 11,668,238 THE ACCOMPANYING NOTES ARE ANINTEGR4L PART OF THIS STATEMENT. 26 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Page 2 of 2 TOTAL GOVERNMENTAL Fund Balances - Total Governmental Funds $ 30,698,792 FUNDS Fund Financial Statements RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS GOVERNMENTAL FUNDS December 31, 2007 Amounts reported for governmental activities in the statement of $ 20,661,678 net assets are different because: 0 The purchases method is used in Governmental Funds to account for 7,550,842 Materials and Supplies - Inventory amount outstanding. 4,288,593 Capital assets used in governmental activities are not financial 153,932 resources and therefore are not reported in the governmental funds. 97,334 Non - Depreciable Assets $ 46,519,269 822,157 Depreciable Assets (net) 104,722,016 $ 33,574,534 521,750 1,075,655 16,504 101,143 548,031 612,300 2,875,382 The net pension asset resulting from contributions in excess of the annual required contribution in 2007 are not financial resources and therefore is not reported in the funds. The City has an equity interest in a joint venture. This equity interest for the provision of governmental services is not a current financial resource and therefore is not reported in the funds. The focus of governmental funds is on short -term financing, assets are offset by deferred revenue and not included in fund balances. 12,650 Deferred Revenue 219,971 556,701 151,241,285 200,563 2,428,955 0 Long -term liabilities, including bonds payable, related accounts and interest 3,763,990 are not due and payable in the current period and therefore are not reported in the governmental funds. The details of these differences are as follows: 6,740,398 Long Term Liabilities due within one year $ (1,037,464) 10,834,780 Long Term Liabilities due in more than one year (19,259,758) 1,233,234 Accrued Interest Payable (72,609) 8,113,739 (20,369,831) 30,698,792 $ 33,574,174 Internal service funds are used by management to charge the costs of certain activities to internal service funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Assets. 7,830,492 Net Assets of Governmental Activities $ 172.806.928 - 27 - City of Tukwila Frond Financial Statements Page 1 of 2 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended December 31, 2007 DESCRIPTION OTHER ARTERIAL GOVERNMENTAL GENERAL FUND STREET FUNDS REVENUES Taxes $ 31,660,507 $ 3,801,862 $ 4,198,423 Licenses and Permits 1,827,709 0 0 Intergovernmental 2,562,870 2,154,763 1,682,569 Charges for Services 2,024,892 0 0 Fines and Forfeits 266,188 0 0 Investment Income 488,252 381,875 555,296 Miscellaneous 643,538 1,006,649 100,958 TOTAL REVENUES 39,473,956 7,345,149 6,537,245 EXPENDITURES Current: General Government 7,034,602 0 0 Public Safety 21,038,810 0 0 Physical Environment 1,946,806 0 249,616 Transportation 2,039,304 101,700 (630) Economic Environment 2,961,588 0 917,070 Mental & Physical Health 4,204 0 0 Culture and Recreation 3,938,779 0 0 Debt Service: Principal 0 0 930,000 Interest 0 0 914,584 Capital Outlay 268,479 4,616,123 2,359,277 TOTAL EXPENDITURES 39,232,572 4,717,823 5,369,917 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 241,384 2,627,326 1,167,329 OTHER FINANCING SOURCES (USES} Transfers In 1,966,349 0 300,000 Transfers (Out) (397,260) (526,739) (207,667) Sale of Capital Assets 100 0 0 TOTAL OTHER FINANCING SOURCES AND (USES) 1,569,189 (526,739) 92,333 Net Change in Fund Balances 1,810,573 2,100,587 1,259,661 Fund Balances Beginning of Year 8,706,465 6,453,557 10,367,959 FUND BALANCES END OF YEAR $ 10,517,038 $ 8,554,144 $ 11,627,620 THE ACCOMPANYING NOTES AREANINTEGRAL PART OF THIS STATEMENT. 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Page 2 of 2 TOTAL GOVERNMENTAL Net change in Fund Balances - total governmental funds $ 5,170,822 FUNDS Fund Financial Statements RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2007 Amounts reported for governmental activities in the statement of activities are $ 39,660,792 different because: 1,827,709 Government funds report capital outlays as expenditures. However, in the 6,400,202 statement of activities, the cost of capital assets is allocated over their 2,024,892 estimated useful lives as depreciation expense. In the current period, these 266,188 amounts are: 1,425,423 Capital Outlay $ 7,243,879 1,751,145 Donations of Capital Assets 53,356,351 Depreciation Expense (4,296,077) Excess of Capital Outlay and Donations Over Depreciation Expense 2,947,802 The net pension asset (negative net pension obligation) amortization amount 7,034,602 in 2006 is not a financial resource and therefore not reported in the funds. 40,398 21,038,810 2,196,422 Revenues in the statement of activities that do not provide current financial 2,140,374 resources are not reported as revenues in the funds. Change in investment 3,878,658 interest receivable due beyond the City's 60 day measurable and available period. 4,204 3,938,779 The City has an equity interest in a joint venture. This equity interest for the 930,000 provision of governmental services is not a current financial resource and 914,584 therefore is not reported in the funds. 71,116 7,243,879 49,320,312 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: 4,036,039 Bond Principal Retirement 930,000 Internal service funds are used by management to charge the costs of certain 2,266,349 activities to individual funds. The net revenue (expense) of the internal (1,131,666) service funds is reported with governmental activities. 164,118 100 Because some revenues will not be collected for several months after the City's 1,134,783 fiscal year ends, they are not considered "available" revenues in the government 5,170,822 funds. Deferred revenues decreased by this amount this year. 124,557 25,527,981 Some expenses reported in the statement of activities do not require the use of $ 30,698,802 current financial resources and therefore are not reported as expenditures in governmental funds. These activities consist of: Net Decrease in Materials and Supplies $ (408,300) Net Decrease in Accrued Interest 332 Increase in Compensated Absences (180,544) Amortization of Bond Discount and Deferred Charges (20,215) Amortization of bond premiums 25,679 Total Additional Expense (Increase) Decrease (583,048) Change in Net Assets of Governmental Activities $ 8,865,765 - 29 - City of Tukwila Fund Financial Statements GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL For the Year Ended December 31, 2007 DESCRIPTION BUDGETED AMOUNTS ORIGINAL FINAL ACTUAL AMOUNTS Page 1 of 1 Variance with Final Budget - Positive (Negative) REVENUES Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeits Investment Income Miscellaneous TOTAL REVENUES $ 30,662,940 1,172,000 3,300,000 2,414,850 165,500 200,000 479,400 38,394,690 $ 30,662,940 1,172,000 3,300,000 2,414,850 165,500 200,000 479,400 38,394,690 $ 31,660,507 $ 1,827,709 2,562,870 2,024,892 266,188 488,252 643,538 39,473,956 EXPENDITURES Current: General Government Public Safety Physical Environment Transportation Economic Environment Mental & Physical Health Culture and Recreation Debt Service: Interest Capital Outlay Capital Expenditures Infrastructure 7,203,206 21,606,200 2,270,049 2,423, 211 3,469,663 4,000 4,225,386 0 571 ,925 7,203,206 21,606,200 2,270,049 2,423,211 3,469,663 4,000 4,225,386 7,034,602 21,038,810 1,946, 806 2,039,304 2,961,588 4,204 3,938,779 0 0 571,925 268,479 TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers (In) Transfers (Out) Sale of Capital Assets TOTAL OTHER FINANCING SOURCES AND (USES) 41,773,640 Net Change in Fund Balance FUND BALANCE BEGINNING OF YEAR 41,773,640 39,232,572 (3,378,950) 2,130,753 (396,000) 5,000 1,739,753 (1,639,197) 7,723,881 (3,378,950) 241,384 2,130,753 1,966,349 (396,000) (397,260) 5,000 100 1,739,753 1,569,189 (1,639,197) 1,810,573 8,706,465 8,706,465 FUND BALANCE END OF YEAR $ 6,084,684 $ 7,067,268 $ 10,517,038 $ 997,567 655,709 (737,130) (389,958) 100,688 288,252 164,138 1,079,266 168,604 567,390 323,243 383,907 508,075 (204) 286,607 0 303,446 2,541,068 3,620,334 164,404 1,260 4,900 170,564 3,790,898 0 3,790,898 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT. - 30 - City of Tukwila Fund Financial Statements ARTERIAL STREET STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL For the Year Ended December 31, 2007 DESCRIPTION BUDGETED AMOUNTS ORIGINAL FINAL ACTUAL AMOUNTS Page 1 of 1 Variance with Final Budget - Positive (Negative) REVENUES Taxes Intergovernmental Investment Income Miscellaneous TOTAL REVENUES $ 3,375,000 $ 3,375,000 $ 3,801,862 $ 426,862 8,737,200 8,737,200 2,154,763 (6,582,437) 150,000 150,000 381,875 231,875 1,548, 000 1,548,000 1,006,649 (541,351) 13,810,200 13,810,200 7,345,149 (6,465,051) EXPENDITURES Current Transportation Capital Outlay TOTAL EXPENDITURES 3,979,570 3,979,570 13,3 64, 000 13,364,000 17,3 43,570 17, 343,570 101,700 4,616,123 4,717,823 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (3,533,370) (3,533,370) OTHER FINANCING SOURCES (USES) Transfers (Out) Sale of Capital Assets TOTAL OTHER FINANCING SOURCES AND (USES) (776,739) 0 (776,739) (776,739) 0 (776,739) 2,627,326 (526,739) 0 (526,739) 3,877,870 8,747,877 12,625,747 (19,090,798) 250,000 0 250,000 Net Change in Fund Balance FUND BALANCE BEGINNING OF YEAR (4,310,109) (4,310,109) 4,786,787 4,786,787 2,100,587 6,453,557 6,410,696 1,666,770 FUND BALANCE END OF YEAR $ 476,678 $ 476,678 $ 8,554,144 $ 8,077,466 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT. -31- City of Tukwila Fund Financial Statements DESCRIPTION ASSETS Current Assets: Cash and Cash Equivalents Investments Receivables: Taxes Customer Accounts Interest on Investments Due from Other Governmental Units Inventory of Materials and Suppiles Current Assets Restricted: Cash and Cash Equivalents Investments Total Current Assets Restricted PROPRIETARY FUNDS STATEMENT OF NET ASSETS December 31, 2007 BUSINESS -TYPE ACTIVITIES ENTERPRISE FUNDS FOSTER SURFACE WATER GOLF COURSE UTILITY WATER/SEWER UTILITY TOTAL Page 1 of 7 GOVERNMENTAL ACTIVITIES - INTERNAL SERVICE FUNDS $ 1,495,817 $ 5,570,192 0 667,985 38,619 0 220,435 2,298 0 254,930 $ 248,806 68,542 173,840 1,661 0 225,546 0 0 39,854 $ 1,790,601 2,767,082 8,586,080 0 68,542 79,714 921,539 12,404 52,684 45,663 45,663 53,360 499,341 2,298 0 0 2,298 0 0 0 2,298 $ 1,171,869 4,775,134 0 0 22,639 0 40,000 0 0 0 Total Current Assets Noncurrent Assets: Noncurrent Restricted Assets: Cash and Cash Equivalents Investments Total Noncurrent Restricted Assets Notes Receivable Deferred Charges Capital Assets: Land Buildings and Structure Other Improvements Machinery and Equipment Construction in Progress Less: Accumulated Depreciation Total Capital Assets (Net of Accumulated Depreciation) Plant Acquisition Adjustment f Net of Accumulated Amortization) Total Noncurrent Assets TOTAL ASSETS 7,995,346 973,325 2,547 391,000 393,547 248,837 65,528 156,872 3,606,095 29,613,841 2,132,705 1,322,334 (11,739,086) 0 0 0 0 78,713 2,998,077 11,966,748 1,609,575 5,974,884 4,031,818 197,310 0 (2,674,428) 36,897 0 36,897 0 10,629 140,969 909,455 27,479,461 48,247 985,812 (9,I07,223) 6,009,642 39,444 391,000 430,444 248,837 154,870 1,907,416 10,490,434 61,125,120 2,378,262 2,308,146 (23,520,737) 25,092,761 66,784 25,867,457 33,862,803 9,139,159 20,456,721 0 0 9,217,872 10,191,197 20,504,247 23,502,324 54,688,641 66,784 55,589,576 67,556,324 0 0 0 0 0 0 0 0 7,727,118 0 (5,047,123) 2,679,995 0 2,679,995 8,689,637 LIABILITIES Current Liabilities: Accounts Payable Due to Other Governmental Units Accrued Interest Payable General Obligation Bonds - Current Other Current Liabilities Current Liabilities Payable from Restricted Assets: Revenue Bond Principal Deposits Total Current Liabilities Payable from Restricted Assets Total Current Liabilities Noncurrent Liabilities: General Obligation Bonds Payable (Net of Unamortlzed Premiums) Revenue Bonds Payable (Net of Unamortlzed Premiums and Discounts) Compensated Absences Other Long -Term Liabilities Total Noncurrent Liabilities TOTAL LIABILITIES 10,189 272,588 116,129 0 32,719 346,800 2,298 41,603 0 0 460,000 113,233 0 58,264 0 352,202 18,547 0 21,826 13,200 0 51,792 624,790 134,676 460,000 167,778 360,000 60,562 0 0 0 0 859,145 0 0 349,098 58,264 13,200 420,562 0 780,723 673,100 405,775 1,859,598 859,145 NET ASSETS Invested in Capital Assets, Net of Related Debt Restricted for: Capital Projects Debt Service Unrestricted TOTAL NET ASSETS 0 3,671,873 4,872,577 0 0 0 76,431 85,856 4,318,039 32,360 9,267,047 3,790,089 10,047,770 4,463,189 15,620,873 5,148,435 0 0 393,547 0 7,800,612 579,573 $ 23,815,032 $ 5,728,008 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT: 0 363,083 0 48,613 4,435,677 4,847,373 5,253,148 3,671,873 5,235,660 0 210,900 8,786,076 17,904,509 0 0 0 0 0 19,764,107 15,314,664 10,629 36,897 2,886,985 $ 18,249,175 36,083,972 10,629 430,444 11,267,170 $ 47,792,215 859,145 4,380,407 0 0 3,450,086 $ 7,830,493 32 City of Tukwila Fund Financial Statements PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS For the Year Ended December 31, 2007 BUSINESS -TYPE ACTIVITIES ENTERPRISE FUNDS DESCRIPTION WATER/SEWER FOSTER UTILITY GOLF COURSE SURFACE WATER UTILITY TOTAL Page 1 of 1 GOVERNMENTAL ACTIVITIES - INTERNAL SERVICE FUNDS OPERATING REVENUES Charges for Services Other Operating Revenues TOTAL OPERATING REVENUES $ 8,168,646 6,741 8,175,387 $ 1,257,483 14,942 1,272,425 $ 2,206,211 $ 11,632,340 2,338 24,021 2,208,549 11,656,361 $ 6,875,987 1,355 6,877,342 OPERATING EXPENSES Operations and Maintenance Administrative and General Taxes Depreciation /Amortization TOTAL OPERATING EXPENSES 5,488,380 1,327,496 1,306,584 8,122,460 128,549 0 103 128,652 245,908 6,786 - 28,569 281,263 726,347 323,957 522,653 1,572,957 6,589,183 1,658,239 1,857,909 10,105,332 5,304,163 12,078 0 680,613 5,996,854 OPERATING INCOME (LOSS) NON - OPERATING REVENUE (EXPENSE) Taxes Investment Income Interest Expense Amortization of Debt Premium Amortization of Debt Discount Bond Issuance Costs Compensated Loss Gain (Loss) on Sale of Capital Assets TOTAL NON - OPERATING REVENUE (EXPENSES) 1,586,204 (385,814) 350,640 1,551,030 0 399,125 (360,491) 10,807 (6,919) (3,556) 0 0 38,966 500,000 0 34,920 184,518 (188,203) (62,158) 1,845 343 0 0 (4,945) (470) 0 0 0 0 343,618 122,234 500,000 618,563 (610,851) 12,996 (6,919) (8,971) 0 0 880,488 504,817 0 302,466 0 0 0 0 66,986 13,552 383,004 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS Capital Contributions Transfers In Transfers (Out) Change in Net Assets Total Net Assets - Beginning TOTAL NET ASSETS ENDING 1,625,170 (42,196) , 472,874 2,055,847 341,126 0 6,290 97,260 0 0 (911,789) (10,816) (309,338) 1,151,767 (53,012) 169,826 222663,265 5,781,020 18,079,351 23,815,032 $ 5,728,008 $ 1 81249,176 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT. 1,263,492 347,416 0 97,260 0 (1,231,943) - 1,131,299 1,268,580 132,193 46,523,636 7,698,301 47,792,216 $ 7,830,494 - 33 - City of Tukwila Fund Financial Statements Page 1 of 1 PROPRIETARY FUNDS STATEMENT OF CASH FLOWS For the Year Ended December 31, 2007 BUSINESS-TYPE ACTIVITIES GOVERNMENTAL ENTERPRISE FUNDS ACTIVITIES WATER/SEWER FOSTER SURFACE WATER INTERNAL SERVICE DESCRIPTION UTILITY GOLF COURSE UTILITY TOTAL FUNDS CASH FLOWS FROM OPERATING ACTIVITIES: Cash Received from Customers and Users $ 7,898,812 $ 1,719,392 $ 2,226,923 $ 11,845,127 $ 6,861,315 Receipts from Interfund Services Provided (1,047,315) (116,639) 0 (1,163,954) 0 Cash Payments to Suppliers (4,859,916) (474,863) (695,485) (6,030,264) (369,672) Cash Payments to Employees and Retirees (902,551) (879,000) (373,223) (2,154,774) (4,913,552) Cash Payments for Interfund Services Used 97,260 0 (252,700) [155,440) 1,113 Other Operating Receipts 7,515 0 0 7,515 0 NET CASH PROVIDED (USED( BY OPERATING ACTIVITIES 1,193,805 248,890 905,515 2,348,210 1,579,204 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Sales and Leasehold Excise Taxes Received 0 500,000 (7,368) 492,632 0 Principal Payments on Intergovernmental Loans 0 0 (1,474) (1,474) 0 Interest Payments on Intergovernmental Loans 0 0 0 0 0 Transfers to Other Funds (814,529) (10,816) (309,338) (1,134,683) {499,465) Transfers from Other Funds 0 0 0 0 87,241 NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES (814,529) 489,184 (318,180( (643,525) {412,224) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds from Intergovernmental Loans 211,200 0 209,803 421,003 0 Principal Payments on Intergovernmental Loans {272,588) 0 {344,225) (616,813) 0 Interest Payments on Intergovernmental Loans (80,497) 0 (52,258) (132,755) 0 Proceeds from Sales of Capital Assets 0 0 0 0 13,552 Acquisition and Construction of Capital Assets (2,920,743) (35,109) (997,189) (3,953,041) (797,303) Capital Debt 127,825 0 (327,292) (199,467) . 0 Capital Contributions 175,576 0 0 175,576 0 Capital Transfers In From Other Funds 0 0 0 0 0 Capital Transfers Out To Other Funds 0 0 0 0 0 Payments of Bond Issuance 0 0 0 0 0 Principal Payments on Bonds /Leases (323,000) (445,000) (12,000) (780,000) 0 Interest Payments on Bonds /Leases (275,718) (220,563) (19,753) (516,034) 0 NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (3,357,945) (700,672) (1,542,914) (5,601,531) (783,751) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from Sales and Maturities of Investments 9,119,344 700,000 7,689,110 17,508,454 5,200,000 Purchase of Investments (5,351,365) (736,778) (7,000,000) (13,088,143) (4,874,083) Interest on Investments 376,704 34,149 172,456 583,309 302,466 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES 4,144,683 (2,629) 861,566 5,003,620 628,383 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,166,014 34,774 (94,013) 1,106,775 1,011,612 CASH AND CASH EQUIVALENTS, JANUARY 1 334,648 98,833 170,770 604,251 159,577 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1,500,662 $ 133,607 $ 76,757 $ 1,711,026 $ 1,171,189 RECONGILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating Income (Loss) $ 1,586,204 $ (385,814) $ 350,640 $ 1,551,030 $ 880,488 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used ) by Operating Activities: Depreciation /Amortization 726,347 323,957 522,653 1,572,957 680,613 (Increase) Decrease In Accounts Receivable (136,739) 265,763 18,373 147,397 1,098 (Increase) Decrease In Due from Other Governmental Units 2,959 0 0 2,959 0 (increase) Decrease In Inventory (24,988) (38,286) (3,757) (67,031) 1,000 Increase (Decrease) in Accounts Payabte 0 33,734 (5,387) 28,347 17,558 Increase (Decrease) in Other Current Liabilities (2,476) 55,290 1,167 53,981 [1,554) Increase (Decrease) in Customer Deposits (145,490) 5,061 0 (140,429) 0 Increase (Decrease) in Accrued Employee Leave Benefits 1,744 0 (909) 835 0 Interest Reported as Operating Income 774 0 0 774 0 Transferred as Operating Cost (814,529) (10,816) 22,735 (802,610) Total Adjustments (392,398) 634,703 554,875 797,180 698,715 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 1,193,806 $ 248,889 $ 905,515 $ 2,348,210 $ 1,579,203 NON CASH INVESTING, CAPITAL AND FINANCING ACTIVITIES: Capital Assets Contributed by Developers $ 16,100 $ 0 $ 6,290 $ 22,390 Capital Assets Contributed from Other Governmental Units 0 0 0 0 Capital Asserts Contributed by Customers 177,729 Change In Fair Value of Investments (49,714) 0 492 (49,222) THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT. -34- City of Tukwila Fund Financial Statements Page 1 of 1 STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUND December 31, 2007 FIREMEN'S PENSION DESCRIPTION TRUST FUND ASSETS Cash and Cash Equivalents Investments, at Fair Value: Washington State Pool U.S. Bank Certificate of Deposit Federal National Mortgage Association Interest on Investments TOTAL ASSETS $ 345,813 541,000 0 501,562 11,389 1,399,764 NET ASSETS Held in Trust for Pension Benefits and Other Purposes $ 1,399,764 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT. - 35 - City of Tukwila Fund Financial Statements Page 1 of 1 STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUND For the Year Ended December 31, 2007 FIREMEN'S PENSION DESCRIPTION TRUST FUND ADDITIONS Contributions: Fire Insurance Premiums $ 50,555 Investment Income: Interest 67,375 Total Additions 117,930 D EDUCTIONS Benefit Payments 45,841 Administrative Expenses 8,575 Total Deductions 54,416 Change in Net Assets 63,514 Net Assets - Beginning 1,336,250 Net Assets - Ending $ 1,399,764 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT. - 36 - City of Tukwila Notes to the Financial Statement Page 1 of 1 City of Tukwila Notes to the Financial Statements CITY OF TUKWILA NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2007 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 noncharter 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. There were no component units meeting any of these criteria during 2007. See NOTE 7 - JOINT VENTURES for discussion of the Valley Communications Center, which is a joint public safety dispatching authority for five member cities. Also, see NOTE 14 - RISK MANAGEMENT for discussion of the Washington Cities Insurance Authority. 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. - 38 - 2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT Notes to the Financial Statements The statements distinguish between those activities of the City that are governmental and those that are considered 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 that are 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. 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. 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. 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. Nonmajor 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 propriety 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 that only current assets and current liabilities are generally included on their balances 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: 1) 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. 2) The Arterial Street 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 City provides a portion of its sales tax revenues as well as several smaller tax resources for construction of large arterial street projects. 39- City of Tukwila Notes to the Financial Statements The other governmental funds of the City account for grants and other resources whose use is restricted to a particular purpose. Proprietary Funds Proprietary Funds are accounted for on a "flow of economic resources" measurement focus. This means that 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 nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise and internal service funds are charges to the City's customers for sales and services. Operating expenses for the enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating 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: 1) The Water /Sewer Utility Fund accounts for operations and capital improvements to provide water and sanitary sewer services to the City. 2) The Foster Golf Course Fund is used to account for the operation, maintenance, debt service, and improvements of the municipal facility. 3) The 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 for which are 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. - 40 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Notes to the Financial Statements 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's only Fiduciary Fund is a Pension Trust Fund. The Firemen's Pension Trust Fund is accounted for in essentially the same manner as Proprietary Funds. 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 (Le., 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. Trust 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 Revenues 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 this criteria are property and sales taxes. - 41 - City of Tukwila Notes to the Financial Statements Nonexchange 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). 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 that 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 includes 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, annual appropriated budgets are adopted for the general, special revenue, debt service and capital projects 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 annually budgeted governmental funds only. Budgets established for proprietary and trust funds are "management budgets" and are not legally required to be reported and, as such, are not reported in the CAFR. Annual appropriated budgets are adopted at the level of the fund 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. Annual appropriations for all funds lapse at year end. - 42 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Notes to the Financial Statements 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, 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 proceeding months, and balanced with revenue estimates made by the Mayor. 2) The City Council conducts public hearings on the proposed budget in November and December. 3) The Council makes its adjustments to the proposed budget and adopts by ordinance a final balanced budget no later than December 31. 4) The final operating budget as adopted is published and distributed within the first month of the following year. Copies of the budget are made available to the public, The Mayor may authorize transfers within funds; however, the City Council must approve by ordinance any amendments that increase the total for the fund. The budget was amended once during 2007. Budget amounts presented in the basic financial statements include both the original amounts and the final amended budget as approved by the City Council. Expenditure Categories General Government- includes administration, finance, municipal court, attorney, and city clerk activities. Public Safety- includes all police and fire activities. Physical Environment - includes expenditures for the public works activities not chargeable to the enterprise funds. Transportation - includes all street and arterial street maintenance and construction. Economic Environment- reflects the planning and building inspection activities. Culture and Recreation- includes the parks and recreation activities. Interest on Long -term Debt G. Assets, Liabilities and Fund Equity Cash and Cash Equivalents All cash and cash equivalents, restricted and unrestricted, consists of cash balances in our checking account and our imprest funds. All funds in the care of other institutions are considered investments. 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, time certificates of deposit, and the State Treasurer's Local Government Investment Pool. Additional deposit and investment information is presented in Note 3. Notes Receivable Notes Receivable in the Enterprise Funds consists of sewer connection fees due from customers to the Utility. - 43 - City of Tukwila 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 that they are not available for appropriation and are not expendable available financial resources. See also Notes 5 and 11. 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. For governmental activities, inventories are recorded using the consumption method. Deferred Charges Those unamortized debt issuance costs incurred for the issuance of long -term debt, such as legal fees, printing costs and other costs related to the two 2003 General Obligation Bond issues. 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 Infrastructure 25 to 50 years See Note 6 for additional information. - 44 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT 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. The Internal Service Funds do not report benefit accruals because they are immaterial. 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 10. Fund Equity - Reserves and Designations The City recognizes in its reporting that assets are sometimes not "available spendable resources" or not at times legally available for appropriation, because they are contractually or legally restricted for some specific future use. When this is the case, as for example with imprest funds, fund equity is "reserved ". Designations are set aside portions of fund equity by management for future plans or administrative convenience. 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. - 45 - City of Tukwila Notes to the Financial Statements 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 115 as of December 31, 2007. WCIA provides pooled self - insurance coverage for general liability, vehicle liability, false arrest, and errors and omissions. See Note 14 for additional information. 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 cash and the bank book balance was $2,020,740. Of the bank balance, $100,000 was covered by Federal depository insurance and the Washington State Public Depository Protection Commission insured the remainder. The City also maintains imprest funds totaling $14,550. Deposits and Investments In addition to the types of investments discussed in Note 1, 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. The City's investment portfolio includes Federal Home Loan Bank (FHLB) bonds, Federal National Mortgage Association (FNMA) notes, and Federal Home Loan Mortgage Corporation (FHLMC) notes. 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. The deposits include Fiscal Agent deposits, which are entirely covered by Federal Deposit Insurance Corporation (FDIC) or insured by collateral held in a multiple financial institution collateral pool administered by the Washington State Public Depository Protection Commission (PDPC). -44- 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT At December 31, 2007, the City had the following investments: FNMA Notes FNMA Notes FNMA Notes FHLB Bonds FHLB Bonds FHLB Bonds FHLMC Notes Total State Treasurer's Investment Pool Total Investments Notes to the Financial Statements Reported Amount/ Call Date Maturity Date Credit Ratings Fair Value 07/21/06 07/21/08 AAA/Aaa $ 3,510,691 01/29/08 01/29/09 AAA/Aaa 2,503,125 01/29/08 01/29/09 AAA/Aaa 650,609 05/16/08 11/16/09 AAA /Aaa 1,020,075 05/16/08 11/16/09 AAA/Aaa 994,950 11/28/08 11/28/11 AAA/Aaa 1,693,650 12/03/08 12/03/10 AAA/Aaa 1,502,954 $ 11,876,054 N/A Daily Basis Unrated 20,540,726 $ 32,416,780 RECONCILIATION OF ALL CASH, DEPOSITS, AND INVESTMENTS Carrying Amount From Statements of Net Assets: Cash and Cash Equivalents $ 24,195,148 Deposits with Fiscal Agent/Trustee 0 Investments 20,341,056 Restricted Assets: Cash and Cash Equivalents $ 41,742 Investments 391,000 432,742 Total All Cash, Deposits, and Investments from Statements of Net Assets $ 44,968,946 Carrying Amount Summary by Type: Cash and Cash Equivalents Cash in Bank (bank balance) $ 12,147,216 Cash on Hand 13,950 $ 12,161,166 Investments Investment in State Treasurer's Investment Pool $ 20,931,726 FNMA Notes 6,664,426 FHLB Bonds 3,708,675 FHLMC Notes 1,502,954 32,807,781 Total All Cash, Deposits, and Investments $ 44,968,947 City of Tukwila Notes to the Financial Statements Interest Rate Risk. 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 investment portfolio to maturities of less than one year. The City assumes that its callable investments will not be called. Investment maturities are limited as follows: 1) At the time of investment, a minimum of fifty percent (50 %) of the portfolio will be comprised of investments maturing or available within one year. 2) At the time of investment, no securities or investment instruments shall have a maturity exceeding four years, except when compatible with a specific fund's investment needs. 3) The average maturity of the portfolio shall not exceed two (2) years. Credit Risk. 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 (Le., 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, 2007, the City's Federal Home Loan Bank bond investments, Federal National Mortgage Association note investments, and Federal Home Loan Mortgage Corporation note investments were rated AAA by Standard & Poor's and Aaa by Moody's Investors Service. Concentration of Credit Risk. 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 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. More than 5 percent of the City's investments are in Federal Home Loan Bank bonds and Federal National Mortgage Association notes. These investments are 51.8% and 48.2% respectively, of the City's total investments. -48- 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT 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 $.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 2007, the City's general tax levy was $3.03706 per each $1,000 of assessed valuation. Total assessed valuation was $3,610,558,767 and was the basis for the 2007 assessments. Actual 2007 property taxes collected were as follows: ITEM General Levy 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. PROPERTY TAXES $ 10,994,127 City of Tukwila Notes to the Financial Statements NOTE 5 -- INTERFUND TRANSACTIONS Interfund transactions are classified as follows: 1) 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. 2) 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. 3) 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. 4) 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, 2007. Interfund transfers at December 31, 2007 were as follows: Transfer Out: General Non-Major Water /Sewer/ Foster Golf Int Service Transfers-Out: Fund Gov't Funds Surface Water Course Fund Fund Total Trans -In Transfers -In: General Fund $ 0 $ 734,406 $1,221,127 $ 10,816 $ 164,403 $2,130,753 Non -Major Gov't Funds 300,000 0 0 0 0 300,000 Wtr /Sewer /Surface Wtr Funds 97,260 0 0 0 0 97,260 Foster Golf Course Fund 0 0 0 0 0 0 Internal Service Funds 0 0 0 0 0 0 Total Trans-Out $ 397,260 $ 734,406 $1,221,127 $ 10,816 $ 164,403 $2,528,013 The principal purposes for interfund transfers include interfund subsidies and transfers into debt service and capital projects funds. - 50 - 2007 COMPREHENSIVE ANNUAL FINANCIAL, REPORT Notes to the Financial Statements NOTE 6 -- CAPITAL ASSETS Capital asset activity for the year ended December 31, 2007, was as follows: BEGINNING BALANCE INCREASES DECREASES ENDING BALANCE Governmental 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 Infrastructure Total capital assets being depreciated Less accumulated depreciation for: Buildings Other Improvements Machinery and Equipment Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net Governmental activity capital assets, net $ 35,701,817 $ 11,029, 706 199,644 $ 5,478,428 46,731 ,523 23,020,430 10,696,263 12,990,643 104,216,883 150,924,219 (6,995,248) (6,437,434) (7,548,740) (24,850,635) (45,832,057) 105,092,162 $ 151,823,685 BEGINNING BALANCE 5,678,072 52,524 892,700 2,120,492 5,1 87,719 8,235,435 0 0 596,212 0 596,212 8,849,647 $ 14,527,719 0 $ 35,901,461 5,890,326 10,617,808 5,890,326 46,519,269 0 23,072,954 0 11,588,963 1,563,108 13,548,027 0 109,404,602 1,563,108 157,614,546 581,802 (7,577,050) 417,155 (6,854,589) 1,076,982 (8,029,510) 2,900,751 (27,751,386) 4,976,690 (50,212,535) 6,539,798 $ 12,430,124 $ 107,402,011 153,921,280 INCREASES ENDING 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 $ 1,847,416 $ 11,643,308 60,000 $ 3,519,131 0 $ 12,854,294 13,490,724 * 8,959,642 * 50,200,741 2,218,870 61,379,253 t t (1,558,160) (19,639,8351 (1,066,087) (22,264,082) 39,115,171 52,605,895 3,579,131 1,530,792 11,238,527 159,391 12,928,710 0 2.14,787 0 2.14,787 12,854,294 13,173,497 $ 16,752,629 $ 0 314,147 0 314,147 1,907,416 2,308,146 4,215,562 10,490,434 61,125,121 2,378,261 73,993,816 268,644 (1,826,804) 1,103,182 (20,498,230) 129,616 (1,195,703) 1,501,442 (23,520,737) 1,815,589 50,473,079 14,669 883 $ 54,688 640 *Bridge capitalized at $642,790 was reclassified as Other Improvements from Buildings on the beginning balance amount for both capital assets and accumulated depreciation. 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. -51 - City of Tukwila Notes to the Financial Statements Governmental Activities Capital Assets - Increases: 2007 Capital Outlays $ 7,243,879 2007 Construction in Progress to Capital (Infrastructure) 5,387,136 2007 Construction in Progress to Capital (Machinery & Equipment 503,190 Internal Service Funds (Equipment Rental) 797,303 Capital Assets — Total Increases $ 13,931,508 Depreciation expense for 2007 was charged to functions /programs as follows: Governmental Activities: General Government $ 49,679 Public Safety 289,855 Physical Environment 605,271 Transportation 2,900,751 Economic Environment 10,771 Culture and Recreation 439,750 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 680,613 Total 2007 depreciation expense — governmental activities $ 4,976,690 Business -type Activities: Water /Sewer Utility — Depreciation 2007 $ 726,347 Foster Golf Course — Depreciation 2007 323,957 Surface Water Utility — Depreciation 2007 522,653 Total 2007 accumulated depreciation increases — business -type activities $ 1,572,252 NOTE 7 —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, and Federal Way which was formally admitted during 2000. The agreement is sanctioned by the provisions and terms of the Interlocal Cooperation Act pursuant to RCW 39.34. The initial duration of the agreement was five years, and thereafter is— automatically extended for consecutive five -year periods. The purpose of the joint operation, hereafter referred to as Valley Com, is to provide improved consolidated emergency communications (dispatch) services for police, fire, and medical aid, to the five participating cities and to several subscribing agencies, which include King County Fire District Nos. 2, 20, 26, 40, 43, 44, and 47; City of Pacific Police and Fire Departments; City of Black Diamond Police and Fire Departments; City of Algona and Des Moines Police Departments; SeaTac Fire Department; North Highline Fire Department; Vashon Island Fire Department; and King County EMS Units. 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. 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT ITEM Notes to the Financial Statements The 2007 cost distribution for the five (5) participating cities are as follows: Valley Corn 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. Said budget is then presented to the Administration Board by September 1 of each year. The Administration Board can make changes to the proposed Valley Com budget as it finds necessary, but final approval falls to the legislative body of each participating city, in accordance with the provisions of the Interlocal Agreement. The share of equity belonging to the five participating cities is as follows: RENTON KENT AUBURN TUKWILA FEDERAL WAY TOTAL Equity ]anuary 1, 2007 $3,981,550 $5,580,416 $3,701,815 $2,378,343 $2,048,504 $17,690,628 Current Year Increase (Decrease) 162,657 Equity December 31, 2007 $4,144,207 Percent of Equity 277,142 $5,857,558 147,875 $3,849,690 50,612 $2,428,955 223,394 861,680 $2,271,898 $18,552,308 22.34% 31.57% 20.75% 13.09% 12.25% 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 Chapter 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 - 53 Dispatchable Calls Percent of Total Renton 68,288 19.26% Kent 99,063 27.94% Auburn 64,352 18.15% Tukwila 38,221 10.78% Federal Way 84,633 23.87% Total 354,557 100.00% Valley Corn 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. Said budget is then presented to the Administration Board by September 1 of each year. The Administration Board can make changes to the proposed Valley Com budget as it finds necessary, but final approval falls to the legislative body of each participating city, in accordance with the provisions of the Interlocal Agreement. The share of equity belonging to the five participating cities is as follows: RENTON KENT AUBURN TUKWILA FEDERAL WAY TOTAL Equity ]anuary 1, 2007 $3,981,550 $5,580,416 $3,701,815 $2,378,343 $2,048,504 $17,690,628 Current Year Increase (Decrease) 162,657 Equity December 31, 2007 $4,144,207 Percent of Equity 277,142 $5,857,558 147,875 $3,849,690 50,612 $2,428,955 223,394 861,680 $2,271,898 $18,552,308 22.34% 31.57% 20.75% 13.09% 12.25% 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 Chapter 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 - 53 City of Tukwila Notes to the Financial Statements 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 is $2,551,600. 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 is available from Valley Com. NOTE 8 — 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 cost - sharing, multiple- employer, defined benefit public employee retirement plans administered by the State Department of Retirement Systems. Historical trend and other information regarding each plan are presented in the State Department of Retirement Systems 2007 Comprehensive Annual Financial Report. A copy of this report may be obtained at: Department of Retirement Systems Communications Unit PO Box 48380 Olympia, WA 98504 -8380 The following disclosures are made pursuant to GASB Statement No. 27, Accounting for Pensions by State and Local Government Employers. 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 combination defined benefit /defined contribution plan. 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 in national higher education retirement programs); judges of district and municipal courts; and employees of local governments. PERS participants who joined the system by September 30, 1977, are enrolled as Plan 1 members. Those who joined either 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 participants 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 - 54 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Notes to the Financial Statements Plan 2 until a choice is made. Employees who fail to choose within 90 days default to PERS Plan 3. PERS defined benefit retirement benefits are financed from a combination of investment earnings and employer and employee contributions. PERS retirement benefit provisions are established in state statute and may be amended only by the State Legislature. • Plan 1 retirement benefits are vested after an employee completes five years of eligible service. Plan 1 members are eligible for retirement at any age 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 annual pension is 2 percent of the average final compensation per year of service, capped at 60 percent. The average final compensation is based on the greatest compensation during any 24 eligible consecutive compensation months. If qualified, after reaching the age of 66 a cost -of- living allowance is granted based on years of service credit and is capped at 3 percent annually. • Plan 2 retirement benefits are vested after an employee completes five years of eligible service. Plan 2 members may retire at the age of 65 with five years of service, or at the age of 55 with 20 years of service, with an allowance of 2 percent of the average final compensation per year of service. The average final compensation is based on the greatest compensation during any eligible consecutive 60- month period. Plan 2 retirements prior to the age of 65 receive reduced benefits. If retirement is at age 55 or older with at least 30 years of service, a 3 percent per year reduction applies; otherwise an actuarial reduction will apply. There is no cap on years of service credit; and a cost -of- living allowance is granted (indexed to the Seattle Consumer Price Index), capped at 3 percent annually. • Plan 3 has a dual benefit structure. Employer contributions finance a defined benefits component while member contributions finance a defined contribution component. The defined benefit portion provides a benefit calculated at 1 percent of the average final compensation per year of service. The average final compensation is based on the greatest compensation during any eligible consecutive 60 -month period. Plan 3 members become eligible for retirement if they have: at least ten years of service; or five years including twelve months that were earned after age 54; or five service credit years earned in PERS Plan 2 prior to June 1, 2003. Plan 3 retirements prior to the age of 65 receive reduced benefits. If retirement is at age 55 or older with at least 30 years of service, a 3 percent per year reduction applies; otherwise an actuarial reduction will apply. There is no cap on years of service credit; and Plan 3 provides the same cost -of- living allowance as Plan 2. 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 Employee Retirement Benefits Board. 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 6 percent and do not vary from year to year. 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. PERS Plan 3 defined contribution is a non - contributing plan for employers. Employees who participate in the defined contribution portion of PERS Plan 3 do not contribute to the defined benefit portion of PERS Plan 3. The Employee Retirement Benefits Board 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. The methods used to determine the contribution requirements are established under state statute in accordance with chapters 41.40 and 41.45 RCW. City of Tukwila Notes to the Financial Statements The required contribution rates expressed as a percentage of covered payroll as of December 31, 2007 follows: PERS Plan I PERS Plan II PERS Plan III Employer* 6.13% 6.13% 6.13 % ** Employee 6.00% 4.15% minimum 5.0% to maximum 15.0% * The employer rates include the employer administrative expense fee currently set at 0.16 %. ** Plan 3 defined benefit portion only. Both the City and the employees made the required contributions. The City's contributions to PERS for the years ending December 31 were as follows: PERS Plan I PERS Plan II PERS Plan III 2007 $ 5,134 $ 591,075 $ 106,108 2006 7,283 304,192 54,324 2005 6,559 174,327 34,101 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 was established by the State legislature in 1970 under RCW Chapter 41.26. Membership includes all full -time law enforcement officers and fire fighters. Retirement benefits are financed by employee and employer contributions, investment earnings, and legislative appropriation. LEOFF is comprised primarily of non -state employees. The LEOFF system contains two plans. Participants who joined the system by September 30, 1977 are Plan I members. Those who joined thereafter are enrolled in Plan II. Effective July 1, 2003, the LEOFF Plan II Retirement Board was established to provide governance of LEOFF Plan II. The Board's duties include adopting contribution rates and recommending policy changes to the Legislature for the LEOFF Plan II retirement plan. Effective January 1, 2003 firefighter emergency medical technicians (EMTs) may transfer PERS Plan I or Plan II service credit to LEOFF Plan II if while employed for the City, the EMT's job was relocated to a fire department from another city, town, county or district. LEOFF defined benefits are financed from a combination of investment earnings, employer and employee contributions, and a special funding situation in which the state pays the remainder through state legislative appropriations. LEOFF retirement benefit provisions are established in state statute and may be amended only by the State Legislature. Plan 1 retirement benefits are vested after an employee completes 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 is calculated as a percent of final average salary as follows: Term of Service 20 or more years 10 but less than 20 years 5 but less than 10 years Percent of Final Average 2.0% 1.5% 1.0% The final average salary 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 10 years of service. If membership was established in LEOFF after February 18, 1974, the service retirement benefit is capped at 60 percent of final average salary. A cost -of- living allowance is granted (indexed to the Seattle Consumer Price Index). - 56 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Notes to the Financial Statements Plan 2 retirement benefits are vested after an employee completes 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 2 percent of the final average salary per year of service. The final average salary is based on the highest consecutive 60 months. Plan 2 retirements prior to the age of 53 are reduced 3 percent for each year that the benefit commences prior to age 53. There is no cap on years of service credit; and a cost -of- living allowance is granted (indexed to the Seattle Consumer Price Index), capped at 3 percent annually. Funding Policy. Plan I employers and employees are required to contribute at a prescribed rate and the State is responsible for the balance of the funding. Plan II employers and employees are required to pay at levels established by the legislature. Employer and employee contribution rates for Plan II are developed by the Office of the State Actuary to fund the system. The required contribution rates to the LEOFF system expressed as a percentage of covered payroll as of December 31, 2007 follow: LEOFF Plan I LEOFF Plan II Employer 0.16% 5.35% Employee 0.00% 7.85% Both the City and the employees made the required contributions. The City's contributions to the LEOFF system for the years ended December 31 were as follows: LEOFF Plan I LEOFF Plan II 2007 $ 782 $ 548,066 2006 873 481,003 2005 1,062 372,889 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 provided 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. Funding Policy. Under State law, the Firemen's Pension Plan is provided an allocation of all moneys 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 12/31/06 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. Costs to administer the plan are paid for through investment earnings and General Fund resources. The system does not issue a stand -alone financial report and is not included in another Public Employee Retirement System or another entity. Biennially, every other year, 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. - 57 - City of Tukwila 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. Membership of the Firemen's Pension Plan consisted of the following at December 31, 2007. Retirees and beneficiaries receiving benefits 10 Retirees currently receiving full retirement benefits through the Law Enforcement Officers and Fire Fighters Retirement Plan (LEOFF) 2 Total 12 GASB STATEMENT NO. 27 THREE -YEAR TREND INFORMATION Annual Pension Contribution as a Net Pension Fiscal Year Ending Cost (APC) Percentage of APC * Obligation (NPO1 December3l, 2005 $ (5,386) N/A $ (111,642) December 31, 2006 (4,686) N/A (160,165) December 31, 2007 1,582 2,654 (200,563) * In years with a negative APC, this percentage is not applicable. Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Three-year and six-year trend information is presented as required supplementary information following the Notes to the Financial Statements. GASB STATEMENT NO. 27 ANNUAL DEVELOPMENT OF PENSION COST Annual Amort. of Fiscal Pension (Gain)/ Year ARC at Interest ARC Cost Total Employer Change in NPO (Gain)/ Amort. Loss Ending Ending EOY on NPO Adjustment (APC) Contributions NPO Balance Loss Factor Balance (2) _ [prior yr(7))x (3)= [pi ioryr (4)= (t) +(2) (7) °(6)+ (10)- int, rate (i)• (7)1/(9) - (3) (6) =(4)° -(5) [prior yr(7)) (8) -(t)- (5) (9) [prior 3r (11) =(7) (t) (5) (t t)) l (9) 12/31/05 $ (6,547) $(4,591) $(5,752) $ (5,386) $ 29,733 $ (35,119) $(111,642) $ (36,280) 13.3034 $(5,752) $ (111,642) 12/31/06 (6,547) (6,699) (8,560) (4,686) 43,837 (48,523) (160,165) (50,384) 13.0416 (8,560) (160,165) 12/31/07 (1,998) (8,008) (11,588) 1,582 41,980 (40,398) (200,563) (43,978) 13.8212 (11,588) (200,563) *(1) is the assumed interest rate that year: 6% in 2005, 6% in 2006, 5% in 2007. 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Notes to the Financial Statements GASB STATEMENT NO. 27 ANNUAL PENSION COST AND NET PENSION OBLIGATION Fiscal Year Ending 2005 2006 2007 Annual required contribution (ARC) 1. Annual Normal Cost (BOY) $ 0 $ 0 $ 0 2. Amortization of UAAL (BOY) (6,176) (6,176) (1,903) 3. Interest to EOY [(1) + (2)] x (i) * (371) (371) (95) 4. ARC at EOY [(1) + (2) + (3)] $ (6,547) $ (6,547) $ (1,998) 5. Interest on NPO $ (4,591) $ (6,699) $ (8,008) 6. Adjustment to ARC (5,752) (8,560) (11,588) 7. Annual Pension Cost [(APC)] [(4) + (5) — (6)] $ (5,386) $ (4,686) $ (1,582) 8. Employer Contributions ** 29,733 43,837 41,980 9. Change in NPO [(7) — (8)] (35,119) (48,523) (40,398) 10. NPO at BOY [(11) prior year] $ (76,523) $ (111,642) $ (160,165) 11. NPO at EOY [(9) + (10)] $ (111,642) $ (160,165) $ (200,563) *(i) Is the assumed Interest rate that year: 6% In 2006, 6% in 2007, 5% in 2008 ** Employer contributions for pensions are total contributions to the Fund net of disbursements from the Fund for medical expenses under RCW 41.26.150 and administrative expenses. The information presented in the preceding required schedules was determined as part of the actuarial valuations at the dates indicated. Since all Firemen's Pension Fund employees for Tukwila are now retired, the actuarial cost method does not apply for retirees and is irrelevant, Actuarial cost method: Amortization Method: Asset Valuation method for all years: Entry Age Normal Closed 30 years from 1/1/99, level dollars Fair Value The key actuarial assumptions used for the January 1, 2007 valuation are: Economic assumptions: Investment rate of return 5.00% Projected salary increases 4.00% Price inflation 3.00% Growth in fire insurance premiums 3.00% Non - economic assumptions: Mortality rates are based on the 2000 Group Annuity Mortality Table for males, with ages set forward one year. Turnover is assumed to be zero Probabilities of both service and disability retirement vary by age. City of Tukwila Notes to the Financial Statements NOTE 9 — CAPITAL LEASES In 2005, the City of Tukwila entered into a capital lease agreement for financing the purchase of 34 golf carts. This business -type activity qualifies as a capital lease for accounting purposes, and therefore, has been recorded at the present value of the future minimum lease payments as of the inception date. The assets acquired through the capital lease are as follows: Asset Business -Type Activities Machinery and Equipment $ 128,605 2009 11,782 Less: Accumulated Depreciation $ (36,744) Total $ 91,861 The minimum lease obligation and the net present value of these minimum lease payments as of December 31, 2007 were as follows: Year Ending December 31 Business -Type Activities 2008 35,345 2009 11,782 2010 0 Total Minimum Lease Payments $ 47,127 Less: Amount Representing interest $ (1,540) Present Value of Minimum Lease Payments $ 45,587 - 60 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Notes to the Financial Statements NOTE 10 — 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: ITEM 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 has an Al and an Aaa bond rating from Moody's Investor Service for its 1999, 2000, and 2003 General Obligation Bonds, and 2003 General Obligation Refunding Bonds, respectively. The $1,755,000 shown as authorized represents Tukwila's share of a joint venture capital project. See Note 7. 2. Business -Type Activities Long -Term Debt - Operating revenues of the individual proprietary fund are used to satisfy this debt. The City's bond rating from Moody's Investors Service is Aaa for the 1993 and 1995 Revenue Bonds. The City has an Al and Aaa bond rating from Moody's Investor Service for its 2003 General Obligation Bonds. Public Works Trust Fund loans are low interest rate loans available from the Washington State Department of Community Development for qualifying projects. The Foster Golf Course Fund incurred a capital lease during 2005. Please see Note 9 above. The schedules that follow summarize the long -term debt transactions of the City for the year ended December 31, 2007. The first table summarizes all debt transactions for Tukwila, while the second provides detailed information on all long -term debt. LONG -TERM DEBT SCHEDULES PUBLIC WORKS LIMITED REVENUE TRUST FUND CAPITAL COMPENSATED G.O. BONDS BONDS LOANS LEASES ABSENCES TOTAL Payable 01/01/07 $ 23,400,000 $ 5,860,000 $ 9,781,149 $ 77,947 $ 2,377,710 $ 41,496,806 Added 0 0 209,803 0 184,077 393,880 Retired 1,375,000 335,000 612,448 32,360 0 2,354,808 PAYABLE 12/31/07 $ 22,025,000 $ 5,525,000 $ 9,378,504 $ 45,587 $ 2,561,787 $ 39,535,878 ITEM City of Tukwila Notes to the Financial Statements INTEREST RATES MATURITY AUTHORIZED OUTSTANDING 12/31/06 DUE WITHIN ISSUED REDEEMED 12/31 /07 ONE YEAR GOVERNMENTAL ACTIVITIES: Bonds Payable. General Government 1999 Limited C.O. Streets /Facilities 4,50-5.70 12/01/19 $ 2000 Limited C.O. Facilities 4.30-5.75 12/01/15 2003 Limited G.O. Refunding Facilities 4.005.00 12/01/14 4,195,000 2003 Limited G.O. Streets 4.25.4.65 12/01/23 10,000,000 $ 7,585,000 $ 0 $ 420,000 $ 7,165,000 $ 440,000 2,551,600 1,755,000 0 160,000 1,595,000 167,000 3,235,000 0 350,000 2,885,000 365,000 6,277,500 6,277,500 0 0 6,277,500 0 lesstAdiLDefeued Amounts. For Issuance Premiums On Refunding Total Bonds Payable Compensated Absences: GOVERNMENTAL ACTIVITY LONG-TERM LIABILITIES BUSINESS -TYPE ACTIVITIES: 13onds Payable: 1993 Water /Sewer Refunding Revenue 1995 Water /Sewer Revenue 2003 Limited G.O. Golf Course 2006 Water /Sewer /SWM Revenue 1.ess /Add Deferred Amounts: For Issuance Discounts For Issuance Premiums Total Bonds Payable Public Works Trust Fund Loans; 1990 PWTF Loan - Surface Water 1991 PWTF Loan - Surface Water 2003 PWTF Loan - Surface Water 2003 PWTF Loan - Water /Sewer 2003 PWTF Loan -Surface Water 2004 PWTF Loan • Water /Sewer 2004 PWTF Loan • Surface Water 2004 PWTF Loan • Surface Water Total Public Works Trust Fund Loans Capital Lease: 2.60 -4.70 4.15 -6.63 4.25-4.65 5.00 1.00 0.50 0.50 0.50 2.00 2.00 1.00 Compensated Absences: BUSINESS -TYPE ACTIVITY LONG-TERM LIABILITIES TOTAL GOVERNMENTAL AND BUSINESS - TYPE ACTIVITY LONG -TERM LIABILITIES $ 23,024,100 $ $ 232,476 0 25,679 206,797 25,679 (203,178) 0 (20,215) (182,963) (20,215) 18 881 798 $ 0 $ 935 464 $ 17,946,334 $ 977,464 2,170,343 $ 1 980 472 $ 1,799,928 $ 2,350,887 $ 60 000 $ 23 024 100 $ 21,052, 141 $ 1 980 472 $ 2,735,392 $ 20 297 221 $ 1 ,037,464 12/01/06 $ 02/01/15 12/01/23 12/01/26 07/01/10 07/01/11 07/01/08 07/01/21 07/01/21 07/01/24 07/01/24 07/01/24 2,925,000 $ 0 $ 4,500,000 2,680,000 5,772,500 4,547,500 3,180,000 3,180,000 0 $ 0 0 0 0 $ 0 $ 2,445,000 4,102,500 3,080,000 235,000 445,000 100,000 0 235,000 445,000 184,000 (213,923) 0 (15,890) (198,032) 0 156190 0 12,996 143195 0 $ 16,377,500 $ 10,349,767 $ 0 $ 777,106 $ 9,572,663 $ 864,000 $ 140,000 $ 1,313,000 100,000 273,870 219,725 4,788,000 912,000 4,196,056 $ 11,942,651 29,475 $ 0 254,464 0 50,000 0 216,814 0 173,948 0 4,435,200 0 844,800 0 3 776 450 209,803 $ 9,781,151 $ 209,803 128 605 $ 77 947 $ $ 7,368 50,893 25,000 14,454 11,597 258,133 35,200 209,803 $ 612,448 $ 22,107 203,571 25,000 202,360 162,351 4,177,067 809,600 3,776,450 $ 9,378,506 $ 7,368 50,893 18,750 26,051 11,597 246,400 46,933 209 803 $ 617,795 0 $ 32,360 $ 45,587 $ $ 207,367 $ 203,902 $ 200,369 $ 210,900 $ $ 28 448 756 $ 20,416,232 $ 413 705 $ 1,622,283 $ 19,207,656 $ $ 51 472 856 $ 41,468,373 $ 2,394,177 $ 4,357,675 $ 39,504,877 $ 2,610,130 30,871 60,000 1 572 666 Internal service funds predominantly serve the governmental funds. Accordingly, long -term liabilities for them are included as part of the above totals for governmental activities. At year -end, internal service funds compensated absences are included in the above amounts. Also, for the governmental activities, claims and judgments and compensated absences are generally liquidated by the general fund. - 62 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT 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, 2007, the debt limits for the City were as follows: WITHOUT A VOTE WITH A VOTE OF THE PEOPLE ITEM 1.5% 2.5% 5.0% 7.5% Legal Limit $ 59,219,003 $ 98,698,338 $ 197,396,676 $ 296,095,013 Outstanding Net Indebtedness 24,494,996 24,494,996 24,494,996 24,494,996 Margin Available $ 34,724,007 $_7_42034342 $ 172,901,680 $ 271,600,017 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. DEBT SERVICE REQUIREMENT TO MATURITY LONG -TERM DEBT SUMMARY As of December 31, 2007 The annual debt service requirements to maturity for general obligation bonds are as follows: Year Ended December 31 Governmental Activities Business -Type Activities PRINCIPAL INTEREST PRINCIPAL INTEREST 2008 972,000 871,310 460,000 171,822 2009 1,281,297 826,421 218,703 157,056 2010 1,394,028 767,419 184,972 148,489 2011 1,455,774 703,125 192,226 140628 2012 -2016 7,141,115 2,483,673 1,089,885 576,853 2017-2021 4,585,300 836,979 1,334,701 328,809 2022 -2026 1,092,986 76,754 622,014 43,681 TOTALS $ 17,922,500 $ 6,565,681 $ 4,102,500 $ 1,567,337 Business -Type Activities Year Ended December 31 Revenue Bonds Public Works Trust Fund Loans Total Long -Term Debt PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST 2008 360,000 274,813 612,448 140,489 972,448 415,302 2009 375,000 256,643 587,448 131,392 962,448 388,035 2010 395,000 237,598 587,448 122,420 982,448 360,017 2011 415,000 217,543 580,080 113,447 995,080 330,990 2012 -2016 2,070,000 704,563 2,645,935 443,268 4,715,935 1,147,831 2017 -2021 855,000 356,175 2,645,935 240,895 3,500,935 597,070 2022 -2026 1,055,000 146,475 1,509,408 47,788 2,564,408 194,263 TOTALS $ 5,525,000 $ 2,193,808 $ 9,168,703 $ 1,239,700 $ 14,693,703 $ 3,433,507 City of Tukwila Notes to the Financial Statements NOTE 11 - RESERVATION AND DESIGNATIONS OF FUND EQUITY Following is an analysis of fund equity reservation by type for each of the City's fund groups. RESERVATION OF FUND EQUITY Special Equity Reserved For: General Revenue Fiduciary Totals Imprest Funds $ 13,950 $ 0 $ 0 $ 13,950 Employees' Pension Benefits 0 0 1,399,764 1,399,764 Total $ 13,950 $ 0 $ 1,399,764 $ 1,413,714 There is a Fund Equity Designation of $3,763,990 in the General Fund. This represents sales tax accruals. The City desires to exclude this revenue from appropriation to protect cash liquidity. NOTE 12 - LITIGATION There are several lawsuits in which the City is involved. The City Attorney estimates that the potential claims against the City are either covered by insurance or are not material enough to affect the financial statements of the City. See also Note 14. NOTE 13 — RESTRICTED ASSETS The balances of the restricted asset accounts in the enterprise funds are as follows: Customer deposits - water /sewer utility $ 2,298 Customer deposits - Foster golf course 58,264 Revenue bond reserve account 393,547 Total restricted assets $ 454,109 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Notes to the Financial Statements NOTE 14 — RISK MANAGEMENT The City is insured for comprehensive general liability, automobile liability, stop -gap coverage, boiler and machinery, errors and omissions liability and employee benefits liability through the Washington Cities Insurance Authority (WCIA). Utilizing RCW Chapter 48.62 (self- insurance regulation) and RCW Chapter 39.34 ( 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. To date, WCIA has a total of 121 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 professional, public officials errors or omissions, stop -gap, and employee benefits liability. Limits are $3 million per occurrence self insured layer, and $12 million per occurrence in the re- insured excess layer with no annual aggregate except $10 million per member for public officials errors and omissions. The excess layer is insured by the purchase of reinsurance and insurance. Total limits are $15 million per occurrence. The Board of Directors determines the limits and terms of coverage annually. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. 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 reinsurance. In -house services include risk management consultation, loss control field services, claims and litigation administration, and loss analyses. Third party contracts exist for the use of a claims investigation company, consultants for personnel issues and land use problems, and 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. WCIA is governed by a Board of Directors, 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 self - insures for unemployment benefits. This is budgeted each year and has not exceeded $60,000 per year. This expense is budgeted in each respective fund and no reserves are allocated because of the limited liability and historical cost. - 65 - Cite of Tukwila Notes to the Financial Statements 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 Assurance Company, which provides individual limits of $110,000 and a plan limit of $7,839,347 in 2007. Each fund contributes an appropriate amount each year to pay premiums and claims. At the end of each year the employees and employer share equally any residual amounts. Liabilities include an amount for claims that have been incurred but not reported (IBNR's). Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of payouts, and other economic and social factors. The basis for estimating the liabilities for unpaid claims includes the effects of specific, incremental claim adjustment expenses, salvage, subrogation, and other allocated adjustment expenses. The following table reflects changes in the balances of claims liabilities for 2006 and 2007. ITEM Claims Liabilities at Beginning of the Year Claims Expenses: Current Year and Changes in Estimates Claims Payments and Expenses Claims Liabilities at End of the Year Insurance 2007 $ 729,613 3,855,847 (3,823,891) $ 761,569 Insurance 2006 $ 746,749 3,675,692 (3,692,828) $ 729,613 Insurance — LEOFF I 2007 $ 100,496 417,222 (431,620) $ 86,098 Insurance — LEOFF I 2006 $ 78,784 524,194 (502,482) $ 100,496 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. American States Insurance Company insures boiler machinery, crime and 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. NOTE 15 — OTHER POST EMPLOYMENT BENEFITS In addition to the pension benefits described in Note 8, the City provides post retirement health care benefits, in accordance with State statutes, to all LEOFF retirees. Currently, 39 retirees meet those eligibility requirements. The City provides medical insurance and reimburses for all validated claims for medical, dental, and hospitalization costs incurred by retirees. Expenditures for post retirement health care benefits are recognized as retirees report claims. During the year, expenditures of $542,868 were recognized for post retirement health care. This represents a $26,967 increase from the previous year. -66- 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Notes to the Financial Statements This page intentionally left blank. City of Tukwila Notes to the Financial Statements �8- 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Required Supplementary Information REQUIRED SUPPLEMENTARY INFORMATION City of Tukwila Required Supplementary Information REQUIRED SUPPLEMENTARY INFORMATION FIREMEN'S PENSION TRUST FUND SCHEDULE OF FUNDING PROGRESS (All dollar amounts in thousands) Valuation Date Actuarial Value of Assets Actuarial Accrued Liabilities Entry Age Unfunded Actuarial Accrued Liabilities (UAAL) Funded Covered Ratio Payroll UAAL as a Percentage of covered payroll January 1, 2000 January 1, 2003 January 1, 2005 January 1, 2007 $ 1,076 1,215 1,265 1,336 $ 1,243 1,135 1,182 1,310 $ 167 86.56% $ 112 (80) 107.05 0 (83) 107.02 0 (26) 102.00 0 SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER AND OTHER CONTRIBUTING ENTITIES 149.11% N/A N/A N/A Fiscal Year Ending December 31, 2002 December 31, 2003 December 31, 2004 December 31, 2005 December 31, 2006 December 31, 2007 Actual Employer Contributions 0 0 0 0 0 0 * Beginning in 2003, expenses will be included. Actual Fire Insurance Premiums 31,845 36,651 40,812 40,983 45,951 50,555 Less Medical Payments & Expenses * 25,000 3,875 500 11,250 2,114 8,575 Total Fund Contributions 6,845 32,776 40,312 29,733 43,837 41,980 Annual Required Contribution (ARC) 14,248 (6,789) (6,789) (6,547) (6,547) (1,998) Percentage of ARC Contributed 48 N/A N/A N/A 'N /A N/A The information presented in the preceding required schedules was determined as part of the actuarial valuations at the dates indicated. 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Required Supplementary Information NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION FIREMEN'S PENSION TRUST FUND Valuation Date January 1, 2007 Actuarial Cost Method Entry Age Normal Amortization Method 30 -year, closed as of January 1, 1999 Remaining Amortization Period 22 years Fair Value Asset Valuation Method Actuarial Assumptions: Investment Rate of Return 5.0% Projected Salary Increases 4.0% Includes Inflation at 3.0% Cost of Living Adjustments Based upon salary increase assumption for FPF benefits, inflation assumption for LEOFF benefits. * Under the Firemen's Pension Trust Fund, most adjustments are based on the change in salary for the rank of the 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. -71 - City of Tukwila Required Supplementary Information - 72 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Combining and Individual Fund Statements COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES - NONMAJOR FUNDS City of Tukwila Combining and Individual Fund Statements 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Combining Statements - Nonmajor Governmental Funds' Description NONMAJOR GOVERNMENTAL FUNDS The nonmajor governmental funds fall into the three categories of special revenue, debt service, and capital projects as described below. 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. City of Tukwila Combining Statements - Nonmajor Governmental Funds DESCRIPTION ASSETS Cash and Cash Equivalents Investments Receivables: Taxes Interest on Investments Due From Other Governmental Units TOTAL ASSETS COMBINING BALANCE SHEET BY FUND TYPE NONMAJOR GOVERNMENTAL FUNDS December 31, 2007 SPECIAL REVENUE DEBT SERVICE CAPITAL PROJECTS Page I of I TOTAL NONMAJOR FUNDS 1,810,441 $ 200,000 3,500 4,614 274,131 $ 2,292,686 $ 408,629 $ 571,000 253,605 0 0 1,233,234 $ 6,755,591 $ 1,163,746 186,378 8,179 28,424 8,142,318 $ 8,974,661 1 ,934,746 443,483 12,793 302,555 11,668,238 LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable Retainage Payable Due to Other Goverments Accrued Wages Accrued Benefits Deferred Revenues TOTAL LIABILITIES $ FUND BALANCES: Unreserved - Undesignated TOTAL FUND BALANCES TOTAL LIABILITIES AND FUND BALANCES 0 $ 0 0 10,569 1,480 0 12,049 2,280,637 2,280,637 2,292,686 $ 0 $ 0 0 0 0 0 0 3,317 $ 17,333 3,430 476 789 3,235 28,580 1,233,234 8,113,739 1,233,234 8,113,739 1,233,234 $ 8,142,319 $ 3,317 17,333 3,430 11,045 2,269 3,235 40,629 11,627,610 11,627,610 11,668,239 - 76 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Page 1 of 1 DESCRIPTION REVENUES Taxes Intergovernmental Investment Income Miscellaneous TOTAL REVENUES Combining Statements - NonmaJor Governmental Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND TYPE NONMAJOR GOVERNMENTAL FUNDS For the year ended December 31, 2007 SPECIAL REVENUE DEBT SERVICE CAPITAL PROJECTS TOTAL NONMAJOR FUNDS $ 583,232 $ 832,877 107,836 4,778 1,528,723 1,850,000 $ 91,698 60,784 0 2,002, 482 1,765,191 757,994 386,676 96,180 3,006,041 $ 4,198,423 1,682,569 555,296 100,958 6,537,245 EXPENDITURES Current: Public Safety Physical Environment Transportation Economic Enviroment Debt Service: Principal Interest Capital Outlay TOTAL EXPENDITURES 0 0 (630) 917,070 0 0 520,518 1,436,958 0 0 0 0 930,000 914,584 0 1,844,584 0 249,616 0 0 0 0 1,838,759 2,088,375 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers In Transfers (Out) Sale of Capital Assets TOTAL OTHER FINANCING SOURCES AND (USES) 91,765 300,000 ( 157,914) 0 142,086 157,898 0 0 0 0 917,666 0 (49,754) 0 (49,754) Net Change in Fund Balances Fund Balances - Beginning FUND BALANCES - ENDING 233,851 2,046,785 $ 2,280,637 $ 157,898 1,075,347 1,233,244 $ 867,9 ] 2 7,245,827 8,1 13,739 $ 0 249,616 (630) 917,070 930,000 914,584 2,359,277 5,369,917 1,167,329 300,000 (207,667) 0 92,333 1,259,661 10,367,959 11,627,620 - 77 - City of Tukwila Combining and Individual Fund Statements , l'.:1!•1 04) i%rw. 1F-111 •, jqk 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Combining Statements - Nonmajor Governmental Funds' Description NONMAJOR 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. Contingency Fund - Provides funding for any municipal expenditure, the necessity or extent of which could not be foreseen or reasonably evaluated at the time of budget adoption. Resources of the fund are general tax revenues. Fire Equipment Cumulative Reserve Fund - Provides funding for major fire department equipment purchases. Primary revenue source is a $1 50,000 annual transfer from the General Fund. 79 City of Tukwila Combining Statements - NonmaJor Governmental Funds DESCRIPTION ASSETS Cash and Cash Equivalents Investments Receivables: Taxes Receivable Interest on Investments Due From Other Governmental Units Investments TOTAL ASSETS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2007 SPECIAL REVENUE HOTELJMOTEL STREET CONTINGENCY FIRE EQUIPMENT CUMULATIVE RESERVE Page 1 of 1 TOTAL NONMAJOR SPECIAL REVENUE FUNDS $ 107,627 $ 484,827 3,500 4,614 274,131 200,000 $ 1,074,699 $ 54,538 $ 94,059 $ 185,603 763,128 0 0 0 0 0 240,141 $ 857,187 $ 10,185 $ 110,472 0 0 120,657 $ 266,409 1,544,030 3,500 4,614 274,131 200,000 2,292,684 LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable Due to Other Governmental Units Accrued Wages Accrued Benefits Deferred Revenue TOTAL LIABILITIES $ 0$ 0 10,569 1,480 0 12,049 FUND BALANCES: Unreserved - Undesignated 1,062,651 TOTAL FUND BALANCES 1,062,651 TOTAL LIABILITIES AND FUND BALANCES $ 1,074,700 $ 0 $ 0 0 0 0 0 240,141 240,141 240,141 $ 0 $ 0 0 0 0 0 857,187 857,187 857,187 $ 0 $ 0 0 0 0 0 120,658 120,658 120,658 $ 0 0 10,569 1,480 0 12,049 2,280,637 2,280,637 2,292,686 - 80 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Page 1 of 1 DESCRIPTION REVENUES Taxes Intergovernmental Interest income Miscellaneous TOTAL REVENUES Combining Statements - Nonmajor Governmental Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the year ended December 31, 2007 SPECIAL REVENUE HOTEL /MOTEL STREET CONTINGENCY FIRE EQUIPMENT CUMULATIVE RESERVE TOTAL NONMAJOR SPECIAL REVENUE FUNDS $ 583,232 $ 536,936 41,887 4,778 1,166,833 0 $ 295,428 6,091 0 301,518 0 $ 0 $ 39,291 0 39,291 0 $ 514 $ 20,566 0 21,080 583,232 832,877 107,836 4,778 1,528,723 EXPENDITURES Current: Public Safety Transportation Economic Environment Interest Capital Outlay TOTAL EXPENDITURES 0 0 0 0 (630.00) 0 0 917,070 0.00 0 0 0.00 0 0 0.00 0 520,518 917,070 (630.00) 0 520,518 0 (630) 917,070 0 520,518 1,436,958 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers In Transfers (Out) Sale of Capital Assets TOTAL OTHER FINANCING SOURCES AND (USES) 249,763 302,148 39,291 (499,438) 0 0 0 300,000 0 (157,914) 0 0 0 0 0 0 0 (157,914) 0 300,000 Net Change in Fund Balances Fund Balances - Beginning FUND BALANCES - ENDING 249,763 812,887 $ 1,062,651 $ 144,235 39,291 (199,438) 95,907 817,896 320,095 240,141 $ 857,187 $ 120,658 $ 91,765 300,000 (157,914) 0 142,086 233,851 2,046,785 2,280,637 -81 - DESCRIPTION REVENUES Taxes City of Tukwila Combining Statements - Nonmajor Governmental Funds HOTEL /MOTEL TAX SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL For the Year Ended December 31, 2007 BUDGETED AMOUNTS ORIGINAL FINAL ACTUAL AMOUNTS Page 1 of 4 VARIANCE WITH FINAL BUDGET POSITIVE/(NEGATIVE) Intergovernmental Investment Income Miscellaneous TOTAL REVENUES EXPENDITURES Current: Economic Environment Interest Capital Outlay TOTAL EXPENDITURES 480,000 $ 480,000 $ 539,000 10,000 5,000 1,034,000 539,000 10,000 5,000 1,034,000 1,065,053 1,065,053 20,000 0 10,000 1,095,053 1,065,053 583,232 $ 536,936 41,887 4,778 1,166, 833 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers In Sale of Capital Assets TOTAL OTHER FINANCING SOURCES AND (USES) Net Change in Fund Balance Fund Balance - Beginning FUND BALANCE - ENDING (61,053) (31,053) 0 0 0 0 917,070 0 917,070 249,763 0 0 0 0 (61,053) (31,053) 618,189 618,189 557,136 $ 587,136 $ 0 249,763 812,887 1,062,651 $ 103,232 (2,064) 31,887 (222) 132,833 147,983 0 0 147,983 280,816 0 0 0 280,816 194,698 475,515 82 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Page 2 of 4 Combining Statements - Nonmajor Governmental Funds STREET FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL For the Year Ended December 31, 2007 VARIANCE WITH BUDGETED AMOUNTS ACTUAL FINAL BUDGET DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE) REVENUES Taxes $ 0 $ 0 $ 0 $ 0 Intergovernmental 286,000 286,000 295,428 9,428 Investment Income 10,400 10,400 6,091 (4,309) Miscellaneous 0 0 0 0 TOTAL REVENUES 296,400 296,400 301,519 5,119 EXPENDITURES Current: Public Safety 0 0 0 0 Transportation 0 0 0 0 Capital Outlay 0 0 TOTAL EXPENDITURES 0 0 0 0 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 296,400 296,400 301,519 5,119 OTHER FINANCING SOURCES (USES) Transfers In Transfers (Out) TOTAL OTHER FINANCING SOURCES AND (USES) 0 0 0 0 0 0 0 0 0 0 0 0 Net Change in Fund Balance 296,400 296,400 301,519 5,119 Fund Balance - Beginning 50,442 50,442 95,907 45,465 FUND BALANCE - ENDING $ 346,842 $ 346,842 $ 397,426 $ 50)584 - 83 - DESCRIPTION REVENUES City of Tukwila Combining Statements - Nonmajor Governmental Funds Page 3 of 4 CONTINGENCY FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL For the Year Ended December 31, 2007 VARIANCE WITH BUDGETED AMOUNTS ACTUAL FINAL BUDGET ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE) Intergovernmental $ 0 $ 0 $ 0 $ 0 Investment Income 25,000 25,000 39,291 14,291 Miscellaneous 0 0 0 0 TOTAL REVENUES 25,000 25,000 39,291 14,291 EXPENDITURES Current: Public Safety 0 0 0 0 Transportation 0 0 0 0 Capital Outlay 0 0 0 0 TOTAL EXPENDITURES 0 0 0 0 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 25,000 25,000 39,291 14,291 OTHER FINANCING SOURCES (USES) Transfers In 0 0 0 0 Transfers (Out) 0 0 0 0 TOTAL OTHER FINANCING SOURCES AND (USES) 0 0 0 0 Net Change in Fund Balance 25,000 25,000 39,291 14,291 Fund Balance - Beginning 801,955 801,955 817,896 15,941 FUND BALANCE - ENDING $ 826,955 $ 826,955 $ 857,187 $ 30,232 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Page 4 of 4 Combining Statements - Nonmajor Governmental Funds FIRE EQUIPMENT CUMULATIVE RESERVE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL For the Year Ended December 31, 2007 VARIANCE WITH BUDGETED AMOUNTS ACTUAL FINAL BUDGET DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE) REVENUES Taxes $ 0 $ 0 $ 0 $ 0 Intergovernmental 0 0 514 514 Investment Income 8,000 8,000 20,566 12,566 Miscellaneous 0 0 0 0 TOTAL REVENUES 8,000 8,000 21,080 13,080 EXPENDITURES Current: Public Safety 2,000 2,000 0 2,000 Debt Service 0 0 0 0 Capital Outlay 520,000 520,000 520,518 (518) TOTAL EXPENDITURES 522,000 522,000 520,518 1,482 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (514,000) (514,000) (499,438) (11,598) OTHER FINANCING SOURCES (USES) Transfers In 300,000 300,000 300,000 0 Transfers (Out) TOTAL OTHER FINANCING SOURCES AND (USES) 300,000 300,000 300,000 0 Net Change in Fund Balance (214,000) (214,000) (199,438) (11,598) Fund Balance - Beginning 332,854 332,854 320,095 (12,759) FUND BALANCE - ENDING $ 118,854 $ 118,854 $ 120,657 $ (24,357) - 85 - City of Tukwila Combining and Individual Fund Statements 54; (1. i1i Jou 03:1' 0:114/ 5 op 1, J,JJAJ,„ - 86 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Combining Statements - NonmaJor Governmental Funds' Description NONMAJOR 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. 1999 - This fund provides payment to the Fiscal Agent for principal and interest payments required per the debt service schedule for purchase of an additional City Hall Annex and economic revitalization projects. Revenues are provided by allocation of sales tax proceeds. Limited Tax G.O. 2000 - 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 portion of a new Valley Communications Center along with four other cities. Revenues are provided by allocation of sales tax proceeds. 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. - 87 - City of Tukwila Combining Statements - Nonmajor Governmental Funds DESCRIPTION ASSETS Cash and Cash Equivalents Investments Receivables: Taxes TOTAL ASSETS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2007 DEBT SERVICE LIMITED TAX G.O. 1999 LIMITED TAX G.O. 2000 LIMITED TAX G.O. 2003 LIMITED TAX G.O. REFUNDING BONDS 2003 Page 1 of I TOTAL NONMAJOR DEBT SERVICE FUNDS 57,686 $ 153,222 $ 139,547 $ 45,000 145,000 242,000 109,667 34,271 47,979 $ 212,353 $ 332,493 $ 429,527 $ 58,173 $ 139,000 61,688 258,861 $ 408,629 571,000 253,605 1,233,234 FUND BALANCES: Unreserved - Undesignated TOTAL FUND BALANCES 212,353 $ 212,353 $ 332,493 332,493 $ 429,527 429,527 $ 258,861 258,861 $ 1,233,234 1,233, 234 - 88 - Page 1 of 1 DESCRIPTION REVENUES Taxes Intergovernmental Investment Income TOTAL REVENUES 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Combining Statements - NonmaJor Governmental Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2007 DEBT SERVICE LIMITED TAX G.O. 1999 $ 800,000 $ 0 13,921 813,921 LIMITED TAX G.0.2000 250,000 $ 91,698 13,235 354,933 LIMITED TAX G.O. 2003 LIMITED TAX G.O. REFUNDING BONDS 2003 TOTAL NONMAJOR DEBT SERVICE FUNDS 350,000 $ 0 16,224 366,224 450,000 $ 0 17,395 467,395 1,850,000 91,698 60,775 2,002,473 EXPENDITURES Debt Service: Principal Interest TOTAL EXPENDITURES 420,000 160,000 0 412,609 90,839 272,333 832,609 250,839 272,333 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES Net Change in Fund Balances Fund Balances - Beginning FUND BALANCES - ENDING (18,688) 104,094 93,891 (18,688) 104,094 93,891 231,041 228,399 335,626 $ 212,353 $ 332,493 $ 429,517 $ 350,000 138,804 488,804 (21,409) (21,409) 280,270 258,861 $ 930,000 914,585 1,844,585 157,888 157,888 1,075,336 1,233,224 - 89 - City of Tukwila Combining Statements - Nonmajor Governmental Funds Page 1 of 4 LIMITED TAX G.O. BONDS, 1999 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL For the Year Ended December 31, 2007 VARIANCE WITH BUDGETED AMOUNTS ACTUAL FINAL BUDGET DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE) REVENUES Taxes $ 800,000 $ 800,000 $ 800,000 $ 0 Investment Income 10,000 10,000 13,921 3,921 TOTAL REVENUES 810,000 810,000 813,921 3,921 EXPENDITURES Debt Service: Principal 420,000 420,000 420,000 0 Interest 412,805 412,805 412,609 196 TOTAL EXPENDITURES 832,805 832,805 832,609 196 Net Change in Fund Balance (22,805) (22,805) (18,688) (3,725) Fund Balance - Beginning 182,383 182,383 231,041 48,658 FUND BALANCE - ENDING $ 159,578 $ 159,578 $ 212,353 $ 44,933 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Page 2 of 4 Combining Statements - Nonmajor• Governmental Funds LIMITED TAX G.O. BONDS, 2000 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL For the Year Ended December 31, 2007 VARIANCE WITH BUDGETED AMOUNTS ACTUAL FINAL BUDGET DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE) REVENUES Taxes $ 250,000 $ 250,000 $ 250,000 $ 0 Intergovernmental 0 0 91,698 91,698 Investment Income 3,000 3,000 13,235 10,235 TOTAL REVENUES 253,000 253,000 354,933 101,933 EXPENDITURES Debt Service: Principal 160,000 160,000 160,000 0 Interest 90,839 90,839 90,839 0 TOTAL EXPENDITURES 250,839 250,839 250,839 0 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 2,161 2,161 104,094 101,933 Net Change in Fund Balance 2,161 2,161 104,094 101,933 Fund Balance - Beginning 155,007 155,007 228,399 73,392 FUND BALANCE - ENDING $ 157,168 $ 157,168 $ 332,493 $ 175,325 - 91 - City of Tukwila Combining Statements - Nonmajor Governmental Funds Page 3 of 4 LIMITED TAX G.O. BONDS, 2003 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL For the Year Ended December 31, 2007 VARIANCE WITH BUDGETED AMOUNTS ACTUAL FINAL BUDGET DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE / {NEGATIVE) REVENUES Taxes $ 350,000 $ 350,000 $ 350,000 $ 0 Investment Income 5,000 5,000 161224 11,224 TOTAL REVENUES 355,000 355,000 366,224 11,224 EXPENDITURES Debt Service: Interest 272,327 272,327 272,333 (6) TOTAL EXPENDITURES 272,327 272,327 272,333 (6) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 82,673 82,673 93,891 11,230 Net Change in Fund Balance 82,673 82,673 93,891 11,230 Fund Balance - Beginning 310,033 310,033 335,626 25,593 FUND BALANCE - ENDING $ 392,706 $ 392,706 $ 429,517 $ 36,823 - 92 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Page 4 of 4 DESCRIPTION REVENUES Taxes Investment Income TOTAL REVENUES Combining Statements - Nonmajor Governmental Funds LIMITED TAX G.O. REFUNDING BONDS, 2003 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL For the Year Ended December 31, 2007 BUDGETED AMOUNTS ORIGINAL FINAL ACTUAL AMOUNTS VARIANCE WITH FINAL BUDGET POSITIVE /(NEGATIVE) EXPENDITURES Debt Service: Principal Interest TOTAL EXPENDITURES $ 450,000 $ 7,000 457,000 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES Net Change in Fund Balance Fund Balance - Beginning FUND BALANCE - ENDING 450,000 7,000 457,000 $ 450,000 $ 17,395 467,395 350,000 350,000 350,000 139,000 139,000 138,804 489,000 489,000 488,804 0 10,395 10,395 0 196 196 (32,000) (32,000) (21,409) (32,000) (32,000) (21,409) 241,607 241,607 280,270 209,607 $ 209,607 $ 258,861 $ 10,591 10,591 38,663 49,254 City of Tukwila Combining Statements - Nonmajor Governmental Funds 94 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Combining Statements - Nonmajor Governmental Funds' Description NONMAJOR 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. Land Acquisition, Recreation and Park Development Fund - This special 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, Facility Replacement Fund - This fund was established in 1988 for the replacement of existing general government facilities. General Government Imptvvements - This fund was established in 1992 to provide funding for minor capital improvements not related to parks, land acquisition, or major building replacements. City of Tukwila Combining Statements - Nonma /or Governmental Funds DESCRIPTION ASSETS Cash and Cash Equivalents Investments Receivables: Taxes Interest on Investments Due From Other Governmental Units Investments TOTAL ASSETS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2007 CAPITAL PROJECTS LAND ACQUISITION, RECREATION AND PARK FACILITY DEVELOPMENT REPLACEMENT GENERAL GOVERNMENT IMPROVEMENTS Page 1 of 1 TOTAL NONMAJOR CAPITAL PROJECTS FUNDS 778,658 $ 413,591 $ 3,359,677 1,339,890 129,645 4,641 3,552 4,628 0 0 155,621 1,008,124 4,427,154 $ 2,770,874 89,577 $ 774,198 52,092 0 28,424 0 $ 944,291 1,281,826 5,473,765 186,378 8,180 28,424 1,163,745 8,142,318 LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable Retainage Payable Accrued Wages Accrued Benefits Customer Deposits Deferred Revenues TOTAL LIABILITIES $ 817 $ 17,333 $ 0 0 789 0 FUND BALANCES: Unreserved - Undesignated TOTAL FUND BALANCES TOTAL LIABILITIES AND FUND BALANCES $ 18,939 4,408,214 4,408,214 4,427,153 $ 2,500 $ 0 $ 0 0 0 3,235 5,735 2,765,139 2,765,139 2,770,874 $ 0 0 $ 3,430 476 0 0 3,906 940,385 940,385 944,291 $ 3,317 17,333 3,430 476 789 3,235 28,580 8,113,738 8,113,738 8,142,318 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Page 1 of 1 DESCRIPTION REVENUES Taxes Intergovernmental Investment Income Miscellaneous TOTAL REVENUES Combining Statements - Nonmajor Governmental Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the year ended December 31, 2007 CAPITAL PROJECTS LAND ACQUISITION, RECREATION AND PARK FACILITY DEVELOPMENT REPLACEMENT GENERAL GOVERNMENT IMPROVEMENTS TOTAL NONMAJOR CAPITAL PROJECTS FUNDS $ 1,249,356 $ 694,375 212,318 56,749 2,212,798 135,834 $ 0 133,725 39,431 308,990 380,000 $ 63,619 40,634 0 484,253 1,765,190 757,994 386,677 96,180 3,006,041 EXPENDITURES Current: Physical Environment Culture and Recreation Capital Outlay TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers -Out TOTAL OTHER FINANCING SOURCES AND (USES) 43,982 0 1,670,253 1,714,235 498,563 0 0 11,296 11,296 (49,754) (49,754) Net Change in Fund Balances Fund Balances - Beginning FUND BALANCES - ENDING 448,809 3,959,405 $ 4,408,214 $ 297,694 0 0 297,694 2,467,446 2,765,140 $ 205,634 0 157,210 362,844 121,409 0 0 121,409 818,976 940,385 $ 249,616 0 1,838,759 2,088,375 917,666 (49,754) (49,754) 867,912 7,245,827 8,113,739 - 97 - City of Tukwila Combining Statements - NonmaJor Governmental Funds LAND ACQUISITION, RECREATION AND PARK DEVELOPMENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL For the Year Ended December 31, 2007 DESCRIPTION REVENUES Taxes Intergovernmental Investment Income Miscellaneous TOTAL REVENUES EXPENDITURES Current: Physical Environment Capital Outlay TOTAL EXPENDITURES BUDGETED AMOUNTS ORIGINAL FINAL ACTUAL AMOUNTS Page 1 of 3 VARIANCE WITH FINAL BUDGET POSITIVE/ {NEGATIVE) 800,300 745,000 50,000 366,000 1,961,300 0 2,388,000 2,388,000 $ 800,300 $ 745,000 50,000 366,000 1,961,300 0 2,388,000 2,388,000 1,249,356 $ 694,375 212,318 56,749 2,212,798 43,982 1,670,253 1,714,235 449,056 (50,625) 162,318 (309,2511 251,498 (43,982) 717,747 673,765 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers -Out TOTAL OTHER FINANCING SOURCES AND (USES) (426,700) (426,700) (49,754) (49,754) 498,563 (49, 754) 925,263 0 (49,754) (49,754) Net Change in Fund Balance (476,454) Fund Balance - Beginning 1,735,840 FUND BALANCE - ENDING $ 1,259,386 (476,454) 1,735,840 $ 1,259,386 $ (49, 754) 448,809 3,959,405 4,408,214 $ 0 925,263 2,223,565 3,148,828 - 98 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Page 2 of 3 DESCRIPTION REVENUES Taxes Investment Income Miscellaneous TOTAL REVENUES Combining Statements - Nonmajor Governmental Funds FACILITY REPLACEMENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL For the Year Ended December 31, 2007 BUDGETED AMOUNTS ORIGINAL FINAL ACTUAL AMOUNTS VARIANCE WITH FINAL BUDGET POSITIVE /(NEGATIVE) EXPENDITURES Current: Physical Environment Capital Outlay TOTAL EXPENDITURES $ 131,000 $ 50,000 40,000 221,000 84,000 674,000 758,000 131,000 $ 50,000 40,000 221,000 84,000 674,000 758,000 135,834 $ 133,725 39,431 308,990 0 11,296 11,296 4,834 83,725 (569) 87,990 84,000 662,704 746,704 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Sale of Capital Assets (537,000) (537,000) 297,694 0 834,694 TOTAL OTHER FINANCING SOURCES AND (USES) Net Change in Fund Balance Fund Balance - Beginning FUND BALANCE - ENDING 0• (537,000) 2,459,943 1,922,943 $ 0 (537,000) 2,459,943 1,922,943 $ 0 297,694 2,467,446 2,765,140 $ 0 834,694 7,503 842,197 - 99 - City of Tulcwila Combining Statements - Nonmajor Governmental Funds DESCRIPTION REVENUES Taxes Intergovernmental Investment Income TOTAL REVENUES EXPENDITURES Current: GENERAL GOVERNMENT IMPROVEMENTS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL For the Year Ended December 31, 2007 BUDGETED AMOUNTS ORIGINAL FINAL ACTUAL AMOUNTS Page 3 of 3 VARIANCE WITH FINAL BUDGET POSITIVE /(NEGATIVE) $ 380,000 $ 20,000 40,000 440,000 Physical Environment 115,539 Capital Outlay 1,000,000 TOTAL EXPENDITURES 1,115,539 380,000 $ 20,000 40,000 440,000 380,000 $ 63,619 40,634 484,253 115,539 205,634 1,000,000 157,210 1,115,539 362,844 0 43,619 634 44,253 (90,095) 842,790 752,695 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (675,539) (675,539) 121,409 OTHER FINANCING SOURCES (USES) Sale of Capital Assets TOTAL OTHER FINANCING SOURCES AND (USES) 0 0 Net Change in Fund Balance Fund Balance - Beginning FUND BALANCE - ENDING 796,948 0 (675,539) (675,539) 829,457 829,457 $ 153,918 $ 153,918 $ 0 121,409 818,976 940,385 $ 0 796,948 (10,481) 786,467 - 100 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Combining Statements - Internal Service Funds' Description INTERNAL SERVICE FUNDS 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. - 101 - City of Tukwila Combining Statements - Internal Service Funds DESCRIPTION ASSETS Current Assets: Cash and Cash Equivalents Investments Receivables: Interest on Investments Materials Inventory Total Current Assets INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET ASSETS As of December 31, 2007 EQUIPMENT RENTAL INSURANCE - INSURANCE LEOFF I Page 1 of 1 TOTAL $ 403,297 $ 2,976,861 22,204 40,000 3,442,362 446,485 $ 1,278,980 435 0 1,725,900 322,087 $ 1,171,869 519,293 4,775,134 0 22,639 0 40,000 841,380 6,009,642 Noncurrent Assets: Capital Assets: Machinery and Equipment Less: Accumulated Depreciation Total Capital Assets (net of accumulated depreciation) Total Assets 7,727,118 (5,047,123) 2,679,995 6,122,357 0 0 7,727,118 0 0 (5,047,123) 0 0 2,679,995 1,725,900 841,380 8,689,637 LIABILITIES Current Liabilities: Other Current Liabilities Total Current Liabilities 11,478 761,569 86,098 859,145 11,478 761,569 86,098 859,145 NET ASSETS Invested in Capital Assets Unrestricted TOTAL NET ASSETS 4,380,407 1,730,472 $ 6,110,879 $ 0 0 4,380,407 964,331 755,283 3,450,086 964,331 $ 755,283 $ 7,830,493 - 102 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Page 1 of 1 DESCRIPTION Combining Statements - Internal Service Funds INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS For the Year Ended December 31, 2007 EQUIPMENT RENTAL INSURANCE - INSURANCE LEOFF 1 TOTAL OPERATING REVENUES Charges for Services Other Operating Revenues Total Operating Revenues 1,845,930 81 1,846,011 $ 4,508,252 1,113 4,509,365 521,805 $ 6,875,987 161 1,355 521,966 6,877,342 OPERATING EXPENSES Operations and Maintenance Administrative and General Depreciation Total Operating Expenss Operating Income (Loss) NONOPERATING REVENUES (EXPENSES): Investment Income Compensated Loss Gain (Loss) on Sale of Capital Assets Total Nonoperating Revenues (Expenses) INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS Capital Contributions Transfers In Transfer of Assets to GFA Transfers -Out Total Other Financing Sources Change in Net Assets Total Net Assets - Beginning Total Net Assets - Ending 1,032,224 10,948 680,613 1,723,785 122,226 181,272 66,986 13,552 3,855,847 0 0 3,855,847 653,518 78,969 0 0 416,092 5,304,163 1,130 12,078 0 680,613 417,222 5,996,854 104,744 880,488 261,810 78,969 42,225 302,466 0 66,986 0 13,552 42,225 383,004 384,036 0 0 (966,896) (164,403) (1,131,299) (747,263) 6,858,143 6,110,880 732,487 0 0 0 0 0 732,487 231,844 $ 964,331 146,969 1,263,492 0 0 0 0 0 (966,896) 0 (164,403) 0 (1,131,299) 146,969 132,193 608,314 7,698,301 $ 755,283 $ 7,830,494 - 103 - City of Tukwila Combining Statements - Internal Service Funds INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2007 DESCRIPTION CASH FLOWS FROM OPERATING ACTIVITIES: Cash Received from Quasi - External Transactions Cash Payments to Suppliers Cash Payments to Employees and Retirees Cash Payments for Interfund Services Used Other Operating Receipts NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES EQUIPMENT RENTA L $ 1,845,930 (672,439) (369,672) 0 0 803,819 (499,465) 87,241 (412,224) 13,552 (797,303) 0 (783,751) 2,500,000 (1,928,128) 181,272 ' 753,144 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers to Other Rinds Transfers from Other Funds NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIPS CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds from Sales of Capital Assets Acquisition and Construction of Capital Assets Capital Transfers In From Other Funds NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from Sales and Maturities of Investments Purchase of Investments Interest on Investments NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES INSURANCE INSURANCE - LEOFF I $ 4,507,817 (3,823,891) 0 0 1,113 685,039 0 0 $ 507,568 (417,222) 0 0 0 90,346 0 0 0 0 0 0 0 0 0 0 0 0 2,250,000 450,000 (2,600,980) (344,975) 78,969 42,225 (272,011) 147,250 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 360,987 42,310 $ 403,297 $ 413,029 237,596 33,457 83,810 446,486 $ 321,406 $ Page 1 of 1 TOTAL 6,861,315 (4,913,552) (369,672) 0 1,113 1,579,204 (499,465) 87,241 (412,224) 13,552 (797,303) 0 (783,751) 5,200,000 (4,874,083) 302,466 628,383 1,011,612 159,577 1,171,189 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation (Increase) Decrease in Accounts Receivable (Increase) Decrease in Inventory Increase (Decrease) in Accounts Payable Increase (Decrease) in Other Current Liabilities Total Adjustments 122,226 653,518 104,744 880,488 680,613 0 0 680,613 1,533 (435) 0 1,098 1,000 0 0 1,000 0 31,956 (14,398) 17,558 (1,554) 0 0 (1,554) 681,592 31,521 (14,398) 698,715 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: $ 803,818 $ 685,039 $ 90,346 $ 1,579,203 NON CASH INVESTING, CAPITAL AND FINANCING ACTIVITIES: Capital Assets Contributed From Other Governmental Units $ 0 $ 0 $ 0 $ 0 - 104 - 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Statistical Section STATISTICAL TABLES City of Tukwila 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT Statistical Section Statistical Section City of Tukwila Statistical Section December 31, 2007 Financial Trend Information Financial trend tables are intended to provide users with information to assist them in understanding and assessing how the City's financial position has changed over time Table 1 Net Assets by Component 107 Table 2 Change in Net Assets 108 Table 3 Fund Balances, Governmental Funds 111 Table 4 Change in Fund Balances, Governmental Funds 112 Table 5 Tax Revenues by Source, Governmental Funds 114 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. Table 6 Property Tax Levies and Collections 115 Table 7 Assessed Value of Taxable Property 116 Table 8 Direct and Overlapping Property Tax Rates 117 Table 9 Principal Property Taxpayers 118 Table 10 Retail Sales Tax Collections by Sector 119 Table 11 Sales Tax Rate - Direct and Overlapping Governments 120 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. Table 12 Ratios of Outstanding Debt by Type 121 Table 13 Ratios of General Bonded Debt Outstanding 122 Table 14 Direct and Overlapping Debt 123 Table 15 Legal Debt Margin 124 Table 16 Revenue Bond Coverage - Water and Sewer Bonds 125 Demographic and Economic Information These tables 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 Table 17 Demographic Statistics 126 Table I8 Principal Employers 127 Operating Information These tables 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 Table 19 Full -Time Equivalent City Government Employees by Function 128 Table 20 Operating Indicators by Function 129 Table 21 Capital Assets by Function 130 - 106 - NET ASSETS BY COMPONENT {a) Last Five Fiscal Years (b) .5 CE ty 5 i A N.. v V°o) VV)) co v O co cy) a a Z a c, co v cn v V? Vl M —. co O O ,O 00 0, 0, N ,-. N N b4 ,O O NO c0 N N N 00 V) ,O 0, 07 V N V 0, co N t- 0' ,O N V VM) O- N M M M - � V N M 0 V co c0 N M 0, 0 cN0 V O O cO cs) .-. M M N V) ,O - N 0 P V 00 n 44 ,O <5 N V) 00 N V M [� aD N ,-- ,--. V V) ,O ,O n 6R [� U 0' u) 'O ,O .-+ V 00 0, M ,--� 00 00 V N '0 N 0' V) CO- c0 M N- N `NO V 0 LAN P N. 07 07 _ cl M V V V V O 0 in P NO V) n V ‘0, ,O co V ,--- n O U O N 00 O 0, U N *• L9 $ 29,032,974 $ 1,311,344 00 in N. V) c") 0, c0 c0 0} N. M V V) 0, O c„..- O ,--:- V) 00 ,O [� co V 00 U u1 V V N 0 N co 0 ,N-- 0' l- [.. c) 00 00 O n 0, N7 M 'b c00_ coo M O co a N O M M M } b O N O a0 O, 700' N NI W O,— O V a 000 N in In o n O 0 0, c0 O— V) V) �C co ro N N 61 00 M CO.. N LA KZ R N N N N N M ro 6R d p ca N N N M M -��, co O M N N N 'd E O co M 000 O M M N Q N a) L ro M N M Vr CO M N CO cD L 0' O CO.' V) 0: M 0 V) M V) N 'V) ,O O, O CO 0 O N M `q ,--. .--. .ti, 69 0 0 0 0 0 o N 0 N 0 N N - 107 - Last Five Fiscal Years N N 0 0 0 0 Q 0 M CND) CO 't Q CO 0, CO N CO N ,C ' CI O V n co co l• — N v7 M 64 M NO V) Vl _ '0 0, co c0 CD 0, cD 0 M O vl N o c W W v) O (-0 M C) Q M N oD W l CO SO N O. vl M V Fir 0, O+ 0+ M in ,--- 0, ol c0 Q O b c N Q co- V l_ N_ QM M ,�-. CO c0 O ,O Q �Y M cM ,- . b4 CO V 0+ CO CO N '.--. C-, C) NN 'Cr `O Cr 'Cr [' 07 N N 0, O V `O O V Q N 0 co" 'd' co- co- — C) N 0, - co n M n N N n CO n M O O 141 di- M O ,0 CO- N N0 Cr) Cr) FJ) M_ N ',O N N_ O t O cc00 0, c0 �O cc00 N V ,O N N NO N V'1 ,0 M N N cfr 0 1 H Economic Environment Mental and Physcial Health Culture and Recreation M '0 r) co co Vl V 0' M NO NO 0+ 'Cr Q 0* CO Q O '0 O n 0, '0 a CO V) V) CO Vl N. N b 0, ,O V') cO ,0 0' n Q ,O M Foster Golf Co 0• M CO '0 co CO CO a O o O M co O Q O NO 07 O V) 0' M CO if) ir9 O Lao 'O 0. 0' '0 c0 W M Vl FJ) '0 '0 0• r) 6• V') b4 Vl O 6• O a 3 A d co 8 4) a) N 0 N O cO cc00 (0 M v) '0 t v7 Lf) M 000 V N cO co n ,O ,O O '0 Q vl M l� O N c0 0' V) O D N CO_ M c0- C)- l - 'O c d- M — V Vl Vl N V) N C••••.„ I� a 0, O N O O O vl l - M N c0 c0 NN - N N QM M M Q NO CO CO V) V Lc) c0 sO o0 O O O O l� V) N [� U 00 c00 N O 0• M c(0 0, M • ,— O V) [� co 'd' ca Q V1 Vl 0• 0` co co N O O N. 0, [■ CO M s N� co O M co V'l 4) d c� a Physical Environment -108- Last Five Fiscal Years 0 N 0 Ln 0 0 0 0 N 0 N N 0 0 N N '0 0' N Q 0' ■ N O� 0+ v N_ V N V co 00 O' co M S N ,-i v C Q M co" NN 0 M V ' L"-%, O Q '0 CO M N V N N V) M co N „ M O ' O' CO '0 co t. a t. V V 0- 0- VcM0_ co N V CO n n Q O+ 41 N t c0 O 0• 0' 00 N CO 00 00 N 00 41 00 0 m ' V1 CO 0 O+ CD t- V N %--■ '0 00 V'1 •--■ t-■ O O, M M 00 00 N 00 M v V', — N 00 t� O CO 00 Q V co' 0+ 00 �O U'1 CO ON ON CV- c0 b4 0N' an N b4 M Q 54 V O CO 64 Q '0 V1 V CO 44 CO 0 0' M b4 In y N a)) N 1)) g4 04 o N p2. a N g. fz14cD 0 O tb q 0 0 O N P2 o � �� i. 0 F CJ.d rig b � vi n) . \ u F. F. h F. 'H�a '� y y oo �a c 0)V w�OV� i H GA t—' F. Net (Expense) /Revenue O' Ln Ln t� t� N N 'O '0 ental Activities O' O' lf) l%) bg General Revenues and Other Changes in Net Assets 0 '0 00 0.4 -4. CO , n 000 00 0 c0 N Q '0 01 '0 N vj c') '0 '0 n t� Oco co in NO (NI N N O V 0M CO N t M c00 t O V CO O V V t� co 0 co 0. V CO O^ N V In 0 O O N - - +-- O CO N V O '0 NO N NO 0+ V1 '0 co V O 0 In co in -- O 00 N. 00 co t� 00 --� n M O N 0' N- 01 M CO N _c00 N o� Q O N '0 CO t� - t- t. ON O. '0 N ..0 N 00 00 O 00 CO VI '0 N n m co v NO N Or. O 0• V O co O• N O+ O O 0• co O �0 N V O N d' co t• Q N N V N co a co v-) 0. 0'0 O tr) Ln M CO M N a N 0 CO u1 t,, •-+ co Nor N o4ov � c Ln co') M O, V1 N Natural Gas Use Tax Hotel/Motel Tax -109- CHANGES IN NET ASSETS (a) Last Five Fiscal Years O O O O O O M O O Q N co .t vl co n c0 0 0 c0 N — M Q Q N `O N. — vl N — vl +O v7 N t` o co., O N 0 ' c0 O Q 1- N `�O O N . — co c n () Unrestricted investment Total Governmental Activities O '0 c0 c0 Q v7 `O Q ccO N_ 'O 'O C�) O• A c0 N vl v Q N Q N c0 Q O O N co O cO co N ON v) Unrestricted Investment Interest O Q 'O 'O co N co- c0 O 'O Lr ) VV' 0 c00 V 2 M N N l� Vl co '— .0 U N a 0 0 cO V N O U 0 o0 N ,--� O� vl c0 1---. 4 c° — so v N_ N CI. N co O Q C') 'O Q `O 0 vl n 00 Q O 0O P � O cr V V O O N V ON ON v) N 0 co 0. 0. ,--, v) Q o V c ON 0 C' N O 4 Lr ) U CY) O G _ ) N CO 0 co N: 45 45 Q 45 � ("2 vl v .•- v N U O CD U U U U co N. 1.,r) co U 'c1' `O ,— CO N ,-� O N c0 cO V V c0 GO V) c - V) O` t` Cr) O, .-•, '0 CO Q `O .--, Ill N N O• Q O• N. Q CO 'mot Vl N � m Q V m 1 C) or) M 0 'O O• V O V l� co O +O so V N co 0 c0 - O Cm-) ,-r ,-r N () M Cr) U U c0 — 00 0 N.. Cr) CD U CO N. ,— `O ,--- sO co co N co OF N. c0 v�l Lir, co co- V (co N_ V) [ . V) t) Q Lr1 co O Vl — n ,— n 45 U Cr) —, .-, ,--i C�) N Co) Business Type Activities Prior Period Adjustments -110- All other Governmental Funds Last Ten Fiscal Years O F d P4 Unreserved N n M VI • V .. - Lel o, '0 n n NO C4. M o0 v. V 2 V..1 M V N M 00 O N cv oa00 O On N M Lel O M • ON cc n c a r Q VI c0 O 'O cV N M .4 in t� o0 EH N N .0 M V ▪ M M O M N M N M o 0 M O N Nco N 0 N N N cc00 N ON • O,- M O,- O N M M 0O 0 O O� O� .O Le 00 — co .0 �n o0 O Q 0 O O M M c n Ln Lei in n ' O ss M ---. N - V co_ ▪ 0 M n ▪ ' M 1. N �n O N O - in 40 t" c0 1. c0 lr) ON 0 U 00 0 N V M '0 M cp., O U [, V c0 O l� M 0 ON c0 00 O M t") � V 00 v oI 0 v1 00 VI CO '0 n CVO .- -. O N - n n 0, 04- n V 00 V M O a O N V M '0 M N Lf V `0 � V o0 O N. M '0 co' co a0 O 0 0 0 O O 0 0 0 0 0 N O O 0 0 0 0' 0 ,r) N N N N N M [J - — n ir1 ,O v1 0 0 0 0 0 0 0 0' • O' 0 0 0 0 0 0 0 0 (a) All amounts are reported on the modified - accrual basis Qn O 0 O S O 0 0, 0• co a so CV W 0 0 N n O. ,-u 0". n) 69 V CO N n • V1 N M M P n oD W N O U O O Vl en en eri op N 0 M CV M N M CO CO CO ,C7) n P n CV O n •O M 0 Q •O O O •O '• •O Q +-. V} N n N '0-- M N c0 r+ CO V r- .--. r-.: 0 c •.O co c0 0 O. O M p.. CO O 0, M O. .4 O N co N r7 n •O V) .O�qq N N co, NN O• Vogl ryN7 +N+pp co n [� a r N O O U cc00 ccO '0 O 0. co O 'ch t c0 0. w c0 •O N O• 4,1 N c0 O CO V) c0 c0 •O CV M c0 N b M 00 c0 cn en 07 — 07 .) LA" N N Vl co co co O O. O. N N •O N N M `O U N M O CI. U V Or�. •O n M V) O Cc) CO CO CO 0 nCO CO n CO CO V N CO, N • O O • 06 .O o 0 p0 p n a 0- c N O A +,v co M O pQ N O. N • O n N N N CO cc U V1 O• n 0 c0 M M N n N O N N N N ,--. Vl r) Vl co O cv. Vl n 0 V A b V1 O V) CO Vl a L-. N C V O M N V b N O O N O c0 N N M 0. O N Q P co S o O N V)) O 4� W V M •O N n O Lf c0 .� CO •0 Cc) CO CC; O O O O. V oD O• O• O• N N M M n .�v V •O O. •O n CO 0 0 '- CV VI 0, p — v., N O. b b � V N co U n U n co `O M 40 pU N •O 01 4 O Vl .O N N N CO M •O .�v O O• N M Q V •o VV1t `O Cp... irk �j V ce M O co O f0 LN") cc00 O rn i •O P -- CO L'r) .— n .�v ff O• -. V M co cs) O• en O ( 0 n Vl Vl U O O co . 0 N M M 0 n V n n 40 M co sOO. V co 0 O V/ c0 N M M .-- c0 N •O 'O V) V M M N O•M-. O• 00 •O O M n N N 07 07 07 k■ V [V •o CO ° n v 40 [[VVO MO V) cf. CO N Vl v co C- n O- N., tv cO V) 01 O V 0 • 00 N c 1) L-. cD L •O •O n N N O• n ON. OM •O .--, N N .�v c0 c0 O O. V M 0 •O L/) V) 0 O cf M O c0 M M Vl en •O ,--: N" N (F) n O .O O •O a40 N. O n U Cc) O O - U V Vl .-. .-. eV- •-• LAY M `O V Vl N n V co LLj co p0)p O •O � f� O O `0. JN co O -- 4� V V V cV -- 07 7 n O O CO 0 •o N 0. in O e- O' co co r7 U n .C!. N M 'cf C.4. ss ~ 69 tel 6`i 69 00 0' •0 N O n cn.. 0 co N N x. 13 O ZI N E b C7 0 o og cd M y 3 ,gy .b. ,, a G 0 13 0 A A R. q2 F- .., 0. 0. F-- O Ll U o y, C4 W - 112 - O O O O N O O O N O O O a 0p� e» tv - O O N l 'n O M M o0 Vl V1 co N_ O. VI V -O V 69 r'/ co 1' '0 -O N in c. A N c-1 M N E: l v) $ 17,139,770.00 5 21,262,501.00 co N 8 D [� L.; P 'O O' CO n V 69 ✓ M O a0 O M N A M C6- c+) N co N C7 N V N co cO co O 411 b Li, N �O O V�1 V V1 - a0 M V co N 'O N co to to v ▪ c') M V1 CZ N. N ▪ vr 69 V3 .N�. .M. CO C) • VV1 O 01 M O c0 O O .0 V 0 M p,, N P V V N N 69 4 69 O n U 1'- et) 4 U b 0) N �' w 0 o g W IA I''. H } ba 8 Pc Pc 4 PI V o z z (a) All amounts ate reported on the modified - accrual basis - 113 - (Amounts shown in actual dollars) O 0 N P P N M `NO O N t M O. 00 n n O CO V1 Ill CO, O N N N n Ill �O t co c0 cpo. [� co N M No N Cr:, NT `O M VI P O N 0 M --- ▪ N V • a 'O M VNl ▪ t co V-1 8 g V co V n co sO V �-+ O' M I- O• • CO amp O o0 ▪ ,O P so M N O Cl... CO O• V V'Y n O N ---' ,-. l N M uN1 CO VI o O oho 0°OO ' P V e V . CO. l� ,O M U P O n N N N `MO V 00 M b V�1 P n N 40 4l CO 'O CO 4 O O N O ,O N N �^ 69 CV `�O 0 n `�O� N in Oo P c�1 V'j 00 P P O co- V O 00 N -�" Ch MM O• co V N 0.. .-. P M( 01 O ■l N N •--. 69, PN O t P O LE, P O co N O P t.. O.. CO N V1 V1 Vl Vl N V,1 Na— Os `0O CO P `0O P M 0 c0 a0 of V1 VI N N r-' Os V-1 N '-' 69 CO P M P V N - N V V N `O N N. V-1 00 71- N M `O `O M • V1 [A co • n co 000 co P M P o N +O 00 'O N M 00 M `O `O •--' M O M t� `MO P N OD a` +O Y-: 69 00 O M V N M NO 00 00 N • 00 .-� c M - co- co- 69, u -4 M _l P ,o O• M N O l ; 00 �O c; — N. O 00 00 Ir1 N `zr V1 00 *-- V 0D O N U CO b V 0 00 c l 'O (N�7 p 000 O 0000 '0 N in.. � ap V-1 0. O 0 0 0000 co V h 0 - N 64 Ir l '0 00 00 'f t` 0 V1 co M M O N M n - N P � h P `0 co 0 O ▪ n O w' CO c.... co ,_, +--' V'1 N i\ 69 01 ell Hotel /Motel Taxes H m CD w Real Estate Excise Tax Business Taxes: 34,624,875 $ 37,801,814 $ 24,007,950 $ 27,464,227 $ 30,930,223 $ 28,944,529 $ 28,156,041 $ 31,986,222 $ 34,148,173 - 114 - PROPERTY TAX LEVIES AND COLLECTIONS • Statistical S Last Ten Fiscal Years (Amounts shown in actual dollars) O O O O Lf1 0 O O O N O O O O ■ 0 O O O CO O+ O' N l'. OR O, '0 OR CO N M O' M CO - O0, O - O o. O O CO M off' o n CO o n 0, O' c� ) D 00 O' 00 N O , 0 0 CO OR V) CO OR CY n M O O' 'cf. 0'' O' O' t.. Ill n 0 0 0 co O 'o 0' a N O o \° O, In OR CO '0 O CO oo o 0" N OO' - V a CO v"7 ,--- 'o o, 0' o' v in o' o [� 'o N 0'' O q in 'NO O` O N O' CO N I--■ CO 0+' O' a ,- a 00 in oM0 N o \° n co • vl t".. OR in N o co , OO', co 00 o`er' t wo cp.- o a 0' N , -- O' n n n N in OR CO 00 0° 111 O' 00 M O' CO O N 'O CO" t` n r•_■ O, CO '0 t O' N '0 O' co V t` n Percent of Levy Collected Delinquent Tax Collecions Total Tax Collections of Total Tax Collections H 0 H Source: King County Office of Finance - 115 - City of Tukwila Statistical Section ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years 43 4J 0 H A Total Assessed O O .0 1, N o c') ,� O O Vl CO .o Vl ,� O c') °O °O - ° o - co °v 0' o co Vl 06 06 c`) Ni N M M M N N. N N t Ul O N ,0 - n O co l . l . NO l� Vl [� Vl No O co- in N V O 0 N M V v) NO V7 O l� O V7 O. N n V O' co O t O v7 N. O co V co 4 .O 0.. t N N co-- co c') CO r) Co- M V co N V in c' c' O� M O co N_ Co ca. op N O n Os c' '0 v7 O 0• 0 0• co- O_ N V Vl l� ,--� 'O N. N co 0 v7 o Co N ,-, L., ,.., V N v) t N 0 O ,� '0 n V v) N 0' ',O CO l� NO .0 co ,-, N in Vl 0 O 0' CQ '0 M N CD 'I' a M O O cO cc') O O N. co- 0, "q O is) ca v O in — T. O 0' O .0 V l� l� N O� V4" 71 VI co `'00 '0 V V in CO O N [". O O Q 0, 1. �f Val '0 N n O� N co n vl co- vl N v) c') 07 O Li') n Q co v) N Vl M O co O,_ N O, v) c') eD N N. 'O l� N O- in N 'O O0 M .0 O M A v) t.... O, co N N N N N N M M M a s oo oo oo o o o oo oo *Rea4 personal, and state public service property have been assessed at 100% of the estimated value. Source: King County Department of Assessments - 116 - H z 0� R F� V fil o, 00 a; A .4-4 ° °= � w O � a� E. V8 A t Flood Control Last Te: c) N V 0 N Q, 0 "o [. 00 0o co co a O Lo - o O V Na [� 4D V `o 4D V) co V) [. N Vl V V C) N M M M N N VO Vp co C. r) V) ti V Vj kr) in Vim) CO CO 0� 0, a a QQ+ O Q Q Q Q Q V) V) Vl O Q O O O O Q Q Q O V) CO 0 CO N N O CV CD CD 0 0 0 0 0 0 0 0 0 C; C; 0 0 0 0 0 0 0 [. N. [. V1 N [. V) N. V al- II") _N r00 N. cc0 CO V � `O Q V in V) V co co CO D; in CO O O O N. [. 'O If Vi Vi V Vi V) V) V V O O O N V) V cc) co N N N N N N N N N M O O O O O O O O O Q co ch co co ch - O+ CO V) kr) 'r O co co N N N N N N N N N O O Q Q Q Q O O O O 000 kn o co - 0, 00 co c Q `Y00 CD v v 1/o [• N. N. a"0 ` N. ocf.) o; Co N. r-■ N CV CO [. N O COO Vl co c co a CO co V rQN O co a V co a co co c') +--- O+ co N. 'o V co .--. M c*i c*i c• N N N c)] c•] c•] O O 'o N. V V N 0 CO (73 O Ill Cc) '0 V) O CO ---- Q Q N Vl O C.-. C.-. C.-. O 0, Q O V _ O - cr V 0 0 C:. c0 V I c+-) C') cr) N N C) Cr) cr) N N 00 00 00 °O O° Q Q O Q 00 C) °Q °Q °O ) (0 QO 0 °O °O Q c O, 0 0 o Q Q 6 6 6 c' c CD O 'o N. v )- NI c' .-• O O V) co 'o Lt-) Q co .-- O O N V) O N. N n O D, O O - V O co V 'o ^' O+ 0, 1--, O CO if) cr) cr) cr) Ni Ni M CO c") Ni Ni 00 OO O N 147 ',O N. O 0, O CD CD p O O O O N N N N N N N N (a) Includes King County Library District tax Source: Ring County Department of Assessments 117- December 31, 2006 1997 Assessed O Type of Business 0 0 0\° cr. - oD N M ~ 0 141 ,0 0 OD N'0 ,-, c N 0, 1.4- 0, 0` 141 N� U'1 co 0 N ,--, U1 N • 00 00 64 in NO ,O Uf N ,O oO co N ,0 OON , - �QO00 -- .-- '- ON O W0 01 d' 000 C" 0 --� op N0,0 0`— 0000 NON V lrl O lr1 N ,--, co NT • o) O NO 00 U'1 0 In N N cO cV 00 cv Q 1x) 0 0 0 00 140 lr1 N 00 0 01 0001 "Kr 140 00 N,0 co cO ,--, n c') N r, N N N ,-- ,-- 0 0\°3 0 \°0 gee8 :e e e.8:8:8:8:\ °0 \°0\° 00 01 ,0 N0") 00 00 0 0N,000N "StN 1x1 .-,,O00 OD OD U0 CT r, N cO N N NO O ,O ,O 41 V1 -sr oo oo N O N N — Q Q Q Q Q O Q Q Q O Q O O Q Q Q O 0 0 Q ,-O Q O CD M Q Q 0 Q Q 0 Q a Q Q 0 Q LO 0 Q 0 • oO0OM ul - 1.41 Nd- 00 NO,00O -- N,000,MOO"st n 01 O l/1 ,o Cl N N 0 O n OD ,O 0, ,O U7 N WI 00 O N U1 V1 0O 0, 0O o d- U1 N 00 D M ,O 00 ,0 0 ,-. 0, 0„-. N 01CD00 QM,ON,O O, ,O cT 0OU1M CO QQ,olr10 NN 4,'1 0,U,O,OU1 0Q000U'1 N n • 00 00 gDU1Ul000000 04 0.4 01 04 N01 NN 6g a�"i D 0000 0 0 00 p O p v,aaa �aita ova v u 0 -. -m 0.. �r.c� �r `0 u a1 a s u a' 0 C 'u 0 Ei a1 u C7 �1 r� Ci ki 00 0 - 0 ° 4) . a) 0 0 - 3. 0) ▪ 0 a1 A V V V V V V V¢ V w A a v1 a 050 LLC /KIMCO m 0 C7 0 0 A v a1 ..0, 0 b 0 V N au1 a�i CO 0) 0 d 0 (0 awi V (I) .4 c� tiA a 1 0 bD V V b 0 M a1 m V o a °P. ° o o as Q �y c�, a i w N id bo x rte. ° a1 E. H ° 0 ai C, - Q1 .~ -a a o 8 ) - o a1 0 R W C7 U a1 O Q 4l 61 0 �" �+ �..� 0 c, ° x w 0 a1 I, cci V co � go � � O u O Home Improvement 41 "t N N -- ,-- Lol V) V. V, ' cb a P Ew 000 V V V d^ w a F-, _ un a1 f� V 5.00 r)xaa°v1wr 0 0, N ,O 0 64 Source: King County Department of Assessments ▪ N �o a N ▪ `r1 h N- u-1 as as 0 ✓ a m m m m Co Ca O 0 4 � 'Cs b ro ro o g N � ti a -118- RETAIL SALES TAX COLLECTIONS BY SECTOR d 3 (Amounts shown are in actual dollars.) O O O O N LP1 0 O O O O O O O 0 0 0 0 O N O' 0' 0' co • O' Vl U n n M 'O V 00 4 0 '0 0 CO n _M O V V V N n N. 0 M O N O c0 V V O M (0 O d f N c0 O 00 c0 V 0 xO N N. n co N p 0) V n 0' M U 0 M a Vl V V ul co n 00 O n u N O N N N '--' ^ N 69 0 n V M c0 V M 'O N Vl V M C., n V 4 n ^ Cl Vl V O f- N (0 N 'O c+) N. cV 'O U V) M V 0O (3 V' O 113 k/1 V Ol n O V V O 'O V) 'O c� O co N N NN N r. r. 1-, .-_. N. 4 c0 M c0 M M v CO Vl 'o P N n N (<1 n O 4 O Vl n c0 n O n u V Y V n n _ Vl N O M n V) 0 'O N CO' V n M N n 'O N 4 'fl U O c0 N. O O 3 M 'O V O. M n 3 N. O f-- 'O Vl M M kn.. M V 'O O O' 0) P V N N N ^ O '4 Vl 03 4 c0 V Vl 3 t� Vl P Vl M_ O' n V V1 O' '13 O' 'O NT N n 0 •7 O N O V1 'O N n U Va •O U O 'O V c0 Vl N c0 N '.pp t'- N V Vl Vl n ^ N O 03 VI •O 09 VI 3 V co •0 n 4 M V M 3 V) c0 Vl W CO O' V CO 00 VI V N N O U CO V CO V N Na N .-- .-■ .--. fn VI N V 'O U N n 'O V CO CO O' Vl N. Q n U V M CO 'Q O' c0 'O CO c0 CO VI 0 a 13 n 'o o I CO CO o CO" c; 0' 0 V 4 n V1 V M n M f,- VI 4 n N V) N n 0 Q O N U CO .g `0 CO O O' N CO n N co n 0 N Vl co k/1 N N N T. .-. 69 N 0 O' 0) co 0) N M '7 co f"- O ^ M O kr) n c0 0 '0 n O 0 N O' V Vl N.. U P N N 3 N O 0 n V O' O' P n M O Q 4 .�. v1 n 00 N Q N CO '0 a Vl 'o n n n co 'o N � n a O' V1 co M V1 c0 O c0 n n c0 M c' N N -. •--• N .-. 'O N N n 4 .0 N 'O M O 'O ^ O O' LiO c0 M N O O O - 4�N 00 O V) N '0 a A $ O co co 'O O O 0. 'o 4 n N o' CO N. VI c0 ^ P n '0 7 c M N N ^ N S N_ O n 0. n 0 N ^ P 3 3 n O Q O U 40 3 N N Vl n n O •0 N 0 O '0 N CO O' O N 0 03 c0 M O c0 n 'O n 0 N O 'O ^ n O. v .0 Vl M O V1 'O O M O' 0 'O N n 0 V) ('7 n n P O O. n 0 V M M M •--' N '--' N .-. va f"- n O O N N V O 0. N c`'7 n N M Q N. •O '0 O' 0 3 O. � Vl M N N •0 c/7 c0 V .41. V) n V1 v7 _ Q 'O n '~O N N O. O 0' N •O c0 N 'O' 4 c� N CO CO '0 N_ M 'O N M cam!) N N 'O CO n CO n n n O. 7 M CO cy c'j N N — O p c0 Q 'O n O P N M - n N c•') N � `O h 4 N. 'NO (0 P' NI c/) co.. N N .--- N cO O ^ n O N Ni- n 4 M c0 n V) M ■ n N, n 'O 0 '0 O n N. CO N N 'O c� 'O 0 NO f7 '0 CO V N N N N - .-.� 69 Construction and Contra Retail Trade - General Merchandise Retail Trade - Retail Trade - C Retail Trade - Restaurants Retail Trade - Automotive /Gas Service Industries - Business Service Industries - Hotels Service Industries - Other All Other Categories $ 16,763,909 $ 17,847,930 $ 19,415,583 $ 15,844,163 S 18,488,337 $ 16,008,755 $ 15,165547 $ 15,842,959 $ 16,183,887 Total Retail Sales Tax Collections Sources: City of Tukwila Finance Department and Washington State Department of Revenue Note: By State law, the City of Tukwila is prohibited from reporting individual sales tar payers. 119- oe oe oe oe ae 3° O O O O O O O V O Vl O O O — 00 O 'D O O O O O O O O O O O O V O Vl O O O — 00 V o0 O .O 0 0 0 0 O ato. of o° of 0 0 go 0 0 0 0 4:0 0 VI O W O O .O 0 0 0 0 p O O 0 O 0 O O O O O_ V O Vl 0 0 O_ O O O O O O O O Oe OQ OQ O O °. 0 0 0 0 0 0 0 0 0 00 0 � -. V o0 0 O O .O 0 0 0 0 O 0 0 0 0 0 0 0 a�0 O0 0 00 O O .O 0 0 0 0 O 0 0 oe � oe oe ae 0 0 0 0 0 0 0 000 O - ',Cr 00 O 0 Eli o .o 0 0 0 0 0 02 02 ;ER ae of 0 0 O O 0 0 _O 0c0 O O O O '0 O O O 0 O o 04 oe 0 0 0 0 0 0 0 co 0 °v, 0 0 0 '0 0 0 0 0 0 ae 'ER a oe o 0 °� °o ° 0 0 0 0 0 0 ° CO v, 0'0 0 0 0 0 0 Regional Transit Authority Criminal Justice Department of Revenue Administration Fee 8.800% 8.9000% 0 coO O W 0 so 00 Total Basic Combined Sales Tax Rate o° oe 0 0 0 0 0 0 vl 0 0 6,e O O O L.n 00 O M 0 0 6 ti. C 03 R 0 O h N 03 ti N O CD .Q ' CD b , Q ') c m t 0 0 o 0 ., :a m ro o w o a, ro 0 `� `k cu O O h .2.; Ell O b 5.1 En y t m --.E., p� m •CW cy O `" ro N N h ti O tn 0 b 0 o ca o 4.121 •S c ° ro ro :6-, o ti o 0 m En o u m m.Z 0 vo ,Cr) a °y '� vi m ro 'n n> C; m o .r Q Q.) o O , o '0' RIQ 'e U ° a c ,ti 'E L 't1 p N O ..�U„ Q U Ed C A O y 0 cq c 172.3 '� R a; O O O C U `°G ti 5 ti o `„ o c"i o Q b N m CZ) N [ a 5 C 0 °1 a V v o.) AFL 4 .o b a cv 0.5000% 0.5000% Motor I Source: Washington State Department of Revenue Local Sales and Use Tax Rates. - 120 - RATIOS OF OUTSTANDING DEBT BY TYP CO ;14 3 O O 8O O O O O O O O O S 15,847,000 $ 21,628,591 $ 20,806,553 $ 19,775,262 $ 18,881,798 $ 17,946,335 General Obligation Bonds Special Assessments Lr) °o 40 © N. E"7 u-? E in o, �O © n O a v') O G V M N co o vNi � V 0 n U') - --- G M A co O 00 co N N 00 V U"1 G o O so U") co V N U"1 c•-) cl, co G n n co O N. G G .-■ N O• V M. CO O c[.')) M Ln in V n sO Ni O V O 00 M R. G P Cr in r') N a O 0 so - En in G M N l' so ) sO '0 c .... O u1 V .^ N 0 00 •) O c.... N .g a0 M1 cO lO Ln Ln u-) O O 'O N pO O Lno- G O O O 41 ui 5 a) General Obligation Bonds 0 0 M En 0 N- 0 • a 00 'O �+ 1 O N 0 O (NI, N. sO Revenue Bonds 9 U 'O O Compensated Absences En En ,o 0 N o. O N CO a CO M 'O W n O CO 0' •O O CO O co O N. n Eft Eft EO O 0 0 Total Business -Type Activities $ 21,751,767 $ 23,308,106 $ 22,230,245 $ 21,149,677 $ 32,769,577 $ 33,014,369 $ 33,115,133 o " o o 00 O Eft CO En a 'O N E1 ) 0 a _ c0 n n 06 'o G or) co o 0 --, (• 0, — G 0 N ry. L� V N O O o° C", N N N n N 'L 4 N — CJ C CJ 64 69 N y 0 0 PO N. 0 P 0 co U co N-i V N .r ro 0 0 Err v3 • as 0' m U v 00 N in 4l ' C•. d O •-" 0 Nt co V 0d O ' v a 6 vili *+ O N.. 0�0 N V V E •C 'd E w V ri w X ro c, . O 6R 6R u O 0 _ o° M D A O a, v co M N ro 4 R V a0 N b .u_. 0, q M -, b 0 v3 E» 1111 P'8 ta 6E �q a) o o +-' co U Q E- G a � a Ev ^• by ro o CO V CO CI) o U q F. o OA 6y a a a R - 121 - Ratio of Net Bonded Debt to Assessed b d z O A A cn El 0 2 p2 a3 CO eir O 0 w iq z a; w 'd A a 2 w A F-1 PA H a W4 V.1 0 O H R .a 0 0 V E Gross Bonded Assessed Value N CO 111 N Q N., C., O V1 N o0 co O• M NO CO Q 0 ON CO 0 0 oe as 0 0 R. o 0 (r1 NO CO CO -- N (r1 l! 1 V L 1 in in 'q- C; a a a Q o 0 0 0 0 O 'O CO NO c0 CO CO CO Q M V 4'1 NO N n CO CO NO- co V [� ,O v7 in cf1 CO CO M N CO co V U1 V V O O Q d Q Q Q O d Q Q Q II, LL N N N l� N� OD l' V Q V1 c/l V V V N 4 N CO V c0 _ M CO M r CO CO M O N N Q O CO O O O N� CO M CO CO Q Cl„ Q Q Q Q Q o d d d t QQQQQQOOCN. O O NO CD Q Q Q Q N d 4o V n cci Co cr N O V V M N v.) CO P `O V V'i V N N N c cin- N '1 -- -- +-- --° N [� [� CO N (+1 n N N n V Nn O N O [� CD CO - N� '0 N 111 N . 0 II) % q O CO U1 V O M CO M (r) N V Q c> N 1.1 CO 'q- r.() NO Q N. Q vo" V Oi" V O_ nIc 1f_n O CO 'IT CO CO- CO `O V N CO M CO CO CO- M C9 O Q O— O d d Q d Q d C> 000 N N N N r--, CO CD - - -- -� --i - .._. O CIO i+ CO ON O N CO V 1.n `0 0 n C. 'J'i CT ON 0.1 N O O N O (al These amounts are the general obligation bonds that are being repaid by the Foster Golf Course Fund. on Office of Financial Managemen4 King County Department of Assessments, Sources: State of Washi and City of Tukwila Finance Department - 122 - w O 4) Ja 0 p. cti z 0 V c -- O O V") cO N cr) CO N N N c0 N co V') CO- e. 0 0 0 0 0 N N cr) — C) CO Cr) O ~ N co Cr, O -- co O 'O O cO so co n n O co" [� co N M N O [s. co co 5 cd V V to to (8) Port of Seattle a School District #406 Total Direct and b4 co co 'o Overlapping Debt: Sources: King County Office of Finance, King County Office of Assessments - 123 - z 0 O LEGAL DEBT Last Ten Fiscal Years 2004 2005 258,084,264 S 270,791,907 24,866,638 23,407,761 $ 2 c0 '0 v t c0 '0 N n Lel V pO n N FA a4 $ 271,600,018 $ 310,580,037 $ 208,483,169 S 234,649,276 $ 246,270,170 $ 227,447,8I6 $ 233,217,626 $ 247,384,146 a) G a cr) N n N 64 al Lel 'O 0 Legal Debt Margin Calculation for Fiscal Year 2007 $ 4,450,243,674 $ 4,450,243,674 $ 4,450,243,674 $ 4,450,243,674 S 4,450,243,674 $ 4,450,243,674 Lel U7 N $ 333,768,276 $ 111,256,092 $ 111,256,092 0 co co N. N Q O V O 1/) W .0 O .0 N n 47 I 0 W cc) W O ci a▪ ll N c0 N ci. M N N 0 C c00 N ▪ 0 0 0 O In c0 .0 O .0 N Lc, al O N V � 0 N ▪ al c0 0 c+) ▪ Lel N NI N N N 88,067,852 $ 111,256,092 $ 111,256,092 $ 310,580,036 v O 4 4 0 N. 00 N 0 0 0 - O all c0 ‘0 O ‘0 N V 0 • 0 [' - 'f (0o .0 Q M tt c!1 N 171 NI N N N Q d 0 g 'b CJ 1:4 ' A QL) • U O w • c' _ u R a.� v i Q Q 02, U � ._..I N • U Current Taxes Receivable Remaining Debt Capacity - 124 - Last Ten Fiscal Years Net Revenue • C_7 .J +F O a.. Debt Service IA "al Cd a, O N ,— CO N ,0 ,0 N 0, N l� V1 -- N in 0 V') l� M M M M -4 V') t M 01/4 ,--, ,--, ,O l'1/4, 1/40 141 01/4 N M ,--, 1/40 O M M O. O. CO ON., N O ,0 ,--, ,--, N. 00 ,--, l� N r N N co N ,--, 0, 00 ,0 �' O cO t.i w ro yU N N O o0 ,O ,-, N.. N.. in co d` C 00 0, L-1/4, ,--, V7 N.. ,--. b 0, ,c) N N.. O co ,q O ON CO ,O l"`..... 00 oO 0:-. 07. ON'' O `O M 00 0, ,c) V1 co N ,--, ,--, ,--, rr o O ro _ O co `0 O ,--- 0, O 0, ,O c) ro O^ N in N N ,0 O O Oa L, R co c co M M M N co N N b O a, x� N O `O co in - co co o0 � O M to n ,--- 0 � � N cO O N C R. OM,� 0 N � � [� O CO CO CO ,--- N N ,--, ,--, N N W C ro OS L. O N CO N. ,--, 0 ,--, `0 N. V1 4 O ,--, L '0 Cr) ..j- `'00� t b co [---. O co N. co l--„, r v C k Cron on N ON M C CO N 0 0,, CO (0 Cr) CO '11 l■ 0 N •cr VI CO CO °D o 0 N 0, 0 0,_ co 0 00' N O c3 ,O 0 l� O l� l� [� co- 00 U V 'ti ti 00 01/4 0 N 0') 1/40 C- 01/4 01/4 0 0 N 0 0 0 0 O ,-- 09 NI NI NI C9 09 09 Sources: City of Tukwila Finance Department 125 - DEMOGRAPHIC STATISTICS Last Ten Fiscal Years a o V 0 ep 0 0 W Personal IncomeN 0 0 ar Ln O: co o O -4 Lri \O OO OD n 'O Lri L.ri a) Rs 'CI Q N Rs E ccs a) E` .1,3 O Ln '0 n '0 N VI 0, 'O `� •U a N N N N N N N N N N +13 ay C V O ai vii m o ctl c O W NO NO '0 NO 'O '0 n n N o 0 ON O, 0 O+ ON ON O 0 0 0 o 7,5 ro .-- .-- 'ro co Q 0 E-- •� U _ _ ° °' 06 `- �5 '0 CO '0 EL, co '0 M Oa M'0 U N w _. w t_ N co co c E` E` co o0 ro s, m co- M co co- M co- M M co- M o o o 0 m m o m 4 v`� ro m a o M U) ,O N o0 ON O * ro y CO Ln�� L!j if) c) O O� *k' m Ui 1� C h o t; n N '0 'f '0 V) M ° ro E` m U ate, Cai w v w Q Cl.) — ro .° R �. i.. m q Ca v M Lc!) O Cr) OOD L� I -*k t A Lr `.. ( r • c°j N N [� [� Ln n k h q z., :; vi . • . :d c O I.-- roi R `q ro k m m '� R R VI- m u ate., O 0 O O O O O O O O O o , � , ti LI c O co co t-... -- co O O� CO N N N N -- T O r b `', O to ro <\ n z. ° t N N a! Er m o ni o c ro ro ro q OD ON O ,--. N CO Lry CO l� U V + O ad Vim, 0 0 0 0 0 0 0 0 ON ON ,. w y ,, co 0\0%00000000 W q� o o - 126 - H m 0 0 0 W u .. m U 0.... O ob 0O 1--1 l. ;.1 W O 4) CO � w N N 0 z a PRODUCT OR BUSINESS O P O O O '6-9. O O O co c) csa in co so csa O, O Lf) Q+ L� ,--, 0` O N+-+ . O O O —, O — co O M O Lr) o‘ `O O cO N N.. .- co vO O Ln 4 't a o 0 0 a a co O t o, o, 0: `o N o o 00 00 00 L� c0 N O O O O o CO CO c ) Cr) co- Airplane company Boeing Company Data Ctr /Lab /Pharmacy /Mfg. Group Health Cooperative 4) O Wire /Cable Connectors Heater /Air Conditio Department Store Health Care Administration Group Health Cooperative Credit Union Employee's Credit Union 0 Department Store JC Penney Company Department Store Nordstrom, Inc. 0 o' in00 � 0 0 w ro W 0 co O co TOTAL EMPLOYMENT Source: City of Tukwila City Clerk's Office - Business Licenses - 127 - O O O O O O N O N O O N O O S S O O O n n O 0. c0 Vl cV V V 0: c0 O ,O M O: V '0 '0 M .-. M N O 0 0 0 0 0 0 0 LI 0 n O N co '0 1 1 t o CO o co - o V ' '0 M co) N 0 0 O O 0 0 L0 0 Lt) v 1 0 0 0 0 0 VS 0 ) V'1 n n Lri c; uj V V N O op M O' V N N If) O O O O O O O O N 0 0 0 0 v1 0 v1 vl vl 0 n M c0 Vl V V N O cc; .O N c'7 -- v1 0 0 0 0 O o 0 0 0 0 0 N 0 0 0 0 Lt) O V'1 V . c) W N N u1 0 o O O w o 0 0 O O O O O O O co O u'1 uy J 1 O O cd or; V O N N N N -, -, + + ie Commissioned Officers Ikon- Commissioned Officers a) w sioned Officers 0 V sioned Officers O V O z tration/Development Services d Transportation Systems Maintenance Services Culture and Recreation + + + + + x + + x Parks and Recreation lf1 N O co co O O O c) M N M O O OO M N M M M '0 co ** *Information not available. Perspective periods will provide expansion up to a 10 year period. 128 - OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years if) M L10 kr) n ,O V O' O M O M_ g OD '0 O N 4n CO cO 'O '0 co 00 1, O V co V c� N l� �O ' N N co O co O co O 06 U N N O o M N M cO ,o ,-- �� O O M 0< O N t` N O r- N Q• , N - r) V N 'O O 0 v) O+ 'O L- l" '0 V 0 O� N V, O o0 ,--' 0< CT (,1 p M N V N U CT M (-4. V .0 M 41 N 'O N- N .-- L N N N o °' M N 00 V, 69 M V) N O ,-, N O O P op Q• M V S O O 0 `O O 0 M N CD G M Lr ,O M i,/1 c' U N p w N w Nv .<5. N CD 00 Q, �n vl O O O ,O O+ 'O i� o 0o N N N i� M WI M N O [� 0< [� O ,O O o O+ U N oo O+ •-• O N 'O OD 0 , . 0 OT i, •-- ,O O N M ,-- �, M O M 0:. O N g -- N Q V7 O ,O M 141 v'1 o N 0 N '0 V, 49 0 O Lr) O' 0 0 N. O+ N- V) O, O V') N N CO CO CO N co O In In V O O `O -' t� oo `O V') N. O N ,O N v) CO ' CO 'O N ,O v) O co N ON v) CO O 00 ,O + O Cl.. CO *-• V M 'O N ,p M ,- V N Q O L O ,O M V 0 _ r- 0 69 O 0 vl '0 O O O' i\ In P oo N. O N Q, O o0 00 V N O O 0 0 U' i, N v) OD N C] N 'O O M ' V) ,-- i.e. N In O WI V V M O? `O O ••, V CV •-, ,-• o h,O N V) N M- M N co ,O 40 'O v 05. .-. N oo ap .0 69 V) O ,O - O O *-+ f� O� [-. 0 N O• O� a0 1/) OD V N O ,O V) 'O O O F N � N 0 N ,_, co a0 r- - `p co o0 co O ,O r) O '^ 'O O N '0 o' m0 M U N ,--' u) N O N Q^ r-j .-- ,-- P ,O 69 (a) Construction of new clubhouse completed and opened in 2003. 0' v) ,O N O O N. i, t Q• ' N V ,O Q• v) Q• N M N ,O °o O N U 0 0 - i, In ■-- O CO CO O ,-- In i, ' ' ,O i� M t� ,-- M M M O In 0< N V N •-■ N m V OO ,O O i-- ,O N V ,-. V N In c-1 LP) V 'O ,-- co) O N. N 4 co i� O V') O O N [, i, Q, '� o I' ,-- v) Q• N o0 I N N i\ co '0 N V) O O NT t i` vl '0 `0 N c+) ,O ,-- In V O, M p '1 M V Q' 0 0 0 Or ? On N V ,O C_1 cs, r7 V M ~ b N N La co WI CT r- ','''L' �' 69 to Q Vim) U'0 * t n* * C00 0�') N co N N ro 0' V 0' N N N U V N b O, V vs M N L r- � U 't tr V) :m 'CI t" q MI 4 Fkl vS ° 2 g U ,--1- Uq c c. 6FS a�c.s .`3 ,.3 a o E� O O N P O Co � �jN '[7 �jN `,Tye vg O p *13 O .v�y Cf F. ,U - aLly.� yO O ca., 0 fib' t ':J -'' N 1 (� 0 ('._% �..% v) eU-!/ n U g r} . 07 U N E p. V O O 0 0 0 N O O 0) 0 0. O O p1 0. w F J U ca sn x F F F cA cA w P- w Z H �i 0. c/a 3 in in , N - 129 - CAPITAL ASSETS BY Last Ten Fiscal Years 0 0 ' p 0 0 0 0 O O O O O 0 0 N 0 0 0 co 0' 0' co ' Vl O O 'Q VF V) co `NO M V) O n 0, 0.0 C M V) CT. c`) 0 00 N WI V MMM in V CON ' V 03 0,1 ' .p m* WI o00 V) V) r- M..-. N V O M N. c0 ▪ WI ,CD O1 M V co N M V V)O0 M el n 0 V1 V) 00 I, V 'O "^ '-' 00 V CON '0v1) vim) 000, V CD N`O '-' N V ul OOH WI N c0 ' V W N 'p ) CO O� M .-� 'p '--� .--' .-. .-. N 0 V O •--.•--■ ,--' V • V, V co 00 '0 WI Vl 00 V, M+-�'O - N V Oa CT M M M 'O CO M M M M 'O M M f") M M so M M M M r7 M M op 'o M M M M °° 'O M M --' f") M '--' '0 -PD- 9 °o 'S V5 o �o� 0 1 a4 togy q h7 � a -.J � � � x o • v ��� .4 �tga o o t th- '� o0o xE o �o�� a .�° d a. iii z jflLFjrJ ti 1 F s .. c.) 3 3n 5 /61 Reflects the correct reporting of data for Surface Water - Storm Drains (miles) for the years 1998 through 2006. Miles previously reported were incorrect data estimates. - 130 -