HomeMy WebLinkAbout2006 Comprehensive Annual Financial Report (CAFR)The City of Tukwila, Washington
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
For the Year Ended December 31, 2006
Prepared by the City of Tukwila Finance Department
STEVEN M. MULLET, MAYOR
TUKWILA CITY COUNCIL
Dennis Robertson, President
Joe Duffie Joan Hernandez
Pam Carter Jim Haggerton
Verna Griffin Pam Linder
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2006
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
II. 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 Information:
Table 1 — Net Assets by Component — Last Five Fiscal Years 106
Table 2 — Changes in Net Assets — Last Five Fiscal Years 109
Table 3 — Fund Balances of Governmental Funds 110
Table 4 — Changes in Fund Balances of Governmental Funds 112
Table 5 — General Governmental Tax Revenues by Source 113
Table 6 — Property Tax Levies and Collections 114
Table 7 — Assessed and Estimated Actual Value of Taxable Property 115
Table 8 Property Tax Rates — Direct and Overlapping Governments 116
Table 9 Principal Property Taxpayers 117
Table 10 Retail Sales Tax Collections by Sector 118
Table 11 Sales Tax Rate Direct and Overlapping Governments 119
Table 12 Ratios of Outstanding Debt by Type 120
Table 13 Ratios of General Bonded Debt Outstanding 121
Table 14 Computation of Direct and Overlapping Debt 122
Table 15 Legal Debt Margin Information 123
Table 16 Revenue Bond Coverage — Water and Sewer Bonds 124
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Table of Contents
Table 17 Demographic Statistics 125
Table 18 Principal Employers 126
Table 19 Full -Time Equivalent City Government Employees by Function 127
Table 20 Operating Indicators by Function 128
Table 21 Capital Assets by Function 129
City of Tukwila
Table of Contents
City of Tukwila
FINANCE DEPARTMENT
6200 Southcenter Boulevard
Tukwila, Washington 98188 -2599
(206) 433 -1835
June 29, 2007
Honorable Steven Mullet, Mayor
Members of the Tukwila City Council
Citizens of Tukwila
City of Tukwila
6200 Southcenter Boulevard
Tukwila, Washington 98188 -2599
Subject: TRANSMITTAL OF 2006 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, 2006 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.
The Comprehensive Annual Financial Report is presented in three sections: introductory, financial,
and statistical. This introductory section includes this transmittal letter, the City's organization chart,
and a list of principal officials. The financial section includes the State Auditor's report on the
financial statements and schedules, Management's Discussion and Analysis, Government -wide
Financial Statements, Fund Financial Statements, Notes to the Financial Statements, Required
Supplementary Information, Combining and Individual Fund Statements, and Schedules. The
statistical section includes selected financial and demographic information, generally presented on a
multi -year basis. This report includes all funds and agencies of the City.
As an aid to the reader, the major sections of this report have been segregated by divider pages,
which provide introductions for the sections. Generally Accepted Accounting Principles (GAAP)
require that management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of Management's Discussion and Analysis (MD&A). This
transmittal letter is designed to compliment the MD &A and should be read in conjunction with it.
The City's MD&A can be found immediately following the report of the independent auditors.
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.
City of Tukwila
Letter of Transmittal
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.
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 $17.6 million
in revenue for 2006. The total combined retail sales activity amounted to approximately $2.95
billion in 2006. 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 $3.9 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.
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Letter of Transmittal
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 2006.
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 $19,646,303 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 40 LEOFF retirees. The total amount paid in 2006 was $515,901. (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
City of Tukwila
Letter of Transmittal
an unqualified opinion for 2006. Please see the Auditor's Opinion directly following the divider
entitled "Financial Section" in this document.
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, 2005. This was the
19th 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 2006 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,
Kevin A. Fuhrer
Finance Director
cc: Office of the State Auditor
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Letter of Transmittal
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Tukwila
Washington
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2005
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
4eAggiko
Executive Director
City of Tukwila
Letter of Transmittal
City of Tukwila
Administrative Organization Structure, Principal Officials, and Council Committees
ADMINISTRATIVE ORGANIZATION STRUCTURE AND PRINCIPAL OFFICIALS
KIMBERLY WALDEN
Municipal Court Judge
STEVEN M. MULLET
Mayor
RHONDA BERRY
City Administrator
CITY COUNCIL
KENYON DISEND,
PLLC
City Attorney
KEVIN A. FUHRER
Finance Director
VIKI JESSOP
Administrative
Services Director
BRUCE FLETCHER
Parks and
Recreation Director
DAVID HAYNES
Police Chief
r
STEVE LANCASTER
Director, Community
Development
NICK OLIVAS
Fire Chief
JIM MORROW
Public Works
Director
7
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Introductory Section
COUNCIL COMMITTEES
FINANCE AND SAFETY COMMITTEE TRANSPORTATION
Pam Carter, Chairperson
Jim Haggerton, Member
Verna Griffin, Member
Joe Duffie, Chairperson
Pam Carter, Member
Joan Hernandez, Member
COMMUNITY AFFAIRS AND PARKS UTILITIES
Joan Hernandez, Chairperson
Joe Duffie, Member
Pam Linder, Member
Jim Haggerton, Chairperson
Pam Linder, Member
Verna Griffin, Member
Washington State Auditor
Brian Sonntag
INDEPENDENT AUDITOR'S REPORT
Mayor
City of Tukwila
Tukwila, Washington
June 29, 2007
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, 2008 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, 2006, 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
0
lnswance Building, PO Box 40021 •Olympia, Washington 98504 -0021 • (360) 902 -0370 • (866) 902 -3900 • TDD Relay (800) 833 -6388
FAX (360) 753 -0646 • http: / /www.sao.wa.gov
City of Tukwila
Auditor's Opinion
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Management's Discussion and Analysis
CITY OF TUKWILA
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2006
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, 2006. 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 $210.5
million. A total of 79.4 percent or $167.1 million of total net assets is invested in capital assets
such as streets, land, buildings, equipment, and other improvements. The remaining net
assets of $43.3 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 $12.2 million in 2006. Government activities
provided $7.5 million or 61.6 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 $25,527,981 an increase of $3,203,514 in comparison
with the prior year. Approximately 88.9 percent of this total amount, $22,697,909, 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
$5,876,393, or 15.2 percent of total general fund expenditures.
• The City of Tukwila's total debt decreased by $6,285,449 (17.9 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.
2006 COMPREHENSIVE ANNUAL FINANCIAL 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 $210,464,798 at December 31,
2006.
The largest portion of the City's net assets (79.4 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
Net Assets:
Invested in Capital Assets,
Net of Related Debt
Restricted
Unrestricted
Total Net Assets
City of Tukwila's Net Assets
Governmental
Activities
Business -Type
Activities
Total
2006 2005
36,627,475 $ 32,092,403
151,823, 685 147, 722,513
188,451,160 179,814,916
2006 2005
14,950,226 $12,450,163
52,605,895 43,043,517
67,556,121 55,493,680
2006 2005
51,577,701 $ 44,542,566
204,429,580 190, 766,030
256,007,281 235,308,596
21,052,141 21,754,447
3,457,857 1,610,408
24,509,998 23,364,855
19,935,267 13,428,475
1,097,218 206,910
21,032,485 13,635,385
40,987,408
4,555,075
45,542,483
35,182,922
1,817,318
37,000,240
133,129,382 129,855,251
1,305,239 1,305,239
29,506,541 25,289,571
163,941,162 $ 156,450,061
34,017,190 31,370,812
435,995 577,587
12,070,451 9,909,896
46,523,636 $41,858,295
167,146,572 161,226,063
1,741,234 1,882,826
41,576,992 35,199,467
210,464,798 $198,308,356
- 14 -
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Management's Discussion and Analysis
A portion of the City of Tukwila's net assets (0.7 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 $41,806,884 (19.9 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 increase in the total long -term debt of $6,536,310 is comprised of the City utility funds'
$3,180,000 revenue bond issue, new Public Works Trust Fund loans and capital lease obligations
of $5,356,374 and $2,444,086 of debt principal repayments (net of deferred amounts), and the
net increase in compensated absence liability ($356,839).
Net assets increased by $12,156,442 over 2005. The largest portion of this increase was the
addition of $10,908,609, net of capitalizations, to construction work in progress. 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 $7,491,102 accounting for 62.1 percent of the total growth in the City's net assets. Key
elements of this increase are as follows:
City of Tukwila's Changes in Net Assets
Governmental Business -Type
Activities Activities Total
2006 2005 2006 2005 2006 2005
Revenues:
Program Revenues:
Charges for Services 4,554,163 $ 4,561,388 11,605,661 $ 10,879,404 16,159,824 $ 15,440,792
Operating Grants and Contributions 1,897,543 1,525,579 0 0 1,897,543 1,525,579
Capital Grants and Contributions 5,675,493 3,060,960 1,255,360 319,439 6,930,853 3,380,399
General Revenues:
Property Taxes 10,973,030 10,631,036 0 0 10,973,030 10,631,036
Retail Sales and Use Taxes 17,591,260 16,887,846 645,473 241,723 18,236,733 17,129,569
Natural Gas Use Tax 415,652 381,706 0 0 415,652 381,706
Hotel /Motel Taxes 501,478 443,605 0 0 501,478 443,605
Utility Taxes 2,930,332 2,646,356 0 0 2,930,332 2,646,356
Business Taxes 2,097,082 1,732,739 0 0 2,097,082 1,732,739
Excise Taxes 4,941,461 3,229,155 0 0 4,941,461 3,229,155
State Entitlements, Impact Fees,
In -Lieu Taxes 185,475 192,816 0 0 185,475 192,816
Investment Earnings 1,383,708 768,097 539,463 310,750 1,923,171 1,078,847
Gain on Sale of Capital Assets 353,350 106,776 114,160 0 467,510 106,776
Total Revenues 53,500,027 46,168,059 14,160,117 11,751,316 67,660,144 57,919,375
Program Expenses Including
Indirect Expenses:
General Government 7,402,398 6,421,839 0 0 7,402,398 6,421,839
Public Safety 21,839,070 20,300,709 0 0 21,839,070 20,300,709
Physical Environment 2,734,592 1,363,049 0 0 2,734,592 1,363,049
Transportation 5,335,214 4,171,173 0 0 5,335,214 4,171,173
Economic Environment 3,600,158 3,404,605 0 0 3,600,158 3,404,605
Mental & Physical Health 3,683 0 0 0 3,683 0
Culture and Recreation 4,234,889 3,887,871 0 0 4,234,889 3,887,871
Interest on Long -term Debt 981,573 1,012,239 0 0 981,573 1,012,239
Water /Sewer Utility 0 7,354,876 7,105,020 7,354,876 7,105,020
Foster Golf Course 0 1,832,303 1,751,709 1,832,303 1,751,709
Surface Water Utility 0 1,642,204 1,685,663 1,642,204 1,685,663
Total Expenses 46,131,577 40,561,485 10,829,383 10,542,392 56,960,960 51,103,877
Increase (Decrease) in Net Assets
Before Transfers 7,368,450 5,606,574 3,330,734 1,208,924 10,699,184 6,815,498
Transfers 122,652 824,118 1,250,000 (824,118) 1,372,652 0
Increase (Decrease) in Net Assets 7,491,102 6,430,692 4,580,734 384,806 12,071,836 6,815,498
Net Assets — Beginning Balance 156,450,061 150,019,369 41,942,902 41,558,096 198,392,963 191,577,465
Prior Period Adjustments 0 0 0 0 0 0
Net Assets — Ending Balance 163,941,163 $156,450,061 46,523,636 $ 41,942,902 210,464,799 $198,392,963
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.
- 16 -
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Management's Discussion and Analysis
Revenues by Source — Governmental Activities
Business Taxes
4%
Utility Taxes
5%
Other Taxes Gain on Sale of Capital
0% \ Investment Earnings Assets Charges for Services
\ 3% 1% 9%
Excise Taxes
9%
Hotel /Motel Taxes\
1%
Natural Gas Use Tax
1%
44/
INV
Retail Sales & Use
Taxes
32%
Operating Grants and
Contributions
4%
Capital Grants and
Contributions
11%
Property Taxes
20%
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
❑ Expenses
• Program Revenues
■
■ - n
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
$4,665,341, accounting for 38.4 percent of the total growth in the City's net assets. Key elements of
this increase are as follows:
• Net operating income of $1,275,739 and non - operating income of $799,635 account for
$2,075,374 of the increase.
• Capital contributions of $1,255,360 and net transfers in of $1,250,000 account for $2,505,360 of
the net change.
Revenues by Source — Business -Type Activities
Retail Sales and
Use Taxes
5%
Capital Grants
and
Contributions
9%
Operating
Grants and
Contributions
0%
Investment
Earnings
4%
Gain on Sale of
Capital Assets
1%
Charges for
Services
81%
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)
O Expenses
■Program Revenues
Water /Sewer Utility
Foster Golf Course Surface Water Utility
- 18 -
2006 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 $25,527,981. Approximately 88.9 percent of this total amount ($22,697,908)
constitutes unreserved fund balance, which is available for spending at the government's discretion. The
remaining 11.1 percent ($2,830,072) 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 Interfund Loans.
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 $8,706,465. Unreserved fund balance, the amount considered
available to spend, totaled $5,876,393. Of the General Fund balance, $2,539,443, 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 decreased by ($259,329) during the current fiscal
year.
The fund balance of the Land Acquisition, Recreation, and Park Development Capital Project Fund
increased by $1,828,622 due delays in budgeted expenditures. The fund balance of the Hotel /Motel Tax
Fund increased by $1,328,811 due primarily to repayment of an interfund loan related to real property
intended for use in the promotion of tourism.
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
Differences between the General Fund original budget and the final amended budget total $1,070,000.
The increased appropriation was required to recognize unanticipated revenues and to appropriate them for
capital purposes.
Actual General Fund revenues were under the budgeted amount by only 1.9% or $736,700. This
immaterial variance is indicative of the strength of the City's comprehensive budget analysis and review.
Actual expenditures were $38,119,300, which were $1,512,511 under the appropriated amount. Except
for public safety activities which exceeded its budget by approximately $77,000, the budget surplus was
evenly distributed among General Fund activities.
- 19 -
City of Tukwila
Management's Discussion and Analysis
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, 2006, amounts to $204,429,580 (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 the current fiscal year included the following:
• Various repair and overlay projects to the City's major arterials totaled nearly $810,000.
• Major arterial — Klickitat/Southcenter Parkway /Intersate 5 Access Revision Project totaled $1.74
million in 2006.
• Drainage improvements to the Cascade View Surface Water Management System amounted to $4
million. The project was completed in 2006.
City of Tukwila's Capital Assets
(net of depreciation)
Governmental Business -Type
Activities Activities
Total
2006 2005 2006 2005 2006 2005
Land $ 35,701,817 $ 35,601,817 $ 1,847,416 $ 2,429,256 $ 37,549,233 $ 38,031,073
Buildings 16,025,182 16,078,120 7,401,482 7,766,588 23,426,664 23,844,708
Other Improvements 4,258,829 4,641,319 30,560,906 27,134,314 34,819,735 31,775,633
Machinery and Equipment 5,441,903 3,854,852 1,152,783 1,262,926 6,594,686 5,117,778
Infrastructure 79,366,248 80,816,273 0 0 79,366,248 80,816,273
Construction in Progress 11,029,706 6,730,132 11,643,308 4,450,433 22,673,014 11,180,565
Total $ 151,823,685 $ 147,722,513 $ 52,605,895 $ 43,043,517 $ 204,429,580 $ 190,766,030
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 $29,260,000. Of this amount, $23,400,000 comprises debt backed by the full faith and
credit of the government and the remainder of $5,860,000 of the City of Tukwila's debt represent
bonds secured solely by specified revenue sources (i.e., revenue bonds).
City of Tukwila's Outstanding Debt
General Obligation and Revenue Bonds
Governmental Business -Type
Activities Activities
Total
2006 2005 2006 2005 2006 2005
General Obligation Bonds $ 18,852,500 $ 19,740,500 $ 4,547,500 $ 4,972,500 $ 23,400,000 $ 24,713,000
Revenue Bonds 0 0 5,860,000 3,190,000 5,860,000 3,190,000
Total $ 18,852,500 $ 19,740,500 $ 10,407,500 $ 8,162,500 $ 29,260,000 $ 27,903,000
The City of Tukwila's total long -term debt increased by $1,357,000 (4.9 %) during the current fiscal
year. The change in long -term debt is explained by a revenue bond issue of $3,180,000 and
redemption of bond principal of $1,823,000.
- 20 -
2006 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 2007 Budget and Fiscal year.
During the 2007 budget year, fund balance from 2006 will be used to balance the budget along with a
third 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
Kevin Fuhrer, Finance Director, 6200 Southcenter Boulevard, Tukwila, Washington, 98188, (206)
433 -1800, or email at tukfin @ci.tukwila.wa.us.
City of Tukwila
Management's Discussion and Analysis
City of Tukwila
DESCRIPTION
Government -wide Financial Statements Page 1 of 1
STATEMENT OF NET ASSETS
December 31, 2006
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES
TOTAL
ASSETS
Cash and Cash Equivalents $ 8,847,331 $ 363,810 $ 9,211,141
Deposits with Fiscal Agent 25,350 0 25,350
Investments 19,291,874 10,740,285 30,032,159
Receivables:
Taxes 3,774,336 131,031 3,905,367
Customer Accounts 99,224 1,005,442 1,104,666
Interest on Investments 154,171 71,724 225,895
Due From Other Governmental Units 1,072,351 48,622 1,120,973
Inventory of Materials and Supplies 1,005,000 427,364 1,432,364
Investment in Joint Venture 2,357,838 0 2,357,838
Restricted Assets:
Cash and Cash Equivalents 0 240,435 240,435
Investments 0 1,586,000 1,586,000
Notes Receivable 0 102,732 102,732
Deferred Charges 0 163,843 163,843
Land and Construction in Progress 46,731,523 13,490,724 60,222,247
Depreciable Capital Assets, Net 105,092,162 39,115,171 144,207,333
Plant Acquisition Adjustment (Net of Accumulated Amortization) 0 68,938 68,938
TOTAL ASSETS 188,451,160 67,556,121 256,007,281
LIABILITIES
Accounts Payable 322,110 13,256 335,366
Accrued Wages and Benefits Payable 1,049,034 0 1,049,034
Due To Other Governmental Units 97,335 612,448 709,783
Accrued Interest Payable 76,139 157,235 233,374
Revenues Collected in Advance 103,140 0 103,140
Other Current Liabilities 1,405,856 113,288 1,519,144
Liabilities Payable from Restricted Assets:
Revenue Bond Principal 0 335,000 335,000
Deposits 0 200,991 200,991
Unearned Revenue 404,243 0 404,243
Long -Term Liabilities
Due Within One Year 995,464 445,000 1,440,464
Due in More Than One Year 20,056,677 19,155,267 39,211,944
TOTAL LIABILITIES 24,509,998 21,032,485 45,542,483
NET ASSETS
Invested in Capital Assets, Net of Related Debt 133,129,382 34,017,190 167,146,572
Restricted for:
Capital Projects 0 5,551 5,551
Debt Service 1,305,239 430,444 1,735,683
Unrestricted 29,506,541 12,070,451 41,576,992
TOTAL NET ASSETS $ 163,941,162 $ 46,523,636 $ 210,464,798
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
- 23 -
City of Tukwila
overn m en t -wide Financial Statements Page 1 of 2
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2006
FUNCTIONS /PROGRAMS EXPENSES
PROGRAM REVENUES
CHARGES OPERATING CAPITAL GRANTS
FOR GRANTS AND AND
SERVICES CONTRIBUTIONS CONTRIBUTIONS
GOVERNMENTAL ACTIVITIES:
General Government $ 7,402,398 $ 1,243,936 $ 2,000 $ 0
Public Safety 21,839,070 538,576 728,280 2,076,152
Physical Environment 2,734,592 10,000 120 0
Transportation 5,335,214 247,026 398,199 3,513,341
Economic Development 3,600,158 1,756,240 723,743 0
Mental and Physical Health 3,683 0 0 0
Culture & Recreation 4,234,889 758,385 45,201 86,000
Interest on Long -Term Debi 981,573 0 0 0
TOTAL GOVERNMENTAL ACTIVITIE! $ 46,131,577 $ 4,554,163 $ 1,897,543 $ 5,675,493
BUSINESS -TYPE ACTIVITIES:
Water /Sewer Utility $ 7,354,876 $ 7,653,959 $ 0 $ 184,786
Foster Golf Course 1,832,303 1,748,779 0 0
Surface Water Utility 1,642,204 2,202,923 0 1,070,574
TOTAL BUSINESS -TYPE ACTIVITIES $ 10,829,383 $ 11,605,661 $ 0 $ 1,255,360
General Revenues:
Property 'faxes
Retail Sales and Use 'faxes
Natural Gas Use Tax
HotellMotel 'faxes
Utility Taxes
Business 'faxes
State Entitlements
Other 'faxes
Unrestricted Investment Earnings
Gain on Sale of Capital Assets
l'ransters
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 -
2006 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
$ (6,156,462) $ 0 $ (6,156,462)
(18,496,062) 0 (18,496,062)
(2,724,472) 0 (2,724,472)
(1,176,648) 0 (1,176,648)
(1,120,175) 0 (1,120,175)
(3,683) 0 (3,683)
(3,345,303) 0 (3,345,303)
(981,573) 0 (981,573)
$ (34,004,378) $ 0 $ (34,004,378)
$ 0 $ 483,869 $ 483,869
0 (83,524) (83,524)
0 1,631,293 1,631,293
$ 0 $ 2,031,638 $ 2,031,638
$ 10,973,030 $ 0 $ 10,973,030
17,591,260 645,473 18,236,733
415,652 0 415,652
501,478 0 501,478
2,930,332 0 2,930,332
2,097,082 0 2,097,082
4,941,461 0 4,941,461
185,475 0 185,475
1,383,708 539,463 1,923,171
353,350 114,160 467,510
122,652 1,250,000 1,372,652
41,495,480 2,549,096 44,044,576
7,491,102 4,580,734 12,071,836
156,450,061 41,942,902 198,392,963
$ 163,941,163 $ 46,523,636 $ 210,464,799
- 25 -
City of Tukwila
and Financial Statements Page 1 of 2
DESCRIPTION
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2006
OTHER
ARTERIAL GOVERNMENTAL
GENERAL FUND STREET FUNDS
ASSETS
Cash and Cash Equivalents $ 217,714 $ 2,462,949 $ 6,007,091
Deposit with Fiscal Agent/Trustee 25,351 0 0
Investments 7,669,051 2,632,537 4,203,360
Receivables:
Taxes 2,732,013 584,741 457,583
Customer Accounts 99,224 0 0
Interest on Investments 56,386 47,301 26,747
Due From Other Governmental Units 177,375 845,053 49,923
TOTAL ASSETS $ 10,977,114 $ 6,572,581 $ 10,744,704
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payable 23,149 21,018 277,943
Accrued Wages & Benefits 1,038,180 0 10,855
Due To Other Governmental Units 97,335 0 0
Revenues Collected in Advance 103,140 0 0
Other Current Liabilities 379,625 98,006 85,084
Deferred Revenues 629,220 0 2,863
Total Liabilities 2,270,649 119,024 376,745
Fund Balances:
Reserved for:
Imprest Funds 13,250 0 0
Loans Receivable 0 0 0
Unreserved, Designated for:
Unknown Contingent Liabilities 2,539,443 0 0
Unreserved, Undesignated Reported in:
General Fund 6,153,772 0 0
Special Revenue Funds 0 6,453,557 2,046,785
Debt Service Funds 0 0 1,075,347
Capital Projects Funds 0 0 7,245,827
Total Fund Balances 8,706,465 6,453,557 10,367,959
TOTAL LIABILITIES AND FUND BALANCES $ 10,977,114 $ 6,572,581 $ 10,744,704
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
- 26 -
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page 2 oft Fund Financial Statements
TOTAL
GOVERNMENTAL
FUNDS
$
8,687,754
25,351
14,504,948
3,774,337
99,224
130,434
1,072,351
28,294,399
322,110
1,049,035
97,335
103,140
562,715
632,083
2,766,418
13,250
0
2,539,443
6,153,772
8,500,342
1,075,347
7,245,827
25,527,981
28,294,399
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
GOVERNMENTAL FUNDS
December 31, 2006
Fund Balances - Total Governmental Funds
Amounts reported for governmental activities in the statement of
net assets are different because:
'I he purchases method is used in Governmental Funds to account for
Materials and Supplies - Inventory amount outstanding.
Capital assets used in governmental activities are not tinancial
resources and therefore are not reported in the governmental funds.
Non - Depreciable Assets $ 46,731,523
Depreciable Assets (net) 101,561,961
The City has an equity interest in a joint venture. This equity interest for the
provision of governmental services is not a current tinancial resource
and therefore is not renorted in the funds.
assets are ottset by deterred revenue and not included in fund balances.
Deferred Revenue
Long -term liabilities, including bonds payable, related accounts and interest
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:
Long Term Liabilities due within one year $ (995,464)
Long Term Liabilities due in more than one year (20,056,677)
Accrued Interest Payable (76,139)
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.
Net Assets of Governmental Activities
$ 25,527,981
964,000
148,293,484
2,357,838
227,840
(21,128,280)
7,698,300
$ 163.941.163
- 27 -
City of Tukwila
und Financial Statements Page 1 oft
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2006
OTHER
ARTERIAL GOVERNMENTAL
DESCRIPTION GENERAL FUND STREET FUNDS
REVENUES
Taxes $ 29,250,083 $ 4,345,705 $ 4,206,026
Licenses and Permits 1,273,228 0 0
Intergovernmental 2,962,522 2,310,769 1,809,741
Charges for Services 2,345,931 0 0
Fines and Forfeits 221,097 0 0
Investment Income 423,820 257,527 478,624
Miscellaneous 420,518 832,001 145,065
TOTAL REVENUES 36,897,199 7,746,002 6,639,456
EXPENDITURES
Current:
General Government 6,882,596 0 0
Public Safety 20,352,873 0 599,651
Physical Environment 1,895,390 0 244,567
Transportation 2,086,394 356,629 4,073
Economic Environment 2,819,444 0 720,213
Mental & Physical Health 3,683 0 0
Culture and Recreation 3,689,560 0 0
Debt Service:
Principal 0 0 888,000
Interest 1,034 0 1,005,127
Capital Outlay 388,326 4,476,934 1,673,912
TOTAL EXPENDITURES 38,119,300 4,833,563 5,135,543
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,222,101) 2,912,439 1,503,913
OTHER FINANCING SOURCES (USES)
Transfers In 1,993,581 0 150,000
Transfers (Out) (499,940) (1,301,077) (629,752)
Sale of Capital Assets (530,869) (245,143) 1,072,463
TOTAL OTHER FINANCING SOURCES
AND (USES) 962,772 (1,546,220) 592,711
Net Change in Fund Balances (259,329) 1,366,219 2,096,624
Fund Balances Beginning of Year 8,965,794 5,087,338 8,271,335
FUND BALANCES END OF YEAR $ 8.706.465 $ 6.453.557 $ 10.367.959
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page 2 oft Fund Financial Statements
TOTAL
GOVERNMENTAL
FUNDS
$
37,801,814
1,273,228
7,083,032
2,345,931
221,097
1,159,971
1,397,584
51,282,657
6,882,596
20,952,524
2,139,957
2,447,096
3,539,657
3,683
3,689,560
888,000
1,006,161
6,539,172
48,088,406
3,194,251
2,143,581
(2,430,769)
296,451
9,263
3,203,514
22,324,467
25.527.981
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, 2006
Net change in Fund Balances - total governmental funds $ 3,203,514
Amounts reported for governmental activities in the statement of activities are
different because:
(iovernment funds report capital outlays as expenditures. However, in the
statement of activities, the cost of capital assets is allocated over their
estimated useful lives as depreciation expense. In the current period, these
amounts are:
Capital Outlay
Donations of Capital Assets
Depreciation Expense
Excess of Capital Outlay and Donations Over Depreciation Expense
$ 6,540,452
1,493,707
(4,321,086)
1 he net pension asset (negative net pension obligation) amortization amount
in 2006 is not a financial resource and therefore not reported in the funds.
Revenues m the statement of activities that do not provide current financial
resources are not reported as revenues in the funds. Change in investment
interest receivable due beyond the City's 60 day measurable and available period.
1 he City has an equity interest in a joint venture. 1 his equity interest tor the
provision of governmental services is not a current tinancial resource and
therefore is not reported in the funds.
Repayment of long -term debt is reported as an expenditure in governmental
funds, but the repayment reduces long -term liabilities in the statement of
net assets. In the current year, these amounts consist ot.
Bond Principal Retirement
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The net revenue (expense) of the internal
service funds is reported with governmental activities.
Because some revenues will not be collected tor several months after the City's
fiscal year ends, they are not considered "available" revenues in the government
funds. Deferred revenues decreased by this amount this year.
Some expenses reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures in
governmental funds. These activities consist of:
Net Decrease in Materials and Supplies $
Net Decrease in Accrued Interest
Increase in Compensated Absences
Amortization of Bond Discount and Deferred Charges
Amortization of bond premiums
Total Additional Expense (Increase) Decrease
Change in Net Assets of Governmental Activities
(526,740)
3,323
(353,412)
(20,215)
25,679
3,713,073
(20,205)
888,000
289,139
288,947
(871,365)
$ 7,491,103
- 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, 2006
DESCRIPTION
REVENUES
Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeits
Investment Income
Miscellaneous
TOTAL REVENUES
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
AMOUNTS
Page 1 of 1
Variance with
Final Budget -
Positive (Negative)
$ 28,740,950
1,142,000
3,634,828
2,332,320
119,000
141,600
453,200
36,563,898
$ 29,050,950
1,327,000
4,209,828
2,332,320
119,000
141,600
453,200
37,633,898
$ 29,250,083
1,273,228
2,962,522
2,345,931
221,097
423,820
420,518
36,897,199
$ 199,133
(53,772)
(1,247,306)
13,611
102,097
282,220
(32,682)
(736,699)
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
6,721,960
19,890,551
2,176,792
2,366,909
3,073,223
4,000
3,741,588
0
587,045
7,280,698
20,502,251
2,226,792
2,371,909
3,073,223
4,000
3,804,687
0
368,251
6,882,596
20,352,873
1,895,390
2,086,394
2,819,444
3,683
3,689,560
1,034
388,326
398,102
149,378
331,402
285,515
253,779
317
115,127
(1,034)
(20,075)
TOTAL EXPENDITURES
38,562,068
39,631,811
38,119,300
1,512,511
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)
(1,998,170)
2,049,000
(500,000)
5,000
1,554,000
(1,997,913)
2,049,000
(500,000)
5,000
1,554,000
(1,222,101)
1,993,581
(499,940)
(530,869)
962,772
775,812
(55,419)
60
(535,869)
(591,228)
Net Change in Fund Balance
FUND BALANCE BEGINNING OF YEAR
(444,170)
8,965,794
(443,913)
8,965,794
(259,329)
8,965,794
184,584
0
FUND BALANCE END OF YEAR $ 8,521,624 $
8,521,881 $
8,706,465 $
184,584
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, 2006
DESCRIPTION
REVENUES
Taxes
Intergovernmental
Investment Income
Miscellaneous
TOTAL REVENUES
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
AMOUNTS
Page 1 of 1
Variance with Final
Budget - Positive
(Negative)
$ 3,025,000
12,199,000
100,000
2,350,000
17,674,000
$ 3,025,000
12,199,000
100,000
2,350,000
17,674,000
$ 4,345,705
2,310,769
257,527
832,001
7,746,002
$ 1,320,705
(9,888,231)
157,527
(1,517,999)
(9,927,998)
EXPENDITURES
Current:
Transportation
Capital Outlay
TOTAL EXPENDITURES
506,463
20,014,625
20,521,088
506,463
20,014,625
20,521,088
356,629
4,476,934
4,833,563
149,834
15,537,691
15,687,525
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers (Out)
Sale of Capital Assets
TOTAL OTHER FINANCING SOURCES AND (USES)
(2,847,088)
(1,356,463)
0
(1,356,463)
(2,847,088)
(1,356,463)
0
(1,356,463)
2,912,439
(1,301,077)
(245,143)
(1,546,220)
5,759,527
55,386
(245,143)
(189,757)
Net Change in Fund Balance
FUND BALANCE BEGINNING OF YEAR
(4,203,551)
4,239,000
(4,203,551)
4,239,000
1,366,219
5,087,338
5,569,770
848,338
FUND BALANCE END OF YEAR $
35,449 $
35,449 $
6,453,557 $
6,418,108
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
-31 -
City of Tukwila
Fund Financial Statements Page 1 of 1
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
December 31, 2006
BUSINESS -TYPE ACTIVITIES GOVERNMENTAL
ENTERPRISE FUNDS ACTMTIES -
WATER/SEWER FOSTER SURFACE WATER INTERNAL SERVICE
DESCRIPTION UTILITY GOLF COURSE UTILITY TOTAL FUNDS
ASSETS
Current Assets:
Cash and Cash Equivalents $ 184,313 $ 45,630 $ 133,867 $ 363,810 $ 159,577
Investments 7,767,671 319,879 2,652,735 10,740,285 4,786,926
Receivables:
Taxes 0 131,031 0 131,031 0
Customer Accounts 528,674 378,681 98,087 1,005,442 0
Interest on Investments 70,168 94 1,462 71,724 23,737
Due from Other Governmental Units 2,959 0 45,663 48,622 0
Inventory of Materials and Supplies 195,447 182,314 49,603 427,364 41,000
Current Assets Restricted:
Cash and Cash Equivalents 147,788 53,203 0 200,991 0
Investments 702,000 0 493,000 1,195,000 0
Total Current Assets Restricted 849,788 53,203 493,000 1,395,991 0
Total Current Assets 9,599,020 1,110,832 3,474,417 14,184,269 5,011,240
Noncurrent Assets:
Noncurrent Restricted Assets:
Cash and Cash Equivalents 2,547 0 36,897 39,444 0
Investments 391,000 0 0 391,000 0
Total Noncurrent Restricted Assets 393,547 0 36,897 430,444 0
Notes Receivable 102,732 0 0 102,732 0
Deferred Charges 67,354 83,659 12,830 163,843 0
Capital Assets:
Land 96,872 1,609,575 140,969 1,847,416 0
Buildings and Structure 2,075,303 5,974,884 909,455 8,959,642 0
Other Improvements 23,082,139 3,996,709 23,121,893 50,200,741 0
Machinery and Equipment 1,979,400 197,310 42,160 2,218,870 8,193,183
Construction in Progress 6,840,057 0 4,803,251 11,643,308 0
Less: Accumulated Depreciatior (11,203,851) (2,350,471) (8,709,760) (22,264,082) (4,662,982)
Total Capital Assets (Net o
Accumulated Depreciation 22,869,920 9,428,007 20,307,968 52,605,895 3,530,201
Plant Acquisition Adjustment (Net of
Accumulated Amortization 68,938 0 0 68,938 0
Total Noncurrent Assets 23,502,491 9,511,666 20,357,695 53,371,852 3,530,201
TOTAL ASSETS 33,101,511 10,622,498 23,832,112 67,556,121 8,541,441
LIABILITIES
Current Liabilities:
Accounts Payable 0 7,869 5,387 13,256 0
Due to Other Governmental Units 260,854 0 351,594 612,448 0
Accrued Interest Payable 111,853 15,509 29,873 157,235 0
General Obligation Bonds - Current 0 445,000 0 445,000 0
Other Current Liabilities 35,195 57,434 20,659 113,288 843,140
Current Liabilities Payable from Restricted Assets
Revenue Bond Principal 319,000 0 16,000 335,000 0
Deposits 147,788 53,203 0 200,991 0
Total Current Liabilities Payable frorr
Restricted Assets 466,788 53,203 16,000 535,991 0
Total Current Liabilities 874,690 579,015 423,513 1,877,218 843,140
Noncurrent Liabilities:
General Obligation Bonds Payable (Net of
Unamortized Premiums) 0 4,133,718 0 4,133,718 0
Revenue Bonds Payable (Net of
Unamortized Premiums and Discounts; 5,097,709 0 502,183 5,599,892 0
Compensated Absences 74,687 83,158 49,522 207,367 0
Other Long -Term Liabilities 4,391,160 45,587 4,777,543 9,214,290 0
Total Noncurrent Liabilities 9,563,556 4,262,463 5,329,248 19,155,267 0
TOTAL LIABILITIES 10,438,246 4,841,478 5,752,761 21,032,485 843,140
NET ASSETS
Invested in Capital Assets, Net of Related Debi 13,829,596 4,995,383 15,192,211 34,017,190 3,530,201
Restricted for:
Capital Projects 1,809 0 3,742 5,551 0
Debt Service 393,547 0 36,897 430,444 0
Unrestricted 8,438,313 785,637 2,846,501 12,070,451 4,168,100
TOTAL NET ASSETS $ 22,663,265 $ 5,781,020 $ 18,079,351 $ 46,523,636 $ 7,698,301
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
- 32 -
N Ii
.............
1908
City of Tukwila
Fund Financial Statements
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
For the Year Ended December 31, 2006
DESCRIPTION
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
WATER/SEWER FOSTER SURFACE WATER
UTILITY GOLF COURSE UTILITY
TOTAL
Page 1 of 1
GOVERNMENTAL
ACTIVITIES -
INTERNAL SERVICE
FUNDS
OPERATING REVENUES
Charges for Services
Other Operating Revenues
TOTAL OPERATING REVENUES
$ 7,648,522 $
5,437
7,653,959
1,222,383 $
526,396
1,748,779
2,196,830 $ 11,067,735
6,093 537,926
2,202,923 11,605,661
$ 6,188,109
43,724
6,231,833
OPERATING EXPENSES
Operations and Maintenance
Administrative and General
Taxes
Depreciation /Amortization
TOTAL OPERATING EXPENSES
5,185,919
999,398
233,290
697,289
7,115,896
1,272,480 859,984
10,649 297,684
6,732 28,131
336,256 402,110
1,626,117 1,587,909
7,318,383
1,307,731
268,153
1,435,655
10,329,922
5,262,287
158,160
0
642,921
6,063,368
OPERATING INCOME (LOSS)
NON- OPERATING REVENUE (EXPENSE)
Taxes
Investment Income
Interest Expense
Amortization of Debt Premium
Amortization of Debt Discount
Bond Issuance Costs
Gain (Loss) on Sale of Capital Assets
TOTAL NON - OPERATING REVENUE (EXPENSES)
538,063 122,662 615,014
0 645,473 0
398,891 22,998 117,574
(231,553) (203,086) (54,280)
8,412 1,845 39
(15,557) 0 0
(282) (4,945) (54)
0 0 114,160
159,911 462,285 177,439
1,275,739
645,473
539,463
(488,919)
10,296
(15,557)
(5,281)
114,160
799,635
168,465
0
223,737
0
0
0
0
56,899
280,636
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
Capital Contributions
Transfers In
Transfers (Out)
Change in Net Assets
Total Net Assets - Beginning
TOTAL NET ASSETS - ENDING
697,974 584,947 792,453 2,075,374
184,786
0
(30,000)
852,760
21,810,505
$ 22,663,265
0 1,070,574
0 1,280,000
0 0
584,947 3,143,027
5,196,073 14,936,324
$ 5,781,020 $ 18,079,351
1,255,360
1,280,000
(30,000)
4,580,734
41,942,902
46,523,636
449,101
996,664
284,000
0
1,729,765
5,968,536
$ 7,698,301
City of Tukwila
Fund Financial Statements
DESCRIPTION
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Customers and Users
Receipts from Interfund Services Provided
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
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2006
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
WATER/SEWER FOSTER SURFACE WATER
UTILITY GOLF COURSE UTILITY
TOTAL
Page 1 of 1
GOVERNMENTAL
ACTIVITIES -
INTERNAL SERVICE
FUNDS
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Sales and Leasehold Excise Taxes Received
Principal Payments on Intergovernmental Loans
Interest Payments on Intergovernmental Loans
Transfers to Other Funds
Transfers from Other Funds
NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES
7,715,740 $ 1,428,824 $ 2,208,835 $ 11,353,399 $
95,940 0 0 95,940
(4,534,891) (345,547) (314,475) (5,194,913)
(834,682) (813,095) (498,340) (2,146,117)
(1,019,986) (121,617) (353,507) (1,495,110)
5,483 0 0 5,483
1,427,604 148,565 1,042,513 2,618,682
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from Intergovernmental Loans
Principal Payments on Intergovernmental Loans
Interest Payments on Intergovernmental Loans
Proceeds from Sales of Capital Assets
Acquisition and Construction of Capital Assets
Capital Debt
Capital Contributions
Capital Transfers In From Other Funds
Capital Transfers Out To Other Funds
Payments of Bond Issuance
Principal Payments on Bonds /Leases
Interest Payments on Bonds /Leases
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
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31
0 562,973 0 562,973
0 0 (7,368) (7,368)
0 0 (1,842) (1,842)
0 0 0 0
0 0 0 0
0 562,973 (9,210) 553,763
6,032,255
0
(4,710,713)
(335,274)
(158,160)
8,038
836,146
3,591,000 0 1,733,014 5,324,014
(127,854) 0 (318,892) (446,746)
(22,702) 0 (37,891) (60,593)
0 0 696,000 696,000
(6,900,660) (41,717) (3,530,843) (10,473,220)
2,684,328 0 511,300 3,195,628
174,420 0 0 174,420
0 0 1,280,000 1,280,000
(30,000) 0 0 (30,000)
(31,300) 0 (5,962) (37,262)
(510,000) (455,871) 0 (965,871)
(180,053) (204,223) 0 (384,276)
(1,352,821) (701,811) 326,726 (1,727,906)
6,341,250 565,000 6,648,777 13,555,027
(6,700,156) (550,000) (7,950,000) (15,200,156)
360,940 22,987 100,415 484,342
2,034 37,987 (1,200,808) (1,160,787)
76,817 47,714 159,221 283,752
257,831 51,119 11,543 320,493
334,648 $ 98,833 $ 170,764 $ 604,245 $
0
0
0
(158,160)
128,373
(29,787)
0
0
0
56,899
(890,431)
0
0
284,000
0
0
0
0
(549,532)
2,150,000
(2,650,000)
223,737
(276,263)
(19,436)
179,013
159,577
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 /Amortization
(Increase) Decrease in Accounts Receivable
(Increase) Decrease in Due from Other Governmental Units
(Increase) Decrease in Inventory
Increase (Decrease) in Accounts Payable
Increase (Decrease) in Other Current Liabilities
Increase (Decrease) in Customer Deposits
Increase (Decrease) in Accrued Employee Leave Benefits
Interest Reported as Operating Income
Total Adjustments
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
538,063 $
697,289
52,112
(972)
(5,469)
0
30,526
112,018
3,992
45
889,541
1,427,604 $
122,662 $ 615,014 $ 1,275,739 $
336,256
(354,783)
0
8,994
7,869
25,074
5,267
(2,774)
0
25,903
148,565 $
402,110
5,912
0
(3,290)
5,387
15,171
0
2,209
0
427,499
1,042,513 $
NON CASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Capital Assets Contributed by Developers
Capital Assets Contributed from Other Governmental Units
Change in Fair Value of Investments
31,730 $
0
(103,684)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
0 $
0
(244)
961,648 $
0
(628)
1,435,655
(296,759)
(972)
235
13,256
70,771
1 17,285
3,427
45
1,342,943
2,618,682 $
993,378 $
0
(104,556)
168,465
642,921
2,852
0
4,300
4,576
13,032
0
0
0
667,681
836,146
0
29,768
0
- 34 -
City of Tukwila
Fund Financial Statements
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUND
December 31, 2006
DESCRIPTION
ASSETS
Cash and Cash Equivalents
Investments, at Fair Value:
Washington State Pool
Federal Home Loan Bank
Federal National Mortgage Association
Interest on Investments
TOTAL ASSETS
FIREMEN'S PENSION
TRUST FUND
$ 90,027
41,000
689,719
500,000
15,504
1,336,250
NET ASSETS
Held in Trust for Pension Benefits
and Other Purposes
$ 1,336,250
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
Page 1 of 1
- 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, 2006
FIREMEN'S PENSION
DESCRIPTION TRUST FUND
ADDITIONS
Contributions:
Fire Insurance Premiums $ 45,951
Investment Income:
Interest 57,729
Total Additions 103,680
DEDUCTIONS
Benefit Payments 42,320
Administrative Expenses 2,114
Total Deductions 44,434
Change in Net Assets 59,246
Net Assets - Beginning 1,277,004
Net Assets - Ending $ 1,336,250
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, 2006
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 2006. 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.
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2006 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.
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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.
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2006 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 (i.e., revenues) and decreases (i.e., expenses) in net total assets. The statement of
cash flows provides information about how the City finances and meets the cash flow needs of its
proprietary activities.
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.
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2006 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
2006. 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.
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 -
2006 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, 2006. 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).
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2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
At December 31, 2006, the City had the following investments:
FHLB Bonds
FNMA Notes
FHLB Bonds
FHLB Bonds
FHLB Bonds
FHLB Bonds
FHLB Bonds
FNMA Notes
FNMA Notes
FHLB Bonds
Total
State Treasurer's Investment Pool
Total Investments
Notes to the Financial Statements
Reported Amount/
Call Date Maturity Date Credit Ratings Fair Value
N/A 01/16/07 AAA/Aaa $ 649,594
07/26/05 01/26/07 AAA /Aaa 4,992,188
N/A 02/22/07 AAA/Aaa 649,718
N/A 03/01/07 AAA /Aaa 999,239
N/A 07/27/07 AAA/Aaa 999,024
10/22/04 10/22/07 AAA /Aaa 4,926,563
N/A 11/23/07 AAA/Aaa 998,826
7/17/07 7/17/08 AAA/Aaa 997,488
07/21/06 07/21/08 AAA/Aaa 4,000,000
11/28/07 11/28/08 AAA /Aaa 1,496,250
$ 20,708,890
N/A Daily Basis Unrated 19,646,303
$ 40,355,193
RECONCILIATION OF ALL CASH, DEPOSITS, AND INVESTMENTS
Carrying Amount
From Statements of Net Assets:
Cash and Cash Equivalents $ 1,794,855
Deposits with Fiscal Agent /Trustee 25,351
Investments 38,769,193
Restricted Assets:
Cash and Cash Equivalents $ 240,435
Investments 1,586,000 1,826,435
Total All Cash, Deposits, and Investments from Statements of Net Assets
$ 42,415,834
Carrying Amount
Summary by Type:
Cash and Cash Equivalents
Cash in Bank (bank balance) $ 2,020,740
Cash on Hand 14,550 $ 2,035,290
Deposits with Fiscal Agent /Trustee 25,351
Investments
Investment in State Treasurer's
Investment Pool $ 19,646,303
FHLB Bonds 10,719,214
FNMA Notes 9,989,676 40,355,193
Total All Cash, Deposits, and Investments $ 42,415,834
- 47 -
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 (i.e., obligations of any government- sponsored corporation eligible for
collateral purposes at the Federal Reserve).
3) Certificates of Deposit, Money Market Deposit Accounts and savings deposits with qualified
depositories within statutory limits as promulgated by the PDPC at the time of investment.
4) Bankers Acceptances (BA's) purchased on the secondary market with a rating of A -1, P -1, its
equivalent or better.
5) General Obligation Bonds of a state or local government which have at the time of the
investment one of the three highest credit ratings of a nationally- recognized rating agency.
6) The Washington State Local Government Investment Pool (LGIP).
As of December 31, 2006, 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.
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2006 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 2006, 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 2006 assessments.
Actual 2006 property taxes collected were as follows:
ITEM PROPERTY TAXES
General Levy $ 11,018,846
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.
- 49 -
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, 2006.
Interfund transfers at December 31, 2006 were as follows:
Transfer Out:
General
Transfers -Out: Fund
Transfers -In:
General Fund
Non -Major Gov't Funds
Wtr /Sewer /Surface Wtr Funds
Foster Golf Course Fund
Internal Service Funds
Total Trans -Out
Non -Major
Gov't Funds
Water /Sewer/ Foster Golf Int Service
Surface Water Course Fund Fund
Total Trans -In
$ 0 $ 650,829
150,000 0
$1,174,356
0
95,940 1,280,000 690,053
0 0
254,000 0
$ 499,940 $1,930,829
0
30,000
$1,894,409
$ 10,236 $ 158,160 $1,993,581
0 0 150,000
0 0 2,065,993
0 0 0
0 0 284,000
$ 10,236 $ 158,160 $4,493,574
The principal purposes for interfund transfers include interfund subsidies and transfers into debt service and
capital projects funds.
- 50 -
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Notes to the Financial Statements
NOTE 6 — CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2006, 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
35,601,817 $
6,730,132
100,000 $
4,299,574
0 $
0
42,331,949
22,511,475
10,663,763
10,987,417
102,812,955
146,975,610
(6,433,355)
(6,022,444)
(7,132,565)
(21,996,682)
(41,585,046)
105,390,564
147,722,513 $
BEGINNING
BALANCE
4,399,574
508,955
32,500
2,720,222
1,403,928
4,665,605
(561,893)
(414,990)
(1,133,171)
(2,853,953)
(4,964,007)
0
0
0
(716,996)
0
(716,996)
(298,402)
4,101,172
0
0
716,996
0
716,996
0
0 $
INCREASES
DECREASES
35,701,817
11,029,706
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
ENDING
BALANCE
Business -type Activities
Capital assets, not being depreciated:
Land
Construction in Progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Buildings
Other Improvements
Machinery and Equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Other Improvements
Machinery and Equipment
Total accumulated depreciation
Total capital assets, being
depreciated, net
Business -type activity capital assets, net
$ 2,429,256 $
4,450,433
9,316,869
(581,840) $
(2,123,994)
1,847,416
11,643,308
6,879,689
* 8,436,625
* 46,073,409
2,200,109
56,710,143
' (1,299,974)
* (18,309,158)
(937,183)
(20,546,315)
36,163,828
$ 43,043,517 $
9,316,869
523,017
4,198,198
24,396
4,745,611
(258,186)
(1,363,970)
(134,539)
(1,756,695)
(2,705,834)
0
(70,866)
(5,635)
(76,501)
2,988,916
12,305,785 $
0
33,293
5,635
38,928
(37,573)
(2,743,407) $
13,490,724
8,959,642
50,200,741
2,218,870
61,379,253
(1,558,160)
(19,639,835)
(1,066,087)
(22,264,082)
39,115,171
52,605,895
*Bridge capitalized at $642,790 was reclassified as Other Improvements
balance amount for both capital assets and accumulated depreciation.
All reported capital assets of the City are depreciated. Improvements are depreciated over
useful lives of the related capital assets. Useful lives for infrastructure were estimated based
from Buildings
on the beginning
the remaining
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:
2006 Capital Outlays
2006 Land Donation: Cascade Land Conservancy
2006 Developer Turnovers
2006 Reclassification of Machinery and Equipment
from Physical Environment to Economic Environment
Internal Service Funds (Equipment Rental)
Capital Assets — Total Increases
Depreciation expense for 2006 was charged to functions /programs
Governmental Activities:
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Culture and Recreation
Reclassification of depreciation expense
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets
Total 2006 depreciation expense — governmental activities
Business -type Activities:
Water /Sewer Utility — Depreciation 2006
Foster Golf Course — Depreciation 2006
Surface Water Utility — Depreciation 2006
Total 2006 accumulated depreciation increases — business -type activities
$ 6,539,172
100,000
526,811
12,100
1,887,096
$ 9,065,179
as follows:
$ 53,047
340,562
586,883
2,855,352
6,168
437,060
42,014
642,921
$ 4,964,007
$ 697,289
336,256
402,110
$ 1,435,655
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.
- 52 -
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
ITEM
Notes to the Financial Statements
The 2006 cost distribution for the five (5) participating cities are as follows:
Valley Com is governed by an Administration Board composed of the mayors from the five
participating cities of Renton, Kent, Auburn, Tukwila, and Federal Way. The Board is responsible for
the following functions: (1) Adopting an annual budget after review by participating legislative bodies;
(2) Appointment and /or discharge of the Director; (3) Approves personnel policy and makes final
decisions on all major policy changes; (4) Reviews and approves all contracts.
In addition, an Operating Board was established and consists of two members of each participating
City's Public Safety Departments, including the heads of such departments or their designees. The
Operating Board performs the following functions: (1) Oversees the operation of Valley Com and
advises and makes recommendations to the Administration Board; (2) Makes recommendation on
Director selection; (3) Presents proposed policies and budgets to the Administration Board; (4)
Approves disbursement of funds by the Director.
The Director presents a proposed budget to the Operating Board on or before August 15 of each year.
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 January 1, 2006
$3,974,434 $5,550,127 $3,696,777 $2,398,848 $2,030,087 $17,650,273
Current Year Increase (Decrease) 7,116 30,289 5,038 (20,505) 18,417 40,355
Equity December 31, 2006 $3,981,550 $5,580,416 $3,701,815 $2,378,343 $2,048,504 $17,690,628
Percent of Equity
22.51% 31.54% 20.93% 13.44% 11.58% 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
66,389
19.67%
Kent
92,816
27.50%
Auburn
64,060
18.98%
Tukwila
34,966
10.36%
Federal Way
79,282
23.49%
Total
337,513
100.00%
Valley Com is governed by an Administration Board composed of the mayors from the five
participating cities of Renton, Kent, Auburn, Tukwila, and Federal Way. The Board is responsible for
the following functions: (1) Adopting an annual budget after review by participating legislative bodies;
(2) Appointment and /or discharge of the Director; (3) Approves personnel policy and makes final
decisions on all major policy changes; (4) Reviews and approves all contracts.
In addition, an Operating Board was established and consists of two members of each participating
City's Public Safety Departments, including the heads of such departments or their designees. The
Operating Board performs the following functions: (1) Oversees the operation of Valley Com and
advises and makes recommendations to the Administration Board; (2) Makes recommendation on
Director selection; (3) Presents proposed policies and budgets to the Administration Board; (4)
Approves disbursement of funds by the Director.
The Director presents a proposed budget to the Operating Board on or before August 15 of each year.
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 January 1, 2006
$3,974,434 $5,550,127 $3,696,777 $2,398,848 $2,030,087 $17,650,273
Current Year Increase (Decrease) 7,116 30,289 5,038 (20,505) 18,417 40,355
Equity December 31, 2006 $3,981,550 $5,580,416 $3,701,815 $2,378,343 $2,048,504 $17,690,628
Percent of Equity
22.51% 31.54% 20.93% 13.44% 11.58% 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 2006
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 -
2006 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.
- 55 -
City of Tukwila
Notes to the Financial Statements
The required contribution rates expressed as a percentage of covered payroll as of December 31, 2006
follows:
PERS Plan I PERS Plan II PERS Plan III
Employer* 3.69% 3.69% 3.69 % **
Employee 6.00% 3.50% minimum 5.0% to maximum 15.0%
* The employer rates include the employer administrative expense fee currently set at 0.18 %.
** 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
2006 $ 7,283 $ 304,192 $ 54,324
2005 6,559 174,327 34,101
2004 7,308 120,043 23,534
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 -
2006 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, 2006 follow:
LEOFF Plan I LEOFF Plan II
Employer 0.18% 4.90%
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
2006 $ 873 $481,003
2005 1,062 372,889
2004 1,167 305,621
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 12/31/04 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 & Robertson, 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, 2006.
Retirees and beneficiaries receiving benefits 10
Retirees currently receiving full retirement benefits through the
Law Enforcement Officers and Fire Fighters Retirement Plan (LEOFF) 3
Total 13
GASB STATEMENT NO. 27 THREE -YEAR TREND INFORMATION
Annual Pension Contribution as a Net Pension
Fiscal Year Ending Cost (APC) Percentage of APC * Obligation (NPO)
December 31, 2004 $ (6,486) N/A $ (76,523)
December 31, 2005 (5,386) N/A (111,642)
December 31, 2006 (4,686) N/A (160,165)
* 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)= [prior yr (4)=(t) +(2) (7) =(6)+ (10) =
int.rate (0)* (7)] / (9) - (3) (6) = (4) - (5) [prior yr (7)] (8) = (1) - (5) (9) [prior yr (11)=(7)
(1) (5) (11)11(9)
12/31/04 $ (6,789) $(2,081) $(2,384) $ (6,486) $ 40,312 $ (46,798) $ (76,523) $ (47,101) 12.4693 $(2,384) $ (76,523)
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)
*(i) is the assumed interest rate that year: 6% in 2005, 6% in 2006, 5% in 2007.
- 58 -
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Notes to the Financial Statements
GASB STATEMENT NO. 27 ANNUAL PENSION COST AND NET PENSION OBLIGATION
Fiscal Year Ending
2004 2005 2006
Annual required contribution (ARC)
1. Annual Normal Cost (BOY) $ 0 $ 0 $ 0
2. Amortization of UAAL (BOY) (6,345) (6,176) (6,176)
3. Interest to EOY [(1) + (2)]x (i)* (444) (371) (371)
4. ARC at EOY [(1) + (2) + (3)] $ (6,789) $ (6,547) $ (6,547)
5. Interest on NPO $ (2,081) $ (4,591) $ (6,699)
6. Adjustment to ARC (2,384) (5,752) (8,560)
7. Annual Pension Cost [(APC)]
[(4) + (5) — (6)] $ (6,486) $ (5,386) $ (4,686)
8. Employer Contributions ** 40,312 29,733 43,837
9. Change in NPO [(7) — (8)] (46,798) (35,119) (48,523)
10. NPO at BOY [(11) prior year] $ (29,725) $ (76,523) $ (111,642)
11. NPO at EOY [(9) + (10)] $ (76,523) $ (111,642) $ (160,165)
*(i) is the assumed interest rate that year: 6% in 2005, 6% in 2006, 5% in 2007
** 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, 2006 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.
- 59 -
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
2008
35,345
Less: Accumulated Depreciation
$ (18,372)
Total
$ 110,233
The minimum lease obligation and the net present value of these minimum lease payments as of
December 31, 2006 were as follows:
Year Ending December 31
Business -Type
Activities
2007
$ 35,345
2008
35,345
2009
11,782
2010
0
Total Minimum Lease Payments
$ 82,472
Less: Amount Representing interest
$ (4,525)
Present Value of Minimum Lease Payments
$ 77,947
- 60 -
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
ITEM
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:
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, 2006. 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 01/01/06 $ 24,713,000 $ 3,190,000 $ 4,911,251 $ 108,818 $ 2,020,871 $ 34,943,940
Added 0 3,180,000 5,324,014 0 356,839 8,860,853
Retired 1,313,000 510,000 454,116 30,871 0 2,307,987
PAYABLE
12/31/06 $ 23,400,000 $ 5,860,000 $ 9,781,149 $ 77,947 $ 2,377,710 $ 41,496,806
City of Tukwila
Notes to the Financial Statements
The following chart depicts debt outstanding as of December 31, 2006:
INTEREST
ITEM RATES MATURITY AUTHORIZED
OUTSTANDING
01/01/06
ISSUED REDEEMED
12/31/06
DUE WITHIN
ONE YEAR
GOVERNMENTAL ACTIVITIES:
Bonds Payable:
General Government
1999 Limited G.O. Streets /Facilities 4.50 -5.70 12/01/19 $
2000 Limited G.O. Facilities 4.30 -5.75 12/01/15
2003 Limited G.O. Refunding
Facilities 4.00 -5.00 12/01/14
2003 Limited G.O. Streets 4.25 -4.65 12/01/23
Less /Add Deferred Amounts:
For Issuance Premiums
On Refunding
Total Bonds Payable
Compensated Absences.
GOVERNMENTAL ACTIVITY
LONG -TERM LIABILITIES
BUSINESS -TYPE ACTIVITIES:
Bonds Payable:
1993 Water /Sewer Refunding
Revenue
1995 Water /Sewer Revenue
2003 Limited G.O. Golf Course
2006 Water /Sewer /SWM Revenue
Less /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
10,000,000 $ 7,985,000 $
2,551,600 1,908,000
0 $ 400,000 $
0 153,000
4,195,000 3,570,000 0
6,277,500 6,277,500 0
258,155 0
223,393) 0
$ 23,024,100 $ 19,775,262 $ 0 $
$ 1,816,931 $ 353,412 $
7,585,000 $ 420,000
1,755,000 160,000
335,000 3,235,000
0 6,277,500
25,679 232,476
20 215 (2031178)
893,464 $ 18,881,798 $
350,000
0
25,679
(20,215)
935,464
0 $ 2,170,343 $
23,024,100 $ 21,592,193 $ 353,412 $
60.000
893,464 $ 21,052,141 $ 995,464
12/01/06 $
02/01/15
12/01/23
12/01/26
$
2,925,000
4,500,000
5,772,500
3,180,000
$ 285,000 $
2,905,000
4,972,500
0
(154,242)
107,602
16,377,500 $ 8,115,860 $ 3,180,000 $
0 $ 285,000
0 225,000
0 425,000
0
3,180,000
0 (59,681)
0 48,588
923,907
$ 0
2,680,000
4,547,500
3,180,000
0
235,000
445,000
184,000
(213,923) 0
156,190 0
$ 10,349,767 $ 864,000
5.00 07/01/10 $ 140,000 $ 36,845 $ 0 $ 7,369 $ 29,476 $ 7,368
1.00 07/01/11 1,313,000 305,354 0 50,893 254,461 50,893
0.50 07/01/08 100,000 75,000 0 25,000 50,000 18,750
0.50 07/01/21 273,870 231,268 0 14,454 216,814 26,051
0.50 07/01/21 219,725 185,545 0 11,597 173,948 11,597
2.00 07/01/24 4,788,000 957,600 3,591,000 113,400 4,435,200 246,400
2.00 07/01/24 912,000 182,400 684,000 21,600 844,800 46,933
1.00 07/01/24 4,196,056 2,937,239 1,049,014 209,803 3,776,450 209,803
$ 11,942,651 $ 4,911,251 $ 5,324,014 $ 454,116 $ 9,781,149 $ 617,795
Compensated Absences:
BUSINESS -TYPE ACTIVITY
LONG -TERM LIABILITIES
TOTAL GOVERNMENTAL AND BUSINESS -
TYPE ACTIVITY LONG -TERM LIABILITIES
128,605 $ 108,818 $ 32,360 $ 63,231 $ 77,947 $ 30,871
$ 203,940 $ 90,609 $ 87,182 $ 207,367 $ 60,000
28,448,756 $ 13,339,869 $ 8,626,983 $ 1,528,436 $ 20,416,230 $ 1,572,666
51,472,856 $ 34,932,062 $ 8,980,395 $ 2,421,900 $ 41,468,371 $ 2,568,130
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 -
2006 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, 2006, 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 $ 74,203,342 $ 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, 2006
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
2007
$ 930,000
$ 913,670
$ 445,000
$ 186,107
2008
972,000
871,310
460,000
171,822
2009
1,281,297
826,421
218,703
157,056
2010
1,394,028
767,418
184,972
148,489
2011
1,455,774
703,125
192,226
140,628
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
$ 18,852,500
$ 7,479,351
$ 4,547,500
$ 1,753,444
Business -Type Activities
Year Ended
December 31
Revenue Bonds
Public Works Trust Fund Loans
Total Long -Term Debt
PRINCIPAL
INTEREST
PRINCIPAL
INTEREST
PRINCIPAL
INTEREST
2007
$ 335,000
$ 295,471
$ 612,448
$ 134,228
$ 947,448
$ 429,699
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
$ 5,860,000
$ 2,489,279
$ 9,781,151
$ 1,373,928
$ 15,641,151
$ 3,863,207
- 63 -
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 $ 13,250 $ 0 $ 0 $ 13,250
Employees' Pension Benefits 0 0 1,336,250 1,336,250
Total $ 13,250 $ 0 $ 1,336,250 $ 1,349,500
There is a Fund Equity Designation of $2,539,443 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 $ 147,788
Customer deposits - Foster golf course 53,203
Revenue bond reserve account 430,444
Total restricted assets $ 631,435
- 64 -
2006 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.
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 $7,140,902 in 2006. Each fund contributes an appropriate amount each year to pay premiums
- 65 -
City of Tukwila
Notes to the Financial Statements
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 2005 and 2006.
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
2006
$ 746,749
3,675,692
(3,692,828)
$ 729,613
Insurance
2005
$ 654,039
3,826,453
(3,733,743)
$ 746,749
Insurance —
LEOFF I
2006
$ 78,784
524,194
(502,482)
$ 100,496
Insurance —
LEOFF I
2005
S 48,365
424,339
(393,920)
$ 78,784
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, 40 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 $515,901 were
recognized for post retirement health care. This represents a $57,560 increase from the previous year.
- 66 -
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Notes to the Financial Statements
This page intentionally left blank.
City of Tukwila
Notes to the Financial Statements
2006 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, 2006
$ 1,076 $ 1,243
1,215 1,135
1,265 1,182
1,349 1,310
$ 167
(80)
(83)
(39)
86.56% $ 112
107.05 0
107.02 0
103.00 0
SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER
AND OTHER CONTRIBUTING ENTITIES
149.11%
N/A
N/A
N/A
Fiscal Year Ending
December 31, 2000
December 31, 2001
December 31, 2002
December 31, 2003
December 31, 2004
December 31, 2005
December 31, 2006
Actual
Employer
Contributions
0
0
0
0
0
0
0
* Beginning in 2003, expenses will be included.
Actual Fire
Insurance
Premiums
$ 25,720
30,819
31,845
36,651
40,812
40,983
45,951
Less Medical
Payments & Total Fund
Expenses * Contributions
$ 0 $ 25,720
40,000 (9,181)
25,000 6,845
3,875 32,776
500 40,312
11,250 29,733
2,114 43,837
Annual Required
Contribution
(ARC)
$ 14,248
14,248
14,248
(6,789)
(6,789)
(6,547)
(6,547)
Percentage of
ARC Contributed
181%
(64)
48
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.
2006 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
Asset Valuation Method
Fair Value
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.
City of Tukwila
Required Supplementary Information
2006 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
2006 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.
- 75 -
10 As, City of Tukwila
Combining Statements - Nonmajor Governmental Funds Page 1 of 1
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, 2006
SPECIAL
REVENUE
DEBT
SERVICE
CAPITAL
PROJECTS
TOTAL
NONMAJOR
FUNDS
$ 901,830 $
1,438,279
0
14,979
40,769
$ 2,395,857 $
198,534 $
571,000
305,813
0
0
1,075,347 $
4,906,727 $
2,194,081
151,770
11,768
9,154
7,273,500 $
6,007,091
4,203,360
457,583
26,747
49,923
10,744,704
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
277,943 $
0
62,894
6,920
801
514
349,072
2,046,785
2,046,785
0 $
0
0
0
0
0
0
1,075,347
1,075,347
0 $
18,860
3,330
384
2,750
2,349
27,673
7,245,827
7,245,827
277,943
18,860
66,224
7,304
3,551
2,863
376,745
10,367,959
10,367,959
TOTAL LIABILITIES AND FUND BALANCES
$ 2,395,857 $
1,075,347
7,273,500 $
10,744,704
- 76 -
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page 1 of 1
DESCRIPTION
REVENUES
Taxes
Intergovernmental
Investment Income
Miscellaneous
TOTAL REVENUES
COMBINING STATEME
AND CHANGES IN
NONMAJOR
For the year
Combining Statements - Nonmajor Governmental Funds
NT OF REVENUES, EXPENDITURES,
FUND BALANCES BY FUND TYPE
GOVERNMENTAL FUNDS
ended December 31, 2006
SPECIAL
REVENUE
DEBT
SERVICE
CAPITAL
PROJECTS
TOTAL
NONMAJOR
FUNDS
$ 501,478 $
1,719,327
132,667
8,625
2,362,097
1,503,868 $
51,196
57,751
0
1,612,815
2,200,680 $
39,218
288,206
136,440
2,664,544
4,206,026
1,809,741
478,624
145,065
6,639,456
EXPENDITURES
Current:
Public Safety
Physical Environment
Transportation
Economic Enviroment
Debt Service:
Principal
Interest
Capital Outlay
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)
Net Change in Fund Balances
Fund Balances - Beginning
FUND BALANCES - ENDING
1,469,400
0
4,073
714,246
0
50,420
5,967
2,244,106
117,991
150,000
(581,812)
1,072,463
640,651
758,642
1,288,143
2,046,785 $
0
0
0
0
888,000
954,707
0
1,842, 707
0
244,567
0
0
0
0
804,163
1,048,730
(229,892)
0
0
0
0
1,615,814
0
(47,940)
0
(47,940)
(229,892) 1,567,874
1,305,239 5,677,953
1,075,347 $ 7,245,827 $
1,469,400
244,567
4,073
714,246
888,000
1,005,127
810,130
5,135,543
1,503,913
150,000
(629,752)
1,072,463
592,711
2,096,624
8,271,335
10,367,959
- 77 -
City of Tukwila
Combining and Individual Fund Statements
- 78 -
2006 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 $150,000 annual transfer from the General Fund.
- 79 -
City of Tukwila
1i.
Combining Statements - Nonmajor Governmental Funds
DESCRIPTION
ASSETS
Cash and Cash Equivalents
Investments
Receivables:
Interest on Investments
Due From Other Governmental Units
Investments
TOTAL ASSETS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2006
SPECIAL REVENUE
HOTEL /MOTEL STREET CONTINGENCY
$ 31,555 $ 95,907 $ 58,801 $
507,463 0 55,000
4,184 0 4,659
40,769 0 0
299,531 0 699,436
$ 883,502 $ 95,907 $ 817,896 $
FIRE EQUIPMENT
CUMULATIVE
RESERVE
Page 1 of 1
TOTAL NONMAJOR
SPECIAL REVENUE
FUNDS
58,104 $
95,000
6,136
0
439,312
598,552 $
244,367
657,463
14,979
40,769
1,438,279
2,395,857
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable
Due to Other Governmental Units
Accrued Wages
Accrued Benefits
Deferred Revenue
$ 0 $
62,894
6,920
801
0
0 $
0
0
0
0
0 $
0
0
0
0
277,943 $
0
0
0
514
TOTAL LIABILITIES
FUND BALANCES:
Unreserved - Undesignated
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES $
70,615
812,887
812,887
883,502 $
0
95,907
95,907
95,907 $
0
817,896
817,896
817,896 $
278,457
320,095
320,095
598,552 $
277,943
62,894
6,920
801
514
349,072
2,046,785
2,046,785
2,395,857
2006 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, 2006
SPECIAL REVENUE
HOTEL /MOTEL
STREET
FIRE EQUIPMENT
CUMULATIVE
CONTINGENCY RESERVE
TOTAL NONMAJOR
SPECIAL REVENUE
FUNDS
$ 501,478 $
482,013
35,080
8,410
1,026,981
0 $
270,418
14,115
0
284,533
0 $
0 $
35,941
0
35,941
0 $
966,896 $
47,530
215
1,014,641
501,478
1,719,327
132,667
8,625
2,362,097
EXPENDITURES
Current:
Public Safety
Transportation
Economic Environment
Interest
Capital Outlay
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)
0
0
714,246
50,420
5,967
770,633
256,348
0
0
1,072,463
1,072,463
0
4,073
0
0
0
4,073
0
0
0
0
0
0
1,469,400
0
0
0
0
1,469,400
1,469,400
4,073
714,246
50,420
5,967
2,244,106
280,461
0
(581,812)
0
(581,812)
35,941
0
0
0
(454,759)
150,000
0
0
0
150,000
Net Change in Fund Balances
Fund Balances - Beginning
FUND BALANCES - ENDING
1,328,811 (301,351)
(515,924) 397,258
$ 812,887 $ 95,907 $
35,941
781,955
817,896 $
(304,759)
624,854
320,095 $
117,991
150,000
(581,812)
1,072,463
640,651
758,642
1,288,143
2,046,785
-81 -
City of Tukwila
Combining Statements - Nonmajor Governmental Funds
DESCRIPTION
REVENUES
Taxes
Intergovernmental
Investment Income
Miscellaneous
TOTAL REVENUES
HOTEL /MOTEL TAX
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
For the Year Ended December 31, 2006
BUDGETED AMOUNTS
ORIGINAL FINAL
ACTUAL
AMOUNTS
Page 1 of 4
VARIANCE WITH
FINAL BUDGET
POSITIVE /(NEGATIVE)
$
EXPENDITURES
Current:
Economic Environment
Interest
Capital Outlay
TOTAL EXPENDITURES
420,000 $ 420,000 $
464,000 464,000
8,000 8,000
5,000 5,000
897,000 897,000
877,000 877,000
20,000 20,000
10,000
907,000 897,000
501,478 $
482,013
35,080
8,410
1,026,981
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (10,000) 0
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
0 0
0 0
720,213
50,420
770,633
256,348
0
1,072,463
$
0 0
(10,000) 0
628,189 628,189
618,189 $ 628,189 $
1,072,463
81,478
18,013
27,080
3,410
129,981
156,787
(30,420)
0
126,367
256,348
0
1,072,463
1,072,463
1,328,811 1,328,811
(515,924) (1,144,113)
812,887 $ 184,698
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page 2 of 4 Combining Statements - Nonmajor Governmental Funds
DESCRIPTION
REVENUES
STREET FUND
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
For the Year Ended December 31, 2006
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE)
Intergovernmental $ 275,000 $ 275,000 $ 270,418 $ (4,582)
Investment Income 10,000 10,000 14,115 4,115
Miscellaneous 0 0 0 0
TOTAL REVENUES 285,000 285,000 284,533 (467)
EXPENDITURES
Current:
Public Safety 0 0 0 0
Transportation 0 0 4,072 (4,072)
Capital Outlay 50,000 50,000 0 50,000
TOTAL EXPENDITURES 50,000 50,000 4,072 45,928
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 235,000 235,000 280,461 45,461
OTHER FINANCING SOURCES (USES)
Transfers In 0 0 0 0
Transfers (Out) (581,816) (581,816) (581,812) (4)
TOTAL OTHER FINANCING
SOURCES AND (USES) (581,816) (581,816) (581,812) (4)
Net Change in Fund Balance (346,816) (346,816) (301,351) 45,465
Fund Balance - Beginning 378,827 378,827 397,258 18,431
FUND BALANCE - ENDING $ 32,011 $ 32,011 $ 95,907 $ 63,896
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, 2006
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE)
Intergovernmental
Investment Income
Miscellaneous
TOTAL REVENUES
$
0 $ 0 $ 0 $ 0
20,000 20,000 35,941 15,941
0 0 0 0
20,000 20,000 35,941 15,941
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
20,000 20,000 35,941 15,941
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 20,000 20,000 35,941 15,941
Fund Balance - Beginning 778,364 778,364 781,955 3,591
FUND BALANCE - ENDING $ 798,364 $ 798,364 $ 817,896 $ 19,532
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
zge 4 of 4 Combining Statements - Nonmajor Governmental Funds
DESCRIPTION
REVENUES
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, 2006
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE)
Intergovernmental $ 925,000 $ 925,000 $ 966,896 $ 41,896
Investment Income 10,000 10,000 47,530 37,530
Miscellaneous 0 0 215 215
TOTAL REVENUES 935,000 935,000 1,014,641 79,641
EXPENDITURES
Current:
Public Safety 0 505,252 599,652 (94,400)
Debt Service 2,000 0 0 0
Capital Outlay 1,375,000 869,748 869,748 0
TOTAL EXPENDITURES 1,377,000 1,375,000 1,469,400 (94,400)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (442,000) (440,000) (454,759) (14,759)
OTHER FINANCING SOURCES (USES)
Transfers In 150,000 150,000 150,000 0
Transfers (Out)
TOTAL OTHER FINANCING
SOURCES AND (USES) 150,000 150,000 150,000 0
Net Change in Fund Balance (292,000) (290,000) (304,759) (14,759)
Fund Balance - Beginning 633,721 633,721 624,854 (8,867)
FUND BALANCE - ENDING $ 341,721 $ 343,721 $ 320,095 $ (23,626)
City of Tukwila
Combining and Individual Fund Statements
2006 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 Page 1 of 1
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2006
DEBT SERVICE
LIMITED TAX G.O. TOTAL NONMAJOR
LIMITED TAX LIMITED TAX LIMITED TAX REFUNDING DEBT SERVICE
DESCRIPTION G.O. 1999 G.O. 2000 G.O. 2003 BONDS 2003 FUNDS
ASSETS
Cash and Cash Equivalents $ 70,681 $ 28,985 $ 39,221 $ 59,647 $ 198,534
Investments 45,000 145,000 242,000 139,000 571,000
Receivables:
Taxes 115,360 54,415 54,415 81,623 305,813
TOTAL ASSETS $ 231,041 $ 228,400 $ 335,636 $ 280,270 $ 1,075,347
FUND BALANCES:
Unreserved - Undesignated 231,041 228,400 335,636 280,270 1,075,347
TOTAL FUND BALANCES $ 231,041 $ 228,400 $ 335,636 $ 280,270 $ 1,075,347
- 88 -
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page I q/' 1 Combining Statements - Nonmajor Governmental Funds
DESCRIPTION
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2006
DEBT SERVICE
LIMITED TAX G.O. TOTAL NONMAJOR
LIMITED TAX LIMITED TAX LIMITED TAX REFUNDING DEBT SERVICE
G.O. 1999 G.O. 2000 G.O. 2003 BONDS 2003 FUNDS
REVENUES
Taxes $ 567,368 $ 267,551 $ 267,551 $ 401,398 $ 1,503,868
Intergovernmental 0 51,196 0 0 51,196
Investment Income 21,094 7,644 11,944 17,069 57,751
TOTAL REVENUES 588,462 326,391 279,495 418,467 1,612,815
EXPENDITURES
Debt Service:
Principal 400,000 153,000 0 335,000 888,000
Interest 432,409 97,875 272,219 152,204 954,707
TOTAL EXPENDITURES 832,409 250,875 272,219 487,204 1,842,707
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (243,947) 75,516 7,276 (68,737) (229,892)
Net Change in Fund Balances (243,947) 75,516 7,276 (68,737) (229,892)
Fund Balances - Beginning 474,988 152,884 328,360 349,007 1,305,239
FUND BALANCES - ENDING $ 231,041 $ 228,400 $ 335,636 $ 280,270 $ 1,075,347
- 89 -
J.. .4
o
40
0
iiIR!r'
City of Tukwila
1908
Combining Statements - Nonmajor Governmental Funds
DESCRIPTION
REVENUES
Taxes
Investment Income
TOTAL REVENUES
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, 2006
BUDGETED AMOUNTS
ORIGINAL FINAL
ACTUAL
AMOUNTS
Page 1 of 4
VARIANCE WITH
FINAL BUDGET
POSITIVE /(NEGATIVE)
EXPENDITURES
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
$ 530,000 $
10,000
540,000
530,000 $
10,000
540,000
567,368
21,094
588,462
400,000 400,000 400,000
432,605 432,605 432,409
832,605 832,605 832,409
$ 37,368
11,094
48,462
0
196
196
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
Net Change in Fund Balance
Fund Balance - Beginning
FUND BALANCE - ENDING
(292,605) (292,605) (243,947)
(292,605) (292,605) (243,947)
433,403 433,403 474,988
140,798 $ 140,798 $ 231,041 $
48,658
48,658
41,585
90,243
2006 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, 2006
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
DESCRIPTION ORIGINAL FINAL AMOUNTS POSITWE /(NEGATIVE)
REVENUES
Taxes $ 250,000 $ 250,000 $ 267,551 $ 17,551
Intergovernmental 0 0 51,196 51,196
Investment Income 3,000 3,000 7,644 4,644
TOTAL REVENUES 253,000 253,000 326,391 73,391
EXPENDITURES
Debt Service:
Principal 153,000 153,000 153,000 0
Interest 97,875 97,875 97,875 0
TOTAL EXPENDITURES 250,875 250,875 250,875 0
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,125 2,125 75,516 73,391
Net Change in Fund Balance 2,125 2,125 75,516 73,391
Fund Balance - Beginning 149,358 149,358 152,884 3,526
FUND BALANCE - ENDING $ 151,483 $ 151,483 $ 228,400 $ 76,917
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, 2006
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE)
REVENUES
Taxes $ 250,000 $ 250,000 $ 267,551 $ 17,551
Investment Income 4,000 4,000 11,944 7,944
TOTAL REVENUES 254,000 254,000 279,495 25,495
EXPENDITURES
Debt Service:
Interest 272,327 272,327 272,219
TOTAL EXPENDITURES 272,327 272,327 272,219
109
109
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (18,327) (18,327) 7,276 25,603
Net Change in Fund Balance (18,327) (18,327) 7,276 25,603
Fund Balance - Beginning 311,221 311,221 328,360 17,139
FUND BALANCE - ENDING $ 292,894 $ 292,894 $ 335,636 $ 42,742
2006 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, 2006
BUDGETED AMOUNTS ACTUAL
ORIGINAL FINAL AMOUNTS
VARIANCE WITH
FINAL BUDGET
POSITIVE /(NEGATIVE)
$
EXPENDITURES
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
375,000 $
5,000
380,000
375,000 $
5,000
380,000
401,398 $
17,069
418,467
335,000 335,000 335,000
152,400 152,400 152,204
487,400 487,400 487,204
26,398
12,069
38,467
0
196
196
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
Net Change in Fund Balance
Fund Balance - Beginning
FUND BALANCE - ENDING
$
(107,400) (107,400) (68,737)
(107,400) (107,400) (68,737)
322,254 322,254 349,007
214,854 $ 214,854 $ 280,270 $
38,663
38,663
26,753
65,416
City of Tukwila
Combining Statements - Nonmajor Governmental Funds
- 94 -
2006 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 Improvements - 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 - Nonmajor 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, 2006
CAPITAL PROJECTS
LAND
ACQUISITION,
RECREATION
AND PARK FACILITY
DEVELOPMENT REPLACEMENT
GENERAL
GOVERNMENT
IMPROVEMENTS
Page 1 of 1
TOTAL NONMAJOR
CAPITAL PROJECTS
FUNDS
126,347 $ 136,747 $
2,844,264 1,434,591
84,122 2,349
5,572 3,525
0 0
899,350 895,083
$ 3,959,655 $ 2,472,295 $
88,917 $
275,862
65,298
2,670
9,154
399,649
841,550 $
352,011
4,554,717
151,769
11,767
9,154
2,194,082
7,273,500
LIABILITIES AND FUND BALANCES
LIABILITIES
Retainage Payable $ 0 $
Accrued Wages 0
Accrued Benefits 0
Customer Deposits 250
Deferred Revenues 0
TOTAL LIABILITIES 250
FUND BALANCES:
Unreserved - Undesignated
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES $
3,959,405
3,959,405
3,959,655 $
0 $
0
0
2,500
2,349
4,849
2,467,446
2,467,446
2,472,295 $
18,860 $
3,330
384
0
0
22,574
818,976
818,976
841,550 $
18,860
3,330
384
2,750
2,349
27,673
7,245,827
7,245,827
7,273,500
- 96 -
2006 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, 2006
CAPITAL PROJECTS
LAND
ACQUISITION,
RECREATION
AND PARK FACILITY
DEVELOPMENT REPLACEMENT
GENERAL
GOVERNMENT
IMPROVEMENTS
TOTAL NONMAJOR
CAPITAL PROJECTS
FUNDS
1,745,287 $
0
130,389
92,411
1,968,087
134,303 $
0
106,434
44,029
284,766
321,090 $
39,218
51,383
0
411,691
2,200,680
39,218
288,206
136,440
2,664,544
EXPENDITURES
Current:
Physical Environment
Culture and Recreation
Capital Outlay
TOTAL EXPENDITURES
4,303 (2) 240,266 244,567
0 0 0 0
87,221 91,765
91,524 91,763
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,876,563 193,003
OTHER FINANCING SOURCES (USES)
Transfers -Out
TOTAL OTHER FINANCING SOURCES AND (USES)
(47,940) 0
(47,940) 0
625,177 804,163
865,443 1,048,730
(453,752) 1,615,814
0 (47,940)
0 (47,940)
Net Change in Fund Balances
Fund Balances - Beginning
FUND BALANCES - ENDING
1,828,623 193,003
2,130,782 2,274,443
$ 3,959,405 $ 2,467,446 $
(453,752) 1,567,874
1,272,728 5,677,953
818,976 $ 7,245,827
- 97 -
City of Tukwila
Combining Statements - Nonmajor Governmental Funds
DESCRIPTION
REVENUES
Taxes
Intergovernmental
Investment Income
Miscellaneous
TOTAL REVENUES
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, 2006
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
AMOUNTS
Page 1 of 3
VARIANCE WITH
FINAL BUDGET
POSITIVE /(NEGATIVE)
$
EXPENDITURES
Current:
Physical Environment
Capital Outlay
TOTAL EXPENDITURES
552,000 $
759,000
15,000
390,000
1,716,000
0
1,789,000
1,789,000
552,000 $
759,000
15,000
390,000
1,716,000
4,303
1,784,697
1,789,000
1,745,287 $
0
130,389
92,411
1,968,087
4,303
87,221
91,524
1,193,287
(759,000)
115,389
(297,589)
252,087
0
1,697,476
1,697,476
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers -Out
TOTAL OTHER FINANCING
SOURCES AND (USES)
Net Change in Fund Balance
Fund Balance - Beginning
FUND BALANCE - ENDING
(73,000)
(47,942)
(47,942)
(120,942)
1,938,999
1,818,057
(73,000)
(47,942)
(47,942)
(120,942)
1,938,999
1,818,057 $
1,876,563
(47,940)
(47,940)
1,828,623
2,130,782
3,959,405
1,949,563
2
2
1,949,565
191,783
2,141,348
- 98 -
2006 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, 2006
BUDGETED AMOUNTS
ORIGINAL FINAL
ACTUAL
AMOUNTS
VARIANCE WITH
FINAL BUDGET
POSITIVE /(NEGATIVE)
$
EXPENDITURES
Current:
Physical Environment
Capital Outlay
TOTAL EXPENDITURES
130,500 $
25,000
40,000
195,500
25,000
785,000
810,000
130,500 $
25,000
40,000
195,500
0
810,000
810,000
134,303 $
106,434
44,029
284,766
0
91,763
91,763
3,803
81,434
4,029
89,266
0
718,237
718,237
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Sale of Capital Assets
TOTAL OTHER FINANCING
SOURCES AND (USES)
Net Change in Fund Balance
Fund Balance - Beginning
FUND BALANCE - ENDING
(614,500)
3,500,000
(614,500)
3,500,000
193,003
0
807,503
(3,500,000)
$
3,500,000
2,885,500
2,267,744
5,153,244 $
3,500,000
2,885,500
2,267,744
5,153,244 $
0
193,003
2,274,443
2,467,446 $
(3,500,000)
(2,692,497)
6,699
(2,685,798)
- 99 -
City of Tukwila
Combining Statements - Nonmajor Governmental Funds
DESCRIPTION
REVENUES
Taxes
Intergovernmental
Investment Income
TOTAL REVENUES
GENERAL GOVERNMENT IMPROVEMENTS
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
For the Year Ended December 31, 2006
BUDGETED AMOUNTS
ORIGINAL FINAL
ACTUAL
AMOUNTS
Page 3 of 3
VARIANCE WITH
FINAL BUDGET
POSITIVE /(NEGATIVE)
$
EXPENDITURES
Current:
Physical Environment
Capital Outlay
TOTAL EXPENDITURES
300,000 $
20,000
20,000
340,000
107,272
1,690,000
1,797,272
300,000 $
20,000
20,000
340,000
240,266
1,557,006
1,797,272
321,090 $
39,218
51,383
411,691
240,266
625,177
865,443
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
Net Change in Fund Balance
Fund Balance - Beginning
FUND BALANCE - ENDING
$
(1,457,272)
(1,457,272)
1,460,936
3,664 $
(1,457,272)
(1,457,272)
1,460,936
3,664 $
(453,752)
(453,752)
1,272,728
818,976 $
21,090
19,218
31,383
71,691
0
931,829
931,829
1,003,520
1,003,520
(188,208)
815,312
- 100 -
2006 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.
4110'
° i City of Tukwila
Combining Statements - Internal Service Funds Page 1 of 1
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, 2006
EQUIPMENT
RENTAL
INSURANCE -
INSURANCE LEOFF I
TOTAL
$ 42,310 $ 33,457 $
3,233,926 928,000
23,737 0
41,000 0
3,340,973 961,457
83,810 $ 159,577
625,000 4,786,926
0 23,737
0 41,000
708,810 5,011,240
Noncurrent Assets:
Capital Assets:
Machinery and Equipment
Less: Accumulated Depreciation
Total Capital Assets (net of
accumulated depreciation)
Total Assets
8,193,183
(4,662,982)
3,530,201
6,871,174
0 0 8,193,183
0 0 (4,662,982)
0 0 3,530,201
961,457 708,810 8,541,441
LIABILITIES
Current Liabilities:
Other Current Liabilities
Total Current Liabilities
13,031 729,613 100,496 843,140
13,031 729,613 100,496 843,140
NET ASSETS
Invested in Capital Assets
Unrestricted
TOTAL NET ASSETS
3,530,201
3,327,942
$ 6,858,143 $
0 0 3,530,201
231,844 608,314 4,168,100
231,844 $ 608,314 $ 7,698,301
- 102 -
2006 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, 2006
EQUIPMENT
RENTAL
INSURANCE
INSURANCE -
LEOFF I
TOTAL
OPERATING REVENUES
Charges for Services
Other Operating Revenues
Total Operating Revenues
1,558,445 $
42,794
1,601,239
4,148,321 $
930
4,149,251
481,343 $ 6,188,109
0 43,724
481,343 6,231,833
OPERATING EXPENSES
Operations and Maintenance
Administrative and General
Depreciation
Total Operating Expenss
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES):
Investment Income
Gain (Loss) on Sale of Capital Assets
Total Nonoperating Revenues (Expenses)
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
Capital Contributions
Transfers In
Change in Net Assets
Total Net Assets - Beginning
Total Net Assets - Ending
1,045,264
158,160
642,921
1,846,345
(245,106)
154,808
56,899
3,692,829
0
0
3,692,829
456,422
35,009
0
524,194 5,262,287
0 158,160
0 642,921
524,194 6,063,368
(42,851) 168,465
211,707
35,009
33,920 223,737
0 56,899
33,920 280,636
(33,399)
996,664
284,000
1,247,265
5,610,878
6,858,143 $
491,431
0
0
491,431
(259,587)
231,844 $
(8,931)
0
0
(8,931)
617,245
608,314 $
449,101
996,664
284,000
1,729,765
5,968,536
7,698,301
- 103 -
City of Tukwila
Combining Statements - Internal Service Funds
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2006
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
RENTAL INSURANCE
INSURANCE -
LEOFF I
$ 1,419,727 $
(515,402)
(335,274)
(158,160)
CASH FLOWS FROM NONCAPITAL FINANCING ACTMTIES:
Transfers to Other Funds
Transfers from Other Funds
NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES
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 ACTMTIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from Sales and Maturities of Investments
Purchase of Investments
Interest on Investments
NET CASH PROVIDED (USED) BY INVESTING ACTMTIES
0
410,891
(158,160)
128,373
(29,787)
56,899
(890,431)
284,000
4,131,185 $
(3,692,829)
0
0
8,038
446,394
0
0
0
0
0
0
481,343 $
(502,482)
0
0
0
(21,139)
0
0
0
0
0
0
(549,532)
2,000,000
(2,050,000)
154,808
104,808
0
0
50,000 100,000
(500,000) (100,000)
35,009 33,920
(414,991) 33,920
Page 1 of 1
TOTAL
6,032,255
(4,710,713)
(335,274)
(158,160)
8,038
836,146
(158,160)
128,373
(29,787)
56,899
(890,431)
284,000
(549,532)
2,150,000
(2,650,000)
223,737
(276,263)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31 $
(63,620)
105,930
42,310 $
31,403 12,781
2,054 71,029
(19,436)
179,013
33,457 $ 83,810 $ 159,577
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED) BY OPERATING ACTMTIES:
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
(245,106) 456,422 (42,851) 168,465
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
642,921 0 0 642,921
(4,256) 7,108 0 2,852
4,300 0 0 4,300
0 (17,136) 21,712 4,576
13,032 0 0 13,032
655,997 (10,028) 21,712 667,681
410,891 $ 446,394 $ (21,139) $ 836,146
NON CASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Capital Assets Contributed From Other Governmental Units
29,768 $ 0 $
- 104 -
0 $ 29,768
2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Statistical Section
STATISTICAL TABLES
j
City of Tukwila
Statistical Section
Governmental Activities
TABLE 1
NET ASSETS BY COMPONENT(a)
Last Five Fiscal Years (b)
Invested in capital
assets, net of
Year related debt
Business -Type Activities
Invested in
capital assets,
net of related
Restricted Unrestricted Total debt Restricted Unrestricted Total
2002 $
2003
2004
2005
2006
102,619,488
118,950,364
123,038,903
129,855,251
133,129,382
$ 389,322
809,012
1,107,362
1,305,239
1,305,239
$ 23,825,950 $126,834,760 $29,032,974 $1,311,344 $ 8,785,499 $39,129,817
24,341,822 144,101,198 29,807,787 887,398 9,070,664 39,765,849
25,873,104 150,019,369 30,848,350 960,485 9,664,654 41,473,489
25,289,571 156,450,061 31,370,812 577,587 9,909,896 41,858,295
29,506,541 163,941,162 34,017,190 435,995 12,070,451 46,523,636
(a) All amounts are reported on the accrual basis
(b) Amounts presented from year of implementation of GAS &34 (2002) forward
Primary Government
Invested in
capital assets,
net of related
debt
Restricted Unrestricted Total
$131,652,462
148,758,151
153,887,253
161,226,063
167,146,572
$ 1,700,666 $ 32,611,449 $165,964,577
1,696,410 33,412,486 183,867,047
2,067,847 35,537,758 191,492,858
1,882,826 35,199,467 198,308,356
1,741,234 41,576,992 210,464,798
Page 2 of 26
City of Tukwila
Statistical Section
EXPENSES
Governmental Activities
Public Safety
Physical Environment
Transportation
Economic Environment
Mental and Physcial Health
Culture and Recreation
Interest on Long Term Debt
Total Governmental Activities
Business Type Activities
Water /Sewer Utility
Foster Golf Course
Surface Water Utility
Total Business Type Activities
Total Primary Government Expenses
PROGRAM REVENUES
Governmental Activities
Charges for Services
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Cultural and Recreation
Mental & Physical Health
Interest on Long Term Debt
TABLE 2
CHANGES IN NET ASSETS (a)
Last Five Fiscal Years
2002
2003
$ 5,622,413
16,824,082
1,736,826
3,742,931
2,982,802
2,756,612
907,840
34,573,506
6,693,879
1,372,536
1,480,645
9,547,060
$ 6,038,146
18,172,209
2,022, 722
6,524,495
3,437,515
3,377,383
937,177
40,509,647
6,673,319
1,255,562
1,671,519
9,600,400
2004
2005
2006
$ 6,167,738
18,769,074
1,442,209
4,962,043
3,469,673
3,680,402
1,034,841
39,525,980
6,774,102
1,670,400
1,625,579
10,070,081
$ 6,421,839
20,300,709
1,363,049
4,171,173
3,404,605
3,887,871
1,012,239
40,561,485
7,105,020
1,751,709
1,685,663
10,542,392
$ 7,402,398
21,839,070
2,734,592
5,335,214
3,600,158
3,683
4,234,889
981,573
46,131,577
7,354,876
1,832,303
1,642,204
10,829,383
$ 44,120,566 $ 50,110,047 $ 49,596,061 $ 51,103,877
1,336,721
360,977
2,779
63,809
733,544
500,100
975,826 781,653
907,980 937,873
13,341 5,005
104,199 102,614
851,093 1,977,676
852,791 894,681
1,376,749
1,328,369
12,400
122,201
1,027,812
693,857
$ 56,960,960
1,243,936
538,576
10,000
247,026
1,756,240
758,385
Page 3 of 26
City of Tukwila
Statistical Section
TABLE 2
CHANGES IN NET ASSETS (a)
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities Program Revenues
Business Type Activities
Charges for Services
Water /Sewer Utility
Foster Golf Course
Surface Water Utility
Operating Grants and Contributions
Capital Grants and Contributions
Total Business Type Activities Program Revenues
Total Primary Government Program Revenues
Net (Expense) /Revenue
Governmental Activities
Business Type Activities
Total Primary Government Net Expense
General Revenues and Other Changes in Net Assets
Governmental Activities
Taxes
Property Tax
Retail Sales and Use Tax
Natural Gas Use Tax
Hotel /Motel Tax
Utility Tax
Business Tax
Excise Tax
State Entitlements, Impact Fees in Lieu of Taxes
Last Five Fiscal Years
2002
2,200,901
15,201,034
20,399,865
6,756,117
1,199,837
1,829,264
14,830
704,389
10,504,437
2003
1,612,016
18,924,274
24,241,520
7,177,788
647,969
1,872,195
576,605
10,274,557
2004
1,607,688
3,705,424
10,012,614
7,620,572
1,239,274
1,819,703
588,891
11,268,440
2005 2006
1,525,579 1,897,543
3,060,960 5,675,493
9,147,927 12,127,199
7,604,711 7,354,876
1,434,933 1,832,303
1,839,760 1,642,204
319,439 1,255,360
11,198,843 12,084,743
$ 30,904,302
$ 34,516,077
$ 21,281,054
$ 20,346,770 $ 24,211,942
(14,173,641)
957,377
$ (13,216,264)
9,696,933
15,494,343
377,532
390,725
2,406,199
154,832
(16,268,127) (29,513,366) (31,413,558) (34,004,378)
674,157 1,198,359 656,451 2,031,638
$ (15,593,970) $ (28,315,007) $ (30,757,107) $ (31,972,740)
9,912,584 10,336,366 10,631,036 10,973,030
16,171,756 16,492,528 16,887,846 18,236,733
29,667 381,706 415,652
369,806 390,221 443,605 501,478
1,591,922 2,309,787 2,646,356 2,930,332
1,167,874 1,614,587 1,732,739 2,097,082
3,567,543 4,100,309 3,229,155 4,941,461
170,477 191,589 192,816 185,475
Page 4 of 26
City of Tukwila
Statistical Section
Unrestricted Investment Earnings
Gain on Sale of Capital Assets
Equity in Income of Joint Venture
Transfers
Total Governmental Activities
Business Type Activities
Retail Sales and Use Taxes
Unrestricted Investment Interest
Transfers
Total Business Type Activities
Total Primary Government
Change in Net Assets
Governmental Activities
Business Type Activities
Total Primary Government
Net Assets Beginning of Year
Governmental Activities
Business Type Activities
Net Assets End of Year
Governmental Activities
Prior Period Adjustments
TABLE 2
CHANGES IN NET ASSETS (a)
Last Five Fiscal Years
2002 2003 2004 2005 2006
998,394
209,554
297,388
(95,870) 254,130
29,930,030 33,534,565
309,438 416,483 768,097 1,923,171
19,035 106,776 467,510
(450,000) 824,118 1,372,652
35,431,537 37,844,250 44,044,576
228,458 241,723
529,733 216,005 188,242 310,750
95,870 (254,130) 450,000 (824,118)
625,603 (38,125) 866,700 (271,645)
645,473
539,463
1,250,000
2,434,936
30,555,633 33,496,440 36,298,237 37,572,605 46,479,512
15,756,389 17,266,438 5,918,171 6,430,692 7,491,102
1,583,899 636,032 2,065 059 384,806 4,580,734
17,340,288 17,902,470 7,983,230 6,815,498 12,071,836
111,078,371 126,834,760 144,101,198 150,019,369 156,450,061
37,545,918 39,129,817 39,765,849 41,473,489 41,942,902
126,834,760 144,101,198 150,019,369 156,450,061 163,941,163
(357,419)
Business Type Activities 39,129,817 39,765,849 41,473,489 41,858,295 46,523,636
k ... 1L:..<Tip
o 2
1908 <-
City of Tukwila
Statistical Section
TABLE 3
FUND BALANCES OF GOVERNMENTAL FUNDS (a)
Last Ten Fiscal Years
General Fund All other Governmental Funds
Fiscal
Year Reserved Unreserved Total Reserved Unreserved Total
1997 $ 12,200 $ 4,308,788 $ 4,320,988 $ - $ $
1998 12,200 4,275,183 4,287,383
1999 12,500 8,459,663 8,472,163
2000 12,500 10,372,715 10,385,215 - - -
2001 12,500 7,646,644 7,659,144 - -
2002 12,700 3,380,158 3,392,858 15,300 13,731,612 13,746,912
2003 613,000 6,247,054 6,860,054 765,300 13,637,147 14,402,447
2004 557,690 8,533,639 9,091,329 720,860 12,132,723 12,853,583
2005 557,690 8,408,104 8,965,794 705,560 12,653,113 13,358,673
2006 13,250 8,693,215 8,706,465 - 16,821,516 16,821,516
(a) All amounts are reported on the modified - accrual basis
Page 1 of 2
City of Tukwila
Revenues
Statistical Section
Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Investment Income
Miscellaneous
Total Revenues
Expenditures
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Mental & Physical Health
Culture and Recreation
Debt Service
Principal
Interest
Bond Issuance Costs
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
TABLE 4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (a)
Last Ten Fiscal Years
1997 1998
1999 2000
$ 17,870,397 $ 21,298,298
593,765 777,903
1,074,219 1,261,709
745,455 1,013,912
236,763 283,047
261,384 239,222
169 417 235 261
20,951,400
$24,768,410 $ 23,381,378
926,208 1,439,052
1,086,856 856,218
1,158,173 1,857,182
340,671 323,919
260,182 555,422
501 688 610,849
25,109,352 29,042,188 29,024,020
$ 3,755,980 $ 3,986,375 $ 4,425,626 $
13,020,989 14,082,467 14,208,347
273,681 319,715 581,748
903,723 945,072 1,010,055
1,886,218 2,130,991 2,131,187
1,523,813
1,617,893
2001
$ 22,019,850
921,809
959,350
1,232,149
285,000
632,537
411,614
26,462,309
4,985,167 $
15,333,820
1,060,844
1,029,766
2,103,066
1,796,008 1,935,736
290 598 269 084 416 608 542,636
21,655,002 23,351,597 24,569,579 26,991,035
2002
$ 28,156,041
822,810
16,689,193
1,201,080
338,484
859,765
489,806
48,557,179
5,390,820 $
16,056,801
805,029
1,135,903
2,349,462
2,110,344
524,309
28,372,668
$ (703,602) $ 1,757,755 $ 4,472,609 $ 2,032,985 $ (1,910,359) $
2003
$ 31,986,222
785,823
15,005,227
1,796,946
245,585
222,460
1,066,247
51,108,510
5,648,745 $
16,711,088
1,228,774
2,202,888
2,974,513
2,457,973
2004
$ 34,148,173
808,821
6,306,463
2,919,115
147,137
356,625
993,386
45,681,724
5,892,912 $
17,532,136
1,509,946
4,779,885
3,429,674
2005 2006
$ 34,624,875 $ 37,801,814
1,002,683 1,273,228
5,672,810 7,083,032
2,649,678 2,345,931
116,737 221,097
638,196 1,159,971
1,000,775 1,397,585
45,705,754 51,282,658
5,982,594 $
18,393,514
883,914
2,620,038
3,461,092
2,985,083 3,187,113
718,000 754,000
925,414 924,964
112,363
15,636,782
53,557,745
17,306,146
50,173,541
6,136,540 6,882,594
19,604,151 20,953,226
788,105 2,139,959
1,705,692 2,447,096
3,384,928 3,539,657
3,683
3,358,583 3,687,580
804,000 851,000 888,000
1,057,974 1,033,474 1,006,161
8,057,070
44,447,309
7,344,326 6,540,452
38,070,259 48,088,408
(1,616,362) $ (2,449,235) $ 1,232,411 $ 1,498,955 3,194,250
Page 2 of 2
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Other Financing Sources (Uses)
Transfers In $ 1,706,973 $ 5,513,212 $ 350,000 $ 150,000 $ 2,143,581
Transfers Out (25,000) (50,000) (50,000) (175,000) (175,000) (1,845,331) (5,288,570) (900,000) (1,305,000) (2,430,769)
Sale of Capital Assets 4,694 858 4,529 140,535 1,646 177,995 - 35,600 296,451
General Obligation Bonds Issued 6,277,500 -
General Obligation Refunding Bonds Issu, - - - - - - 4,195,000 - -
Premium on General Obligation Debt - - - - - - 65,392 - -
Premium on General Obligation Refunding DE - - - - - - 248,672 - -
Payment to Refunded Bond Escrow Agen - - - - - - (4,439,240) - -
TotalOtherFinancingSources (Uses) (20,306) (49,142) (45,471) (34,465) (173,354) 39,637 6,571,966 (550,000) (1,119,400) 9,263
Net Change in Fund Balances $ (723,908) $ 1,708,613 $ 4,427,138 $ 1,998,520 $ (2,083,713) $ (1,576,725) $ 4,122,731 $ 682,411 $ 379,555 $ 3,203,513
Fund Balances Beginning of Year $ 5,095,129 $ 4,320,988 $ 4,287,383 $ 8,472,163 $ 10,385,215.00 $ 18,716,495.00 $ 17,139,770.00 $ 21,262,501.00 $ 21,944,912.00 $ 22,324,467
Residual Equity Transfers In 256,140 66,890
Residual Equity Transfers (Out) (50,233) (1,998,358) (242,358) (152,358) (642,358)
FUND BALANCES END OF YEAR $ 4,320,988 $ 4,287,383 $ 8,472,163 $ 10,385,215 $ 7,659,144 $ 17,139,770 $ 21,262,501 $ 21,944,912 $ 22,324,467 $ 25,527,980
(a) All amounts are reported on the modified - accrual basis
City of Tukwila
Statistical Section
General Governmental Tax Revenues by Source
Real & Personal Property Taxes
Local Retail Sales and Use Taxes
Local Sales Tax - Criminal Justice
Utility Taxes
Natural Gas Use Tax
Hotel /Motel Taxes
Excise Taxes:
Games /Amusement
Real Estate Excise Tax
Leasehold
Business Taxes:
Admissions
Parking
Other Taxes(a)
Total Taxes
1997
TABLE 5
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
Last Ten Fiscal Years
1998
(Amounts shown in actual dollars)
1999
2000
2001
2002
2003
2004
2005 2006
$ 7,144,031 $ 7,469,235
13,802,451 14,588,346
249,746 267,336
$ 7,901,229
15,844,163
288,456
301,718 416,861
452,724 771,255
505,052 303,347
11,375 111,030
233,586 193,165
1,463 2,518
1,559,074
1,006,116
105,888
237,603
90,256
14,581
$ 8,378,208
18,488,337
312,642
$ 9,326,336
16,008,755
336,379
$ 9,487,241
15,165,547
328,796
480,158 442,890 377,532
1,851,345
927,244
140,030
251,701
88,864
11,694
1,713,039
638,946
93,394
296,950
86,075
1,765
1,646,419
678,442
82,190
309,202
81,523
68
$ 9,854,007
15,842,959
328,797
2,328,608
369,806
2,238,276
1,194,502
67,540
293,589
137,599
67,225
$ 10,493,728
16,183,887
338,302
3,393,649
29,667
390,221
2,313,532
1,624,514
130,286
338,544
192,181
31,983
$ 10,627,410 $ 11,018,846
16,763,909 17,847,930
363,493 387,761
3,970,297 4,624,631
381,706 415,652
443,605 501,478
2,064,388 1,781,176
1,058,560 3,061,989
102,154 96,501
279,034 264,040
129,764 138,744
6,220 2,838
$ 22,400,428 $ 24,007,950 $ 27,464,227 $ 30,930,223 $ 28,944,529 $ 28,156,960
$ 32,722,908 $ 35,460,494 $ 36,190,540 $ 40,141,586
t4 "Other Taxes" include penalties and interest on delinquent taxes and other miscellaneous tar revenues.
Source: City of Tukwila Finance Department
FISCAL YEAR
City of Tukwila
Statistical Section
Total Tax Levy
Current Tax Collections
Percent of Levy Collected
TABLE 6
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
(Amounts shown in actual dollars)
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
7,379,517 7,568,112 7,993,365 8,538,884 9,362,284 9,843,102 10,136,315 10,489,114 10,731,724 10,973,030
7,043,064 7,347,855 7,745,197 8,273,834 9,222,917 9,380,068 9,701,178 10,228,549 10,511,488 10,081,236
95.44% 97.09% 96.90% 96.90% 98.51% 95.30% 95.71% 97.52% 97.95% 91.87%
Delinquent Tax Collections 100,937 121,283 155,305 104,306 103,419 107,173 152,829 265,163 115,922 137,961
Total Tax Collections 7,144,001 7,469,138 7,900,502 8,378,140 9,326,336 9,487,241 9,854,007 10,493,712 10,627,410 10,219,197
of Total Tax Collections
To Tax Levy
96.81% 98.69% 98.84% 98.12% 99.62% 96.38% 97.21% 100.04% 99.03% 93.13%
Source: Kng County Office of Finance
City of Tukwila
Statistical Section
TABLE 7
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Personal
FISCAL YEAR Real Property Property
Public
Utilities
Total
Total Assessed Direct
Value Tax Rate
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
$ 1,914,169,506 $
1,997,951,558
2,112,275,730
2,349,904,622
2,544,588,267
2,715,355,120
2,832,422,720
2,916,855,190
3,091,233,279
3,399,709,737
468,920,180 $ 49,050,958
530,184,641 47,373,878
579,434,372 55,946,225
580,108,305 74,515,846
606,806,225 192,651,250
604,479,409 169,870,128
471,448,140 80,219,849
447,099,099 77,169,236
457,546,448 61,779,040
482,100,071 66,123,704
$ 2,432,140,644
2,575,510,077
2,747,656,327
3,004,528,773
3,344,045,742
3,489,704,657
3,384,090,709
3,441,123,525
3,610,558,767
3,947,933,512
*Real, personal, and state public service property have been assessed at 100 %of the estimated value.
Source: King County Department of Assessments
3.11000
3.10000
3.10000
3.11256
2.94537
2.91064
3.10754
3.11712
3.03706
2.84033
Wyly
1908 <-
City of Tukwila
Statistical Section
Table 8
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(per $1,000 of Assessed Valuation)
CITY OF TUKWILA
Last Ten Fiscal Years
Emergency Tukwila
Fiscal General Special King Port of Medical School Dist Hospital
Year Levy Levy Total WA State Counte) Seattle Service #406 Flood Control District #1 Total
1997 3.10000 0.01000 3.11000 3.51138 1.85109 0.26466 0.00000 4.84901 0.05036 0.15934 13.79584
1998 3.10000 0.00000 3.10000 3.35872 1.77385 0.23898 0.29000 6.80157 0.05325 0.15354 15.76991
1999 3.10000 0.00000 3.10000 3.30278 1.68951 0.21585 0.27299 5.91717 0.05209 0.11830 14.66869
2000 3.11256 0.00000 3.11256 3.14502 2.10955 0.19029 0.24624 5.54167 0.04957 0.09873 14.49363
2001 2.94537 0.00000 2.94537 2.98946 1.97530 0.18956 0.25000 5.11395 0.04665 0.09643 13.60672
2002 2.91064 0.00000 2.91064 2.89680 1.34948 0.25895 0.24143 4.85812 0.04688 0.09254 12.65484
2003 3.10754 0.00000 3.10754 2.75678 1.96799 0.25402 0.23717 5.05267 0.04669 0.09200 13.51486
2004 3.11712 0.00000 3.11712 2.68951 1.91484 0.25321 0.23182 5.04535 0.04658 0.09039 13.38882
2005 3.03706 0.00000 3.03706 2.49787 1.86293 0.23330 0.21982 5.01637 0.04482 0.59000 13.50217
2006 2.84033 0.00000 2.84033 2.32535 1.75139 0.23158 0.20621 4.78874 0.04212 0.55652 12.74224
(a) Includes King County Library District tax.
Source: King County Department of Assessments
NAME
City of Tukwila
Statistical Section
Table 9
PRINCIPAL PROPERTY TAXPAYERS
December 31, 2006
Type of Business
Boeing Company
WEA Southcenter LLC
MBK Properties (Trammell Crow)
La Pianta LP
Gateway Properties
Rreef America Reit II Corporation
Boeing Employees Credit Union
Heitman
Sterling Realty Organization
KIR Tukwila 050 LLC /KIMCO
Eproperty Tax Incorporated
Federated Department Stores
Group Health Cooperative
Anne Arundel Apartments LLC (Group Health)
Sea -Tuk Warehouse LLC
BRCP Riverview Plaza LLC
Puget Sound Energy /Gas - Electric
Koar - Seatac Partners LP
Pacific Gulf Properties
AMB Property LP
CHA Southcenter LLC (Doubletree Inn)
Merrill Creek Holding LLC (Kenworth Motors)
Lowe's HIW Incorporated
Wig Properties LLC (JC Penney)
Jorgensen Forge Corporation
Qwest Corporation
Tractor Equipment Company
Harnish Group Incorporated
Hill Investment Company
TOTALS
Airplane company
Department Stores
Commercial Properties
Commercial Properties
Credit Union
Commercial Properties
Commercial Properties
Commercial Properties
Investment Property
Department Stores
Apartments
Food Distribution
Commercial Properties
Electric /Gas Utility
Lodging
Commercial Properties
Lodging
Truck Manufacturer
Home Improvement
Department Stores
Steel Manufacturer
Telephone Utility
Truck Equipment
Commercial Properties
2006
2006 Assessed
Valuation
Percent of Total
Assessed Value(a)
$ 402,254,516
134,015,100
75,755,469
57,937,100
55,335,014
50,809,800
35,704,555
34,973,400
33,385,600
29,500,500
23,970,000
22,350,900
19,990,000
19,239,779
19,167,758
18,412,600
17,585,418
15,241,200
15,171,639
13,384,588
13,232,395
11,277,424
10,520,610
6,934,400
$ 1,136,149,765
1997
1997 Assessed
Valuation
Percent of Total
Assessed Value )
10.19% $
3.39%
1.92%
1.47%
1.40%
1.29%
0.90%
0.89%
0.85%
0.75%
0.61%
0.57%
0.51
0.49%
0.49%
0.47%
0.45%
0.39%
0.38%
0.34%
0.34%
0.29%
0.27%
0.18%
28.78%
(a) In 2006 the total assessed property value in the City of Tukwila was $3,947,933,512
(b) In 1997 the total assessed property value in the City of Tukwila was $2,432,140,644.
Source: Kmg County Department of Assessments
520,978,760
93,658,741
50,939,500
50,279,000
37,605,000
20,291,175
25,738,158
25,631,837
20,910,100
16,567,200
13,522,469
12,809,600
15,642,561
22,336,800
15,966,982
14,970,265
21.4%
3.9%
2.1%
2.1%
1.5%
0.8%
0.9%
0.7%
0.6%
0.5%
0.6%
0.9%
0.7%
0.6%
957,848,148
39.5%
City of Tukwila
Statistical Section
TABLE 10
RETAIL SALES TAX COLLECTIONS BY SECTOR
Last Ten Fiscal Years
(Amounts shown are in actual dollars.)
MAJOR INDUSTRY SECTOR 1997 1998 1999 2000 2001 2002 2003 2004 20051x) 2006
Construction and Contracting $ 609,540 $ 772,232 $ 1,359,477 $ 3,192,100 $ 2,104,156 $ 991,702 $ 1,119,595 $ 958,758 $ 676,427
Finance, Insurance & Real Estate 86,432 51,141 61,567 51,612 108,262 57,919 54,992 82,794 102,130
Manufacturing 481,525 312,571 552,560 568,041 596,052 563,919 520,474 446,965 503,778
Transportation, Communications & Utilities 221,625 233,815 236,790 353,000 360,441 350,258 377,596 387,148 384,703
Wholesale - Durable /Non - durable Goods 2,076,903 2,290,522 2,218,192 1,730,497 1,470,187 1,374,271 1,761,749 1,862,528 2,337,018
Retail Trade - General Merchandise 2,482,185 2,611,321 2,642,582 2,708,649 2,591,680 2,570,883 2,545,631 2,574,671 2,563,103
Retail Trade - Furniture /Home Furnishings 1,658,173 1,777,290 1,896,591 1,957,687 1,862,336 1,815,168 2,304,037 2,405,967 2,342,553
Retail Trade - Miscellaneous 1,625,284 1,671,348 1,750,154 2,066,226 2,115,104 2,044,562 1,723,147 1,735,045 1,497,474
Retail Trade - Clothing & Accessories 1,036,578 1,070,160 1,037,450 1,107,815 1,134,102 1,175,074 1,197,591 1,247,109 1,636,183
Retail Trade - Restaurants 617,769 662,588 732,639 936,411 900,496 887,103 933,886 1,031,625 1,072,275
Retail Trade - Automotive /Gas 620,383 712,704 736,722 792,951 770,063 768,664 847,864 982,413 980,006
Retail Trade - Building Materials 641,618 667,626 712,613 666,679 627,140 712,723 763,013 850,109 815,379
Service Industries - Business 843,886 860,807 991,527 1,166,278 493,806 824,497 530,833 488,857 979,752
Service Industries - Hotels 400,778 401,800 403,262 451,098 418,051 357,940 361,789 355,514 406,547
Service Industries - Other 279,716 273,939 326,953 371,467 386,590 373,911 507,935 486,215 278,041
All Other Categories 120,056 218,482 185,084 367,826 70,289 296,953 292,827 288,169 188,540
$
1,166,088
93,747
450,138
436,260
2,048,517
2,667,481
2,531,049
1,642,722
1,704,213
1,119,859
1,053,184
855,243
1,141,632
453,376
278,777
205,644
Total Retail Sales Tax Collections $ 13,802,451 $ 14,588,346 $ 15,844,163 $ 18,488,337 $ 16,008,755 $ 15,165,547 $ 15,842,959 $ 16,183,887 $ 16,763,909 $ 17,847,930
Effective March 2005, the Department of Revenue changed reporting retail sales industries from using the Standard Industrial Classification (SIC) code to use of
the North American Industry Classification System (NAICS). Retail sales tax collections prior to the time of this change have not been adjusted.
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 tax payers.
City of Tukwila
Statistical Section
TABLE 11
SALES TAX RATE DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years
1997 1998 1999 2000 2001(a) 2002 2003 2004 2005 2006
BASIC SALES TAX RATES
City of Tukwila 0.8400% 0.8400% 0.8400% 0.8400% 0.8400% 0.8400% 0.8400% 0.8400% 0.8400% 0.8400%
Washington State 6.5000% 6.5000% 6.5000% 6.5000% 6.5000% 6.5000% 6.5000% 6.5000% 6.5000% 6.5000%
King County 0.1500% 0.1500% 0.1500% 0.1500% 0.1500% 0.1500% 0.1500% 0.1500% 0.1500% 0.1500%
Regional Transit Authority 0.4000% 0.4000% 0.4000% 0.4000% 0.4000% 0.4000% 0.4000% 0.4000% 0.4000% 0.4000%
Metro 0.6000% 0.6000% 0.6000% 0.6000% 0.8000% 0.8000% 0.8000% 0.8000% 0.8000% 0.8000%
Criminal Justice 0.1000% 0.1000% 0.1000% 0.1000% 0.1000% 0.1000% 0.1000% 0.1000% 0.1000% 0.1000%
Department of Revenue Administration Fee 0.0100% 0.0100% 0.0100% 0.0100% 0.0100% 0.0100% 0.0100% 0.0100% 0.0100% 0.0100%
Total Basic Combined Sales Tax Rate 8.600% 8.600% 8.600% 8.600% 8.800% 8.800% 8.800% 8.800% 8.800% 8.800%
SPECIAL SALES TAX RATES
Restaurants (b)
Motor Vehicles
0.5000% 0.5000% 0.5000% 0.5000% 0.5000% 0.5000% 0.5000% 0.5000% 0.5000% 0.5000%
- 0.3000% 0.3000% 0.3000% 0.3000%
(') Effective April 1, 2001 King County increased the local sales & use tax rates two- tenths of one percent (002).
This increase was the result of a vote by King County voters to increase funding for public transit systems.
(6) King County Food &Beverage tax is in addition to the combined sales tax rate for restaurants, taverns and bars.
The funds are used to finance the professional baseball stadium in Seattle.
(`) Effective illy 1, 2003, all retail sales, leases and transfers of motor vehicles are subject to the additional sales tax of three - tenths of one percent (0.003%.
The funds are used to finance transportation improvements.
Source: Washington State Department of Revenue Local Sales and Use Tax Rates.
City of Tukwila
Statistical Section
TABLE 12
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
1997 1998 1999 2000 2001 2002(a) 2003 2004 2005 2006
GOVERNMENTAL ACTIVITIES
General Obligation Bonds $ 5,750,000 $ 5,390,000 $15,170,000 $ 17,226,600 $ 16,565,000 $ 15,847,000 $ 21,628,591 $ 20,806,553 $ 19,937,516 $19,031,480
Special Assessments 85,000 85,000 25,000 - -
Compensated Absences 1,353,481 1,418,080 1,472,613 1,511,144 1,680,256 1,663,266 1,666,821 1,708,732 1,816,931 2,170,343
Total Governmental Activities 7,188,481 6,893,080 16,667,613 18,737,744 18,245,256 17,510,266 23,295,412 22,515,285 21,754,447 21,201,823
BUSINESS -TYPE ACTMTIES
General Obligation Bonds 5,772,500 5,382,500 4,972,500 4,578,718
Revenue Bonds 6,695,000 6,260,000 5,865,000 5,448,000 5,015,000 4,568,782 4,168,910 3,710,438 3,231,966 5,934,892
Public Works Trust Fund Loans 808,289 750,028 691,767 633,506 650,245 573,234 1,032,364 2,924,739 4,911,251 9,781,151
Leases - - - 108,818 77,947
Compensated Absences 160,661 167,212 190,139 203,940 207,367
Total Business -Type Activities 7,503,289 7,010,028 6,556,767 6,081,506 5,665,245 5,302,677 11,140,986 12,207,816 13,428,475 20,580,075
TOTAL PRIMARY GOVERNMENT(b) $ 14,691,770 $ 13,903,108 $23,224,380 $ 24,819,250 $ 23,910,501 $ 22,812,943 $ 34,436,398 $ 34,723,101 $ 35,182,922 $41,781,898
Population (r) 14,930 14,990 14,840 17,181 17,230 17,270 17,270 17,240 17,110 17,930
Personal Income (c) $ 34,253 $ 38,241 $ 42,218 $ 44,429 $ 43,800 $ 44,250 $ 44,821 $ 49,118 $ 48,216 * **
Percentage of Personal Income 2.87% 2.43% 3.71% 3.25% 3.17% 2.99% 4.45% 4.10% 4.26% * **
Debt Per Capita $ 984 $ 927 $ 1,565 $ 1,445 $ 1,388 $ 1,321 $ 1,994 $ 2,014 $ 2,056 * **
(a) For years 1997 through 2002, premiums and discounts were omitted on all bonds.
(b) Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements section.
(`) Reference Table 17, Demographic Statistics, for population and personal income data.
Sources: City of Tukwila Finance Department, Department of Community Development, and Office of the City Clerk.
* ** Data not available at time of publication.
City of Tukwila
Statistical Section
Fiscal
Year Population Assessed Value
TABLE 13
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Gross Bonded
Debt
Last Ten Fiscal Years
Less Debt
Service Funds
Debt Payable from
Enterprise
Revenues(a)
1997 14,930
1998 14,990
1999 14,840
2000 17,181
2001 17,230
2002 17,270
2003 17,270
2004 17,240
2005 17,110
2006 17,930
$ 2,432,140,644 $
2,575,510,077
2,747,656,327
3,004,528,773
3,344,045,742
3,489,704,657
3,384,090,709
3,441,123,525
3,610,558,767
3,947,933,512
5,750,000
5,390,000
15,170,000
17,226,600
16,565,000
15,847,000
27,1 68,000
25,974,000
24,713,000
25,648,290
$ 133,972 $
1,280
1,614
370,112
410,844
389,322
809,012
1,107,362
1,305,239
1,075,347
5,772,500
5,382,500
4,972,500
4,578,718
( °) These amounts are the general obligation bonds that are being repaid by the Foster Golf Course Fund.
Sources: State of Washington Office of Financial Management, Kng County Department of Assessments,
and City of Tukwila Finance Department
Net Bonded
Debt
$ 5,616,028
5,388,720
15,168,386
16,856,488
16,154,156
15,457,678
20,586,488
19,484,138
18,435,261
19,994,225
Ratio of Net Bonded
Debt to Assessed
Value
0.23%
0.21%
0.55%
0.56%
0.48%
0.44%
0.61%
0.57%
0.51%
0.51%
Net Bonded
Debt per
Capita
$ 376
359
1,022
981
938
895
1,192
1,130
1,077
1,115
City of Tukwila
Statistical Section
TABLE 14
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 2006
(Amounts are shown in actual dollars.)
Percentage
Net General Obligation Applicable to Estimated Amount
JURISDICTION Debt Outstanding Tukwila Applicable to Tukwila
Direct:
City of Tukwila $ 25,648,290 100.00% $ 25,648,290
Overlapping:
King County 862,566,000 1.32% 11,385,871
King County Library 80,429,703 0.87% 699,738
Port of Seattle 416,645,000 1.32% 5,499,714
Tukwila School District #406 41,922,096 88.31% 37,021,403
Hospital District #1 43,855,000 4.31% 1,890,151
Total Overlapping Debt: 1,445,417,799 56,496,877
Total Direct and
Overlapping Debt:
$ 1,471,066,089
Sources: King County Office of Finance, King County Office of Assessments
$ 82,145,167
,o, ILA. : v
1908
City of Tukwila
Statistical Section
TABLE 15
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
1997 1998 1999 2000 2001 2002
2003
2004
2005 2006
Debt Limit $ 182,410,548 $ 193,163,256 $ 206,074,224 $ 225,339,657 $ 250,803,432 $ 261,727,848 $ 253,806,804 $ 258,084,264 $ 270,791,907 $296,095,014
Total Net Debt Applicable to Limit 5,616,028 5,388,720 15,168,386 16,856,488 16,154,156 15,457,678 26,358,988 24,866,638 23,407,761 24,494,996
Legal Debt Margin
$ 176,794,520 $ 187,774,536 $ 190,905,838 $ 208,483,169 $ 234,649,276 $ 246,270,170 $ 227,447,816 $ 233,217,626 $ 247,384,146 $271,600,018
Total Net Debt Applicable to the Limit
as a Percentage of Debt Limit 3.08%
2.79%
7.36%
Legal Debt Margin
7.48%
6.44% 5.91%
Calculation for Fiscal Year 2006
10.39%
9.64%
Description
Assessed Value
Statutory Debt Limit Percentages
Debt Limit
Debt Applicable to Limit:
Bonds Outstanding
Compensated Absences
Less:
Debt Service Fund Net Assets
Total Net Debt Applicable to Limit
Remaining Debt Capacity
Councilmanic
Debt (Non -
Voted)
General Excess Levy
Purpose Utility
Voted Debt Indebtedness Purposes
Excess Levy
Open Space Total Debt
and Park Capacity
$ 3,947,933,512
1.5%
$3,947,933,512 $ 3,947,933,512 $3,947,933,512
1.0% 2.5% 2.5%
$3,947,933,512 $ 3,947,933,512
2.5% 7.5%
59,219,003 $ 39,479,335 $ 98,698,338 $ 98,698,338 $ 98,698,338 $ 296,095,013
$ 23,400,000
2,170,343
$ 23,400,000
2,170,343
(1,075,347)
24,494,996 $ - $
34,724,007 $ 39,479,335 $
$ 23,400,000
2,170,343
(1,075,347) (1,075,347)
24,494,996 $ - $ - $ 24,494,996
74,203,342 $ 98,698,338 $ 98,698,338 $ 271,600,017
8.64%
8.30%
City of Tukwila
Statistical Section
Table 16
REVENUE BOND COVERAGE - WATER AND SEWER BONDS
Last Ten Fiscal Years
Net Revenue
Fiscal Gross Operating Available for AVERAGE ANNUAL DEBT SERVICE REQUIREMENTS Times
Year Revenuem Expenses(b) Debt Service Principal Interest Total Coverage
1997 $ 5,686,889 $ 3,900,385 $ 1,786,504 $ 373,947 $ 186,375 $ 560,322 3.19
1998 6,243,782 4,309,062 1,934,720 371,944 176,980 548,924 3.52
1999 6,949,624 4,747,448 2,202,176 368,235 167,678 535,913 4.11
2000 7,302,200 5,057,117 2,245,083 366,563 158,276 524,839 4.28
2001 6,944,496 5,143,551 1,800,945 363,200 148,711 511,911 3.52
2002 7,332,495 5,808,561 1,523,934 358,214 139,047 497,261 3.06
2003 7,501,583 5,784,330 1,717,253 352,692 129,354 482,046 3.56
2004 7,929,374 5,876,411 2,052,963 345,000 119,647 464,647 4.42
2005 8,023,334 6,161,436 1,861,898 334,091 110,015 444,106 4.19
2006 8,237,636 6,418,607 1,819,029 303,333 127,111 430,444 4.23
°) Includes operating and non -operating revenue.
(h) Includes operating expenses and non -operating expenses exclusive of depreciation, amortization and interest charges.
Sources: City of Tukwila Finance Department
City of Tukwila
Statistical Section
Table 17
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
Per Capita
Fiscal Personal Income Personal Number of Single- Number of Multi- Tukwila School Unemployment Rate
Year Population (a) Income(b) Family Homes Family Units District Enrollment (`)
1997 14,930 $ 34,253 $ 511,397 $ 3,230 4,196 2,458 4.70%
1998 14,990 38,241 573,233 3,262 4,196 2,408 4.70%
1999 14,840 42,218 626,515 3,303 4,196 2,550 4.40%
2000 17,181 44,429 763,335 3,364 4,196 2,562 5.50%
2001 17,230 43,800 754,674 3,371 4,196 2,410 6.90%
2002 17,270 44,250 764,198 3,433 4,196 2,474 8.30%
2003 17,270 44,821 774,059 3,468 4,196 2,568 8.40%
2004 17,240 49,118 846,794 3,732 4,107 2,628 7.00%
2005 17,110 48,216 824,976 3,791 4,107 2,650 6.40%
2006 17,930 * ** * ** 3,838 4,107 2,698 5.70%
( °`) Per Capita Personal Income data are estimates for King County. Specific data for City of Tukwila is not available.
(I') Personal Income estimates are calculated by multiplying Tukwila population by the Per Capita Personal Income estimates for Tukwila.
(`) Unemployment rates are listed and estimated using the census share method.
* ** Data not available at time of publication.
Sources: City of Tukwila Planning Division, Department of Community Development, State of Washington Office of Financial Management,
Washington State Employment Security Department, Tukwila School District #406, US Bureau of Economic Analysis
J�v11LA �
O
U1'c rte Or.
i��,
1908
City of Tukwila
Statistical Section
Table 18
PRINCIPAL EMPLOYERS
2006
NAME OF 2006 Full & Part- Percentage of Total 1997 Full & Part- Percentage of Total
COMPANY /EMPLOYER PRODUCT OR BUSINESS Time Employment City Employees Time Employment City Employees
Boeing Company Airplane company 10,280 23.32% 10,453 26.03%
Group Health Cooperative Data Ctr /Lab /Pharmacy /Mfg. 705 1.60% 463 1.15%
King County Metro Transit operating base 559 1.60% 700 1.74%
Nordstrom, Inc. Department store 449 1.02% 465 1.16%
Macy's Department store 420 0.95% 348 0.87%
JC Penney Company Department store 409 0.93% 440 1.10%
Red Dot Corporation Heater /air conditioning equipment 405 0.92% 330 0.82%
Group Health Cooperative Admin Medical Office 400 0.92%
Boeing Employee's Credit Union Credit union 354 0.80% 516 1.28%
Costco Wholesale Cash /carry warehouse 339 0.77% 230 0.57%
Sub - total - Major Employers
All Other Employment
TOTAL EMPLOYMENT
14,320
29,767
44,087
Source: City of Tukwila City Clerk's Office - business licenses
13,945
26,216
40,161
City of Tukwila
Statistical Section
FUNCTION
TABLE 19
FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
General Government
Public Safety
Police
Commissioned Officers
Non- Commissioned Officers
Fire
Commissioned Officers
Non - Commissioned Officers
Planning /Building /Public Works
Administration /Development Services
Transportation Systems
Utility Systems
Maintenance Services
Culture and Recreation
Parks and Recreation
Pool
Golf Course
TOTAL
2001 2002 2003 2004 2005 2006
* **
41.25 41.25 43.25 45.25 49.00
68.00 68.00 68.00 68.00 68.00
13.00 14.00 15.00 15.00 16.00
62.00 64.00 64.00 64.00 64.00
4.00 4.00 4.00 4.00 4.00
28.88
9.00
18.50
26.50
31.50
9.00
18.50
26.50
32.50
9.00
18.50
26.50
32.50
10.00
18.50
27.50
37.00
10.00
18.50
30.50
22.50 22.50 22.50 24.75 28.75
2.00 3.00 3.00 3.75 4.00
11.00 11.00 11.75 9.50 10.25
306.63 313.25 318.00 322.75 340.00
** *Information not available. Perspective periods will provide expansion up to a 10 year period.
FUNCTION
;ity of Tukwila
statistical Section
TABLE 20
OPERATING INDICATORS BY FUNCTION
Last Ten Fiscal Years
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Police
Number of Calls for Service $ 36,248 $ 34,600 $ 32,683 $ 31,189 $ 30,671 $ 30,106 $ 31,000 $ 30,032 $ 32,922 $ 33,686
Fire
Number of Responses 4,603 4,755 4,367 4,395 3,865 4,100 4,250 4,229 4,710 4,921
Total Fire Loss 1,056,077 983,190 1,553,420 1,328,726 1,995,850 485,765 910,655 910,655 1,414,741 2,982,265
Total Inspections 5,618 6,168 5,955 6,197 5,866 4,516 5,549 5,855 5,482 4,705
Parks and Recreation
Class Participants * * 40,000 50,300 60,000 61,000 61,000 64,000 64,000 64,000
Community Center Admissions * * 38,000 47,300 43,600 35,500 30,800 35,150 33,750 34,850
Rounds of Golf Played 72,124 67,717 66,042 66,317 60,311 57,490 * 53,070 54,449 55,195
Pool Attendance ** ** ** ** ** ** 42,917 59,996 72,778 72,963
Street
Miles 77 77 77 77 77 77 79 79 79 79
Hours Maintaining Streets /Sidewalks * * * * 13,425 14,587 13,706 15,243 16,970
Signalized Intersections 59 59 59 59 59 59 61 61 61 61
Hours Maintaining Signals /Lights * * * * 6,388 6,855 6,445 9,054 7,642
Water Utility Services
Total Customers 1,996 1,941 1,961 2,012 2,027 2,027 2,079 2,107 2,164 2,117
Total Gallons/Water 713,399,016 766,325,252 778,402,460 771,149,104 693,115,500 683,065,400 702,363,800 765,000,000 886,000,000 789,980,752
Sanitary Sewer
Total Customers 1,467 1,480 1,525 1,586 1,622 1,622 1,671 1,698 1,710 1,720
Surface Water
Total Customers 4,906 4,957 4,931 4,989 5,019 5,019 5,015 5,064 5,100 5,107
Licenses
Business Licenses 2,252 2,229 2,265 2,205 2,159 2,160 2,262 2,292 2,286 2,354
Amusement Licenses 14 19 19 19 18 18 22 22 19 21
Permits
Building Permits 408 449 452 452 415 401 353 364 430 422
Mechanical Permits 185 208 248 273 218 238 183 182 193 239
Public Works Permits 86 77 92 161 134 114 83 97 112 144
Libraries
Number of Libraries 2 2 2 2 2 2 2 3 3 3
Total Circulation 374,488 128,224 121,637 135,276 140,680 143,150 121,468 215,115 215,115 320,794
* Information not available. ** Acquired pool from King County in 2003.
FUNCTION
City of Tukwila
Statistical Section
TABLE 21
CAPITAL ASSETS BY FUNCTIONS
Last Ten Fiscal Years
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
General Government
Total City Area (Square Miles) 8.6 8.6 8.6 8.6 8.6 8.6 8.6 8.6 8.6 8.6
Public Safety
Police: Number of Police Vehicles 63 71 63 63 57 63 59 63 64 64
Fire: Number of Fire Stations 4 4 4 4 4 4 4 4 4 4
Number of Engines /Rescue Trucks /Ladders 8 8 8 8 8 8 8 8 8 9
Number of Medical Aid Vehicles 1 2 2 2 2 2 2 2 2 2
Number of Hazardous Materials Trailer Units - - - - - - 1 1
Transportation
Paved Streets (miles) 163 163 163 163 163 163 163 163 163 163
Sidewalks (miles) 54 54 54 54 54 54 54 54 54 54
Number of Traffic Signals 55 55 55 55 55 55 55 55 55 55
Number of Street Lights owned By Seattle City Light 1,180 1,180 1,180 1,180 1,180 1,180 1,180 180 1,180 1,180
Number of Street Lights Owned By Puget Sound Energy 670 670 670 670 670 670 670 670 670 670
Culture and Recreation
Parks Acreage 203 203 203 203 207 210 225 225 225 228
Number of Parks 11 11 11 11 12 13 15 15 15 16
Golf Course Acreage 67 67 67 67 67 67 67 67 67 67
Maintained Trails (miles) 11 11 11 11 11 11 11 11 11 11
Number of Playgrounds 10 11 11 11 11 11 13 13 13 13
Swimming Pool 1 1 1 1
Visitor Center 1 1 1 1 1 1 1 1
Community Center /Recreation Facilities 1 1 1 1 1 1 1 1 1 1
Number of Libraries 2 2 2 2 2 2 2 3 3 3
Water
Water Distribution Mains (miles) 45 45 45 45 45 45 45 45 45 45
Maximum Daily Capacity (millions of gallons) 10 10 10 10 10 10 10 10 10 10
Number of Fire Hydrants (Owned by the City) 492 497 499 499 509 509 513 527 533 537
Vehicles 7 9 4 4 6 6 7 6 7 7
Sewer
Sanitary Sewers (miles) 32 33 33 33 33 33 33 33 33 33
Maximum Daily Treatment Capacity (millions of gallons) 6.33 6.33 6.33 6.33 6.33 6.33 6.33 6.33 6.33 6.33
Vehicles 8 11 8 8 3 3 3 3 3 5
Surface Water
Storm Drains (miles) 63 64 64 175 178 178 180 195 200 201
Vehicles 5 5 6 6 4 4 4 5 5 4
Source: City of Tukwila Departments