HomeMy WebLinkAbout2005 Comprehensive Annual Financial Report (CAFR)The City of Tukwila, Washington
COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
For the Year Ended December 31, 2005
Prepared by the City of Tukwila Finance Department
STEVEN M. MULLET, MAYOR
TUKWILA CITY COUNCIL
Pam Linder, President
Joe Duffie
Pam Carter
Dennis Robertson
Joan Hernandez
Jim Haggerton
David Fenton
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 2005
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
Hotel /Motel Tax 31
Arterial Street 32
Statement of Net Assets — Proprietary Funds 33
Statement of Revenues, Expenses, and Changes in Fund Net Assets — Proprietary Funds 34
Statement of Cash Flows — Proprietary Funds 35
Statement of Fiduciary Net Assets — Fiduciary Fund — Firemen's Pension Trust Fund 36
Statement of Changes in Fiduciary Net Assets — Fiduciary Fund — Firemen's Pension Trust Fund 37
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 Nonmajor Governmental Funds
Fund Descriptions 75
Combining Balance Sheet 76
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 77
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
Valley Narcotics Enforcement Team 82
City of Tukwila
Table of Contents
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:
Government -wide Expenses by Function 106
Government -wide Revenues 107
Fund Information:
General Governmental Expenditures by Function —Last Ten Fiscal Years 108
General Governmental Revenues by Source —Last Ten Fiscal Years 109
Property Tax Levies and Collections —Last Ten Fiscal Years 110
Assessed and Estimated Actual Value of Taxable Property —Last Ten Fiscal Years 111
Property Tax Rates — Direct and Overlapping Governments —Last Ten Fiscal Years 112
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per
Capita —Last Ten Fiscal Years 113
Computation of Legal Debt Margin— December 31, 2005 114
Computation of Direct and Overlapping Debt — December 31, 2005 115
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total
General Governmental Expenditures -Last Ten Fiscal Years 116
Revenue Bond Coverage — Water and Sewer Bonds —Last Ten Fiscal Years 117
Demographic Statistics —Last Ten Fiscal Years 118
Construction and Property Value — Last Ten Fiscal Years 119
Principal Property Taxpayers— December 31, 2005 120
2005 Salary Ranges of Principal Officials 121
Major Employers — 2005 122
Miscellaneous Statistics and Information — December 31, 2005 123
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Table of Contents
City of Tukwila
Table of Contents
City of Tukwila
FINANCE DEPARTMENT
6200 Southcenter Boulevard
Tukwila, Washington 98188 -2599
(206) 433 -1835
June 29, 2006
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 2005 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, 2005 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 17,110;
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 $17.130
million in revenue for 2005. The total combined retail sales activity amounted to approximately
$2.04 billion in 2005. 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 $3.6 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.
2005 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 2005.
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 $11,320,011 in the pool at
year -end, and during the year this vehicle was used frequently for short -term investing.
Risk Management
It is the City's policy to self - insure for unemployment benefits as well as medical and dental
costs. All buildings, equipment and vehicles are insured by carriers for coverage at replacement
value.
The City is a member of the Washington Cities Insurance Authority (WCIA) as of January 1,
1984. The WCIA is a municipal corporation and not a joint venture per the Washington State
Auditor's Office. The pooling arrangement with 114 other entities provides the City's general
liability, vehicle liability, false arrest, and errors and omissions coverage. (See Note 14 for a
more expansive discussion).
Pension and Other Post Employment Benefits
All employees are covered by State of Washington pension systems, public safety employees by
the Law Enforcement Officers and Fire Fighters system (LEOFF), and non - public safety
personnel by the Public Employees Retirement System (PERS). Also, there is a separate
firemen's pension system for firefighters who retired prior to March 1, 1970. (See Note 8
Pension Plans for a more detailed review of these pension systems). Post retirement benefits
are available currently to 39 LEOFF retirees. The total amount paid in 2005 was $458,341. (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 2005. 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, 2004. This was the
18th 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 2005 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
2005 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, 2004
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
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
STEVE LANCASTER
Director, Community
Development
NICK OLIVAS
Fire Chief
COUNCIL COMMITTEES
FINANCE AND SAFETY COMMITTEE TRANSPORTATION
Dennis Robertson, Chairperson
Pam Carter, Member
Dave Fenton, Member
JIM MORROW
Public Works
Director
Jim Haggerton, Chairperson
Joe Duffie, Member
Pam Carter, Member
COMMUNITY AFFAIRS AND PARKS UTILITIES
Joe Duffie, Chairperson
Joan Hernandez, Member
Dennis Robertson, Member
Dave Fenton, Chairperson
Joan Hernandez, Member
Jim Haggerton, Member
7
City of Tukwila
Introductory Section
- 8 -
City of Tukwila
Auditor's Opinion
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Management's Discussion and Analysis
CITY OF TUKWILA
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2005
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, 2005. 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 $198.3
million. A total of 81.3 percent or $161.2 million of total net assets is invested in capital assets
such as streets, land, buildings, equipment, and other improvements. The remaining net
assets of $37.1 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 $6.8 million in 2005. Government activities
provided $6.4 million or 94.4 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 $22,324,467 an increase of $379,555 in comparison with
the prior year. Approximately 94.3 percent of this total amount, $21,061,217, 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
$8,408,104, or 25.3 percent of total general fund expenditures.
• The City of Tukwila's total debt decreased by $1,746,000 (5.9 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.
2005 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 $198,308,356 at December 31,
2005.
The largest portion of the City's net assets (81.3 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.
City of Tukwila's Net Assets
Governmental
Activities
Business -Type
Activities
Total
2005
Current and Other Assets $ 32,092,403
Capital Assets 147,722,513
Total Assets 179,814,916
Long -term Liabilities
Outstanding
Other Liabilities
Total Liabilities
Net Assets:
Invested in Capital Assets,
Net of Related Debt
Restricted
Unrestricted
Total Net Assets
2004
$ 34,016,924
141,616,629
175,633,553
2005 2004
$ 12,450,163 $ 13,312,376
43,043,517 40,749,054
55,493,680 54,061,430
2005
$ 44,542,566
190,766,030
235,308,596
2004
$ 47,329,300
182,365,683
229,694,983
21,754,447
1,610,408
23,364,855
22,515,285
3,098,899
25,614,184
13,428,475
206,910
13,635,385
12,207,816
380,125
12,587,941
35,182,922
1,817,318
37,000,240
34,723,101
3,479,024
38,202,125
129,855,251
1,305,239
25,289,571
$ 156,450,061
123,038,903
1,107,362
25,873,104
$ 150,019,369
31,370,812
577,587
9,909,896
$ 41,858,295
30,848,350
960,485
9,664,654
$ 41,473,489 $
161,226,063
1,882,826
35,199,467
198,308,356
153,887,253
2,067,847
35,537,758
$ 191,492,858
- 14 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Management's Discussion and Analysis
A portion of the City of Tukwila's net assets (0.9 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 $35,199,467 (17.8 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 liabilities of $459,821 is due to the City incurring $2,251,633
in new Public Works Trust Fund loan and capital lease obligations exceeding $(1,913,812) and
$122,000 of debt principal repayments, net of deferred amounts, and the net change increase in
the compensated absences liability, respectively.
Net assets increased by $6,815,498 over 2004. The largest portion of this increase was additional
arterial street infrastructure of $6,669,833. There were additional culture and recreation capital
assets added totaling $184,689; $8,682 and $265,426 of new facility replacement and general
government improvement capital outlays, respectively. The remainder of the net assets increase
reflects net increases in the expenditure /revenue 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 $6,430,692 accounting for 94.4 percent of the total growth in the City's net assets. Key
elements of this increase are as follows:
Revenues:
Program Revenues:
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
General Revenues:
Property Taxes
Retail Sales and Use Taxes
Natural Gas Use Tax
Hotel /Motel Taxes
Utility Taxes
Business Taxes
Excise Taxes
State Entitlements, Impact Fees,
In -Lieu Taxes
Investment Earnings
Gain on Sale of Capital Assets
Total Revenues
Program Expenses Including
Indirect Expenses:
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Culture and Recreation
Interest on Long -term Debt
Water /Sewer Utility
Foster Golf Course
Surface Water Utility
Total Expenses
Increase (Decrease) in Net Assets
Before Transfers
Transfers
Increase (Decrease) in Net Assets
Net Assets — Beginning Balance
Prior Period Adjustments
Net Assets — Ending Balance
City of Tukwila's Changes in Net Assets
Governmental
Activities
Business -Type
Activities
2005 2004
2005 2004
2005
Total
2004
$ 4,561,388
1,525,579
3,060,960
10,631,036
16,887,846
381,706
443,605
2,646,356
1,732,739
3,229,155
192,816
768,097
106,776
46,168,059
6,421,839
20,300,709
1,363,049
4,171,173
3,404,605
3,887,871
1,012,239
0
0
0
40,561,485
5,606,574
824,118
6,430,692
150,019,369
0
$156,450,061
$ 4,699,502
1,607,688
3,705,424
10,336,366
16,492,528
29,667
390,221
2,309,787
1,614,587
4,100,309
191,589
416,483
0
45,894,151
$ 10,879,404 $ 10,679,549 $ 15,440,792
0 0 1,525,579
319,439 588,891 3,380,399
0 0
241,723 228,458
0 0
0 0
0 0
0 0
0 0
0 0
310,750 188,242
0 0
11,751,316 11,685,140
10,631,036
17,129,569
381,706
443,605
2,646,356
1,732,739
3,229,155
192,816
1,078,847
106,776
57,919,375
$ 15,379,051
1,607,688
4,294,315
10,336,366
16,720,986
29,667
390,221
2,309,787
1,614,587
4,100,309
191,589
604,725
0
57,579,291
6,167,738
18,769,074
1,442,209
4,962,043
3,469,673
3,680,402
1,034,841
0
0
0
39,525,980
0
0
0
0
0
0
0
7,105,020
1,751,709
1,685,663
10,542,392
0
6,368,171
(450,000)
5,918,171
44,101,198
0
$150,019,369
1,208,924
(824,118)
384,806
41,473,489
0
$ 41,858,295
0
0
0
0
0
0
6,774,102
1,670,400
1,625,579
10,070,081
1,615,059
450,000
2,065,059
39,765,849
(357,419)
$ 41,473,489
6,421,839
20,300,709
1,363,049
4,171,173
3,404,605
3,887,871
1,012,239
7,105,020
1,751,709
1,685,663
51,103,877
6,167,738
18,769,074
1,442,209
4,962,043
3,469,673
3,680,402
1,034,841
6,774,102
1,670,400
1,625,579
49,596,061
6,815,498
0
6,815,498
191,492,858
0
$198,308,356
7,983,230
0
7,983,230
183,867,047
(357,419)
$191,492,858
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 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Management's Discussion and Analysis
• There was a positive change in fund balance in the current year of $379,555.
• There was an excess of Capital Outlay and Donations over Depreciation Expense of $5,998,357.
• There was an increase due to Bond Principal Retirement of $851,000.
• Other net decreases include: Net Pension Asset change, Investment Interest Receivable, Joint
Venture, Internal Service Fund net change, Deferred Revenues change, and Other Miscellaneous
changes totaling ($798,220).
Revenues by Source — Governmental Activities
Other Taxes
19%
Other
2%
Charges for
Services
10% Operating Grants
and Contributions
3%
Capital Grants and
Contributions
Sales Taxes
36%
7%
roperty Taxes
23%
Expenses and Program Revenues — Governmental Activities
$22,000
$20,000
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
so
($ in 000's)
■ Expenses
• Program Revenues
General Public Safety Physical Transportation Economic Cult re & Interest on
Government Environment Environment Recreation Long -term 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
$384,806, accounting for 5.6 percent of the total growth in the City's net assets. Key elements of this
increase are as follows:
• Net operating income of $838,576 and non - operating income of $81,082 account for $919,658 of
the increase.
• Capital contributions of $319,439 and net transfers out of ($824,118) account for ($504,679) of
the net change.
• Internal Service Funds consolidation amount of ($30,173) is the final element of the net change.
Revenues by Source — Business -Type Activities
Retail Sales and
Capital GrantYse Taxes
and Contributions 2%
3%
Unrestricted
Investment
Earnings
3%
Charges for
Services
92%
Expenses and Program Revenues — Business -Type Activities
($ in 000's)
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
O Expenses
■ Program Revenues
Water /Sewer Utility
Foster Golf Course
Surface Water Utility
2005 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 $22,324,467. Approximately 94.3 percent of this total amount ($21,061,217)
constitutes unreserved fund balance, which is available for spending at the government's discretion. The
remaining 5.7 percent ($1,263,250) 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 $8,965,794. Unreserved fund balance, the amount considered
available to spend, totaled $8,408,104. Of the General Fund balance, $2,816,822, 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 ($125,535) during the current fiscal
year.
The fund balance of the Hotel /Motel Tax Fund increased by $154,886 in 2005. This notable rise was
derived largely from an upward trend in tax revenues. An aggressive promotion campaign waged by the
City resulted in a substantial change in overnight hotel stays.
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 $370,000. The
increased appropriation was required to accommodate a transfer to the Foster Golf Course Fund 411.
The offsetting change to the appropriation was recognized through an increase in retail sales tax revenues
($320,000) and an increase in franchise fees ($50,000).
Actual expenditures were $3,302,781 under the appropriated amount. Most of the difference is attributed
to interfund services provided and used of $1,911,752, which reduced the General Fund actuals. Project
carryovers in the Transportation category accounted for $568,924 and the remaining $822,105 reflects
general savings in all departments.
Actual revenues exceeded budgeted estimates by $137,087. This immaterial variance is indicative of the
strength of the City's comprehensive budget analysis and review.
- 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, 2005, amounts to $190,766,030 (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 $800,000.
• Major arterial — Tukwila International Boulevard improvement totaled $1.3 million in 2005.
• Drainage improvements to the Cascade View Surface Water Management System amounted to $4
million. The project will be completed in 2006.
City of Tukwila's Capital Assets
(net of depreciation)
Land
Buildings
Other Improvements
Machinery and Equipment
Infrastructure
Construction in Progress
Total
Governmental
Activities
Business -Type
Activities
Total
2005
$ 35,601,817
16,078,120
4,641,319
3,854,852
80,816,273
6,730,132
$ 147,722,513
2004
$ 35,480,519
16,343,225
4,568,591
3,726,158
70,871,527
10,626,609
$ 141,616,629
2005
2,429,256
7,766,588
27,134,314
1,262,926
0
4,450,433
$ 43,043,517
2004 2005 2004
$ 2,429,256 $ 38,031,073 $ 37,909,775
7,396,444 23,844,708 23,739,669
27,450,635 31,775,633 32,019,226
1,248,678 5,117,778 4,974,836
0 80,816,273 70,871,527
2,224,041 11,180,565 12,850,650
$ 40,749,054 $ 190,766,030 $ 182,365,683
Additional information on the City of Tukwila's capital assets can be found in Note 6 on pages 51 — 52
of this report.
Long -term Debt. At the end of the current fiscal year, the City of Tukwila had total bonded debt
outstanding of $27,903,000. Of this amount, $24,713,000 comprises debt backed by the full faith and
credit of the government and the remainder of $3,190,000 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
General Obligation Bonds
Revenue Bonds
Total
Governmental
Activities
Business -Type
Activities
Total
2005 2004
$ 19,740,500 $ 20,591,500 $
0 0
$ 19,740,500 $ 20,591,500 $
2005
4,972,500
3,190,000
8,162,500
2004
$ 5,382,500
3,675,000
$ 9,057,500
2005 2004
24,713,000 $ 25,974,000
3,190,000 3,675,000
27,903,000 $ 29,649,000
The City of Tukwila's total debt decreased by $1,746,000 (5.9 percent) during the current fiscal year.
Bond principal redemptions account for the reduction necessary for the change of $1,746,000.
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Management's Discussion and Analysis
Governmental Activities Long -Term Debt— 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.
Business -Type Activities Long -Term Debt — The City's bond rating from Moody's Investor 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.
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 5.3 percent which is down .9 percent from 2004.
• 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 2005, the median price of a single -
family home weighed in at $405,000 and amounted to a 12% increase in value over 2004.
All of these factors were considered in preparing the budget for the 2006 Budget and Fiscal year.
During the 2006 budget year, fund balance from 2005 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.
-21 -
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, 2005
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES
TOTAL
ASSETS
Cash and Cash Equivalents $ 1,278,740 $ 234,200 $ 1,512,940
Deposit with Fiscal Agent /Trustee 6,771 0 6,771
Investments 21,493,206 10,063,263 31,556,469
Receivables:
Taxes 3,758,511 48,531 3,807,042
Customer Accounts 151,515 707,547 859,062
Interest on Investments 140,963 61,450 202,413
Due From Other Governmental Units 1,017,046 47,651 1,064,697
Internal Balances 84,607 (84,607) 0
Inventory of Materials and Supplies 1,488,300 427,599 1,915,899
Notes Receivable 0 123,539 123,539
Net Pension Asset 111,642 0 111,642
Investment in Joint Venture 2,398,848 0 2,398,848
Deferred Charges 162,254 88,604 250,858
Restricted Assets:
Cash and Cash Equivalents 0 86,293 86,293
Investments 0 575,000 575,000
Land and Construction Work in Progress 42,331,949 6,879,689 49,211,638
Depreciable Capital Assets, Net 105,390,564 36,163,828 141,554,392
Plant Acquisition Adjustment (Net of Accumulated Amortization) 0 71,093 71,093
TOTAL ASSETS 179,814,916 55,493,680 235,308,596
LIABILITIES
Accounts Payable 49,276 0 49,276
Due To Other Governmental Units 66,763 0 66,763
Accrued Interest Payable 79,492 115,024 194,516
Revenues Collected in Advance 75,200 0 75,200
Other Current Liabilities 1,224,381 8,180 1,232,561
Liabilities Payable from Restricted Assets:
Revenue Bond Principal 0 510,000 510,000
Deposits 0 83,706 83,706
Unearned Revenue 115,296 0 115,296
Long -Term Liabilities
Due Within One Year 948,000 804,776 1,752,776
Due in More Than One Year 20,806,447 12,113,699 32,920,146
TOTAL LIABILITIES 23,364,855 13,635,385 37,000,240
NET ASSETS
Invested in Capital Assets, Net of Related Debt 129,855,251 31,370,812 161,226,063
Restricted for:
Debt Service 1,305,239 577,587 1,882,826
Unrestricted 25,289,571 9,909,896 35,199,467
TOTAL NET ASSETS $ 156,450,061 $ 41,858,295 $ 198,308,356
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
- 23 -
City of Tukwila
Government -wide Financial Statements
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2005
FUNCTIONS /PROGRAMS
GOVERNMENTAL ACTIVITIES:
General Government $
Public Safety
Physical Environment
Transportation
Economic Environment
Culture & Recreation
Interest on Long -Term Debt
TOTAL GOVERNMENTAL ACTIVITIES $
Page 1 of 2
CHARGES
FOR
EXPENSES SERVICES
PROGRAM REVENUES
OPERATING
GRANTS AND
CONTRIBUTIONS
CAPITAL GRANTS
AND
CONTRIBUTIONS
6,421,839 $
20,300,709
1,363,049
4,171,173
3,404,605
3,887,871
1,012,239
40,561,485 $
1,376,749 $
1,328,369
12,400
122,201
1,027,812
693,857
0
4,561,388 $
1 $
466,469
106
368,293
634,649
56,061
0
1,525,579 $
2,000
259,503
0
2,734,457
0
65,000
0
3,060,960
BUSINESS -TYPE ACTIVITIES:
Water /Sewer Utility
Foster Golf Course
Surface Water Utility
TOTAL BUSINESS -TYPE ACTIVITIES
$ 7,105,020 $ 7,604,711 $
1,751,709 1,434,933
1,685,663 1,839,760
0 $
0
0
$ 10,542,392 $ 10,879,404 $ 0 $
218,519
0
100,920
319,439
General Revenues:
Property Taxes
Retail Sales and Use Taxes
Natural Gas Use Tax
Hotel /Motel Taxes
Utility Taxes
Business Taxes
Excise Taxes
State Entitlements, Impact Fees, In -Lieu Taxes
Unrestricted Investment Earnings
Gain on Sale of Capital Assets
Transfers
Total General Revenues and Transfers
Change in Net Assets
Net Assets Beginning of Year
Net Assets End of Year
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page 2 of 2 Government -wide Financial Statements
NET (EXPENSES) REVENUE AND CHANGES IN NET ASSETS
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES
TOTAL
$ (5,043,089) $ 0 $ (5,043,089)
(18,246,368) 0 (18,246,368)
(1,350,543) 0 (1,350,543)
(946,222) 0 (946,222)
(1,742,144) 0 (1,742,144)
(3,072,953) 0 (3,072,953)
(1,012,239) 0 (1,012,239)
$ (31,413,558) $ 0 $ (31,413,558)
$ 0 $ 718,210 $ 718,210
0 (316,776) (316,776)
0 255,017 255,017
$ 0 $ 656,451 $ 656,451
$ 10,631,036 $ 0 $ 10,631,036
16,887,846 241,723 17,129,569
381,706 0 381,706
443,605 0 443,605
2,646,356 0 2,646,356
1,732,739 0 1,732,739
3,229,155 0 3,229,155
192,816 0 192,816
768,097 310,750 1,078,847
106,776 0 106,776
824,118 (824,118) 0
37,844,250 (271,645) 37,572,605
6,430,692 384,806 6,815,498
150,019,369 41,473,489 191,492,858
$ 156,450,061 $ 41,858,295 $ 198,308,356
City of Tukwila
Government -wide Financial Statements
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2005
FUNCTIONS /PROGRAMS
GOVERNMENTAL ACTIVITIES:
General Government $
Public Safety
Physical Environment
Transportation
Economic Environment
Culture & Recreation
Interest on Long -Term Debt
TOTAL GOVERNMENTAL ACTIVITIES $
Page 1 of 2
CHARGES
FOR
EXPENSES SERVICES
PROGRAM REVENUES
OPERATING
GRANTS AND
CONTRIBUTIONS
CAPITAL GRANTS
AND
CONTRIBUTIONS
6,421,839 $
20,300,709
1,363,049
4,171,173
3,404,605
3,887,871
1,012,239
40,561,485 $
1,376,749 $
1,328,369
12,400
122,201
1,027,812
693,857
0
4,561,388 $
1 $
466,469
106
368,293
634,649
56,061
0
1,525,579 $
2,000
259,503
0
2,734,457
0
65,000
0
3,060,960
BUSINESS -TYPE ACTIVITIES:
Water /Sewer Utility
Foster Golf Course
Surface Water Utility
TOTAL BUSINESS -TYPE ACTIVITIES
$ 7,105,020 $ 7,604,711 $
1,751,709 1,434,933
1,685,663 1,839,760
0 $
0
0
$ 10,542,392 $ 10,879,404 $ 0 $
218,519
0
100,920
319,439
General Revenues:
Property Taxes
Retail Sales and Use Taxes
Natural Gas Use Tax
Hotel /Motel Taxes
Utility Taxes
Business Taxes
Excise Taxes
State Entitlements, Impact Fees, In -Lieu Taxes
Unrestricted Investment Earnings
Gain on Sale of Capital Assets
Transfers
Total General Revenues and Transfers
Change in Net Assets
Net Assets Beginning of Year
Net Assets End of Year
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page 2 of 2 Government -wide Financial Statements
NET (EXPENSES) REVENUE AND CHANGES IN NET ASSETS
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES
TOTAL
$ (5,043,089) $ 0 $ (5,043,089)
(18,246,368) 0 (18,246,368)
(1,350,543) 0 (1,350,543)
(946,222) 0 (946,222)
(1,742,144) 0 (1,742,144)
(3,072,953) 0 (3,072,953)
(1,012,239) 0 (1,012,239)
$ (31,413,558) $ 0 $ (31,413,558)
$ 0 $ 718,210 $ 718,210
0 (316,776) (316,776)
0 255,017 255,017
$ 0 $ 656,451 $ 656,451
$ 10,631,036 $ 0 $ 10,631,036
16,887,846 241,723 17,129,569
381,706 0 381,706
443,605 0 443,605
2,646,356 0 2,646,356
1,732,739 0 1,732,739
3,229,155 0 3,229,155
192,816 0 192,816
768,097 310,750 1,078,847
106,776 0 106,776
824,118 (824,118) 0
37,844,250 (271,645) 37,572,605
6,430,692 384,806 6,815,498
150,019,369 41,473,489 191,492,858
$ 156,450,061 $ 41,858,295 $ 198,308,356
City of Tukwila
Fund Financial Statements Page 1 of 2
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2005
HOTEL /MOTEL
DESCRIPTION GENERAL FUND TAX
ARTERIAL STREET
OTHER
GOVERNMENTAL
FUNDS
ASSETS
Cash and Cash Equivalents $ 95,273 $ 28,534 $ 94,931 $ 880,989
Deposit with Fiscal Agent /Trustee 6,771 0 0 0
Investments 6,410,284 530,312 3,012,212 7,283,257
Receivables:
Taxes 2,430,481 0 686,434 641,596
Customer Accounts 134,987 0 9,420 0
Interest on Investments 48,084 4,184 22,083 27,875
Interfund Loans Receivable 544,440 0 705,560 0
Due From Other Governmental Units 163,685 171,046 671,320 10,995
TOTAL ASSETS $ 9,834,005 $ 734,076 $ 5,201,960 $ 8,844,712
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payable 9,262 0 0 40,014
Interfund Loans Payable 0 1,250,000 0 0
Due To Other Governmental Units 66,763 0 0 0
Revenues Collected in Advance 75,200 0 0 0
Other Current Liabilities 279,866 0 105,202 13,780
Deferred Revenues 437,120 0 9,420 3,659
Total Liabilities 868,211 1,250,000 114,622 57,453
Fund Balances:
Reserved for:
Imprest Funds 13,250 0 0 0
Loans Receivable 544,440 0 705,560 0
Unreserved, Designated for:
Unknown Contingent Liabilities 2,816,822 0 0 0
Unreserved, Undesignated Reported in:
General Fund 5,591,282 0 0 0
Special Revenue Funds 0 (515,924) 4,381,778 1,804,067
Debt Service Funds 0 0 0 1,305,239
Capital Projects Funds 0 0 0 5,677,953
Total Fund Balances 8,965,794 (515,924) 5,087,338 8,787,259
TOTAL LIABILITIES AND FUND BALANCES $ 9,834,005 $ 734,076 $ 5,201,960 $ 8,844,712
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page 2 of 2 Fund Financial Statements
TOTAL
GOVERNMENTAL
FUNDS
$ 1,099,727
6,771
17,236,065
3,758,511
144,407
102,226
1,250,000
1,017,046
$ 24,614,753
49,276
1,250,000
66,763
75,200
398,848
450,199
2,290,286
13,250
1,250,000
2,816,822
5,591,282
5,669,921
1,305,239
5,677,953
22,324,467
24,614,753
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
GOVERNMENTAL FUNDS
December 31, 2005
Fund Balances - Total Governmental Funds $ 22,324,467
Amounts reported for governmental activities in the statement of
net assets are different because:
The purchases method is used in Governmental Funds to account for
Materials and Supplies - Inventory amount outstanding.
1,488,300
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the governmental funds.
Non - Depreciable Assets $ 42,331,949
Depreciable Assets (net) 105,390,564
147,722,513
The net pension asset resulting from contributions in excess of the annual
required contribution in 2005 are not financial resources and therefore
are not reported in the funds.
Other long -term assets are not available to pay for current - period expenditures
and therefore are not reported in the funds. Investment interest accrued beyond
the City's 60 day measurable and available period.
The City has an equity interest in a joint venture. This equity interest for the
provision of governmental services is not a current financial resource
and therefore is not reported in the funds.
The focus of governmental funds is on short -term financing,
assets are offset by deferred revenue and not included in fund balances.
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:
Bonds Payable $ (19,740,500)
Add: Deferred charge on refunding (to be amortized over life
of debt) 61,139
Add: Deferred charge for issuance costs (to be amortized over
life of debt) 162,254
Less: Issuance premium (to be amortized over life of debt) (258,155)
Accrued Interest Payable (79,492)
Compensated Absences (1,816,931)
Internal service funds are used by management to charge the
costs of certain activities to individual funds.
The assets and liabilities of the internal service funds that are
included in governmental activities in the Statement of Net Assets.
Net Assets of Governmental Activities
111,642
19,256
2,398,848
334,903
(21,671,685)
3,721,817
$ 156.450.061
- 27 -
City of Tukwila
Fund Financial Statements Page 1 of 2
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2005
HOTEL /MOTEL
DESCRIPTION GENERAL FUND TAX
ARTERIAL STREET
OTHER
GOVERNMENTAL
FUNDS
REVENUES
Taxes $ 26,852,064 $ 443,605 $ 3,782,666 $ 3,546,540
Licenses and Permits 1,002,683 0 0 0
Intergovernmental 2,334,340 482,363 2,174,264 681,843
Charges for Services 2,649,678 0 0 0
Fines and Forfeits 116,737 0 0 0
Investment Income 250,609 13,117 131,515 242,955
Miscellaneous 438,264 7,764 253,258 301,489
TOTAL REVENUES 33,644,375 946,849 6,341,703 4,772,827
EXPENDITURES
Current:
General Government 6,136,540 0 0 0
Public Safety 18,859,476 0 0 744,675
Physical Environment 624,041 0 0 164,064
Transportation 1,442,309 0 107,695 155,688
Economic Environment 2,632,575 752,353 0 0
Culture and Recreation 3,274,273 0 0 84,310
Debt Service:
Principal 0 0 0 851,000
Interest 0 39,610 0 993,864
Capital Outlay 215,696 0 6,669,833 458,797
TOTAL EXPENDITURES 33,184,910 791,963 6,777,528 3,452,398
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 459,465 154,886 (435,825) 1,320,429
OTHER FINANCING SOURCES (USES)
Transfers In 0 0 0 150,000
Transfers (Out) (585,000) 0 (270,000) (450,000)
Sale of Capital Assets 0 0 35,600 0
TOTAL OTHER FINANCING SOURCES
AND (USES) (585,000) 0 (234,400) (300,000)
Net Change in Fund Balances (125,535) 154,886 (670,225) 1,020,429
Fund Balances Beginning of Year
FUND BALANCES END OF YEAR
9,091,329 (670,810) 5,757,563 7,766,830
$ 8.965.794 $ (515.924) $ 5.087.338 $ 8.787.259
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page 2 of 2 Fund Financial Statements
TOTAL
GOVERNMENTAL
FUNDS
34,624,875
1,002,683
5,672,810
2,649,678
116,737
638,196
1,000,775
45,705,754
6,136,540
19,604,151
788,105
1,705,692
3,384,928
3,358,583
851,000
1,033,474
7,344,326
44,206,799
1,498,955
150,000
(1,305,000)
35,600
(1,119,400)
379,555
21,944,912
22.324.467
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, 2005
Net change in Fund Balances - total governmental funds $ 379,555
Amounts reported for governmental activities in the statement of activities are
different because:
Government 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 $ 7,344,326
Donations of Capital Assets 2,312,246
Depreciation Expense (3,658,215)
Excess of Capital Outlay and Donations Over Depreciation Expense 5,998,357
The net pension asset (negative net pension obligation) amortization amount
in 2005 is not a financial resource and therefore not reported in the funds. 35,119
Revenues in 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. 4,550
The City has an equity interest in a joint venture. This equity interest for the
provision of governmental services is not a current financial resource and
therefore is not reported in the funds. (347,684)
Repayment of long -term debt is reported as an expenditure in governments:
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 851,000
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. 175,488
Because some revenues will not be collected for several months after the City's
fiscal year ends, they are not considered "available" revenues in the government
funds. Deferred revenues decreased by this amount this year. (46,156)
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 $ (520,000)
Net Decrease in Accrued Interest 3,198
Increase in Compensated Absences (108,199)
Amortization of deferred charge on refunding (7,642)
Amortization of issuance costs (12,573)
Amortization of bond premiums 25,679
Total Additional Expense (Increase) Decrease
(619,537)
Change in Net Assets of Governmental Activities $ 6,430,692
- 29 -
City of Tukwila
DESCRIPTION
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, 2005
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
AMOUNTS
Page 1 of 1
Variance with
Final Budget -
Positive (Negative)
REVENUES
Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeits
Investment Income
Miscellaneous
TOTAL REVENUES
26,500,000 $
912,000
2,406,288
2,606,000
182,000
100,000
431,000
33,137,288
26,820,000 $
962,000
2,406,288
2,606,000
182,000
100,000
431,000
33,507,288
26,852,064 $
1,002,683
2,334,340
2,649,678
116,737
250,609
438,264
33,644,375
32,064
40,683
(71,948)
43,678
(65,263)
150,609
7,264
137,087
EXPENDITURES
Current:
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Culture and Recreation
Capital Outlay
TOTAL EXPENDITURES
6,512,802
18,814,896
1,936,288
2,011,233
3,022,553
3,429,694
760,225
36,487,691
6,512,802
18,814,896
1,936,288
2,011,233
3,022,553
3,429,694
760,225
36,487,691
6,136,540
18,859,476
624,041
1,442,309
2,632,575
3,274,273
215,696
33,184,910
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers (Out)
Sale of Capital Assets
TOTAL OTHER FINANCING SOURCES AND (USES)
Net Change in Fund Balance
FUND BALANCE BEGINNING OF YEAR
(3,350,403)
(215,000)
5,000
(210,000)
(3,560,403)
9,409,000
(2,980,403)
(585,000)
5,000
(580,000)
(3,560,403)
9,409,000
459,465
(585,000)
0
(585,000)
(125,535)
9,091,329
FUND BALANCE END OF YEAR $
5,848,597 $
5,848,597 $
8,965,794 $
376,262
(44,580)
1,312,247
568,924
389,978
155,421
544,529
3,302,781
3,439,868
0
(5,000)
(5,000)
3,434,868
(317,671)
3,117,197
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
- 30 -
City of Tukwila
DESCRIPTION
Fund Financial Statements Page 1 of 1
HOTEL /MOTEL TAX
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
For the Year Ended December 31, 2005
BUDGETED AMOUNTS
Variance with
ACTUAL Final Budget -
ORIGINAL FINAL AMOUNTS Positive (Negative)
REVENUES
Taxes $ 375,000 $ 375,000 $ 443,605 $ 68,605
Intergovernmental 464,000 464,000 482,363 18,363
Investment Income 8,000 8,000 13,117 5,117
Miscellaneous 5,000 5,000 7,764 2,764
TOTAL REVENUES 852,000 852,000 946,849 94,849
EXPENDITURES
Current:
Economic Environment 805,000 805,000 752,353 52,647
Debt Service:
Interest 20,000 20,000 39,610 (19,610)
Capital Outlay 10,000 10,000 0 10,000
TOTAL EXPENDITURES 835,000 835,000 791,963 43,037
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER) EXPENDITURES 17,000 17,000 154,886 137,886
Net Change in Fund Balance 17,000 17,000 154,886 137,886
FUND BALANCE BEGINNING OF YEAR 552,000 552,000 (670,810) (1,222,810)
FUND BALANCE END OF YEAR
$ 569,000 $ 569,000 $ (515,924) $ (1,084,924)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
City of Tukwila
DESCRIPTION
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, 2005
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
AMOUNTS
Page 1 of 1
Variance with
Final Budget -
Positive (Negative)
REVENUES
Taxes
Intergovernmental
Investment Income
Miscellaneous
TOTAL REVENUES
3,525,000 $
8,072,000
75,000
525,000
12,197,000
3,525,000 $
8,072,000
75,000
525,000
12,197,000
3,782,666 $
2,174,264
131,515
253,258
6,341,703
EXPENDITURES
Current:
Transportation
Capital Outlay
TOTAL EXPENDITURES
1,216,000
14,309,000
15,525,000
1,216,000
14,309,000
15,525,000
107,695
6,669,833
6,777,528
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers (Out)
Sale of Capital Assets
TOTAL OTHER FINANCING SOURCES AND (USES)
(3,328,000)
(270,000)
0
(270,000)
(3,328,000)
(270,000)
0
(270,000)
(435,825)
(270,000)
35,600
(234,400)
257,666
(5,897,736)
56,515
(271,742)
(5,855,297)
1,108,305
7,639,167
8,747,472
2,892,175
0
35,600
35,600
Net Change in Fund Balance
FUND BALANCE BEGINNING OF YEAR
(3,598,000)
4,975,000
(3,598,000)
4,975,000
(670,225)
5,757,563
2,927,775
782,563
FUND BALANCE END OF YEAR $
1,377,000 $
1377,000 $
5,087,338 $ 3,710,338
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
- 32 -
City of Tukwila
Fund Financial Statements Page 1 of 1
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
December 31, 2005
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 $ 219,474 $ 3,183 $ 11,543 $ 234,200 $ 179,013
Investments 7,899,748 334,874 1,828,641 10,063,263 4,257,141
Receivables:
Taxes 0 48,531 0 48,531 0
Customer Accounts 579,650 23,898 103,999 707,547 7,108
Interest on Investments 61,188 88 174 61,450 19,481
Due from Other Governmental Units 1,988 0 45,663 47,651 0
Inventory of Materials and Supplies 189,978 191,308 46,313 427,599 45,300
Current Assets Restricted:
Cash and Cash Equivalents 35,770 47,936 0 83,706 0
Total Current Assets Restricted 35,770 47,936 0 83,706 0
Total Current Assets 8,987,796 649,818 2,036,333 11,673,947 4,508,043
Noncurrent Assets:
Noncurrent Restricted Assets:
Cash and Cash Equivalents 2,587 0 0 2,587 0
Investments 575,000 0 0 575,000 0
Total Noncurrent Restricted Assets 577,587 0 0 577,587 0
Notes Receivable 123,539 0 0 123,539 0
Deferred Charges 0 88,604 0 88,604 0
Capital Assets:
Land 96,872 1,609,575 722,809 2,429,256 0
Buildings and Structure 2,075,303 6,617,674 386,438 9,079,415 0
Other Improvements 22,315,171 3,312,202 19,803,246 45,430,619 0
Machinery and Equipment 1,955,004 202,945 42,160 2,200,109 6,866,815
Construction in Progress 721,768 0 3,728,665 4,450,433 0
Less: Accumulated Depreciatior (10,536,340) (2,019,850) (7,990,125) (20,546,315) (4,580,789)
Total Capital Assets (Net o
Accumulated Depreciation 16,627,778 9,722,546 16,693,193 43,043,517 2,286,026
Plant Acquisition Adjustment (Net of
Accumulated Amortization 71,093 0 0 71,093 0
Total Noncurrent Assets 17,399,997 9,811,150 16,693,193 43,904,340 2,286,026
TOTAL ASSETS 26,387,793 10,460,968 18,729,526 55,578,287 6,794,069
LIABILITIES
Current Liabilities:
Due to Other Governmental Units 64,854 0 259,051 323,905 0
Accrued Interest Payable 83,053 16,645 15,326 115,024 0
General Obligation Bonds - Current 0 425,000 0 425,000 0
Other Current Liabilities 0 30,871 8,180 39,051 825,533
Current Liabilities Payable from Restricted Assets,
Revenue Bond Principal 510,000 0 0 510,000 0
Deposits 35,770 47,936 0 83,706 0
Total Current Liabilities Payable frorr
Restricted Asset 545,770 47,936 0 593,706 0
Total Current Liabilities 693,677 568,388 282,557 1,496,686 825,533
Noncurrent Liabilities:
General Obligation Bonds Payable (Net o1
Unamortized Premiums( 0 4,580,564 0 4,580,564 0
Revenue Bonds Payable (Net oI
Unamortized Premiums and Discounts' 2,688,902 0 0 2,688,902 0
Compensated Absences 70,695 85,932 47,313 203,940 0
Other Long -Term Liabilities 1,124,014 77,947 3,463,332 4,665,293 0
Total Noncurrent Liabilities 3,883,611 4,744,443 3,510,645 12,138,699 0
TOTAL LIABILITIES 4,577,288 5,312,831 3,793,202 13,635,385 825,533
NET ASSETS
Invested in Capital Assets, Net of Related Debi 13,197,607 4,805,586 13,367,619 31,370,812 2,286,026
Restricted for:
Debt Service 577,587 0 0 577,587 0
Unrestricted 8,035,311 390,487 1,568,705 9,994,503 3,682,510
TOTAL NET ASSETS $ 21,810,505 $ 5,196,073 $ 14,936,324 $ 41,942,902 $ 5,968,536
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. (84,607)
Net assets of business -type activities $ 41,858,295
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
- 33 -
City of Tukwila
Fund Financial Statements
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
For the Year Ended December 31, 2005
DESCRIPTION
OPERATING REVENUES
Charges for Services
Other Operating Revenues
TOTAL OPERATING REVENUES
WATER /SEWER
UTILITY
BUSINESS -TYPE ACTIVITIES
ENTERPRISE FUNDS
FOSTER SURFACE WATER
GOLF COURSE UTILITY
TOTAL
Page 1 of 1
GOVERNMENTAL
ACTIVITIES -
INTERNAL SERVICE
FUNDS
$ 7,604,133 $
578
7,604,711
1,184,282 $
250,651
1,434,933
1,830,664 $ 10,619,079
9,096 260,325
1,839,760 10,879,404
$ 5,634,585
17,092
5,651,677
OPERATING EXPENSES
Operations and Maintenance
Administrative and General
Taxes
Depreciation /Amortization
TOTAL OPERATING EXPENSES
4,882,923
1,048,963
229,550
704,709
6,866,145
1,187,919 949,418
9,996 285,996
5,383 23,143
320,922 391,906
1,524,220 1,650,463
7,020,260
1,344,955
258,076
1,417,537
10,040,828
5,167,162
151,992
0
576,742
5,895,896
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)
738,566
0
200,104
(218,544)
8,206
(16,579)
0
0
(26,813)
(89,287) 189,297
241,723 0
6,727 103,919
(216,417) (24,957)
1,845 0
0 0
(4,945) 0
0 0
28,933 78,962
838,576
241,723
310,750
(459,918)
10,051
(16,579)
(4,945)
0
81,082
(244,219)
0
125,351
0
0
0
0
71,176
196,527
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS
Capital Contributions
Transfers In
Transfers (Out)
Change in Net Assets
Total Net Assets - Beginning
TOTAL NET ASSETS - ENDING
711,753
218,519
0
(43,128)
887,144
20,923,361
$ 21,810,505 $
(60,354) 268,259
0 100,920
370,000 720,000
0 (1,870,990)
309,646 (781,811)
4,886,427 15,718,135
5,196,073 $ 14,936,324
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.
Change in Net Assets of Business -type Activities
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
919,658
319,439
1,090,000
(1,914,118)
414,979
(30,173)
(47,692)
78,314
114,693
0
145,315
5,823,221
$ 5,968,536
384,806
- 34 -
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, 2005
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:
Principal Payments on Intergovernmental Loans
Interest Payments on Intergovernmental Loans
NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES
$ 7,651,767 $
95,445
(4,683,530)
(789,655)
(842,988)
578
1,431,617
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Sales and Leasehold Excise Taxes Received
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 Contributions
Capital Transfers In From Other Funds
Capital Transfers Out To Other Funds
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
0
0
1,193,299 $
0
(419,096)
(804,128)
(9,996)
250,651
210,730
0
0
(34,856)
(21,706)
0
(376,715)
151,606
0
(30,000)
(485,000)
(203,578)
(1,000,249)
2,650,000
(3,157,236)
288,610
(218,626)
212,742
45,089
$ 257,831 $
0
0
0
1,812,862 $ 10,657,928 $
0 95,445
(249,029) (5,351,655)
(728,728) (2,322,511)
(285,996) (1,138,980)
6,688 257,917
555,797 2,198,144
237,698
0
0
0
0
(9,008)
0
370,000
0
(429,787)
(217,514)
(48,611)
215,000
(375,000)
6,888
(153,112)
9,007
42,112
51,119 $
(7,368)
(2,211)
(9,579)
2,123,028
(94,290)
(17,794)
0
(4,984,313)
0
720,000
0
0
0
(2,253,369)
10,460,874
(8,850,000)
105,642
1,716,516
9,365
2,178
11,543 $
(7,368)
(2,211)
(9,579)
0
5,634,585
(4,775,538)
(280,668)
(151,992)
17,092
443,479
0
0
0
237,698 0
2,123,028 0
(129,146) 0
(39,500) 0
0 71,176
(5,370,036) (601,580)
151,606 0
1,090,000 95,000
(30,000) 0
(914,787) 0
(421,092) 0
(3,302,229) (435,404)
13,325,874 730,000
(12,382,236) (815,000)
401,140 148,601
1,344,778 63,601
231,114 71,676
89,379 107,337
320,493 $ 179,013
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 Due to Other Governmental Units
Increase (Decrease) in Other Current Liabilities
Increase (Decrease) in Customer Deposits
Increase (Decrease) in Accrued Employee Leave Benefits
Total Adjustments
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
$ 738,566 $ (89,287) $ 189,297 $
704,709
29,281
(437)
(5,017)
(53,606)
0
0
9,159
8,962
693,051
$ 1,431,617 $
320,922
(23,898)
0
4,092
(11,004)
(3,701)
0
11,891
1,715
300,017
210,730 $
391,906
(20,209)
0
(1,394)
(6,928)
0
0
0
3,125
366,500
555,797 $
838,576 $ (244,219)
1,417,537 576,742
(14,826) (7,108)
(437) 0
(2,319) 12,400
(71,538) (17,465)
(3,701) 0
0 123,129
21,050 0
13,802 0
1,359,568 687,698
2,198,144 $ 443,479
NON CASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Capital Assets Acquired by Capital Lease
Capital Assets Contributed From Other Funds
Capital Assets Contributed to Other Funds
Capital Assets Transfers In From Other Funds
Capital Assets Contributed by Developers
Change in Fair Value of Investments
0 $ 128,605 $ 0 $
0 0 0
(13,128) 0 (1,870,990)
0 0 0
110,543 0 100,920
(130,698) 249 (16,499)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
128,605 $ 0
0 78,314
(1,884,118)
0 19,693
211,463 0
(146,948) (58,288)
- 35 -
City of Tukwila
Fund Financial Statements
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUND
December 31, 2005
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
$ 36,625
41,000
684,031
499,844
15,504
1,277,004
NET ASSETS
Held in Trust for Pension Benefits
and Other Purposes
$ 1,277,004
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
Page 1 of 1
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, 2005
FIREMEN'S PENSION
DESCRIPTION TRUST FUND
ADDITIONS
Contributions:
Fire Insurance Premiums $ 40,983
Investment Income:
Interest 26,771
Total Additions 67,754
DEDUCTIONS
Benefit Payments 44,095
Administrative Expenses 11,250
Total Deductions 55,345
Change in Net Assets 12,409
Net Assets - Beginning 1,264,595
Net Assets - Ending $ 1,277,004
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.
- 37 -
City of Tukwila
Notes to the Financial Statements
CITY OF TUKWILA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2005
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 2005. See NOTE 7 - JOINT
VENTURES for discussion of the Valley Communications Center which is a joint public safety
dispatching authority for five member cities. Also, see NOTE 14 - RISK MANAGEMENT for
discussion of the Washington Cities Insurance Authority.
B. Basis of Presentation
The City's basic financial statements consist of government -wide statements, including a statement
of net assets and a statement of activities, and fund financial statements which provide a more
detailed level of financial information.
Government -wide Financial Statements
The statement of net assets and the statement of activities display information about the City as a
whole. These statements include the financial activities of the government, except for fiduciary funds.
The activity of the internal service funds is eliminated to avoid "doubling up" revenues and expenses.
- 38 -
2005 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 Hotel /Motel Tax Fund became effective March 1, 1998. This revenue is a 1% room tax on
lodging in the City. Proceeds are designated for tourism and marketing efforts. Also, culture and
recreation activities are allowed.
- 39 -
City of Tukwila
Notes to the Financial Statements
3) 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.
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
- 40 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Notes to the Financial Statements
employees are charged to the respective user departments. All premiums, medical and dental costs
and ancillary charges are included.
Fiduciary Funds
Fiduciary Funds account for assets held by the City in a trustee capacity or as an agent for individuals,
private organizations, other governments, and other funds. The City'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
-41 -
City of Tukwila
Notes to the Financial Statements
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.
Nonexchange transactions, in which the City receives value without directly giving equal value in
return, include property taxes, sales and use taxes, admission taxes, gambling taxes, utility taxes,
hotel /motel taxes, grants, entitlements, and donations. These revenues are on an accrual basis. On the
accrual basis, the revenue is recognized in the period in which the income is earned. Revenue from
property taxes is recognized in the fiscal year for which the taxes are levied. (See Note 4 on
receivables).
Other Revenue Sources
Revenue sources which are not considered to meet the measurable and available criteria for revenue
recognition include licenses and permits, fines and forfeitures, and other miscellaneous revenues since
they are generally not measurable until received.
Under the modified accrual basis, expenditures are recorded when the fund liability is incurred, except
for principal and interest on general long -term debt and vacation and sick pay which are recorded
when paid.
As a general rule the effect of interfund activity has been eliminated via the process of consolidation
from the government -wide financial statements. Internal service fund and similar internal activity has
been eliminated from the government -wide statement of activities so that expenses are not reported
twice. Exceptions to this general rule are payments for interfund services provided and used, such as
between the City's water, sewer, and surface water functions and various other functions of the City,
which are not eliminated in the process of consolidation. Elimination of these charges would distort
the direct costs and program revenues reported for the various functions concerned. Amounts reported
on the government -wide statements as program revenues include, charges to customers or applicants
for goods, operating grants and contributions, and capital grants and contributions. General revenues
includes all taxes. The accrual basis of accounting is followed in all proprietary funds. Under the
accrual basis of accounting, revenues are recognized when earned and expenses are recorded when
incurred. All assets and liabilities are recorded in the fund.
F. Budgets and Budgetary Accounting
The City of Tukwila budgets its funds in accordance with the Revised Code of Washington 35A.33. In
compliance with the code, annual appropriated budgets are adopted for the general, special revenue,
debt service and capital projects funds. For governmental funds, there are no substantial differences
between the budgetary basis and generally accepted accounting principles. Budgetary accounts are
integrated in fund ledgers for all budgeted funds, but the financial statements include budgetary
comparisons for annually budgeted governmental funds only. Budgets established for proprietary and
trust funds are "management budgets" and are not legally required to be reported and, as such, are not
reported in the CAFR.
Annual appropriated budgets are adopted at the level of the fund and the budgets constitute the legal
authority for expenditures at that level. Subsidiary revenue and expenditure records are used to
compare the budgeted amounts with actual revenues and expenditures. As a management control
device, the subsidiary ledgers monitor expenditures for individual functions and activities by object
class. Annual appropriations for all funds lapse at year end.
- 42 -
2005 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
2005. Budget amounts presented in the basic financial statements include both the original amounts
and the final amended budget as approved by the City Council.
Expenditure Categories
General Government - includes administration, finance, municipal court, attorney, and city clerk activities.
Public Safety- includes all police and fire activities.
Physical Environment - includes expenditures for the public works activities not chargeable to the enterprise
funds.
Transportation - includes all street and arterial street maintenance and construction.
Economic Environment - reflects the planning and building inspection activities.
Culture and Recreation - includes the parks and recreation activities.
Interest on Long -term Debt
G. Assets, Liabilities and Fund Equity
Cash and Cash Equivalents
All cash and cash equivalents, restricted and unrestricted, consists of cash balances in our checking
account and our imprest funds. All funds in the care of other institutions are considered investments.
Investments
Investments are held separately by each of the funds with interest earned directly for the benefit of
each fund. Investments are reported on the financial statements at fair value, cost or amortized cost,
depending on the type and maturity length of each investment as required by GASB Statement 31.
Washington State statutes provide for the City to hold investments consisting of obligations of the
Federal Government, repurchase agreements, prime banker's acceptances, time certificates of deposit,
and the State Treasurer's Local Government Investment Pool. Additional deposit and investment
information is presented in Note 3.
Notes Receivable
Notes Receivable in the Enterprise Funds consists of sewer connection fees due from customers to the
Utility.
- 43 -
City of Tukwila
Notes to the Financial Statements
Receivables and Payables
Activity between funds that is representative of lending /borrowing arrangements outstanding at the
end of the fiscal year are referred to as either "interfund loans receivable /payable" or "advances
to /from other funds." All other outstanding balances between funds are reported as "due to /from
other funds ". Any residual balances outstanding between the governmental activities and business -type
activities are reported in the government -wide financial statements as "internal balances."
Interfund loans and advances between funds, as reported in the fund financial statements, are offset by
a fund balance reserve account in applicable governmental funds to indicate that they are not available
for appropriation and are not expendable available financial resources. See also Notes 5 and 11.
Inventories
Inventories carried in Proprietary Funds are valued at average cost using the consumption method. A
physical count is taken at year -end. Governmental Funds use the purchase method whereby inventory items
are considered expenditures when purchased. For governmental activities, inventories are recorded using
the consumption method.
Deferred Charges
Those unamortized debt issuance costs incurred for the issuance of long -term debt, such as legal fees, printing costs
and other costs related to the two 2003 General Obligation Bond issues. These costs are deferred and amortized
over the lives of the related issues.
Capital Assets and Depreciation
The accounting and reporting treatment applied to the capital assets associated with a fund are
determined by its measurement focus. Capital assets acquired in governmental funds are accounted for
as expenditures in the fund when the asset is purchased. These assets are reported in the
governmental activities column of the government -wide statement of net assets but are not reported in
the fund financial statements. Capital assets utilized by the proprietary funds are reported both in the
business -type activities column of the government -wide statement of net assets and in the respective
funds.
All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and
retirements during the year. Donated assets are valued at estimated fair market value at time of
acquisition. Where historical cost is not known, assets are recorded at estimated historical costs. The
City maintains a capitalization threshold of five thousand dollars. The City's infrastructure consists of
roads, bridges, storm sewers, water and sewer distribution and collection systems. Improvements are
capitalized; the costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend an asset's life are not.
Depreciation is computed using the straight line method over estimated service lives, as follows:
ASSET ESTIMATED SERVICE LIFE
Buildings 25 to 50 years
Non - Building Improvements 25 to 50 years
Utility Plant 10 to 50 years
Machinery and Equipment 2 to 50 years
Infrastructure 25 to 50 years
See Note 6 for additional information.
- 44 -
2005 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, 2005. 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.
Deficit Fund Equity:
As of December 31, 2005, there was a deficit fund balance of $(515,924) in the Hotel /Motel Tax Fund.
This was due to issuance and retirement of a Bond Anticipation Note originally for a land purchase and
retired by the issuance and receipt of interfund loan proceeds in early 2003. See also Note 5.
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 $1,621,308. 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).
- 46 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
At December 31, 2005, the City had the following investments:
FHLMC Notes
FHLB Bonds
FHLB Bonds
FNMA Notes
FHLB Bonds
FHLB Bonds
FHLB Bonds
FHLB Bonds
FHLB Bonds
FNMA Notes
Total
State Treasurer's Investment Pool
Total Investments
Notes to the Financial Statements
Reported Amount/
Call Date Maturity Date Credit Ratings Fair Value
09/29/05 09/29/06 AAA/Aaa $ 987,203
12/29/04 12/26/06 AAA/Aaa 2,951,250
N/A 01/16/07 AAA /Aaa 643,297
07/26/05 01/26/07 AAA/Aaa 4,921,875
N/A 02/22/07 AAA/Aaa 649,776
N/A 03/01/07 AAA /Aaa 999,240
N/A 07/27/07 AAA/Aaa 999,005
10/22/04 10/22/07 AAA /Aaa 4,885,937
N/A 11/23/07 AAA/Aaa 1,000,000
07/21/06 07/21/08 AAA /Aaa 3,998,750
$ 22,036,333
N/A Daily Basis Unrated 11,320,011
$ 33,356,344
RECONCILIATION OF ALL CASH, DEPOSITS, AND INVESTMENTS
Carrying Amount
From Statements of Net Assets:
Cash and Cash Equivalents $ 1,549,565
Deposits with Fiscal Agent /Trustee 6,771
Investments 32,781,344
Restricted Assets:
Cash and Cash Equivalents $ 86,293
Investments
575,000 661,293
Total All Cash, Deposits, and Investments from Statements of Net Assets
$ 34,998,973
Carrying Amount
Summary by Type:
Cash and Cash Equivalents
Cash in Bank (bank balance) $ 1,621,308
Cash on Hand 14,550 $ 1,635,858
Deposits with Fiscal Agent /Trustee 6,771
Investments
Investment in State Treasurer's
Investment Pool $ 11,320,011
FHLB Bonds 12,128,505
FNMA Notes 8,920,625
FHLMC Notes 987,203 33,356,344
Total All Cash, Deposits, and Investments $ 34,998,973
- 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, 2005, 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, Federal National
Mortgage Association notes, and Federal Home Loan Mortgage Corporation notes. These investments
are 36.36 %, 26.74 %, and 2.96% respectively, of the City's total investments.
- 48 -
2005 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.
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 2005, the City's general tax levy was $3.11712 per each $1,000 of assessed valuation. Total
assessed valuation was $3,610,558,767 and was the basis for the 2005 assessments.
Actual 2005 property taxes collected were as follows:
ITEM PROPERTY TAXES
General Levy $ 10,627,410
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.
In 2003, the City of Tukwila authorized and issued interfund loans of $1,350,000 from the General and
Arterial Street Funds to the Hotel /Motel Tax Fund for the repayment of a $1,450,000 note for the
purchase of land by the Hotel /Motel Tax Fund to Key Bank as authorized by the City Council through
Resolution No. 1516.
The following table is a reconciliation of $1,250,000 in interfund loans at December 31, 2005 of which
$100,000 is current and $1,150,000 is long -term:
Interfund Loans Payable:
Interfund Loans Receivable: Hotel /Motel Tax Fund
General Fund $ 544,440
Arterial Street Fund 705,560
Total Interfund Loans $ 1,250,000
Interfund transfers at December 31, 2005 were as follows:
Transfer Out:
General Arterial Street Nonmajor Water /Sewer Surface Water
Transfer In: Fund Fund Gov't Funds Utility Fund Utility Fund Total
Nonmajor Gov't Funds $ 150,000 $ 0 $ 0 $ 0 $ 0 $ 150,000
Foster Golf Course 370,000 0 0 0 0 370,000
Surface Water Utility Fund 0 270,000 450,000 0 0 720,000
Internal Service Funds 65,000 0 0 43,128 6,565 114,693
Sub -total Transfers $ 585,000 $ 270,000 $ 450,000 $ 43,128 $ 6,565 $ 1,354,693
* - Note 0 0 0 0 1,864,425 1,864,425
Total Transfers $ 585,000 $ 270,000 $ 450,000 $ 43,128 $ 1,870,990 $ 3,219,118
* Note: Transfers in do not equal transfers out at the fund level due to a $1,864,425 donation of capital assets from the Surface Water
Utility Fund to the General Government, which is reported as a one -sided transfer out. However, this transaction is reported as a transfer
on both sides in the Government -Wide Statement of Activities where transfers in and transfers out continue to balance.
The principal purposes for interfund transfers include interfund subsidies and transfers into debt service and
capital projects funds.
- 50 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Notes to the Financial Statements
NOTE 6 — CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2005, 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 $
35,480,519 $
10,626,609
46,107,128
22,238,132
10,192,593
10,489,007
90,426,785
133,346,517
(5,894,907)
(5,624,002)
(6,762,849)
(19,555,258)
(37,837,016)
95,509,501
141,616,629 $
BEGINNING
BALANCE
121,298 $ 0 $ 35,601,817
5,839,195 (9,735,672) 6,730,132
5,960,493 (9,735,672) 42,331,949
273,343 0 22,511,475
471,170 0 10,663,763
985,337 (486,927) 10,987,417
12,386,170 0 102,812,955
14,116,020 (486,927) 146,975,610
(538,448) 0 (6,433,355)
(398,442) 0 (6,022,444)
(856,643) 486,927 (7,132,565)
(2,441,424) 0 (21,996,682)
(4,234,957) 486,927 (41,585,046)
9,881,063 0 105,390,564
15,841,556 $ (9,735,672) $ 147,722,513
ENDING
INCREASES DECREASES BALANCE
Business -type Activities
Capital assets, not being depreciated:
Land $
Construction in Progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Buildings
Other Improvements
Machinery and Equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Other Improvements
Machinery and Equipment
Total accumulated depreciation
Total capital assets, being
depreciated, net
Business -type activity capital assets, net $
2,429,256 $
2,224,041
0 $
4,865,921
0
(2,639,529)
$ 2,429,256
4,450,433
4,653,297
9,082,691
44,120,110
2,097,285
55,300,086
(1,043,457)
(17,312,265)
(848,607)
(19,204,329)
36,095,757
40,749,054 $
4,865,921
0
1,377,467
131,882
1,509,349
(271,041)
(1,028378)
(115,963)
(1,415,382)
93,967
4,959,888 $
(2,639,529)
(3,276)
(66,958)
(29,058)
(99,292)
1,671
44,338
27,387
73,396
(25,896)
(2,665,425)
6,879,689
9,079,415
45,430,619
2,200,109
56,710,143
(1,312,827)
(18,296,305)
L937, 183)
(20,546,315)
36,163,828
$ 43,043,517
All reported capital assets of the City are depreciated Improvements are depreciated over the remaining
useful lives of the related capital assets. Useful lives for infrastructure were estimated based on the City's
historical records of necessary improvements and replacement.
- 51 -
City of Tukwila
Notes to the Financial Statements
Governmental Activities
Capital Assets - Increases:
2005 Capital Outlays
2005 Developer Turnovers
Surface Water Capital Assets Transfer — Cascade View Drainage Imp
Construction in Progress to Capital (Infrastructure)
Internal Service Funds (Equipment Rental)
Capital Assets — Total Increases
Depreciation expense for 2005 was charged to functions /programs
Governmental Activities:
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Culture and Recreation
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets
Total 2005 depreciation expense — governmental activities
Business -type Activities:
Water /Sewer Utility — Depreciation 2005
Foster Golf Course — Depreciation 2005
Surface Water Utility — Depreciation 2005
Total 2005 accumulated depreciation increases — business -type activities
$ 7,344,326
447,821
1,864,425
9,735,672
684,269
$ 20,076,513
as follows:
$ 52,755
178,090
558,729
2,442,823
3,748
422,070
576,742
$ 4,234,957
$ 702,554
320,922
391,906
$ 1,415,382
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 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
ITEM
Notes to the Financial Statements
The 2005 cost distribution for the five (5) participating cities are as follows:
Distribution of current year net income is based on these budgeted percentages. Information stated in Equity chart.
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, 2005
$4,119,474 $5,669,196 $3,841,306 $2,568,247 $2,162,381 $18,360,604
Current Year lncrease (Decrease) (145,040) (119,069) (144,529) (169,399) (132,294) (710,331)
Equity Dec. 31, 2005 $3,974,434 $5,550,127 $3,696,777 $2,398,848 $2,030,087 $17,650,273
Percent of Equity
Percent of 2005 Distribution
22.52% 31.44% 20.94% 13.60% 11.50% 100.00%
(20.42 %) (16.76 %) (20.35 %) (23.85 %) (18.62 %) (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.
- 53 -
Dispatchable
Calls
Percent of
Total *
Renton
68,388
20.42%
Kent
56,130
16.76
Auburn
68,153
20.35
Tukwila
79,875
23.85
Federal Way
62,360
18.62
Total
334,906
100.00%
Distribution of current year net income is based on these budgeted percentages. Information stated in Equity chart.
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, 2005
$4,119,474 $5,669,196 $3,841,306 $2,568,247 $2,162,381 $18,360,604
Current Year lncrease (Decrease) (145,040) (119,069) (144,529) (169,399) (132,294) (710,331)
Equity Dec. 31, 2005 $3,974,434 $5,550,127 $3,696,777 $2,398,848 $2,030,087 $17,650,273
Percent of Equity
Percent of 2005 Distribution
22.52% 31.44% 20.94% 13.60% 11.50% 100.00%
(20.42 %) (16.76 %) (20.35 %) (23.85 %) (18.62 %) (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.
- 53 -
City of Tukwila
Notes to the Financial Statements
This agreement provides that upon voluntary termination of any subregion's participation in the
system, it surrenders its radio frequencies, relinquishes its equipment and transfers any unexpended
levy proceeds and associated equipment replacement reserves to another subregion or consortium of
subregions.
Thus, in accordance with this agreement, the participating cities of Valley Com have no equity interest
in Valley Com's 800 -MHz communications system.
During 2000, the Valley Communications Center Development Authority was created to issue
$12,758,000 in General Obligation Bonds to finance construction, equipment, and land for a new
facility completed in 2002. Each of the five participating cities is responsible for one -fifth of the debt
obligation, which 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 2005
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
- 54 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Notes to the Financial Statements
government employees have the irrevocable option of choosing membership in either PERS Plan 2 or
PERS Plan 3. The option must be exercised within 90 days of employment. An employee is reported in
Plan 2 until a choice is made. Employees who fail to choose within 90 days default to PERS Plan 3.
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, 2005
follows:
PERS Plan I PERS Plan II PERS Plan III
Employer* 2.44% 2.44% 2.44 % **
Employee 6.00% 2.25% minimum 5.0% to maximum 15.0%
* The employer rates include the employer administrative expense fee currently set at 0.19 %.
** 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
2005 $ 6,559 $ 174,327 $ 34,101
2004 7,308 120,043 23,534
2003 14,846 116,348 15,464
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 -
2005 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, 2005 follow:
LEOFF Plan I LEOFF Plan II
Employer 0.19% 4.39%
Employee 0.00% 6.99%
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
2005 $1,062 $372,889
2004 1,167 305,621
2003 1,442 276,336
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, 2005.
Retirees and beneficiaries receiving benefits 11
Retirees currently receiving full retirement benefits through the
Law Enforcement Officers and Fire Fighters Retirement Plan (LEOFF) 3
Total 14
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, 2003 $ (6,879) N/A $ (29,725)
December 31, 2004 (6,486) N/A (76,523)
December 31, 2005 (5,386) N/A (111,642)
* 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)= [prioryr (4)= (I) +(2) (7) =(6)+ (10) =
int.rate (i)* (7)] / (9) - (3) (6) = (4) - (5) [prior yr (7)] (8) = (1) - (5) (9) [Prior yr (11) = (7)
(1) (5) (11)] / (9)
12/31/03 $ (6,789) $ 695 $ 785 $ (6,879) $ 32,776 $ (39,655) $ (29,725) $ (39,565) 12.6536 $ 785 $ (29,725)
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)
*(i) is the assumed interest rate that year: 7% in 2003, 7% in 2004, 6% in 2005
- 58 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Notes to the Financial Statements
GASB STATEMENT NO. 27 ANNUAL PENSION COST AND NET PENSION OBLIGATION
Fiscal Year Ending
2003 2004 2005
Annual required contribution (ARC)
1. Annual Normal Cost (BOY) $ 0 $ 0 $ 0
2. Amortization of UAAL (BOY) (6,345) (6,345) (6,176)
3. Interest to EOY [(1) + (2)]x (i)* (444) (444) (371)
4. ARC at EOY [(1) + (2) + (3)] $ (6,789) $ (6,789) $ (6,547)
5. Interest on NPO $ 695 $ (2,081) $ (4,591)
6. Adjustment to ARC 785 (2,384) (5,752)
7. Annual Pension Cost [(APC)]
[(4) + (5) — (6)] $ (6,879) $ (6,486) $ (5,386)
8. Employer Contributions ** 32,776 40,312 29,733
9. Change in NPO [(7) — (8)] (39,655) (46,798) (35,119)
10. NPO at BOY [(11) prior year] $ 9,930 $ (29,725) $ (76,523)
11. NPO at EOY [(9) + (10)] $ (29,725) $ (76,523) $ (111,642)
*(i) is the assumed interest rate that year: 7% in 2003, 7% in 2004, 6% in 2005
** 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, 2005 valuation are:
Economic assumptions:
Investment rate of return 6.00%
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 1994 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
2007
35,345
Less: Accumulated Depreciation
$ 0
Total
$ 128,605
The minimum lease obligation and the net present valure of these minimum lease payments as of
December 31, 2005 were as follows:
Year Ending December 31
Business -Type
Activities
2006
S 35,345
2007
35,345
2008
35,345
2009
11 ,782
Total Minimum Lease Payments
$ 117,817
Less: Amount Representing interest
$ (8,999)
Present Value of Minimum Lease Payments
$ 108,818
- 60 -
2005 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 $2,551,600 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, 2005. 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 01/01/05 $ 25,974,000 $ 3,675,000 $ 2,924,739 $ 0 $ 1,898,871 $ 34,472,610
Added 0 0 2,123,028 128,605 2,265,290 4,516,923
Retired 1,261,000 485,000 136,516 19,787 2,143,290 4,045,593
PAYABLE
12/31/05 $ 24,713,000 $ 3,190,000 $ 4,911,251 $ 108,818 $ 2,020,871 $ 34,943,940
City of Tukwila
Notes to the Financial Statements
The following chart depicts debt outstanding as of December 31, 2005:
INTEREST
ITEM RATES MATURITY AUTHORIZED
OUTSTANDING
01/01/05
ISSUED REDEEMED
12/31/05
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
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
2001 PWTF Loan -Water /Sewer
2001 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
3.21 -4.65
5.00
1.00
0.50
0.50
0.50
0.50
0.50
2.00
2.00
1.00
Compensated Absences:
BUSINESS -TYPE ACTIVITY
LONG -TERM LIABILITIES
TOTAL GOVERNMENTAL AND BUSINESS -
TYPE ACTIVITY LONG -TERM LIABILITIES
10,000,000 $ 8,365,000 $
2,551,600 2,054,000
0 $ (380,000) $ 7,985,000 $ 400,000
0 (146,000) 1,908,000 153,000
4,195,000 3,895,000 0 (325,000) 3,570,000 335,000
6,277,500 6,277,500 0 0 6,277,500 0
283,834
(68,781)
$ 23,024,100 $ 20,806,553 $ 0 $ 869 037 $ 19,937,516 $ 888,000
0 (25,679) 258,155 0
0 7,642 (611139) 0
12/01/06 $
02/01/15
12/01/23
07/01/10 $
07/01/11
07/01/05
07/01/05
07/01/08
07/01/21
07/01/21
07/01/24
07/01/24
07/01/24
$ 1,708,732 $ 2,075,359 $ (1,967,160) $ 1,816,931 $ 60,000
23,024,100 $ 22,515,285 $ 2,075,359 $ (2,836,197) $ 21,754,447 $ 948,000
2,925,000 $ 560,000 $
4,500,000 3,115,000
5,772,500 5,382,500
$ 13,197,500
0 $ (275,000) $
0 (210,000)
0 (410,000)
(82,217) 0 16,579
117,655 0 10 051 _
13,197,500 $ 9,092,938 0 $ (888,472) $
285,000 $
2,905,000
4,972,500
(65,638)
107,604
8,204,466 $
285,000
225,000
425,000
0
0
935,000
140,000 $ 44,215 $ 0 $ (7,370) $ 36,845 $ 7,369
1,313,000 356,247 0 (50,893) 305,354 50,893
75,000 20,403 0 (20,403) 0 0
25,000 6,799 0 (6,799) 0 0
100,000 75,000 25,000 (25,000) 75,000 25,000
273,870 245,722 0 (14,454) 231,268 14,454
219,725 197,142 0 (11,597) 185,545 11,597
4,788,000 957,600 0 0 957,600 50,400
912,000 182,400 0 0 182,400 9,600
4,196,056 839,211 2,098,028 0 2,937,239 154,592
12,042,651 $ 2,924,739 $ 2,123,028 $ (136,516) $ 4,911,251 $ 323,905
128,605 $ 0 $ 128,605 $ (19,787) $ 108,818 $ 30,871
$ 190,139 $ 189,931 $ (176,130) $ 203,940 $ 25,000
25,368,756 $ 12,207,816 $ 2,441,564 $ (1,220,905) $ 13,428,475 $ 1,314,776
48,392,856 $ 34,723,101 $ 4,516,923 $ (4,057,102) $ 35,182,922 $ 2,262,776
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 -
2005 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, 2005, 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 $ 54,158,382 $ 90,263,969 $ 180,527,938 $ 270,791,907
Outstanding Net Indebtedness 23,407,761 23,407,761 23,407,761 23,407,761
Margin Available $ 30,750,621 $ 66,856,208 $ 157,120,177 $ 247,384,146
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, 2005
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
2006
$ 888,000
$ 953,908
$ 425,000
$ 199,749
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 -2015
7,512,638
2,791,092
1,046,362
619,516
2016 -2020
5,159,703
1,100,982
1,280,297
384,468
2021 -2023
1,602,834
150,776
912,166
85,806
TOTALS
$ 19,740,500
$ 8,375,577
$ $4,972,500
$ 1,953,013
Business -Type Activities
Year Ended
December 31
Revenue Bonds
Public Works Trust Fund Loans
Total Long -Term Debt
PRINCIPAL
INTEREST
PRINCIPAL
INTEREST
PRINCIPAL
INTEREST
2006
$ 510,000
$ 180,052
$ 323,905
$ 55,244
$ 833,905
$ 235,296
2007
235,000
154,922
323,903
55,649
558,903
210,571
2008
250,000
142,063
323,903
51,770
573,903
193,833
2009
260,000
128,292
298,903
47,892
558,903
176,184
2010
275,000
113,848
298,903
44,138
573,903
157,986
2011 -2015
1,660,000
287,405
1,254,105
171,125
2,914,105
458,530
2016 -2020
0
0
1,203,212
98,712
1,203,212
98,712
2021 -2024
0
0
884,417
27,289
884,417
27,589
TOTALS
$ 3,190,000
$ 1,006,582
$ 4,911,251
$ 552,119
$ 8,101,251
$ 1,558,701
- 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
Interfund Loans Receivable 544,440 705,560 0 1,250,000
Employees' Pension Benefits 0 0 1,277,004 1,277,004
Total $ 557,690 $ 705,560 $ 1,277,004 $ 2,540,254
There is a Fund Equity Designation of $2,816,822 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 $ 35,770
Customer deposits - Foster golf course 47,936
Revenue bond reserve account 577,587
Total restricted assets $ 661,293
- 64 -
2005 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 115 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 $11 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 $14 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 $100,000 and a plan
- 65 -
City of Tukwila
Notes to the Financial Statements
limit of $5,989,204 in 2005. Each fund contributes an appropriate amount each year to pay premiums
and claims. At the end of each year the employees and employer share equally any residual amounts.
Liabilities include an amount for claims that have been incurred but not reported (IBNR's). Claim
liabilities are calculated considering the effects of inflation, recent claim settlement trends including
frequency and amount of payouts, and other economic and social factors. The basis for estimating the
liabilities for unpaid claims includes the effects of specific, incremental claim adjustment expenses,
salvage, subrogation, and other allocated adjustment expenses.
The following table reflects changes in the balances of claims liabilities for 2004 and 2005.
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
2005
$ 654,039
3,826,453
(3,733,743)
$ 746,749
Insurance
2004
$ 629,182
3,295,052
(3,270,195)
$ 654,039
Insurance —
LEOFF I
2005
S 48,365
424,339
(393,920)
$ 78,784
Insurance —
LEOFF I
2004
$ 0
290,192
(241,827)
$ 48,365
The City insures its buildings, equipment, and vehicle property insurance with WCIA. They self -fund
up to $250,000 with standard property insurance purchased above that amount. American States
Insurance Company insures boiler machinery, crime and employee dishonesty coverage.
The City of Tukwila has a Risk Management and a Safety Committee to oversee risk management. In
addition, the WCIA provides support for a proactive risk analysis program and a loss control manual.
NOTE 15 — OTHER POST EMPLOYMENT BENEFITS
In addition to the pension benefits described in Note 8, the City provides post retirement health care
benefits, in accordance with State statutes, to all LEOFF retirees. Currently, 39 retirees meet those
eligibility requirements. The City provides medical insurance and reimburses for all validated claims for
medical, dental, and hospitalization costs incurred by retirees. Expenditures for post retirement health
care benefits are recognized as retirees report claims. During the year, expenditures of $458,341 were
recognized for post retirement health care. This represents a $1,491 increase from the previous year.
- 66 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Notes to the Financial Statements
This page intentionally left blank.
City of Tukwila
Notes to the Financial Statements
2005 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
$ 1,076
1,215
1,265
$ 1,243
1,135
1,182
$ 167
(80)
(83)
86.56% $ 112
107.05 0
107.02 0
SCHEDULE OF CONTRIBUTIONS FROM THE EMPLOYER
AND OTHER CONTRIBUTING ENTITIES
149.11%
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
Actual
Employer
Contributions
$ 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
Less Medical
Payments & Total Fund
Expenses * Contributions
$ 0
40,000
25,000
3,875
500
11,250
$ 25,720
(9,181)
6,845
32,776
40,312
29,733
Annual Required
Contribution
(ARC)
$ 14,248
14,248
14,248
(6,789)
(6,789)
(6,547)
Percentage of
ARC Contributed
181%
(64)
48
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.
- 70 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Required Supplementary Information
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FIREMEN'S PENSION TRUST FUND
Valuation Date
January 1, 2005
Actuarial Cost Method
Entry Age Normal
Amortization Method
30 -year, closed as of January 1, 1999
Remaining Amortization Period
24 years
Asset Valuation Method
Fair Value
Actuarial Assumptions:
Investment Rate of Return
6.0%
Projected Salary Increases
4.0%
Includes Inflation at
3.0%
Cost of Living Adjustments
Based upon salary increase assumption for FPF
benefits, inflation assumption for LEOFF benefits.
* Under the Firemen's Pension Trust Fund, most adjustments are based on the change in salary for the rank of the members held at
retirement or based on the Consumer Price Index. Adjustments are determined in accordance with RCW 41.18.150, RCW 41.20
and RCW 41.26.
-71 -
City of Tukwila
Required Supplementary Information
2005 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
01,10 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, 2005
SPECIAL
REVENUE
140,083 $
1,646,306
0
17,678
0
1,804,067 S
DEBT
SERVICE
CAPITAL
PROJECTS
TOTAL
NONMAJOR
FUNDS
78,795 $ 662,111 $
871,000 4,765,951
355,444
0
0
1,305,239
286,152
10,197
10,995
$ 5,735,406
880,989
7,283,257
641,596
27,875
10,995
8,844,712
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable
Other Current Liabilities
Deferred Revenues
TOTAL LIABILITIES
FUND BALANCES:
Unreserved - Undesignated
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
0 $
0
0
0
1,804,067
1,804,067
1,804,067 $
0 $
0
0
0
1,305,239
1,305,239
1,305,239 $
40,014 $
13,780
3,659
57,453
5,677,953
5,677,953
5,735,406 $
40,014
13,780
3,659
57,453
8,787,259
8,787,259
8,844,712
- 76 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page 1 of 1
DESCRIPTION
REVENUES
Taxes
Intergovernmental
Investment Income
Miscellaneous
TOTAL REVENUES
Combining Statements - Nonmajor Governmental Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES BY FUND TYPE
NONMAJOR GOVERNMENTAL FUNDS
For the year ended December 31, 2005
SPECIAL
REVENUE
DEBT
SERVICE
CAPITAL
PROJECTS
TOTAL
NONMAJOR
FUNDS
$ 0
360,106
69,565
7,470
437,141
$ 1,754,510
250,812
37,419
0
2,042,741
1,792,030 $
70,925
135,971
294,019
2,292,945
3,546,540
681,843
242,955
301,489
4,772,827
EXPENDITURES
Current:
Public Safety
Physical Environment
Transportation
Culture and Recreation
Debt Service:
Principal
Interest
Capital Outlay
TOTAL EXPENDITURES
744,675
0
155,688
0
0
0
0
900,363
0
0
0
0
851,000
993,864
0
1,844,864
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers (Out)
TOTAL OTHER FINANCING SOURCES AND (USES)
(463,222)
150,000
(450,000)
(300,000)
197,877
0
0
0
0
164,064
0
84,310
0
0
458,797
707,171
1,585,774
0
0
0
Net Change in Fund Balances
Fund Balances - Beginning
FUND BALANCES - ENDING
(763,222)
2,567,289
$ 1,804,067 $
197,877
1,107,362
1,305,239 $
1,585,774
4,092,179
5,677,953 $
744,675
164,064
155,688
84,310
851,000
993,864
458,797
3,452,398
1,320,429
150,000
(450,000)
(300,000)
1,020,429
7,766,830
8,787,259
- 77 -
City of Tukwila
Combining and Individual Fund Statements
2005 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.
Valley Narcotics Enforcement Team (VNET) - Established to account for the program activities of narcotic
related investigations involving the jurisdictions of Auburn, Kent, Renton, Tukwila, King County, and the
Washington State Patrol. Tukwila transferred fiscal agent duties to the City of Auburn effective July 1, 2005
Per City Council Resolution No. 1582, resulting in the closing and discontinuation of this fund.
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.
City of Tukwila
Combining Statements - Nonmajor Governmental Funds Page 1 of 1
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2005
SPECIAL REVENUE
VALLEY NARCOTICS FIRE EQUIPMENT TOTAL NONMAJOR
ENFORCEMENT CUMULATIVE SPECIAL REVENUE
DESCRIPTION TEAM (VNET) STREET CONTINGENCY RESERVE FUNDS
ASSETS
Cash and Cash Equivalents $ 0 $ 94,973 $ 24,517 $ 20,593 $ 140,083
Investments 0 295,312 752,869 598,125 1,646,306
Receivables:
Interest on Investments 0 6,973 4,569 6,136 17,678
TOTAL ASSETS $ 0 $ 397,258 $ 781,955 $ 624,854 $ 1,804,067
FUND BALANCES:
Unreserved - Undesignated 0 397,258 781,955 624,854 1,804,067
TOTAL FUND BALANCES 0 397,258 781,955 624,854 1,804,067
TOTAL LIABILITIES AND FUND BALANCES $ 0 $ 397,258 $ 781,955 $ 624,854 $ 1,804,067
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page 1 of 1
Combining Statements - Nonmajor Governmental Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the year ended December 31, 2005
SPECIAL REVENUE
VALLEY NARCOTICS
ENFORCEMENT
DESCRIPTION TEAM (VNET) STREET
REVENUES
Intergovernmental $ 109,341
Investment Income 6,587
Miscellaneous 7,370
TOTAL REVENUES 123,298
FIRE EQUIPMENT
CUMULATIVE
CONTINGENCY RESERVE
TOTAL NONMAJOR
SPECIAL REVENUE
FUNDS
$ 250,765 $
21,354
0
272,119
0 $
23,591
0
23,591
0 $
18,033
100
18,133
360,106
69,565
7,470
437,141
EXPENDITURES
Current:
Public Safety
Transportation
TOTAL EXPENDITURES
744,675 0 0 0
0 155,688 0 0
744,675 155,688 0 0
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers (Out)
TOTAL OTHER FINANCING
SOURCES AND (USES)
(621,377) 116,431 23,591 18,133
0 0 0 150,000
0 (450,000) 0 0
0 (450,000) 0 150,000
Net Change in Fund Balances
Fund Balances - Beginning
FUND BALANCES - ENDING $
(621,377) (333,569) 23,591 168,133
621,377 730,827 758,364 456,721
0 $ 397,258 $ 781,955 $ 624,854 $
744,675
155,688
900,363
(463,222)
150,000
(450,000)
(300,000)
(763,222)
2,567,289
1,804,067
-81 -
J'FV!I1lA:.,
City of Tukwila
wo ft +TP
0
.... Combining Statements - Nonmajor Governmental Funds Page 1 of 4
7908
VALLEY NARCOTICS ENFORCEMENT TEAM (VNET)
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
For the Year Ended December 31, 2005
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE)
REVENUES
Intergovernmental $ 100,000 $ 100,000 $ 109,341 $ 9,341
Investment Income 2,000 2,000 6,587 4,587
Miscellaneous 75,000 75,000 7,370 (67,630)
TOTAL REVENUES 177,000 177,000 123,298 (53,702)
EXPENDITURES
Current:
Public Safety 748,000 748,000 744,675 3,325
Transportation 0 0 0 0
Capital Outlay 10,000 10,000 0 10,000
TOTAL EXPENDITURES 758,000 758,000 744,675 13,325
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (581,000) (581,000) (621,377) (40,377)
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 (581,000) (581,000) (621,377) (40,377)
Fund Balance - Beginning 581,000 581,000 621,377 40,377
FUND BALANCE - ENDING $ 0 $ 0 $ 0 $ 0
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page 2 of 4 Combining Statements - Nonmajor Governmental Funds
STREET FUND
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
For the Year Ended December 31, 2005
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE)
REVENUES
Intergovernmental $ 235,000 $ 235,000 $ 250,765 $ 15,765
Investment Income 4,000 4,000 21,354 17,354
Miscellaneous 0 0 0 0
TOTAL REVENUES 239,000 239,000 272,119 33,119
EXPENDITURES
Current:
Public Safety 0 0 0 0
Transportation 146,000 146,000 155,688 (9,688)
Capital Outlay 175,000 175,000 0 175,000
TOTAL EXPENDITURES 321,000 321,000 155,688 165,312
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (82,000) (82,000) 116,431 198,431
OTHER FINANCING SOURCES (USES)
Transfers In 0 0 0 0
Transfers (Out) (450,000) (450,000) (450,000) 0
TOTAL OTHER FINANCING
SOURCES AND (USES) (450,000) (450,000) (450,000) 0
Net Change in Fund Balance (532,000) (532,000) (333,569) 198,431
Fund Balance - Beginning 751,000 751,000 730,827 (20,173)
FUND BALANCE - ENDING $ 219,000 $ 219,000 $ 397,258 $ 178,258
'LA..�,9 ,
011
City of Tukwila
Combining Statements - Nonmajor Governmental Funds Page 3 of 4 Pa
CONTINGENCY FUND
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
For the Year Ended December 31, 2005
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE)
REVENUES
Intergovernmental $ 0 $ 0 $ 0 $ 0
Investment Income 20,000 20,000 23,591 3,591
Miscellaneous 0 0 0 0
TOTAL REVENUES 20,000 20,000 23,591 3,591
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 23,591 3,591
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 23,591 3,591
Fund Balance - Beginning 764,000 764,000 758,364 (5,636)
FUND BALANCE - ENDING $ 784,000 $ 784,000 $ 781,955 $ (2,045)
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
9ge 4 of 4 Combining Statements - Nonmajor Governmental Funds
FIRE EQUIPMENT CUMULATIVE RESERVE FUND
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
For the Year Ended December 31, 2005
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE)
REVENUES
Intergovernmental $ 0 $ 0 $ 0 $ 0
Investment Income 3,000 3,000 18,033 15,033
Miscellaneous 1,000 1,000 100 (900)
TOTAL REVENUES 4,000 4,000 18,133 14,133
EXPENDITURES
Current:
Public Safety 2,000 2,000 0 2,000
Transportation 0 0 0 0
Capital Outlay 0 0 0 0
TOTAL EXPENDITURES 2,000 2,000 0 2,000
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,000 2,000 18,133 16,133
OTHER FINANCING SOURCES (USES)
Transfers In 150,000 150,000 150,000 0
Transfers (Out) 0 0 0 0
TOTAL OTHER FINANCING
SOURCES AND (USES) 150,000 150,000 150,000 0
Net Change in Fund Balance 152,000 152,000 168,133 16,133
Fund Balance - Beginning 456,000 456,000 456,721 721
FUND BALANCE - ENDING $ 608,000 $ 608,000 $ 624,854 $ 16,854
City of Tukwila
Combining and Individual Fund Statements
2005 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.
City of Tukwila
Combining Statements - Nonmajor Governmental Funds
DESCRIPTION
ASSETS
Cash and Cash Equivalents
Investments
Receivables:
Taxes
TOTAL ASSETS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2005
DEBT SERVICE
LIMITED TAX
G.O. 1999
LIMITED TAX
G.O. 2000
LIMITED TAX
G.O. 2003
LIMITED TAX G.O.
REFUNDING
BONDS 2003
Page 1 of 1
TOTAL NONMAJOR
DEBT SERVICE
FUNDS
$ 3,862 $
295,000
176,126
$ 474,988 $
7,884 $ 62,527 $
145,000 192,000
0 73,833
152,884 $ 328,360 $
4,522 $
239,000
105,485
349,007 $
78,795
871,000
355,444
1,305,239
FUND BALANCES:
Unreserved - Undesignated
TOTAL FUND BALANCES
474,988
$ 474,988 $
152,884
152,884 $
328,360
328,360 $
349,007
349,007 $
1,305,239
1,305,239
- 88 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page 1 of 1 Combining Statements - Nonmajor Governmental Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2005
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
REVENUES
Taxes $ 869,376 $ 0 $ 364,447 $ 520,687 $ 1,754,510
Intergovernmental 0 250,812 0 0 250,812
Investment Income 15,316 4,714 6,602 10,787 37,419
TOTAL REVENUES 884,692 255,526 371,049 531,474 2,042,741
EXPENDITURES
Debt Service:
Principal 380,000 146,000 0 325,000 851,000
Interest 451,142 104,812 272,410 165,500 993,864
TOTAL EXPENDITURES 831,142 250,812 272,410 490,500 1,844,864
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 53,550 4,714 98,639 40,974 197,877
Net Change in Fund Balances 53,550 4,714 98,639 40,974 197,877
Fund Balances - Beginning 421,438 148,170 229,721 308,033 1,107,362
FUND BALANCES - ENDING $ 474,988 $ 152,884 $ 328,360 $ 349,007 $ 1,305,239
- 89 -
.............. „Its, w
o
,!ko,
City of Tukwila
Combining Statements - Nonmajor Governmental Funds Page 1 of 4
LIMITED TAX G.O. BONDS, 1999
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
For the Year Ended December 31, 2005
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE)
REVENUES
Taxes $ 835,000 $ 835,000 $ 869,376 $ 34,376
Intergovernmental 0 0 0 0
Investment Income 5,000 5,000 15,316 10,316
TOTAL REVENUES 840,000 840,000 884,692 44,692
EXPENDITURES
Debt Service:
Principal 380,000 380,000 380,000 0
Interest 451,035 451,035 451,142 (107)
TOTAL EXPENDITURES 831,035 831,035 8317142 (107)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 8,965 8,965 53,550 44,585
Net Change in Fund Balance 8,965 8,965 53,550 44,585
Fund Balance - Beginning 386,000 386,000 421 438 35,438
FUND BALANCE - ENDING $ 394,965 $ 394,965 $ 474,988 $ 80,023
- 90 -
2005 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, 2005
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE)
REVENUES
Taxes $ 0 $ 0 $ 0 $ 0
Intergovernmental 250,000 250,000 250,812 812
Investment Income 2,000 2,000 4,714 2,714
TOTAL REVENUES 252,000 252,000 255,526 3,526
EXPENDITURES
Debt Service:
Principal 146,000 146,000 146,000 0
Interest 104,812 104,812 104,812 0
TOTAL EXPENDITURES 250,812 250,812 250,812 0
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,188 1,188 4,714 3,526
Net Change in Fund Balance 1,188 1,188 4,714 3,526
Fund Balance - Beginning 149,000 149,000 148,170 (830)
FUND BALANCE - ENDING $ 150,188 $ 150,188 $ 152,884 $ 2,696
-91 -
City of Tukwila
Combining Statements - Nonmajor Governmental Funds Page 3 of 4
LIMITED TAX G.O. BONDS, 2003
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
For the Year Ended December 31, 2005
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE)
REVENUES
Taxes $ 350,000 $ 350,000 $ 364,447 $ 14,447
Intergovernmental 0 0 0 0
Investment Income 2,000 2,000 6,602 4,602
TOTAL REVENUES 352,000 352,000 371,049 19,049
EXPENDITURES
Debt Service:
Principal 0 0 0 0
Interest 273,000 273,000 272,410 590
TOTAL EXPENDITURES 273,000 273,000 272,410 590
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
79,000 79,000 98,639
Net Change in Fund Balance 79,000 79,000 98,639
Fund Balance - Beginning 214,000 214,000 229 721
FUND BALANCE - ENDING $ 293,000 $ 293,000 $ 328,360
19,639
19,639
15,721
35,360
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page 4 of 4 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, 2005
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE)
REVENUES
Taxes $ 500,000 $ 500,000 $ 520,687 $ 20,687
Intergovernmental 0 0 0 0
Investment Income 3,000 3,000 10,787 7,787
TOTAL REVENUES 503,000 503,000 531,474 28,474
EXPENDITURES
Debt Service:
Principal 325,000 325,000 325,000 0
Interest 166,779 166,779 165,500 1,279
TOTAL EXPENDITURES 491,779 491,779 490,500 1,279
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
11,221 11,221 40,974
29,753
Net Change in Fund Balance 11,221 11,221 40,974 29,753
Fund Balance - Beginning 285,000 285,000 308,033 23,033
FUND BALANCE - ENDING $ 296,221 $ 296,221 $ 349,007 $ 52,786
City of Tukwila
Combining Statements - Nonmajor Governmental Funds
- 94 -
2005 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
TOTAL ASSETS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2005
CAPITAL PROJECTS
LAND
ACQUISITION,
RECREATION
AND PARK
DEVELOPMENT
FACILITY
REPLACEMENT
GENERAL
GOVERNMENT
IMPROVEMENTS
Page 1 of 1
TOTAL NONMAJOR
CAPITAL PROJECTS
FUNDS
79,617 $ 517,340 $
1,880,868 1,756,148
177,008 3,659
4,569 3,455
0 0
2,142,062 $ 2,280,602 $
65,154 $
1,128,935
105,485
2,173
10,995
1,312,742 $
662,111
4,765,951
286,152
10,197
10,995
5,735,406
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable
Other Current Liabilities
Deferred Revenues
TOTAL LIABILITIES
FUND BALANCES:
Unreserved - Undesignated
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES $
0 $
11,280
0
11,280
2,130,782
2,130,782
2,142,062 $
0 $
2,500
3,659
6,159
2,274,443
2,274,443
2,280,602 $
40,014 $
0
0
40,014
1,272,728
1,272,728
1,312,742 $
40,014
13,780
3,659
57,453
5,677,953
5,677,953
5,735,406
- 96 -
2005 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, 2005
CAPITAL PROJECTS
LAND
ACQUISITION,
RECREATION
AND PARK FACILITY
DEVELOPMENT REPLACEMENT
GENERAL
GOVERNMENT
IMPROVEMENTS
TOTAL NONMAJOR
CAPITAL PROJECTS
FUNDS
$ 1,138,557 $
50,000
45,553
255,172
1,489,282
132,786 $
0
54,700
38,847
226,333
520,687 $
20,925
35,718
0
577,330
1,792,030
70,925
135,971
294,019
2,292,945
EXPENDITURES
Current:
Physical Environment
Culture and Recreation
Capital Outlay
TOTAL EXPENDITURES
0
84,310
184,689
268,999
6,952 157,112
0 0
8,682 265,426
15,634 422,538
164,064
84,310
458,797
707,171
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
Net Change in Fund Balances
Fund Balances - Beginning
FUND BALANCES - ENDING
1,220,283
1,220,283
910,499
$ 2,130,782 $
210,699 154,792
210,699 154,792
2,063,744 1,117,936
2,274,443 $ 1,272,728 $
1,585,774
1,585,774
4,092,179
5,677,953
- 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, 2005
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
AMOUNTS
Page 1 of 3
VARIANCE WITH
FINAL BUDGET
POSITIVE /(NEGATIVE)
EXPENDITURES
Current:
Physical Environment
Culture and Recreation
Capital Outlay
TOTAL EXPENDITURES
962,000 $
108,000
10,000
334,000
1,414,000
0
148,500
1,625,000
1,773,500
962,000 $
108,000
10,000
334,000
1,414,000
0
148,500
1,625,000
1,773,500
1,138,557 $
50,000
45,553
255,172
1,489,282
0
84,310
184,689
268,999
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
(359,500)
0
(359,500)
0
1,220,283
0
0
(359,500)
1,098,000
738,500
0
(359,500)
1,098,000
738,500 $
0
1,220,283
910,499
2,130,782 $
176,557
(58,000)
35,553
(78,828)
75,282
0
64,190
1,440,311
1,504,501
1,579,783
0
0
1,579,783
(187,501)
1,392,282
- 98 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Page 2 of 3 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, 2005
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE)
REVENUES
Taxes $ 130,000 $ 130,000 $ 132,786 $ 2,786
Intergovernmental 0 0 0 0
Investment Income 3,000 3,000 54,700 51,700
Miscellaneous 40,000 40,000 38,847 (1,153)
TOTAL REVENUES 173,000 173,000 226,333 53,333
EXPENDITURES
Current:
Physical Environment 125,000 125,000 6,952 118,048
Culture and Recreation 0 0 0 0
Capital Outlay 688,000 688,000 8,682 679,318
TOTAL EXPENDITURES 813,000 813,000 15,634 797,366
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (640,000) (640,000) 210,699 850,699
OTHER FINANCING SOURCES (USES)
Sale of Capital Assets 3,500,000 3,500,000 0 (3,500,000)
TOTAL OTHER FINANCING
SOURCES AND (USES) 3,500,000 3,500,000 0 (3,500,000)
Net Change in Fund Balance 2,860,000 2,860,000 210,699 (2,649,301)
Fund Balance - Beginning 2,002,000 2,002,000 2,063,744 61,744
FUND BALANCE - ENDING $ 4,862,000 $ 4,862,000 $ 2,274,443 $ (2,587,557)
- 99 -
City of Tukwila
Combining Statements - Nonmajor Governmental Funds Page 3 of 3
GENERAL GOVERNMENT IMPROVEMENTS
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL
For the Year Ended December 31, 2005
VARIANCE WITH
BUDGETED AMOUNTS ACTUAL FINAL BUDGET
DESCRIPTION ORIGINAL FINAL AMOUNTS POSITIVE /(NEGATIVE)
REVENUES
Taxes $ 500,000 $ 500,000 $ 520,687 $ 20,687
Intergovernmental 20,000 20,000 20,925 925
Investment Income 5,000 5,000 35,718 30,718
Miscellaneous 0 0 0 0
TOTAL REVENUES 525,000 525,000 577,330 52,330
EXPENDITURES
Current:
Physical Environment 92,000 92,000 157,112 (65,112)
Culture and Recreation 0 0 0 0
Capital Outlay 1,220,000 1,220,000 265,426 954,574
TOTAL EXPENDITURES 1,312,000 1,312,000 422,538 889,462
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(787,000) (787,000)
154,792 941,792
OTHER FINANCING SOURCES (USES)
Sale of Capital Assets 0 0 0 0
TOTAL OTHER FINANCING
SOURCES AND (USES) 0 0 0 0
Net Change in Fund Balance (787,000) (787,000) 154,792 941,792
Fund Balance - Beginning 1,037,000 1,037,000 1,117,936 80,936
FUND BALANCE - ENDING $ 250,000 $ 250,000 $ 1,272,728 $ 1,022,728
- 100 -
2005 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.
.0'
° City of Tukwila
Combining Statements - Internal Service Funds Page 1 of 1
DESCRIPTION
ASSETS
Current Assets:
Cash and Cash Equivalents
Investments
Receivables:
Customer Accounts
Interest on Investments
Materials Inventory
Total Current Assets
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
As of December 31, 2005
EQUIPMENT
RENTAL
INSURANCE -
INSURANCE LEOFF I
TOTAL
$ 105,930 $ 2,054 $
3,154,141 478,000
0 7,108
19,481 0
45,300 0
3,324,852 487,162
71,029 $ 179,013
625,000 4,257,141
0 7,108
0 19,481
0 45,300
696,029 4,508,043
Noncurrent Assets:
Capital Assets:
Machinery and Equipment
Less: Accumulated Depreciation
Total Capital Assets (net of
accumulated depreciation)
Total Assets
6,866,815
(4,580,789)
2,286,026
5,610,878
0 0
0 0
0 0
487,162 696,029
6,866,815
(4,580,789)
2,286,026
6,794,069
LIABILITIES
Current Liabilities:
Other Current Liabilities
Total Current Liabilities
0 746,749 78,784
0 746,749 78,784
NET ASSETS
Invested in Capital Assets
Unrestricted
TOTAL NET ASSETS
2,286,026
3,324,852
$ 5,610,878 $
0 0
(259,587) 617,245
(259,587) $ 617,245 $
825,533
825,533
2,286,026
3,682,510
5,968,536
- 102 -
2005 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, 2005
EQUIPMENT
RENTAL
INSURANCE
INSURANCE -
LEOFF I
TOTAL
OPERATING REVENUES
Charges for Services
Other Operating Revenues
Total Operating Revenues
1,575,849 $
16,277
1,592,126
3,628,395 $
815
3,629,210
430,341 $
0
430,341
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
875,693
151,992
576,742
1,604,427
(12,301)
85,831
71,176
157,007
3,865,022
0
0
3,865,022
(235,812)
19,673
0
426,447
0
0
426,447
3,894
19,847
0
19,673 19,847
144,706
78,314
114,693
337,713
5,273,165
5,610,878 $
(216,139)
0
0
(216,139)
(43,448)
(259,587) $
23,741
0
0
23,741
593,504
617,245
5,634,585
17,092
5,651,677
5,167,162
151,992
576,742
5,895,896
(244,219)
125,351
71,176
196,527
(47,692)
78,314
114,693
145,315
5,823,221
$ 5,968,536
- 103 -
City of Tukwila
Combining Statements - Internal Service Funds
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2005
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
Page 1 of 1
INSURANCE -
LEOFFI TOTAL
$ 1,575,849 $
(600,090)
(280,668)
(151,992)
16,277
559,376
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 ACTIVITIES
71,176
(601,580)
95,000
3,628,395 $
(3,779,420)
0
0
815
(150,210)
0
0
0
430,341 $ 5,634,585
(396,028) (4,775,538)
0 (280,668)
0 (151,992)
0 17,092
34,313 443,479
(435,404)
400,000
(590,000)
109,081
(80,919)
0
0 71,176
0 (601,580)
0 95,000
0 (435,404)
230,000 100,000
(100,000) (125,000)
19,673 19,847
149,673 (5,153)
730,000
(815,000)
148,601
63,601
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1
CASH AND CASH EQUIVALENTS, DECEMBER 31 $
43,053
62,877
105,930 $
(537) 29,160
2,591 41,869
71,676
107,337
2,054 $ 71,029 $ 179,013
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
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
NON CASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Capital Assets Contributed From Other Funds
Capital AssetsTransfers In From Other Funds
Change in Fair Value of Investments
(12,301) (235,812) 3,894 (244,219)
576,742 0 0 576,742
0 (7,108) 0 (7,108)
12,400 0 0 12,400
(17,465) 0 0 (17,465)
0 92,710 30,419 123,129
571,677 85,602 30,419 687,698
559,376 $ (150,210) $ 34,313 $ 443,479
78,314 $ 0 $ 0 $ 78,314
19,693 0 0 19,693
(58,288) 0 0 (58,288)
- 104 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Statistical Section
STATISTICAL TABLES
City of Tukwila
Statistical Section
TABLE 1
GOVERNMENT -WIDE EXPENSES BY FUNCTION
December 31, 2005
INTEREST ON FOSTER SURFACE
FISCAL GENERAL PUBLIC PHYSICAL ECONOMIC CULTURE & LONG -TERM WATER/SEWER GOLF WATER
YEAR GOVERNMENT SAFETY ENVIRONMENT TRANSPORTATION ENVIRONMENT RECREATION DEBT UTILITY COURSE UTILITY TOTAL
2002 $ 5,622,413 $ 16,824,082 $ 1,736,826 $ 3,742,931
2003 6,038,146 18,172,209 2,022,722 6,524,495
2004 6,167,738 18,769,074 1,442,209 4,962,043
2005 6,421,839 20,300,709 1,363,049 4,171,173
2,982,802 $ 2,756,612 $ 907,840 $ 6,693,879 $ 1,372,536 $ 1,480,645 $ 44,120,566
3,437,515 3,377,383 937,177 6,673,319 1,255,562 1,671,519 50,110,047
3,469,673 3,680,402 1,034,841 6,774,102 1,670,400 1,625,579 49,596,061
3,404,605 3,887,871 1,012,239 7,105,020 1,751,709 1,685,663 51,103,877
Note: Future Comprehensive Annual Financial Reports will build the required ten-year history one-year at a time.
Source: City of Tukwila Finance Department
Age-
1908
City of Tukwila
Statistical Section
TABLE 2
GOVERNMENT -WIDE REVENUES
December 31, 2005
PROGRAM REVENUES GENERAL REVENUES
STATE
OPERATING CAPITAL GRANTS ENTITLEMENTS, UNRESTRICTED GAIN ON SALES
FISCAL CHARGES FOR GRANTS AND AND IMPACT FEES, IN- INVESTMENT OF CAPITAL
YEAR SERVICES CONTRIBUTIONS CONTRIBUTIONS TAXES LIEU TAXES EARNINGS ASSETS
TOTAL
2002 $ 12,783,148 $ 2,513,119 $ 15,905,423 $ 28,366,651 $ 154,832 $ 1,528,127 $ 209,554 $ 61,460,854
2003 13,403,182 1,612,016 19,500,879 32,781,485 170,477 525,443 19,035 68,012,517
2004 15,379,051 1,607,688 4,294,315 35,501,923 191,589 604,725 0 57,579,291
2005 15,440,792 1,525,579 3,380,399 36,194,166 192,816 1,078,847 106,776 57,919,375
Note: Future Comprehensive Annual Financial Reports will build the required ten-year history one-year at a time.
Source: City of Tukwila Finance Department
City of Tukwila
Statistical Section
Table 3
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
GENERAL, SPECIAL REVENUE, DEBT SERVICE AND CAPITAL PROJECTS FUNDS
Last Ten Fiscal Years
GENERAL
GOVERNMENT
AND
FISCAL CAPITAL PUBLIC PHYSICAL TRANSPOR- ECONOMIC CULTURE AND DEBT
YEAR OUTLAY SAFETY ENVIRONMENT TATION ENVIRONMENT RECREATION SERVICE
TOTAL
1996 $ 12,958,598 $ 12,543,229 $ 324,545 $ 9,870,068 $ 1,829,597 $ 1,359,302 $ 852,848 $ 39,738,187
1997 5,689,907 13,022,989 273,681 10,425,075 1,886,218 1,523,813 876,487 33,698,170
1998 8,806,974 14,084,467 319,715 6,045,566 2,167,090 1,636,133 718,062 33,778,007
1999 8,148,813 14,208,347 581,748 7,422,785 2,288,920 1,814,778 993,963 35,459,354
2000 11,607,077 15,333,820 1,060,844 6,164,057 2,362,230 1,953,756 1,446,437 39,928,221
2001 8,551,438 16,427,388 805,029 7,004,603 2,736,385 2,128,487 1,666,365 39,319,695
2002 22,954,891 16,711,088 1,228,774 2,202,888 2,974,513 2,457,973 1,643,414 50,173,541
2003 21,529,694 17,532,136 1,509,946 4,779,885 3,429,674 2,985,083 1,791,327 53,557,745
2004 14,039,664 18,393,514 883,914 2,620,038 3,461,092 3,187,113 1,861,974 44,447,309
2005 13,480,866 19,604,151 788,105 1,705,692 3,384,928 3,358,583 1,884,474 44,206,799
Source: City of Tukwila Finance Department
- 108 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL
YEAR
TAXES
Table 4
GENERAL GOVERNMENTAL REVENUES BY SOURCE
GENERAL, SPECIAL REVENUE, DEBT SERVICE,
AND CAPITAL PROJECTS FUNDS
Last Ten Fiscal Years
LICENSES CHARGES FINES INTEREST
AND INTERGOV- FOR AND INCOME
PERMITS ERNMENTAL SERVICES FORFEITURES AND MISC.
Statistical Section
TOTAL
1996 $ 23,059,414 $ 566,666 $ 4,335,962 $ 582,853 $ 206,373 $ 1,668,201 $ 30,419,469
1997 22,400,139 593,765 5,242,355 745,455 236,763 3,798,959 33,017,436
1998 24,007,362 777,903 3,421,798 1,013,912 283,047 2,438,761 31,942,783
1999 27,463,875 926,208 5,226,452 1,158,173 340,671 1,677,626 36,793,005
2000 30,929,517 1,439,052 4,069,706 1,857,182 323,919 2,634,930 41,254,306
2001 28,943,871 921,809 4,215,249 1,232,149 285,000 2,353,815 37,951,893
2002 28,156,041 822,810 16,689,193 1,201,080 338,484 1,349,571 48,557,179
2003 31,986,222 785,823 15,005,227 1,796,946 245,585 1,288,707 51,108,510
2004 34,148,173 808,821 6,306,463 2,919,115 147,137 1,350,011 45,679,720
2005 34,624,875 1,002,683 5,672,810 2,649,678 116,737 1,638,971 45,705,754
Source: City of Tukwila Finance Department
ILA "I v
O 40/11*
174 0
7908
City of Tukwila
Statistical Section
Table 5
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
PERCENT DELINQUENT % OF TOTAL
FISCAL TOTAL CURRENT TAX OF LEVY TAX TOTAL TAX TAX COLLECTIONS
YEAR TAX LEVY COLLECTIONS COLLECTED COLLECTIONS COLLECTIONS TO TAX LEVY
1996 $7,632,364 $7,191,379 94.22% $104,512 $7,295,891 95.59%
1997 7,379,517 7,043,064 95.44% 100,937 7,144,001 96.81%
1998 7,568,112 7,347,855 97.09% 121,283 7,469,138 98.69%
1999 7,993,365 7,745,197 96.90% 155,305 7,900,502 98.84%
2000 8,538,884 8,273,834 96.90% 104,306 8,378,140 98.12%
2001 9,362,284 9,222,917 98.51% 103,419 9,326,336 99.62%
2002 9,843,102 9,380,068 95.30% 107,173 9,487,241 96.38%
2003 10,136,315 9,701,178 95.71 % 152,829 9,854,007 97.21%
2004 10,489,114 10,228,549 97.52% 265,163 10,493,712 100.04%
2005 10,731,724 10,511,488 97.95% 115,922 10,627,410 99.03%
Source: King County Office of Finance
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Statistical Section
Table 6
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
RATIO OF TOTAL
TOTAL ESTIMATED ASSESSED TO
FISCAL PERSONAL PUBLIC ASSESSED ACTUAL TOTAL ESTIMATED
YEAR REAL PROPERTY PROPERTY UTILITIES VALUE VALUE ACTUAL VALUE
1996 $ 1,880,054,740 $ 450,655,213 $ 49,824,047 $ 2,380,534,000 $ 2,380,534,000 100%
1997 1,914,169,506 468,920,180 49,050,958 2,432,140,644 2,432,140,644 100%
1998 1,997,951,558 530,184,641 47,373,878 2,575,510,077 2,575,510,077 100%
1999 2,112,275,730 579,434,372 55,946,225 2,747,656,327 2,747,656,327 100%
2000 2,349,904,622 580,108,305 74,515,846 3,004,528,773 3,004,528,773 100%
2001 2,544,588,267 606,806,225 192,651,250 3,344,045,742 3,344,045,742 100%
2002 2,715,355,120 604,479,409 169,870,128 3,489,704,657 3,489,704,657 100%
2003 2,832,422,720 471,448,140 80,219,849 3,384,090,709 3,384,090,709 100%
2004 2,916,855,190 447,099,099 77,169,236 3,441,123,525 3,441,123,525 100%
2005 3,091,233,279 457,546,448 61,779,040 3,610,558,767 3,610,558,767 100%
Source: King County Department of Assessments
City of Tukwila
Statistical Section
Table 7
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(per $1,000 of Assessed Valuation)
Last Ten Fiscal Years
CITY OF TUKWILA
FISCAL GENERAL SPECIAL
YEAR LEVY LEVY
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
3.10000
3.10000
3.10000
3.10000
3.11256
2.94537
2.91064
3.10754
3.11712
3.03706
0.11043
0.01000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
WASH. *KING PORT OF
TOTAL STATE COUNTY SEATTLE
3.21043 3.49966 2.82953 0.29211
3.11000 3.51138 1.85109 0.26466
3.10000 3.35872 1.77385 0.23898
3.10000 3.30278 1.68951 0.21585
3.11256 3.14502 2.10955 0.19029
2.94537 2.98946 1.97530 0.18956
2.91064 2.89680 1.34948 0.25895
3.10754 2.75678 1.96799 0.25402
3.11712 2.68951 1.91484 0.25321
3.03706 2.49787 1.86293 0.23330
* Includes King County Library District tax.
Source: King County Department of Assessments
EMERGENCY
MEDICAL
SERVICE
TUKWILA GREEN RIVER
SCHOOL FLOOD
DIST. #406 CONTROL
HOSPITAL
DIST. #1
0.24987
0.00000
0.29000
0.27299
0.24624
0.25000
0.24143
0.23717
0.23182
0.21982
5.10456
4.84901
6.80157
5.91717
5.54167
5.11395
4.85812
5.05267
5.04535
5.01637
0.04977
0.05036
0.05325
0.05209
0.04957
0.04665
0.04688
0.04669
0.04658
0.04482
0.15698
0.15934
0.15354
0.11830
0.09873
0.09643
0.09254
0.09200
0.09039
0.59000
TOTAL
15.39291
13.79584
15.76991
14.66869
14.49363
13.60672
12.65484
13.51486
13.38882
13.50217
- 112 -
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Statistical Section
Table 8
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE
AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years
DEBT PAYABLE
GROSS FROM NET RATIO OF NET NET BONDED
FISCAL BONDED LESS DEBT ENTERPRISE BONDED BONDED DEBT TO DEBT PER
YEAR POPULATION ASSESSED VALUE DEBT SERVICE FUNDS REVENUES * DEBT ASSESSED VALUE CAPITA
1996 14,880 $ 2,380,534,000 $ 6,220,000 $ 230,182 $ 0 $ 5,989,818 0.25% $ 403
1997 14,930 2,432,140,644 5,750,000 133,972 0 5,616,028 0.23% 376
1998 14,990 2,575,510,077 5,390,000 1,280 0 5,388,720 0.21% 359
1999 14,840 2,747,656,327 15,170,000 1,614 0 15,168,386 0.55% 1,022
2000 17,181 3,004,528,773 17,226,600 370,112 0 16,856,488 0.56% 981
2001 17,230 3,344,045,742 16,565,000 410,844 0 16,154,156 0.48% 938
2002 17,270 3,489,704,657 15,847,000 389,322 0 15,457,678 0.44% 895
2003 17,270 3,384,090,709 27,168,000 809,012 5,772,500 20,586,488 0.61% 1,192
2004 17,240 3,441,123,525 25,974,000 1,107,362 5,382,500 19,484,138 0.57% 1,130
2005 17,110 3,610,558,767 24,713,000 1,305,239 4,972,500 18,435,261 0.51% 1,077
* These amounts are the general obligation bonds that are being repaid by the Foster Golf Course Fund.
Source State of Washington Office of Financial Management
King County Department of Assessments
City of Tukwila Finance Department
City of Tukwila
Statistical Section
Table 9
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 2005
General Capacity
Special Purpose Capacity
COUNCILMANIC EXCESS LEVY
UTILITY
PURPOSES
PARKS AND TOTAL
OPEN SPACE CAPACITY
December 31, 2005 Assessed Value: $3,610,558,767
2.50% of Assessed Value $
1.50% of Assessed Value
Statutory Debt Limit $
Debt Outstanding $
Less Amount Available in
Debt Service Fund
Net Debt Outstanding $
Remaining Debt Capacity $
0$
54,158,382
54,158,382 $
24,713,000 $
1,305,239
23,407,761 $
30,750,621 $
90,263,969 $ 90,263,969 $ 90,263,969 $ 270,791,907
(54,158,382) 0 0 0
36,105,587 $ 90,263,969 $ 90,263,969 $ 270,791,907
0 $ 0 $ 0 $ 24,713,000
0 0 0 1,305,239
0 $ 0 $ 0 $ 23,407,761
36,105,587 $ 90,263,969 $ 90,263,969 $ 247,384,146
Sources: City of Tukwila Finance Department
King County Department of Assessments
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Table 10
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 2005
JURISDICTION
Direct:
City of Tukwila
Overlapping:
King County
King County Library
NET GENERAL
OBLIGATION DEBT
OUTSTANDING
PERCENTAGE
APPLICABLE TO
TUKWILA
Statistical Section
ESTIMATED AMOUNT
APPLICABLE TO
TUKWILA
Port of Seattle
Tukwila School District #406
Hospital District #1
Total Overlapping Debt:
Total Direct and
Overlapping Debt:
$ 23,407,761
900,699,000
85,891,157
380,225,000
44,854,942
44,710,000
1,456,380,099
$ 1,479,787,860
Sources: King County Office of Finance
King County Office of Assessments
100.00% $ 23,407,761
1.39%
1.25%
1.39%
88.24%
4.68%
12,519,716
1,073,639
5,285,128
39,580,001
2,092,428
60,550,912
$ 83,958,673
City of Tukwila
Statistical Section
Table 11
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT
TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES
Last Ten Fiscal Years
RATIO OF
DEBT SERVICE
FISCAL TOTAL DEBT TOTAL GENERAL TO GENERAL
YEAR PRINCIPAL INTEREST SERVICE EXPENDITURES * EXPENDITURES
1996 $ 445,000 $ 351,932 $ 796,932 $ 39,738,187 2.01%
1997 470,000 330,240 800,240 33,698,170 2.37%
1998 360,000 306,868 666,868 33,778,007 1.97%
1999 220,000 292,995 512,995 35,459,354 1.45%
2000 495,000 851,965 1,346,965 39,928,221 3.37%
2001 661,600 934,342 1,595,942 39,319,695 4.06%
2002 718,000 881,531 1,599,531 50,173,541 3.19%
2003 754,000 897,214 1,651,214 53,557,745 3.08%
2004 804,000 1,041,437 1,845,437 44,447,309 4.15%
2005 851,000 1,033,474 1,884,474 44,206,799 4.26%
* Includes General, Special Revenue, Debt Service and Capital Projects Funds.
Source: City of Tukwila Finance Department
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Statistical Section
Table 12
REVENUE BOND COVERAGE - WATER AND SEWER BONDS
Last Ten Fiscal Years
NET REVENUE
AVAILABLE AVERAGE ANNUAL
FISCAL GROSS OPERATING FOR DEBT DEBT SERVICE REQUIREMENTS TIMES
YEAR REVENUE* EXPENSES ** SERVICE PRINCIPAL INTEREST TOTAL COVERAGE
1996 $ 4,902,528 $ 3,443,204 $ 1,459,324 $ 378,200 $ 197,329 $ 575,529 2.54
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
* Includes operating and non - operating revenue.
** Includes operating expenses and non - operating expenses exclusive of depreciation, amortization and interest charges.
Source: City of Tukwila Finance Department
�J,. -i�a: IV
ti
e ";
Cs - : a
1908
City of Tukwila
Statistical Section
Table 13
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
NUMBER OF NUMBER OF TUKWILA
FISCAL SINGLE - FAMILY MULTI - FAMILY SCHOOL DISTRICT
YEAR POPULATION HOMES UNITS ENROLLMENT
1996 14,880 3,202 4,165 2,370
1997 14,930 3,230 4,196 2,458
1998 14,990 3,262 4,196 2,408
1999 14,840 3,303 4,196 2,550
2000 17,181 3,364 4,196 2,562
2001 17,230 3,371 4,196 2,410
2002 17,270 3,433 4,196 2,474
2003 17,270 3,468 4,196 2,568
2004 17,240 3,732 4,107 2,628
2005 17,110 3,791 4,107 2,650
Sources: City of Tukwila Planning Division, Department of Community Development
State of Washington Office of Financial Management
Tukwila School District #406
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL
YEAR
Commercial
Construction
NO. OF DOLLAR
PERMITS VALUE
Table 14
CONSTRUCTION AND PROPERTY VALUE
Last Ten Fiscal Years
Residential
Construction
NO. OF DOLLAR
PERMITS VALUE
All Other
Construction
NO. OF DOLLAR
PERMITS VALUE
TOTAL
PERMITS
CONSTRUCTION
VALUE
Statistical Section
TOTAL ASSESSED
PROPERTY
VALUE
1996
280
$ 24,299,261
66
$ 6,598,450
222
$ 14,429,428
568
$ 45,327,139
$ 2,380,534,000
1997
291
19,659,200
82
7,910,374
220
4,690,338
593
32,259,912
2,432,140,644
1998
312
68,034,541
72
5,629,626
283
9,929,099
667
83,593,266
2,575,510,077
1999
498
65,725,731
153
8,234,895
49
12,586,351
700
86,546,977
2,747,656,327
2000
277
204,463,183
104
12,534,350
344
28,153,887
725
245,151,420
3,004,528,773
2001
258
69,598,425
112
12,169,759
263
11,373,404
633
93,141,588
3,344,045,742
2002
211
39,169,974
147
14,221,232
281
10,255,462
639
63,646,668
3,489,704,657
2003
197
34,438,414
101
10,528,707
238
10,808,417
536
55,775,538
3,384,090,709
2004
226
23,976,098
106
10,510,658
214
6,562,123
546
41,048,879
3,441,123,525
2005
220
24,034,446
128
10,857,371
275
34,003,861
623
68,895,678
3,610,558,767
Sources: King County Department of Assessments - Construction /Assessed Property Value
City of Tukwila Building Department - Permits /Dollar Value
- 119 -
NAME
City of Tukwila
Statistical Section
Table 15
PRINCIPAL PROPERTY TAXPAYERS
December 31, 2005
TYPE OF BUSINESS
2005
ASSESSED
VALUATION
The Boeing Company
Westfield Corporation, Inc.
AMB Institutional Alliance
La Pianta Limited Partnership
Boeing Employee's Credit Union
Eproperty Tax Inc.
Group Health Cooperative
Heitman
KIR Tukwila LLC /KIMCO
Federated Stores
Puget Sound Energy
Sea -Tuk Warehouse LLC
CHA Southcenter LLC
Koar -Sea Tac Partners LP (Embassy Suites)
Wig Properties LLC (J.C. Penney)
Merrill Cr. Holdings LLC (Kenworth Motors)
Cigna Life Insurance Company
Jorgensen Forge Corp
Lowe's Hardware and Garden
Sterling Realty Corporation
Qwest
Harnish Group Inc.
Hill Investment Company
TOTALS
Airplane company
Department stores
Commercial properties
Commercial properties
Credit union
Investment property
Health care
Commercial properties
Commercial properties
Department stores
Electric /Gas utility
Food distribution
Lodging
Lodging
Department store
Truck manufacturer
Insurance company
Steel manufacturer
Home improvement
Commercial properties
Telephone utility
Truck equipment
Commercial properties
* In 2005 the total assessed property value in the City of Tukwila was $3,610,558,767
Source: King County Department of Assessments
$ 406,629,442
127,027,984
72,288,400
68,037,854
55,835,408
50,578,300
47,327,334
47,209,629
35,894,700
24,784,700
21,718,812
21,378,700
17,030,718
16,728,035
15,160,200
15,018,800
14,932,400
14,436,596
14,330,067
11,717,000
10,867,469
10,286,052
6,318,400
$ 1,125,537,000
PERCENT
OF TOTAL
ASSESSED
VALUE*
11.82%
3.69%
2.10%
1.98%
1.62%
1.47%
1.38%
1.37%
1.04%
0.72%
0.63%
0.62%
0.49%
0.49%
0.44%
0.44%
0.43%
0.42%
0.42%
0.34%
0.32%
0.30%
0.18%
32.71%
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Statistical Section
Table 16
2005 SALARY RANGES OF PRINCIPAL OFFICIALS
POSITION MINIMUM MAXIMUM
Mayor $ 81,600 $ 81,600
Councilmembers (each) 12,600 12,600
City Administrator 97,296 126,528
Administrative Services Director 84,144 111,744
Dept. of Comm Dev Director 84,144 111,744
Finance Director 84,144 109,404
Parks & Recreation Director 84,144 109,404
Fire Chief 86,988 113,124
Police Chief 86,988 113,124
Public Works Director 86,988 113,124
Source: City of Tukwila Finance Department
**i`'s .
°�►�'' City of Tukwila
LLI -1
�; •... : .r . Statistical Section
NAME OF COMPANY /EMPLOYER
Table 17
MAJOR EMPLOYERS
2005
PRODUCT OR BUSINESS
2005
FULL- & PART -TIME
EMPLOYMENT
The Boeing Company
Group Health Cooperative
Costco Wholesale & Optical
King County Metro
J.C. Penney Company
Nordstrom, Inc.
Boeing Employee's Credit Union
Bon - Macy's
Red Dot Corporation
University of Phoenix
City of Tukwila
Xerox Corporation
Highline Community Hospital
United Parcel Service
Hartung Glass Industries
Doubletree Guest Suites
Yellow Transportation
Home Depot
American Medical Response
Federated Logistics Services
Sears, Roebuck and Company
Associated Grocers Inc.
Homeland Security
Free & Clear, Inc.
Airplane company
Health care
Cash /carry warehouse & optical products
Transit operating base
Department store
Department store
Credit union
Department store
Heater /air conditioning equipment
University
Government
Xerox equipment
Hospital
Parcel delivery service
Manufacturing
Lodging
Trucking/Motor /Freight
Hardware /home improvement store
Medical transportation
Distribution
Department store
Perishable merchandise
Federal agency
Smoking cessation services
Sub - total - Major Employers
All Other Employment
TOTAL EMPLOYMENT
Source: City of Tukwila City Clerk's Office - business licenses
9,638
1,400
589
559
409
398
384
375
357
324
323
301
300
288
228
222
215
210
210
207
205
204
200
200
17,746
24.134
41.880
2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Statistical Section
Table 18
MISCELLANEOUS STATISTICS AND INFORMATION
December 31, 2005
Date of Incorporation• June 29, 1908
Form of Government. Mayor /Council
Type of Government- Noncharter, Optional Code City
Area 8.6 square miles
Population. 17,110
Number of City Employees- 323 Salaried City Personnel
Election and Voter Registration. 18 precincts
6,698 registered voters
Fire Protection -
Number of Fire Personnel. 66
Number of Stations. 4
Number of Responses- 4,710
Total Fire Loss. $1,414,741
Police Protection -
Number of Police Personnel. 84
Number of Calls for Service- 32,922
Parks and Recreation -
Total Acreage. 225
Street-
Miles. 79
Signalized Intersections• 61
Utility Services -
Water
Total Customers- 2,164
Total Gallons/Water. 886,000,000
Sanitary Sewer
Total Customers. 1,710
Surface Water
Total Customers. 5,100
Miles Storm Sewers. 200
Licenses -
Business Licenses- 2,286
Amusement Licenses- 19
Libraries -
Number of Libraries- 3
Total Circulation. 215,115
Source: City of Tukwila Finance Department
City of Tukwila
Statistical Section
- 124 -