HomeMy WebLinkAboutFS 2011-10-04 COMPLETE AGENDA PACKETCity of Tukwila
Finance and Safety
Committee
O Kathy Hougardy, Chair
O Joan Hernandez
O Dennis Robertson
AGENDA
TUESDAY, OCTOBER 4, 2011
CONFERENCE ROOM #3, 5:00 PM
Distribution:
K. Hougardy
J. Hernandez
D. Robertson
A. Ekberg
Mayor Haggerton
D. Speck
P. McCarthy
C. O'Flaherty
S. Kerslake
K. Matej
Item
Recommended Action
Page
1. PRESENTATION(S)
2. BUSINESS AGENDA
a. An Interlocal Agreement with the Tukwila Metropolitan
a. Forward to 10 /10 C.O.W.
Pg.1
Park District authorizing a loan from the General Fund.
and 10/17 Regular Mtg.
Peggy McCarthy, Interim Finance Director
b. A resolution authorizing the cancellation of past due
b. Forward to 10 /10 C.O.W.
Pg.11
accounts receivable and returned check write -offs.
and 10/17 Regular Mtg.
Peggy McCarthy, Interim Finance Director
c. Miscellaneous revenue report.
c. Information only
Pg.17
Peggy McCarthy, Interim Finance Director
3. ANNOUNCEMENTS
4. MISCELLANEOUS
Next Scheduled Meeting: Tuesday, October 18, 2011
6 The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206 - 433 -1800 or (tukclerk @tukwilawa.gov) for assistance.
TO:
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance & Safety Committee
FROM: Peggy McCarthy, Interim Finance Director
DATE: September 28, 2011
SUBJECT: Interlocal Agreement with Tukwila Metropolitan Park District
ISSUE
Pursuant to Resolution 1746 passed by the Council on September 12, 2011, an Interlocal
Agreement between the City of Tukwila and the Tukwila Metropolitan Park District has been
drafted to document the terms and conditions of a loan from the City of Tukwila General Fund to
the Park District to fund Park District operations. The Agreement is presented for Council's
review and approval and will be presented to the Park District Board of Commissioners for their
review and approval on October 10, 2011.
BACKGROUND
The general taxes levied by the Park District will not be collected and available to fund Park
District operations until May 1, 2013 making a loan necessary to fund Park District operations
during this interim period.
DISCUSSION
As documented in the agreement, the City agrees to lend funds from its General Fund to the Park
District Fund, not to exceed $1,100,000, at an interest rate of two percent per year, according to
the following schedule:
a. October 15, 2011 - $375,000
b. April 15, 2012 - $375,000
c. October 15, 2012 - $350,000
Should the Metropolitan Park District find that it is not in need of some or all of the principal amounts
identified above, the Park District will notify the City prior to the scheduled loan disbursement date.
The Park District agrees to assume and accept the financial obligation to repay the loan within a
ten -year period making semi - annual payments to the City beginning in 2013.
RECOMMENDATION
The Council is being asked to approve the City of Tukwila - Tukwila Metropoliltan Park District
Interlocal Agreement for Loan and Repayment and consider this item at the October 10, 2011
Committee of the Whole meeting and the subsequent October 17, 2011 Regular Meeting.
ATTACHMENTS
• Draft: City of Tukwila — Tukwila Metropolitan Park District Interlocal Agreement For Loan
and Repayment
• Resolution 1746
2
CITY OF TUKWILA — TUKWILA METROPOLITAN PARK DISTRICT
INTERLOCAL AGREEMENT FOR
LOAN AND REPAYMENT
THIS INTERLOCAL AGREEMENT made and entered into, pursuant to the
Interlocal Cooperation Act, Chapter 39.34 of the Revised Code of Washington, on the
day of , 2011, by and between the CITY OF TUKWILA, a
municipal corporation of the State of Washington (hereinafter referred to as "City "), and the
TUKWILA METROPOLITAN PARK DISTRICT, a municipal corporation of the State of
Washington (hereinafter referred to as "Park District ").
WITNESSETH:
WHEREAS, by Resolution No. 1738, the City Council of the City of Tukwila,
Washington asked the voters to create a metropolitan park district whose boundaries
would be coextensive with the boundaries of the City of Tukwila, including the authority
to levy a general tax on property not to exceed 15 cents per thousand dollars of
assessed valuation each year as statutorily provided; and
WHEREAS, on August 16, 2011, the voters of Tukwila approved the formation of
a metropolitan park district as required and now known as the Tukwila Metropolitan
Park District ( "Park District "); and
WHEREAS, the general taxes levied by the Park District pursuant to RCW
35.61.210 will not be collected and available to fund Park District operations until May 1,
2013, and a loan from the City of Tukwila is needed during the interim period to fund
Park District operations and shall be repaid by the Park District using its general tax
revenues once those become available; and
WHEREAS, by Resolution No. 1746, the City has declared its intent to enter into
an interlocal agreement with the Park District to evidence the City's commitment to loan
funds to the Park District as interim financing until the Park District's general tax
revenues become available; and
WHEREAS, in consideration for the City's commitment to loan funds as interim
financing, upon the terms and conditions set forth herein, the Park District has declared
its intent to enter into an interlocal agreement with the City, by Resolution No. 5, to
repay the City pursuant to the financial covenants set forth herein;
NOW THEREFORE in consideration of the mutual covenants hereinafter
contained, the parties hereto covenant and agree as follows:
INTERLOCAL AGREEMENT
Page 1 of 6
3
1. LOAN AMOUNT AND DISBURSEMENT
The City agrees to lend sufficient funds from its General Fund to the Tukwila
Metropolitan Park District Fund and agrees to disburse funds in a total principal
sum not to exceed $1,100,000.00 (the "Loan "), which principal is subject to interest
at the rate of two percent per year, according to the following schedule:
a. October 15, 2011 - $375,000.00
b. April 15, 2012 - $375,000.00
c. October 15, 2012 - $350,000.00
Should the Metropolitan Park District find that it is not in need of some or all of the
principal amounts identified above, the Park District will notify the City not less than
15 (fifteen) days prior to the scheduled loan disbursement date.
2. LOAN REPAYMENT TERMS AND SCHEDULE
The Park District agrees to assume and accept the financial obligation to repay
the Loan in the maximum amount of $1,100,000.00, plus interest thereon at the
rate of two percent per year, within a ten -year period. The Park District obligation
hereunder constitutes a non -voted general obligation of the Park District to which
its full faith, credit and resources are pledged.
This Loan will be repaid in semi - annual payments to the City beginning in 2013.
The first payment will be due May 15, 2013 and will be due every November 15th
and May 15, thereafter. The City will invoice the Park District for the amount
owing for the relevant time period. Should the Park District desire to pre -pay any
of the loan amount, pre - payment shall include accrued interest, through the date
of payment.
3. EVENTS OF DEFAULT AND REMEDIES
3.1 Events of Default. Each of the following shall be a "Loan Default ":
a. Monetary Defaults. Any failure by the Park District to make any required
monetary payments when due to the City pursuant to Paragraph 2 of this
Agreement. If an event which would constitute a Monetary Default shall
occur, the City shall provide prompt telephone notice confirmed in writing
(which may be by facsimile or electronic transmission) to the Park District
and demand a cure thereof (provided, that failure by the City to send such
written notice shall not constitute waiver of or prevent the occurrence of a
Loan Default), and if such event is not cured within fifteen days of the
scheduled payment date, then such event shall constitute a Loan Default
and the City may, in its sole discretion, proceed with its remedies under
Paragraph 3.2 of this Agreement.
INTERLOCAL AGREEMENT
Page 2 of 6
4
b. Nonmonetary Defaults. Any failure on the part of the Park District to
perform or observe the duties, provisions or obligations required of it
pursuant to this Agreement, other than as set forth in Paragraph 3.1(a)
above, if such failure shall have continued for a period of 60 days after
written notice thereof has been delivered to the Park District by the City.
3.2 Remedies. Upon occurrence of any Loan Default under this Agreement, the
City may bring any legal action or proceeding against the Park District to
protect and enforce its rights in equity or at law, either in mandamus or for the
specific performance of any covenant or agreement contained in this
Agreement, or for the enforcement of any other appropriate legal or equitable
remedy, as the City, being advised by counsel, may deem most effectual to
protect and enforce any of its concurrent or reserved rights or interests
hereunder with respect to: (1) the payment of principal, interest, fees or
amounts due; (2) indemnifications and reimbursements due to the City by the
Park District; and (3) receipt of reports and notices.
4. RECORDS INSPECTION AND AUDIT
All funds advanced and repaid shall be subject to adjustment for any amounts
found upon audit or otherwise to have been improperly advanced or reimbursed,
and all records and books of accounts pertaining to the Loan provided under this
Agreement shall be subject to inspection and audit by either party for a period of
up to three (3) years from the final payment by the Park District for
reimbursement of the Loan provided by the City.
5. ADMINISTRATION OF AGREEMENT
This Agreement shall be administered by Peggy McCarthy, Interim Finance
Director or designee on behalf of City, and by Kimberly Matej, Executive Director,
or designee on behalf of the Park District. Any written notices required by the
terms of this Agreement shall be served on or mailed to the following addresses:
CITY OF TUKWILA
Peggy McCarthy
Interim Finance Director
Tukwila, WA 98188
Phone: 206 - 433 -1839
PARK DISTRICT
Kimberly Matej
Executive Director
Tukwila, WA 98188
Phone: 206 - 433 -1834
INTERLOCAL AGREEMENT
Page 3of6
5
6. NOTICES
All notices or communications permitted or required to be given under this
Agreement shall be in writing and shall be deemed to have been duly given if
delivered in person or deposited in the United States mail, postage prepaid, for
mailing by certified mail, return receipt requested, and addressed, if to a party of
this Agreement, to the address for the party set forth above.
Either party may change its address by giving notice in writing, stating its new
address to the other party, pursuant to the procedure set forth above.
7. INDEMNIFICATION OF THE CITY
The Park District shall indemnify and hold City and its agents, employees, and /or
officers, harmless from and shall process and defend at its own expense any and
all claims, demands, suits, at law or equity, actions, penalties, losses, damages, or
costs, of whatsoever kind or nature, brought against City arising out of, in
connection with, or incident to the making of the Loan that is the subject of this
Agreement and /or Park District's performance or failure to perform any aspect of
this Agreement; provided, however, that if such claims are caused by or result from
the concurrent negligence of City, its agents, employees, and /or officers, this
indemnity provision shall be valid and enforceable only to the extent of the
negligence of Park District; and provided further, that nothing herein shall require
Park District to hold harmless or defend City, its agents, employees and /or officers
from any claims arising from the sole negligence of City, its agents, employees,
and /or officers. No liability shall attach to City by reason of entering into this
Agreement except as expressly provided herein.
8. WAIVER OF SUBROGATION
City and Park District hereby mutually release each other from liability and waive all
right of recovery against each other for any loss caused by fire or other perils which
can be insured against under fire insurance contracts including any extended
coverage endorsements thereto which are customarily available from time to time in
the State of Washington, provided, that this paragraph shall be inapplicable to the
extent that it would have the effect of invalidating any insurance coverage of City or
Park District.
9. COMPLIANCE WITH REGULATIONS AND LAWS
The parties shall comply with all applicable rules and regulations pertaining to them
in connection with the matters covered herein.
INTERLOCAL AGREEMENT
Page 4 of 6
6
10. ASSIGNMENT
The parties shall not assign this Agreement or any interest, obligation or duty
therein without the express written consent of the other party.
11. ATTORNEYS' FEES
If a Loan Default occurs and if the City or Park District should employ attorneys or
incur expenses for the enforcement of any obligation or agreement of the City or
Park District contained herein, the non - prevailing party on demand will pay to the
prevailing party the reasonable fees of such attorneys of the prevailing party and
the reasonable costs so incurred, including, without limitation, reasonable fees and
costs of court appeals.
12. MISCELLANEOUS
a. All of the covenants, conditions and agreements in this Agreement shall
extend to and bind the legal successors and assigns of the parties hereto.
b. This Agreement shall be deemed to be made and construed in accordance
with the laws of the State of Washington. Jurisdiction and venue for any action
arising out of this Agreement shall be in King County, Washington.
c. The captions in this Agreement are for convenience only and do not in any
way limit or amplify the provisions of this Agreement.
d. Unless otherwise specifically provided herein, no separate legal entity is
created hereby, as each of the parties is contracting in its capacity as a municipal
corporation of the State of Washington. The identity of the parties hereto is as set
forth hereinabove.
e. The performances of the duties of the parties provided hereby shall be done
in accordance with standard operating procedures and customary practices of the
parties.
f. No provision of this Agreement shall relieve either party of its public agency
obligations and or responsibilities imposed by law.
g. If any term or provision of this Agreement or the application thereof to any
person or circumstance shall, to any extent, be held to be invalid or unenforceable
by a final decision of any court having jurisdiction on the matter, the remainder of
this Agreement or the application of such term or provision to persons or
circumstances other than those as to which it is held invalid or unenforceable shall
INTERLOCAL AGREEMENT
Page 5 of 6
7
not be affected thereby and shall continue in full force and effect, unless such court
determines that such invalidity or unenforceability materially interferes with or
defeats the purposes hereof, at which time either party shall have the right to
terminate the Agreement.
h. This Agreement constitutes the entire agreement between the parties. There
are no terms, obligations, covenants or conditions other than those contained
herein. No modifications or amendments of this Agreement shall be valid or
effective unless evidenced by an agreement in writing signed by both parties.
i. Copies of this Agreement shall be filed with the King County Auditor's Office
and the respective Clerks of the parties hereto.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day
and year first above written.
CITY OF TUKWILA TUKWILA METROPOLITAN PARK
DISTRICT
Jim Haggerton,
Mayor
Allan Ekberg
President of the Board of Commissioners
Attest: Attest:
Christy O'Flaherty, CMC Verna Seal
City Clerk Clerk of the Board
Approved as to form: Approved as to form:
Shelley M. Kerslake, Lisa M. Marshall,
City Attorney Commission Attorney
INTERLOCAL AGREEMENT
Page 6 of 6
8
City of Tukwila
Washington
Resolution No. 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AUTHORIZING A LOAN FROM THE
CITY OF TUKWILA GENERAL FUND TO THE TUKWILA
METROPOLITAN PARK DISTRICT FUND, IN AN AMOUNT
NOT TO EXCEED $1.1 MILLION, TO FUND PARK DISTRICT
OPERATIONS PENDING COLLECTION OF GENERAL TAXES.
WHEREAS, by Resolution No. 1738, the City Council of the City of Tukwila,
Washington, asked the voters to create a Metropolitan Park District whose boundaries
would be coextensive with the boundaries of the City of Tukwila, including the authority to
levy a general tax on property not to exceed 15 cents per thousand dollars of assessed
valuation each year as statutorily provided; and
WHEREAS, on August 16, 2011, the voters of Tukwila approved the formation of
a Metropolitan Park District as required and now known as the Tukwila Metropolitan
Park District ( "Park District "); and
WHEREAS, the general taxes levied by the Park District pursuant to RCW
35.61.210 will not be collected and available to fund Park District operations until May 1,
2013, and a loan from the City of Tukwila is needed during the interim period to fund
Park District operations;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Loan from City General Fund to Park District Fund Authorized.
The City of Tukwila hereby authorizes a loan from its General Fund to the Tukwila
Metropolitan Park District Fund in the principal sum not to exceed the lesser of
$1,100,000.00 plus interest thereon, or the Park District's indebtedness limit pursuant to
RCW 35.61.100.
Section 2. Loan Repayment Terms — Interlocal Agreement Authorized. City
staff is hereby directed to prepare an interlocal agreement setting forth the terms and
conditions of the loan authorized in Section 1. Said agreement shall specify, at
W. \Word Processing\Resolutions \Loan authorized to Metropolitan Park District 9 -7 -11
K Sand:bjs
Page 1 of 2
9
minimum, a repayment term of 10 years and interest due at the rate of 2% compounded
annually.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Special Meeting thereof this Ic9-4/-"" day of September, 2011.
ATTEST /AUTHENTICATED:
"rho ctsk
Melissa Hart, CMC, Acting City Clerk
APPROVED AS TO FORM BY:
Shelley M. Kerslake, City Attorney
Allan Ekberg, Council Presi
Filed with the City Clerk: - 7 " l 1
Passed by the City Council q- I -- 11
Resolution Number: 1140
W: \Word Processing \Resolutions \Loan authorized to Metropolitan Park District 9 -7 -11
K Sand:bjs
10
Page 2 of 2
W
z City of Tukwila
TO:
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance and Safety Committee
FROM: Peggy McCarthy, Interim Finance Director
DATE: September 30, 2011
SUBJECT: Cancellation of Accounts Receivable
ISSUE
Each year a resolution comes before the Council for the cancellation of uncollectible accounts
receivable. For 2011, these items include: False Alarms equaling $675.00, Miscellaneous
Billings equaling $92,770.37 and NSF Checks equaling $218.00, in the total amount of
$93,663.37. The items listed have been through the City's collection program or are party to
bankruptcy and have not been successfully resolved.
BACKGROUND
The process for tracking accounts receivable is quite thorough. The steps below are followed
prior to the attached write -off resolution:
• Invoice is sent to recipient by Finance Department payable in 30 days.
• Second notice is then sent specifying due date before receivable is forwarded to collection
agency.
• Collection agency sends a series of three letters for the original amount due, with the final
letter advising that legal action will be taken if payment is not made. If there is no response
from debtor after the letter series, the debt is then reported to the National Credit Bureaus.
• Collection agency then pursues legal action after the debtor is given a final opportunity to
dispute the claim. This includes attaching checking accounts, garnishments, lawsuits and
other legal methods.
DISCUSSION
The proposed miscellaneous billings write -offs are significantly higher than prior years. Of the
total listed, $75,595.31 is due to the following: $12,158.54 from hit and runs where the driver is
unknown, $45,438.57 is attributable to accidents causing damage to City property where the
driver was uninsured, and $17,998.20 is the City's portion after our deductible or other
insurance payments. The items on the proposed resolution reflect those that have been
through the process referenced above, and receivables are still due with the likelihood of
collection being very low. We do collect amounts after write -offs, but very seldom.
RECOMMENDATION
The Council is being asked to consider this item at the October 10, 2011 Committee of the
Whole meeting and subsequent October 17, 2011 Regular meeting.
ATTACHMENTS
Draft Resolution, with Attachment A
11
12
DRAFT
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ORDERING THE CANCELLATION
OF PAST -DUE ACCOUNTS RECEIVABLE AND RETURNED
CHECK WRITE -OFFS.
WHEREAS, certain receivables and checks have been deemed uncollectible after
efforts by both the City and a collection agency have been unsuccessful; and
WHEREAS, the City will continue to pursue these receivables when practical;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Miscellaneous Accounts Receivable and Returned Checks. The total of
$93,663.37 is deemed uncollectible. See Attachment A.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2011.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk Allan Ekberg, Council President
APPROVED AS TO FORM BY:
Shelley M. Kerslake, City Attorney
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Attachment A — Past -Due Accounts Receivable and Returned Check Write -offs
as of September 30, 2011
W: \Word Processing \Resolutions \Past Due Accts Recv & Write -offs 9 -28 -11
LA:bjs
Page 1 of 1
13
14
Cr
ATTACHMENT A as of 09/30/2011
MISCELLANEOUS
.......................
........ ...............
03/27/09
06/06/09
12/31/08
06/24/09
07/21/09
07/21/09
12/08/09
09/16/09
11/01/10
12/04/09
09/23/10
09/24/09
06/14/10
11/25/09
12/07/10
03/10/09
09/12/08
03/27/09
04/23/09
06/16/10
08/13/10
12/31/08
05/19/09
08/01/08
12/31/08
03/24/11
08/13/10
12/31/08
02/26/10
12/07/09
03/27/09
12/07/09
12/07/09
12/31/08
03/25/09
03/27/09
11/24/09
11/24/09
11/25/09
03/18/10
09/16/09
10/15/09
02/26/10
03/19/09
12/31/08
05/06/09
03/03/09
Allied Group
Allied Group
Conlan Anderson
Banwer Transfer
Banwer Transfer
Banwer Transfer
Billy Baroo's
Blue Nile Studio & Coffee Shop
Breadboard Cafe
Eliduvina Chavez
City of Tukwila
Francis Dawood
DeShawn Williams
Emerald Green
Family Trust Investments
Far Fetched Import Furniture
Furniture City
Furniture City
Furniture City
Furniture City
Furniture City
Gamestop
Christopher Hunter
I Floor.Com
Info Only- Hit and Run
Info Only- Hit and Run
Jack in the Box -13050 IU
Nicole Jones
Kimco Realty Corp
Thomas P. Leae
Medina Restaurant
Landon Nguyen
Landon Nguyen
Pacific 76
Pacific 76
Quorum Real Estate
Reed Trucking & Excavating
Reed Trucking & Excavating
RocheII Apartments
Sahel Coffee & Halal Meat
Seen on Screen TV LLC
Seen on Screen TV LLC
Seen on Screen TV LLC
Simply Thai -375 Strander
Rithavy So
Trudy's Tavern
US Postal Service
General RF -00325 $ 60.00
General RF00372 85.00
General MB -00325 1,118.51
General RF -00391 60.00
General RF -00397 85.00
General RF -00400 110.00
Golf MB -00484 334.09
General RF -00437 60.00
General RF -00582 60.00
General MB -00452 6,887.95
General MB -00677 7,490.83
General MB -00429 2,931.82
General MB -00629 5,844.97
General RF -00466 60.00
General RF -00623 60.00
General RF -00300 60.00
General RF -00265 60.00
General RF -00326 60.00
General RF -00351 85.00
General RF -00524 60.00
General RT -00034 80.00
General RF -00269 60.00
General MB -00353 3,805.92
General RF -00247 60.00
General MB -00327 8,974.82
General MB -00769 3,183.72
General RF -00551 24.00
General MB -00323 4,094.13
General RF -00485 60.00
General MB -00462 1,682.33
General RF -00319 60.00
General MB -00466 961.44
Water MB -00466 1,406.67
General RF -00276 85.00
General RF -00314 60.00
General RF -00323 60.00
General MB -00445 5,940.00
General MB -00447 4,260.00
General RF -00463 60.00
General RF -00503 60.00
General RF -00427 60.00
General RF -00456 85.00
General RF -00476 135.00
General RF -00307 60.00
General MB -00330 4,139.27
General RF -00370 5.00
General RF -00295 60.00
To Evergreen Prof Recoveries 09/30/10
To Evergreen Prof Recoveries 09/30/10
To Evergreen Prof Recoveries 09 /13 /10- graffiti
Business vacated w /out notice -To EPR 09/03/10
Business vacated w /out notice -To EPR 09/03/10
Business vacated w /out notice -To EPR 09/03/10
Void per Finance Director -Aug 2009 late fees & conc adjustment
Business closed 5/18/11- To EPR 09/30/10
Business closed -To EPR 09/23/11
Unable to locate insurance - streetlight pole -To EPR- 09/03/10
damaged brickwork -amt after pymt from Evergreen Adjustment Svces
Insurance invalid - streetlight pole -to EPR 09/30/10
Insurance unknown- Jersey barrier damage -To EPR- 09/30/10
Business closed -To EPR 10/27/10
Bankruptcy 08/29/11
Business closed -To EPR 09/30/11
Business closed -To EPR 09/27/11
Business closed -To EPR 09/27/11
Business closed -To EPR 09/27/11
Business closed -To EPR 09/27/11
Business closed -To EPR 09/27/11
Business closed - To EPR 09/30/10
No insurance -DUI- Tree and shrub damage -To EPR 09/03/10
Bankruptcy 12/04/08
Streetlight pole -144th and TIB
Guardrail -4200 block Airport Way S
Amount due after pymt by EPR
No insurance - streetlight pole -To EPR 05/05/10
No insurance - DUI -To EPR 09/03/10
Stolen vehicle -no insurance - guardrail -To EPR 5/6/10
Business closed - To EPR 09/30/10
No Insurance -fire hydrant -To EPR 05/06/10
Bill total is $2,368.08
Business closed - To EPR 09/10/10
Business closed - To EPR 09/10/10
To EPR 09/07/10
Void per Finance Director & City Attorney- traffic control
Void per Finance Director & City Attorney- traffic control
Business closed - To EPR 10/27/10
Business closed 5/17/11 -To EPR 1/14/11
Business closed -To EPR 9/30/10
Business closed -To EPR 9/30/10
Business closed -To EPR 9/30/10
Business closed -To EPR 09/30/10
Amt after insur pymt - streetlight pole -To EPR 06/06/10
Amount due after pymt by EPR
In dispute
Page 1
Page 2
ATTACHMENT A as of 09/30/2011
08/27/10
Utility Construction Corp
General
MB -00672
1,562.00
Business closed- amount due after insurance payment- damage to wires
12/11/08
Lauti Vaita
Water
MB -00260
9,059.67
Unable to locate -no insurance -fire hydrants -To EPR 09/13/10
12/07/09
Ricardo Vasquez
General
MB -00463
3,361.46
Insurance invalid - streetlight pole- To EPR 05/05/10
02/26/10
Villa Nelle Apartments
General
RF -00480
60.00
Business closed -To EPR 9/30/10
06/15/11
WA Cities Insurance Authority
General
MB -00815
8,945.37
signal cabinet at APW & Minkler- amt due after insurance pymt
06/10/09
Wetzel's Pretzels
General
RF -00380
60.00
Business closed -To EPR 9/30/10
04/03/09
Daniel Wolf
Water
MB -00341
4,626.40
Insurance unknown -To EPR 09/23/10
........... ...
Miscellaneous Billing Total
.
$ 92,770.37
FALSE ALARMS:;:
04/21/10
Abu Bakr Islamic Center of WA
General
PF -01379
$ 25.00
To Evergreen Prof. Recoveries 09/23/10
11/13/08
Axia Financial
General
PF -00839
25.00
Business closed in 2009
08/04/09
Thomas Dever
General
PF -01116
25.00
To Evergreen Prof. Recoveries 09/30/10
12/30/09
Thomas Dever
General
PF -01257
25.00
To Evergreen Prof. Recoveries 09/30/10
12/30/09
Thomas Dever
General
PF -01258
25.00
To Evergreen Prof. Recoveries 09/30/10
09/24/09
East African Bazaar
General
PF -01165
25.00
Business closed -To EPR 09/30/10
07/28/09
EQPT Store
General
PF -01074
25.00
Business closed -To EPR 09/13/10
09/11/08
Go Wireless
General
PF -00759
25.00
Business closed -To EPR 09/30/10
08/24/10
Habitat for Humanity
General
PF -01464
25.00
Business closed -To EPR - 10/27/10
08/24/10
Janie Hendrix
General
PF -01467
25.00
In Dispute
08/24/10
Janie Hendrix
General
PF -01468
25.00
In Dispute
05/21/09
Innovation General Tool /Supply
General
PF -01021
10.00
Amount due after pymt by EPR
09/11/08
Integra Telecom
General
PF -00768
10.00
Amount due after pymt by EPR
09/05/08
Interstate Protection Svces
General
PF -00623
25.00
Business closed -To EPR 09/30/10
09/05/08
Interstate Protection Svces
General
PF -00624
25.00
Business closed -To EPR 09/30/10
09/05/08
I Sold of WA
General
PF -00629
25.00
Business closed -To EPR 09/30/10
09/05/08
I Sold of WA
General
PF -00630
25.00
Business closed -To EPR 09/30/10
05/11/10
King Co Housing
General
PF -01391
10.00
Amount due after pymt by EPR
08/24/10
KJC Salon and Spa
General
PF -01470
25.00
Business closed -To EPR 11/10/10
09/05/08
Medina Restaurant
General
PF -00648
25.00
Business closed -To EPR 09/30/10
12/30/09
Mitel
General
PF -01311
10.00
Amount due after pymt by EPR
09/24/09
Liberty Orejudos Residence
General
PF -01178
25.00
To Evergreen Prof Recoveries 9/10/10
09/24/09
Liberty Orejudos Residence
General
PF -01179
25.00
To Evergreen Prof Recoveries 9/10/10
08/04/09
Qaran Financial Express
General
PF -01134
25.00
Business closed -To EPR 09/30/10
12/08/09
Rochell Apartments
General
FF -00109
25.00
Business closed -To EPR 10/27/10
12/08/09
Rochell Apartments
General
FF -00110
50.00
Business closed -To EPR 10/27/10
04/21/10
Safari Restaurant
General
PF -01377
25.00
Business closed -To EPR 09/07/10
03/09/09
SS Custom
General
PF -00995
25.00
Business closed -never licensed with the City
10/17/07
Wendy's
General
10.00
Amount due after pymt by EPR
False Alarm Total
$ 675.00
RETURNEDCHCKS
03/30/10
Judy A. Desoto
TCP
CK # 7553
$ 4.00
Fraudulent check -Too small for collections
07/02/10
Gwendolyn Y. Denton
TCC
CK # 1577
14.00
To EPR 10/18/10
07/16/10
Elite BB of WA/Jevon Green
TCC
CK # 1006
200.00
To EPR 10/18/10
Returned Check Total
$ 218.00
WRITE -OFF GRAND TOTAL
$ 93,663.37
Page 2
TO:
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance and Safety Committee
FROM: Shawn Hunstock, Interim City Administrator
DATE: September 22, 2011
SUBJECT: Miscellaneous Revenue Report for July 2011
Schedule 1 - Sales Tax
in 1,000's
Sales Receipt 2010 2011 2011 Increase /(Decrease) %Increase /(Decrease)
Month Month Actual Estimated Actual Month YTD Month YTD
Jan Mar $ 1,034 $ 1,080 $ 1,039 $ (41) $ (41) -3.80% 0.00%
Feb Apr 1,006 1,033 1,043 10 (31) 0.97% -1.47%
Mar May 1,157 1,179 1,453 274 243 23.24% 7.38%
Apr June 1,070 1,102 1,252 150 393 13.61% 8.94%
May July 1,067 1,138 1,278 140 533 12.30% 9.63%
June Aug 1,249 1,243 1,386 143 676 11.50% 9.98%
July Sept 1,251 1,299 1,281 (18) 658 -1.39% 8.15%
Aug Oct 1,216 1,176 - (1,176) (518) - 100.00% -5.60%
Sept Nov 1,357 1,185 (1,185) (1,703) - 100.00% - 16.32%
Oct Dec 1,082 1,036 (1,036) (2,739) - 100.00% - 23.88%
Nov Jan12 1,202 1,101 (1,101) (3,840) - 100.00% - 30.54%
Dec Feb12 1,889 1,628 (1,628) (5,468) - 100.00% - 38.51%
Totals $ 14,580 $ 14,200 8,732
Mitigation Received 917
$ 9,649 107.32% % of Budget Incl. Mitigation
Sales tax collections for July showed an increase versus the same month in the previous year.
July represented the twelfth consecutive increase over the last twelve months. For July,
collections were slightly less than budget for the month, but more than actual collections in the
same month the previous year. Actual receipts for July were $18,000 less than budget, and
$30,000 more than the same period last year. We are down 1.39% for the month compared to
budget, but up by 11.46% compared to the same month last year. Not including one -time money
from new construction, we are 7.59% ahead of last year's collections to date.
Including mitigation payments, we are currently at 107.32% of budget for the year to date. This
includes a mitigation payment of $305,849.90 that will be received on September 30, 2011.
Mitigation payments are now annualized and will only be adjusted once per year in the fall,
effective with the December 31st payment. Staff completed work on the last mitigation detail file
and submitted to the Department of Revenue a list of firms that should be removed from the
mitigation calculation process. These firms are ones that were offsetting other losses, thereby
reducing our mitigation payment.
17
INFORMATIONAL MEMO
Page 2
Schedule II shows the year -to -date sales tax from the top ten industry classifications. As this
schedule indicates, the trend is flat or down for most of the classifications.
Schedule II
YTD YTD Dollar
Group Name Current Prior Diff. Diff.
448* Clothing and Accessories $ 1,086,762 $ 1,046,886 $ 39,876 3.81%
452* General Merchandise Stores 1,073,375 1,090,141 (16,766) - 1.54%
443* Electronics and Appliances 806,327 500,894 305,433 60.98%
722* Food Services, Drinking Places 763,655 772,301 (8,646) -1.12%
423* Wholesale Trade, Durable Goods 632,453 724,319 (91,867) - 12.68%
236 Construction of Buildings 529,036 301,328 227,708 75.57%
441* Motor Vehicle and Parts Dealer 352,177 351,354 822 0.23%
451* Sporting Goods, Hobby, Books 339,884 341,932 (2,048) - 0.60%
444* Building Material and Garden 291,525 302,181 (10,656) -3.53%
721* Accommodation 266,270 240,443 25,827 10.74%
* Mitigated NAICS Code
As you can see there are large variances from last year for the same time period. For instance,
sales tax for Construction of Buildings is up by 75.57 %, Electronics and Appliances is up by
60.98 %, and Wholesale Trade Durable Goods is down by 12.68 %. As illustrated above, five of
the top ten merchant categories have declined versus prior year, and all but one of the ten
industry classification codes are ones for which we receive streamlined sales tax mitigation.
Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000
collected year -to -date.
Schedule III
YTD YTD Dollar %
Group Name Current Prior Diff. Diff.
811 Repair and Maintenance $ 50,537 $ 58,484 $ (7,947) - 13.59%
423* Wholesale Trade, Durable Goods 632,453 724,319 (91,867) - 12.68%
512 Motion Picture, Sound Record 16,665 18,860 (2,195) - 11.64%
531 Real Estate 21,718 24,034 (2,315) -9.63%
322* Paper Manufacturing 11,401 12,545 (1,144) -9.12%
517 Telecommunications 198,221 216,532 (18,311) - 8.46%
323* Printing and Related Support 25,809 28,073 (2,263) - 8.06%
444* Building Material and Garden 291,525 302,181 (10,656) -3.53%
452* General Merchandise Stores 1,073,375 1,090,141 (16,766) -1.54%
722* Food Services, Drinking Places 763,655 772,301 (8,646) -1.12%
* Mitigated NAICS Code
Attached is a Sales Tax Summary comparing year -to -date 2011 vs. 2010 by major NAICS
codes. Also included is a comparison of total receipts year -to -date for the last six years.
Below is Schedule IV which shows quarterly gambling tax receipts for last year, and the current
year to date.
W:\FIN Projects\Sales Tax Information120111Info Memo Sales Tax 09222011.docx
18
INFORMATIONAL MEMO
Page 3
Schedule IV - Gambling Tax
Sales
Quarter
2010 2011
Actual Estimated
2011 Increase /(Decrease)
Actual Month YTD
Actuals
%Increase /(Decrease)
Month YTD
Jan - Mar
Apr - Jun
Jul - Sep
Oct - Dec
Totals
$ 417,078
532,667
439,255
496,414
$ 1,885,414
$ 464,547
593,292
489,248
552,913
$2,100,000
$ 478,118
389,776
$ 867,894
$ 13,571 $ 13,571 2.92% 0.00%
(203,516) (189,945) - 34.30% - 17.96%
(489,248) (679,193) - 100.00% - 43.90%
(552,913) (1,232,106) - 100.00% - 58.67%
As you can see, we are currently $189,945 under budget through June 2011, or 17.96% below
budget. Actual receipts for 2011 are 8.62% below actual receipts to date in 2010. However, this
is largely due to one of the casinos being late with their second quarter tax payment. As of
today's date, that casino has not yet paid their second quarter taxes.
Below is Schedule V which shows monthly admission tax receipts for the prior year and current
year to date.
Schedule V - Admissions Tax
Sales 2010 2011
Month Actual Estimated
2011 Increase /(Decrease)
Actual Month YTD
Actuals
%Increase /(Decrease)
Month YTD
Jan $ 52,751 $ 57,532 $ 31,217
Feb 39,232 42,788 30,403
Mar 51,861 56,562 39,696
Apr 39,294 42,855 28,705
May 35,365 38,570 38,944
June 48,428 52,818 57,325
July 62,293 67,939 50,835
Aug 42,284 46,116 -
Sept 37,853 41,284
Oct 27,638 30,144 -
Nov 35,594 38,820 -
Dec 50,036 54,571
Totals $ 522,628 $ 570,000 $ 277,124
$(26,315)
(12,385)
(16,866)
(14,150)
373
4,508
(17,104)
(46,116)
(41,284)
(30,144)
(38,820)
(54,571)
$ (26,315)
(38,701)
(55,566)
(69,717)
(69,343)
(64,836)
(81,940)
(128,057)
(169, 341)
(199,485)
(238,305)
(292,876)
- 45.74%
- 28.95%
- 29.82%
- 33.02%
0.97%
8.53%
- 25.18%
- 100.00%
- 100.00%
- 100.00%
- 100.00%
- 100.00%
0.00%
- 38.58%
- 35.42%
- 34.90%
- 29.10%
- 22.27%
- 22.82%
- 31.60%
- 37.93%
- 41.85%
- 46.23%
- 51.38%
Admission tax receipts are currently 22.82% below budget for the year, and 15.82% below prior
year actual receipts. We are working with one of the largest taxpayers for admissions tax to
determine the cause of the decline. It appears that the decline is due to a decline in economic
activity for that industry, a movie theater, but we are working on confirming the tax payments
with the Department of Revenue. Also, it is expected that there will be an increase in admission
tax payments with the recent opening of the iFly indoor skydiving facility near the mall.
Please let me know if you have any comments or questions. Thank you.
W: \FIN Projects \Sales Tax Information \2011 \Info Memo Sales Tax 09222011.docx
19
20
1
1
SALES TAX SUMMARY
July 2011 (Received in September)
NAICS CONSTRUCTION 10 TOTAL
236 Construction of Buildings 588,919
237 Heavy & Civil Construction 37,857
238 Specialty Trade Contractors 290,486
TOTAL CONSTRUCTION $ 917,262 $
Overall Construction Change from Previous Year
10 YTD
301,328
12,938
143,400
457,666 $
11 YTD
529,036
23,090
244,193
796,319
8338,653
YTD
Diff
75.6%
78.5%
70.3%
NAICS
AUTOMOTIVE
10 TOTAL
10 YTD
11 YTD
YTD
Diff
441' Motor Vehicle & Parts Dealer
596.727
351,354
352,177
0.2%
447* Gasoline Stations
67,583
38,200
39,840 4.3%
74.0%
NAICS
TOTAL AUTOMOTIVE $ 664,310 $
Overall Automotive Change from Previous Year
RETAIL TRADE
10 TOTAL
389,555 $
10YTD
392,017
S2,462
11 YTD
Diff
0.6%
YTD
MANUFACTURING 10 TOTAL 10 YTD 11 YTD % Diff
442* Furniture & Home Furnishings 374,775 212,305 212,325 0.0%
443` Electronics & Appliances 1,003,415 500,894 806,327 61.0%
311 Food Manufacturing 5,995 1,639 2,403 46.6%
312 Beverage & Tobacco Products -895 -2,604 2,054 -178.9%
313 Textile Mills 88 24 225 824.4%
314 Textile Product Mills 13,503 9,086 5,919 -34.9%
315 Apparel Manufacturing 38 15 427 2791.1%
316 Leather & Allied Products 2 1 4 182.9%
444" Building Material & Garden 499,394 302,181 291,525 -3.5%
445" Food & Beverage Stores 101,958 43,894 71,596 63.1%
446* Hearth & Personal Care 178,919 96,788 124,856 29.0%
448" Clothing & Accessories 2,021,704 1,046,886 1,086,762 3.8%
451* Sporting Goods, Hobby, Books 648,678 341,932 339,884 -0.6%
452* General Merchandise Stores 2,068,263 1,090,141 1,073,375 -1.5%
321' Wood Product Manufacturing 1,627 933 875 -6.2%
453* Miscellaneous Store Retailers 481,324 257,328 263,975 2.6%
322' Paper Manufacturing 21,585 12,545 11,401 -9.1%
454* Nonstore Retailers 111,045 56,045 66,843 19.3%
323* Printing & Related Support 54,341 28,073 25,809 -8.1%
TOTAL RETAIL TRADE $ 7,489,475 $ 3,948,392 $ 4,337,468
324 Petroleum & Coal Products
325 Chemical Manufacturing
326 Plastic & Rubber Products
3,062
7,458
3,142
1,990
4,155
1,745
1,273
5,486
2,657
-36.1%
32.0%
52.3%
327* Nonmetallic Mineral Products
3,667 670 2,153 221.4%
331 Primary Metal Manufacturing
332 Fabricated Metal Mfg Products
333 Machinery Manufactudng
334* Computer& Electronic Products
725
-2,641
10,120
195
4,065
7,042
179
2,187
877
-8.2%
-46.2%
-87.5%
5,592
2,436
5,179 112.6%
335 Electric Equipment, Appliances
336 Transportation Equipment Mfg
337* Furniture & Related Products
339* Miscellaneous Manufacturing
523
290,984
10,326
11,140
119
79,344
6,006
6,494
163,973 $
TOTAL MANUFACTURING $ 440,381 $
Overall Manufacturing Change from Previous Year
TRANSPORTATION & WAREHOUSING
481 Air Transportation
482 Rail Transportation
484 Truck Transportation
485 Transit and Ground Passengers
487 Scenic and Sightseeing Tran
488 Transportation Support
491 Postal Services
492 Couriers & Messengers
10 TOTAL
4
731
344
17,813
0
29,089
0
372
117
85,477
-2.2%
7.7%
5,214 -13.2%
5,915 -8.9%
10YTD
165,832
$1,859
0
246
137
11,175
0
9,608
0
208
11 YTD
42
498
3,243
11,099
518
17,011
84
7
YTD
% Diff
0.0%
102.1%
2258.4%
-0.7%
#DIV/01
77.0%
#DIV /0!
-96.9%
493* Warehousing & Storage
957
583
557
-4.4%
TOTAL TRANSP & WHSING $ 49,309 $
Overall Transportation Change from Previous Year
WHOLESALE TRADE
10 TOTAL
21,958 $
10 YTD
33,058
811,100
11 YTD
YTD
% Diff
50.6%
423* Whls Trade - Durable Goods
1,236,905
724,319
632,453 -12.7%
424* Whls Trade - Nondurable Goods
112,063
57,012
56,387 -1.1%
425' Wholesale Electronic Markets
2,781
1,437
922 -35.9%
WHOLESALE TRADE TOTAL $ 1,351,748 $
Overall Wholesale Change from Previous Year
* Sales Tax Mitigation NAICS Codes
09/21/2011
782,768 $
689,761
($93,007)
-11.9%
Overall General Retail Change from Previous Year
SERVICES
51X Information
52X Finance & Insurance
53X Real Estate, Rental, Leasing
541 Professional, Scientific, Tech
551 Company Management
56X Admin, Supp, Remed Svcs
611 Educational Services
62X Health Care Social Assistance
71X Arts & Entertainment
10 TOTAL
553.763
54,281
420,554
183,693
250
111,875
61,029
74,501
110,146
10 YTD
317,172
26,535
209,747
92,981
209
61,763
35,299
38,980
66,553
5389,075
11 YTD
317,854
43,785
249,428
107,726
105
83,470
35,874
45,130
69,796
YTD
% Diff
0.2%
65.0%
18.9%
15.9%
-49.8%
35.1%
1.6%
15.8%
4.9%
9.9%
72X* Accommodation & Food Svcs
1,769,600
1,012,744
1,029,925
1.7%
81X Other Services
92X Public Administration
TOTAL SERVICES
185,696
26,395
$ 3,551,783 $
Overall Services Change from Previous Year
MISCELLANEOUS
10 TOTAL
000 Unknown 43
111 -115 Agriculture. Forestry, Fishing 313
211 -221 Mining & Utilities 14,355
999 Unclassifiable Establishments 100,745
MISCELLANEOUS TOTAL $ 115,457 $
Overall Miscellaneous Change from Previous Year
Page 1
10 TOTAL
106,337
15,582
1,983,903 $
10 YTD
102,439
24,021
2,109,554
$125,651
1
190
9,068
76,146
85,405 $
10 YTD
-3.7%
54.2%
YTD
11 YTD % Diff
0 - 100.0%
136 -28.5%
2,338 -74.2%
205,872 170.4%
208,346
$122,941
11 YTD
YTD
% Diff
6.3%
143.9%
GRAND TOTALS
$14,579,726
$7,633,621
$8,732,354
Grand Total Change from Previous Year
Grand Total Change from Previous Year - Without New Construction
8898,734
6560,080
rUK Soles Io>. Rpt 201107.dsz
11.47%
7.59%
2011
2010
2009
ca
a)
>- 2008
2007
2006
Six Year Comparison
$8,7132,354
$7,833,6
$1U,48/,129
1
1 $8,332,869
1
$10,/43,b 8U
$9,938,118
a i �
$ $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000
Sales Taxes Collected Year to Date
22