HomeMy WebLinkAboutCOW 2011-11-14 Item 5K - Discussion - Golf Course Budget and General Fund SubsidyCOUNCIL AGENDA SYNOPSIS
ITEM NO.
CAS NU ,v4BI R:
Aleetin� Date Prepared by Maitor.r revien
11/14/11 PMc
11/21/11 PMc
ITEM INFORMATION
STAFF SPONSOR: PEGGY MCCARTHY
Consider for approval certain financial chan
Council rey 9w
5. K.
ORIGINAL Acr -NDA DATE: 11/14/11
ges in Golf Course Fund.
CATF?GORY Discussion Motion Resolution Ordinance Bid_Axard Public Hearing ❑Other
117tg Date 11/14/11 P1tg Date Mtg Date 11 21 11 Mtg Date tlltg Date Nltg Date Mtg Dale
SPONSOR Council Mayor PR DCD Finance E] Fire IT P &R Police Plr/
SPONSOR'S The City Council is being asked to consider for approval certain financial changes to the
SUk1M!\IZY Golf Course fund to enable a balanced budget without the need for significant General
Fund subsidy.
Ri i F kXcI D BY COW Mtg. CA &P Cmte F &S Cmte
Utilities Cmte Arts Comm. Parks Comm.
DATE: COMMITTEE CHAIR:
RECOMMENDATIONS:
SPONSOR /ADMIN. Finance
COST IMPACT FUND SOURCE
EkPI ?NDI "I'URI_; Rl_:QU1RI_.D AMOUNT BUDGETED
Fund Source:
Cornmentc.
I MTG. DATE
11/14/11
Transportation Cmte
Planning Comm.
APPROPRIATION REQUIRED
$0
RECORD OF COUNCIL ACTION
MTG. DATE I ATTACHMENTS
11/14/11 Informational memorandum dated 11/8/11, with attachments
11/21/11
195
x
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Councilmembers
FROM: Peggy McCarthy, Interim Finance Director
DATE: November 8, 2011
SUBJECT: Golf Course Fund Proposed Financial Changes
ISSUE
For 2012 and beyond, implement proposed financial changes to allow the Golf Course Fund to
operate at a break -even level or with a small operating surplus.
BACKGROUND
Foster Golf Links was purchased in 1978 pursuant to a vote by the citizens of Tukwila. The
Course provides governmental type services through its park -like setting, its role as a meeting
place for residents and others, and the recreational opportunities it affords to resident youth,
seniors and others. Additionally, it functions as a wildlife habitat and is a Washington State
Department of Ecology King County riverbank restoration site. The golf course property is in a
flood plain making development of the site for purposes other than a golf course difficult.
In 2003, bonds were issued to construct the new clubhouse. The golf course has had
insufficient operating revenues to pay the debt service on these bonds. Additionally, in 2011 the
General Fund indirect cost allocation charges increased to the extent golf course operating
revenues have been insufficient to cover them as well. In the past, the shortfall has been
addressed through the budget process and sales tax was allocated, or funds were transferred in
from the General Fund, to cover these costs. A more permanent and committed funding
solution is being sought.
Historical financial data demonstrates, for the most part, that the golf course operating revenue
can fund golf course operations but is insufficient to fund the debt service and certain charges
from the General Fund. At the September 27, 2011 Budget Workshop, certain financial
changes were proposed by the Parks and Recreation Director to structure the Golf Course fund
as self- sustaining alleviating the need for significant, annual subsidies from the General Fund.
The specific financial changes proposed follow and are numbered to correspond with the
references on Attachment G in the proposed 2012 -2017 draft CIP.
2. Eliminate the General Fund subsidy (in the form of sales tax or transfers in) to the Golf
Course Fund.
4a. 25% of the Park Recreation Director's salary and benefits will no longer be
charged to the golf course fund but will instead be charged to the General Fund Parks Division.
197
INFORMATIONAL MEMO
Page 2
4b. The 5% Admissions tax charged by the General Fund and paid by the Golf Course
Fund will be waived.
4c. 50% of the operating costs of the maintenance building will be paid for by the
General Fund Parks Division, consistent with the Parks Division usage, instead of 100% of
these costs being paid for by the Golf Course Fund.
5. The indirect costs allocated by the General Fund and paid by the Golf Course Fund
will be waived.
6. Debt service on the golf course portion of the LTGO 2003 bond issue will be paid by
the General Fund in 2012 and 2013 and the remaining outstanding bond balance will be paid -off
in December 2013 using sales tax revenue accumulated into the 301 Park Acquisition fund.
7. The $650,000 transfer into the Golf Course Fund in 2004 from the General Fund will
be considered the General Fund's approximate 50% contribution to the construction cost of the
maintenance building since at least 50% of the structure is used by the General Fund Park
Division. It will no longer be considered a loan to the Golf Course Fund.
At the October 25, 2011 Workshop, the Council was given the following handouts.
1. Attachment A as shown in the draft 2012 -2017 CIP.
2. Attachment A as described in 1 above except with the Golf Course changes suggested
at the September 27, 2011 Budget Workshop incorporated.
3. Debt Service schedule for the governmental funds and including the Golf Course debt
service for 2012 and 2013 and a proposed debt payoff on December 1, 2013 of the golf
course portion of the 2003 bond.
4. Attachment G as shown in the draft 2012 -2017 CIP.
5. Attachment G as described in 4 above except with the Golf Course changes suggested
at September 27, 2011 Budget Workshop incorporated.
The effect on Attachment A and Attachment G of incorporating the changes was to reduce the
six -year carryover to a $1496K deficit for the governmental funds, as shown on Attachment A,
and to increase the six -year carryover to a $629K surplus for the Golf Course Fund, as shown
on Attachment G.
Revised Attachment A and Attachment G
To provide a more precise analysis and present changes more favorable to the governmental
funds, revised Attachments A and G were prepared and are attached to this memorandum. A
description of the attachments and the changes from the October 25, 2011 handouts follows:
1. Attachment A as shown in the draft 2012 -2017 CIP book with the debt service line
revised to match actual debt service.
2. Debt service schedule for governmental funds.
3. Attachment A as described in 1 above except with the recommended Golf Course
changes incorporated (see Discussion below) and reflecting payoff of the golf course
bonds in 2013.
4. Debt Service schedule for the governmental funds and the golf course bonds with golf
course bonds paid off in 2013.
5. Attachment A as described in 1 above except with the recommended Golf Course
changes incorporated (see Discussion below) without payoff of the golf course bonds in
2013.
6. Debt Service schedule for the governmental funds and the golf course bonds without
M2011 AGENDA- CouncikGolf Course Financial Chgs Aft A 3 11- 8- 11.doc
198
INFORMATIONAL MEMO
Page 3
payoff of golf course bonds in 2013.
7. Attachment G as shown in the draft 2012 -2017 CIP. This schedule did not change
except the footnotes were revised to match those in the draft CIP page XXIII.
8. Attachment G as described in 4 above except with the recommended Golf Course
changes incorporated (see Discussion below).
DISCUSSION
To remain balanced, the Golf Course fund requires subsidy from the General Fund or cost
restructuring. The recommendations proposed by the Parks Recreation Director at the
September 27, 2011 budget workshop suggested cost restructuring. Staff responses to these
recommendations follow.
2. Eliminate the General Fund subsidy (in the form of sales tax or transfers in) to the Golf
Course Fund.
Recommended. To the extent the transfers are not needed to allow the Golf course to operate
at break -even level, the transfers will be discontinued.
4a. 25% of the Park Recreation Director's salary and benefits will no longer be charged to the
golf course fund but will instead be charged to the General Fund Parks Division.
Recommended. Since the utility enterprise funds are not charged with a portion of the Public
Works Director's salary, this change is consistent with City practice.
4b. The 5% Admissions tax charged by the General Fund and paid by the Golf Course Fund will
be waived.
Not recommended. To provide consistency among all City businesses, the admissions tax will
continue to be charged.
4c. 50% of the operating costs of the maintenance building will be paid for by the General Fund
Parks Division, consistent with the Parks Division usage, instead of 100% of these costs being
paid for by the Golf Course Fund.
Recommended. Requiring the Parks Division to pay its share of the maintenance building
operating costs, consistent with usage, is an equitable distribution of costs.
5. The indirect costs allocated by the General Fund and paid by the Golf Course Fund will be
waived.
Partially recommended. To the extent the Golf Course Fund can afford to pay an indirect cost
allocation to the General Fund, such a charge and payment will be made. A $15,000 annual
cost allocation is proposed for 2012 and is modeled to increase at 3% each year over the 6 year
period. The City -wide indirect cost allocation model will be reviewed and updated by staff soon
to ensure the allocations to all funds reasonably reflect the services received.
6. Debt service on the golf course portion of the 2003 bond issue will be paid by the General
Fund in 2012 and 2013 and the remaining outstanding bond balance will be paid -off in
W:12011 AGENDA- Council\Golf Course Financial Chgs Aft A 311- 5- 11.doc
199
INFORMATIONAL MEMO
Page 4
December 2013 using sales tax revenue accumulated into the 301 Park Acquisition fund.
Recommended. To relieve the Golf Course Fund of debt service costs, the golf course bond
balance will be moved into Debt Service Fund 209, (the fund that services debt on the Arterial
Street portion of this bond); funding each year will be accomplished through General Fund
transfers into this debt service fund.
The option to pay off the debt on December 1, 2013 remains and could be accomplished using
accumulated sales tax revenue from the 301 fund.
7. The $650,000 transfer into the Golf Course Fund in 2004 from the General Fund will be
considered the General Fund's approximate 50% contribution to the construction cost of the
maintenance building since at least 50% of the structure is used by the General Fund Park
Division. It will no longer be considered a loan to the Golf Course Fund.
Recommended. Since 50% of the building is used by the Parks Division, allocating 50% of the
building construction costs to the Parks Division cost seems equitable.
The effect on Attachment A of making these changes is a $4.1M reduction if the golf course
bonds are paid off in 2013 and a $2.8M reduction if they are not.
RECOMMENDATION
The Council is being asked to consider the financial changes proposed in this memorandum. If
the Council agrees with the policies as submitted, they will be formalized into a resolution and
presented at the November 21, 2011 Regular meeting for approval.
ATTACHMENTS
1. Attachment A draft 2012 -2017 CIP
2. Debt service governmental funds
3. Attachment A draft 2012 -2017 CIP with recommendations and payoff of Golf Course
bonds in 2013.
4. Debt service governmental funds and golf course with payoff of Golf Course bonds in
2013.
5. Attachment A draft 2012 -2017 CIP with recommendations, no payoff of Golf Course
bonds in 2013.
6. Debt service governmental funds and golf course without payoff of Golf Course bonds
in 2013
7. Attachment G- draft 2012 -2017 CIP
8. Attachment G- draft 2012 -2017 CIP with recommendations.
WA2011 AGENDA- Council\Golf Course Financial Chgs Att A 3 11- 8- 11.doc
200
ATTACHMENT A
1 CITY OF TUKWILA
TOTAL REVENUES EXPENDITURES
2012 2017 Analysis in 000's
RGRL
One -time sale of property
Interfund Utility Taxes
2009
Gambling Taxes
2011
REVENUES (see.A -1)
Actual
2010 Actual
Budget
General Revenues
1,857
Intergovernmental Revenue
3,572
Sales Tax
14,739
16,060
15,400
Property Taxes
12,190
13,189
13,530
Utility Taxes
4,942
4,064
4,723
RGRL
One -time sale of property
Interfund Utility Taxes
1,813
Gambling Taxes
2,568
Contract Agreement SCL
1,967
Charges /Fees for Services
2,727
Transfers In Other Funds
1,857
Intergovernmental Revenue
3,572
Other Taxes /Miscellaneous
2,793
Subtotal
49,168
Dedicated Revenues (Capital)
0
Real Estate Taxes
257
Motor Vehicle Taxes
393
Investment Interest/Misc.
136
Property Taxes
12
Parking Taxes
156
Transfers from Golf Course
0
Subtotal
954
TOTAL REVENUE AVAILABLE 50,122
EXPENDITURES
Operations Maintenance:
44,641
(See Attachment B)
17,241
Debt Service
2,094
Transfer to Reserve Fund
0
Estimated Unfunded PERS
0
Admin /Engineering Overhead
497
Subtotal Available
2,890
Caoital Attachment C
4,985
Residential Streets
0
Arterial Streets /Bridges
5,560
Parks Trails
0
General Government
1,550
Facilities
193
General Imp /HHD Response
2,612
Fire Improvements
0
Subtotal Capital
8,365
Balance by Year
(5,475)
Carryover from 2011
26,556
(Accumulated Totals
21,081
1,498
2,110
2,071
3,985
1,696
1,189
2,386
48,248
379
394
62
0
144
0
979
49,227
43,640
2,331
0
0
552
2,704
32
1,202
315
16
1,740
0
3,305
(601)
21,082
20,481
1,900
700
1,426
2,586
2,000
4,338
1,475
872
2,432
51,382
201
339
18
64
108
0
730
52,112
2011
Estimate
16,200
13,800
4,800
1,465
10
1,500
2,400
2,000
4,345
1,837
949
2,400
51,706
250
360
100
99
133
0
942
52,648
45,335 43,600
2,925 2,750
400 2,000
0 0
384 515
3,068 3,783
(80) 20
2,705 2,000
590 (43)
101 10
2,144 326
0 (50)
5,460 2,263
(2,392) 1,520
18,640 20,480
16,248 22,000
ORIGINAL CIP DRAFT WITH
DEBT SERVICE REVISION.
2012 2013 2014 2015 2016 2017 Totals
16,248
16,492
16,739
17,241
17,759
18,291
102,770
13,868
14,215
14,570
14,934
15,308
15,690
88,585
4,840
4,985
5,135
5,289
5,289
5,447
30,985
1,475
1,512
1,550
1,588
1,588
1,628
9,341
1,300
0
0
0
0
0
1,300
1,524
1,545
1,628
1,741
1,820
1,907
10,165
2,502
2,577
2,654
2,734
0
0
10,467
2,050
2,112
2,175
2,240
2,240
2,307
13,124
4,169
4,294
4,423
4,556
4,556
4,692
26,689
1,869
1,925
1,983
2,042
2,042
2,104
11,965
812
836
861
887
887
914
5,198
1,609
1,657
1,707
1,758
1,758
1,811
10,301
52,266
52,150
53,425
55,011
53,247
54,792
320,891
200
206
212
219
219
225
1,280
345
355
366
377
377
388
2,209
129
133
137
141
141
145
826
65
67
68
70
72
74
415
111
114
118
121
125
129
718
0
0
150
150
175
175
650
850
875
1,051
1,078
1,108
1,136
6,098
53,116
53,025
54,476
56,089
54,355
55,928
326,989
44,941
46,963
49,077
51,285
53,593
56,005
301,864
1ll l 2 94,5
3,068
3;]30
2 643
2 41,4
2 406.;;
16,606
2,025
2,025
2,025
0
0
0
fiU75;:
803
835
868
903
939
939
5,287
309
318
328
338
338
348
1,978
2,093
(185)
(951)
920
(2,929)
(3,770)
(4,821)
430
0
200
500
3,000
0
4,130
(3,921)
2,550
1,935
2,865
1,945
2,035
7,409
1,119
338
142
142
(58)
(54)
1,629
100
(4,355)
0
0
0
0
(4,255)
2,715
500
500
500
500
500
5,215
(50)
0
0
0
(50)
(55)
(155)
393
(967)
2,777
4,007
5,337
2,426
13,9731
1,700
782
(3,728)
(3,087)
(8,266)
(6,196)
(18,794)
22,000
0
0
0
0
0
22,000
23,700
24,482
20,754
17,667
9,401
3,206
Contingency Fund 105 (Reserve) has a total of $8,075,000.00 in 2017 (including the $2,000,000.00 from 2011).
2011 2016 Financial Planning Model
VII
11/08/2011
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ATTACHMENT A
REVISED WITH
3
CITY OF TUKWILA
RECOMMENDATIONS
Golf Course bonds
TOTAL REVENUES
EXPENDITURES.
paid -off in 2013
2012 2017 Analysis
in 000's
REVENUES (see A-1)
2012
2013
2014
2015
2016
2017
Totals
General Revenues
Sales Tax
16,248
16,492
16,739
17,241
17,759
18,291
102,770
Property Taxes
13,868
14,215
14,570
14,934
15,308
15,690
88,585
Utility Taxes
4,840
4,985
5,135
5,289
5,289
5,447
30,985
RGRL
1,475
1,512
1,550
1,588
1,588
1,628
9,341
One -time sale of property
1,300
0
0
0
0
0
1,300
Interfund Utility Taxes
1,524
1,545
1,628
1,741
1,820
1,907
10,165
Gambling Taxes
2,502
2,577
2,654
2,734
0
0
10,467
Contract Agreement SCL
2,050
2,112
2,175
2,240
2,240
2,307
13,124
Charges /Fees for Services
4,169
4,294
4,423
4,556
4,556
4,692
26,689
5.
F
Transfersln Other- ,F,unds
1,656
17�06�;,;
1,757
1:;810
1,803
1,857
10
Intergovernmental Revenue
812
836
861
887
887
914
5,198
4b
Oth.6 /Miscellaneous
1,609
1,657 l
A 1;707
1758-
1F,758w 1:
10,301
Subtotal
52,053
51,931
53,199
54,779
53,008
54,546
319,516
Dedicated Revenues (Caoital)
Real Estate Taxes
200
206
212
219
219
225
1,280
Motor Vehicle Taxes
345
355
366
377
377
388
2,209
Investment Interest /Misc.
129
133
137
141
141
145
826
Property Taxes
65
67
68
70
72
74
415
Parking Taxes
111
114
118
121
125
129
718
7.,
Transfers fro(nr' Course
Subtotal
850
875
901
928
933
961
5,448
TOTAL REVENUE AVAILABLE
52,903
52,806
54,100
55,707
53,941
55,507
324,964
EXPENDITURES
2, 4a Operations Mainfgnanc
44,760. ,;46,774 _;48,879
51,078
53,377
55,77£
300,647
(See Attachment B)
6
3DebtService
,f,.
3,279
6,037 3 3 X2;643
2,91g 2406
19909,
Transfer to Reserve Fund
2,025
2,025
2,025
0
0
0
6,075
Estimated Unfunded PERS
803
835
868
903
939
939
5,287
Admin /Engineering Overhead
309
318
328
338
338
348
1,978
Subtotal Available
1,727
(3,184)
(1,129)
745
(3,127)
(3,965)
(8,933)
Caoital Attachment C
Residential Streets
430
0
200
500
3,000
0
4,130
Arterial Streets /Bridges
(3,921)
2,550
1,935
2,865
1,945
2,035
7,409
Parks Trails
1,119
338
142
142
(58)
(54)
1,629
General Government
Facilities
100
(4,355)
0
0
0
0
(4,255)
General Imp /HHD Response
2,715
500
500
500
500
500
5,215
Fire Improvements
(50)
0
0
0
(50)
(55)
(155)
Subtotal Capital
393
(967)
2,777
4,007
5,337
2,426
13,973
Balance by Year
1,334
(2,217)
(3,906)
(3,262)
(8,464)
(6,391)
(22,906)
Carryover from 2011
22,000
0
0
0
0
0
22,000
Accumulated Totals
23,334
21,118
17,212
13,949
5,485
(906)
REVISIONS INCORPORATED INTO SCHEDULE ABOVE:
Revenue reduction:
5.
Indirect cost allocation 2012 original budget
(228)
(234)
(241)
(249)
(256)
(264)
(1,472)
Revised new estimate
15
15
16
16
17
17
97
Effect of change on Attachment A
(213)
(219)
(226)
(232)
(239)
(246)
(1,375)
4b
Admissions tax
(59)
(59)
(62)
(62)
(64)
(64)
(370)
Admissions tax will remain in effect
59
59
62
62
64
64
370
Effect of change on Attachment A
0
0
0
0
0
0
0
7
Loan payback 50% of Mnt Bldg
0
0
(150)
(150)
(175)
(175)
(650)
Effect of change on Attachment A
0
0
(150)
(150)
(175)
(175)
(650)
TOTAL REVENUE REDUCTION
(2,025)
Operations Maintenance (reduction) increase
2.
Transfer in sales tax
(225)
(235)
(246)
(257)
(268)
(280)
(1,511)
4a
25% Directors salary and benefits
40
41
43
45
47
49
267
4c
50% Mnt bldg operating costs
4
4
5
5
5
5
28
(181)
(189)
(198)
(207)
(216)
(226)
(1,216)
6.
Debt Service increase (reduction)
334
2,969
3,303
TOTAL EXPENDITURE INCREASE
2,086
NET EFFECT OF GOLF COURSE CHANGES
(4,112)
CARRYOVER BEFORE CHANGES
3,206
CARRYOVER AFTER CHANGES
(906)
2011
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OR
ATTACHMENT A
REVISED WITH
C
5
CITY OF TUKWILA
RECOMMENDATIONS
ay-offofGolf
TOTAL REVENUES
EXPENDITURES
Cnds
Courrse se b b00
2012 2017 Analysis
in 000's
REVENUES (see A -1)
2012
2013
2014
2015
2016
2017
Totals
General Revenues
Sales Tax
16,248
16,492
16,739
17,241
17,759
18,291
102,770
Property Taxes
13,868
14,215
14,570
14,934
15,308
15,690
88,585
Utility Taxes
4,840
4,985
5,135
5,289
5,289
5,447
30,985
RGRL
1,475
1,512
1,550
1,588
1,588
1,628
9,341
One -time sale of property
1,300
0
0
0
0
0
1,300
Interfund Utility Taxes
1,524
1,545
1,628
1,741
1,820
1,907
10,165
Gambling Taxes
2,502
2,577
2,654
2,734
0
0
10,467
Contract Agreement SCL
2,050
2,112
2,175
2,240
2,240
2,307
13,124
Charges /Fees for Services
4,169
4,294
4,423
4,556
4,556
4,692
26,689
5.
Transfers In ®tt)er Funds.. T
...�r
656 4.
1,706
1;757
F 3,810
1 803
X1.857 x u
10,590
Intergovernmental Revenue
812
836
861
887
887
914
5,198
41b
Other Taxes /Miscellaneous
1,609
1
1,707
1,758
1,758
1
10
Subtotal
52,053
51,931
53,199
54,779
53,008
54,546
319,516
Dedicated Revenues (Capital)
Real Estate Taxes
200
206
212
219
219
225
1,280
Motor Vehicle Taxes
345
355
366
377
377
388
2,209
Investment Interest /Mist.
129
133
137
141
141
145
826
Property Taxes
65
67
68
70
72
74
415
Parking Taxes
111
114
118
121
125
129
718
7
Transfers frorn:Gplf Course..,
Subtotal
850
875
901
928
933
961
5,448
TOTAL REVENUE AVAILABLE
52,903
52,806
54,100
55,707
53,941
55,507
324,964
EXPENDITURES
2, 4a, 4c
Operations Maintenance;
3 4n44760 s
46,774
48,879
51,078
537:7
56,779
300647'
(See Attachment B)
Ei.
Debt Service
3,279
3,401
3 4:63
2 977.• 2 748
2;739
18 606
Transfer to Reserve Fund
2,025
2,025
2,025
0
0
0
6,075
Estimated Unfunded PERS
803
835
868
903
939
939
5,287
Admin /Engineering Overhead
309
318
328
338
338
348
1,978
Subtotal Available
1,727
(547)
(1,462)
411
(3,461)
(4,298)
(7,629)
Capital Attachment C
Residential Streets
430
0
200
500
3,000
0
4,130
Arterial Streets /Bridges
(3,921)
2,550
1,935
2,865
1,945
2,035
7,409
Parks Trails
1,119
338
142
142
(58)
(54)
1,629
General Government
Facilities
100
(4,355)
0
0
0
0
(4,255)
General Imp /HHD Response
2,715
500
500
500
500
500
5,215
Fire Improvements
(50)
0
0
0
(50)
(55)
(155)
Subtotal Capital
393
(967)
2,777
4,007
5,337
2,426
13,973
Balance by Year
1,334
420
(4,239)
(3,596)
(8,798)
(6,724)
(21,602)
Carryover from 2011
22,000
0
0
0
0
0
22,000
(Accumulated Totals
23,334
23,755
19,515
15,919
7,122
398
I
I
REVISIONS INCORPORATED INTO SCHEDULE ABOVE:
Revenue reduction:
5.
Indirect cost allocation 2012 original budget
(228)
(234)
(241)
(249)
(256)
(264)
(1,472)
Revised new estimate
15
15
16
16
17
17
97
Effect of change on Attachment A
(213)
(219)
(226)
(232)
(239)
(246)
(1,375)
4b
Admissions tax
(59)
(59)
(62)
(62)
(64)
(64)
(370)
Admissions tax will remain in effect
59
59
62
62
64
64
370
Effect of change on Attachment A
0
0
0
0
0
0
0
7.
Loan payback 50% of Mnt Bldg
0
0
(150)
(150)
(175)
(175)
(650)
Effect of change on Attachment A
0
0
(150)
(150)
(175)
(175)
(650)
TOTAL REVENUE REDUCTION
(2,025)
Operations Maintenance (reduction) increase
2.
Transfer out /sales tax
(225)
(235)
(246)
(257)
(268)
(280)
(1,511)
4a
25% Directors salary and benefits
40
41
43
45
47
49
267
4c
50% Mnt bldg operating costs
4
4
5
5
5
5
28
(181)
(189)
(198)
(207)
(216)
(226)
(1,216)
6.
Debt Service increase (reduction)
334
332
333
334
334
333
2,000
TOTAL EXPENDITURE INCREASE
783
NET EFFECT OF GOLF COURSE CHANGES
(2,808)
CARRYOVER BEFORE CHANGES
3,206
CARRYOVER AFTER CHANGES
398
2011
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V i l
11/08/2011
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ATTACHMENT G
7
ORIGINAL
PROPOSED
City of Tukwila
ATTACHMENT
G
GOLF
ENTERPRISE FUND
2012 2017 Analysis in 000's
2009
2010
2011
2011
REVENUES
Actual
Actual
Budget
Estimate
2012
2013
2014
2015
2016
2017
Total
Green Fees 111
1,034
1,018
1,200
1,020
1,070
1,070
1,120
1,120
1,170
1,170
6,720
Sales Tax (2)
328
330
225
225
225
225
250
300
350
350
1,700
Merchandise Sales
158
132
148
130
130
130
136
136
142
142
816
Power Cart Rentals
186
172
195
173
175
175
183
183
191
191
1,098
Concession Proceeds
19
80
120
120
120
120
126
126
131
131
754
Other Revenue 131
31
24
24
24
24
24
25
25
26
26
150
Total Revenues
1,756
1,756
1,912
1,692
1,744
1,744
1,840
1,890
2,010
2,010
11,238
1EXPENDITURES
Operations Maintenance 141
1,672
1,600
1,701
1,467
1,814
1,390
1,425
1,461
1,499
1,538
9,127
Indirect Cost Allocation 151
13
13
222
222
96
49
85
49
80
41
400
Debt Service 161
378
335
339
339
351
352
352
352
355
357
2,119
Payback to General Fund (7)
0
0
0
0
0
150
150
175
175
0
650
Subtotal
2,063
1,948
2,262
2,028
2,261
1,941
2,012
2,037
2,109
1,936
12,296
Golf Capital CIP Program
0
0
75
67
66
80
80
80
82
82
470
Total Expenditures
2,063
1,948
2,337
2,095
2,327
2,021
2,092
2,117
2,191
2,018
12,766
Cash Flow Year by Year
(307)
(192)
(425)
(403)
(583)
(277)
(252)
(227)
(181)
(8)
(1,528)
Carryover from 2011
610
220
425
425
22
22
Accumulated Totals
303
28
22
(561)
(838)
(1,090)
(1,317)
(1,498)
(1,506)
1) The Green Fees are expected to increase modestly as a function of both increased players' participation and periodic greens fee increases. This
model is at zero growth for golf rounds and includes only a $1.00 increase in green fees every two years.
2) A portion of the City's total sales tax revenue was allocated to pay the Golf Course's share of the 2003 bond. See also note (4).
3) Other revenue includes golf instruction, equipment rental, and interest.
4) Assumptions for Operations and Maintenance include; removal of the Parks and Recreations' Director's 25% of salary and benefits, admissions tax will
no longer be collected, and 50% of the Golf Maintenance building will be covered by the Parks Department.
5) Indirect Cost Allocation will be calculated on an annual basis.
6) The debt service on the 2003 Bond issue, see note (2).
7) This is the proposed payback schedule for the $650,000 borrowed in 2004.
Golf Enterprise Fund
The City's Enterprise Funds account for operations that are self- supported through user charges. The funds 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 Golf Enterprise fund accounts for operation, maintenance, debt service and improvements of the
municipal golf facility. The difference between the other utility enterprise funds is that Golf has voluntary users as opposed to involuntary users of the
water, sewer, and surface water funds.
2012 2017 Financial Planning Model
XXI I
1110912011
207
8
REVENUES
Green Fees 1 1
Sales Tax 121
Merchandise Sales
Power Cart Rentals
Concession Proceeds
Other Revenue 131
Total Revenues
EXPENDITURES
Operations Maintenance 14)
Indirect Cost Allocation 151
Debt Service 151
Payback to General Fund 1 1
Subtotal
Golf Capital CIP Program
Total Expenditures
Cash Flow Year by Year
Carryover from 2011
Accumulated Totals
(62) (65)
ATTACHMENT G
(68)
(329)
62 65
65 68
68
329
(40)
Director salary /benefit elimination
already reflected in 2013 -2017
(40)
REVISED WITH
City Of Tukwila
Efficiencies /cut -backs already reflected in 2013 -2017
(2001
!(244)
(4) :45)..
(5) (N}.
{5)`
.(268)
RECOMMENDED
CHANGES
GOLF
ENTERPRISE FUND
2012
2017 Analysis in 000's
2009
Actual
2010
Actual
2011
Budget
2011
Estimate 2012 2013
2014
2015
2016
2017
Total
1,034
1,018
1,200
1,020 1,070 1,070
1,120
1,120
1,170
1,170
6,720
328
330
225
225
158
132
148
130 130 130
136
136
142
142
816
186
172
195
173 175 175
183
183
191
191
1,098
19
80
120
120 120 120
126
126
131
131
754
31
24
24
24 24 24
25
25
26
26
150
1,756
1,756
1,912
1,692 1,519 1,519
1,590
1,590
1,660
1,660
9,538
1,672
1,600
1,701
1,467 1,458 1,448
1,486
1,521
1,562
1,601
9,076
13
13
222
222 15 15 v 16
16
17
17
y 97:
378
335
339
339
0
0
0
0• C
2,063
1,948
2,262
2,028 1,473 1,463
1,501
1,538
1,579
1,618
9,173
0
0
75
67 66 80
80
80
82
82
470
2,063
1,948
2,337
2,095 1,539 1,543
1,581
1,618
1,661
1,700
9,643
(307)
(192)
(425)
(403) (20) (24)
9
(28)
(1)
(40)
(105)
610
220
425
425 22
22
303
28
22 2 (22)
(14)
(42)
(43)
(83)
REVISIONS INCORPORATED INTO ATTACHMENT G ABOVE:
4) Operations Maintenance Reduction:
4b Admissions tax
No waiver of Admissions tax
Effect on Attachment G
4a 25% Director's salary
4c 50% Mint bldg costs
Operational effiencies proposed
Effect on Attachment G
1) The Green Fees are expected to increase modestly as a function of both increased players' participation and periodic greens fee increases. This model is at zero growth
for golf rounds and includes only a $1 00 increase in green fees every two years.
2) A portion of the City's total sales tax revenue was allocated to pay the Golf Course's share of the 2003 bond. See also note (4).
Discontinue subsidy to Golf Course fund.
3) Other revenue includes golf instruction, equipment rental, and interest.
4) Assumptions for Operations and Maintenance include; (4a) removal of the Parks and Recreations' Director's 25% of salary and benefits,(41g) admissions tax will no longer
be collected, and (4c) 50% of the Golf Maintenance building will be covered by the Parks Department.
Incorporate all changes except retain the admissions tax.
5) Indirect Cost Allocation will be calculated on an annual basis.
Reduce indirect cosst allocation to $50,000 annually until allocation methodology can be reviewed and updated.
6) The debt service on the 2003 Bond issue, see note (2).
Consider debt service a governmental cost: transfer debt to debt service fund. Consider using sales tax residing in Fund 301, Park Land Acquisition Fund, to pay off
remaining balance in December 2013.
7) This is the proposed payback schedule for the $650,000 borrowed in 2004.
Consider this advance as a reimbursement to the Golf Course Fund from the General fund for 50% of maintenance building construction costs; 50% of the building is used
by the Parks Division.
2012 2017 Financial Planning Model XXII 1110812011
a
(62) (65)
(65) (68)
(68)
(329)
62 65
65 68
68
329
(40)
Director salary /benefit elimination
already reflected in 2013 -2017
(40)
(200)
Efficiencies /cut -backs already reflected in 2013 -2017
(2001
!(244)
(4) :45)..
(5) (N}.
{5)`
.(268)
1) The Green Fees are expected to increase modestly as a function of both increased players' participation and periodic greens fee increases. This model is at zero growth
for golf rounds and includes only a $1 00 increase in green fees every two years.
2) A portion of the City's total sales tax revenue was allocated to pay the Golf Course's share of the 2003 bond. See also note (4).
Discontinue subsidy to Golf Course fund.
3) Other revenue includes golf instruction, equipment rental, and interest.
4) Assumptions for Operations and Maintenance include; (4a) removal of the Parks and Recreations' Director's 25% of salary and benefits,(41g) admissions tax will no longer
be collected, and (4c) 50% of the Golf Maintenance building will be covered by the Parks Department.
Incorporate all changes except retain the admissions tax.
5) Indirect Cost Allocation will be calculated on an annual basis.
Reduce indirect cosst allocation to $50,000 annually until allocation methodology can be reviewed and updated.
6) The debt service on the 2003 Bond issue, see note (2).
Consider debt service a governmental cost: transfer debt to debt service fund. Consider using sales tax residing in Fund 301, Park Land Acquisition Fund, to pay off
remaining balance in December 2013.
7) This is the proposed payback schedule for the $650,000 borrowed in 2004.
Consider this advance as a reimbursement to the Golf Course Fund from the General fund for 50% of maintenance building construction costs; 50% of the building is used
by the Parks Division.
2012 2017 Financial Planning Model XXII 1110812011
a