HomeMy WebLinkAboutTIC 2020-01-13 Item 2D - Update - Capital Improvement Program Projects and Flood Prevention (Surface Water Utility Enterprise Fund)ATTACHMENT F
City of Tukwila
SURFACE WATER ENTERPRISE FUND
2019 - 2024 Analysis in 000's
REVENUES
2015
Actual
2016
Actual
2017
Actual
2016
Budget
2016
Estimate
2019
2020
2021
2022
2023
2024
Total
+20 %
+15 %
+5 %
+3 %
+5 %
+3 %
+5 %
+3 %
+5 %
+3 %
Annual Billings (Current) (1)
5,086
5,851
6,148
6,300
6,347
6,663
6,863
7,206
7,422
7,793
8,027
43,974
Other Revenues
28
298
157
30
50
40
50
50
60
65
70
335
Grants/Bond Proceeds (2)
789
147
194
2,656
150
2,367
1,077
3,277
6,148
188
129
13,186
57,495
Total Revenues 5,903 6,296 6,499 8,986 6,547
9,070 7,990 10,533 13,630 8,046 8,226
EXPENDITURES
Operations & Maintenance
1,909
1,996
2,033
2,139
2,139
2,414
2,330
2,360
2,454
2,552
2,654
14,764
Debt Service (3)
316
305
303
303
303
301
300
298
285
283
282
2,031
Debt Service for PW Shops
116
703
220
251
560
560
560
560
2,711
Interfund Utility Tax(4) 10%
510
587
617
636
640
670
691
726
748
786
810
4,431
Engineering Labor(6)
344
217
208
573
310
590
607
621
640
659
679
3,796
27,451
Subtotal 3,079 3,105 3,161 3,767 4,095
4,195 4,179 4,565 4,687 4,840 4,985
SSWM Capital - CIP Program
2,662
2,117
3,098
4,963
4,406
4,400
2,751
5,504
7,639
2,151
2,202
24,647
52,098
Total Expenditures 5,741 5,222 6,259 8,730 8,501
8,595 6,930 10,069 12,326 6,991 7,187
FUND BALANCE
Change in Fund Balance(a)
162
1,074
240
256
(1,954)
475
1,060
464
1,304
1,055
1,039
5,397
Beginning Balance
2,063
1,252
2,603
2,603
2,999
1,045
1,520
2,580
3,044
4,348
5,403
1,045
6,442
Ending Balance 2,225 2,326 2,843 2,859 1,045
1,520 2,580 3,044 4,348 5,403 6,442
Fund Balance:
Reserved (b) 20% of revenue 834 1,230 1,261 1,266 1,230
1,230 1,341 1,383 1,451 1,496 1,572
1
1,572
Unreserved 1,391 1,096 1,582 1,593 (185)
290 1,239 1,662 2,897 3,907 4,871
4,871
Ending Balance 2,225 2,326 2,843 2,859 1,045
1,520 2,580 3,044 4,348 5,403 6,442
6,442
(a) Revenues in excess of (less than) expenditures
(b) Annual reserve balance requirement equals 20% of the prior year operating revenues.
2019 - 2024 Financial Planning Model XXXV11 1213112018
ATTACHMENT F-1
NOTES TO SURFACE WATER ENTERPRISE FUND
1) Reflects proposed rate increases of 5% in 2019, 3% in 2020, and 5% and 3% in 2021 through
2024. We will continue with the annual rate model review to confirm that the proposed Surface
Water rate increases are necessary.
The National Pollution Discharge Elimination System (NPDES) permit required by the State
Department of Ecology is having a significant impact on the Surface Water fund.
2) Potential grants and/or bond revenue. Included is the estimated Department of Ecology grant
for NPDES and King County Flood Control District Opportunity grants as well as significant
grant funding for the Chinook Wind Project.
3) Debt schedule includes PWTF loans and the 2006 Allentown Bond.
Debt Service includes:
Expires
2019
2020
2004 PWTF Duwamish (15%)
7/01/21
11,770.55
11,712.56
2004 PWTF Cascade View Const.
7/01/24
228,808.47
227,697.75
2004 PWTF Allentown (12%)
7/01/24
38,328.11
38,142.05
2006 Bond Allentown (12%)
12/31/26
21,752.10
22,034.19
2018 Public Works Shops (23%)
12/31/38
219,831.00
250,675.00
Total
4) An Interfund Utility Tax was approved in October 2009 for the water, sewer, and surface water
utilities. Gross revenues are currently taxed 10% through December 31, 2021.
5) The Working Capital Reserve Fund's policy was updated in 2012 per Resolution No. 1774 to
maintain an adequate fund balance in each of the enterprise funds. For the Enterprise Funds,
the unrestricted fund balance shall equal or exceed 20% of the previous year's revenue,
exclusive of significant non -operating, non -recurring revenues.
6) Cost of engineering to support capital projects, NPDES, and operation efforts in-house.
Surface Water Enterprise Fund
The City's Enterprise Funds account for utility operations that 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
Surface Water Enterprise Fund accounts for operations and capital
improvements for the City's storm drainage and surface water management
function. Surface Water projects are required to meet Federal, State and local
mandates. The largest contributor to the surface water enterprise fund is the
City of Tukwila.
2019 — 2024 Financial Planning Model XXXVI 11 14