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Home My WebLink About2020 Comprehensive Annual Financial Report (CAFR) City of Tukwila, Washington To provide superior services Caring The city of opportunity, that support a safe, inviting and Professional the community of choice healthy environment for our Responsive residents, businesses and guests. A community of inviting neighborhoods and vibrant business districts Cultivate community ownership of shared spaces. Build a broad and collaborative approach to preventing crime and increasing the sense of safety. Focus City planning and investments on creating a connected, dynamic urban environment. A solid foundation for all Tukwila residents Strive for excellent education, vocational supports, and personal growth opportunities Encourage maintenance, improvements and diversity in the City’s housing stock. A diverse and regionally competitive economy Embrace the City’s economic potential and strengthen the City’s role as a regional business and employment center. Strengthen the City’s engagement and partnership with the business community. Advance Tukwila’s interests through participation in regional partnerships. A positive community identity and image Improve the City’s ability to build trust and work with all members of the Tukwila community. Facilitate connections among Tukwila’s communities. Promote a positive identity and image of Tukwila. The City of Tukwila, Washington ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended December 31, 2020 Prepared by the City of Tukwila, Finance Department Vicky Carlsen, Finance Director Allan Ekberg, MAYOR TUKWILA CITY COUNCIL Kate Kruller, Council President Verna Seal Kathy Hougardy Zak Idan Cynthia Delostrinos Johnson CITY OF TUKWILA: 2020 ACFR TABLE OF CONTENTS ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended December 31, 2020 TABLE OF CONTENTS Page I.INTRODUCTORY SECTION Administrative Orga II.FINA NCIAL SECTION Basic Financial Statements Government-wide Financial Statements: Fund Financial Statements: Reconciliation of the Governmental Funds Balance Sheet to the Statement of Revenues, Expenditures, and Changes in Reconciliation of the Statement of Revenues, Expenditures, and Changes in Statement of Revenues, Expenses, and Changes in 39 Required Supplemental Information: Schedules of Revenues, Expenditures, and Changes in Schedule of Proportionate Share of t Combining and Individual Fund Financial Statements and Schedules: Combining Statement of Revenues, Expenditures, and Changes in Combining Statement of Revenues, Expenditures, and Changes in i CITY OF TUKWILA: 2020 ACFR TABLE OF CONTENTS TABLE OF CONTENTS - continued Page Combining Statement of Revenues, Expenditures, and Changes in Combining Statement of Revenues, Expenditures, and Changes in Facilities Urban Re Combining Statement of Revenues, Expenses, and Changes in STATISTICAL SECTION III. Schedule Net Position by Component .................................................................................................... 1 136 Changes in Net Position .............................................................................................................. 2 138 Fund Balances, Governmental Funds ......................................................................................... 3 140 Changes in Fund Balances of Governmental Funds ................................................................... 4 142 General Government Tax Revenues by Source ......................................................................... 5 144 Property Tax Levies and Collections ........................................................................................... 6 145 Assessed and Estimated Actual Value of Taxable Property ....................................................... 7 146 rect and Overlapping Governments ...................................................... 8 147 Principal Property Taxpayers ...................................................................................................... 9 148 Retail Sales Tax Collections by Sector ...................................................................................... 10 150 Sales Tax Rate Direct and Overlapping Governments ............................................................. 11 152 Ratios of Outstanding Debt by Type .......................................................................................... 12 154 Ratios of General Bonded Debt Outstanding ............................................................................ 13 156 Computation of Direct and Overlapping Debt ............................................................................ 14 157 Legal Debt Margin Information .................................................................................................. 15 158 Demographic Statistics .............................................................................................................. 16 160 Principal Employers ................................................................................................................... 17 161 Full-Time Equivalent City Government Employees by Department .......................................... 18 162 Operating Indicators by Function ............................................................................................... 19 163 Capital Assets by Function ........................................................................................................ 20 164 ii CITY OF TUKWILA: 2020 ACFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS ADMINISTRATIVE ORGANIZATIONAL STRUCTURE AND PRINCIPAL OFFICIALS COUNCIL COMMITTEES COUNCIL PRESIDENT Kate Kruller FINANCE & GOVERNANCE COMMITTEETRANSPORTATION & INFRASTRUCTURE SERVICES Zak Idan, ChairpersonVerna Seal, Chairperson Kathy Hougardy, MemberDe'Sean Quinn, Member Cynthia Delostrinos-Johnson, MemberThomas McLeod, Member COMMUNITY SERVICES & SAFETYPLANNING & COMMUNITY DEVELOPMENT Cynthia Delostrinos-Johnson, ChairpersonKathy Hougardy, Chairperson De'Sean Quinn, MemberVerna Seal, Member Zak Idan, MemberThomas McLeod, Member 1 CITY OF TUKWILA: 2020 ACFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS 2 City of Tukwila 6200 Southcenter Blvd, Tukwila, WA 98188 Allan Ekberg, Mayor August 26, 2021 Honorable Allan Ekberg, Mayor Members of the Tukwila City Council Citizens of Tukwila City of Tukwila 6200 Southcenter Boulevard Tukwila, WA 98188-2599 Subject: TRANSMITTAL OF 2020 ANNUAL COMPREHENSIVE FINANCIAL REPORT year ended December 31, 2020. This transmittal letter provides an overview of the report and the financial condition of the City. State law requires that cities publish financial statements annually in conformity with Generally Accepted Accounting Principles (GAAP), which are audited in accordance with Washington (RCW) 43.09.230. The ACFR has several significant uses. First, it provi general public and taxpayers. Second, it is used as a reference by bond buyers and rating agencies to ness. Finally, the ACFR is a series of financial safeguarded and funds are expended as they were legally appropriated in the adopted budget. The Tukwila Finance Department prepares the report and accepts responsibility for the accuracy, completeness, and fairness of presentation of the information included. The data is believed to be accurate in all material respects, and it is believed that the data is presented in a manner that fairly sets forth the results of operations and financial position of the City, as measured by the financial activity of conformance with GAAP and in conformance with financial reporting standards issued by the Governmental Accounting Standards Board (GASB). City management has developed and evaluated a comprehensive internal control structure that is designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance is based on the assumption that the cost of internal controls should not exceed the benefits expected to be derived. As management, we attest that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects. 3 CITY OF TUKWILA: 2020 ACFR LETTER OF TRANSMITTAL As a recipient of federal, state and county financial assistance, the City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act amendments of 1996 and U.S. Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards includes the Schedule of Expenditures of Federal Awards, findings, and recommendations, if applicable, e audit for the fiscal year ended December 31, 2020 provided no instances of material weaknesses in the internal control structure or significant violations of applicable laws. provides a narrative introduction, overview, and analysis to accompany the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. PROFILE OF THE CITY Incorporated in 1908, the City of Tukwila is in the heart of the Puget Sound region, 12 miles south of downtown Seattle, 17 miles north of Tacoma, and one mile east of Seattle-Tacoma International Airport. Tukwila has a small residential population of 21,360, making it the 72 largest of 289 cities in the State nd of Washington. However, the daytime shopper/visitor and working population can reach over 150,000 during the holiday shopping season. The City of Tukwila is a non-charter 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 to serve a four-year term. Councilmembers are elected at large rather than by district and are responsible for establishing the general guidelines and policies for the City. The Mayor appoints and direction set by the Mayor and City Council. 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. The City operates its own municipal 18-hole golf course and provides sewer, water, and surface water services. Tukwila 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. Since the 2009-2010 biennium, the City has adopted a biennial budget in accordance with RCW 35A.34. The Council is required to adopt a biennial budget prior to the first of each odd-numbered calendar year. Budget reviews are conducted at mid-biennium and any changes for the second half of the biennium are financial planning and control. The budget is adopted at the fund level and any increases or decreases to a fund must be authorized by Council. Appropriation changes within a fund may be authorized by the Mayor. The General Fund, two special revenue funds, three debt service funds, and eight capital project funds are included in the biennially appropriated operating budget and have budget to actual statements presented for 2020. As demonstrated by the statements and schedules included in the financial section of this report, the city continues to meet its responsibility for sound financial management. 4 CITY OF TUKWILA: 2020 ACFR LETTER OF TRANSMITTAL LOCAL ECONOMY Tukwila has a strong business community, largely due to its central location in the Puget Sound interchanges (I-5 and I-405), excellent public transportation including the Sounder commuter train, Link light rail, and multiple bus routes including two Rapid Ride lines. The City also has quick, easy access to Sea-Tac International Airport, King County International Airport, and the Ports of Seattle and Tacoma. The pandemic that started in early 2020 affected many economies around the world, including thrived. Overall, Tukwila continued to have a strong business economy and we anticipate it will return entertainment, hotels, restaurants, retail, and some services such as childcare and taxis. Even within these sectors some types of businesses did well. For instance, retailers in home improvement. As another example, restaurants with only indoor dining suffered while those with convenient take-out did well. Although some businesses had very little chance to find success, such as large hotels serving group travel, other businesses were able to adapt such as card rooms that opened in tents. Pre-pandemic, Tukwila had over 40,000 jobs and more people were employed in the City of Tukwila than in 27 of the 39 counties in the State of Washington. Typically, approximately one third of the jobs are retail, one third are in manufacturing, and the remainder span everything from entertainment to real estate with a heavy emphasis in aerospace. We fully anticipate returning to those levels post- pandemic. Although the Boeing Company had endured many challenges over the past few years, it still employs thousands of people in Tukwila. Boeing is going through significant change, but we anticipate the aerospace and technology sectors to continue with the strength of industry leaders such as Blue Origin located in an adjacent city. We are home to the headquarters of industry leaders and brands such as BECU, Continental Mills, La Panzanella, LeoStella, Pop Gourmet, Red Dot Corporation, Sabey Corporation, Sahale Snacks, and Seattle Chocolates. Tukwila is also home to hundreds of small Tukwila is a retail powerhouse with one of the largest local retail sales tax bases in the state of Washington. Anchored by Westfield Southcenter, which is the largest mall in the Pacific Northwest, Tukwila generated almost $1.9 billion dollars in taxable retail sales in 2020. The total retail sales tax revenue amounted to $16.3 million in 2020, representing a decrease of 18.1% from the $19.9 million collected in the prior year. LONG-TERM FINANCIAL PLANNING The City uses its six-year financial planning model and Capital Improvement Program (CIP) as long-term financial planning tools. These tools, along with regular review and revisions to the financial policies, ensure the City incorporates current economic conditions and financial projections into its long-range financial plans. In mid-2015, the City revised its financial reserve policy to increase the General Fund reserve level from 10% to 18% and added a one-time 10% revenue reserve in the Contingency Fund. otection from future downturns in the economy. increase of 6.5% from 2019, allowing the City to pursue a long-term capital investment program. The icipates approximately $118 million in general government capital projects, with only $7.39 million of that paid by City funding sources. These 5 CITY OF TUKWILA: 2020 ACFR LETTER OF TRANSMITTAL improvements are vital to the economic health of the City which must continue to efficiently move employees, shoppers, and goods into and out of the area. MAJOR INITIATIVES The City made significant investments of time and financial resources into key public projects in 2020. A community of inviting neighborhoods and vibrant business districts A solid foundation for all Tukwila residents A diverse and regionally competitive economy A high-performing and effective organization, and A positive community identity and image The City of Tukwila completed construction of 53 Avenue South, from South 137 Street to South 144 rdthth Street, which included new street improvements, drainage, curbs, gutters, and driveway adjustments. It also included new sidewalks to this residential corridor, as well as undergrounding utility wires. The City issued bonds in a prior year to cover the General Fund portion of the project, the bulk of the financing. Water, Sewer, and Surface Water fees collected by the City paid for the corresponding improvements. A state Transportation Improvement Board grant was also instrumental in the funding of this project. The City substantially completed construction of the Boeing Access Road over Airport Way Bridge Seismic Retrofit Project with funding from the federal Bridge Replacement Advisory Committee (BRAC). BRAC funded 86.5% of design and 100% of construction. The City also approved and is funding 30% design of the 42 Avenue South Bridge Replacement. This major bridge serves the BNSF railroad and nd a residential community and has reached its life span. With partial design underway, this will facilitate the City to be adequately prepared to solicit grant funds from both the state and federal government with The City of Tukwila has an on-going extensive rehabilitation program in the Sewer Fund for the Southcenter Commercial Business District. As the sewer mains are reaching their 50-year life span, the City has budgeted over $1 million for 3 years to reline the asbestos concrete pipes in the Southcenter area. The relining of the sewer pipes will extend the life span approximately 50 years and reinforce the strength with little impact to the roadway and minimal excavation. The Surface Water Fund completed design of the East Marginal Way South Stormwater Outfalls Project with construction scheduled to begin in early 2021. The East Marginal Way South Stormwater Outfalls Project includes installation of a new pump station and force main, installing a water quality vault and swale to treat roadway runoff and lining approximately 400 feet of the Boeing Z-line to reduce the likelihood of contaminated The City continued its partnerships with Tukwila Village Development Associates (TVDA) and the King County Library System (KCLS) to develop six acres of City-owned land on Tukwila International Boulevard at South 144th Street, known as Tukwila Village. The City started purchasing the property in 1999 and sold it to TVDA and KCLS in phases in 2015, 2017 and 2019. In 2015 KCLS opened the new Tukwila Library. In 2018 TVDA opened two mixed-use buildings comprising apartments for low income seniors and office space. In 2020 TVDA opened the third mixed-use apartment building. TVDA is scheduled to complete construction and open the fourth apartment building in summer 2021 at which time construction will be complete. When fully open, the development will include 398 apartments for seniors, 6 live/work units, 13,000 square feet of office, 16,000 square feet of retail, a community meeting space with plaza, and the library. When completed, the entire Tukwila Village project cost will be over $120 million. 6 CITY OF TUKWILA: 2020 ACFR LETTER OF TRANSMITTAL The Public Safety Plan continues to be a primary focus for the City, with voters approving $77 million in bonds in 2016 to finance a new Justice Center, fire stations, and replacement fire equipment and apparatus. The Plan also includes a new consolidated Public Works facility. The new Tukwila Justice Center and new Fire Stations 51 and 52 are complete and in use. Phase one of the consolidated Public Works facility has begun. Improvements to an existing building are underway and it is expected that the City will move its Fleet and Facilities Divisions into the new facility in 2022. This project will remain a high priority. AWARDS AND ACKNOWLEDGEMENTS 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 that ended December 31, 2019. This was the 33rd consecutive year that Tukwila has achieved this prestigious award. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive 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 annual and we are submitting it to the GFOA to determine its eligibility for another certificate. 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 assistance with the preparation and review of this report 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 fiscally sound and progressive manner. The efficient assistance of examiners from the Office of the State Auditor is Financial Report take great pride in their work, and the entire team who worked on this project is to be commended. Respectfully submitted, Vicky Carlsen, CPA Finance Director 7 CITY OF TUKWILA: 2020 ACFR LETTER OF TRANSMITTAL 8 CITY OF TUKWILA: 2020 ACFR LETTER OF TRANSMITTAL 9 CITY OF TUKWILA: 2020 ACFR LETTER OF TRANSMITTAL 10 Office of the Washington State Auditor Pat McCarthy S REPORT ON THE FINANCIAL STATEMENTS Mayor and City Council City of Tukwila Tukwila, Washington REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund informationoftheCity of Tukwila,as of and for the year ended December 31, 2020, and the related notes to the financial statements, which isted in the table of contents. nts Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Our responsibility is to express opinions on these financial statements based on our audit.We conducted ourauditin accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Cityinternal control. Accordingly, we express no such opinion.An audit also includes evaluating 11 the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide abasis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial positionof the governmental activities, the business-type activities, each major fund and the aggregate remaining fund informationoftheCity of Tukwila, as of December 31, 2020, and the respective changes in financial position and, where applicable, cash flowsthereof for the yearthen ended in accordance with accounting principles generally accepted in the United States of America. Matters of Emphasis As discussed in Note 14 to the 2020 financial statements, the full extent of the COVID- direct or indirect financial are also described in Note 14. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted discussion and analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our auditwas conducted for the purpose of forming opinionson the financial statements that collectively comprise the Cityas a whole.The combining financial statements and schedulesarepresented for the purposes of additional analysis and arenot a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. This information has been subjected to auditing procedures applied in the audit of the basic financial 12 statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Introductory and Statistical Sectionsarepresented for purposes of additional analysis and arenot a required part of the basic financial statements of the City.Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we will also issue our report dated August 26, 2021, compliance with certain provisions of laws, regulations, contracts and grant agreements andother matters.The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standardsancial reporting and compliance. Sincerely, Pat McCarthy,State Auditor Olympia, WA August 26, 2021 13 CITY OF TUKWILA: 2020 ACFR 14 CITY OF TUKWILA: 2020 ACFR For the Year Ended December 31, 2020 for the year ended December 31, 2020. The intent of this performance as a whole. Readers should also review the transmittal letter, and the basic financial statements to performance. FINANCIAL HIGHLIGHTS tal assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $336.1 million. Of this amount, $47.2 million represents unrestricted net position, which may be used to meet creditors. million, or 2.3%. Governmental activities increased $3.6 million partially due to continued growth in property taxes and cost reduction measures in response to the pandemic. Business-type activities increased $4.0 million, primarily in the surface water fund, which At the close of the current fiscal year, the City of balances of $40.0 million, a decline of $46.5 million (53.7%). Approximately 46.2% ($18.5 million) of the OVERVIEW OF THE FINANCIAL STATEMENTS l statements are presented in three parts: 1. Government-wide financial statements 2. Fund financial statements 3. Notes to the financial statements This report also includes supplementary information intended to furnish additional detail to support the basic financial statements. Government-wide Financial Statements overall financial status, in a manner similar to private-sector business. The Statement of Net Position presents financial information on all t inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Tukwila is improving or deteriorating. The Statement of Activities year. The statement distinguishes revenue generated by specific functions from revenue provided by taxes and other sources not related to a specific function. The revenue generated by the specific functions (charges for services, grants, and contributions) is compared to the expenses for those functions to show the degree to which each function supports itself or relies on taxes and other general funding sources for support. All activity on this statement is reported on the accrual basis of accounting, requiring that revenues are reported when they are earned and expenses are reported when they are incurred, regardless of when cash is received or disbursed. Items such as (but not limited to) uncollected taxes, unpaid vendor invoices for goods or services received during the year, and earned but unused vacation leave are included in the statement of activities as revenue and expenses even though no cash has changed hands. 15 CITY OF TUKWILA: 2020 ACFR Both 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 (finance, executive, legal, court, and human resources), public safety (police and fire), physical environment, economic environment, transportation, mental/physical health, and culture and recreation. The City surface water utilities, and a municipal golf course. Governmental activities are primarily supported by taxes, charges for services, and grants. Business-type activities are primarily self-supporting through user fees and charges. Fund Financial Statements The annual financial report includes fund financial statements in addition to the government-wide financial statements. A fund is a fiscal and accounting entity with a self-balancing set of accounts used to account for specific activities or meet certain objectives. The City of Tukwila Funds are often set up in accordance with special regulations, restrictions or limitations. The City of Tukwila, like other state and local governments, uses fund accounting to ensure and show compliance with finance-rela into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds are used to account for essentially the same functions that are reported as governmental activities in the government-wide financial statements. The governmental fund statements focus on the near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the year. The information in the governmental fund statements can be us financing requirements and immediate fiscal health. Comparing the governmental fund statements with the government-wide statements can help the reader better understand the long-term financing decisions. 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 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. The City maintains fifteen individual governmental funds. Of these, five are considered major (the general fund, the arterial street fund, the local improvement district #33 fund, city facilities and the public safety plan fund) and are Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balances. The remaining governmental funds are combined into a dual fund data for each of these non-major governmental funds is presented in the combining and individual fund statements and schedules section of this report. The City maintains budgetary control over its operating funds through the adoption of a biennial budget. Budgets are adopted at the fund level according to state law. A budgetary comparison schedule is presented for the general fund in the Required Supplemental Information section of the report. Other budgetary comparison schedules are included following the other governmental f Proprietary funds are used by governments to account for their business-type activities and use the same basis of accounting as utilized in private industry. Business-type activities provide specific goods or services to a group of customers that are paid for by fees charged to those customers. There is a direct relationship between the fees paid and the services rendered. The City has two types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to account for goods and services provided to citizens, while internal service funds are used to account for goods and services provided internally to various City departments. The same basis of accounting is used for proprietary funds in both the government-wide and individual fund statements. 16 CITY OF TUKWILA: 2020 ACFR Enterprise funds report the same functions presented as business-type activities in the government-wide utilities (water, sanitary sewer, surface water) as well as the City-owned golf course. Internal service funds are an essential accounting tool used to accumulate and allocate costs internally among the funds to account for its fleet of vehicles, and its insurance premiums for active employees and LEOFF 1 retirees. Internal service fund activities are predominantly governmental and have been included in the governmental activities columns of the government-wide statements. Individual fund data for the internal service funds is provided in the form of combining statements in the combining and individual fund statements and schedules section of this report. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reported in the government-wide financial statements because the resources of those funds are rams. The accounting used for fiduciary funds is much like that used for proprietary funds. reports resources held by Tukwila in a custodial capacity for individuals, private organizations, and other governments. 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 immediately following the fund financial statements. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information including a budget and actual progress in funding its obligation to provide pension and OPEB benefits to its former employees. Additional pension benefit information is found in Note 8. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information on pensions and OPEB. 17 CITY OF TUKWILA: 2020 ACFR GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position over time, may serve as a usef case of the City of Tukwila, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $336.1 million at the close of the most recent fiscal year. Total net position increased by $7.6 million (2.3%) when compared to 2019. CITY OF TUKWILA'S NET POSITION (in thousands) Governmental ActivitiesBusiness-type ActivitiesTotal 202020192020201920202019 Current and other assets$78,595$135,142$27,168$24,318$105,763$159,461 Capital assets, net of accumulated depreciation335,241295,34572,90572,735408,146368,080 Total assets413,836430,487100,07497,054513,909527,541 Deferred Outflows of Resources4,5803,6282912784,8703,905 Long-term liabilities151,260154,5043,9594,703155,219159,207 Net pension liability4,9455,1819409875,8856,169 Total OPEB liabilities7,15612,117 - -7,15612,117 Other liabilities9,33315,83167457010,00716,401 Total liabilities172,695187,6335,5736,261178,268193,894 Deferred Inflows of Resources4,0468,3663206044,3668,970 Net position Net investment in capital assets201,887201,64969,23968,362271,126270,011 Restricted17,78418,693 - -17,78418,693 Unrestricted22,00317,77325,23222,10547,23539,877 Total net position$241,675$238,115$94,471$90,467$336,145$328,582 net position ($271.1 million or 80.7%) reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, vehicles, and infrastructure), less any related outstanding debt that was used to acquire those assets. The City uses these capital assets to provide a variety of services to citizens. Accordingly, these assets are not available for future spending. Although investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. illion or 5.3%) represents resources that are subject to external restrictions on how they may be used. The business-type activities do not report any restrictions, so the entire $17.8 million is restricted in governmental activities funds. The majority is related to tourism, net pension assets, and ongoing debt obligations. The remaining net position balance ($47.2 million, or 14.1%) is unrestricted At the end of the current fiscal year, the City of Tukwila continued to report positive balances in all categories of net $7.6 million (2.3%) from the prior fiscal year. The reasons for this overall increase are discussed in the following sections for governmental activities and business-type activities. 18 CITY OF TUKWILA: 2020 ACFR CITY OF TUKWILA'S CHANGES IN NET POSITION (in thousands) Governmental ActivitiesBusiness-type ActivitiesTotal 202020192020201920202019 Revenues: Program revenues Charges for services$13,735$14,664$23,720$26,240$37,456$40,904 Operating grants and contributions1,5677941222291,6891,023 Capital grants and contributions1,4162,5781,4052812,8212,859 General revenues Property taxes19,83918,390- - 19,83918,390 Sales and use taxes17,10220,688- - 17,10220,688 Hotel/Motel taxes292819- - 292819 Utility taxes4,2863,644- - 4,2863,644 Interfund utility taxes2,1542,359- - 2,1542,359 Business taxes4081,299- - 4081,299 Excise taxes3,3245,336- - 3,3245,336 Investment earnings6801,247- - 6801,247 Miscellaneous2,0405,378- - 2,0405,378 Total revenues66,84377,19625,24726,74992,091103,946 Expenses: General government10,79310,244- 10,79310,244 Public safety25,09027,403- 25,09027,403 Utilities- 861-861 - Transportation12,75718,442 12,75718,442- Economic environment4,4274,516 4,4274,516- Culture and recreation5,5236,076 5,5236,076- Interest on long-term debt4,9273,009 4,9273,009- Water/sewer - -14,11115,75614,11115,756 Foster golf course -4,9915,9654,9915,965 - Surface water -1,9082,1281,9082,128 - Total expenses63,51770,55121,01023,85084,52794,401 Increase (decrease) in net position before3,3266,6454,2372,8997,5649,545 transfers Transfers233102(233)(102) - - Change in net position3,5606,7474,0042,7977,5649,545 Net position-beginning of period238,115231,36790,46787,669328,582319,037 Net position-end of period$241,675$238,115$94,471$90,467$336,145$328,582 Governmental Activities During the current fiscal year, net position for governmental activities increased $3.6 million (1.5%) from the prior fiscal year for an ending balance of $241.7 million. The primary reasons for this are: Property taxes increased $1.5 million (7.8%) from the prior year. In 2016, voters approved an excess property tax levy to be used for public safety purposes. The increase in property taxes is primarily related to the excess levy for debt service of the 2016 & 2019 UTGO bonds. This was the fourth year the City received the proceeds from that levy. Retail sales and use taxes totaled $17.1 million, which is a decrease of $3.6 million (17.3%) compared to the prior year. Revenue from excise taxes also saw a decline of $2.0 million (37.8%) compared to the prior year. These declines were related to the economic shutdowns in response to the pandemic. Expenses were reduced by $7.0 million (9.9%) due to City cost cutting measures based on the decreased revenue forecast due to the pandemic. 19 CITY OF TUKWILA: 2020 ACFR υЌЉͲЉЉЉͲЉЉЉ tƩƚŭƩğƒƩĻǝĻƓǒĻƭ υЋАͲЉЉЉͲЉЉЉ 9ǣƦĻƓƭĻƭ υЋЍͲЉЉЉͲЉЉЉ υЋЊͲЉЉЉͲЉЉЉ υЊБͲЉЉЉͲЉЉЉ υЊЎͲЉЉЉͲЉЉЉ υЊЋͲЉЉЉͲЉЉЉ υВͲЉЉЉͲЉЉЉ υЏͲЉЉЉͲЉЉЉ υЌͲЉЉЉͲЉЉЉ υЉ 20 CITY OF TUKWILA: 2020 ACFR Business-Type Activities s for the current fiscal year were positive in that overall net position increased by $4.0 million (4.4%) to reach an ending balance of $94.5 million. The overall growth is attributable to the following factors: In the Water and Sewer Utilities, operating revenues declined $800 thousand and $1.9 million, respectively, while operating expenses stayed relatively the same as the prior year. This resulted in an operating loss in the Water and Sewer Utilities of $922 thousand and $1.7 million, respectively. These declines were a result of shutdowns in response to the pandemic and the lower utility consumption of closed businesses. In the Surface Water Utility, total net position increased $2.8 million (6.8%) primarily due to a 3.0% rate increase. Surface Water was not impacted as much by the economic shutdowns since they are billed with the county property taxes. Overall operating income of business-type activities was $2.5 million, a decline of $2.5 million (50%) from 2019. Operating revenue declined in 2020 by $2.25 million, accompanied by an increase in overall operating expenses of $288 thousand which was primarily attributable to the Surface Water Utility. These declines are attributed to the shutdowns in response to the pandemic. Of the $94.5 million total net position, $25.2 million (26.6%) is unrestricted and each utility can utilize their portion for any purpose. This operating balance is necessary for future planned infrastructure replacements and repairs. The following chart shows the relative net position balances for each business-type fund: BUSINESS-TYPE NET POSITION - BY FUND The majority of net position in the Cityasset infrastructure, such as water and sewer mains, and the golf course land. As such, most of the net position is not available to support the ongoing expenses of the funds. The following chart contrasts the total net position to the spendable portion of net position for each enterprise fund: 21 CITY OF TUKWILA: 2020 ACFR COMPARISON OF TOTAL NET POSITION TO SPENDABLE NET POSITION -BUSINESS-TYPE FUNDS The following chart depicts the revenues and expenses for business-type funds: BUSINESS-TYPE ACTIVITY REVENUES & EXPENSES (before Capital Contributions & Transfers) 22 CITY OF TUKWILA: 2020 ACFR FINANCIAL ANALYSIS OF GOVERNMENTAL FUNDS rt on near-term inflows, outflows, and balances of spendable financial requirements in the near future. Specifically, unassigned fund balance may serve as a useful measure of a use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City of Tukwila itself, or a group or individual that has been delegated authority to assign resources for use for a particular purpose. s had combined fund balances of $40.0 million, a decrease of $46.5 million (53.8%). The decline is primarily due to capital expenditures related to the Public Safety Plan construction projects which were utilizing bond proceeds from the prior year. The change in fund balance for governmental funds compared to 2019 is as follows: General Fund ($717,993) Arterial Street Fund ($664,663) Local Improvement District #33 ($128,914) Public Safety Plan ($41,140,475) City Facilities ($960,282) Other Governmental Funds ($2,912,016) The General Fund is the primary operating fund of the City. All receipts and payments of ordinary City operations are processed through this fund unless they are required to be accounted for in another. At the end of 2020, the general fund had a fund balance of $19.4 million, with $18.5 million (95.4%) of the balance classified as unassigned to $18.5 million in 2020 due primarily to decreased revenues as a result of the economic shutdowns during the pandemic. The Arterial Street Fund decrease in fund balance is related to the 2019 cancellation of the Strander extension project. Due to the cancellation, the City must repay $1.2 million of previously received grant funds in 2019 and 2020 (approx. $622 thousand per year). The City Facilities fund balance decrease is due to capital outlays of $998 thousand, which utilized bond proceeds from the prior year. The following chart shows the relative fund balances for governmental funds: 23 CITY OF TUKWILA: 2020 ACFR The general fund revenue decreased a total of $5.2 million, which is combined from the following sources: GENERAL FUND REVENUE INCR 24 CITY OF TUKWILA: 2020 ACFR FINANCIAL ANALYSIS OF PROPRIETARY FUNDS addressed in the discussion of the Unrestricted net position in business-type activities ended 2020 at $25.2 million, an increase of almost $3.1 million (14.0%) from 2019. GENERAL FUND BUDGETARY HIGHLIGHTS The City budgets biennially by adopting a budget at the end of the preceding biennium, and then making adjustments as necessary via budget amendments throughout the next two years. In 2020, the City faced a serious financial challenge regarding the COVID-19 pandemic. Facing a significant budget shortfall due to reduced sales tax revenue, the City implemented a hiring freeze and furloughed employees while departments scrubbed their budgets to save costs. Training, travel, and overtime (for non-public safety employees) are examples of expenditures that were eliminated. In order to preserve t cost savings, these expenditure eliminations were not included in the budget amendments. The only exceptions are the revenues and expenditures eligible for the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The following is a summary of significant budget amendments that occurred in 2020: s needed for the required reserve levels in the Employee Healthcare Plan. Of this amount, $346 thousand was related to General Fund departments. A transfer from the contingency fund of $700 thousand in order to offset revenue declines. The City received $942 thousand in CARES Act funding. Funds were used to offset the costs directly associated with responding to the COVID-19 health emergency. $550 thousand of new solid waste utility tax revenue was transferred to the residential street fund to support ndrd the 42 and 53 Street roadway projects. 25 CITY OF TUKWILA: 2020 ACFR CAPITAL ASSETS mental and business-type activities as of December 31, 2020 totaled $408.1 million (net of accumulated depreciation), an increase of $40.1 million (10.9%) from 2019. This investment in capital assets includes land, buildings, improvements, machinery and equipment, construction in progress, utility transmission/distribution systems, roads, bridges, and infrastructure. CITY OF TUKWILA'S CAPITAL ASSETS (net of depreciation) Governmental ActivitiesBusiness-Type ActivitiesTotal 202020192020201920202019 Land$ 51,719,374$ 36,219,323$ 2,346,230$ 2,346,230$ 54,065,604$ 38,565,553 Buildings 69,894,819 9,538,590 6,820,055 7,191,850 76,714,875 16,730,441 Other Improvements 7,511,071 8,415,170 60,293,924 61,730,348 67,804,995 70,145,518 Machinery and Equipment10,393,6129,485,747750,246346,33811,143,8589,832,084 Infrastructure144,600,533150,572,613 - 144,600,533150,572,613- Construction in Progress51,121,23281,113,0602,695,0091,120,65753,816,24082,233,717 Total$ 335,240,641$ 295,344,503$ 72,905,464$ 72,735,424$408,146,105368,079,926$ More detailed information on capital assets is provided in Note 6 to the financial statements. Capital asset events during the current fiscal year included the following: Governmental Activities: - Public Safety Plan. Two major construction projects were placed in service during the year, the Justice Center and Fire Station 51. Current year expenditures on these two projects were $29.4 million and when placed in service accounted for $61 million added to buildings and $15.5 added to land. The third major project within the Public Safety Plan, Fire Station 52, added $14.8 million in construction in progress and will be placed in service in early 2021. Additionally, machinery & equipment related to the Public Safety Plan added $1.4 million in capital assets, including an SCBA fill station and fixtures and equipment related to the new Justice Center and Fire Stations. rd Ave and 42 nd Ave - Residential and Arterial Street Funds. Two previously placed in service projects, 53 added $381 thousand and $350 thousand, respectively. The costs included infrastructure, traffic signals and other improvements related to these projects. Other ongoing street projects during the year included the BAR bridge over Airport Way, the 42 nd Ave bridge replacement and West Valley Highway, accounting for a combined $1.2 million in new construction in progress. - Public Works Shop. Improvements continued at the future consolidated Public Works Shop, with $756 thousand added to Construction in Progress during the year. - Equipment. The Fleet fund added $1.7 million in new equipment during the year and disposed of $407 thousand in net assets related to the golf course withdrawing from the fund. - Construction in Progress. Construction in Progress decreased $30 million compared to the prior year. While current year construction in progress additions were $17.2 million, $47.2 million of completed projects were recorded as land, building, or site improvements. The decrease is largely attributed to the two Public Safety Plan projects. Business Type Activities: - Utility improvements: Current year capital expenditures totaled $2.2 million. The Riverton flapgate project added $1.3 million while small drainage, outfalls and other projects accounted for $912 thousand. - Golf Course: The golf course added $109 thousand in capital assets including irrigation system improvements ($70 thousand) and new course maintenance equipment ($39 thousand). Additionally, during the year, the golf course withdrew their assets from the Fleet maintenance fund, choosing to maintain the equipment themselves; this added $407 thousand of machinery and equipment to the fund. - Construction in Progress increased $1.5 million compared to the prior year, with $2 million in additions to CIP and $500 thousand in prior year projects placed in service. 26 CITY OF TUKWILA: 2020 ACFR LONG-TERM DEBT The City had total long-term obligations outstanding of $151.1 million at the end of the current fiscal year. Of this amount, $123.9 million is general obligation bonds which is backed by the full faith and credit of the City, $4.5 million of general obligation direct placement/borrowings, $997 thousand is revenue bonds for the water/sewer and surface water utilities, $2.6 million in public works trust fund loans, $4.7 million due to other governments, $10.9 million premium on bonds, and the remaining $3.4 million is special assessment bonds which were issued to improve Governmental ActivitiesBusiness-type ActivitiesTotal 202020192020201920202019 General obligation bonds$ 123,916,000$ 128,151,000$ -$ 123,916,000-$ $ 128,151,000 General obligation- direct placement/borrowings4,486,326 2,592,788 - 4,486,326- 2,592,788 Revenue bonds - - 997,413 1,154,027 997,413 1,154,027 Premium on bonds issued 10,889,618 11,545,350 - 10,889,618- 11,545,350 Special assessment bonds 3,430,000 3,910,000 - 3,430,000- 3,910,000 Public Works Trust Fund Loans - 2,649,119- 3,248,586 2,649,119 3,248,586 Due to other governments 4,745,772 4,921,702 - 4,745,772- 4,921,702 $ 147,467,716$ 151,120,840$ 3,646,532$ 4,402,613$ 151,114,248$ 155,523,453 More detailed information on long-term debt, including debt limitations, is provided in Note 10 to the financial statements. 27 CITY OF TUKWILA: 2020 ACFR ECONOMIC FACTORS AND THE UPCOMING BIENNIAL BUDGET he COVID-19 pandemic, which impacted nearly every other community in our nation. Fortunately, the federal government invested trillions of dollars toward the recovery. Some of the most significant investments were for the COVID-19 vaccines, direct payments to taxpayers, unemployment compensation, tax credits, and low interest loans and grants for businesses. The State of Washington, local governments, and the private sector also took significant steps to help the economy recover from the pandemic. Given these interventions, the economy for the Puget Sound region is recovering well. For example, in May of 2020 during the height of business closures, the percent of workers in King County receiving unemployment compensation reached over 14%. By the end of May 2021 that rate was down to 5.5% and we anticipate it will continue to decrease over the next few months because employers are hiring and some unemployment benefits will end this fall. Starting in March 2020 the State required many businesses to be closed as a way to reduce the spread of the virus. As the year progressed some of those restrictions were lifted. In 2021 the new vaccines became available and in July 2021 over 70% of all Washington State residents at least 16 years old had received to return to full activity since there still are limitations on international travel, it will take a few months to plan and schedule large events and meetings, and many businesses have learned how to meet remotely. However, we see positive signs in all sectors. Many of our businesses have returned to normal operations and we expect the vast majority of our businesses to be at normal activity levels in late 2021. Preparation of the 2021-2022 biennial budget occurred during the current COVID-19 pandemic. The City took a conservative approach when forecasting anticipated revenues. Key financial decisions regarding cost reductions to address the revenue gaps were a primary focus of the budget process. The City is committed to monitor and control its expenses in order to liv REQUESTS FOR INFORMATION This financial report is designed to provide a general overviewfinances for readers with an is report, or requests for additional information, may be addressed to the Finance Director, City of Tukwila, 6200 Southcenter Blvd, Tukwila, WA 98188-2544. 28 CITY OF TUKWILA: 2020 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF NET POSITION DECEMBER 31, 2020 GovernmentalBusiness-Type ActivitiesActivitiesTotal ASSETS: Cash and cash equivalents41,336,069$ 22,627,894$ 63,963,962$ Investments996,107 2,106,948 3,103,055 Taxes receivable5,869,135 - 5,869,135 Other receivables538,901 1,783,045 2,321,946 Due from other governmental units821,557 336,627 1,158,183 Inventory of materials and supplies13,838 52,656 66,494 Restricted cash and cash equivalents1,224,192 170,817 1,395,008 Notes receivable -Current233,818 - 233,818 Notes receivable - Noncurrent3,637,678 90,251 3,727,928 Real property held for resale2,539,910 - 2,539,910 Investment in joint ventures10,519,961 - 10,519,961 Non-depreciable capital assets102,840,605 5,041,239 107,881,844 Depreciable capital assets (net of accumulated depreciation)232,400,036 67,864,225 300,264,261 Net Pension asset10,863,802 - 10,863,802 Total Assets413,835,608 100,073,700 513,909,308 DEFERRED OUTFLOWS OF RESOURCES: Deferred loss on refunding94,771 25,106 119,878 Deferred outflows related to OPEB374,959 - 374,959 Deferred outflows related to pensions4,109,886 265,397 4,375,283 Total Deferred Outflows Of Resources4,579,616 290,503 4,870,120 LIABILITIES: Accounts payable 3,374,744 248,343 3,623,087 Accrued wages and benefits payable1,943,836 165,681 2,109,517 Accrued interest payable591,785 8,568 600,352 Unearned revenue 186,050 7,145 193,195 Total OPEB liability-current 466,310 - 466,310 Other liabilities 1,690,418 244,575 1,934,993 IBNR reserve 1,080,000 - 1,080,000 Bonds and other debt payable Due within one year 3,998,669 756,501 4,755,170 Due in more than one year 147,261,581 3,202,409 150,463,989 Net pension liability 4,945,187 940,222 5,885,409 Total OPEB liability-non current 7,156,408 - 7,156,408 Total Liabilities17 2,694,987 5,573,443 178,268,430 DEFERRED INFLOWS OF RESOURCES: Deferred inflows related to pensions 3,440,421 320,139 3,760,560 Unavailable revenue-special assessment 1,243 - 1,243 Business taxes received in advance 204,031 - 204,031 Deferred revenue-other 388,521 - 388,521 Deferred revenue-developer agreements 11,490 - 11,490 Total Deferred Inflows Of Resources4,045,707 320,139 4,365,846 NET POSITION: Net investment in capital assets 201,887,136 69,238,961 271,126,097 Restricted for: Debt service 1,611,181 - 1,611,181 Tourism promotion 1,712,389 - 1,712,389 Arterial street improvements 1,010,023 - 1,010,023 Drug investigation and enforcement 331,534 - 331,534 Land and park acquisition, development 1,076,495 - 1,076,495 Pension Asset 11,692,572 - 11,692,572 Public safety facilities 350,000 - 350,000 Unrestricted net position 22,003,200 25,231,660 47,234,860 Total Net Position241,674,530$ $ 94,470,621$ 336,145,151 The notes to the financial statements are an integral part of this statement. 29 CITY OF TUKWILA: 2020 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2020 Primary Government --Expenses---------- Program revenues ---------Net (Expense) Revenue and Changes in Net Position- ChargesOperating Capital Grants Governmental Business-TypeTotal For Services Grants and and ActivitiesActivities ContributionsContributions FUNCTIONS / PROGRAMS: PRIMARY GOVERNMENT Governmental activities General government$ 10,792,736$ 7,481,748$ 1,134,478$ (2,176,510)$ (2,176,510)-$ $ - Public safety 25,090,275 2,037,444 179,802 (22,873,029)- (22,873,029)- Transportation 12,757,271 890,982 1,409,231- (10,457,058) (10,457,058)- Natural and economic environment4,426,553 2,671,049 100,681 - (1,654,823) (1,654,823)- Culture and recreation 5,522,907 654,085 152,106 6,700 (4,710,016) (4,710,016)- Interest on long-term debt 4,927,364 - - (4,927,364) (4,927,364)- - Total Governmental Activities 63,517,106 13,735,308 1,567,067 1,415,931 (46,798,800) (46,798,800)- BUSINESS-TYPE ACTIVITIES: Water 6,284,861 6,255,141 2,324 78,638 - 51,242 51,242 Sewer 7,826,317 8,602,042 142,800181 - 918,706 918,706 Surface water 4,991,110 6,956,702 113,803 972,302 - 3,051,698 3,051,698 Foster golf course 1,908,023 1,906,355 5,446 211,724 - 215,502 215,502 Total Business-Type Activities 21,010,311 23,720,241 121,754 1,405,464 4,237,148- 4,237,148 Total Primary Government$ 84,527,417$ 37,455,549$ 1,688,821$ 395$ (46,798,800)$ 4,237,148$ (42,561,653) 2,821, General Revenues: Taxes Property taxes$ 19,839,475$ 19,839,475-$ Retail sales and use taxes 17,102,061 17,102,061- Hotel/motel taxes 292,358 - 292,358 Utility taxes 4,286,358 4,286,358- Interfund utility taxes 2,153,573 2,153,573- Business taxes 407,877 - 407,877 Excise Taxes 3,323,814 3,323,814- Unrestricted investment earning 680,094 - 680,094 Miscellaneous 2,039,548 2,039,548- Total General Revenues 50,125,158 50,125,158- Excess of revenues over expenses 3,326,358 4,237,148 7,563,506 before transfers Transfers 233,350 (233,350) - Change in net position 3,559,708 4,003,798 7,563,506 Net position - beginning 238,114,823 90,466,823 328,581,646 Net position-ending$ 241,674,530$ 94,470,621$ 336,145,151 The notes to the financial statements are an integral part of this statement. 30 CITY OF TUKWILA: 2020 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2020 LocalPublic OtherTotal GeneralArterialImprovementSafetyGovernmentalGovernmental City FundStreetDistrict #33PlanFundsFunds Facilities ASSETS: Cash and cash equivalents$ 16,914,354$ 2,786$ 622,572$ 4,469,791$ 5,211,404$ 7,789,907$ 35,010,814 Investments - - - - - 501,030 501,030 Taxes receivable 5,449,444 154,757 - 113,488 - 151,446 5,869,135 Other receivables 334,486 - - 7,508 - 164,852 506,847 Due from other governmental units 66,560 754,997 - - - - 821,557 Restricted assets: Cash and cash equivalents 8,406 1,010,023 - - - 205,762 1,224,192 Special assessment receivable - 3,008,356- - - 3,008,356- Notes receivable -Current 233,818 - - - - - 233,818 Notes receivable - Noncurrent 279,321 - - 350,000 - - 629,321 Real property held for resale - - - - 2,539,910- 2,539,910 Total Assets23,286,390$ $ 1,922,563$ 3,630,928$ 4,940,788$ 5,211,404$ 11,352,907$ 50,344,980 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES: Liabilities: Accounts payable 734,583 484,525 1,426,225- 210,543 356,846 3,212,723 Accrued wages & benefits 1,913,336 16,569 - - - 5,305 1,935,210 Unearned revenue 179,517 6,533 - - - - 186,050 Other liabilities 445,970 (4,255) - 300 - 542,951 984,966 Total Liabilities3, 273,406 503,372 1,426,525- 210,543 905,102 6,318,948 Deferred inflow of resources Unavailable revenue-special assessment - 3,008,356- - - 3,008,356- Business taxes received in advance 204,031 - - - - - 204,031 Unavailable revenue-property tax, other 386,782 - - - - 60,123 446,905 Unavailable revenue-developer agreement - - - 350,000 - - 350,000 Total Deferred Inflow Of Resources590,814 3,008,356- 350,000 60,123- 4,009,293 Fund balance: Nonspendable 292,498 - - - - - 292,498 Restricted: - Hotel/motel tax - - - - 1,712,389- 1,712,389 Arterial street capital improvements 1,010,023- - - - 1,010,023- Drug investigation and enforcement - - - - - 331,534 331,534 Park and land acquisition/development - - - - 1,076,495- 1,076,495 Debt service guraranty fund - - - - - 720,813 720,813 Debt service public safety plan - - - - - 9,959 9,959 Local Improvement District - - 622,572 - - - 622,572 Assigned: Residential street improvements - - - - - 504,912 504,912 Arterial street improvements - 409,167 - - - - 409,167 Land & park acquisition - - - - - 363,494 363,494 Facilities & urban renewal - - - - 4,407,054- 4,407,054 General government improvements - - - - - 512,648 512,648 Public safety facilities - - 3,164,263- - 3,164,263- City facilities - - - 5,000,862- 5,000,862- 1% Arts - - - - - 327,291 327,291 Technology 374,474 - - - - - 374,474 Shoreline Restoration 93,849 - - - - - 93,849 Solid Waste Tax-Streets 192,102 - - - - - 192,102 Debt service - - - - - 421,095 421,095 Unassigned 18,469,248 - - - - 18,469,248- Total Fund Balance 19,422,170 1,419,190 622,572 3,164,263 5,000,862 10,387,683 40,016,739 Total Liabilities, Deferred Inflows And Fund Balances23,$ 286,390$ 1,922,563$ 3,630,928$ 4,940,788$ 5,211,404$ 11,352,907$ 50,344,980 The notes to the financial statements are an integral part of this statement. 31 CITY OF TUKWILA: 2020 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION DECEMBER 31, 2020 Total Governmental Funds Total governmental fund balances as reported on this statement$ 40,016,739 Capital assets used in governmental activities are not financial resources and therefore not reported in the funds. Non-depreciable assets 102,840,605 Depreciable assets (net) 224,588,380 Internal service fund assets 335,240,6417,811,656 The net pension asset is not an available resource and, therefore, is not reported in the funds.10,863,802 Deferred outflow of pension costs 4,109,886 Deferred outflow of OPEB 374,959 Deferred inflow of pension contributions 1,044,424(3,440,421) The City has an equity interest in two joint ventures. This equity interest for the provision of governmental services is not a current financial resource and therefore is not reported in the funds. 10,519,961 Revenue that was not collected within the recognition period and therefore was not available to pay current liabilities: Unavailable revenue reported for property tax and other receivables58,384 Unavailable revenue reported for developer agreement338,510 Unavailable revenue reported for special assessment3,007,113 3,404,007 Some liabilities are not due and payable in the current period and therefore are not reported in the funds. Long term liabilities due within one year(3,998,669) Long term liabilities due in more than one year(152,085,962) Unfunded other post employment benefits(7,622,718) Accrued interest payable (591,785) Deferred outflow on refunding (164,204,362)94,771 Internal service funds are used by management to charge the cost of certain activities, such as health insurance and fleet maintenance, to individual funds. The assets and liabilities of these internal service funds are included in governmental activities in the statement of net position. 4,789,318 Net Position Of Government Activities As Reported On The Statement Of Net Position241,674,530$ The notes to the financial statements are an integral part of this statement. 32 CITY OF TUKWILA: 2020 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2020 LocalPublic OtherTotal GeneralArterialImprovementSafetyCityGovernmentalGovernmental FundStreetDistrict #33PlanFacilitiesFundsFunds REVENUES: Taxes$ 42,684,593$ 520,091$ -$ 318,317$ -$ 4,037,433$ 47,560,434 Licenses and permits 6,738,212 - 6,738,212 - - - - Intergovernmental 3,853,894 1,518,122 - 936,883 - 338,687 6,647,587 Charges for services 2,542,733 406,731 - 300,000 - 290,747 3,540,211 Fines and forfeitures 209,018 533 - 209,551 - - - Investment earnings 174,490 13,462 173,266 200,354 37,423 81,100 680,094 Special assessments - - 377,132 - 377,132 - - Miscellaneous 445,411 12,200 - 103,193 560,804 - - Total Revenues 56,648,351 2,471,138 550,398 1,755,554 37,423 4,851,160 66,314,025 EXPENDITURES: Current: General government 8,472,913 - 147,915 8,620,827 - - - Public safety 31,362,595 - 387,026 - 42,681 31,792,303 - Transportation 4,732,363 1,536,443 - 77,497 6,346,303 - - Natural and economic environment 4,050,909 - 608,666 4,659,575 - - - Culture and recreation 4,279,620 - 271,472 4,551,092 - - - Debt service: Principal - - 480,000 - 2,006,461 2,486,461 - Interest - - 199,313 - 5,246,230 5,445,543 - Capital outlay 5,495 1,409,253 - 45,690,777 997,705 731,385 48,834,614 Total Expenditures 52,903,895 2,945,696 679,313 46,077,803 997,705 9,132,306 112,736,719 Excess (deficiency)of revenues 3,744,456 (474,557) (128,914) (44,322,249) (960,282) (4,281,147) (46,422,694) Over (Under) Expenditures OTHER FINANCING SOURCES (USES): Transfers in 400,000 - 3,181,775 - 5,285,905 8,867,680 - Transfers out (4,862,449) (190,106) - (3,581,775) (8,634,330) - - Issuance of refunding bonds - - 1,995,000 1,995,000 - - - Payment of refunded debt - - (2,330,000) (2,330,000) - - - Total Other Financing Sources And Uses(4,462,449) (190,106) 3,181,775- 1,369,130- (101,650) Net change in fund balances (717,993) (664,663) (128,914) (41,140,475) (960,282) (2,912,016) (46,524,344) Fund balances - Beginning20,140,1632,083,854751,48644,304,7375,961,14413,299,69986,541,083 Fund Balances - Ending$ 19,422,170$ 1,419,190$ 622,572$ 3,164,263$ 5,000,862$ 10,387,683$ 40,016,739 The notes to the financial statements are an integral part of this statement. 33 CITY OF TUKWILA: 2020 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON 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, 2020 Net change in fund balances per the Statement of Revenues, Expenditures, and Changes in Fund Balances$ (46,524,344) Amount reported as change in net position in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. In the current period, these amounts are: Capital Outlay48,834,614 Depreciation Expense (excludes internal service fund depreciation which is reflected in internal service fund change in net position listed below)(8,805,720) Excess of Capital Outlay Over Depreciation Expense40,028,894 The net effect of various transactions involving the City's pension plans are: Reduction in pension liability and expense2,153,218 Increase in pension contribution revenue547,990 Reduction in the Fireman's Pension liability and expense144,1162,845,323 The City has equity interests in two joint ventures. The equity interests for the provision of governmental (52,666) services are not current financial resources and therefore are not reported in the funds. Repayment of long-term debt is reported as an expenditure in governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. In the current year, these amounts consist of: Bond principal retirement4,816,461 Amortization expense655,7325,472,194 Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. General Obligation Bonds issued(1,819,070) Internal service funds are used by management to charge the costs of certain activities to individual funds. The change in net position of internal service funds is reported with governmental activities.(653,145) 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. Changes this year are for: Miscellaneous receivables633,675 Developer agreements(300,000) Property taxes (154,918) Special assessment(377,132)(198,375) 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: Increase in accrued interest(105,061) Amortization of deferred outflow on bond refunding(32,493) Increase in compensated absences(409,685) Change in OPEB Liability5,008,135 Total additional expense (increase) decrease4,460,897 Change In Net Position On The Statement Of Activities$ 3,559,708 The notes to the financial statements are an integral part of this statement. 34 CITY OF TUKWILA: 2020 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2020 Governmental FosterSurfaceTotalActivities Water SewerGolfWater EnterpriseInternal Svc UtilityUtilityCourseUtilityFundsFunds ASSETS: Current assets Cash and cash equivalents4,213,769$ 12,811,816$ 917,451$ 4,684,858$ 22,627,894$ 6,325,255$ Investments 2,106,948 2,106,948 495,077 - - - Other Receivables 493,617 759,561 2,019 527,848 1,783,045 32,054 Due from other governmental units - - 336,627 336,627 - - Inventory of materials and supplies - - 52,656 52,656 13,838 - Restricted cash and cash equivalents 40,905 - 129,912 170,817 - - Total Current Assets 6,855,240 13,571,377 1,102,037 5,549,332 27,077,986 6,866,224 NONCURRENT ASSETS: - 90,251 Notes receivable 90,251 - - - Capital Assets: 87,347 69,525 1,609,575 579,783 Land 2,346,230 - 1,416,567 3,364,962 6,627,496 1,875,395 Building 13,284,419 - 25,867,418 16,782,751 3,599,021 55,341,057 Other improvements 101,590,247 - 868,647 1,249,131 1,089,194 56,139 Machinery and equipment 3,263,112 19,205,173 Less: accumulated depreciation (13,014,290) (9,774,062) (7,851,844) (19,633,356) (50,273,553) (11,393,517) Construction in progress 138,785 237,946 - 2,318,277 2,695,009 - Total Capital Assets (Net Of A/D) 15,364,473 11,930,252 5,073,442 40,537,296 72,905,464 7,811,656 Total Noncurrent Assets 15,364,473 12,020,503 5,073,442 40,537,296 72,995,715 7,811,656 Total Assets 22,219,713 25,591,880 6,175,479 46,086,628 100,073,700 14,677,880 Deferred Outflows of Resources RecTaxDeferred pension 58,068 39,687 68,302 99,340 265,397 35,304 Deferred Loss on Refunding 6,528 15,566 3,013 25,106 - - Total Deferred Outflows Of Resources 64,596 55,253 68,302 102,353 290,503 35,304 LIABILITIES: Current liabilities: Accounts payable 30,888 54,758 46,843 115,855 248,343 147,474 Accrued wages and benefits 30,990 24,584 61,746 48,361 165,681 8,626 Accrued interest payable 1,348 4,364 2,856 8,568 - - Unearned revenue 6,673 472 7,145 - - - Other current liabilities 39,955 35,073 117,926 51,620 244,575 720,000 Due to other governments 95,036 233,392 - 270,895 599,323 - Revenue bond payable 40,866 97,450 18,861 157,178 - - Total Current Liabilities 245,756 449,622 226,515 508,919 1,430,813 876,099 Noncurrent liabilities: Reserve for unreported claims - - 1,080,000 - - - Revenue bonds payable 218,505 520,989 - 100,886 840,380 - Net pension liability 206,865 139,270 250,190 343,897 940,222 120,806 Compensated absences 84,319 32,876 62,795 132,388 312,378 - Due to other governments 241,876 1,029,707 - 778,068 2,049,651 - Total Noncurrent Liabilities 751,565 1,722,842 312,985 1,355,239 4,142,631 1,200,806 Total Liabilities 997,321 2,172,464 539,500 1,864,158 5,573,443 2,076,905 Deferred Inflows of Resources RecTaxDeferred inflow pension earnings 71,063 45,413 88,599 115,064 320,139 50,703 Total Deferred Inflows Of Resources 71,063 45,413 88,599 115,064 320,139 50,703 NET POSITION: Investment in capital assets 14,774,717 10,064,279 5,073,442 39,326,522 69,238,961 7,811,656 Unrestricted 6,441,207 13,364,976 542,239 4,883,236 25,231,660 4,773,919 Total Net Position$ 21,215,925$ 23,429,256$ 5,615,682$ 44,209,758$ 94,470,621$ 12,585,575 The notes to the financial statements are an integral part of this statement. 35 CITY OF TUKWILA: 2020 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2020 Governmental FosterSurfaceTotalActivities WaterSewerGolf WaterEnterpriseInternal UtilityUtilityCourseUtilityFundsService Funds OPERATING REVENUES: Charges for services6,165,831$ 8,504,840$ 1,829,855$ 6,925,263$ 23,425,789$ 9,151,453$ Other operating revenue400 - 73,024 1,981 75,405 158,185 Total Operating Revenues6,166,231 8,504,840 1,902,878 6,927,245 23,501,194 9,309,638 OPERATING EXPENSES: Operating & maintenance4,094,2375,830,875 1,356,552 1,929,664 13,211,328 8,055,074 Administrative and general717,107 616,627 197,012 1,140,042 2,670,788 741,242 Taxes 900,335 965,352 8,485 785,466 2,659,638 - Depreciation and amortization 563,383 388,003 345,974 1,126,843 2,424,203 1,402,227 Total Operating Expenses 6,275,062 7,800,857 1,908,023 4,982,015 20,965,956 10,198,543 Operating Income (Loss) (108,831) 703,983 (5,144) 1,945,230 2,535,238 (888,905) NON-OPERATING REVENUE (EXPENSE): Investment earnings 88,910 97,202 3,477 29,458 219,046 68,018 Interest expense (9,799) (25,460) (9,095) (44,355) - - Gain (loss) on disposal of capital assets - - - - 163,847 - Other non-operating revenue 2,324 181 5,446 113,803 121,754 3,894 Total Non-Operating Revenue (Expense) 81,435 71,923 8,923 134,166 296,446 235,759 Income (Loss) Before Contributions & Transfers(27,396) 775,906 3,778 2,079,396 2,831,684 (653,145) Capital contributions 78,638 142,800 211,724 972,302 1,405,464 - Transfers in - 300,000- 300,000- - Transfers out (197,423) (97,316) - (238,611) (533,350) - Change in Net Position (146,182) 821,390 515,502 2,813,087 4,003,798 (653,145) Total net position - beginning21,362,10622,607,8665,100,17941,396,67190,466,823 13,238,721 Total Net Position - ending$ 21,215,925$ 23,429,256$ 44,209,7585,615,682$ $ 94,470,621$ 12,585,575 The notes to the financial statements are an integral part of this statement. 36 CITY OF TUKWILA: 2020 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2020 Page 1 of 2 Governmental FosterSurfaceTotalActivities WaterSewerGolfWaterEnterpriseInternal UtilityUtilityCourseUtilityFundsService Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers$ 6,160,341$ 8,631,007$ 1,907,589$ 6,757,772$ 23,456,708$ 9,295,828 Cash paid to supplier (3,366,107) (5,282,070) (478,712) (999,385) (10,126,274) (697,807) Cash paid for taxes (900,335) (965,352) (785,466)- (2,651,153) - Cash paid to or on behalf of employees (875,215) (602,461) (973,495) (1,454,263) (3,905,434) (7,336,394) Interfund activity - payments to other funds (679,030) (538,140) (197,012) (693,622) (2,107,805) (593,136) Other cash received 400 23,911 1,981 26,293 - - Net Cash Provided (Used) By Operating Activities 340,054 1,242,983 282,281 2,827,017 4,692,334 668,492 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating grant received 2,324 181 5,446 113,803 121,754 3,894 Transfers in - 511,724- - 511,724 - Transfers out (197,423) (97,316) (238,611)- (533,350) - Net Cash Provided (Used) By Non- Capital Financing Activities (195,099) (97,135) 517,170 (124,808) 100,128 3,894 CASH FLOWS FROM CAPITAL AND RELATED Purchase of capital assets (12,162) (46,097) (516,725) (2,019,259) (2,594,243) (1,716,058) Contributed capital 78,638 142,800 - 221,438 - - Capital grants - - 755,128 755,128 - - Principal payment on debt (135,799) (330,536) (289,746)- (756,082) - Interest payment on debt (10,501) (26,856) (10,524) (47,881) - - Proceeds from sale of equipment - - 610,433 - - - Net Cash Provided (used) for Capital And Related Financing Activities (79,825) (260,690) (516,725) (1,564,400) (2,421,641) (1,105,624) CASH FLOW FROM INVESTING ACTIVITIES: Proceeds from sale of investments 4,000,000- 4,000,000- 500,000 - Purchase of investments - - (160,000) - - - Interest received 27,163 98,120 3,477 29,458 158,218 55,757 Net Cash Provided (Used) In Investing Activities 27,163 4,098,120 3,477 29,458 4,158,218 395,757 Net increase (decrease) in cash and Cash equivalents 92,292 4,983,278 286,202 1,167,267 6,529,039 (37,481) Cash and cash equivalents-beginning of year 4,162,382 7,828,538 761,160 3,517,591 16,269,671 6,362,736 $ 12,811,8164,254,674$ 1,047,362$ 4,684,858$ 22,798,710$ 6,325,255$ Cash And Cash Equivalents- end of year Cash at end of year consists of: $ 6,325,255 Cash and cash equivalents4,213,769 12,811,816 917,451 4,684,858 22,627,894 Restricted cash-customer deposits 40,905 129,912- - 170,817 - $ 12,811,8164,254,674$ 1,047,362$ 4,684,858$ 22,798,710$ 6,325,255$ Total Cash and cash equivalents The notes to the financial statements are an integral part of this statement. 37 CITY OF TUKWILA: 2020 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2020 Page 2 of 2 Governmental FosterSurfaceTotalActivities WaterSewerGolfWaterEnterpriseInternal UtilityUtilityCourseUtilityFundsService Funds RECONCILIATION OF NET OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income (Loss)(108,831)$ 703,983$ (5,144)$ 1,945,230$ 2,535,238$ (888,905)$ Adjustments to reconcile operating income to net cash Provided (used) by operating activities: Depreciation563,383 388,003 345,974 1,126,843 2,424,203 1,402,227 Asset (increase) decrease: Accounts receivable(9,555) 126,167 384 (167,492) (50,497) (13,809) Inventory and other- - 2,344 - 2,344 19,293 Deferred outflow of resources (increase) decrease(3,699) (2,666) (4,066) (6,651) (17,082) (1,905) Liability increases (decreases): Accounts payable(29,931) 18,401 36,364 (14,299) 10,535 200,585 Other liabilities4,065 30,700 28,238 22,508 85,511 - Wages & benefits payable(3,779) 30,009 (43,087) 49,655 32,797 (12,142) Deferred inflow of resources increase (decrease)(71,600) (51,613) (78,725) (128,777) (330,715) (36,852) Total Adjustments448,884 539,000 287,425 881,787 2,157,096 1,557,397 $ 1,242,983340,054$ 282,281$ 2,827,017$ 4,692,334$ 668,492$ Net Cash Provided (Used) By Operating Activities SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Capital assets acquired by contributed capital$ -$ -$ 217,174$ 217,174 $ - $ - Increase (decrease) in fair value of investment - (918) - (918) - - Total Non Cash investing, Capital and Financing Activities $ (918)-$ -$ 217,174$ 216,256$ -$ The notes to the financial statements are an integral part of this statement. 38 CITY OF TUKWILA: 2020 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF FIDUCIARY NET POSITON FIDUCIARY FUNDS DECEMBER 31, 2020 Pension and Other Employee Benefit Custodial Trust FundsFunds ASSETS: Cash and cash equivalents$ 1,539,196$ 296,657 Customer accounts - 239 Total Assets 1,539,196 296,896 LIABILITIES: Accounts and other payables 21,740 290,084 Total Liabilities 21,740 290,084 NET POSITION: Restricted for pensions 1,517,456 - Restricted for individuals, organizations and other governments - 6,812 Total Net Position$ 1,517,456$ 6,812 The notes to the financial statements are an integral part of this statement. 39 CITY OF TUKWILA: 2020 ACFR BASIC FINANCIAL STATEMENTS CITY OF TUKWILA, WASHINGTON STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2020 Pension and Other Employee Benefit Custodial Trust FundsFunds ADDITIONS: Contributions from nonemployer entities: Fire Insurance Premiums Transferred in$ 72,088$ - Investment earnings/(loss) 10,134 - Custodial Funds Received Corrections to balances - (2,792) Total Additions 82,222 (2,792) DEDUCTIONS: Benefit payments$ 69,186$ - Custodial Funds Disbursed Release of seized property - 431,000 Corrections to balances - 86 Total Deductions 69,186 431,086 Change In Net Position 13,037 (433,878) Net position - beginning1,504,419 440,690 Net position - ending$ 1,517,456$ 6,812 The notes to the financial statements are an integral part of this statement. 40 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS For the Year Ended December 31, 2020 The accounting and reporting policies of the City of Tukwila conform to generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and accounting policies are described in this note. A. The Reporting Entity The City of Tukwila was incorporated on June 23,1908 and operates under the laws of the State of Washington applicable to a non-charter optional code city with a Mayor/Council form of government. Tukwila is served by a Mayor and seven councilmembers, 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 City of Tukwila has no component units (either blended or discretely presented) included in these statements. B. Basis of Presentation ent-wide statements, including a statement of net position 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 position and the statement of activities report information on all of the nonfiduciary activities of the City. The activity of the internal service funds is The statements distinguish between governmental activities and business-type activities. The statement of net position 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 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. The statement of activities reports the expenses of a given function offset by program revenues directly connected with the functional program. A function is an assembly of similar activities and may include portions of a fund or summarize more than one fund to capture the expenses and program revenues associated with a distinct functional activity. 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. For identifying which function program revenue pertains, the determining factor for charges for services is which function generates the revenue. For grants and contributions, the determining factor is to which functions the revenues are restricted. Revenues which are not classified as program revenues are presented as general revenues of the City, with 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. 41 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS 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. Non-major 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 proprietary fund statements. Fiduciary funds are reported by type. While fiduciary funds are excluded from the government-wide statements, they are included in the fund financial statements. 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 are comprised of assets, deferred outflow of resources, liabilities, deferred inflow of resources, fund equity, revenues and expenditures or d 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 fo reported fund balance is considered a statements focus on measuring changes in current financial position, rather than net income; they present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. resources except those required by statute or generally accepted accounting principles to be accounted for in another fund. As is the case with most municipalities, the general fund is the largest and most important accounting entity of the City. The general fund receives the bulk of its revenues from local taxes, followed by State shared revenues, service charges, and other income. The Arterial Street fund was established in accordance with RCW 82.36.020 for the administration of the State-levied motor vehicle half-cent gasoline tax distributed to Tukwila and is used primarily to account for capital arterial street projects. In addition to the State-levied motor vehicle gasoline tax, other revenue includes state and federal grants, impact fees, and transfers in from the general fund. The Local Improvement District (LID) #33 accounts for assessments related to the LID and provides payment to the Fiscal Agent for principal and interest on bonds issued in November 2013. The Public Safety Plan fund was established in 2016 after voters approved a $77.4 million bond measure to construct a justice center, rebuild 3 fire stations, and provide for life-cycle replacement of fire department apparatus and equipment. The City Facilities fund was established in 2016 to account for costs of building a new public works shop approved bonds. The other governmental funds of the City, account for the proceeds of specific revenue sources that are segregated to ensure that expenditures are made exclusively for qualified purposes. 42 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS 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. Proprietary funds are This means 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 position. Proprietary funds measurement focus is based upon determination of net income, financial position, and cash flows. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a rnal customers for sales and services. Operating expenses for the enterprise funds and internal service funds include the cost of sales and services, administrative expenses, taxes, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. 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 ar restricted resources first, then unrestricted resources as they are needed. charges. The enterprise activities 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 Water Utility Fund accounts for operations and capital improvements to provide water services to the City. Sewer Utility Fund accounts for operations and capital improvements to provide sanitary sewer services to the City. Foster Golf Course Fund is used to account for the operation, maintenance, and improvements of the municipal golf course facility. Surface Water Utility Fund accounts for the operations and capital improvem 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. All equipment costs, including depreciation, are factors in l plan for active employees and retired LEOFF I employees respectively. 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. 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 ot counts for a single-employer defined benefit system established under Washington State law to provide pension benefits for eligible firefighters. Although this pension plan has subsequently been replaced by the Washington Pension System, firefighters hired prior to March 1, 1970 continue to be eligible for benefits under the provisions of the earlier law. Revenues received by the fund include proceeds of a state-imposed tax on fire insurance premiums. The agency fund is custodial used to account for assets that the City holds on behalf of others in a custodial capacity. overnment-wide financial statements. Fiduciary funds are excluded from the g 43 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS D. Measurement Focus Government-wide Financial Statements The government-wide financial statements are prepared using the economic resources measurement focus. All assets, deferred outflow of resources, liabilities, and deferred inflow of resources associated with the operation of the City are included on the Statement of Net Position. 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, current liabilities, and deferred inflow of resources 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 and internal service 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 position. The statement of changes in activities presents increases (i.e., revenues) and decreases (i.e., expenses) in net total position. The statement of cash flows provides information about how the City finances and meets the cash flow needs of its proprietary activities. Fiduciary 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. Revenue 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 availablount of the transaction can liabilities. For the City, available means expected to be received within sixty (60) days of year-end. The primary accrued revenues that meet these criteria are sales, real estate, and utility taxes. Non-exchange 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 3 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. 44 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS 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 from the government-wide financial statements via the process of consolidation. Internal service fund and similar internal activity has also been eliminated from the government-wide statement of activities, so expenses are not reported twice. Exceptions to this general rule are payments for interfund services provided and used, such 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 include 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, biennial budgets are adopted for the general fund and special revenue 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 biennially budgeted governmental funds only. Budgets established for are not reported in the Annual Comprehensive Financial Report. The biennial appropriated budgets are adopted at the fund level 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. Any unexpended appropriation balances lapse at the end of the biennium. RCW 35A.33. The steps in the budget process are as follows: 1) Prior to November 1 on even numbered years, 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 preceding months and balanced with revenue estimates made by the Mayor. 2) The City Council conducts public hearings on the proposed budget in November. Public hearings are also held in December, if necessary. 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 City Council must approve, by ordinance, any amendments that increase the total for the fund. Budget amounts presented in the financial schedules include both the original amounts and the final amended budget as approved by the City Council. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year. 45 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Expenditure Categories Includes administration, finance, municipal court, attorney, General Government and city clerk activities. Includes all police and fire activities. Public Safety Includes all residential and arterial street maintenance and Transportation construction. Reflects all planning and building inspection as well as Natural and Economic environmental and community services. Environment Includes expenditures related to parks and recreational Culture and Recreation activities. G. Assets, Liabilities, and Fund Equity Cash and Cash Equivalents investments with original maturities of three months or less from the date of acquisition. Investments Investments are held separately by each fund with interest earned directly for the benefit of each fund. Investments are reported in the financial statements at fair value, based on quoted prices in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Washington State statutes provide for the City to hold investments consisting of obligations of the Federal Government, r time certificates of deposit. Additional deposit and investment information is presented in Note 2. Notes Receivable Notes receivable in the enterprise funds consists of sewer connection fees due from customers to the utility. In the governmental funds, it consists of the special assessment as well as developer agreements, of which the City currently has two current developer agreements. Amounts Due to and From Other Funds and Governments, Interfund Loans and Advances Receivable Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal balances outstanding between the governmental activities and business-type activities are reported in the balances outstanding between the governmental activities and business-type activities. The non-current portion of interfund loans in the general fund and advances between funds, as reported in the fund financial statements, are offset by a fund balance nonspendable account in applicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources. See Note 4 on interfund transactions. Special Assessments Special assessments are amounts levied against benefited properties to recover costs associated with the construction of Local Improvement District (LID) projects. A lien is recorded against benefited properties until the assessment has been paid. Special assessments receivable represents all outstanding assessment amounts including current assessments billed but not collected, delinquent assessments unpaid at year-end, and special 46 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS assessment amounts due in future years, which are recorded in a deferred inflow of resources account in the fund financial statements. Since special assessments are secured by liens against related properties, no allowance for uncollectible amounts is made. Inventories Inventory is defined as items purchased for resale to external customers or other City departments or supplies and small tools used in normal operations that are considered ma financial statements reflect only those items that will be resold. Inventory held for resale is valued at lower of cost or market and there is a physical inventory count taken annually at year-end. Governmental funds use the purchase method whereby inventory items are considered expenditures when purchased. Real Property Held for Resale Governmental funds do not report property, plant, and equipment because such assets normally are used in operations, and therefore will never be available for spending (they are not financial assets). However, specific items of property occasionally are acquired with the intent of sale. Examples include foreclosure properties, redevelopment properties, and donated assets held for resale rather than retained for use in operations. Governments often acquire redevelopment properties to attract private-sector investment in an economically depressed area and are willing to sell the property at a price that may be far acquire and improve the property. Since assets held for sale can never be reported at an amount higher than their net realizable value, any cost in excess of net realizable value must be excluded from the property value reported in the financial statements. Between 1999 and 2004 the City acquired a number of properties comprising approximately 5.76 acres in its urban renewal area along Tukwila International Boulevard for a redevelopment project called Tukwila Village. In 2012 the City executed an agreement to sell the property to a developer. In 2017 the City and developer closed escrow on the sale of the first phase which was then completed in 2018. In 2019, the City closed escrow on the second, and final, phase. The developer is constructing the final building which will be completed in 2021 As part of a crime-reduction project, the City purchased three crime-ridden motels in 2014 plus an adjacent motel and retail shop in 2015 comprising approximately 2.3 acres. All structures on those properties were demolished in 2016 and the property is currently vacant land. In 2020 the City entered into an agreement to sell 1.7 acres of the land to HealthPoint, a federally recognized community health center. In 2021 the City entered into an agreement to sell the remaining 0.6 acres to the Tukwila Community Coalition, LLC. 47 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Deferred Outflows /Inflows of Resources Deferred outflow of resources represents a consumption of net position by the government that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has three items that qualify for reporting in this category. The City reports a deferred outflow related to pension, deferred outflow related to OPEB and a deferred loss on refunding water/sewer bonds. Deferred inflow of resources represents an acquisition of net position by the government that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. The City has five items that qualify for reporting in this category. The City reports business taxes that are received in advance and a deferred inflow related to pensions as well as unavailable revenues from special assessments, developer agreements and unavailable receivables. 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 position 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 position 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. Where historical cost is not known, assets are recorded at estimated historical costs. Donated assets are recorded at acquisition value at time of acquisition. The City maintains a capitalization threshold of five distribution and collection systems. Improvements are capitalized while the costs of normal maintenance and repairs 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 Machinery and Equipment 2 to 50 years Intangibles 2 to 50 years Infrastructure 25 to 50 years See Note 6 for additional information on capital assets. Other Liabilities and IBNR reserve Other liabilities include retainage, deposits and the incurred-but-not-reported (IBNR) claims. The IBNR reserve includes the claim reserve for the self-insured healthcare funds. The self-insurance fund for active employees includes an IBNR liability of $ 665,000 determined using actuarial methods. This liability is multiplied by a factor of es at 1 x IBNR for claim fluctuations plus 1.5 x IBNR for a claims reserve yielding a total liability of $1,662,500. The self-insurance fund for LEOFF 1 retirees includes an IBNR liability of $55,000 and total liability of $137,500 utilizing the same calculations as t insurance fund. 48 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Compensated Absences City policy and 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 624 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, which includes salary and wages as well as related taxes, 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 current portion reported on the schedule of long-term liabilities is calculated using the last-in-first-out (LIFO) approach. Anticipated subsequent yearly usage is used to determine the current portion of the liability. There is no current portion to report when the anticipated leave usage is less than the anticipated leave to be accrued during the next year. 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 position. Bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond discount. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenses. In the fund financial statements, governmental fund types recognize bond premiums and discounts 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 Balance/Net Position A fund balance represents the difference between the current assets and current liabilities plus deferred inflows. The City restricts those portions of fund balance which are legally segregated for a specific future use or which do not represent available, spendable resources and therefore are not available for general appropriation or expenditure. Net position represents the difference between assets plus deferred outflow of resources and liabilities plus deferred inflow of resources. Net position invested in capital assets, net of related debt, consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used (i.e., the amount that the City has spent) for the acquisition, construction, or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. The remaining balance is reported as unrestricted. funds. The objectives of this Policy are to establish, attain, and restore minimum fund balances, including self- insurance health care reserve funds, and specified review and reporting of fund balances. At the close of each fiscal year, the General Fund balance shall equal or exceed 18%, and the Contingency Reserve Fund balance shall each equal or exceed 10%, of the previous year General Fund revenue, exclusive of significant non-operating, non-recurring revenues such as real estate sales or transfers in from other funds. Additionally, 10% of the previous year one-time revenues shall be set aside in a one-time revenue reserve within the Contingency Reserve fund. 49 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Enterprise funds, at the close of each fiscal year, the unrestricted fund balance shall equal or exceed 20% of the previous year revenue, exclusive of the effects of GASB Statement No. 68, as well as significant non-operating, non-recurring revenues such as real estate sales, transfers in from other funds or debt proceeds. The City shall maintain a reserve balance in each of its self-insured health care funds an amount equal to 2.5 times or 250%, of the actuarially determined IBNR liability. Fund Balance Components The fund balance amounts for governmental funds have been classified in accordance with GASB Statement No. 54 and are reported as nonspendable, restricted, committed, assigned or unassigned. Nonspendable fund balance includes items that cannot be spent. This includes activity that is not in a spendable form (inventories, prepaid amounts, long-term portion of loans/notes receivable, or property held for resale unless the proceeds are restricted, committed or assigned) and activity that is legally or nonspendable fund balance of $292 thousand is the outstanding balance of a loan from the general fund to the Tukwila Metropolitan Park District. Restricted fund balances have constraints placed upon the use of the resources either by an external party or imposed by law through a constitutional provision or enabling legislation. Committed fund balances can be used only for specific purposes pursuant to constraints imposed by a formal decision-making authority. This formal action is the passage of an ordinance by City Council creating, modifying, or rescinding an appropriation. These committed amounts cannot be used for any other purpose unless Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. Assigned fund balance includes amounts that are constr purpose but are neither restricted nor committed. Intent of use and authority to assign amounts is determined through the budgetary process, either during adoption or amending, and the Finance Director has final authority. Unassigned fund balance is the residual amount not included in the four categories described above. Also, any deficit fund balances within the other governmental fund types are reported as unassigned. Each fund has been analyzed to classify the fund balance in accordance with GASB Statement No. 54. Funds are created by the City Council and money is authorized to be transferred to the fund for a particular purpose. At this point, balances in these funds are at least committed, and may be further restricted depending on whether there is an external party, constitutional provision, or enabling legislation constraint involved. The City applies restricted resources first when an expense is incurred for purposes of which both restricted and unrestricted fund balance is available in the governmental funds. When expenditures are incurred for purposes, for which unrestricted (committed, assigned, and unassigned) resources are available, and amounts in any of these unrestricted spend committed resources first, assigned second, followed by unassigned. Operating Revenues and Expenses Operating revenues are generated directly from the primary activity of the proprietary funds. For the City, these revenues are service fees for utilities, charges for services for the use of the golf course and the internal use of vehicles, computers, and facilities. Operating expenses are necessary costs incurred to provide the good or service that are the primary activity of each fund. All other revenues and expenses are classified as non-operating including investment earnings, interest expense and the gain or loss on the disposition of capital assets. 50 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Contributions of Capital Contributions of capital in proprietary fund financial statement arise from outside contributions of capital assets, for example, developers, and grants or outside contributions of resources restricted to capital acquisition and construction. It also includes water and sewer connection charges. Indirect Cost Allocation Indirect costs, also referred to as overhead costs, consist of the cost of central services or support functions shared across departments. They include accounting, human resources, payroll, information technology, janitorial services, and others. These services are paid through the general fund and charged back to the proprietary funds that directly benefit from them. The indirect costs allocated to the proprietary and other funds totaled $2,637,288 for 2020 and are reported as a reduction of general government expenditures on the Statement of Activities. Interfund Activity Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the purchaser funds. On the government-wide statement of activities, the exchange transactions between the internal service funds and the user funds are eliminated. Flows of cash or goods from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing sources/uses in governmental funds and after non-operating revenues/expenses section in proprietary funds. Transfers between governmental and business-type activities on the government-wide statement of activities are reported separately after general revenues. Transfers between funds reported in the governmental activities column are eliminated. Transfers between funds reported in the business type activities column are eliminated. Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. Risk Management ment 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. The City of Tukwila is a member of the Washington Cities Insurance Authority (WCIA) as of January 1, 1984. WCIA is an organization of Washington entities numbering 162 as of December 31, 2020. WCIA provides pooled self- insurance coverage for general liability, vehicle liability, false arrest, and errors and omissions. See Note 13 for additional information on risk management. H. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of all state sponsored pension as they are reported by the Washington State Department of Retirement Systems. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 51 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS 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 Custodial credit risk is the risk associated with the failure of a depository financial institution. In the event of a hat the City would not be able to recover its deposits or collateralized securities that are in the possession of the outside parties. The City minimizes custodial credit risk by following the restrictions set forth in state law. lance held in banks was $10,258,996. Of the bank balance, $250,000 was covered by Federal depository insurance and the Washington Public Deposit Protection Commission (WPDPC) insured the remainder. The City also maintains imprest funds totaling $16,650. The City participates in the Washington State Treasurer's Local Government Investment Pool (LGIP) managed by the Office of the State Treasurer, which is also responsible for establishing the investment policy for the LGIP. The rtfolio is invested in a manner that meets the maturity, quality, diversification, and liquidity External Investment Pools and Pool pools that elect to measured investments at amortized costs for financial reporting purposes. Investments in the LGIP are available on demand in the amount of the original investment, plus interest earnings, and are treated as a money-market investment. Accordingly, the fair value of the City's position in the LGIP is the same as the value of the city's LGIP shares. Regulatory oversight for these investments is provided as prescribed by Washington State law. The State Auditor audits the accounts of the State Treasurer to determine the compliance of investment activities with state statutes and the investment policy. Also, an independent audit of the LGIP's financial statements is performed annually. The State Treasurer has created an Advisory Committee consisting of eight members appointed by participant associations and four members appointed by the State Treasurer. The committee meets at least quarterly to provide advice on the operation of the LGIP. Investments deposits insured by the Washington State Public Depository Commission, U.S. Government Agency Notes, and municipal bonds issued by state and local agencies. 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 52 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS At December 31, 2020, the City had the following deposits and investments. Certificates of deposits are measured at amortized cost, agencies and municipal bonds are measured at fair value. SCHEDULE OF INVESTMENTS BY MATURITY Maturity Credit Fair Date Rating Value Certificates of Deposit: Sound Community Bank3/4/2021*2,106,948$ Total Certificate of Deposits 2,106,948 Municipal Bonds: Multnomah County, Oregon: Limited General Obligation 6/1/2021Aaa495,077 Burien, Washington: Limited General Obligation, Build America 12/1/2025Aa2501,030 Total Municipal Bonds 996,107 TOTAL INVESTMENTS$ 3,103,055 * No credit rating with certificate of deposit accounts; accounts are insured by the Public Depository Protection Commission. RECONCILIATION OF ALL CASH, DEPOSITS AND INVESTMENTS CASH & CASH RESTRICTED EQUIVALENTS CASH INVESTMENTS TOTAL SUMMARY BY FUNDS Governmental Funds General Fund16,914,354$ 8,406$ -$ 16,922,760$ Arterial Street 2,786 1,010,023 - 1,012,809 Local Improvement District #33622,572 - - 622,572 Public Safety Plan 4,469,791 - - 4,469,791 Facilities Urban Renewal 5,211,404 - - 5,211,404 Other Governmental Funds 7,789,907 205,762 501,030 8,496,699 Internal Service Funds 6,325,255 - 495,077 6,820,332 Proprietary Funds Water 4,213,769 40,905 2,106,948 6,361,622 Sewer 12,811,816 - - 12,811,816 Foster Golf Course 917,451 129,912 - 1,047,362 Surface Water 4,684,858 - - 4,684,858 Total as Reported on Statement of Net Position 63,963,962 1,395,008 3,103,055 68,462,026 Firemen's Pension Trust Fund 1,539,196 - - 1,539,196 Agency Fund 296,657 - - 296,657 Total Cash, Cash Equivalents $ 65,799,816$ 1,395,008$ 3,103,055$ 70,297,879 and Investments 53 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS SUMMARY BY TYPE: Cash and Cash Equivalents: Local Government Investment Pool41,690,157$ Money market account 15,123,022 Cash on hand 16,650 Cash in bank-book balance 10,364,996 Total cash and cash equivalents 67,194,824 Investments: Certificates of deposit 2,106,948 Municipal bonds 996,107 Total investments 3,103,055 Total Cash, Cash Equivalents, and Investments$ 70,297,879 RESTRICTED CASH SUMMARY Restricted Assets - Governmental Cash & cash equivalents Deposits8,406$ Drug Seizure funds - federal portion205,762 Impact fees1,010,023 Restricted Assets-Governmental1,224,192$ Restricted Assets - Business-Type Customer Deposits-Water Utility40,905$ Customer Deposits-Golf Course114,912 Lease Deposits-Golf Course15,000 Restricted Assets-Business-Type170,817$ Total Restricted Assets1,395,008$ 54 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Fair Value Measurement The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or cost advantageous market for the asset or liability in an orderly transaction. There is a fair value hierarchy which requires an entity to maximize the use of observable inputs when measuring fair value. The guidance requires three levels of fair value measurement based on the respective inputs. Level 1 inputs are quoted prices in active markets for identical assets. These valuation inputs are considered most reliable. Level 2 inputs are quoted prices for similar assets, quoted prices for identical or similar assets in markets that are not active, or other observables. These valuation inputs are considered to be reliable. Level 3 inputs are significant unobservable inputs and are considered to be the least reliable. U.S. Agency Securities and municipal bonds classified in Level 2 are valued using quoted prices for similar securities and interest rates. The level of fair value measurement is based on the lowest level of significant input for the security type in its entirety. There are no Level 1 or Level 3 security classifications to report. The fair values noted in the following table have been provided by Time Value Investments, who obtains the information through Interactive Data (IDC). IDC evaluates the various securities and obtains feeds from a number of live data and market sources including active market makers and inter-dealer brokers, relative credit information, observed market movements, and sector news. IDC reviews sources on the basis of their historical accuracy for individual issues and maturity ranges. The City has the following recurring fair value measurements as of December 31, 2020: Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable AssetsInputsInputs Investments by Fair Value LevelTotal(Level 1)(Level 2)(Level 3) Municipal Bonds - 996,107 - 996,107 Total Investments by Fair Value Level996,107$ $ -$ 996,107$ - Interest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment. As a means of limiting its exposure to fair va investment policy limits investment maturities as follows: 1) At the time of investment, a minimum of thirty percent (30%) of the cash and investment portfolio will be comprised of investments maturing or available within one year. 2) At the time of investment, eighty percent (80%) of the portfolio will be comprised of investments maturing or available within five (5) years and no instruments shall have a maturity exceeding ten (10) years, except 3) The average maturity of the portfolio shall not exceed three and one half (3 ½) years or forty-two (42) months. The City uses the weighted average maturity method to manage interest rate risk. 55 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State statutes e 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 WPDPC at the time of investment. 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), an unrated, external investment pool. Service. Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The City of Tukwila diversifies its investments by security type and institution as described below: be in any single financial institution. 2) Except, that no more than seventy-five percent (75%) of invested in the Washington State Local Government Investment Pool, and 3) No more than seventy-five percent me of purchase, shall be invested in U.S. Treasury or Agency securities. 56 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Taxes receivable consists of property, sales and use, gambling, leasehold, and hotel/motel taxes. Customer accounts receivable consists of amounts owed by private individuals or organizations for goods and services provided. Uncollectible amounts are considered immaterial and the direct write-off method is used. Customer accounts receivable also includes the current portion of special assessments due from property owners within Local Improvement District No. 33. Other types of accounts receivable include utility taxes due from private organizations and customer accounts receivable for amounts owed which billings have not been prepared. Governmental Business-Type ActivitiesActivitiesTotal Taxes Receivable Property482,196$ -$ 482,196$ Sales & Use 3,492,916 3,492,916- Real Estate Excise Tax 226,977 - 226,977 Utility Tax 728,372 - 728,372 Admission/Gambling/Parking/Other938,675 - 938,675 Total Taxes Receivable 5,869,135 5,869,135- Customer Receivable Miscellaneous 536,765 - 536,765 Utility Accounts 1,713,516- 1,713,516 Total Customer Receivable 536,765 1,713,516 2,250,282 Interest 2,135 69,529 71,664 Notes due within one year 233,818 - 233,818 Total Receivables$ 6,641,854$ 1,783,045$ 8,424,899 Property Taxes Receivable The County Treasurer acts as an agent to collect property taxes levied in the County for all taxing authorities. Collections are distributed daily via wire transfer. Property Tax Calendar January 1 st Taxes are levied and become an enforceable lien against properties. th February 14 Tax bills are mailed. th April 30 First of two equal installment payments is due. If taxes are less than $50, full payment is due. (RCW 84.56.020) st May 31 Assessed value of property established for 100 percent of market value. st Second installment is due. (RCW84.56.020) October 31 Assessed values are established by the County Assessor at 100% of fair market value. A revaluation of all property is required every two years. On May 31 of each year the assessed value of property is established for the next Property taxes levied by the County Assessor and collected by the County treasurer become a lien on the first day of the levy year and may be paid in two equal installments if the total amount is $50 or more. The first half of real 57 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS 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 not expected to be collected within 60 days after the current period are reported as other unavailable revenue in the deferred inflow of resources section of the governmental funds financial statements. The tax rate for general City operations is limited to $3.60 per $1,000 of assessed value. An additional levy rate of $0.225 is available to the City because Pension Fund. 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. St not exceed 101% of the largest single levy since 1985. 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. in 2020 was $2.24112 per $1,000 of assessed valuation of $ 7,404,440,430 for a total regular levy of $16,594,254. Special levies approved by the voters are not subject to the limitations listed above. In 2020, the City levied an additional $0.46259 per $1,000 for the Public Safety Plan approved by voters in November 2016. The total additional levy in 2020 was $3,450,011. Due from Other Governments All receivables from other governments are recorded at year-end as amounts Due from Other Governmental Units. These amounts represent federal, state, and local reimbursement-type grants, and are reported as receivables and intergovernmental revenues in the year when the related expenditures are incurred. As of December 31, 2020, the majority represents grants. Notes Receivable Notes receivable for governmental activities consists of the long-term portion of the special assessments related to Local Improvement District (LID) No. 33. Special assessments are levied against certain property owners benefited by the improvement. The current portion of outstanding assessments is reported in the receivables category on the Statement of Net Position and consists of assessments which are due within one year and delinquent assessments from the prior year. Assessments are charged to property owners within the LID annually with payments due in October of each year. The repayment period for the assessments is 15 years with the first installment due in 2014 and the final installment due in 2028. City designed and constructed sewer infrastructure in both the Allentown and Foster Point neighborhoods, which was previously on septic. The project was completed and accepted by City Council in 2007. The connection fees to be paid by property owners were established by ordinance, effective in August of 2007. One option given to property owners was an installment payment plan. This option allowed owners to sign an agreement to have the connection charge added to their monthly water bill and repaid over 5, 10, or 15 years with a 4% annual interest rate. The balance reflects all principal outstanding at year-end. 58 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Business- Governmental Type ActivitiesActivitiesTotal Notes Receivable Special Assessments 3,008,356$ -$ 3,008,356$ Developer Agreements629,321 -629,321 Sewer Payment Plan- 90,251 90,251 Total Receivables$ 3,637,678$ $ 90,2513,727,928 Interfund activity is the term used to describe similar financial transactions between funds of the primary government. Reciprocal interfund activity involves the exchange of equal or almost equal value between funds. Transactions that would be treated as revenues, expenditures or expenses if they involve external organizations, such as buying goods and services in return for equal or almost equal value, are similarly treated when they involve other funds of the City of Tukwila. 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. As of December 31, 2020, the City has no outstanding interfund loans or advances. Nonreciprocal interfund activity does not involve the exchange of equal or almost equal value between funds. Transactions to support the operations of other f the fund statements. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide financial statements. 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. Repayments from funds responsible for expenditures or expenses to the funds that initially paid for them. These transactions are expenditures/expense in the fund responsible and as a reduction of expenditure/expensed in the fund being reimbursed. Interfund transfers for the year were as follows: SUMMARY OF INTERFUND TRANSFERS GovernmentalProprietary FundsFundsTOTAL GeneralPublic SafetyArterialOther Gov'tTotalGolfSurface FundPlanStreetFundsGovernmentalWaterSewerCourseWater Transfers In400,000$ 3,181,775$ $ $ 8,867,680$ --$ 300,000$ -$ 9,167,680$ $ -5,285,905 Transfers Out (4,862,449) (190,106)- (3,581,775)$ (8,634,330) (197,423) (97,316)- (9,167,680) (238,611) Net Transfers In (Out) $ (4,462,449)$ 3,181,775$ (190,106)$ 1,704,130$ 233,350$ (97,316)(197,423)$ 300,000$ (238,611)$ -$ The principal purposes for interfund transfers include interfund subsidies and transfers into debt service and capital projects funds. 59 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Operating Leases City Records Center Effective June 1, 2009, the City entered into a 60-month non-cancelable lease with International Gateway East, th Place, Tukwila in order to store LLC to rent a warehouse at 3411 South 120 the City opted to extend the lease. Currently, the lease automatically extends for successive twelve-month periods on the same terms and conditions within the lease. Ninety-day notice is required if either party desires to prevent the automatic renewal. The total lease payments for 2020 were $103,926. Future lease payments beyond the current twelve-month period are estimated to increase at 2% on an annual basis. Future lease payments to International Gateway East, LLC are estimated to total $51,492 for 2021 as the lease will be terminated in June ill be moved to the City Hall campus. Police Archives/Vehicle Storage Effective September 1, 2015, the City entered into a 63-month non-cancelable lease with IIT Andover DC, LLC to rent facilities at 571 Strander Boulevard in Tukwila for Police archives including vehicle storage. The lease expired December 31, 2020. The total lease payments for 2020 was $80,369. When the lease expired, the Police Department converted old Fire Station 51 into a secure evidence/article archive and evidentiary vehicle storage site. Since this is City-owned property, there is no lease payment for 2021. Police Department Gym Effective September 1, 2015, the City and the Tukwila Po lease with NCWP-Andover Executive Park, LLC to rent space for a gym located at 611 Industry Drive. The City ended this lease in October 2020 as Police Department employees are able to maintain their physical and mental fitness by using gym space at the Justice Center. The total lease payments made by the City for 2020 were $12,155. Laptop Computers Effective September 1, 2020, the City entered into a 36-month non-cancelable lease with Dell Financial Services, ees. At conclusion of the lease term, the City has the option to purchase the products with a $1 buyout, per device. The City made its first lease payment of $106,814 on the new contract in 2020. Postage Machine Effective May 4, 2018, the City entered into a 60-month non-cancelable lease with Pitney Bowes, Inc. to lease postage equipment. The total lease payments made by the City for 2020 was $7,632. Future lease payments to Pitney Bowes, Inc. total $7,639 for 2021. During 2020, the City also maintained operating lease agreements for copiers and other various office equipment. Minimum future rental payments are summarized as follows: City Records Postage Laptop Office Year Ending CenterMachineComputersEquipment December 31Amount 2021$ 7,63951,492$ $ 106,814$ 24,124$ 190,069 2022 - 7,639 106,814 - 114,453 2023 - 2,548 - - 2,548 2024 - - - - - 2025 - - - - - Thereafter - - - - - TOTAL$ 51,492$ 17,826$ 213,628$ 24,124$ 307,070 60 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Capital asset activity for the year ended December 31, 2020, was as follows: GOVERNMENTAL ACTIVITIES BEGINNING ENDING BALANCE BALANCE 1/1/202012/31/2020 INCREASESDECREASES Governmental Activities Capital assets, not being depreciated: Land36,219,323$ 15,500,051$ -$ 51,719,374$ Construction in Progress81,113,06017,178,945 (47,170,773) 51,121,232 Total capital assets not being depreciated117,332,38332,678,996(47,170,773)102,840,605 Capital assets, being depreciated: Buildings24,529,23561,148,678 - 85,677,913 Other Improvements24,265,01970,092 - 24,335,111 Machinery and Equipment27,473,0383,162,386 (2,861,476) 27,773,948 Infrastructure226,994,338661,293 - 227,655,631 Total capital assets being depreciated303,261,63165,042,449 (2,861,476) 365,442,604 Less accumulated depreciation for: Buildings(14,990,644)(792,449) - (15,783,094) Other Improvements(15,849,849)(974,191) - (16,824,040) Machinery and Equipment(17,987,291)(1,807,934) 2,414,890 (17,380,336) Infrastructure(76,421,726)(6,633,373) - (83,055,099) Total accumulated depreciation(125,249,511)(10,207,947)2,414,890(133,042,568) Total capital assets, being depreciated, net178,012,12054,834,502(446,587)232,400,036 Governmental activity capital assets, net295,344,503$ 87,513,498$ (47,617,360)$ 335,240,641$ 61 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS BUSINESS-TYPE ACTIVITIES BEGINNING ENDING BALANCE BALANCE 1/1/202012/31/2020 INCREASESDECREASES Business-Type Activities Capital assets, not being depreciated: Land2,346,230$ -$ -$ 2,346,230$ Construction in Progress1,120,6572,075,141 (500,789) 2,695,009 Total capital assets, not being depreciated3,466,8882,075,141 (500,789) 5,041,239 Capital assets, being depreciated: Buildings13,284,419- -13,284,419 Other Improvements101,075,362 802,829 (287,944)101,590,247 Machinery and Equipment2,263,7901,005,757 (6,435)3,263,112 Total capital assets being depreciated116,623,5711,808,586 (294,379)118,137,778 Less accumulated depreciation for: Buildings(6,092,569)(371,795) -(6,464,364) Other Improvements(39,345,013)(1,957,235) (41,296,324)5,925 Machinery and Equipment(1,917,452)(595,842) (2,512,865)429 Total accumulated depreciation(47,355,035)(2,924,872) (50,273,553)6,354 Total capital assets, being depreciated, net69,268,536(1,116,286) (288,025)67,864,225 Business-Type activity capital assets, net72,735,424$ $ 958,854$ (788,814)$ 72,905,464 62 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS DEPRECIATION Depreciation expense for 2020 was charged to functions/programs as follows: Governmental Activities General Government$ 1,031,003 Public Safety 128,438 Transportation 6,659,149 Culture and Recreation 987,131 Capital assets held by the government's internal service funds are 1,402,227 charged to the various functions based on their usage of the assets Total 2020 depreciation expense - governmental activities$ 10,207,947 Business-type activities: Water Utility$ 563,383 Sewer Utility 388,003 Foster Golf Course 345,974 Surface Water Utility 1,126,843 Total 2020 depreciation expense - business-type activities$ 2,424,203 A joint venture is a legal entity or other organization that results from a contractual agreement and that is owned, operated, or governed by two or more participants as a separate and specific activity subject to joint control in which the participants retain (a) an on-going financial interest or (b) an on-going financial responsibility. The City participates in two joint ventures. A summary of tjoint ventures follows. Equity in Equity in Capital TOTAL OperationsAssets financed by Investment in Outstanding DebtJoint Ventures Valley Com3,416,212$ -$ 3,416,212$ SCORE2,357,977 4,745,772 7,103,749 TOTAL5,774,189$ 4,745,772$ 10,519,961$ Valley Communications Center st 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. Federal Way 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. 63 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS 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. 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. The 2020 cost distribution for the five (5) participating cities is as follows: Dispatchable Percent of CityCallsTotal Renton85,71721.74% Kent108,28227.46% Auburn84,80621.51% Tukwila34,8708.84% Federal Way80,64720.45% Total394,322100.00% Valley Com is governed by an Administration Board composed of the Mayors from the five participating cities of Renton, Kent, Auburn, Tukwila, and Federal Way. The Board is responsible for the following functions: (1) Adopting an annual budget after review by participating legislative bodies; (2) Appointment and/or discharge of the Director; (3) Approves personnel policy and makes final decisions on all major policy changes; (4) Reviews and approves all contracts. In addition, an Operating Board was established and consis 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. The proposed 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 (5) participating cities is as follows: FEDERAL ITEMRENTONKENTAUBURNTUKWILAWAYTOTAL Equity January 1, 2020$ 6,430,886$ 6,633,6808,797,965$ 3,169,346$ 5,451,596$ $ 30,483,473 Current Year Increase/(Decrease)606,843 766,590 600,389 246,866 570,949 2,791,637 Equity December 31, 2020$ 7,037,728$ 7,234,0699,564,555$ 3,416,212$ 6,022,545$ $ 33,275,110 Percent of Equity21.15%28.74%21.74%10.27%18.10%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 RCW 39.34 RCW, with the sub- regions of King County, Seattle, and the Eastside Public Safety Communications Agency. This agreement governs the development, acquisition and installation of the 800 MHz emergency radio communications system funded by a $57 million King County levy approved in November 1992. This agreement provides that upon voluntary equipment and transfers any unexpended levy proceeds and associated equipment replacement reserves to 64 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS another sub-region or consortium of sub-regions. Thus, in accordance with this agreement, the participating cities 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 was responsible for one-fifth of the debt obligation, which originally was $2,551,600 per City. The basic agreement shall not be terminated until all bonds issued by Valley Communications Center Development Authority have been paid and retired. The final payment on the bonds was made in 2015. th Ave SE, A complete set of financial statements are available from Valley Communications Center, 27519 108 Kent, WA 98030, or by telephone 253-372-1300. South Correctional Entity (SCORE) On March 25, 2009, the Cities of Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and Tukwila, Washington (Member Cities) entered into a SCORE Facility Interlocal Agreement (as amended and restated on t to chapter 39.34 RCW (Interlocal Cooperation Act) to jointly construct, equip, maintain and operate a consolidated regional misdemeanant correctional facility located in Des Moines, Washington (SCORE Facility) to serve the parties to the 2009 Interlocal Agreement and state agencies and other local governments (Subscribing Agencies) to provide correctional services essential to the preservation of the public health, safety and welfare. To carry out the purposes of the 2009 Interlocal Agreement and to operate, manage and maintain the SCORE Facility, the Member Cities formed the South Correctional Entity (SCORE), a separate governmental administrative agency pursuant to the 2009 Interlocal Agreement and RCW 39.34.030(3). enjoy the same equity position as the Owner Cities until all debts issued are paid and the Host City fulfills all of its obligations as outlined in the Host City Agreement. Pursuant to SCORE financial policies, all unexpected funds or SCORE Facility for the last three (3) years regardless of its Owner City or Host City status. SCORE and the SCORE Facility may serve the Member Cities and Subscribing Agencies which are in need of correctional facilities. Any agreement with a Subscribing Agency shall be in writing and approved by SCORE as provided within the SCORE Formation Interlocal Agreement. SCORE, as a governmental administrative agency formed under the Interlocal Cooperation Act, is not expressly authorized to issue bonds. To finance and refinance the costs of the SCORE Facility, the City of Renton, Washington, chartered the South Correctional Entity Facility Public Development Authority as a public corporation pursuant to RCW 35.21.730 through 35.21.757 (Public Corporation Act) and Ordinance No. 5444, passed on February 2, 2009 (Charter Ordinance). 2009 Bonds. The SCORE PDA issued its Bonds, Series 2009A (2009A Bonds) and Bonds, Series 2009B (Taxable and, together the 2009 Bonds) on November 4, 2009 in the aggregate principal amount of $86,235,000. Proceeds of the 2009 Bonds were used to finance a portion of the costs of acquiring, constructing, developing, equipping and improving the SCORE Facility, to capitalize interest during construction, and to pay costs of issuance for the 2009 Bonds. Pursuant to the 2009 Interlocal Agreement and the ordinances of each city, each Owner City (which includes the Cities of Auburn, Burien, Federal Way, Renton, SeaTac, and Tukwila) is obligated to budget for and pay its share, and only its share, of the principal of and interest on the 2009 Bonds as the same become due and payable (referred Contribution is an irrevocable, unconditional full faith and credit obligation of such Owner City, payable from regular property taxes levied within the constitutional and statutory authority provided without a vote of the electors of the Owner City on all of the taxable property within the Owner City and other sources of revenues available therefor. Subsequent Activities: Refunding of 2009 Bonds and Amendment and Restatement of Interlocal Agreement. Pursuant to the 2009 Interlocal Agreement, on September 5, 2018, the City of Federal Way gave its 65 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS notice of intent to withdraw from SCORE effective December 31, 2019. The remaining Member Cities (including the cities of Auburn, Burien, Des Moines, Renton, SeaTac and Tukwila) entered into an Amended and Restated SCORE Interlocal Agreement (2019 Interlocal Agreement), which amended and restated the 2009 Interlocal Agreement in its entirety, removed Federal Way as a Member City (effective December 31, 2019) and an Owner City (effective immediately), added the City of Des Moines as an Owner City, terminated the Host City Agreement, and made other revisions to provide for the issuance of bonds to refund the 2009 Bonds. On December 11, 2019, the Authority issued its Refunding Bonds, Series 2019 in the aggregate principal amount of $51,055,000 (2019 Bonds). The 2019 Interlocal Agreement became effective on the date of issuance of the 2019 Bonds. Proceeds of the 2019 Bonds were used, together with a contribution from Federal Way to fully pay its 2009 Capital Contribution, to defease and refund all of the outstanding 2009 Bonds. As a result, Federal Way has satisfied its 2009 Capital Contribution and, as of December 31, 2019, will no longer be considered a Member City of SCORE. Pursuant to the 2019 Interlocal Agreement and the ordinances of each city, each remaining Owner City (including the Cities of Auburn, Burien, Des Moines, Renton, SeaTac, and Tukwila) is obligated to budget for and pay its share, and only its share, of the principal of and interest on the 2019 Bonds as the same become due and payable Contribution is an irrevocable, unconditional full faith and credit obligation of such Owner City, payable from regular property taxes levied within the constitutional and statutory authority provided without a vote of the electors of the Owner City on all of the taxable property within the Owner City and other sources of revenues available therefor. The City of Federal Way is not obligated, under the 2019 Interlocal Agreement or otherwise, to pay debt service on the 2019 Bonds or other debt of the Authority. The following is a summary of the debt service requirements for the 2019 Bonds: SUMMARY OF DEBT SERVICE REQUIREMENTS Debt Service ScheduleDebt Service Allocation to Owner Cities Auburn Burien Des MoinesRentonSeaTacTukwila YearPrincipalInterestTotal34.94%4.82%6.02%40.96%3.62%9.64% 20211,840,000 2,069,700 3,909,700 1,366,049 188,448 235,364 1,601,413 141,531 376,895 20221,915,000 1,996,100 3,911,100 1,366,538 188,515 235,448 1,601,987 141,582 377,030 20231,990,000 1,919,500 3,909,500 1,365,979 188,438 235,352 1,601,331 141,524 376,876 20242,070,000 1,839,900 3,909,900 1,366,119 188,457 235,376 1,601,495 141,538 376,914 20252,155,000 1,757,100 3,912,100 1,366,888 188,563 235,508 1,602,396 141,618 377,126 2026-203012,490,000 7,058,750 19,548,750 6,830,333 942,250 1,176,835 8,007,168 707,665 1,884,500 2031-203515,745,000 3,800,650 19,545,650 6,829,250 942,100 1,176,648 8,005,898 707,553 1,884,201 2036-203811,025,000 704,450 11,729,450 4,098,270 565,359 706,113 4,804,383 424,606 1,130,719 Totals49,230,000$ 21,146,150$ 70,376,150$ 24,589,426 3,392,130 4,236,644 28,826,071 2,547,617 6,784,261 The City of Tukwila reports its share of equity interest in the Governmental Activities column within the Government- wide financial statements under assets. The following is condensed (unaudited) financial information as of December 31, 2020 related to SCORE. The share of equity belonging to the six participating cities are as follows: 2019 Percent of 2019 Equity 2020 Percent of 2020 2020 Equity Member City EquityBalanceEquityApportionmentBalance Auburn 42.75%13,485,956 43.05%(518,256) 12,967,700 Burien 5.21%1,642,751 5.14%(94,368) 1,548,383 Des Moines4.65%1,465,438 4.62%(72,731) 1,392,707 Federal Way0.00% -0.00% - - Renton31.93%10,070,783 31.70%(524,445) 9,546,338 Seatac7.59%2,395,411 7.66%(88,853) 2,306,558 Tukwila7.87%2,481,579 7.83%(123,602) 2,357,977 Grand Totals100.00%31,541,918 100.00%(1,422,255) 30,119,663 66 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS The investment in joint venture for SCORE on the Statement of Net Position includes Tukwila's share of debt refinanced in 2019. As of December 31, 2020, the City's share of SCORE debt is $4,745,772. See Note 10 for additional information on long-term debt. Completed financial statements for SCORE and SCORE PDA can be th obtained from the SCORE, Attn: Finance Manager, 20817 17 Avenue South, Des Moines, WA 98198. The following table represents the aggregate pension amounts for all plans for the year 2020: Aggregate Pension Amounts All Plans Pension liabilities $ (5,885,409) Pension assets 10,863,802 Deferred outflows of resources 4,079,669 Deferred inflows of resources (3,760,182) Pension expense/expenditures 338,243 State Sponsored Pension Plans ying part-time employees participate in one of the following statewide retirement systems administered by the Washington State Department of Retirement Systems, under cost-sharing, multiple-employer public employee defined benefit and defined contribution retirement plans. The state Legislature establishes, and amends, laws pertaining to the creation and administration of all public retirement systems. The Department of Retirement Systems (DRS), a department within the primary government of the State of Washington, issues a publicly available Annual Financial Report that includes financial statements and required supplementary information for each plan. The DRS Annual Financial Report may be obtained by writing to: Department of Retirement Systems Communications Unit P.O. Box 48380 Olympia, WA 98540-8380 Or the DRS Annual Financial Report may be downloaded from the DRS website at www.drs.wa.gov. PERS members include elected officials; state employees; employees of the Supreme, Appeals and Superior Courts; employees of the legislature; employees of district and municipal courts; employees of local governments; and higher education employees not participating in higher education retirement programs. PERS is comprised of three separate pension plans for membership purposes. PERS plans 1 and 2 are defined benefit plans, and PERS plan 3 is a defined benefit plan with a defined contribution component. PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as two percent ers are eligible for retirement from active status at any age with at least 30 years of service, at age 55 with at least 25 years of service, or at age 60 with at least five years of service. Members retiring from active status prior to the age of 65 may receive actuarially reduced benefits. Retirement benefits are actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-duty disability payments, an optional cost-of-living adjustment (COLA), and a one-time duty-related death benefit, if found eligible by the Department of Labor and Industries. PERS 1 members were vested after the completion of five years of eligible service. The plan was closed to new entrants on September 30, 1977. 67 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Contributions The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The employer contribution rate is developed by the Office of the State Actuary and includes an administrative expense component that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates. The PERS Plan 1 required contribution rates (expressed as a percentage of covered payroll) for 2020 were as follows: PERS Plan 1 Actual Contribution Rates Employer Employee* January August 2020 PERS Plan 1 7.92% 6.00% PERS Plan 1 UAAL 4.76% Administrative Fee 0.18% Total 12.86% 6.00% September December 2020 PERS Plan 1 7.92% 6.00% PERS Plan 1 UAAL 4.87% Administrative Fee 0.18% Total 12.97% 6.00% * For employees participating in JBM, the contribution rate was 12.26%. PERS Plan 2/3 provides retirement, disability, and death benefits. Retirement benefits are determined as two percent of AFC for Plan 3. The AFC st-paid consecutive service months. There is no cap on years of service credit. Members are eligible for retirement with a full benefit at 65 with at least five years of service credit. Retirement before age 65 is considered an early retirement. PERS Plan 2/3 members who have at least 20 years of service credit and are 55 years of age or older, are eligible for early retirement with a benefit that is reduced by a factor that varies according to age for each year before age 65. PERS Plan 2/3 members who have 30 or more years of service credit and are at least 55 years old can retire under one of two provisions: With a benefit that is reduced by three percent for each year before age 65; or With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return-to-work rules. PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of five percent for each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least 30 years of service credit. PERS Plan 2/3 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other PERS Plan 2/3 benefits include duty and non-duty disability payments, a cost-of-living allowance (based on the CPI), capped at three percent annually and a one-time duty related death benefit, if found eligible by the Department of Labor and Industries. PERS 2 members are vested after completing five years of eligible service. Plan 3 members are vested in the defined benefit portion of their plan after ten years of service; or after five years of service if 12 months of that service are earned after age 44. PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment earnings on those contributions. PERS Plan 3 members choose their contribution rate upon joining membership and have a chance to change rates upon changing employers. As established by statute, Plan 3 required defined contribution rates are set at a minimum of 5 percent and escalate to 15 percent with a choice of six options. Employers do not contribute to the defined contribution benefits. PERS Plan 3 members are immediately vested in the defined contribution portion of their plan. 68 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Contributions The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include a component to address the PERS Plan 1 UAAL and an administrative expense that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee contribution rates and Plan 3 contribution rates. The PERS Plan 2/3 required contribution rates (expressed as a percentage of covered payroll) for 2020 were as follows: PERS Plan 2/3 Actual Contribution Rates Employer 2/3 Employee 2* January August 2020 PERS Plan 2/3 7.92% 7.41% PERS Plan 1 UAAL 4.76% Administrative Fee 0.18% Employee PERS Plan 3 Varies Total 12.86% 7.41% September December 2020 PERS Plan 2/3 7.92% 7.90% PERS Plan 1 UAAL 4.87% Administrative Fee 0.18% Employee PERS Plan 3 Varies Total 12.97% 7.90% * For employees participating in JBM, the contribution rate was 19.75%. were $740,837 to PERS Plan 1 and $1,210,475 to PERS Plan 2/3 for the year ended December 31, 2020. Retirement System (PSERS) PSERS Plan 2 was created by the 2004 Legislature and became effective July 1, 2006. To be eligible for membership, an employee must work on a full-time basis and: Have completed a certified criminal justice training course with authority to arrest, conduct criminal investigations, enforce the criminal laws of Washington, and carry a firearm as part of the job; or Have primary responsibility to ensure the custody and security of incarcerated or probationary individuals; or Function as a limited authority Washington peace officer, as defined in RCW 10.93.020; or Have primary responsibility to supervise eligible members who meet the above criteria. PSERS membership includes: PERS 2 or 3 employees hired by a covered employer before July 1, 2006, who met at least one of the PSERS eligibility criteria and elected membership during the period of July 1, 2006 to September 30, 2006; and Employees hired on or after July 1, 2006 by a covered employer, that meet at least one of the PSERS eligibility criteria. 69 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS PSERS covered employers include: Certain State of Washington agencies (Department of Corrections, Department of Natural Resources, Gambling Commission, Liquor and Cannabis Board, Parks and Recreation Commission, and Washington State Patrol), Washington State Counties, Washington State Cities (except for Seattle, Spokane, and Tacoma), Correctional entities formed by PSERS employers under the Interlocal Cooperation Act. PSERS Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the average final compensation (AFC) for each consecutive highest creditable months of service. Benefit age is less than 60 (with ten or more service credit years in PSERS), or less than 65 (with fewer than ten service credit years). There is no cap on years of service credit. Members are eligible for retirement at the age of 65 with five years of service; or at the age of 60 with at least ten years of PSERS service credit; or at age 53 with 20 years of service. Retirement before age 60 is considered an early retirement. PSERS members who retire prior to the age of 60 receive reduced benefits. If retirement is at age 53 or older with at least 20 years of service, a three percent per year reduction for each year between the age at retirement and age 60 applies. PSERS Plan 2 retirement benefits are actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-duty disability payments, an optional cost-of living adjustment (COLA), and a one-time duty-related death benefit, if found eligible by the Department of Labor and Industries. PSERS Plan 2 members are vested after completing five years of eligible service. Contributions The PSERS Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund Plan 2. The Plan 2 employer rates include components to address the PERS Plan 1 unfunded actuarial accrued liability and administrative expense currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee contribution rates. 70 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS The PSERS Plan 2 required contribution rates (expressed as a percentage of current-year covered payroll) for 2020 were as follows: PSERS Plan 2 Actual Contribution Rates Employer Employee JanuaryAugust 2020 PSERS Plan 2 7.20% 7.20% PERS Plan 1 UAAL 4.76% Administrative Fee 0.18% Total 12.14% 7.20% September December 2020 PSERS Plan 2 7.20% 7.20% PERS Plan 1 UAAL 4.87% Administrative Fee 0.18% Total 12.25% 7.20% contributions were $12,039 to PSERS Plan 2 for the year ended December 31, 2020. LEOFF membership includes all full-time, fully compensated, local law enforcement commissioned officers, firefighters, and as of July 24, 2005, emergency medical technicians. LEOFF is comprised of two separate defined benefit plans. LEOFF Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined per year of service calculated as a percent of final average salary (FAS) as follows: The FAS 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 e eligible for retirement with five years of service at the age of 50. Other benefits include duty and non-duty disability payments, a cost-of living adjustment (COLA), and a one-time duty-related death benefit, if found eligible by the Department of Labor and Industries. LEOFF 1 members were vested after the completion of five years of eligible service. The plan was closed to new entrants on September 30, 1977. Contributions Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent, as long as the plan remains fully funded. The LEOFF Plan I had no required employer or employee contributions for fiscal year 2020. Employers paid only the administrative expense of 0.18 percent of covered payroll. LEOFF Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the final average salary (FAS) per year of service (the FAS is based on the highest consecutive 60 months). Members are eligible for retirement with a full benefit at 53 with at least five years of service credit. Members who retire prior to the age of 53 receive reduced benefits. If the member has at least 20 years of service and is age 50, the reduction is three percent for each year prior to age 53. Otherwise, the benefits are actuarially reduced for each year prior to age 53. LEOFF 2 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-duty disability payments, a cost-of-living allowance (based on the CPI), capped at three percent annually and a one-time duty-related death benefit, if found eligible by the 71 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Department of Labor and Industries. LEOFF 2 members are vested after the completion of five years of eligible service. Contributions The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund Plan 2. The employer rate includes an administrative expense component set at 0.18 percent. Plan 2 employers and employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board. Effective July 1, 2017, when a LEOFF employer charges a fee or recovers costs for services rendered by a LEOFF 2 member to a non-LEOFF employer, the LEOFF employer must cover both the employer and state contributions on the LEOFF 2 basic salary earned for those services. The state contribution rate (expressed as a percentage of covered payroll) was 3.44% in 2020. The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2020 were as follows: LEOFF Plan 2 Actual Contribution Rates Employer Employee January December 2020 State and local governments 5.15% 8.59% Administrative Fee 0.18% Total 5.33% 8.59% Ports and Universities 8.59% 8.59% Administrative Fee 0.18% Total 8.77% 8.59% an were $789,810 for the year ended December 31, 2020. The Legislature, by means of a special funding arrangement, appropriates money from the state General Fund to supplement the current service liability and fund the prior service costs of Plan 2 in accordance with the recommendations of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. This special funding situation is not mandated by the state constitution and could be changed by statute. For the state fiscal year ending June 30, 2020, the state contributed $76,297,643 to LEOFF Plan 2. The amount recognized by the City as its proportionate share of this amount is $547,990. Actuarial Assumptions The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation completed in 2020 with a valuation date of June 30, 2019. The actuarial assumptions used in the valuation were based on the results of the Office 2013-2018 Experience Study and the 2019 Economic Experience Study. Additional assumptions for subsequent events and law changes are current as of the 2019 actuarial valuation report. The TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2020. Plan liabilities were rolled forward from June 30, 2019, the entry-age cost method), assumed interest and actual benefit payments. Inflation: 2.75% total economic inflation; 3.50% salary inflation Salary increases: In addition to the base 3.50% salary inflation assumption, salaries are also expected to grow by promotions and longevity. Investment rate of return: 7.4% 72 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Mortality rates were developed using the Society of Actuarie status, as the base table. The OSA applied age offsets for each system, as appropriate, to better tailor the mortality rates to the demographics of each plan. OSA applied the long-term MP-2017 generational improvement scale, also developed by the Society Actuaries, to project mortality rates for every year after the 2010 base table. Mortality rates are applied on a generational basis; meaning, each member is assumed to receive additional mortality improvements in each future year throughout his or her lifetime. There were changes in methods and assumptions since the last valuation. OSA updated its demographic assumptions based on the results of its latest demographic experience study. nce Study at leg.wa.gov/osa. OSA updated the Early Retirement Factors and Joint-and-Survivor factors used in its model to match the ones implemented by DRS on October 1, 2020. These factors are used to value benefits for members who elect to retire early and for survivors of members that die prior to retirement. The valuation includes liabilities and assets for Plan 3 members purchasing Total Allocation Portfolio annuities when determining contribution rates and funded status. OSA simplified its modeling of medical premium reimbursements for survivors of duty-related deaths in LEOFF 2. OSA changed its method of updating certain data items that change annually, including the public safety duty-related death lump sum and Washington state average wage. OSA set these values at 2018 and will project them into the future using assumptions until the next Demographic Experience Study in 2025. See leg.wa.gov/osa for more information on this method change. Discount Rate The discount rate used to measure the total pension liability for all DRS plans was 7.4 percent. To determine that rate, an asset sufficiency test was co projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return of 7.4 percent was used to determine the total liability. Long-Term Expected Rate of Return The long-term expected rate of return on the DRS pension plan investments of 7.4 percent was determined using a building-block-method. In selecting this assumption, the Office of the State Actuary (OSA) reviewed the historical experience data, considered the historical conditions that produced past annual investment returns, and considered investment returns provided by the Washington State r target asset allocation to simulate future investment returns at various future times. Estimated Rates of Return by Asset Class Best estimates of arithmetic real rates of return for asset allocation as of June 30, 2020, are summarized in the following table. The inflation component used to create the table is 2.2 percent and representestimate of broad economic inflation. 73 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS % Long-Term Asset Class Target Expected Real Rate of Allocation Return Arithmetic Fixed Income 20% 2.20% Tangible Assets 7% 5.10% Real Estate 18% 5.80% Global Equity 32% 6.30% Private Equity 23% 9.30% 100% Sensitivity of the Net Pension Liability/(Asset) e share of the net pension liability calculated using the discount rate of 7.4 percent, as well asonate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.4 percent) or 1-percentage point higher (8.4 percent) than the current rate. 1% Decrease Current Discount 1% Increase (6.4%) Rate (8.4%) (7.4%) PERS 1 $ 5,028,221 $ 4,014,365 $3,130,179 PERS 2/3 11,642,127 1,871,042 (6,175,451) PSERS 2 42,778 (3,929) (40,896) LEOFF 1 (1,255,867) (1,542,931) (1,791,290) LEOFF 2 (176,916) (8,936,519) (16,108,886) Pension Plan Fiduciary Net Position net position is available in the separately issued DRS financial report. Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2020, the City of Tukwila reported a total pension asset of $10,863,802 and a total pension liability of $5,885,409 for its proportionate share of the net pension liabilities as follows: Liability or (Asset) PERS 14,014,365 PERS 2/3 1,871,042 PSERS 2(3,929) LEOFF 1 (1,542,931) LEOFF 2 (8,936,519) Firemen's Pension (380,424) The amount of the asset reported above for LEOFF Plans 1 and 2 reflects a reduction for State pension support provided to the City of Tukwila. The amount recognized by the City of Tukwila as its proportionate share of the net pension asset, the related State support, and the total portion of the net pension asset that was associated with the City of Tukwila were as follows: 74 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS LEOFF 1 (Asset)LEOFF 2 (Asset) Employ$ (1,542,931) $ (8,936,519) (10,436,345) (5,714,227) pension asset associated with the employer TOTAL $ (11,979,276) $ (14,650,746) the collective net pension liabilities was as follows: tƩƚƦƚƩƷźƚƓğƷĻtƩƚƦƚƩƷźƚƓğƷĻ/ŷğƓŭĻźƓ {ŷğƩĻЏΉЌЉΉЊВ{ŷğƩĻЏΉЌЉΉЋЉtƩƚƦƚƩƷźƚƓ t9w{ЊЉ͵ЊЋЊЋВЊіЉ͵ЊЊЌАЉЍіЉ͵ЉЉАЎБАі t9w{ЋΉЌЉ͵ЊЎЍВЉЌіЉ͵ЊЍЏЋВЏіЉ͵ЉЉБЏЉАі t{9w{ЋЉ͵ЉЌЋЊЎБіЉ͵ЉЋБЎЎАіЉ͵ЉЉЌЏЉЊі \[9hCCЊЉ͵ЉБЋЏЏБіЉ͵ЉБЊАЉЊіЉ͵ЉЉЉВЏАі \[9hCCЋЉ͵ЍАЌАЎЎіЉ͵ЍЌБЉВЏіЉ͵ЉЌЎЏЎВі Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are used as the basis for determining each emplctive pension amounts reported by the DRS in the Schedules of Employer and Nonemployer Allocations for all plans except LEOFF 1. LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1 from 1971 through 2000 and the retirement benefit payments in fiscal year 2020. Historical data was obtained from a 2011 study by the Office of the State Actuary (OSA). In fiscal year 2020, the state of Washington contributed 87.12 percent of LEOFF 1 employer contributions and all other employers contributed the remaining 12.88 percent of employer contributions. LEOFF 1 is fully funded and no further employer contributions have been required since June 2000. If the plan becomes underfunded, funding of the remaining liability will require new legislation. The allocation method the plan chose reflects the projected long-term contribution effort based on historical data. In fiscal year 2020, the state of Washington contributed 39 percent of LEOFF 2 employer contributions pursuant to RCW 41.26.725 and all other employers contributed the remaining 61 percent of employer contributions. The collective net pension liability (asset) was measured as of June 30, 2020, and the actuarial valuation date on which the total pension liability (asset) is based was as of June 30, 2019, with update procedures used to roll forward the total pension liability to the measurement date. Pension Expense For the year ended December 31, 2020, the City of Tukwila recognized pension expense as follows: Pension Expense PERS 1$ (121,423) PERS 2/3 66,532 PSERS 2 8,440 LEOFF 1 (62,166) LEOFF 2 446,860 Firemen's Pension (17,924) $320,319 Total 75 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Deferred Outflows of Resources and Deferred Inflows of Resources At December 31, 2020, the City of Tukwila reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred PERS 1Outflows of Inflows of Resources Resources Differences between expected and actual experience - - Net difference between projected and actual investment earnings on pension plan investments - (22,351) Changes of assumptions - - Changes in proportion and differences between contributions - - and proportionate share of contributions Contributions subsequent to the measurement date 336,793 - TOTAL 336,793 (22,351) Deferred Deferred PERS 2/3Outflows of Inflows of Resources Resources Differences between expected and actual experience 669,806 (234,486) Net difference between projected and actual investment earnings on pension plan investments - (95,022) Changes of assumptions 26,649 (1,278,084) Changes in proportion and differences between contributions and proportionate share of contributions - (458,490) Contributions subsequent to the measurement date 545,902 - TOTAL 1,242,357 (2,066,082) Deferred Deferred PSERS 2Outflows of Inflows of Resources Resources Differences between expected and actual experience 5,399 (294) Net difference between projected and actual investment 210 - earnings on pension plan investments Changes of assumptions 20 (7,428) Changes in proportion and differences between contributions 1,038 (4,289) and proportionate share of contributions Contributions subsequent to the measurement date 5,741 - TOTAL 12,408 (12,011) 76 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Deferred Deferred LEOFF 1Outflows of Inflows of Resources Resources Differences between expected and actual experience - - Net difference between projected and actual investment earnings on pension plan investments - (16,139) Changes of assumptions - - Changes in proportion and differences between contributions - - and proportionate share of contributions Contributions subsequent to the measurement date - - TOTAL - (16,139) Deferred Deferred LEOFF 2Outflows of Inflows of Resources Resources Differences between expected and actual experience 1,236,515 (158,497) Net difference between projected and actual investment earnings on pension plan investments - (99,605) Changes of assumptions 12,946 (1,383,769) Changes in proportion and differences between contributions 858,667 (1,727) and proportionate share of contributions Contributions subsequent to the measurement date 379,984 - TOTAL 2,488,112 (1,643,598) Deferred outflows of resources related to pensions resulting from the City of Tukwila contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended PERS 1 December 31: 2021 $ (101,427) 2022 (3,190) 2023 30,948 2024 51,318 2025 - Thereafter - TOTAL $ (22,351) Year ended PERS 2/3 December 31: 2021 $ (874,627) 2022 (283,386) 2023 (65,001) 2024 89,806 2025 (112,751) Thereafter (123,218) TOTAL $ (1,369,627) 77 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Year ended PSERS 2 December 31: 2021 $ (1,531) 2022 (704) 2023 (46) 2024 550 2025 (662) Thereafter (2,949) TOTAL $ (5,344) Year ended LEOFF 1 December 31: 2021 $ (57,611) 2022 (3,003) 2023 16,378 2024 28,098 2025 - Thereafter - TOTAL $ (16,139) Year ended LEOFF 2 December 31: 2021 $ (552,566) 2022 10,231 2023 230,915 2024 397,652 2025 38,586 Thereafter 339,711 TOTAL $ 464,530 Plan Description Plan Administration: The Firefighters' Pension Fund (FPF) is administered by the City of Tukwila. The plan is a single-employer defined-benefit pension plan that provides pensions for firefighters that were hired prior to 1970. five members: the chairperson of the fire commissioners for said district who shall be chairperson of the board, the county auditor, county treasurer, and in addition, two regularly employed or retired firefighters elected by secret ballot of the employed and retired firefighters. Retired members who are subject to the jurisdiction of the pension board have both the right to elect and the right to be elected under this section. The first members to be elected by the firefighters shall be elected annually for a two- year term. The two firefighter-elected members shall, in turn, select a third eligible member who shall serve in the event of an absence of one of the regularly elected members. Plan membership is limited to active members of the Fire responsible for paying the pensions of those members retired prior to March Therefore, the plan is closed to new members. At December 31, 2019 (the census date), FPF membership consisted of the following: 78 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Type of MembershipTotal Inactive employees, spouses, or beneficiaries currently receiving benefit payments8 Inactive employees entitled to but not yet receiving benefit payments:0 Active employees0 Total 8 Benefits Provided All benefit terms are in statutes RCW 41.16, 41.18, and 41.26. The FPF provides retirement, disability, and death benefits. Each firefighter in service on March 1, 1970 receives the greater of the benefit payable under the Washington Law Enforcement Officers' and Firefighters' Retirement System and the benefits available under the provisions of prior law. Where benefits under the old law exceed those under the new law for any firefighter, the excess benefits are paid from the FPF of the city employing the member on March 1, 1970. All members are retired and drawing benefits. Benefit terms prov retirement benefit. There are two types of increases: escalation by salary in proportion to the current salary of the rank from which the firefighter retired, or an increase proportionate to the increase in the Seattle area CPI, with the change computed annually. Regardless of the increase (or decrease) in the CPI, the benefits are increased at least 2% each year. The former applies to firefighters who retired from service after 1969, their survivors, and to firefighters who retired for duty disability (but not their survivors) after 1961. The latter applies to all other types of monthly benefits. Contributions The City makes contributions based on an actuarially determined rate. As long as the FPF provides for benefits to covered members, the City will be eligible to receive a share of the State's distribution of the fire insurance premium taxes. The amount the City receives is 25% of all monies received by the State from taxes on fire insurance premiums. Contributions can also come from taxes paid pursuant to the provisions of RCW 41.16.060. This statute requires that each municipality levies up to $0.45 (only $0.225 of which can be in excess of the property tax limit pursuant to RCW 84.52.043) per $1,000 of assessed valuation, based on reports by a qualified actuary, to maintain the fund. Reporting period contributions were $68,569. mber 31, 2019 and was used to calculate the net pension Total pension liability$ 1,123,995 Less: Plan fiduciary net position (1,504,419) City's net pension liability$ (380,424) Plan fiduciary net position as a percentage of the total pension liability133.85% Deferred Outflows of Resources and Deferred Inflows of Resources For the report year ended December 31, 2020, the City recognized a pension expense of $(17,924). The City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 79 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Deferred Outflows Deferred Inflows of Resourcesof Resources Net difference between projected and actual investment $48,003 - earnings on pension plan investments Contributions subsequent to the measurement date72,088- Total$120,091 - Deferred outflows of resources related to pensions resulting from the City of Tukwila contributions subsequent to the measurement date, but before the end of the reporting period, will be recognized as a reduction of the net pension liability in subsequent fiscal periods rather than in the current fiscal period. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in the pension expense as follows: Year ended December 31:Amount 2021 $ 20,880 2022 15,569 2023 7,672 2024 3,882 2025 - Remaining - $ 48,003 TOTAL Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of December 31, 2019, using the following actuarial assumptions, applied to all periods included in the measurement: Measurment Date:December 31, 2018December 31, 2019 Discount Rate3.71%2.75% Investment Rate of Return3.71%2.75% Inflation2.75%2.75% Salary Increases3.75%3.50% Mortality RatesMortality Rates were based on tables from the soceity of Actuaries. - Experience studies come from the State of Washington - There were no ad hoc postemployment benefit changes (including ad hoc COLAs) to the plan. Discount Rate The discount rate was used to measure the total pension liability is 2.75%. Since the assets of the plan are invested entirely in short duration fixed income investments, the City has decided to use the same discount rate that is used for its unfunded OPEB valuation. Long-Term Expected Real Rate of Return The long-term expected real rate of return is the same as the discount rate. 80 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Schedule of Changes in the City's Net Pension Liability and Related Ratios Increase / (Decrease) Total Pension Plan Fiduciary Net Pension LiabilityNet PositionLiability (a)(b)(c) = (a) - (b) Balance as of report date December 31, 2019$ 1,176,763$ 1,461,074$ (284,311) Changes for the year: Service cost - - - Interest 42,542 - 42,542 Changes of benefit terms - - - Differences between expected and actual experience(31,990) - (31,990) Changes of asumptions (3,148) - (3,148) Contributions Employer - City's contribution - 68,569 (68,569) Employee contributions - - - Net investment income - 34,948 (34,948) Benefit payments (60,172) (60,172) - Administrative Expenses - - - Other miscellanious income / (expense) - - - Net changes (52,768) 43,345 (96,113) Balance as of report date December 31, 2020$ 1,123,995$ 1,504,419$ (380,424) Sensitivity of Liabilities to Changes in the Discount Rate Sensitivity of the total and net pension liability to changes in the discount rate. The total and net pension liability of the City, as well as what the City's total and net pension liability would be if they were calculated using a discount rate that is one percentage point lower (1.75%) or one percentage point higher (3.75%) follows: 1% DecreaseCurrent Rate1% Increase 1.75%2.75%3.75% Total pension liability (Asset) $ 1,235,289 $ 1,123,995 $ 1,027,896 Increase / (decrease) 111,294 (96,099) % Change9.90%-8.50% Net pension liability (Asset) $ (269,130)$ (380,424)$ (476,523) Increase / (decrease) 111,294 (96,099) % Change-29.30%25.30% Basis of Valuation A general summary of the substantive plan used as the basis of the valuation follows. 81 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Retiree Pension Benefit General Applicable Statutes RCW 41.16, 41.18, 41.26 BenefitsEach firefighter in service on March 1, 1970 receives the greater of the benefit payable under LEOFF or FPF. Where benefits under the old law exceed those under the new for any firefighter, the excess benefits are paid from the FPF of the city employing the member on March 1, 1970. Service Retirement Benefit MemberEligibility: age 50 and 25 years of service (RCW 41.18.040) or Age 50 and five years of service (RCW 41.26.090). Amount of benefit: 50% of salary plus an additional 2% for each year of service in excess of 25 years. Maximum benefit of 60% of salary (does not apply for those retiring after July 1, 2006). SurvivorEligibility: spouse or child. for each additional child. Maximum of 60% of salary). Duty Disability Retirement Benefit MemberEligibility: disabled after six-month waiting period. Amount of benefit: determined the same as Service Retirement Benefit. Recovery: restoration to service. SurvivorSee Survivor's Benefit section under Service Retirement. Non Duty Disability Retirement Benefit Member Eligibility: disabled after 90-day waiting period. Amount of benefit: 50% of salary, or service retirement benefit, if greater. Recovery: see Duty Disability Retirement. Limitations: no benefits payable if firefighter employed elsewhere when disabled. Eligibility: spouse or child Survivor Amount of benefit: 33.3% to widow or children only. 45.8% to widow and one child. 47.6% to widow and two children. 50.0% to widow and three children. 82 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Retiree Pension Benefit (Continued) Death Benefit Duty Eligibility: spouse or child Non-Duty Eligibility: spouse or child Amount of benefit: provisions the same as Survivor's Benefit under Non-Duty Disability Retirement Special Provisions Under disability or death benefits, a surviving spouse may elect a lump-sum payment of $5,000 in lieu of future Vesting Termination after 20 years of service (RCW 41.18.130) or five years of service (RCW 41.26.090). Deferred Benefit CommencementWhen a firefighter would have had 25 years of service (RCW 41.18.130) or age 50 (RCW 41.26.090). Amount of Benefit2% of salary for each year of service. Other provisions apply, see statutes. Death While Vested Prior to Payment of firefighter's deferred benefit to spouse or child. Commencement of Benefits Postretirement Increase Benfits PayableAnnual increase proportionate to the increase in the Seattle-area CPI. Minimum increase at least 2% each year. Type 1: Escalation by salary in proportion to current salary or rank from which the Benefits Payable Under firefighter retired. LEOFF Type 2: Annual increase proportionate to the increase in the Seattle-area CPI. Minimum increase at least 2% each year. Type 1 applies to firefighters who retired from service after 1969, their survivors, and Applicability to firefighters who retired for duty disability (but not their survivors) after 1961. Type 2 applies to all other types of monthly benefits Minimum BenefitAfter April 25, 1973, a minimum benefit of $300 per month to all retired firefighters and their survivors. This minimum is increased by the CPI. Funeral Benefit $500 RCW 41.18.140, no provision under RCW 41.26. 83 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Participant Summary December 31, 2019 - Age and service determined as of the census date. Service Disabled Surviving AgeTotal RetireesRetireesSpouses < 700000 70 - 740101 75 - 791012 80 - 841214 85 - 890000 90 +1001 Total3328 The key actuarial assumptions used for the December 31 valuation were: AssumptionRates Actuarial Cost MethodEntry-Age Normal, Level Percentage of Salary Asset Valuation MethodFair Market Value Valuation DateDecember 31, 2019 Measurement DateDecember 31, 2019 Report DateDecember 31, 2020 Discount RateThe discount rate selected is 2.75%. Since the assets of the plan are invested entirely in short duration fixed income investments, the City has decided to use the same discount rate that is used for its unfunded OPEB valuation, which is the 20- year tax-exempt municipal bond yield. Healthy Mortalitywith mortality improvement scale MP-2019. Disabled Mortalitygenerational with mortality improvement scale MP-2019. Termination Ratesn/a Disabilityn/a Retirementn/a Cost of Living2.75%, based on State of Washington 2019 actuarial valuation report. Used to increase state paid benefits annually. Salary IncreasesSalary Increases 3.50%, based on State of Washington 2019 actuarial valuation report. Used to increase FPF benefits ll 84 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS The following table represents the aggregate OPEB amounts for all plans subject to the requirements of GASB Statement 75 for the year 2020: Aggregate OPEB Amounts OPEB Liabilities$ 7,622,718 OPEB Assets $ - Deferred outflows of resources $ 374,959 Deferrred inflows of resources$ - OPEB expenses/expenditures$ (4,633,176) Plan Description The City of Tukwila's LEOFF Plan 1 (the Plan) is a single-employer defined-benefit healthcare plan administered by the City. The Plan provides medical, prescription drug, dental, Medicare Part B premiums, long-term care, and vision expenses for LEOFF 1 retirees. The Plan does not cover dependent spouses and children. The Plan does not issue a separate standalone financial report. Benefits Provided As mandated by RCW 41.26, RCW 41.18, and RCW 41.20, the City reimburses 100% of allowable healthcare costs for LEOFF 1 retirees. All firefighters and law enforcement officers employed between 3/1/1970 and 10/31/1977 are members of a single employer defined benefit OPEB plan and are provided lifetime insurance coverage for medical, hospital and nursing care costs. These benefits are accounted for in Police and Fire Pension and Relief Funds and are considered, in substance, a postemployment healthcare plan administered by, but not part of, the Police and Fire Pension Plans. Extraordinary health and dental expenses, as determined by the Pension Board, require prior LEOFF l OPEB plans are closed to new entrants. The City pays a monthly insurance premium to the Employee Health Care Fund for each retiree. The premium is less for Medicare age retirees, and the City reimburses retirees for the Medicare premiums. Medicare is the primary payer for retirees age 65 and over, and Cigna Administrato necessary hospital, medical, and nursing care expenses insurance provided by another employer, are covered. Employees Covered by Benefit Terms At December 31, 2019 (the census date), the following employees were covered by the benefit terms: 33 Inactive employees or beneficiaries currently receiving benefits 0 Inactive employees entitled to but not yet receiving benefits 0 Active employees 33 Total Contributions The plan is funded on a pay-as-you-go basis and there are no assets accumulated in a qualifying trust. The authority to establish and amend benefits is determined by the LEOFF board. Total OPEB Liability ber 31, 2019, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of December 31, 2019. 85 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Assumptions and Other Inputs The total OPEB liability in the December 31, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Measurement Date: December 31, 2018December 31, 2019 Discount Rate3.71%2.75% Inflation2.50%2.50% Healthcare Cost Trend Rates Medicare6.00%5.40% Salary Increasesn/an/a Healthcare cost trend rates were 5.40% in the first year, trending down to 3.84% over 55 years. Mortality rates were based on tables from the Society of Actuaries. Projections of the sharing benefit-related costs are based on an established pattern of practice. Experience studies come from the State of Washington 2018 study. Inactive employees (retirees) pay 0% of the cost of benefits. There were no ad hoc postemployment benefit changes (including ad hoc COLAs) to the plan. The discount rate used to measure the total OPEB liability is 2.75%. The City's OPEB Plan is an unfunded plan, therefore the discount rate was set to the rate of tax-exempt, high-quality 20-year municipal bonds, as of the valuation date. The measurement date of the total OPEB liability and the date of the actuarial valuation is December 31, 2019. Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower (4.40%) or one percentage point higher (6.40%) than current healthcare cost trend rates follows: /ǒƩƩĻƓƷIĻğƌƷŷĭğƩĻ/ƚƭƷ Њі5ĻĭƩĻğƭĻΛЍ͵ЍіΜƩĻƓķwğƷĻΛЎ͵ЍіΜ ЊіLƓĭƩĻğƭĻΛЏ͵ЍіΜ ƚƷğƌht9.\[źğĬźƌźƷǤυЏͲВБАͲВЍЉυАͲЏЋЋͲАЊБυБͲЌЍБͲЍЌЌ LƓĭƩĻğƭĻΛ5ĻĭƩĻğƭĻΜΛЏЌАͲААБΜАЋЎͲАЊЎ і/ŷğƓŭĻБ͵ЍіВ͵Ўі Sensitivity of the net OPEB liability to changes in the discount rate. The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (1.75%) or one percentage point higher (3.75%) follows: /ǒƩƩĻƓƷ5źƭĭƚǒƓƷwğƷĻ Њі5ĻĭƩĻğƭĻΛЊ͵АЎіΜΛЋ͵АЎіΜ ЊіLƓĭƩĻğƭĻΛЌ͵АЎіΜ ƚƷğƌht9.\[źğĬźƌźƷǤυБͲЍЊЎͲЋЏЉυАͲЏЋЋͲАЊБυЏͲВЍЌͲЋЏЊ LƓĭƩĻğƭĻΛ5ĻĭƩĻğƭĻΜАВЋͲЎЍЋΛЏАВͲЍЎАΜ і/ŷğƓŭĻЊЉ͵ЍіБ͵Ві 86 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Total OPEB Plan Fiduciary Net OPEB LiabilityNet PositionLiability Balance as of December 31, 2019$ 12,700,180$ -$ 12,700,180 Changes: Service Cost - - - Interest 462,935 - 462,935 Changes of Benefit Terms - - - Difference Between Expected and Actual Experience (5,203,755) - (5,203,755) Changes of Assumptions 107,644 - 107,644 Contributions Employer - City's Contribution - - - Employer - Implicit Subsidy - - - Employee - - - Net Investment Income - - - Benefit Payments (444,286) - (444,286) Implicit Rate Subsidy Fulfilled - - - Administrative Expenses - - - Net Changes (5,077,462) - (5,077,462) Balance as of December 31, 2020$ 7,622,718$ -$ 7,622,718 For the year ended December 31, 2020, the City recognized an OPEB expense of $ -4,633,176. At December 31, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: 5ĻŅĻƩƩĻķhǒƷŅƌƚǞƭƚŅ5ĻŅĻƩƩĻķLƓŅƌƚǞƭƚŅ wĻƭƚǒƩĭĻƭwĻƭƚǒƩĭĻƭ 5źŅŅĻƩĻƓĭĻƭĬĻƷǞĻĻƓĻǣƦĻĭƷĻķ ğƓķğĭƷǒğƌĻǣƦĻƩźĻƓĭĻ υυ /ŷğƓŭĻƭƚŅğƭƭǒƒƦƷźƚƓƭ υυ tğǤƒĻƓƷƭƭǒĬƭĻƨǒĻƓƷƷƚƷŷĻ ƒĻğƭǒƩĻƒĻƓƷķğƷĻ υЌАЍͲВЎВυ ƚƷğƌ$374,959$ Deferred outflows of resources of $374,959 resulting from payments subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ended December 31, 2020. 87 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Amount Report Year Ending December 31: ЋЉЋЊυ ЋЉЋЋ ЋЉЋЌ ЋЉЋЍ ЋЉЋЎ wĻƒğźƓźƓŭ Amount /ǒƩƩĻƓƷht9.\[źğĬźƌźƷǤЍЏЏͲЌЊЉυ bƚƓ/ǒƩƩĻƓƷht9.\[źğĬźƌźƷǤАͲЊЎЏͲЍЉБ ƚƷğƌht9.\[źğĬźƌźƷǤАͲЏЋЋͲАЊБυ Expected Average Remaining Service Lives (EARSL) The effects on the total OPEB liability of (1) changes of economic and demographic assumptions or of other inputs and (2) differences between expected and actual experience are required to be included in OPEB expense in a systematic and rational manner over a closed period equal to the average of the expected remaining service lives of all employees that are provided with benefits through the OPEB plan (active employees and inactive employees), beginning in the current period. Because the plan is closed and there are no active employees, the expected average remaining service lives (EARSL) for the current period is zero. However, we set it at one year for calculation purposes. This allows for immediate recognition of amounts. EARSL: 1.0 years. Governmental Activities Long-Term Debt General Obligation Bonds are direct obligations of the City for which its full faith and credit are pledged. Debt service for voter-approved issues, of which the City has one, are funded by special property tax levies. Debt service for City Council authorized bonds, also called councilmanic bonds, is funded from regular property taxes, sales taxes, or other general revenues, and is generally paid from debt service funds. The City currently maintains a General Obligation Bonds outstanding at year-end are as follows: Street program. 2014 LTGO bonds were issued to fund the purchase of land acquisition and capital costs of redevelopment 2015 LTGO bonds were issued to pay for improvements to Interurban Avenue South and reconstruct or retrofit Boeing Access Road Bridge. 2016 UTGO bonds in the amount of $32.99 million were issued after voters approved a $77.385 million bond measure that will fund a justice center, rebuild 3 fire stations and provide fire apparatus and life-safety equipment replacement for 20 years. 2017 LTGO bonds were issued to fund residential street improvements including adding sidewalks and ndrd undergrounding utilities on 42 and 53 Avenues. 88 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS 2018 LTGO bonds were issued to fund the purchase of land in order to consolidate the Public Works function at one location. 2019 LTGO bonds were issued to fund the purchase of land and improvements in order to consolidate the Public Works function at one location and to also fund construction of the new Justice Center and fire stations as part of the Public Safety Plan. 2019 UTGO bonds were issued to fund construction of the new Justice Center and fire stations as part of the Public Safety Plan. Direct borrowings and direct placements have terms negotiated directly with the investor or lender and are not offered for public sale. The following General Obligation bonds are direct borrowings or direct placements: 2013 LTGO bonds were issued and the proceeds loaned to the Tukwila Metropolitan Park District to pay for improvements to the pool. 2017 refunding bond was issued to pay off the 2014 general obligation bond in the form of a line-of-credit that was utilized to purchase property and pay for capital costs Renewal area. 2020 LTGO bonds were issued to refund a portion of the bonds issued in 2010 for the construction and realignment of Southcenter Parkway in the Tukwila South Annexation area and for the cost of emergency preparedness capital and other equipment. The City issued $1,995,000 of general obligation refunding bonds with an interest rate of 1.29% and a final maturity date of December 1, 2024. This advance refunding was done to reduce total debt service by $98,098 and resulted in an economic gain of $95,502. (Economic gain is the net present value of future savings between the old and new debt). Special assessment bonds are issued to finance construction of local improvement district (LID) projects and are repaid through assessments collected from property owners benefiting from related improvements. Although the bonds are secured by liens against assessed properties, the City is required under state law to establish a guaranty fund to provide a means of paying LID bond debt service obligations in the event there are insufficient resources in the LID debt service fund. The special assessment bonds are not general obligation debt, but the City is obligated in some manner to cover the interest on the bonds. Therefore, the bonds are reported as Special Assessment Debt with Governmental Commitment. Special assessments outstanding at year-end are as follows: 2013 special assessment bonds LID No. 33 were issued to reimburse the City for a portion of the costs of a major reconstruction of Klickitat and Southcenter Parkway to improve access to the urban center. Business-Type Activities Long-Term Debt Revenue bond indebtedness issued to fund proprietary activities is recorded in proprietary funds. Debt service payments are made from operating revenues generated by the proprietary funds. In proprietary funds, bonds are displayed net of unamortized premium or discount; annual interest expense is decreased by amortization of debt premium and increased by the amortization of debt discount. The City currently does not maintain a rating from any of the rating agencies because the outstanding revenue bonds are a direct placement. Revenue bonds outstanding at year-end are as follows: 2015 water/sewer/SWM bonds were issued to refund the remaining debt of the 2006 revenue bonds. The bonds were issued to provide neighborhood revitalization to Allentown and Foster Point Sewer system. 89 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS State of Washington Public Works Trust Fund Loans are a low interest rate loans available from the State of Washington Department of Commerce, Local Government & Infrastructure Division for qualifying projects and are a direct responsibility of the City. This debt is repaid by proprietary fund revenues. Public Works Trust Fund loans outstanding at year-end are as follows: 2003 loan to install new sewers in the Duwamish neighborhood. The project upgraded water and surface water infrastructure. 2004 loan to install new water, sewer, and surface water infrastructure in Allentown and Foster Point neighborhoods. Additionally, 2 new sewer lift stations with generators, 33 manholes and catch basins, and 15 new fire hydrants were installed. 2004 loan constructed an underground collection system in the Cascade View neighborhood. business district of Southcenter. Relining the sewer main avoids full excavation for a significant savings and has minimal impact to the roadway. The City is in compliance with all Washington State debt limitation statutes and bond indenture agreements. The schedules that follow summarize the long-term debt transactions of the City for the year ended December 31, 2020. CHANGES IN LONG-TERM DUE TO OTHER POST EMPLOY- GENERALPRIVATESPECIALCOMPENSATEDOTHERNET PENSION TOTAL OBLIGATIONPLACEMENTASSESSMENTABSENCESGOVERNMENTSMENT BENEFITSLIABILITY Outstanding 01/01/2020128,151,000$ 2,592,788$ 3,910,000$ 3,382,849$ 4,921,702$ 12,700,180$ 5,181,398$ 160,839,916$ Added- 1,995,000 - 3,813,966 - - - 5,808,966 Retired / redeemed(4,235,000) (101,461) (480,000) (3,404,281) (175,930) (5,077,462) (236,211) (13,710,346) Outstanding 12/31/2020123,916,000$ 4,486,326$ 3,430,000$ 3,792,533$ 4,745,772$ 7,622,718$ 4,945,187$ 152,938,537$ Add Premiums, Subtract Discounts 10,889,618 Total Long-Term Liabilities$ 163,828,154 Debt Service to Maturity Following are schedules showing the debt service requirement compensated absences, OPEB, and pensions. Governmental Activities Year EndedGeneral ObligationGeneral Obligation Due to Other GovernmentsSpecial Assessments DecemberBondsBonds - Private Placement 31PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterestTotal 20212,200,000$ 4,760,124$ 595,560$ 97,042$ 177,376$ 199,519$ 370,000$ 177,713$ 8,577,334$ 20224,687,000 4,668,439 2,880,766 91,000 184,606 192,424 445,000 161,063 13,310,298 20235,009,000 4,457,659 500,000 13,029 191,836 185,040 445,000 161,063 10,962,626 20245,012,000 4,230,971 510,000 6,579 199,548 177,366 445,000 143,513 10,724,976 20255,372,000 3,993,433 - - 207,742 169,384 445,000 143,513 10,331,072 2026-203032,710,000 16,007,313 - 1,204,036- 680,464 1,280,000 430,538 52,312,350 2031-203542,896,000 9,050,064 - 1,517,818- 366,383 - 53,830,265- 2036-204026,030,000 1,732,900 - 1,062,810- 67,910 - 28,893,620- Totals123,916,000$ $ 48,900,902$ 4,486,326$ 207,650$ 4,745,772$ 2,038,490$ 3,430,000$ 1,217,400$ 188,942,539 90 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS CHANGES IN LONG-TERM LIABILIT OUTSTANDINGOUTSTANDINGDue Within Interest ITEMAuthorized12/31/2019ISSUEDREDEEMED12/31/2020One Year RatesMaturity GOVERNMENTAL ACTIVITIES: Limited General Obligation (LTGO) Bonds Payable: 2010 Streets / Equipment 2,330,0005,870,000 - 2.00-5.4112/01/24 -2,330,000 - 2011 Refunding Streets (2003 GO) 2,020,0004,620,000 1,545,000 495,000 1.25-4.0012/01/23 -475,000 2014 LTGO-Urban Renewal 3,101,0003,850,000 2,941,000 165,000 0.85-4.8612/01/34 -160,000 2015 LTGO-Interurban, BAR 4,910,0005,825,000 4,665,000 250,000 2.25-3.0012/01/35 -245,000 2017 LTGO-42nd & 53rd Streets 7,560,0008,180,000 7,235,000 330,000 3.00-3.5012/01/37 -325,000 2018 LTGO - Public Works Shops 18,365,00018,365,000 4.00-5.0012/01/38 - -18,365,000 - 2019 LTGO - Public Safety Plan 22,830,00022,830,000 3.00-5.0012/01/39 - -22,830,000 - Total LTGO Bonds Payable 69,540,000 61,116,000 57,581,000 1,240,000 -3,535,000 Unlimited General Obligation (UTGO) Bonds Payable: 2016 UTGO - Public Safety 29,265,00077,385,000 28,955,000 400,000 4.50-5.0012/01/35 -310,000 2019 UTGO - Public Safety 37,770,00037,770,000 37,380,000 560,000 3.00-5.0012/01/38 -390,000 Total UTGO Bonds Payable 115,155,000 67,035,000 66,335,000 960,000 -700,000 Private Placement Bonds: 2013 LTGO-MPD Pool Improvement 316,7881,000,000 215,326 105,560 2.00-4.0012/01/22 -101,461 2017 Refunding Line of Credit 2,276,0002,276,000 2.60-3.0012/01/22 - -2,276,000 - 2020 Refunding Streets (2010GO) -1,995,000 1,995,000 490,000 1.2912/01/24 -1,995,000 Total Private Placement Bonds Payable 5,271,000 2,592,788 1,995,000 101,461 4,486,326 595,560 Issuance premiums 11,545,350- 10,889,618 655,732 -655,732 Net Bonds Payable 189,966,000 142,289,138 1,995,000 4,992,194 139,291,944 3,451,293 Due to Other Governments 2019 SCORE Refunding 4,921,7024,921,702 4,745,772 177,376 4.00-5.0001/01/39 -175,930 Total Due Other Governments 4,921,702 4,921,702 4,745,772 177,376 -175,930 Special Assessment Debt Klickitat Urban Access Project 3,910,0006,687,500 3,430,000 370,000 3.150-5.37501/15/29 -480,000 Total Special Assessment Debt 6,687,500 3,910,000 3,430,000 370,000 -480,000 Other Post-Employement Benefits Payable 12,700,180 7,622,718 466,310 -5,077,462 Net Pension Liability 5,181,398 4,945,187 -236,211 - Compensated Absences: 3,382,849 3,813,966 3,404,281 3,792,533 - Total Governmental Funds$ 201,575,202$ 172,385,267$ 5,808,966$ 163,828,15414,366,078$ $ 4,464,979 All governmental funds debt is liquidated by the general fund except for the special assessment debt and the 2019 SCORE intergovernmental debt. The special assessment debt is liquidated from assessments collected annually from property owners within boundaries of Local Improvement District #33. The 2019 SCORE debt was paid by SCORE from user fees. CHANGES IN LONG-TERM DIRECT PLACEMENTPUBLIC WORKS REVENUE TRUST FUND COMPENSATEDNET PENSION TOTAL BONDSLOANSABSENCESLIABILITY Outstanding 01/01/2020$ 1,154,027$ 3,248,587$ 300,536$ 987,306$ 5,690,456 Added - - 352,312 - 352,312 Retired / redeemed (156,614) (599,468) (340,470) (47,084) (1,143,636) Outstanding 12/31/2020$ 997,413$ 2,649,119$ 312,378$ 940,222$ 4,899,132 91 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Debt Service to Maturity Following are schedules showing the debt service requirement compensated absences and net pension liability. Business-Type Activities Year EndedDirect Placement Revenue Public Works Trust Fund BondsLoans December 31PrincipalInterestPrincipalInterestTotal 2021157,178$ 23,339$ 599,323$ 9,246$ 789,086$ 2022162,531 19,662 573,562 10,248 766,003 2023162,560 15,858 573,417 7,381 759,217 2024167,363 12,054 573,417 4,514 757,349 2025171,830 8,138 41,175 1,647 222,790 2026-2030175,951 4,117 205,875 5,147 391,090 2031-2035 - 82,968 - 82,350 618 Totals997,413$ $ 2,649,11983,169$ $ 3,768,502 $ 38,801 CHANGES IN LONG-TERM LIABIL OUTSTANDINGOUTSTANDINGDue Within Interest ITEMAuthorized12/31/2019ISSUEDREDEEMED12/31/2020One Year RatesMaturity BUSINESS-TYPE ACTIVITIES: Direct Placement Revenue Bonds 2015 Water/Sewer/SWM Refunding 1,154,0271,742,527 997,413 157,178 2.3412/01/26 -156,614 Total Bonds Payable1,742,527 1,154,027 997,413 157,178 -156,614 Public Works Trust Fund Loans: 2003 Loan-Water/Sewer 29,125273,870 14,606 14,519 14,519 0.5006/01/21 - 2003 Loan-Surface Water 23,367219,725 11,713 11,655 11,655 0.5006/01/21 - 2004 Loan-Water/Sewer 1,364,0415,016,000 1,091,422 272,618 0.50-2.0006/01/24 -272,618 2004 Loan-Surface Water 186,059684,000 37,212 148,847 37,212 0.50-2.0006/01/24 - 2004 Loan-Surface Water 1,110,7214,196,056 888,577 222,144 1.0006/01/24 -222,144 2014 Loan-Sewer 535,275750,000 41,175 494,100 41,175 0.506/01/32 - Total Public Works Trust Fund Loans 11,139,651 3,248,587 2,649,119 599,323 -599,468 Net Pension Liability 987,306 47,084 940,222 - - Compensated Absences 300,536 352,312 340,470 312,378 - Total Business-Type Activities$ 12,882,178$ 5,690,456$ 352,312$ 1,143,636$ 4,899,132$ 756,501 TOTAL ALL FUNDS$ 214,457,380$ 178,075,723$ 6,161,278$ 168,727,28615,509,714$ $ 5,221,480 92 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS LONG-TERM LIABILITIES RECONCILIATION Governmental Business-Tpe Balance y ActivitiesActivities12/31/2020 General Obligation Bonds$ 123,916,000$ 123,916,000-$ General Obligation Bonds - Private Placement 4,486,326 4,486,326- Special assessment bonds 3,430,000 3,430,000- Revenue Bonds - Direct Placement - 997,413 997,413 Public Works Trust Fund loans 2,649,119- 2,649,119 Due to Other Governments 4,745,772 4,745,772- Employee leave benefits 3,792,533 312,378 4,104,911 Net Premiums/Discounts 10,889,618 10,889,618- Other Post-Employment Benefits 7,622,718 7,622,718- Net Pension Liability 4,945,187 940,222 5,885,409 Total long-term debt$ 163,828,154$ 4,899,132$ 168,727,286 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, 2020, the debt limits for the City were as follows: Without a Vote-------------With a Vote of the People---------- Item1.5%2.5%5.0%7.5% Legal Limit118,245,863$ 197,076,439$ 394,152,878$ 591,229,317$ Outstanding Net Indebtedness72,848,203 139,183,203 139,183,203 139,183,203 Margin Available$ 45,397,660$ 57,893,236$ 254,969,675$ 452,046,114 Prior Year Defeasance of Debt In 2015, the City defeased water and sewer bonds by placing the proceeds of the new bonds in an irrevocable trust account to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the $1,240,000 of the defeased bonds were outstanding. Long-term Liabilities other than debt Claims are paid from one or more funds based on the natur sed sick leave and unpaid overtime accrued by employees and, payable under specified conditions. This obligation is paid only at the time of termination, usually from the The City does not report a liability for termination benefits because it is not reasonably estimable. 93 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Local Improvement District No. 33 Tukwila Urban Access Improvement Project Local Improvement District (LID) No. 33 was formed on November 16, 2009 by Ordinance No. 2260. The project was designed to im project included a partial lid over Southcenter Parkway, removal of conflicting turning movements, and the widening of Southcenter Parkway. Construction for the project began in March 2011 and was completed in October 2011. The project was closed out and accepted as complete by City Council on February 19, 2013. A variety of funding sources were used to pay for the project including federal and state grants, impact fees, City funds, a right-of-way donation, and special assessments. The City chose to fund the project internally, rather than obtain external, short-term financing then apply special assessments to property owners after the project was completed. Fund 104 Arterial Streets, where the project was accounted for, loaned the project funds as needed using a draw method at an interest rate of 1.80%. This loan was repaid in 2013 when special assessment bonds were issued. The City confirmed the assessment roll with a final assessment of $9,475,894. The prepayment period for the special assessments was open in the fall of 2013 and during that time the City received $2,788,350 in prepayments. Once the prepayment window closed, the City issued bonds for the remaining outstanding assessments in the amount of $6,687,500. From these proceeds, the City deposited $515,266 to the guaranty fund. The seventh of 15 annual installments for the assessments was due by October 16, 2020. As of December 31, 2020, all LID Special Assessments were current, nothing was delinquent. The City has enough funds in the LID No. 33 funds to meet debt service requirements in 2021. Estimated Arbitrage Rebate The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt of over $5 million to make payments to the United States Treasury of investment interest received at yields that exceed the issuer's tax-exempt borrowing rates. Payments of arbitrage rebate amounts due under these regulations must be made to the U.S. Treasury every five years. The City's estimated rebatable arbitrage amount as of December 31, 2020 is $0 for its tax-exempt bond issues subject to the Tax Reform Act. Unused Lines of Credit 2017 refunding bond was issued to pay off the 2014 general obligation bond in the form of a line-of-credit that was utilized to purchase property and pay for capital costs of redevelopment activities wi no portion of this line of credit that is unused. Terms Specified in Debt Agreements of default. The City is liable for principal and interest payments only as they become due. There are no termination events or events of default specified in the debt agreements that would have financial consequences. 94 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS Construction Commitments. As of December 31, 2020, contractual obligations to contractors for construction projects total $8,433,345. Remaining Commitment Governmental Activities 42nd Avenue South Bridge Replacement1,023,124$ Boeing Access Bridge over Airport Way1,009,383 Public Safety Plan 2,289,991 West Valley Highway 167,377 53rd Avenue South 497,605 Total Governmental Activities $ 4,987,480 Remaining Business-Type Activities ProjectsCommitment CBD Sewer Rehab$ 821,280 Small Drainage 282,858 Riverton Creek Flapgate645,942 East Marginal Way Stormwater Outfalls1,395,156 Andover Park East Water Main Pavement152,534 Storm Water Quality Retrofit101,381 Other Utility related projects46,714 Total Business-Type Activities3,445,865$ Total Construction Commitments8,433,345$ There are several lawsuits in which the City is involved. The City Attorney estimates that the potential claims against the City to have no material financial impact. The City of Tukwila is expected to share in potential liability under the Comprehensive Environmental Response, contamination within the Lower Duwamish Waterway Superfund site. In 2014, the Environmental Protection Agency estimated the total cost for the waterway cleanup to be $342 million with as many as 120 or more parties sharing in the liability. While it is not possible to provide an , the relatively small size of within the Lower Duwamish Waterway Superfund site area, should be low compared to other liable parties. A multi- year confidential process to allocate Duwamish Waterway cleanup costs is being undertaken by the major liable parties. Once that process is completed and communicated to the City, which could occur in 2021, the City will be in a better position to estimate its potential liability for cleanup costs within the Lower Duwamish Waterway Superfund site. 95 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS The City of Tukwila is a member of the Washington Cities Insurance Authority (WCIA). Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (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. WCIA has a total of 162 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, errors or omissions, stop gap, employment practices and employee benefits liability. Limits are $4 million per occurrence in the self-insured layer, and $21 million in limits above the self-insured layer is provided by reinsurance. Total limits are $25 million per occurrence subject to aggregates and sublimits. The Board of Directors determines the limits and terms of coverage annually. Insurance for property, automobile physical damage, fidelity, inland marine, and boiler and machinery coverage are purchased on a group basis. Various deductibles apply by type of coverage. Property coverage is self-funded from million per occurrence subject to aggregates and sublimits. Automobile physical damage coverage is self-funded above that to $100 million per occurrence subject to aggregates and sublimits. In-house services include risk management consultation, loss control field services, and claims and litigation administration. WCIA contracts for certain claims investigations, consultants for personnel and land use issues, insurance brokerage, actuarial, 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, reinsurance and other 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 addi in financial instruments which comply with all State guidelines. A Board of Directors governs WCIA, 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 insures its buildings, equipment, and vehicle property insurance with WCIA. They self-fund up to $250,000 with standard property insurance purchased above that am for employee dishonesty coverage. The City 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. There were no significant reductions in insurance coverage in the past year. During the year under audit and in the past three years, no settlement has exceeded insurance coverage. The City self-insures for unemployment benefits. This is a budgeted expenditure each year and the City paid $96,232 in unemployment in 2020. 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 Symetra which provides an individual limit of $210,000. Each fund contributes an appropriate amount each year to pay 96 CITY OF TUKWILA: 2020 ACFR NOTES TO THE FINANCIAL STATEMENTS premiums and claims. Liabilities include an actuarially determined amount for claims that have been incurred but ontingency reserve equal to 2.5 times the IBNR liability. The IBNR liability is estimated by blending two actuarial methods. The first method is the claim-ladder development method. This method calculates the IBNR by estimating monthly incurred claims based on the historical pattern of claim lag experienced by the City and the claim lag triangles of the City. The second method is the Claims Per Member Per Month (PMPM) Trended Method. This calculates an average PMPM claims cost for claims not yet paid based on patterns of claims costs that have been recently incurred. Knowledge of external forces that may affect future health care trends also impact the result of the calculation, along with general actuarial judgement. The following table reflects changes in the balances of claims liabilities for 2020 and 2019. SUMMARY OF HEALTH CARE CLAIM LIABILITIES Active EmployeesRetired Employees LEOFF I 2020201920202019 Claim Liabilities at Beginning of Year$ 1,075,210$ 1,320,159$ 164,041$ 146,147 Claim expenses: Current year and changes in estimates6,444,903 6,613,385 304,483 444,286 Claim payments and expenses (5,857,613) (6,858,334) (331,024) (426,392) Claim Liabilities at End of Year$ 1,662,500$ 1,075,210$ 137,500$ 164,041 In June 2021, the City issued $2,880,000 in general obligation works facilities. The debt will be repaid over 10 years with a true interest rate of 1.70%. The City also refunded $1,065,000 outstanding principal of the 2011 Limited Tax General Obligation Bonds. Final maturity is December 1, 2023 with an interest rate of 1.15%. Net present value savings is $13,200. Additionally, the City refunded $2,785,000 outstanding principal of the 2014 Refunding bonds. Final maturity is December 1, 2034 with an interest rate of $2.70%. Net present value savings is $69,000. In February 2020, the Governor of the state of Washington declared a state of emergency in response to the spread of the deadly new virus known as COVID-19. In the months following the declaration, precautionary measures to slow the spread of the virus were ordered. These measures included closing schools, cancelling public events, limiting public and private gatherings, and restricting business operations, travel and non-essential activities. The City responded quickly to the public health emergency by estimating potential revenue losses and reducing expenditures accordingly. Expenditures were reduced in a number of ways including freezing vacant positions, layoffs, furloughs, and pay reductions for existing staff, and eliminating most extra labor positions. Travel and non- essential training were eliminated and low priority programs were either reduced or eliminated. Each department performed a line-item budget scrub and reduced remaining budget line items wherever possible. Revenue projections were updated on a monthly basis and when new information became available and additional expenditure reductions were made, if required. Monthly updates were provided to City Council. Because the City took immediate steps and made hard decisions early in the pandemic, the City was able to meet, and exceed, fund balance policy for the general fund. Given that it is unknown when the effects of the COVID-19 health emergency will end, the 2021-2022 biennial budget was drafted taking into consideration the ongoing effects of the pandemic and continues many of the budget reductions put into place in 2020. The length of time these measures will continue to be in place, and the full extent of the financial impact on the city is unknown at this time. 97 CITY OF TUKWILA: 2020 ACFR REQUIRED SUPPLEMENTAL INFORMATION CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Taxes$ 48,925,197$ 49,650,197$ 42,684,593$ (6,965,604) Licenses and permits 6,784,894 6,784,894 6,738,212 (46,682) Intergovernmental 3,832,367 4,486,766 3,853,894 (632,872) Charges for services 3,644,046 3,764,046 2,542,733 (1,221,313) Fines and Forefitures 371,718 491,718 209,018 (282,700) Investment earnings 356,835 356,835 174,490 (182,345) Miscellaneous 316,534 316,534 445,411 128,877 Total Revenues 64,231,591 65,850,990 56,648,351 (9,202,639) EXPENDITURES: Current: General Government9,808,306 10,015,980 8,472,913 1,543,067 Public safety33,089,753 33,278,646 31,362,595 1,916,051 Transportation5,369,559 5,327,902 4,732,363 595,539 Natural and economic environment4,314,856 4,650,553 4,050,909 599,644 Culture and recreation 4,913,048 5,152,441 4,279,620 872,821 Capital outlay 270,000 270,000 5,495 264,506 Total Expenditures 57,765,522 58,695,522 52,903,895 5,791,627 Excess of Revenues And Expenditures 6,466,069 7,155,468 3,744,456 (3,411,012) OTHER FINANCING SOURCES (USES): Transfers in 200,000 600,000 400,000 (200,000) Transfers out (5,209,140) (8,059,140) (4,862,449) 3,196,691 Total Other Financing Sources And Uses (5,009,140) (7,459,140) (4,462,449) 2,996,691 Net change in fund balances 1,456,929 (303,672) (717,993) (414,321) Fund balances - beginning 20,534,259 19,693,345 20,140,163446,818 Fund Balances - Ending$ 21,991,188$ 19,389,673$ 19,422,170$ 32,497 98 CITY OF TUKWILA: 2020 ACFR REQUIRED SUPPLEMENTAL INFORMATION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION The City of Tukwila budgets its funds in accordance with the Revised Code of Washington 35A.33. In compliance with the code, biennial budgets are adopted for the general fund and special revenue 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 biennially budgeted governmental funds only. Budgets established for are not reported in the ACFR. The biennial appropriated budgets are adopted at the fund level 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. Any unexpended appropriation balances lapse at the end of the biennium. RCW 35A.33. The steps in the budget process are as follows: 1) Prior to November 1 on even numbered years, 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 preceding 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 City Council must approve by ordinance any amendments that increase the total for the fund. 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 Includes administration, finance, municipal court, attorney, General Government and city clerk activities. Includes all police and fire activities. Public Safety Includes all residential and arterial street maintenance and Transportation construction. Reflects all planning and building inspection as well as Natural and Economic environmental and community services. Environment Includes expenditures related to parks and recreational Culture and Recreation activities. The information presented in the following required schedules was determined as part of the actuarial valuations . at the dates indicated 99 CITY OF TUKWILA: 2020 ACFR REQUIRED SUPPLEMENTAL INFORMATION COST SHARING MULTIPLE EMPLOYER DEFINED BENEFIT PENSION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PERS 1 Employer's State's proportionate proportionate share of the net Plan fiduciary Employer's Employer's share of the net Total: Proportionate pension liability net position as proportion of the proportionate share pension liability share of the net as a percentage a percentage net pension of the net pension (asset) associated pension liability Employer's of covered of the total Fiscal Year Endingliability (asset)liabilitywith the employer(asset)covered payrollpayrollpension liability June 30, 20150.135736%$ 7,100,255$ -$ 7,100,255$ 15,561,01545.63%59.10% June 30, 20160.131354% 7,054,328 - 7,054,328 15,736,92144.83%57.03% June 30, 20170.127058% 6,029,001 - 6,029,001 16,022,84237.63%61.24% June 30, 20180.122630% 5,476,697 - 5,476,697 16,327,08233.54%63.22% June 30, 20190.121291% 4,664,070 - 4,664,070 16,858,48127.67%67.12% June 30, 20200.113704% 4,014,365 - 4,014,365 17,063,64723.53%68.64% PERS 2/3 Employer's State's proportionate proportionate share of the net Plan fiduciary Employer's Employer's share of the net Total: Proportionate pension liability net position as proportion of the proportionate share pension liability share of the net as a percentage a percentage net pension of the net pension (asset) associated pension liability Employer's of covered of the total Fiscal Year Endingliability (asset)liabilitywith the employer(asset)covered payrollpayrollpension liability June 30, 20150.173592%6,202,541$ -$ 6,202,541$ 15,406,589$ 40.26%89.20% June 30, 20160.166622%8,389,286 - 8,389,286 15,579,718 53.85%85.82% June 30, 20170.161787%5,621,325 - 5,621,325 15,861,514 35.44%90.97% June 30, 20180.156335%2,669,281 - 2,669,281 16,228,608 16.45%95.77% June 30, 20190.154903%1,504,635 - 1,504,635 16,843,895 8.93%97.77% June 30, 20200.146296%1,871,042 - 1,871,042 17,053,352 10.97%97.22% PSERS Employer's State's proportionate proportionate share of the net Plan fiduciary Employer's Employer's share of the net Total: Proportionate pension liability net position as proportion of the proportionate share pension liability share of the net as a percentage a percentage net pension of the net pension (asset) associated pension liability Employer's of covered of the total Fiscal Year Endingliability (asset)liabilitywith the employer(asset)covered payrollpayrollpension liability June 30, 20150.052748%$ 9,628$ -$ 9,628$ 154,4266.23%95.08% June 30, 20160.048428% 20,581 - 20,581 157,20313.09%90.41% June 30, 20170.455650% 8,928 - 8,928 161,3285.53%96.26% June 30, 20180.025080% 311 - 311 98,4740.32%99.79% June 30, 20190.032158% (4,182) - (4,182) 147,556-2.83%101.85% June 30, 20200.028557% (3,929) - (3,929) 175,312-2.24%101.68% LEOFF 1 Employer's State's proportionate proportionate share of the net Plan fiduciary Employer's Employer's share of the net Total: Proportionate pension liability net position as proportion of the proportionate share pension liability share of the net as a percentage a percentage net pension of the net pension (asset) associated pension liability Employer's of covered of the total Fiscal Year Endingliability (asset)liabilitywith the employer(asset)covered payrollpayrollpension liability June 30, 20150.077944%$ (939,397)$ -$ (939,397)$ 76,144-1233.71%127.36% June 30, 20160.077890% (802,490) (5,428,021) (6,230,511) -n/a123.74% June 30, 20170.082086% (1,245,425) (8,424,025) (9,669,450) -n/a135.96% June 30, 20180.083934% (1,523,823) (10,307,102) (11,830,925) -n/a144.42% June 30, 20190.082668% (1,634,025) (11,052,506) (12,686,531) -n/a148.78% June 30, 20200.081701% (1,542,931) (10,436,345) (11,979,276) -n/a146.88% LEOFF 2 Employer's State's proportionate proportionate share of the net Plan fiduciary Employer's Employer's share of the net Total: Proportionate pension liability net position as proportion of the proportionate share pension liability share of the net as a percentage a percentage net pension of the net pension (asset) associated pension liability Employer's of covered of the total Fiscal Year Endingliability (asset)liabilitywith the employer(asset)covered payrollpayrollpension liability June 30, 20150.519159%(5,335,916)$ (2,123,832)$ (7,459,748)$ 15,113,237$ -49.36%111.67% June 30, 20160.510663%(2,970,169) (1,936,334) (4,906,503) 15,480,062 -31.70%106.04% June 30, 20170.503269%(6,983,743) (4,530,224) (11,513,967) 15,743,133 -73.14%113.36% June 30, 20180.480347%(9,752,091) (6,314,295) (16,066,386) 15,759,700 -101.95%118.50% June 30, 20190.473755%(10,975,449) (7,106,396) (18,081,845) 16,581,465 -109.05%119.43% June 30, 20200.438096%(8,936,519) (5,714,227) (14,650,746) 16,552,520 -88.51%115.83% 100 CITY OF TUKWILA: 2020 ACFR REQUIRED SUPPLEMENTAL INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS PERS 1 Less: Contributions in relation to the Statutorily or statutorily or contractually contractually Contribution Covered Contributions as a required required deficiency Employee percentage of Fiscal Year Endingcontributionscontributions(excess)Payrollcovered payroll December 31, 2015686,881$ (686,881)$ -$ 15,654,255$ 4.39% December 31, 2016752,418 (752,418) - 15,777,881 4.77% December 31, 2017789,712 (789,712) - 16,153,755 4.89% December 31, 2018846,714 (846,714) - 16,742,206 5.06% December 31, 2019854,217 (854,217) - 17,030,131 5.02% December 31, 2020740,837 (740,837) - 16,004,087 4.63% PERS 2/3 Less: Contributions in relation to the Statutorily or statutorily or Contribution Covered Contributions as a contractually contractually required required deficiency Employee percentage of Fiscal Year Endingcontributionscontributions(excess)Payrollcovered payroll December 31, 2015873,248$ (873,248)$ -$ 15,498,171$ 5.63% December 31, 2016972,612 (972,612) - 15,616,400 6.23% December 31, 20171,090,715 (1,090,715) - 16,024,008 6.81% December 31, 20181,245,790 (1,245,790) - 16,629,084 7.49% December 31, 20191,310,892 (1,310,892) - 17,014,243 7.70% December 31, 20201,267,208 (1,267,208) - 16,000,110 7.92% PSE RS Less: Contributions in relation to the statutorily or Statutorily or contractually contractually Contribution Covered Contributions as a required required deficiency Employee percentage of Fiscal Year Endingcontributionscontributions(excess)Payrollcovered payroll December 31, 2015$ 10,105$ (10,105)$ -$ 156,0846.47% December 31, 2016 10,642 (10,642) - 161,4816.59% December 31, 2017 8,612 (8,612) - 129,7476.64% December 31, 2018 7,768 (7,768) - 113,1226.87% December 31, 2019 12,191 (12,191) - 170,9717.13% December 31, 2020 12,039 (12,039) - 174,7736.89% LEOFF 2 Less: Contributions in relation to the Statutorily or statutorily or Contribution Covered Contributions as a contractually contractually required required deficiency Employee percentage of Fiscal Year Endingcontributionscontributions(excess)Payrollcovered payroll December 31, 2015$ 776,719$ (776,719)$ 15,380,541-$ 5.05% December 31, 2016 787,110 (787,110) 15,586,296- 5.05% December 31, 2017 815,548 (815,548) 15,860,571- 5.14% December 31, 2018 855,040 (855,040) 16,132,860- 5.30% December 31, 2019 868,767 (868,767) 16,611,112- 5.23% December 31, 2020 831,485 (831,485) 16,054,647- 5.18% 101 CITY OF TUKWILA: 2020 ACFR REQUIRED SUPPLEMENTAL INFORMATION Schedule of Changes in the City's Net Pension Liability and Related Ratios Total Pension Liability2014201520162017201820192020 Service cost- - - - - - - Interest 49,332 38,796 5 0,098 4 9,716 - 3 9,385 4 2,542 Changes of benefit terms - - - - - - - Difference between expected & actual experience- - (31,990)17,256 (2,442)(311,190) (2,810) Changes of assumptions - (51,490) - ( 62,728) -(177,772) (3,148) Benefits payments, included refunds of employee contributions (61,863) (58,277) (69,186)17,700 (60,172) ( 59,988) ( 80,468) (11,765) (384,574)(11,003) (162,882)(30,390) (52,768) Net change in total pension liability ( 75,317) 1,852,693 1,176,762 Total pension liability - beginning 1,840,928 1,829,925 1,445,351 1,414,9611,252,079 Total pension liability - ending (a) 1,840,928 1,123,994 1,829,925 1,445,351 1,414,961 1,252,0791,176,762 Plan Fiduciary Net Position Contributions - employer 64,114 66,360 68,848 6 3,590 (139) 7 1,286 6 8,569 Contributions - employee - - - - - - - Net investment income 1,805 2,667 39,1577,988 (39,477) 2 7,770 3 4,948 Benefit payments, including refunds of employee contributions (61,863) (58,277) (69,186)17,700 (60,172) ( 59,988) ( 80,468) Administrative expense- (4,500) (4,624) (4,500) 1,124 - - Other - - - - 2,716 - - Net change in plan fiduciary net 4,056 3,480 34,1959,860 (18,076) position 1 8,588 4 3,345 Plan fiduciary net position - 1,408,970 1,461,073 beginning 1,413,026 1,416,506 1,426,366 1,460,5611,442,485 Plan fiduciary net position - ending 1,413,026 1,504,418 (b) 1,416,506 1,426,366 1,460,561 1,442,4851,461,073 City's net pension liability - ending (a) - (b) 427,902 (190,406) 413,419 1 8,985(45,600) (284,311) (380,424) Plan fiduciary net position as a 76.76%77.41%98.69%103.22%115.21%124.16%133.85% percent of total pension liability - Covered employee payroll - - - - - - City net pension liability as a percent of covered employee n/an/an/an/an/an/an/a payroll 102 CITY OF TUKWILA: 2020 ACFR REQUIRED SUPPLEMENTAL INFORMATION Schedule of Employer Contributions Less:Contributionsin StatutorilyRelationtotheContributionasa DeterminedStatutorilyDeterminedContributionCoveredPercentageofCovered FiscalYearEndingContributionContributionDeficiency(Excess)PayrollPayroll 5ĻĭĻƒĬĻƩЌЊͲЋЉЊЊЎЍͲБЏЎЎЍͲБЏЎƓΉğ 5ĻĭĻƒĬĻƩЌЊͲЋЉЊЋЎЋͲЋЍВЎЋͲЋЍВƓΉğ 5ĻĭĻƒĬĻƩЌЊͲЋЉЊЌЎЏͲВЏЋЎЏͲВЏЋƓΉğ 5ĻĭĻƒĬĻƩЌЊͲЋЉЊЍЏЍͲЊЊЍЏЍͲЊЊЍƓΉğ 5ĻĭĻƒĬĻƩЌЊͲЋЉЊЎЏЌͲЎВЉЏЌͲЏВЉΛЊЉЉΜ ƓΉğ 5ĻĭĻƒĬĻƩЌЊͲЋЉЊЏЏЏͲЌЏЉЏЏͲЌЏЉƓΉğ 5ĻĭĻƒĬĻƩЌЊͲЋЉЊАЏЍͲЋЋЌЏБͲБЍБΛЍͲЏЋЎΜƓΉğ 5ĻĭĻƒĬĻƩЌЊͲЋЉЊБΛЊЌВΜЊЌВƓΉğ 5ĻĭĻƒĬĻƩЌЊͲЋЉЊВАЊͲЋБЏΛАЊͲЋБЏΜƓΉğ 5ĻĭĻƒĬĻƩЌЊͲЋЉЋЉЏБͲЎЏВΛЏБͲЎЏВΜƓΉğ Contributions are a portion of State Fire Insurance Premiums. Schedule of Investment Returns Annual money-weighted rate of Schedule of Investment Returnsreturn, net of investment expense 20110.12% 20120.20% 20130.17% 20140.13% 20150.19% 20160.56% 20172.75% 2018-2.68% 20191.93% 20202.39% 103 CITY OF TUKWILA: 2020 ACFR REQUIRED SUPPLEMENTAL INFORMATION City of Tukwila Schedule of Changes in Total OPEB Liability and Related Ratios LEOFF Plan 1 For the year ended December 31, 2020 Last 10 Fiscal Years* 201820192020 $ 14,694,24226,383,115$ 12,700,180$ Total OPEB liability - beginning Service cost - - - Interest469,303471,554462,935 Changes in benefit terms - - - Differences between expected and actual experience(3,780,437)(199,491)(5,203,755) Changes of assumptions (7,947,448)(1,896,319)107,644 Benefit payments(430,291)(369,806)(444,286) Other changes - - - 14,694,24212,700,1807,622,718 Total OPEB liability - ending - Covered-employee payroll - - n/an/an/a Total OPEB liability as a % of covered payroll Notes to Schedule: Until a full 10-year trend is compiled, only information for those years available is presented. * No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75. 104 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES Non-major 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 or committed for expenditures for specific purposes. oceeds of a 1% special excise tax on overnight lodging in Tukwila. This tax provides resources to support tourism development and promotion activities in Tukwila. om the sale of property seized during drug and felony investigations. These funds are legally required to be expended on drug and felony related police activities. Debt Service Funds Debt Service Funds account for the accumulation of resources for and the payment of principal and interest on general obligation and special assessment bonds. e funds required under state law to provide a means of paying local improvement district (LID) bond debt service obligations in the event there are insufficient resources in the LID debt service fund. Accounts for principal and interest on voter approved bonds issued to pay for the construction of public safety facilities including a justice center and fire stations and fire equipment and apparatus for 20 years. unts for principal and interest payments on bonds for all debt issues except for voter approved bonds. Capital Project Funds Capital Project 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, real estate excise taxes, and transfers from the General Fund. in accordance with RCW 35A.37.010 to account for maintenance and urces of support are the State-levied tax on motor vehicle fuels distributed to Tukwila to be used for City street purposes, state and federal grants, and transfers in from the General Fund. ccounts for the acquisition of land, development of land, and construction of park facilities. fund accounts for costs associated with property owned by the City that will be utilized for redevelopment or renewal purposes. 105 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES ablished in 1992 to provide funding for minor capital improvements not related to parks, land acquisition, or major building replacements. acquisition of land, development of land and construction of fire facilities. Revenue for this fund comes primarily from fire impact fees. 106 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2020 TotalTotalTotalTotal Special RevenueDebt ServiceCapital ProjectsGovernmental FundsFundsFundsFunds ASSETS: Cash and cash equivalents$ 1,926,894$ 638,742$ 5,224,271$ 7,789,907 Investments - 501,030 - 501,030 Taxes receivable 39,952 70,082 41,412 151,446 Other receivables - 2,135 - 2,135 Customer receivables 12,948 - 149,768 162,716 Restricted Assets: Cash and cash equivalents 205,762 - - 205,762 Capital assets held for resale - - 2,539,910 2,539,910 Total Assets 2,185,557 1,211,990 7,955,361 11,352,907 LIABILITIES AND FUND BALANCES: Current liabilities Accounts payable 124,097 - 232,749 356,846 Accrued wages and benefits 2,990 - 2,316 5,305 Customer deposit 14,548 - 528,403 542,951 Total Liabilities 141,634 - 763,468 905,102 Deferred inflows of resources Unavailable revenue-property tax - 60,123 - 60,123 Total Deferred Inflows of Resources - 60,123 - 60,123 Fund balances: Restricted 2,043,922 730,772 1,076,495 3,851,189 Assigned - 421,095 5,788,108 6,209,203 Assigned - 1% arts - - 327,291 327,291 Total Fund balances 2,043,922 1,151,867 7,191,893 10,387,683 Total Liabilities and Fund Balances2,185,557$ $ 1,211,990$ 7,955,361$ 11,352,907 107 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31,2020 TotalTotalTotalTotal Special RevenueDebt ServiceCapital ProjectsGovernmental FundsFundsFundsFunds REVENUES: Taxes 292,358$ $ 3,433,628$ 311,447$ 4,037,433 Charges for services - - 290,747 290,747 Intergovernmental 43,826 20,657 274,204 338,687 Investment earnings 14,392 17,162 49,545 81,100 Miscellaneous 103,193 - - 103,193 Total Revenues 453,769 3,471,448 925,943 4,851,160 EXPENDITURES: Current: General government - - 147,915 147,915 Public safety 42,681 - - 42,681 Transportation - - 77,497 77,497 Natural and economic environment 589,081 - 19,584 608,666 Culture and recreation - - 271,472 271,472 Debt service Principal - 2,006,461 - 2,006,461 Interest - 5,246,230 - 5,246,230 Capital Outlay - - 731,385 731,385 Total Expenditures 631,762 7,252,691 1,247,852 9,132,306 Excess (deficiency) of revenues (177,994) (3,781,244) (321,909) (4,281,147) Over (Under) Expenditures OTHER FINANCING SOURCES (USES): Transfers in - 4,023,849 1,262,056 5,285,905 Transfers out - - (3,581,775) (3,581,775) Issuance of Debt - 1,995,000 - 1,995,000 Payment of refunded debt - (2,330,000) - (2,330,000) Total Other Financing Sources And Uses - 3,688,849 (2,319,719) 1,369,130 Net change in fund balances (177,994) (92,395) (2,641,628) (2,912,016) Fund balances - beginning 2,221,916 1,244,262 9,833,521 13,299,699 Fund Balances - Ending $ 2,043,922$ 1,151,867$ 7,191,893$ 10,387,683 108 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING BALANCE SHEET NON-MAJOR SPECIAL REVENUE FUNDS DECEMBER 31, 2020 Total Special Revenue Funds Hotel/Motel TaxDrug Seizure ASSETS: Cash and cash equivalents1,776,384$ 150,510$ 1,926,894$ Taxes receivable39,952 - 39,952 Customer receivables- 12,948 12,948 - Restricted Assets: Cash and cash equivalents- 205,762 205,762 Total Assets1,816,336 369,220 2,185,557 LIABILITIES AND FUND BALANCES: Current liabilities Accounts payable100,958 23,139 124,097 Accrued wages and benefits2,990 - 2,990 Customer deposit- 14,548 14,548 Total Liabilities 37,687103,948 141,634 Fund balances: Restricted1,712,389 331,534 2,043,922 Total Fund balances1,712,389 331,534 2,043,922 Total Liabilities and Fund Balances1,816,336$ 369,220$ 2,185,557$ 109 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON-MAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED DECEMBER 31,2020 Total Special Revenue Hotel/Motel TaxDrug SeizureFunds REVENUES: Taxes 292,358$ -$ 292,358$ Intergovernmental30,878 12,948 43,826 Investment earnings13,036 1,356 14,392 Miscellaneous- 103,193 103,193 Total Revenues336,272 117,496 453,769 EXPENDITURES: Current: Public safety- 42,681 42,681 Natural and economic environment589,081 - 589,081 Total Expenditures589,081 42,681 631,762 Excess (deficiency) of revenues 74,815(252,809) (177,994) Over (Under) Expenditures Net change in fund balances(252,809) 74,815 (177,994) Fund balances - beginning1,965,198 256,718 2,221,916 Fund Balances - Ending 1,712,389$ 331,534$ 2,043,922$ 110 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING BALANCE SHEET NON-MAJOR DEBT SERVICE FUNDS DECEMBER 31, 2020 Special Unlimited Tax Limited Tax General Total Nonmajor Assessment General Obligation Obligation Debt Debt Service Bonds Guaranty Debt Service FundService FundFunds Fund ASSETS: Cash and cash equivalents217,647$ 0$ 421,095$ 638,742$ Investments501,030 - - 501,030 Taxes receivable- 70,082 - 70,082 Other receivables2,135 - - 2,135 Total Assets720,813 70,082 421,095 1,211,990 LIABILITIES AND FUND BALANCES: Total Liabilities- - - - Deferred inflows of resources Unavailable revenue-property tax- 60,123 - 60,123 Total Deferred Inflows of Resources- 60,123 - 60,123 Fund balances: Restricted720,813 9,959 - 730,772 Assigned- - 421,095 421,095 Total Fund balances720,813 9,959 421,095 1,151,867 Total Liabilities and Fund Balances720,813$ 70,082$ 421,095$ 1,211,990$ 111 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON-MAJOR DEBT SERVICE FUNDS FOR THE YEAR ENDED DECEMBER 31,2020 Special Unlimited Tax Limited Tax General Total Nonmajor Assessment General Obligation Obligation Debt Debt Service Bonds Guaranty Debt Service FundService FundFunds Fund REVENUES: Taxes -$ 3,433,628$ -$ 3,433,628$ Intergovernmental- - 20,657 20,657 Investment earnings15,069 43 2,051 17,162 Total Revenues15,069 3,433,671 22,708 3,471,448 EXPENDITURES: Debt service Principal- 700,000 1,306,461 2,006,461 Interest- 2,812,537 2,433,693 5,246,230 Total Expenditures- 3,512,537 3,740,154 7,252,691 Excess (deficiency) of revenues (78,866)15,069 (3,717,446) (3,781,244) Over (Under) Expenditures OTHER FINANCING SOURCES (USES): Transfers in - - 4,023,849 4,023,849 Issuance of Debt - - 1,995,000 1,995,000 Payment of refunded debt - - (2,330,000) (2,330,000) Total Other Financing Sources And Uses - - 3,688,849 3,688,849 Net change in fund balances 15,069 (78,866) (28,598) (92,395) Fund balances - beginning 705,744 88,825 449,693 1,244,262 Fund Balances - Ending $ 720,813$ 9,959$ 421,095$ 1,151,867 112 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING BALANCE SHEET NON-MAJOR CAPITAL PROJECTS FUNDS DECEMBER 31, 2020 Land Acq.GeneralTotal Nonmajor ResidentialRec & ParkUrban GovernmentFireCapital Projects StreetDevelopmentRenewalImprovementsImprovementsFunds ASSETS: Cash and cash equivalents$ 696,635$ 1,935,166$ 2,072,544$ 519,925$ -$ 5,224,271 Taxes receivable 39,163 2,250 - - - 41,412 Customer receivables 149,768 - - - - 149,768 Restricted Assets: Capital assets held for resale - 2,539,910- - - 2,539,910 Total Assets 885,566 1,937,416 4,612,454 519,925 - 7,955,361 LIABILITIES AND FUND BALANCES: Current liabilities Accounts payable 57,213 170,136 5,400 - - 232,749 Accrued wages and benefits 2,316 - - - - 2,316 Customer deposit 321,126 - 200,000 7,277 - 528,403 Total Liabilities 380,655 170,136 205,400 7,277 - 763,468 Fund balances: Restricted 1,076,495- - - - 1,076,495 Assigned 504,912 363,494 4,407,054 512,648 - 5,788,108 Assigned - 1% arts - 327,291 - - - 327,291 Total Fund balances 504,912 1,767,280 4,407,054 512,648 - 7,191,893 Total Liabilities and Fund Balances885,566$ $ 1,937,416$ 4,612,454$ 519,925$ 7,955,361-$ 113 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON-MAJOR CAPITAL PROJECTS FUNDS FOR THE YEAR ENDED DECEMBER 31,2020 Land Acq.GeneralTotal Nonmajor ResidentialRec & ParkUrban GovernmentFireCapital Projects StreetDevelopmentRenewalImprovementsImprovementsFunds REVENUES: Taxes -$ $ 311,447$ -$ -$ -$ 311,447 Charges for services (145,296) 322,200 - - 113,843 290,747 Intergovernmental 267,504 6,700 - - - 274,204 Investment earnings - 8,175 35,328 4,269 1,773 49,545 Total Revenues 122,207 648,522 35,328 4,269 115,616 925,943 EXPENDITURES: Current: General government - - (12) 147,926 - 147,915 Transportation 77,497 - - - - 77,497 Culture and recreation - 271,472 - - - 271,472 Natural and economic environment - - 19,584 - - 19,584 Capital Outlay 731,385 - - - - 731,385 Total Expenditures 808,881 271,472 19,573 147,926 1,247,852- Excess (deficiency) of revenues (686,674) 377,051 15,756 (143,658) 115,616 (321,909) Over (Under) Expenditures OTHER FINANCING SOURCES (USES): Transfers in 1,050,000 212,056 - - - 1,262,056 (428,775) (3,581,775) Transfers out - (3,153,000)- - Total Other Financing Sources And Uses1,050,000 212,056 (3,153,000) - (428,775) (2,319,719) Net change in fund balances 363,326 589,107 (3,137,244) (143,658) (313,159) (2,641,628) Fund balances - beginning 141,586 1,178,173 7,544,298 656,306 313,159 9,833,521 Fund Balances - Ending $ 504,912$ 1,767,280$ 4,407,054$ 512,648$ 7,191,893-$ 114 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL ARTERIAL STREET CAPITAL PROJECT FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Taxes$ 970,000$ 970,000$ 520,091$ (449,909) Intergovernmental 45,114,000 9,114,000 1,518,122 (7,595,878) Fire Impact Fees 513,000 513,000 406,731 (106,269) Fines and Foreitures - - 533 533 Investment earnings 20,000 20,000 13,462 (6,538) Miscellaneous 30,000 30,000 12,200 (17,800) Total Revenues 46,647,000 10,647,000 2,471,138 (8,175,862) EXPENDITURES: Current: Transportation 2,572,000 2,572,757 1,536,443 1,036,314 Capital outlay 46,363,383 8,864,512 1,409,253 7,455,259 Total Expenditures 48,935,383 11,437,269 2,945,696 8,491,573 Excess of Revenues And Expenditures (2,288,383) (790,269) (474,557) 315,712 OTHER FINANCING SOURCES (USES): Transfers in 1,000,000 - - - Transfers out (675,106)- (190,106) 485,000 Total Other Financing Sources And Uses 1,000,000 (675,106) (190,106) 485,000 Net change in fund balances (1,288,383) (1,465,375) (664,663) 800,712 Fund balances - beginning 1,187,826 2,083,854 2,083,854(0) Fund Balances - Ending$ (100,557)$ 618,479$ 800,7111,419,190$ 115 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL LOCAL IMPROVEMENT DISTRICT #33 DEBT SERVICE FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Special Assessment$ 445,000$ 445,000$ 377,132$ (67,868) Investment earnings 223,613 223,613 173,266 (50,347) Total Revenues 668,613 668,613 550,398 (118,215) EXPENDITURES: Debt service: Principal 445,000 445,000 480,000 (35,000) Interest 223,613 223,613 199,313 24,301 Total Expenditures 668,613 668,613 679,313 (10,700) Excess of Revenues And Expenditures - - (128,914) (128,914) Net change in fund balances - - (128,914) (128,914) Fund balances - beginning 707,287 751,486 751,486 0 Fund Balances - Ending$ 707,287$ 751,486$ 622,572$ (128,914) 116 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL PUBLIC SAFETY PLAN CAPITAL PROJECT FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Taxes$ 500,000$ 500,000$ 318,317$ (181,683) Intergovernmental 1,497,247- 936,883 (560,364) Fire Impact Fees 300,000 300,000 300,000 - Investment earnings 100,000 100,000 200,354 100,354 Total Revenues 900,000 2,397,247 1,755,554 (641,693) EXPENDITURES: Current: Public safety 340,000 340,000 387,026 (47,026) Capital outlay 39,688,146 50,685,393 45,690,777 4,994,616 Total Expenditures 40,028,146 51,025,393 46,077,803 4,947,590 Excess of Revenues And Expenditures (39,128,146) (48,628,146) (44,322,249) 4,305,897 OTHER FINANCING SOURCES (USES): Sales of capital assets 1,000,000 1,000,000 (1,000,000)- Transfers in 783,709 3,536,709 3,181,775 (354,934) Total Other Financing Sources And Uses 1,783,709 4,536,709 3,181,775 (1,354,934) Net change in fund balances (37,344,437) (44,091,437) (41,140,475) 2,950,962 Fund balances - beginning 42,350,731 44,304,737 44,304,7370 Fund Balances - Ending$ 5,006,294$ 213,300$ 3,164,263$ 2,950,963 117 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL CITY FACILITIES CAPITAL PROJECT FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Investment earnings$ -$ 37,423-$ $ 37,423 Total Revenues - 37,423- 37,423 EXPENDITURES: Current: Capital outlay4,501,291 5,066,881 997,705 4,069,176 Total Expenditures 4,501,291 5,066,881 997,705 4,069,176 Excess of Revenues And Expenditures (4,501,291) (5,066,881) (960,282) 4,106,599 OTHER FINANCING SOURCES (USES): Transfers in 4,000,000- (4,000,000)- Transfers out (283,709) (283,709) - 283,709 Total Other Financing Sources And Uses (283,709) 3,716,291 (3,716,291)- Net change in fund balances (4,785,000) (1,350,590) (960,282) 390,308 Fund balances - beginning 6,350,590 5,961,144 5,961,144(0) Fund Balances - Ending$ 1,565,590$ 4,610,554$ 5,000,862$ 390,308 118 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL HOTEL/MOTEL TAX SPECIAL REVENUE FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Taxes$ 800,000$ 800,000$ 292,358$ (507,642) Intergovernmental - 30,878 30,878 - Investment earnings 3,000 3,000 13,036 10,036 Total Revenues 803,000 833,878 336,272 (497,606) EXPENDITURES: Current: Natural and economic environment695,500 726,766 589,081 137,685 Total Expenditures695,500 726,766 589,081 137,685 Excess of Revenues And Expenditures107,500 107,112 (252,809) (359,921) Net change in fund balances107,500 107,112 (252,809) (359,921) (0) Fund balances - beginning1,702,495 1,965,198 1,965,198 Fund Balances - Ending$ 1,809,995$ 2,072,310$ 1,712,389$ (359,921) 119 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL DRUG SEIZURE SPECIAL REVENUE FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Intergovernmental$ -$ 12,948-$ $ 12,948 Investment earnings - 1,356 1,356 - Miscellaneous 55,000 55,000 103,193 48,193 Total Revenues 55,000 55,000 117,496 62,496 EXPENDITURES: Current: Public safety60,000 60,000 42,681 17,319 Total Expenditures60,000 60,000 42,681 17,319 Excess of Revenues And Expenditures(5,000) (5,000) 74,815 79,815 Net change in fund balances(5,000) (5,000) 74,815 79,815 0 Fund balances - beginning221,507 256,718 256,718 Fund Balances - Ending$ 216,507$ 251,718$ 331,534$ 79,816 120 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL RESIDENTIAL STREET CAPITAL PROJECTS FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Intergovernmental$ 5,591,000$ 4,691,000$ 267,504$ (4,423,496) Charges for services - (145,296)- (145,296) Investment earnings 20,000 20,000 - (20,000) Total Revenues 5,611,000 4,711,000 122,207 (4,588,793) EXPENDITURES: Current: Transportation400,000 400,000 77,497 322,503 Capital outlay5,301,000 5,301,000 731,385 4,569,615 Total Expenditures5,701,000 5,701,000 808,881 4,892,119 Excess of Revenues And Expenditures(90,000) (990,000) (686,674) 303,326 OTHER FINANCING SOURCES (USES): Transfers in 100,000 1,050,000 1,050,000 - Total Other Financing Sources And Uses 100,000 1,050,000 1,050,000 - Net change in fund balances 10,000 60,000 363,326 303,326 (0) Fund balances - beginning 51,544 141,586 141,586 Fund Balances - Ending$ 61,544$ 201,586$ 504,912$ 303,326 121 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL LAND & PARK ACQUISITION CAPITAL PROJECTS FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Taxes$ 60,000$ 60,000$ 311,447$ 251,447 Intergovernmental - 6,700 6,700 - Charges for services 19,450 19,450 322,200 302,750 Investment earnings 15,000 15,000 8,175 (6,825) Total Revenues 94,450 94,450 648,522 554,072 EXPENDITURES: Current: Culture and recreation- - 271,472 (271,472) Capital outlay50,000 75,000 - 75,000 Total Expenditures50,000 75,000 271,472 (196,472) Excess of Revenues And Expenditures44,450 19,450 377,051 357,601 OTHER FINANCING SOURCES (USES): Transfers in 21,950 697,056 212,056 (485,000) Total Other Financing Sources And Uses 21,950 697,056 212,056 (485,000) Net change in fund balances 66,400 716,506 589,107 (127,399) 0 Fund balances - beginning 567,882 1,178,173 1,178,173 Fund Balances - Ending$ 634,282$ 1,894,679$ (127,399)1,767,280$ 122 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL URBAN RENEWAL CAPITAL PROJECTS FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Investment earnings$ 10,000$ 10,000$ 35,328$ 25,328 Total Revenues 10,000 10,000 35,328 25,328 EXPENDITURES: Current: General Government - (12) 12 - Natural and economic environment - (19,584) -19,584 Capital outlay 15,000 15,000 - 15,000 Total Expenditures 15,000 15,000 19,573 (4,573) Excess of Revenues And Expenditures (5,000) (5,000) 15,756 20,756 OTHER FINANCING SOURCES (USES): Transfers out (200,000) (3,353,000) (3,153,000) 200,000 Total Other Financing Sources And Uses (200,000) (3,353,000) (3,153,000) 200,000 Net change in fund balances (205,000) (3,358,000) (3,137,244) 220,756 (2,539,910) Fund balances - beginning 7,350,693 10,084,208 7,544,298 Fund Balances - Ending$ 7,145,693$ 6,726,208$ (2,319,154)4,407,054$ 123 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL GOVERNMENT IMPROVEMENTS CAPITAL PROJECTS FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Investment earnings$ 500$ 500$ 4,269$ 3,769 Total Revenues 500 500 4,269 3,769 EXPENDITURES: Current: General Government- - 147,926 (147,926) Capital outlay358,014 658,014 - 658,014 Total Expenditures358,014 658,014 147,926 510,088 Excess of Revenues And Expenditures(357,514) (657,514) (143,658) 513,856 OTHER FINANCING SOURCES (USES): Transfers in 200,000 200,000 (200,000)- Total Other Financing Sources And Uses 200,000 200,000 (200,000)- Net change in fund balances (157,514) (457,514) (143,658) 313,856 (0) Fund balances - beginning 525,166 656,306 656,306 Fund Balances - Ending$ 367,652$ 198,792$ 512,648$ 313,856 124 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FIRE IMPROVEMENTS CAPITAL PROJECTS FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Charges for services$ 500,000$ 500,000$ 113,843$ (386,157) Investment earnings 100 100 1,773 1,673 Total Revenues 500,100 500,100 115,616 (384,484) EXPENDITURES: Total Expenditures - - - - Excess of Revenues And Expenditures 500,100 500,100 115,616 (384,484) OTHER FINANCING SOURCES (USES): Transfers out (500,000) (500,000) (428,775) 71,225 Total Other Financing Sources And Uses (500,000) (500,000) (428,775) 71,225 Net change in fund balances 100 (313,159)100 (313,259) (0) Fund balances - beginning 17,235 313,159 313,159 Fund Balances - Ending$ 17,335$ 313,259$ -$ (313,259) 125 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL SPECIAL ASSESSMENT BONDS GUARANTY FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Investment earnings$ 300$ 15,069300$ $ 14,769 Total Revenues 300 15,069300 14,769 EXPENDITURES: Total Expenditures - - - - Excess of Revenues And Expenditures 300 15,069300 14,769 OTHER FINANCING SOURCES (USES): Total Other Financing Sources And Uses - - - - Net change in fund balances 300 15,069300 14,769 (0) Fund balances - beginning 685,337 705,744 705,744 Fund Balances - Ending$ 685,637$ 706,044$ 720,813$ 14,769 126 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL UNLIMITED TAX GENERAL OBLIGATION DEBT SERVICE FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Taxes$ 3,713,175$ 3,713,175$ (279,547)3,433,628$ Investment earnings - 43 43 - Total Revenues 3,713,175 3,713,175 3,433,671 (279,504) EXPENDITURES: Debt service: Principal1,310,000 1,310,000 700,000 610,000 Interest2,403,175 2,403,175 2,812,537 (409,362) Total Expenditures3,713,175 3,713,175 3,512,537 200,638 Excess of Revenues And Expenditures- - (78,866) (78,866) OTHER FINANCING SOURCES (USES): Total Other Financing Sources And Uses - - - - Net change in fund balances - (78,866)- (78,866) 0 Fund balances - beginning 40,117 88,825 88,825 Fund Balances - Ending$ 40,117$ 88,825$ 9,959$ (78,866) 127 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL LIMITED TAX GENERAL OBLIGATION DEBT SERVICE FUND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance With OriginalFinalFinal Budget BudgetBudgetActualPositive (GAAP Basis)(GAAP Basis)Results(Negative) REVENUES: Intergovernmental$ 43,113$ 43,113$ 20,657$ (22,456) Investment earnings - - 2,051 2,051 Miscellaneous 426,658 426,658 (426,658)- Total Revenues 469,771 469,771 22,708 (447,063) EXPENDITURES: Debt service: Principal1,844,647 1,844,647 1,306,461 538,186 Interest2,745,246 2,795,246 2,433,693 361,553 Total Expenditures4,589,893 4,639,893 3,740,154 899,739 Excess of Revenues And Expenditures(4,120,122) (4,170,122) (3,717,446) 452,676 OTHER FINANCING SOURCES (USES): Bond proceeds - 1,995,000- 1,995,000 Payment of refunded debt - (2,330,000)- (2,330,000) Transfers in 4,120,540 4,170,540 4,023,849 (146,691) Total Other Financing Sources And Uses 4,120,540 4,170,540 3,688,849 (481,691) Net change in fund balances 418 (28,598)418 (29,016) (3,844) Fund balances - beginning 511,472 453,537 449,693 Fund Balances - Ending$ 511,890$ 453,955$ 421,095$ (32,860) 128 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES NON-MAJOR INTERNAL SERVICE FUNDS Internal Service Funds r the financing of special services performed by designated departments within the City of Tukwila for the benefit of other departments within the City. The funds provide services then generate revenue by billing the department for which the service was provided. the costs of maintaining and replacing all City vehicles and auxiliary equipment. All equipment costs, including depreciation, are factors in calculating the rates which are charged to each user department. and dental costs for covered employees are charged to the respective departments. All premiums, medical and dental costs and ancillary charges are included. 1 retirees. Medical and dental costs for covered employees are charged to the respective departments, either the Police Department or the Fire Department. All premiums, medical and dental costs and ancillary charges are included. 129 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS DECEMBER 31, 2020 Total Insurance -Insurance -Internal EquipmentActiveLeoff IService RentalEmployeesRetireesFunds ASSETS: Current assets Cash and cash equivalents$ 4,612,864$ 1,232,860$ 479,530$ 6,325,255 Investments 495,077- 495,077- Receivables 7,964 24,090 32,054- Inventory of materials and supplies 13,838 - 13,838- Total Current Assets 4,634,667 1,752,027 479,530 6,866,224 Capital Assets: Machinery and equipment 19,205,173 - 19,205,173- Less: accumulated depreciation (11,393,517) - (11,393,517)- Total Capital Assets (Net Of A/D) 7,811,656 - 7,811,656- Total Noncurrent Assets 7,811,656 - 7,811,656- Total Assets 12,446,323 1,752,027 479,530 14,677,880 Deferred Outflows of Resources RecTaxDeferred outflow pension earnings 35,304 - 35,304- Total Deferred Outflows Of Resources 35,304 - 35,304- LIABILITIES: Current liabilities: Accounts payable 140,053 1,985 5,435 147,474 Accrued wages and benefits 8,626 - - 8,626 Claims incurred but not reported 665,000- 55,000 720,000 Total Current Liabilities 148,679 666,985 60,435 876,099 Noncurrent liabilities: Reserve for unreported claims 997,500- 82,500 1,080,000 Net pension liability 120,806 - 120,806- Total Noncurrent Liabilities 120,806 997,500 82,500 1,200,806 Total Liabilities 269,485 1,664,485 142,935 2,076,905 Deferred Inflows of Resources RecTaxDeferred inflow pension earnings 50,703 - 50,703- Total Deferred Inflows Of Resources 50,703 - - 50,703 NET POSITION: Investment in capital assets 7,811,656 - 7,811,656- Unrestricted 4,349,783 87,542 336,595 4,773,919 Total Net Position$ 12,161,439$ 87,542$ 336,595$ 12,585,575 130 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2020 Total Insurance -Insurance-Internal EquipmentActiveLeoff IService RentalEmployeesRetireesFunds OPERATING REVENUES: Charges for services2,265,786$ 6,630,799$ 254,868$ 9,151,453$ Other operating revenue 474 157,710 158,185- Total Operating Revenue 2,266,260 6,788,510 254,868 9,309,638 OPERATING EXPENSES: Operations & maintenance1,096,1116,584,004374,9598,055,074 Administrative & general593,136148,106 - 741,242 Depreciation1,402,227 - - 1,402,227 Total Operating Expenses 3,091,474 6,732,110 374,959 10,198,543 Operating Income (Loss) (825,213) 56,399 (120,091) (888,905) NON-OPERATING REVENUE (EXPENSE): Investment earnings 32,459 13,928 21,631 68,018 Gain (loss) on disposal of capital assets 163,847 - 163,847- Other non-operating revenue 3,894 - - 3,894 Total Non-Operating Revenue (Expense)200,200 13,928 21,631 235,759 Income (Loss) (625,013) 70,327 (98,459) (653,145) Change In Net Position (625,013) 70,327 (98,459) (653,145) Net position beginning of year12,786,45217,215435,05413,238,721 Net Position end of year$ 12,161,439$ 87,542$ 336,595$ 12,585,575 131 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2020 Page 1 of 2 Total Insurance -Insurance-Internal EquipmentActiveLeoff IService RentalEmployeesRetireesFunds CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from users2,258,296$ 6,782,665$ 254,868$ 9,295,828$ Cash paid to suppliers(631,765) (53,641) (12,400) (697,807) Cash paid to, or on behalf of, employees(474,870) (6,486,565) (374,959) (7,336,394) Interfund activity - payments to other funds(593,136) - - (593,136) Net Cash Provided (Used) By Operating Activities558,525 242,459 (132,491) 668,492 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating grant received3,894 - - 3,894 Net Cash Provided (Used) By Non- Capital Financing Activities3,894 - - 3,894 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceed from sale of equipment610,433 - - 610,433 Purchase of capital asset(1,716,058) - - (1,716,058) Net Cash Provided (Used) For Capital And Related Financing Activities(1,105,624) - - (1,105,624) CASH FLOW FROM INVESTING ACTIVITIES: Proceeds from sale of investments- - 500,000 500,000 Purchase of investments- (160,000) - (160,000) Interest received32,459 28,448 (5,150) 55,757 Net Cash Provided (Used) In Investing Activities32,459 (131,552) 494,850 395,757 Net Increase (Decrease) In Cash And Cash Equivalents(510,747) 110,906 362,359 (37,481) Cash and cash equivalents-beginning of year5,123,611 1,121,954 117,171 6,362,736 Cash And Cash Equivalents-End Of Year4,612,864$ 1,232,860$ 479,530$ 6,325,255$ Cash at end of year consists of: Cash and cash equivalents4,612,864$ 1,232,860$ 479,530$ 6,325,255 Total Cash$ 4,612,864$ 1,232,860$ 479,530$ 6,325,255 132 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF TUKWILA, WASHINGTON COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2020 Page 2 of 2 Total Insurance -Insurance-Internal EquipmentActiveLeoff IService RentalEmployeesRetireesFunds RECONCILIATION OF NET OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income (Loss)(825,213)$ 56,399$ (120,091)$ (888,905)$ Adjustments to reconcile operating income to net cash Provided (used) by operating activities: Depreciation1,402,227 - - 1,402,227 Asset (increases) decreases: Accounts receivable(7,964) (5,845) - (13,809) Inventory19,293 - - 19,293 Deferred outflow of resources (increase) decrease(1,905) - - (1,905) Liability increases (decreases): Accounts payable21,081 191,905 (12,400) 200,585 Wages and benefits payable(12,142) - - (12,142) Deferred inflow of resources increase (decrease)(36,852) - - (36,852) Total Adjustments1,383,738 186,060 (12,400) 1,557,397 Net Cash Provided (Used) By Operating Activities558,525$ 242,459$ (132,491)$ 668,492$ SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Increase (decrease) in fair value of investment- - - - Total Non Cash Investing, Capital And Financing Activities-$ -$ -$ -$ 133 CITY OF TUKWILA: 2020 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES 134 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION City of Tukwila STATISTICAL SECTION December 31, 2020 Financial Trends Information Financial trends schedules are intended to provide users with information to assist them in understanding and Schedule 1 Net Position by Component ...................................................................................................... 136 Schedule 2 Changes in Net Position ............................................................................................................ 138 Schedule 3 Fund Balances, Governmental Funds ....................................................................................... 140 Schedule 4 Changes in Fund Balances of Governmental Funds ................................................................ 142 Schedule 5 General Governmental Tax Revenues by Source .................................................................... 144 Revenue Capacity Information The objective of providing revenue capacity information is to help users understand and assess the factors most significant local source revenues. Schedule 6 Property Tax Levies and Collections ......................................................................................... 145 Schedule 7 Assessed and Estimated Actual Value of Taxable Property ..................................................... 146 Schedule 8 Property Tax Rates-Direct and Overlapping Governments ...................................................... 147 Schedule 9 Principal Property Taxpayers .................................................................................................... 148 Schedule 10 Retail Sales Tax Collections by Sector ..................................................................................... 150 Schedule 11 Sales Tax Rate Direct and Overlapping Governments ............................................................. 152 Debt Capacity Information Debt capacity information is intended to assist users outstanding debt and ability to issue additional debt in the future. Schedule 12 Ratios of Outstanding Debt by Type ......................................................................................... 154 Schedule 13 Ratios of General Bonded Debt Outstanding ............................................................................ 156 Schedule 14 Computation of Direct and Overlapping Debt ........................................................................... 157 Schedule 15 Legal Debt Margin Information .................................................................................................. 158 Demographic and Economic Information These Schedules offer demographic and economic information to assist users in understanding certain aspects of the environment within which the City operates and to provide information that facilitates comparisons of financial statement information over time and across governmental units. Schedule 16 Demographic Statistics .............................................................................................................. 160 Schedule 17 Principal Employers ................................................................................................................... 161 Operating Information These Schedules contain service and infrastructure data to help users understand how the information in the he City provides and the activities it performs. Schedule 18 Full-time Equivalent Employee by Department ......................................................................... 162 Schedule 19 Operating Indicators by Function .............................................................................................. 163 Schedule 20 Capital Assets by Function ........................................................................................................ 164 135 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA SCHEDULE 1 (a) NET POSITION BY COMPONENT LAST TEN FISCAL YEARS Page 1 of 2 2011201220132014 Governmental activities: Net investment in capital assets$ 199,511,779$ 203,206,940$ 207,660,389$ 191,081,461 Restricted5,019,8172,749,6803,480,0023,973,726 Unrestricted21,479,06420,194,33326,981,10525,009,212 Total governmental activities net position226,010,660$ $ 226,150,953$ 238,121,496$ 220,064,399 Business-type activities: Net investment in capital assets$ 52,134,799$ 52,911,741$ 55,955,595$ 57,677,764 Restricted 430,444 430,444430,444430,444 Unrestricted 10,225,558 11,011,31912,964,53913,839,529 Total business-type activities net position62,790,801$ $ 64,353,504$ 69,350,577$ 71,947,736 Primary government: Net investment in capital assets$ 248,636,920$ 253,253,170$ 263,615,984$ 248,759,225 Restricted 5,450,261 3,180,123 3,910,445 4,404,170 Unrestricted 34,714,280 34,071,164 39,945,644 38,848,741 Total primary government net position$ 288,801,461$ 290,504,457$ 307,472,073$ 292,012,136 otes: N (a) All amounts are reported on the accrual basis Source: Tukwila Finance Department 136 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION Page 2 of 2 201520162017201820192020 $ 191,331,156$ 193,113,026$ 199,328,694$ 201,997,812$ 201,887,136201,649,103$ 5,446,0748,996,18313,480,06816,962,37718,692,94417,784,194 16,125,59215,809,94511,366,54512,407,29717,772,77622,003,200 $ 212,902,822$ 217,919,155$ 224,175,306$ 231,367,487$ 241,674,530238,114,823$ $ 59,483,424$ 60,807,030$ 65,355,778$ 68,680,695$ 68,362,159$ 69,238,961 - - - - - - 14,658,91217,240,62017,425,40118,988,78222,104,66425,231,660 $ 74,142,335$ 78,047,650$ 82,781,179$ 87,669,477$ 90,466,823$ 94,470,621 $ 250,814,581$ 253,920,056$ 264,684,471$ 270,678,507$ 271,126,097270,011,262$ 5,446,074 8,996,183 13,480,068 16,962,377 18,692,944 17,784,194 30,784,504 33,050,565 28,791,946 31,396,080 39,877,441 47,234,860 $ 287,045,158$ 295,966,804$ 306,956,485$ 319,036,964$ 336,145,151328,581,646$ 137 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 2 a CHANGES IN NET POSITION () Page 1 of 2 2011201220132014 Expenses Governmental Activities (b) General government$ 9,150,573$ 8,343,107$ 10,195,049$ 10,289,399 Public safety 25,348,318 26,598,432 25,938,946 29,292,587 Physcial environment 2,885,175 3,625,696 2,610,591 11,668,098 Transportation 6,872,708 7,314,707 7,658,280 2,479,533 Mental and physical health 4,591 - - - uture an recreaton ,, 5,,,75 5,5,7 ,5 Cldi420382442422633433669 Natural and economic environment 4,712,832 4,801,342 5,209,954 5,716,091 Interest on Long Term Debt 472,438 1,152,063 1,038,851 1,204,771 Total Governmental Activities 53,650,459 56,078,072 58,287,017 65,987,138 Business Type Activities Water/Sewer Utility 10,092,903 10,149,557 10,421,064 12,752,125 Foster Golf Course 1,986,747 1,701,131 1,707,993 1,945,789 Surface Water Utility 2,588,098 2,699,767 2,563,132 3,310,716 Total Business Type Activities 14,667,748 14,550,455 14,692,189 18,008,631 otarmary overnment xpenses ,,7 7,,57 7,7,5 ,5,7 TlPiGE$6831820$06282$29920$839969 Program Revenues Governmental Activities (b) Charges for Services General government2,462,671$ 1,332,418$ 1,495,438$ 3,858,862$ Public safety 809,806 684,744 871,919 970,594 Physcial environment 7,572 4,939 27,407 196,506 Transportation 345,373 1,004,911 287,956 8,425 Culture and recreation 1,001,117 481,404 744,014 2,793,185 Natural and economic environment 1,722,285 2,323,528 2,786,178 726,869 Operating Grants and Contributions 2,250,601 4,411,618 3,289,818 2,563,002 Capital Grants and Contributions 18,495,127 1,581,882 16,947,529 8,053,435 Total Governmental Activities Program Revenues 27,094,552 11,825,444 26,450,258 19,170,879 Business Type Activities Charges for Services Water/Sewer Utility 11,711,242 11,758,658 13,146,131 14,308,945 Foster Golf Course 1,304,016 1,448,729 1,404,264 1,406,440 Surface Water Utility 3,355,956 3,827,010 3,913,184 4,168,313 Operating Grants and Contributions - - - - Capital Grants and Contributions 1,993,537 135,603 338,943 1,548,280 Total Business Type Activities Program Revenues 18,364,751 17,170,000 18,802,521 21,431,978 Total Primary Government Program Revenues 45,459,303 28,995,444 45,252,779 40,602,857 Net (Expense)/Revenue Governmental Activities (26,555,907) (44,252,628) (31,836,759) (46,816,260) Business Type Activities 3,697,003 2,619,546 4,110,332 3,423,348 otarmary overnment et xpense ,5, ,, 7,7, ,, TlPiGNE$(2288904)$(41633082)$(226426)$(43392912) General Revenues and Other Changes in Net Position Governmental Activities Taxes Property Tax13,443,137$ 14,131,605$ 14,510,241$ $ 14,870,621 Retail Sales and Use Tax 15,796,054 15,441,683 16,316,398 17,105,322 Natural Gas Use Tax 317,531 232,208 204,457 - Hotel/Motel Tax 555,682 522,033 526,832 596,781 Utility Tax 7,534,260 5,535,966 3,879,992 3,855,544 Interfund Utility Taxes - 1,686,859- 1,851,013 Business Tax 667,679 2,497,606 2,570,111 2,555,999 Excise Tax 2,170,293 2,860,948 2,745,475 3,512,894 Unrestricted Investment Earnings 275,477 116,694 102,486 444,282 Miscellaneous 2,085,740 1,997,335 2,166,215 1,915,031 Transfers 525,864 1,056,843 1,060,650 (600,000) Total Governmental Activities 43,371,717 44,392,921 45,769,716 46,107,488 Business Type Activities Unrestricted Investment Interest 61,119 - - - Miscellaneous 200,871 - - - Transfers (525,864) (1,056,843) (1,060,650) 600,000 Total Business Type Activities (263,874) (1,056,843) (1,060,650) 600,000 otarmary overnment ,7, ,,7 ,7, ,77, TlPiG$4310843$4333608$4409066$460488 Change in Net Position Before Special Item 20,248,939 1,702,996 16,982,640 3,314,576 Special ite (1,995,000) m 20,248,939 1,702,996 16,982,640 1,319,576 Change in Net Position Governmental Activities 16,815,810 140,293 13,932,957 (2,703,772) Business Type Activities 3,433,129 1,562,703 3,049,682 4,023,348 otarmary overnment ,, ,7, ,, ,,57 TlPiG$20248939$102996$16982640$13196 Notes: (a) All amounts are reported on the accrual basis (b) Governmental activity classifications changed beginning with the 2019 CAFR Source: Tukwila Finance Department 138 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION Page 2 of 2 201520162017201820192020 $ 9,662,2078,042,254$ 9,835,290$ 10,763,025$ 11,105,119$ 10,792,736$ 31,418,71329,403,206 31,190,347 17,097,372 27,402,906 25,090,275 2,554,2592,611,297 2,545,144 2,645,577 - - 11,188,18911,069,605 12,236,551 15,871,018 18,442,230 12,757,271 -- - - - - 5,5,7 ,5,5, 5,5, ,7, 5,5,7 5, 122243132482038912136062192290 5,782,907 4,410,841 4,523,596 4,411,719 4,515,516 4,426,553 1,033,440 1,075,729 2,481,559 2,748,854 3,009,268 4,927,364 63,067,935 65,741,262 68,394,526 59,128,779 70,551,259 63,517,106 13,186,236 13,984,368 14,305,425 14,861,448 15,957,397 14,111,179 2,086,586 2,077,536 1,989,972 2,091,981 2,128,042 1,908,023 4,147,974 4,088,360 4,209,325 4,464,319 6,166,267 4,991,110 19,420,796 20,150,264 20,504,722 21,417,748 24,251,707 21,010,311 ,,7 5,,55 ,,7 ,5,57 ,, ,57,7 $8248831$88912$8889924$80462$94802966$84241 $ 3,742,9373,794,134$ 4,144,986$ 5,989,077$ 6,565,339$ 7,481,748$ 4,130,7011,754,856 1,540,863 1,970,331 2,543,188 2,037,444 464- - - - - 454,525206,065 2,206,908 2,261,577 106,958 890,982 1,140,558644,283 1,315,740 1,415,827 1,914,795 654,085 3,348,802 2,434,546 2,270,759 3,099,692 3,533,733 2,671,049 893,470 1,079,020 2,445,998 1,733,308 794,371 1,567,067 6,431,537 5,000,942 6,126,880 9,942,224 2,578,046 1,415,931 17,073,146 17,983,694 20,052,136 26,412,036 18,036,429 16,718,306 15,572,709 15,661,118 16,580,965 17,203,158 17,831,892 14,857,183 1,482,288 1,426,385 1,313,871 1,563,320 1,610,152 1,906,355 5,286,233 5,875,343 6,200,589 6,417,368 6,797,683 6,956,702 - 25,000 8,435 54,697 228,755 121,754 2,039,890 767,732 834,392 767,504 280,570 1,405,464 24,381,122 23,755,578 24,938,251 26,006,046 26,749,053 25,247,459 41,454,268 41,739,272 44,990,386 52,418,082 44,785,482 41,965,764 (45,994,789) (47,757,566) (48,342,390) (32,716,743) (52,514,829) (46,798,800) 4,960,326 3,605,314 4,433,529 4,588,299 2,497,346 4,237,148 ,, ,5,5 ,, ,,5 5,7, ,5,5 $(41034463)$(441222)$(43908861)$(2812844)$(001483)$(426163) $ 14,562,50114,320,085$ 17,667,590$ 18,008,738$ 18,390,051$ 19,839,475$ 18,908,19019,334,152 18,807,201 20,603,617 20,687,748 17,102,061 -- - - - - 710,267677,971 736,784 833,990 819,095 292,358 4,045,9164,019,288 4,175,013 3,866,859 3,644,470 4,286,358 2,061,098 2,146,515 2,265,747 2,334,522 2,358,608 2,153,573 2,749,140 2,716,257 2,698,352 1,246,798 1,299,085 407,877 5,321,281 6,508,665 5,380,662 5,091,447 5,336,066 3,323,814 475,345 559,733 838,630 1,508,334 1,247,003 680,094 2,124,185 2,915,859 2,328,565 2,240,045 5,377,939 2,039,548 (300,000)- (300,000) (300,000) 102,100 233,350 51,082,545 52,773,904 54,598,542 55,434,351 59,262,164 50,358,508 - - - - - - - - - - - - - 300,000 300,000 300,000 300,000 (233,350) - 300,000 300,000 300,000 300,000 (233,350) 5,,55 5,7, 5,,5 55,7,5 5,5, 5,5,5 $10824$303904$489842$3431$962164$01218 10,048,082 8,921,652 10,989,681 27,605,906 9,544,681 7,563,506 (956,798) - - - - - 9,091,285 8,921,652 10,989,681 27,605,906 9,544,681 7,563,506 3,830,958 5,016,337 6,256,152 22,717,608 6,747,335 3,559,708 5,260,326 3,905,314 4,733,529 4,888,299 2,797,346 4,003,798 ,,5 ,,5 ,, 7,5, ,5, 7,5,5 $909128$892161$10989681$260906$944681$6306 139 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 3 FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) Page 1 of 2 2011201220132014 General Fund Nonspendable5,000$ -$ 1,743,362$ 1,544,022$ Restricted- - - - Committed18,000 - - - Assigned- - 225,000 5,771,471 Unassigned8,237,141 8,378,557 15,317,624 10,181,057 Total general fund8,260,141$ 8,378,557$ 17,285,986$ 17,496,550$ All other governmental funds Nonspendable-$ -$ -$ 7,370,000$ Restricted5,014,817 2,749,681 3,480,001 3,973,726 Committed402,306 - - - Assigned11,127,221 7,021,183 4,510,623 4,076,803 Unassigned- - (1,566,175) (1,360,218) Total all other governmental funds16,544,344$ 9,770,864$ 6,424,449$ 14,060,311$ 140 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION Page 2 of 2 201520162017201820192020 $ 1,141,4841,340,914$ 927,373$ 718,190$ 508,447$ 292,498$ -- - - - - -- - - - - 6,277,9296,078,648 105,000 181,078 397,736 660,425 11,612,33010,911,244 18,040,352 19,718,745 19,233,980 18,469,248 $ 19,031,74418,330,806$ 19,072,725$ 20,618,013$ 20,140,163$ 19,422,170$ $ 7,645,0007,645,000$ -$ -$ -$ -$ 45,986,4635,446,074 51,236,443 32,531,984 48,694,929 5,483,785 -- - - - - 3,389,1397,221,870 10,282,709 11,819,299 17,705,991 15,110,785 -- - - - - $ 57,020,60220,312,943$ 61,519,152$ 44,351,283$ 66,400,920$ 20,594,569$ 141 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 4 a CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS () LAST TEN FISCAL YEARS page 1 of 2 2011201220132014 Revenues Taxes$ 41,502,60838,035,681$ 42,402,070$ 44,441,783$ Licenses and Permits 3,473,910 1,604,594 2,013,875 2,114,638 Intergovernmental 24,059,907 7,626,487 7,190,325 14,298,126 Charges for Services 2,359,600 3,974,356 3,747,646 3,838,531 Fines and Forfeitures 308,027 220,752 242,638 264,934 Investment Income 275,479 106,286 151,911 479,219 Special Assessments - - 2,788,350 701,723 Miscellaneous 356,409 131,979 427,368 354,395 Total Revenues 68,869,013 55,167,062 58,964,183 66,493,348 Expenditures General Government 8,253,440 8,504,511 9,303,742 7,505,173 Public Safety 24,327,498 24,918,306 25,720,884 27,254,312 Physical Environment 2,060,482 3,022,516 1,935,895 1,807,993 Transportation 2,676,511 2,769,182 3,111,493 5,820,601 Natural and Economic Environment 4,682,646 4,767,944 5,224,964 5,226,832 Mental & Physical Health 4,591 - - - Culture and Recreation 3,507,150 3,373,000 4,386,392 4,680,651 Debt Service Principal 1,766,774 1,991,540 5,024,991 2,288,988 Interest 881,850 1,178,464 1,162,649 961,457 Capital Outlay 25,643,704 12,099,293 5,854,962 10,150,912 Total Expenditures 73,804,646 62,624,756 61,725,970 65,696,921 (4,935,633) (7,457,694) (2,761,786)796,428 Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers In 11,001,619 7,625,792 20,918,983 7,300,080 Transfers In - Assessment - - 2,788,350 - Transfers Out (10,061,205) (6,174,358) (23,301,516) (7,900,080) Capital Leases 15,468 - - - Sale of Capital Assets 21,406 9,903 5,493 - General Obligation Bonds Issued 5,055,688 - 1,000,000 3,850,000 Refunding of General Obligation Bonds - - - - LID Bonds Assessment - - 6,687,500 - Operating Loan-Tukwila MPD - (658,706) - - Premium on General Obligation Debt - - - - Payment to Refunded Bond Escrow Agent (5,055,688) - - - Total Other Financing Sources (Uses) 977,288 802,631 8,098,809 3,250,000 (3,958,345) (6,655,063) 5,337,023 4,046,428 Change in Fund Balance Before Special Item Special Item - - (1,995,000) - $ (3,958,345)$ (6,655,064)$ 5,337,023$ 2,051,428 Net Change in Fund Balances Ratio of Debt Service Expenditures5.80%6.70%11.07%6.70% To Total Non-Capital Expenditures (a) All amounts are reported on the modified - accrual basis Source: Tukwila Finance Department 142 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION page 2 of 2 201520162017201820192020 $ 49,588,49248,548,116$ 51,655,075$ 51,988,591$ $ 52,686,247$ 47,560,434 2,242,256 2,129,221 2,749,137 4,875,454 5,554,899 6,738,212 11,839,883 10,067,413 12,739,774 15,919,377 7,495,781 6,647,587 3,935,248 3,911,473 5,767,228 6,801,719 7,442,843 3,540,211 261,457 318,459 325,216 291,604 245,748 209,551 475,345 541,299 826,864 1,538,534 1,258,493 680,094 650,415 542,180 478,838 415,660 515,266 377,132 332,268 957,158 942,784 407,151 515,923 560,804 68,284,989 68,055,695 75,484,915 82,238,092 75,715,199 66,314,025 7,708,394 9,405,989 9,585,551 10,491,432 8,777,726 8,620,827 29,035,165 29,366,198 30,899,412 34,331,520 32,586,415 31,792,303 1,935,228 1,955,031 1,733,400 1,805,457 - - 5,792,668 5,238,468 6,532,195 10,015,938 9,717,429 6,346,303 5,832,384 4,493,210 4,614,027 4,686,528 4,752,115 4,659,575 - - - - - - 4,350,052 4,543,339 4,664,129 4,852,138 5,328,994 4,551,092 2,480,507 2,602,782 3,713,928 4,092,196 4,238,521 2,486,461 1,125,609 1,093,584 2,603,869 2,977,523 4,060,086 5,445,543 11,426,274 8,358,450 14,761,715 47,601,490 51,397,863 48,834,614 69,686,279 67,057,051 79,108,226 120,854,221 120,859,149 112,736,719 (1,401,291) 998,643 (3,623,311) (38,616,129) (45,143,950) (46,422,694) 5,633,846 4,025,831 6,354,496 7,742,669 7,233,686 8,867,680 - - 3,119,513 - - - (5,933,846) (4,325,831) (6,654,496) (8,042,669) (7,131,586) (8,634,330) - - - - - - - (100,000) - - - - 8,075,000 32,990,000 10,456,000 18,365,000 60,600,000 1,995,000 - - (2,330,000)- - - - - - - - - - - - - - - 309,758 3,719,954 356,839 1,809,036 6,013,637 - - - - - - - 8,084,758 36,409,954 10,412,839 22,993,549 66,715,737 (101,650) 6,683,467 37,408,597 6,789,528 (15,622,580) 21,571,787 (46,524,344) (956,798) - - - - - $ 5,726,669$ 6,789,52837,408,597$ $ 21,571,787(15,622,580)$ $ (46,524,344) 6.30%6.30%9.80%9.65%11.95%12.41% 143 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 5 GENERAL GOVERNMENTAL TAX REVENUES BY SOURC E LAST TEN FISCAL YEARS Fiscal YearProperty(a)Sales & UseUtility(b)ExciseBusinessOtherTotal Taxes 201113,427,13916,113,5845,424,6431,780,294667,064622,95538,035,681 201214,072,01515,441,6834,001,3853,201,0982,497,6062,288,82241,502,608 201314,510,24116,316,3983,879,9922,745,4752,570,1112,418,14842,440,365 201414,870,62117,105,3223,855,5443,512,8942,555,9992,447,79444,348,175 201514,320,08519,334,1524,019,2885,321,2802,749,1402,739,07048,483,015 201614,562,50118,908,1904,045,9166,508,6652,716,2572,856,78249,598,312 201717,667,59018,807,2014,175,0135,380,6622,698,3523,002,53151,731,348 201818,008,73820,603,6173,866,8595,091,4471,246,7982,334,52251,151,981 201918,390,05120,687,7483,644,4705,336,0661,299,0853,177,70352,535,122 2020 19,839,475 17,102,061 4,286,358 3,323,814 407,877 2,445,931 47,405,516 Change 2011-202047.8%6.1%-21.0%86.7%-38.9%292.6%24.6% Notes: (a) Beginning in 2017, property tax includes a voter approved excess levy for public safety facilities. (b) Utility taxes enacted beginning in 2003 for electric, natural gas, cable and telephone utilities are assessed at rates of 6.0%. A utility tax was added in 2009 for solid waste and recycling and is currently assessed at a 16.0% rate. Source: Tukwila Finance Department 144 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 6 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collected Within the Fiscal Year of the LevyTotal Collections to Date Collections in Fiscal Taxes Levied for Subsequent Year Fiscal Year Amount % of Levy Years Amount % of Levy 201113,383,153 13,225,338 98.82%157,814 13,383,153 100.00% 201213,697,474 13,521,621 98.72%175,853 13,697,474 100.00% 201313,740,076 13,549,525 98.61%190,550 13,740,076 100.00% 201414,047,317 13,916,718 99.07%123,482 14,040,200 99.95% 201514,245,846 14,113,739 99.07%131,205 14,244,943 99.99% 201614,516,623 14,375,358 99.03%141,265 14,516,623 100.00% 2017*17,551,561 17,262,965 98.36%253,227 17,516,192 99.80% 201818,006,677 17,844,087 99.10%126,306 17,970,393 99.80% 201918,796,071 18,648,149 99.21%74,928 18,723,077 99.61% 202020,044,161 19,705,761 98.31%(0) 19,705,761 98.31% *First year of collection on 2016 voter-approved levy for Public Safety Plan Source: King County Office of Finance 145 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 7 ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Total Assessed Total Direct Fiscal Year Real Property Personal Property Public Utilities Value Tax Rate 2011 3,833,295,985 712,607,656 129,726,102 4,675,629,743 2.95408 2012 3,778,571,709 736,480,616 134,138,983 4,649,191,308 2.98778 2013 3,824,448,044 779,103,146 152,822,498 4,756,373,688 2.97799 2014 4,146,952,417 744,616,273 162,510,057 5,054,078,747 2.84188 2015 4,409,931,075 810,422,092 174,971,951 5,395,325,118 2.71073 2016 4,763,568,175 849,695,435 150,386,219 5,763,649,829 3.05735 2017 5,242,264,743 780,938,084 161,740,436 6,184,943,263 2.91864 2018 5,823,887,746 678,435,063 171,517,113 6,673,839,922 2.81805 2019 6,430,058,373 760,313,756 214,068,301 7,404,440,430 2.73416 2020 6,841,975,997 826,589,881 214,491,684 7,883,057,562 2.67733 Note: *Real, personal, and state public service property have been assessed at 100% of the estimated value. Source: King County Department of Assessments 146 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 8 PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS (PER $1,000 OF ASSESSED VALUATION) LAST TEN FISCAL YEARS Central ------------CITY OF TUKWILA------------ Puget Sound Emergency Tukwila Tukwila Pool Regional General Special King Port of Medical School Dist Flood Metropolitan Hospital Transit Fiscal YearLevyLevyTotalWA StateCountySeattleService#406ControlPark DistrictDistrict #1Authority Total (a) 20112.95408 - 2.95408 2.42266 0.229821.98580 0.30000 5.44659 0.11616 - 0.50372 13.95883- 20122.98778 2.98778- 2.56720 0.233242.11172 0.30000 5.69832 0.50000 14.68036- 0 .13210 0 .15000 20132.97799 2.97799- 2.47044 0.215332.08129 0.33500 5.89098 0.50000 14.77416- 0 .15369 0 .14944 20142.84188 2.84188- 2.28514 0.188851.84798 0.30217 5.50160 0.50000 13.75584- 0 .13860 0 .14962 20152.71073 2.71073- 2.16898 0.169541.95741 0.28235 5.22858 0.50000 13.29592- 0 .12980 0 .14853 20162.58592 0.47143 2.03205 0.153341.83412 0.26305 5.36954 0.50089 0.25000 13.48427 3.05735 0 .11740 0 .15653 20172.46285 0.45579 2.91820 0.135181.73925 0.23940 5.17356 0.45689 0.22745 14.07078 2.91864 0 .10708 0 .15513 20182.39148 0.42657 2.62922 1.60359 0.12266 0.21762 3.39103 0.41673 0.20700 11.66017 2.81805 0 .09660 0 .15767 20192.26293 0.47123 3.02799 0.119441.59993 0.26500 3.42786 0.40069 0.19937 12.01984 2.73416 0 .09199 0 .15341 20202.17985 2.67733 3.08823 0.119841.60421 0.26499 3.78886 0.38511 0.19709 12.36577 0 .49748 0 .08909 0 .15102 Note: (a) Includes King County Library District tax and Ferry Source: King County Department of Assessments 147 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 9 PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO Percent of Percent of 2020 Total 2011 Total 2020 Assessed Assessed 2011 Assessed Assessed NameType of BusinessValuationValueValuationValue (a)(b) BoeingAirplane company$ 524,637,3116.66%$ 458,280,2919.80% Property Tax Resources LLCCommercial Properties 222,327,5002.82% Segale PropertiesCommercial Properties 161,477,8912.05% 152,244,3673.26% Sabey CorporationReal Estate Development 131,687,8001.67% Foster Creek Apartments LLCMulit-Family 129,631,0001.64% Westfield PropertyDepartment Stores 126,391,7831.60% 295,868,6126.33% Boeing Employees Credit UnionCredit Union 123,024,1001.56% 39,493,8340.84% PrologisReal Estate Development 111,252,0001.41% LIT Industrial LTD ParternershipCommercial Properties 107,850,7001.37% KIR TukwilaCommercial Properties 96,834,5001.23% 77,505,9001.66% E Property Tax Dept.Commercial Properties 65,994,5001.41% Walton CWWA Eproperty Tax Incorporated (McElroy)Investment Property 58,335,9001.25% Jorgensen Forge CorporationSteel Manufacturer 37,422,4060.80% Sterling Realty OrganizationCommercial Properties 35,128,1000.75% Sea-Tuk Warehouse LLCFood Distribution 34,558,4000.74% TOTALS$ 1,735,114,58522.01%1,254,832,310$ 26.84% Notes: (a) In 2020 the total assessed property value in the City of Tukwila was $ 7,883,057,562 (b) In 2011 the total assessed property value in the City of Tukwila was $ 4,675,629,743 Source: King County Department of Assessments 148 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION 149 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 10 RETAIL SALES TAX COLLECTIONS BY SECTOR LAST TEN FISCAL YEARS page 1 of 2 Major Industry Sector2011201220132014 Construction and Contracting$ 1,390,952$ 961,125$ 1,212,594$ 829,073 Finance, Insurance & Real Estate 115,123 143,792 174,705 141,010 Manufacturing 232,737 390,252 386,964 322,189 Transportation, Communications & Utilities405,197 432,608 475,688 549,126 Wholesale - Durable/Non-durable Goods1,119,527 1,077,613 1,108,771 1,592,613 Retail Trade - General Merchandise 2,003,947 2,000,865 2,154,523 2,137,256 Retail Trade - Home Furnishings/Electronics1,771,083 1,537,143 1,405,274 1,431,965 Retail Trade - Miscellaneous 1,626,452 1,703,741 1,870,200 1,973,478 Retail Trade - Clothing & Accessories 2,037,554 2,082,930 2,070,198 2,013,796 Retail Trade - Restaurants 1,337,067 1,472,343 1,529,101 1,611,860 Retail Trade - Automotive/Gas 670,806 690,076 690,691 765,765 Retail Trade - Building Materials 487,620 516,861 565,734 600,610 Service Industries - Business 932,422 928,610 968,996 1,073,511 Service Industries - Hotels 459,606 487,977 502,721 562,130 Service Industries - Other 202,217 234,870 246,802 274,497 All Other Categories 553,493 381,693 525,133 468,547 Total Retail Sales Tax Collections$ 15,345,801$ 15,042,499$ 15,888,089$ 15,888,089 Notes: By State law, the City of Tukwila is prohibited from reporting individual sales tax payers. Sources: Tukwila Finance Department and Washington State Department of Revenue. 150 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION page 2 of 2 201520162017201820192020 $ 1,255,650$ 1,383,624$ 1,413,773$ 1,623,112$ 2,218,910$ 2,389,360 163,161 175,060 125,978 143,696 65,075 112,453 281,501 269,117 177,788 262,700 238,694 221,232 743,746 746,115 721,413 1,016,226 1,055,296 789,886 2,016,722 1,295,141 1,176,868 1,309,170 1,153,607 1,101,801 2,205,778 2,202,158 2,131,267 2,187,854 2,167,481 1,836,829 1,527,377 1,623,926 1,613,643 1,649,843 1,715,419 1,419,767 1,954,150 2,032,967 2,077,239 2,131,804 2,089,854 1,994,491 2,159,647 2,089,128 2,066,858 2,084,482 1,996,280 1,186,857 1,703,187 1,751,724 1,886,139 2,009,051 2,080,421 1,273,300 825,143 743,468 800,580 1,385,284 1,063,607 560,743 683,485 733,928 805,324 813,656 835,211 996,994 1,265,789 1,467,620 1,436,825 2,051,035 2,039,153 1,684,693 626,822 650,270 650,332 717,341 744,823 251,581 273,514 253,089 267,544 394,128 346,020 340,104 978,142 845,209 812,656 115,128 106,610 150,053 $ 18,663,814$ 18,262,544$ 18,164,227$ 19,894,510$ 19,916,461$ 16,310,144 151 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 11 SALES TAX RATE DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS 2011201220132014201520162017 (c)201820192020 BASIC SALES TAX RATES City of Tukwila0.84%0.84%0.84%0.84%0.84%0.84%0.84%0.84%0.84%0.84% Washington State6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50%6.50% King County0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25% Regional Transit Authority0.90%0.90%0.90%0.90%0.90%0.90%0.90%1.40%1.40%1.40% Metro0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90%0.90% Criminal Justice0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10% Department of Revenue 0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01% Administration Fee Total Basic Combined Sales Tax Rate9.50%9.50%9.50%9.50%9.50%9.50%9.50%10.00%10.00%10.00% SPECIAL SALES TAX RATES Restaurants (a)0.50%0.50%-------- Motor Vehicles (b)0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30% Notes: (a)King County Food & Beverage tax is in addition to the combined sales tax rate for restaurants, taverns and bars. The funds are used to finance the professional baseball stadium in Seattle. * on October 1, 2011 as taxes imposed to pay the construction bonds for the Seattle baseball stadium expired. NOTE: This tax expired (b)Effective July 1, 2003, all retail sales, leases and transfers of motor vehicles are subject to the additional sales tax of three-tenths of one percent (.003). The funds are used to finance transportation improvements. (c)Effective April 1, 2017, the Regional Transit Authority Tax increased five-tenths of one percent (.005), to one and four-tenths of one percent (.014). The tax will be used to expand and coordinate light-rail, commuter-rail, and express bus service, and improve access to transit facilities in King, Pierce, and Snohomish Counties. Source: Washington State Department of Revenue Local Sales and Use Tax Rates. 152 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION 153 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 12 RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Page 1 of 2 20112012201320142015 GOVERNMENTAL ACTIVITIES General Obligation Bonds (c)$ 25,752,60028,006,800$ 21,727,609$ 23,851,376$ 30,084,437$ Special Assessment (d) -- 6,687,500 6,687,500 6,082,500 Leases35,891 - - - - Total Governmental Activities28,042,691 25,752,600 28,415,109 30,538,876 36,166,937 BUSINESS-TYPE ACTIVITIES General Obligation Bonds - - - - - Revenue Bonds 3,980,000 3,540,000 3,075,000 2,580,000 1,742,527 Public Works Trust Fund Loans7,179,635 6,621,342 6,063,071 5,742,866 5,646,458 Total Business-Type Activities11,159,635 10,161,342 9,138,071 8,322,866 7,388,985 TOTAL PRIMARY GOVERNMENT(a) $ 35,913,94239,202,326$ 37,553,180$ 38,861,742$ 43,555,922$ Population (b) 19,486 19,611 19,76519,92019,300 Per Capita Personal Income (b)$ 66,04359,371$ 66,692$ 72,696$ 76,226$ Percentage of Personal Income3.39%2.77%2.85%2.68%2.96% Debt Per Capita2,012$ 1,831$ 1,900$ 1,951$ 2,257$ Notes: (a) Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements section. (b) Reference SCHEDULE 16, Demographic Statistics, for population and personal income data. (c)Includes amounts Due to Other Governments. (d) Special assessment debt was issued in 2013 for the Klickitat Urban Access Project. *** Data not available at time of publication. Sources: U.S. Census Bureau WA State Office of Financial Management City of Tukwila Finance Department 154 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION Page 2 of 2 20162017201820192020 $ 64,589,264$ 69,576,786$ 85,625,504$ 147,210,840$ 144,037,716 5,412,500 4,805,000 4,320,000 3,910,000 3,430,000 - - - - - 70,001,764 74,381,786 89,945,504 151,120,840 147,467,716 - - - - - 1,597,704 1,454,422 1,304,763 1,154,027 997,413 5,046,900 4,447,522 3,848,055 3,248,587 2,649,119 6,644,604 5,901,944 5,152,818 4,402,614 3,646,532 $ 76,646,368$ 80,283,729$ 95,098,322$ 155,523,454$ 151,114,248 19,54019,66019,80020,93021,360 $ 79,323$ 84,598 91,161 94,974*** 4.95%4.83%5.27%7.82%*** $ 3,923$ 4,084$ 4,803$ 7,431$ 7,075 155 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 13 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS Ratio of Net Net Special Less Debt Bonded Debt Bonded Fiscal Gross Bonded Assessment Service Net Bonded to Assessed Debt per YearPopulationAssessed ValueDebtDebt (a)Funds(b)DebtValueCapita 201119,4864,752,606,030$ 28,006,800$ $ 3,330,312-$ $ 24,676,4880.52%1,266$ 201219,6114,649,191,308 25,752,600 3,012,381- 22,740,2190.49%1,160 201319,7654,756,373,688 21,727,609 6,687,500 696,346 27,718,7630.58%1,402 201419,9205,054,078,747 23,851,376 6,687,500 1,687,497 28,851,3790.57%1,448 201519,3005,395,325,118 30,084,437 6,082,500 1,910,940 34,255,9970.63%1,775 201619,5405,763,649,829 64,589,264 5,412,500 1,962,497 68,039,2671.18%3,482 201719,6606,155,826,776 69,576,786 4,805,000 1,855,519 72,526,2671.18%3,689 201819,8006,685,919,176 85,625,504 4,320,000 1,903,729 88,041,7751.32%4,447 201920,9306,673,839,922 147,210,840 3,910,000 1,995,748 149,125,0922.23%7,125 202021,3607,883,057,562 144,037,716 3,430,000 1,353,344 146,114,3721.85%6,841 Note: (a) Special assessment debt was issued in 2013 for the Klickitat Urban Access Project. (b) Includes externally restricted fund balance available for debt service payment. Sources: U.S. Census Bureau State of Washington Office of Financial Management King County Department of Assessments Tukwila Finance Department 156 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 14 COMPUTATION OF DIRECT AND OVERLAPPING DEBT AS OF DECEMBER 31, 2020 Net GeneralPercentageEstimated Obligation DebtApplicable toApplicable to Tukwila(1) JurisdictionOutstandingTukwila Direct: City of Tukwila$ 145,693,277100.00%$ 145,693,277 Overlapping: King County 654,331,8541.20% 7,851,982 King County Library 55,215,6992.00% 1,104,314 Port of Seattle 311,175,0001.20% 3,734,100 Tukwila School District #406 78,949,55599.95% 78,910,080 Total Overlapping Debt: 1,099,672,108 91,600,476 Total Direct and Overlapping Debt:$ 1,245,365,385$ 237,293,754 Sources: King County Office of Finance King County Office of Assessments The percentage of overlapping debt applicable is estimated using taxable county assessed property values. (1) 157 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 15 LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Page 1 of 2 2011201220132014 Debt Limit$ 356,445,452$ 348,689,348$ 348,689,348$ 356,728,027 Total net debt applicable to limit 29,703,995 25,884,632 25,752,600 21,727,609 Legal debt margin$ 326,741,457$ 322,804,716$ 322,936,748$ 335,000,418 Total net debt applicable to the limit as a percentage of debt limit8.33%7.42%7.39%6.09% Assessed Value as of December 31, 20207,883,057,562$ Debt Limit (7.5% of assessed value) 591,229,317 Debt applicable to limit: General obligation bonds 139,183,203 Other long-term debt 452,046,114 Less: Amount set aside for repayment of general obligation debt and contracts payable Total net debt applicable to limit 139,183,203 Legal debt margin$ 452,046,114 Source: Tukwila Finance Department 158 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION Page 2 of 2 201520162017201820192020 $ 379,055,906$ 432,273,737$ 404,649,384$ 461,687,008$ 500,537,994$ 591,229,317 23,288,621 60,208,532 29,322,914 65,128,905 130,743,788 139,183,203 $ 355,767,285$ 372,065,205$ 375,326,470$ 396,558,104$ 369,794,206$ 452,046,114 6.14%13.93%7.25%14.11%26.12%23.54% 159 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 16 DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Per CapitaPersonalNumber ofNumber ofTukwila School Fiscal Personal Income (b)Single-FamilyMulti-FamilyDistrictUnemployment YearPopulationIncome (a)(in thousands)HomesUnitsEnrollmentRate (c) 201119,48659,371 1,156,903 3,8944,0942,8707.6% 201219,61166,043 1,295,169 3,8964,0942,9027.4% 201319,76566,692 1,318,167 3,9154,0942,8825.2% 201419,92072,696 1,448,104 3,9204,1032,9784.1% 201519,30076,226 1,471,162 3,9404,1032,9104.5% 201619,54079,323 1,549,971 3,9694,1032,8734.2% 201719,66084,598 1,663,197 3,9954,1032,9613.5% 201819,80091,161 1,804,988 4,0254,6673,0593.1% 201920,93094,974 1,987,8064,2354,7322,8622.3% 202021,360******4,2454,8162,7635.8% Notes: (a) Per Capita Personal Income data shown is for King County. Specific data for City of Tukwila is not available. (b) Personal Income estimates are calculated by multiplying Tukwila population by the Per Capita Personal Income estimates for Tukwila and are based on a revised methodology that provides for more accuracy. See also Footnote (a). (c) Unemployment rates are listed and estimated using the census-share method, reported as of December *** Data not available at time of publication. Sources: Tukwila Planning Division, Department of Community Development State of Washington Office of Financial Management Work Force Development Council of Seattle - King County (Unemployment Data) Tukwila School District #406 US Bureau of Economic Analysis 160 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 17 PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 2020 Full & Percentage of 2011 Full & Percentage of Part-Time Total City Part-Time Total City Name of Company/EmployerProduct or BusinessEmploymentEmployeesEmploymentEmployees RankRank Seneca Family of AgenciesHealthcare 11,550 4.98%0.00% Boeing Employee's Credit UnionCredit Union 21,136 3.65%6 1.16%466 SoundHealthcare 31,030 3.31%0.00% JJ & D Signs IncSpecialty Trade 41,002 3.22%0.00% Boeing CompanyAircraft Manufacturing 5815 16.29% 2.62% 1 6,544 Prime Now LLCElectronic Shopping 6781 2.51% 0.00%- Macy's West Stores LLCDepartment Stores 7496 1.59%8 0.81%327 Nordstrom, IncDepartment Stores 8495 1.59%0.00% Museum of FlightHistorical Site 9440 1.41%0.00% Costco Wholesale CorpWarehouse Club 10398 1.28%3 1.68%675 Group Health CooperativeData Ctr/Lab/Pharmacy/Mfg. 4.83% 2 1,940 King County MetroTransit Operating Base 4 1.65%664 Carlisle Interconnect TechnologiesWire/Cable Connectors 5 1.49%600 JC PenneyDepartment Stores 7 0.87%350 United Parcel ServicePostal Delivery Service 9 0.73%294 Red Dot CorporationHeater/Air Conditioning Equipment 10 0.71%286 Sub-total - Major Employers 8,143 12,146 All Other Employment 22,990 28,037 TOTAL EMPLOYMENT 31,133 40,183 Source: Tukwila Finance Department - Business Licenses 161 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 18 FULL TIME EQUIVALENT EMPLOYEE BY DEPARTMENT LAST TEN FISCAL YEARS 2011201220132014201520162017201820192020 DEPARTMENT (a) Administrative Services - 10.00 - - - - - - - 10.00 Council 8.008.00 8.00 8.00 8.00 8.008.00 8.00 8.008.00 (a) Mayor 15.7513.75 19.00 16.00 16.7520.00 16.00 13.00 10.0010.00 4.00 4.00 Human Resources 4.00 4.00 4.004.00 4.00 4.00 - - Finance 12.0012.00 12.00 12.00 12.0012.00 11.00 11.00 12.0012.00 Recreation 16.2516.25 16.75 17.25 16.2516.00 16.25 16.00 16.2516.50 Community Development 23.3822.63 21.00 23.75 22.1321.63 23.00 25.00 24.0022.00 Court 9.008.75 8.10 9.009.10 11.00 11.00 11.00 11.0010.25 Police 88.0083.00 93.00 93.75 87.5089.00 92.75 97.00 98.0084.00 Fire 67.0066.00 70.00 71.00 67.0067.00 72.00 73.00 66.0064.00 Information Technology 8.008.00 6.00 7.00 7.00 7.006.00 9.00 9.009.00 Public Works 30.0030.00 32.0031.00 32.00 31.00 27.00 27.00 27.2022.00 Parks 7.507.50 7.00 8.00 7.00 6.007.00 8.00 9.009.00 Street 12.0012.00 10.00 12.00 11.50 7.50 12.5011.50 11.5011.50 Water 7.007.00 6.00 7.00 7.50 7.007.00 7.50 7.507.40 Sewer 2.002.00 2.00 2.00 3.50 2.002.00 4.50 4.504.40 Golf 9.25 8.25 8.25 7.75 8.00 9.258.25 8.75 9.008.75 Surface Water 8.008.00 9.00 9.00 8.008.00 11.50 11.50 12.5012.50 Equipment Rental 5.005.00 5.00 5.00 3.00 5.005.00 5.00 5.005.00 (b) Metropolitan Park District Pool - 2.00 2.00 2.002.00 - - - - 323.13 346.50 TOTAL 3 32.383 34.48339.10 3 46.753 52.003 50.00314.75 Notes: Based on filled positions not budgeted positions. (a) Administrative Services includes Human Resources, Community Services and Engagement (previosuly reported in the Mayor's Office), and Admin Services Administration as of 2019 (b) On September 12, 2011, the Board of Commissioners approved the formation of the Tukwila Metropolitan Park District (MPD) Pool. For the comprehensive annual financial report years of 2011 and 2012, the MPD Pool was treated as a discretely presented component unit. In 2013 and 2014, the MPD presented as a blended component unit. Effective in 2015, the MPD is no longer a component unit. 162 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 19 OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS 2011201220132014201520162017201820192020 FUNCTION Police Number of Calls for Service30,27231,91631,35529,84032,94634,22933,12333,28832,46530,079 Fire Number of Responses4,6494,8444,6045,1565,5495,7545,8405,7345,7245,284 Total Fire Loss$1,601,596$675,847$343,495$2,738,080$1,926,944$2,821,016$1,142,486$527,687$742,362$3,187,074 Total Inspections(a) 1,360(a) 4,5413,3893,8502,3311,8601,951275 Parks and Recreation Class Participants64,04958,26052,31945,51468,97064,78283,03073,90678,43527,741 Community Ctr Admissions115,728116,136114,748132,397136,984141,218143,872143,160175,31124,804 Rounds of Golf Played45,94747,39247,75747,26751,01747,59543,56849,35750,56158,028 Pool Attendance**66,21369,33271,23379,537---- Street Miles79797979797979797979 Hours Maintaining 20,36022,92016,7678,6274,7164,8364,9365,1205,0283,764 Signalized Intersections59626262626466746874 Hours Maintaining 6,9257,0008,8153,0122,4082,1352,9862,4152,7011,810 Water Utility Services Total Customers2,1092,1172,1182,1262,1452,1602,1762,1852,1952,205 Total Gallons/Water(in thousands)625,976650,659645,982668,740697,147655,472697,210672,700618,194543,468 Sanitary Sewer Total Customers1,7101,7271,7421,7521,7751,7891,8081,8361,8451,860 Surface Water Total Customers5,2075,2125,2265,2395,2425,2495,2825,2865,2895,261 Licenses Business Licenses2,6112,0301,8772,2082,2201,9092,1202,0781,9762,132 Outside Contractors-(b) 1,0661,1321,2161,2159451,4371,3191,6882,081 Permits Building Permits389354374347277311348381371262 Mechanical Permits180191221216154192198169193165 Electrical Permits1,1581,1751,3371,2231,1191,1751,0471,0461,059875 Plumbing Permits187210167184140185165161176133 Public Works Permits106126155152163175136152153249 Libraries Number of Libraries2222222222 Total Circulation333,451332,509313,571284,667214,520184,492157,168180,155151,578125,609 Notes: (a) Due to information system and data program transitioning, this total does not include fire prevention staff inspections. (b) During 2012, Outside Contractors began their own business licensing category. Prior to this, outside contractors were consolidated with current year issued licenses. ** Pool facilities acquired from King County in 2003. Sources: Tukwila Departments, King County Library System 163 CITY OF TUKWILA: 2020 ACFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 20 CAPITAL ASSETS BY FUNCTION LAST TEN FISCAL YEARS 2011201220132014201520162017201820192020 FUNCTION General Government Total City Area (Square Miles)9.639.639.639.639.639.639.639.639.639.63 Public Safety Police: Number of Vehicle Units84888189899393808888 Fire: Number of Fire Stations444444444(a) 4 Number of Engines/Rescue Trucks/Ladders77799988118 Number of Medical Aid Vehicles1111111111 Number of Hazardous Materials Trailer Units2222222111 Transportation Paved Streets (lane miles)178188.2188.2188.2188.2188.2188.2188.2188.2188.2 Sidewalks (miles)5664.864.864.864.864.864.865.06566 Number of Traffic Signals59646363637476747474 Number of Streetlights Owned by Seattle City Light1,335(b) 901901902902902902908910910 Number of Streetlights Owned by Puget Sound Energy623(b) 187187187187187187187187187 Number of Streetlights Owned by City of Tukwila-(b)1,2101,2161,2241,2241,2241,2241,22412241224 Culture and Recreation Parks Acreage (c)162175.6175.6175.6190190191191191193 Number of Parks18191919191920202021 Golf Course Acreage6777.2677.2677.2677.2677.2677.2677.2677.2677.26 Maintained Trails (miles)15151515151515151513 Number of Playgrounds11111111111111111111 Swimming Pool ---------- Visitor Center1111111111 Community Center/Recreation Facilities1111111111 Number of Libraries2222222222 Water Water Distribution Mains (miles)41414149494949494949 Maximum Daily Capacity (millions of gallons)10101010101010101010 Number of Fire Hydrants (Owned by City of Tukwila)554576576576577577579579589601 Vehicles8889999888 Sewer Sanitary Sewers (miles)37373737373739393939 Maximum Daily Treatment Capacity (millions of gallons)6.336.336.336.336.336.336.336.336.336.33 Vehicles6654455333 Surface Water Storm Drains (miles)707070707170.597.497.497.497.4 Vehicles4448888998 Notes: (a) Reflects number of active stations. In 2020, a new Station 51 was opened and the former Station 51 has not yet been surplused. (b) Reflects changes in 2012 inventory and ownership of street lights due to the routing of more units into the City's meters. Also, additional street lights were added due to new construction for Southcenter Parkway Extension and Klickitat Projects. (c) Reflects the correct reporting of data for Culture and Recreation - Parks Acreage for the years 2001 through 2006. Parks acreage previously reported included golf course acreage. Sources: Various Departments-Tukwila 164