HomeMy WebLinkAbout2021 Comprehensive Annual Financial Report (CAFR)City of Tukwila, Washington
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City of Tukwila, Washington
VISION
The city of opportunity,
the community of choice
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MISSION
To provide superior services
that support a safe, inviting and
healthy environment for our
residents, businesses and guests.
VALUES
Caring
Professional
Responsive
STRATEGIC GOALS AND OBJECTIVES
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.
+ Use City efforts and investments to realize established visions for specific sub -areas.
+ Build and maintain public infrastructure that supports a healthy and attractive built
and natural environment.
A solid foundation for all Tukwila residents
+ Partner with organizations that help meet the basic needs of all residents.
+ Strive for excellent education, vocational supports, and personal growth opportunities
through effective partnerships and City services.
+ Encourage maintenance, improvements and diversity in the City's housing stock.
+ Work to eliminate systemic barriers and provide equitable access to opportunities and
services as outlined in the City's Equity Policy.
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.
+ Encourage development, maintenance, improvements, and diversity in the City's
stock of business space.
A high -performing and effective organization
+ Use Tukwila's Vision, Mission, and Strategic Plan to focus and prioritize City efforts.
+ Advance Tukwila's interests through participation in regional partnerships.
+ Continue to develop as an organization and support individual growth.
+ Ensure City facilities are safe, efficient and inviting to the public.
+ Ensure the long-term fiscal sustainability of the City.
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, 2021
Prepared by the City of Tukwila, Finance Department
Vicky Carlsen, Finance Director
Allan Ekberg, MAYOR
TUKWILA CITY COUNCIL
Thomas McLeod, Council President
Kathy Hougardy
Kate Kruller
Tosh Sharp
De'Sean Quinn
Cynthia Delostrinos Johnson
Mohamed Abdi
CITY OF TUKWILA: 2021 ACFR TABLE OF CONTENTS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Year Ended December 31, 2021
TABLE OF CONTENTS
Page
I. INTRODUCTORY SECTION
Administrative Organizational Structure, Principal Officials, and Council Committees 1
Letter of Transmittal 3
Certificate of Achievement 9
II. FINANCIAL SECTION
Auditor's Report 11
Management's Discussion and Analysis 15
Basic Financial Statements
Government -wide Financial Statements:
Statement of Net Position 29
Statement of Activities 30
Fund Financial Statements:
Balance Sheet — Governmental Funds 31
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 32
Statement of Revenues, Expenditures, and Changes in
Fund Balance — Governmental Funds 33
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 34
Statement of Net Position — Proprietary Funds 35
Statement of Revenues, Expenses, and Changes in
Net Position — Proprietary Funds 36
Statement of Cash Flows — Proprietary Funds 37
Statement of Fiduciary Net Position — Fiduciary Funds 39
Statement of Changes in Fiduciary Net Position — Fiduciary Funds 40
Notes to the Financial Statements 41
Required Supplemental Information:
Schedules of Revenues, Expenditures, and Changes in
Fund Balances — Budget and Actual
General Fund 98
Notes to the Required Supplementary Information 99
Schedule of Proportionate Share of the Net Pension Liability 100
Schedule of Employer Contributions 101
Firemen's Pension Trust Fund 102
Retiree Medical and Long -Term Care Benefits for LEOFF I Employees 104
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet — Non -Major Governmental Funds 107
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Governmental Funds 108
Combining Balance Sheet — Non -Major Special Revenue Funds 109
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Special Revenue Funds 110
CITY OF TUKWILA: 2021 ACFR TABLE OF CONTENTS
TABLE OF CONTENTS - continued
Page
Combining Balance Sheet — Non -Major Debt Service Funds 111
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Debt Service Funds 112
Combining Balance Sheet — Non -Major Capital Project Funds 113
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Non -Major Capital Project Funds 114
Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual:
Arterial Street Capital Project Fund 115
Local Improvement District #33 Debt Service Fund 116
Public Safety Plan Capital Project Fund 117
City Facilities Capital Project Fund 118
Hotel/Motel Special Revenue Fund 119
Drug Seizure Special Revenue Fund 120
Residential Street Capital Project Fund 121
Land & Park Acquisition Capital Project Fund 122
Facilities Urban Renewal Capital Project Fund 123
General Government Improvements Capital Project Fund 124
Fire Improvements Capital Project Fund 125
Special Assessment Bonds Guaranty Fund 126
Unlimited Tax General Obligation Debt Service Fund 127
Limited Tax General Obligation Debt Service Fund 128
Combining Statements of Net Position — Internal Service Funds 130
Combining Statement of Revenues, Expenses, and Changes in
Net Position — Internal Service Funds 131
Combining Statement of Cash Flows — Internal Service Funds 132
III. STATISTICAL SECTION
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
Property Tax Rates — Direct 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
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CITY OF TUKWILA: 2021 ACFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
ADMINISTRATIVE ORGANIZATIONAL STRUCTURE
AND PRINCIPAL OFFICIALS
RESIDENTS
CITY OF TUKWILA
CITY COUNCIL
J
MAYOR
Allan Ekberg
C TY
ADMINISTRATOR
David Cline
MUNICIPAL
COURT
Kimberly Walden
J
CITY ATTORNEY
Ogden Murphy
Wallace, PLLC
ADMINISTRATIVE
SERVICES
Rachel Bianchi
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COMMUNITY
DEVELOPMENT
Nora Gierloff
FINANCE
Vicky Carlsen
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PARKS & RECREATION
Tracy Gallaway
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FIRE
Jay Wittwer
COUNCIL COMMITTEES
COUNCIL PRESIDENT
Tom McLeod
FINANCE & GOVERNANCE COMMITTEE
De'Sean Quinn, Chairperson
Kate Kruller, Member
Cynthia Delostrinos-Johnson, Member
COMMUNITY SERVICES & SAFETY
Kathy Hougardy, Chairperson
Mohamed Abdi, Member
Tosh Sharp, Member
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PUBLIC WORKS
Hari Ponnekanti
POLICE
Eric Dreyer
TRANSPORTATION & INFRASTRUCTURE SERVICES
Kate Kruller, Chairperson
Mohamed Abdi, Member
Tosh Sharp, Member
PLANNING & COMMUNITY DEVELOPMENT
Cynthia Delostrinos-Johnson, Chairperson
Kathy Hougardy, Member
De'Sean Quinn, Member
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CITY OF TUKWILA: 2021 ACFR ADMINISTRATIVE ORGANIZATIONAL STRUCTURE, PRINCIPAL OFFICIALS
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City of Tukwila
6200 Southcenter Blvd, Tukwila, WA 98188 Allan Ekberg, Mayor
September 28, 2022
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 2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT
I am pleased to transmit the City of Tukwila's Annual Comprehensive Financial Report (ACFR) for the
year ended December 31, 2021. 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
generally accepted auditing standards by the State Auditor's Office, under the Revised Code of
Washington (RCW) 43.09.230.
The ACFR has several significant uses. First, it provides a general overview of the City's finances to the
general public and taxpayers. Second, it is used as a reference by bond buyers and rating agencies to
evaluate the City's fiscal stability and creditworthiness. Finally, the ACFR is a series of financial
statements that have been audited by the State Auditor's Office and provides assurances that assets are
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
the City's various funds. All disclosures necessary to enable the reader to gain the maximum
understanding of the City's financial activity have been included. The report has been prepared in
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.
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CITY OF TUKWILA: 2021 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 (Uniform Guidance). The audit is conducted by the State Auditor's
Office in conjunction with the City's annual independent audit. Information related to this single audit
includes the Schedule of Expenditures of Federal Awards, findings, and recommendations, if applicable,
and auditor's reports on internal control and compliance with applicable laws, regulations, contracts, and
agreements. The results of the City's annual single audit for the fiscal year ended December 31, 2021
provided no instances of material weaknesses in the internal control structure or significant violations of
applicable laws.
Management's Discussion and Analysis (MD&A) immediately follows the State Auditor's report and
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 21,978, making it the 53rd largest of 290 cities in the State
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
the City Administrator as the City's chief administrative officer responsible for carrying out the policies
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
adopted by the City Council. The biennial budget serves as the foundation for the City of Tukwila's
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, four debt service funds, and eight capital project
funds are included in the biennially appropriated operating budget and have budget to actual statements
presented for 2021.
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.
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CITY OF TUKWILA: 2021 ACFR LETTER OF TRANSMITTAL
LOCAL ECONOMY
Tukwila has a strong business community, largely due to its central location in the Puget Sound region.
Tukwila has excellent transportation with a location at the intersection of one of the State's busiest
interchanges (1-5 and 1-405), 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 Tukwila's.
Although some of our business sectors were hurt significantly, many others survived and thrived. Overall,
Tukwila continued to have a strong business economy and we anticipate it will return even stronger as
the pandemic subsides. The City's business sectors that were hurt the most were 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
businesses, many of which are owned by members of the city's diverse international community.
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 $2.23 billion dollars in taxable retail sales in 2021. The total retail sales tax
revenue amounted to $19.2 million in 2021, representing an increase of 17.6% from the $16.3 million
collected in the prior year. While this increase shows a significant increase over 2020 levels, the City is
still $736 thousand, or 3.7%, below the sales tax revenues collected in 2019 due to the continuing impacts
of COVID-19.
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.
These changes will ensure the City's policies are in alignment with the Government Finance Officers
Association's "Best Practices" and provide additional protection from future downturns in the economy.
The City's diversified revenue base is supported by an assessed valuation of $8.0 billion, which is an
increase of 1.6% from 2020, allowing the City to pursue a long-term capital investment program. The
City's 2021-2026 Capital Improvement Program anticipates approximately $118 million in general
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CITY OF TUKWILA: 2021 ACFR LETTER OF TRANSMITTAL
government capital projects, with only $7.39 million of that paid by City funding sources. These
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 2021.
These projects represent Council's commitment to meeting their five Strategic Goals and Objectives:
• 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 completed the seismic retrofit of the Boeing Access Road Bridge over Airport Way with funding
from the federal Local Bridge Program (formally known as BRAC). The Local Bridge Program funded
86.5% of design and 100% of construction. The City also approved and is funding 30% design of the
42nd Avenue South Bridge Replacement. This major bridge serves the BNSF railroad and 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 a "shovel
ready" project.
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 $2 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. With Surface Water Funds, the City completed
design of the East Marginal Way South Stormwater Outfalls Project with construction scheduled to
be completed in the first half of 2022. The East Marginal Way South Stormwater Outfalls Project
redirected drainage along East Marginal Way S from the closed Jorgensen Forge outfall to the City -
owned Boeing Z-line outfall. The project includes the installation of a new pump station and force
main, the installation of a water quality vault and bioswale to treat roadway runoff and lining
approximately 400 feet of the Boeing Z-line stormwater conveyance line to reduce the likelihood of
contaminated groundwater from entering the City's outfall and the Duwamish River.
The City repaired damaged concrete at Sewer Lift Station No. 12, and the entire wet well was
recoated. In addition, the control panel at Sewer Lift Station No. 4 was in poor condition and was located
deep below grade. The control panel was replaced and moved into an enclosure above grade. Electrical
and accessibility upgrades to the two sewer lift stations created a safer environment for the maintenance
crew. Both projects were funded entirely by the Sewer fund.
The City restored fish access to Riverton Creek and reestablished previously inaccessible rearing habitat
at the confluence with the Duwamish River. Construction included the removal of two culverts with flap
gates and associated fill, wall demolition, the installation of a new trail bridge, a new soldier pile wall,
structural tie -backs along the adjacent road, channel realignment, boulder, gravel and wood placement,
native plant restoration and art work. A grant from the Recreation and Conservation office was
instrumental in completing this project, along with grant funding from King County and utility revenue from
the City's Surface Water fund.
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CITY OF TUKWILA: 2021 ACFR LETTER OF TRANSMITTAL
The City continued its partnerships with Tukwila Village Development Associates (TVDA) and the King
County Library System (KCLS) to develop six acres of formerly 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 2017 KCLS opened the new
Tukwila Library. TVDA opened the first two mixed -use buildings in 2018, the third mixed -use building in
2020, and the fourth in 2021. Now that construction is complete, the project includes 398 apartments for
seniors, 6 live/work units, 13,000 square feet of office, 16,000 square feet of retail and restaurants, a
community meeting space with plaza, and the library. The entire Tukwila Village project cost is over $130
million.
The City has completed many projects associated with the Public Safety Plan, including the new Justice
Center and two new fire stations. The Plan continues to fund fire equipment and apparatus for the Tukwila
Fire Department. Phase one of the consolidated Public Works facility is nearly complete as of this writing,
and planning has begun for phase two. 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 annual
comprehensive financial report for the fiscal year that ended December 31, 2020. This was the 34th
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
comprehensive financial report continues to meet the Certificate of Achievement Program's requirements
and we are submitting it to the GFOA to determine its eligibility for another certificate.
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
also appreciated. Staff who had a direct role in preparing Tukwila's 2021 Annual Comprehensive
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
CITY OF TUKWILA: 2021 ACFR LETTER OF TRANSMITTAL
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CITY OF TUKWILA: 2021 ACFR LETTER OF TRANSMITTAL
G�9
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reportin2
Presented to
City of Tukwila
Washington
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2020
Executive DirectarCE.O
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CITY OF TUKWILA: 2021 ACFR LETTER OF TRANSMITTAL
10
Office of the Washington State Auditor
Pat McCarthy
INDEPENDENT AUDITOR'S REPORT ON THE AUDIT OF THE
FINANCIAL STATEMENTS
Mayor and City Council
City of Tukwila
Tukwila, Washington
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinions
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, each major fund and the aggregate remaining fund information of the City of Tukwila as
of and for the year then ended December 31, 2021, and the related notes to the financial statements,
which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business -type activities,
each major fund and the aggregate remaining fund information of the City of Tukwila, as of
December 31, 2021, and the respective changes in financial position and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Responsibilities of Management for the Financial Statements
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, and for the
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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.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as
a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
Performing an audit in accordance with GAAS and Government Auditing Standards includes the
following responsibilities:
• Exercise professional judgment and maintain professional skepticism throughout the audit;
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements;
• Obtain an understanding of internal control relevant to the audit 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 City's internal control. Accordingly, no such opinion is
expressed;
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements;
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City's ability to continue as a going concern for a reasonable
period of time; and
• Communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control -related
matters that we identified during the audit.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and required supplementary information listed in the table of contents be
presented to supplement the basic financial statements. Such information is the responsibility of
management and, 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 and comparing the information for
consistency with management's responses to our inquiries, the basic 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 Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The combining financial statements and schedules are
presented for the purposes of additional analysis and are not 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
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.
Other Information
The other information comprises Introductory and Statistical Section but does not include the basic
financial statements and our auditor's report thereon. Management is responsible for the other
information included in the financial statements. Our opinions on the basic financial statements do not
cover the other information, and we do not express an opinion or provide any assurance thereon.
In connection with the audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
financial statements, or the other information otherwise appears to be materially misstated. If, based on
the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
13
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING
STANDARDS
In accordance with Government Auditing Standards, we will also issue our report dated September 28,
2022, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and other
matters. That report will be issued under separate cover in the City's Single Audit Report. 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 Standards in considering the City's internal control over financial reporting and
compliance.
Sincerely,
Pat McCarthy, State Auditor
Olympia, WA
September 28, 2022
14
CITY OF TUKWILA: 2021 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended December 31, 2021
The management discussion and analysis section of the City of Tukwila's Annual Comprehensive Financial Report
provides an overview of the City's financial activities for the year ended December 31, 2021. The intent of this
discussion and analysis is to look at the City's financial performance as a whole. Readers should also review the
transmittal letter, and the basic financial statements to enhance their understanding of the City's financial
performance.
FINANCIAL HIGHLIGHTS
• As of December 31, 2021, the City of Tukwila's total assets and deferred outflows of resources exceeded
liabilities and deferred inflows of resources by $354.9 million. Of this amount, $59.3 million represents
unrestricted net position, which may be used to meet the government's ongoing obligations to citizens and
creditors.
• The City of Tukwila's total net position increased $18.8 million, or 5.6%. Governmental activities increased
$13.6 million due in part to generally improving revenues while expenditures remained relatively level.
Business -type activities increased $5.2 million which was primarily driven by the surface water fund. The
water and sewer funds also contributed to the increase, having rebounded from some of the pandemic
impacts of the prior year.
• At the close of the current fiscal year, the City of Tukwila's governmental funds reported combined fund
balances of $43.7 million, an increase of $3.7 million (9.2%). Approximately 53.0% ($23.2 million) of the
fund balance is available for spending at the City's discretion (unassigned fund balance).
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis is intended to serve as an introduction to the City of Tukwila's basic financial
statements. The City's basic financial 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
The government -wide financial statements provide both long-term and short-term information about the City's
overall financial status, in a manner similar to private -sector business.
The Statement of Net Position presents financial information on all the City's assets, liabilities, and deferred
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 presents information designed to show how the City's net position changed during the
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
15
CITY OF TUKWILA: 2021 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
earned but unused vacation leave are included in the statement of activities as revenue and expenses even though
no cash has changed hands.
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's business -type activities include water, sewer, and
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 -related legal requirements. The City's funds are divided
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 used to evaluate the City's near -term
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 impact of the City's current year
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's near -term financing decisions. Both the governmental fund balance sheet
and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
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
presented separately in the governmental funds' Balance Sheet and the governmental funds' Statement of
Revenues, Expenditures and Changes in Fund Balances. The remaining governmental funds are combined into a
single column labeled "Other Governmental Funds." Individual 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 funds' combining statements in this report.
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
16
CITY OF TUKWILA: 2021 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
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.
Enterprise funds report the same functions presented as business -type activities in the government -wide
statements, but in greater detail. The City's enterprise fund statements provide information on the City's three
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
City's various functions. The City uses internal service 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 not available to support the City of Tukwila's own programs. The accounting used for fiduciary funds is much
like that used for proprietary funds.
The City maintains two different types of fiduciary funds. The Firemen's Pension Trust Fund is used to report
resources held in trust for retirees and beneficiaries covered by the Firemen's Pension plan. The Custodial fund
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 schedule for the City's general fund and schedules of
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: 2021 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net position over time may serve as a useful indicator of a government's financial position. In the
case of the City of Tukwila, assets and deferred outflows of resources exceeded liabilities and deferred inflows of
resources by $354.9 million at the close of the most recent fiscal year. Total net position increased by $18.8 million
(5.6%) when compared to 2020.
CITY OF TUKWILA'S NET POSITION
(in thousands)
Governmental Activities
Business -type Activities Total
2021 2020 2021 2020 2021 2020
Current and other assets $111,417 $78,595 $31,401 $27,168 $142,817 $105,763
Capital assets, net of
accumulated depreciation 334,119 335,241 75,582 72,905 409,701 408,146
Total assets 445,536 413,836 106,982 100,074 552,518 513,909
Deferred Outflows of Resources
Long-term liabilities
Net pension liability
Total OPEB liabilities
Other liabilities
Total liabilities
Deferred Inflows of Resources
4,491 4,580 293 291 4,784 4,870
150,058 151,260 3,250 3,959 153,309 155,219
1,042 4,945 231 940 1,272 5,885
7,421 7,156 - 7,421 7,156
10,312 9,333 1,640 674 11,952 10,007
168,834 172,695 5,121 5,573 173,954 178,268
25,903 4,046 2,502 320 28,405 4,366
Net position
Net investment in
capital assets 197,840 201,887 72,559 69,239 270,399 271,126
Restricted 25,281 17,784 - - 25,281 17,784
Unrestricted 32,170 22,003 27,094 25,232 59,263 47,235
Total net position $255,290 $241,675 $99,653 $94,471 $354,943 $336,145
By far, the largest portion of the City's net position ($270.4 million or 76.2%) 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.
An additional portion of the City's net position ($25.3 million or 7.1 %) 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 $25.3 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 ($59.3 million, or 16.7%) is unrestricted
and may be used to meet the City's ongoing obligations to its citizens and creditors.
At the end of the current fiscal year, the City of Tukwila continued to report positive balances in all categories of net
position. The City's overall net position increased $18.8 million (5.6%) 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: 2021 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
CITY OF TUKWILA'S CHANGES IN NET POSITION
(in thousands)
Governmental Activities Business -type Activities Total
2021 2020 2021 2020 2021 2020
Revenues:
Program revenues
Charges for services $11,560 $13,735 $25,526 $23,720 $37,086 $37,456
Operating grants and contributions 1,797 1,567 62 122 1,858 1,689
Capital grants and contributions 1,290 1,416 1,710 1,405 3,000 2,821
General revenues
Property taxes 21,275 19,839 - 21,275 19,839
Sales and use taxes 20,148 17,102 - 20,148 17,102
Hotel/Motel taxes 540 292 - 540 292
Utility taxes 3,605 4,286 - 3,605 4,286
Interfund utility taxes 2,322 2,154 - 2,322 2,154
Business taxes 2,075 408 - 2,075 408
Excise taxes 7,401 3,324 7,401 3,324
Investment earnings 298 680 - 298 680
Miscellaneous 4,068 2,040 - 4,068 2,040
Total revenues 76,379 66,843 27,297 25,247 103,676 92,091
Expenses:
General government 12,227 10,793 12,227 10,793
Public safety 24,840 25,090 - 24,840 25,090
Transportation 12,760 12,757 - 12,760 12,757
Economic environment 5,063 4,427 - 5,063 4,427
Culture and recreation 4,814 5,523 - 4,814 5,523
Interest on long-term debt 4,443 4,927 - 4,443 4,927
Water/sewer 14,227 14,111 14,227 14,111
Foster golf course 4,327 4,991 4,327 4,991
Surface water 2,176 1,908 2,176 1,908
Total expenses 64,147 63,517 20,731 21,010 84,878 84,527
Increase (decrease) in net position before 12,231 3,326 6,566 4,237 18,798 7,564
transfers
Transfers 1,384 233 (1,384) (233)
Change in net position 13,615 3,560 5,182 4,004 18,798 7,564
Net position -beginning of period 241,675 238,115 94,471 90,467 336,145 328,582
Net position -end of period $255,290 $241,675 $99,653 $94,471 $354,943 $336,145
Governmental Activities
During the current fiscal year, net position for governmental activities increased $13.6 million (282.5%) from the
prior fiscal year for an ending balance of $255.3 million. The primary reasons for this are:
• Property taxes increased $1.4 million (7.2%) 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 fifth year the City received the
proceeds from that levy.
• Retail sales and use taxes totaled $20.1 million, which is an increase of $3.0 million or 17.8% compared
to the prior year. Revenue from excise taxes also saw an increase of $4.1 million or 122.7% compared to the
prior year. The increases are the result of strong retail shopping in the Southcenter shopping area.
• Excise taxes increased by $4.1 million (122.7%) from the prior year. Fueled by a hot real estate market,
Real estate excise taxes increased by nearly $2.4 million compared to the prior year. Additionally, gambling
taxes increased by $1.7 million compared to the amount collected in 2020. The pandemic related shutdowns
had significant impacts to gambling taxes and this increase indicates a partial recovery of this sector.
19
CITY OF TUKWILA: 2021 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
REVENUES BY SOURCE — GOVERNMENTAL ACTIVITIES
Other revenue
6%
Charges for services
15%
Other taxes Operating grants &
13% contributions
2%
Utility taxes
8%
Sales and use taxes
26%
Capital grants &
contributions
2%
Property taxes
28%
PROGRAM REVENUES AND EXPENSES — GOVERNMENTAL ACTIVITIES
$30,000,000
• Program revenues
$27,000,000
• Expenses
$24,000,000
$21,000,000
$18,000,000
$15,000,000
$12,000,000
$9,000,000
$6,000,000
$3,000,000 ■ I
-,$0
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20
CITY OF TUKWILA: 2021 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
Business -Type Activities
For the City of Tukwila's business -type activities, the results for the current fiscal year were positive in that overall
net position increased by $5.2 million (5.5%) to reach an ending balance of $99.7 million. The overall growth is
attributable to the following factors:
• In the Water and Sewer Utilities, operating revenues increased $615 thousand and $918 thousand,
respectively, while operating expenses stayed relatively the same as the prior year. This resulted in an
operating income in the Water and Sewer Utilities of $580 thousand and $1.4 million, respectively. These utility
funds were impacted by the effects of the pandemic and related business closures in 2020 but have returned
to near expected levels.
• In the Surface Water Utility, total net position increased $3.7 million (8.3%) primarily due to a 2.0% 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 $4.8 million, an increase of $2.3 million (89%) from
2020. Operating revenue increased in 2021 by $2.0 million, accompanied by a decrease in overall operating
expenses of $275 thousand which was primarily attributable to the Surface Water Utility.
• Of the $99.7 million total net position, $27.1 million (27.2%) 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
Foster golf
course
6%
Surface water
48%
Water
22%
Sewer
24%
The majority of net position in the City's enterprise funds relate to capital asset 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: 2021 ACFR
MANAGEMENT'S DISCUSSION AND ANALYSIS
COMPARISON OF TOTAL NET POSITION TO SPENDABLE NET POSITION -BUSINESS-TYPE FUNDS
$60,000,000
$50, 000, 000
$40, 000, 000
$30,000,000
$20,000,000
$10,000,000
• Spenda ble/Unrst Net Position
■ Total Net Position
Surface water
The following chart depicts the revenues and expenses for business -type funds:
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
so
Foster golf course
BUSINESS -TYPE ACTIVITY REVENUES & EXPENSES
(before Capital Contributions & Transfers)
Water
1
■ Revenues
• Expenses
I I
Sewer Surface Water Foster Golf Course
22
CITY OF TUKWILA: 2021 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
FINANCIAL ANALYSIS OF GOVERNMENTAL FUNDS
The purpose of the City's governmental funds is to report on near -term inflows, outflows, and balances of spendable
resources. This information helps determine the City's financial requirements in the near future. Specifically,
unassigned fund balance may serve as a useful measure of a government's net resources available for discretionary
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.
As of December 31, 2021, the City's governmental funds had combined fund balances of $43.7 million, an increase
of $3.7 million (9.2%). The increase is primarily due to revenues rebounding from the prior year declines along with
continued reductions to certain expenditures.
The change in fund balance for governmental funds compared to 2020 is as follows:
• General Fund $4,319,353
• Arterial Street Fund $2,262,997
• Local Improvement District #33 ($20,763)
• Public Safety Plan ($3,086,590)
• City Facilities ($1,500,818)
• Other Governmental Funds $1,725,057
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 2021, the
general fund had a fund balance of $23.7 million, with $23.2 million (97.6%) of the balance classified as unassigned
and available to meet the City's general obligations. Unassigned fund balance increased from $18.5 million in 2020
to $23.2 million in 2021 due primarily to improvements in revenues combined with reductions in expenditures related
to vacant positions.
The Arterial Street Fund increase in fund balance is primarily related to an increase in revenues from real estate
excise taxes and solid waste taxes. In addition, the fund balance increased as a result of budgeted expenditures
for the West Valley Highway project being carried forward to 2022.
The City Facilities fund balance decrease is due to capital outlays of $6.1 million, which is primarily related to the
first phase of improvements at the new Public Works shops project. The City issued bonds in 2021 for the general
fund portion of these phase 1 improvements.
23
CITY OF TUKWILA: 2021 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
The following chart shows the relative fund balances for governmental funds:
GOVERNMENTAL FUNDS — FUND BALANCES
Local Improvement Districa Public Safety Plan fund
#33... 0%
1 City Facilities
Arterial street fund
9%
General fund
54%
8%
Capital project funds
20%
Special revenue funds
5%
Debt service funds
3%
The general fund revenue increased a total of $645 thousand, which is combined from the following sources:
GENERAL FUND REVENUE INCREASES/DECREASES — BY SOURCE
$2,000,000
$1,500,000
Taxes
$914,832
$1,000,000
$500,000
$0
($500,000)
($1,000,000)
($1,500,000)
1
Intergovernmental
$1,540,459
•
Licenses and permits
($213,237)
Charges for services
($1,183,389)
Fines and forfeitures
$56,641
Miscellaneous
($123,444)
Investment earnings
($346,489)
24
CITY OF TUKWILA: 2021 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
FINANCIAL ANALYSIS OF PROPRIETARY FUNDS
The City's proprietary funds provide the same type of information as found in the government -wide financial
statements, but in greater detail. Factors affecting the finances of the City's proprietary funds have already been
addressed in the discussion of the City's business -type activities.
Unrestricted net position in business -type activities ended 2021 at $27.1 million, an increase of almost $1.9 million
(7.4%) from 2020.
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 2021, the City continued to face the financial challenges that resulted due to the COVID-19 pandemic. The 2021-
2022 biennial budget included many of the same expense reductions that had been implemented in 2020, with
frozen positions and reduced department budgets for supplies and services. In March 2021, the federal government
passed the American Rescue Plan Act (ARPA). The City received $5.68 million in ARPA which allowed the City to
bring back some services that had been reduced or eliminated due to the reduced revenues caused by the
pandemic.
The following is a summary of significant budget amendments that occurred in 2021:
• The City received ARPA funds and allocated $905 thousand to 2021 to bring back programs and positions that
had been frozen or eliminated due to the pandemic.
• A school zone speed camera pilot program was added, which assumes the revenues generated by the program
will offset program costs. Revenues received above program costs are dedicated to pedestrian safety in school
zones.
• Budget for the fire department was adjusted to account for increased overtime usage. Overtime increased in
2021 due to significant reimbursable overtime, staffing a COVID testing site, and returning minimum staffing to
13. Minimum staffing had been reduced to 12 in 2020 due to lower call volume as a result of businesses being
shuttered for several weeks in mid-2020 due to COVID-19.
• Sales tax budget was increased to reflect revised projections.
• Streamlined sales tax mitigation payments budget increased after the State of Washington returned this funding
source to cities affected by destination -based sales tax regulation. The State had previously discontinued this
funding source when revenues declined sharply due to the pandemic.
25
CITY OF TUKWILA: 2021 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
CAPITAL ASSETS
The City's investment in capital assets for both its governmental and business -type activities as of December 31,
2021 totaled $409.7 million (net of accumulated depreciation), an increase of $1.6 million (0.4%) from 2020. 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 Activities
Business -Type Activities Total
2021 2020 2021 2020 2021 2020
Land $ 51,719,374 51,719,374 $ 2,346,230 2,346,230 $ 54,065,604 54,065,604
Buildings & Structures 90,407,904 69,894,819 8,736,916 6,820,055 99,144,819 76,714,875
Other Improvements 6,562,979 7,511,071 60,221,273 60,293,924 66,784,252 67,804,995
Machinery and Equipment 9,341,062 10,393,612 890,481 750,246 10,231,544 11,143,858
Infrastructure 140,235,739 144,600,533 - 140,235,739 144,600,533
Construction in Progress 35,851,859 51,121,232 3,386,924 2,695,009 39,238,783 53,816,240
Total $ 334,118,916 335,240,641 $ 75,581,825 72,905,464 $409,700,741 408,146,105
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: The third major construction project within the Public Safety Plan, Fire Station 52, was
completed and placed in service during the year. Additional amounts were added for the Justice Center
($853 thousand) and Fire Station 51 ($106 thousand) after these projects were placed in service in the
prior year.
Residential and Arterial Street Funds: Seismic upgrades were completed for the Boeing Access Road
Bridge over Airport Way, adding $2.4 million to infrastructure. Work continues on the replacement of the
42nd Ave Bridge, with $451 thousand in costs added to construction in progress.
Public Works Shop and City Facilities: Improvements continued at the future consolidated Public Works
Shop, with $5.7 million added to Construction in Progress during the year. Improvements at the Minkler
building continue as well, with the first phase of improvements placed in service during the year. Planning
began for the future Teen/Senior Intergenerational center, which added $321 thousand to construction in
progress.
Fleet Equipment: The fleet fund added $762 thousand in new vehicles and equipment and disposed of
$928 thousand in surplus & retired fleet assets.
Construction in Progress: Construction in progress decreased by $15.3 million compared to the prior year.
While current year construction in progress additions were $6.9 million, $22.2 million of completed projects
were placed in service and capitalized to buildings, infrastructure and other improvements. The decrease
is primarily attributed to the completion of Fire Station 52 from the Public Safety Plan projects.
Business Type Activities:
- Utility improvements: Current year capital expenditures totaled $4.8 million, primarily from the surface water
fund accounted ($3.4 million) and the sewer fund ($1.2 million). The surface water fund completed and
placed in service over $3.2 million comprised of the Riverton flapgate removal and small drainage projects.
The sewer fund also completed and placed into service, $1.2 million of capital assets for lift station upgrades
and sewer rehab projects.
- Golf Course: The golf course added $235 thousand in capital assets which consisted of new course
maintenance tools and equipment.
- Construction in Progress increased $692 thousand compared to the prior year, with $4.8 million in additions
to CIP and $4.1 million in prior year projects placed in service.
26
CITY OF TUKWILA: 2021 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
LONG-TERM DEBT
The City had total long-term obligations outstanding of $149.2 million at the end of the current fiscal year. Of this
amount, $117.9 million is general obligation bonds which is backed by the full faith and credit of the City, $10.6
million of general obligation direct placement/borrowings, $840 thousand is revenue bonds for the water/sewer and
surface water utilities, $2.1 million in public works trust fund loans, $4.6 million due to other governments, $10.2
million premium on bonds, and the remaining $3.1 million is special assessment bonds which were issued to
improve access to the City's urban center.
The City currently maintains a rating of "AA+" with Standard and Poor's and Fitch's Investor Service, and "Aa3" with
Moody's for its general obligation debt.
The following schedule summarizes the City's long-term debt:
Governmental Activities
Business -type Activities
Total
2021
2020
2021
2020
2021
2020
General obligation bonds
$ 117,890,000
$ 123,916,000
$ -
$ -
$ 117,890,000
$ 123,916,000
General obligation- direct placement/borrowings
10,611,266
4,486,326
-
-
10,611,266
4,486,326
Revenue bonds
-
-
840,235
997,413
840,235
997,413
Premium on bonds issued
10,163,810
10,889,618
-
-
10,163,810
10,889,618
Special assessment bonds
3,060,000
3,430,000
-
-
3,060,000
3,430,000
Public Works Trust Fund Loans
-
-
2,075,702
2,649,118
2,075,702
2,649,118
Due to other governments
4,568,396
4,745,772
-
-
4,568,396
4,745,772
$ 146,293,472
$ 147,467,716
$ 2,915,937
$ 3,646,531
$ 149,209,409
$ 151,114,247
More detailed information on long-term debt, including debt limitations, is provided in Note 10 to the financial
statements.
27
CITY OF TUKWILA: 2021 ACFR MANAGEMENT'S DISCUSSION AND ANALYSIS
ECONOMIC FACTORS AND THE UPCOMING BIENNIAL BUDGET
Tukwila has a strong business community, largely due to its central location in the Puget Sound region. Tukwila is
located at the intersection of one of the State's busiest interchanges (1-5 and 1-405) and has excellent public
transportation including a commuter train, 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, the Ports of
Seattle and Tacoma, and downtown Seattle.
Tukwila has a very strong retail sector. Anchored by Westfield Southcenter, which is the largest mall in the Pacific
Northwest, the City has become a retail, restaurant, and entertainment hub. The City also has a high concentration
of light industrial jobs across many sectors and particularly aerospace. It is also home to hundreds of small
businesses, many of which are owned by members of Tukwila's diverse international community.
The pandemic that started in early 2020 affected many economies around the world, including Tukwila's. The City's
sales tax revenue in 2020 ended $3.6 million, or 18% below 2019's pre -pandemic level. Approximately 80% of the
reduction came from general retail, arts & entertainment, accommodations, food services, and drinking
establishments. The City also saw a significant decrease in the hospitality sector through lodging taxes which ended
below 2019 levels by 64% in 2020 and 36% in 2021. Fortunately, the economy has been recovering and 2021 was
much improved in other areas. Retail trade in 2021 was 9.6% above pre -pandemic levels. The hospitality sector
(arts & entertainment, accommodations, food services, and drinking) were still almost 20% below pre -pandemic
levels largely due to the continued pandemic effects on business and international travel. Construction in 2021 was
almost 25% below pre -pandemic levels which may be due to normal volatility. Excluding construction, total sales
tax in 2021 was just 1 % below pre -pandemic levels.
The pandemic is not over and the City anticipates it will continue to hinder business and international travel but in
general Tukwila's economy has nearly recovered from the pandemic. The regional economy is strong with many
highly successful companies continuing to expand and hire. We anticipate Tukwila's economy following the region
with the most significant risks being inflation and a national recession."
Although the economy continues to improve from the effects of the COVID-19 pandemic, the City still faces some
challenges entering the 2023-2024 biennium. Federal, state and county governments continue to devolve services
down to cities and there is no evidence that the trajectory will slow or change anytime soon. Additionally, inflation
is the highest it has been in the past four decades. This high inflation will impact all expenditure types throughout
the City which will cause additional pressures on the limited resources. At the same time, the City's revenues are
still recovering from the effects of the pandemic and are not rising at the same pace as expenditures. It is with
these challenges in mind that the City will vigilantly strive to monitor and control expenses in order to remain within
the City's means.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Tukwila's finances for readers with an
interest in the City's finances. Questions concerning this 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: 2021 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET POSITION
DECEMBER 31, 2021
Governmental Business -Type
Activities Activities
Total
ASSETS:
Cash and cash equivalents $ 41,414,610 $ 24,372,520 $ 65,787,130
Investments 6,138,506 1,978,606 8,117,112
Taxes receivable 7,440,563 7,440,563
Other receivables 557,217 1,846,655 2,403,871
Due from other governmental units 294,259 533,780 828,039
Inventory of materials and supplies 27,494 60,542 88,036
Restricted cash and cash equivalents 1,093,420 175,522 1,268,942
Notes receivable -Current 239,879 239,879
Notes receivable - Noncurrent 2,731,579 44,516 2,776,095
Real property held for resale 2,007,410 2,007,410
Investment in joint ventures 10,988,817 10,988,817
Non -depreciable capital assets 87,571,233 5,733,154 93,304,387
Depreciable capital assets (net of accumulated depreciation) 246,547,684 69,848,671 316,396,354
Net Pension asset 38,482,856 2,388,379 40,871,235
Total Assets 445,535,526 106,982,345 552,517,871
DEFERRED OUTFLOWS OF RESOURCES:
Deferred loss on refunding 20,863 20,863
Deferred outflow s related to OPEB 379,240 379,240
Deferred outflow s related to pensions 4,112,126 272,112 4,384,238
Total Deferred Outflows Of Resources 4,491,366 292,975 4,784,341
LIABILITIES:
Accounts payable
Accrued wages and benefits payable
Accrued interest payable
Unearned revenue
Total OPEB liability -current
Other liabilities
IBNR reserve
Bonds and other debt payable
Due w ithin one year
Due in more than one year
Net pension liability
Total OPEB liability -non current
2,942,569
1,650,525
568,437
2,171,776
477,394
1,551,992
949,500
9,580,395
140,478,070
1,041,894
7,421,005
1,149,966 4,092,536
154,420 1,804,945
7,617 576,053
8,015 2,179,791
477,394
319,615 1,871,606
949,500
794,284
2,456,072
230,571
10,374,679
142,934,142
1,272,465
7,421,005
Total Liabilities 168,833,558 5,120,559 173,954,117
DEFERRED INFLOWS OF RESOURCES:
Deferred inflows related to pensions
Business taxes received in advance
Deferred revenue -other
Deferred revenue -developer agreements
Total Deferred Inflows Of Resources
NET POSITION:
Net investment in capital assets
Restricted for:
Debt service
Tourism promotion
Arterial street improvements
Drug investigation and enforcement
Land and park acquisition, development
Pension Asset
Public safety facilities
Unrestricted net position
25,461,659
224,261
206,076
11,490
2,501,690
27,963,349
224,261
206,076
11,490
25,903,486 2,501,690 28,405,176
197,839,607 72,559,196 270,398,803
1,653,564 1,653,564
1,742,366 1,742,366
1,000,809 1,000,809
567,273 567,273
2,267,734 2,267,734
17,998,969 17,998,969
50,000 50,000
32,169,525 27,093,876 59,263,401
Total Net Position $ 255,289,848 $ 99,653,072 $ 354,942,919
The notes to the financial statements are an integral part of this statement.
29
CITY OF TUKWILA: 2021 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2021
Primary Government
--Expenses--
Program revenues -Net (Expense) Revenue and Changes in Net Fbsition-
Charges Operating Capital Grants Governmental Business -Type
For Services Grants and and Activities Activities
Contributions Contributions
Total
FUNCTIONS / PROGRAMS:
PRIMARY GOV ERNM ENT
Governmental activities
General government $ 12,227,100 $ 6,342,118 $ 1,114,422 $ $ (4,770,560) $ $ (4,770,560)
Rublicsafety 24,840,036 1,972,485 464,181 (22,403,371) (22,403,371)
Transportation 12,760,187 371,646 - 1,289,853 (11,098,689) (11,098,689)
Natural and economic environment 5,062,727 2,416,865 143,740 (2,502,122) (2,502,122)
Culture and recreation 4,814,194 456,787 74,359 (4,283,048) (4,283,048)
Interest on long-term debt 4,443,170 - (4,443,170) (4,443,170)
Total Governmental Activities 64,147,415 11,559,900 1,796,702 1,289,853 (49,500,960) (49,500,960)
BUSINESS -TYPE ACTIVITIES:
Water 6,209,411 6,804,724 67,865 663,178 663,178
Sewer 8,017,939 9,422,615 163,200 - 1,567,876 1,567,876
Surfacewater 4,327,427 7,029,502 61,630 1,478,612 - 4,242,317 4,242,317
Foster golf course 2,175,885 2,268,908 - 93,023 93,023
Total Business -Type Activities 20,730,662 25,525,749 61,630 1,709,678 6,566,394 6,566,394
Total Primary Government $ 84,878,077 $ 37,085,649 $ 1,858,331 $ 2,999,531 $ (49,500,960) $ 6,566,394 $ (42,934,566)
General Revenues:
Taxes
Property taxes $ 21,275,135 $ $ 21,275,135
Retail sales and use taxes 20,148,103 20,148,103
IioteVmotel taxes 540,329 540,329
Utility taxes 3,605,314 3,605,314
Interfund utility taxes 2,322,420 2,322,420
Business taxes 2,074,857 2,074,857
Excise Taxes 7,400,723 7,400,723
Unrestricted investment earning 297,953 297,953
Miscellaneous 4,067,501 4,067,501
Total General Revenues
61,732,334 61,732,334
Excess of revenues over expenses 12,231,374 6,566,394 18,797,768
before transfers
Transfers 1,383,944 (1,383,944)
Change in net position 13,615,317 5,182,451 18,797,768
Net position - beginning
241,674,530 94,470,621 336,145,151
Net position -ending $ 255,289,848 $ 99,653,072 $ 354,942,919
The notes to the financial statements are an integral part of this statement.
30
CITY OF TUKWILA: 2021 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2021
Local Riblic Other Total
General Arterial Improvement Safety City Governmental Governmental
Fund Street District #33 Ran Facilities Funds Funds
ASSETS:
Cash and cash equivalents $ 15,741,344 $ 2,257,520 $ 601,809 $ 243,665 $ 4,643,921 $ 10,721,270 $ 34,209,529
Investments 6,138,506 6,138,506
Taxes receivable 6,401,584 553,932 268,162 216,885 7,440,563
Other receivables 533,127 - - - 533,127
Due from other governmental units 123,505 160,074 10,680 294,259
Restricted assets:
Cash and cash equivalents
Special assessment receivable
Notes receivable -Current 239,879
Notes receivable - Noncurrent 50,355
Real property held for resale -
1,000,809
2,631,224
50,000
92,611 1,093,420
2,631,224
239,879
100,355
2,007,410 2,007,410
Total Assets $ 29,228,301 $ 3,972,336 $ 3,233,033 $ 561,827 $ 4,643,921 $ 13,048,856 $ 54,688,273
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES:
Liabilities:
Accounts payable 713,470 271,295 433,854 1,143,876 330,452 2,892,948
Accrued wages & benefits 1,613,137 12,321 - 4,354 1,629,812
Unearned revenue 2,165,243 6,533 - - - 2,171,776
Other liabilities 389,190 - 300 544,049 933,539
Total Liabilities 4,881,040 290,149 - 434,154 1,143,876 878,855 7,628,075
Deferred inflow of resources
Unavailable revenue -special assessment
Business taxes received in advance
Unavailable revenue -property tax, other
Unavailable revenue -developer agreement
Total Deferred Inflow Of Resources
2,631,224
224,261
381,477
50,000
2,631,224
- 224,261
57,251 438,728
- 50,000
605,738 - 2,631,224 50,000 57,251 3,344,213
Fund balance:
Nonspendable 70,139 - 70,139
Restricted:
HoteVmotel tax - - 1,742,366 1,742,366
Arterial street capital improvements - 1,000,809 - - 1,000,809
Drug investigation and enforcement - 567,273 567,273
Park and land acquisition/development - - - - 2,267,734 2,267,734
Debt service guraranty fund - - 738,462 738,462
Debt service public safety plan - - 313,293 313,293
Local Improvement District - 601,809 601,809
Assigned:
Residential street improvements 707,806 707,806
Arterial street improvements 2,681,378 - - 2,681,378
Land & park acquisition - 365,622 365,622
Facilities & urban renew al - - - 4,469,671 4,469,671
General government improvements - 678,033 678,033
Public safety facilities - - 77,672 - 77,672
City facilities - 3,500,044 - 3,500,044
1% Arts - - - 262,490 262,490
Technology 397,294 - - 397,294
Shoreline Restoration 93,849 - - - - - 93,849
Unassigned 23,180,241 23,180,241
Total Fund Balance 23,741,523
3,682,187 601,809
77,672 3,500,044 12,112,750 43,715,985
Total Liabilities, Deferred Inflows And Fund Balances $ 29,228,301 $ 3,972,336 $ 3,233,033 $ 561,827 $ 4,643,921 $ 13,048,856 $ 54,688,273
The notes to the financial statements are an integral part of this statement.
31
CITY OF TUKWILA: 2021 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2021
Total
Governmental
Funds
Total governmental fund balances as reported on this statement $ 43,715,985
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds.
Non -depreciable assets
Depreciable assets (net)
Internal service fund assets
The net pension asset is not an available resource and, therefore, is not reported in the funds.
Deferred outflow of pension costs
Deferred outflow of OPEB
Deferred inflow of pension contributions
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. 10,988,817
87,571,233
239,393,674
7,154,009
334,118,916
38,482,856
4,112,126
379,240
(25,461,659) (20,970,294)
Revenue that was not collected within the recognition period and therefore was not available to pay current liabilities:
Unavailable revenue reported for propertytaxand other receivables 232,652
Unavailable revenue reported for developer agreement 38,510
Unavailable revenue reported for special assessment 2,631,224 2,902,386
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 (9,580,395)
Long term liabilities due in more than one year (141,495,152)
Unfunded other post employment benefits (7,898,399)
Accrued interest payable (568,437)
Deferred outflow on refunding - (159,542,382)
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.
5,593,564
Net Position Of Government Activities As Reported On The Statement Of Net Position $ 255,289,848
The notes to the financial statements are an integral part of this statement.
32
CITY OF TUKWILA: 2021 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, 2021
Local Public Other Total
General Arterial Inprovement Safety City Governmental Governmental
Fund Street District #33 Ran Facilities Funds Funds
REVENUES:
Taxes $ 48,106,884 $ 3,051,933 $ - $ 567,617 $ - $ 5,555,059 $ 57,281,494
Licenses and permits 5,341,662 - - 5,341,662
Intergovernmental 5,815,741 1,411,328 - 376,568 7,603,637
Charges for services 2,560,452 251,088 300,000 - 101,963 3,213,504
Fines and forfeitures 302,358 302,358
Investment earnings 113,159 933 151,060 1,378 5,384 26,039 297,953
Special assessments - 375,889 - - 375,889
Miscellaneous 227,987 104,100 - 300,000 632,087
Total Revenues 62,468,243 4,819,382 526,949 868,995 5,384 6,359,629 75,048,583
EXPENDITURES:
Current:
General government
Public safety
Transportation
Natural and economic environment
Culture and recreation
Debt service:
Principal
Interest
Capital outlay
Total Expenditures
Excess (deficiency)of revenues
Over (Under) Expenditures
8,320,068
31,972,349
4,577,425
5,372,912
4,219,045
1,844,895
370,000
177,713
136,506 1,893,340
464,692
2,184,052 6,106,202
135,315 8,455,383
76,759 32,513,800
189,781 6,612,101
544,302 5,917,214
394,989 4,614,034
2,630,560 3,000,560
4,919,842 5,097,555
61,380 10,381,479
54,598,304
3,738,235 547,713
2,648,744 6,106,202
8,952,929 76,592,127
7,869,939 1,081,147 (20,763) (1,779,749) (6,100,818) (2,593,300) (1,543,543)
OTHER FINANCING SOURCES (USES):
Transfers in 1,855,001 1,666,850
Transfers out (5,405,587) (485,000)
Issuance of refunding bonds
Payment of refunded debt
Gain/(loss) on sale of assets held for resale
100,130 1,750,000 4,532,429 9,904,409
(1,668,817) - (961,062) (8,520,466)
2,850,000 3,870,500 6,720,500
- (3,991,000) (3,991,000)
261,845 867,500 1,129,345
Total Other Financing Sources And Uses (3,550,587) 1,181,850
(1,306,842) 4,600,000 4,318,367 5,242,789
Net change in fund balances 4,319,353 2,262,997 (20,763) (3,086,590) (1,500,818) 1,725,067 3,699,245
Fund balances - Beginning 19,422,170 1,419,190 622,572 3,164,263 5,000,862 10,387,683 40,016,739
Fund Balances - Ending $ 23,741,523 $ 3,682,187 $ 601,809 $ 77,672 $ 3,500,044 $ 12,112,750 $ 43,715,985
The notes to the financial statements are an integral part of this statement.
33
CITY OF TUKWILA: 2021 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, 2021
Net change in fund balances per the Statement of Revenues, Expenditures, and Changes in Fund Balances
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 Outlay
Depreciation Expense (excludes internal service fund depreciation which is reflected in internal service
fund change in net position listed below)
Excess of Capital Outlay Over Depreciation Expense
The net effect of various transactions involving the Citys pension plans are:
10,381,479
(10,845,557)
Reduction in pension liabilityand expense 8,831,468
Increase in pension contribution revenue 524,664
Reduction in the Fireman's Pension liability and egense 31,612
The City has equity interests in two joint ventures. The equity interests for the provision of governmental
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 retirement 6,991,560
Amortization expense
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
$ 3,699,245
(464,078)
9,387,744
468,856
725,808 7,717,369
(6,543,124)
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. 165,770
Because some revenues will not be collected for several months after the Citys fiscal year ends,
they are not considered "available" revenues in the government funds. Changes this year are for:
Miscellaneous receivables 89,322
Developer agreements (300,000)
Property taxes 85,387
Special assessment (375,889)
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 23,348
Amortization of deferred outflow on bond refunding (94,771)
Increase in compensated absences 27,539
Change in OPEB Liability (271,400)
Total additional expense (increase) decrease
(501,180)
(315,284)
Change In Net Position On The Statement Of Activities $ 13,615,317
The notes to the financial statements are an integral part of this statement.
34
CITY OF TUKWILA: 2021 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2021
Governmental
Foster Surface Total Activities
Water Sewer Golf Water Enterprise Internal Svc
Utility Utility Course Utility Funds Funds
ASSETS:
Current assets
Cash and cash equivalents $ 6,917,313 $ 10,763,029 $ 1,141,371 $ 5,550,807 $ 24,372,520 $ 7,205,081
Investments - 1,978,606 1,978,606
Other Receivables 581,488 939,513 2,046 323,608 1,846,655 24,090
Due from other governmental units - - 533,780 533,780
Inventory of materials and supplies - 60,542 60,542 27,494
Restricted cash and cash equivalents 35,955 - 139,567 175,522 -
TotalCurrentAssets 7,534,756 13,681,148 1,343,526 6,408,195 28,967,625 7,256,665
NONCURRENT ASSETS:
Notes receivable 44,516 44,516
Capital Assets:
Land 87,347 69,525 1,609,575 579,783 2,346,230
Building 1,416,567 3,364,962 6,627,496 4,164,051 15,573,075
Other improvements 25,866,317 17,533,928 3,599,021 56,320,729 103,319,994 -
Machinery and equipment 874,032 1,249,131 1,324,066 56,139 3,503,368 19,040,544
Less: accumulated depreciation (13,569,787) (10,159,287) (8,195,602) (20,623,091) (52,547,766) (11,886,535)
Construction in progress 283,821 646,903 2,456,201 3,386,924
Total Capital Assets (Net Of A/D) 14,958,296 12,705,161 4,964,556 42,953,812 75,581,825 7,154,009
Restricted Pension assets
Net Pension asset
433,558 505,847 572,051 876,923 2,388,379 257,028
Total Noncurrent Assets 15,391,853
Total Assets
Deferred Outflows of Resources
Deferred pension
Deferred Loss on Refunding
Total Deferred Outflows Of Resources
13,255,524 5,536,607 43,830,735 78,014,720 7,411,037
22,926,609 26,936,672 6,880,133 50,238,930 106,982,345 14,667,702
51,642 53,868 66,581 100,022 272,112 30,899
5,424 12,935 2,504 20,863
57,066 66,803 66,581 102,525 292,975 30,899
LIABILITIES:
Current liabilities:
Accounts payable 363,996 415,084 57,659 313,227 1,149,966 35,074
Accrued wages and benefits 31,500 37,807 32,828 52,285 154,420 20,713
Accrued interest payable 1,131 4,019 2,466 7,617 -
Unearned revenue 7,814 201 8,015 -
Other current liabilities 35,955 67,641 134,636 81,382 319,615 633,000
Due to other governments 95,080 233,436 270,953 599,468 -
Conpensated absences 7,076 4,808 2,614 17,787 32,285
Revenue bond payable 42,258 100,769 19,504 162,531
Total Current Liabilities 584,810 863,564 227,738 757,804 2,433,916 688,787
Noncurrent liabilities:
Reserve for unreported claims - 949,500
Revenue bonds payable 176,203 420,176 81,324 677,704
Net pension liability 41,855 48,834 55,225 84,657 230,571 24,813
Compensated absences 76,060 94,592 44,796 86,686 302,134
Due to other governments 161,251 796,271 518,712 1,476,234
Total Noncurrent Liabilities 455,369 1,359,873 100,021 771,379 2,686,643 974,313
Total Liabilities
Deferred Inflows of Resources
Deferred inflow pension earnings
Total Deferred Inflows Of Resources
1,040,180 2,223,437 327,760 1,529,183 5,120,559 1,663,100
466,933 507,856 610,249 916,651 2,501,690 284,155
466,933 507,856 610,249 916,651 2,501,690 284,155
NET POSITION:
Net Investment in capital assets 14,488,928 11,113,907 4,964,556 41,991,805 72,559,196 7,154,009
Unrestricted 6,987,634 13,158,275 1,044,149 5,903,817 27,093,876 5,597,336
Total Net Position $ 21,476,562 $ 24,272,182 $ 6,008,705 $ 47,895,622 $ 99,653,072 $ 12,751,345
The notes to the financial statements are an integral part of this statement.
35
CITY OF TUKWILA: 2021 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, 2021
Governmental
Foster Surface Total Activities
Water Sewer Golf Water Enterprise Internal
Utility Utility Course Utility Funds Service Funds
OPERATING REVENUES:
Charges for services $ 6,771,326 $ 9,422,525 $2,193,677 $ 7,021,365 $ 25,408,893 $ 9,812,115
Other operating revenue 9,579 74,288 - 83,867 204,304
Total Operating Revenues 6,780,905 9,422,525 2,267,965 7,021,365 25,492,760 10,016,420
OPERATING EXPENSES:
Operating & maintenance 3,918,164 5,459,438 1,614,119
Administrative and general 751,244 1,069,563 207,298
Taxes 974,838 1,078,943 10,709
Depreciation and amortization 556,598 386,923 343,758
1,610,497
908,282
800,007
1,000,534
12,602,218
2,936,387
2,864,497
2,287,813
8,211,113
521,144
1,415, 570
Total Operating Expenses 6,200,844 7,994,867 2,175,885
Operating Income (Loss)
4,319,320 20,690,915 10,147,827
580,061 1,427,659 92,080 2,702,045 4,801,845 (131,408)
NON -OPERATING REVENUE (EXPENSE):
Investment earnings 23,820 90 943 8,137 32,990 12,453
Interest expense (8,567) (23,072) (8,107) (39,747) -
Gain (loss) on disposal of capital assets - - 284,724
Other non -operating revenue 61,630 61,630 -
Total Non -Operating Revenue (Expense) 15,252 (22,983) 943 61,660 54,872 297,177
Income (Loss) Before Contributions & Transfers
Capital contributions
Transfers in
Transfers out
Change in Net Position
Total net position - beginning
595,313 1,404,676 93,023 2,763,705 4,856,717 165,770
67,865 163,200 1,478,612 1,709,678
- 300,000 300,000
(402,541) (724,949) (556,454) (1,683,944)
260,637 842,926 393,023 3,685,864 5,182,451
165,770
21,215,925 23,429,256 5,615,682 44,209,758 94,470,621 12,585,575
Total Net Position - ending $ 21,476,562 $ 24,272,182 $ 6,008,705 $ 47,895,622 $ 99,653,072 $ 12,751,345
The notes to the financial statements are an integral part of this statement.
36
CITY OF TUKWILA: 2021 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2021
Page 1 of 2
Governmental
Foster Surface Total Activities
Water Sewer Golf Water Enterprise Internal
Utility Utility Course Utility Funds Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $ 6,681,699 $ 9,290,939 $ 2,284,213 $ 7,225,842 $ 25,482,694 $ 10,024,384
Cash paid to supplier (2,999,048) (4,695,231) (738,073) (424,426) (8,856,779) (1,407,762)
Cash paid for taxes (974,838) (1,078,943) - (800,007) (2,853,788) -
Cash paid to or on behalf of employees (836,084) (896,502) (1,171,773) (1,596,469) (4,500,828) (7,440,724)
Interfund activity- payments to other funds (698,111) (612,649) (207,298) (629,999) (2,148,057) (330,403)
Other cash received 9,579 435 - 10,014 -
Net Cash Provided (Used)
By Operating Activities 1,183,197 2,007,613 167,505 3,774,941 7,133,256 845,496
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Operating grant received - 61,630 61,630
Transfers in 300,000 - 300,000
Transfers out (402,541) (724,949) - (556,454) (1,683,944)
Net Cash Provided (Used) By Non -
Capital Financing Activities (402,541) (724,949) 300,000 (494,824) (1,322,314)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Purchase of capital assets (150,420) (1,161,831) (234,871) (3,417,051) (4,964,174) (762,958)
Contributed capital 67,865 163,200 231,065 -
Capital grants - 1,281,459 1,281,459 -
Principal payment on debt (121,492) (330,886) (278,217) (730,595)
Interest payment on debt (8,784) (23,417) - (8,497) (40,698) -
Proceeds from sale of equipment - - 289,759
Net Cash Provided (used) for Capital
And Related Financing Activities (212,831) (1,352,934) (234,871) (2,422,306) (4,222,942) (473,200)
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from sale of investments
Purchase of investments
Interest received
Net Cash Provided (Used) In Investing Activities
Net increase (decrease) in cash and
Cash equivalents
Cash and cash equivalents -beginning of year
Cash And Cash Equivalents- end of year
2,106,948 - - 2,106,948 500,000
(2,000,000) - - (2,000,000) -
23,820 21,484 943 8,137 54,384 7,530
2,130,768 (1,978,516) 943 8,137 161,332 507,530
2,698,593 (2,048,787) 233,576 865,949 1,749,332
4,254,674 12,811,816 1,047,362 4,684,858 22,798,710
879,826
6,325,255
$ 6,953,268 $10,763,029 $1,280,938 $ 5,550,807 $ 24,548,042 $ 7,205,081
Cash at end of year consists of:
Cash and cash equivalents 6,917,313 10,763,029 1,141,371 5,550,807 24,372,520 $ 7,205,081
Restricted cash -customer deposits 35,955 139,567 - 175,522 -
Total Cash and cash equivalents $ 6,953,268 $10,763,029 $1,280,938 $ 5,550,807 $ 24,548,042 $ 7,205,081
The notes to the financial statements are an integral part of this statement.
37
CITY OF TUKWILA: 2021 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2021
Page 2 of 2
Water
Utility
Sewer
Utility
Foster
Golf
Course
Surface
Water
Utility
Total
Enterprise
Funds
Governmental
Activities
Internal
Service Funds
RECONCILIATION OF NET OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)
Adjustments to reconcile operating income to net cash
Provided (used) by operating activities:
$ 580,061 $ 1,427,659 $ 92,080 $ 2,702,045 $ 4,801,845 $ (131,408)
Depreciation 556,598 386,923
Asset (increase) decrease:
Accounts receivable (85,627) (131,586)
Inventory and other
Deferred outflow of resources (increase) decrease 6,426 (14,181)
Liability increases (decreases):
Accounts payable 333,109 360,325
Other liabilities (4,000) 32,568
Wages & benefits payable (672) 79,747
Deferred inflow of resources increase (decrease) (202,698) (133,840)
Total Adjustments 603,136 579,955
Net Cash Provided (Used) By Operating Activities
SCHEDULE OF NONCASH INVESTING, CAPITAL AND
FINANCING ACTIVITIES
Capital assets acquired by contributed capital
Increase (decrease) in fair value of investment
Total Non Cash investing, Capital and
Financing Activities
343,758
(27)
(7,887)
1,721
10,816
16,710
(44,302)
(245,366)
75,424
1,000,534
204,478
(682)
197,373
29,762
(23,992)
(334,577)
2,287,813 1,415,570
(12,762)
(7,887)
(6,715)
901,623
75,040
10,780
(916,480)
1,072,896 2,331,412
7,964
(13,656)
4,405
(329,900)
12,088
(119,568)
976,903
$ 1,183,197 $ 2,007,613 $ 167,505 $ 3,774,941 $ 7,133,256 $ 845,496
(21 ,394)
$ 197,153
$ 197,153 $
(21,394)
$ $ (21,394) $
$ 197,153 $ 175,759 $
The notes to the financial statements are an integral part of this statement.
38
CITY OF TUKWILA: 2021 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF FIDUCIARY NET POSITON
FIDUCIARY FUNDS
DECEMBER 31, 2021
Pension and
Other Employee Benefit Custodial
Trust Funds Funds
ASSETS:
Cash and cash equivalents $ 1,531,223 $ 172,656
Customer accounts - 15,199
Total Assets
1,531,223 187,855
LIABILITIES:
Accounts and other payables - 181,044
Total Liabilities - 181,044
NET POSITION:
Restricted for pensions
Restricted for individuals, organizations
and other governments
1,531,223
- 6,812
Total Net Position $ 1,531,223 $ 6,812
The notes to the financial statements are an integral part of this statement.
39
CITY OF TUKWILA: 2021 ACFR BASIC FINANCIAL STATEMENTS
CITY OF TUKWILA, WASHINGTON
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2021
Pension and
Other Employee Benefit Custodial
Trust Funds Funds
ADDITIONS:
Contributions from nonemployer entities:
Fire Insurance Premiums Transferred in $ 71,112 $
Investment earnings/(loss) 1,486
Total Additions 72,598
DEDUCTIONS:
Benefit payments $ 58,830 $
Total Deductions 58,830
Change In Net Position 13,768
Net position - beginning 1,517,456 6,812
Net position - ending $ 1,531,223 $ 6,812
The notes to the financial statements are an integral part of this statement.
40
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended December 31, 2021
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 financial reporting principles. The City's significant
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 (police and fire), 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
The City's basic financial statements consist of government -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 eliminated to avoid "doubling up" revenues and expenses.
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: 2021 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
expenses, as appropriate. The City's resources are allocated to - and accounted for - in individual funds according
to the purpose for which they are spent and how they are controlled. There are three categories of funds:
governmental, proprietary and fiduciary.
Governmental Funds
All governmental funds are accounted for on a "flow of current financial resources" measurement focus. Their
reported fund balance is considered a measure of "available spendable resources." Governmental fund operating
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.
The following are the City's major governmental funds:
• The general fund accounts for all the City's financial 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
facility. The public works shop facility is part of the City's public safety plan but is not included in the voter -
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.
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CITY OF TUKWILA: 2021 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
accounted for on a "flow of economic resources" measurement focus. 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
proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise and internal
service funds are charges to the City's internal and external 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 are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed.
The City's enterprise funds account for utility and golf course operations, which are self -supported through user
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 City's major enterprise funds are as follows:
• 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 improvements for the City's storm drainage
and surface water management function.
The City has three internal service funds. The Equipment Rental Fund is used to account for the costs of maintaining
and replacing all City vehicles and auxiliary equipment. All equipment costs, including depreciation, are factors in
calculating the rates charged to each user department. The Insurance and Insurance — LEOFF I Funds are used to
account for the costs of the City's self -insured medical plan 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 other funds. The City has two fiduciary funds, Firemen's Pension Trust Fund
and Custodial Fund. The Firefighters' Pension Fund accounts 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 State Law Enforcement Officers' and Fire Fighters'
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 custodial fund is used to account for assets that the City holds on behalf of others in a custodial capacity.
Fiduciary funds are excluded from the government -wide financial statements.
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CITY OF TUKWILA: 2021 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.
Revenues — Exchange and Non -Exchange Transactions
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 available. "Measurable" means the amount of the transaction can
be determined and "available" means collectible within the current period or soon enough thereafter to pay current
liabilities. For the City, available means expected to be received within sixty (60) days of year-end. The primary
accrued revenues that meet 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: 2021 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 as between the City's water, sewer, and surface water
functions and various other functions of the City, which are not eliminated in the process of consolidation.
Elimination of these charges would distort the direct costs and program revenues reported for the various functions
concerned. Amounts reported on the government -wide statements as program revenues include charges to
customers or applicants for goods, operating grants and contributions, and capital grants and contributions. General
revenues 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
proprietary and fiduciary funds are "management budgets" and are not legally required to be reported and, as such,
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.
The City of Tukwila's budget procedures are mandated by RCW 35A.33. The steps in the budget process are as
follows:
1) Prior to November 1 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: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
Expenditure Categories
General Government
Includes administration, finance, municipal court, attorney,
and city clerk activities.
Public Safety
Includes all police and fire activities.
Transportation
Includes all residential and arterial street maintenance and
construction.
Natural and Economic
Environment
Reflects all planning and building inspection as well as
environmental and community services.
Culture and Recreation
Includes expenditures related to parks and recreational
activities.
G. Assets, Liabilities, and Fund Equity
Cash and Cash Equivalents
The government's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term
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, repurchase agreements, prime banker's acceptances, and
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 one developer agreement.
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
year are referred to as either "interfund loans receivable/payable" or "advances to/from other funds." Any residual
balances outstanding between the governmental activities and business -type activities are reported in the
government -wide financial statements as "internal balances." As of December 31, 2021, there are no residual
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
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CITY OF TUKWILA: 2021 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 material in amount. The inventory amount on this year's
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 less than the government's cost to
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. The City
cleared the site, consolidated the parcels, sold one parcel to the King County Library System, and sold the remaining
land to a developer. The new library was completed in 2017, the first two apartment buildings were completed in
2018, and the remaining two apartment buildings were 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. HealthPoint plans to build a Health and
Wellness Center by 2026. In 2021 the City sold the remaining 0.6 acres to the Tukwila Community Coalition, LLC
for private development.
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CITY OF TUKWILA: 2021 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
thousand ($5,000) dollars. The City's infrastructure consists of roads, bridges, storm sewers, water and sewer
distribution and collection systems. Improvements are capitalized while the costs of normal maintenance and repairs
that do not add to the value of the asset or materially extend an asset's life are not.
Depreciation is computed using the straight-line method over estimated service lives, as follows:
Asset Estimated Service Life
Buildings 25 to 50 years
Non -Building Improvements 25 to 50 years
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 $ 600,000 determined using actuarial methods. This liability is multiplied by a factor of
2.5 to meet the City's financial goal of maintaining reserves at 1 x IBNR for claim fluctuations plus 1.5 x IBNR for a
claims reserve yielding a total liability of $1,500,000. The self-insurance fund for LEOFF 1 retirees includes an
IBNR liability of $33,000 and total liability of $82,500 utilizing the same calculations as the active employees' self-
insurance fund.
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CITY OF TUKWILA: 2021 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.
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 investment in capital assets 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.
The City's current Reserve Policy addresses the various types of the City's operating and restricted use 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.
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.
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CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
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
contractually required to remain intact, such as a principal balance in a permanent fund. The general fund's
nonspendable fund balance of $70 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
action in the form of ordinances and resolutions of Tukwila Councilmembers, the City's highest level of
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 constrained by the City's intent to be used for a specific
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
classifications can be used, it is the City's policy to 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.
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CITY OF TUKWILA: 2021 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 $2,661,382
for 2021 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
It is the City of Tukwila's policy to self -insure for unemployment benefits because of the insignificant liability. Medical
and dental self-insurance coverage is also provided for employees. All buildings, City equipment, and City vehicles
are insured by carriers for property coverage at replacement value.
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 166 as of December 31, 2201. 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
plans and additions to/deductions from those plans' fiduciary net position have been determined on the same basis
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.
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CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 2 —DEPOSITS AND INVESTMENTS
The City maintains a cash and investment pool available for use by all funds. Interest earned on pooled investments
is recorded in the participating funds. Investments are also held separately by several of the funds, with interest
earned directly for the benefit of each fund.
Cash and Cash Equivalents
Custodial credit risk is the risk associated with the failure of a depository financial institution. In the event of a
depository financial institution's failure, it is the risk that 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.
At year-end, the carrying amount of the City's cash balance held in banks was $9,316,927. 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 $16,450.
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
LGIP is an unrated external investment pool. The pool's portfolio is invested in a manner that meets the maturity,
quality, diversification, and liquidity requirements set for by GASB 79 "Certain External Investment Pools and Pool
Participants" for external investment 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
The City's investment portfolio includes certificate of 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
sale. Also, the Firemen's Pension Fund is authorized to invest in stocks, bonds, and mutual funds.
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CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
At December 31, 2021, 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
U.S. Government Agency Notes:
Federal Home Loan Bank 12/10/2024 Aaa $ 1,000,009
Federal Home Loan Bank 4/14/2025 Aaa 1,978,606
Federal Home Loan Bank 2/24/2026 Aaa 980,252
Federal Farm Credit Bank 6/15/2026 Aaa 983,140
Federal Farm Credit Bank 11/30/2026 Aaa 2,000,460
Total U.S. Agency Notes 6,942,467
Municipal Bonds:
Metro Oregon GO Taxable Bond
Total Municipal Bonds
TOTAL INVESTMENTS
6/ 1 /2026
Aaa 1,174, 645
RECONCILIATION OF ALL CASH, DEPOSITS AND INVESTMENTS
1,174, 645
$ 8,117,112
CASH & CASH RESTRICTED
SUMMARY BY FUNDS EQUIVALENTS CASH INVESTMENTS TOTAL
Governmental Funds
General Fund $ 15,741,344 $ - $ 6,138,506 $ 21,879,851
Arterial Street 2,257,520 1,000,809 3,258,329
Local Improvement District #33 601,809 601,809
Public Safety Plan 243,665 243,665
Facilities Urban Renewal 4,643,921 - 4,643,921
Other Governmental Funds 10,721,260 92,611 10,813,871
Internal Service Funds 7,205,081 - 7,205,081
Proprietary Funds
Water 6,917,313 35,955 6,953,268
Sewer 10, 763, 029 - 1,978,606 12, 741, 635
Foster Golf Course 1,141,381 139,567 1,280,948
Surface Water 5,550,807 - 5,550,807
Total as Reported on
Statement of Net Position
Firemen's Pension Trust Fund
Agency Fund
Total Cash, Cash Equivalents
and Investments
65, 787,130 1,268,942
8,117,112 75,173,184
1,531,223
172,656
1,531,223
172,656
$ 67, 491, 010 $ 1,268,942 $ 8,117,112 $ 76, 877, 064
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CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
SUMMARY BY TYPE:
Cash and Cash Equivalents:
Local Government Investment Pool
Money market account
Cash on hand
Cash in bank -book balance
Total cash and cash equivalents
Investments:
U.S. Government Agency Notes
Municipal bonds
Total investments
Total Cash, Cash Equivalents, and Investments
RESTRICTED CASH SUMMARY
$ 44,735,268
15,152, 038
16,450
8,856,196
68, 759, 952
6,942,467
1,174, 645
8,117,112
$ 76, 877, 064
Restricted Assets - Governmental
Cash & cash equivalents
Drug Seizure funds - federal portion
Impact fees
Restricted Assets -Governmental
$ 92,611
1,000,809
$ 1,093,420
Restricted Assets - Business -Type
Customer Deposits -Water Utility
Customer Deposits -Golf Course
Lease Deposits -Golf Course
Restricted Assets -Business -Type
$ 35,955
124,567
15,000
$ 175,522
Total Restricted Assets $ 1,268,942
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CITY OF TUKWILA: 2021 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, 2021:
Fair Value Measurements Using
Investments by Fair Value Level
US Government Agencies
Municipal Bonds
Total Investments by Fair Value Level
Interest Rate Risk
Total
6,942,467
1,174, 645
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
6,942,467
1,174, 645
Significant
Unobservable
Inputs
(Level 3)
$ 8,117,112 $
$ 8,117,112 $
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 value losses arising from rising interest rates, the City's
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
when compatible with a specific fund's investment needs.
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CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
3) The average maturity of the portfolio shall not exceed three and one half (3'/2) years or forty-two (42) months.
The City uses the weighted average maturity method to manage interest rate risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State statutes
and the City's investment policy limit the types of securities authorized for investment by the City. The principal
governing statutes are RCW 39.59 and RCW 39.60. The Finance Director may further restrict eligible investments
by this policy at his/her discretion. Authorized investments include (but are not limited to):
1) U.S. Treasury Securities.
2) U.S. Agency Securities (i.e., obligations of any government -sponsored corporation eligible for collateral
purposes at the Federal Reserve).
3) Certificates of Deposit, Money Market Deposit Accounts and savings deposits with qualified depositories
within statutory limits as promulgated by the WPDPC at the time of investment.
4) Bankers Acceptances (BA's) purchased on the secondary market with a rating of A-1, P-1, its equivalent or
better.
5) General Obligation Bonds of a state or local government which have at the time of the investment one of the
three highest credit ratings of a nationally recognized rating agency.
6) The Washington State Local Government Investment Pool (LGIP), an unrated, external investment pool.
As of December 31, 2021, the City's investments in municipal bonds were rated Aaa by Moody's Investor 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:
1) No more than fifty percent (50%) of the City's portfolio, at the time of purchase, shall be in any single financial
institution,
2) Investment of 100% of the City's portfolio in U.S. Treasury securities shall be allowed; this is a risk -free
investment, and in the event of unforeseen circumstances, the City shall have the ability to invest the entire
portfolio in a risk free investment.
3) No more than seventy-five percent (75%) of the City's portfolio, at the time of purchase, shall be invested in
the Washington State Local Government Investment Pool, and
4) No more than seventy-five percent (75%) of the City's portfolio, at the time of purchase, shall be invested in
U.S. Treasury or Agency securities.
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CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 3 — RECEIVABLES
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
Activities Activities
Total
Taxes Receivable
Property $ 403,958 $ $ 403,958
Sales & Use 3,776,214 - 3,776,214
Real Estate Excise Tax 534,774 534,774
Utility Tax 959,639 - 959,639
Admission/Gambling/Parking/Other 1,765,977 1,765,977
Total Taxes Receivable 7,440,563 7,440,563
Customer Receivable
Miscellaneous
Utility Accounts
Total Customer Receivable
Interest
Notes due within one year
Total Receivables
Property Taxes Receivable
548,828
1,780,062
548,828
1,780,062
548,828
8,389
1,780,062 2,328,890
66,593 74,981
239,879 239,879
$ 8,237,659 $ 1,846,655 $ 10, 084, 314
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.
January 1st
February 14th
April 30th
May 31st
October 31 st
Property Tax Calendar
Taxes are levied and become an enforceable lien against properties.
Tax bills are mailed.
First of two equal installment payments is due. If taxes are less than $50, full payment
is due. (RCW 84.56.020)
Assessed value of property established for next year's levy at 100 percent of market
value.
Second installment is due. (RCW84.56.020)
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
year's property tax levy.
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
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CITY OF TUKWILA: 2021 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 the City funds a Firemen's
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. State law also provides that the City's operating levy may
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.
Washington State Constitution and Washington State law, RCW 84.55.010, limit the rate. The City's regular levy
in 2021 was $2.17985 per $1,000 of assessed valuation of $ 7,883,057,562 for a total regular levy of $17,144,206.
Special levies approved by the voters are not subject to the limitations listed above. In 2021, the City levied an
additional $0.49748 per $1,000 for the Public Safety Plan approved by voters in November 2016. The total
additional levy in 2021 was $3,905,260.
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, 2021, 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.
Notes receivable for business —type activities consists of outstanding payment plans for sewer connection fees. The
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.
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CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
Business -
Governmental Type
Activities Activities Total
Notes Receivable
Special Assessments $ 2,631,224 $ - $ 2,631,224
Developer Agreements 100,355 - 100,355
Sewer Payment Plan 44,516 44,516
Total Receivables $ 2,731,579 $ 44,516 $ 2,776,095
NOTE 4 — INTERFUND TRANSACTIONS
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.
Services Provided/Used — 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.
Interfund Loans/Advances — Loans between funds are classified as interfund loans receivable and payable or as
advances to and from other funds in the fund statements. Interfund loans are offset by a reservation of fund
balance/net position. Interfund loans are subject to elimination upon consolidation. As of December 31, 2021, 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.
Transfers — Transactions to support the operations of other funds are recorded as "Transfers" and classified with
"Other Financing Sources or Uses" in the fund statements. Transfers between governmental or proprietary funds
are netted as part of the reconciliation to the government -wide financial statements.
Contributions — Contributions to the capital of enterprise or internal service funds, transfers of capital assets
between proprietary and governmental funds, transfers to establish or reduce working capital in other funds, and
transfers of remaining balances when funds are closed are classified non -operating revenue.
Reimbursements — 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
Governmental Proprietary
Funds Funds
General Public Safety Arterial Other GoVt Total Golf Surface
Fund Plan Street Facilities Funds Governmental Water Sewer Course Water
TOTAL
Transfers In $ 1,855,001 $ 100,130 $ 1,666,850 $1,750,000 $ 4,532,429 $ 9,904,409 $ - $ - $300,000 $ - $10,204,409
Transfers Out (5,405,587) (1,668,817) (485,000) - (961,062) $ (8,520,466) (402,541) (724,949) - (556,454) (10,204,409)
Net Transfers In (Out) $ (3,550,587) $ (1,568,687) $ 1,181,850 $1,750,000 $ 3,571,367 $ 1,383,944 $(402,541) $(724,949) $300,000 $(556,454) $ -
The principal purposes for interfund transfers include interfund subsidies and transfers into debt service and capital
projects funds.
59
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 5 — LEASES
Operating Leases
City Records Center
Effective June 1, 2009, the City entered into a 60-month non -cancelable lease with International Gateway East,
LLC to rent a warehouse at 3411 South 120th Place, Tukwila in order to store the City's record archives. In 2014,
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 2021 were $45,041. The lease was terminated in June 2021
and the City's record archives have been moved to the City Hall campus.
Laptop Computers
Effective September 1, 2020, the City entered into a 36-month non -cancelable lease with Dell Financial Services,
LLC to lease laptop computers for use by the City's employees. 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 second of three lease payments of
$106,814 on the contract in 2021.
Fleet Vehicles
Effective August 20, 2021, the City entered into an open lease with Enterprise Fleet Management. The City took
delivery of its first three vehicles in January 2022 and one subsequent vehicle in March 2022, all with 60 month
leases. Future lease payments for 2022 for these four vehicles is $26,315.
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 2021 was $7,639. Future lease payments to
Pitney Bowes, Inc. total $7,639 for 2022.
During 2021, the City also maintained operating lease agreements for copiers and other various office equipment.
Minimum future rental payments are summarized as follows:
Year Ending
December 31
Fleet Vehicles
Postage
Machine
Laptop
Computers
Office
Equipment
Amount
2022
$ 26,315
$ 7,639
$ 106,814
$ 97,704
$ 238,472
2023
27,296
3,820
-
4,688
35,804
2024
27,296
-
-
4,688
31,984
2025
27,296
-
-
4,688
31,984
2026
27,296
-
-
-
27,296
Thereafter
-
-
-
-
-
TOTAL
$ 135,499
$ 11,459
$ 106,814
$ 111,769
$ 365,541
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CITY OF TUKWILA: 2021 ACFR
NOTE 6 - CAPITAL ASSETS
NOTES TO THE FINANCIAL STATEMENTS
Capital asset activity for the year ended December 31, 2021, was as follows:
GOVERNMENTAL ACTIVITIES
BEGINNING
BALANCE
1/1/2021
ENDING
BALANCE
INCREASES DECREASES 12/31/2021
Governmental Activities
Capital assets, not being depreciated:
Land
Construction in Progress
Total capital assets
not being depreciated
Capital assets, being depreciated:
Buildings
Other Improvements
Machinery and Equipment
Infrastructure
Total capital assets
being depreciated
Less accumulated depreciation for:
Buildings
Other Improvements
Machinery and Equipment
Infrastructure
Total accumulated depreciation
Total capital assets, being
depreciated, net
Governmental activity capital assets, net
$ 51,719,374 $ - $ - $ 51,719,374
51,121,232 6,950,129 (22,219,502) 35,851,859
102, 840, 605 6,950,129
85, 677, 913 23, 011, 276
24, 335,111
27, 773, 948 1,048,268
227, 655, 631 2,354,266
(22, 219, 502) 87, 571, 233
(927, 587)
108, 689,189
24, 335,111
27, 894, 629
230, 009, 898
365, 442, 604 26, 413, 810
(15, 783, 094)
(16, 824, 040)
(17, 380, 336)
(83,055,099)
(2,498,191)
(948,093)
(2,095,783)
(6,719,060)
(133,042,568) (12,261,128)
232, 400, 036 14,152, 683
(927,587) 390,928,827
922,552
922,552
(5,035)
(18, 281, 285)
(17, 772,132)
(18, 553, 567)
(89, 774,159)
(144, 381,143)
246, 547, 684
$ 335, 240, 641 $ 21,102, 811 $ (22, 224, 536) $ 334,118, 916
61
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
BUSINESS -TYPE ACTIVITIES
BEGINNING
BALANCE
1/1/2021
ENDING
BALANCE
INCREASES DECREASES 12/31/2021
Business -Type Activities
Capital assets, not being depreciated:
Land
Construction in Progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Buildings
Other Improvements
Machinery and Equipment
Total capital assets
being depreciated
Less accumulated depreciation for:
Buildings
Other Improvements
Machinery and Equipment
Total accumulated depreciation
Total capital assets, being
depreciated, net
Business -Type activity capital assets, net
$ 2,346,230 $
2,695,009
$ - $ 2,346,230
4,775,543 (4,083,628) 3,386,924
5,041,239
13,284,419
101, 590, 247
3,263,112
4,775,543
2,288,655
1,743,347
240,256
(4,083,628) 5,733,154
(13,600)
15, 573, 075
103,319,994
3,503,368
118,137, 778
(6,464,364)
(41,296,324)
(2,512,865)
4,272,258
(371, 795)
(1,815,997)
(100, 021)
(13,600) 122,396,437
13,600
(6,836,159)
(43, 098, 721)
(2,612,886)
(50,273,553) (2,287,813)
67, 864, 225
1,984,445
13,600 (52,547,766)
69, 848, 671
$ 72,905,464 $ 6,759,988 $(4,083,628) $ 75,581,825
62
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
DEPRECIATION
Depreciation expense for 2021 was charged to functions/programs as
follows:
Governmental Activities
General Government
Public Safety
Transportation
Culture and Recreation
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets
$ 2,686,985
452,707
6,744,834
961,032
1,415,570
Total 2021 depreciation expense - governmental activities $ 12,261,128
Business -type activities:
Water Utility
Sewer Utility
Foster Golf Course
Surface Water Utility
$ 556,598
386,923
343,758
1,000,534
Total 2021 depreciation expense - business -type activities $ 2,287,813
NOTE 7 — JOINT VENTURES
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 the City's investment in joint ventures follows.
Equity in
Operations
Equity in Capital
Assets financed by
Outstanding Debt
Valley Conn $3,878,636 $ -
SCORE 2,541,785 4,568,396
TOTAL
Investment in
Joint Ventures
$ 3,878,636
7,110,181
TOTAL $6,420,421 $4,568,396 $ 10,988,817
Valley Communications Center
The "Valley Communications Center" was established August 20, 1976, when an Interlocal Agreement was entered
into by the four original participating municipal corporations, including the cities of Renton, Kent, Auburn, and
Tukwila. 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.
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CITY OF TUKWILA: 2021 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 2021 cost distribution for the five (5) participating cities is as follows:
City
Dispatchable
Calls
Percent of Total
Renton
80,799
21.15%
Kent
101,249
26.51
Auburn
83,626
21.90%
Tukwila
35,008
9.17%
Federal Way
81,257
21.27%
Total
381,939
100.00%
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 consists of two members of each participating City's Public
Safety Departments, including the heads of such departments or their designees. The Operating Board performs
the following functions: (1) Oversees the operation of Valley Com and advises and makes recommendations to the
Administration Board; (2) Makes recommendation on Director selection; (3) Presents proposed policies and budgets
to the Administration Board; (4) Approves disbursement of funds by the Director.
The Director presents a proposed budget to the Operating Board on or before August 15 of each year. 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:
ITEM
RENTON KENT AUBURN TUKWILA
FEDERAL
WAY
TOTAL
Equity January 1, 2021 $ 7,037,728 $ 9,564,555 $ 7, 234, 069 $ 3,416, 212 $ 6,022,545 $ 33, 275,110
Current Year Increase/(Decrease) 1,067,291 1,337,421 1,104,634 462,424 1,073,341 5,045,112
Equity December31, 2021 $ 8,105,020 $10,901,977 $8,338,703 $3,878,636 $ 7,095,886 $38,320,221
Percent of Equity 21.15% 28.45% 21.76% 10.12% 18.52% 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
termination of any sub-region's participation in the system, it surrenders its radio frequencies, relinquishes its
equipment and transfers any unexpended levy proceeds and associated equipment replacement reserves to
64
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
another sub -region or consortium of sub -regions. Thus, in accordance with this agreement, the participating cities
of Valley Com have no equity interest in Valley Com's 800-MHz communications system.
During 2000, the Valley Communications Center Development Authority was created to issue $12,758,000 in
General Obligation Bonds to finance construction, equipment, and land for a new facility completed in 2002. Each
of the five participating cities 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.
A complete set of financial statements are available from Valley Communications Center, 27519 108th Ave SE,
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
October 1, 2009, the "2009 Interlocal Agreement") pursuant 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).
The 2009 Interlocal Agreement named the City of Des Moines as the "Host City" and the remaining Member Cities
as the "Owner Cities". Pursuant to a separate "Host City Agreement" dated October 1, 2009, the Host City will not
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 unexpended funds or
reserve funds shall be distributed based on the percentage of the Member City's average daily population at the
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
Build America Bonds —Direct Payment) (2009B Bonds, 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
to as each Owner City's 2009 Capital Contribution). Each Owner City's obligation to pay its 2009 Capital
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.
65
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
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
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
(referred to as each Owner City's 2019 Capital Contribution). Each Owner City's obligation to pay its 2019 Capital
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 Schedule
Debt Service Allocation to Owner Cities
Auburn
Burien
Des Moines
Renton
SeaTac
Tukwila
Year
Principal
Interest
Total
34.94%
4.82%
6.02%
40.96%
3.62%
9.64%
2022
1,915,000
1,996,100
3,911,100
1,366,538
188,515
235,448
1,601,987
141,582
377,030
2023
1,990,000
1,919,500
3,909,500
1,365,979
188,438
235,352
1,601,331
141,524
376,876
2024
2,070,000
1,839,900
3,909,900
1,366,119
188,457
235,376
1,601,495
141,538
376,914
2025
2,155,000
1,757,100
3,912,100
1,366,888
188,563
235,508
1,602,396
141,618
377,126
2026
2,260,000
1,649,350
3,909,350
1,365,927
188,431
235,343
1,601,270
141,518
376,861
2027-2031
13,115,000
6,434,250
19,549,250
6,830,508
942,274
1,176,865
8,007,373
707,683
1,884,548
2032-2036
16,405,000
3,142,000
19,547,000
6,829,722
942,165
1,176,729
8,006,451
707,601
1,884,331
2037-2038
7,480,000
338,250
7,818,250
2,731,697
376,840
470,659
3,202,356
283,021
753,679
Totals
$47,390,000
$ 19,076,450
$66,466,450
23,223,378
3,203,683
4,001,280
27,224,659
2,406,085
6,407,365
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, 2021 related to SCORE. The share of equity belonging to the six participating cities are as follows:
66
CITY OF TUKWILA: 2021 ACFR
NOTES TO THE FINANCIAL STATEMENTS
Member City
2020 Percent of
Equity
2020 Equity
Balance
2021 Percent of
Equity
2021
Apportionment
2021 Equity
Balance
Auburn
43.05%
12,967,700
41.93%
760,941
13,728,641
Burien
5.14%
1,548,383
5.30%
187,658
1,736,041
Des Moines
4.62%
1,392,707
4.95%
226,688
1,619,395
Renton
31.70%
9,546,337
31.93%
903,035
10,449,372
SeaTac
7.66%
2,306,559
8.13%
354,751
2,661,310
Tukwila
7.83%
2,357,977
7.76%
183,808
2,541,785
Grand Totals
100.00%
30,119,663
100.00%
2,616,881
32,736,544
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, 2021, the City's share of SCORE debt is $4,568,396. See Note 10 for
additional information on long-term debt. Completed financial statements for SCORE and SCORE PDA can be
obtained from the SCORE, Attn: Finance Manager, 20817 17th Avenue South, Des Moines, WA 98198.
NOTE 8 — PENSION PLANS
The following table represents the aggregate pension amounts for all plans for the year 2021:
Aggregate Pension Amounts — All Plans
Pension liabilities
$ (1,272,465)
Pension assets
40,871,235
Deferred outflows of resources
4,384,238
Deferred inflows of resources
(27,963,349)
Pension expense/expenditures
(7,089,483)
State Sponsored Pension Plans
Substantially all the City of Tukwila's full-time and qualifying 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 Comprehensive Financial Report (ACFR) 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 ACFR may be downloaded from the DRS website at www.drs.wa.gov.
Public Employees' Retirement System (PERS)
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
67
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
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
of the member's average final compensation (AFC) times the member's years of service. The AFC is the average
of the member's 24 highest consecutive service months. Members 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.
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
2021 were as follows:
PERS Plan 1
Actual Contribution Rates
Employer
Employee*
January — June 2021
PERS Plan 1
7.92%
6.00%
PERS Plan 1 UAAL
4.87%
Administrative Fee
0.18%
Total
12.97%
6.00%
July — December 2021
PERS Plan 1
10.07%
6.00%
Administrative Fee
0.18%
Total
10.25%
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 the member's average final compensation (AFC) times the member's years of service for Plan 2 and 1
percent of AFC for Plan 3. The AFC is the average of the member's 60 highest -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
68
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
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.
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 2021 were
as follows:
PERS Plan 2/3
Actual Contribution Rates
Employer 2/3
Employee 2*
January — June 2021
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%
July — December 2021
PERS Plan 2/3
6.36%
6.36%
PERS Plan 1 UAAL
3.71
Administrative Fee
0.18%
Employee PERS Plan 3
Varies
Total
10.25%
6.36%
* For employees participating in JBM, the contribution rate was 15.90%.
The City of Tukwila's actual PERS plan contributions were $705,904 to PERS Plan 1 and $1,160,770 to PERS Plan
2/3 for the year ended December 31, 2021.
Public Safety Employees' 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:
69
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
• 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.
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 year of service. The AFC is based on the member's 60
consecutive highest creditable months of service. Benefits are actuarially reduced for each year that the member's
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: 2021 ACFR
NOTES TO THE FINANCIAL STATEMENTS
The PSERS Plan 2 required contribution rates (expressed as a percentage of current -year covered payroll) for 2021
were as follows:
PSERS Plan 2
Actual Contribution Rates
Employer
Employee
January — June 2021
PSERS Plan 2
7.20%
7.20%
PERS Plan 1 UAAL
4.87%
Administrative Fee
0.18%
Total
12.25%
7.20%
July — December 2021
PSERS Plan 2
6.50%
6.50%
PERS Plan 1 UAAL
3.71
Administrative Fee
0.18%
Total
10.39%
6.50%
The City of Tukwila's actual plan contributions were $12,464 to PSERS Plan 2 for the year ended December 31,
2021.
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF)
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:
• 20+ years of service — 2.0% of FAS
• 10-19 years of service — 1.5% of FAS
• 5-9 years of service — 1 % of FAS
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
consecutive 24 months' salary within the last ten years of service. Members are 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 1 had no required employer or employee contributions for fiscal year 2021.
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: 2021 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 3.41 % in 2021.
The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2021 were as
follows:
LEOFF Plan 2
Actual Contribution Rates
Employer
Employee
January — June 2021
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%
July — December 2021
State and local governments
5.12%
8.53%
Administrative Fee
0.18%
Total
5.30%
8.53%
Ports and Universities
8.53%
8.53%
Administrative Fee
0.18%
Total
8.71%
8.53%
The City of Tukwila's actual contributions to the plan were $813,295 for the year ended December 31, 2021.
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, 2021, the state contributed $78,170,320 to LEOFF Plan 2. The amount recognized by the City as its
proportionate share of this amount is $524,664.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation
completed in 2021 with a valuation date of June 30, 2020. The actuarial assumptions used in the valuation were
based on the results of the Office of the State Actuary's (OSA) 2013-2018 Demographic Experience Study and the
2019 Economic Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2020 actuarial valuation report.
The TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2021.
Plan liabilities were rolled forward from June 30, 2020, to June 30, 2021, reflecting each plan's normal cost (using
the entry -age cost method), assumed interest and actual benefit payments.
• Inflation: 2.75% total economic inflation; 3.50% salary inflation
72
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
• 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%
Mortality rates were developed using the Society of Actuaries' Pub. H-2010 mortality rates, which vary by member
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.
• For purposes of the June 30, 2020 Actuarial Valuation Report (AVR), a non -contribution rate setting valuation
under current funding policy, the Office of the State Actuary (OSA) introduced temporary method changes to
produce asset and liability measures as of the valuation date. See high-level summary below. OSA will revert
back to the methods outlined in the 2019 AVR when preparing the 2021 AVR, a contribution rate -setting
valuation, which will serve as the basis for 2022 ACFR results.
• To produce measures at June 30, 2020, unless otherwise noted in the 2020 AVR, OSA relied on the same
data, assets, methods, and assumptions as the June 30, 2019 AVR. OSA projected the data forward one year
reflecting assumed new hires and current members exiting the plan as expected. OSA estimated June 30,
2020, assets by relying on the fiscal year end 2019 assets, reflecting actual investment performance over FY
2020, and reflecting assumed contribution amounts and benefit payments during FY 2020. OSA reviewed the
actual June 30, 2020, participant and financial data to determine if any material changes to projection
assumptions were necessary. OSA also considered any material impacts to the plans from 2021 legislation.
See the 2020 AVR for more information.
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 completed to test whether each pension plan's fiduciary net
position was sufficient to make all projected future benefit payments for current plan members. Based on OSA's
assumptions, the pension plans' fiduciary net position was 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
Capital Market Assumptions (CMA's) and simulated expected investment returns provided by the Washington State
Investment Board (WSIB). The WSIB uses the CMA's and their 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 each major asset class included in the pension plan's target
asset allocation as of June 30, 2021, are summarized in the following table. The inflation component used to create
the table is 2.2 percent and represents the WSIB's most recent long-term estimate of broad economic inflation.
73
CITY OF TUKWILA: 2021 ACFR
NOTES TO THE FINANCIAL STATEMENTS
Asset Class
Target
Allocation
Long -Term
Expected Real Rate of
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)
The table below presents the City of Tukwila's proportionate share of the net pension liability calculated using the
discount rate of 7.4 percent, as well as what the City of Tukwila's proportionate 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
(6.4%)
Current Discount
Rate
(7.4%)
1% Increase
(8.4%)
PERS 1
$ 2,167,715
$ 1,272,45
$ 491,174
PERS 2/3
(3,754,983)
(13,180,902)
(20,943,151)
PSERS 2
(9,630)
(61,423)
(102,415)
LEOFF 1
(2,563,809)
(2,847,841)
(3,093,576)
LEOFF 2
(15,389,029)
(24,403,761)
(31,785,028)
Pension Plan Fiduciary Net Position
Detailed information about the State's pension plans' fiduciary 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, 2021, the City of Tukwila reported a total pension asset of $40,871,235 and a total pension liability of
$1,272,465 for its proportionate share of the net pension liabilities as follows:
Liability or
(Asset)
PERS 1
1,272,465
PERS 2/3
(13,180,902)
PSERS 2
(61,423)
LEOFF 1
(2,847,841)
LEOFF 2
(24,403,761)
Firemen's Pension
(377,308)
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: 2021 ACFR
NOTES TO THE FINANCIAL STATEMENTS
LEOFF 1 (Asset)
LEOFF 2 (Asset)
Employer's proportionate share
$ (2,847,841)
$ (24,403,761)
State's proportionate share of the net
pension asset associated with the
employer
(19,262,726)
(15,743,090)
TOTAL
$ (22,110,567)
$ (40,146,851)
At June 30, the City of Tukwila's proportionate share of the collective net pension liabilities was as follows:
Proportionate
Share 6/30/20
Proportionate
Share 6/30/21
Change in
Proportion
PERS 1
0.113704%
0.104195%
-0.009509%
PERS 2/3
0.146296%
0.132317%
-0.013979%
PSERS 2
0.028557%
0.026736%
-0.001821%
LEOFF 1
0.081701%
0.083135%
0.001434%
LEOFF 2
0.438096%
0.420145%
-0.017951%
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are used
as the basis for determining each employer's proportionate share of the collective 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 2021. Historical data was obtained from a
2011 study by the Office of the State Actuary (OSA). In fiscal year 2021, 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. The cumulative retirement benefit payments through fiscal year 2021 were used to
determine the employer allocation amounts and percentages listed under All Other Employers. 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 2021, the state of Washington contributed 39.21376 percent of LEOFF 2 employer contributions
pursuant to RCW 41.26.725 and all other employers contributed the remaining 60.78624 percent of employer
contributions.
The collective net pension liability (asset) was measured as of June 30, 2021, and the actuarial valuation date on
which the total pension liability (asset) is based was as of June 30, 2020, with update procedures used to roll forward
the total pension liability to the measurement date.
Pension Expense
For the year ended December 31, 2021, the City of Tukwila recognized pension expense as follows:
Pension Expense
PERS 1
(608,073)
PERS 2/3
(3,178,376)
PSERS 2
(3,425)
LEOFF 1
(450,859)
LEOFF 2
(2,937,228)
Firemen's Pension
88,479
Total
(7,089,482)
75
CITY OF TUKWILA: 2021 ACFR
NOTES TO THE FINANCIAL STATEMENTS
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2021, the City of Tukwila reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
PERS 1
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
-
-
Net difference between projected and actual investment
earnings on pension plan investments
-
(1,412,010)
Changes of assumptions
-
-
Changes in proportion and differences between contributions
and proportionate share of contributions
_
-
Contributions subsequent to the measurement date
329,003
-
TOTAL
329,003
(1,412,010)
PERS 2/3
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
640,177
(161,585)
Net difference between projected and actual investment
earnings on pension plan investments
-
(11,016,142)
Changes of assumptions
19,261
(936,062)
Changes in proportion and differences between contributions
and proportionate share of contributions
-
(586,815)
Contributions subsequent to the measurement date
554,788
-
TOTAL
1,214,227
(12,700,604)
PSERS 2
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
6,303
(243)
Net difference between projected and actual investment
earnings on pension plan investments
-
(43,997)
Changes of assumptions
10
(6,281)
Changes in proportion and differences between contributions
and proportionate share of contributions
(2,134)
(577)
Contributions subsequent to the measurement date
6,220
-
TOTAL
10,398
(51,098)
76
CITY OF TUKWILA: 2021 ACFR
NOTES TO THE FINANCIAL STATEMENTS
LEOFF 1
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
-
Net difference between projected and actual investment
earnings on pension plan investments
-
(870,191)
Changes of assumptions
-
-
Changes in proportion and differences between contributions
and proportionate share of contributions
_
-
Contributions subsequent to the measurement date
-
-
TOTAL
-
(870,191)
LEOFF 2
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience
1,106,861
(128,972)
Net difference between projected and actual investment-
earnings on pension plan investments
(11,635,889)
Changes of assumptions
10,549
(1,160,644)
Changes in proportion and differences between contributions
and proportionate share of contributions
1,066,829
-
Contributions subsequent to the measurement date
428,434
-
TOTAL
2,612,674
(12,925,505)
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
December 31:
PERS 1
2022
$ (374,042)
2023
(342,758)
2024
(324,092)
2025
(371,118)
2026
-
Thereafter
-
TOTAL
_ $ (1,412,010)
Year ended
December 31:
PERS 2/3
2022
$(3,150,463)
2023
(2,952,539)
2024
(2,810,634)
2025
(2,990,638)
2026
(107,566)
Thereafter
(29,326)
TOTAL
$(12,041,165)
77
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
Year ended
December 31:
PSERS 2
2022
$(11,860)
2023
(11, 241)
2024
(10,683)
2025
(11,817)
2026
(391)
Thereafter
(928)
TOTAL
$(46,920)
Year ended
December 31:
LEOFF 1
2022
$(231,154)
2023
(211,433)
2024
(199,506)
2025
(228,098)
2026
Thereafter
TOTAL
$(870,191)
Year ended
December 31:
LEOFF 2
2022
$(2,978,668)
2023
(2,767,027)
2024
(2,607,121)
2025
(2,951,475)
2026
82,899
Thereafter
480,127
TOTAL
$(10,741,265)
Firemen's Pension System
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.
The firefighter's pension board consists of the following 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 Firefighter's Pension Fund (FPF) as of March 1, 1970. On
that date, the Washington Law Enforcement Officers' and Firefighters' System (LEOFF) was established. FPF is
responsible for paying the pensions of those members retired prior to March 1, 1970 and for providing the "excess
benefit", the excess of FPF formula benefits over the LEOFF benefits. Therefore, the plan is closed to new
members. At December 31, 2020 (the census date), FPF membership consisted of the following:
78
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
Type of Membership Total
Inactive employees, spouses, or beneficiaries currently receiving benefit payments 8
Inactive employees entitled to but not yet receiving benefit payments: 0
Active employees 0
Total 8
Summary of Significant Accounting Policies
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources
related to pension, and pension expense information about the fiduciary net position of the city's Excess of
Retirement benefits Plan (the Plan) and additions to/deductions from the Plan's fiduciary net position have been
determined on the same basis as they are reported by the Plan. For this purpose, the Plan recognizes benefit
payments when due and payable in accordance with eh benefit terms.
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 provide for cost -of -living adjustments to each member's
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 $72,088.
City's Net Pension Liability
The City's total pension liability was valued as of December 31, 2019 and was used to calculate the net pension
liability. The components of the City's net pension liability at December 31, 2020 are as follows:
Total pension liability $ 1,161,888
Less: Plan fiduciary net position (1,539,196)
City's net pension liability $ (377,308)
Plan fiduciary net position as a
percentage of the total pension liability 132.47%
79
CITY OF TUKWILA: 2021 ACFR
NOTES TO THE FINANCIAL STATEMENTS
Deferred Outflows of Resources and Deferred Inflows of Resources
For the report year ended December 31, 2021, the City recognized a pension expense of $88,479. The City reported
deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Net difference between projected and actual investment
earnings on pension plan investments
$34,728
-
Contributions subsequent to the measurement date
71,112
-
Total
$105,840
-
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:
Actuarial Assumptions
Year ended December 31:
Amount
2022
$ 17,471
2023
9,574
2024
5,784
2025
1,899
2026
-
Remaining
-
TOTAL
$ 34,728
The total pension liability was determined by an actuarial valuation as of December 31, 2020, using the following
actuarial assumptions, applied to all periods included in the measurement:
Measurment Date:
Discount Rate
Investment Rate of Return
Inflation
Salary Increases
Mortality Rates
December 31, 2019 December 31, 2020
2.75%
2.75%
2.75%
3.50%
2.00%
2.00%
2.75%
3.50%
Mortality 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 used to measure the total pension liability is 2.00%. 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: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
Schedule of Changes in the City's Net Pension Liability and Related Ratios
Increase / (Decrease)
Plan
Total Pension Fiduciary Net Net Pension
Liability Position Liability
(a) (b) (c) = (a) - (b)
Balance as of report date December 31, 2020 $ 1,123,995 $ 1,504,419 $ (380,424)
Changes for the year:
Service cost -
Interest 29,959 29,959
Changes of benefit terms - - -
Differences between expected and actual experience 1,774 - 1,774
Changes of assumptions 75,346 - 75,346
Contributions
Employer - City's contribution 72,088 (72,088)
Employee contributions Net investment income 31,875 (31,875)
Benefit payments (69,186) (69,186)
Administrative Expenses
Other miscellanious income / (expense)
Net changes 37,893 34,777 3,116
Balance as of report date December 31, 2021 $ 1,161,888 $ 1,539,196 $ (377,308)
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 (1.00%) or one percentage point higher (3.00%) follows:
1 % Decrease Current Rate VA Increase
1.00% 2.00% 3.00%
Total pension liability (Asset) $ 1,276,140 $ 1,161,888 $ 1,063,166
Increase / (decrease) 114,252 (98,722)
% Change 9.83% -8.50%
Net pension liability (Asset)
Increase / (decrease)
% Change
$ (263,056) $ (377,308) $ (476,030)
114,252 (98, 722)
-30.28% 26.16%
81
CITY OF TUKWILA: 2021 ACFR
NOTES TO THE FINANCIAL STATEMENTS
Basis of Valuation
A general summary of the substantive plan used as the basis of the valuation follows.
Retiree Pension Benefit
General
Applicable Statutes
RCW 41.16, 41.18, 41.26
Benefits
Each 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
Member
Eligibility: 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).
Survivor
Eligibility: spouse or child.
Amount of benefit: continuation of the firefighter's benefit. (If spouse — same, plus
additional 5% of salary per child. If no spouse — 30% of salary for first child, 10%
for each additional child. Maximum of 60% of salary).
Duty Disability Retirement Benefit
Member
Eligibility: disabled after six-month waiting period.
Amount of benefit: determined the same as Service Retirement Benefit.
Recovery: restoration to service.
Survivor
See 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.
Survivor
Eligibility: spouse or child
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: 2021 ACFR
NOTES TO THE FINANCIAL STATEMENTS
Retiree Pension Benefit (Continued)
Death Benefit
Duty
Eligibility: spouse or child
Amount of benefit: If spouse — 50% of salary plus an additional 5% of salary per
child; maximum benefit of 60% of salary. If no spouse — 50% of salary to children.
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
Commencement
When a firefighter would have had 25 years of service (RCW 41.18.130) or age 50
(RCW 41.26.090).
Amount of Benefit
2% of salary for each year of service. Other provisions apply, see statutes.
Death While Vested Prior
to Commencement of
Benefits
Payment of firefighter's deferred benefit to spouse or child.
Postretirement Increase
Benefits Payable
Annual increase proportionate to the increase in the Seattle -area CPI. Minimum
increase at least 2% each year.
Benefits Payable Under
LEOFF
Type 1: Escalation by salary in proportion to current salary or rank from which the
firefighter retired.
Type 2: Annual increase proportionate to the increase in the Seattle -area CPI.
Minimum increase at least 2% each year.
Applicability
Type 1 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.
Type 2 applies to all other types of monthly benefits
Minimum Benefit
After 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: 2021 ACFR
NOTES TO THE FINANCIAL STATEMENTS
Participant Summary
December 31, 2019 - Age and service determined as of the census date.
LEOFF Plan 1 (Firemen's Pension) Inactive Participants
Age
g
Service
Retirees
Disabled
Retirees
Surviving
Spouses
Total
<70
0
0
1
1
0
1
0
1
0
2
0
0
0
0
1
1
0
0
0
1
2
4
0
1
70 - 74
75 - 79
80 - 84
85 - 89
90 +
Total
3
3
2
8
The key actuarial assumptions used for the December 31 valuation were:
Assumption
Rates
Actuarial Cost Method
Asset Valuation Method
Valuation Date
Measurement Date
Report Date
Discount Rate
Healthy Mortality
Disabled Mortality
Termination Rates
Disability
Retirement
Cost of Living
Salary Increases
Entry -Age Normal, Level Percentage of Salary
Fair Market Value
December 31, 2019
December 31, 2020
December 31, 2021
The discount rate selected is 2.00%. 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.
RP-2014 mortality table (adjusted to 2006), total dataset, fully
generational with mortaility improvement scale MP-2019.
RP-2014 mortality table (adjusted to 2006), disabled dataset,
fully generational with mortaility improvement scale MP-2019.
n/a
n/a
n/a
2.75%, based on State of Washington 2019 actuarial valuation
report. Used to increase state paid benefits annually.
Salary Increases 3.50%, based on State of Washington 2019
actuarial valuation report. Used to increase FPF benefits
84
CITY OF TUKWILA: 2021 ACFR
NOTES TO THE FINANCIAL STATEMENTS
NOTE 9 — DEFINED BENEFIT OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS
The following table represents the aggregate OPEB amounts for all plans subject to the requirements of GASB
Statement 75 for the year 2021:
Aggregate OPEB Amounts
OPEB Liabilities
$
7,898,399
OPEB Assets
-
Deferred outflows of resources
379,240
Deferrred inflows of resources
-
OPEB expenses/expenditures
650,640
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
approval. Insurance policies for this benefit are underwritten as part of the City's overall insurance program. The
LEOFF I 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 Administrators pays claims for retirees under age 65. The members'
necessary hospital, medical, and nursing care expenses not payable by workers' compensation, Medicare, or
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:
Inactive employees or beneficiaries currently receiving benefits
33
Inactive employees entitled to but not yet receiving benefits
0
Active employees
0
Total
33
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.
85
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
Total OPEB Liability
The City's total OPEB liability was valued as of December 31, 2019, and the total OPEB liability used to calculate
the net OPEB liability was determined by an actuarial valuation as of December 31, 2020.
Assumptions and Other Inputs
The total OPEB liability in the December 31, 2020 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
Measurement Date: December 31, 2019 December 31, 2020
Discount Rate 2.75% 2.00%
Inflation 2.50% 2.50%
Healthcare Cost Trend Rates 5.40% 5.40%
Salary Increases n/a n/a
Mortality Rates Based on SOA Tables
• 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 2.00%. 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, 2020.
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:
1% Decrease (4.40%)
Current Healthcare Cost
Trend Rate (5.4%)
1% Increase (6.40%)
Total OPEB Liability
$
7,172,171
$ 7,898,399
$
8,727,625
Increase (Decrease)
(726,228)
829,226
% Change
-9.2%
10.5%
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 (1.00%) or one percentage point higher (3.00%) follows:
1% Decrease (1.00%)
Current Discount Rate
(2.00%)
1% Increase (3.00%)
Total OPEB Liability
$
8,270,900
$
7,898,399
$
7,193,087
Increase (Decrease)
822,501
(705,312)
% Change
10.4%
-8.9%
86
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
Changes in the Total OPEB Liability — City of Tukwila LEOFF Plan 1
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
Balance as of December 31, 2020 $ 7,622,718 $ $ 7,622,718
Changes:
Service Cost
Interest 204,469 204,469
Changes of Benefit Terms
Difference Between Expected
and Actual Experience (92,607) (92,607)
Changes of Assumptions 538,778 538,778
Contributions
Employer - City's Contribution -
Employer - Implicit Subsidy -
Employee
Net Investment Income
Benefit Payments (374,959) (374,959)
Implicit Rate Subsidy Fulfilled
Administrative Expenses
Net Changes 275,681 275,681
Balance as of December 31, 2021 $ 7,898,399 $ - $ 7,898,399
For the year ended December 31, 2021, the City recognized an OPEB expense of $650,640.
At December 31, 2021, the City reported deferred outflows of resources and deferred inflows of resources related
to OPEB from the following sources:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between expected
and actual experience
$ -
$ -
Changes of assumptions
-
-
Payments subsequent to the
measurement date
379,240
-
Total
$ 379,240
$ -
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Report Year Ending December 31: Amount
2022 $
2023
2024
2025
2026
Remaining
Amount
Current OPEB Liability $ 477,394
Non -Current OPEB Liability 7,421,005
Total OPEB Liability $ 7,898,399
87
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
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. The expected average remaining service lives (EARSL) for the current period
follows. An EARSL less than 1 year indicates immediate recognition (the entire amount is recognized in the current
year) and the recognition period is shown as 1.0 year for calculation purposes to achieve immediate recognition.
EARSL: 0.0 years.
NOTE 10 — LONG-TERM LIABILITIES
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
rating of Aa3 from Moody's Investor Service and AA+ from Standard & Poor's.
General Obligation Bonds outstanding at year-end are as follows:
• 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
undergrounding utilities on 42nd and 53rd Avenues.
• 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 of redevelopment activities within the City's Urban
Renewal area.
88
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
• 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.
• 2021A LTGO bonds were issued to fund a portion of the Public Works Shops Phase 1 project. The City
issued $2,867,300 of general obligation bonds with an interest rate of 1.7% and a final maturity of December
1, 2031.
• 2021B LTGO bonds were issued to refund the outstanding 2014 LTGO bonds that were issued to fund the
acquisition and capital costs of redevelopment activities within the City's Tukwila International Boulevard (TIB)
urban renewal area. The City issued $2,780,900 of general obligation refunding bonds with an interest rate
of 2.7% and a final maturity date of December 1, 2034. This advance refunding was done to reduce total
debt service by $92,553 and resulted in an economic gain of $80,637. (Economic gain is the net present
value of future savings between old and new debt).
• 2021 C LTGO bonds were issued to refund the outstanding 2011 LTGO bonds, which were issued in 2011 to
refund a portion of the 2003 bonds for the City's Arterial Streets program. The City issued $1,072,300 of
general obligation refunding bonds with an interest rate of 1.15% and a final maturity date of December 1,
2023. This advance refunding was done to reduce total debt service by $16,424 and resulted in an economic
gain of $16,334.
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.
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.
89
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
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.
• 2014 loan to install sewer liners in the City's commercial 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,
2021.
CHANGES IN LONG-TERM LIABILITIES SUMMARY - GOVERNMENTAL ACTIVITIES
DUE TO OTHER
GENERAL PRIVATE SPECIAL COMPENSATED OTHER POST EMPLOY- NET PENSION
OBLIGATION PLACEMENT ASSESSMENT ABSENCES GOVERNMENTS MENT BENEFITS LIABILITY
TOTAL
Outstanding 01/01/2021 $ 123,916,000 $ 4,486,326 $ 3,430,000 $ 3,792,533 $ 4,745,772 $ 7,622,718 $ 4,945,187 $ 152,938,537
Added - 6,720,500 - 3,813,966 - - - 10, 534, 466
Retired / redeemed (6,026,000) (595,560) (370,000) (3,841,505) (177,376) 275,681 (3,903,293) (14,638,053)
Outstanding 12/31/2021 $ 117,890,000 $ 10,611,266 $ 3,060,000 $ 3,764,994 $ 4,568,396 $ 7,898,399 $ 1,041,894 $ 148,834,949
Add Premiums, Subtract Discounts
Total Long -Term Liabilities
Debt Service to Maturity
10,163, 810
$ 158, 998, 759
Following are schedules showing the debt service requirements to maturity for the City's long-term debt, excluding
compensated absences, OPEB, and pensions.
Governmental Activities
Year Ended
General Obligation
General Obligation
Due to Other Governments
Special Assessments
December
Bonds
Bonds - Private Placement
31
Principal Interest
Principal Interest
Principal Interest
Principal Interest
Total
2022
$ 3,995,000 $ 4,548,350
$ 3,865,266 $ 227,159
$ 184,606 $ 192,424
$ 375,000 $ 161,063
$ 13,548,868
2023
4,300,000 4,360,600
1,494,000 133,569
191,836 185,040
445,000 161,063
11,271,107
2024
4,825,000 4,158,100
977,000 111,295
199,548 177,366
445,000 143,513
11, 036, 822
2025
5,175,000 3,929,650
477,700 94,853
207,742 169,384
445,000 143,513
10,642,842
2026
5,540,000 3,684,100
486,800 74,444
217,864 158,997
445,000 143,513
10, 750, 717
2027-2031
33,615,000 14,462,025
2,587,700 264,676
1,264,286 620,263
905,000 287,025
54,005,975
2032-2036
43,795,000 7,476,325
722,800 39,355
1,581,442 302,889
- -
53,917,811
2037-2041
16,645,000 866,125
- -
721,072 32,608
- -
18,264,805
Totals
$ 117,890,000 $ 43,485,275
$ 10,611,266 $ 945,350
$ 4,568,396 $ 1,838,971
$ 3,060,000 $ 1,039,688
$ 183,438,945
90
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
CHANGES IN LONG-TERM LIABILITIES - GOVERNMENTAL ACTIVITIES
ITEM
Interest OUTSTANDING OUTSTANDING Due Within
Rates Maturity Authorized 12/31/2020 ISSUED REDEEMED 12/31/2021 One Year
GOVERNMENTAL ACTIVITIES:
Limited General Obligation (LTGO) Bonds Payable:
2011 Refunding Streets (2003 GO) 1.25-4.00 12/01/23 4,620,000 1,545,000 1,545,000
2014 LTGO-Urban Renewal 0.85-4.86 12/01/34 3,850,000 2,941,000 2,941,000 - -
2015 LTGO-Interurban, BAR 2.25-3.00 12/01/35 5,825,000 4,665,000 250,000 4,415,000 260,000
2017 LTGO-42nd & 53rd Streets 3.00-3.50 12/01/37 8,180,000 7,235,000 330,000 6,905,000 340,000
2018 LTGO - Public Works Shops 4.00-5.00 12/01/38 18,365,000 18,365,000 - 18,365,000 730,000
2019LTGO - Public Safety Plan 3.00-5.00 12/01/39 22,830,000 22,830,000 - 22,830,000 885,000
Total LTGO Bonds Payable
63,670,000 57,581,000 5,066,000 52,515,000 2,215,000
Unlimited General Obligation (UTGO) Bonds Payable:
2016 UTGO - Public Safety 4.50-5.00 12/01/35 77,385,000 28,955,000 400,000 28,555,000 1,005,000
2019 UTGO - Public Safety 3.00-5.00 12/01/38 37,770,000 37,380,000 560,000 36,820,000 775,000
Total UTGO Bonds Payable
115,155,000 66,335,000 - 960,000 65,375,000 1,780,000
Private Placement Bonds:
2013 LTGO-MPD Pool Improvement 2.00-4.00 12/01/22 1,000,000 215,326
2017 Refunding Line of Credit 2.60-3.00 12/01/22 2,276,000 2,276,000
2020 Refunding Streets (2010GO) 1.29 12/01/24 1,995,000 1,995,000
2021 Refunding (2011/2014GO) 1.29 12/01/24 6,720,500 - 6,720,500
Total Private Placement Bonds Payable
Issuance premiums
Net Bonds Payable
Due to Other Governments
2019 SCORE Refunding
105,560
490,000
109,766
2,276,000
1,505,000
6,720,500
109,766
2,276,000
495,000
984,500
■ . 11,991,500 4,486,326 6,720,500 595,560 10,611,266 3,865,266
4.00-5.00 01/01/39
10,889,618 725,808 10,163,810 619,171
190,816,500 139,291,944 6,720,500 7,347,369 138,665,076 8,479,437
4,921,702 4,745,772
177,376
4,568,396 184,606
Total Due Other Governments
4,921,702 4,745,772
177,376
4,568,396 184,606
Special Assessment Debt
Klickitat Urban Access Project
3.150-5.375 01/15/29 6,687,500 3,430,000
370,000 3,060,000 375,000
Total Special Assessment Debt
6,687,500 3,430,000 370,000 3,060,000 375,000
Other Post -Employment Benefits Liability
Net Pension Liability
Compensated Absences:
7,622,718
4,945,187
3,792,533
3,808,967
(275,681)
3,903,293
3,836,506
7,898,399
1,041,894
3,764,994
477,394
541,352
Total Governmental Funds $ 202,425,702 $ 163,828,154 $10,529,467 $15,358,863 $ 158,998,759 $ 10,057,789
All governmental activities 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 LIABILITIES SUMMARY - BUSINESS -TYPE ACTIVITIES
1
DIRECT PLACEMENT PUBLIC WORKS
REVENUE TRUST FUND COMPENSATED NET PENSION
BONDS LOANS ABSENCES LIABILITY
TOTAL
Outstanding 01/01/2021 $ 997,413 $ 2,649,119 $ 312,378 $ 940,222 $ 4,899,132
Added - 352,312 - 352,312
Retired / redeemed (157,178) (573,417) (330,270) (709,651) (1,770,517)
Outstanding 12/31/2021 $ 840,235 $ 2,075,702 $ 334,419 $ 230,571 $ 3,480,927
91
CITY OF TUKWILA: 2021 ACFR
NOTES TO THE FINANCIAL STATEMENTS
Debt Service to Maturity
Following are schedules showing the debt service requirements to maturity for the City's long-term debt, excluding
compensated absences and net pension liability.
Business -Type Activities
Year Ended
Direct Placement Revenue
Public Works Trust Fund
December
Bonds
Loans
31
Principal Interest
Principal Interest
Total
2022
$ 162,531 $ 19,662
$ 599,468 $ 10,379
$ 792,039
2023
162,560 15,858
573,417 7,381
759,217
2024
167,363 12,054
573,417 4,514
757,349
2025
171,830 8,138
41,175 1,647
222,790
2026
175,951 4,117
41,175 1,441
222,684
2027-2031
- -
205,875 4,118
209,992
2032-2036
- -
41,175 206
41,381
Totals
$ 840,235 $ 59,829
$ 2,075,702 $ 29,685
$ 3,005,452
CHANGES IN LONG-TERM LIABILITIES - BUSINESS -TYPE ACTIVITIES
ITEM
Interest
OUTSTANDING
OUTSTANDING Due Within
Rates Maturity Authorized 12/31/2020 ISSUED REDEEMED 12/31/2021 One Year
BUSINESS -TYPE ACTIVITIES:
Direct Placement Revenue Bonds
2015 Water/Sewer/SWM Refunding 2.34 12/01/26 1,742,527 997,413
157,178
840,235 162,531
Total Bonds Payable
1,742,527 997,413
157,178
840,235 162,531
Public Works Trust Fund Loans:
2003 Loan-Water/Sewer 0.50 06/01/21 273,870 14,454 14,454 14,454
2003 Loan -Surface Water 0.50 06/01/21 219,725 11,597 - 11,597 11,597
2004 Loan-Water/Sewer 0.50-2.00 06/01/24 5,016,000 1,091,545 272,886 818,659 272,886
2004 Loan -Surface Water 0.50-2.00 06/01/24 684,000 148,847 37,212 111,635 37,212
2004 Loan -Surface Water 1.00 06/01/24 4,196,056 888,577 222,144 666,432 222,144
2014 Loan -Sewer 0.5 06/01/32 750,000 494,100 - 41,175 452,925 41,175
Total Public Works Trust Fund Loans
11,139,651 2,649,119
Net Pension Liability 940,222
Compensated Absences
573,417
2,075,702 599,468
709,651 230,571
312,378 358,128 336,086 334,419 32,285
Total Business -Type Activities $ 12,882,178 $ 4,899,132 $ 358,128 $ 1,776,333 $ 3,480,927 $ 794,284
TOTAL ALL FUNDS $ 215,307,880 $ 168,727,286 $10,887,595 $17,135,195 $ 162,479,686 $ 10,852,073
92
CITY OF TUKWILA: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
LONG-TERM LIABILITIES RECONCILIATION
Governmental Business -Type Balance
Activities Activities 12/31/2021
General Obligation Bonds
General Obligation Bonds
- Private Placement
Special assessment bonds
Revenue Bonds - Direct Placement
Public Works Trust Fund loans
Due to Other Governments
Employee leave benefits
Net Premiums/Discounts
Other Post -Employment Benefits
Net Pension Liability
$ 117, 890, 000 $ - $117, 890, 000
10,611,266
3,060,000
4,568,396
3,764,994
10,163,810
7,898,399
1,041,894
10, 611, 266
3,060,000
840,235 840,235
2,075,702 2,075,702
4,568,396
334,419 4,099,413
10,163,810
7,898,399
230,571 1,272,465
Total Tong -term debt $ 158,998,759 $ 3,480,927 $ 162,479,686
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, 2021, the debt limits for the City were as follows:
Item
Without a Vote
1.5%
2.5%
With a Vote of the People
5.0% 7.5%
Legal Limit $ 120,163,380 $ 200,272,301 $ 400,544,602 $600,816,902
Outstanding Net Indebtedness 73,290,076 138,665,076 138,665,076 138,665,076
Margin Available $ 46,873,305 $ 61,607,225 $ 261,879,526 $462,151,827
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 City's financial statements. At December 31, 2021,
$1,055,000 of the defeased bonds were outstanding.
Long-term Liabilities other than debt
Claims are paid from one or more funds based on the nature of the transaction. Employees' compensable leave is
the City's liability for all unused vacation, 25% of unused 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
same funding source(s) from which the employee's salary or wage compensation was paid.
The City does not report a liability for termination benefits because it is not reasonably estimable.
93
CITY OF TUKWILA: 2021 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 improve congestion within the City's Urban Center. The
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 eighth of 15
annual installments for the assessments was due by October 16, 2021.
As of December 31, 2021, 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 2022.
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, 2021 is $0 for its tax-exempt bond
issues subject to the Tax Reform Act.
Unused Lines of Credit
The 2017 refunding bond was issued to pay off the 2014 general obligation bond in the form of a line -of -credit,
which was utilized to purchase property and pay for capital costs of redevelopment activities within the City's Urban
Renewal area. This is the City's only line of credit and there is no portion of this line of credit that is unused.
Terms Specified in Debt Agreements
The City's bonds are not subject to acceleration upon the event 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: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 11 — COMMITMENTS
Construction Commitments. As of December 31, 2021, contractual obligations to contractors for construction
projects total $10,083,220.
Governmental Activities
42nd Avenue South Bridge Replacement
Public Safety Plan
West Valley Highway
Teen/Senior Intergenerational Center
42nd Ave Bridge Repairs
Total Governmental Activities
Remaining
Commitment
$ 2,191,408
2,243,032
465,074
248,857
180,564
$ 5,328,935
Remaining
Business -Type Activities Projects Commitment
Riverton Creek Flapgate Removal $ 1,769,726
Sewer Lift Station No. 2 Upgrades 1,732,667
Water and Sewer Comp Plan Update 515,975
Other Utility related projects 300,247
Macadam Rd S Water Upgrades 204,023
CBD Sewer Rehab 121,504
East Marginal Way Stormwater Outfalls 58,821
Chinook Wind 51,322
Total Business -Type Activities $ 4,754,285
Total Construction Commitments $ 10,083,220
NOTE 12 — POTENTIAL POLLUTION REMEDIATION AND OTHER LIABILITIES
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,
Compensation and Liability Act ("CERCLA") for sediment 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
estimate of the City's potential CERCLA liability at this time, the relatively small size of the City's storm water system
within the Lower Duwamish Waterway Superfund site area, as well as the City's recent ownership of the system,
which began in 1989, means the City's share of liability should be low compared to other liable parties. A multi-
year confidential process to allocate Duwamish Waterway cleanup costs by the major liable parties remains on-
going. Once that process is completed and communicated to the City, which could occur in the fourth quarter of
2022, 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: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
NOTE 13 — RISK MANAGEMENT
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 166
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 $16 million in limits above the self -insured layer is provided by
reinsurance. Total limits are $20 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
the members' deductible to $750,000, for all perils other than flood and earthquake, and insured above that to $400
million per occurrence subject to aggregates and sublimits. Automobile physical damage coverage is self -funded
from the members' deductible to $250,000 and insured 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 additional revenue by investment of WCIA's assets
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 amount. Traveler's insures boiler machinery and provides
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
$45,276 in unemployment in 2021. 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: 2021 ACFR NOTES TO THE FINANCIAL STATEMENTS
premiums and claims. Liabilities include an actuarially determined amount for claims that have been incurred but
not reported (IBNR's) and a contingency 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 2021 and 2020.
SUMMARY OF HEALTH CARE CLAIM LIABILITIES
Active Employees Retired Employees LEOFF I
2021 2020 2021 2020
Claim Liabilities at Beginning of Year
Claim expenses:
Current year and changes in estimates
Claim payments and expenses
Claim Liabilities at End of Year
NOTE 14 — COVID 19
$ 1,662,500 $ 1,075,210 $ 137,500 $ 164,041
6,509,319 6,444, 903 276,071 304,483
(6,671,819) (5,857,613) (331,071) (331,024)
$ 1,500,000 $ 1,662,500 $ 82,500 $ 137,500
In February 2020, the Governor of the State of Washington declared a state of emergency in response to the spread
of COVID-19. Precautionary measures to slow the spread of the virus continued throughout 2021. These measures
included limitations on business operations, public events, gatherings, travel, and in -person interactions. While
limitations have been put in place, the City continues to operate all major functions and meet public mandates.
The City proactively implemented safety measures and operations have continued with some staff working remotely
and new procedures have been put into place. Management continues to monitor the situation for any operational
or financial effects and is ready to respond appropriately as needed.
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. The City continues to
adapt to the changing conditions.
NOTE 15 — SUBSEQUENT EVENTS
The City is in the process of selling the George Long fleet maintenance facility to King County for river shoreline
habitat and flood control. The sale price is estimated to be between $4.0 million and $4.45 million, depending on
whether there are costs for remediating environmental contamination. Estimated closing escrow in the fall of 2022.
97
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes $ 45,038,200 $ 46,038,200 $ 48,106,884 $ 2,068,684
Licenses and permits 6,071,100 6,071,100 5,341,662 (729,438)
Intergovernmental 3,157,055 5,488,247 5,815,741 327,494
Charges for services 2,822,700 3,282,700 2,560,452 (722,248)
Fines and Forefitures 234,775 348,775 302,358 (46,417)
Investment earnings 147,329 147,329 113,159 (34,170)
Miscellaneous 146,000 102,000 227,987 125,987
Total Revenues 57,617,159 61,478,351 62,468,243 989,892
EXPENDITURES:
Current:
General Government
Public safety
Transportation
Natural and economic environment
Culture and recreation
Capital outlay
Total Expenditures
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
8,369,897
31,938,342
4,559,517
5,389,609
4,245,878
518,665
8,608,408
33,206,706
4,792,569
5,710,104
4,558,738
518,665
8,320,068
31,972,349
4,577,425
5,372,912
4,219,045
136,506
288,340
1,234,357
215,144
337,192
339,693
382,160
55,021,908 57,395,190 54,598,304 2,796,886
2,595,251 4,083,161
7,869,939 3,786,778
2,268,817 1,858,817 1,855,001 (3,816)
(5,462,760) (5,433,545) (5,405,587) 27,957
(3,193,943) (3,574,728) (3,550,587) 24,141
(598,692) 508,433 4,319,353 3,810,919
18,733,328 19,129,672 19,422,170 292,498
$ 18,134,637 $ 19,638,106 $ 23,741,523 $ 4,103,417
98
CITY OF TUKWILA: 2021 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
proprietary and fiduciary funds are "management budgets" and are not legally required to be reported and, as such,
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.
The City of Tukwila's budget procedures are mandated by RCW 35A.33. The steps in the budget process are as
follows:
1) Prior to November 1 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
General Government
Public Safety
Transportation
Natural and Economic
Environment
Culture and Recreation
Includes administration, finance, municipal court, attorney,
and city clerk activities.
Includes all police and fire activities.
Includes all residential and arterial street maintenance and
construction.
Reflects all planning and building inspection as well as
environmental and community services.
Includes expenditures related to parks and recreational
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: 2021 ACFR
REQUIRED SUPPLEMENTAL INFORMATION
COST SHARING MULTIPLE EMPLOYER DEFINED BENEFIT PENSION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
PERS 1
Fiscal Year Ending
Employers
proportion of the
net pension liability
(asset)
Employer's
proportionate share of
the net pension liability
State's proportionate
share of the net
pension liability
(asset) associated
with the employer
Total: Proportionate
share of the net
pension liability (asset)
Employer's covered
payroll
Employer's
proportionate
share of the net
pension liability
as a percentage of
covered payroll
Plan fiduciary
net position as a
percentage of
the total pension
liability
June 30, 2015
June 30, 2016
June 30, 2017
June 30, 2018
June 30, 2019
June 30, 2020
June 30, 2021
0.135736 %
0.131354%
0.127058%
0.122630%
0.121291%
0.113704%
0.104195%
$ 7,100,255
7,054,328
6,029,001
5,476,697
4,664,070
4,014,365
1,272,465
$ 7,100,255
7,054,328
6,029,001
5,476,697
4,664,070
4,014,365
1,272,465
$ 15,561,015
15,736,921
16,022,842
16,327,082
16,858,481
17,063,647
15,827,030
45.63%
44.83%
37.63%
33.54%
27.67%
23.53%
8.04%
59.10%
57.03%
61.24%
63.22%
67.12%
68.64%
88.74%
PERS 2/3
Fiscal Year Ending
Employers
proportion of the
net pension liability
(asset)
Employer's
proportionate share of
the net pension liability
State's proportionate
share of the net
pension liability
(asset) associated
with the employer
Total: Proportionate
share of the net
pension liability (asset)
Employer's covered
payroll
Employer's
proportionate
share of the net
pension liability
as a percentage of
covered payroll
Plan fiduciary
net position as a
percentage of
the total pension
liability
June 30, 2015
June 30, 2016
June 30, 2017
June 30, 2018
June 30, 2019
June 30, 2020
June 30, 2021
0.173592%
0.166622%
0.161787%
0.156335%
0.154903%
0.146296%
0.132317%
$ 6,202,541
8,389,286
5,621,325
2,669,281
1,504,635
1,871,042
(13,180,902)
$ 6,202,541
8,389,286
5,621,325
2,669,281
1,504,635
1,871,042
(13,180,902)
$ 15,406,589
15,579,718
15,861,514
16,228,608
16,843,895
17,053,352
15,827,030
40.26%
53.85%
35.44%
16.45%
8.93%
10.97%
-83.28%
89.20%
85.82%
90.97%
95.77%
97.77%
97.22%
120.29%
PSERS
Fiscal Year Ending
Employers
proportion of the
net pension liability
(asset)
Employer's
proportionate share of
the net pension liability
State's
proportionate share
of the net pension
liability (asset)
associated with the
employer
Total: Proportionate
share of the net
pension liability (asset)
Employer's covered
payroll
Employer's
proportionate
share of the net
pension liability
as a percentage of
covered payroll
Plan fiduciary
net position as a
percentage of
the total pension
liability
June 30, 2015
June 30, 2016
June 30, 2017
June 30, 2018
June 30, 2019
June 30, 2020
June 30, 2021
0.052748% $
0.048428%
0.455650%
0.025080%
0.032158%
0.028557%
0.026736%
9,628
20,581
8,928
311
(4,182)
(3,929)
(61,423)
9,628
20,581
8,928
311
(4,182)
(3,929)
(61,423)
$ 154,426
157,203
161,328
98,474
147,556
175,312
181,231
6.23%
13.09%
5.53%
0.32%
-2.83%
-2.24%
-33.89%
95.08%
90.41%
96.26%
99.79%
101.85%
101.68%
123.67%
LEOFF 1
Fiscal Year Ending
Employer's
proportion of the Employer's
net pension liability proportionate share of
(asset) the net pension liability
State's proportionate
share of the net
pension liability
(asset) associated
with the employer
Total: Proportionate
share of the net
pension liability (asset)
Employees covered
payroll
Employer's
proportionate
share of the net
pension liability
as a percentage of
covered payroll
Plan fiduciary
net position as a
percentage of
the total pension
liability
June 30, 2015
June 30, 2016
June 30, 2017
June 30, 2018
June 30, 2019
June 30, 2020
June 30, 2021
0.077944%
0.077890%
0.082086%
0.083934%
0.082668%
0.081701%
0.083135%
$ (939,397)
(802,490)
(1,245,425)
(1,523,823)
(1,634,025)
(1,542,931)
(2,847,841)
(5,428,021)
(8,424,025)
(10,307,102)
(11,052,506)
(10,436,345)
(19,262,726)
$ (939,397) $
(6,230,511)
(9,669,450)
(11,830,925)
(12,686,531)
(11,979,276)
(22,110,567)
76,144
-1233.71%
n/a
n/a
n/a
n/a
n/a
n/a
127.36%
123.74%
135.96%
144.42%
148.78%
146.88%
187.45%
LEOFF 2
Fiscal Year Ending
Employer's
proportion of the
net pension liability
(asset)
Employer's
proportionate share of
the net pension Ilability
State's
proportionate share
of the net pension
liability (asset)
associated with the
employer
Total: Proportionate
share of the net
pension Ilability (asset)
Employer's covered
payroll
Employer's
proportionate
share of the net
pension liability
as a percentage of
covered payroll
Plan fiduciary
net position as a
percentage of
the total pension
liability
June 30, 2015
June 30, 2016
June 30, 2017
June 30, 2018
June 30, 2019
June 30, 2020
June 30, 2021
0.519159%
0.510663%
0.503269%
0.480347%
0.473755%
0.438096%
0.420145%
$ (5,335,916)
(2,970,169)
(6,983,743)
(9,752,091)
(10,975,449)
(8,936,519)
(24,403,761)
$ (2,123,832)
(1,936,334)
(4,530,224)
(6,314,295)
(7,106,396)
(5,714,227)
(15,743,090)
$ (7,459,748)
(4,906,503)
(11,513,967)
(16,066,386)
(18,081,845)
(14,650,746)
(40,146,851)
$ 15,113,237
15,480,062
15,743,133
15,759,700
16,581,465
16,552,520
16,037,465
-49.36%
-31.70 %
-73.14%
-101.95 %
-109.05%
-88.51 %
-250.33%
111.67%
106.04%
113.36%
118.50%
119.43%
115.83%
142.00%
100
CITY OF TUKWILA: 2021 ACFR
REQUIRED SUPPLEMENTAL INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
PERS 1
Fiscal Year Ending
Statutorily or
contractually required
contributions
Less: Contributions in
relation to the
statutorily or
contractually required
contributions
Covered
Contribution Employee
deficiency (excess) Payroll
Contributions as a
percentage of covered
payroll
December31, 2015
December 31, 2016
December 31, 2017
December 31, 2018
December 31, 2019
December 31, 2020
December 31, 2021
$ 686,881
752,418
789,712
846,714
854,217
740,837
705,904
$
(686,881) $
(752,418)
(789,712)
(846,714)
(854,217)
(740,837)
(705,904)
$ 15,654,255
15, 777, 881
16,153, 755
16,742,206
17,030,131
16,004,087
16,849,796
4.39%
4.77%
4.89%
5.06%
5.02%
4.63%
4.19%
PERS 2/3
Fiscal Year Ending
Statutorily or
contractually required
contributions
Less: Contributions in
relation to the
statutorily or
contractually required
contributions
Covered
Contribution Employee
deficiency (excess) Payroll
Contributions as a
percentage of covered
payroll
December 31, 2015
December 31, 2016
December 31, 2017
December 31, 2018
December 31, 2019
December 31, 2020
December 31, 2021
$ 873,248
972,612
1,090,715
1,245,790
1,310,892
1,267,208
1,160,770
$
(873,248)
(972,612)
(1,090,715)
(1,245,790)
(1,310,892)
(1,267,208)
(1,160,770)
$
$ 15,498,171
15,616,400
16,024,008
16,629,084
17,014,243
16, 000,110
16,849,796
5.63%
6.23%
6.81%
7.49%
7.70%
7.92%
6.89%
PSERS
Fiscal Year Ending
Statutorily or
contractually required
contributions
Less: Contributions in
relation to the
statutorily or
contractually required
contributions
Covered
Contribution Employee
deficiency (excess) Payroll
Contributions as a
percentage of covered
payroll
December 31, 2015
December 31, 2016
December 31, 2017
December 31, 2018
December 31, 2019
December 31, 2020
December 31, 2021
$
10,105
10,642
8,612
7,768
12,191
12,039
12,464
$
(10,105)
(10,642)
(8,612)
(7,768)
(12,191)
(12,039)
(12,464)
$
$ 156,084
161,481
129,747
113,122
170,971
174,773
189,293
6.47%
6.59%
6.64%
6.87%
7.13%
6.89%
6.58%
LEOFF 2
Fiscal Year Ending
Statutorily or
contractually required
contributions
Less: Contributions in
relation to the
statutorily or
contractually required
contributions
Covered
Contribution Employee
deficiency (excess) Payroll
Contributions as a
percentage of covered
payroll
December 31, 2015
December 31, 2016
December 31, 2017
December 31, 2018
December 31, 2019
December 31, 2020
December 31, 2021
$ 776,719
787,110
815,548
855,040
868,767
831,485
813,295
$
(776,719)
(787,110)
(815,548)
(855,040)
(868,767)
(831,485)
(813,295)
$
$ 15,380,541
15,586,296
15, 860, 571
16,132,860
16,611,112
16,054,647
16,265,695
5.05%
5.05%
5.14%
5.30%
5.23%
5.18%
5.00%
101
CITY OF TUKWILA: 2021 ACFR REQUIRED SUPPLEMENTAL INFORMATION
FIREMEN'S PENSION TRUST FUND
Schedule of Changes in the City's Net Pension Liability and Related Ratios
Total Pension Liability 2014 2015 2016 2017 2018 2019 2020 2021
Service cost - - -
Interest 50,098 49,716 49,332 38,796 - 39,385 42,542 29,959
Changes of benefit terms
Difference between expected & actual
experience (2,442) (311,190) (2,810) 17,256 (31,990) 1,774
Changes of assumptions - (62,728) (177,772) (51,490) (3,148) 75,346
Benefits payments, included refunds of
employee contributions (61,863) (58,277) (59,988) (69,186) 17,700 (80,468) (60,172) (69,186)
Net change in total pension liability (11,765) (11,003) (384,574) (30,390) (162,882) (75,317) (52,768) 37,893
Total pension liability -beginning 1,852,693 1,840,928 1,829,925 1,445,351 1,414,961 1,252,079 1,176,762 1,123,995
Total pension liability -ending (a) 1,840,928 1,829,925 1,445,351 1,414,961 1,252,079 1,176,762 1,123,994 1,161,888
Plan Fiduciary Net Position
Contributions - employer 64,114 63,590 66,360 68,848 (139) 71,286 68,569 72,088
Contributions - employee - - - -
Net investment income 1,805 2,667 7,988 39,157 (39,477) 27,770 34,948 31,875
Benefit payments, including refunds of
employee contributions (61,863) (58,277) (59,988) (69,186) 17,700 (80,468) (60,172) (69,186)
Administrative expense - (4,500) (4,500) (4,624) 1,124
Other 2,716
Net change in plan fiduciary net
position 4,056 3,480 9,860 34,195 (18,076) 18,588 43,345 34,777
Plan fiduciary net position -
beginning 1,408,970 1,413,026 1,416, 506 1,426, 366 1,460, 561 1,442,485 1,461,073 1,504,419
Plan fiduciary net position - ending
(b) 1,413,026 1,416,506 1,426, 366 1,460, 561 1,442,485 1,461, 073 1,504,418 1,539,196
City's net pension liability - ending
(a) - (b) 427,902 413,419 18,985 (45,600) (190,406) (284,311) (380,424) (377,308)
Plan fiduciary net position as a
percent of total pension liability 76.76% 77.41% 98.69% 103.22% 115.21% 124.16% 133.85% 132.47%
Covered payroll - -
City net pension liability as a
percent of covered employee
payroll n/a n/a n/a n/a n/a n/a n/a n/a
102
CITY OF TUKWILA: 2021 ACFR REQUIRED SUPPLEMENTAL INFORMATION
Schedule of Employer Contributions
Statutorily
Determined
Fiscal Year Ending Contribution
Less: Contributions
in Relation to the
Statutorily
Determined
Contribution
Contribution
Deficiency Covered
(Excess) Payroll
Contribution as a
Percentage of
Covered Payroll
December 31, 2012
December 31, 2013
December 31, 2014
December 31, 2015
December 31, 2016
December 31, 2017
December 31, 2018
December 31, 2019
December 31, 2020
December 31, 2021
52,249
56,962
64,114
63,590
66,360
64,223
52,249
56,962
64,114
63,690
66,360
68,848
(139)
71,286
68,569
72,088
Contributions are a portion of State Fire Insurance Premiums.
(100)
(4,625)
139
(71,286)
(68,569)
(72,088)
Schedule of Investment Returns
Schedule of Investment Returns
Annual money -weighted rate of
return, net of investment
expense
2012
0.20%
2013
0.17%
2014
0.13%
2015
0.19%
2016
0.56%
2017
2.75%
2018
-2.68%
2019
1.93%
2020
2.39%
2021
2.12%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
103
CITY OF TUKWILA: 2021 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, 2021
Last 10 Fiscal Years*
Total OPEB liability - beginning
Service cost
Interest
Changes in benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments
Other changes
Total OPEB liability - ending
Covered -employee payroll
Total OPEB liability as a % of covered payroll
2018
2019
2020
$26,383,115 $14,694,242 $12,700,180
469,303
471,554
(3,780,437) (199,491)
(7,947,448) (1,896,319)
(430,291) (369,806)
462,935
(5,203,755)
107,644
(444,286)
14,694,242 12,700,180 7,622,718
n/a
n/a
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.
n/a
2021
$ 7,622,718
204,469
(92,607)
538,778
(374,959)
7,898,399
n/a
104
CITY OF TUKWILA: 2021 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.
• Hotel/Motel Tax Fund — Established to account for the proceeds of a 1 % special excise tax on overnight lodging
in Tukwila. This tax provides resources to support tourism development and promotion activities in Tukwila.
• Drug Seizure Fund — Accounts for monies and proceeds from 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.
• Special Assessment Bonds Guaranty Fund — Holds reserve 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.
• Unlimited Tax General Obligation 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.
• Limited Tax General Obligation Debt Service Fund — Accounts for principal and interest payments on bonds for
all debt issues except for voter approved bonds.
Capital Projects 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.
• Residential Street — Established in accordance with RCW 35A.37.010 to account for maintenance and
improvement of the City's residential streets. Major sources 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.
• Land Acquisition, Recreation, and Park Development — Accounts for the acquisition of land, development of
land, and construction of park facilities.
• Facilities (Urban Renewal) — Established in 1988, this fund accounts for costs associated with property owned
by the City that will be utilized for redevelopment or renewal purposes.
105
CITY OF TUKWILA: 2021 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
• General Government Improvements — This fund was established in 1992 to provide funding for minor capital
improvements not related to parks, land acquisition, or major building replacements.
• Fire Improvements — This fund is to be used for the 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: 2021 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2021
Total Total Total Total
Special Revenue Debt Service Capital Projects Governmental
Funds Funds Funds Funds
ASSETS:
Cash and cash equivalents $ 2,214,345 $ 1,037,503 $ 7,469,423 $ 10,721,270
Taxes receivable 100,800 71,504 44,581 216,885
Due from other governmental units 10,680 - - 10,680
Restricted Assets:
Capital assets held for resale - 2,007,410 2,007,410
Total Assets 2,418,436 1,109,007 9,521,413 13,048,856
LIABILITIES AND FUND BALANCES:
Current liabilities
Accounts payable
Accrued w ages and benefits
Customer deposit
Total Liabilities
Deferred inflows of resources
Unavailable revenue -property tax
Total Deferred Inflows of Resources
Fund balances:
Restricted
Assigned
Assigned - 1% arts
Total Fund balances
91,300
2,949
14,548
239,152
1,405
529,501
330,452
4,354
544,049
108,797
770,059 878,855
57,251 - 57,251
57,251 - 57,251
2,309,639 1,051,756
2,267,734
6,221,132
262,490
5,629,129
6,221,132
262,490
2,309,639 1,051,756
8,751,355 12,112,750
Total Liabilities and Fund Balances $ 2,418,436 $ 1,109,007
$ 9,521,413 $ 13,048,856
107
CITY OF TUKWILA: 2021 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, 2021
Total Total Total Total
Special Revenue Debt Service Capital Projects Governmental
Funds Funds Funds Funds
REVENUES:
Taxes $ 540,329 $ 3,906,139 $ 1,108,591 $ 5,555,059
Charges for services 101,963 101,963
Intergovernmental 82,061 294,508 376,568
Investment earnings 1,942 17,974 6,123 26,039
Miscellaneous 300,000 - 300,000
Total Revenues 924,331 3,924,113 1,511,186 6,359,629
EXPENDITURES:
Current:
General government - 135,315 135,315
Public safety 76,759 - 76,759
Transportation - 189,781 189,781
Natural and economic environment 522,973 21,329 544,302
Culture and recreation - 394,989 394,989
Debt service
Principal 2,630,560 2,630,560
Interest - 4,919,842 - 4,919,842
Capital Outlay 58,881 2,499 61,380
Total Expenditures 658,614 7,550,403 743,913 8,952,929
Excess (deficiency) of revenues 265,717 (3,626,290) 767,273 (2,593,300)
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES):
Transfers in - 3,646,679 885,750 4,532,429
Transfers out - - (961,062) (961,062)
Issuance of Debt - 3,870,500 - 3,870,500
Gain/(loss) on sale of assets held for resale - - 867,500 867,500
Payment of refunded debt - (3,991,000) - (3,991,000)
Total Other Financing Sources And Uses - 3,526,179 792,188 4,318,367
Net change in fund balances 265,717 (100,111) 1,559,461 1,725,067
Fund balances - beginning 2,043,922 1,151,867 7,191,893 10,387,683
Fund Balances - Ending
$ 2,309,639 $ 1,051,756
$ 8,751,355 $ 12,112,750
108
CITY OF TUKWILA: 2021 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2021
Total
Special Revenue
Hotel/Motel Tax Drug Seizure Funds
ASSETS:
Cash and cash equivalents $ 1,723,415 $ 490,930 $ 2,214,345
Taxes receivable 100,800 - 100,800
Due from other governmental units 10,680 - 10,680
Restricted Assets:
Cash and cash equivalents 92,611 92,611
Total Assets 1,834,895 583,541 2,418,436
LIABILITIES AND FUND BALANCES:
Current liabilities
Accounts payable
Accrued wages and benefits
Customer deposit
Total Liabilities
89,580 1,720 91,300
2,949 - 2,949
14,548 14,548
92,529
16,268 108,797
Fund balances:
Restricted 1,742,366 567,273 2,309,639
Total Fund balances 1,742,366 567,273 2,309,639
Total Liabilities and Fund Balances $ 1,834,895 $ 583,541 $ 2,418,436
109
CITY OF TUKWILA: 2021 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, 2021
Total
Special Revenue
Hotel/Motel Tax Drug Seizure Funds
REVENUES:
Taxes $ 540,329 $
Intergovernmental 10,680
Investment earnings 1,942
Miscellaneous -
71,381
300,000
$ 540,329
82,061
1,942
300,000
Total Revenues 552,950
EXPENDITURES:
Current:
Public safety
Natural and economic environment
Capital Outlay
Total Expenditures
Excess (deficiency) of revenues
Over (Under) Expenditures
371,381 924,331
- 76,759 76,759
522,973 - 522,973
- 58,881 58,881
522,973
135,641 658,614
29,977
Net change in fund balances 29,977
Fund balances - beginning 1,712,389
Fund Balances - Ending
235,740 265,717
235,740 265,717
331,534 2,043,922
$ 1,742,366 $ 567,273 $ 2,309,639
110
CITY OF TUKWILA: 2021 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR DEBT SERVICE FUNDS
DECEMBER 31, 2021
Special
Assessment
Bonds Guaranty
Fund
Unlimited Tax Limited Tax General Total Nonmajor
General Obligation Obligation Debt Debt Service
Debt Service Fund Service Fund Funds
ASSETS:
Cash and cash equivalents $ 738,462 $ 299,041 $ - $ 1,037,503
Taxes receivable - 71,504 71,504
Total Assets 738,462 370,545 1,109,007
LIABILITIES AND FUND BALANCES:
Total Liabilities
Deferred inflow s of resources
Unavailable revenue -property tax
Total Deferred Inflows of Resources
Fund balances:
Restricted
Total Fund balances
57,251 - 57,251
57,251 57,251
738,462 313,293 1,051,756
738,462 313,293 1,051,756
Total Liabilities and Fund Balances $ 738,462 $ 370,545 $ $ 1,109,007
111
CITY OF TUKWILA: 2021 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, 2021
Special
Assessment
Bonds Guaranty
Fund
Unlimited Tax Limited Tax Total Nonmajor
General Obligation General Obligation Debt Service
Debt Service Fund Debt Service Fund Funds
REVENUES:
Taxes $ $ 3,906,139 $ $ 3,906,139
Investment earnings 17,650 171 154 17,974
Total Revenues 17,650 3,906,309 154 3,924,113
EXPENDITURES:
Debt service
Principal 960,000 1,670,560 2,630,560
Interest - 2,642,975 2,276,867 4,919,842
Total Expenditures 3,602,975 3,947,428 7,550,403
Excess (deficiency) of revenues
Over (Under) Expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Issuance of Debt
Payment of refunded debt
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
17,650
303,334 (3,947,274)
3,646,679
3,870,500
(3,991,000)
(3,626,290)
3,646,679
3,870,500
(3,991,000)
3,526,179 3,526,179
17,650 303,334 (421,095) (100,111)
720,813 9,959
421,095 1,151,867
Fund Balances - Ending $ 738,462 $ 313,293 $ $ 1,051,756
112
CITY OF TUKWILA: 2021 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING BALANCE SHEET
NON -MAJOR CAPITAL PROJECTS FUNDS
DECEMBER 31, 2021
Land Acq. General Total Nonmajor
Residential Rec & Park Urban Government Fire Capital Projects
Street Development Renew al Improvements Improvements Funds
ASSETS:
Cash and cash equivalents
Taxes receivable
Restricted Assets:
Capital assets held for resale
Total Assets
$ 1,106,865 $ 2,948,384 $ 2,663,781 $ 750,393 $
44,581 -
2,007,410
$ 7,469,423
44,581
2,007,410
1,151,446 2,948,384 4,671,191 750,393 - 9,521,413
LIABILITIES AND FUND BALANCES:
Current liabilities
Accounts payable 121,155 51,394 1,520 65,083 239,152
Accrued wages and benefits 260 1,145 - - 1,405
Customer deposit 322,224 - 200,000 7,277 529,501
Total Liabilities 443,640 52,539 201,520 72,360 770,059
Fund balances:
Restricted - 2,267,734 - 2,267,734
Assigned 707,806 365,622 4,469,671 678,033 6,221,132
Assigned - 1% arts - 262,490 - - 262,490
Total Fund balances 707,806 2,895,845 4,469,671 678,033 8,751,355
Total Liabilities and Fund Balances $ 1,151,446 $ 2,948,384 $ 4,671,191 $ 750,393 $ $ 9,521,413
113
CITY OF TUKWILA: 2021 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, 2021
Land Acq. General Total Nonnrajor
Residential Rec & Park Urban Government Fire Capital Projects
Street Development Renew al Improvements Improvements Funds
REVENUES:
Taxes $ $ 1,108,591 $ $ $ - $ 1,108,591
Charges for services - 76,580 25,383 101,963
Intergovernmental 294,508 - - 294,508
Investment earnings 667 2,128 2,629 700 6,123
Total Revenues 295,174 1,187,300 2,629 700 25,383 1,511,186
EXPENDITURES:
Current:
General government 135,315 - 135,315
Transportation 189,781 - 189,781
Culture and recreation 394,989 - 394,989
Natural and economic environment - - 21,329 - 21,329
Capital Outlay 2,499 - - - - 2,499
Total Expenditures 192,280 394,989 21,329 135,315 - 743,913
Excess (deficiency) of revenues
Over (Under) Expenditures
102,895 792,310 (18,700) (134,615) 25,383 767,273
OTHER FINANCING SOURCES (USES):
Transfers in 100,000 485,750 - 300,000 - 885,750
Transfers out (149,495) (786,184) (25,383) (961,062)
Gain/(loss) on sale of assets held for resale - 867,500 - 867,500
Total Other Financing Sources And Uses 100,000 336,255 81,316 300,000 (25,383) 792,188
Net change in fund balances 202,895 1,128,565 62,617 165,385 1,559,461
Fund balances - beginning 504,912 1,767,280 4,407,054 512,648 - 7,191,893
Fund Balances - Ending $ 707,806 $ 2,895,845 $ 4,469,671 $ 678,033 $ - $ 8,751,355
114
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes $ 1,400,000 $ 1,900,000 $3,051,933 $ 1,151,933
Intergovernmental 3,318,000 1,418,000 1,411,328 (6,672)
Fire Impact Fees 303,000 303,000 251,088 (51,912)
Investment earnings 30,000 30,000 933 (29,067)
Miscellaneous 30,000 30,000 104,100 74,100
Total Revenues 5,081,000 3,681,000 4,819,382 1,138,382
EXPENDITURES:
Current:
Transportation 2,431,000 2,431,000 1,844,895 586,105
Capital outlay 4,434,301 1,334,301 1,893,340 (559,039)
Total Expenditures 6,865,301 3,765,301 3,738,235 27,066
Excess of Revenues And Expenditures (1,784,301)
(84,301) 1,081,147 1,165,448
OTHER FINANCING SOURCES (USES):
Transfers in 1,400,000 1,666,852 1,666,850 (2)
Transfers out - (485,000) (485,000) -
Total Other Financing Sources And Uses 1,400,000 1,181,852 1,181,850 (2)
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
(384,301)
1,327,257
1,097,551
1,419,190
2,262,997
1,419,190
1,165,446
0
$ 942,956 $ 2,516,741 $3,682,187 $ 1,165,446
115
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Special Assessment
Investment earnings
Total Revenues
$ 445,000 $ 445,000 $ 375,889 $ (69,111)
159,000 159,000
151,060 (7,940)
604,000 604,000 526,949 (77,051)
EXPENDITURES:
Debt service:
Principal 445,000 445,000 370,000 75,000
Interest 203,588 203,588 177,713 25,876
Total Expenditures 648,588 648,588 547,713 100,876
Excess of Revenues And Expenditures
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
(44,588) (44,588) (20,763) 23,825
(44,588) (44,588)
692,373 622,572
(20,763) 23,825
622,572 (0)
$ 647,785 $ 577,984 $ 601,809 $ 23,825
116
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes $ 500,000 $ 500,000 $ 567,617 $ 67,617
Fire Impact Fees 300,000 300,000 300,000
Investment earnings 40,000 40,000 1,378 (38,622)
Total Revenues 840,000 840,000 868,995 28,995
EXPENDITURES:
Current:
Public safety
Capital outlay
Total Expenditures
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Sales of capital assets
Transfers in
Transfers out
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
574,000 574,000
725,000 725,000
464,692
2,184, 052
109,308
(1,459,052)
1,299,000 1,299,000
2,648,744 (1,349,744)
(459,000) (459,000)
(1,779,749) (1,320,749)
5,565,000 5,565,000 261,845
300,000 374,750 100,130
(1,668,817) (1,668,817) (1,668,817)
4,196,183 4,270,933 (1,306,842)
(5,303,155)
(274,620)
(5,577,775)
3,737,183
3,811,933 (3,086,590) (6,898,523)
147,873 3,164,263 3,164,263 (0)
$ 3,885,056 $ 6,976,196 $ 77,672 $ (6,898,524)
117
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Investment earnings
Total Revenues
$ - $ - $ 5,384 $ 5,384
- - 5,384 5,384
EXPENDITURES:
Current:
Capital outlay 7,662,408 6,462,408 6,106,202 356,206
Total Expenditures 7,662,408 6,462,408 6,106,202 356,206
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Bond proceeds
Transfers in
Total Other Financing Sources And Uses
(7,662,408) (6,462,408) (6,100,818) 361,590
2,850,000
600,000
2,850,000
1,750,000
2,850,000
1,750,000
3,450,000 4,600,000 4,600,000
Net change in fund balances (4,212,408) (1,862,408) (1,500,818) 361,590
Fund balances - beginning 4,249,144 5,000,862 5,000,862 (0)
Fund Balances - Ending $ 36,736 $ 3,138,454 $ 3,500,044 $ 361,590
118
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes $ 400,000 $ 400,000 $ 540,329 $ 140,329
Intergovernmental - - 10,680 10,680
Investment earnings 6,000 6,000 1,942 (4,059)
Total Revenues 406,000 406,000 552,950 146,950
EXPENDITURES:
Current:
Natural and economic environment
Total Expenditures
Excess of Revenues And Expenditures
1,101,781 1,101,781
522,973 578,808
1,101,781 1,101,781
522,973 578,808
(695,781) (695,781)
29,977 725,758
Net change in fund balances (695,781) (695,781) 29,977 725,758
Fund balances - beginning 1,742,844 1,712,389 1,712,389 (0)
Fund Balances - Ending $ 1,047,063 $ 1,016,608 $ 1,742,366 $ 725,758
119
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Intergovernmental $ - $ - $ 71,381 $ 71,381
Investment earnings 500 500 - (500)
Miscellaneous 60,000 60,000 300,000 240,000
Total Revenues 60,500 60,500 371,381 310,881
EXPENDITURES:
Current:
Public safety 140,000 166,000 76,759 89,241
Capital outlay 60,000 60,000 58,881 1,119
Total Expenditures 200,000 226,000 135,641 90,359
Excess of Revenues And Expenditures
(139,500) (165,500) 235,740 401,240
Net change in fund balances (139,500) (165,500) 235,740 401,240
Fund balances - beginning 333,243 331,534 331,534 (0)
Fund Balances - Ending $ 193,743 $ 166,034 $ 567,273 $ 401,239
120
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Intergovernmental $ 200,000 $ 200,000 $ 294,508 $ 94,508
Charges for services 369,000 369,000 - (369,000)
Investment earnings 20,000 20,000 667 (19,333)
Total Revenues 589,000 589,000 295,174 (293,826)
EXPENDITURES:
Current:
Transportation 100,000 189,781 (89,781)
Capital outlay 369,000 369,000 2,499 366,501
Total Expenditures 369,000 469,000 192,280 276,720
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Total Other Financing Sources And Uses
220,000 120,000
102,895 (17,105)
100,000 100,000
100,000 100,000
Net change in fund balances 220,000 220,000 202,895 (17,105)
Fund balances - beginning 114,810 504,912 504,912 (0)
Fund Balances- Ending $ 334,810 $ 724,912 $ 707,806 $ (17,106)
121
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes $ 304,000 $ 304,000 $1,108,591 $ 804,591
Intergovernmental 1,500,000 1,500,000 - (1,500,000)
Charges for services 133,800 133,800 76,580 (57,220)
Investment earnings 5,000 5,000 2,128 (2,872)
Total Revenues 1,942,800 1,942,800 1,187,300 (755,500)
EXPENDITURES:
Current:
Culture and recreation
Capital outlay
Total Expenditures
Excess of Revenues And Expenditures
394,989
2,505,000 2,505,000
(394,989)
2,505,000
2,505,000 2,505,000 394,989 2,110,011
(562,200) (562,200) 792,310 1,354,510
OTHER FINANCING SOURCES (USES):
Transfers in - 485,750 485,750
Transfers out - (149,500) (149,495) 5
Total Other Financing Sources And Uses - 336,250 336,255 5
Net change in fund balances (562,200) (225,950) 1,128,565 1,354,515
Fund balances - beginning 2,171,922 1,767,280 1,767,280 (0)
Fund Balances - Ending $ 1,609,722 $ 1,541,330 $ 2,895,845 $ 1,354,515
122
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Investment earnings
Total Revenues
$ 10,000 $ 10,000 $ 2,629 $ (7,371)
10,000 10,000 2,629
(7,371)
EXPENDITURES:
Current:
Natural and economic environment 35,000 35,000 21,329 13,671
Total Expenditures 35,000 35,000 21,329 13,671
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Sales of capital assets
Transfers out
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
(25,000) (25,000)
(18,700) 6,300
400,000
(1,200,000)
(800,000)
400,000
(790,000)
(390,000)
867,500
(786,184)
81,316
467,500
3,816
471,316
(825,000) (415,000) 62,617
1,835,169 1,867,144 4,407,054
477,617
2,539,910
$ 1,010,169 $ 1,452,144 $4,469,671 $ 3,017,527
123
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Investment earnings $ 500 $ 500 $ 700 $ 200
Total Revenues 500 500 700 200
EXPENDITURES:
Current:
General Government
Capital outlay
Total Expenditures
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Total Other Financing Sources And Uses
240,000
- 135,315 (135,315)
240,000 240,000
240,000 240,000
135,315 104,685
(239,500) (239,500) (134,615) 104,885
300,000 300,000 300,000
300,000 300,000 300,000
Net change in fund balances 60,500 60,500 165,385 104,885
Fund balances - beginning 500,021 512,648 512,648 (0)
Fund Balances - Ending $ 560,521 $ 573,148 $ 678,033 $ 104,885
124
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Charges for services $ 300,000 $ 300,000 $ 25,383 $ (274,617)
Investment earnings 500 500 - (500)
Total Revenues 300,500 300,500 25,383 (275,117)
EXPENDITURES:
Total Expenditures
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Transfers out
Total Other Financing Sources And Uses
300,500 300,500
25,383 (275,117)
(300,000) (300,000) (25,383) 274,617
(300,000) (300,000) (25,383) 274,617
Net change in fund balances 500 500 - (500)
Fund balances - beginning 9,259
Fund Balances - Ending $ 9,759 $ 500 $ - $ (500)
125
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Investment earnings $ - $ - $ 17,650 $ 17,650
Total Revenues - 17,650 17,650
EXPENDITURES:
Total Expenditures
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Total Other Financing Sources And Uses
17,650 17,650
Net change in fund balances - 17,650 17,650
Fund balances - beginning 719,137 720,813 720,813 (0)
Fund Balances - Ending $ 719,137 $ 720,813 $ 738,462 $ 17,649
126
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Taxes $ 3,605,000 $ 3,605,000 $3,906,139 $ 301,139
Investment earnings - - 171 171
Total Revenues 3,605,000 3,605,000 3,906,309 301,309
EXPENDITURES:
Debt service:
Principal
Interest
Total Expenditures
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Total Other Financing Sources And Uses
Net change in fund balances
Fund balances - beginning
Fund Balances - Ending
960,000
2,642,975
960,000
2,642,975
960,000
2,642,975
3,602,975 3,602,975 3,602,975
2,025 2,025
303,334 301,309
2,025 2,025 303,334
76,339
9,959 9,959
301,309
0
$ 78,364 $ 11,984 $ 313,293 $ 301,309
127
CITY OF TUKWILA: 2021 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, 2021
Variance With
Original Final Final Budget
Budget Budget Actual Positive
(GAAP Basis) (GAAP Basis) Results (Negative)
REVENUES:
Investment earnings $ 2,000 $ 2,000 $ 154 $ (1,846)
Miscellaneous 376,895 376,895 - (376,895)
Total Revenues 378,895 378,895 154 (378,741)
EXPENDITURES:
Debt service:
Principal
Interest
Total Expenditures
Excess of Revenues And Expenditures
OTHER FINANCING SOURCES (USES):
Bond proceeds
Payment of refunded debt
Transfers in
Total Other Financing Sources And Uses
2,321,936
2,418,401
1,847,936 1,670,560 177,376
2,476,389 2,276,867 199,522
4,740,338
4,324,326 3,947,428 376,898
(4,361,443) (3,945,431) (3,947,274) (1,843)
4,003,443
3,870,501 3,870,500
(3,991,000) (3,991,000)
3,681,376 3,646,679
(34,697)
4,003,443
3,560,877 3,526,179 (34,698)
Net change in fund balances (358,000) (384,554) (421,095) (36,541)
Fund balances - beginning 381,630 421,095 421,095 0
Fund Balances - Ending $ 23,630 $ 36,541 $ $ (36,541)
128
CITY OF TUKWILA: 2021 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
NON -MAJOR INTERNAL SERVICE FUNDS
Internal Service Funds
The City's internal service funds are used to account for 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.
• Equipment Rental Fund — Accounts for 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.
• Insurance Fund Active Employees — Accounts for the costs of the City's self -insured medical plan. Medical
and dental costs for covered employees are charged to the respective departments. All premiums, medical
and dental costs and ancillary charges are included.
• Insurance Fund LEOFF 1 Retirees — Accounts for the costs of the City's self -insured medical plan for LEOFF
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: 2021 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
CITY OF TUKWILA, WASHINGTON
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
DECEMBER 31, 2021
Total
Insurance - Insurance - Internal
Equipment Active Leoff I Service
Rental Employees Retirees Funds
ASSETS:
Current assets
Cash and cash equivalents $ 4,780,978 $ 2,074,077 $ 350,025 $ 7,205,081
Receivables 24,090 - 24,090
Inventory of materials and supplies 27,494 - 27,494
Total Current Assets 4,808,472 2,098,167 350,025 7,256,665
NONCURRENT ASSETS:
Net Pension asset 257,028
Capital Assets:
Machinery and equipment
Less: accumulated depreciation
Total Capital Assets (Net Of A/D)
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources
Deferred outflow pension earnings
Total Deferred Outflows Of Resources
LIABILITIES:
Current liabilities:
Accounts payable
Accrued wages and benefits
Claims incurred but not reported
Total Current Liabilities
19,040,544
(11,886,535)
257,028
19,040,544
(11,886,535)
7,154,009 7,154,009
7,411,037 - 7,411,037
12,219,509 2,098,167 350,025 14,667,702
30,899 - 30,899
30,899 - 30,899
31,432 375 3,267 35,074
20,713 - 20,713
600,000 33,000 633,000
52,145 600,375
36,267 688,787
Noncurrent liabilities:
Reserve for unreported claims 900,000 49,500 949,500
Net pension liability 24,813 - 24,813
Total Noncurrent Liabilities 24,813 900,000 49,500 974,313
Total Liabilities
Deferred Inflow s of Resources
Deferred inflow pension earnings
Total Deferred Inflows Of Resources
76,958 1,500,375 85,767 1,663,100
284,155 - 284,155
284,155 - 284,155
NET POSITION:
Investment in capital assets 7,154,009 - 7,154,009
Unrestricted 4,735,285 597,792 264,258 5,597,336
Total Net Position
$ 11,889,295 $ 597,792 $ 264,258 $ 12,751,345
130
CITY OF TUKWILA: 2021 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, 2021
Total
Insurance - Insurance- Internal
Equipment Active Leoff I Service
Rental Employees Retirees Funds
OPERATING REVENUES:
Charges for services
Other operating revenue
Total Operating Revenue
OPERATING EXPENSES:
Operations & maintenance
Administrative & general
Depreciation
Total Operating Expenses
Operating Income (Loss)
$ 2,380,164 $7,161,703 $ 270,249 $ 9,812,115
2,119 202,186 - 204,304
2,382,283 7,363,888
270,249 10,016,420
1,199, 348
330,403
1,415,570
6,680,694 331,071 8,211,113
178,821 11,920 521,144
- - 1,415,570
2,945,321 6,859,515
342,991 10,147, 827
(563,039) 504,373 (72,742) (131,408)
NON -OPERATING REVENUE (EXPENSE):
Investment earnings 6,171 5,877 405 12,453
Gain (loss) on disposal of capital assets 284,724 - - 284,724
Total Non -Operating Revenue (Expense) 290,895 5,877 405 297,177
Income (Loss)
Change In Net Position
Net position beginning of year
Net Position end of year
(272,144) 510,250 (72,336) 165,770
(272,144)
12,161,439
510,250 (72,336)
87,542 336,595
165,770
12,585,575
$ 11,889,295 $ 597,792 $ 264,258 $12,751,345
131
CITY OF TUKWILA: 2021 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, 2021
Page 1 of 2
Total
Insurance - Insurance- Internal
Equipment Active Leoff I Service
Rental Employees Retirees Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from users $ 2,390,247 $ 7,363,888 $ 270,249 $ 10,024,384
Cash paid to suppliers (902,772) (435,901) (69,088) (1,407,762)
Cash paid to, or on behalf of, employees (521,929) (6,587,724) (331,071) (7,440,724)
Interfund activity- payments to other funds (330,403) (330,403)
Net Cash Provided (Used)
By Operating Activities 635,143 340,263 (129,910) 845,496
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Net Cash Provided (Used) By Non -
Capital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Proceed from sale of equipment
Purchase of capital asset
Net Cash Provided (Used) For Capital
And Related Financing Activities
289,759 289,759
(762,958) - (762,958)
(473,200) - (473,200)
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from sale of investments - 500,000 500,000
Interest received 6,171 954 405 7,530
Net Cash Provided (Used) In Investing Activities 6,171 500,954 405 507,530
Net Increase (Decrease) In Cash And
Cash Equivalents
Cash and cash equivalents -beginning of year
Cash And Cash Equivalents -End Of Year
Cash at end of year consists of:
Cash and cash equivalents
Total Cash
168,114 841,217
4,612,864 1,232,860
(129,505) 879,826
479,530 6,325,255
$ 4,780,978 $ 2,074,077 $ 350,025 $ 7,205,081
$ 4,780,978 $ 2,074,077 $ 350,025
7,205,081
$ 4,780,978 $ 2,074,077 $ 350,025 $ 7,205,081
132
CITY OF TUKWILA: 2021 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, 2021
Page 2 of 2
Total
Insurance - Insurance- Internal
Equipment Active Leoff I Service
Rental Employees Retirees Funds
RECONCILIATION OF NET OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)
$ (563,039) $ 504,373 $ (72,742) $ (131,408)
Adjustments to reconcile operating income to net cash
Provided (used) by operating activities:
Depreciation 1,415,570
Asset (increases) decreases:
Accounts receivable 7,964
Inventory (13,656)
Deferred outflow of resources (increase) decrease 4,405
Liability increases (decreases):
Accounts payable (108,621)
Wages and benefits payable 12,088
Deferred inflow of resources increase (decrease) (119,568)
Total Adjustments
(164,110) (57,168)
1,415,570
7,964
(13,656)
4,405
(329,900)
12,088
(119,568)
1,198,182 (164,110)
(57,168) 976,903
Net Cash Provided (Used) By Operating Activities $ 635,143 $ 340,263 $ (129,910) $ 845,496
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: 2021 ACFR FUND FINANCIAL STATEMENTS AND SCHEDULES
134
CITY OF TUKWILA: 2021 ACFR STATISTICAL SECTION
City of Tukwila
STATISTICAL SECTION
December 31, 2021
Financial Trends Information
Financial trends schedules are intended to provide users with information to assist them in understanding and
assessing how the City's financial position has changed over time.
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
affecting the City's ability to generate its 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 to understand and assess the City's current levels of
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
City's financial report relates to the services the 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: 2021 ACFR STATISTICAL SECTION
CITY OF TUKWILA
SCHEDULE 1
NET POSITION BY COMPONENT(a)
LAST TEN FISCAL YEARS
Page 1 of 2
2012 2013 2014 2015
Governmental activities:
Net investment in capital assets $ 203,206,940 $ 207,660,389 $ 191,081,461 $ 191,331,156
Restricted 2,749,680 3,480,002 3,973,726 5,446,074
Unrestricted 20,194,333 26,981,105 25,009,212 16,125,592
Total governmental activities net position $ 226,150,953 $ 238,121,496 $ 220,064,399 $ 212,902,822
Business -type activities:
Net investment in capital assets $ 52,911,741 $ 55,955,595 $ 57,677,764 $ 59,483,424
Restricted 430,444 430,444 430,444 -
Unrestricted 11,011,319 12,964,539 13,839,529 14,658,912
Total business -type activities net position $ 64,353,504 $ 69,350,577 $ 71,947,736 $ 74,142,335
Primary government:
Net investment in capital assets $ 253,253,170 $ 263,615,984 $ 248,759,225 $ 250,814,581
Restricted 3,180,123 3,910,445 4,404,170 5,446,074
Unrestricted 34,071,164 39,945,644 38,848,741 30,784,504
Total primary government net position $ 290,504,457 $ 307,472,073 $ 292,012,136 $ 287,045,158
Notes:
(a) All amounts are reported on the accrual basis
Source:
Tukw ila Finance Department
136
CITY OF TUKWILA: 2021 ACFR STATISTICAL SECTION
Page 2 of 2
2016
2017
2018
2019
2020
2021
$ 193,113,026
8,996,183
15,809,945
$ 199,328,694
13,480,068
11, 366, 545
$ 217,919,155 $ 224,175,306
$ 60,807,030 $ 65,355,778
17,240,620
17,425,401
$ 201,997,812
16,962,377
12,407,297
$ 201,649,103 $201,887,136 $197,839,607
18,692,944 17,784,194 25,280,715
17,772,776 22,003,200 32,169,525
$ 231,367,487 $ 238,114,823 $241,674,530 $255,289,848
$ 68,680,695 $ 68,362,159 $ 69,238,961 $ 72,559,196
18,988,782 22,104,664 25,231,660 27,093,876
$ 78,047,650 $ 82,781,179 $ 87,669,477 $ 90,466,823 $ 94,470,621 $ 99,653,072
$ 253,920,056
8,996,183
33,050,565
$ 264,684,471
13,480,068
28, 791, 946
$ 295,966,804 $ 306,956,485
$ 270,678,507
16,962,377
31,396,080
$ 270,011,262 $271,126,097 $270,398,803
18,692,944 17,784,194 25,280,715
39,877,441 47,234,860 59,263,401
$ 319,036,964 $ 328,581,646 $336,145,151
$354,942,919
137
CITY OF TUKWILA: 2021 ACFR
STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 2
CHANGES IN NET POSITION (a/
Page 1 of 2
2012
2013
2014
2015
Expenses
Governmental Activities 0')
General government
Public safety
Physical environment
Transportation
Culture and recreation
Natural and economic environment
Interest on Long Term Debt
Total Governmental Activities
Business Type Activities
Water/Sew er Utility
Foster Golf Course
Surface Water Utility
Total Business Type Activities
Total Primary Government Expenses
Program Revenues
Governmental Activities 0)
Charges for Services
General government
Public safety
Physical environment
Transportation
Culture and recreation
Natural and economic environment
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities Program Revenues
Business Type Activities
Charges for Services
Water/Sew er Utility
Foster Golf Course
Surface Water Utility
Operating Grants and Contributions
Capital Grants and Contributions
Total Business Type Activities Program Revenues
Total Primary Government Program Revenues
Net (Expense)/Revenue
Governmental Activities
Business Type Activities
$ 8,343,107
26,598,432
3,625,696
7,314,707
4,242,725
4,801,342
1,152,063
56,078,072
10,149,557
1,701,131
2,699,767
$ 10,195,049
25,938,946
2,610,591
7,658,280
5,635,347
5,209,954
1,038,851
58,287,017
10,421,064
1,707,993
2,563,132
$ 10,289,399
29,292,587
11,668,098
2,479,533
5,336,659
5,716,091
1,204,771
65,987,138
12,752,125
1,945,789
3,310,716
$ 8,042,254
29,403,206
2,611,297
11,069,605
5,125,227
5,782,907
1,033,440
63,067,935
13,186,236
2,086,586
4,147,974
14,550,455
14, 692,189 18,008,631
19,420,796
$ 70,628,527 $ 72,979,205 $ 83,995,769 $ 82,488,731
$ 1,332,418 $ 1,495,438
684,744 871,919
4,939 27,407
1,004,911 287,956
481,404 744,014
2,323,528 2,786,178
4,411,618 3,289,818
1,581,882 16,947,529
11,825,444 26,450,258
11, 758, 658 13,146,131
1,448,729 1,404,264
3,827,010 3,913,184
135,603 338,943
$ 3,858,862
970,594
196,506
8,425
2,793,185
726,869
2,563,002
8,053,435
$ 3,794,134
1,754,856
206,065
644,283
3,348,802
893,470
6,431,537
19,170,879 17,073,146
14,308,945
1,406,440
4,168,313
1,548,280
15,572,709
1,482,288
5,286,233
2,039,890
17,170,000 18,802,521
21,431,978 24,381,122
28,995,444 45,252,779
40,602,857 41,454,268
Total Primary Government Net Expense - _ $
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property Tax
Retail Sales and Use Tax
Natural Gas Use Tax
Hotel/Motel Tax
Utility Tax
Interfund Utility Taxes
Business Tax
Excise Tax
Unrestricted Investment Earnings
Miscellaneous
Transfers
Total Governmental Activities
Business Type Activities
Unrestricted Investment Interest
Miscellaneous
Transfers
Total Business Type Activities
Total Primary Government
Change in Net Position Before Special Item
Special item
Change in Net Position
Governmental Activities
Business Type Activities
Total Primary Government
Notes:
(a) All amounts are reported on the accrual basis
(b) Governmental activity classifications changed beginning with the 2019 Annual report
Source:
Tukw ila Finance Department
(44,252,628) (31,836,759)
2,619,546 4,110,332
(41,633,082) $(27,726,426)
$ 14,131,605 $ 14,510,241
15,441,683 16,316,398
232,208 204,457
522,033 526,832
5,535,966 3,879,992
1,686,859
2,497,606 2,570,111
2,860,948 2,745,475
116,694 102,486
1,997,335 2,166,215
1,056,843 1,060,650
43,371,717 45,769,716
61,119
200,871 -
(525,864) (1,056,843)
(263,874) (1,056,843)
$ 43,107,843 $ 44,712,8/3
(46,816,260)
3,423,348
$ (43,392,912)
$ 14,870,621
17,105,322
596,781
3,855,544
1,851,013
2,555,999
3,512,894
444,282
1,915,031
(600,000)
(45,994,789)
4,960,326
$ (41,034,463)
$ 14,320,085
19,334,152
677,971
4,019,288
2,061,098
2,749,140
5,321,281
475,345
2,124,185
45,769,716 51,082,546
(1,060,650)
(1,060,650)
600,000
600,000
$ 44,709,066 $ 51,682,546
1,474,761 16,986,447
1,474,761 16,986,447
16,815,810 13,932,957
3,433,129 3,053,489
1,316,154
1,316,154
13,932,957
3,049,682
10,648,083
(1,995,000)
8,653,083
(2,703,772)
4,023,348
$ 20,248,939 $ 16,986,44/ $ 16,982,640 $ 1,319,576
138
CITY OF TUKWILA: 2021 ACFR
STATISTICAL SECTION
$ 9,662,207
31,418,713
2,554,259
11,188,189
5,431,324
4,410,841
1,075,729
2017
2018
$ 9,835,290 $ 10,763,025 $ 11,105,119
31,190,347 17,097,372 27,402,906
2,545,144 2,645,577
12,236,551 15,871,018 18,442,230
5,582,038 5,591,213 6,076,219
4,523,596 4,411,719 4,515,516
2,481,559 2,748,854 3,009,268
65,741,262 68,394,526 59,128,779 70,551,259
13,984,368
2,077,536
4,088,360
14,305,425 14,861,448 15,957,397
1,989,972 2,091,981 2,128,042
4,209,325 4,464,319 6,166,267
20,150,264
20,504,722 21,417,748 24,251,707
$ 85,891,525 $ 88,899,24/ $ 80,546,527
$ 94,802,966
$ 10,792,736
25,090,275
12,757,271
5,522,907
4,426,553
4,927,364
63,517,106
14,111,179
1,908,023
4,991,110
Page 2 of 2
$ 12,227,100
24,840,036
12,760,187
4,814,194
5,062,727
4,443,170
64,147,415
14,227,351
2,175,885
4,327,427
21,010,311 20,730,662
$ 84,527,417 $ 84,878,077
$ 3,742,937 $ 4,144,986 $ 5,989,077 $ 6,565,339 $ 7,481,748
4,130,701 1,540,863 1,970,331 2,543,188 2,037,444
464 - - - -
454,525 2,206,908 2,261,577 106,958 890,982
1,140,558 1,315,740 1,415,827 1,914,795 654,085
2,434,546 2,270,759 3,099,692 3,533,733 2,671,049
1,079,020 2,445,998 1,733,308 794,371 1,567,067
5,000,942 6,126,880 9,942,224 2,578,046 1,415,931
17,983,694 20,052,136 26,412,036 18,036,429 16,718,306
15,661,118 16,580,965 17,203,158 17,831,892 14,857,183
1,426,385 1,313,871 1,563,320 1,610,152 1,906,355
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
767,732 834,392 767,504 280,570 1,405,464
23,755,578 24,938,251 26,006,046 26,749,053 25,247,459
41,739,272 44,990,386 52,418,082 44,785,482 41,965,764
(47,757,566) (48,342,390)
3,605,314 4,433,529
$ (44,152,252) $ (43,908,861)
(32,716,743) (52,514,829) (46,798,800)
4,588,299 2,497,346 4,237,148
$ (28,128,445) $ (50,017,483) $ (42,561,653)
$ 14,562,501
18,908,190
710,267
4,045,916
2,146,515
2,716,257
6,508,665
559,733
2,915,859
(300,000)
$ 17,667,590
18,807,201
736,784
4,175,013
2,265,747
2,698,352
5,380,662
838,630
2,328,565
(300,000)
$ 18,008,738
20,603,617
833,990
3,866,859
2,334,522
1,246,798
5,091,447
1,508,334
2,240,045
(300,000)
52,773,904
54,598,542 55,434,351
300,000
300,000
300,000
300,000
$ 18,390,051
20,687,748
819,095
3,644,470
2,358,608
1,299,085
5,336,066
1,247,003
5,377,939
102,100
59,262,164
300,000
300,000
$ 52,773,904 $ 54,898,542 $ 55,734,351 $ 59,562,164
8,621,652
(956,798)
7,664,855
10,989,681
27,605,906
9,544,681
10,989,681 27,605,906 9,544,681
3,830,958 5,016,337 6,256,152 22,717,608
5,260,326 3,905,314 4,733,529 4,888,299
$ 9,091,285 $ 8,921,651 $ 10,989,681 $ 27,605,906
$ 19,839,475
17,102,061
292,358
4,286,358
2,153,573
407,877
3,323,814
680,094
2,039,548
233,350
50,358,508
(233,500)
(233,500)
$ 50,125,008
7,563,355
7,563,355
3,559,708
4,003,648
$ 6,342,118
1,972,485
371,646
456,787
2,416,865
1,796,702
1,289,853
14,646,454
16,227,339
2,268,908
7,029,502
61,630
1,709,678
27,297,057
41,943,511
(49,500,960)
6,566,394
$ (42,934,566)
$ 21,275,135
20,148,103
540,329
3,605,314
2,322,420
2,074,857
7,400,723
297,953
4,067,501
1,383,944
63,116,277
(1,383,944)
(1,383,944)
$ 61,732,334
18,797,768
18,797,768
13,615,317
5,182,451
$ 7,563,355 $ 18,797,768
139
CITY OF TUKWILA: 2021 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
2012 2013 2014 2015
General Fund
Nonspendable $ - $ 1,743,362 $ 1,544,022 $ 1,340,914
Assigned - 225,000 5,771,471 6,078,648
Unassigned 8,378,557 15,317,624 10,181,057 10,911,244
Total general fund $ 8,378,557 $ 17,285,986 $ 17,496,550 $ 18,330,806
All other governmental funds
Nonspendable $ - $ - $ 7,370,000 $ 7,645,000
Restricted 2,749,681 3,480,001 3,973,726 5,446,074
Assigned 7,021,183 4,510,623 4,076,803 7,221,870
Unassigned - (1,566,175) (1,360,218) -
Total all other governmental funds $ 9,770,864 $ 6,424,449 $ 14,060,311 $ 20,312,943
$70
c
0
2 $60
$50
$40
$30
$20
$10
$-
Fund Balances
2012 2013 2014 2017 2018 2019 2020 2021
General Fund — —All Other Governmental Funds
140
CITY OF TUKWILA: 2021 ACFR STATISTICAL SECTION
Page 2 of 2
2016 2017 2018 2019 2020 2021
$ 1,141,484 $ 927,373 $ 718,190 $ 508,447 $ 292,498 $ 70,139
6,277,929 105,000 181,078 397,736 660,425 491,143
11,612,330 18,040,352 19,718,745 19,233,980 18,469,248 23,180,241
$ 19,031,744 $ 19,072,725 $ 20,618,013 $ 20,140,163 $ 19,422,170 $ 23,741,523
$ 7,645,000 $ - $ - $ $ $
45,986,463 51,236,443 32,531,984 48,694,929 5,483,785 7,231,746
3,389,139 10,282,709 11,819,299 17,705,991 15,110,785 12,742,716
$ 57,020,602 $ 61,519,152 $ 44,351,283 $ 66,400,920 $ 20,594,569 $ 19,974,462
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CITY OF TUKWILA, WASHINGTON
SCHEDULE 4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (a)
LAST TEN FISCAL YEARS
page 1 of 2
2012 2013 2014 2015
Revenues
Taxes $41,502,608 $42,402,070 $44,441,783 $ 48,548,116
Licenses and Permits 1,604,594 2,013,875 2,114,638 2,242,256
Intergovernmental 7,626,487 7,190,325 14,298,126 11,839,883
Charges for Services 3,974,356 3,747,646 3,838,531 3,935,248
Fines and Forfeitures 220,752 242,638 264,934 261,457
Investment Income 106,286 151,911 479,219 475,345
Special Assessments - 2,788,350 701,723 650,415
Miscellaneous 131,979 427,368 354,395 332,268
Total Revenues 55,167,062 58,964,183 66,493,348 68,284,989
Expenditures
General Government
Public Safety
Physical Environment
Transportation
Natural and Economic Environment
Culture and Recreation
Debt Service
Principal
Interest
Capital Outlay
Total Expenditures
8,504,511
24,918,306
3,022,516
2,769,182
4,767,944
3,373,000
1,991,540
1,178,464
12,099,293
9,303,742
25,720,884
1,935,895
3,111,493
5,224,964
4,386,392
5,024,991
1,162,649
5,854,962
7,505,173
27,254,312
1,807,993
5,820,601
5,226,832
4,680,651
2,288,988
961,457
10,150,912
7,708,394
29,035,165
1,935,228
5,792,668
5,832,384
4,350,052
2,480,507
1,125,609
11,426,274
62,624,756 61,725,970
65,696,921 69,686,279
Excess (Deficiency) of Revenues (7,457,694) (2,761,786) 796,428 (1,401,291)
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers In 7,625,792 20,918,983 7,300,080 5,633,846
Transfers In - Assessment - 2,788,350 -
Transfers Out (6,174,358) (23,301,516) (7,900,080) (5,933,846)
Sale of Capital Assets 9,903 5,493 -
General Obligation Bonds Issued - 1,000,000 3,850,000 8,075,000
Refunding of General Obligation Bonds - -
LID Bonds Assessment - 6,687,500 -
Operating Loan-Tukw ila MPD (658,706)
Premium on General Obligation Debt - - 309,758
Total Other Financing Sources (Uses) 802,631 8,098,809 3,250,000 8,084,758
Change in Fund Balance Before Special Item (6,655,063) 5,337,023 4,046,428 6,683,467
Special Item - (1,995,000) (956,798)
Net Change in Fund Balances
$ (6,655,064) $ 5,337,023
$ 2,051,428 $ 5,726,669
Ratio of Debt Service Expenditures
To Total Non -Capital Expenditures
(a) All amounts are reported on the modified - accrual basis
Source:
Tukw ila Finance Department
6.70% 11.07%
6.70% 6.30%
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page 2 of 2
2016 2017 2018 2019 2020
2021
$49,588,492
2,129,221
10,067,413
3,911,473
318,459
541,299
542,180
957,158
$51,655,075
2,749,137
12,739,774
5,767,228
325,216
826,864
478,838
942,784
$ 51,988,591
4,875,454
15,919,377
6,801,719
291,604
1,538,534
415,660
407,151
$ 52,686,247
5,554,899
7,495,781
7,442,843
245,748
1,258,493
515,266
515,923
$ 47,560,434
6,738,212
6,647,587
3,540,211
209,551
680,094
377,132
560,804
$ 57,281,494
5,341,662
7,603,637
3,213,504
302,358
297,953
375,889
632,087
68,055,695 75,484,915
9,405,989
29, 366,198
1,955,031
5,238,468
4,493,210
4,543,339
2,602,782
1,093,584
8,358,450
9,585,551
30,899,412
1,733,400
6,532,195
4,614,027
4,664,129
3,713,928
2,603,869
14,761,715
82,238,092 75,715,199
10,491,432
34,331,520
1,805,457
10,015,938
4,686,528
4,852,138
4,092,196
2,977,523
47,601,490
8,777,726
32,586,415
9,717,429
4,752,115
5,328,994
4,238,521
4,060,086
51,397,863
66,314,025 75,048,583
8,620,827
31,792,303
6,346,303
4,659,575
4,551,092
2,486,461
5,445,543
48,834,614
8,455,383
32,513,800
6,612,101
5,917,214
4,614,034
3,000,560
5,097,555
10,381,479
67, 057,051 79,108,226
120,854, 221 120, 859,149
112,736,719 76,592,127
998,643 (3,623,311) (38,616,129) (45,143,950) (46,422,694) (1,543,543)
4,025,831 6,354,496 7,742,669 7,233,686 8,867,680 9,904,409
- - 3,119,513 - - -
(4,325,831) (6,654,496) (8,042,669) (7,131,586) (8,634,330) (8,520,466)
- (100,000) - - 1,129,345
32,990,000 10,456,000 18,365,000 60,600,000 1,995,000 6,720,500
- - - (2,330,000) (3,991,000)
3,719,954
356,839 1,809,036 6,013,637
36,409,954
37,408,597
10,412,839
6,789,528
22,993,549
(15,622,580)
66,715,737
21,571,787
(101,650)
(46,524,344)
5,242,789
3,699,245
$37,408,597 $ 6,789,528 $(15,622,580) $ 21,571,787 $(46,524,344) $ 3,699,245
6.30% 9.80%
9.65% 11.95% 12.41% 12.23%
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CITY OF TUKWILA, WASHINGTON
SCHEDULE 5
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Fiscal Year
Property(a) Sales & Use Utility(b) Excise Business Other Total Taxes
2012 14,072,015 15,441,683 4,001,385 3,201,098 2,497,606 2,288,822 41,502,608
2013 14,510,241 16,316,398 3,879,992 2,745,475 2,570,111 2,418,148 42,440,365
2014 14,870,621 17,105,322 3,855,544 3,512,894 2,555,999 2,447,794 44,348,175
2015 14,320,085 19,334,152 4,019,288 5,321,280 2,749,140 2,739,070 48,483,015
2016 14,562,501 18,908,190 4,045,916 6,508,665 2,716,257 2,856,782 49,598,312
2017 17,667,590 18,807,201 4,175,013 5,380,662 2,698,352 3,002,531 51,731,348
2018 18,008,738 20,603,617 3,866,859 5,091,447 1,246,798 2,334,522 51,151,981
2019 18,390,051 20,687,748 3,644,470 5,336,066 1,299,085 3,177,703 52,535,122
2020 19,839,475 17,102,061 4,286,358 3,323,814 407,877 2,445,931 47,405,516
2021 21,275,135 20,148,103 3,605,314 7,400,723 2,074,857 2,862,749 57,366,880
Change 2012-2021
51.2% 30.5% -9.9% 131.2% -16.9% 25.1% 38.2%
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:
Tukw ila Finance Department
Tax Revenue by Source
❑ Other
D Business
• Excise
■ Utility
ID Sales and Use
Tax
• Property
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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CITY OF TUKWILA, WASHINGTON
SCHEDULE 6
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected Within the Fiscal
Year of the Levy Total Collections to Date
Collections in
Fiscal Taxes Levied Subsequent
Year for Fiscal Year Amount % of Levy Years Amount % of Levy
2012 13,697,474 13,521,621 98.72% 175,853 13,697,474 100.00%
2013 13,740,076 13,549,525 98.61% 190,550 13,740,076 100.00%
2014 14,047,317 13,916,718 99.07% 123,482 14,040,200 99.95%
2015 14,245,846 14,113,739 99.07% 131,226 14,244,965 99.99%
2016 14,516,623 14,375,358 99.03% 141,265 14,516,623 100.00%
2017* 17,551,561 17,262,965 98.36% 262,352 17,525,317 99.85%
2018 18,006,677 17,844,087 99.10% 148,854 17,992,942 99.92%
2019 18,796,071 18,648,149 99.21% 115,485 18,763,634 99.83%
2020 20,044,161 19,705,761 98.31% 263,578 19,969,338 99.63%
2021 21,049,466 20,796,453 98.80% - 20,796,453 98.80%
*First year of collection on 2016 voter -approved levy for Public Safety Ran
Source:
King County Office of Finance
Property Tax Levies and Collections
■ Taxes Levied
for Fiscal Year
■ Col I ected
Within the
Fiscal Year of
the Levy
2012 2013 2014 2015 2016 2017* 2018 2019 2020 2021
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CITY OF TUKWILA, WASHINGTON
SCHEDULE 7
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Fiscal Year
Total Direct
Real Property Personal Property Public Utilities Total Assessed Value Tax Rate
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 6,809,349,200 826,589,881 247,118,481 7,883,057,562 2.67733
2021 6,890,134,092 882,202,099 238,555,841 8,010,892,032 2.72071
Note:
*Real, personal, and state public service property have been assessed at 100% of the estimated value.
Source:
King County Department of Assessments
c
0
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$-
Assessed Value By Type
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public Utilities
• Personal Property
■ Real Property
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CITY OF TUKWILA, WASHINGTON
SCHEDULE 8
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1,000 OF ASSESSED VALUATION)
LAST TEN FISCAL YEARS
CITY OF TUKWILA Central
Puget
Tukwila Sound
Emergency Tukwila Pool Regional
General Special King Port of Medical School Dist Flood Metropolitan Hospital Transit
Fiscal Year Levy Levy Total WA State County(a) Seattle Service #406 Control Park District District #1 Authority Total
2012 2.98778 2.98778 2.56720 2.11172 0.23324 0.30000 5.69832 0.13210 0.15000 0.50000 14.68036
2013 2.97799 2.97799 2.47044 2.08129 0.21533 0.33500 5.89098 0.15369 0.14944 0.50000 14.77416
2014 2.84188 2.84188 2.28514 1.84798 0.18885 0.30217 5.50160 0.13860 0.14962 0.50000 13.75584
2015 2.71073 - 2.71073 2.16898 1.95741 0.16954 0.28235 5.22858 0.12980 0.14853 0.50000 - 13.29592
2016 2.58592 0.47143 3.05735 2.03205 1.83412 0.15334 0.26305 5.36954 0.11740 0.15653 0.50089 0.25000 13.48427
2017 2.46285 0.45579 2.91864 2.91820 1.73925 0.13518 0.23940 5.17356 0.10708 0.15513 0.45689 0.22745 14.07078
2018 2.39148 0.42657 2.81805 2.62922 1.60359 0.12266 0.21762 3.39103 0.09660 0.15767 0.41673 0.20700 11.66017
2019 2.26293 0.47123 2.73416 3.02799 1.59993 0.11944 0.26500 3.42786 0.09199 0.15341 0.40069 0.19937 12.01984
2020 2.17985 0.49748 2.67733 3.08823 1.60421 0.11984 0.26499 3.78886 0.08909 0.15102 0.38511 0.19709 12.36577
2021 2.14677 0.57394 2.72071 2.81695 1.56491 0.11258 0.24841 4.21764 0.08146 0.15223 0.35434 0.18409 12.45332
Note:
(a) Includes King County Library District tax and Ferry
Source:
King County Department of Assessments
$3.10000
$3.00000
$2.90000
$2.80000
$2.70000
$2.60000
$2.50000
$2.40000
Direct Property Tax Rates
1
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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CITY OF TUKWILA, WASHINGTON
SCHEDULE 9
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Type of Business
Percent of Percent of
2021 Total 2012 Total
2021 Assessed Assessed 2012 Assessed Assessed
Valuation Valuer°) Valuation Value(»
Boeing Airplane company $ 504,876,300 6.30% $ 490,724,957 10.56%
Property Tax Resources LLC Commercial Properties 223,904,000 2.79%
Prologis Real Estate Development 180,288,100 2.25% 0.00%
Segale Properties Commercial Properties 172,811,700 2.16% 161,151,755
LIT Industrial LTD Parternership Commercial Properties 135,951,700 1.70%
Sabey Corporation Real Estate Development 133,272,100 1.66% 0.00%
Westfield Property Department Stores 132,103,700 1.65% 0.00%
LIT Kent Valley Commercial Properties 104,037,700 1.30%
KIR Tukw ila ComnercialProperties 98,745,100 1.23% 81,486,500
Boeing Employees Credit Union Credit Union 87,586,100 1.09% 41,292,565 0.89%
WEA Southcenter LLC Department Stores 295,766,166 6.36%
E Property Tax Dept Commercial Properties 66,723,700 1.44%
Walton CWWA Eproprety Tax Inc (McElroy) Investment Property 58,562,300 1.26%
Sea-Tuk Warehouse LLC Food Distribution 34,167,200 0.73%
Wig Properties LLC (JC Penney) Department Stores 32,877,852 0.71%
Anne Arundel Apartments LLC Apartments 30,034,300 0.65%
Jorgensen Forge Corporation Steel Manufacture 29,667,335 0.64%
$ 1,773,576,500 22.14% $ 1,322,454,630 23.23%
Notes:
(a) In 2021 the total assessed property value in the City of Tukwila was $ 8,010,892,032
(b) In 2012 the total assessed property value in the City of Tukwila was $ 4,649,191,308
Source:
King County Department of Assessments
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CITY OF TUKWILA, WASHINGTON
SCHEDULE 10
RETAIL SALES TAX COLLECTIONS BY SECTOR
LAST TEN FISCAL YEARS
page 1 of 2
Major Industry Sector
2012 2013 2014 2015
Construction and Contracting $ 961,125 $ 1,212,594 $ 829,073 $ 1,255,650
Finance, Insurance & Real Estate 143,792 174,705 141,010 163,161
Manufacturing 390,252 386,964 322,189 281,501
Transportation, Communications & Utilities 432,608 475,688 549,126 743,746
Wholesale - Durable/Non-durable Goods 1,077,613 1,108,771 1,592,613 2,016,722
Retail Trade - General Merchandise 2,000,865 2,154,523 2,137,256 2,205,778
Retail Trade - Home Furnishings/Electronics 1,537,143 1,405,274 1,431,965 1,527,377
Retail Trade - Miscellaneous 1,703,741 1,870,200 1,973,478 1,954,150
Retail Trade - Clothing &Accessories 2,082,930 2,070,198 2,013,796 2,159,647
Retail Trade - Restaurants 1,472,343 1,529,101 1,611,860 1,703,187
Retail Trade - Automotive/Gas 690,076 690,691 765,765 825,143
Retail Trade - Building Materials 516,861 565,734 600,610 683,485
Service Industries - Business 928,610 968,996 1,073,511 1,265,789
Service Industries - Hotels 487,977 502,721 562,130 626,822
Service Industries - Other 234,870 246,802 274,497 273,514
All Other Categories 381,693 525,133 468,547 978,142
Total Retail Sales Tax Collections $ 15,042,499 $ 15,888,089 $ 15,888,089 $ 18,663,814
Notes:
By State law, the City of Tukwila is prohibited from reporting individual sales tax payers.
Sources:
Tukw ila Finance Department and Washington State Department of Revenue.
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CITY OF TUKWILA: 2021 ACFR STATISTICAL SECTION
page 2 of 2
2016 2017 2018 2019 2020 2021
$ 1,383,624 $ 1,413,773 $ 1,623,112 $ 2,218,910 $ 2,389,360 $ 1,664,634
175,060 125,978 143,696 65,075 112,453 126,652
269,117 177,788 262,700 238,694 221,232 222,561
746,115 721,413 1,016,226 1,055,296 789,886 905,716
1,295,141 1,176, 868 1,309,170 1,153, 607 1,101,801 1,292,657
2,202,158 2,131,267 2,187,854 2,167,481 1,836,829 1,886,826
1,623,926 1,613,643 1,649,843 1,715,419 1,419,767 1,866,419
2,032,967 2,077,239 2,131,804 2,089,854 1,994,491 2,897,074
2,089,128 2,066,858 2,084,482 1,996,280 1,186,857 1,920,971
1,751,724 1,886,139 2,009,051 2,080,421 1,273,300 1,815,023
743,468 800,580 1,385,284 1,063,607 560,743 743,240
733,928 805,324 813,656 835,211 996,994 1,080,480
1,467,620 1,436,825 2,051,035 2,039,153 1,684,693 1,767,313
650,270 650,332 717,341 744,823 251,581 473,028
253,089 267,544 394,128 346,020 340,104 373,547
845,209 812,656 115,128 106,610 150,053 143,845
$ 18,262,544 $ 18,164,227 $ 19,894,510 $ 19,916,461 $ 16,310,144 $ 19,179,986
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CITY OF TUKWILA: 2021 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 11
SALES TAX RATE DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017(b) 2018 2019 2020 2021(°)
BASIC SALES TAX RATES (a)
City of Tukw ila 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84%
Washington State 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50°/0 6.50% 6.50%
King County 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Regional Transit Authority 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 1.40% 1.40% 1.40% 1.50%
Metro 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90%
Criminal Justice 0.10% 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 Rate 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 10.00% 10.00% 10.00% 10.10%
Notes:
(a)
(b)
(c)
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.
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.
Effective January 1, 2021, the Regional Transit Authority Tax increased one -tenth of one percent (.001), to one and five -tenths of one percent (.015).
Source:
Washington State Department of Revenue Local Sales and Use Tax Rates.
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SCHEDULE 12
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Page 1 of 2
2012 2013 2014 2015 2016
GOVERNMENTAL ACTIVITIES
General Obligation Bonds (0 $ 25,752,600 $ 21,727,609 $ 23,851,376 $ 30,084,437 $ 64,589,264
Special Assessment (d) - 6,687,500 6,687,500 6,082,500 5,412,500
Total Governmental Activities 25,752,600 28,415,109 30,538,876 36,166,937 70,001,764
BUSINESS -TYPE ACTIVITIES
Revenue Bonds 3,540,000 3,075,000 2,580,000 1,742,527 1,597,704
Public Works Trust Fund Loans 6,621,342 6,063,071 5,742,866 5,646,458 5,046,900
Total Business -Type Activities 10,161,342 9,138,071 8,322,866 7,388,985 6,644,604
TOTAL PRIMARY GOVERNMENT(a) $ 35,913,942 $ 37,553,180 $ 38,861,742 $ 43,555,922 $ 76,646,368
Population (b) 19,611 19,765 19,920 19,300 19,540
Per Capita Personal Income (b) $ 66,043 $ 66,692 $ 72,696 $ 76,226 $ 79,323
Percentage of Personal Income 2.77% 2.85% 2.68% 2.96% 4.95%
Debt Per Capita $ 1,831 $ 1,900 $ 1,951 $ 2,257 $ 3,923
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 Tukw ila Finance Department
$180
$160
$140
$120
$100
$80
$60
$40
$20
so
Total Debt
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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CITY OF TUKWILA: 2021 ACFR STATISTICAL SECTION
Page 2 of 2
2017 2018 2019 2020 2021
$ 69,576,786 $ 85,625,504 $ 147,210,840 $ 144,037,716 $ 143,233,473
4,805,000 4,320,000 3,910,000 3,430,000 3,060,000
74,381,786 89,945,504 151,120,840 147,467,716 146,293,473
1,454,422
4,447,522
1,304,763
3,848,055
1,154,027 997,413 840,235
3,248,587 2,649,119 2,075,702
5,901,944
5,152,818 4,402,614
3,646,532 2,915,937
$ 80,283,729 $ 95,098,322 $ 155,523,454 $ 151,114,248 $ 149,209,410
19,660 19,800 20,930 21,360
$ 84,598 $ 88,308 92,026 96,647
4.83% 5.44% 8.07% 7.32%
$ 4,084 $ 4,803 $ 7,431 $ 7,075 $
21,798
6,845
155
CITY OF TUKWILA: 2021 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
Year Population Assessed Value Debt Debt(a) Funds(b) Debt Value Capita
2012 19,611 $ 4,649,191,308 $ 25,752,600 $ - $ 3,012,381 $ 22,740,219 0.49% $ 1,160
2013 19,765 4,756,373,688 21,727,609 6,687,500 696,346 27,718,763 0.58% 1,402
2014 19,920 5,054,078,747 23,851,376 6,687,500 1,687,497 28,851,379 0.57% 1,448
2015 19,300 5,395,325,118 30,084,437 6,082,500 1,910,940 34,255,997 0.63% 1,775
2016 19,540 5,763,649,829 64,589,264 5,412,500 1,962,497 68,039,267 1.18% 3,482
2017 19,660 6,155,826,776 69,576,786 4,805,000 1,855,519 72,526,267 1.18% 3,689
2018 19,800 6,685,919,176 85,625,504 4,320,000 1,903,729 88,041,775 1.32% 4,447
2019 20,930 6,673,839,922 147,210,840 3,910,000 1,995,748 149,125,092 2.23% 7,125
2020 21,360 7,883,057,562 144,037,716 3,430,000 1,353,344 146,114,372 1.85% 6,841
2021 21,798 8,010,892,032 143,233,473 3,060,000 1,653,564 144,639,909 1.81% 6,635
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
Tukw ila Finance Department
$160
0 $140
2 $120
$100
$80
$60
$40
$20
$0
Net Bonded Debt
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
156
CITY OF TUKWILA: 2021 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 14
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
AS OF DECEMBER 31, 2021
Jurisdiction
Net General Percentage Estimated
Obligation Debt Applicable to Applicable to
Outstanding Tukw ila(1) Tukw ila
Direct:
City of Tukw ila
Overlapping:
King County
King County Library
Port of Seattle
Tukw ila School District #406
Total Overlapping Debt:
Total Direct and Overlapping Debt:
Sources:
King County Office of Finance
King County Office of Assessments
$ 144,639,909
910,028,875
44,335,000
281,335,000
75,287,890
100.00% $ 144,639,909
1.20%
2.00%
1.20%
99.95%
10,920,347
886,700
3,376,020
75,250,246
1,310,986,765 90,433,313
$ 1,455,626,674 $ 235,073,221
(1) The percentage of overlapping debt applicable is estimated using taxable county assessed property values.
C
0
$160
$140
$120
$100
$80
$60
$40
$20
Direct and Overlapping Debt
■ City of Tukwila
■ King County
❑ King County Library
• Port of Seattle
■ Tukwila School District
157
CITY OF TUKWILA: 2021 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 15
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Page 1 of 2
2012 2013 2014 2015
Debt Limit $ 348, 689, 348 $ 348, 689, 348 $ 356, 728, 027 $ 379, 055, 906
Total net debt applicable to limit 25,884,632 25,752,600 21,727,609 23,288,621
Legal debt margin $ 322,804,716 $ 322,936,748 $ 335,000,418 $ 355,767,285
Total net debt applicable to the limit
as a percentage of debt limit 7.42% 7.39% 6.09% 6.14%
Assessed Value as of December 31, 2021
Debt Limit (7.5% of assessed value)
Debt applicable to limit:
General obligation bonds
Other long-term debt
$ 8,010,892,032
600, 816, 902
138, 665, 076
462,151, 827
Less: Amount set aside for repayment of
general obligation debt and contracts payable
Total net debt applicable to limit 138,665,076
Legal debt margin $ 462,151,827
Source:
Tukw ila Finance Department
158
CITY OF TUKWILA: 2021 ACFR STATISTICAL SECTION
Page 2 of 2
2016
2017
2018
2019
2020
2021
$ 432, 273, 737 $ 404, 649, 384 $ 461, 687, 008 $
60, 208, 532 29, 322, 914 65,128, 905
$ 372, 065, 205 $ 375, 326, 470 $ 396, 558,104 $
13.93%
7.25%
500, 537, 994 $
130, 743, 788
369, 794, 206 $
14.11% 26.12%
591,229,317 $
139,183, 203
452,046,114 $
23.54%
600, 816, 902
138, 665, 076
462,151, 827
23.08%
159
CITY OF TUKWILA: 2021 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 16
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Per Capita Personal Number of Number of Tukw ila School
Fiscal Personal Income (b) Single -Family Multi -Family District Unemployment
Year Population Income (a) (in thousands) Homes Units Enrollment Rate (e)
2012 19,611 66,043 1,295,169 3,896 4,094 2,902 7.4%
2013 19,765 66,692 1,318,167 3,915 4,094 2,882 5.2%
2014 19,920 72,696 1,448,104 3,920 4,103 2,978 4.1%
2015 19,300 76,226 1,471,162 3,940 4,103 2,910 4.5%
2016 19,540 79,323 1,549,971 3,969 4,103 2,873 4.2%
2017 19,660 84,598 1,663,197 3,995 4,103 2,961 3.5%
2018 19,800 88,308 1,748,498 4,025 4,667 3,059 3.1%
2019 20,930 92,026 1,926,104 4,235 4,732 2,862 2.3%
2020 21,360 96,647 2,064,380 4,245 4,816 2,763 7.7%
2021 21,798 *** *** 4,250 4,912 2,594 4.5%
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:
Tukw ila Planning Division, Department of Community Development
State of Washington Office of Financial Management
Work Force Development Council of Seattle - King County (Unemployment Data)
Tukw ila School District #406
US Bureau of Economic Analysis
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Unemployment Rate
2012
2013
2014
2015 2016 2017
2018
2019
2020
2021
160
CITY OF TUKWILA: 2021 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 17
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Name of Company/Employer
Product or Business
2021 Full & Percentage of 2012 Full &
Part -Time Total City Part -Time
Employment (a) Employees Employment (b)
Rank Rank
Percentage of
Total City
Employees
Sound
Boeing Employee's Credit Union
Boeing Company
Rime Now LLC
King County Housing Authority
Nordstrom, Inc
N C Pow er Systems Co
Macy's West Stores LLC
Costco Wholesale Corp
Cascade Behavioral Hospital LLC
Group Health Cooperative
King County Metro
Carlisle Interconnect Technologies
JC Penney
United Parcel Service
Red Dot Corporation
Sub -total - Major Employers
All Other Employment
TOTAL EMPLOYMENT
Healthcare
Credit Union
Aircraft Manufacturing
Electronic Shopping
Housing Assistance
Department Stores
Wholesale
Department Stores
Warehouse aub
Healthcare
Data Ctr/Lab/Pharmacy/Mfg.
Transit Operating Base
Wire/Cable Connectors
Department Stores
Postal Delivery Service
Heater/Air Conditioning Equipment
Source:
(a) Washington State Department of Revenue - Business Licenses
(b) Tukw ila Finance Department - Business Licenses
1,400 1 4.75%
1,063 2 3.61%
815 3 2.76%
672 4 2.28%
509 5 1.73%
507 6 1.72%
500 7 1.70%
488 8 1.66%
396 9 1.34%
325 10 1.10%
6,675
22,808
29,483
0.00%
543 1.35%
7,572 18.86%
0.00%
0.00%
0.00%
0.00%
445 1.11%
703 1.75%
0.00%
2,386 5.94%
778 1.94%
567 1.41%
337 0.84%
335 0.83%
348 0.87%
14,014
26,142
40,156
161
CITY OF TUKWILA: 2021 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 18
FULL TIME EQUIVALENT EMPLOYEE BY DEPARTMENT
LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
DEPARTM ENT
Administrative Services 0), (b) - - - - - - 10.00 10.00 22.00
Council 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
Mayor (4 (b) 15.75 16.75 20.00 19.00 16.00 16.00 13.00 10.00 10.00 5.00
Human Resources 0) 4.00 4.00 4.00 4.00 4.00 4.00 4.00
Finance 12.00 12.00 12.00 12.00 12.00 11.00 11.00 12.00 12.00 12.00
Recreation 16.25 16.25 16.00 16.75 17.25 16.25 16.00 16.25 16.50 14.25
Community Development 23.38 22.13 21.63 21.00 23.75 23.00 25.00 24.00 22.00 29.00
Court 9.00 9.00 9.10 8.10 11.00 11.00 11.00 11.00 10.25 10.65
Police 88.00 87.50 89.00 93.00 93.75 92.75 97.00 98.00 84.00 86.00
Fire 67.00 67.00 67.00 70.00 71.00 72.00 73.00 66.00 64.00 61.00
Information Technology (b) 8.00 7.00 6.00 6.00 7.00 9.00 9.00 9.00 7.00
Public Works 30.00 31.00 31.00 32.00 32.00 27.00 27.00 27.20 22.00 27.00
Parks 7.50 6.00 7.00 7.00 8.00 8.00 9.00 9.00 7.00 9.75
Street 12.00 12.50 11.50 10.00 12.00 11.50 11.50 11.50 7.50 12.00
Water 7.00 7.00 7.00 6.00 7.00 7.50 7.50 7.40 7.50 6.00
Sewer 2.00 2.00 2.00 2.00 2.00 4.50 4.50 4.40 3.50 3.00
Golf 8.25 9.25 8.25 8.25 7.75 8.75 9.00 8.75 8.00 9.75
Surface Water 8.00 8.00 8.00 9.00 9.00 11.50 11.50 12.50 12.50 7.00
Equipment Rental 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 3.00 5.00
Metropolitan Park District Pool (°) 2.00 2.00 2.00 2.00
TOTAL 333.13 332.38 334.48 339.10 346.50 346.75 352.00 350.00 314.75 327.40
Notes:
Based on filled positions not budgeted positions.
(a) Administrative Services includes Human Resources, Community Services and Engagement (previously reported in the Mayor's Office),
and Admin Services Administration as of 2019
(b) Administrative Services includes City Clerk (previously reported in the Mayor's Office) and Information Technology (previously reported a
a separate department
(c) 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.
Sources:
Tukw ila Finance Department
162
CITY OF TUKWILA: 2021 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 19
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
FUNCTION
Police
Number of Calls for Service 31,916 31,355 29,840 32,946 34,229 33,123 33,288 32,465 30,079 31,338
Fire
Number of Responses 4,844 4,604 5,156 5,549 5,754 5,840 5,734 5,724 5,284 6,869
Total Fire Loss $675,847 $343,495 $2,738,080 $1,926,944 $2,821,016 $1,142,486 $527,687 $742,362 $3,187,074 $12,317,319
Total Inspections a) 4,541 3,389 3,850 2,331 1,860 1,951 2 7 5 927
Parks and Recreation
Class Participants 58,260 52,319 45,514 68,970 64,782 83,030 73,906 78,435 27,741 26,000
CommunityCtrAdmissions 116,136 114,748 132,397 136,984 141,218 143,872 143,160 175,311 24,804 20,726
Rounds of Golf Played 47,392 47,757 47,267 51,017 47,595 43,568 49,357 50,561 58,028 64,203
Pool Attendance *" 69,332 71,233 79,537 - - -
Street
Miles 79 79 79 79 79 79 79 79 79 79
Streets/Sidewalks 22,920 16,767 8,627 4,716 4,836 4,936 5,120 5,028 3,764 2,866
Signalized Intersections 62 62 62 62 64 66 74 68 74 74
Signals/Lights 7,000 8,815 3,012 2,408 2,135 2,986 2,415 2,701 1,810 2,113
Water Utility Services
Total Customers 2,117 2,118 2,126 2,145 2,160 2,176 2,185 2,195 2,205 2,215
Total Gallons/Water(in
thousands) 650,659 645,982 668,740 697,147 655,472 697,210 672,700 618,194 543,468 597,831
Sanitary Sewer
Total Customers 1,727 1,742 1,752 1,775 1,789 1,808 1,836 1,845 1,860 1,872
Surface Water
Total Customers
5,212 5,226 5,239 5,242 5,249 5,282 5,286 5,289 5,261 5,278
Licenses
Business Licenses 2,030 1,877 2,208 2,220 1,909 2,120 2,078 1,976 2,132 2,218
Outside Contractors (b) 1,066 1,132 1,216 1,215 945 1,437 1,319 1,688 2,081 2,532
Permits
Building Permits 354 374 347 277 311 348 381 371 262 266
Mechanical Permits 191 221 216 154 192 198 169 193 165 166
Electrical Permits 1,175 1,337 1,223 1,119 1,175 1,047 1,046 1,059 875 928
Plumbing Permits 210 167 184 140 185 165 161 176 133 138
Public Works Permits 126 155 152 163 175 136 152 153 249 242
Libraries
Number of Libraries 2 2 2 2 2 2 2 2 2 2
Total Circulation 332,509 313,571 284,667 214,520 184,492 157,168 180,155 151,578 125,609 132,695
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.
Sources:
Tukwila Departments, King County Library System
163
CITY OF TUKWILA: 2021 ACFR STATISTICAL SECTION
CITY OF TUKWILA, WASHINGTON
SCHEDULE 20
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
FUNCTION
General Government
Total City Area (Square Miles)
Public Safety
Police:
Number of Vehicle Units
9.63 9.63 9.63 9.63 9.63 9.63 9.63 9.63 9.63 9.63
88 81 89 89 93 93 80 88 88 88
Fire:
Number of Fire Stations 4 4 4 4 4 4 4 4 (a) 4 (b) 4
Number of Engines/Rescue Trucks/Ladders 7 7 9 9 9 8 8 11 8 8
Number of Medical Aid Vehicles 1 1 1 1 1 1 1 1 1 1
Number of Hazardous Materials Trailer Units 2 2 2 2 2 2 1 1 1 1
Transportation
Paved Streets (lane nyles) 188.2 188.2 188.2 188.2 188.2 188.2 188.2 188.2 188.2 188.2
Sidewalks (miles) 64.8 64.8 64.8 64.8 64.8 64.8 65.0 65 66 66
Number of Traffic Signals 64 63 63 63 74 76 74 74 74 74
Number of Streetlights Owned by Seattle City Light 901 901 902 902 902 902 908 910 910 910
Number of Streetlights Owned by Puget Sound Energy 187 187 187 187 187 187 187 187 187 187
Number of Streetlights Owned by City of Tukwila 1,210 1,216 1,224 1,224 1,224 1,224 1,224 1224 1224 1224
Culture and Recreation
Parks Acreage (c) 175.6 175.6 175.6 190 190 191 191 191 193 193
Number of Parks 19 19 19 19 19 20 20 20 21 21
Golf Course Acreage 77.26 77.26 77.26 77.26 77.26 77.26 77.26 77.26 77.26 77.26
Maintained Trails (nyles) 15 15 15 15 15 15 15 15 13 13
Number of Playgrounds 11 11 11 11 11 11 11 11 11 11
Sw imming Pool - - -
Visitor Center 1 1 1 1 1 1 1 1 1 1
Community Center/Recreation Facilities 1 1 1 1 1 1 1 1 1 1
Number of Libraries 2 2 2 2 2 2 2 2 2 2
Wate r
Water Distribution Mains (miles) 41 41 49 49 49 49 49 49 49 49
Maximum Daily Capacity (millions of gallons) 10 10 10 10 10 10 10 10 10 10
Number of Fire Hydrants (Owned by City of Tukw ila) 576 576 576 577 577 579 579 589 601 601
Vehicles 8 8 9 9 9 9 8 8 8 8
Sewer
Sanitary Sewers (miles) 37 37 37 37 37 39 39 39 39 40
Average Daily Dry Weather Flow (millions of gallons) 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5
Vehicles 6 5 4 4 5 5 3 3 3 3
Surface Water
Storm Drains (nyles) 70 70 70 71 70.5 97.4 97.4 97.4 97.4 111.0
Vehicles 4 4 8 8 8 8 9 9 8 8
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 number of active station. In 2021, a new Station 52 was opened and the former Station 52 has not yet been surplused.
(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-Tukw ila
164