HomeMy WebLinkAboutFS 2012-06-05 Item 2F - Update - Financial Planning Model / Capital Improvement ProgramCity of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor Haggerton
Finance and Safety Committee
Peggy McCarthy, Finance Director
May 30, 2012
Financial Planning Model Attachment A and Attachment B Review
ISSUE
Review the layout and content of Attachment A and Attachment B of the Financial Planning Model,
through 2012, for use in future financial planning.
BACKGROUND
Attachment A and Attachment B model the revenue and expenditures of most of the City's
governmental funds. The funds included in the model are:
Fund Fund Name
000
General Fund
103
Residential Streets
104
Arterial Streets
2
Debt Service
301
Land Acquisition Development
302
Facilities
303
General Government Improvements
304
Fire Improvements
The governmental funds excluded from the model are:
Fund I Fund Name
105 Contingency Fund
107 Fire Equipment Cumulative Reserve
109 Drug Seizure
These funds are excluded from the model because they were established for very specific purposes,
and as such, are not available for general government activities.
Revenues on Attachment A exclude transfers between the funds included in the model, exclude
grant revenue received for capital projects and exclude financing proceeds.
Capital expenditures on Attachment B include only those costs paid for from City operations. The
amounts exclude expenditures financed through grants and debt proceeds.
DISCUSSION
The model is used to identify trends, assess the general financial health of the City and to
determine amounts available for projects and other special purposes. Line 25 of Attachment A
shows the amount of funds available for projects or special purposes after net expenditure for
INFORMATIONAL MEMO
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general government services and debt service. The model has been updated with actual amounts
for the years 2009, 2010 and 2011 with accounts consistently categorized in each of the years. In
the past, categorization of certain accounts has been inconsistent such as sales tax mitigation
revenue (originally reported with intergovernmental revenue for 2009, now reported with sales
tax revenue).
Changes to Attachment A
1. Line 25, Available after Payment of Debt Service, has been added to show the amount
available for project or Contingency reserve funding after general government services
and debt service has been paid.
2. The line item, Estimated unfunded PERS, has been removed. All reserves deemed
necessary, including this reserve, should be incorporated into the reserve policy and
should be funded through the Contingency fund.
Changes to Attachment B:
3. Transfers to enterprise funds, the Fire Equipment and Drug Seizure funds and additional
advancements on the Metropolitan Park District loan have been added to the model to
provide more precise and accurate results.
Change to Attachment A B:
4. An adjustment column has been added to the right of the 2012 budget column to reflect
changes in estimates and their effect on the model. Adjustments have been added to the
draft to:
a. bring revenues more in line with prior year actual results and anticipated results,
b. adjust the debt service to the underlying debt service schedules,
c. reduce capital expenditures for General Government Improvements to reflect
estimated funding from the King County Flood District for the removal of the
Green River temporary levies the Hesco fences and Super Sacks (75% of $1850
budgeted).
d. Total expenditures on Attachment B have not been adjusted, since in the past,
departments have underspent their budgets by 3 to 4%
Next Steps:
The model will be updated as more information becomes available through development of the
biennial budget. A preliminary Attachment C, containing Capital Improvement projects
contemplated for 2013 2018 has been developed and will be discussed with the Committee at a
later date.
FINANCIAL IMPACT None. For discussion only.
RECOMMENDATION
Information Only.
ATTACHMENTS
Draft Attachment A 2009, 2010, 2011 Actuals, 2012 Budget and 2012 Projections
Draft Attachment B 2011 Actuals and 2012 Budget
190 W:1FIN Projects\Council Agenda Items\201211nfoMemo_Financial Reporting Model, Attachment A B.docx
total revenues and expenditures
model years 2013-2018
budget analysis
general fund operations and maintenace expenditures
2011 actuals and 2012 budget analysis