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Home My WebLink AboutFS 2012-11-06 COMPLETE AGENDA PACKETCity of Tukwila Finance and Safety Committee O De'Sean Quinn, Chair O Dennis Robertson O Kate Kruller AGENDA TUESDAY, NOVEMBER 6, 2012 5:15 PM CONFERENCE ROOM #3 (at east entrance of City/ Hall) Distribution D. Quinn D. Robertson K. Kruller V. Seal K. Hougardy Mayor Haggerton D. Cline P. McCarthy C. O'Flaherty S. Kerslake K. Matej J. Pace Item Recommended Action Page 1. PRESENTATION(S) 2. BUSINESS AGENDA a. A resolution regarding land use fees. a. Forward to 11/19 Pg.1 Jack Pace, Community Development Director Consent Agenda. b. Tax levy legislation: b. Forward to 11/13 C.O.W. Pg.11 (1) Levying general taxes for Public Hearing and (2) Tax levy increase discussion, and 11/19 Peggy McCarthy, Finance Director Regular Mtg. c. Budget legislation: c. Forward to 11/26 C.O.W. Pg.19 (1) Budget amendment ordinance for 2012 for Public Hearing and (2) Budget ordinance for 2013 -2014 discussion, and 12/3 (3) Capital Improvement Program (CIP) resolution Regular Mtg. Peggy McCarthy, Finance Director d. Bond issuance for Metropolitan Park District. d. Committee approval. Pg.39 Peggy McCarthy, Finance Director 3. ANNOUNCEMENTS 4. MISCELLANEOUS Next Scheduled Meeting: Tuesday, November20, 2012 I& The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206 433 -1800 or (TukwilaCityClerk @TukwilaWA.gov) for assistance. p City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Jack Pace, DCD Director BY: Nora Gierloff, Deputy DCD Director DATE: October 30, 2012 SUBJECT: Proposed Land Use Fee Schedule for 2013 -2014 ISSUE The Department of Community Development (DCD) has developed a revised land use fee schedule that would reflect annual increases in the costs of providing development review services. BACKGROUND In 2010, the Council approved a hybrid fee approach that mixed fixed fees for straightforward permits with a retainer and hourly fee system for more complex, less predictable permits. A review of the hybrid system indicates that on some permit types (appeals, shoreline, tree, and some special permission approvals) the retainer was rarely exceeded so the revenue generated through hourly fee tracking did not justify the administrative cost. Tukwila's current and proposed fees were compared to nearby cities, see Attachment A. Many nearby cities divide their land use fees into fees attributed to the Planning division, engineering (Public Works) and, in some cases, Fire. Five of the seven cities that were compared levy a revision fee to capture additional revenue for complicated or excessively revised projects. DISCUSSION The 2013 -2014 fee schedule includes annual increases that reflect increases in the cost of providing services due to City salary increases at 4% in 2012 and 2.9% in 2014. In order to streamline administrative cost and effort we propose to change appeals, shoreline permits, tree permits, and some special permission approvals from hourly billing permit types to fixed fees. Tree permits are proposed to increase from $53 plus hourly fees to a $100 fixed fee. While this will likely not cover the review time spent we have had a policy of keeping them affordable to encourage compliance. We would continue to pass through any hearing examiner and peer review fees related to a permit on to the applicant. Once the new permit system is operational we will return to Council with a proposal for a technology fee to recoup the capital investment in the system. A City -wide approach to increased costs due to increased use of credit cards will be developed in 2013. FINANCIAL IMPACT Annual revisions to the City's land use fees allow us to continue to recover the costs to provide this service. INFORMATIONAL MEMO Page 2 RECOMMENDATION The Council is being asked to approve the resolution and place it on the consent agenda at the November 19, 2012 Regular Meeting. ATTACHMENTS A Fee Comparison B Resolution ZADCD n Clerk'slFee ResolutionllnfoMemo F &S 11- 6- 12.doc 2 Boundary Line Adjustment $1,536 $1,202 $334 $854 $590 $1,406 $1,264 $3,4502200(minor) $450 $400 $3,320 Lot Consolidation $2,361 $570 $1 139 $575 $5 $500 $3 791 UP io $13,818 $1 456 $173 $3,500 $328 $2,000 $1,300 $3 varies $350.8000 Permit Exemption Letter, Shoreline $222 $183 Short Plat (2-4 lots) $215 $3,497 $147 $4,791 ($1,294 $3,750 25A0t, 3 meetings $5,437 $2,251 $5,653 +22/lot $10,100 $3,554 $1,400 $2,889 $665 $4,948 Short Plat (5 -9 lots) $3 $5,941 $1,961 $2,000 $6,465 $2 $7,879 $76/lot $11,100 $1,400 Subdivision Preliminary Plat (10+ lots) $5,119 +50 $7,138 $2,019 $3,000 $120/1.13 meetings $9,422 $7,436 $79/ acre $8,171 $54not $8,500 $4,000 $6,500 $6 -7000 +$1697/ Subdivision Final Plat (10+ lots) $3,187 +30 $4,363 $1,176 $1,533 $slum $1 $2,913 $7,813 $22/mt $9,000 $1,500 $3,250 $1697/ let' Binding Site Improvement Plan $3,497 $5,368 $1,871) $1,139 $62/1.1,2 meetings $5,312 $1593 for m nor $2,252 $6,264 +$22n.t $12,500 +.10 /sf of lot area $1,800 ann esi en is Development, 5 2 meetings +so/.na +.10 /s g aoo units Shoreline Permits Substantial Development Permit average fee $3,320 $2,361 $959 $1 139 $1 151 $3 791 UP io $13,818 $1 456 $3,500 $2,000 $3 varies $350.8000 Permit Exemption Letter, Shoreline $222 $183 $39 $215 $147 $85 $325 $175 $150 Conditional Use Permit, Shoreline $3,554 +HE $2,889 $665 $1,139 $1,151 $5,8631 $1,681 1 $5,500 $2,000 When fees charged by other cities vary based on size or cost of project, the average of the potential fees is calculated. Auburn Hearing Examiner Costs passed through to applicant Federal Way Fees are divided into Planning, Fire and PW allocations. All are included. Burien Charges development engineering fees at $77 /hr with fee estimate included. Extra planning staff time is billed at $77 /hr for special staff analysis. Professional services are billed to applicant at cost. Des Moines Charges development engineer fees in addition to planner fees on all final plats (SP, SD, BSIP, PUD). Charges deviation and resubmittal fees. Renton Charges $75 /hr for complicated, modified, large, technical projects at City's discretion beyond typical review. SeaTac Charges development engineer fees in addition to planner fees. Both fees are shown on the table. Hearing examiner costs are not passed through to applicant. 1 +X) indicates hourly billing for hours logged over X +HE) indicates that Hearing Examiner costs will be passed through to the applicant 2 Includes Engineering review Fees p A RESOLUTION THE CITY COUNCIL THE CITY TUKWILA, WASHINGTON, ADOPTING A LAND USE FEE SCHEDULE AND REPEALING RESOLUTION NOS. 1722 AND 1768. WHEREAS, the City intends to update land use permit fees on an annual basis with any increases tied to growth in City expenses for providing land use services; and WHEREAS, the City Council wishes to recover the City's costs for review and processing of permit applications; and WHEREAS, the City has adopted a biennial budget process; and WHEREAS, the overall budgeted increase is 4% for 2013 and 2.9% for 2014; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Fee Schedule. Land use permit and processing fees will be charged according to the following schedule: Decision Type 2013 Feel Retainer 2014 Fee/ Retainer Plus Hearing Examiner Fees Plus Review Hours over Retainer Appeal Type 1, 2 and 4 Decisions $563 $579 SEPA MDNS Appeal $563 $579 Impact Fees: Fire $563 $579 Parks $563 $579 Transportation $563 $579 WAWord Processing\ResolutionsIand Use Fee Schedule 10-31-12 NG:bjs Page 1 of 5 R Decision Type 2013 Fee/ Retainer 2014 Fee/ Retainer Plus Hearing Examiner Fees Plus Review Hours over Retainer Sign Permit (TMC Chapter 19) Permanent $231 $238 Temporary $100 $104 Pole /Banner Initial Application $231 $238 Special Event $100 $104 Pole /Banner Annual Renewal $50 $52 New Billboard $563 $579 Master Sign Program —Admin $2,070 $2,130 Master Sign Program —BAR $3,314 $3,411 Appeal of Sign Code Decision $563 $579 Design Review'; (TMC Section 18.60, 030) Administrative $2,130 $2,192 Public Hearing $3,817 $3,927 Major Modification $1,305 $1,343 Minor Modification $593 $610 Variances, Special Permissions &Site Plan Review Variances (TMC Section 18.72) $2,692 $2,770 +HE Parking Variance (Type 3 —TMC Section 18.56.140) $924 $950 +HE Administrative Parking Variance (Type 2 —TMC Section 18.56.140) $563 $579 Environmentally Sensitive Areas Deviation, Buffer Reduction (TMC Chapter 18.45) $1,425 $1,466 hours over 15 Reasonable Use Exception (TMC Section 18.45.180) $2,850 $2,932 +HE hours over 30 TSO Modification to Development Standard (TMC Section 18.41.100) $563 $579 Exception from Single Family Design Standard (TMC Section 18.50.050) $563 $579 Special Permission Cargo Container (TMC Section 18.50.060) $563 $579 Landscape Perimeter Averaging (TMC Section 18.52.060) $563 $579 Parking Standard for use not specified (TMC Section 18.56. 100) $47_5 $489 hours over 5 Residential Parking Reduction (TMC Section 18.56.065) $563 $579 W: \Word Processing \Resolutions \Land Use Fee Schedule 10 -31 -12 NG:bjs Page 2 of 5 Decision Type 2013 Fee/ Retainer 2014 Fee/ Retainer Plus Hearing Examiner Fees Plus Review Hours over Retainer Variances, Special Permissions Site Plan Review (continued) Shared, covenant, Complementary Parking Reduction (TMC Section 18.56.070) $563 $579 Parking Lot Restriping (TMC Section 18.56.120) $563 $579 Tree Permit and Exceptions (TMC Chapter 18.54) $100 $103 Lot Creation and Consolidation Boundary Line Adjustment (TMC Chapter 17.08) $1,597 $1,644 Lot Consolidation (TMC Chapter 17.08) $593 $610 Short Plat (2 4 lots) (TMC Chapter 17.12) $3,637 $3,742 Short Plat (5 9 lots) (TMC Chapter 17.12) $4,139 $4,259 Subdivision: Preliminary Plat (10+ lots) (TMC Section 17.14.020) $4,750 $4,888 +HE hours over 50 Final Plat (10+ lots) (TMC Section 17.12.030) $2,850 $2,932 hours over 30 Binding Site Improvement Plan (TMC Chapter 17.16) $3,637 $3,742 Planned Residential Development: Administrative (TMC Section 18.46. 110) $2,070 $2,130 Public Hearin (TMC Section 18.46. 110) $4,750 $4,888 hours over 50 Minor Modification (TMC Section 18.46.130) $563 $579 Major Modification (TMC Section 18.46.130) $2,310 $2,377 Wireless' Communication Facility (TMC Chapter 18. 58.050) Minor (Type 1) $563 $579 Administrative (Type 2) $1,597 $1,644 Major or Height Waiver (Type 3) $3,194 $3,286 +HE SEPA Environmental Checklist $1,628 $1,675 SEPA EIS $2,850 $2,932 hours over 30 SEPA Planned Action $563 $579 SEPA Addendum $563 $579 Sensitive Area Master Plan Overlay (TMC Section 18.45.160) $4,750 $4,888 hours over 50 W: \Word Processing \Resolutions\Land Use Fee Schedule 10 -31 -12 NG:bjs Page 3 of 5 Decision Type 2013 Fee/ Retainer 2014 Fee/ Retainer Plus Hearing Examiner Fees Plus Review Hours over Retainer Shoreline P ermits Substantial Development Permit: (TMC Cha 18.44) Project value: $5,000- 1 0,000 $1,125 $1,158 $10,001 50,000 $2,632 $2,709 $50,001 500,000 $4,198 $4,320 M ore than $500,000 $5,324 $5, Permit Exemption Letter, Shorelin $231 $238 Conditional Use Permit, Shoreline (TMC Section 18.44.050) $3,696 $3,803 +HE Shore Tree Per (TMC Chapter 18. $100 $103 Shoreline E nvironment R edesi nation $2,850 $2,932 +hours over 30 Noise V ariance (TMC Sect ion 8.22.120) Type 1 $462 $475 Type II $623 $641 Type III $1,385 $1,425 +HE Use Permits Conditional Use Permit (TMC Section 18.64.020) $3,696 $3,803 +HE Unclassified Use Permit (TMC Chapter 18.66) $4,750 $4,888 +hours ov er 50 TSO Special Permission Use (TMC Secti 18.41.060) $924 $950 +HE Co Plan Changes (TMC Chapter 18.84) Rezone (Map Change) $3,325 $3,421 hours over 35 Comprehensive Plan Amendment $3,800 $3,910 hours over 40 Zoning Co T ext Amend $4,319 $4,444 i W: \Word Processing \Resolutions \Land Use Fee Schedule 10 -31 -12 NG:bjs Page 4 of 5 Dec ision Type 2013 Fee/ Retainer 2014 Fee/ Retainer Plus Hearing Examiner Fees Plus Review Hours over Retainer Misce llaneous Services and Charges Development Agreement $1,900 $1,955 hours over 20 Code Interpretation (TMC Sect 18.90. $332 $341 Zoning Verification Lett $332 $341 Le al Lot Verification $532 $548 Prea plication Meeting $462 $475 M ailing Fee to Generate Labels, p project $437 $449 Public Notice Mailing Fee per address for each maili $1 $1 For permits marked hours over...," the retainer covers the specified number of review hours. Hours over this retainer will be charged at $95 in 2013 and $98 in 2014. All peer review fees will be passed through to the applicant per TMC Section 18.50.200. Section 2. Repealer. Resolution No. 1722 dated August 16, 2010, and resolution No. 1768 dated May 21, 2012, are hereby repealed effective December 31, 2012. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTHENTICATED Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President Shelley M. Kerslake, City Attorney WAWord Processing \Resolutions\Land Use Fee Schedule 10 -31 -12 NGbjs Filed with the City Clerk:_ Passed by the City Council: Resolution Number: Page 5 of 5 N irs City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director DATE: 11/01/12 SUBJECT: 2013 Property Tax Levy ISSUE Approval of ordinances adopting general property tax levy and regular tax levy for 2013 by November 30, 2012. BACKGROUND A Public Hearing for adoption of the 2013 property tax levy is required by RCW 84.55.120. The Hearing is scheduled for November 13, 2012. The City was notified on October 23, 2012 that the assessed value for Tukwila for 2013 is projected to be $4,603,990,258. The allowable levy projected by King County and documented on the Preliminary Levy Limit Worksheet -2013 Tax Roll is $13,839,489, representing the maximum 1% increase allowed by law. DISCUSSION The assessed value and the allowable levy are subject to change until final levy rate determination. A levy amount of $13,900,000 will be used for the ordinance. If the final allowable levy is less than the ordinance amount, King County Department of Assessments will adjust the ordinance amount to the final allowable levy amount and no further action the Council will be required. If the final allowable levy is more than the ordinance amount, a revised ordinance will be presented to Council at the Regular Meeting on December 3, 2012 for approval. RECOMMENDATION The Council is being asked to approve the ordinance adopting the General Tax Levy and the ordinance adopting the Regular Tax Levy at the November 13, 2012 Committee of the Whole meeting and subsequent November 19, 2012 Regular Meeting. A public hearing has also been scheduled at the November 13, 2012 Committee of the Whole. ATTACHMENTS Draft Ordinances Preliminary Levy Limit Worksheet -2013 Tax Roll 11 12 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, LEVYING THE GENERAL TAXES FOR THE CITY OF TUKWILA IN KING COUNTY FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2013, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN SAID CITY, WHICH IS SUBJECT TO TAXATION FOR THE PURPOSE OF PAYING SUFFICIENT REVENUE TO CARRY ON THE SERVICES OF THE SEVERAL DEPARTMENTS OF SAID CITY FOR THE ENSUING YEAR, AS REQUIRED BY LAW; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Tukwila has considered the City's anticipated financial requirements for 2013 and the amounts necessary and available to be raised by ad valorem taxes on real, personal and utility property; and WHEREAS, the final assessed valuation calculation has been determined; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Regular Tax Levy. A. There shall be and hereby is levied on all real, personal and utility property in the City of Tukwila, in King County, whose estimated assessed valuation is $4,603,990,258, current taxes for the ensuing year commencing January 2013, in the amount and at the rates specified below: Amount Regular Tax Levy $13,900,000 B. The said taxes herein provided for are levied for the purpose of payment upon the general bonded indebtedness of the City of Tukwila, the General Fund, and for the maintenance of the departments of the municipal government of the City of Tukwila for the fiscal year beginning January 1, 2013. W: Word Processing \Ordinances \General Tax Levy 10 -26 -12 VC: bjs Page 1 of 2 13 Section 2. Collection. This ordinance shall be certified to the proper County officials, as provided by law, and taxes here levied shall be collected to pay to the Finance Director of the City of Tukwila at the time and in the manner provided by the laws of the State of Washington for the collection of taxes for non chartered code cities. Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 4. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 5. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force and effect January 1, 2013. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Jim Haggerton, Mayor APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney W: Word Processing \Ordinances \General Tax Levy 10 -26 -12 VC:bjs Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 2 of 2 W AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, INCREASING THE CITY OF TUKWILA REGULAR LEVY FROM THE PREVIOUS YEAR, COMMENCING JANUARY 1, 2013, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN COMPLIANCE WITH RCW 84.55.120; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila has properly given notice of a public hearing held on November 13, 2012, pursuant to RCW 84.55.120; and WHEREAS, after hearing and duly considering all relevant evidence and testimony presented, the City Council has determined that in order to discharge its expected expenses and obligations the City requires an increase in property tax revenue from the previous year, in addition to the increase resulting from the addition of new construction and improvements to property and any increase in the value of State assessed property; and WHEREAS, the City Council has determined it is in the City's best interest and necessary to meet its expenses and obligations for the property tax revenue to be increased for 2013, and the final assessed valuation calculation has been determined; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. An increase in the regular property tax levy, in addition to any amount resulting from the addition of new construction and improvements to property and any increase in the value of State assessed property, is hereby authorized for the 2013 levy in the amount of $16,271, which is a percentage increase of 1.0% from the previous year. This increase is exclusive of additional revenue resulting from new construction, improvements to property, any increase in the value of State assessed property, any annexations that have occurred and refunds made. W: Word Processing \Ordinances \Regular Tax Levy Increase 10 -26 -12 vc:bjs Page 1 of 2 15 Section 2. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force and effect January 1, 2013. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTH ENTICATED: Christy O'Flaherty, MMC, City Clerk Jim Haggerton, Mayor APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances \Regular Tax Levy Increase 10 -26 -12 VC: bjs Page 2 of 2 IL LEVY LIMIT WORKSHEET 2013 Tax Roll TAXING DISTRICT: City of Tukwila The following determination of your regular levy limit for 2013 property taxes is provided by the King County Assessor pursuant to RCW 84.55.100. Annexed to Library District (Note 1) Estimated Library rate: 0.50000 Using Limit Factor Using Implicit For District Calculation of Limit Factor Levy Price Deflator 13,647,706 Levy basis for calculation: (2012 Limit Factor) (Note 2) 13,647,706 1.0100 x Limit Factor 1.0295 13,784,183 Levy 14,050,313 10,077,387 Local new construction 10,077,387 0 Increase in utility value (Note 3) 0 10,077,387 Total new construction 10,077,387 2.95408 x Last year's regular levy rate 2.95408 29,769 New construction levy 29,769 13,813,952 Total Limit Factor Levy 14,080,082 Annexation Levy 0 Omitted assessment levy (Note 4) 0 13,813,952 Total Limit Factor Levy new lid lifts 14,080,082 4,603,990,258 Regular levy assessed value less annexations 4,603,990,258 3.00043 Annexation rate (cannot exceed statutory maximum rate) 3.05823 0 x Annexation assessed value 0 0 Annexation Levy 0 Calculation of statutory levy Lid lifts, Refunds and Total Regular levy assessed value (Note 8) 0 First year lid lifts 0 13,813,952 Limit Factor Levy 14,080,082 13,813,952 Total RCW 84.55 levy 14,080,082 25,537 Relevy for prior year refunds (Note 5) 25,537 13,839,489 Total RCW 84.55 levy refunds 14,105,619 Levy Correction: Year of Error +or- 13,839,489 ALLOWABLE LEVY Note 6 14,105,619 Increase Information (Note 7) 3.00598 Levy rate based on allowable levy 3.06378 13,767,912 Last year's ACTUAL regular levy 13,767,912 16,271 Dollar increase over last year other than N/C Annex 282,401 0.12% Percent increase over last year other than N/C Annex 2.05% Calculation of statutory levy Regular levy assessed value (Note 8) 4,603,990,258 x Maximum statutory rate 3.10000 Maximum statutory levy 14,272,370 +Omitted assessments levy 0 Maximum statutory levy 14,272,370 Limit factor needed for statutory levy NOT USABLE ALL YEARS SHOWN ON THIS FORM ARE THE YEARS IN WHICH THE TAX IS PAYABLE. Please read carefully the notes on the reverse side. 10/23/12 4:33 PM LevyLimitW S.doc 17 im City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director DATE: November 1, 2012 SUBJECT: 2012 Year -End Budget Amendment ISSUE Adjust the biennial budget to reflect new policies and circumstances, add appropriation to funds at risk of exceeding budget in order to remain in compliance with state law, and reallocate budget authority among General Fund departments to prevent over budget situations, consistent with past City practice. BACKGROUND The budget modifications refine the budget pursuant to Tukwila Municipal Code 3.30.020 and RCW 35A.33.120. The ordinance amending the budget must be passed before the end of the calendar year. The purpose and type of adjustments proposed for the 2012 budget modification are as follows: Council Decisions Approvals Revenue Backed Expenditures Other budgetary changes for: Expenditures exceeding budget Accounting changes Costs carried over to 2013 As demonstrated by the attached budget adjustment worksheet and ordinance draft, and as discussed below, although budget changes for several line items are proposed, only two changes, items 16 and 17 on the budget adjustment worksheet, result in adjustment to the City- wide biennial budget. DISCUSSION General Fund 000 Additional budget is added to fund the Strategic Plan, provide for additional costs associated with the new firefighter labor agreement and reflect the employee reinstatement stemming from the 2010 reduction in force. The Municipal Court increased staffing by .25 full time equivalents as part of a service initiative whereby probation services are provided to the City of SeaTac by the City's Jail Alternative Specialist. These additional costs are funded through the service fees charged to SeaTac. Certain other General Fund departments experienced higher actual costs than originally estimated due to utility rate increases and other reasons. These increases in budgeted costs are offset by a reduction in the Department 20 transfers -out account resulting in W e INFORMATIONAL MEMO Page 2 no change to the biennial budget. Additional indirect cost allocation revenue derived from a Public Works overhead charge (see Finance and Safety April 3, 2012 agenda packet for more information) and the revenue generated from the SeaTac probation services is offset by a reduction in sale of capital asset revenue. Actual General Fund revenue for 2012 is not expected to exceed the existing budgeted revenue. Again, these budget amendments have no net effect on the biennial budget. Fire Equipment Cumulative Reserve Fund 107 Budget is added to cover fire mitigation supply expenditures not contemplated in the original budget. Funding comes from the ending fund balance, some of which derives from Sound Transit contributions received in prior years for fire mitigation supplies and equipment. These budget changes have no net effect on the biennial budget. Drug Seizure Fund 109 Budget is added to cover the cost of equipping the new police Neighborhood Resource Center (NRC) for occupancy and use by the Police Department. Funding for these costs comes from the ending fund balance. These budget changes have no net effect on the biennial budget. Debt Service Funds Budget is added to certain debt service funds to cover registration costs, to reflect application of an accounting principle, and to appropriate budget for debt service for the 2011 bond refunding. The refunding was approved and completed in 2011; however the budget was not amended at that time to reflect the new debt service. The biennial budget is increased for the accounting change and for the debt service on the 2011 bond refunding. General Government Improvements Fund 303 Removal of flood mitigation measures the Hesco and Super Sacks began this year but is scheduled to continue in 2013. The construction budget is reduced to reflect the extended completion time for the project. Water Fund 401 Indirect cost allocation budget is increased to reflect an additional charge for Public Works overhead. Budget is also added for Revenue Bond 1995 debt service. This bond was scheduled to be paid off in December 2011; the debt service budget was removed via the 2011 mid biennium budget modification accordingly. However, the bond was not paid off due to bond provisions precluding this and the debt service budget must be reinstated. The additional expenditure budget is funded through ending fund balance; therefore there is no net effect on the biennial budget. Water Fund 402 Indirect cost allocation budget is increased to reflect an additional charge for Public Works overhead. The additional expenditure budget is funded through ending fund balance; therefore, there is no net effect on the biennial budget. W:11Users\Peggy\Budget 13- 1AAmendments 201211nfo Memo Budget Amendment2012 FINAL.doc 20 INFORMATIONAL MEMO Page 3 Water Fund 412 Indirect cost allocation budget is increased to reflect an additional charge for Public Works overhead. The additional expenditure budget is funded through ending fund balance; therefore, there is no net effect on the biennial budget. Water Fund 501 Indirect cost allocation budget is increased to reflect an additional charge for Public Works overhead. The additional expenditure budget is funded through ending fund balance; therefore, there is no net effect on the biennial budget. Health Insurance Fund 502 Budget for medical costs is increased as a result of actual expenditures and due to an actuarial increase in the IBNR (incurred but not reported) reserve. The additional expenditure budget is funded through ending fund balance; therefore there is no net effect on the biennial budget. FINANCIAL IMPACT Expenditures and revenues of the biennial budget are increased by $321,165. RECOMMENDATION The Finance and Safety Committee is being asked to approve the 2012 year -end budget amendment. This item is scheduled for the November 26, 2012 Committee of the Whole, and December 3, 2012 Regular Council Meeting. ATTACHMENTS Draft Ordinance 2012 Year -End Budget Summary 2012 Year -End Budget Amendment Worksheet W:\lUsers\Peggy\Budget 13- 141Amendments 201211nfo Memo Budget Amendment2012 FINAL.doc 21 22 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2319, WHICH ADOPTED THE CITY OF TUKWILA'S BIENNIAL BUDGET FOR THE 2011 -2012 BIENNIUM, TO ADOPT AN AMENDED BIENNIAL BUDGET; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on December 6, 2010, the City Council of the City of Tukwila adopted Ordinance No. 2319, which adopted the 2011 -2012 biennial budget of the City of Tukwila; and WHEREAS, on November 26, 2012, following required public notification, the City Council conducted a public hearing on the proposed 2012 year -end budget amendment; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance Amended. Tukwila Ordinance No. 2319 is hereby amended with the City Council's adoption of the document entitled "City of Tukwila 2012 Year -End Budget Amendment," attached hereto and incorporated by this reference as if fully set forth herein, in accordance with RCW 35A.34.200. Section 2. Estimated Revenues and Appropriations. The totals of the estimated revenues and appropriations for each separate fund and the aggregate totals are as follows: FUND EXPENDITURES REVENUES 000 General $105,924,696 $105,924,696 101 Hotel /Motel Tax Fund $3,652,148 $3,652,148 104 Arterial Street $95,408,930 $95,408,930 214 LTGO Bonds 2010A $134,681 $134,681 215 LTGO Bonds 2010B $64,541 $64,541 303 General Gov Improvements $3,858,545 $3,858,545 W: Word Processing \OrdinancesWmend 2011 -2012 Biennial Budget 10 -26 -12 VC:bjs Page 1 of 2 23 Section 3. Copies on File. A complete copy of the final budget for 2011 -2012, as adopted, together with a copy of this amending ordinance, shall be kept on file in the City Clerk's Office, and a copy shall be transmitted by the City Clerk to the Division of Municipal Corporations of the Office of the State Auditor and to the Association of Washington Cities. Section 4. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 5. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 6. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTH ENTICATED: Christy O'Flaherty, MMC, City Clerk Jim Haggerton, Mayor APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Attachment: City of Tukwila 2012 Year -end Budget Amendment W: Word Processing \Ordinances\Amend 2011 -2012 Biennial Budget 10 -26 -12 VC:bjs Page 2 of 2 24 CITY OF TUKWILA 2012 YEAR -END BUDGET AMENDMENT SUMMARY 25 2011 -2012 Adopted 2012 Year- Adjusted Budgetas End 2011 -2012 Modified Amendment Budget Fund 000 General $114,598,514 114,598,514 101 Hotel /Motel Tax 3,796,633 3,796,633 103 City Street 1,755,171 1,755,171 104 Arterial Street 56,202,266 56,202,266 105 Contingency 5,755,708 5,755,708 107 Fire Equipment Cumulative Reserve 1,673,041 1,673,041 109 Drug Seizure Fund 614,000 614,000 209 Limited Tax G.O. Bonds, 2003 4,489,882 4,489,882 210 Limited Tax G.O. Refunding Bonds, 2003 1,002,825 1,002,825 211 Limited Tax G.O. Refunding Bonds, 2008 1,681,171 1,681,171 212 Limited Tax G.O. Bonds, 2009A 60,350 153,200 213,550 213 Limited Tax G.O. Bonds, 2009B 509,043 509,043 214 Limited Tax G.O. Bonds, 2010A 789,750 789,750 215 Limited Tax G.O. Bonds, 20106 386,900 386,900 216 Limited Tax G.O. Refunding Bonds Valley Com 403,900 403,900 217 Limited Tax G.O. Refunding Bonds, 2011 167,965 167,965 301 Land Acquisition, Recreation Park Development 9,792,015 9,792,015 302 Facility Replacement 3,891,877 3,891,877 303 General Government Improvements 3,658,109 3,658,109 304 Fire Improvements 430,300 430,300 401 Water 17,413,433 17,413,433 402 Sewer 15,802,626 15,802,626 405 Bond Reserve 822,000 822,000 411 Foster Golf Course 4,855,278 4,855,278 412 Surface Water 9,867,549 9,867,549 501 Equipment Rental 11,418,895 11,418,895 502 Insurance Fund 17,563,949 17,563,949 503 Insurance LEOFF 1 Fund 3,754,886 3,754,886 611 Firemen's Pension 2,995,616 2,995,616 Total $295,985,687 321,165 296,306,852 25 CITY OF TUKWILA 2012 YEAR -END BUDGET AMENDMENT WORKSHEET Revenue Backed Expenditures 4 Municipal Court Additional .25 FTE for provision Salaries 000.09.523.300.11.00 20,000 of probation services to the City Various Benefits 000.09.523.300.2x.xx of SeaTac 2,000 22,000 Other revenue 000.369.xxx.xx.xx 22,000 Other 5 City Attorney Actual in excess of budget Tukwila Village and other matters 6 Police Department Actual in excess of budget 7 Park Maintenance Actual in excess of budget water and surface water costs 8 Street Maintenance Actual in excess of budget 9 Department 20 Special Matters 000.06.515.200.41.03 Monitoring of Prisoners 000.10.523.200.41.00 24,000 Valley Com Dispatch 000.10.528.600.51.00 53,000 Public Utility Services/ 000.15.576.800.47.xx SSWM charges Public Utility Services/ 000.16.542.300.47.xx SSWM charges Reduce transfers to Transfers out 000.20.597.000.00.00 Contingency fund 10 Revenue Biennial Budget WORKSHEET Transfers -In 000.397.190.00.00 derived from Public Works overhead charge Increase (Decrease) Proceeds from the sale 000.395.100.00.00 revenue account to offset Detail Expenditure Revenues Revenues Expenditures a e a Council Decisions Approvals 1 Mayor's Department Strategic Plan Professional Services 000.03.513.100.41.02 130,000 2 Fire Department Firefighter signing bonus and Salaries 000.11.522.200.11.00 195,235 training budget resulting from Salaries 000.11.522.300.11.00 11,954 new labor agreement. Salaries 000.11.522.400.11.00 7,949 Salaries 000.11.522.600.11.00 4,629 FICA 000.11.522.200.21.00 2,666 FICA 000.11.522.300.21.00 163 FICA 000.11.522.400.21.00 109 FICA 000.11.522.600.21.00 63 222,768 Training budget 000.11.522.400.49.04 12,000 3 Parks Maintenance Department Reinstatement of 1.5 FTE in Salaries 000.15.576.800.11.00 91,613 2011 resulting from Teamsters FICA 000.15.576.800.21.00 6,909 reduction in force agreement PERS 000.15.576.800.23.00 6,706 Labors Industries 000.15.576.800.24.00 2,600 Med, Dent, Life, Opt 000.15.576.800.25.00 8,964 Self Ins Med /Dent 000.15.576.800.25.97 828 117,620 Revenue Backed Expenditures 4 Municipal Court Additional .25 FTE for provision Salaries 000.09.523.300.11.00 20,000 of probation services to the City Various Benefits 000.09.523.300.2x.xx of SeaTac 2,000 22,000 Other revenue 000.369.xxx.xx.xx 22,000 Other 5 City Attorney Actual in excess of budget Tukwila Village and other matters 6 Police Department Actual in excess of budget 7 Park Maintenance Actual in excess of budget water and surface water costs 8 Street Maintenance Actual in excess of budget 9 Department 20 Special Matters 000.06.515.200.41.03 Monitoring of Prisoners 000.10.523.200.41.00 24,000 Valley Com Dispatch 000.10.528.600.51.00 53,000 Public Utility Services/ 000.15.576.800.47.xx SSWM charges Public Utility Services/ 000.16.542.300.47.xx SSWM charges Reduce transfers to Transfers out 000.20.597.000.00.00 Contingency fund 10 Revenue Indirect cost allocation revenue Transfers -In 000.397.190.00.00 derived from Public Works overhead charge 11 Reduction in overbudgeted Proceeds from the sale 000.395.100.00.00 revenue account to offset of Capital assets revenue increases 100,000 77,000 20,000 80,000 (781, 388) 605,618 (627,618) TOTAL GENERAL FUND 26 CITY OF TUKWILA 2012 YEAR -END BUDGET AMENDMENT WORKSHEET 27 Biennial Budget WORKSHEET Increase (Decre Detail Expenditure Revenues Revenues Expenditures c Other 12 Fire mitigation supplies funded Fire Mitigation Supplies 107.00.526.800.31.02 10,000 through Sound Transit revenues received in prior Est Ending Unreserved 107.00.291.840.00.00 (10,000) years; no budget provided for Fund Balance 2012 TOTAL FIRE EQUIPMENT RESERVE Council Decisions /Approvals 13 Neighborhood Resource Center Machinery Equipment 109.00.594.215.64.00 53,000 tenant improvements Est Ending Unreserved 107.00.291.840.00.00 (53,000) Fund Balance TOTAL DRUG SEIZURE FUND Other- Accounting change, 14 Actual in excess of budget Debt Registration Cost 210.00.592.730.85.00 1,000 Ending fund balance 210.00.291.840.00.00 (1,000) 15 Actual in excess of budget Debt Registration Cost 211.00.592.190.85.00 1,000 Ending fund balance 211.00.291.840.00.00 (1,000) 16 Accounting change to reflect Principal Payment 212.00.591.950.71.00 153,200 153,200 principal payment by SCORE Capital Contribution 212.379.xxx.xx.xx 153,200 153,200 on behalf of City as capital contribution Council Decisions /Approvals 17 2011 bond refunding; budget Debt Principal 217.00.591.950.71.00 25,000 was not added at time of Debt Interest 217.00.591.950.83.00 141,965 Council approval Debt Registration Cost 217.00.592.950.85.00 1,000 167,965 167,965 Transfer In 217.397.197.00.00 167,965 167,965 TOTAL DEBT SERVICE FUNDS 321,165 321,165 Other 1g Temporary levee removal work Construction Projects 303.98.594.190.65.00 (700,000) extended to 2013, budget Ending fund balance 303.00.291.840.00.00 700,000 reduction /carryover TOTAL GENERAL GOVT IMPROVEMENTS •s Other- 19 Additional indirect cost Misc General Govt 401.01.597.190.00.00 151,158 allocation charge for Public Works overhead Council Decisions /Approvals 20 Debt service budget added Interest 401.02.592.346.83.00 80,495 back for Revenue bond '95 Principal 401.02.582. 310,000 390,495 27 CITY OF TUKWILA 2012 YEAR -END BUDGET AMENDMENT WORKSHEET WORKSHEET Biennial Budget Increase (Decrease) 2qLay Expendity Revenues Revenues Expenditures mmcjy);,.< ommy m mom Other 22 Additional indirect cost Misc General Govt 412.01.597.190.00.00 187,122 allocation charge for Public Ending working capital 412.02.293.800.00.00 (187,122) Wo rk s o verhead TOTAL SURFACE WATER FUND Other 23 Additional indirect cost Misc General Govt 501.01.597.190.00.00 94,419 allocation charge for Public Works overhead Ending working capital 501.002.293.800.00.0 (94,419) W City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director DATE: November 1, 2012 SUBJECT: 2013 -2014 Biennial Budget Ordinance 2013 -2014 Financial Planning Model and Capital Improvement Program ISSUE Adopt the 2013 -2014 biennial budget and 2013 -2018 Capital Improvement Plan (CIP) by the end of December. This typically happens at the first Regular meeting in December. BACKGROUND The proposed preliminary budget for 2013 -2014 and draft 2013 -2018 CIP were presented to Council on October 1, 2012. Council held budget workshops on October 10, 11, and 12, 2012 to discuss the budget and CIP. Changes proposed by Council at the budget workshops were taken into consideration and then incorporated into the preliminary budget. The preliminary 2013 -2014 budget was presented to Council on October 22, 2012. Since that time, one final addition has been made to the preliminary budget. The addition is explained in detail below. DISCUSSION The preliminary 2013 -2014 biennial budget reflects the recommendations suggested by Council during the budget workshops. At this time, the preliminary 2013 -2014 biennial budget is being presented to Finance Safety Committee for review and discussion. A list of changes to the proposed preliminary budget was presented to the Council at the October 22, 2012 Committee of the Whole meeting. These changes included, among other items, increasing the General Fund biennial expenditures by $1.8 million for comprehensive crime reduction initiatives, additional funding of $200 thousand to continue the Strategic Plan initiative, restoring the self- insured healthcare premium for active employees, removing the funding for the LEOFF 1 retiree self- insured healthcare plan for the biennium, and modifying the facilities plan to include only scope work planned through 2014. Additionally, the budget creates an annual investment in safe sidewalks in neighborhoods. A final change to the preliminary budget is to add one position to the Mayor's Office. This position, Government Relations Manager, will be heavily involved with continuing the efforts of the Strategic Plan by enhancing community relations, engaging public in activities of the City, and fostering communications with diverse ethnic groups. This position will also be a part of federal, state, and local affairs and actively work with Association of Washington Cities (AWC), Suburban Cities Association, and King County regional committees. Additionally, this position will play an integral part in obtaining grant revenue for the City and be dedicated to State legislative issues. 29 INFORMATIONAL MEMO Page 2 RECOMMENDATION The Finance and Safety Committee is being asked to approve the 2013 -2014 biennial budget ordinance and the 2013 -2018 Financial Planning Model and Capital Improvement Plan resolution and forward to the Committee of the Whole. This item is scheduled for the November 6, 2012 finance Safety Committee meeting, the November 26, 2012 Committee of the Whole, and December 3, 2012 Regular Council Meeting. ATTACHMENTS Draft Budget Ordinance Draft CIP Resolution Reconciliation of the 2013 -2014 Budget Summary to Ordinance ME AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE BIENNIAL BUDGET OF THE CITY OF TUKWILA FOR THE 2013- 2014 BIENNIUM; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the preliminary budget of the City of Tukwila for the 2013 -2014 biennium was submitted to the City Council in a timely manner for their review, and WHEREAS, a Public Hearing on the proposed budget was advertised and held on November 26, 2012; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council hereby adopts the document entitled "City of Tukwila 2013 -2014 Budget," incorporated by this reference as if fully set forth herein, in accordance with RCW 35A.34.120. Section 2. The totals of the estimated revenues and appropriations for each separate fund and the aggregate totals are as follows: W: Word Processing \Ordinances\Adopt 2013 -2014 Biennial Budget 10 -26 -12 VC:bjs Page 1 of 3 31 Total Total Fund Expenditures Revenues 000 General $120,930,819 $120,930,819 101. Hotel /Motel 3,712,082 3,712,082 103 City Street 4,600,000 4,600,000 104 Arterial Street 48,987,820 48,987,820 105 Contingency 5,203,632 5,203,632 107 Fire Equipment Cumulative Reserve 1,030,000 1,030,000 109 Drug Seizure Fund 472,000 472,000 209 Limited Tax G.O. Bonds 2003 3,379,788 3,379,788 210 Limited Tax G.O. Refunding Bonds, 2003 979,750 979,750 211 Limited Tax G.O. Refunding Bonds, 2008 1,550,000 1,550,000 212 Limited Tax G.O. Bonds, 2009A 865,000 865,000 W: Word Processing \Ordinances\Adopt 2013 -2014 Biennial Budget 10 -26 -12 VC:bjs Page 1 of 3 31 Section 3. A complete copy of the final budget for 2013 -2014, as adopted, together with a copy of this adopting ordinance, shall be kept on file in the City Clerk's Office, and a copy shall be transmitted by the City Clerk to the Division of Municipal Corporations of the Office of the State Auditor and to the Association of Washington Cities. Section 4. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 5. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 6. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. W: Word Processing \Ordinances\Ndopt 2013 -2014 Biennial Budget 10 -26 -12 vc:bjs Page 2 of 3 32 Total Total Fund Expenditures Revenues 214 Limited Tax G.O. Bonds, 2010A 1,172,114 1,172,114 216 Limited Tax G.O. Refunding Bonds, ValleyComm 472,000 472,000 217 2011 Refunding Bonds 717,000 717,000 233 2013 LID 1,707,400 1,707,400 301 Land Acquisition, Recreation Park Devl. 4,577,000 4,577,000 302 Facility Replacement 6,366,204 6,366,204 303 General Government Improvements 2,173,684 2,173,684 304 Fire Improvements 400,200 400,200 401 Water 16,814,000 16,814,000 402 Sewer 14,401,000 14,401,000 411 Foster Golf Course 4,033,594 4,033,594 412 Surface Water 13,288,800 13,288,800 501 Equipment Rental 10,660,360 10,660,360 502 Insurance Fund 13,818,784 13,818,784 503 Insurance LEOFF 1 Fund 1,606,680 1,606,680 611 Firemen's Pension 1,537,300 1,537,300 Total All Funds Combined 285,457,011 285,457,011 Section 3. A complete copy of the final budget for 2013 -2014, as adopted, together with a copy of this adopting ordinance, shall be kept on file in the City Clerk's Office, and a copy shall be transmitted by the City Clerk to the Division of Municipal Corporations of the Office of the State Auditor and to the Association of Washington Cities. Section 4. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 5. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 6. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. W: Word Processing \Ordinances\Ndopt 2013 -2014 Biennial Budget 10 -26 -12 vc:bjs Page 2 of 3 32 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Jim Haggerton, Mayor Filed with the City Clerk Passed by the City Council: Published: Effective Date: Shelley M. Kerslake, City Attorney Ordinance Number: Attachment: City of Tukwila 2013 -2014 Budget W: Word Processing \OrdinancesWdopt 2013 -2014 Biennial Budget 10 -26 -12 VC:bjs Page 3 of 3 33 34 sFA� .�r. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE 2013 -2018 FINANCIAL PLANNING MODEL AND THE CAPITAL IMPROVEMENT PROGRAM FOR GENERAL GOVERNMENT AND THE CITY'S ENTERPRISE FUNDS. WHEREAS, when used in conjunction with the biennial City budget, the Capital Improvement Program (CIP) and the Financial Planning Model for the period 2013 -2018 are resource documents to help plan directions the City will consider for the future; and WHEREAS, the Financial Planning Model and Capital Improvement Program are not permanent fixed plans, but are guidelines or tools to help reflect future goals and future resources at the time budgets are being planned; and WHEREAS, the commitment of funds and resources can only be made through the budget process; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The City Council hereby adopts the 2013 -2018 Financial Planning Model and accompanying Capital Improvement Program, incorporated by this reference as if fully set forth herein. Section 2. A copy of the 2013 -2018 Financial Planning Model and accompanying Capital Improvement Program shall be kept on file in the City Clerk's Office. Section 3. The assumptions, revenues and expenditures will be reviewed and updated annually, or as necessary, by the City Council. Section 4. The detail of Capital Improvement Program projects will be reflected in the published Financial Planning Model and Capital Improvement Program 2013 -2018. W: \Word Processing- City \Resolutions \Financial Planning Model CIP 10 -26 -12 VC:bjs Page 1 of 2 35 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Filed with the City Clerk: Passed by the City Council: Resolution Number: Attachment: Financial Planning Model and Capital Improvement Program 2013 -2018 W: \Word Processing- City \Resolutions \Financial Planning Model CIP 10 -26 -12 VC: bjs Page 2 of 2 36 Reconciliation of 2013 -2014 Budget Summary to Ordinance 2013 2014 2014 Ending Total Fund Expenditures Expenditures Fund Balance Expenditures 000 General 55,526,548 59,976,109 5,428,162 120,930,819 101 Hotel /Motel 1,646,282 1,649,003 416,797 3,712,082 103 City Street 1,027,000 3,550,000 23,000 4,600,000 104 Arterial Street 23,583,425 25,212,291 192,104 48,987,820 105 Contingency 5,203,632 5,203,632 107 Fire Equipment Cumulative Reserve 1,030,000 1,030,000 109 Drug Seizure Fund 55,000 55,000 362,000 472,000 209 Limited Tax G.O. Bonds 2003 3,379,787 1 3,379,788 210 Limited Tax G.O. Refunding Bonds, 2003 490,500 488,250 1,000 979,750 211 Limited Tax G.O. Refunding Bonds, 2008 737,000 812,000 1,000 1,550,000 212 Limited Tax G.O. Bonds, 2009A 429,815 431,166 4,019 865,000 214 Limited Tax G.O. Bonds, 2010A 585,074 584,424 2,616 1,172,114 216 Limited Tax G.O. Refunding Bonds, ValleyComm 240,880 229,280 1,840 472,000 217 2011 Refunding Bonds 167,975 547,675 1,350 717,000 233 2013 LID 859,000 848,400 1,707,400 301 Land Acquisition, Recreation Park Devl. 1,122,000 2,682,000 773,000 4,577,000 302 Facility Replacement 1,590,000 4,365,000 411,204 6,366,204 303 General Government Improvements 1,454,937 460,205 258,542 2,173,684 304 Fire Improvements 400,200 400,200 401 Water 6,596,809 7,099,456 3,117,735 16,814,000 402 Sewer 7,163,884 6,683,813 553,302 14,401,000 411 Foster Golf Course 1,707,617 1,751,908 574,069 4,033,594 412 Surface Water 5,126,694 7,129,092 1,033,014 13,288,800 501 Equipment Rental 3,883,538 2,414,633 4,362,189 10,660,360 502 Insurance Fund 5,012,149 5,373,006 3,433,629 13,818,784 503 Insurance LEOFF 1 Fund 508,491 553,078 545,111 1,606,680 611 Firemen's Pension 70,900 72,727 1,393,673 1,537,300 Total 123,995,304 132,968,517 1 28,493,189 285,457,011 37 Reconciliation of 2013 -2014 Budget Summary to Ordinance 2013 Beginning Fund Fund Balance 2013 Revenues 2014 Revenues Total Revenues 000 General 5,000,000 59,515,079 56,415,741 120,930,819 101 Hotel /Motel 650,000 1,524,766 1,537,316 3,712,082 103 City Street 700,000 839,000 3,061,000 4,600,000 104 Arterial Street 3,000,000 20,994,820 24,993,000 48,987,820 105 Contingency 1,500,000 1,501,816 2,201,816 5,203,632 107 Fire Equipment Cumulative Reserve 1,030,000 1,030,000 109 Drug Seizure Fund 280,000 96,000 96,000 472,000 209 Limited Tax G.O. Bonds 2003 3,303,000 76,788 3,379,788 210 Limited Tax G.O. Refunding Bonds, 2003 1,000 490,500 488,250 979,750 211 Limited Tax G.O. Refunding Bonds, 2008 1,000 737,000 812,000 1,550,000 212 Limited Tax G.O. Bonds, 2009A 1,000 432,000 432,000 865,000 214 Limited Tax G.O. Bonds, 2010A 1,000 586,057 585,057 1,172,114 216 Limited Tax G.O. Refunding Bonds, ValleyComm 1,000 241,000 230,000 472,000 217 2011 Refunding Bonds 1,000 168,000 548,000 717,000 233 2013 LID 859,000 848,400 1,707,400 301 Land Acquisition, Recreation Park Devl. 500,000 1,149,000 2,928,000 4,577,000 302 Facility Replacement 2,000,000 5,602 4,360,602 6,366,204 303 General Government Improvements 200,000 1,347,842 625,842 2,173,684 304 Fire Improvements 300,000 50,100 50,100 400,200 401 Water 4,000,000 5,392,000 7,422,000 16,814,000 402 Sewer 1,100,000 6,655,000 6,646,000 14,401,000 411 Foster Golf Course 200,000 1,791,597 2,041,997 4,033,594 412 Surface Wafter 2,000,000 4,206,900 7,081,900 13,288,800 501 Equipment Rental 4,000,000 3,823,058 2,837,302 10,660,360 502 Insurance Fund 4,500,000 4,659,392 4,659,392 13,818,784 503 Insurance LEOFF 1 Fund 1,600,000 3,340 3,340 1,606,680 611 Firemen's Pension 1,420,000 58,650 58,650 1,537,300 Total 37,289,000 117,204,306 130,963,705 285,457,011 9: City of Tukwila_ Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM FROM: DATE: SUBJECT ISSUE Mayor Haggerton Finance and Safety Committee Peggy McCarthy, Finance Director November 1, 2012 Bond Issuance for Metropolitan Park District Approve the proposed financing method and schedule for funding the Tukwila Metropolitan Park District (MPD) capital improvements. BACKGROUND The MPD is beginning a major capital project to renovate the Tukwila pool, its primary asset. Financing options have been researched and presented to the MPD Board of Commissioners for consideration over the past months. At the October 15, 2012 MPD meeting, approval was received from the Board to move forward with a bond issuance by the MPD with a City guarantee. Subsequent to the October 15 meeting, the City guarantee was discussed with Alice Ostdiek of Foster Pepper PLLC, the bond counsel for the City and the MPD. A recent ruling by the Washington Supreme Court concerning a debt guarantee by the City of Wenatchee concluded in part that, "public guarantee of debt is legally equivalent to a public debt." Ms. Ostdiek pointed out that, should the bonds be issued by the City on behalf of the MPD, the issuance would have the advantage of the City's credit rating. DISCUSSION The City has two options for assisting the MPD with the capital improvement financing. The first option, the option that has been discussed previously, is for the MPD to issue bonds with a City guarantee; the terms of the guarantee would be documented in an interlocal agreement between the City and the MPD. The other option is to have the City issue the bonds, loan the bond proceeds to the MPD, then have the MPD pay back the loan in amounts equal to the debt service on the bonds. This essentially would be a pass through of the debt to the MPD by the City. The terms of the loan and repayment would be documented in an interlocal agreement between the MPD and the City. The second option is recommended because it is more straight forward, and it ensures the City's credit rating will be fully considered in pricing the bonds. If the bonds are to be issued in 2012, the following schedule must be met: 39 INFORMATIONAL MEMO Page 2 Council C.O.W. Meeting, November 13th Council Regular Meeting November 19 MPD Meeting November 19 Council C.O.W. Meeting, November 26 Council Meeting December 3rd Regular December 18 or 19 December 31 FINANCIAL IMPACT No net financial impact to the City. RECOMMENDATION Consider the financing interlocal agreement Approve the financing interlocal agreement Approve the financing interlocal agreement Consider the bond ordinance Approve the bond ordinance Bond pricing Bond closing The Finance and Safety Committee is being asked to approve the proposed financing structure and schedule for funding the Metropolitan Park District capital improvements. 40 W.12012 Info Memos- CouncillMPD debt Am