HomeMy WebLinkAboutCOW 2012-11-26 Item 3.2 - Public Hearing - Ordinance Adopting 2013-2014 Biennial Budget COUNCIL AGENDA SYNOPSIS
----------------------------------Initials--------------------------------- ITEM NO.
Meetin Date Pre pared by M or s re �ew Council r iew
• 11/13/12 PMC 3 (2)-(3) &
• 11/26/12 PMC ''
12/03/12 PMC 4A (2)-(3)
ITEM INFORMATION
STAFF SPONSOR: PEGGY MCCARTHY ORIGINAL AGENDA DATE: 11/13/12
AGENDA ITEM TITLE An Ordinance adopting the 2013-2014 biennial budget, and a resolution adopting
the 2013-2018 Capital Improvement Plan.
CATEGORY ® Discussion ❑Motion ® Resolution ® Ordinance ❑ Bid Award ® Public Hearing ❑ Other
llft Date 11/13/12 Mtg Date Mt
g Date 1213112 Mtg Date 12/3/12 Mt Date Mtg Date 11126112 Mtg Date
SPONSOR ❑ Council ❑Mayor ❑ HR ❑ DCD ® Finance ❑ Fire ❑ IT ❑ P&R ❑ Police ® PW/
SPONSOR'S City Council is being asked to approve an ordinance adopting the 2013-2014 biennial
SUMMARY budget, and a resolution adopting the 2013-2018 Capital Improvement Plan. These items
are scheduled for Council consideration at the 11/26/12 Committee of the Whole and
12/03/12 Regular Council meeting.
REVIEWED BY ❑ COW Mtg. ❑ CA&P Cmte ® F&S Cmte ❑Transportation Cmte
❑ Utilities Cmte ❑Arts Comm. ❑ Parks Comm. ❑ Planning Comm.
DATE: 11/06/12 COMMITTEE CHAIR: QUINN
RECOMMENDATIONS:
SPONSOR/ADMIN. Finance/Public Works
COMMITTEE For Information Only; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$281,857,011 $ $281,857,011
Fund Source: MISCELLANEOUS FINDING SOURCES,SEE DETAIL.
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
11/13/12
11/26/12
MTG. DATE ATTACHMENTS
11/13/12 Informational Memorandum dated 11/07/12
Draft Ordinance and Draft Resolution
Reconciliation of the 2013-2014 Budget Summary to Ordinance
<P/ease bring your copy of the preliminary budget/CIP>
11/26/12 Informational Memorandum dated 11/20/12, with attachments based on 11/13 C.O.W.
<P/ease bring your copy of the preliminary budget/CIP>
12/3/12
13
14
. City of Tukwila
• Jim Haggerton, Mayor
MEMORANDUM
TO: Mayor Haggerton
Tukwila City Council
FROM: Peggy McCarthy, Finance Director
BY: Kimberly Matej, Government Relations
DATE: November 20, 2012
SUBJECT: Preliminary 2013-2014 Biennial Budget and Draft CIP Changes
(Please see updated list of attachments based on requests from 11113 C.O.W.)
ISSUE
As a result of Council work sessions and meetings, Mayoral direction, updated information, and
ongoing staff discussions, changes have been made to the Mayor's Preliminary 2013-2014 Biennial
Budget and Draft 2013-2018 Capital Improvement Program (CIP) since the Council received the
document on October 22. Staff is seeking Council review of these changes and direction, as
appropriate, for additional and necessary changes to the budget.
BACKGROUND
The Proposed Preliminary Biennial Budget for 2013-2014 and Draft 2013-2018 CIP were presented
to Council on October 1, 2012. The Council held budget work sessions on October 10, 11, and 12,
2012, to discuss these documents. Suggestions made by the Council at the work sessions were
taken into consideration, and incorporated into the Preliminary Budget per Mayoral direction. The
Preliminary 2013-2014 Budget was presented to Council on October 22, 2012.
DISCUSSION
The changes below have been made to the Preliminary 2013-2014 Biennial Budget and Draft CIP
since the Council received the budget document on October 22, 2012. New pages reflecting these
changes accompany this memo for insertion into the Preliminary Budget document.
• Financial Projections for 2013-2018
An overestimation was identified in the 2013 beginning fund balances for the City's General
Fund and Bridges and Arterial Streets 104 Fund. The beginning fund balances for the General
Fund and 104 Fund have been reduced by $1.2 million and $2.8 million, respectively. The
following budgetary/CIP changes have been made as a result.
1. RESIDENTIAL STREETS
Draft CIP Page 2: The 40-42 Ave South (S 160th St — S 131 PI) funding scheduled for
2014 has been moved to 2015 (replace with new page).
Draft CIP Page 7: Residential Improvements (sidewalk) funding has been moved from
2015, and is now scheduled to begin in 2016 (replace with new page).
2. FACILITIES
Draft CIP Page 73: City Hall Campus/Community Justice Center (facilities
scoping/needs analysis) funding for 2013 has been reduced from $1.5 million to
$500,000. This new reduced amount is considered sufficient to fund preliminary work
that is anticipated to be conducted for facilities scoping and needs analysis in relation
to existing City buildings. The $1 million was moved into the Beyond column (replace
with new page).
15
Preliminary Budget&Draft CIP: Changes..................................................................................................... page 2
DRAFT CIP Page 76: Projected expenditures for Facilities Improvements in the 303
General Government Improvements Fund have been reduced from $300,000 to
$200,000 in years 2015-2018. Improvements made to existing facilities will be for
operating necessities only (replace with new page).
3. EQUIPMENT RENTAL
Preliminary Budget Pages 325 and 188: The two fire engine pumpers budgeted on
Page 325 of the Preliminary Budget will be purchased via financing rather than a cash
payment. This does not affect that financial layout of page 325, but will affect the 2013
and 2014 Fire Suppression budget on Page 188 (replace with new page).
• Position Addition
The Preliminary Budget includes the addition of a Government Relations Manager position to
the Mayor's Office. This position will be responsible for federal, state, regional and local
government relations and affairs; and actively engage with federal, state and regional elected
officials and associations such as the National League of Cities (NLC), Association of
Washington Cities (AWC), Suburban Cities Association (SCA), and various King County
regional committees. Additionally, this position will be heavily involved with communications
and public information fostering a responsive government by connecting our community to
information, services and solutions. This will be part of a larger effort, as identified through the
Strategic Plan, for the need to strengthen the City's organizational culture of customer service
and enhance our current community engagement and public information efforts. This position
will also play an integral part in obtaining additional revenue opportunities for the City as well
as be dedicated to State legislative issues. This will predominantly affect Preliminary Budget
Pages 68-70 (replace with new pages).
• Attachment A
Attachment A has been updated to reflect significant changes as outlined in this memo. Since
Attachment A is included in several areas of the budget, replacement pages with numbers will
be distributed as appropriate.
Special Note Regarding Replacement Pages. In an effort to minimize confusion while maintaining
efficiency, staff is only replacing Preliminary Budget pages that reflect significant changes. There are,
and may be, additional pages affected by a change which will not be updated at this time as the
change will not substantially affect the information provided.
RECOMMENDATION
Staff is seeking Council feedback on the changes outlined in this memo as well as any additional
areas of discussion or changes relating to the full Council initiatives. This item will be scheduled for
additional Council discussion and public hearing at the November 26 Committee of the Whole.
ATTACHMENTS
-Draft Budget Ordinance
-Draft CIP Resolution
-Reconciliation of the 2013-2014 Budget Summary to Ordinance
-Replacement CIP Page#73 regarding City facilities requested at 11/13/12 C.O.W.
-Informational Memorandum from Rick Still regarding an update on the pre-school
-Informational Memorandum from Vicky Carlsen addressing issues discussed at 11/13/12 C.O.W.
-Informational Memorandum from Vicky Carlsen providing explanatory notes for existing and future
anticipated long-term debt as requested at 11/13/12 C.O.W.
-Schedule of existing and future anticipated long-term debt, to include historical data
16
DRAFT
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:
Total Total
Fund Expenditures Revenues
000 General $119,730,819 $119,730,819
101 Hotel/Motel 3,712,082 3,712,082
103 City Street 2,300,000 2,300,000
104 Arterial Street 48,887,820 48,887,820
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 for COW 11-26-12
VC:bjs Page 1 of 3
17
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 $281,857,011 $281,857,011
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\OrdinancesWdopt 2013-2014 Biennial Budget for COW 11-26-12
VC:bjs Page 2 of 3
18
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of 12012.
ATTEST/AUTH ENTICATED:
Christy O'Flaherty, MMC, City Clerk Jim Haggerton, Mayor
APPROVED AS TO FORM BY: 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\Ordinances\Adopt 2013-2014 Biennial Budget for COW 11-26-12
VC:bjs Page 3 of 3
19
20
DRAFT
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
21
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this day of 12012.
ATTEST/AUTH ENTICATED:
Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council.
Resolution Number:
Shelley M. Kerslake, City Attorney
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
22
Reconciliation of 2013-2014 Budget Summary to Ordinance
EXPENDITURES 2013 2014 2014 Ending Total
Expenditures Expenditures Fund Balance Expenditures
000 General $ 57,931,826 $ 57,489,578 $ 4,309,415 $ 119,730,819
101 Hotel/Motel 1,646,282 1,649,003 416,797 3,712,082
103 City Street 11027,000 650,000 623,000 2,300,000
104 Arterial Street 23,583,425 25,212,291 92,104 48,887,820
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 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 590,000 4,365,000 1,411,204 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 1 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 $ 125,400,582 $ 127,581,986 $ 28,874,442 $ 281,857,011
REVENUES 2013 Beginning 2013 2014 Total
Fund Balance Revenues Revenues Revenues
000 General $ 3,800,000 $ 59,515,079 $ 56,415,741 $ 119,730,819
101 Hotel/Motel 650,000 1,524,766 1,537,316 3,712,082
103 City Street 700,000 839,000 761,000 2,300,000
104 Arterial Street 200,000 23,694,820 24,993,000 48,887,820
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 Water 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 $ 33,289,000 $ 119,904,306 $ 128,663,705 $ 281,857,011
23
CITY OFTUKWHLA CAPITAL PROJECT SUMMARY
2013 to 2018
PROJECT: City Facilities Project No. 91230201
First step is to examine all City facilities to determine priorities with a needs analysis and the possibility
DESCRIPTION: of combining existing structures. Second step is to prioritize those needs based on public safety,Third step
will be to determine prudent financing options. Results may include constructing new combined City Facilities.
Almost aUoi�buildings have atmctuna|and seismic uoncemofor public eafo�. Exiadngfaoi|ideoare located
���T|�|�AT|�N� throughout the City and could be consolidated for better function, use of space and service to our citizens.
STATUS: Part of the Facilities Plan.
MA|N7[|MPACT: Improves public safety and efficiency for City operations.
COMMENT: Scoping and analysis of all City facilities scheduled for 2013,that will include Police, Fire,and Public Works.
FINANCIAL Through Estimated
(in$000's) 2011 2012 2013 2014 2015 2016 2017 2018 BEYOND TOTAL
EXPENSES
Analysis 500 500
Design 2,500 2,500
Const. Mgmt. 3,500 3,500
Construction 28,500 28,500
TOTAL EXPENSES 1 01 01 500 1 01 01 01 01 01 34,500 1 35,000
FUND SOURCES
Grant 0
Bond 33,500 33,500
Mitigation Expected 0
TOTAL SOURCES 1 01 01 500 1 01 01 01 01 0 1 34,500 35,000
Pro
2o/o-oo/a Capital Improvement Program 73
City of Tukwila
Rick Still, Parks and Recreation Director
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
City Council
FROM: Rick Still, Parks & Recreation Director
DATE: November 19, 2012
SUBJECT: Pre-School Update
ISSUE
At the November 12, 2012 City Council meeting there was a budget discussion regarding the
former Pre-School at the Tukwila Community Center.
BACKGROUND
The Parks and Recreation Department (P&R) implemented a Pre-school Program for 3 —5 year
olds for over twenty years. The Program used dedicated space at the Tukwila Community
Center that contained age appropriate equipment and supplies. Enrollment in the program had
been at full capacity with between 53% to 63% of enrollees being Tukwila residents. Cost
recovery for the program (instructor, part-time labor and supplies) had improved to nearly 100%
through program registration fees.
In August of 2011, the Pre-School Instructor was laid-off as a result of the City's budget situation
and negotiations with the Union. The instructor had been one of the city's newest/most recent
hires and due to city-wide seniority the person in the position had to be laid off. As a result, the
program was canceled one month before the Pre-school was scheduled to begin and was an
unforeseen and unintended circumstance brought about through the budget reductions. Staff
assisted those that were registered for the P&R Pre-school to find alternate programs for their
children.
Since that time, staff researched ways to continue to offer a pre-school program, those ideas
include the following:
• Utilizing full-time staff to fulfill the role of the pre-school instructor: Due to specialized
education and experience requirements of the instructor, our current staff could not
perform the duties. Additionally, it was not within our staff's capacity to be able to
fulfill the additional requirements of the pre-school instructor position while
performing their existing job responsibilities.
• Accepting RFP's to Lease the Space: Due to Union agreements a lease for the
designated room would have to be open for any type of use, not exclusive to a pre-
school.
• Staff explored options of working with the Tukwila School District and the Community
Schools Collaboration to implement a preschool program.
25
INFORMATIONAL MEMO
Pre-School Update
Page 2— November 20, 2012
DISCUSSION
The loss of the Pre-school program was a troubling time for our participants—current and past,
as well as, for our staff. We believe early childhood education, based upon learning through
recreation, is very important for the future of our youth. Also, the pre-school children and their
families become comfortable with attending programs at the Tukwila Community Center and
often then continue in other recreational pursuits offered through the Parks & Recreation
Department.
The P&R Pre-school was successful in meeting the budget priorities set by City Council — Cost
Recovery, Resident Participation and Ethnic Diversity.
ALTERNATIVES
1. Re-instate the Pre-School Program through the Parks and Recreation Department by
authorizing the funding for staffing and other costs of the program, promote and collect
registrations for a program to begin as early as September 2013.
2. Work with other providers in Tukwila such as Community Schools Collaboration and
Tukwila School District to further explore possibility of programming.
3. Continue to refer families to other programs (potentially outside of the City).
FINANCIAL IMPACT
For program initiation to occur in September 2013, the estimated costs would be as follows:
Expenditures: (based on 2013 wages per union agreement)
4 months
0.5 FTE Recreation Program Assistant (A11) $11,170
Extra Labor (program assistants) $ 5,760
Supplies 2 2
TOTAL $19,130
12 months —9 month program
0.5 FTE Recreation Program Assistant $33,510
Extra Labor $13,112
Supplies 2 2
TOTAL $48,822
Revenue:
To achieve 100% Cost Recovery Model the fees would be approximately:
4 months Approximately $140/month at 4 months with 36 students $20,000
12 months Approximately $140/month at 9 months with 40 students $50,000
This program can be revenue neutral or 100% Cost Recovery if enough participants register at
the proper price. To reinstate the Pre-school program in 2013, the planning and marketing
should have already begun.
RECOMMENDATION
Staff recommendation is to implement the Parks & Recreation Pre-school program in
September 2014 if it is the City Council's direction to reinstate the program.
CiDocumen¢anC Sellings`cM1rsy TUKWIIALxal6ettigsliemporery Intetret fikslCantent OuAooMFOTiAF6UCOW 112612 PreS had lbCaie 1121L12 rs.tloc
26 11202012
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Tukwila City Council
FROM: Peggy McCarthy, Finance Director
BY: Vicky Carlsen, Deputy Finance Director
DATE: November 20, 2012
SUBJECT: Follow-up addressing issues discussed at 11/13/12 C.O.W.
ISSUE
2013-2014 Biennial Budget and 2013-2018 Financial Planning Model and Capital Improvement
Program budget discussion at the November 13, 2012 Committee of the Whole meeting.
BACKGROUND
At the November 13, 2012 Committee of the Whole meeting, Council had the opportunity to
comment and ask questions on the 2013-2014 Preliminary Budget. Below is a discussion on
each major comment or question raised by Council.
DISCUSSION
Councilmembers requested additional information on the following items:
1. Preschool program: A request was made for background on the preschool program and
a review of possible options including reinstatement, but with no additional budget.
Response: Please see attached memorandum from Parks & Recreation.
2. Long-term debt: Councilmembers discussed the City's long-term debt commitments
and requested that a new format be presented that goes beyond the current six year
plan in Attachment A. As part of this discussion, the Council requested a historical look
at debt commitments and how to identify current, future and proposed projects.
Response: Finance has prepared a schedule of existing general obligation debt that
includes existing and proposed future long-term debt, as well as historical data that is
included in the packet.
3. Facilities plans: Page 73 of the CIP document is a summary for City Hall
Campus/Community Justice Center. Councilmembers requested that the title be
changed to a broader review of all City facility needs rather than specific to City Hall and
Community Justice Center. Councilmembers also requested a clear prioritization for
public safety needs and outlined a comprehensive planning process that would include
Council input as well as a review of financing options.
Response: Administration has revised CIP page 73 to reflect these comments and is
attached.
27
INFORMATIONAL MEMO
Page 2
The Council also had general discussion on budgeted increases in salaries, the Strategic Plan
and residential streets and sidewalks. Increases in salaries are for budgeting purposes only
and will go through a regular process for approval for any increases. There is budget set aside
for the next steps in the Strategic Plan implementation process, including community outreach.
Projects that are included in the six-year CIP are priorities for the City. The current CIP includes
funding for 42nd Ave S Phase III starting in 2015, which is one year earlier than in the previous
adopted budget. There is also funding for residential streets starting in 2016, which was not in
the previous adopted budget. This funding for residential streets is specifically planned for 53rd
street improvements.
RECOMMENDATION
Informational purposes only. No action needed.
28
City of Tukwila
Jim Haggerton, Mayor
•.= •
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Tukwila City Council
FROM: Vicky Carlsen, Deputy Finance Director
DATE: November 21, 2012
SUBJECT: Explanatory Notes for Schedule of Existing and Future Anticipated Long-
Term Debt
ISSUE
Schedule of existing and future anticipated long-term debt.
BACKGROUND
At the November 13, 2012 Committee of the Whole a request was made to the Finance
Department to develop a schedule of existing and future anticipated long-term debt.
DISCUSSION
This schedule includes existing general obligation debt as well as future anticipated debt issues
that are included in the preliminary 2013-2014 biennial budget. Repayment for the debt
included in the schedule is primarily through the General Fund. It does not include existing
Public Works Trust Fund loans or revenue bonds that are recorded in the enterprise funds as
these obligations are repaid by rate payers. Amounts in Sections 1 and 2 include both principal
and interest amounts. Any reduction in General Fund obligation is shown in Section 4.
Section 5 demonstrates the net impact to the General Fund. Amounts in this section represent
how much the General Fund will need to pay for existing and future anticipated general
obligation debt. General Fund obligation for the next 6 years, including existing and future
anticipated debt, range from a high of $3.48 million in 2014 to a low of $2.76 million in years
2016 through 2018. General Fund obligation declines to less than $2 million per year beginning
in 2020.
Historical data (2003-2011) on general obligation debt has been included in Section 1. Further
research is necessary to identify any reduction in General Fund obligations that would be
reflected in Section 4 of the schedule.
Section 1
This section includes existing general obligation debt. Amounts represented here include both
principal and interest amounts before any reduction in general fund obligation.
• Column 1: Year 2013 has been budgeted to pay off the bonds associated with the golf
course per Council policy. If these bonds were paid through the existing repayment
schedule, debt service payments would have been reflected through 2023. Existing fund
balance to pay the bonds in full in 2013 is reflected in Column 20 Section 4.
• Column 8: Total existing general obligation debt.
29
INFORMATIONAL MEMO
Page 2
Section 2
This section includes future anticipated debt (both principal and interest) that is incorporated in
the preliminary 2013-2014 biennial budget.
• Column 9: Reflects the proposed lease for 2 pumpers for the fire department. Interest
rate for the leases is 1.89% for 10 years.
• Column 10: Bond issue for the Local Improvement District (L.I.D.) project. The bonds
are scheduled to be sold in 2013 with a repayment schedule of 15 years. Funds to pay
for these bonds will come from property owners in the L.I.D. area and is reflected in
Column 18 in Section 4.
• Column 11: Bond issue for the Tukwila Metropolitan Park District (TMPD) pool project.
Bonds will be issued by the City and the proceeds will be loaned to TMPD. TMPD will
repay the loan in increments equal to the debt service. The repayment of the loan is
reflected in Column 19 in Section 4.
• Column 12 & 13: Public Works Trust Fund loans. Each loan is projected to be for $2.5
million. Interest rate is projected to be no higher than 2% with a repayment schedule
over 20 years.
• Column 14: Total future anticipated debt.
Section 3
This section (Column 15) is the total of existing and future anticipated debt.
Section 4
Section 4 reflects revenue received from various sources that will reduce General Fund
obligation to repay debt.
• Column 16 & 17: Subsidy received from the federal government. Some of the bonds
sold for these projects were Build America Bonds (BABs) and are taxable to the bond
holders. As part of this program, and as an incentive for governments to issues taxable
bonds, the federal government provides a subsidy of 35% of the interest payments
directly to the government issuing these types of bonds. The subsidy reduces the
general fund obligation for the bonds reflected in Columns 4 & 5 Section 1.
• Column 18: Reimbursement by property owners for the L.I.D. area. Funds collected will
offset General Fund obligation for the bonds reflected in Column 10 Section 2.
• Column 19: Reimbursement by TMPD. Funds collected will offset General Fund
obligation for the bonds reflected in Column 11 Section 2.
• Column 20: Current balance in Fund 209. Currently there are sufficient funds to pay off
the bonds related to the golf course.
• Column 21: Total funding that will offset General Fund obligations.
Section 5
Section 5 reflects the net impact to the General Fund.
C:IDocuments and Settings\Vicky-C\Desktopllnfo Memo Schedule of Existing and Future Anticipated Long-Term Debt.doc
30
INFORMATIONAL MEMO
Page 3
Historical data on general obligation debt and L.I.D.s
The following chart reflects previous general obligation debt and L.I.D.s that have been paid off.
Further research is necessary to ensure that all previous debt has been identified in this
schedule.
Ordinance Description Project Description Issue Date of
# Amount Maturity
Provide matching funds for
0670 1971 GO Bonds urban arterial projects $175,000 7/1/81
Partially pay for the
construction and equipping a
1033 1977 GO Bonds new City Hall $1,500,000 1/1/97
Storm improvements 42"
591 L.I.D. #16 and I/U Ave $93,373 12/1/70-
12/1/82
Sewer improvements West
632 L.I.D. #17 Valley Highway $82,375 6/1/73-6/1/85
Sewer improvements lower
714 L.I.D. #18 Foster area $160,038 6/1/74-6/1/86
Sewer improvements I/U
921 L.I.D. #19 & 20 Ave, consolidated LIDs $207,577 6/1/74-6/1/86
Street/sewer — APW, I/U,
975 L.I.D. #21, 22, Minkler, consolidated LIDs $245,372 5/1/76-5/1/88
24
Sewer improvements 1405,
837 L.I.D. #25 I/U Ave $465,271 5/1/50-5/1/92
Sewer improvements 106t",
868 L.I.D. #26 I/U Ave $142,024 2/1/76-2/1/88
Sewer improvements 1405,
922 L.I.D. #27 Green River $417,269 10/7/78-
10/1/90
1098 L.I.D. #29 All utilities — 153r —62 n $456,662 6/1/81-6/1/93
1169 L.I.D. #30 All utilities — 152" — 57t $233,542 6/1/82-6/1/94
Construct sanitary sewer
1455 L.I.D. #32 main along S/C Pk $392,900 4/1/91-4/1/00
RECOMMENDATION
Information only.
C:1Documents and Settings\Vicky-C\Desktopllnfo Memo Schedule of Existing and Future Anticipated Long-Term Debt.doc
31
32
schedule of existing and future anticipated long-term debt