2012 Comprehensive Annual Financial Report - the City of Tukwila

CITY OF TUKWILA: 2012 CAFRFUND FINANCIAL STATEMENTS AND SCHEDULESNON-MAJOR PROPRIETARY FUNDSInternal Service FundsThe City Internal Service Funds are used to account for the financing of specialservices performed by designated organizations within the City of Tukwila to otherorganizations within the City. They provide a service and then generate revenue bybilling the organization for which the service was provided.Equipment Rental FundAccounts for the costs of maintaining and replacing all City vehicles and auxiliaryequipment except for major fire apparatus. All equipment costs, includingdepreciation, are factors in calculating the rates which are charged to each userdepartment.Insurance Fund-Active EmployeesAccounts for the costs of the City's self-insured medical plan. Medical and dentalcosts for covered employees are charged to the respective user departments. Allpremiums, medical and dental costs and ancillary charges are included. The LEOFFI retiree portion of this program was split off into a separate Insurance Fund toaccommodate new reporting regulations as of January 1, 2004.Insurance LEOFF I FundThis fund was created to account for the City's self-insured medical plan for LEOFF Iretirees. This fund receives contributions on behalf of retired LEOFF I employeesthrough their respective organization units. Medical, dental and prescription claimsand program administrative fees are expensed in this fund.129