2012 Comprehensive Annual Financial Report - the City of Tukwila

CITY OF TUKWILA: 2012 CAFRMANAGEMENT’S DISCUSSION AND ANALYSISMANAGEMENT’S DISCUSSION AND ANALYSISFor the Year Ended December 31, 2012The discussion and analysis of the City of Tukwila’s financial performance provides an overall reviewof the City’s financial activities for the year ended December 31, 2012. The intent of this discussionand analysis is to look at the City’s financial performance as a whole; readers should also review thetransmittal letter, and the basic financial statements to enhance their understanding of the City’sfinancial performance.FINANCIAL HIGHLIGHTS Total net position, the amount by which total assets exceed total liabilities, equals $290.5million. A total of 87 percent or $253.3 million of total net assets is invested in capital assetssuch as streets, land, buildings, equipment, and other improvements. The remaining netassets of $37.3 million is available for debt service, capital projects, and to meet thegovernment’s ongoing activities and obligations.The City’s net position increased by $1.7 million in 2012. Governmental activities provided a$140,293 increase and business-type activities accounted for the difference.As of the close of the current fiscal year, the City of Tukwila’s governmental funds reportedcombined ending fund balances of $18.1 million, a decrease of $6.7 million in comparison withthe prior year due primarily to the City’s self-financing of the Turkwila Urban Center Accessproject (Klickitat). The City will be reimbursed over $8 million for these costs upon the sale ofLocal Improvement District (LID) bonds. At the end of the current fiscal year, unassigned fund balance for the general fund was $8.4million, or 19 percent of total general fund expenditures.The City of Tukwila’s total debt decreased by $2.9 million during the current fiscal year fromdebt service payments.USING THIS ANNUAL FINANCIAL REPORTThis annual report consists of a series of financial statements and notes to those statements. Thesestatements are organized so the reader can understand the City of Tukwila as an entire operatingentity. The statements then proceed to provide an increasingly detailed look at specific financialconditions.The Statement of Net Position and Statement of Activities provide information about the activities ofthe whole City presenting both an aggregate view of the City’s finances and a longer-term view ofthose assets. Major fund financial statements provide the next level of detail. For governmentalfunds, these statements tell how services were financed in the short-term as well as what dollarsremain for future spending. The fund financial statements also look at the City’s most significantfunds with all other non-major funds presented in total in one column.15