2012 Comprehensive Annual Financial Report - the City of Tukwila

CITY OF TUKWILA: 2012 CAFRMANAGEMENT’S DISCUSSION AND ANALYSISReasons for the significant variances in the general fund between the final budget and actual resultsinclude:Charges for services are down by $500,000 due to reduction in programs offered in thecommunity center with $273,000 of it from reduced revenue from licensing and permittingactivities as a result of decreased construction activities. Previously owed revenue from gambling tax were settled in 2012.The budget for proceeds from sales of capital assets was significantly higher than actualresults resulting in a negative variance of $662,000. Properties that were originallyscheduled to be sold were kept for alternative use.A contingency fund transfer of $3 million and debt proceeds of $1 million did not take placeuntil the first quarter in 2013.Capital Asset and Debt AdministrationCapital AssetsThe City’s investment in capital assets for both its governmental and business-type activities as ofDecember 31, 2012 totaled $281.8 million (net of accumulated depreciation), an increase of $4.8million, or 1.7%, from 2011. This investment in capital assets includes land, buildings, improvements,machinery and equipment, construction in progress, utility transmission/distribution systems, roads,bridges, and other infrastructure.SUMMARY OF CAPITAL ASSETS (NET OF DEPRECIATION)Governmental Activities Business-Type Activities TotalAs of 12/31/12 As of 12/31/11 As of 12/31/12 As of 12/31/11 As of 12/31/12 As of 12/31/11Land $40,501,509 $39,459,061 $2,214,118 $2,214,118 $42,715,627 $41,673,179Buildings 12,181,708 12,231,995 8,099,221 8,403,761 20,280,929 20,635,756Other Improvements 7,943,508 8,639,571 44,569,513 44,188,248 52,513,021 52,827,819Machinery and Equipment 5,597,527 6,525,286 584,202 687,756 6,181,728 7,213,042Infrastructure 104,089,598 107,103,876 - - 104,089,598 107,103,876Intangible Assets 510,592 286,711 - - 510,592 286,711Construction in Progress 47,942,200 39,453,817 7,595,365 7,850,959 55,537,566 47,304,776Total $218,766,642 $213,700,317 $63,062,420 $63,344,843 $281,829,061 $277,045,159More detailed information on capital assets is provided in Note 7.General capital outlay purchases added $273,560 in machinery and equipment. Among theseinclude a partial payment for new permitting software of $177,938, agenda manager software totaling$22,000, and various computer equipment purchases in the amount of $39,513.Many of the projects in the Arterial Street Fund are in the construction stage adding $8.3 million inconstruction in progress for the period. The major arterial street fund activities comprise of thefollowing: Tukwila Urban Center Access Project (Klickitat Southcenter Parkway/I-5 Access Revision),$2.3 million Southcenter Parkway Extension, $4.7 million Transit Center, $603,00027